>> Live from Washington DC, it's theCUBE. Covering AWS Public Sector Summit 2018. Brought to you by Amazon Web Services and its ecosystem partners. >> Hello everyone, welcome back. It's theCUBE's exclusive coverage. We're here in Washington, D.C. for live coverage of theCUBE here at Amazon Web Services, AWS Public Sector Summit. This is the re-invent for the global public sector. Technically they do a summit but it's really more of a very focused celebration and informational sessions with customers from Amazon Web Services, GovCloud, and also international, except China, different world. John Furrier, Dave Vellante here for our third year covering AWS Public Sector Summit and again our next guest is Max Peterson, the Vice President of International Sales Worldwide for public sector data, Max, good to see you, thanks for coming back. >> It's good to see you again, John, thank you. >> So, we saw you at dinner last night, great VIP Teresa Carlson dinner last night, it's a who's who in Washington, D.C., but also international global public sector. >> Absolutely. >> And so, I want to get your thoughts on this, because AWS is not just in D.C. for GovCloud, there's a global framework here. What's goin' on, what's your take on how this cloud is disrupting the digital nations, and obviously here at home in D.C.? >> Well, John, so first of all, I love your description of this as a celebration, because really that's one of the things that we do, is we celebrate customer success, and so when you look at AWS around the world, we've got customers that are delivering solutions for citizens, new solutions for healthcare, a great solution to education all around the world. In Europe, we serve all those customers from London, Ireland, Germany, Frankfurt, Paris, all open regions, and we're bringing two new regions that we've announced, in the Middle East, which is an exciting part of the Europe, Middle East, and Africa business, and then also up in the Nordics, with Sweden. >> Yeah, so I want to ask you about EMEA, Europe, Middle East and Africa, it's the acronym for essentially international. Huge growth, obviously Europe is a mature set of countries, and it has its own set of issues, but in the Middle East and outside of Europe there's a huge growing middle class of digital culture. >> Yes. >> You're seeing everything from cryptocurrency booming, blockchain, you're seeing kind of the financial industries changing, obviously mobile impact, you got a new revolution going on with digital. You guys have to kind of thread the needle on that. What are you guys doing to support those regions? Obviously, you got to invest, got GDP always in the headlines >> Right. >> Recently, that's Europe's issue, and globally, but you got Europe, and you got outside of Europe. Two different growth strategies, how is AWS investing, what are some of the things you guys are doing? >> Sure, let me try and get all of those questions >> (laughs) Just start them one at a time >> That was very good, yeah. So, let's do the invest and grow piece. Digital skills are critical, and that's one of the challenges with the overall digital transformation, and, by the way, that's not just EMEA, that's all around the world, right? Including the U.S., and so we're doing a lot of things to try to address the digital skills requirement, a program that we've got called AWS Educate just yesterday announced the Cloud Academy Course. So, career colleges, technical colleges will be able to teach a two-year course specifically on cloud, right? For traditional university education, we provide this thing called AWS Educate. We, in the UK, we started a program over 18 months ago called Restart, where we focus on military leavers, spouses, and disadvantaged youth through the prince's trust, and we're training a thousand people a year on AWS cloud computing and digital skills. Taking them, in this case, out of military, or from less advantaged backgrounds and bringin' 'em into tech. And then, finally in April of this year, at our Brussels public sector summit, a celebration of customers in EMEA, we announced that we're going to be training 100,000 people across Europe, Middle East and Africa, with a combination of all of these programs, so skills is absolutely top in terms of getting people on to the cloud, right, and having them be digitally savvy, but the other part that you talked about is really the generational and cultural changes. People expect service when they touch a button on the phone. And that's not how most governments work, it's not how a lot of educational institutions work, and so we're helping them. And so, literally now, across the region, we've got governments that are delivering online citizen services at the touch of a button. Big organizations, like the UK Home Office, like the Department for Wealth and Pensions, like the Ministry of Justice. And then, I think the other thing that you asked about was GDPR. >> Yeah. (laughs) >> Am I covering all the bases? >> You're doing good Max. >> You keep it rollin'. >> You're a clipping machine, here. >> So, GDPR might be thought of as a European phenomenon, but my personal opinion is that's going to set the direction for personal data privacy around the world, and we're seeing the implementation happen in Europe, but we're seeing also customers in the Middle East, in Asia, down in Latin America going, "Hey, that's a good example." And I think you'll see people adopt it, much like people have adopted the NIST definition of cloud computing. Why re-invent it? If there's something that's good, let's adopt it and go, and Amazon understood that that was coming, although some people act like it's a surprise. >> Yeah. >> Did your e-mail box get flooded with e-mail? >> Oh, Gosh. >> God, tons Well the day >> Day before. >> Yes! >> (laughs) >> Yes, day before! Acting like this was, like a surprise. It started two years before, so Amazon actually started our planning so that when the day arrived for it to be effective, AWS services were GDPR compliant so that customers could build GDPR compliant solutions on top of the cloud. >> So, I mean generally I know there's a lot of detail there, but what does that mean, GDPR compliant? 'Cause I like having my data in the cloud with GDPR, 'cause I can push a lot of the compliance onto my cloud provider, so what does that really mean, Max? >> Yeah, well fundamentally, GDPR gives people control of their information. An example is the right to be forgotten, right? Many companies, good companies were already doing that. This makes it a requirement across the entire EU, right? And so, what it means to be compliant is that companies, governments, people need to have a data architecture. They really have to understand where their data is, what information they're collecting, and they have to make the systems follow the rules for privacy protection. >> So how does AWS specifically help me as a customer? >> Right, so our customers around Europe, in fact, around the world build their solutions on top of Amazon. The Amazon services do things that are required by GDPR like encryption, alright? And so, you're supposed to encrypt and protect private data. In Amazon, all you do is click a button, and no matter where you store it, it's encrypted and protected. So a lot of organizations struggled to implement some of these basic protections. Amazon's done it forever, and under GDPR, we've organized those so that all of our services act the same. >> Max, this brings up security questions, 'cause, you know obviously we hear a lot of people use the cloud, as an example, for getting things stood up quickly, >> Yep. >> Whether it's an application in the past, and then say a data warehouse, you got redshifts, and kinesis, and at one point was the fastest growing service, as Andy Jassy said, now that's been replaced by a bunch of other stuff. You got SageMaker around the corner, >> SageMaker's awesome. >> So you got that ability, but also data is not just a data warehouse question. It's really a central value proposition, whether you're talking about in the cloud or IOT, so data becomes the center of the value proposition. How are you guys ensuring security? What are some of the conversations, because it certainly differs on a country by country basis. You got multiple regions developing, established and developing new ones for AWS. How do you look at that? How do you talk to customers and say, "Okay, here's our strategy, and here's what we're doing to secure your data, here's how you can go faster (laughs), keep innovating, because you know they don't want to go slower, because it's complicated. To do a GDPR overhaul, for some customers, is a huge task. How do you guys make it faster, while securing the data? >> Yeah, so first of all, your observation about data, having gravity, is absolutely true. What we've struggled with, with government customers, with healthcare and commercial enterprise, is people have their data locked up in little silos. So the first thing that people are doing on the cloud, is they're taking all that and putting it into a data warehouse, a data repository. Last night we heard from NASA, and from Blue Origin about the explosion in data, and in fact, what they said, and we believe, is that you're going to start bringing your compute to the data because the amount of information that you've got, when you've got billions of sensors, IOT, billions of these devices that are sending information or receiving information, you have to have a cloud strategy to store all that information. And then secondly, you have to have a cloud compute strategy to actually make use of that information. You can't download it anymore. If you're going to operate in real time, you've got to run that machine learning, right, in real time, against the data that's coming in, and then you've got to be able to provide the information back to an application or to people that makes use of it. So you just can't do it in-house anymore. >> You mentioned the talk last night as part of the Earth and Science Program, which you guys did, which by the way, I thought was fabulous. For the folks watching, they had a special inaugural event, before this event around earth and space, Blue Origin was there, Jet Propulsion Lab, much of the NASA guys, a lot of customers. But the interesting thing he said also, was is that they look at the data as a key part, and then he called himself a CTO, Chief Toy Officer. And he goes, "you got to play with the toys before they become too old," but that was a methodology that he was talking about how they get involved in using the tooling. Tooling becomes super important. You guys have a set of services, AWS, Amazon Web Services, which essentially are tools. >> Yeah. >> Collectively tools, you know global, you end up generalizing it, but this is important because now you can mix and match. Talk about how that's changed the customer mindset and how they roll out technology because they got to play, they got to experiment, as Andy Jassy would say, but also, also put the tools into production. How is it changing the face of your customer base? >> Sure, well, one of the things that customers love, is the selection of tools, but one of the most important things we actually do with customers, is help them to solve their problems. We have a professional service organization, we have what we call Envision Engineering, which is a specialized team that goes in and develops prototypes with customers, so that they understand how they can use these different tools to actually get their work done. One quick example: in the UK, the NHS had to implement a new program for people calling in to understand health benefits. And they could've done this in a very traditional fashion, it would've taken months and months to set up the call center and get everything rolling. Fortunately, they worked with one of our partners, and they understood that they could use new speech and language processing tools like Lex, and Amazon's in-the-cloud call center tools, like Connect. In two weeks, they were able to develop the application that handled 42% of the inbound call volume entirely automated, with speech and text processing, so that the other 52% could go to live operators where they had a more complex problem. That was prototyped in two weeks, it was implemented in three more weeks, a total of five weeks from concept to operation of a call center receiving thousands and thousands of inbound calls on the cloud. >> Max, can you paint a picture of the EMEA customer base, how it sort of compares to the US, the profile? I mean, obviously here, in the United States, you got a healthy mix of customers. You got startups, you're announcing enterprises, you got IOT use cases. I imagine a lot of diversity in EMEA, but how does it compare with the US, how would you describe it? Paint a picture for us. >> Yeah sure, candidly, we see the same exact patterns all around the world. Customers are in different stages of readiness, but across Europe, we have central governments that are bringing online, mission systems to the cloud. I mentioned Home Office, I mentioned DWP, I mentioned Her Majesty Revenue and Customs, HMRC. They're bringing real mission systems to the cloud now because they laid the right foundations, right? They've got a cloud native policy, and that's what directs government, that says stop building legacy systems and start building for the future by using the cloud. Educational institutions across the board are using AWS. Science and research, like the European Space Agency is using AWS, so we see, really, just the same pattern going on. Some areas of the world are newer to the cloud, so in the Middle East, we're seeing that sort of startup phase, where startup companies are gettin' onto the cloud. Some of 'em are very big. Careem is a billion dollar startup running on AWS, right. But we're helping startups just do the basics on the cloud. In Bahrain, which is a small country in the Middle East, they realized the transformative opportunity with cloud computing, and they decided to take the lead. They worked with AWS, they produced a national cloud policy, their CIO said we will move to the cloud, and that's key. Leadership is absolutely key. And then they put in place a framework, and they very systematically identified those applications that were ready, and they moved those first. Then they tackled the ones that weren't quite ready, and they moved those. They moved 450 applications in a matter of three months, to the cloud, but it was by having a focused program, top-level leadership, the right policy, and then we provided technical resources to help them do it. >> Max, I want to get one last question before the time comes up, but I want to put you on the spot here. >> Oh good. >> In the United States, Amazon Web Services public sector has really kind of changed the game. You saw the CIA deal that you guys did years ago, the Department of Defense is all in the news, obviously it's changing the ecosystem. How is that dynamic happening in Europe? You said the patterns are the same. Take a minute to just quickly describe, what's going on in the ecosystem? What's the partner profile look like? You've got a great partner ecosystem, and there are different partners. You mentioned Bahrain, Digital Nation, changing the game. You guys seem to attract kind of a new guard, a new kind of thinking, partners. What is the ecosystem partnerships look like for you guys, internationally, and is there the same dynamic going on that's happening in the US with the CIA, and DOD leaders around changing the narrative, changing the game, with technology? >> Sure, good questions. We wouldn't be able to deliver the solutions that we deliver to customers without our partner ecosystem. And sometimes, they're small, born in the cloud partners, the same sort of phenomenon that we have in the US. The example with the National Health Service was delivered by a expert consulting partner called Arcus Global, about a hundred person strong consulting organization that just knows cloud and makes it their business. And we see those throughout Europe, Middle East, and into Africa. We have our large global partners, Capgemini, Accenture, and then I think the other thing that's really important, is the regional partners. So what's happening is we're seeing those regional partners, partners like Everee, or Dee-Ecto, or SCC. We're seeing them now realize that their customers want to be agile, they want to be innovative, they want to be fast, and it doesn't hurt that they're going to save some money. And so we're seeing them change their business model, to adopt cloud computing, and that's the tipping point. When that middle, that trusted middle of partners, starts to adopt cloud and help the customers, that's when it really swings the other direction. >> It's great growth, and new growth brings new partners, new profiles, new brands, new names, and specialty is key. Max, thanks for coming on the CUBE. Really appreciate you taking the time. International, we're riding the wave of home sector with CUBE here in the US, soon we'll see you in some international summits. >> I'm looking forward, >> Alright. >> John, Dave, it was awesome to talk to you. >> Thanks Max. >> Alright, we are here live in Washington, D.C., for Amazon Web Services, AWS, Public Sector Summit 2018, we are in Washington, I'm John Furrier, Dave Vellante, and also Stu Miniman is here, the whole CUBE team is here, unpacking the phenomenon that is AWS, rocking the government and digital nations around the world. We're back with more, after this short break. (upbeat techno music)

>> Live from Boston, Massachusetts, it's the Cube, covering IBM Chief Data Officer Summit. Brought to you by IBM. >> Welcome back to the Cube's live coverage of the IBM CDO Summit here in Boston Massachusetts. I'm your host, Rebecca Knight, along with my co-host Dave Vellante. We are joined by Caitlin Halferty. She is the Chief of Staff IBM Data Office, and also John Backhouse, the chief information officer and senior VP at CareEnroll. Thank you both so much for coming on the Cube. >> Great to be here. >> Thank you, good to see you. >> So before the cameras were rolling, John, we were talking about how you have this very unique vantage point and perspective on the role of the CIO and CDO. Can you tell our viewers a bit about your background? >> Sure. I started off in the military. I was in the army for 12 years as a military intelligence officer. I then moved to the NHS, which is a national health service in England and where I wrote the Clinical Care Pathways for myocardial infraction and diabetes pre-hospital. I then moved to the USA and became Chief Data Officer for Envision Healthcare, one of the largest hybrid providers of insurance and clinical care. And then I became a CIO for a multi-state Medicare program. >> So you've been around, so to speak (laughter) But the last two roles, CIO and CDO, so how would you describe them? I mean obviously two different places, but is it adversarial? Is it cooperative? What is the relationship like? >> I think its, the last couple of years, CDO role has matured, and it's become a direct competition between a CIO and a CDO. As my experiences I've been fighting for the same budget. I've been fighting for the same bind, I've been fighting for the same executives to sponsor my programs and projects. I think now as the maturity of the CDO has stepped out, especially in health, the CDO has a lot more power between the conduit between the business and IT. If the CDO sits in IT he's doomed for failure because it's a direct competition of a CIO role. But I also think the CIO role has changed in the way that the innovation has stepped up. The CIO role used to be "Your career is over, CIO." (laughter) Now it's the innovational aspect of infrastructure, cloud cognitive analysts, cognitive solutions and analytics so that the way the data is monetized and sold and reused, in the way that the business makes decisions. So I see a big difference. >> How much of that, sort-of authority, if I can use that term, of the chief data officer inside of a regulated company versus you're in the office of the chief data officer in an unregulated company, compare and contrast. >> Well, the chief data officer's got all the new regulatory compliancies coming down the GDC, the security, safe harbor, and as the technology moves in to cloud it becomes even harder. As you get PCI, HIPPA and etc. So, everything you do is scrutinized to a point where you have to justify, why, what, and when. And then you have to have the custodian of who is responsible. So then no longer can you say, "I got the data for this reason." You have to justify why you have that information about anything. And I think that regulatory component is getting stronger and stronger. >> And you know, we've often talked about the rise of the CDO role and how it's changed over the last few years. Primarily it started in response to regulatory and compliance concerns within financial services industries as we know banking and insurance, healthcare. And we're seeing more and more retail consumer products. Other industries saying look, "We don't really have enterprise-wide management of data across the organization" Investing in that leadership role to drive that transformation. So I'm seeing that spread beyond the regulated industries. >> Well Caitlin, in the keynote you really kicked off this conference by reminding us of why we're all here and that is to bring chief data officers together, to share those practices, to share what they've learned in their own organizations. Hearing John talk about the fight for resources, the fight to justify its existence. What do you think, how would you tease out the best practices around that? >> The way we've approached it, you know, I've mentioned this cognitive enterprise blueprint that we highlighted and released this morning. And this has been an 18-month project for us. And we've done it in close partnership with folks like John, giving a lot of great insight and feedback. And essentially the way we see it is there's these four pillars. So it's the technology piece and getting the technology right. It's the business process, both CDO-owned processes as well as enterprise-wide. And then the new piece we've added is around data, understanding the data part of it is so important. And so we've delivered the blueprint and then taking it to the next level to figure out what are the top used cases. How do we prioritize to your question, where prioritized-used cases. >> So, come back to the overlap between the CIO and CDO. I remember when I first met Ender Paul, we had him on the Cube and he's seared into my brain he's five points that the CDO has to do, the imperative. And three were sequential two were in parallel. One was figure out how to monetize, how you're data can contribute to the monetization of your company. Second was data trust and sources, third was access to that data and those were sequential >> Right. Processes and then he said "Line of business and skill sets were the other two that you kind of do in parallel, >> Absolutely. forge relationships with a lot of businesses and re-skill. Okay, so with that as the Ender Paul framework for what a CDO's job was... I loved it, I wrote a blog about it, (laughter) I clipped it. >> That's very good >> But the CIO hits a lot of those areas, certainly data access, of trust and security, the skill sets. Thinking about that framework, first of all do you buy it? I presume it's pretty valid, but where do you see the overlap and the collaboration? >> So I think that the framework works out and what IBM has produced is very tangible, it means you can take the pieces and you can action them. So, before you have to reflect on one: building the team, getting the right numbers in the team, getting the right skill sets in the team. That was always a challenge because you're building a team but you're not quite sure what the skill set is until you've started the plan and the math and you've started down that pathway, so with that blueprint it helps you to understand what you're trying to recruit for, is one aspect, and then two is the monetization or getting the data or making it fit for purpose, that's a real challenge and there's no magic wand for this, you know it depends on what the business problem is, the business process and understanding it. I'm very unique cause not only have I understand the data and the technology I actually give it the clinical care as well, so I've got the translations in the clinical speak into data, into business value. So, I can take information and translate it into value very quickly, and create a solution but it comes back to that you must have a designer and the designer must be an innovator, and an innovator must stay within the curve and the object is the business problems. That enables, that blueprint to be taken and run with, and hit the ground very quickly in an actionable manner. for me information in health is about insights, everybody's already doing the medical record, the electronic record, the debtor exchange. It's a little immature in health and a proper interoperability but it there and it's coming it's the actually use of and the visualization of population analysis. It used to be population health, as in we knew what we were doing after the fact, now we need to know what we are doing before the fact so we can target the outreach and to move the right people in the right place at the right time for the right care, is a bigger insight and that's what cognitive and the blueprint enables. >> So Caitlin, it feels like these two worlds are really coming together, you know, in the early days it was just really regulated businesses. >> Correct. >> Now with GDPR now everybody is a regulated business, >> Right. >> And given that EMR, and Meaningful Use and things like that are kind of rote now. >> Yeah. >> Regulated industries are really driving for that value holy grail. >> Yeah. >> So, I wonder if you could share your perspectives on those two worlds coming together. >> Yeah I do see them coming together, as well as the leadership. >> Right, yeah. >> Across the C-sweep, it's interesting we host these two in-person summits, one in the spring in San Francisco one here in Boston in the fall and we get about 120 or so CDOs that join us. We pull for, what are top topics and we always get ones around data monetization, talent, the one again that came up this year was changing nature of to the point on building those deep analytics partnerships within the organization, changing the relationships between CDOs and C-sweep peers. We do a virtual call with about 25 CDO's and we had John as our guest speaker, recently >> Yeah. And it was our best attended call, (laughter) it was solely focused on how CDOs and CIOs can partner together to drive business critical cross-enterprise initiatives, like GDPR in ways that they haven't in the past. >> Yeah. >> It was a reinforcement to me that building those relationships, that analytic partnership piece, is still top of mind to our CDO community. >> Yeah, and I think that the call itself was like sun because I invited the chief of their office and now he's the innovator and the chief information officer used to be the guy who kept the lights on, that's no longer the fact. The chief information officer is the innovator of the infrastructure, the design, the monetization, the value, the business and the chief in their office now has become the chief designer of information to make it fit for purpose, for presentation, for analytics, for the cognitive use of the business. Those roles now, when you bring them together, is extremely powerful and as the maturity comes of these chief there officer roles with the modern approach to chief information then you have a powerful, powerful dynamic. >> Well let's talk about the chief innovator, it reminds me of 1999. (laughter) >> If you want to be a CEO you've got to go the CEO's office and then Y2K on the whole thing blew up. (laughter) >> What's different now though, is the data >> Yeah. - [Caitlin] Absolutely. >> There certainly was a lot of data back then but not nearly like it is today and the technology underneath it, the whole cloud piece, but I wonder if you could talk about the innovation piece of that a little bit more >> Sure. and it's relationship to the data. >> So, I mean we've always been let's all go to the data warehouse, let's have a data lake, let's get the data scientist to fix the data lake. (laughter) >> Yeah. >> And then he's like " Whoa, well what did he do?" "Does it do anything? Show me." And you know now that physical massive environment of big service and big cages and big rooms with big overhead expenses is no longer necessary. I've just put 91 servers for an entire state's data and population in a cloud environment, multiple security levels with multiple methods of new innovational cloud management. And I've been able to standup 91 server in six and a half minutes. I couldn't even procure that... (laughter) - Right. >> Before >> I'd be months, and months >> Yeah, to put physical architecture together like that but now I can do it in six and a half minutes, I can create DR rapidly, I can do flip over active-active and I can really make the sure of it. Not only can I use the infrastructure I can enable people to get information at the point where it's needed now, far easier than I ever did before. >> So talking about how the technology has moved and evolved and changed so rapidly for the better but yet there is still a massive talent shortage of the people who, as you said - [John] Yeah >> Who can speak the language and take the data and immediately translate it into business value. What are you doing now about this talent shortage? What's your take on it and what are we doing to fix it? >> Yeah >> I would say, in one of the morning keynotes, Jim Cavanaugh our SVP for transportation operations got that question around how do you educate internally what it means to be a cognitive enterprise when there are so many questions about what does that really mean? And then how do you access skill against those new capabilities? He spoke about some of the internal hackathons that we did and ran sort of an internal shark tank-like to see how those top projects rise, align resources against it and build those skills and we've invested quite a lot internally as I know many of our clients have around what we call cognitive academy to ensure that we've one: figured out and defined what it means in this new...what type of new skills and then make sure that we're able to retrain and then keep and retain some of our new talents. So I think we're trying that multi-prong approach to retrain and retain as well. >> You guys use the term cognitive business we use the term digital business cause we can't use IBM's terms (laughter) But to us there the same thing >> Why not? >> Cause it's all about... (laughter) >> Cause were independent - [Caitlin] Dave's upset here >> But to us it's all about how you leverage data >> Yeah. >> And how you use data to >> Yeah. >> Maintain and to get and maintain costumers. So since we're playing CX bingo >> Yeah right. >> Chief digital officer, Bob Lord >> Right >> Bob Lord and Ender Paul Endario are two totally different people and there roles are quite different, but if it's all about the data and you buy that premise what is the chief digital officer do? they are largely driving revenue >> Absolutely >> That's understandable but it's part of your job too >> Right >> Or former job as a CDO and now as an innovation officer. Where do those roles fit? >> I think there's a clear demarcation line and especially when you get into EIM solutions as in Enterprise Information Management. And you start breaking those down and you've got to break them down into master data management and you start putting the domains together, the multi-master domains, and one of them is media, and media needs someone to own it, be the custodian, manage it, and present it to the business for consumption, the other's are pure data driven. >> Yeah. >> Master patient, master member, master costumer, master product, they all need data driven analytics to present information to the business. You can't just show them a sequel schemer and say "There you go." >> Yeah. (laughter) >> It doesn't work so there is different demarcations of specialist skills and the presentation and it got to be that hybrid between the business and IT. The business and the data, the business and the consumer and that is, I think the maturity of way this X-sweet is going these days >> Yeah. >> One thing we've seen internally to that point, I agree there's a clear demarcation there, is when we do partner with the digital office it can be to aid say digital sellers so we have a joint project going where we are responsible for the data piece of it >> Yeah. >> And then we are enabling our digital sellers, we're calling it cognitive sales advisor to pull dispersed pieces of costumer data that are currently housed in cylos across the organization, pull that into a digital, user friendly app, that can really enable those sellers, so I think there's some nice opportunities just as there are CDOs and CIOs to partner, for a data officer and a digital officer as well. >> One of our earlier guests was talking about some of the things that he's hearing in the break out sessions and he said "You know they could have been talking about the same stuff ten years ago, these intractable organizations that aren't quite there yet." What do you think we will be talking about next CDO summit? Do you think there will come a point where were not talking about is data important? Or does data have a role in the organization? When do you think that will happen? (laughter) >> Every time I say we're done with governance right? >> Yeah >> We're done and then governance >> Comes right back - Top topic (laughter) >> If you get the answer to that can I have the locker notes? (laughter) >> Sure >> Exactly, Exactly >> I think in the next ten years we're not going to ask anymore about what did we do, we're going to be told what we did. As in we're going to be looking forward, thing are going to be coming out and saying this is the projected for the next minute, second, hour, month, year and that's the big change. We are all looking back, what did we do? How did we do? What was the goals we tried to achieve? I don't think that's going to be what we ask next month, next year, next week. It's going to be you're going to tell me what I did and you're going to tell me what I'm doing. And that's going to change, and also the healthcare market, the way that health is prescriptive, they're not prescribed anymore. They way that we diagnose things against the prognosis, I think that the way we manage that information is going to change dramatically. I would say too, I've been working quite a bit with a client in Vegas, a casino, and their current issue or problem is they have all this data on what their guest do from the moment they check in, they get their hotel key, they know where spend, where they go to dinner, what type of trip they're on, is it business is is pleasure. Are the kids in town, different behaviors, spending patterns accordingly. >> Yeah. >> And the main concern they relate to us is I can't do anything about it until my guest has exited the property and then I'm sending them outreach emails trying to get them back, or trying to offer a coupon. >> Yeah. >> You know post - [John] Yeah, yeah. >> And they're gone. >> And what if I could do some real time analysis and deliver something of value to my guest while they are on site and we are starting to see some of that with Disney and some other companies. - [John] Yeah. >> But I think we will see the ability to take all this data that we already have and deliver it. >> In real time. -[John] Yeah. >> Influence behavior >> Right >> And spending patterns in real time that's what I'm excited about. >> Yeah and these machines will actually start making decisions, certain decisions for the brand. >> Yeah >> Right >> At the point where it can affect an outcome. >> Right, right, Which I think is hard >> It's starting >> Yeah >> No question, you certainly see it in fraud detection today, you mentioned Disney. >> The magic bands >> Right >> And the ability to track >> Yeah >> Where you are and that type of thing, yeah >> Great >> We're starting cyber security cause cyber security, an aspect of user log, server log, network, are looking for behavioral patterns and those behavioral patterns are telling us where the risks and the vulnerabilities are coming from. >> Thing that humans >> Yep >> Would not see that >> People don't see the patterns, yep. >> You're absolutely right, >> right >> They just wouldn't see the patterns of the risk. >> Excellent, well John, Caitlin, thanks so much for coming on the Cube it's always a pleasure to talk to you. >> Thank you - Great, thank you. >> I'm Rebecca Knight for Dave Vellante we'll have more just after this.

>> Hey, welcome back everybody. Jeffrey here with theCUBE. We're in Palo Alto, California at the Four Seasons Hotel. An interesting event, it's called Security in the Boardroom, and it's part of the security series put on by the Chertoff Group. They do a couple of events a year, and they've returned to the Four Seasons. It's really an interesting twist on the whole security discussion, really elevating it to what's happening in the boardroom. We're excited to be here, we've got some great guests lined up, and we've got our first guest of the day. He's Bob Griffin. He's the CEO of Ayasdi. >> Correct. >> Welcome, Bob. >> Thanks. >> I got the pronunciation right, so. >> You did, indeed. >> For people that aren't familiar with the company, what is Ayasdi all about? >> Well Ayasdi's an artificial intelligence platform manufacturer that builds technologies that allows us to effectively deploy enterprise class artificial intelligence applications. >> For security's specific application or beyond security? >> Yeah, beyond security. We're fundamentally focused in three areas. We're focused in the financial crimes area, specifically around doing things like anti-money laundering, risk and compliance, waste, fraud and abuse. We're focused a lot in the healthcare area, around doing things like, clinical variation management, population health risk, and we've got a very strong focus in the federal government and the public sector, mostly around the intelligence community, DoD and so forth. >> Okay. So, financial institutions, the government, and then who's the purchaser, what's the segment that buys your healthcare focus applications? >> It's traditionally both the payers and the providers. So folks that are looking at, how do we manage costs associated, but how do we make more use of healthcare practices? So, folks like Mercy Hospital, folks like Intermountain, United Healthcare, folks like that. >> So it's interesting 'cause there's a lot of talk of machine learning and AI right now, it's hot, hot, hot like beg-id was a couple years ago. But I think, a lot of people are still confused as to how is it actually being used. Is it actually being used? It's probably affecting them in ways they have no idea. So, how is the adoption of AI progressing from your point of view in these industries, and how is it helping transform them? >> Well, it's absolutely transformational technology. The reality is all applications eventually are going to have to become intelligent or they become obsolete. The biggest challenge with artificial intelligence is that it's moving incredibly quickly. The rate of change, milestones, are daily. So if you're not running to artificial intelligence applications, or developing and deploying those, you're behind the curve. If you're sitting at the stoplight right now, and you're competitors are entering the intersection using artificial intelligence, you're never going to catch up, so you have to move quickly. >> Right. >> The second thing, I think, is that, artificial intelligence now has got an opportunity that can really focus and help with real business problems. Traditionally, what we've done with artificial intelligence is we've parked it in innovation labs, or we've parked it in R&D. It's time to take it out of that and really put it to place, in areas around opportunities we talked earlier about. Anti-money laundering. How do you reduce the number of false positives to make your 5000 investigators more effectively? Artificial intelligence can do that kind of application. >> I was wondering if there's any stories you can share publicly about some of the big impacts or maybe little impacts that people would never have guessed where you can apply this type of technology to positive outcome. >> Sure. So, let's talk a little bit about, let's take anti-money laundering as an example. We have a client that has nearly 7000 investigators. And their challenge is, they're getting almost 98% false positives. They came to >> 98% false positives? >> 98 false positives, I mean think about that. >> Which is crazy. >> Out of every hundred, only two positives are actually effective. Alright so, they came to us and said, look, if we can reduce our false positives by say 3-5%, that's a home run for us, right? What do you think you can do to help us? We took their information, their data, put ourselves within their workflow. And we we're able to give them a 26% reduction in false positives. Well that changes the game for them. Just the economic savings alone is incredible. You're talking nearly 140 million dollars. So, those are real things. I'll give you one more example in the healthcare area. We've been studying type 2 diabetes for nearly 40 years. We took that same data set that people have been studying and working with one of our partners, we were able to very quickly, through our platform, segment up that data set and show that type 2 diabetes really falls into three subsegments. And those subsegments are really indicators of what's likely to happen to patients, but more importantly, they subsegment up into things like, these clients, er these patients that have these conditions are likely to develop cancer. These clients are likely to develop retinopathy, blindness. What that's doing is it's changing the way, not only they're going to prosecute a cure, but also the way they're going to prosecute the treatment of type 2 diabetes. It's changing the game. >> So, it's interesting. You got a technology platform. Do you also deliver the data to scientists? How does it work in terms of, or are you a tool that you hand to data scientists inside the organization, the one you just, given an example of and gives them a different tool, or you also delivering services to help refine and tune? 'Cause obviously it's always implied that these things, not only do you pump the data in, that there's a continuing ongoing process of learning as they, continue to get smarter. >> Absolutely. The answer actually is yes. We provide a platform, and that platform really comes with capabilities to enable our clients to develop artificial intelligence applications in real time or near real time. So, it has things like an SDK, it has REST APIs, but more importantly, it has a tool we build called Envision. And that Envision really allows our clients to very rapidly prototype new artificial intelligence applications and get them into production incredibly quickly. Now to your point, there are, some of our clients that don't have the technological skills or prowess, but yet, need to take advantage of the technology. So we have a professional services capability that will come in. We'll bring in data scientists as required. We'll bring in subject matter experts as needed. We'll bring in program managers and so forth, and we'll take them from kind of, cradle to grave, in helping them build out those applications. As part of that we'll train them, educate them and let them to become self-sufficient. Because, one of the things that I think is incredibly important about artificial intelligence that nobody's talking about, is any machine-intelligent application has to be able to do five things. It has to be able to discover. You know, find out and do observational discovery. What does it not know about itself, What can it learn? And that's important, because if you can do unsupervised discovery, then you can do the next thing, prediction, much more effectively. So it has to be able to discover, it has to be able to do prediction, from the past we can predict the future. It has to be able to do justification, and that's probably one of the most important areas that we talk about. Justification is not necessarily what is it the algorithm did, but why did it do that, why did it take that action? Why did it segment the population to these sizes? What is it that it proved? Why did that sensor go off? And so forth. >> This is really, to kind of, unveil the black box a little bit. 'Cause nobody wants the white box anymore. >> Absolutely. And then lastly, it's got to be able to do two additional things. It's got to be able to act on what it has discovered, what it's predicted, what it's justified. And then lastly, it's got to be episodic, it's got to learn. So what did I learn from the last episode, and how do I apply that back to a new form of discovery, a new form of prediction, the next level of justification and action. >> That's a great summary, Bob. And it's interesting. 'Cause you guys talk a lot about, I was doing some homework before I came in on the justification piece. You got to open up that black box, it's no longer good enough just to kick out an answer. >> Absolutely. And if you can't on it, what's the point, you know? It's kind of more of a science experiment. Before I let you go, we're running out of time, but, the roots of the company, is around this thing called topological data analysis. And you're not a data scientist, nor am I, but conceptually, what was different about that approach, that people weren't doing previously? >> Well so, topological data science, data analysis, is the study of the shape of data. All data comes in shape. The challenge historically is most people apply traditional algorithms to data assuming that it's going to be in a linear fashion, for example. So they'll linear regression analysis. Or if it's clustered data, they'll apply clustering technologies and so forth. The challenge is, what happens if your data is in a flare shape? Or what if it's in a circular shape? Or what if it's time series based and so forth? What we do is, with TDA, the first thing it does, is we understand the shape of the data 'cause the data will tell you a lot about itself and its shape. And from that shape you can start to ask more intelligent questions about the data so you can unlock all of the insight. >> So it's really almost like, a higher order organization if you will. 'Cause we always look for patterns, right? That's what we always do as people. Alright, well Bob, really interesting conversation. >> Thanks. >> I really look forward to the next time we get a chance to sit down. >> I appreciate it. >> We'll have to leave it there for now. >> Alright, appreciate your time. >> Alright, Bob Griffin, he's the CEO at Ayasdi. I'm Jeff Frick, you're watching theCUBE. We're at the Chernoff event, it's called Security in the Boardroom, we'll be right back.

>> Live from the Walt Disney World Swan and Dolphin Resort in Orlando, Florida, it's theCUBE, covering Splunk .conf2016. Brought to you by Splunk. Now, here are your hosts John Furrier and John Walls. >> And welcome back here on theCUBE. The flagship broadcast of SiliconANGLE TV where we extract a signal from the noise. We're live at conf2016 here in Orlando, Florida on the show floor. A lot of activity, a lot of excitement, a lot of buzz and a really good segment coming up for you here. Along with John Furrier, I'm John Walls and we're joined by two gentlemen from the Herjavec Group, Robert Herjavec. Good to see you, sir. >> Greetings. Thank you for having us. >> The CEO, and Atif Ghauri is Senior VP at Herjavec. Good to see you, sir. >> Yes. >> First off, Robert, congratulations. Newly married, your defense was down for a change. Congratulations on that. (laughter) >> Oh thank you. It was wonderful. It was a great wedding, lots of fun but casual and just a big party. >> Yeah, it was. Looked like, pictures were great. (laughter) People obviously know you from Shark Tank. But the Herjavec Group has been, really, laser focused on cyber security for more than a decade now. Tell us a little bit about, if you would, maybe just paint the broad picture of the group, your focus, and why you drilled down on cyber. >> Yeah, I've been in the security business for about 30 years. I actually helped to bring a product called CheckPoint to Canada firewalls, URL filtering, and that kind of stuff. And we started this company 12 years ago, and our vision was to do managed services. That was our vision. No other customer's vision, but our vision. And we thought we'd do $5 million in sales in our first year and we did $400000. The market just wasn't there. SIEM technology, log aggregation isn't what it is today. I mean, I think at the time, it was enVision. What was it called? >> Yeah, enVision. >> enVision. And then RSA bought them. That was really the first go-to-market SIEM. Then you had ArcSight and Q1. So our initial business became around log aggregation, security, writing parsers. And then over time it grew. It took us five years to get to $6 million in sales, and we'll do about $170 million this year. We went from a Canadian company to really a global entity. We do a lot of business in the States, UK, Australia, everywhere. >> But you're certainly a celebrity. We love havin' you on theCUBE, our little Shark Tank in and of itself. But you're also an entrepreneur, right? And you know the business, you've been in software, you've been in the tech business, so you're a tech athlete, as we say. This world's changing right now. And I'm certain you get a lot of pitches as entertainment meets business. But the fact that the entrepreneurial activity, certainly in the bay area and San Francisco, the Silicon Valley, where I live, and all around the world, is really active. Whether you call the programmer or culture or just the fact that the cloud is allowing people to start companies, you're seeing a surge in entrepreneurship in the enterprise. (laughs) Which is like, was boring in the past, you know? You just mentioned CheckPoint in the old days, but now it's surging. Your thoughts on the entrepreneurial climate? >> I dunno if the enterprise entrepreneurship element is surging. By the way, I'm going to say intrepreneur, just the way I say it. Cuban always makes fun of me. (laughter) We don't say it like that in America! I'm like, screw off! (laughter) >> That's how you say it! >> I want to say it the way I want to say it. >> Well, internal entrepreneurs, right? Is that what you mean by intrepreneurship? >> Well, no. I'm just, it's just the way I say it. >> It's a Canadian thing. >> But business to business enterprise, we've always been in the enterprise business. So we're seeing a lot of growth in that area, a lot of VC money's going into that area, because it's more, you know, you can measure that level of return and you can go and get those customers. But on our show, we're a bubble. We don't do a lot of tech deals like we're talking because it's boring TV. Tech people love tech, consumers love the benefit of tech. You know, no consumer opens up their iPhone and says, oh my gosh, I love the technology behind my iPhone. They just love their iPhone. And our show is really a consumer platform that is-- >> It's on cable TV, so it's got a big audience. So you got to hit the wide swath-- >> We're one of the highest-rated shows on network television. Eight years, three Emmys. You know, it's a big show now. And what we've all learned is, because Mark Cuban and I are tech guys, we used to look for stuff we know. We don't invest in stuff we know any more. We invest in slippers, ugly Christmas sweaters, food products, because if you can tap into that consumer base, you're good to go. >> So bottom line, has it been fun for you? I mean, the show has been great. I mean, obviously the awards have been great. Has it been fun for you? What's it been like, what's the personal feeling on being on the Shark Tank. >> You know, filming is fun, and hanging out is fun, and it's fun to be a celebrity at first. Your head gets really big and you get really good tables at restaurants. There's no sporting venue-- >> People recognize you. >> Yeah. >> You get to be on theCUBE. (laughter) >> I get be on theCUBE. >> Doesn't happen every day. >> You get to go everywhere. But after a while it gets pretty dry. But it really helps our brand. We compete, typically, against IBM, Verizon, and you know, the CEO of IBM, you're not going to see him selling his security. >> Well I know they're doin' a lot, spending a lot of cash on Watson, trying to get that to work, but that's a whole 'nother story. But let's get down and dirty on Splunk. You're here because you're doin' a talk. Give a quick take on what you're talking about, why are you here at .conf for Splunk? >> Yeah, we're doing a talk on data transformation. The world today is about data. And the amount of data points and access points and the internet of things, it's just exponential growth. The stat I always love, and Atif's heard it 1000 times is, there's roughly three billion people on the internet today, and there's roughly six billion or seven billion IP addresses. By 2020, according to the IPV Committee, there'll five, six billion people connected. And hundreds of trillions of IP addresses. >> And the IoT is going to add more surface area to security attacks. I mean, it used to be, the old days, in CheckPoint, the moat, the firewall, backdoor, frontdoor. >> The idea of the perimeter is gone now. There is no such thing as a perimeter any more, because everything you can access. So a lot of work in that area. And all of that comes to data and log aggregation. And what we've seen for years is that the SIEM vendors wanted to provide more analytics. But if you really think about it, the ultimate analytics engine is Splunk. And Splunk now, with their ESM module, is moving more into the security world and really taking away market share. So we're very excited by, we have a great relationship with the Splunk guys, we see nothing but future growth. >> And you're using Splunk and working with it with your customers? >> We do, we've been using Splunk for a while. We have a private cloud. Tell us a little bit about that. >> Yeah, so we eat our own dog food. So not only do we sell Splunk, but we also use it in-house. We've been usin' it for over five years, and it powers our analytics platform, which is a fancy way to say, reduces the noise from all the different clutter from all the IoT, from all the different type of alerts that are comin' in. Companies need a way to filter through all that noise. We use Splunk to solve that problem for us internally, and then, of course, we sell it and we manage it for Global 2000 customers, Fortune 100 companies all over the world. >> Tell us what about the role of data, 'cause data transformation has been a big buzzword it's a holistic message around businesses digitizing and getting digital assets in front of their customers. We have a big research division that does all of this stuff. By the end of the day, you know, the digitization business means you're going to have to go digital all the way. And role of data is not the old data warehousing days, where it's fenced away, pull it in, now you need data moving around, you need organic sharing of data, data's driving policies and new pattern recognitions for security. How do you guys see that evolving? How do you talk to your customers, because in a way, the old stuff can work if you use the data differently. We're seeing a pattern, like, hey, that's an algorithm I used 10 years ago. But now, with new data, that might be workable. What are some of the things that you're seeing now that customers are doing that you talk to that are leveraging data, like Splunk, in a new way? >> Well, that's really where Splunk adds so much value, because a friend of mine is the dean of USC. And he has a great saying, more data is not necessarily more information. And so, the mistake that we see customers making a lot is they're collecting the data, but they're not doing the right things with it. And that's really where Splunk and that level of granularity can add tremendous value, not just from logging, but from analytics and going upstream with it. >> Yeah, and also, to that point, it's just automation. There's too much data >> That's a great point. >> And it's only going to get bigger, right, based on that stat Robert rattled off. Now, we need some machine learning analytics to move it further. And all points aside, machine learning isn't where it needs to be right now. Today in the market, it still has a long way to go. I would call it a work in progress. But however, it's the promise, because there's too much data, and to secure it, to automate behavior, is really what what we're looking for. >> The example I saw is the innovation strategy's comin' to take, and they're growin' with mobility, growin' with cloud, increase the surface area, IoT. But the supervised areas of the enterprise were the doors, right? Lock the doors. And perimeter is now dead. So now you have an unsupervised environment and the enterprise at risk. Once the hackers get in, they're havin' their way. >> The internet is, like, a kindergarten playground where there are no rules and the teacher went home at lunch. (laughter) That is the internet. And kids are throwin' crap. >> And high school. I think it would be high school. Kindergarten through high school! >> And you have different-aged kids in there. >> It's chaos, bedlam! >> Very well said. The internet is chaos, but by nature, that's what we want the internet to be. We don't want to control the chaos because we limit our ability to communicate, and that's really the promise of the internet. It's not the responsibility of the internet to police itself, it's the responsibility of each enterprise. >> So what new things are happening? We're seeing successes. Certainly, we're reporting on companies that are being successful are the ones that are doing reverse of what was once done, or said differently, new ways of doing things. Throwin' out kind of tryin' to do a hybrid legacy approach to security, and seeing the new ways, new things, new better cat and mouse games, better honeypots, intelligent fabrics. What do you guys recommend to your customers and what do you see, in your talk, this digital transformation's definitely a real trend, and security is the catastrophic time bomb that's ticking for all customers. So that's, it dwarfs compliance, risk management, current... >> Well, I dunno if that's necessarily true, that it's a time bomb. You know, the number one driver for security, still, is compliance. We sell stuff people don't really want to buy. Nobody wakes up and the morning and says, yeah, I want to go spend another $5 million on security. They do it, frankly, because they have to. If none of their competitors were spending money on security, I don't think most enterprises would. I mean, whenever you have to do something because it's good to do, you have a limited up cycle. When you do something because there's a compliance reason to do it, or bad things happen to you, you're really going to do it. >> So you think there's consumer pressure, then, to have to do this, otherwise-- >> Interesting stat, the Wall Street Journal did a study and asked 1000 people on a street corner in New York if, for a hamburger, they will give away their social insurance number, their home number, and their name. 72% of people gave out that information freely. >> Better be a good hamburger. (laughs) >> Back to your point, though, I want to get a-- >> So I think consumers have an expectation of security, and how they police that is they simply go to somebody else. So if you're my retailer and you get breached, you know what I'm going to do? I'm going to go next door. But I think that the average consumer's expectation is, security's your responsibility, not mine. >> Okay, so on the B to B side, let's get that. I wanted to push you on something I thought I kind of disagreed with. If compliance, I agree, compliance has been a big part of data governance and data management. >> Yeah, PCI has been the biggest driver in security in the last five years. >> No doubt. However, companies are now sharing data more with other companies. Financial institutions are sharing core data with other financial institutions, which kind of teases out the trend of, I'll give you some of my data to get, to fight the fraud detection market because it's a $1 trillion problem. So as you start to see points of growth where, okay, you start to see people go outside their comfort zone on compliance to share data. So we're tryin' to rationalize that. Your thoughts? I mean, is that an indicator? Do you see that as a trend, or, I mean, obviously locking down the data would be, you know. >> I think it's challenging. I mean, we were at the president's council on security last year at Stanford. And you know, President Obama got up there, made some passionate speech about sharing data. For the goodness of all of us, we need to share more data and be more secure. I got to tell you, you heard that speech and you're like, yeah baby, I'm going to share my data, we're all going to work together. Right after him, Tim Cook got up there (laughter) and said, I will never share my data with anybody in the government! And you heard him, and you're like, I am never sharing my data with anybody. >> Well there's the tension there, right? >> Well, this is a natural-- >> Natural tension between government and enterprise. >> Well, I think there's also a natural tension between enterprises. There's competitive issues, competitor pressures. >> Apple certainly is a great case. They hoard their data. Well, this is the dilemma, right? You want to have good policy, but innovation comes from experimentation. So it's a balancing act between what do you kind of do? How do you balance-- >> Yeah, it's a great time to be in our space. I mean, look at this floor. How many companies are here? Splunk is growing by 30%, the show itself, 30% per year. They're going to outgrow this venue next year and they're going to go, probably, Vegas or somebody. I think that's exciting. But these are all point products. The fastest-growing segment in the computer business is managed services, because the complexity in that world is overwhelming, and it's extremely fragmented. There's no interlinking. >> Talk about your business in there right now. What are you guys currently selling, how many employees do you have, what's the revenues like, what's the product mix? >> Yeah, so we are a global company. So we have 10 offices worldwide and close to 300 employees. We're one of the fastest-growing companies in North America. We sell, our focus is managed security services. We do consulting as well as incident response remediation, but the day-to-day, we want your logs, we want to do monitoring, we want to help with-- >> So you guys come in and do deployments and integration and then actually manage security for customers? >> We do the sexy of gettin' it in, and then we also do the unsexy of managing it day-to-day. >> Atif, nothing unsexy about our work. (laughter) >> It's all sexy, that's what theCUBE show's about. >> It's all sexy! >> That's why theCUBE's a household name. We have celebrities coming on now. Soon we'll be on cable. >> That's right! This will be a primetime show. (laughter) >> Before we know it! >> That's funny, I got approached by a network, I can't tell you who, big network with a big producer to do a cybersecurity show. And so, they approached me and they said, oh, we think it's going to be so hot. It's such a topical thing. So they spent a day with me and our team to watch what we do. There is no cybersecurity show! (laughter) They're like, do you guys do anything besides sit on the computer? >> You have a meeting and you look at the monitor. It's not much of a show. >> Does anybody have a gun?! (laughter) >> It's not great for network TV, I think. >> Build a wall. >> Someone has to die in the end. That has to be network TV. And yeah, but I mean, there's a problem. There's 1.4 million cyber jobs open right now. And that's not even including any data science statistics. So you know, so we're reporting that-- >> I'm sure it's the same thing in data science. >> Same problem. How do you take a high skill that there's not enough talent for, hopefully, computer science education, all that stuff happens, and automate it. So your point about automation. This is the number one problem. How do you guys advise clients what the hell do they do? >> You know, automation's tough. We just had this meeting before we got on here, because in our managed service, it's people-driven. We want to automate it. But there's only a certain amount of automation you can do. You still need that human element. I mean, if you can automate it, somebody can buy a product and they're secure. >> Machine learning isn't where it's supposed to be. Every vendor aside, machine learning's not where it needs to be, but we're getting there. Having succinct automation helps solve the cybersecurity labor shortage problem, because the skill level that you hire at can go lower. So you reduce the learning curve of who you need to hire, and what they do. >> That's a great point. I think the unsupervised machine learning algorithms are going to become so much smarter with the Splunk data, because they are, that's a tough nut to crack because you need to have some sort of knowledge around how to make that algorithm work. The data coming in from Splunk is so awesome, that turns that into an asset. So this is a moving train. This is the bigtime. Okay, go step back for a second, I want to change gears. Robert, I want to get your thoughts, because since you're here and you do a lot of, you know, picking the stocks, if you will, on Shark Tank, in the tech world, our boring tech world that we love, by the way. >> We love it too. >> How do you, as someone who's got a lot of experience in cycles of innovation, look at the changing digital transformation vendor landscape, Splunk, companies like Oracle tryin' to transform, Dell bought EMC, IBM's pivoting, Amazon is booming. How do you look at the new digital enterprise, and how do you look at that from, if you're a customer, an investor, where's the growth stocks, where's the growth companies, what's the growth parameters, what's your thoughts? >> One of the reasons a lot of our industry, why I got into tech was I had no money, my dad worked in a factory, my mom was a receptionist. And the old adage is, to make money, you need money. To get ahead, it's not what you know, it's who you know. I didn't know anybody. And the value of tech is tech transforms every three years. We follow these cycles where we eat our own young and we throw away stuff that doesn't add value. Tech is the great equalizer, 'cause if you don't add value, nobody cares. And you know, when I'm starting out as a guy with a small company, I love that! We're going to kick ass, we're going to add value. Now that we're a little bigger-- >> Well, when you're a young company you can eat someone's lunch, because if they're not paying attention, you can come in and-- >> For sure. It gets harder as you get bigger because now we're the big guys that somebody in their basement's tryin' to take out. But you know, we see tremendous innovation in security. If you look back three years, who were the leaders in the SIEM space? ArcSight, Q1, Nitro to a lesser degree, and enVision. Today, does RSA have a strategy around a SIEM? They have Netwitness, you know, security analytics, which is kind of a SIEM. Q1 is in the throes of the IBM machine, somewhere in their gut, nobody knows. ArcSight, who buys ArcSight anymore? It's so complicated. Who's the leader? Splunk! >> So back to the old classic team. Obviously, you have good people on the management team. Product matters now, in tech, doesn't it? More than ever. Obviously, balance sheet. Okay, let's get back to the data transformation. So you know, data is so critical now, and again, it's more from that data warehouse, which still is around, but to real-time data having value, moving it into different applications. Question is, how do you value data? I mean, you can't put it on the balance sheet. I mean, people value factories. GE said, we have all this investment in machines and assets. They worry about someone getting their data and doing a judo move on them. So data is truly an asset that's flying out of their network. How does companies value data? Can it ever be on the balance sheet? How do you look at that? >> I don't think data, in of itself, has any value. It's the effect of the data that has the value. And it's a very singular, it's what somebody does to it. Whatever the data is worth to you, from a business perspective, it's worth fundamentally more to an outside bad party because they can package that data and sell it to a competitor, a foreign government, all those kind of places. So it's the collection of raw data and applying it to something that has meaning to a third party. >> So it's like thermodynamics, really. Until it's in motion, it's really not worth anything. I mean, that's what you're saying. Data's data until it's put to work. >> Right, I don't think you're ever going to see it on a balance sheet as a hard, core value, because it has to have a transformative value. You have to do something with it. It's the something. >> So pretend you're in Shark Tank and you're a data guy, and you say, boss, I need more budget to do security, I need more budget to expand our presence. And the guy says sorry, I need to see some ROI on that data. Well, I just have a gut feeling that if we move the data around, it's going to be worth something. Oh, I pass. You can't justify the investment. So a lot of that, I mean, I'm oversimplifying it, but that's kind of like a dialogue that we hear in customers. How do you get that-- >> What I always tell CIOs and CCOs, it's challenging to get budget to do a good thing or the right thing. It's easier to get budget to do the necessary thing. And so, necessary is defined by the nature of your business. So if you make widgets and you want to get more budget to protect the widgets, no one cares. No one's sitting around, and like oh, are my widgets safe? They are, to certain degree, and they'll have limited budget for that. But if you go to them and say, you know what, we have a risk that if somebody can attack our widgets, we're going to be down for three days. And being down for three days or three hours has a dollar cost of $5 million. I need an extra $2.5 million to protect that from happening. As a business guy and a CEO, I understand that. >> That's great advice. >> And that's the biggest challenge, still, with security people is, we're technical people. We're not used to talking to business guys. >> It's like house insurance, in a way, or insurance. You invest this to recover that. >> It's a great analogy. You know, I used to race cars, and I had a life insurance premium for key man insurance. And my insurance agent comes along and says, you should buy a bigger policy. I'm like, I don't need a bigger policy. It's so much money, we're okay. And then he says to me, you know, if you die in a racecar, I'm not sure you're covered. (laughter) But if you pay me another $10000 a year in coverage, you're covered. Did I buy it? Absolutely. And it's the same analogy. >> That's very necessary. Personal question for you. So if you're, your dad had a factory, you mentioned. I saw that you mentioned that earlier. If he had a factory today in a modern era of IoT, and you were going to give him a digital transformation consulting project, how would you advise him? Because a lot of people are taking their analog business and kind of digitizing it. Some already have sensors in there. So you see it in manufacturing, and certainly, the industrial aspect of IoT has been a big deal. How would you advise your dad building a factory today? >> Yeah, so I think there's two aspects to it. One is just, you know, everything we've been talking about, data transformation, data analytics, making things better, none of those things are possible unless you're actually collecting the data. It's like, customers come to us and say, you know what, we don't want you to just manage our logs and tell us what's going on, we want higher-level value. And I'm like, no, I get that, but unless you're actually aggregating the logs, none of the upstream stuff matters. So first thing is, you have collect the data. Whether that's sensors, old devices, mechanical devices, and so on. The second part of it is, the minute you open up your factory and open up the mechanical devices and attach them to a PC or anything that's network-based, you're open for risk. And so, we're seeing that now in utilities, we're seeing that with gas companies, oil companies. You know, up until a few years ago, you couldn't physically change the flow of a pipeline, unless there was a physical connection, a mechanical on-off. It was very binary. Today, all those systems are connected to the internet. And it saves companies a lot of money 'cause they can test them and stuff. But they're also open to hackers. >> Bigtime. >> Well gentlemen, we appreciate the time. >> Thank you. >> And who says tech hasn't got a little pizazz, I mean-- (laughter) >> Come on, I was on Dancing with the Stars, that's a lot of pizazz! >> It's been great! >> You guys are exciting, but you are, no! >> Dancing with the Stars, of course! >> All right. >> Thank you very much. >> Well, thanks for bein' in theCUBE Tank, we appreciate that. >> Thank you. >> Don't call us, we'll call you. (laughter) Gentlemen, thank you very much. >> We're booked, maybe we can get you on next time. >> Okay, we're out. >> .conf2016, CUBE coverage continues live from Orlando. (electronic jingle)