>> Announcer: TheCUBE presents Ignite '22, brought to you by Palo Alto Networks. >> Welcome back to Las Vegas. It's theCUBE covering Palo Alto Networks '22, from the MGM Grand, Lisa Martin with Dave Vellante. Dave, we are going to unpack in the next few minutes what we heard and saw at day one of Palo Alto Networks, Ignite. A lot of great conversations, some great guests on the program today. >> Yeah last event, CUBE event of the year. Probably last major tech event of the year. It's kind of an interesting choice of timing, two weeks after reInvent. But you know, this crowd is it's a lot of like network engineers, SecOps pros. There's not a lot of suits here. I think they were here yesterday, all the partners. >> Yeah. >> We talked to Carl Sunderland about, Hey, these, these guys want to know how do I grow my business? You know, so it was a lot of C level executives talking about their business, and how they partner with Palo Alto to grow. The crowd today is really, you know hardcore security professionals. >> Yeah. >> So we're hearing a story of consolidation. >> Yes. >> No surprise. We've talked about that and reported on it, you know, quite extensively. The one big takeaway, and I want, I came in, as you know, wanting to understand, okay, can you through m and a maintain, you know, build a suite of great, big portfolio and at the same time maintain best of breed? And the answer was consistent. We heard it from Nikesh, we heard it from Nir Zuk. The answer was you can't be best of breed without having that large portfolio, single data lake, you know? Single version of the truth, of there is such a thing. That was interesting, that in security, you have to have that visibility. I would imagine, that's true for a lot of things. Data, see what Snowflake and Databricks are both trying to do, now AWS. So to join, we heard that last week, so that was one of the big takeaways. What were your, some of your thoughts? >> Just impressed with the level of threat intelligence that Unit 42 has done. I mean, we had Wendy Whitmer on, and she was one of the alumni, great guest. The landscape has changed so dramatically. Every business, in any industry, nobody's safe. They have such great intelligence on what's going on with malware, with ransomware, with Smishing, that they're able to get, help organizations on their way to becoming cyber resilient. You know, we've been talking a lot about cyber resiliency lately. I always want to understand, well what does it mean? How do different organizations and customers define it? Can they actually really get there? And Wendy talked about yes, it is a journey, but organizations can achieve cyber resiliency. But they need to partner with Palo Alto Networks to be able to understand the landscape and ensure that they've got security established across their organization, as it's now growingly Multicloud. >> Yeah, she's a blonde-haired Wonder Woman, superhero. I always ask security pros that question. But you know, when you talk to people like Wendy Whitmore, Kevin Mandy is somebody else. And the people at AWS, or the big cloud companies, who are on the inside, looking at the threat intelligence. They have so much data, and they have so much knowledge. They can, they analyze, they could identify the fingerprints of nation states, different, you know, criminal organizations. And the the one thing, I think it was Wendy who said, maybe it was somebody else, I think it was Wendy, that they're they're tearing down and reforming, right? >> Yes. >> After they're discovered. Okay, they pack up and leave. They're like, you know, Oceans 11. >> Yep. >> Okay. And then they recruit them and bring them back in. So that was really fascinating. Nir Zuk, we'd never had him on theCUBE before. He was tremendous founder and and CTO of Palo Alto Networks, very opinionated. You know, very clear thinker, basically saying, look you're SOC is going to be run by AI >> Yeah. >> within the next five years. And machines are going to do things that humans can't do at scale, is really what he was saying. And then they're going to get better at that, and they're going to do other things that you have done well that they haven't done well, and then they're going to do well. And so, this is an interesting discussion about you know, I remember, you know we had an event with MIT. Eric Brynjolfsson and Andy McAfee, they wrote the book "Second Machine Age." And they made the point, machines have always replaced humans. This is the first time ever that machines are replacing humans in cognitive functions. So what does that mean? That means that humans have to rely on, you know, creativity. There's got to be new training, new thinking. So it's not like you're going to be out of a job, you're just going to be doing a different job. >> Right. I thought Nir Zuk did a great job of explaining that. We often hear people that are concerned with machines taking jobs. He did a great job of, and you did a great recap, of articulating the value that both bring, and the opportunities to the humans that the machines actually deliver as well. >> Yeah so, you know, we didn't, we didn't get deep into the products today. Tomorrow we're going to have a little bit more deep dive on products. We did, we had some partners on, AWS came on, talked about their ecosystem. BJ Jenkins so, you know, BJ Jenkins again I mean super senior executive. And if I were Nikesh, he's doing exactly what I would do. Putting him on a plane and saying, go meet with customers, go make rain, right? And that's what he's doing is, he's an individual who really knows how to interact with the C-suite, has driven value, you know, over the years. So they've got that angle goin', they're driving go to market. They've got the technology piece and they've, they got to build out the ecosystem. That I think is the big opportunity for them. You know, if they're going to double as a company, this ecosystem has to quadruple. >> Yeah, yeah. >> In my opinion. And I, we saw the same thing at CrowdStrike. We said the same thing about Service Now in 2013. And so, what's happened is the GSIs, the global system integrators start to get involved. They start to partner with them and then they get to get that flywheel effect. And then there's a supercloud, I think that, you know I think Nir Zuk said, Hey, we are basically building out that, he didn't use the term supercloud. But, we're building out that cross cloud capability. You don't need another stove pipe for the edge. You know, so they got on-prem, they got AWS, Azure, you said you have to, absolutely have to run on Microsoft. 'Cause I don't believe today, right? Today they run on, I heard somebody say they run on AWS and Google. >> Yeah. >> I haven't heard much about Microsoft. >> Right. >> Both AWS and Google are here. Microsoft, the bigger competitor in security, but Nir Zuk was unequivocal. Yes, of course you have to run, you got to run it on an Alibaba cloud. He didn't say that, but if you want to secure the China cloud, you got to run on Alibaba. >> Absolutely. >> And Oracle he said. Didn't mention IBM, but no reason they can't run on IBM's cloud. But unless IBM doesn't want 'em to. >> Well they're very customer focused and customer first. So it'll be interesting to see if customers take them in that direction. >> Well it's a good point, right? If customers say, Hey we want you running in this cloud, they will. And, but he did call out Oracle, which I thought was interesting. And so, Oracle's all about mission critical data, mission critical apps. So, you know, that's a good sign. You know, I mean there's so much opportunity in cyber, but so much confusion. You know, sneak had a raise today. It was a down round, no surprise there. But you know, these companies are going to start getting tight on cash, and you've seen layoffs, right? And so, I dunno who said it, I think it was Carl at the end said in a downturn, the strongest companies come out stronger. And that's generally, generally been the case. That kind of rich get richer. We see that in the last downturn? Yes and no, to a certain extent. It's still all about execution. I mean I think about EMC coming out of the last downturn. They did come out stronger and then they started to rocket, but then look what happened. They couldn't remain independent. They were just using m and a as a technique to hide the warts. You know so, what Nir Zuk said that was most interesting to me is when we acquire, we acquire with the intent of integrating. ServiceNow has a similar philosophy. I think that's why they've been somewhat successful. And Oracle, for sure, has had a similar philosophy. So, and that idea of shifting labor into vendor R and D has always been a winning formula. >> I think we heard that today. Excited for day two tomorrow. We've got some great conversations. We're going to be able to talk with some customers, the chief product officer is on. So we have more great content coming from our last live show over the year. Dave, it's been great co-hosting day one with you. Look forward to doing it tomorrow. >> Yeah, thanks for doing this. >> All right. >> All right. For Dave Vellante, I'm Lisa Martin. You've been watching theCUBE, the leader in live enterprise and emerging tech coverage. See you tomorrow. (gentle music fades)

>> Announcer: Live, from Orlando, Florida, it's theCUBE, covering ServiceNow Knowledge17. Brought to you by ServiceNow. >> We're back. This is Dave Vellante with Jeff Frick. Chris Bedi is here, he's the CIO of ServiceNow. Chris, good to see you again. >> Good to see you as well. >> Yeah, so, lot going on this week, obviously. You said you're getting pulled in a million different directions. One of those, of course, is the CIO event, CIO Decisions, it's something you guys host every year. I had the pleasure of attending parts of it last year. Listened to Robert Gates and some other folks, which was great. What's happened this year over there? >> So, CIO Decisions, it's really where we bring together our forward thinking executives. We keep it intimate, about a hundred, because really it's about the dialogue. Us all learning from each other. It really doesn't matter, the industry, I think we're all after the same things, which is driving higher levels of automation, increase the pace of doing business, and innovating at our companies. So we had Andrew McAfee, MIT research scientist, really helping push the boundaries in our imagination on where machine learning and predictive analytics could go. And then we had Daniel Pink talking about his latest book, To Sell is Human. And really as CIOs, we often find ourselves selling new concepts, new business models, new processes, new analytics, new ways of thinking about things. And so, really trying to help, call it exercise, our selling muscle, if you will. Because we have to sell across, up, down, and within our own teams, and that is a big part of the job. Because as we move into this new era, I think the biggest constraint is actually between our own ears. Our inability to imagine a future where machines are making more decisions than humans, platforms are doing more work on behalf of humans. Intellectually, we know we're headed there, but he really helped to bring it home. >> Well, you know, it's interesting, we talk about selling and the CIOs. Typically IT people aren't known as sales people, although a couple years ago I remember at one of the Knowledges, Frank Slootman sort of challenged the CIO to become really more business people, and he predicted that more business people would become CIOs. So, do you consider yourself a sales person? >> I do. Selling people on a vision, a concept, the promise of automation. You know, technology, people fear it, right? You know, when you're automating people's work the fear and the uncertainty endowed, or what I call the organizational anti-bodies, start to come out. So you have to bust through that, and a large part of that is selling people on a promise of a better future. But, it's got to be real. It's got to be tied to real business outcomes with numbers. It can't be just a bunch of PowerPoint slides. >> So we always like to take the messaging from the main tent and then test it with the practitioners, and this year there's this sort of overall theme of working at lightspeed, you and I have talked about this, how does that resonate with CIOs and how do you put meaning behind that? 'Cause, you know, working at lightspeed, it's like, ooh that sounds good, but how do you put meat on that bone? >> So, the way I think about working at lightspeed is three dimensions, velocity, intelligence, and experience. And velocity is how fast is your company operating? I read a study that said 40% of Fortune 500 companies are going to disappear in the next 10 years. That's almost half, right? But I think what's going to separate the winners from the losers is the pace at which they can adapt and transform. And, with every business process being powered by IT platforms, I think CIOs and IT are uniquely positioned to explicitly declare ownership of that metric and drive it forward. So velocity, hugely important. Intelligence. Evolving from the static dashboards we know today, to real time insights delivered in context that actually help the human make decisions. And, BI in analytics as we know it today, needs to evolve into a recommendation engine, 'cause why do we develop BI in analytics? To make decisions, right? So why can't the platform, and it can, is the short answer, with the ability to rapidly correlate variables and recognize complex patterns, give recommendations to the humans, and I would argue, take it a step further, make decisions for the humans. ServiceNow did a study that said 70% of CIOs believe machines will make more accurate decisions than humans, now we just got to get the other 30% there. And then on experience, I think the right experience changes our behavior. I think we in IT need to be in the business of creating insanely great customer and employee experiences. Too often we lead with the goal of cost reduction or efficiency, and I think that's okay, but if we lead with the goal of creating great experiences, the costs and the inefficiencies will naturally drop out. You can't have a great experience and have it be clunky and slow, it's just impossible. >> And it's interesting on the experience because the changing behavior is the hardest part of the whole equation. And I always think back to kind of getting people off an old solution. People used to say, for start ups, you got to be 10x better or 1/10th the cost. 2x, 3x is not enough to get people to make the shift. And so to get the person to engage with the platform as opposed to firing off the text, or firing off an email, or picking up the phone, it's got to be significantly better in terms of the return on their investment. So now they get that positive feedback loop and, ah, this is a much better way to get work done. >> It has to. And we can't, you know, bring down the management hammer and force people to do things. It's just not the way, you know, people work. And very simple example of an experience driving the right behavioral outcome, so ServiceNow is a software company, very important for us to file patents. The process we had was clunky and cumbersome. You know, we're not perfect at ServiceNow either. So we re-imagined that process, made it a mobile first experience built on our platform, of course. But by simply doing that, there was no management edict, you have to, no coercion, if you will, we saw an 83% increase in the number of patent applications filed by the engineers. So the right experience can absolutely give you the right desired economic behavior. >> You talked about 70% of CIOs believe that machines will make better decisions than humans. We also talked about Andrew McAfee, who wrote a book with Eric Brynjolfsson. And in that book, The Second Machine Age, they talked about that the greatest chess player in the world, when the supercomputer beat Garry Kasparov, he actually created this contest and they beat the supercomputer with a combination of man and other supercomputers. So do you see it as machine, sort of, intelligence augmenting human intelligence, or do you actually see it as machines are going to take over most of the decisions. >> So, I actually think they are going to start to take over some basic decision making. The more complex ones, the human brain, plus a machine, is still a more, you know, advanced, right? Where it's better suited to make that decision. But I also think we need to challenge ourselves in what we call a decision. I think a lot of times, what we call a decision, it's not a decision. We're coming to the same conclusion over and over and over again, so if a computer looked at it, it's an algorithm. But in our brains, we think a human has to be involved and touch it. So I think it's a little bit, it'll challenge us to redefine what's actually a decision which is complex and nuanced, versus we're really doing the same thing over and over again. >> Right, and you're saying the algorithm is a pattern that repeats itself and leads to an action that a machine can do. >> Yeah. >> It doesn't require intuition >> And we don't call that a decision anymore. >> Right, right. So, in thinking about you gave us sort of the dimensions of lightspeed, what are some of the new metrics that will emerge as a result of this thinking? >> Yeah, I don't think any of the old metrics go away. I'll talk about a few. You know, in lightspeed, working at lightspeed, we need to start measuring, for one, back on that velocity vector, what is the percentage of processes in your company that have a cycle time of zero, or near zero. Meaning it just happens instantaneously. We can think of loads of examples in our consumer life. Calling a car with Uber, there's no cycle time on that process, right? So looking at what percentage of your processes have a cycle time of zero. How much work are you moving to the machines? What percentage of the work is the platform proactively executing for you? Meaning it just happens. I also think in an IT context of percentage of self healing events, where the service never goes down because it's resilient enough and you have enough automation and intelligence. But there are events, but the infrastructure just heals itself. And I think, you know, IT itself, we've long looked at IT as a percentage of revenue. I think with all of the automation and cost savings and efficiencies we drive throughout the enterprise, we need to be looking at IT as a margin contribution vehicle. And when we change that conversation, and start measuring ourselves in terms of margin, I think it changes the whole investment thesis, in IT. >> So that's interesting. Are you measured on margin contribution? >> We're doing that right now. I don't, if an IT organization is waiting for the CFO or CEO to ask them about their margin contribution, they're playing defense. I think IT needs to proactively measure all of it's contributions and express it in terms of margin. 'Cause that's the language the CEO, and COO, and CFO are talking about, so meet them in a language that they understand better. >> So how do you do, I mean, you certainly can create some kind of conceptual value flow. IT supports this sort of business process and this business process drives this amount of revenue or margin. >> So I stay away from revenue, because I think any time IT stands up and says, we're driving revenue, it's really hard. Because there's so many external and internal factors that contribute to that. So we more focus on automation, in terms of hours saved, expressing and dollarizing that. Hard dollars, that we're able to take out of the organization and then bubbling that into an operating margin number. >> Okay, so you sort of use the income statement below the revenue line to guide you and then you fit into that framework. >> Absolutely. >> When you talk to other CIOs about this, do they say, hey, that sounds really interesting, how do I get started on that, or? >> I think it resonates really well, because, again, IT as percentage of revenue is an incredibly incomplete metric to measure our contribution. With everything going digital, you want to pour more money into technology. I mean, studies have shown, and Andrew McAfee talked about this, over the last 50, 100 years, the companies that have thrived have poured more, disproportionally more, into technology and innovation than their competitors. So, if we only measure the cost side of the equation we're doing ourselves a disservice. >> And so, how do you get started on this path, I mean, let's call this path, sort of, what we generally defined as lightspeed, measured on margin, how do you get started on that? >> First step is the hardest. But, it's declaring that your going to do it. So we've come up with a framework, you know, that maps at a process level, at a department level, and at a company level, where are we on this journey to lightspeed? If lightspeed is the finish line, where are we? And I define three stages, manual, automated, cloud, before you get to lightspeed. And then, using those same three dimensions of velocity, intelligence, and experience, to tell you where you are. And, the very first thing we did was baseline all of our business processes, every single one, and mapped it. But once you have it mapped on that framework then you can say, how do we advance the ball to the next level? And, it's not going to magically happen overnight. This is hard work. It's going to happen one process at a time, right? But pretty soon everything starts to get faster and I think things will start to really accelerate. >> When you think about, sort of, architecting IT, at ServiceNow versus some other company, I mean, you come into ServiceNow as the CIO, everything runs on ServiceNow, that is part of the mandate, right? But that's not the mandate at every company, now increasingly may be coming that way in a lot of companies, but how is your experience at ServiceNow differ from the some of the traditional G2000? >> Probably the unique part about being the CIO at ServiceNow is actually really fun, in that I get to be customer zero in that I implement our products before all of our customers. You know, get to sit down with the product managers, discuss real business problems that all of our customers are facing, and hopefully be their voice inside the four walls of service now, and be the strategic partner to the product organization. Now implementing everything, our goal is to be the best possible implementation of ServiceNow on the planet. And that's not just demonstrated by go lives, it's demonstrated by, again, the economic and business outcomes we're deriving from using the platform. So, that part is fun, challenging, and hard work all at the same time. >> So how's Jakarta lookin'? >> Fantastic. We're super excited about everything that's coming out, whether it's the communities on customer service, or our software asset management. That's been a pain, right, for IT organizations for a long time, which is these inbound software audits, from other companies, and you're responding to them and it's a fire drill. In my mind, our software asset management transforms software audits from a once a year, twice a year event, to always-on monitoring, where you're just fixing it the whole time. And it's not an event anymore. I mean, the intelligence that we're baking into the platform now, super exciting around the machine learning and the predictive analytics concepts, we have more analytics than we had before, I mean there's just so much in there, that's just exciting. We're already using it, I can't wait for our customers to get a hold of it. >> Well, CJ this morning threw out a number of 30-plus percent performance improvement. I had said to myself, your saying that with conviction, that's 'cause you guys got to be running it yourselves. >> Yeah, we are. >> What are you seeing there? >> That's not a trivial number, and I think the product teams have done a great job really digging in and makin' sure our platform operates at lightspeed. >> One of the things that Jeff and I have been talking about this week, and really this is your passion here, is adoption, how do you get people to stop using all these other tools like email, and kind of get them to use the system? >> I think, showing them the promise of what it can bring. I think it's different conversations at different levels. I think, too, an operator, someone who's using the email to manage their work, they're hungry for a different solution. Life, working, and email, and managing your business that way, it's hard, right? To a mid-level manager, I think the conversation is maybe about the experience, how consumers of their service will be happier and more satisfied. At executive level, it gets maybe more into some of the economic outcomes, of doing it. Because implementing our platform, you know, you're going to burn some calories doing it, not a lot. Our time to value is really really quick, but still, it's a project and it's initiative and it's got to have an outcome tied to it. >> You know, Chris, as you're saying that it's always tough to be stuck kind of half way. You know, you're kind of on the tool internally and it's great. >> We don't use the word tool. >> Excuse me, not the tool. The app, the platform, actually. But then you still got external people that are coming at you through text, email, et cetera. I mean, is part of the vision, and maybe it's already there, I'm not as familiar with the parts I should be, in terms of enabling kind of that next layer of engagement with that next layer of people outside the four walls, to get more of them in it as well. Because the half-pregnant stage is almost more difficult because you're going back and forth between the two. >> And our customer service product does a lot of that. If you look at what Abhijit showed today, which is fantastic, Communities is another modality to start to interact with people. Certainly, we have Connect, part of our platform, is a collaboration app within the overall platform, so you can chat, just like you would with any consumer app, in terms of chatting capabilities, and that mobile first experience. We're thinking about other modalities too. Should you be able to talk to ServiceNow, just like you talk to Alexa, and converse with ServiceNow, Farrell touched on this a little bit, through natural language, right? We all know it's coming, and it's there, it's just pushing in that direction. >> How about the security piece? You know, Shawn shared this morning, you guys are well over year in now, and he talked about that infamous number of 200 plus days-- >> Chris: Nine months, yeah. >> Yeah, compressing that. Are you seeing that internally in your own? >> We are. We use Shawn's product, we're a happy customer. The vulnerability management, the security incident response, and very very similar results. And just like the customer who was on stage said, go live in Iterate, and that's exactly what we did. Everyone has a vulnerability management tool, like a Qualys, that's feeding in. Bring in all those Qualys alerts, our platform will help you normalize them and just start to reduce the level of chaos for the SOC and IT operations. Then make it better, then drive the automation, so we're seeing very similar benefits. >> How do you manage the upgrade side, we've been asking a lot of customers this week in the upgrade cycle. Some say, ah, I'll do in minus one just to sort of let the thing bake a little bit. You guys are in plus one. How do you manage that in production, though? >> Sure, so we upgrade before our customers, and that's part of our job, right? To make sure we test it out before our customers. But I'll say something in general about enterprise software upgrades, which is, there is a cost to them and the cost is associated with business risk. You want to make sure you're not going to disrupt your business. There is some level of regression testing you just have to do. Now, strategies I think that would be wise are automating as much of that testing as you can, through a testing framework, which we're helping our customers do now. And I think with some legacy platforms, that was incredibly expensive and hard and you could never quite get there. Us being a modern cloud platform, you can actually get there pretty quickly to the point where the 80, 90% of your regression testing is automated and you're doing that last 10 to 20%. 'Cause at the end of the day, IT needs to make sure the enterprise is up and running, that's job number one. But that's a strategy we employ to make upgrades as painless as possible. >> That's got to be compelling to a lot of the customers that you talk to, that notion of being able to automate the upgrade process. >> For sure, it is. >> You're eliminating a lot of time and they count that as money. >> It is money, and automating regression testing, it's a decision and a strategy but the investment pays off very very quickly. >> Dave: So there's an upfront chunk that you have to do to figure out how to make that work? >> Just like anything worth doing. >> Dave: Yeah, right. >> Right? >> Excellent. What's left for you at the show? >> What's left for me? I love interacting with customers. I got to talk with a lot of CIOs at CIO Decisions. I actually enjoy walking through the partner pavilion and meeting a lot of our partners and seeing some of the innovation that their driving on the platform. And then just non-stop, I get ideas all day from meeting with customers. It's so fun. >> Dave: Chris, thanks very much for coming to theCube. >> Thank you. >> We appreciate seeing you again. >> Chris: Good seeing you. >> Alright, keep it right there everybody. Jeff and I will be back with our next guest. This is theCube, we're live from Knowledge17. We'll be right back.