>>from around the >>globe, it's the >>cube with coverage of Kublai >>khan and cloud Native con, europe 2021 virtual brought to you by red hat. The cloud >>native computing >>foundation and ecosystem partners. Welcome back to the cubes coverage of Yukon 21 cloud native con part of the C n C f s event. This is the cubes continuing coverage. You got a great guest cube alumni entrepreneurs to borrow founder and ceo of up bound. Great to see you remotely too bad. We're not in person. But soon the pandemic Is right around the corner will be post pandemic with searing events are coming back. Great to see you. Thanks for coming on for coop con 21 >>Good, good to be back on the cube, john >>great to see you. You know, I've always loved your career, what you've been doing with that many conversations on the Cuban. Also in person, you're the creative rook and cross plane um, C N C F projects there. Um great venture, really part of this cloud native revolution that's happening, you were early on and the history of your career, but now you're seeing it go mainstream. Let's get into that on this session, because I really want to dig into this across cloud and now get ops is hugely popular. This is kind of what you call day to operate your ongoing, this is the future. This is a new environment. Before we get going, talk about the update on your in what's new with cross plane. >>Uh, So cross plane is growing as you know, it's a multi cloud control plane that essentially lets you uh you can connect it up to all the different infrastructure vendors and lets you manage infrastructure in a consistent way consistent with what, you know, what we do with the tops and and on the kubernetes ap I um and so the community has been growing tremendously. We've just applied for it together, the incubation status at the CNC F and really happy with all the progress around it. It's, it's such an amazing journey we've been on with cross plane, >>you know, it's funny you watch all the, the evolution of the cloud in the early days, it was, what is cloud, the big debate, people define what cloud is that? It was Oh yeah, clouds great. You can, you know, start up cloud developers, Greenfield, then it became enterprise cloud around 2015. Now, you know, today the cloud is not so much, you know, moving to the cloud as it was in 2015, it's like scaling and cloud, that is true enterprise grade. Um real serious operational security impacts multiple resources and this is where cross cloud comes in or, or, you know, I see hybrid clouds operating model, everyone has agreed on that. That's the architecture, but that also brings in assumes multiple clouds, right? This is where the new kind of control plane or you guys called cross cloud management kicks in. This is an enterprise priority. From what I can see. Do you agree with that? Can you share your commentary on how much our enterprises of prioritizing cross cloud management? Because that seems to be the Hot one. What's your take on us? >>Yeah, the way, the way we see it is that and we see this with customers and we see those folks in the community. Almost every enterprise we talked to is modernizing their I. T. You know, that, as you said, they're not going to cloud, they're already in cloud, but they're doing so many more things to kind of accelerate the pace of innovation and reduce the time for them to ship applications, which is now a fundamental part or fundamental measure uh of their success. Right. And so what we're seeing is that they're organizing into platform teams internally, and these teams are the ones that own the cloud accounts, they're the ones that are responsible for deploying infrastructure cross, whether it's cross cloud or hybrid cloud. Um and these teams are essentially organizing to build what looks like an internal platform and a key ingredient of this. Internal platform is a control plane and this is what enables getups. You see kubernetes as a control plane, that's in there, um it's it's the piece that's allowing them to actually connect to different clouds. It's the piece that's allowing them to manage their infrastructure, whether it's on premise or in cloud, it's the thing that's allowing them to do day to operations, all of that's happening in an interesting way. It's, it's happening within the enterprise. It is their own platform and it layers on top of the back and infrastructure that they're using, whether it's cloud providers or hybrid, you know, infrastructure, it's happening in a way that's enterprise from the enterprise and going out to the vendors, which is a little different model than we've seen in the past. And that's where multi cloud tends to come in and multi vendor or heterogeneity in general. Uh we see that very, very commonly in in the enterprise, >>you know, I think you're exactly right. That's classic market evolution in computer industry, you know, multi multi vendors, ultimately when things start to settle in on the massive growth. Hybrid cloud, however, is really kind of where the action is today. And you can see people struggling and innovating around the area of continuous operations and as you can use development develops concept. But the problem is that as they realize, well stuffs in production, it's in the public cloud, its on premises, you know, this, the operational piece starts to rear its head and we gotta fix that. And then they connect the dots a saying, if multi cloud is coming, which people generally agree upon, then they go, if we don't clean this up, we're gonna be screwed. That's generally the consensus that I can that I hear from people so explain, explain with the rise of multi cloud what cross plane is, I mean, what is cross playing about? Give us an overview around this. >>So, I mean there's a lot of ways to describe this, but we see it as like the rise of platform engineering, there's a lot happening around people building their own platforms that layer on top of cloud, which happens to also be multi vendor and multi cloud. So when you're building a platform in an enterprise that can talk to amazon that can talk to Microsoft Azure that can talk to your on premise infrastructure, whether it's VM ware or open shift, you need a, you need a layer that is able to orchestrate and deploy and manage and deal with day to operations, Right. That that is an important piece. It's the piece that is, you know, the way you can enforce your policies, you can set out your controls, whether your compliance, do your compliance and governance and essentially sell sell served uh this to your developers so that they can actually get productive and deploy applications on on this platform. And we see cross plane and what what Kubernetes has started with a control plane as a critical approach in this, in this new platform. In fact, the approach that's kind of pioneered by kubernetes with the kubernetes Api and control plane is now becoming the dominant way of managing infrastructure and deploying applications on it. This is you hear this in different ways, like this is why get off has become popular. Get Office is a really great thing. It's a way to essentially let you manage infrastructure through, you know, configuration that's stored in GIT repositories. But the thing that it connects to is a control plane that's going to make it happen, right? And we see that with kubernetes uh predominantly with kubernetes. Right. And so what cross plane does is lets you extend the getups approach and the management approach that's pioneered by the kubernetes community to the entire surface area of cloud. So not only can you deploy your containers using get apps, you can actually manage through the tops VMS server lists, databases and cloud Hybrid environments. Multi cloud environments. You know, even, you know, your load balances that are on premise could be managed through tops anything that speaks in a p I could be managed to get off if you go through a project like cross plane. Now, that part is that part is where we're seeing the most success right now. We're seeing a lot of people that are adopting these approaches to managing infrastructure while they're building their platforms and they're pulling in cross plains, we're seeing massive end user adoption of cross plane right >>now. I want to get into this. I want to get this impact of the control playing but before we get there I want a real quick while I got you an expert. I know this coupon. You don't need to explain what get upset. Everyone knows what that is. But for the folks that aren't aren't aren't in the community, I want to grab the sound bite if you don't mind. Could you define what is getups? >>Uh huh. So so get up is somewhat of a marketing term. Uh but the way I interpreted is essentially storing your configuration in a git repository. Are you using, you know, uh versioning techniques that are pioneered to manage code, right? Whether using Pr flows, storing things and get doing the collaboration of what changes happen in get and then having that be essentially mirrored to uh control plane that is able to implement the declarative configuration that you've specified. So a good example of this is if you wanted to deploy, say, you know, start up a cluster of kubernetes cluster in the cloud vendor and then run applications on it and then configure it to connect to databases. You can describe your intent and store it and get collaborate with your team members on it, make sure it's all correct. And then through getups pipeline, you're able to take those, you know, essentially, configuration and then apply it via control plane onto your vendor of choice. Right? That's that's the style. It's great because, you know, get is a great place to store configuration. It's a great place to collaborate. There are amazing tools around pr flows, pull request flows. They're amazing tools for audit ability and versioning and you get to leverage all of those when you are deploying infrastructure that runs your entire >>enterprise. Yeah. And I would also add to that. I I explain it simply for people that aren't in the weeds on the tech is think of it like a QA for srs it's like you need to manage the infrastructure because we're talking about devops infrastructure as code, we're programming infrastructure. So you've got to have some sort of process. And I think this brings up my next point about this control plane, because you mentioned um Cross plans has these nice has this nice uh program to it. Most people write their own code, they'll like they'll they'll like do homegrown work to create in their platform, mainly because there's gaps in there. Can you comment on how you guys are different than someone saying? I'm just gonna write my own code and do my own thing, my own platform team. I don't need cosplaying what I need you for. I'm gonna do it myself. >>So what we see predominantly is folks that are doing get ops or infrastructure as code and setting up pipelines for their compute workloads and specifically for containers. Right. And then, like you said, they're actually writing homegrown scripts or doing Tara forum or doing other things that are on the side to deploy. The other parts, uh including, you know, state full workloads or things that are running across a I M L on premise, hybrid, all of that stuff is done organically on the side of this beautiful path. Forget ops right. What we're doing with cross plane is essentially letting you bring all of the things that you're managing organically into the same pipelines with get offs. So you're able to actually normalize on a single approach for management for orchestration of infrastructure and applications. So you're you're able to, you know, get rid of your custom scripts and use a P I. S to define what your developers should do. You're able to, you know, use the mechanisms that are in the tools that are available to you forget ups and for the in the company's ecosystem to manage the entire surface area of, you know, infrastructure that you're managing within the enterprise in a consistent way. Right? That's where cross money comes in cross plane enables you to extend the control plane of kubernetes to manage everything that's offered by amazon and Microsoft and google and VM ware and open shift and red hat, Everything else can become falls into the same orchestrator, the same control plane that's managing it all and you can access it and give it to your developers in a safe way using, you know, get ups like approaches. >>You know, I've heard horror stories where people pushed new codes, trivial stuff and then all of a sudden breaks because um, code or script was written for a different purpose, but the impact was created into a small little dependency, but it's essentially the human error aspect of software. It's like, well we didn't really kind of see that coming, but at that point that script worked. Now this new thing, something trivial and easy breaks because and then it crashes. This is the kind of day to operations >>that very amounting >>about. Is that right? >>That's that's very much that's very much the case. And we see a lot of people kind of normalizing on templates and scripts, you know, where it's like, okay, you want to deploy database, here's a we'll open a ticket. Uh, and then some human runs, uh, you know, a template, a Terror form template, etcetera, that deploys a script and then shuttle credentials back to the developers over email or over slack and then they plug them into their manifest to deploy on through getups, pipelines. That there's a lot of interesting things that are happening and what we we want to do is to prevent the human error. To put the guard rails in place is essentially arrive at a consistent approach for all of it. Your legacy workloads, your multi cloud workloads, your hybrid workloads, your the little system that's sitting on the side. You can, you can do, you can essentially normalize on using a single approach to manage all of it. One that is safe, that you can give to developers directly there. It has all the guardrails in place, has policy and controls factored in and is exposed through an api that's the part that I think is uh, you know, leads to the largest, most scalable platforms in the world. >>You know, I think that's just natural evolution to us as your customers and enterprises get visibility on the operational standards like, Okay, let's lock that input. The guard rails down. Makes a lot of sense. I gotta ask you on the enterprise adoption pieces, something that we've been covering on silicon angle on the cube this year is looking at the mainstream adoption of kubernetes and whatnot and the rest of the cloud native. It's certainly with Covid, it's accelerated everything. How is the enterprise adoption of cross plane changing? Uh is a game that kind of momentum you expected when you started the project a few years ago? >>Um We're very pleasantly surprised by the adoption, especially in the last six months since we declared cross plane one point. Oh, it has reached a maturity level now that it's actually in Fortune 100 massive production deployments in Fortune 100 companies. Um This is why we're actually, you know, taking to the next level of C N C F, we're also proud of the ecosystem convergence on it, so we're seeing the cloud providers, working with all of them on ensuring that Crossman can address their infrastructure and we're seeing main, the community rally around us. Uh We think the ecosystem part is super interesting for cross money, as you can imagine having an orchestrator control plane that's able to, you know, address the entire surface area of infrastructure offered by all these different vendors requires the vendors to be involved. Right? Uh and so both, uh, it's a two sided network. Both the ecosystem, you know, adoption and the end user adoption are important for cross plane and we're seeing like massive traction on both right >>now. That's awesome. Traditionally, the the adoption arises that users want more things actually enterprise. They they want everything every nook and cranny, they want every feature, they want every integration. I mean they prioritize but, but as you get more, it's not just like a consumer product, although it is cloud native and you've got that, but there's, there's certain things that are table stakes and then there's innovation, but they really want the well known integrations, um, and support and so forth. How is cross playing in the community responding to the challenges as you guys get more popular and as the standards become clear around multi cloud? >>Yeah, I mean, this is the beauty of open source. I mean, we're seeing a lot of different folks contributing to open source. The majority of contributors right now to cross plane are outside of a pound. The company that started cross plane and essentially donated C N C. F. We're seeing folks that are coming in and adding the resources that they are needing, um, or adding features, really significant features to the code base and improving, which is, you know, again, it's the network effect around open source and it's just unbelievable to see and, and I'm able to see it happen and happen so quickly around the project. >>That's awesome. Well something great to have you on, your always great to talk to your super smart, we've had many great conversations in person on camera on the cube. Now, remote CNC F is again um doing such a great job with the um, the open source and now with Coop Con and cloud, Native Con, the open hybrid cloud and now cross cloud, multi cloud, whatever you wanna call it, it's happening. So I gotta ask you with respect to kubernetes because you know, we were all having beers and open stack that time we write, cooper is going to be hot, I think how many years ago that was, um I think you are kind of hanging around with me and robert and others. Um, Kubernetes was just an idea it was developing. Now it's obviously mainstream. The question that I get a lot now is how do I manage and deploy kubernetes in an open hybrid cloud to take advantage of the current state of the art, Open software and commercial opportunities and be positioned to take advantage of multi cloud. In other words, they want the future of multi cloud, but they've got to address the open hybrid cloud. So how do I do that? What's your what's your advice? >>You know, honestly, uh reflecting on the success of kubernetes, I I have a you know, maybe a controversial answer to your question. >>I think >>Kubernetes will be remembered for its control plane and its ability to manage infrastructure and applications in a general way, and not for the fact that it's a container orchestrator In 10 years, we'll probably look at kubernetes and say it's true superpower is the fact that it revolutionized how we manage infrastructure and applications using this declarative approach, using this control plane approach uh to management. And the fact that it's managing the fact that it started out with just containers is well, we'll probably be a historical thing. Uh so so so in some ways, you know, to kind of to kind of go back to your question, I'd say yes. I think kubernetes is reached mainstream in the in the container space, but we now have two uncontained, arise it and use it for management, managing infrastructure everywhere in a multi cloud and a you know, in a hybrid environment as well. >>Well, I mean that's a great point. First, I don't think that's radical. I'm on the record years ago saying that I saw it as the TCP I P moment for cloud where you have interoperability and what you're getting and I think that's so interesting right now and I think everyone is kind of, it's the hidden secrets kind of like the land grab, everyone's trying to go for us. Customers just want a provision and manage cloud infrastructure and program it with applications. I mean just think about that general basic concept. Right? I want to provision, I don't want to have to have meetings, no waterfall know that. I want to be agile. Yeah, I want operation, I want security, I want all that big 10. That's kind of where the puck is going >>very much. Self, self service is a really critical part and the part that um is part of the kubernetes uh kind of design is you developers just want a database or they wanna cash to run their application alongside their application. They don't really need to understand all the security details and networking and be pcs and everything else. And so if you give them an A. P. I just like kubernetes does that tells them. Okay, look, if you want a pot or if you want a database or if you want to cash, here's the A. P. I use, use whatever framework you want, use any language you want. And then we've got all the guardrails built in behind the A. P. I line, just, you know, through getups or not deploy this thing, provision it and then the control plane takes care of the rest. That's the, that's the path we're on as an industry, >>whatever you wanna call it, getups, cross cloud, it's unlimited cloud resource at scale. That's what customers want to do. The markets evolving superfast tons of opportunity for entrepreneurs, tons of evidence for enterprises who are themselves innovating. Again, another big theme here. I'll give you the final word around this user generated open source paradigm, what they've always been involvement now, more than ever, you start to see that, I don't know, maybe second generation, maybe third generation end user inside companies contributing to projects and driving this. This is an interesting dynamic. No one's really reporting this, your thoughts on this end user driven projects. >>We're seeing, we're seeing a lot of end users get involved in projects like cross plane. I mean, it's amazing. It's like companies that are, you know, directionally, they're all, you know, when they're modernizing, they're all heading down about that's open source or even towards cloud native projects. Right. And so it's what we see is they typically get involved initially by just asking questions and, you know, reporting issues and asking for features. And then within within a few months you see actual like meaningful contributions come in two projects. Right. And so I mean there's nothing speaks uh, nothing, nothing says their work. You know, they're committed more than just submitting a pull request where they've spent hours weeks making changes to a project. Right. And and that's happening across the entire, you know, ecosystem around cloud Native. It's, it's what makes it so powerful, >>awesome. But some great to have this conversation. Great insights. Thanks for sharing the update on cross plane and your vision around this, you know, provisioning new infrastructure, having this control, universal control plan. I think this is where everyone is talking about having that value and the scale sets up automation. You know, it just brings everything to the next, next gen, next level of capability. So I appreciate taking the time. Thanks for coming in. >>Thanks john Yeah, good. Good to be back on the, on the cube. >>Great to see you. Okay. This is the Cube coverage of coop con 21 virtual cloud native Khanum jaan for your host with the cube. Thanks for watching. Mhm.

>>This is >>Dave Volante, and welcome to Storage Day. We're here at Amazon and Boston and you're watching the Cube. Wayne do so is here. He's the general manager of a lot of stuff. File hybrid edge transfer and data protection Service is at Amazon. Web service is good to see you, Wayne. Thanks. >>Good to see you. >>So let's talk about that. That's a pretty vast portfolio that you have explained that to our audience. >>Sure thinks so. The portfolio that I'm responsible for covers a vast swath of our stories portfolio on AWS. So in that we cover all of our files. Service's s Oh, that's E f s and FSX. Our data transport service is which includes data sync, transfer for sftp and our snowball or snow service's. And then also hybrid edge, which includes our snowball, compute and our stories, Gateway Service's and then data protection, which includes a W s back up. >>Wow. Okay, great. Congratulations on that portfolio. And, you know, I said I said earlier on it started with s3, and it's just exploded. Now all the service is this is part of what we sometimes call tongue and cheek cloud to 0.0, there's more work loads, more capabilities, more granularity. But talk about some of the big picture macro trends that you guys see in the marketplace. Specific Thio Sort of your area. >>Yes. So, uh, actually, it's so many, uh, think you said things are expanding. Things are accelerating in our space. One of things I like thio talk about with respect to our portfolio is we have storage service is dated. Transport service is to match the needs of your workloads and your applications. So all of these service is a purpose built for the type of storage that you need, the programming model that you need for your applications and workloads. So whether it's object storage with s3 and glacier or block storage with BBS or most recently, file service with F s and F S X file service is so you have the tools at your disposal. It'll that you need based on your on your application. Workloads. >>Talk more about the programming model. What? How do you envision that? What do you What do you mean? What's your mental model of the different >>process? You're so forever. People have been programming based on, you know, whether it's performance or or some scale of some sort. Um, you know, uh, databases traditionally used block storage because they don't need a lot of logic between them and the storage medium itself. File storage is been used for 50 years and has a very specific program model that exist in every operating system in every programming language. You know, whether it's an open, ah, read right, see close. It's a common paradigm that is used all over the place and that capability in the performance that you need to satisfy those applications and workloads very specific. And so for for aws, we provide those final systems for for Lennox, if you would with F House Windows, which is ever sex for Windows and for very high performance computing on luster. We've had an amazing storage platform, which is s3 and S three forms the basis for a lot of our customers data lakes on and basically storage data repositories, for which there are many integrations. With that, there are other >>sword service's. I often joke that, you know, if your expertise is is unpacking boxes plugging in setting up storage arrays, managing London's you, you might want to think about updating. You know your skill sets right, But so that's another big mega trend that we certainly see is people just don't see a lot of value in planning and managing and migrating over six month periods. Storage a raise. It's It's something that really doesn't have a lot of value to the business. So you guys have announced all these service is over the years and you've got some new announcements as well, that kind of play into some of the trends that we've been talking about. Talk about the news. >>Yes, that the news is pretty rich. Uh, for this season, let's let's start off with FSX eso FSX is our service for bringing fully manage third party or open source file systems, um, to our customers. And so Fsx Windows, as example, was launched last year, reinvent and has been rolling out the whole Siri's of features throughout the year, and we have a nice set of features coming out this year. So, as example today, effort, Sex Windows is a single ese service. We are rolling out multi easy capability, >>okay? And you you Sometimes you guys make the point that the beauty is there's no change required in APS, and we talked earlier about the program. We'll talk a little bit more about that. Why is that important to customers, >>you know and all index on FXX windows for another minute. A lot of abs been written to use the semantics of a particular file system in case of Windows will say NT f s and their written for that specific file system. We've provided customers with the capability of bringing those applications to AWS without any wary of compatibility. It's a pure lift and shift model. S O makes it really easy for them to bring their workloads. They should bring their workload so they don't have to deal with some of things you brought up early around provisioning buying systems, having to worry about saying that, planning for all of that. We take all of that work away from them and they get full compatibility based on what they need today and with some of the additional capabilities we're bringing to bear with the integrations in the ecosystem and heat up US ecosystem, they'll be able to appreciate those as well. >>Let's talk a little bit about more about that because you're basically, I'm inferring you're saying, Hey, this compelling reasons why you should move into the cloud. For instance, File Service's into the cloud. What's the difference between my on Prem? Isn't just on Prem Nass stuffing it into the cloud? Or is it more than you touched on integration? So convince me, why should I move? >>It's so much more than that. So if we if we look at the basic infrastructure once you literally click three or four buttons, Thio started files and creative file system, you no longer have to worry about it ever again. So the things that you have done on Prem, you no longer have to worry about having a sword administrator or having to provision in by storage and maintain it. We take care of all that would take care of all the security elements. I'm so important to your data to make sure that's in a in a secure environment. Security. It's job number one for us. So all of these capabilities and the ability to stand it up to never have to manage it never adorable security. We take care of all the capabilities like you should really be bringing those workloads onto a platform like this so that you can spend your time on added value. Um, service is our applications for your >>business, while in the integration is also a key piece of it. I mean, you know, for years, customers and customers still sometimes want to roll their own. You know, they like to have the you know, the knobs and turn them. But but many customers that we talked or saying Listen, it's too expensive. I don't want to be a systems integrator anymore in the cloud. How can they take advantage of those? Like sometimes they call it the flywheel effect. But the other innovations that you're bringing, whether it's machine learning or other service, is that you guys are bringing in. Is that how tight is that? Integration. >>So those integrations are ongoing, and they're there forever. It goes back to what I said a minute around over a three year period. All of these capabilities gonna be delivered to them, if you would at this at the same cost as the basic service. So let's talk about what happened this year. Um ah, lot of our customers are using sage maker for their M. L A I capabilities and sage maker is deeply integrated with both fsx luster and uh, E F s so that customers again don't have to worry about stories. They're not the way about sharing that are scaling. It's all there for them. >>You mentioned. Also you responsible for the snow product convention an edge. I was what it was to me. It was your first move, so the hybrid, I'll call it. But I always joke that, but it's true. The fastest way to get data from Point A to point B is a Chevy truck, and so, but you're referring to a sort of an edge play. You talk a little bit more about that, help us understand it. >>Sure, so Snowball, a service launched about five years ago. We initially launched a service as a bulk data migration service, and it's it's been that service for roughly four years. About a year ago, a little over a year ago, we started introducing thehe bility to have compute as part of that device, and the reason for that was customers were telling us as we're moving the data, we would like to be able to do some pre processing before it makes it onto AWS before it goes into history, is example. So we started providing that capability that ended up expanding into a full blown if you would cloud platform on a device that could be run in disconnected environments or stare environments. So with Snowball today of the ability to have easy two instances CBS storage s3 storage all in one device. And so that's a really powerful construct because you can build your applications on AWS using the same service is prove out if you wouldn't Dev UPS model that there what you need to be and then literally lift them onto, ah, snowball device and have those executing in the field as if they were running directly in the cloud. >>Change the subject a little bit when I look at the logo slide of all your customers, a lot of big names on their their global companies, a lot of things. So I run a cloud and they got a data center. You know he's Boston or something. No offense if you have a data center, East Boston, but regions are critical, um, especially for global scale. Cloud brings global scale, but it's also important to have data approximate to the users. So you're reducing late and see there's availability and redundancy aspects. Talk about your philosophy around regions and how it fits into your portfolio. How do you take advantage of all that capability? >>So a lot of our customers have global presence and the ability for them to have their application to have their business function in the regions that they're doing business and have those little agencies and also the availability model of being in multiple places. Case of disasters super important. Um, are regions are built, have at minimum three availability zones and an availability zone. You could think of boat as, ah, data center. So, for example, with the F. S. When you stand up a file system with the F S, your file system is automatically distributed, replicated across all three availability zones within that region. But as the user, you don't worry about any of that. We take care of it all for you. In the unfortunate event that our availability zone is made unavailable, your data is still fine. You still have access to that data all time? >>Yeah, and your customers, I think increasingly understanding this the beginning toe architect around regions and availability zones. It's a different way of thinking, but it's in some respects sort of the modern way of thinking. >>If you if you if you go back a few years and you think about all of the disaster recovery or business continue in software and capabilities that had been created, we're providing all of those capabilities today in our regional construct. >>Yeah, well, you know this. I mean, you both better have been around for a while, and we've seen the unnatural acts that you had to do to sort of create that level of redundancy and business continuance. And it was extremely expensive, complex and really risky to test. So I'll, uh, I'll leave you with the last word. Any other thoughts that you want to share with our audience? We're >>We're We're just first off. Thank you for giving you the time. Today. We're really excited about what we're doing with each of these. Service is we're very excited about the portfolio overall on the value that it's going to bring, and he's bringing to our customers today. We're excited about all the announcements. >>Yeah, we'll say we're seeing a lot of innovation. Expansion of the Amazon portfolio. Optionality, granularity performance, horses for courses, the right tool for the right job way. Thanks so much for coming to >>my pleasure. Thank you. >>You're welcome. All right. Keep it right to everybody. You watching the cube storage day from Amazon in Boston? Right back.

>>live from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I. F. S. >>We're back at the Hynes Convention Center in Boston. This is a cube, the leader in live tech coverage. And this is our coverage of I f s World 2019 Matt Smith. This year. He's a global chief architect. Paul Dylan and I are happy to have you on Matt. Great >>pleasure to be here. Thanks very much. >>Filing. You're welcome. So business value engineering is a concept that you're a fan of on one that you've sort of promoted and evolved. What is business value? Engineering. >>So business value engineering is quite a common term in the industry, but here I affects it's a little different. Fundamentally, it's, ah, collaborative process that we use working with our customers on our partners to make sure that what we do with those customers delivers financial value to their business. So it's fundamentally about making sure what we deliver delivers value. >>So I wanna ask you a question about this because your philosophy is a company seems to be the Let the customer define value. Um, it's in their terms, not your terms, not trying to impose a value equation on them. At the same time, it's nice to be able to compare across companies or industries and firm level on DSO forth. So how do you reconcile that? Is it like balanced Scorecard is sort of pay you can tailor to yourself versus some kind of rigid methodology. How do you How do those two worlds meet in >>TV? Yes, so obviously, benchmarking across industry is really important. And there are lots of people that do that kind of work, and that's part of business value engineering. Fundamentally, it's about mutual collaboration. So it's not just about using the customers framework or that all their language is about agreeing the language. One of the challenges when you're trying to build a business relationship with with one or more parties is you have to have a common shared understanding, a common vision on a common value system so that when I say something to you, it means the same thing when you say it to me. And so part of that collaborative process requires that you worked together on business value, engineering facilitates that it's not just about producing a business case. It's really more about the process and steps that you go through to get to that business case that allows you to establish trust and understanding and clarity. >>How does this enter into the customer discussion? >>And so it enters as early as you can possibly make it. Answer rights? A. Right at the beginning, you asked the very first question, which is fundamentally, what are the business initiatives that you're trying to achieve with this potential change program? And then you have a deep discussion about what they mean. So you understand and they understand, and everybody really agrees firmly what we're trying to achieve before you get anywhere near solution. And it's really difficult as technical people. I've got a technical background to stop yourself from hearing a problem and going. I've got a solution for that on it puts that a more disciplined approach to make sure that you don't straight away go to solution to help. You really understand where you're going, how you're gonna get there and therefore what the financial benefits and metrics would be to do it. Who >>were >>the ideal stakeholders when you're doing a collaboration like this in terms of getting them involved in getting their >>implements. So you might expect the answer to be C level executives on Dove course. They're important from, ah, leadership in a direction perspective. But as it turns out from a human psychological behavior perspective, there are three personality types that are really, really suitable for this kind of engagement work that's focused around change. And if you find those three personality types and quite well understood types of people, they're the ones that tend to cause change. To happen more successfully doesn't mean there any more valuable than anybody else inside an organization, but the other right kinds of people to establish this sort of work with, and it's important you have the right number of those people in a change program. >>So change agents. So I would think like a PL manager here. She's controlling a big portion of the budget. Has thousands of people working for them would be important. Maybe not a sea level executive, but a line of business executive, the son of the field General. Could that be an example of a change agent? Not necessarily because they're trying to protect their turf, >>so not necessarily right When it comes to change, change is always hard in any company you've ever been in in all of our careers. Change is difficult, right? >>Wake up in the morning. >>Let's change. It s it's more about who were the people that lay the groundwork for that change that you follow. You listen to the influences. Now, of course, you'll have people that own the budget the financial controllers on Absolutely. They're important. Of course they are. But they may not be the personality type that causes change to happen. Business value engineering is about making sure you harness the right talent, the right skills, the right people at the right time. Thio help organizations realize the benefit off change. >>If you'll excuse me, this is not seem like a typical role for a software company to take on. Yeah, change management. What? How do you Why do you put yourself in that role? >>I think this is something that all software companies are gonna have to do. And you will see the subject of business value engineering in many software vendors. Now it's true. It's a fine line between being a business analyst and being a software vendor. they were a software provider. I think software providers that don't deliver the context on the value that they are trying to achieve with software they buy in the customers are poorer supplies because they're just trying to push technology on its fun. Technologists like myself enjoy the technology, and I'd buy technology all day long. But is it really the right thing to do? So I think it's about being morally right. You have to take the high ground and conduct that engagement in a way which in some cases, and this has certainly been true in my career, you do the business value work and you realize that you probably shouldn't do the project on. You have to have that that fortitude to say to the customer. This is actually not a great idea because the financial case doesn't support this. I think it is. Taking that moral high ground is a really important stance and software companies that do that generally those customers will come back to you in a future dark time when they've got a different problem. That perhaps does fit you. So I think it's about recognizing there's a both a short medium and a long term engagement with with with the customers that you have to maintain that >>in 2019. Given all the discussion on data digital transformation A. I cloud, I would think that data plays a crucial role in these discussions. So what role does data played? Companies understand the importance of data as it relates to the business value discussion. >>Absolutely. I think I think that data driven decision making is is pretty fundamental. A lot of people say the numbers don't lie. Maybe some statistics might be bent, but numbers don't really like, so you've got to be a capture numbers and make decisions based on those numbers. Eso One of the difficulties, though, is that for many, many years in many industries, we've been using very simple terminology and simple mathematical calculations to do these value calculations. Everybody's aware of Years ago, the software industry was awash with phrases like return on investment calculators, >>R o i N P V I R R. Even >>some of those numbers of valid right for >>a business case for sure, >>for sure, but just sticking with simple things like are always is not enough >>salad. If you treat the software as an asset. A zey expense? Essentially, >>Yeah, yeah, absolutely. But then it comes to the engagement's more than your software I like. I like Thio, I think, as a human being, the software is considerably less than half the game in any change program where you're trying to achieve value and the people they're human beings they're going to do with work are the ones that are going to generate the value. The software's a tool, and the years are very important tool. But it's a tool. So you have to think about how do you build teams that can collaborate around value, achieve the value, measure the value, capture that data but at the same time physically collaborate properly to do the work? >>So how have you apply this methodology for your customers? >>So we've done a number of things, so we've established practice inside. If s, we've made sure that every country has the capability to do business value engineering. We've hired some specialists, people who do this for a living. Andi, we are working with lots and lots of customers now on this as a Maur methodical disciplines approach. But we've also recognized that we needed to measure our existing customers benefits. So what you are existing customer base achieved with our software. So we commissioned Ah, pretty big and important study. And that was anonymous. We weren't involved other than inviting the company to go and do this work on, then unleashing them on our customer base for six months across all industries, all products on asking them to go and find out and measure what our customers really achieve with the software. >>So how was that anonymous? How it was in that you weren't doing the survey. >>We weren't doing the survey and any, um, numbers that came back. Where were anonymous? Dhe. So we couldn't say. Oh, it was this company that gave this feedback with these numbers. So it gave them a sense of freedom to be other express and share that data. >>And so you were specifically asking about the business impact of of I f s software throughout some kind of life cycle, like a before and an after? Yes, Exactly. Isn't it to be or what happened? Okay, so what'd you find >>so as a couple of surprises in the results, actually eso firstly >>tell us who did the study or is that >>yes, So the study. That's a good question, because the the choices are many. There are lots of analyst firms out there that you could use A ll do this sort of work and do it very well. The team that I worked with, we would personally had a previous relationship with I. D. C. Now we really liked I. D. C. And I've done some of this work previously with I D. C. Because they arm or they're an analyst. That has more statisticians as well as analysts. So they take a really very methodical mathematical approach. A scientist. I very much appreciated that. So we we picked them to do this work, and they take it really very, very seriously. And there were a lot of strict processes they have for how we are allowed to engage with them and talk to them during this process. On that rigor, I think, allows us to be comfortable with the numbers and for our customers to be comfortable with the numbers that they obtain because of this anonymity and the rigor they put behind. That's why we picked I. D. C. That work in terms of what we found out where they found on we now just see the report on our customers can go and see this report. We published it last week. So you're just gonna free download and look at the material from I. D. C. The first thing that was interesting about the study. It was human productivity focused. So not things like, how much inventory you hold in supply chain on. Was it reduced? It was more about how did the workers get on? What kind of mistakes did I made? L. A. Faster doing their work and more successful. And they looked at lots of different categories on the returns. The improvements ranged from just a 10% improvement. So not not a huge improvement all the way up to a 94% improvement in productivity. Human productivity. If you averaged it all out, it worked out just shy of of 19% 18 and a bit percent productivity improvement across all of the different teams from the finance function, the supply chain function, human resource functions, sales team, productivity function. So we saw a range. What was good was it pretty much didn't matter. Which category of customer or size of customer or industry. They all saw pretty similar productivity improvements, which means we can extrapolate the numbers. The second thing we saw, which was a surprise, a very pleasant surprise was that usually when you see these kinds of benefits studies, most of the value is in cost. Saving on only cost saving tends to be where asset management resource planning service management happens. Just under half of the value that the I. D. C study showed was net new revenue. The customers were finding that nearly half of the benefit was new money coming to the company. Top Line benefit. That's a little unusual. >>So let me pick. Probe Adept so productivity When I when you're saying productivity, I think revenue per employee has a simple list measure of productivity. But then you're saying there was incremental revenue, a swell independent. It first of all is is revenue per employee the right measure? Or was it more like Do we think's faster or sort of more generic measurements and specific to a task? Or was it kind of boil down to a revenue per employee? And and then how did that relate to the the incremental revenue. >>Yeah, so it was done by function by by team type. So if you look to finance and auditing and human resources and supply chain and so on so that the metrics on the you'll see in the white paper are specific to the team's specifically that role specific to that, >>right, You're not really big in insurance, but a claims adjuster could, you know, get more claims done exactly, or something like >>exactly example. So you'd find, for example, one of the statistics was around filled service engineering on how many jobs per day they couldn't do. It was reasonably specific, >>and they would attribute that directly to your software Direct. Now, as a result of installing I f s, how much would you increase your etcetera per day? >>That's why it took them six months to do the study. I mean, this is quite an in depth piece on >>how many customers that the interview. >>And so it was a cross on dhe. We gave them a challenge to do this. So it was a set of about 17 fairly large customers, which sounds like a small time. >>No, no, no, >>no. But when you do these kinds of studies, >>that's a totally legitimate number. And then thes air in depth surveys. Yeah, so it's not like it's not trivial. And and as well, revenue increases specific, too. The software. So that would have been what, like cohorts sales or service, you know, follow on sales things of that nature. >>Absolutely. And that's why we were so delighted with the report when it came back, because it was it was a really nice pleasant finding. So most companies that all the companies reported the revenue increase, but some are bigger than others. On average, it was a pretty sizable chunk, nearly half of all of the benefit. Um, and when we asked, I D C well, can you give us some kind of glimpse as to why we see such a large chunk of improved revenue? I. D. C. Said, Well, you're improving the productivity of the sales teams so they can quote faster. There's more accuracy and those quotes. The service quality is improved the speed and to get a product to market is faster, so their ability to respond to bids and tenders is better. So is actually a combination of lots of things speed error quality improvements that led to their ability to bid and win faster and better business net revenue. >>Did you attempt Thio factor in less tangible factors, such as customer satisfaction, that promoter score perceived value, customer perceived value. >>So the folk note that the focus of the study was human productivity on. And it's something that I d. C do particularly well on that that's what we gave them a target. Obviously, when we doing business value engineering, you then have to take way more than just that. Things like the benchmark dated find from a study like I. D. C. Have conducted where you take into account those soft factors on other factors outside of human productivity. So value engineering is way more than just human productivity, which is why it's an engagement model. It's something you have to do mutually together. That kind of transparency, really, is what most customers are now demanding. You know, I'm not buying technology unless I know what business outcome I'm going to obtain from this. It's just the way of the world these days. >>It could take away that so it's not just your software's not just operational impact in nature. It's more strategic. It has productivity impact, revenue impacts and obviously cost savings as well. Congratulations. That's good. How did we get this study >>out of people? You said customers can download it. Can anybody down? >>Anybody can download this U S So we've published it on our website. It's very easy to find on it. Sze freely available. We obviously have to comply with the I. D. C's. They owned the rights for the report because it was their material, but we've oversee purchased the rights to the other, distribute that material. We think it's super valuable for our customers. >>What a business model >>and super well, you know, And and if I was to write business case for it, I'd be delighted with the work that was done and I'd be happy with the outcome on. I'm sure our customers will make use of the information to be a benchmark, their own work and also hold my effects on our partners to account to help build business cases. >>Well, I you know, I know it's anonymous ized anonymous to protect the customer, but I bet you some of the customers would be willing to go public with some of this information. So hit him up. Bring him on the cube, you know, well distributed for free. If you want to charge for them. Reprint rights. Great to have you on. Thank >>you. Thank you. >>All right. Thank you for watching Paul Gill and I will be back with our next guest to wrap up I f s World 2019. You're watching the Cube from Boston?

>>live from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I. F. S. >>Welcome back to Boston, everybody. You're watching The Cube. The leader in live tech coverage is Day one coverage of the I. F s World Conference. Darren Russo's here is the CEO of F S Darren. Thanks for coming back in the Cube. Great TV again. So last year was your first year. He was kind of laid out your vision at the World Conference. How's progress? >>Yeah, Look, it's going incredibly well. We were really focused on how we go from being a pretty fragment of global business to being, you know, an integrated business where we were able to operate. You know, its scale globally in a very homogenous way, where the customer experience was the same, irrespective where they engaged with us. And, you know, we've made a tremendous amount of progress with it, So you know, the business is growing really strongly. Net revenues up 22% year on year. I lost its revenues up 40% year on year are clouds up in the triple digits, so you know it's tough to be critical of how it's going so far. >>That's great, Great. You're growing faster than your peers. I think the stat was you gave us three Ex factory except in the industry would be awesome. Is that means that your primary benchmark do you want? You want to gain share? You want to go faster than the big whales, I presume. I >>think two things One is customer satisfaction, we believe, is the key indicator of long term success. S O. You know, we're the number one ranked European efforts. Salmon gotten appearance sites. That's that is and always will be my number. One metric. Can we be way the number one from a customer satisfaction perspective? And then I believe the revenue stats will follow and you know that's where we are. So certainly, if you look at our our core peers, the big G R P vendors, all of them are flat on. Dhe were growing 20 ships since >>one of the things you mentioned in your Cube interview last year was one of the things that you wanted to focus on was I'll call regional alignment. Paul and I used to work for I D. G. I worked for I. D. C. You were editor in chief of Computer World. We work for a company, had more offices overseas and IBM, and it was really hard to herd the cats. And that was one of the things that you cited. Have you been able to get people generally poor or at the same time? And how has that affected your business? Yeah. Look, I >>think the big challenge before I arrived was that there wasn't really a strategy of global strategy for the business. My face had a way of working and there was a strong culture, but there wasn't really a strategy. And obviously it's difficult to be critical of people when they not following the strategy when there isn't one s o. You know, Step one was really making sure that we had a strategy on DDE that was really about being focused on the five industries that we focused on, focused on three solutions on dhe focused on the six segments of customer, which is half a 1,000,000,000 to 5 billion. So now, globally, you know, irrespective the office that you go to, um anywhere in the world, they're focused on those five industries they focused on those three solutions and they're focused on their customer segments. So it helps me. P. M >>I said during our preview video video this morning that I've been around this industry as long as I f s has, until last year had never even heard of it. Is that just me being clueless? There's something there >>that we were just saying before we started that we're the definitely the biggest software business you've never heard of. Um, and and and that's common, I think, you know, we were There are a couple of factors. One is that the business was very European centric. Andi didn't really engaged in a tremendous amount of marketing and media prison. So, you know, those are elements that, you know, I think we're doing a better job off now, But we have a long way to go. The challenge that we have is that where we compete, we win when we get in and were able to tell our story, and we're able to show the value we win. We just don't get into as many deals as we need to. And that's the challenge we have. >>Yeah, there was a lot of talk this morning about the importance of those five pillars of those five industries. If you're going to become the next S A P, you're gonna have to branch out beyond that. What is your thinking about diversify >>becoming the next? They say he is definitely not my ambition, You know, I think way remain focused on customer satisfaction. And, you know, I think that there's a there's a difference. Whatever it is leading them, it's not customer satisfaction. You worked >>there for four years. >>I worked there for four years. I know. I think the big thing for me is is that we've got to stay focused on their customer voice. They focused on what delivers value for our customers beyond just the rhetoric and hyperbole. You know, I think when you when you listen to a lot of the complexity that our customers are facing today, any customers are facing. Companies are facing increasingly disruptive times, and the tech industry is making life more difficult for them. The more best of breed solutions get both. The more fragments that potential the landscape is, the more complex it becomes for customers if they have to try and figure out. How do we integrate these things and derive value from this highly fragmented landscape? So you know, we're trying to solve that problem. How do we make it easier for customers to challenge in their industry? And that's where this whole for the challenges has check comes from. How do we help him to be disruptive in their industry? Have competitive advantage? >>That seems to be a sort of a fundamentally different thing about your approach, though. Is this focus on those vertical industry's most e r P companies did not do that. Is that something that is core to your values? >>Look, I >>think what we recognize is that as you move to the cloud, you have to drive to standard. That's just the reality of going to the cloud on what's happening for the horizontal E. R B vendors. So the locks of ASAP and Oracle is that they have one e r P solution that fits every industry. So if it's good for health insurance and it's good for a bank, then it's difficult to really get your head around the fact that it could be good for a defense manufacturer, but the functional requirements is simply vastly different on that means that you have to customize them. If you have to customize that, they can go to the cloud. So what we believe is that you have to have this vertical specialization, the five industries that we serve us all. A lot of commonality in the process is that they use. And that's why that vertical strategy is so key to our success. So you won't see us going into financial service is, or health care or retail worth that core application. We may in time in many years to come branch out. That will be a different solutions. >>So your tailor, that app for that module for that industry, Yes, just go deep, deep functionality. You're known for that, but at the same time you're also messaging. You want your customers to be able to tailor this for their environment. So square that circle for me. >>So I think when we talk about a choice and and I think tailoring is the wrong word, we talk about choice. We're talking about choice of deployments on Prem or in the cloud choice of customer choice of partner, rather who they're going to deploy with on Dhe, then The solution is really an industry solution that comes with that functional death. And we don't we don't advocate their customers customized that all. We really don't want them to customize it. What we explain to them in some detail is that the real value comes from adopting the solution for two standard and staying on a vanilla application. Because that vanilla application, you're going to be able to withstand future upgrades, the total cost of ownership gets lower. The processes that are embedded in that application or best of breed at the box. That's what they're intended to do, and that works when you have a vertical application. When you have a horizontal application and you're trying to have a do things that it shouldn't naturally be doing, that becomes company. >>Well, correct me if I'm wrong, but wasn't that essentially the message ASAP had when it went through? It's hyper growth in the late nineties. I mean, there was a Y two k thing there, too, but ah, lot of the message was around. Do it our way and and then you don't have to get stuck in a rut, >>So I think that when it came out with that generation of application. That certainly was what they had hoped would happen. But what happened in practice is that the system integrators came in and the whole business process reengineering explosion happened on Dhe. That's not how it how it manifested itself. So what you see is, you see, he's very large, monolithic ASAP applications that were customized over in some cases decades, not not. You know, if a customer is deploying for two standard, then they should be able to deploy in a period mission. In weeks, we spoke about our deployment with Racing Point. If one team and going live in 12 weeks, you know, we're a 700 million global business. We deployed a knife s in 24 weeks. You know, if a customer's deploying for two standard, it's measured in weeks. As soon as they start to talk about two years or three years or five years or seven years there, customizing the solution significantly. Yeah, I >>mean, it became just sort of a perpetual upgrade, maintenance and up for the time it had a business impact. But boy, you think a cloud today agility, you know, getting rid of waterfall approaches, Missus. Antithetical to today's Look >>what I don't point fingers here. I think that this just maturity come with experience. The line of business applications you'll see our EMS and your HR solutions have taught people that you can, if you think about this is look at sea. Are Emma's an example? You had Siebel before people would implement stable. They would customize Siebel that would take long implementations. They were highly bespoke applications and then sells. Force came along and just destroyed them, and they destroyed them. Because what people learned very quickly was that there was a really easy to consume, really easy to use application that functionally might be inferior. But the compromises that you'd make from a functionality perspective will weigh, outweighed by their time to value in ease of use. And and the learnings from CR mnh are in procurement. Those line of business applications have now being backed into in the e. R. P >>world. So in terms of capital allocation, you're owned by private equity, which is actually a public company. I'm interested in how you're allocating capital R and D, where you're where your emphasis is. You don't have to you have to do stock buy back, but, you know, describe the P relationship. >>So look, one of my learning's to see survive this is that not all private equity firms or equal they have different strategies are very fortunate to be with Ekiti, who are a growth investor. They're known as a growth investor on dhe, and they buy companies that are strong growth tech firms on dhe. They've been hugely supportive of us investing because they understand that the investment in technology is important. So, you know, just looking at some detail today we invest twice as much in R and D as we did three years ago, just to give you, you know, one data point. So there's a big focus on technology, and the thing is, is that we we have to invest in technology to drive those attributes that are discussed earlier. How do we How do we enable customers to adopt a solution? It's a standard so they can go alive quicker. How do we enable customers to be able to sit down in the front of the application like we do with the mobile phone and intuitively know how to use it? How do we reduce the total cost of ownership through automation. Those are capabilities that you know that they don't come for free. We have to invest in them. So big investments in technology. And >>I think the private equity guys, at least the modern ones, have realized Why should the V. C's have all the fun they realize? Hey, we can actually put some money in tow and the transforming we can have a bigger exit and actually make much better returns than sucking the company drive. Yeah, well, look, I think the other >>thing is is that you know, in public companies, you have the downside off. You know this this courtly metric Ondas quarterly cadence. Andi, you see very compromising decisions being made because you know, people can't afford to miss 1/4. There's no long term planning that's done on dhe. That's fundamentally not the case and the private equity world, you know, not unusual now for four p firms to hold companies for 5678 years on, and that allows you to take a very long term strategic view. If if if a shift from perpetual to subscription is the right thing to happen, they can do that without worrying that, you know, because of the definite earnings are revenue that you're going to get caned by the market next quarter. Andi. I think that that needs to, I think, better decision making for the long term. >>A lot of companies are struggling. >>If you have the right P for because you get bought by the firm of events, you want to go public. But the the you said something this morning that 50% of your customers each year or net knew, How are you pulling that off >>That 50% of our license revenue? Eso way we went about 300 odd new customers a year. Obviously, that's growing, as I said, you know, 40%. But you know, it's ah, I think, having done this for 25 years, there are companies that are or good at extracting revenue from their installed based. One of the analysts here has as a hashtag wallet Fracking is what do you think It's such a great So you know, they're good at Wallick fracking and and I think the customers that that our customers off those vendors know exactly who they are and you know I think that for us to that the fact that we're able to go out and win 50% of our license revenue from net new name customers, I think is a really strong indicator of the health of the business. It's much harder to do than just extracting revenue out of the install base. You know, we don't have a compliance practice. We've never charged a customer for you in direct access. You know, these are principles that we stand by, and it's easier to say that your customer centric on get 80% of your revenue, have your installed base because you're doing compliance rounds. But, you know, we put our money where our mouth is, and that's not that's not how we do it. >>Are these net new customers? Are they? Are they migrating from QuickBooks or they migrating from a Competitors >>know, because of the segment that we're in this half a 1,000,000,000 to 5 billion? I would say the majority of them are what I would call first generation the Rp solution. So you know you're talking about you know, the original generation of Microsoft's acquisitions, the divisions and the eggs actors and the Solomon's and so on on. And then, you know, it's a P R two and our three customers you're talking about customer sitting on, you know, the solutions that in for hoovered up the matrix B picks type customers, ace 400 customers. So they're you know, they're first generation your P solutions that simply don't have the flexibility to deal with the complexity and demands of modern business world. >>From 2009 about 2017 I f. S was pretty inquisitive and then just actually, I was gonna ask you >>when I started, you stopped >>it, right? But then, you know, today you announced an extra small acquisition, But how should we think about M and a >>look? The first year for me was really about trying to build a functional business. You know, we spoke about how fragmented this really hit to Jenna's business. Andi just occurred to me. You know, if we go out and we start to buy things, how do we integrate them into a business that's completely fragments? And you know, it had no identity or culture. So, you know, the last year has been focused on how do we build their common understanding of what it is that we're doing. We now have a very clear strategy. Five industries, three solutions, one segment. And you know, when you when you have that clarity of vision that it's really easy to guard and do him and I because you know what fits and what doesn't fit, you can understand exactly how you're gonna build value for customers on dhe. That's why the S t a deal is so good for us. Because we're now the undisputed leader in field service management, you know, 8000 our customers globally, which is way more than anybody else. Scott, Andi, you know, you should absolutely expect more from us. But it will be in the five industries, three technology segments and one customers. Isaac. >>Well, in the A p I enablement should obviously facility. >>Absolutely. I mean, I was just with a partner of ours now, and they have this amazing augmented reality solution. You know, it will be a combination of off going out there to build market, share a cz well, as finding you know, really innovative solutions that can help us advance the technology that we provide customers. >>You have a new slogan this year for the challengers, which seems to be aimed at companies that that imagine themselves as challenging the Giants, which is great. But if you're not a company that season sees themselves that way. Are the studies level home with I have s Look, >>I I think I was with a group of CEOs from one of the big analyst rooms, and they had the portfolio companies and their private equity firm and analysts that CEOs of the companies are having a conversation with him about digital transformation. And I I made a rather provocative statement which, you know, got unanimous agreement, which is that all of the CEOs there with either in an industry that was being disrupted and we're trying to figure out how they respond to that disruption or they would soon not every job and they all acknowledge that they absolutely fit into that category. In other words, all of them were being disrupted. All of them were facing a challenge. It was kind of like, you know, if it is happening to all of us at a more rapid pace than we have ever had before. So my view is, is that you know if if you're in the room and you're going, you know, if it's might not be for us because we're not a challenger. Yeah, The lights may not be on >>for Long s o double click on that. What role does I s play in terms of digital transformation? >>If I could just hold on there because the thing is, there are leaders in Mama, there challenges. And there are leaders. The leaders typically are gonna go with seif solution. They're gonna go with one of the legacy our peace. So I'm not suggesting that everybody necessarily is a challenger. There are leaders, you know, Nokia was a leader until they weren't because they were complacent. Andi, I think they you know, they didn't run on I office. So, you know, I think there are two segments. There are leaders and there are challenges, and we're there for the ones that are ready to disrupt. Sorry. >>Please clarify that. No. Good. So So get back to it. Sort of digital transformation and disruption. What do you see? Is the role of AARP generally, but specifically I f s. >>Look, I think we digital information. A lot of discussion about it on the stage this morning. I've just touched on it now. I think that it takes very different forms. What most industries are finding is that they're facing a lot of non traditional competition and they're having to innovate around their business models. They can't going to market in the same way as they did before. They're having to innovate because of this non traditional competition. Andi. Understanding your your customer's understanding, your your staff, understanding your supply chain understanding your financials are all critical parts of being able to respond to whatever their changes, and that's where the RP solution comes into it. I think there's an interesting challenge now, which is that as those applications have become more fragmented and you've got more based debris cloud applications Ah, lot of the value often E. R P was that you had this integrated set of applications that you had this one source of the truth andan. Fortunately for many customers today, they don't have that because they've got import all of these best of breed applications and they don't have one source of the truth that multiple invoices made it multiple versions of their customer in the databases. Andi we still stand for a single integrated the r p. So, you know, I think understanding those elements of your businesses key. I was with a customer of ours in Nebraska a short while ago, and they were talking about our existing office customer. They were talking about the steel import duties that were imposed through the trade war with China. And they were saying, Look, that they had been able to respond to that in a way that they had good visibility of the supply chain, who was improved, imposing the tariffs, how they were going to impact them when they were going to impact them. And because they had this integrated Siara AARP. They were able to pass those pricing changes onto their customers, and they survived this. What could have been a cataclysmic event for their business had they not had an integrated your pee? They not being able to have this visibility into the supply chain and the customer base. They may well have gone out of business just because of that one change >>to meet all day and all comes back to the data, putting their putting data at the core of their business. That integrated data pipeline is essentially what they get out of that last question. So thinking about the next 18 to 24 months, what are the milestones that observers should look for? One of the barometers that we should be watching. >>So look, in the next two years, it's it's really about us building incremental scale. We have, ah, four year plan, which I built when I came in. We're halfway through that plan. We've hit all of the metrics and exceeded most the metrics that we had on their plan. It's really continue to focus on the strategy. As I said, we focus on those five industries, continue to build market share, continue to focus on those three solution types and build market share and market dominance on those three solutions. Andi in that segment that I defined before, so no change from a strategy perspective. I think there's really value in the consistency that we bring on on their talk track and, you know, along the way we passed the $1,000,000,000 mark, which we will do, I think, in 2021 organically if we accelerate, some of the money will pass the 1,000,000,000 before, but you know business. The margins continue to expand. We focus on customer satisfaction and, you know, it's a It's a pretty straight, you know, traditional prey book that we have to execute on now. >>Well, congratulations. It's a great playbook, and you're growing very nicely. So love that. Look, we really an honor to the last couple of years. Learn a little bit about the company in your industry. So appreciate meeting you guys. Thank you. All right. And thank you for watching over right back with our next guest. Ready for this short break day Volonte with Paul Gill in. You're watching the Cube from I f s World Conference from Boston 2019 right back.

>>Bly from Boston, Massachusetts. It's the cube covering ifs world conference 2019 brought to you by ifs. >>Okay. We're back in Boston, Massachusetts ifs world day one. You walked into cube Dave Vellante with Paul Gillen boss Devoss is here. He's the director of ISF I F S labs and Bob Dico who's the vice president of AI and RPA at ifs jets. Welcome. Good to see you again. Good morning bossy. We're on last year. I'm talking about innovation ifs labs. First of all, tell us about ifs labs and what you've been up to in the last 12 months. Well, I have has Lapsis a functioning as the new technology incubator. Fire Fest writes over continuously looking at opportunities to bring innovation into, into product and help our customers take advantage of all the new things out there to yeah. To, to create better businesses. And one of the things I talked about last year is how we want to be close to our customers. And I think, uh, that's what we have been doing over the pasta pasta year. Really be close to our customers. So Bob, you got, you got the cool title, AI, RPA, all the hot cool topics. So help us understand what role you guys play as ifs. As a software developer, are you building AI? Are you building RPA? Are you integrating it? Yes, yes. Get your paint. >>I mean, our value to our customers comes from wrapping up the technology, the AI, the RPA, the IOT into product in a way that it's going to help their business. So it's going to be easy to use. They're not going to need to be a technical specialist to take advantage of it. It's going to be embedded in the product in a way they can take advantage of very easily that that's the key for us as a software developer. We don't want to offer them a platform that they can just go and do their own thing. We want to sort of control it, make it easier for them. >>So I presume it's not a coincidence that you guys are on together. So this stuff starts in the labs and then your job is to commercialize it. Right? So, so take machine intelligence for example. I mean it can be so many things to so many different people. Take us back to sort of, you know, the starting point, you know, within reason of your work on machine intelligence, what you were thinking at the time, maybe some of the experiments that you did and how it ends up in the product. Oh, very good question. Right? So I think we start at a, Oh, well first of all, I think ifs has been using a machine learning at, at various points in our products for many, many years of Trumbull in our dynamic scheduling engine. We have been using neural networks to optimize fuel serve scheduling for quite some many years. >>But I think, um, if we go back like two years, what we sold is that, uh, there, there's a real potential, um, in our products that if you will take machine learning algorithms inside of the product to actually, um, help ultimately certain decisions in there, um, that could potentially help our business quite a bit. And the role of ifs lapse back in the day as that we just started experimenting, right? So we went out to different customers. Uh, we started engaging with them to see, okay, what kind of data do we have, what kind of use cases are there? And basically based on that, we sort of developed a vision around AI and a division back in the day was based on on three important aspects, human machine interaction optimization and automation. And that kind of really lended well with our customer use case. We talked quite a bit about that or the previous world conference. >>So at that point we basically decided, okay, you know what, we need to make serious work of this, uh, experimenting as boots. But at a certain point you have to conclude that the experiments were successful, which we did. And at that point we decided to look at, okay, how can we make this into a product and how to normally go system. We started engaging with them more intensively and starting to hand over in this guys, we decided the most also a good moment to bring somebody on board that actually has even more experience and knowledge in AI and what we already had as hive as labs. But that could basically take over the Baton. And say, okay, now I am going to run with it and actually start commercializing and productizing that still in collaboration with IVIS laps. But yeah, taking that next step in the road and then then Bob came onboard. >>Christian Pedersen made the point during the keynote this morning that you have to avoid the, the appeal of technology for technology's sake. You have to have it. I start with the business use case. You are both very technology, very deep into the technology. How do you keep disciplined to avoid letting the technology lead your, your activities? >>Well, both. Yeah. So, so I think a good example is what we see this world's going fronts as well. It is staying closer to customer and, and, and accepting and realizing that there is no, um, there's no use in just creating technology for sake of technology as you say yourself. So what we did here for example, is that we showcase collaboration projects with, with customers. So, for example, we show showcase a woman chair pack, which um, as a, as a manufacturing of spouting pouches down here in Massachusetts actually, uh, and they wanted to invest in robotics to get our widows. So what we basically did is actually wind into their factory literally on the factory floor and start innovating there. So instead of just thinking about, okay, how do robotics and AI for subrogations or one of our older products work together, we set, let's experiment on the shop floor off a customer instead of inside of the ivory towers. Sometimes our competitors to them, they'll start to answer your question. >>Sure. I can pick up a little, a little feasible. Yeah. Well, so in, I think the really important thing, and again, Christian touched on it this morning is not the individual technologies themselves. It's how they work together. Um, we see a lot of the underlying technologies becoming more commoditized. That's not where companies are really starting to differentiate algorithms after a while become algorithms. There's a good way of doing things. They might evolve slightly over time, but effectively you can open source a lot of these things. You can take advantage, the value comes from that next layer up. How you take those technologies together, how you can create end to end processes. So if we take something like predictive, we would have an asset. We would have sensors on that asset that would be providing real time data, uh, to an IOT system. We can combine that with historical maintenance data stored within a classic ERP system. >>We can pull that together, use machine learning on it to make a prediction for when that machine is gonna break down. And based on that prediction, we can raise a work order and if we do that over enough assets, we can then optimize our technicians. So instead of having to wait for it to break down, we can know in advance, we can plan for people to be in the right the right place. It's that end to end process where the value is. We have to bring that together in a way that we can offer it to our customers. There's certainly, you know, a lot of talk in the press about machines replacing humans. Machine of all machines have always replaced humans. But for the first time in history, it's with cognitive functions. Now it's, people get freaked out. A little bit about that. I'm hearing a theme of, of augmentation, you know, at this event. >>But I wonder if you could share your thoughts with regard to things like AI automation, robotic process automation. How are customers, you know, adopting them? Is there sort of concern up front? I mean we've talked to a number of RPA customers that, you know, initially maybe are hesitant but then say, wow, I'm automating all those tasks that I hate and sort of lean in. But at the same time, you know, it's clear that this could have an effect on people's jobs and lives. What are your thoughts? Sure. Do you want to kick off on them? Yeah, I'll know. Yeah, absolutely. That's fine. So I think in terms of the, the automation, the low level tasks, as you say, that can free up people to focus on higher value activities. Something like RPA, those bots, they can work 24, seven, they can do it error free. >>Um, it's often doing work that people don't enjoy anyway. So that tends to actually raise morale, raise productivity, and allow you to do tasks faster. And the augmentation, I think is where it gets very interesting because you need to, you often don't want to automate all your decisions. You want people to have the final say, but you want to provide them more information, better, more pertinent ways of making that decision. And so it's very important. If you can do that, then you've got to build the trust with them. If you're going to give them an AI decision that's just out of a black box and just say, there's a 70% chance of this happening. And what I founded in my career is that people don't tend to believe that or they start questioning it and that's where you have difficulty. So this is where explainable AI comes in. >>I do to be able to state clearly why that prediction is being made, what are the key drivers going into it? Or if that's not possible, at least giving them the confidence to see, well, you're not sure about this prediction. You can play around with it. You can see I'm right, but I'm going to make you more comfortable and then hopefully you're going to understand and, and sort of move with it. And then it starts sort of finding its way more naturally into the workplace. So that's, I think the key to building up successful open sexually. What it is is it's sort of giving a human the, the, the parameters the and saying, okay, now you can make the call as to whether or not you want to place that bet or make a different decision or hold off and get more data. Is that right? >>Uh, yeah. I think a lot of it is about setting the threshold and the parameters with within which you want to operate. Often if a model is very confident, either you know, a yes or a no, you probably be quite happy to let it automate. Take that three, it's the borderline decision where it gets interesting. You probably would still want someone to look over it, but you want them to do it consistently. You want them to do it using all the information to hand and say that's what you do. You're presented to them. And to add to that, um, I think we also should not forget they said a lot of our customers, a lot of companies are, are actually struggling finding quality stuff, right? I mean aging of the workforce riots, we're, we're old. I'm retiring eventually. Right? So aging of the workforce is a potential issue. >>Funding, lack of quality. Stop. So if I go back to the chair pack example I was just talking about, um, and, and, and some of the benefits they get out of that robotics projects, um, um, is of course they're saving money right there. They're saving about one point $5 million a year on money on that project, but their most important benefits for them, it's actually the fact that I have been able to move the people from the work floor doing that into higher scope positions, effectively countering the labor shortage today. They were limited in their operations, but in fact, I had two few quality stuff. And by putting the robots in, they were able to reposition those people and that's for them the most important benefits. So I think there's always a little bit of a balance. Um, but I also think we eventually need robots. >>We need ultimation to also keep up with the work that needs to be done. Maybe you can speak to Bobby, you can speak to software robots. We've, Pete with people think of robots, they tend to think of machines, but in fact software robots are, where are the a, the real growth is right now, the greatest growth is right now. How pervasive will software robots be in the workplace do you think in the three to five years? >> I think the software robots as they are now within the RPA space, um, they fulfill a sort of part of the Avril automation picture, but they're never going to be the whole thing. I see them very much as bringing different systems together, moving data between systems, allowing them to interact more effectively. But, um, within systems themselves, uh, you know, the bots can only really scratched the surface. >>They're interacting with software in the same way a human would on the whole by clicking buttons going through, et cetera, beneath the surface. Uh, you know, for example, within the ifs products we have got data understanding how people interact with our products. We can use machine learning on that data to learn, to make recommendations to do things that our software but wouldn't be able to see. So I think it's a combination. There's software bots, they're kind of on the outside looking in, but they're very good at bringing things together. And then insight you've got that sort of deeper automation to take real advantage of the individual pieces of software. >> This may be a little out there, but you guys >>are, you guys are deep into, into the next generation lot to talk right now about quantum and how we could see workable quantum computers within the next two to two to three years. How, what do you think the, the outlook is there? How is that going to shake things up? So >>let me answer this. We were actually a having an active project and I for slabs currently could looking at quantum computing, right? Um, there's a lot of promise in it. Uh, there's also a lot of unfilled, unfulfilled problems in that, right? But if you look at the, the potential, I think where it really starts playing, um, into, uh, into benefits is if the larger the, the, the optimization problems, the larger the algorithms are that we have to run, the more benefits it actually starts bringing us. So if you're asking me for an for an outlook, I say there is potential definitely, especially in optimization problems. Right. Um, but I also think that the realistic outlook is quite far out. Uh, yes, we're all experimenting it and I think it's our responsibility as ifs or ciphers laps to also look on what it could potentially mean for applications as we FSI Fs. >>But my personal opinion is the odd Lucas. Yeah. So what comes five to 10 years out? What comes first? Quantum computing or fully autonomous driverless vehicles? Oh, that's a tricky question. I mean, I would say in terms of the practical commercial application, it's going to be the latter in that much so that's quite a ways off. Yeah, I think so. Of course. Question back on on RPA, what are you guys exactly doing on RPA? Are you developing your own robotic process automation software or are you integrating, doing both say within the products? We, you know, if we think of RPA as, as this means of interacting with the graphical user interface in a way that a human would within the product. Um, we, we're thinking more in terms of automating processes using the machine learning as I mentioned, to learn from experience, et cetera. Uh, in a way that will take advantage of things like our API eighth, an API APIs that are discussed on main stage today. >>RPA is very much our way of interacting with other systems, allowing other systems when trapped with ifs, allowing us to, to send messages out. So we need to make it as easy as possible for those bots to call us. Uh, you know, that can be by making our screens nice and accessible and easy to use. But I think the way that RPA is going, a lot of the major vendors are becoming orchestrators really. They're creating these, these studios where you can drag and drop different components into to do ACR, provide cognitive services and you know, elements that you could drag and drop in would be to say, ah, take data from a file and load it into ifs and put it in a purchase order. And you can just drag that in and then it doesn't really matter how it connects to YFS. It can do that via the API. And I think it probably will say it's creating the ability to talk to ifs. That's the most important thing for us. So you're making your products a RPA ready, friendly >>you, it sounds like you're using it for your own purposes, but you're not an RPA vendor per se. You know what I'm saying? Okay. Here's how you do an automation. You're gonna integrate that with other RPA leadership product. I think we would really take a more firm partner approach to it. Right? So if a customer, I mean, there's different ways of integrating systems to get our RPA as a Google on there. There's other ways as well, right? That if a customer actually, um, wants to integrate the systems together using RPA, very good choice, we make sure that our products are as ready as much for that as possible. Of course we will look at the partner ecosystem to make sure that we have sufficient and the right partners in there that a customer has as a choice in what we recommends. But basically we say where we want to be agnostic to what kind of RPA feminists sits in there that was standing there was obviously a lot of geopolitical stuff going on with tariffs and the like. >>So not withstanding that, do you feel as though things like automation, RPA, AI will swing the pendulum back to onshore manufacturing, whether it's Europe or, or U S or is the costs still so dramatically advantageous to, you know, manufacture in China? Well, that pendulum swing in your opinion as a result of automation? Um, I have a good, good question. Um, I'm not sure it's will completely swing, but it will definitely be influenced. Right. One of the examples I've seen in the RPA space ride wire a company before we would actually have an outsourcing project in India where people would just type over D uh, DDD, the purchase orders right now. Now in RPA bolts scans. I didn't, so they don't need the Indian North shore anymore. But it's always a balance between, you know, what's the benefit of what's the cost of developing technology and that's, and it's, and, and it's almost like a macro economical sort of discussion. >>One of the discussions I had with my colleagues in Sri Lanka, um, and, and maybe completely off topic example, we were talking about carwash, right? So us in the, in the Western world we have car wash where you drive your car through, right? They don't have them in Sri Lankan. All the car washes are by hands. But the difference is because labor is cheaper there that it's actually cheaper to have people washing your car while we'd also in the us for example, that's more expensive than actually having a machine doing it. Right. So it is a, it's a macro economical sort of question that is quite interesting to see how that develops over the next couple of years. All right, Jess. Well thanks very much for coming on the cube. Great discussion. Really appreciate it. Thank you very much. You're welcome. All right. I'll keep it right there, but he gave a latte. Paul Gillen moved back. Ifs world from Boston. You watch in the queue.

>>live from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I. F s. >>Welcome back to I f s world Everybody, This is David Dante with Paul Dillon and you're watching the Cube, The leader in live tech coverage. Where here from? From the Heinz Auditorium. Nick Ward is here. He's the head of OM Digital Solutions for Rolls Royce and Scott Helmer, president of the F S aerospace and defense. Gentlemen, welcome to the Cube. Thanks for coming on. Thank you. Scott. I want to start with you. We heard a lot about digital transformation. You guys are in the heart of that. Ah, defense. Aerospace is one of those industries that hasn't been dramatically disrupted. Like publishing. Are you seeing taxis? It's a It's a high risk business. It's one that's highly in trench, but it's not safe from disruption. What are the major trends that you're seeing in your space and paint a picture for us? If you would, >>uh, that's a very good question. You're right. The same level of disruption related digital transformation has not yet common aerospace. Defense is that has come to some of the other league leading industries. But this is a whether it's land based operations, naval operations or aircraft operations. This is an asset intensive industry. It's characterized by a very connected network of organizations. Be the manufacturer's operators, subsystem, part suppliers or just maintainers. They stay connected throughout the asset life cycle in its entirety. I f F f s has a portfolio capability. There's four purpose underpinning the critical business processes of those organizations that enables us to be the digital thread to continue the connection of those organizations throughout that outs of life cycle, if you will, that sees this fall come to come to be at the heart of asset lifecycle Management on provides us with the opportunity to inform information insights for our customers. Like return on experience data on aircraft engines where an old GM like Rolls Royce, for example, can harvest that data to analyze the performance of those assets and ultimately optimized thereafter after service offerings. >>Who are the customers? I mean, there's a limited number of companies that make aircraft engines so you don't have a huge domain been numbers of those kinds of companies. But are the customers channel their partners the supply chain network >>Well, the ecosystem is actually large and extensive. They're very recognizable names, and it's certainly an industry that's characterized by significant growth. On the commercial side. Amaro continue is in the midst of a boom and is likely to continue to grow, are expected to continue to grow for at least another decorate decade. And on the defense side, we see military budgets continue or increasingly moving towards sustainment and serve it ization on a performance basis. So the number of organizations that are participating in that value chain whether they're just the upstream, only am so I should just upstream. But the Austrian Williams participate in the design and development are moving into the aftermarket sustainment and service support parts and subsystem supply, or ultimately, third part repair organizations. It's actually quite an extensive network participating in that asset life cycle. >>So, Nick, you know people here Rolls Royce, they think you know the iconic brand. We're gonna talk about cars, talk about your role at Rolls Royce and what's going on in your business. >>So my role I lead our product management function looking are digitally enabled. Service's so for 20 years we've been running a service we call total care. Total care is like a fixed dollar rate. Every time an aircraft flies, we paid a dollar rate for it. Flying. What's really great about that is we're incentivizing. No, I am exactly the same way that airline isn't said device. Keep the aircraft flying. It owns revenue for the airline. It owns revenue for us on that revolutionized relationship between oh am on operator. So within my role, it's about taking four division we call The Intelligent Engine. Intelligent Engine is recognizing the way that digital is starting to pervade the way we think about service is so we've talked about physical engine, big rotating piece of metal that people see service. Is that wrap around that on the digital brain that sits behind all of those sources? That's what we call the intelligent engine. >>Yes, so people sometimes think the mission critic critical piece of air travel is the reservation system. It's not. It's the thinness of the engines available that was lost in critical system, right? You mean like it? If you don't get your reservation Oh, well, somebody else will get it. Not not the end of the world But for the maintenance piece, that's all right. >>Job. You know, our fundamental mission is every rose was powered. Aircraft flies on time every time. All right, there's no disruption. There's no delay that works for the operator, for the airlines are owner of the aircraft. It works for us. And this is why the confluence of our incentives comes together and it really works well. >>So what role has technology played in terms of evolving that that experience? I mean, I'm sure, you know, years ago, it used to be a lot of tribal knowledge. Gut feel. Joe the mechanic really knew his stuff. Etcetera, etcetera, Powers. Technology evolved and changed your your business. >>So you had to go back to the business model, right? So technology should follow. The business model business model is fundamental risk transfer. So we take the risk off cost, fluctuation, availability, whatever it is away from the airline and we take it on to us is the Obama's Rolls Royce said the money's at risk. You gotta get really good forecasting. Four. Custom becomes your core skill almost because you've got to understand all the risk drivers understand how to optimize him, understand out of work around that in order to have a successful business. And you can't forecast without data without digital twins without all I ot and cloud and all the while the enablers allow you to sort of new to new generations of capability. >>So you're forecasting what probability of, ah, component failure, the life of ah, failure. How long it takes to bring stuff back on sure >>cost really on three different levels. So we do an engine forecast which is looking at the health of the life of the components in the engine, looking for any reasons why the engine might be forced off the wing. We're looking at a fleet level. So we're looking at all of the things that might affect the global fleet in terms of maintenance demands need for overhaul of those such things. And we forecast that out after 30 years, really accurately, as an engine leaves the factory, we know pretty much within 90 something percent everything that engine is going to require from the maintenance 20 to 30 years and then a network level. We're forecasting the capacity demand that we then need to meet within our maintenance shops globally. >>Well, He's obviously Paul. Been progress, right? We used to fly with very common four engine plains across the pond right now. Two engines. In fact, you don't want to fly in the four engine to engine more reliable. >>You've You've been a Rolls Royce for over 15 years. What have you seen as a result of all this technology is predicted maintenance technology. What impact is that? Had on equipment of reliability on life cycle on fuel efficiency. >>Huge, huge. I think if you don't have the data and you don't have the digital twin kind of capability behind you, you have to treat every engine like it's the worst engine in the fleet because you don't have the data tell you it isn't right. So everything is treated extremely extreme conservatism. If you have the data and you have the models and you have everything else around you, you treat engines, individuals. They have individual histories, individual configuration, individual experiences. Because of individuals. You tailor your maintenance intervention to keep that engine flying as long as you can on, you don't have to be his conservative. You can weed that conservatism out of the process, and that means it stays on wing 40 50% longer. It's flying for the airline that much longer. Revenues. Passengers are flying. There's less disruption. >>So what do you What do you do with my f s? What's the what's >>So Because we created this intelligent engine kind of next generation leap forward in that capability, we need data. So we have, ah, program we call the Blue Data Threat. The blue data traded in a global initiative that we're rolling through all of our 200 plus airline customers. How do we form a win win transaction with the airlines? Give us better data will make smarter decisions. You'll see less disruption, more availability. We'll share our data. Back with you is an operator. So this is a very simple, very nice cashless transactions. So with my intern X, because we share a number of customers, Scott has got a number of airline customers. Big airline customers were operating the maintenance system. What way do together? Is reform a plug in? It's like for us. We can go to an airline, and we can say you have total care inside to borrow an intel phrase. So he complied into the rosary service is seamlessly automated. The data can flow very little burden or effort on to the I t group of the outline. The data flows into our organization. We do what we do when we can push our date again back into the airline systems with updated form, their availability >>so key to that key to that value, Jane is obviously that common customer base. But critical to the work that Rolls Royce stuns does is the accuracy and reliability of the data They get to inform their own performance analysis and maintenance, availability information and the eye if it's made installed. Base leverage is a very rich data from the return on experience of the engine utilization that Nick and is able to use this part of the Blue data threat offering back to their customers. And together we're able to deliver unprecedented levels of value to airline customers and optimizing the availability of their assets. >>Nick, have you? Are you finding new ways to monetize this data beyond just improving the customer experience, a bond with your customers or their new revenue avenues >>for you? So I think within this is absolutely key that everybody within this transaction recognizes this is this is not a revenue opportunity for Rosa. This is a cashless transactions because there's a lot of sensitivity that data belongs to the airline, right? So you have to be very clear and open. That data is driving Rolls Royce to make internal improvements, so we will save a little bit on our bottom line of delivering the service's they've already bought in order to get better. Outcomes of those service is so It's a little early for the service. You were thinking about >>this a little bit like security. In that sense, you know of bad guys are trying to get there. So So the good guys to share data. It's a cashless transaction, and everybody we >>believe is a market collaboration on data is got to be the way Ford's >>Scott could. You double click on the Ecosystem and A and D, obviously different from the sort of core traditional you know, e r. P world. The importance of the ecosystem may be what it looks like, described the >>That's an insightful question, Dave, certainly the partner ecosystem in inner space and defense is somewhat differentiated. I don't want to go so far as to say that it's unique, but it's somewhat differentiated from Corey RPS. As you duly noted partner, our four persecuted for four purpose capability around the critical process is for manufacturers. Maintainers on, uh, parts and subsystem supply organizations is all the potential, and it's a promise. But that value can only be realized to the collaboration with partners who doom or an aerospace and defense and just support delivery and implementation capability. They provide value added service is around business process, reengineering, change, enablement as well as their partners and co innovation as well. Certainly the collaboration we have with Rolls Royce is certainly a new level of collaboration around innovation that hasn't been seen before. So those partners are critical to our ability to deliver that value to our customers. Secondarily, we have our partners are actually a route to market in the traditional sense of referral system like you would see in Corriere P. But more importantly, as an indirect route to market as channels to their end customers, almost I s v ng. Our capability to support the delivery of service is to their customers. >>So it's the it's the manufacturers of the Plains, For example, it's the airlines themselves. It's manufactured the engine defectors, >>the maintainers. So the M R organizations that do the work around repair, and it's the entire ecosystem of organizations to support the supply chain. Our partners are both in themselves as well as partners in delivering the capability to those organizing. >>And it's a data pipeline throughout that value chain a digital thread that you guys actually have visibility on, correct your value. Add to the and >>we have the opportunity to play a vital role between within that equal system in allowing and enabling the connective ity of that network between Williams and their customers between the operators and their maintainers. For example, we've got a collaboration with an airline right now where we're going to connect them directly with the third party organizations that they rely on for airframe repair. For example, >>I want to ask you about the aerospace business it used to be that used to be a very small market in terms of the number of customers. Now we've got Space X. We've got the private areas, three private aerospace companies. We've got different countries now. India, China getting involved. What impact is that having on your business. >>Certainly we're seeing the emergence of spatial program's playing a taking up a larger share of off of government or public sector budgets. And people are beginning to think about how to leverage or harvest the value from utilization of spatial assets and again are enabling capability. To be a collector of that data and supply it back as an information in sight to those were reliant on the data that is collected is a vital role that we play in that ecosystem. >>So when I was when you were describing the ecosystem value chain, it strikes me that there's there's clearly a whole lot of metrics going on. Are there new levers, new metrics, emerging new levers that you can pull to really drive a flywheel effect in the industry? One of the key key performance indicators that you're really trying to optimize visiting? This is >>Certainly this is certainly an industry that characterizes as an intensive, complex mobile and in this case complex in mobile or a pseudonym for very expensive assets. So everything around availability, reliability are all key drivers are performance indicators of our customers ability to realise the value from those assets and our role in that is to provide them with the information inside to be able to make optimal decisions to maximize that availability. >>Anything you dad, >>I think in this day and age things like technical dispatcher alive. Relative engines is so high, high 99 sort of percentage. You have to start focusing on things like the maintenance costs to achieve that. Driving your maintenance costs down, but still retaining your really high availability. That becomes a really interesting balance. You could have under percent of relevancy. What it's gonna cost a fortune. You don't want that. >>Well, gentlemen, thanks so much for coming on. The cute, really fascinating discussion. Thank you. Great to have you. All right, you're welcome. And keep it right there, buddy. Paul Gill on day Volante from I F s World in Boston. You're watching the Cube right back Right after this short break

>>live from Boston, Massachusetts. It's the Q covering I f s World Conference 2019. Brought to you by I >>f. S, I say, What a minute. I didn't cash it. Everybody welcome to I f s World 2019. You watching the Cube? The leader in live tech coverage on day Volante with my co host, Paul Galen. Marty Martin is here. She is the president of the service management division of I F s and C e o of work wave. Marty, good to see you. >>Yeah, it's great to be here. I'm so excited. >>A lot of action going on. You guys. Service management, Field Service management particular. You guys had an acquisition today. We're gonna talk about Let's start with your role you came in and 2017 with the >>pretty acting. Actually, >>2018 finalized the acquisition. I think they announce it in 2017. So tell us about how you came in and where you're at today with >>Certainly. So work wave the company. I lied. Join the effects family in 2017. Darren Ruess, who joined I f s in April 2018 recruited me into form a global business unit around service in August of 2018 and the reason why we did this is service isn't only a part of our economies all over the world, but it's a super great growth area that almost every business can go after in in progress both revenue and margins. So we had a lot of great software products, and we really wanted to improve our go to market around this. >>So why, why all of a sudden today, this talk about service management? Why's it becoming so hard? I mean, everybody's always been focused on customer service, but why this service management generally and field service management while the buzz. >>So first off, you've had the evolution of a number of line of business applications and service certainly has been a part of maintenance organizations or break fix where you're going out in repairing thing. What we're realizing now when you talk about service ization, how o E EMS air building what's called aftermarket revenue? There is literally $100 billion of revenue that you can get from that you look, we had Melissa did a nano from Souza. If you think about open source software, they make money from sirve ties, ing, open source software and the products. You look at apple how they're doing APs. So people are starting to realize that service is an engine for brand loyalty, customer experience, not just a cost center. How it used to be, what the >>customers do. Ah, companies do wrong with service one of the areas where they tend to have the greatest inefficiencies where you can help him. >>So first off, I'd say that often in the C suite, unless they're pure place service companies. They don't understand how transformative service is and how important it is to their brand. Many times now, if you have digital enablement of a new customer, the first time they see a face of your brand might be your service technician. So getting the awareness of the C suite is Step one, because we want to start talking about outcomes that grow revenue and profits and getting them to invest in service. So you know, many times will say, Oh, I want to do a C. R M project. I want to do an E r P project. That's certainly things were good at it. Here I a fest, but we can coach them through how you take the market opportunity for your company and service enabled by our technology and transform. Tomorrow I'll be with Accenture, one of our many great partners, and we're talking about adapting the business, the service transformation, sometimes digitally, sometimes with workflow transformation. But that opportunity and service is huge and almost never. There's no company I know of that's taking 100% of their service market share. That's the difference, especially in slower growth. Asset manufacturing are more mature verticals. >>So I was here last night walking the floor, and I went to the extent you Booth, you know, anytime you see, except you're in a show like this. Okay, Censure. You think Large company Global. I was actually quite impressed a little bit surprised to see you know, their presence here because they they go where the money is, right? And so my specific question is, think, except you think big companies. But you guys obviously focused on what range of companies smaller midsize company. So what's the landscape? Looked like? What's the difference is between sort of smaller and larger companies, >>so that's a great question. I'll take it in part So if you think about a neck censure definitely they looked a large. I also have had meetings with the Lloyd McKinsey Cap gem and I dxc etcetera Also tcs Tech Mahindra which a little bit or more telco focused. So if you think about at the very large and you have telco utilities, large manufacturing O e ems that our customers and definitely the customers I'm pursuing Maur with this focus But we also with work with go down to the S and B We had panels also of, for example, female owners of franchises and also males as well that are creating new service businesses and they're starting maybe with one truck in out providing service. So the fact that we can handle not only the breath and depth of complex service needs, but through work wave we also can encourage the small service businesses to reach their full potential is fantastic. And you know that makes me excited every day. And part of why I focused on service specifically is you are delighting customers. You are the face of a brand and you're making a difference. It's not something that s 02 is esoteric. This is about really value that we're delivering, >>always interested in the dynamics of serving the SNB market >>because one of >>these small companies don't really have that. Maybe family owned there found her own. They don't really put a lot of value on technology. How >>do you >>get in the door? How do you convince them that automating the service function is actually worth the investment? >>Well, first off, I'd say that even the big companies are struggling to go paperless. Okay, so, you know, I think some of the challenges we see survive, if you will, big to small, especially when you look globally in different countries. What have you. But the approach we take in the S and B is that we want to be a software as a service provider, and we were to really handle everything they need in their business. So everything from how they grow leads how they have c r m type functionality. How, then they're delivering service, how they're cross selling service, how they're billing service. So at the at the S M B level, we're putting that kind of all in one technology and there's really not that much integration or I T Service is around that right. We want it to be easy and fast, etcetera, as you go more into the mid market and then definitely into the enterprise. Then you start getting more complexity. You get more I t service's integrations, more configurable ity, sometimes even some customized software. So there is a definitely a difference in the complexity. But the fundamentals of what a service business needs really isn't that much different to your >>customers that you mentioned customize and you guys were SAS space. That's one of the text that we'd like to sort of explore a little bit. A lot >>of >>times SAS companies want to avoid, you know, custom mods. But at the same time, you guys are trying to offer a choice. So help us square that circle. How do you What's the conversation like with customers in terms of how you advise them, You guys obviously do a lot of deep functionality, you know? How do you sort of advise them whether or not to go heavily custom or try to go out of the box? >>Certainly. So in the true, I'd say the small business of a medium you start getting some crossover, but in the small business, Absolutely avoid customization because you won't be able to stay evergreen. It's going to be too hard to maintain. You don't have the subject matter experts, et cetera, so that's really a truce. Ask that from a community. A product engagement. We need to be driving the partnership with the customers that they can use a software out of the box in ways that matter to them. As you start getting into the mid market and especially the enterprise, then it becomes more of a choice, right? How much money do you have to spend? How robust is your organization and set trek? And in general, I advise customers if they care about evergreen software, et cetera. If they care about ease of upgrades, don't customize that Being said, we recognize sometimes in the field with your brand experience Custom mobile. You may need to customize a little bit, so it's Ah, say, a chicken and an egg. You have to weigh the benefits of the costs, and that's what we work through with our >>customers. Specifically morning. What's the upgrade cycle like? There's a customer having the choice Thio upgrade at a particular time, Or do they have a window? >>So it varies primarily, there's a few exceptions, but in general, with the work way, Family of products is true SAS. So it's almost like you're Apple Phone. We pushed the upgrade and you have to take it. Okay, And that's the true SAS model at I. F. S. And this is something Darren talked about in his keynote. We pride ourselves on offering choice. So even though we do have regular release cycles, we encourage customers to upgrade regularly. They have the choice on when they take upgrades and also how they deploy. We have some markets with things like data, privacy and what have you that they may, for that reason or for other reasons, go on premise even still today. So we give them the choice on how they upgrade as well as where they host. >>I'm fascinated by your product line. You have products for pest control. H V. A. C. Plumbing cleaning service is long and landscape. How different are these industries really in terms of their their automation needs? >>Well, I'll tell you one of the personal factors that Darren wanted to make sure I was comfortable with was multitasking. And that definitely is the case, because an I f s, we serve five key industries. So if you think about manufacturing utilities, telco service providers and Andy Okay, that's more at the enterprise level. If you think then when you go toe work wave. Those verticals that you mentioned are all the ones we service at work wave, and they are different. So you know what? Work wave. It's primarily service industries where you're going into ah, home and a little bit The commercial aspect and I effects were also doing more some heavy industries, some very large asset base, things like that. So I like to think about it as a product I service consumer based service. And then you can also differentiate across verticals with what are called high value assets versus, you know, Mork consumer size assets. >>So what >>are >>the one of the key technology enablers that are driving service management today? I mean, obviously, cloud, we talked about sas a lot of push on you X and customer experience, but what other key ones? >>So all the three that you mentioned mobile is huge. You know, Pete and even today, like I run. I work mainly from my phone, and that's really what people want. They want efficient work flows that are configurable on mobile, tied to the customer, the asset, the business. And that's an area that we're continuing to make investment. We also try to prioritize how we bring in the new technology trends into service. Because every technology trend that you see has applicable ity and service supply chain and how you run spare parts specially globally, you can see applications for Blockchain augmented emerged Reality how you can connect the field tech with an expert resource or remote resource to the consumer. That is obvious, right? So you talked about the enabling technologies like Cloud, how we're thinking about data platforms and Data's the currency. Of all of that, we need to d'oh. His service is really about a an execution engine, right? Because to deliver a customer experience that makes people come back to your brand. To purchase Maur, you need great service, so any time somebody talks about customer experience, but they don't talk about service. I want to say you're really naive because you can just get the customer. You have to delight the customer. >>Uh, the, uh, there's a lot of interesting technology going on now in the area. Fleet Management making fleets more efficient How does that figure into the service is? You offer. >>So Fleet management is an important part, and it's one that you have a very tangible return on investment when you deploy route management route optimization, fleet management. So you have the aspects that are very tangible, relate to how do you get the person or the truck where it needs to be when it needs to be okay, and that's pretty well understood. Then how do you get the most efficient schedule that minimizes miles driven gas, used et cetera? And then, of course, you also are thinking about health and safety. There's some cool things now that you can partner that if you have these fleet technologies installed in a way that is integrated in your service business, you can actually get lower insurance premiums, right? So it's not just the conventional use. Cases were starting to think in this kind of gig economy, how you can also be thinking about bringing in Maura what's called a contingent workforce. So if you have surge capacity in a certain period or you want to just do more third party service, probably your appliances. You know they're not the employees, if you will, of a g e or a world polar and LG right there Probably a contingent workforce. And that's a model that's also evolving. But to do Fleet Management across say, contractors, not just employees is an area that were thinking more and more led by some of the uber ization, if you will, of the of the marketplace >>right up against the clock, Marty. But to last questions You made an acquisition today, Vashti Uh, yeah, uh, I thought of it as a tuck in acquisitions, although Darren essentially sort of said, it's gonna make you the leader now in service management. Um And then I want to understand how you guys differentiate from some of the big whales. >>So, you know, overall, we're on track to be about 700 revenue this year in service management. We're working to get to 200 million, right? So this year will probably be around maybe 1/5 50 ish per se. Don't quote me on that check with our coms team, but the point being is that we have the ability to use these tuck in acquisitions and service to accelerate our lead, not just from a revenue perspective, which is what we were just talking about. But from a product perspective, you might have followed Salesforce acquiring Click. That means we are the only independent. Aye, aye. Optimization engine that is field tested. Battle ready. So that's great. This s t a is how we consolidate our dominance and complex service. So what darren was speaking to is not on Lee the service management segment of our revenue and how we continue to accelerate over the oracles in the S a. P s and the service maxes et cetera of the world. But how we take what we're already dominant in and really put the hammer down. Honesty is part of that. >>Your differentiation then if I infers, is focus. Um, you're you're deep customer customs agent deep >>domain expertise. Yeah, So really, when you think about a i optimization, which drives a ton of business value and the ability to handle the complex service cases that then drive business outcomes and outcomes based service models, we are number one and s dea tucks into that, even though it is very strategic on how we position ourselves with leadership and service. >>All right, Challenger becomes number one, Marty. Thanks very much. All right, Keep it right, everybody. Dave A lot with Paul Galen. You're watching the Cube from Boston Mass. I f s world 2019 right back.

>>from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I F s. Hi, buddy. Welcome to Boston. You're watching the cubes coverage of I s s World in the Heinz Auditorium in Boston. I'm Day Volonte with my co host, Paul Gill and Paul. This is the the largest enterprise resource planning software company that our audience probably has never heard of. This is our second year covering I f s World. Last year was in Atlanta. They moved to Boston. I f s is a Swedish based company. They do about $600 million in annual revenue, about 3700 employees. And interestingly, they have a development center in Sri Lanka, of all places. Which is kind of was war torn for the last 15 years or so, but nonetheless, evidently, a lot of talent and beautiful views, but so welcome. >>Thank you, Dave. I have to admit, before our coverage last year, I had never even heard of this company been around this industry for more than 30 years. Never heard of this company. They've got 10,000 customers. They've got a full house next door in the keynote and very enthusiastic group. This is a focus company. It's a company that has a lot of ah ah, vision about where wants to go some impressive vision documents and really a company that I think it's coming out of the shadows in the U. S. And it will be a force to be reckoned with. >>So I should say they were founded in the in the mid 19 eighties, and then it kind of re architected their whole platform around Client server. You remember the component move? It was a sort of big trends in the in the nineties. In the mid nineties opened up offices in the United States. We're gonna talk to the head of North America later, and that's one of the big growth areas that growing at about three. They claim to be growing at three x the overall market rate, which is a good benchmark. They're really their focus is really three areas e r. P asset management software and field service management, and they talk about deep functionality. So, for instance, they compete with Oracle ASAP. Certainly Microsoft and in four company we've covered in four talks a lot about the last mile functionality. That's not terminology that I f s uses, but they do similar types of things. I'll give you some examples because, okay, what's last mile? Functionality? Things like, um, detailed invoicing integration, contract management. Very narrow search results on things like I just want to search for a refurbished parts so they have functionality to allow you to do that. Chain. A custom e custody chain of custody for handling dangerous toxic chemicals. Certain modules to handle FDA compliance. A real kind of nitty gritty stuff to help companies avoid custom modifications in certain industries. Energy, construction, aerospace and defense is a big area for that. For them, a CZ well as manufacturing, >>there's a segment of the e r P market that often is under uh is under seeing. There's a lot of these companies that started out in niches Peoples off being a famous example, starting out on a niche of the market and then growing into other areas. And this company continues to be very focused even after 35 years, as you mentioned, just energy aerospace, a few construction, a few basic industries that they serve serve them at a very deep level focused on the mid market primarily, but they have a new positioning this year. They're calling the challengers for the challengers, which I like. It's a it's a message that I think resonates. It's easy to understand there position their customers is being the companies that are going to challenge the big guys in their industries and this time of digital transformation and disruption. You know, that's what it's all about. I think it's a great message of bringing out this year. >>Of course I like it because the Cube is a challenger, right? Okay, even though we're number one of the segments that we cover, we started out as a sort of a challenger. Interestingly, I f s and the gardener Magic Corners actually, leader and Field Service Management. They made an acquisition that they announced today of a company called Asked. He asked, U S he is a pink sheet OTC company. I mean, they're very small is a tuck in acquisition that maybe they had a They had a sub $20 million market cap. They probably do 25 $30 million in revenue. Um, Darren rules. The CEO said that this place is them is the leader in field service management, which is interesting. We're gonna ask him about that to your other point. You look around the ecosystem here that they have 400 partners. I was surprised last night. I came early to sort of walk around the hall floor. You see large companies here like Accenture. Um and I'm surprised. I mean, I remember the early days when we did the service. Now conferences 2013 or so you didn't see accent. You're Delloye E Y p W c. Now you see them at the service now event here that you see them? I mean, and I talked to essential last night. They said, Yeah, well, we actually do a lot of business in Europe, particularly in the Scandinavian region, and we want to grow the business in the U. S. >>Europe tends to be kind of a blind spot for us cos they don't see the size of the European market, all the activities where some of the great e. R. P. Innovation has come out of Europe. This company, as you mentioned growing three times the rate of the market, they have a ah focus on your very tight with those customers that they serve and they understand them very well. And this is a you can see why it's centuries is is serving this market because, you know they're simply following the money. There's only so much growth left in the S a P market in the Oracle market. But as the CEO Darren said this morning, Ah, half of their revenues last year were from net new customers. So that's that's a great metric. That indicates that there's a lot of new business for these partners to pursue. >>Well, I think there's there's some fatigue, obviously, for big, long multi year s AP integrations, you're also seeing, you know, at the macro we work with Enterprise Technology Research and we have access to their data set. One of the things that we're seeing is a slowdown in the macro. Clearly, buyers are planning to spend less on I T in the second half of 2019 than they did in the first half of 2019 and they expect to spend less in Q four than they expected to in July. So things are clearly softening at the macro level. They're reverting back to pre 2018 levels but it's not falling off a cliff. One of the things that I've talked to e t. R about the premise we put forth love to get your thoughts is essentially we started digital transformation projects, Let's say in earnest in 2016 2017 doing a lot of pilots started kind of pre production in 2018. And during that time, what people were doing is they were had a lot of redundancy. They would maintain the legacy systems and they were experimenting with disruptive technologies. You saw, obviously a lot of you. I path a lot of snowflake and other sort of disruptive technology. Certainly an infrastructure. Pure storage was the beneficiary of that. So you had this sort of dual strategy. We had redundancy of legacy systems, and then the new stuff. What's happening now is, is the theory is that we're going into production. Would digital transformation projects and where were killing the legacy stuff? Okay, we're ready to cut over >>to a new land on that anymore, >>right? We're not going to spend them anymore. Dial that down. Number one. Number two is we're not just gonna spray and pray on all new tech Blockchain a i rp et cetera. We're gonna now focus on those areas that we think are going to drive business value. So both the incumbents and the disruptors are getting somewhat affected by that. That slowdown in that narrowing of the focused. And so I think that's really what's happening. And we're gonna, I think, have to absorb that for a year or so before we start to see new wave of spending. >>There's been a lot of spending on I t over the last three years. As you say, driven by this need, this transition that's going on now we're being going to see some of those legacy systems turned off. The more important thing I have to look at, I think the overall spending is where is that money being spent is being spent on on servers or is it being spent on cloud service is, and I think you would see a fairly dramatic shift going on. They're so the overall, the macro. I think it's still healthy for I t. There's still a lot of spending going on, but it's shifting to a new area there. They're killing off some of that redundancy. >>Well, the TR data shows couple things. There's no question that server and storage spending is has been declining and attenuating for a number of quarters now. And there's been a shift going on from that. Core infrastructure, obviously, into Cloud Cloud continues its steady march in terms of taking over market share. Other areas of bright spots security is clearly one. You're seeing a lot of spending in an analytics, especially new analytics. I mentioned Snowflake before we're disrupting kind of terror Data's traditional legacy enterprise data warehouse market. The R P. A market is also very hot. You AI path is a company that continues to extend beyond its its peers, although I have to say automation anywhere looks very strong. Blue Prison looks very strong. Cloudera interestingly used to be the darling is hitting sort of all time lows in the E. T R database, which is, by the way, that one of the best data sets I've ever seen on on spending enterprise software is actually still pretty strong. Particularly, uh, you know, workday look strong. Sales force still looks pretty strong. Splunk Because of the security uplift, it still looks pretty strong. I have a lot of data on I f s Like you said, they don't really show up in the e t R survey base. Um, but I would expect, with kind of growth, we're seeing $600 million. Company hopes to be a $1,000,000,000 by 2022 2021. I would think they're going to start showing up in the spending >>service well again in Europe. They may be They may be more dominant player than we see in the US. As I said, I really had not even heard of the company before last year, which was surprising for a company with 10,000 customers. Again, they're focused on the mid market in the mid market tends to fly a bit under the radar. Everyone thinks about what's happening in the enterprise is a huge opportunity out there. Many more mid market companies and there are enterprises. And that's a that's been historically a fertile ground for e. R. P. Companies to launch. You know J. D. Edwards came out of the mid market thes are companies that may end up being acquired by the Giants, but they build up a very healthy base of customers, sort of under the radar. >>Well, the other point I wanted to make I kind of started to about the digital transformation is, as they say, people are getting sort of sick of the big, long, ASAP complicated implementations. As small companies become midsize companies and larger midsize companies, they they look toward an enterprise resource planning, type of, of platform. And they're probably saying, All right, wait. I've got some choices here. I could go with an an I F. S, you know, or maybe another alternative. T s a p. You know, A S A P is maybe maybe the safe bet. Although, you know, it looks like i f s is got when you look around at the customers, they have has some real traction, obviously a lot of references, no question about it. One of things they've been digging for saw this gardener doing them for a P I integrations. Well, they've announced some major AP I integrations. We're gonna talk to them about that and poke it that a little bit and see if that will So to solve that criticism, that what Gardner calls caution, you know, let's see how real that is in talking to some of the customers will be talkinto the executives on members of the ecosystem. And obviously Paul and I will be giving our analysis as well. Final thoughts >>here. Just the challenge, I think, is you note for these midmarket focus Cos. Has been growing with their customers. And that's why you see of Lawson's in the JD Edwards of the World. Many of these these mid market companies eventually are acquired by the big E R P vendors. The customers eventually, if they grow, have to go through this transition. If they're going to go to Enterprise. The R P you know, they're forced into a couple of big choices. The opportunity and the challenge for F s is, can they grow those customers as they move into enterprise grade size? Can they grow them with with E. I. F s product line without having them forcing them to transition to something bigger? >>So a lot of here a lot of action here in Boston, we heard from several outside speakers. There was Linda Hill from Harvard. They had a digital transformation CEO panel, the CEO of soo say who will be on later uh PTC, a Conway, former PeopleSoft CEO was on there. And then, of course, Tony Hawk, which was a lot of fun, obviously a challenger. All right, so keep it right there, buddy. You're watching the Cube live from I F s World Conference at the Heinz in Boston right back, right after this short break.

>> from Cambridge, Massachusetts. It's the Cube covering M. I. T. Chief Data officer and Information Quality Symposium 2019 Brought to you by Silicon Angle Media >> Welcome back to M I. T. Everybody watching the Cube. The leader in live tech coverage we hear a Day two of the M I t chief data officer information Quality Conference Day Volonte with Paul Dillon. Andy Palmer's here. He's the co founder and CEO of Tamer. Good to see again. It's great to see it actually coming out. So I didn't ask this to Mike. I could kind of infirm from someone's dances. But why did you guys start >> Tamer? >> Well, it really started with an academic project that Mike was doing over at M. I. T. And I was over in of artists at the time. Is the chief get officer over there? And what we really found was that there were a lot of companies really suffering from data mastering as the primary bottleneck in their company did used great new tech like the vertical system that we've built and, you know, automated a lot of their warehousing and such. But the real bottleneck was getting lots of data integrated and mastered really, really >> quickly. Yeah, He took us through the sort of problems with obviously the d. W. In terms of scaling master data management and the scanning problems was Was that really the problem that you were trying to solve? >> Yeah, it really was. And when we started, I mean, it was like, seven years ago, eight years ago, now that we started the company and maybe almost 10 when we started working on the academic project, and at that time, people weren't really thinking are worried about that. They were still kind of digesting big data. A zit was called, but I think what Mike and I kind of felt was going on was that people were gonna get over the big data, Um, and the volume of data. And we're going to start worrying about the variety of the data and how to make the data cleaner and more organized. And, uh, I think I think way called that one pretty much right. Maybe >> we're a little >> bit early, but but I think now variety is the big problem >> with the other thing about your big day. Big data's oftentimes associated with Duke, which was a batch and then you sort of saw the shifter real time and spark was gonna fix all that. And so what are you seeing in terms of the trends in terms of how data is being used to drive almost near real time business decisions. >> You know, Mike and I came out really specifically back in 2007 and declared that we thought, uh, Hadoop and H D f s was going to be far less impactful than other people. >> 07 >> Yeah, Yeah. And Mike Mike actually was really aggressive and saying it was gonna be a disaster. And I think we've finally seen that actually play out of it now that the bloom is off the rose, so to speak. And so they're They're these fundamental things that big companies struggle with in terms of their data and, you know, cleaning it up and organizing it and making it, Iike want. Anybody that's worked at one of these big companies can tell you that the data that they get from most of their internal system sucks plain and simple, and so cleaning up that data, turning it into something it's an asset rather than liability is really what what tamers all about? And it's kind of our mission. We're out there to do this and it sort of pails and compare. Do you think about the amount of money that some of these companies have spent on systems like ASAP on you're like, Yeah, but all the data inside of the systems so bad and so, uh, ugly and unuseful like we're gonna fix that problem. >> So you're you're you're special sauce and machine learning. Where are you applying machine learning most most effectively when >> we apply machine learning to probably the least sexy problem on the planet. There are a lot of companies out there that use machine learning and a I t o do predictive algorithms and all kinds of cool stuff. All we do with machine learning is actually use it to clean up data and organize data. Get it ready for people to use a I I I started in the eye industry back in the late 19 eighties on, you know, really, I learned from the sky. Marvin Minsky and Mark Marvin taught me two things. First was garbage in garbage out. There's no algorithm that's worth anything unless you've got great data, and the 2nd 1 is it's always about the human in the machine working together. And I've really been working on those two same principles most of my career, and Tamer really brings both of those together. Our goal is to prepare data so that it can be used analytically inside of these companies, that it's actually high quality and useful. And the way we do that involves bringing together the machine, mostly these advanced machine learning algorithms with humans, subject matter experts inside of these companies that actually know all the ins and outs and all the intricacies of the data inside of their company. >> So say garbage in garbage out. If you don't have good training data course you're not going good ML model. How much how much upfront work is required. G. I know it was one of your customers and how much time is required to put together on ML model that can deal with 20,000,000 records like that? >> Well, you know, the amazing thing that this happened for us in the last five years, especially is that now we've got we've built enough models from scratch inside of these large global 2000 companies that very rarely do we go into a place where there we don't already have a model that's pre built. That they can use is a starting point. And I think that's the same thing that's happening in modeling in general. If you look a great companies like data robot Andi and even in in the Python community ml live that the accessibility of these modeling tools and the models themselves are actually so they're commoditized. And so most of our models and most of the projects we work on, we've already got a model. That's a starting point. We don't really have to start from scratch. >> You mentioned gonna ta I in the eighties Is that is the notion of a I Is it same as it was in the eighties and now we've just got the tooling, the horsepower, the data to take advantage of it is the concept changed? The >> math is all the same, like, you know, absolutely full stop, like there's really no new math. The two things I think that have changed our first. There's a lot more data that's available now, and, you know, uh, neural nets are a great example, right? in Marvin's things that, you know when you look at Google translate and how aggressively they used neural nets, it was the quantity of data that was available that actually made neural nets work. The second thing that that's that's changed is the cheap availability of Compute that Now the largest supercomputer in the world is available to rent by the minute. And so we've got all this data. You've got all this really cheap compute. And then third thing is what you alluded to earlier. The accessibility of all the math that now it's becoming so simple and easy to apply these math techniques, and they're becoming you know, it's It's almost to the point where the average data scientists not the advance With the average data, scientists can do a practice. Aye, aye. Techniques that 20 years ago required five PhDs. >> It's not surprising that Google, with its new neural net technology, all the search data that it has has been so successful. It's a surprise you that that Amazon with Alexa was able to compete so effectively. >> Oh, I think that I would never underestimate Amazon and their ability to, you know, build great tact. They've done some amazing work. One of my favorite Mike and I actually, one of our favorite examples in the last, uh, three years, they took their red shift system, you know, that competed with with Veronica and they they re implemented it and, you know, as a compiled system and it really runs incredibly fast. I mean, that that feat of engineering, what was truly exceptional >> to hear you say that Because it wasn't Red Shift originally Park. So yeah, that's right, Larry Ellison craps all over Red Shift because it's just open source offer that they just took and repackage. But you're saying they did some major engineering to Oh >> my gosh, yeah, It's like Mike and I both way Never. You know, we always compared par, excelled over tika, and, you know, we always knew we were better in a whole bunch of ways. But this this latest rewrite that they've done this compiled version like it's really good. >> So as a guy has been doing a eye for 30 years now, and it's really seeing it come into its own, a lot of a I project seems right now are sort of low hanging fruit is it's small scale stuff where you see a I in five years what kind of projects are going our bar company's gonna be undertaking and what kind of new applications are gonna come out of this? But >> I think we're at the very beginning of this cycle, and actually there's a lot more potential than has been realized. So I think we are in the pick the low hanging fruit kind of a thing. But some of the potential applications of A I are so much more impactful, especially as we modernize core infrastructure in the enterprise. So the enterprise is sort of living with this huge legacy burden. And we always air encouraging a tamer our customers to think of all their existing legacy systems is just dated generating machines and the faster they can get that data into a state where they can start doing state of the art A. I work on top of it, the better. And so really, you know, you gotta put the legacy burden aside and kind of draw this line in the sand so that as you really get, build their muscles on the A. I side that you can take advantage of that with all the data that they're generating every single day. >> Everything about these data repose. He's Enterprise Data Warehouse. You guys built better with MPP technology. Better data warehouses, the master data management stuff, the top down, you know, Enterprise data models, Dupin in big data, none of them really lived up to their promise, you know? Yeah, it's kind of somewhat unfair toe toe like the MPP guys because you said, Hey, we're just gonna run faster. And you did. But you didn't say you're gonna change the world and all that stuff, right? Where's e d? W? Did Do you feel like this next wave is actually gonna live up to the promise? >> I think the next phase is it's very logical. Like, you know, I know you're talking to Chris Lynch here in a minute, and you know what? They're doing it at scale and at scale and tamer. These companies are all in the same general area. That's kind of related to how do you take all this data and actually prepare it and turn it into something that's consumable really quickly and easily for all of these new data consumers in the enterprise and like so that that's the next logical phase in this process. Now, will this phase be the one that finally sort of meets the high expectations that were set 2030 years ago with enterprise data warehousing? I don't know, but we're certainly getting closer >> to I kind of hoped knockers, and we'll have less to do any other cool stuff that you see out there. That was a technology just >> I'm huge. I'm fanatical right now about health care. I think that the opportunity for health care to be transformed with technology is, you know, almost makes everything else look like chump change. What aspect of health care? Well, I think that the most obvious thing is that now, with the consumer sort of in the driver seat in healthcare, that technology companies that come in and provide consumer driven solutions that meet the needs of patients, regardless of how dysfunctional the health care system is, that's killer stuff. We had a great company here in Boston called Pill Pack was a great example of that where they just build something better for consumers, and it was so popular and so, you know, broadly adopted again again. Eventually, Amazon bought it for $1,000,000,000. But those kinds of things and health care Pill pack is just the beginning. There's lots and lots of those kinds of opportunities. >> Well, it's right. Healthcare's ripe for disruption on, and it hasn't been hit with the digital destruction. And neither is financialservices. Really? Certainly, defenses has not yet another. They're high risk industry, so Absolutely takes longer. Well, Andy, thanks so much for making the time. You know, You gotta run. Yeah. Yeah. Thank you. All right, keep it right. Everybody move back with our next guest right after this short break. You're watching the Cube from M I T c B O Q. Right back.

>> From the SiliconANGLE Media Office in Boston, Massachusetts, it's The Cube! Now, here's your host, Dave Velante. >> We're back with Patrick Osborne. All right Patrick, we've been talking about how customers want to be data-driven, they're doing digital transformation, they want to put data at the core of the enterprise. All sounds good. What's your strategy as HPE in terms of helping them get there? >> Yeah so, for our customers, this is a common theme, right. Some feel that they're going to be disrupted, they've been disrupted, right, and one of the key threads that runs through that is that they want to get more AI driven, right, so they want to use analytics as a way to provide new services around their products, get these services out faster, be able to use all that data they have in their enterprise. So for us, it's being able to have that conversation of whether the data sits out in the edge, right, you guys are very familiar with our Edge strategy, using Edgeline and Aruba, our core infrastructure in the data center, which we've had-- for a long history of helping customers with that, and then more recently around Hybrid Cloud, right, so most of the products, services, experiences we have there have Hybrid Cloud built in from the ground up. So for us, all those conversations have to do with data. >> So you recently made an acquisition of BlueData. >> Correct. >> What was that all about? Was that your AI play? Was it a software-as-a-service play? Explain that. >> Yeah, certainly a little bit of both. BlueData's a fantastic platform and it allows you to virtualize, containerize the application, so we know that in the market, you've got mode one applications, you've got mode two applications, a lot of mode one apps, you know, business applications, mission critical applications, have been virtualized. But what we also see is that a lot of the new product development is around these mode two applications that are using things like big data, whether it's a dupe in H-D-F-S, fast data - some of the streaming services - and now you're doing things around A-I inferencing, modeling, all using essentially containers as a way to do that, fuel that application development. So when we saw BlueData, it's essentially a platform to be able to virtualize all of these container-based applications. And as customers, big data and analytics and A-I platforms and their pipeline gets bigger and more complicated, it allows us to, A) manage that, increase their time to value, unlock a lot of the resources on the data scientists side, right, who have the responsibility of managing all of those applications, and it's a really great platform, great people, right, so they have a team of data scientists to be able to help customers implement this, not only within the product but within their own enterprise. And then we've got some really, really big logos that we're going to build off of for the BlueData ecosystem. >> So things are moving very fast. You've got all this data, you're applying machine intelligence and quickly moving from a world that was all batch to one that's real time, and we blinked and real time flew by. Now you've got this machine intelligence world where systems are acting, they're sensing, they're hearing, they're smelling... >> Yup. >> And so, is that what you're seeing with customers? Are they trying to build these sort of new systems that will act on their behalf? >> Absolutely. We see it on our own. If you take a look at some of our strategy, as HPE, especially within our storage and big data division, one of the big things that we're doing is introducing all of our products with the capability of A-I ops, right. And so all of our products that go out the door, using platforms like Infosite, will have this A-I ops capability to, not only just start with support automation, predictive analytics, and now you've got predictive A-I driving the actual management experience of these products. And it lets our customers ultimately unlock those resources that were doing mundane, repeatable tasks to focus on where they're going to add value. >> So I got to ask you, you guys do-- obviously a lot of your revenue comes from indirect channels. So you've seen the cloud, the cloud is not about selling boxes anymore, now you're seeing all this machine intelligence and automation. What does all this mean for partners? Where's the opportunity for those guys? >> Yeah so, I would say that when we go and make an acquisition like Blue Data, it's a great, like we said before, it's a great product, it's a good platform, right, they've got great engineers and great people within the organization and certainly some big logos. The reason why they got those logos was partly based on the product, but it's also a very services led methodology. So for-- I'd say for our partner community, being able to do discovery services, to understand what they're requirements are, a lot of folks that use BlueData and these type of platforms are builders. They're building a platform that has services on it for their end user customers. So being able to gather those requirements, do implementation, certainly be able to take a lot of this dynamic application ecosystem that is either very new, it's nascent, when you take a look at A-I or it's even in the open source arena, being able to de-risk that for the customers, from a services perspective, is a huge opportunity. >> Okay, great, so that's exciting because it's new frontier for those folks. So think about HPE, the tech that you guys have, the partner opportunity that you just described, how are you going to change the life of a data scientist? And maybe we could add in some other personas as well. >> Yeah, so, as a lot of our customers and partners certainly know, data scientists don't grow on trees, right, and they're very important folks within these large organizations, right, so you want to unlock their capabilities. So for us at the end of the day, we're trying to have a platform and as a service experience around A-I that unlocks the value of these data scientists. So for example, if I have a production environment or a U-A-T or a test dev environment, I can very quickly spin up your entire toolchain as a data scientist, right, so your toolchain, your models, your H-D-F-S data lakes, you can tap into existing data lakes, all of my streaming data, Kafka, Spark, all this stuff, very dynamic ecosystem, complex application dependencies. What I can do is I can sandbox that, I can test it, I can iterate, and I can very, very quickly provide that type of environment for your developers and your data scientists (snaps) just like that. >> So, in addition to the data scientist, is the chief data officer somebody that you guys are interacting with? There's also the application developer. Are you trying to sort of effect this collaboration amongst those different roles and personas? >> Yeah I think one of the greatest things for the partners and we've seen this at HPE too, is that you're going to be calling on new buyer personas. Right, so in the case of infrastructure, working a lot with enterprise architects, data center manager, infrastructure manager, C-I-O. In the case of BlueData and some of these A-I and analytics projects, right, you're at the front of the budget cycle, right, so you're talking to line of business, application developers, data scientists, analytics team, and now the rise of the C-D-O, the chief data officer. So you not only get to establish value with the infrastructure team, who are going to have to support this, right, you're going to go make some new friends and be able to get on the front of the budget cycle with a whole new set of buyer personas, and I think that's very exciting for partners. >> So, we talk a lot about A-I and, sort of this machine learning environment, machine intelligence. Software-defined is a hot topic. It's kind of a buzzword but it has meaning. What does it mean to you? Where does it fit in this whole equation? >> It's very adjacent to the big data and A-I analytics conversation. I think that what we see in software-defined, it's heavy on scale, right, so now that you're into petabytes, tens of petabytes, hundreds of petabytes, scaling, scaling, scaling, you need some new architectures to be able to do that cost-effectively. And you think about automated cars for example. They're-- each car is spinning off terabytes of data a day, so think about how am I going to store that, it's a monumental task. You got scale on your mind, you also have automation, right, so not only the scale of being able to store that effectively from a price-point, to be able to automate that. So you want to keep your-- the folks who are managing that infrastructure, they're going to have to increase the amount of systems, capacity under management, and the only way you can achieve that is through automation. And so, we see some themes around that and software-defined is really, kind of stepping in in that angle where you've got N-V-M-E, S-S-Ds, can saturate-- two N-V-M-E can saturate a C-P-U at this point, right, and now you're moving to hundred gig fabrics, so this rack-scale architecture that you can provide and paint on different software-defined personalities onto it is something that customers are definitely leaning in towards right now. >> And what you've been describing-- you mentioned autonomous vehicles-- data's at the edge, it's at the core, it's everywhere, and so, easier to bring, maybe, let's call it, ten meg of code to a petabyte of data than the reverse. >> Yeah, and what we see too is customers want to-- they want to dip their toe in this water, right, starting with very large enterprises, and we're able to, as HPE, bring a vetted ecosystem, whether from a workload perspective, 'cause we always talk about follow the workload, in software-defined, if you need something like scale-out file for A-I workloads, or you need scale-out file for more of a high performance, capacity-driven architecture, you're looking for object storage, you're looking for hyper-converged secondary, right, we bring an ecosystem of partners running on our infrastructure that's scalable, automated, and customers can feel confident in. >> Awesome. Well thank you Patrick, love the story. >> Yeah, thank you so much. >> You're welcome. (upbeat music)

>> Pomp YouTubers. Welcome to another cube conversation from ours, the Cube Studios in Palo Alto, California In this conversation, we're going to build upon some other recent conversations we've had which explores this increasingly important relationship between Senate conductor, memory or flash and new classes of applications that are really making life easier and changing the way that human beings in Iraq with each other, both in business as wells and consumer domains. And to explore these crucial issues. We've got two great guests. Brian Kumagai is the director of business development at Kashima Memory America. Scott Beekman is the director of managed flashes to Sheba Memory America's Well, gentlemen, welcome to the Cube. And yet so I'm gonna give you my perspective. I think this is pretty broadly held generally is that as a technology gets more broadly adopted, people get experience with. And as designers, developers, users gain experience with technology, they start to apply their own creativity, and it starts to morph and change and pull and stretch of technology and a lot of different directions. And that leads to increased specialization. That's happening in the flash work I got there, right? Scott? >> Yes, you know the great thing about flashes. Just how you because this it is and how widely it's used. And if you think about any electronic device it needs, it needs a brain processor. Needs to remember what it's doing. Memory and memories, What? What we do. And so we see it used in, you know, so many applications from smartphones, tablets, printers, laptops, you know, streaming media devices. And, uh and so you know, that that technology we see used, for example, like human see memory. It's a low power memory is designed for, for, like, smartphones that aren't plugged in. And, uh, and so when you see smartphones, one point five billion smartphones, it drives that technology and then migrates into all kinds of other applications is well, and then we see new technologies that come and replace that like U F s Universal flash storage. It's intended to be the high performance replacement. Mm. See, And so now that's also mag raiding its way through smartphones and all these other applications. >> So there's a lot of new applications that are requiring new classes of flash. But there's still a fair amount of, AH applications that require traditional flash technology. These air not coming in squashing old flash or traditional flasher other pipe types of parts, but amplifying their use in specialized ways. Brian Possible. But about >> that. So it's interesting that these days no one's really talks about the original in the hand flash that was ever developed back in nineteen eighty seven and that was based on a single of a cell, or SLC technology, which today still offers the highest reliability and fastest before me. Anand device available in the market today. And because of that, designers have found this type of memory to work well for storing boot code and some levels of operating system code. And these are in a wide variety of devices, both and consumer and industrial segments. Anything from set top boxes connecting streaming video. You've got your printers. You, Aye aye. Speakers. Just a numerous breath of product. I >> gotta also believe a lot of AA lot of i o t lot of industrial edge devices they're goingto feature. A lot of these kinds of parts may be disconnected, maybe connected beneath low power, very high speed, low cost, highly reliable. >> That's correct. And because these particular devices air still offered in lower densities. It does offer a very cost effective solutions for designers today. >> Okay, well, let's start with one of the applications. That is very, very popular. Press. When automated driving autonomous funerals on the work, it's it's There's a Thomas vehicles, but there's autonomous robots more broadly, let's start with Autonomous vehicle Scott. What types of flash based technologies are ending up in cars and why? >> Okay, so we've seen a lot of changes within vehicles over the last few years. You know, increasing storage requirements for, like, infotainment systems. You know, more sophisticated navigations of waste recognition. Ah, no instrument clusters more informed of digital displays and then ate ass features. You know, collision avoidance things like like that and all that's driving maur Maureen memory storage and faster performance memory. And in particular, what we've seen for automotive is it's basically adopting the type of memory that you have in your smartphone. So smart phones have a long time have used this political this. Mm. See a memory. And that has made you made my greatest weigh in automotive. And now a CZ smartphones have transition been transitioning do you? A fast, in fact, sushi. But it was the first introduced samples of U F U F S in early two thousand thirteen, and then you started to see it in smartphones in two thousand fifteen. Well, that's now migrating in tow. Automotive as well. They need to take advantage of the higher performance, the higher densities and so and so to Chiba. Zero. We're supporting, you know this, this growth within automotive as well. >> But automotive is a is a market on DH. Again, I think it's a great distinction you made. It's just not autonomous. It's thie even when the human being is still driving. It's the class of services that provided to that driver, both from an entertainment, say and and safety and overall experience standpoint. Is driving a very aggressively forward that volume in and the ability to demonstrate what you can do in a car is having a significant implications on the other classes of applications that we think for some of these high end parts. How is the experience that were incorporating into an automotive application or set of applications starting to impact? How others envision how their consumer products can be made better, Better experience safer, etcetera in other domains >> uh, well, yeah, I mean, we see that all kinds of applications are taking advantage of the these technologies. Like like even air via air, for example. Again, it's all it's all taking advantage of this idea of needing higher, larger density of storage at a lower cost with low power, good performance and all these applications air taking an advantage of that, including automotive. And if you look it automotive, you know, it's it's not just within the vehicle. Actually, it's estimated, you know, projected that autonomous vehicles we need, like one two, three terabytes of storage within the within the vehicle. But then all the data that's collected from cameras and sensors need to be uploaded to the cloud and all that needs to be stored. So that's driving storage to data centers because you basically need to learn from that to improve the software. For the for, Ah, you know, for the time being, Yeah, exactly. So all these things are driving more and more storage, both with within the devices themselves, like a car is like a device, but also in the data centers as >> well. So if we can't Brian take us through some of the decisions that designer has to go through to start to marry some of these different memory technologies together to create, whether it's an autonomous car, perhaps something a little bit more mundane. This might be a computing device. What is the designer? How does is I think about how these fit together to serve the needs of the user in the application. >> Um, I think >> these days, you know a lot of new products. They require a lot of features and capabilities. So I think a lot of input or thought is going into the the memory size itself. You know, I think software guys are always wanting to have more storage, to write more code, that sort of thing. So I think that is one lt's step that they think about the size of the package and then cost is always a factor as well. So you know nothing about the Sheba's. We do offer a broad product breath that producing all types of I'm not about to memory that'll fit everyone's needs. >> So give us some examples of what that product looks like and how it maps to some of these animation needs. >> So we like unmentioned we offered the lower density SLC man that's thought that a one gigabit density and then it max about maximum thirty to get bit dying. And as you get into more multi level cell or triple level cell or cue Elsie type devices, you're been able to use memory that's up to a single diet could be upto one point three three terror bits. So there's such a huge range of memory devices available >> today. And so if we think about where the memories devices are today and we're applications or pulling us, what kind of stuff is on the horizon scarred? >> Well, one is just more and more storage for smartphones. We want more, you know, two fifty six gigabyte fight told Gigabyte, one terabyte and and in particular for a lot of these mobile devices. You know, like convention You f s is really where things were going and continuing to advance that technology continuing to increase their performance, continuing to increase the densities. And so, you know, and that enables a lot of applications that we actually a hardman vision at this point. And when we know autonomous vehicles are important, I'm really excited about that because I'm in need that when I'm ninety, you know can drive anywhere. I want everyone to go, but and then I I you know where I's going, so it's a lot of things. So you know, we have some idea now, but there's things that we can't envision, and this technology enables that and enables other people who can see how do I take advantage of that? The faster performance, the greater density is a lower cost forbid. >> So if we think about, uh, General Computer, especially some of these out cases were talking about where the customer experience is a function of how fast a device starts up or how fast the service starts up, or how rich the service could be in terms of different classes of input, voice or visual or whatever else might be. And we think about these data centers where the closed loop between the processing and the interesting of some of these models and how it affects what that transactions going to do. We're tournament lower late. See, that's driving a lot of designers to think about how they can start moving certain classes of function closer to the memory, both from a security standpoint from an error correction standpoint, talk to us a little bit about the direction that to Sheba imagines, Oh, the differential ability of future memories relative Well, memories today, relative to where they've been, how what kinds of features and functions are being added to some of these parts to make them that much more robust in some of these application. >> I think a >> CZ you meant mentioned the robustness. So the memory itself. And I think that actually some current memory devices will allow you to actually identify the number of bits that are being corrected. And then that kind of gives an indication the integrity or the reliability of a particular block of memory. And I think as users are able to get early detection of this, they could do things to move the data around and then make their overall storage more reliable. >> Things got way. Yeah. I mean, we continue, Teo, figure out how to cram orbits within a given space. You know, moving from S l see them. I'll see the teal seemed. And on cue, Elsie. That's all enabling that Teo enabled greater storage. Lower cost on DH, then, Aziz, we just talked from the beginning. Just that there's all kinds of differentiation in terms of of flash products that are really tailored for certain things. Someone focus for really high performance and give up some power. And others you need a certain balance of that. Were, you know, a mobile device, you know, handheld device. You're not going to play. You know, You give up some performance for less power. And so there's a whole spectrum. It's someone you know. Endurance is incredibly important. So we have a full breast of products that address all those particular needs. >> The designer. It's just whatever I need. I could come to you. >> Yeah, that's right. So she betrays them. The full breath of products available. >> All right, gentlemen. Thank you very much for being on the Cube. Brian Coma Guy, director of business development to Sheba Memory America. Scott Beekman, director of Manage Flash. Achieve a memory. America again. Thanks very much for being on the Q. Thank you. Thank you. And this closes this cube conversation on Peter Burress until next time. Thank you very much for watching

>>so erin you're a technique for a Cloudera, you're a whiz kid from Brown, you have, how many Brown people are engineers here at Cloudera >>as of monday, we have five full timers and two interns at the moment and we're trying to hire more all the time. >>Mhm. So how many interns? >>Uh two interns from Brown this this summer? A few more from other schools? Cool, >>I'm john furry with silicon angle dot com. Silicon angle dot tv. We're here in the cloud era office in my little mini studio hasn't been built out yet, It was studio, we had to break it down for a doctor, ralph kimball, not richard Kimble from uh I called him on twitter but coupon um but uh the data warehouse guru was in here um and you guys are attracting a lot of talent erin so tell us a little bit about, you know, how Claudia is making it happen and what's the big deal here, people smart here, it's mature, it's not the first time around this company, this company has some some senior execs and there's been a lot, a lot of people uh in the market who have been talking about uh you know, a lot of first time entrepreneurs doing their startups and I've been hearing for some folks in in the, in the trenches that there's been a frustration and start ups out there, that there's a lot of first time entrepreneurs and everyone wants to be the next twitter and there's some kind of companies that are straddling failure out there? And and I was having that conversation with someone just today and I said, they said, what's it like Cloudera and I said, uh, this is not the first time crew here in Cloudera. So, uh, share with the folks out there, what you're seeing for Cloudera and the management team. >>Sure. Well, one of the most attractive parts about working Cloudera for me, one of the reasons I, I really came here was have been incredibly experienced management team, Mike Charles, they've all there at the top of this Oregon, they have all done this before they founded startups, Growing startups, old startups and uh, especially in contrast with my, the place where I worked previously. Uh, the amount of experience here is just tremendous. You see them not making mistakes where I'm sure others would. >>And I mean, Mike Olson is veteran. I mean he's been, he's an adviser to start ups. I know he's been in some investors. Amer was obviously PhD candidates bolted out the startup, sold it to yahoo, worked at, yahoo, came back finish his PhD at stanford under Mendel over there in the PhD program over this, we banged in a speech. He came back entrepreneur residents, Excel partners. Now it does Cloudera. Um, when did you join the company and just take us through who you are and when you join Cloudera, I want your background. >>Sure. So I, I joined a little over a year ago is about 30 people at the time. Uh, I came from a small start up of the music online music store in new york city um uh, which doesn't really exist all that much anymore. Um but you know, I I sort of followed my other colleagues from Brown who worked here um was really sold by the management team and also by the tremendous market opportunity that that Hadoop has right now. Uh Cloudera was very much the first commercial player there um which is really a unique experience and I think you've covered this pretty well before. I think we all around here believe that uh the markets only growing. Um and we're going to see the market and the big data market in general get bigger and bigger in the next few years. >>So, so obviously computer science is all the rage and and I'm particularly proud of hangout, we've had conversations in the hallway while you're tweeting about this and that. Um, but you know, silicon angles home is here, we've had, I've had a chance to watch you and the other guys here grow from, you know, from your other office was a san mateo or san Bruno somewhere in there. Like >>uh it was originally in burlingame, then we relocate the headquarters Palo Alto and now we have a satellite up in san Francisco. >>So you guys bolted out. You know, you have a full on blow in san Francisco office. So um there was a big busting at the seams here in Palo Alto people commuting down uh even building their burning man. Uh >>Oh yeah sure >>skits here and they're constructing their their homes here, but burning man, so we're doing that in san Francisco, what's the vibe like in san Francisco, tell us what's going on >>in san Francisco, san Francisco is great. It's, I'm I live in san Francisco as do a lot of us. About half the engineering team works up there now. Um you know we're running out of space there certainly. Um and you're already, oh yeah, oh yeah, we're hiring as fast as we absolutely can. Um so definitely not space to build the burning man huts there like like there is down, down in Palo Alto but it's great up there. >>What are you working on right now for project insurance? The computer science is one of the hot topics we've been covering on silicon angle, taking more of a social angle, social media has uh you know, moves from this pr kind of, you know, check in facebook fan page to hype to kind of a real deal social marketplace where you know data, social data, gestural data, mobile data geo data data is the center of the value proposition. So you live that every day. So talk about your view on the computer science landscape around data and why it's such a big deal. >>Oh sure. Uh I think data is sort of one of those uh fundamental uh things that can be uh mind for value across every industry, there's there's no industry out there that can't benefit from better understanding what their customers are doing, what their competitors are doing etcetera. And that's sort of the the unique value proposition of, you know, stuff like Hadoop. Um truly we we see interest from every sector that exists, which is great as for what the project that I'm specifically working on right now, I primarily work on H. D. F. S, which is the Hadoop distributed file system underlies pretty much all the other um projects in the Hadoop ecosystem. Uh and I'm particularly working with uh other colleagues at Cloudera and at other companies, yahoo and facebook on high availability for H. D. F. S, which has been um in some deployments is a serious concern. Hadoop is primarily a batch processing system, so it's less of a concern than in others. Um but when you start talking about running H base, which needs to be up all the time serving live traffic than having highly available H DFS is uh necessity and we're looking forward to delivering that >>talk about the criticism that H. D. F. S has been having. Um Well, I wouldn't say criticism. I mean, it's been a great, great product that produced the HDs, a core parts of how do you guys been contributing to the standard of Apache, that's no secret to the folks out there, that cloud area leads that effort. Um but there's new companies out there kind of trying a new approach and they're saying they're doing it better, what are they saying in terms and what's really happening? So, you know, there's some argument like, oh, we can do it better. And what's the what, why are they doing it, that was just to make money do a new venture, or is that, what's your opinion on that? Yeah, >>sure. I mean, I think it's natural to to want to go after uh parts of the core Hadoop system and say, you know, Hadoop is a great ecosystem, but what if we just swapped out this part or swapped out that part, couldn't couldn't we get some some really easy gains. Um and you know, sometimes that will be true. I have confidence that that that just will not simply not be true in in the very near future. One of the great benefits about Apache, Hadoop being open source is that we have a huge worldwide network of developers working at some of the best engineering organizations in the world who are all collaborating on this stuff. Um and, you know, I firmly believe that the collaborative open source process produces the best software and that's that's what Hadoop is at its very core. >>What about the arguments are saying that, oh, I need to commercialize it differently for my installed base bolt on a little proprietary extensions? Um That's legitimate argument. TMC might take that approach or um you know, map are I was trying to trying to rewrite uh H. T. F. >>S. To me, is >>it legitimate? I mean is there fighting going on in the standards? Maybe that's a political question you might want to answer. But give me a shot. >>I mean the Hadoop uh isn't there's no open standard for Hadoop. You can't say like this is uh this is like do compatible or anything like that. But you know what you can say is like this is Apache Hadoop. Uh And so in that sense there's no there's no fighting to be had there. Um Yeah, >>so yeah. Who um struggling as a company. But you know, there's a strong head Duke D. N. A. At yahoo, certainly, I talked with the the founder of the startup. Horton works just announced today that they have a new board member. He's the guy who's the Ceo of Horton works and now on bluster, I'm sorry, cluster announced they have um rob from benchmark on the board. Uh He's the Ceo of Horton works and and one of my not criticisms but points about Horton was this guy's an engineer, never run a company before. He's no Mike Olson. Okay, so you know, Michaelson has a long experience. So this guy comes into running and he's obviously in in open source, is that good for Yahoo and open sources. He they say they're going to continue to invest in Hadoop? They clearly are are still using a lot of Hadoop certainly. Um how is that changing Apache, is that causing more um consolidation, is that causing more energy? What's your view on the whole Horton works? Think >>um you know, yahoo is uh has been and will continue to be a huge contributor. Hadoop, they uh I can't say for sure, but I feel pretty confident that they have more data under management under Hadoop than anyone else in the world and there's no question in my mind that they'll continue to invest huge amounts of both key way effort and engineering effort and uh all of the things that Hadoop needs to to advance. Um I'm sure that Horton works will continue to work very closely with with yahoo. Um And you know, we're excited to see um more and more contributors to to Hadoop um both from Horton works and from yahoo proper. >>Cool, Well, I just want to clarify for the folks out there who don't understand what this whole yahoo thing is, It was not a spin out, these were key Hadoop core guys who left the company to form a startup of which yahoo financed with benchmark capital. So, yahoo is clearly and told me and reaffirm that with me that they are clearly investing more in Hadoop internally as well. So there's more people inside, yahoo that work on Hadoop than they are in the entire Horton's work company. So that's very clear. So just to clear that up out there. Um erin. so you're you're a young gun, right? You're a young whiz like Todd madam on here, explain to the folks out there um a little bit older maybe guys in their thirties or C IOS a lot of people are doing, you know, they're kicking the tires on big data, they're hearing about real time analytics, they're hearing about benefits have never heard before. Uh Dave a lot and I on the cube talk about, you know, the transformations that are going on, you're seeing AMC getting into big data, everyone's transforming at the enterprise level and service provider. What explains the folks why Hadoop is so important. Why is that? Do if not the fastest or one of the fastest growing projects in Apache ever? Sure. Even faster than the web server project, which is one of the better, >>better bigger ones. >>Why is the dupes and explain to them what it is? Well, you know, >>it's been it's pretty well covered that there's been an explosion of data that more data is produced every every year over and over. We talk about exabytes which is a quantity of data that is so large that pretty much no one can really theoretically comprehend it. Um and more and more uh organizations want to store and process and learn from, you know, get insights from that data um in addition to just the explosion of data um you know that there is simply more data, organizations are less willing to discard data. One of the beauties of Hadoop is truly that it's so very inexpensive per terabyte to store data that you don't have to think up front about what you want to store, what you want to discard, store it all and figure out later what is the most useful bits we call that sort of schema on read. Um as opposed to, you know, figuring out the schema a priority. Um and that is a very powerful shift in dynamics of data storage in general. And I think that's very attractive to all sorts of organizations. >>Your, I'll see a Brown graduate and you have some interns from Brown to Brown um, Premier computer science program almost as good as when I went to school at Northeastern University. >>Um >>you know, the unsung heroes of computer science only kidding Brown's great program, but you know, cutting edge computer science areas known as obviously leading in a lot of the computer science areas do in general is known that you gotta be pretty savvy to be either masters level PhD to kind of play in this area? Not a lot of adoption, what I call the grassroots developers. What's your vision and how do you see the computer science, younger generation, even younger than you kind of growing up into this because those tools aren't yet developed. You still got to be, you're pretty strong from a computer science perspective and also explained to the folks who aren't necessarily at the browns of the world or getting into computer science, what about, what is that this revolution about and where is it going? What are some of the things you see happening around the corner that that might not be obvious. >>Sure there's a few questions there. Um part of it is how do people coming out of college get into this thing, It's not uh taught all that much in school, How do how do you sort of make the leap from uh the standard computer science curriculum into this sort of thing? And um you know, part of it is that really we're seeing more and more schools offering distributed computing classes or they have grids available um to to do this stuff there there is some research coming out of Brown actually and lots of other schools about Hadoop proper in the behavior of Hadoop under failure scenarios, that sort of stuff, which is very interesting. Google uh actually has classes that they teach, I believe in conjunction with the University of Washington um where they teach undergraduates and your master's level, graduate students about mass produced and distributed computing and they actually use Hadoop to do it because it is the architecture of Hadoop is modeled after um >>uh >>google's internal infrastructure. Um So you know that that's that's one way we're seeing more and more people who are just coming out of college who have distributed systems uh knowledge like this? Um Another question? the other part of the question you asked is how does um how does the ordinary developer get into this stuff? And the answer is we're working hard, you know, we and others in the hindu community are working hard on making it, making her do just much easier to consume. We released, you cover this fair bit, the ECM Express project that lets you install Hadoop with just minimal effort as close to 11 click as possible. Um and there's lots of um sort of layers built on top of Hadoop to make it more easily consumed by developers Hive uh sort of sequel like interface on top of mass produce. And Pig has its own DSL for programming against mass produce. Um so you don't have to write heart, you don't have to write straight map produced code, anything like that. Uh and it's getting easier for operators every day. >>Well, I mean, evolution was, I mean, you guys actually working on that cloud era. Um what about what about some of the abstractions? You're seeing those big the Rage is, you know, look back a year ago VM World coming up and uh little plugs looking angle dot tv will be broadcasting live and at VM World. Um you know, he has been on the Q XV m where um Spring Source was a big announcement that they made. Um, Haruka brought by Salesforce Cloud Software frameworks are big, what does that look like and how does it relate to do and the ecosystem around Hadoop where, you know, the rage is the software frameworks and networks kind of collide and you got the you got the kind of the intersection of, you know, software frameworks and networks obviously, you know, in the big players, we talk about E M C. And these guys, it's clear that they realize that software is going to be their key differentiator. So it's got to get to a framework stand, what is Hadoop and Apache talking about this kind of uh, evolution for for Hadoop. >>Sure. Well, you know, I think we're seeing very much the commoditization of hardware. Um, you just can't buy bigger and bigger computers anymore. They just don't exist. So you're going to need something that can take a lot of little computers and make it look like one big computer. And that's what Hadoop is especially good at. Um we talk about scaling out instead of scaling up, you can just buy more relatively inexpensive computers. Uh and that's great. And sort of the beauty of Hadoop, um, is that it will grow linearly as your data set as your um, your your scale, your traffic, whatever grows. Um and you don't have to have this exponential price increase of buying bigger and bigger computers, You can just buy more. Um and that that's sort of the beauty of it is a software framework that if you write against it. Um you don't have to think about the scaling anymore. It will do that for you. >>Okay. The question for you, it's gonna kind of a weird question but try to tackle it. You're at a party having a few cocktails, having a few beers with your buddies and your buddies who works at a big enterprise says man we've got all this legacy structured data systems, I need to implement some big data strategy, all this stuff. What do I do? >>Sure, sure. Um Not the question I thought you were going to ask me that you >>were a g rated program here. >>Okay. I thought you were gonna ask me, how do I explain what I do to you know people that we'll get to that next. Okay. Um Yeah, I mean I would say that the first thing to do is to implement a start, start small, implement a proof of concept, get a subset of the data that you would like to analyze, put it, put Hadoop on a few machines, four or five, something like that and start writing some hive queries, start writing some some pig scripts and I think you'll you know pretty quickly and easily see the value that you can get out of it and you can do so with the knowledge that when you do want to operate over your entire data set, you will absolutely be able to trivially scale to that size. >>Okay. So now the question that I want to ask is that you're at a party and I want to say, what do you >>do? You usually tell people in my hedge fund manager? No but seriously um I I tell people I work on distributed supercomputers. Software for distributed supercomputers and that people have some idea what distributed means and supercomputers and they figure that out. >>So final question for I know you gotta go get back to programming uh some code here. Um what's the future of Hadoop in the sense of from a developer standpoint? I was having a conversation with a developer who's a big data jockey and talking about Miss kelly gets anything and get his hands on G. O. Data, text data because the data data junkie and he says I just don't know what to build. Um What are some of the enabling apps that you may see out there and or you have just conceiving just brainstorming out there, what's possible with with data, can you envision the next five years, what are you gonna see evolve and what some of the coolest things you've seen that might that are happening right now. >>Sure. Sure. I mean I think you're going to see uh just the front ends to these things getting just easier and easier and easier to interact with and at some point you won't even know that you're interacting with a Hadoop cluster that will be the engine underneath the hood but you know, you'll you'll be uh from your perspective you'll be driving a Ferrari and by that I mean you know, standard B. I tool, standard sequel query language. Um we'll all be implemented on top of this stuff and you know from that perspective you could implement, you know, really anything you want. Um We're seeing a lot of great work coming out of just identifying trends amongst masses of data that you know, if you tried to analyze it with any other tool, you'd either have to distill it down so far that you would you would question your results or that you could only run the very simplest sort of queries over um and not really get those like powerful deep insights, those sort of correlative insights um that we're seeing people do. So I think you'll see, you'll continue to see uh great recommendations systems coming out of this stuff. You'll see um root cause analysis, you'll see great work coming out of the advertising industry um to you know to really say which ad was responsible for this purchase. Was it really the last ad they clicked on or was it the ad they saw five weeks ago they put the thought in mind that sort of correlative analysis is being empowered by big data systems like a dupe. >>Well I'm bullish on big data, I think people I think it's gonna be even bigger than I think you're gonna have some kids come out of college and say I could use big data to create a differentiation and build an airline based on one differentiation. These are cool new ways and, and uh, data we've never seen before. So Aaron, uh, thanks for coming >>on the issue >>um, your inside Palo Alto Studio and we're going to.