>> We're back at the Seaport in Boston. Dave Vellante and Paul Gill. You're watching The Cubes coverage of Red Hat Summit, 2022. A little different this year, a smaller venue. Maybe a thousand people. Love the keynotes, compressed. Big virtual audience. So we're happy to be coming to you live, face to face. It's been a while since we've had these, for a lot of folks, this is their first in person event. You know, it's kind of weird getting used to that, but I think in the next few months, it's going to become the new, sort of quasi abnormal. Francis Chow is here. He's the Vice President and GM of In-Vehicle OS and Edge at Red Hat. Francis, welcome. That's the most interesting title we've had all week. So thanks for coming here. >> Thank you, Dave. Thank you, Paul, for having me here. >> So The Edge, I mean The Edge is, we heard about the International Space Station. We heard about ski boots, of course In-Vehicle. What's the Edge to you? >> Well, to me Edge actually could mean many different things, right? The way we look at Edge is, there is the traditional enterprise Edge, where this is the second tier, third tier data centers that this extension from your core, the network and your centralized data center, right to remote locations. And then there are like Telco Edge, right? where we know about the 5G network, right Where you deploy bay stations and which would have a different size of requirements right. Of traditional enterprise edge networks. And then there are Operational Edge where we see the line of business operating on those locations, right? Things like manufacturing for oil rigs, retail store, right? So very wide variety of Edge that are doing OT type of technology, and then last but not least there is the customer on or kind of device edge where we now putting things into things like cars, as you said, like ski booth, and have that interaction with the end consumers. >> Is this why? I mean, there's a lot of excitement at Red. I could tell among the Red hat people about this GM deal here is this why that's so exciting to them? This really encompasses sort of all of those variants of the edge in automotive, in automobile experience. Doesn't it? >> I think why this is exciting to the industry and also to us is that if you look at traditionally how automotive has designed, right the way the architect vehicle today has many subsystems, they are all purpose viewed, very tight cut, coupled with hardware and software. And it's very difficult to reuse, right? So their cause of development is high. The time to develop is long and adding to that there is a lengthy safety certification process which also kind of make it hard. Because every time you make a change in the system you have to re-certify it again. >> Right. >> And typically it takes about six to 12 months to do so. Every time you make a change. So very lengthy passes, which is important because we want to ensure occupants are safe in a vehicle. Now what we bring to the table, which I think is super exciting is we bring this platform approach. Now you can use a consistent platform that is open and you can actually now run multiple doming applications on the same platform which means automakers can reuse components across model years and brands. That will lower the development cost. Now I think one of the key things that we bring to the table is that we introduce a new safety certification approach called Continuous Safety Certification. We actually announced that in our summit last year with the intent, "Hey, we're going to deliver this functional certified Linux platform" Which is the first four Linux. And the way we do it is we work with our partner Excedr to try to define that approach. And at the high level the idea really is to automate that certification process just like how we automate software development. Right, we are adding that monitoring capabilities with functional safety related artifacts in our CI three pipeline. And we are able to aim to cut back that kind of certification time to a fraction of what is needed today. So what we can do, I think with this collaboration with GM, is help them get faster time to market, and then lower development costs. Now, adding to that, if you think about a modern Linux platform, you can update it over the air, right? This is the capability that we are working with GM as well. Now what customers can expect now, right for future vehicle is there will be updates on apps and services, just like your cell phone, right. Which makes your car more capable over time and more relevant for the long term. >> So there's some assumptions you're making at the edge. First of all, you described a spectrum retail store which you know, to me, okay, it's Edge, but you can take an X-86 box or a hyper converged infrastructure throw it in there. And there's some opportunities to do some stuff in real time, but it's kind of an extension natural extension of IT. Whereas in vehicle you got to make some assumptions spotty connectivity to do software download and you can't do truck rolls at the far edge, right? None of that is okay, and so there's some assumptions there and as you say, your role is to compress the time to market, but also deliver a better consumer >> Absolutely. >> Experience, so what can we expect? You started to talk about the future of in vehicle, you know, or EVs, if you will, what should we expect as consumers? You, you're saying over the year software we're seeing that with some of the EV makers, for sure. But what's the future look like? >> I think what consumers can expect is really over a period of time, right? A similar experience, like what you have with your mobile mobile device, right? If you look back 15, 20 years, right? You buy a phone, right? That's the feature that you have with your phone, right? No update, it is what it is right, for the lifetime of the product which is pretty much what you have now, if you buy a vehicle, right. You have those features capabilities and you allow it for the lifetime of the vehicle. >> Sometimes you have to drive in for a maintenance, a service to get a software update. >> We can talk about that too right. But as we make the systems, update-able right you can now expect more frequent and seamless update of both the operating system and the application services that sit on top of that. Right, so I think right in the future consumers can expect more capable vehicles after you purchase it because new developmental software can now be done with an update over the air. >> I assume this relationship with GM is not exclusive. Are you talking with other automakers as well? >> We are talking to auto makers, other auto makers. What we working with GM is really a product that could work for the industry, right? This is actually what we both believe in is the right thing to do right? As we are able to standardize how we approach the infrastructure. I think this is a good thing for the whole industry to help accelerate innovation for the entire industry. >> Well which is sort of natural next question. Are we heading toward an open automotive platform? Like we have an open banking platform in that industry. Do you see the possibility that there could be a single platform that all or most of the auto makers will work on? >> I wouldn't use the word single, but I definitely would use the word open. Right? Our goal is to build this open platform, right. Because we believe in open source, right. We believe in community, right. If we make it open, we have more contributors to come in and help to make the system better in a way faster. And actually like you said, right. Improve the quality, right, better. Right, so that the chance of recall is now lower with, with this approach. >> You're using validated patterns as part of this initiative. Is that right? And what is a validated pattern? How is it different from a reference architecture? Is it just kind of a new name for reference architecture? or what value does it bring to the relation? >> For automotive right, we don't have a validated pattern yet but they can broadly kind of speak about what that is. >> Yeah. >> And how we see that evolve over time. So validated pattern basically is a combination of Red Hat products, multiple Red Hat products and partner products. And we usually build it for specific use case. And then we put those components together run rigorous tests to validate it that's it going to work, so that it becomes more repeatable and deployable for those particular edge use cases. Now we do work with our partners to make it happen, right. Because in the end, right we want to make a solution that is about 80% of the way and allow our partners to kind of add more value and their secret sauce on top and deploy it. Right, and I'll give you kind of one example, right You just have the interview with the Veterans Affairs team, right. One of our patents, right? The Medical Diagnosis Pattern, right. Actually we work with them in the early development stage of that. Right, what it does is to help make assessments on pneumonia with chest X rates, right. So it's a fully automated data pipeline. We get the chest x-ray from an object store use AIML to diagnose whether there's new pneumonia. And then I'll put that in a dashboard automated with the validated pattern. >> So you're not using them today, but can we expect that in the future? It sounds like >> Yes absolutely it's in the works, yes. >> It would be a perfect vertical. >> How do you believe your work with GM? I mean, has implications across Red hat? It seems like there are things you're going to be doing with GM that could affect other parts of your own product portfolio. >> Oh, absolutely. I think this actually is, it's a pivotal moment for Red Hat and the automotive industry. And I think broadly speaking for any safety conscious industry, right. As we create this Proof-point right that we can build a Linux system that is optimized for footprint performance, realtime capabilities, and be able to certify it for safety. Right I think all the adjacent industry, right. You think about transportation, healthcare, right. Industry that have tight safety requirements. It's just opened up the aperture for us to adjust those markets in the future. >> So we talked about a lot about the consumerization of IT over the last decade. Many of us feel as though that what's going on at the Edge, the innovations that are going on at the Edge realtime AI inferencing, you know, streaming data ARM, the innovations that ARM and others are performing certainly in video until we heard today, this notion of, you know, no touch, zero touch provisioning that a lot of these innovations are actually going to find their way into the enterprise. Kind of a follow on fault of what you were just talking about. And there's probably some future disruptions coming. You can almost guarantee that, I mean, 15 years or so we get that kind of disruption. How are you thinking about that? >> Well, I think you company, right. Some of the Edge innovation, right. You're going to kind of bring back to enterprise over time. Right but the one thing that you talk about zero touch provisioning right. Is critical right? You think about edge deployments. You're going to have to deal with a very diverse set of environments on how deployments are happen. Right think about like tail code based stations, right. You have somewhere between 75,000 to 100,000 base stations in the US for each provider right. How do you deploy it? Right, if you let's say you push one update or you want the provision system. So what we bring to the table in the latest open shift release is that, hey we make provisioning zero touch right, meaning you can actually do that without any menu intervention. >> Yeah, so I think the Edge is going to raise the bar for the enterprise, I guess is my premise there. >> Absolutely. >> So Francis, thanks so much for coming on The Cube. It's great to see you and congratulations on the collaboration. It's a exciting area for you guys. >> Thank you again, Dave and Paul. >> Our pleasure, all right keep it right there. After this quick break, we'll be back. Paul Gill and Dave Vellante you're watching The Cubes coverage Red Hat Summit 2022 live from the Boston Seaport. Be right back.

>>Welcome everyone. I'm Dave Nicholson with the cube. This is a special Q conversation. That is part of the AWS startup showcase. Season two. Got a very interesting conversation on deck with Steve Francis who joins us from Instaclustr. Steve is the chief revenue officer and executive vice president for go-to-market operations for Insta cluster. Steve, welcome to the cube. >>Thank you, Dave. Good to be here. >>It looks like you're on a, uh, you're you're you're coming to us from an exotic locale. Or do you just like to have a nautical theme in your office? >>No, I'm actually on my boat. I have lots of kids at home and, uh, it can be very noisy. So, uh, we call this our apartment in the city and sometimes when we need a quiet place, this, this does nicely >>Well, fantastic. Well, let's, let's talk about Instaclustr. Um, first give us, give us a primmer on Instaclustr and, uh, and what you guys do. And then let's double click on that and go into some of the details. >>Sure. So in sip cluster, we offer a SAS platform for data layer, open source technologies. And what those technologies have in common is they scale massively. We re curate technologies that are capable of massive scale. So people use them to solve big problems typically. And so in addition to SAS offerings for those open source projects where people can provision themselves clusters in minutes, um, we also offer support for all of the technologies that we offer on our SAS platform. We offer our customer support contracts as well. And then we have a consulting team, a global consulting team who are expert in all of those open source projects that can help with implementations that can help with design health checks, uh, you name it. So most of what they do is kind of short term expert engagements, but we've also done longer-term projects with them as well. >>So your business model is to be a SAS provider as opposed to an alternative, which would be to, uh, provide what's referred to as, uh, open core software. Is that, is that right? >>Yeah, that's exactly right. So you, so when, when our customers have an interest in using community open source, we're the right partner for them. And so, you know, really what that means is if they, whether it's our SAS platform, if, if they want the flexibility to say, we want to take that workload off of your SAS platform, maybe at some point operated ourselves because we're not throwing a bunch of PROPRICER proprietary stuff in there. They have the flexibility to do that. So they always have an exit ramp without being locked in and with our support customers, of course, it's very easy. What we support is both the open source project. And if there's a gap in that open source project, what we'll do is rather than create a proprietary piece of software to close the gap, we'll source something from the community and we'll support that. Or if it, or if something does not exist in the community, in many cases, we'll write it ourselves and open source it and then, and then support it. >>Yeah, it's interesting. Uh, supposedly Henry Ford made a comment once that if you ask customers what they want, they'll tell you they want a faster horse, uh, but he was inventing the automobile and some people have, have likened open core to sort of the faster mechanical horse version of open source where you're essentially substituting an old school legacy vendor for a new school vendor. That's wrapping their own proprietary stuff around a delicious core of open source, but it sort of diminishes the value proposition of open source. It sounds like that's, that's the philosophy that you have adopted at this point. That's >>I love that story. I haven't heard that before. One that I like, uh, you know, matching metaphor for metaphor, uh, is, uh, the, um, is the Luddites, right? You know, the Luddites didn't want to lose their weaving jobs. And so they would smash weeding looms and, um, you know, to, to protect their reading jobs. And I think it's the same thing with the open core model they're protecting, uh, you know, they're creating fear, uncertainty and doubt about open, open sourcing. Oh, it isn't secure. And, you know, the, those, those arguments have been used for 15 years or 20 years. And, you know, maybe 15 years ago there were some truth to it. But when you look at who is using open source community open source now for huge projects, you know, if you just do a search for Apache coffee users and go to the Apache Apache website, you know, it's kind of the who's who in big business, and these are people using community open source. And so, um, a lot of the fear and uncertainty and doubt is still used, and it's just, you know, it's just kind of hanging on to a business model that isn't really it's for the benefit of the, of the vendor and not the benefit of the customer. >>Well, so I can imagine being a customer and realizing several years into an open core journey that I basically painted myself into a similar corner that I was in before. Um, and so I can see where that, you know, that can be something that is a realization that, that creeps up over time from a customer perspective, but from your business model perspective, um, if I'm understanding correctly, your, when you scale, you're scaling the ability to, um, take over operations for our customer, uh, that, that some level, I'm sure you've got automation involved in this. Uh, but at some level you've got to scale in terms of really smart people, um, has that limited your ability to scale. So first talk about what have the results been. You guys we've been covering you since 2018. What have your results been over time and has that sort of limited that that limit to your scalability, uh, been an issue at all. >>It's hard to find people, uh, it's hard, it's hard for our customers to find people and it's hard for us to find people. So we have an advantage for two reasons. Number one, we have a really good process for hiring people, hiring graduates, recent computer science graduates typically, and then getting them trained up and productive on our platform and within a pretty short timeframe of three or four months. And, um, you know, so we we've, we've, uh, we have a really well-proven process to do that. And then the other thing that you've already alluded to is automation, right? There's a ton of automation built into our platform. So we have a big cost advantage over our customers. So, you know, our, our customers, you know, if they want to go hire a seasoned, you know, Kafka person or PostGrest personal work, a person, these people are incredibly expensive in the market, but for us, we can get those people for relatively less expensive. And then with the automation that we have built into our platform to do all the operational tasks and handle all the operational burdens on those different open source projects, it's a lot of it's automated. And so, uh, you know, where one of our experts can use, you know, the number of workloads that they can operate is usually, you know, many times more than what someone could do without all of the operational capability or all the automated capabilities that we have. >>So what has your, what is your plan for scaling the business look like into the future? Is it a additional investment in those core operators? Uh, are you looking at, uh, uh, expansion, geographically acquisition? What, what can you share with us? >>We've done some acquisition. We added a Postgres capability. We recently added a last, further Alaska search capability and really buttressed our capabilities there. I think we'll do more of that. And, um, we, we will continue to add technologies that we find interesting and, and federal model, usually what we look for technologies that are pretty popular. They're used to solve big problems and they're complicated to manage, right? If something's easy to manage, people are less likely to perceive our value to be that great. So we look for things that, um, you know, are we kind of take the biggest areas, gnarliest, um, open-source projects for people to manage, and we handle the heavy lifting. >>Well, can you give me an example of something like that? You don't have to, you don't have to share a customer name if you don't, if it's not appropriate, but give us a, give us an example of, of Instaclustr inaction pretend I'm the customer. And, uh, and, uh, you know, you mentioned elastic search. Let's say that, let's say that that is absolutely something that's involved. And I have a choice between some open, open core solution and throwing my people at it to manage it, uh, and, and, and operate at the data layer, uh, versus what you would do. What does that interaction look like? How do, how does the process, >>Um, so one thing that we hear from elastic search customers a lot is, uh, their customers, some of them are unhappy. And what they'll tell us is look, when we get an operational problem with Alaska search, we go to Alaska search. And the answer we get from them is we gotta buy, you know, you gotta buy more stuff, you got to add more nodes, and they're in the business of, uh, you know, that's, that's our business. And, uh, you know, they do have a SAS offering, but, um, you know, they're, they're also in the business of selling software. And so when those customers, those same customers come to us, our answer is often, well, Hey, we can help you optimize your environment. And, you know, a lot of times when we onboard people into our platform, they'll achieve cost savings because maybe they weren't on the cloud. Maybe they weren't completely optimized there. And, um, you know, we want to make sure that they get a good operational experience and that's how we felt lock customers in, right. We don't lock them in with code. We make sure that they have a positive experience that we take a lot of that operational stuff off their hands. And so there's just a good natural alignment between what we want to provide that customer and what they ultimately want to consume. Uh, you know, that, that alignment I think is, is uniquely high within our business. >>Well, so how, how have things changed just in the last several years? Obviously, I mean, you know, the, the pandemic has, has affected everything in, in one way or another, but, but in terms of things that live at the data layer being important, um, I mean, just in the last three or four years, the talk of various messaging interfaces and databases has shifted to a degree. Um, what do you see on the horizon? What's, what's, what's, what's getting buzz that maybe didn't get buzz a year ago. What, what, what are you looking for as well? If you're out looking for people with skill sets right now, what are those skill sets you're hiring to? >>I don't hire engineers, right. I run the go to market organization. I hire marketers, salespeople, consultants, but, uh, so it's probably different. I'm maybe not the best person to ask from an engineering standpoint, but, uh, your question about the data layer, um, and how, you know, that's evolving trends that we see it's becoming increasingly strategic. You know, every, there's a couple of buzzwords out there that, you know, for years now, people have been talking about, um, modernization, digital transformation, stuff like that, but, you know, there's, there's a lot to it like digital, you know, every business kind of needs to become a digital business. And as that happens, the amount of data that's produced is, is just as mushrooming, right. You know, the amount of data on the planet doubles about every two years. And so for a lot of applications for a lot of enterprise mission-critical applications, data is the most expensive layer of the application. >>You know, much more expensive than delivering a front end, much more expensive than delivering a military when you just, when you factor in storage, um, uh, just the kind of moving data in and out, you know, data transfer fees, the cost of engineering resources that it's, it's incredibly expensive. So data layers are becoming strategic because organizations are looking at it and realizing, you know, the amount that they're spending on this is eye-popping. And so that's why it's becoming strategic. It's on the radar, just due to the, uh, the size of bills that organizations are looking at. Um, and we could drive those bills down. You know, our value proposition is really simpler. It's a better, faster, cheaper, and we eliminate the license fees. We can, you know, we are operational experts, so we can get people architected in the cloud more efficiently, and probably about a third of the time we save our customers cloud fees. Um, so it's, you know, it's a pretty simple model that some of those things that are strategically more, or are there, sorry, traditionally more tactical or becoming strategic, just because of the scope and scale of them. >>We, uh, we're having this conversation as part of the AWS startup showcase, which basically means that AWS said, Hey, Silicon angle, have your cube guys go talk to these people because we think they're cool. So, um, so why, why, why do they think you're cool? Are you a wholly owned subsidiary of AWS? Did you, did you and your family, uh, uh, exceed the 300 order, uh, Amazon threshold last year? Y what's your relationship with Amazon? >>I bought an elf on the shelf from, I don't know, I don't know why. Um, you know, we're, we're growing fast and we're, we're growing north of 50% last year in 21 and closer to 60%. Um, you know, we certainly, I think, uh, when our customers sign up for our services, you know, Amazon gets more workloads. That's, that's probably a positive thing for Amazon. Um, we're certainly not, you know, there's much, much, much bigger vendors and partners than us that they have, but, uh, but you know, they're, I think they're aware that there's, there's some, some of the smaller vendors like us will grow up to be, you know, the, you know, the bigger vendors of tomorrow. Um, but they've kind of, they've been a great partner. You know, we, we support multiple, we do support multiple clouds, and Amazon's cool with that. You know, we support GCP, we support Azure and kind of give our customers the choice of what clouds they want to run on. Uh, most of our customers do run an Amazon that seems to be sort of a defacto standard, but, um, they haven't been a great partner, >>But, but AWS, it's not a dependency. Uh, if you're, if you're working within the cluster, it doesn't mean that you must be in AWS. >>Nope. We can support customers. Uh, that's a great question. So we can support customers and multiple clouds, and we even support them on prem, right? If they, if organizations that have their own data center, we actually have an on-premise managed service offering. And if that's not a fit, we even have, um, we can offer support contracts, like if they want to do it themselves and do a lot of the heavy lifting and just need sort of a red phone for emergency situations. Uh, we offer 24 by 7, 365 support with 20 minutes service levels for urgent issues. >>So your chief revenue officer, that means that you write the code that runs operations in your system. I'm not smiling, but I'm at, but I'm, but I am actually joking. So that's what the dry sense of humor. Uh, but, but, but seriously, let's talk about the business end of this, right? We have, uh, we have a lot of folks who, uh, who tuned into the queue because of the technology aspect of it, but let's talk about your, your growth trajectory over time. Um, uh, this isn't a drill down. I'm not asking for your, your pipeline, Steve, but, uh, but, but, you know, give us an idea of what that trajectory has looked like. Um, what's going on. >>Yeah. I mean the most recent year, you know, we're, we're getting, uh, to be, um, I, I don't know what I'm permitted to share expect, but I, you know, we've, we've had a lot of growth, you know, if we've won a couple, a couple of hundred percent, our revenue has in the amount of time that I've been here, which is three years, and we're the point now, or pretty good size. Uh, and that gives us, uh, it's cool. It's exciting. You know, we're, we're noticing in the market is people who traded two years ago. People, no one knew who we were. And now we're beginning to talk to some partners, some resellers, some customers, and they will say things like, oh yeah, we've heard of you. We didn't know what you did, but we've heard of you. And, you know, that's, that's fun. That's a great place to be. Uh, you know, it becomes a little bit self-sustaining at that point. And, um, we, you know, we are about to launch, I, it's not a secret because this isn't public preview. So I think >>Was there, I noticed the pause where you're like, can I say this or not? Go ahead and say, go ahead and say, >>Really we, uh, I was trying to think, wait, am I revealing anything here? I shouldn't. But, uh, we did just go public preview, uh, probably a month ago with a project called Aiden's, uh, cadence workflow. Uh, you can actually, um, go to the Instaclustr website and look up cadence. Um, it's run their homepage, or you can, if you want to go to the open source project itself, you can go to cadence, workflow.io. Uh, this is a project that's trending pretty highly on Google. It's got a lot of important movers in the technology business that are using it and having a lot of success with it. Uh, and we're going to be first to market globally with a SAS offering for cadence, port flop. And, um, it's an incredibly exciting project. And it's exciting for us to specifically, because it's a little different, right? It's not, it's a middle tier project that is targeted at developers to increase developer productivity and developer velocity. >>Um, you joked about my being a CRO writing code, but I actually used to be a coder long time ago. I was not very good at it, but what I did enough of it to remember that a lot of what I did as a coder was right. Plumbing code, you know, rather than writing that code that makes the business application function a huge amount of my time as a developer was spent writing, you know, just the plumbing code to make things work and to make it secure and to make a transactional and just all that, you know, kind of nitty gritty code that you gotta do in a nutshell, cadence makes writing that code way easier. So especially for distributed applications that have workflow like capabilities requirements, uh, it's a massive productivity and PR increaser. So it's cool. Exciting for us is now we can, rather than just target data operators, we can actually target developers and engage, not just at the data layer, but kind of at that middle tier as well, and begin to, uh, identify and, um, uh, synergies between the different services that we have and, and our customers will obviously benefit from that. >>So that's a big part of our growth strategy. >>Yeah. So more, more on from a business perspective and a go to market perspective. Um, what is your, what is your go to market strategy or, uh, do you have, do you have a channel strategy? Are you working with partners? >>He is pretty nascent. You know, our go to market strategy for the most part has been, you know, we, uh, pay the Google gods and, and lots of people come to our website and say, they want to talk to us. You know, we talked to them and we get them signed up with, uh, uh, on our, our, our SAS platform or with a support contract or with our consulting team. Um, we also do outbound, you know, we do, we have an inside sales team that does outbound prospecting and we have, um, and we also have some self-service. We have some, some self service customers as well that just, you know, anyone can go to our website, swipe a credit card, sign up for one of our SAS offering and begin, literally get fired up in minutes and PR and using the platform. Uh, so, you know, it's a bit of a mix of high touch, low touch, I think are, you know, we have tons of big logos. >>We know lots and lots of our customers are household name, really big organizations solving big problems. And, um, that's kind of where the bulk of our businesses. And so I think we've been a little more focused there and go to market than we have sort of a know startup selling to startups and the people that just from super developer focused, wanting low touch. So, but I think we need to do better at that part of the market. And we are investing some resources there so that, you know, we're not so lopsided at the high end of the market. We want kind of a, more of a balanced approach because, you know, some of those, some of those, um, younger companies are going to grow up to be big massively successful companies. We've had that, you know, door dash is a tough class, has been a customer of ours for years, and they were not nearly, you know, we, there were a prepayment, there were custom bars, pre pandemic, and we all know what happened to them, uh, during the pandemic. And so, you know, we know there's other door dashes out there. >>Yeah. Yeah. Uh, uh, final question, geography, uh, you guys global. I, uh, I know you're in north America, but, um, what, what, what does that look like for you? Where are you at? >>We're super global. So, you know, in my go-to-market organization, we have sellers in, um, uh, AsiaPac and Europe, you know, multiple in Asia, multiple in Europe, uh, you know, lots of lots in the, in the states, uh, same with marketing, uh, same with engineering, same with our tech ops delivery team. We have most of them, uh, in Australia, which is where we were founded. Uh, but we also have a pretty good sized team, uh, out of Boston and, um, kind of a nascent team, uh, in India as well, to help to tell it, to help them out. So yeah, very much global and, um, you know, getting close to 300 employees, um, you know, when I started, I think we're about 85 to 90, >>That's it, that's an exciting growth trajectory. And, uh, I'm just going to assume, because it just feels awesome to assume it that since you're on a boat and since you were founded in Australia, that that's how you go back and forth to, uh, to visit the most. >>Yeah. Yeah. It takes a while. It takes a while. >>So with that, Steve, I want to say a smooth sailing and, uh, and, uh, thanks for joining us here on the cube. I'm Dave Nicholson. Uh, this has been part of the AWS startup showcase my conversation with Steve Francis of Instaclustr again. Thanks Steve. Stay tuned. >>Thanks very much to you, >>Your source for hybrid tech coverage.

>>Hello and welcome back to the cubes live coverage of A W. S. Public sector summit. I'm john Kerry hosting CUBA. We're live in Washington D. C. For two days, an actual event with an expo floor with real people face to face and of course we're streaming it digitally on the cube and cube channels. And so our next guest, Mark Francis chief digital health integration officer Electronic caregiver, Mark great to see you tech veteran and former intel back in the day. You've seen your ways of innovation. Welcome to the cube. >>Thanks so much. It's a pleasure to be here. >>So we were talking before we came on camera about all the innovation going back in the computer industry but now with health care and delivery of care telemedicine and how the structural systems are changing and how cloud is impacting that. You guys have an interesting solution on AWS that kind of, to me connect the dots for many tell us what you guys do and take us through the product. >>Sure. Happy to do so uh our company is electronic caregiver were actually founded back in 2009. We're based in Los cruces new Mexico so off the grid. Um but since that time we have been spending a lot of time and money doing foundational R and D pilots and product development work. Really say how do you bridge that chasm between the doctor's office and the patient home in a way that you can put a patient facing device and equipment in a patient's home that's going to drive high level of engagement, obtain actionable curated data that's presented out to caregivers and the caregivers can then act upon that to help direct and deliver high quality care. >>So basically is the future of medicine, >>the future of medicine. Right. Right. We look at medicine, we look at the future of medicine as being a hybrid model of in person care plus remote care. And we really see ourselves at the epicenter of providing a platform to help enable that. >>You know the big story here at the public sector. Some and we've been reporting on a digitally for the previous year is the impact the pandemic has had on the industry and and not just normal disruption, you know technology and start ups, disruption happens, structural changes being forced upon industries by the force majeure. That is the pandemic education, health care and so video and data and connected oriented systems are now the thing structurally that's changing it. That's causing all kinds of business model, innovations and challenges. Yeah. What's your take on that? Because this is real. >>Yeah. It is real. It it's funny that this is actually my third digital health company. Um First one was in in uh Silicon Valley early remote patient monitoring company. We end up selling it to bosh uh when I joined intel to be part of our digital health group, we did that for five years and ended a joint venture with G. E. So people have been playing around in remote patient monitoring telehealth for some time until the pandemic though there wasn't really a strong business model to justify scaling of these businesses. Um uh the pandemic change that it forced adoption and force the government to allow reimbursement coach as well. And as a result of that we've seen this pure if aeration of different product offering service offerings and then payment models around telehealth broadly speaking >>well since you started talking the music started cranking because this is the new music of the industry, we're here on the expo floor, we have face to face conversations going on and uh turn the music down. Hey thanks guys, this is a huge thing and I want to uh highlight even further what is the driver for this? Because is it, I mean actually clouds got some benefits but as you guys do the R. And D. What's going on with what's the key drivers for medicine? >>Yeah, I would take two things from a from a technology perspective, the infrastructure is finally in place to enable this type of charity distance before that it really wasn't there now that's there and the products that folks are used are much more affordable about the provider's side and the patient side. The main driver is um uh there's a lot of underlying trends that were happening that we're just being ignored Whether it was 50% non adherence to treatment plans, massive medication mismanagement um lack of professional and informal caregivers, all those things were kind of happening underneath the surface and then with Kobe, it all hit everybody in the phase. People started using telehealth and then realize, hey, we can deliver high quality care, we can deliver value based care mixed with a hybrid model of tele care plus patient care. And it turned out that, that, that works out well. So I think it's now a realization that tell care not only connects patients but solve some of these other issues around adherents, compliance, staffing and a number of other >>things and that this is a structural change we were talking about. Exactly. All right, So talk about amazon, what do you guys are doing on AWS? How's that all work? >>That's working out great. So as we, as we launch at a 2.0, we built it on 24 foundational aws and Amazon services. It's a serverless architecture, um, uh, which is delivered. What enables us to do is we have a whole bunch of different patients facing devices which we now integrate all into one back end through which we can run our data analytics are machine learning and then present curated actual data to the providers on top of that. We've also been developing a virtual caregiver that's really, really innovative. So we're using the unity engine to develop a very, very realistic virtual caregiver that is with the patient 24 hours a day in their home, they develop a relationship with that individual and then through that they can really drive greater you know more intimate care plan and a more intimate relationship with their human caregivers that's built using basic technology behind Alexa pauline lacks as well as IOT core and a lot of other ai ml services from from amazon as well. >>Not to get all nerdy and kind of seeking out here because under the hood it's all the goodness of amazon. We've got a server list, you got tennis is probably in there doing something who knows what's going on there, You've got polly let's do this and that but it also highlights the edge the ultimate network edges the human and if you've got to care for the patient at home or wherever on the run whatever. Yeah you got to get the access to the data so yeah I can imagine a lot of monitoring involved too. Yeah can you take us through how that works? >>Yeah and for us we like to talk about intelligence as opposed to data because data for data sakes isn't actionable. So really what can we do through machine learning and artificial intelligence to be able to make that data more actionable before the human caregiver because you're never going to take a human out of the equation. Uh But uh we had a lot of data inputs, they're both direct data inputs such as vital signs, we also get subtle data input. So with our with our uh with Addison or virtual caregiver uh the product actually come to the camera away from intel called the real sense cameras. And with that we get to see several signs of changes in terms of gate which might be in the indicative of falls risk of falls. We can see body temperature, pulse, heart rate, signs of stress, lack of sleep. Maybe that's a sign of uh adverse reaction to a new medication. There's a bunch of different direct and indirect inputs. We can take run some analysis against and then say hey there's something here you might want to look at because it might be indicating a change in health. >>So this is where the innovation around these bots and ai come in because you're essentially getting pattern matching on other signals you already know. So using the cameras and or sensors in to understand and get the patients some signaling where they can maybe take action call >>fun or Yeah, that's exactly. And the other thing we get, we get to integrate information related to what are called social determinants of health. So there's a whole body of research now showing that 65% of someone's health is actually driven by non clinical issues. So again issues of food security, transportation, access to care, mental health type issues in terms of stress and stuff like we can start gathering some of that information to based upon people's behaviors or for you to assessments which can also provide insights to help direct care. >>So maybe when I'm doing the Cuban reviews, you guys can go to work and look at me. I'm stressed out right now, having a great time here public sector, this is really cool. So take a minute to explain the vision. What does this go from here? I'll see low hanging fruit, telemedicine, check data, observe ability for patient for optimizing care, check what happens next industry disruption, what how these dominoes have been kind of fall? >>Yeah, for us uh we really are seeing more providers and more payers system. Integrators looking now to say how do I put together a comprehensive solution from the doctor's office to inpatient hospital to home that can remove it. A lot of barriers to care addi which is our platform is designed to be interoperable to plug into electronic health care systems, whether it's Cerner, Epic or Athenahealth, whatever it might be to be able to create that you pick us seamless platform for provider to use. We can push all of the data to their platform if they want to use that or they could use our platform and dashboard as well. We make it available to healthcare providers but also a lot of people are trying to age in place and they're getting treated by private duty providers, senior housing providers and other maybe less clinical caregivers. But if you're there every day with somebody you can pick up signs which might prevent a major health episode down the road. So we want to close that circle our our vision is how do we close the circle of care so that people get the right information at the right time to deliver the right >>care. So it's kind of a health care stack of a new kind of stack. So I have to ask you if there was an eye as pass and sass category um infrastructure as a service platform as a service. And then says it sounds like you guys are kind of combine the lower parts of the stack and enable your partners to develop on top of. Is that how it >>works? Yes it does. Yeah. Yeah. So with addie, the interesting thing that we've done it's designed to have open a P. I. For a lot of modules as well. So if we're working with the american Heart Association and we want to do a uh cardiac care module from using their I. P. We could do that if we want to integrate with Uber health or lift we could do that as well if we want to do something in the amazon and pill pack, it's a plug in that we could do that. So if I'm a patient or or a loved one at home instead of going to 10 different places or use our platform and then pull up four different apps. Everything can be right there at their fingertips. You can either do it by touch or you can use this voice because it's all a voice or a touch of interaction. >>So just because I'm curious and and and for clarification, the idea of going past versus SAS platform versus software as a service is why flexibility or customization? Why not go SAS and be a SAS application? >>Uh we've talked mostly about, we've we've gone back and forth platform as a service or infrastructure as a service. So that's more the debate that we've had. It's more about the scalability that we can offer. Um uh not just in the United States, but globally as well. Um and really that's really the thing that we've been looking at, especially because there's so many different sources of data, if you want to provide high quality care that needs to be integrated. We want to make sure that we created a platform, not just for what we provide but for what others in the environment can provide. >>So you really want to enable other people to create that very much layer on top of you guys, do you have out of the box SAS to get people going or is that just >>With the release of adding 2.0, now we do. So now folks go to our website and they contact our development those tools and and those libraries are available. >>Now, this is an awesome opportunity. So for people out there who are wanting to innovate on you, they can just say, okay, I'll leverage your the amazon web services of healthcare essentially. >>That's a nice bold ambitious statement. Yeah, but I mean kind of but if we if we can achieve that, then we'd be quite happy and we think the industry, you're gonna partner >>benefit of that. It's an ecosystem play. Exactly, yeah. It's kind of like. >>Yeah, yeah, yeah, yeah. And for us, what we do covert is a perfect example going back to that. So when Covid hit um were based in las cruces, new Mexico last winter lost crew system to el paso and overwhelmed. They're at capacity. Different health care systems came to us, they asked if we partner with them to deliver a basically a triage program for folks that were coming into the er with Covid. So we designed a Kobe at home programs. So you get diagnosed, get a kit, go home and using telehealth virtual visits, remote monitoring. Be able to stay healthy at home without doing community spread. And by making sure that you were being watched over by a care professionals 24 hours a day. We did that um worked with 300 people Malcolm would all of them said healthy. We were able to expand uh inpatient capacity by 77%. We saved the system over $6 million in in three months. We've now been asked and we're actually replicating that in Memphis now and then also we've been asked to do so down in Mississippi >>mark, great conversation. Uh real quick. I only I don't have much time left but I want to ask you, does this mean that we're gonna see a clip of proliferation of in home kind of devices to assist? >>Yeah, we will. Uh, what we've seen is a big pivot now towards hospital at home model of care. So you have providers saying, you know, I'll see you in my facility but also extend capabilities so I can see you and treat you at home as well. We've also seen a realization that telehealth is more than a than an occasional video visit because if all you're doing is replacing an occasional in person visit with an occasional video visit. You're not really changing things now. There's a whole different sensors ai other integrations that come together to be able to enable these different models >>for all the business school folks out there and people who understand what's going on with structural change. That's when innovation really changes. Yeah, this is structural change. >>Absolutely. >>Mark, thanks for coming on. Mark Francis chief Digital Health Integration Officer Electronic Caregiver here on the Q. Thanks. Coming >>on. Thank you. My pleasure. >>Okay, more coverage after this short break. I'm john Kerry, your host Aws public Sector summit, We'll be right back mm mm mm

>>from the Cube Studios in >>Palo Alto and Boston connecting with thought leaders all around the world. This is a cube conversation. Hi. I'm stupid, man. And welcome to a cube conversation. I'm coming to you from our Boston area studio. Happy to welcome to the program. First time guest on the program. Francis Mattis. He is the vice president of engineering at Pensando. Francis. Thanks so much for joining us. >>Thank you. Good to be here. All >>right. So, Frances, you and I actually overlapped. Ah, you know, some of the companies who work with, you know, if anybody familiar with Pensando, you have worked with some of the mpls team over the years through some of those spin ins, but for our audience, give us a little bit about your background. You know, what brought you to help and be part of the team that you started pensando? >>Sure. Yeah. Yeah. So I started my career with Advanced Micro Devices in the mid nineties, got out of school, really wanted to build micro processors. And so, Andy, being in Austin, Texas, and be going to ls you for undergrad was perfect sort of alignment. And so I got to say M. D and Austin built K five worked on that team or kind of team with K seven. And, uh, when I came out to California to help with K, and that brought me to California. And then we got into the dot com era and and being a A and B fighting intel, so to speak, seemed like a hard battle. And so, with the dot com era coming, I just saw this perfect opportunity to jump into the Internet. And so that's how we got into building Internet and data communications equipment, went to the show on systems. We talked a little bit about that earlier, and that got me into storage. From there, I got into a company called on GMO, which was building fibre channel sand equipment. So built chips there, and I got to know the Mpls team there. I always say they hired me off the street. And from that point on, while we've been together since Jews 1001 So 19 years, yeah. Yeah, and I've been building silicon with them and systems for almost 20 years now. So we had quite a journey. Yeah, it's been fun. Great >>stuff. Yeah, you know it's going back, you know, niche on talking about ice scuzzy. You know, in the networking world, you know, it's a little bit of a dark arts in general for most people, you know, understanding the networking protocols and all the various pieces and three and four letter acronyms aren't something that most people are familiar with. Pensando, I'm curious. You know what? You know, networking In general, you're like, I work on Internet stuff and we're the tubes that, you know, Things go around. So when when you describe pensando, you know how to explain that to the people that maybe aren't deep into East, west, south, over on under underlay protocols? >>Yeah, absolutely. So for me, pensando was kind of the sort of the culmination of all the things I've done in my career processing, you know, being able to build compute engines that have programmable, starting with microprocessors, being able to do storage and storage networking with Andy on no, we build a computer with druva and the virtualization layers around the Ethernet interfaces in the adapter with what was really our first smart nick, Um, in 6 4007 timeframe and then with STN in CNI, all of these elements kind of came together. These multiple different layers in the infrastructure stack, if you will, and so pensando for me. What was interesting was the explosion of scale in both space and time with the advent of, let's say, 25 gig 50 gig 100 gig to the server, the notion of very dense computing on in each rack and the need for very high scale After doing all of these technologies and seeing where silicon kind of started to fall in place, I was 16 centimeter. It seemed that bringing this kind of technology to the edge very low power with sort of an end to end security architecture and to end policy engine architecture, distributed services as we're doing all seem to naturally fit into place. And the cloud was already proving this morning when I say the cloud, I mean, the hyper scaler is like Amazon and Microsoft. We are already building these platforms. And so yeah, it dawned on me that, uh I didn't think this was possible unless you built the entire platform. We built the entire system. If you build any one piece, the market transition would take a lot longer. And I think this is true. In technology, history tends to repeat itself, starting with mainframes. When IBM built an entire computer and that built the entire computer, HP built these people. So these kinds of things, um, are important if you want to really push a market transition. And so pensando became this opportunity to take all of these things that I've done in my past life and bring them together in a way that would give a complete stack for the purposes of what I call the new computer, which is basically the data center. And so, um, you know, when my mom asks me, you know, what is it that you're doing? I said, Well, it's just imagine the computer you have right now and multiplying by thousands and thousands stacking in Iraq, and anyone can use it at any one time. And we provide the infrastructure and the mechanisms to be able to Teoh, orchestrate and control that very, very high speed layers. So I don't know if that was a long answer. >>No, no, no. It's fascinating stuff, and you know, when I look at the industry, you know cloud. Of course. Is that just make a wave? That changed the way a lot of people look at this. The way we architect things, there was this belief for a number of years. Well, you know, I'm going to go from this complicated mess that I had in my own data centers and cloud was going to be, you know, inexpensive and easy. And I don't think anybody thinks about inexpensive and easy when they look at cloud computing these days, then add edge into these environments. So I guess what I'm asking is, you know, today's environment, you know, we know I t always is additive. So I have various pieces that I need to put together. You talked about building platforms, and how can it be a complete stack? So companies like Oracle, you know, for many years said we can do everything from the silicon all the way up through your application. Amazon in many ways does the same thing they can. You can build everything on Amazon, but they built out their ecosystem. So how does Pensando fit into this? You know, multi cloud, multi dimensional multi vendor. >>So yeah, so that's a good question. so So one of the things we wanted to do is to be able to bring a systematic management layer two header Genius, beauty. And what I mean by that is in any enterprise data center, modern data center, you're gonna have multiple types of computing. You're gonna have virtual machines, you're gonna have their metal, and you're gonna have containers, or at least in the last, say, three or four years. Chances are you'll have some containers and moving there. And so what we wanted to do was be able to Brighton Infrastructure a management mechanism where all of these head Virginia's types of computing could be managed the same way with respect to policy. What I mean by policy is sort of this declarative or intent based model of I have declared what I'd like to see, whether that the network policy or and and security with data in motion and be able to plot apply it in a distributed manner. Across these different types of hetero genius elements, the cloud has the advantage that it's homogenous for the most part. I mean, they own the entire infrastructure and they can control everything on their now our systems will obviously manage the marginal systems as well, and in many ways that's easier. But bringing together these this notion of heterogeneity these types of computing with one management plane one type of interface for the operator, specifically the networking services operator, was fundamental. That and then the second thing is being able to bring the scale and speed to the edge. So a top of rack switch or something in the in the middle of the network is obviously very dense in terms of this Iot capability. So the silicon area that you spend building a high speed switch is really spent for the most part on the Iot, unless typically, 30 to 40% of the area will be Iot and the rest will be very much hardwired control protocols. We know that as we go to STN services and we want, uh, let's say software defined mechanisms in terms of what the policy looks like, what the protocols look like. The ability to change over time in the lifespan of the computer, which is 3 to 5 years, are you want that to be programmable, very difficult to apply a very dense scale in the core of the network. And so it was an obvious move to bring that to the edge where we could plug it into the server effectively, just like we did. Really? In the UCS system. Uh, no system. >>Yeah, some some really tough engineering challenges. You know, for the longest time, it was very predictable in the networking world, You know, you go from one gig to 10 gig. You know, there was a little discussion how we went the next step, whether, you know, 25 50 40 and 100 gig now. But you talk about containerized architectures. You talk about distributed systems with edge. Things change at a much smaller granular level and change much more frequently. So what are some of the design principles and challenges that you make sure that you're ready for what's happening today but also knowing that, you know, technology changes there always coming, and you need to be able to handle, You know, that next thing. Yeah, >>that's right. Yes. So, uh, I think part of the biggest challenges we have are around power with respect to design power. And then what is the usefulness of each transistor? So, um, when you you have sort of a scale of flexibility. See, views are the most flexible, obviously, but have probably the least performance in them. PG A's are pretty useful in terms of its flexibility, but not very dense in terms of its logic capability. And then you have hardwired a six, which are extremely dense, very much purpose built logic, but completely inflexible. And so the design challenge it was put in front of us is how do we find that sweet spot of extremely programmable, extremely flexible, but still having a cost profile that didn't look like an F PGA And God knows the benefits of the CPU. And and that's where this sort of this notion of domain specific processing came in, which is okay, well, if we're going to solve a few problems, we're going to solve them well. And those few problems are going to be we're gonna bring PC services. We're going to bring networking services. We're going to bring stories, services. We're gonna bring security services around the edge of the computer so that we can offload or let's say, partition correctly the computing problem in a data center. And to do that, we knew a core of sea views wasn't going to do a job that's basically borrowing from this guy to pay this other guy. Right? So what we wanted to do was bring this notion of domain specific processing, and that's where our design challenges came in, which is okay, So now we build around this language called P four, What is the most optimal way to pack? The most amount of threads are processing elements into the silicon while managing the memory bandwidth, which is obviously, you know, packet processing is it has been said to be embarrassingly parallel, which is true. However, the memory bandwidth is insane. And so how do we build a system that insurance that memory is not the bottleneck? Obviously, we're producing a lot of data or, uh, computing a lot of data. And so So these were some of our design challenges. All of that within a power envelope where this part of this device could sit at the edge inside of a computer within a typical power profiling by PC, a attached card in a modern computer. So that was a huge design challenge for us. >>Yeah, I'd love to hear, you know, it was a multi year journey toe solution. And I think of the old World. It was very much a hardware centric 18 to 24 months for design and all the tape out you need to do on this. Sounds like obviously there is still hardware, but it is more software driven. Then it would have been, you know, 10 years ago. So give us some of the ups and downs in that journey. Love to hear any. Any stories that you can share their Well, yeah, I >>think you know, good question. It's always there's always ups and downs in anything you do, especially in the start up. And I think one of the biggest challenges we we've faced is, uh, the exact hardware software boundary. So what is it that you want in hardware? What is it that you want in software And, uh, you know, one of the greatest assets and our company depends on who are the people. We have amazing software and hardware architects who work extremely well together because most of us have been together for so long. So, um, so that always helps when you start to partition the problem. We spent the first year of Pensando, which was basically 2017. The company was founded really thinking through this problem, would it for for all the problems, we wanted to solve the goals that were given to us and and security. Okay, so I want to be able to terminate TCP and initiate TLS connections. What's the right architecture for that? I want to be able to do storage off load and be able to provide encryption of data at rest data in motion. I want to be able to do compression these kinds of things. What's the right part of our software boundary for that? What do we what do we hardwire in silicon versus what we make it programmable and silicon, obviously, but still through a computing engine. And so we spent the first year of the company really thinking through those different partitioning problems, and that was definitely a challenge. And we spent a lot of time and and, uh, you helped me conference rooms and white boards figuring that out. And then 2018. The challenge there was now taking this architecture, this sort of technology substrate, if you will that we built and then executing on it, making sure that it was actually going to yield what we hope that would that we would be able to provide the services. When we talk about El four firewall at line rate, that's completely programmable. Uh, we achieved that. Can we do load balancing? And we do all of it with this before processing engine and the innovations we brought before satisfy all of these requirements we put for us. And so 2018 was really about execution. And there you always have. The challenge is in execution. In terms of, you know, things are going to go wrong. It's not. It's not. If it's when and then how do you deal with it? And so again, um, I would say the biggest challenge and execution is, uh, containing the changes. You know, it's so easy for things to change, especially when you're trying to really build a software platform right, because it's always easy to sort of kick the can and say we'll deal with that later and software. But we know that given what we're trying to do, which is build a system that is highly performance, um, you can't get that. Can you have to deal with it when it comes in. So we spend a lot of time doing performance analysis, making sure that all these applications we were building we're going t yield the right performance. And so that was quite a challenge. And then 2019 was kind of the year of shaping the product. Really lots of product design. Okay, now that we have this technology and it does these, he says that we wanted to do these pieces meaning services. What are all the different ways we can shake this product after talking to customers for, you know, months and months and months. You know, Sony is very much custom, customer driven customer centric. So we we were fortunate enough that we got to spend a lot of time with customers and then that brings us out of challenges, right? Because every customer has a unique problems and so I don't know how to reform this product around a solution that solves quite a bit of problems that really brings value. And so that was the those are the challenges in 2019 which we overcame. Now, obviously we have several releases that we've come out with already. We've got a six and the chips and the It's all there now. So now, 2020. Unfortunately, covitz here, But this is this is a year of growth. This is the year that we really bring it out into the world with our partners and our customers and show how this technology has been developed and benefit will benefit customers over over the next years. Two years. >>Frances really appreciate the insight there. Yeah, that that discussion of the hardware versus software brings back memories for May. Lots of heated debates. A CIO What? One of lines you know we've used on the Cube many times is you know, you know, software will eventually work. Hardware will eventually break. So those trade rto >>taught me something over time ago. He said that uh huh, hardware is hard to change. Software is hard to stop changing. So >>that that's a great one to All right, So you gave us through the last three years journey. Give us a little bit. Look, you know, on the next three years and where you expect pensando to be going >>Sure. Where I see pensando in the next three years as we go through this market transition is uh, both a market leader in a thought leader in terms of the next wave of data center edge computing, whether the, uh in the service provider space, whether it be in the enterprise space or whether it be in the cloud space, the hyper hyper scale of space. As I was mentioning in the beginning, we had when we were talking about, uh, the journey. Market transitions of this major really require understanding the entire stack. If you provide a piece and someone else provides a piece, you will eventually get there. But it's a matter of when, and by the time you get there, there's probably something new. So, you know, uh, time in and of itself is an innovation in this area, especially when you're dealing with the market transition like this. And so we've been fortunate enough that we're building the entire system when we go from the transistors to the rest of the FBI's way, have the entire staff. And so where I see us in three years is not only being a market leader in this space, but also being a thought leader in terms of what does domain specific processing look like at the edge. Um, you know, what are the tools? What are the techniques for? Really a z save? Democratizing the cloud bringing, bringing this technology to everyone. >>Excellent. Well, hey, Frances, That has been a pleasure to talk with you. Thank you so much. Congratulations on the journey so far and I can't wait to see you. How? Thanks for going >>forward. Yeah, we're excited, and I appreciate it. Thank you for your time to. All >>right, check out the cube dot net. We've got lots of back catalogue with pensando. Also, I'm stew minimum. And thank you for watching the Q. Yeah, yeah, yeah.

>> Announcer: Live from Las Vegas, it's theCUBE covering InterConnect 2017 brought to you by IBM. >> Hey, welcome back everyone. We're live here in Las Vegas for IBM InterConnect 2017. This is theCUBE coverage of their cloud and big data event Watson Analytics, and IoT Cloud. It's theCUBE coverage for three days. A lot of great interviews. I'm John Furrier, my co-host Dave Vellante. Our next guest is Scott Francis, an entrepreneur, CEO, co-founder of BP3. Welcome to The Cube. >> Thank you, glad to be here. >> Great to have an entrepreneur on because you've been, in your business, you co-founded it, built it form the ground up, >> Scott: Right. >> Hundreds of employees. Now, over 100 employees. >> Scott: Right. >> IBM partner, great story. >> Yeah, we started with just two of us 10 years ago. And, we'll have our 10th anniversary in May this year. >> John: Congratulations. So take us through the, you know, state of the art. I mean, go back 10 years ago. You've actually provisioned your own servers. You actually had to load routers and networking gear. That's like, I'd say a tax of at least 100K in just gear. And then you've got the ISP chart, all that stuff. >> Right, well the economics have totally changed, right? For us and for our customers, and I think the main benefit is you can get to business value so much faster now and spend less money that's sort of wasted spend, right? >> So take a minute and talk about what you guys do and what your role is here. And then I want to get into some of the things that are changing the market place, that people are seizing opportunities around, certainly around processing and new innovations. So, give us a quick update on who you guys are, and your role here today. >> Yeah, so our focus is on business process and decision management. And, you know, our experience is that it is foundational technology and foundational aspect to almost everything you're hearing going on, right? Whether it's block chain or cognitive, or moving to the cloud. What are their key considerations? How does it impact my business process? How does it impact my operations? How does it impact my decisions? So we feel like in our space, we're right at the sweet spot of what all our customers are worried about. And when we hear them talk about block chain, we know we've got a process problem we've got to address. And when we hear about moving to the cloud, we better address all the Halo applications around that, application that's moving to the cloud and make sure they're all addressed and part of the new business process. >> It's interesting, the whole decoupling of existing systems models >> Right. >> Is really kind of what I see as the micro trend over the past six years, and like you mentioned, foundational building blocks is key, right? >> Scott: Right. So that's key. And, so let's take this to the next level. I want to ask you a question because I think this is something we see all the time on theCUBE when we do interviews, is that technology now is so much different. In the old days it was, we knew the process. >> Scott: Right. >> And we don't really know the technology. Let's go automate that accounting, blah, blah, blah. You know we saw that, ERPs, CRM, all those vendors. Now it's, I have technology, I don't know what the process is going to be because some new, big data analytics people changed the insight, and changed the value chain, or changed the business model, one tweak radically will disrupt proven, process which no one wants to change. Whoa, you know, so there's now a real factor. Give us some insight and color around how that goes down, because someone has an insight, they want to roll it in and implement it. It changes the entire process flow. >> Right, well the key thing is, having an insight as a single person in a process is one issue, but rolling it out across a Fortune 500 company is a whole other proposition, right? You've got regulatory issues and compliance issues, and customer experience issues that you've got to work through. And all those accommodations may be there. The value prop may be there, but you've got to work through it. You can't, you know, at a billion dollar organization, you can't just change it for that, you have to work all that out. >> John: So what's the playbook? >> Yeah, so the playbook is when we have an insight, what we talk to customers about is you've got all these tools now to arrive at insights you couldn't get to before, or by the time you got to them, you're doing your analytics over data that's six months old. Okay, now I have an insight about what would've worked six months ago. The difference is with cognitive and machine learning algorithms, and the analytics you have available today, and the access to the data, those insights are available now. We have to re-architect the processes to reflect that and to let me make new decisions within that operational context. >> Go ahead. >> Operationalizing those insights. Go ahead, finish your thought. >> Well the data first thing that you talked about is key. We just had our big data event. It's look in value in conjunction with strata hadoop was data in motion and badge are working together now to your point, the times series of data is relevant in the time you need it, right? >> Scott: Right. >> Not yesterday. So this brings up the question of, Okay, you've got some spark thing going on. I see IBM has got spark, that's cool. But now, how do you get into the app, right? To developers? I'm a developer. I'm a coder. Do I need to be a wrangler, data wrangler, or data scientist, to make that happen? So this is the conversation people are trying to figure out. What's your perspective on that? >> I think a lot of the tools that are, that are available now, basically made a common coder, right? Has a decent chance OF that competing with their data scientist friends. There's a different level of expertise, obviously, for the data scientist. But much like in business process, you know years ago, you had to get your lean six black belt, and you really had to study it to get good at it, and really master statistics, and I've got tools that will run the statistics for you, right? So you don't have to master the statistics but you've got to collect the right data, you have to engage in the business. So I think you see a sort of, democratization of data science, right? With the tools that are available now. >> Talk a little bit more about decision management. Go back to the mid-2000s and the Harvard Business Review is writing articles that gut feel trumps, you know, paralysis, analysis, paralysis by analysis every time. That's seemingly changed but what specifically has changed in regards to operationalizing those insights? >> Well I think they're a couple of things that are interesting. If you look at how processes were traditionally designed, you know, before BPM came along, BPM and decision management tools came along, just write the code. Build your application. And when you wanted to change the decision, well you had to find where that was modeled in the code, and edit the code, right? And that was a challenging proposition. The guys that wrote it might have moved to other projects. So how do you figure it out? >> So gut feel was faster. >> Yeah, and BPM, and OEM, you know, gave us tools for managing those things. BPM in terms of process, having a diagram that a mere mortal can understand and find the right context for whenever that decision gets made. And decision management to mange rule sets and the interactions between these rules in a more codified way that again, mere mortals can understand, right? So you don't have to go hunting through code. We're looking at a model, a representative model. I think the change now with machine learning, with cognitive computing, the real time access to data is that you have to really rethink your processes and allow those decisions to be altered in real time, not later, six months later, when I'm doing a revamp of the process as a separate, sort of institutional operation but actually as I'm running my process. We design it to accommodate the idea that as we're collecting data we're going to learn and get better, and actually affect those decisions, or recommend a different decision to the person whose Johnny-on-the-spot. >> Are you finding that the business impact is that your customers, the consumers of this sort of new way of doing decision management are seeing things that they wouldn't have seen before, or is it more greater conviction and faster time to everybody pulling the same direction? >> Well, I think for sure they're seeing things they haven't seen before. We're surfacing data that they just didn't have access to before in a timely fashion. And in the context of their process which was always a difficult thing to do in traditional systems, right? For any of your traditional ERP, or CRM system, the notion of where you are in your cross functional process may not be present. Today you have that context. You have the real time access to it. That really changes the nature of what you're seeing. I think the other bit is, yeah, the action ability, right? How easy it is to turn that insight into an action. >> And have you seen any effect on the politics of decision making, because we all know the P and L manager whose the strong voice in the organization, he or she is going to pull data that supports their business case. Have you been able to, sort of, neutralize that sometimes damaging effect in organizations? >> Yeah, well, I think in the cycle of the economic cycle, you know, if we rewind five or six years ago, almost every project we engage with with a customer is about operational controls, reducing costs, trying to produce the same result with fewer resources, right? And that has shifted dramatically over the last few years. The last two years it's been almost entirely about capturing revenue. >> Dave: Opportunistic, yeah. >> Serving new revenue streams without having to hire as much to support it. It's much more about revenue capture and customer experience. And I think that reflects the stage we're in in the cycle. >> Dave: Is that a bubbling cater? I hope it reflects a good long term view. >> Dave: I hope so too. >> You know, but it's interesting. There's a customer speaking here at InterConnect today, StubHub, about their customer experience. And they BPM to manage their customer experience, and back in 2009, 2010, when everybody was pulling back, and they were all focused on cost containment. You know, I recall StubHub was working on how to make their customer experience better. It's kind of interesting, right? And they've done very well over the years, right? So I think that value system in that culture really pays off over time, but you have to really mean it. If you're just swinging back and forth with the ebb and flow of the economy, then I think it's very difficult. >> Well, if you're doubling down when everybody else is sitting on their hands, you're going to get a competitive. >> It's a great opportunity, right? >> So, talk a little bit more about the IBM connection. What's going on in InterConnect, and what's the relationship there? >> Well, IBM is our best partner. You know, we've been partnered very closely with IBM ever since they acquired Lombardi which was our company that we came out of back in 2007. And that has become, you know, the heart of the IBM, BPM portfolio. And we work with their business process products, decision management, as well as cognitive and blue mix. So we're in the mix with IBM in a big way, and I think this conference is a great opportunity for us to not only reconnect with folks from IBM, but also with our customers who tend to come to this conference as well. So it's a great opportunity for us. >> So specifically you're leveraging IBM tooling, sort of. >> That's right. >> Repackaging that in your solutions for your clients. >> Right. So we are a reseller. We're also OEM IBM software, and we do delivery work for IBM customers. So, it's kind of a trifecta. >> You started this company 10 years ago. We love this start up story. Tell us, you and your colleagues started. Tell us your start up story and how you go to where you are now. >> Well we were, you know, we would meet up at a coffee shop, right? And get together and kind of talk about, you know, the fact that it felt like there was a big opportunity out there. >> Dave: This is in Austin. >> Yeah in Austin. My co-founder and I, you know, we were working at Lombardi but we felt like there was an opportunity to build a great services firm in our space, right? In this business process space, that there was a lot of untapped potential. And as we met and talked about it, we just got the bug that we needed to go out and do it. And when we started the company, you know. It was just the two of us initially. We bootstrapped the firm. Last summer, for the first time, we actually raised money, outside capital, to help fund the growth. >> Dave: 10 years then. >> Yeah, yeah. But all that time we self funded which was a great experience. A great learning experience. Certainly lost some sleep over the years. But, you know, there is an aspect of kind of putting the band back together. You know, hiring people we really enjoyed working with in previous lives, previous jobs, and putting together a killer team to go after it. >> So the decision to take outside capital, maybe talk a little bit about that because that's probably wasn't an easy one, or maybe it was, I don't know. >> No, I think, you know, what we've been fortunate to do is we've taken some calculated risks over time, right? We used to only operate in the United States. We acquired a business in London to expand to Europe. And now a third of our business is in Europe. But those risks, you can put the whole company at risk taking a chance like that. And so it occurred to us, after taking a few of those calculated risks and winning that maybe we should hedge our bets a little bit and have some more capital to work with, and have a good financial partner that if we were engaged in that kind of discussion, someone who could help, both advise and also possibly fund if we got into that situation. And so, we took an investment from Petra Capital based out of Nashville. They're a great growth equity firm, and they invest in healthcare and tech start ups, like ourselves. And so we got some great people on the board as a result. Mike Simmons from T2 Systems, and Jeff Rich from another capital investment firm. These guys have been operators. They've run companies much bigger than ours but they've also been in the mix at our size. So we've got some great outcomes out of taking that investment. >> So you've been cashflow positive since the early days. You had to be. Is it the plan to continue to do that, or do you make gasoline in the fire type investments? >> You know, I think it's cultural, right? I know there's a lot of business models where there's actually some good since in the running and not worrying about profit for awhile, but I also think you need to develop habits and our business serving enterprise customers, I think they deserve to know that we're being responsible with our money, with how we spend, with how we grow, and that we have a responsible level of growth. We could spend more and grow faster at the same type of process. >> John: At the risk of service. >> But at the risk of service quality for our customers and that's not worth it for us because ultimately, it's the repeat business with customers that really drives our growth long term. >> We feel the same way, obviously self funded. You know I'd say Silicon Valley is a story like that. Heirarchy of entrepreneurs and it's well known that the number one position is self funded growth without outside capital. It's a lot harder. No offense to my VC funded friends. It's a lot harder to do it from the ground up than just get other people's money. So tier one is do it yourself, which you guys are in. Get some capital, grow that and have an exit. Three, try and fail, or four, work for a company. (laughs) >> I think the key thing is it takes patience. If you're going to do it yourself and self fund it, you know, let the business fund itself, not just throw in your own personal money, but actually make the business fund itself. You have to have a lot of patience to stick with it. And I think whether by hook or crook, we picked a space that afforded us some of that patience, right? >> Yeah, you get rewarded for innovation. You get awarded for good service delivery. >> We feel like business is a human endeavor, right? So a good business process and good decisions are going to be problems that our children will face, not just us. >> And they're going to get more exciting for you as processes get automated with machine learning and AI right here on the doorstep, and Devops exploding with IoT coming on full line. It's going to change the game big time. >> Yeah, and I can't remember who said it but someone just yesterday was saying, you know, "It's not so much about automation "as it is about augmentation." And I really think that's true. I think if you automate out all the mundane, what's left is the stuff that's really interesting, right? And that's kind of how we view our job is to automate all the stuff that's getting in the way of highly skilled people doing their job taking care of their customers. >> I always love the story when IBM super computer beat Garry Kasparov at chess. You've heard this a million times. Kasparov didn't just say, "All right we're done." He created a competition, and he beat the computer, and now the greatest chess player in the world is a combination of human and machine. So it's that creativity, that common atoria factor that's drives the machine. >> It's actually better than the machine only, right? >> The creativity is going to change the game. Scott Francis, entrepreneur, founder, co-founder and CEO of BP3 in Austin. Thanks for joining us, appreciate it. More live coverage here. Stay with us, theCube is at IBM Interconnect here in Las Vegas. More great interviews after this short break. (upbeat techno music)

>>To the Seaport in Boston, Massachusetts, everybody's buzzing. The Bruins are playing tonight. They tied it up. The Celtics tied it up last night. We're excited. We don't talk about the red Sox. Red Sox are getting struggles, but you know, we have good distractions. Paul goer is here. He's the president and chief executive officer at red hat and also a Boston fan of great to see, of course, you too. >>Nice to see you guys, you know, it's been a, it's been a while. >><laugh> yeah, we saw you, you know, online and virtually for a couple of years there, but, uh, you know, we've been doing red hat summit for a long, long time. Yeah, of course we were talking earlier. It's just much more intimate, kind of a VIP event, a few more suit jackets here. You know, I got my tie on, so I don't get too much grief. I usually get grief when I wear a tie of red hat summit, but it's a different format this year. Compressed keynotes. Your keynote was great. The new normal, sometimes we call it the new abnormal <laugh>, uh, but you know, how do you feel? >>I, I, I, I feel great. First of all, you know, combination today, virtual audience in, in house audience here today. I think we're gonna see a lot of that in the future. I mean, we designed the event around that and I, I think it, I think it played pretty well. Kudos, kudos to our team. You're right. It's, it's, it's a bit more intimate even the way it was set up, but those are the conversations we like having with our customers and our partners, much more partner centric, uh, as well right now, as well. >>You know, we were talking about, you know, hybrid cloud. It was kind of, you know, it was a good marketing term. And, but now it's, it's, it's become the real thing. I've said many times the, the definition of cloud is changing. It's expanding it's no, the cloud is no longer this remote set of services, you know, somewhere up in the cloud, it's on prem connecting to a cloud across clouds, out to the edge and you need capabilities that work everywhere. And that's what red hat did. The market's just swimming toward you. >>Yeah. I mean, you look at it, you know, I was, uh, you know, if you look at it, you know, the clouds are powerful unto themselves, right? The clouds are powerful unto themselves. They're all different. Right? And that that's, I mean, hardware vendors were, were similar, but different, same thing. You need that connective tissue across, across the whole thing. I mean, as I said, in my keynote today, I remember talking to some of our CIOs and customers 10 years ago and they said, we're going 90% of our apps tomorrow to one cloud. And we knew that wasn't practical because of course the clouds are built from Linux. So we knew it was underneath the hood and, and what's happened. It's taken some time, but as they started to get into that, they started to see, well, maybe one cloud's more suited for one application than the other, these apps. You may have to keep on premise, but you know, what really exploded at the, the, the hybrid thing, the edge. Now they're putting things at the edge, the GM announcement tell you, I know you're gonna talk to Francis. Yeah, yeah. Later. I mean, that's, that's a mini data center in, in every cloud, but that's still under the purview of the CIO, you know? So, so, so that's what hybrid's all about is tying all those pieces together, cuz it got more powerful, but it also more complex. >>You mentioned being the connective tissue, but we don't hear as much talk about multi-cloud seems to me, as we used to this conference has been all about hybrid cloud. You don't really talk about multi-cloud. How important is that to the red hat strategy, being that consistent layer? >>It's probably my mistake or our mistake because multi's more prevalent and more important than just hybrid alone. I mean, hybrid hybrid started from on-premise to one part to any one particular cloud. That was the, the first thought of hybrid. But as I said, as, as, as um, some of the cloud providers became so big, um, every, every CIO I talked to, whether they know whether they know it or not most do are in a multi environment for a whole bunch of reasons, right. You know, one cloud provider might be better in a different part of the world. And another one cloud provider might have a better service than another. Some just don't like to be stuck to one it's it's really hybrid multi. We should, we should train ourselves to every time we say hybrid, say multi, because that's really, that's really what it is. It, I think that happened overnight with, with Microsoft, you know, with Microsoft they've, they've, they've really grown over the last few years, so has Amazon for that matter. But Microsoft really coming up is what really made it a, a high, a multi world. >>Microsoft's remarkable what, what they're doing. But I, I, I have a different thinking on this. I, I heard Chuck Whitten last week at, at the Dell conference he used, he said used the phrase a multicloud, uh, by default versus multi-cloud by design. And I thought that was pretty interesting because I've said that multi-cloud is largely multi-vendor, you know? And so hybrid has implications, right? We, we bring and a shesh came up with a new term today. Metacloud I use Supercloud I like Metacloud better because something's happening, Paul. It feels like there's this layer abstraction layer that the underlying complexity is hidden. Think about OpenShift. Yeah. I could buy, I could get OpenShift for free. Yeah. I mean, I could, and I could cobble together and stitch together at 13, 15 dozens of different services and replicate, but I don't, I don't want that complexity. I want you to hide that complexity. I want, I'd rather spend money on your R and D than my engineering. So something's changing. It feels like >>You buy that. I totally buy that. I mean, you know, I, I, I'm gonna try to not make this sound like a marketing thing because it's not, not fair enough. Right. I mean, I'm engineer at heart, you know that, so, >>Okay. >>I really look to what we're trying to do is we're building a hybrid multi cloud. I mean that we, I look at us as a cloud provider spanning the hybrid multi all the way out to the edge world, but we don't have the data centers in the back. Like the cloud providers do in and by that is you're seeing our products being consumed more like cloud services because that's what our customers are demanding. Our, our products now can be bought out of the various marketplaces, et cetera. You're seeing different business models from us. So, uh, you're seeing, uh, committed spend, for example, like the cloud providers where a customer will buy so much up front and sort of just work it down. You're seeing different models on how they're consumed, consumption, based pricing. These, these are all things that came from the cloud providers and customers buying like that. >>They now want that across their entire environment. They don't wanna buy differently on premise or in one cloud and they don't wanna develop differently. They don't wanna operate differently. They don't wanna have to secure it differently. Security's the biggest thing with, with our, with our customers, because hybrid's powerful, but you no longer have the, you know, your security per perimeter, no longer the walls of your data center. You know, you're, you're responsible as a CIO. You're responsible for every app. Yeah. No matter where it's running, if that's the break in point, you're responsible for that. So that's why we've done things like, you know, we cried stack rocks. We've, we've built it into the container Kubernetes platform that spans those various footprints because you no longer can just do perimeter security because the perimeter is, is very, very, very large right now >>Diffuse. One of the thing on the multi-cloud hyper skills, I, I, red hat's never been defensive about public cloud. You, I think you look at the a hundred billion dollars a year in CapEx spend that's a gift to the industry. Not only the entire it industry, but, but the financial services companies and healthcare companies, they can build their own hybrid clouds. Metacloud super clouds taking advantage of that, but they still need that connective tissue. And that's where >>We products come in. We welcome our customers to go to, to the public cloud. Um, uh, look, it's it's. I said a long time ago, we said a long time it was gonna be a hybrid. Well, I should have said multi anybody said hybrid, then it's gonna be a hybrid world. It is. And it doesn't matter if it's a 20, 80, 80, 20, 40, 60, 60, 40. It's not gonna be a hundred percent anywhere. Yeah. And, and so in that, in that definition, it's a hybrid multi world. >>I wanna change the tune a little bit because I've been covering IBM for 40 years and seen a lot of acquisitions and see how they work. And usually it follows the same path. There's a commitment to leaving the acquire company alone. And then over time that fades, the company just becomes absorbed. Same thing with red hat. It seems like they're very much committed to, to, to leaving you alone. At least they said that upon the acquisition, have they followed through on that promise? >>I have to tell you IBM has followed through on every commitment they've made, made to us. I mean, I, I owe it, I owe a lot of it to Arvin. Um, he was the architect of the deal, right. Um, we've known each other for a long time. Um, he's a great guy. Um, he, uh, he, he believes in it. It's not, he's not just doing it that way because he thinks, um, something bad will happen if he doesn't, he's doing it that way. Cuz he believes in that our ecosystem is what made us. I mean, I mean, even here it's about the partners in the ecosystem. If you look at what made REL people think what made red hat as a company was support, right. Support's really important. Small piece of the value proposition life cycle supports certainly their life cycle a 10 year life cycle just came out of a, a, a customer conference asking about the life cycle and could we extend it to 15 years? You know? Um, the ecosystem is probably the most important part of, of, of, of the, of the overall value proposition. And Arvin knows in IBM knows that, you know, we have to be neutral to be able to do everything the same for all of our ecosystem partners. Some that are IBM's competitors, even. So, >>So we were noticing this morning, I mean, aside from a brief mention of power PC and the IBM logo during, at one point, there was no mention of IBM during the keynote sessions this morning. Is that intentional? Or is that just >>No, no, it it's, it's not intentional. I mean, I think that's part of, we have our strategy to drive and we're, we're driving our, our strategy. We, we, we IBM great partner. We look at them as a partner just as we do our, our many other partners and we won't, you know, we wouldn't, we wouldn't do something with our products, um, for I with IBM that we wouldn't offer to our, our entire ecosystem. >>But there is a difference now, right? I don't know these numbers. Exactly. You would know though, but, but pre 2019 acquisition red hat was just, I think north of 3 billion in revenue growing at maybe 12% a year. Something like that, AR I mean, we hear on the earnings calls, 21% growth. I think he's publicly said you're north of 5 billion or now I don't know how much of that consulting gets thrown in. IBM likes to, you know, IBM math, but still it's a much bigger business. And, and I wonder if you could share with us, obviously you can't dig into the numbers, but have you hired more people? I would imagine. I mean, sure. Like what's been different from that standpoint in terms of the accelerant to your >>Business. Yeah. We've been on the same hiring cycle percentage wise as, as we, we always were. I mean, I think the best way to characterize the relationship and where they've helped is, um, Arvin, Arvin will say, IBM can be opinionated on red hat, but not the other way around <laugh>. So, so what that, what that means is they had a lot of, they had, they had a container based Linux platform. Yeah, right, right. They, they had all their, they were their way of moving to the cloud was that when we came in, they actually stopped that. And they standardized on OpenShift across all of their products. We're now the vehicle that brings the blue software products to the hybrid cloud. We are that vehicle that does it. So I think that's, that's how, that's how they, they look about it. I mean, I know, I mean in IBM consulting, I know, I know they have a great relationship with Microsoft of course. >>Right. And so, so that's, that's how to really look at it. They they're opinionated on us where we not the other way around, but that, but they're a great partner. And even if we're at two separate companies, we'd do be doing all the same things we're doing with them. Now, what they do do for us can do for us is they open a lot of doors in many cases. I mean, IBM's been around for over a hundred years. So in many cases, they're in, in, in the C-suite, we, we may be in the C suite, but we may be one layer down, one, two layers down or something. They, they can, they help us get access. And I think that's been a, a part of the growth as well as is them talking into their, into, into their >>Constituents. Their consulting's one of the FA if not the fastest growing part of their business. So that's kind of the tip of the spear for application modernization, but enough on IBM you said something in your keynote. That was really interesting to me. You said, you, you, you didn't use the word hardware Renaissance, but that my interpretation was you're expecting the next, you know, several years to be a hardware Renaissance. We, we certainly have done relationships with arm. You mentioned Nvidia and Intel. Of course, you've had relationships with Intel for a long time. And we're seeing just the spate of new hardware developments, you know, does hardware matter? I'll ask you, >>Oh, oh, I mean the edge, as I said, you're gonna see hardware innovation out in the edge, software innovation as well. You know, the interesting part about the edge is that, you know, obviously remade red hat. What we did with REL was we did a lot of engineering work to make every hardware architecture when, when it was, when, when the world was just standalone servers, we made every hardware architecture just work out of the box. Right? And we did that in such, because with an open source development model. So embedded in our psyche, in our development processes is working upstream, bringing it downstream 10 years, support all of that kind of thing. So we lit up all that hardware. Now we go out to the edge, it's a whole new, different set of hardware innovation out at the edge. We know how to do that. >>We know how to, we know how to make hardware, innovation safe for the customer. And so we're bringing full circle and you have containers embedded in, in Linux and REL right now as well. So we're actually with the edge, bringing it all full circle back to what we've been doing for 20 plus years. Um, on, on the hardware side, even as a big part of the world, goes to containers and hybrid in, in multi-cloud. So that's why we're so excited about, about, about the edge, you know, opportunity here. That's, that's a big part of where hybrid's going. >>And when you guys talk about edge, I mean, I, I know a lot of companies will talk about edge in the context of your retail location. Okay. That's fine. That's cool. That's edge or telco that that's edge. But when you talk about, um, an in vehicle operating system, right. You know, that's to me the far edge, and that's where it gets really interesting, massive volumes, different architectures, both hardware and software. And a lot of the data may stay. Maybe it doesn't even get persisted. May maybe some comes back to the club, but that's a new >>Ballgame. Well, think about it, right? I mean, you, if you listen, I think you, right. My talk this morning, how many changes are made in the Linux kernel? Right? You're running in a car now, right? From a safety perspective. You wanna update that? I mean, look, Francis talked about it. You'll talk to Francis later as well. I mean, you know, how many, how many in, in your iPhone world Francis talked about this this morning, you know, they can, they can bring you a whole new world with software updates, the same in the car, but you have to do it in such a way that you still stay with the safety protocols. You're able to back things out, things like that. So it's open source, but getting raw upstream, open source and managing itself yourself, I just, I'm sorry. It takes a lot of experience to be able to be able to do those kinds of things. So it's secure, that's insecure. And that's what that's, what's exciting about it. You look at E the telco world look where the telco world came from in the telco world. It was a hardware stack from the hardware firmware operating system, every service, whether it was 9 1, 1 or 4, 1, 1 was its own stack. Yep. In the 4g, 3g, >>4g >>Virtualized. Now, now it's all software. Yeah. Now it's all software all the way out to the cell tower. So now, so, so now you see vendors out there, right? As an application, as a container based application, running out, running in the base of a cell tower, >>Cell tower is gonna be a little mini data >>Center. Yeah, exactly. Because we're in our time here asking quickly, because you've been at red hat a long time. You, you, you, uh, architected a lot of the reason they're successful is, is your responsibility. A lot of companies have tried to duplicate the red hat model, the, the service and support model. Nobody has succeeded. Do you think anybody ever will or will red hat continue to be a unicorn in that respect? >>No, I, I, I think, I think it will. I think open source is making it into all different parts of technology. Now I have to tell you the, the reason why we were able to do it is we stayed. We stayed true to our roots. We made a decision a long time ago that we weren't gonna put a line, say everything below the line was open and above the line was closed. Sometimes it's hard sometimes to get a differentiation with the competition, it can be hard, but we've stayed true to that. And I, to this day, I think that's the thing that's made us is never a confusion on if it's open or not. So that forces us to build our business models around that as well. But >>Do you have a differentiated strategy? Talk about that. What's your what's your differentiation >>Are, are, well, I mean, with the cloud, a differentiation is that common cloud platform across I differentiate strategy from an open source perspective is to, to sort make open source consumable. And, and it's even more important now because as Linux Linux is the base of everything, there's not enough skills out there. So even, even a container platform like open source op like OpenShift, could you build your own? Certainly. Could you keep it updated? Could you keep it updated without breaking all the applications on top? Do you have an ecosystem around it? It's all of those things. It was, it was the support, the, the, the hardening the 10 year to predictability the ecosystem. That was, that was, that is the secret. I mean, we even put the secret out as open. >>Yeah, <laugh> right. Free, like a puppy, as they say. All right, Paul, thanks so much for coming back in the cubes. Great to see you face to face. Nice to see you guys get it. All right. Keep it right there. Dave Valante for Paul Gill, you're watching the cubes coverage of red hat summit, 2022 from Boston. Be right back.

>>From the Bellagio hotel in Las Vegas. It's the cube covering UI path forward for brought to you by UI path. >>Good morning. Welcome to the cubes coverage of UI path forward for day two. Live from the Bellagio in Las Vegas. I'm Lisa Martin with Dave Velante, Dave. We had a great action packed day yesterday. We're going to have another action packed day today. We've got the CEO coming on. We've got customers coming on, but there's been a lot in the news last 24 hours. Facebook, what are your thoughts? >>Yeah, so wall street journal today, headline Facebook hearing fuels call for rain in on big tech. All right, everybody's going after big tech. Uh, for those of you who missed it, 60 minutes had a, uh, an interview with the whistleblower. Her name is, uh, Francis Haugen. She's very credible, just a little background. I'll give you my take. I mean, she was hired to help set Facebook straight and protect privacy of individuals, of children. And I really feel like, again, she, she didn't come across as, as bitter or antagonistic, but, but I feel as though she feels betrayed, right, I think she was hired to do a job. They lured her in to say, Hey, this is again, just my take to say, Hey, we want your help in earnest to protect the privacy of our users, our citizens, et cetera. And I think she feels betrayed because she's now saying, listen, this is not cool. >>You hired us to do a job. We in earnest, went in and tried to solve this problem. And you guys kind of ignored it and you put profit ahead of safety. And I think that is the fundamental crux of this. Now she made a number of really good points in her hearing yesterday and I'll, and we'll try to summarize, I mean, there's a lot of putting advertising revenue ahead of children's safety and, and, and others. The examples they're using are during the 2020 election, they shut down any sort of negative conversations. They would be really proactive about that, but after the election, they turned it back on and you know, we all know what happened on January 6th. So there's sort of, you know, the senators are trying that night. Um, the second thing is she talked about Facebook as a wall garden, and she made the point yesterday at the congressional hearings that Google actually, you can data scientists, anybody can go download all the data that Google has on you. >>You and I can do that. Right? There's that website that we've gone to and you look at all the data Google has and you kind of freak out. Yeah, you can't do that with Facebook, right? It's all hidden. So it's kind of this big black box. I will say this it's interesting. The calls for breaking up big tech, Bernie Sanders tweeted something out yesterday said that, uh, mark Zuckerberg was worth, I don't know. I think 9 billion in 2007 or eight or nine, whatever it was. And he's worth 122 billion today, which of course is mostly tied up in Facebook stock, but still he's got incredible wealth. And then Bernie went on his red it's time to break up big tech. It's time to get people to pay their fair share, et cetera. I'm intrigued that the senators don't have as much vigilance around other industries, whether it's big pharma, food companies addicting children to sugar and the like, but that doesn't let Facebook. >>No, it doesn't, but, but you ha you bring up a good point. You and I were chatting about this yesterday. What the whistleblower is identifying is scary. It's dangerous. And the vast majority, I think of its users, don't understand it. They're not aware of it. Um, and why is big tech being maybe singled out and use as an example here, when, to your point, you know, the addiction to sugar and other things are, uh, have very serious implications. Why is big tech being singled out here as the poster child for what's going wrong? >>Well, and they're comparing it to big tobacco, which is the last thing you want to be compared to as big tobacco. But the, but the, but the comparison is, is valid in that her claim, the whistleblower's claim was that Facebook had data and research that it knew, it knows it's hurting, you know, you know, young people. And so what did it do? It created, you know, Instagram for kids, uh, or it had 600,000. She had another really interesting comment or maybe one of the senators did. Facebook said, look, we scan our records and you know, kids lie. And we, uh, we kicked 600,000 kids off the network recently who were underaged. And the point was made if you have 600,000 people on your network that are underage, you have to go kill. That's a problem. Right? So now the flip side of this, again, trying to be balanced is Facebook shut down Donald Trump and his nonsense, uh, and basically took him off the platform. >>They kind of thwarted all the hunter Biden stuff, right. So, you know, they did do some, they did. It's not like they didn't take any actions. Uh, and now they're up, you know, in front of the senators getting hammered. But I think the Zuckerberg brings a lot of this on himself because he put out an Instagram he's on his yacht, he's drinking, he's having fun. It's like he doesn't care. And he, you know, who knows, he probably doesn't. She also made the point that he owns an inordinate percentage and controls an inordinate percentage of the stock, I think 52% or 53%. So he can kind of do what he wants. And I guess, you know, coming back to public policy, there's a lot of narrative of, I get the billionaires and I get that, you know, the Mo I'm all for billionaires paying more taxes. >>But if you look at the tax policies that's coming out of the house of representatives, it really doesn't hit the billionaires the way billionaires can. We kind of know the way that they protect their wealth is they don't sell and they take out low interest loans that aren't taxed. And so if you look at the tax policies that are coming out, they're really not going after the billionaires. It's a lot of rhetoric. I like to deal in facts. And so I think, I think there's, there's a lot of disingenuous discourse going on right now at the same time, you know, Facebook, they gotta, they gotta figure it out. They have to really do a better job and become more transparent, or they are going to get broken up. And I think that's a big risk to the, to their franchise and maybe Zuckerberg doesn't care. Maybe he just wants to give it a, give it to the government, say, Hey, are you guys are on? It >>Happens. What do you think would happen with Amazon, Google, apple, some of the other big giants. >>That's a really good question. And I think if you look at the history of the us government, in terms of ant anti monopolistic practices, it spent decade plus going after IBM, you know, at the end of the day and at the same thing with Microsoft at the end of the day, and those are pretty big, you know, high profiles. And then you look at, at T and T the breakup of at T and T if you take IBM, IBM and Microsoft, they were slowed down by the U S government. No question I've in particular had his hands shackled, but it was ultimately their own mistakes that caused their problems. IBM misunderstood. The PC market. It gave its monopoly to Intel and Microsoft, Microsoft for its part. You know, it was hugging windows. They tried to do the windows phone to try to jam windows into everything. >>And then, you know, open source came and, you know, the world woke up and said, oh, there's this internet that's built on Linux. You know, that kind of moderated by at T and T was broken up. And then they were the baby bells, and then they all got absorbed. And now you have, you know, all this big, giant telcos and cable companies. So the history of the U S government in terms of adjudicating monopolistic behavior has not been great at the same time. You know, if companies are breaking the law, they have to be held accountable. I think in the case of Amazon and Google and apple, they, a lot of lawyers and they'll fight it. You look at what China's doing. They just cut right to the chase and they say, don't go to the, they don't litigate. They just say, this is what we're doing. >>Big tech, you can't do a, B and C. We're going to fund a bunch of small startups to go compete. So that's an interesting model. I was talking to John Chambers about this and he said, you know, he was flat out that the Western way is the right way. And I believe in, you know, democracy and so forth. But I think if, to answer your question, I think they'll, they'll slow it down in courts. And I think at some point somebody's going to figure out a way to disrupt these big companies. They always do, you know, >>You're right. They always do >>Right. I mean, you know, the other thing John Chambers points out is that he used to be at 1 28, working for Wang. There is no guarantee that the past is prologue that because you succeeded in the past, you're going to succeed in the future. So, so that's kind of the Facebook break up big tech. I'd like to see a little bit more discussion around, you know, things like food companies and the, like >>You bring up a great point about that, that they're equally harmful in different ways. And yet they're not getting the visibility that a Facebook is getting. And maybe that's because of the number of users that it has worldwide and how many people depend on it for communication, especially in the last 18 months when it was one of the few channels we had to connect and engage >>Well. And, and the whistleblower's point, Facebook puts out this marketing narrative that, Hey, look at all this good we're doing in reality. They're all about the, the, the advertising profits. But you know, I'm not sure what laws they're breaking. They're a public company. They're, they're, they have a responsibility to shareholders. So that's, you know, to be continued. The other big news is, and the headline is banks challenge, apple pay over fees for transactions, right? In 2014, when apple came up with apple pay, all the banks lined up, oh, they had FOMO. They didn't want to miss out on this. So they signed up. Now. They don't like the fact that they have to pay apple fees. They don't like the fact that apple introduced its own credit card. They don't like the fact that they have to pay fees on monthly recurring charges on your, you know, your iTunes. >>And so we talked about this and we talk about it a lot on the cube is that, that in, in, in, in his book, seeing digital David, Michelle, or the author talked about Silicon valley broadly defined. So he's including Seattle, Microsoft, but more so Amazon, et cetera, has a dual disruption agenda. They're not only trying to disrupt horizontally the technology industry, but they're also disrupting industry. We talked about this yesterday, apple and finances. The example here, Amazon, who was a bookseller got into cloud and is in grocery and is doing content. And you're seeing these a large companies, traverse industry value chains, which have historically been very insulated right from that type of competition. And it's all because of digital and data. So it's a very, pretty fascinating trends going on. >>Well, from a financial services perspective, we've been seeing the unbundling of the banks for a while. You know, the big guys with B of A's, those folks are clearly concerned about the smaller, well, I'll say the smaller FinTech disruptors for one, but, but the non FinTech folks, the apples of the world, for example, who aren't in that industry who are now to your point, disrupting horizontally and now going after individual specific industries, ultimately I think as consumers we want, whatever is going to make our lives easier. Um, do you ever, ever, I always kind of scratch my nose when somebody doesn't take apple pay, I'm like, you don't take apple pay so easy. It's so easy to make this easy for me. >>Yeah. Yeah. So it's, it's going to be really interesting to see how this plays out. I, I do think, um, you know, it begs the question when will banks or Willbanks lose control of the payment systems. They seem to be doing that already with, with alternative forms of payment, uh, whether it's PayPal or Stripe or apple pay. And then crypto is, uh, with, with, with decentralized finance is a whole nother topic of disruption and innovation, >>Right? Well, these big legacy institutions, these organizations, and we've spoke with some of them yesterday, we're going to be speaking with some of them today. They need to be able to be agile, to transform. They have to have the right culture in order to do that. That's the big one. They have to be willing. I think an open to partner with the broader ecosystem to unlock more opportunities. If they want to be competitive and retain the trust of the clients that they've had for so long. >>I think every industry has a digital disruption scenario. We used to always use the, don't get Uber prized example Uber's coming on today, right? And, and there isn't an industry, whether it's manufacturing or retail or healthcare or, or government that isn't going to get disrupted by digital. And I think the unique piece of this is it's it's data, data, putting data at the core. That's what the big internet giants have done. That's what we're hearing. All these incumbents try to do is to put data. We heard this from Coca-Cola yesterday, we're putting data at the core of our company and what we're enabling through automation and other activities, uh, digital, you know, a company. And so, you know, can these, can these giants, these hundred plus year old giants compete? I think they can because they don't have to invent AI. They can work with companies like UI path and embed AI into their business and focused on, on what they do best. Now, of course, Google and Amazon and Facebook and Microsoft there may be going to have the best AI in the world. But I think ultimately all these companies are on a giant collision course, but the market is so huge that I think there's a lot of, >>There's a tremendous amount of opportunity. I think one of the things that was exciting about talking to one, the female CIO of Coca-Cola yesterday, a hundred plus old organization, and she came in with a very transformative, very different mindset. So when you see these, I always appreciate when I say legacy institutions like Coca-Cola or Merck who was on yesterday, blue cross blue shield who's on today, embracing change, cultural change going. We can't do things the way we used to do, because there are competitors in that review mirror who are smaller, they're more nimble, they're faster. They're going to be, they're going to take our customers away from us. We have to deliver this exceptional customer and employee experience. And Coca-Cola is a great example of one that really came in with CA brought in a disruptor in order to align digital with the CEO's thoughts and processes and organization. These are >>Highly capable companies. We heard from the head of finance at, at applied materials today. He was also coming on. I was quite, I mean, this is a applied materials is really strong company. They're talking about a 20 plus billion dollar company with $120 billion market cap. They supply semiconductor equipment and they're a critical component of the semiconductor supply chain. And we all know what's going on in semiconductors today with a huge shortage. So they're a really important company, but I was impressed with, uh, their finance leaders vision on how they're transforming the company. And it was not like, you know, 10 years out, these were not like aspirational goals. This is like 20, 19, 20, 22. Right. And, and really taking costs out of the business, driving new innovation. And, and it's, it was it's, it's refreshing to me Lisa, to see CFOs, you know, typically just bottom line finance focused on these industry transformations. Now, of course, at the end of the day, it's all about the bottom line, but they see technology as a way to get there. In fact, he put technology right in the middle of his stack. I want to ask him about that too. I actually want to challenge him a little bit on it because he had that big Hadoop elephant in the middle and this as an elephant in the room. And that picture, >>The strategy though, that applied materials had, it was very well thought out, but it was also to your point designed to create outcomes year upon year upon year. And I was looking at some of the notes. I took that in year one, alone, 274 automations in production. That's a lot, 150,000 in annual work hours automated 124 use cases they tackled in one year. >>So I want to, I want to poke at that a little bit too. And I, and I did yesterday with some guests. I feel like, well, let's see. So, um, I believe it was, uh, I forget what guests it was, but she said we don't put anything forward that doesn't hit the income statement. Do you remember that? Yes, it was Chevron because that was pushing her. I'm like, well, you're not firing people. Right. And we saw from IDC data today, only 13% of organizations are saying, or, or, or the organizations at 13% of the value was from reduction in force. And a lot of that was probably in plan anyway, and they just maybe accelerated it. So they're not getting rid of headcount, but they're counting hours saved. So that says to me, there's gotta be an normally or often CFOs say, well, it's that soft dollars because we're redeploying folks. But she said, no, it hits the income statement. So I don't, I want to push a little bit and see how they connect the dots, because if you're going to save hours, you're going to apply people to new work. And so either they're generating revenue or cutting costs somewhere. So, so there's another layer that I want to appeal to understand how that hits the income state. >>Let's talk about some of that IDC data. They announced a new white paper this morning sponsored by UI path. And I want to get your perspectives on some of the stats that they talked about. They were painting a positive picture, an optimistic picture. You know, we can't talk about automation without talking about the fear of job loss. They've been in a very optimistic picture for the actual gains over a few year period. What are your thoughts about that? Especially when we saw that stat 41% slowed hiring. >>Yeah. So, well, first of all, it's a sponsored study. So, you know, and of course the conferences, so it's going to be, be positive, but I will say this about IDC. IDC is a company I would put, you know, forest they're similar. They do sponsored research and they're credible. They don't, they, they have the answer to their audience, so they can't just out garbage. And so it has to be defensible. So I give them credit there that they won't just take whatever the vendor wants them to write and then write it. I've used to work there. And I, and I know the culture and there's a great deal of pride in being able to defend what you do. And if the answer doesn't come out, right, sorry, this is the answer. You know, you could pay a kill fee or I dunno how they handle it today. >>But, but, so my point is I think, and I know the people who did that study, many of them, and I think they're pretty credible. I, I thought by the way, you, to your 41% point. So the, the stat was 13% are gonna reduce head count, right? And then there were two in the middle and then 41% are gonna reduce or defer hiring in the future. And this to me, ties into the Erik Brynjolfsson and, and, and, uh, and, and McAfee work. Andy McAfee work from MIT who said, look, initially actually made back up. They said, look at machines, have always replaced humans. Historically this was in their book, the second machine age and what they said was, but for the first time in history, machines are replacing humans with cognitive functions. And this is sort of, we've never seen this before. It's okay. That's cool. >>And their, their research suggests that near term, this is going to be a negative economic impact, sorry, negative impact on jobs and salaries. And we've, we've generally seen this, the average salary, uh, up until recently has been flat in the United States for years and somewhere in the mid fifties. But longterm, their research shows that, and this is consistent. I think with IDC that it's going to help hiring, right? There's going to be a boost buddy, a net job creator. And there's a, there's a, there's a chasm you've got across, which is education training and skill skillsets, which Brynjolfsson and McAfee focused on things that humans can do that machines can't. And you have this long list and they revisited every year. Like they used to be robots. Couldn't walk upstairs. Well, you see robots upstairs all the time now, but it's empathy, it's creativity. It's things like that. >>Contact that humans are, are much better at than machines, uh, even, even negotiations. And, and so, so that's, those are skills. I don't know where you get those skills. Do you teach those and, you know, MBA class or, you know, there's these. So their point is there needs to be a new thought process around education, public policy, and the like, and, and look at it. You can't protect the past from the future, right? This is inevitable. And we've seen this in terms of economic activity around the world countries that try to protect, you know, a hundred percent employment and don't let competition, they tend to fall behind competitively. You know, the U S is, is not of that category. It's an open market. So I think this is inevitable. >>So a lot about upskilling yesterday, and the number of we talked with PWC about, for example, about what they're doing and a big focus on upscaling. And that was part of the IDC data that was shared this morning. For example, I'll share a stat. This was a survey of 518 people. 68% of upscaled workers had higher salaries than before. They also shared 57% of upskilled workers had higher roles and their enterprises then before. So some, again, two point it's a sponsored study, so it's going to be positive, but there, there was a lot of discussion of upskilling yesterday and the importance on that education, because to your point, we can't have one without the other. You can't give these people access to these tools and not educate them on how to use it and help them help themselves become more relevant to the organization. Get rid of the mundane tasks and be able to start focusing on more strategic business outcome, impacting processes. >>We talked yesterday about, um, I use the example of, of SAP. You, you couldn't have predicted SAP would have won the ERP wars in the early to mid 1990s, but if you could have figured out who was going to apply ERP to their businesses, you know what, you know, manufacturing companies and these global firms, you could have made a lot of money in the stock market by, by identifying those that were going to do that. And we used to say the same thing about big data, and the reason I'm bringing all this up is, you know, the conversations with PWC, Deloitte and others. This is a huge automation, a huge services opportunity. Now, I think the difference between this and the big data era, which is really driven by Hadoop is it was big data was so complicated and you had a lack of data scientists. >>So you had to hire these services firms to come in and fill those gaps. I think this is an enormous services opportunity with automation, but it's not because the software is hard to get to work. It's all around the organizational processes, rethinking those as people process technology, it's about the people in the process, whereas Hadoop and the big data era, it was all about the tech and they would celebrate, Hey, this stuff works great. There are very few companies really made it through that knothole to dominate as we've seen with the big internet giants. So you're seeing all these big services companies playing in this market because as I often say, they like to eat at the trough. I know it's kind of a pejorative, but it's true. So it's huge, huge market, but I'm more optimistic about the outcomes for a broader audience with automation than I was with, you know, big data slash Hadoop, because I think the software as much, as much more adoptable, easier to use, and you've got the cloud and it's just a whole different ball game. >>That's certainly what we heard yesterday from Chevron about the ease of use and that you should be able to see results and returns very quickly. And that's something too that UI path talks about. And a lot of their marketing materials, they have a 96, 90 7% retention rate. They've done a great job building their existing customers land and expand as we talked about yesterday, a great use case for that, but they've done so by making things easy, but hearing that articulated through the voice of their customers, fantastic validation. >>So, you know, the cube is like a little, it's like a interesting tip of the spirits, like a probe. And I will tell you when I, when we first started doing the cube and the early part of the last decade, there were three companies that stood out. It was Splunk service now and Tableau. And the reason they stood out is because they were able to get customers to talk about how great they were. And the light bulb went off for us. We were like, wow, these are three companies to watch. You know, I would tell all my wall street friends, Hey, watch these companies. Yeah. And now you see, you know, with Frank Slootman at snowflake, the war, the cat's out of the bag, everybody knows it's there. And they're expecting, you know, great things. The stock is so priced to perfection. You could argue, it's overpriced. >>The reason I'm bringing this up is in terms of customer loyalty and affinity and customer love. You're getting it here. Absolutely this ecosystem. And the reason I bring that up is because there's a lot of questions in the, in the event last night, it was walking around. I saw a couple of wall street guys who came up to me and said, Hey, I read your stuff. It was good. Let's, let's chat. And there's a lot of skepticism on, on wall street right now about this company. Right? And to me, that's, that's good news for you. Investors who want to do some research, because the words may be not out. You know, they, they, they gotta prove themselves here. And to me, the proof is in the customer and the lifetime value of that customer. So, you know, again, we don't give stock advice. We, we kind of give fundamental observations, but this stock, I think it's trading just about 50. >>Now. I don't think it's going to go to 30, unless the market just tanks. It could have some, you know, if that happens, okay, everything will go down. But I actually think, even though this is a richly priced stock, I think the future of this company is very bright. Obviously, if they continue to execute and we're going to hear from the CEO, right? People don't know Daniel, Denise, right? They're like, who is this guy? You know, he started this company and he's from Eastern Europe. And we know he's never have run a public company before, so they're not diving all in, you know? And so that to me is something that really pay attention to, >>And we can unpack that with him later today. And we've got some great customers on the program. You mentioned Uber's here. Spotify is here, applied materials. I feel like I'm announcing something on Saturday night. Live Uber's here. Spotify is here. All right, Dave, looking forward to a great action packed today. We're going to dig more into this and let's get going. Shall we let's do it. All right. For David Dante, I'm Lisa Martin. This is the cube live in Las Vegas. At the Bellagio. We are coming to you presenting UI path forward for come back right away. Our first guest comes up in just a second.

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we finally, it feels like the on prem guys are finally getting their cloud act together. Um it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean the public cloud has been around for about 10 years and still only 20% around 20% of the data in 20% of the applications are there now will be a very important ones and I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud. And I feel like when amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have a classic on, on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's, it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very, a quick way. And uh you know what they've learned, The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. Uh it just depends on what do you want to lock yourself into, but super exciting and what H. P. E. You know, when they further acts in the sea with Green Lake, I think it was four years ago, uh I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine as I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but so, but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but, but I look at it differently, I wonder what your take is. I, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here we're gonna spend $100 billion like the internet. Here you go build. And so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a Polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point. And that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp as you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody's sort of following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see. First off some of their, Um, announcements on, on how it's going and they talked about $428 billion 1200 customers over 900 partners and 95% retention. And I think that's important. Anybody who's in the lead and remember what aws I used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it is A. S. A. P. Hana. Ml apps HPC with Francis, VD. I was Citrus and video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic, with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that Western european carriers use and they're now extending that to five G. And um, so more horizontal, uh, and, and more vertical. That was the one of the big swipes, uh, that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay. Okay. So, so the other piece of that of course is standardization right there there because there was a, there was a, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse. Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way, is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say, the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say the White House customers that HP Yeah, >>Well done. So, you know, and I hear your point about we're 10 years in plus. And to me this is like a mandate. I mean, this is okay, good, good job guys about time. But if I had a, you know, sort of look at the big player, it's like we have an oligopoly here in this, in this business. It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in antony's like, okay, here's what we're going to announce that, you know, a while ago. So, and they seem to have done a good job with Wall Street and they got a simple model, you know, Dell is obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together. So they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale, codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP ES sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these players here, So Cisco, ironically has sells the most software of any of those players that you mentioned, uh with the exception of IBM um and yeah, C I >>CSDB two. Yeah, >>yeah, they're the they're the number two security player, uh Microsoft, number one, So and I think the evaluation on the street uh indicate that shows that I feel like Dell tech is a very broad play because not only do they have servers, storage, networking insecurity, but they also have Pcs and devices. So it's a it's a scale and end play with a focus on VM ware solutions, not exclusively of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table. I think with h P e, what you're bringing the table is nimble. When HP and HP split, the number one thing that I said was that ah, h P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster. And that is what I've seen as it relates to the moat, which is a unique uh competitive advantage. Quite frankly, I'm still looking for that day uh in in in what that is. And I think in this industry it's nearly impossible. And I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that as your can't if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E. When it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development. I think that is a landing place where H P. E already does pretty well can come in and expand its footprint. >>You know, that's really interesting um, observations. So, and I would agree with you. It's kind of like, this is a copycat industry. It's like the west coast offense like the NFL, >>so, >>so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer because all of a sudden you saw companies like them, you always had a long term relationship with H P E, but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really is a execution, isn't it? But go ahead please. >>Dave if I had to pick something that I think HP HPV needs to always be ahead in as a service and listen you and I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're going to have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right? Because it, it I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like Anna Quinn X play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's like you said, outpost was the sort of signal. Okay, We're coming on prem. Clearly the on prem uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere and that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding, dominating in the edge with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do >>you say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge, whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong in Mcdonald's, there's nobody there that can help uh they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road And it has a 5GV 2 x communication cameras can't see around corners. But that car communicating ahead, that ran into the stop sign can, through Vita X talked to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky, let's make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built complete architecture is to do that, putting compute into five G base stations, heck, I just, there was an announcement this week of google cloud and its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kinda whose stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we could take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba, it's fantastic and they also managed it in the right way. I mean it was part of HB but it was, it was managed a lot more loosely then, you know, a company that might get sucked into the board and I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies, but it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security, uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloaded video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion. >>Well, I have you we have a ton of time here, but I I don't pick your brain about intel the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war, you got there battling a. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean he had a great run there and I think it is a very positive move. I've never seen the energy at Intel. Probably in the last 10 years that I've seen today. I actually got a chance to talk with Pat. I visited Pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they built out there networking business, they build out a storage business um with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at A. M. B. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles they integrate into the larger chips called S. O. C. S. B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arm Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the Arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on on the planet. So here we have A and D. Who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S and then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition date. Competition is great. You know, when there's not competition in Cpus and Gpus, we know what happens, right. Uh, the B just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to, and then, oh, by the way, the custom Chip providers, WS has created no less than 15 custom semiconductors started with networking uh, and, and nitro and building out an edge that surrounded the general compute and then it moved to Inferential to for inference trainee um, is about to come out for training Graviton and gravitas to for general purpose CPU and then you've got Apple. So innovation is huge and you know, I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors, software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You've got to 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the qualcomm NXP deal. You just don't know what china is going to do. I think the Eu with some conditions is gonna let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see, wants to see this happen. Japan and Korea. I think we'll allow this china is the odd man out. >>In a word, the future of H. P. E. Is blank >>as a service >>patrick Moorehead. Always a pleasure my friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back. >>Mm.

>>Welcome back to HPD discovered 2021. The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of H. P. S. Big customer event. Patrick Moorehead is here of moor insights and strategy is the number one analyst in the research analyst. Business. Patrick. Always a pleasure. Great to see you, >>David. Great to see you too. And I know you're you're up there fighting for that number one spot to. It's great to see you and it's great to see you in the meetings that were in. But it's even more fun to be here on the cube. I love to be on the cube and every once in a while you'll even call me a friend of the cube, >>unquestionably my friend and so and I can't wait second half. I mean you're traveling right now. We're headed to Barcelona to mobile World Congress later on this month. So so we're gonna we're gonna see each other face to face this year. 100%. So looking forward to that. So, you know, let's get into it. Um you know, before we get into H. P. E. Let's talk a little bit about what you're seeing in the market. We've got, you know, we we we finally, it feels like the on prem guys are finally getting their cloud act together. Um, it's maybe taken a while, but we're seeing as a service models emerge. I think it's resonating with customers. The clearly not everything is moving to the cloud. There's this hybrid model emerging. Multi cloud is real despite what, you know, >>some some >>cloud players want to say. And then there's this edges like jump ball, what are you seeing in the marketplace? >>Yeah. Davis, as exciting as ever in. Just to put in perspective, I mean, the public cloud has been around for about 10 years and still only 20%. Around 20% of the data in 20% of the applications are there now, albeit very important ones. And I'm certainly not a public cloud denier, I never have been, but there are some missing pieces that need to come together. And you know, even five years ago we were debating dave the hybrid cloud and I feel like when Amazon brought out outposts, the conversation was over right now, what you have is cloud native folks building out hybrid and on prem capabilities, you have the classic on prem folks building out hybrid and as a service capabilities. And I really think it boils down 22 things. I mean it's wanting to have more flexibility and you know, I hate to use it because it sounds like a marketing word, but agility, the ability to spin up things and spin down things in a very quick way. And uh, you know what they've learned. The veterans also know, hey, let's do this in a way that doesn't lock us in too much into a certain vendor. And I've been around for a long time. David and I'm a realist too. Well, you have to lock yourself into something. It just depends on what do you want to lock yourself into, but super exciting. And what H. P. E. When they threw the acts in the sea with Green Lake, I think it was four years ago, I think really started to stir the pot. >>You know, you mentioned the term cloud denial, but you know, and I feel like the narrative from, I like to determine is I think you should use the term veteran. You know, it's very, they're ours is the only industry patrick where legacy is a pejorative, but but but so but the point I want to make is I feel like there's been a lot of sort of fear from the veteran players, but I look at it differently. I wonder what you're taking. I think, I think, I think I calculated that the Capex spending by the big four public clouds including Alibaba last year was $100 billion. That's like a gift to the world. Here, we're going to spend $100 billion like the internet here you go build. And and so I, and I feel like companies like HP are finally saying, yeah, we're gonna build, we're gonna build a layer and we're gonna hide the complexity and we're gonna add value on top. What do you think about that? >>Yeah. So I think it's now, I wish, I wish the on prem folks like HP, you would have done it 10 years ago, but I don't think anybody expected the cloud to be as big as it's become over the last 10 years. I think we saw companies like salesforce with sas taking off, but I think it is the right direction because there are advantages to having workloads on prem and if you add an as a service capability on top of the top of that, and let's say even do a Coehlo or a managed service, it's pretty close to being similar to the public cloud with the exception, that you can't necessarily swipe a credit card for a bespoke workload if you're a developer and it is a little harder to scale out. But that is the next step in the equation day, which is having, having these folks make capital expenditures, make them in a polo facility and then put a layer to swipe a credit card and you literally have the public cloud. >>Yeah. So that's, that's a great point and that's where it's headed, isn't it? Um, so let's, let's talk about the horses on the track. Hp. As you mentioned, I didn't realize it was four years ago. I thought it was, wow, That's amazing. So everybody's followed suit. You see, Dallas announced, Cisco has announced, uh, Lenovo was announced, I think IBM as well. So we, so everybody started following suit there. The reality is, is it's taken some time to get this stuff standardized. What are you seeing from, from HP? They've made some additional announcements, discover what's your take on all this. >>Yeah. So HPD was definitely the rabbit here and they were first in the market. It was good to see, first off some of their, Um, announcements on, on how it's going. And they talked about 4, $28 billion 1200 customers over 900 partners and 95% retention. And I think that's important anybody who's in the lead and remember what Aws used to do with the slide with the amount of customers would just get bigger and bigger and bigger and that's a good way to show momentum. I like the retention part two which is 95%. And I think that that says a lot uh probably the more important announcements that they made is they talked about the G. A. Of some of their solutions on Green Lake and whether it was S. A. P. Hana Ml apps HPC with Francis V. I was Citrus in video but they also brought more of what I would call a vertical layer and I'm sure you've seen the vertical ization of all of these cloud and as a service workloads. But what they're doing with Epic with EMR and looseness, with financial payments and Splunk and intel with data and risk analysis and finally, a full stack for telco five G. One of the biggest secrets and I covered this about five years ago is HPV actually has a full stack that western european carriers use and they're now extending that to five G. And um, so more horizontal uh and and more vertical. That was the one of the big swipes uh that I saw that there was a second though, but maybe we can talk about these. >>Yeah. Okay, Okay. So, so the other piece of that of course is standardization right there there because there was a, there was, there was a lot of customization leading up to this and everybody sort of, everybody always had some kind of financial game they can play and say, hey, there's an adversary as a service model, but this is definitely more of a standardized scalable move that H P E. Is making with what they call Lighthouse, Right? >>Yeah, that's exactly right. And I've talked to some Green Lake customers and they obviously gave it kudos or they wouldn't have HP wouldn't have served them up and they wouldn't have been buying it. But they did say, um, it took, it took a while, took some paperwork to get it going. It's not 100% of push button, but that's partially because hp allows you to customize the hardware. You want a one off network adapter. Hp says yes, right. You want to integrate a different type of storage? They said yes. But with Green Lake Lighthouse, it's more of a, what you see is what you get, which by the way is very much like the public cloud or you go to a public cloud product sheet or order sheet. You're picking from a list and you really don't know everything that's underneath the covers, aside from, let's say the speed of the network, the type of the storage and the amount of the storage you get. You do get to pick between, let's say, an intel processor, Graviton two or an M. D processor. You get to pick your own GPU. But that's pretty much it. And HP Lighthouse, sorry, Green Lake Lighthouse uh, is bringing, I think a simplification to Green Lake that it needs to truly scale beyond, let's say, the white house customers at HP. Yeah, >>Well done. So, you know, and I hear your point about 10 years in, you know, plus and to me this is like a mandate. I mean, this is okay. Good, good job guys about time. But if I had a, you know, sort of look at the big players, like, can we have an oligopoly here in this, in this business? It's HP, Cisco, you got Dell Lenovo, you've got, you know, IBM, they're all doing this and they all have a different little difference, you know, waste of skin of catch. And your point about simplicity, it seems like HP HP is all in Antonio's like, okay, here's what we're going to announce that, you know, while ago, so, and they seem to have done a good job with Wall Street and they get a simple model, you know, Dell's obviously bigger portfolio, much more complicated. IBM is even more complicated than that. I don't know so much about Lenovo and in Cisco of course, has acquired a ton of SAAS companies and sort of they've got a lot of bespoke products that they're trying to put together, so they've got, but they do have SAS models. So each of them is coming at it from a different perspective. How do you think? And so and the other point we got lighthouse, which is sort of Phase one, get product market fit. Phase two now is scale codify standardized and then phase three is the moat build your unique advantage that protects your business. What do you see as HP? Es sort of unique value proposition and moat that they can build longer term. >>That's a great, great question. And let me rattle off kind of what I'm seeing that some of these these players here. So Cisco, ironically, has sells the most software of any of those players that you mentioned, uh with the exception of IBM. Um, and yeah, C >>ICSDB two. Yeah, >>yeah, they're the they're the number two security player, uh, Microsoft, number one. So and I think the evaluation on the street uh indicate that shows that I feel like uh Deltek is a is a very broad play because not only do they have servers, storage, networking and security, but they also have Pcs and devices, so it's a it's a scale and end play with a focus on VM ware solutions, not exclusively, of course. Uh And um then you've got Lenovo who is just getting into the as a service game and are gosh, they're doing great in hyper scale, they've got scale there vertically integrated. I don't know if if too many people talk about that, but Lenovo does a lot of their own manufacturing and they actually manufacture Netapp storage solutions as well. So yeah, each of these folks brings a different game to the table, I think with h P E, what your bring to the table is nimble. When HP and HP split, the number one thing that I said was that uh huh H P E is going to have to be so much faster than it offsets the scale that Dell technology has and the HBs credit, although there, I don't think we're getting credit for this in the stock market yet. Um, and I know you and I are both industry folks, not financial folks, but I think their biggest thing is speed and the ability to move faster and that is what I've seen as it relates to the moat, which is a unique uh, competitive advantage. Quite frankly, I'm still looking for that day in, in, in what that is and I think in this industry it's nearly impossible and I would posit that that any, even the cloud folks, if you say, is there something that AWS can do that Azure can't, if it put it put its mind to it or G C P. I don't think so. I think it's more of a kind of land and expand and I think for H P E, when it comes to high performance computing and I'm not just talking about government installations, I'm talking about product development, drug development, I think that is a landing place where H P E already does pretty well can come in and expand its footprint, >>you know, that's really interesting um, observations. So, and I would agree with you, it's kind of like, this is a copycat industry, it's like the west coast offense, like the NFL >>and >>so, so the moat comes from, you know, brand execution and your other point about when HP and HP split, that was a game changer, because all of a sudden you saw companies like them, you always had a long term relationship with H P E but or HP, but then they came out of the woodworks and started to explode. And so it really opened up opportunities. So it really >>is an execution, >>isn't it? But go ahead, please >>Dave if I had to pick something that I think HP HPV needs to always be ahead and as a service and listen, you know, I both know announcements don't mean delivery, but there is correlation between if you start four years ahead of somebody that other company is going to have to put just, I mean they're gonna have to turn that ship and many of its competitors really big ships to be able to get there. So I think what Antonio needs to do is run like hell, right, Because it, it, I think it is in the lead and as a service holistically doesn't mean they're going to be there forever, but they have to stay ahead. They have to add more horizontal solutions. They have to add more vertical solutions. And I believe that at some point it does need to invest in some Capex at somebody like ANna Quinn x play credit card swiper on top of that. And Dave, you have the public, you have the public cloud, you don't have all the availability zones, but you have a public cloud. >>Yeah, that's going to happen. I think you're right on. So we see this notion of cloud expanding. It's no longer just remote set of services. Somewhere out in the cloud. It's as you said, outpost was the sort of signal. Okay, We're coming on prem clearly the on prem, uh, guys are connecting to the cloud. Multi cloud exists, we know this and then there's the edge but but but that brings me to that sort of vision and everybody's laying out of this this this seamless integration hiding the complexity log into my cloud and then life will be good. But the edge is different. Right? It's not just, you know, retail store or a race track. I mean there's the far edge, there's the Tesla car, there's gonna be compute everywhere. And that sort of ties into the data. The data flows, you know the real time influencing at the edge ai new semiconductor models. You you came out of the semiconductor industry, you know it inside and out arm is exploding is dominating in the edge with with with apple and amazon Alexa and things like that. That's really where the action is. So this is a really interesting cocktail and soup that we have going on. How do you >>say? Well, you know, Dave if the data most data, I think one thing most everybody agrees on is that most of the data will be created on the edge. Whether that's a moving edge a car, a smartphone or what I call an edge data center without tile flooring. Like that server that's bolted to the wall of Mcdonald's. When you drive through, you can see it versus the walmart. Every walmart has a raised tile floor. It's the edge to economically and performance wise, it doesn't make any sense to send all that data to the mother ships. Okay. And whether that's unproven data center or the giant public cloud, more efficient way is to do the compute at the closest way possible. But what it does, it does bring up challenges. The first challenge is security. If I wanted to, I could walk in and I could take that server off the Mcdonald's or the Shell gas station wall. So I can't do that in a big data center. Okay, so security, Physical security is a challenge. The second is you don't have the people to go in there and fix stuff that are qualified. If you have a networking problem that goes wrong and Mcdonald's, there's nobody there that can help uh, they can they can help you fix that. So this notion of autonomy and management and not keeping hyper critical data sitting out there and it becomes it becomes a security issue becomes a management issue. Let me talk about the benefits though. The benefits are lower latency. You want you want answers more quickly when that car is driving down the road and it has a five G V two X communication cameras can't see around corners, but that car communicating ahead, that ran into the stop sign, can I through vi to X. Talk to the car behind it and say, hey, something is going on there, you can't go to, you can't go to the big data center in the sky to make that happen, that is to be in near real time and that computer has to happen on the edge. So I think this is a tremendous opportunity and ironically the classic on prem guys, they own this, they own this space aside from smartphones of course, but if you look at compute on a light pole, companies like Intel have built Complete architectures to do that, putting compute into 5G base stations. Heck, I just, there was an announcement this week of google cloud in its gaming solution putting compute in a carrier edge to give lower latency to deliver a better experience. >>Yeah, so there, of course there is no one edge, it's highly fragmented, but I'm interested in your thoughts on kind of who's stack actually can play at the edge. And I've been sort of poking uh H P E about this. And the one thing that comes back consistently is Aruba, we we can take a room but not only to the, to the near edge, but to the far edge. And and that, do you see that as a competitive advantage? >>Oh gosh, yes. I mean, I would say the best acquisition That hp has made in 10 years has been aruba it's fantastic. And they also managed it in the right way. I mean, it was part of HB but it was it was managed a lot more loosely then, you know, a company that might get sucked into the board. And I think that paid off tremendously. They're giving Cisco on the edge a absolute run for their money, their first with new technologies. But it's about the solution. What I love about what a ruble looks at is it's looking at entertainment solutions inside of a stadium, um a information solution inside of an airport as opposed to just pushing the technology forward. And then when you integrate compute with with with Aruba, I think that's where the real magic happens. Most of the data on a permanent basis is actually video data. And a lot of it's for security uh for surveillance. And quite frankly, people taking videos off, they're off their smartphones and downloading video. I I just interviewed the chief network officer of T mobile and their number one bit of data is video, video uploaded, video download. But that's where the magic happens when you put that connectivity and the compute together and you can manage it in a, in an orderly and secure fashion >>while I have you, we have a ton of time here, but I I don't pick your brain about intel, the future of intel. I know you've been following it quite closely, you always have Intel's fighting a forefront war. You got there, battling A. M. D. There, battling your arm slash and video. They're they're taking on TSMC now and in foundry and, and I'll add china for the looming threat there. So what's your prognosis for for intel? >>Yeah, I liked bob the previous Ceo and I think he was doing a lot of of the right things, but I really think that customers and investors and even their ecosystem wanted somebody leading the company with a high degree of technical aptitude and Pat coming, I mean, Pat had a great job at VM or, I mean, he had a great run there and I think it is a very positive move. I've never seen the energy At Intel probably in the last 10 years that I've seen today. I actually got a chance to talk with pat. I visited pat uhh last month and and talk to him about pretty much everything and where he wanted to take the company the way you looked at technology, what was important, what's not important. But I think first off in the world of semiconductors, there are no quick fixes. Okay. Intel has a another two years Before we see what the results are. And I think 2023 for them is gonna be a huge year. But even with all this competition though, Dave they still have close to 85% market share in servers and revenue share for client computing around 90%. Okay. So and they've built out there networking business, they build out a storage business um with with obtain they have the leading Aid as provider with Mobileye. And and listen I was I was one of Intel's biggest, I was into one of Intel's biggest, I was Intel's biggest customer when I was a compact. I was their biggest competitor at AMG. So um I'm not obviously not overly pushing or there's just got to wait and see. They're doing the right things. They have the right strategy. They need to execute. One of the most important things That Intel did is extend their alliance with TSMC. So in 2023 we're going to see Intel compute units these tiles, they integrate into the larger chips called S. O. C S B. Manufactured by TSMC. Not exclusively, but we could see that. So literally we could have AMG three nanometer on TSMC CPU blocks, competing with intel chips with TSMC three nanometer CPU blocks and it's on with regard to video. I mean in video is one of these companies that just keeps going charging, charging hard and I'm actually meeting with Jensen wang this week and Arms Ceo Simon Segers to talk about this opportunity and that's a company that keeps on moving interestingly enough in video. If the arm deal does go through will be the largest chip license, see CPU licensee and have the largest CPU footprint on the planet. So here we have AMG who's CPU and Gpu and buying an F. P. G. A company called Xilinx, you have Intel, Cpus, Gpus machine learning accelerators and F. P. G. S. And then you've got arms slashing video bit with everything as well. We have three massive ecosystems. They're gonna be colliding here and I think it's gonna be great for competition. Date. Competition is great. You know, when there's not competition in CPUs and Gpus, we know what happens right. Uh, the beach just does not go on and we start to stagnate. And I did, I do feel like the industry on CPU started to stagnate when intel had no competition. So bring it on. This is gonna be great for for enterprises then customers to and then, oh, by the way, you have the custom Chip providers. WS has created no less than 15 custom semiconductors started with networking and nitro and building out an edge that surrounded the general computer. And then it moved to Inferential for inference trainee um, is about to come out for training Graviton and Gravitas to for general purpose CPU and then you've got apple. So innovation is huge and I love to always make fun of the software is eating the world. I always say yeah but has to run on something. And so I think the combination of semiconductors software and cloud is just really a magical combination. >>Real quick handicap the video arm acquisition. What what are the odds that that they will be successful? They say it's on track. You got a 2 to 13 to 1 10 to 1. >>I say 75%. Yes 25%. No China is always the has been the odd odd man out for the last three years. They scuttled the Qualcomm NXp deal. You just don't know what china is going to do. I think the EU with some conditions is going to let this fly. I think the U. S. Is absolutely going to let this fly. And even though the I. P. Will still stay over in the UK, I think the U. S. Wants to see wants to see this happen, Japan and Korea I think we'll allow this china is the odd man out. >>In a word, the future of h p. E is blank >>as a service >>patrick Moorehead. Always a pleasure. My friend. Great to see you. Thanks so much for coming back in the cube. >>Yeah, Thanks for having me on. I appreciate that. >>Everybody stay tuned for more great coverage from HP discover 21 this is day Volonte for the cube. The leader and enterprise tech coverage. We'll be right back.

>>from >>around the >>globe. It's the Cube with digital coverage of pager duty. Summit 2020. Brought to you by pager duty. Hey, welcome back to Brady. Jeffrey here with the Cube in Palo Alto studios today. And we're talking about an upcoming event. It's one of our favorites. This will be the fourth year that we've been doing it. And it's pager duty summit. And we're excited to have from the pager duty team. She's Caroline Gus, the VP of corporate marketing from pager duty. Caroline, Great to see you. >>Hi, Jeff. Great to see you again. >>Absolutely. So, you know, I was thinking before we turn on the cameras we've been doing pager duty for I think this will be like, say, our fourth year that first year was in the cool, um, cruise ship terminal pier. I gotta written appear 27 which was which was nice. And then the last two years, you've been in the, you know, historic Westin ST Francis in downtown San Francisco, which is a cool old venue, but oh, my goodness. You guys were busting at the seams last year. So this year, year to go virtual. There's a whole bunch of new things that that you could do in virtual that you couldn't do in physical space. At least when you're busting out of the seems so First off, Welcome and >>talk a little >>bit about planning for virtual versus planning for a physical event from, you know, head of marketing perspective. >>Absolutely. I mean, the first thing that's changed for us is the number of people that can come. It's five x the number of people that were able to join us, the Western last year. So we have, uh, we we expect to have 10,000 people registered on attending age duty summit. The second thing is thea share number of sessions that we can put on. Last year, I think we had around 25 sessions. This year we have between 40 and 50 on again. That's because we're not constrained by space and physical meeting rooms, so it's being a really exciting process for us. We've built a fantastic agenda on. It's very much personalized, you know, developers come to our event. They love our event for the opportunity to learn mixed with their peers, get best practices and hands on experience. So we have many more of those types of sessions when we have done previously, and that things like labs and Bird of Feather Sessions and Emma's. But we've also built a whole new track of content this year for executives. Page Julie has, um, many of the Fortune 500 on 4100 customers. We work very closely with CEO CTO, so we have built sessions that are really designed specifically for that audience on I think for us it's really opened up. The potential of this event made it so much broader and more appealing than we were able to do when we were, As you say, you know, somewhat confined by the location in downtown San Francisco. >>I think it's such an interesting point. Um, because before you were constrained, right, If you have X number of rooms over a couple of days, you know you've got to make hard decisions on breakouts and what could go in and what can't go in. And, you know, will there be enough demand for these for this session versus another session? Or from the perspective of an attendee, you know, do they have to make hard tradeoffs? I could only attend one session at one oclock on Tuesday and I got to make hard decisions. But this is, you said really opens up the opportunities. I think you said you doubled. You doubled your sessions on and you got five X a number of registrations. So I think, you know, way too many people think about what doesn't happen in digital vs talking about the things that you can do that are impossible in physical. >>Yeah, I think at the very beginning. Well, first of all, we held our Amir summit events in London in July. So that was great because we got Thio go through this experience once already. And what we learned was the rial removal of hurdles in this process. So, to your point about missing the session because you're attending another session, we were calling this sort of the Pelton version of events where you have live sessions. It's great to be there, live participate in the live Q and A, but equally you have an entire on demand library. So if you weren't able to go because there was something else at the same time, this is available on demand for you. So we are actually repeating live sessions on two consecutive day. So on the Monday we're on everything on the Tuesday I ask because show up again for life Q and A at the end of their sessions. But after that it's available forever on an on demand library. So for us, it was really removing hurdles in terms of the amount of content, the scheduling of the content on also the number of people that content in attend, no geographical boundaries anymore. It used to be that a customer of ours would think, Well, I'll send one or two people to the page duty summit. They could learn all the great innovation from page duty, and they'll bring it back to the team that's completely changed. You know, we have tens of 20 signing up on. All of them are able to get that experience firsthand. >>That's really interesting. I didn't didn't even think about, you know, kind of whole teams being able to attend down instead of just certain individuals because of budget constraints, or you can't send your whole team, you know, a way for a conference in a particular area. But the piece to that you're supporting that were over and over is that the net new registrants goes up so dramatically in terms of the names and and and who those individuals are because a lot of people just couldn't attend for for various reasons, whether it's cost, whether it's, uh, geography, whether it's they just can't take time off from from from leaving their primary job. So it's a really interesting opportunity to open up, um, the participation to such a much bigger like you said five x five X, and increase in the registration. That's pretty good number. >>That's right. Yeah. I mean, that crossed boundaries gone away. This event is free on DWhite. That's actually meant is, as I say, you know, larger teams from the same company are attending. Uh, In addition, we have a number of attendees who are not actually paid to duty customers right now to previously. This was very much a community event for, you know, our page duty users on now we actually have a large number of I asked, interested future customers that will be coming to the event. So that's really important for us. And also, I think, for our sponsor partners as well, because it's bordering out the audience for both of us. So let's >>talk about sponsors for a minute, because, um, one of the big things in virtual events that people are talking about quite often is. Okay, I can do the keynotes, and I could do the sessions. And now I have all these breakout sessions for, um, you know, training and certification and customer stories, etcetera. But when it comes to sponsors, right sponsors used, you know, go to events to set up a booth and hand out swag and wander badge. Right? And it really was feeding kind of a top level down funnel. That was really important. Well, now those have gone away. Physical events. So from the sponsor perspective, you know, what can they expect? What? What do you know the sponsor experience at pager duty Summit. Since I don't have a little tiny booth at the Westin ST Francis given out swag this year. >>Yeah. So one important thing is the agenda and how we're involving our sponsors in our agenda this time, something that we learned is we used to have very long keynotes. You know, the keynote could be an hour long on involved multiple components and people would stay in that room for a now er on did really stay and watch sessions all day. So we learned in the virtual format that we need to be shorter and more precise in our sessions on that opened up the opportunity to bring in more of our partners, our sponsorship partners. So zendesk Salesforce, Microsoft some examples. So they actually get to have their piece of both of our keynote sessions and of our technical product sessions. I'm really explain both the partnership with pager duty, but also they're called technology and the value that they provide customers. So I think that the presence of sponsors in content is much higher than it was before on we are still repeating the Expo format, so we actually do have on Expo Hall that any time there's breaking between sessions, you could go over to the Expo ball, and it actually runs throughout as well, and you can go in and you can talk to the teams. You can see product demos, so it's very much a virtual version of the Expo Hall where you went and you want around and you picked up a bit of swag, >>so you mentioned keynotes and and Jennifer and and the team has always had a fantastic keynotes. I mean, I just saw Jennifer being interviewed with Frank's Luqman and and Eric Juan from Zoom By by Curry, which was pretty amazing. I felt kind of jealous that I didn't get to do that. But, um, talk tell us a little bit about some of the speakers I know there'll be some some, you know, kind of big rally moment speakers as well as some that are more down to technical track or another track. Give us some highlights on on some of the people. I will be sharing the stage with Jennifer. >>Absolutely, I said. I think what's really unique about Page duty Summit is that we designed types of content for different types of attendees. So if you're a developer, your practitioner, we have something like this from Jones of Honeycombs, who's talking about who builds the tools that we all rely on today, and how do they collaborate to build them together in this virtual world? Or we have J. Paul Reed from Netflix talking about how to handle the stress of being involved in incidents, So that's really sessions for our core audience of developers who are part of our community and pager duty really helps them day to day with with that job. And then we have the more aspirational senior level speakers who could really learn from a ZA leader. So Bret Taylor, president and CEO of Salesforce, will be joining us on the main stage. You'll be talking about innovation and trust in today's world on. Then we have Derrick Johnson. He is president of N A A. C P, and he'll be talking about community engagement and particularly voter engagement, which is such an important topic for us right now. Aan den. We have leaders from within our customers who are really talking about the way they use pager duty thio drive change in their organization. So an example would be porches, bro. He runs digital for Fox on, and he's gonna be talking about digital acceleration. How large organization like Fox can really accelerate for this digital first world that we find ourselves living in right now, >>right? Well, you guys have such a developer focus because pager duty, the product of solution, has to integrate with so many other, um, infrastructure, you know, monitoring and, uh, and all of all those different systems because you guys were basically at the front line, you know, sending them the signals that go into those systems. So you have such a broad, you know, kind of ecosystem of technology partners. I don't know if people are familiar with all the integrations that you guys have built over the years, which is such a key piece of your go to market. >>That's right. I mean, we we like to say we're at the center of the digital ecosystem. We have 203 170 integrations on. That's important because we want anyone to be able to use page duty no matter what is in their technology stack technology stacks today are more complex than they've ever been before, particularly with businesses having to shift to this digital first model since we all began shelter in place, you know, we all are living through digital on working and learning through digital on DSO. The technology stacks that power that are more complicated than ever before. So by having 370 integrations, we really know that we conserve pretty much any set of services that your business. It's using. >>Yeah, we've all seen all the means right about who's who's pushing your digital transformation. You know, the CEO, the CEO or or covert. And we all know the answer to toe what's accelerated that whole process. So okay, but so before I let you go, I don't even think we've mentioned the date. So it's coming up Monday, September, September 21st through Thursday, September 24th not at the West End Online and again. What air? What are you hoping? You're kind of the key takeaways for the attendees after they come to the summit? >>Yeah, a couple of things. I mean, first of all, I think will be a sense of belonging. Three attendees, the uses, a pager duty. They are really the teams that are at the forefront of keeping our digital services working on. But what that means is responding to incidents we've actually seen. Ah, 38% increase in the volume of incidents on our platform since covert and shelter in place began. Wait 30 >>38% increase in incidents since mid March. >>That's correct. Since the beginning of on bear in mind incidents. Prior to that in the six months prior, they were pretty flat. There wasn't instant growth. But what we've also seen is a 20% improvement in the time that it takes to resolve an incident from five minutes down to four minutes. So what that really means is that the pager duty community is working really hard. They're improving their practices. Hopefully our platform, our platform is a key part of how, but these are some people under pressure, so I hope that people can come and they can experience a sense of belonging. They can learn from each other about experiences. How do you manage the stress of that situation on what are some of the great innovations that make your job easier in the year ahead? The second thing that we don't for that community is that we are offering certification for P. D. You page due to university for free this year. It's of course, with a value of $7500. Last year, you would attend page duty summit on you would sit through your sessions and you would learn and you would get certified. So this year it's offered for free. You take the course during summit. But you can also carry on if you miss anything for 30 days after. So we're really feeling that, you know, we're giving back there, offering a great program for certification and improved skills completely free to help our community in this in this time of pressure, >>right? Right. Well, it is a very passionate community, and, you know, we go to so many events and you can you can really tell it's palatable, you know, kind of what the where the tight communities are and where people are excited to see each other and where they help each other, not necessarily only at the event, but you know, throughout the year. And I think you know a huge shout out to Jennifer on the culture that she's built there because it is very warm. It's very inclusive, is very positive. And and that energy, you know, kind of goes throughout the whole company and ice the teaser. You know this in something that's built around a device that most of the kids today don't even know what a pager is, and just the whole concept of carrying a pager and being on call right and being responsible. It's a very different way to kind of look at the world when you're the one that has that thing on your hip and it's buzzing and someone's expecting, Ah, return call and you gotta fix something So you know, a huge shout out to keep a positive and you're smiling nice and big culture in a job where you're basically fixing broken things most of the time. >>Yeah, absolutely. I mean, there's, I think, a joke that we make you know these things only break on Friday night or your wedding anniversary or Thanksgiving. But one of the announcements we're most excited about this year is the level of automation on artificial intelligence that we're building into our platform that is really going to reduce the number of interruptions that developers get when they are uncle. >>Yeah, I look forward to more conversations because we're gonna be doing a bunch of Cube interviews like Normal and, uh, you know, applied artificial intelligence, I think, is where all the excitement is. It's not a generic thing. It's where you applied in a specific application to get great business outcomes. So I look forward to that conversation and hopefully we'll be able to talk again and good luck to you and the team in the last few weeks of preparation. >>Thanks so much, Jeff. I've enjoyed talking to you. Thanks for having me. >>Alright. You too. And we'll see you later. Alright. She is Caroline. I'm Jeff. You're watching the Cube. Thanks for watching. We'll see you next time.

>>from San Francisco. It's the Q covering pager duty. Summit 2019. Brought to you by pager Duty. >>Hey, welcome back. You're ready, Jeff? Rick here with the Cube. We're downtown San Francisco at the historic Western St Francis. A pager. Duty summit. It's the fourth year pager duty Summit, 30 year for the Q. Being here, I think they've about outgrown the venue. So he looked forward to seeing where we go next year. But we're excited to have somebody is at a very busy day. A lot of product announcements leading a lot of this effort. He's Jonathan. Randy, this s V P. Of product for pager duty. Jonathan, great to see you. Thanks for having me. So, congratulations. A lot of Ah lot of product announcements today. >>This is our biggest unveiling of the year. >>What s so I don't want you to pick your favorite baby, but what are some of the highlights? That goddess here today? >>Yes, a couple of big things today and tomorrow, not just today. >>Uh, >>first, we're really focused on applying. It is the buzzword of the sense of the new Millennium machine learning, but we're applying it across our entire portfolio, and we're doing it in a good way, not in a creepy way. We're doing in a good way to help organizations make sense of all the data they're getting. Tell him what's happening and, more importantly, what they could do to get better. And so that's something that we call our intelligence Dashboards is part of our analytics products. That's one big one, right? Right. And as you probably know, being here, pager duty is all about helping teams to be more effective in the moments that matter. And one of the other big announcements we have is intelligent triage. And so what is it way See with There's a lot of great companies here, partners that we're working with and whenever they're working, major issues within their companies were seconds, matter or even microseconds. They could lose millions of dollars that work in real time. They'll find out that there's multiple teams working on the same problems on Lee for one team to find out that somebody's undoing some of things that they're doing. So we focused in a huge way on building context, the visibility so that the teams in see what other issues air related That's what we call intelligent triage. So nobody needs to do double work, >>right? It's funny on the on the A I right in machine learning because they are the hot, hot, hot buzzword. But what I don't think are the hot buzzards, which is where all the excitement is happening, is it's the applied A I it's not Aye aye, for a eyes sake. Or were great. Aye aye company with an aye aye widget that we want to sell you. It's really leveraging a I within your core application space, your core domain expertise to make your abs do better things. And that's really what you guys have embraced. >>Absolutely. It's way have to be so empathetic to our users. Are users carry an unbelievable burden. They are on the front lines when things go down. They have, you know, minutes, seconds to make right decisions, and there's a lot of responsibility with that. So we're using a I in applied way to help them make sense of being overloaded with information, focus them in on the things that can make the biggest positive impact right, So it is applied a I in its purest form and >>the other part I found interesting is really anak knowledge mint that it's not just the people that have to fix the problem that needs to know about the problem, but there's a much larger kind of ecosystem that ecosystem around. That problem, whether it's sales reps executive for certain, is a whole bunch of people that should know, need to know, have value, to know beyond just the really smart person that I've now put on fixing the >>problem. You're bringing up a great point, which is a lot of people know page of duty because of how we help technical teams, developers and office people fix these incidents. When they happen right when a site goes down or when something search isn't working correctly but getting work done. We're taking that in its broadest context. It's beyond technical responders. First we have to service them. They're our core audience. They're why we're here today. But that unit of work getting work done goes beyond them as you're saying. It goes to what we call business responders who I could be working in a customer service team and while that incident is happening, I need that information so that I can ready my communication in case somebody calls up the sports desk and opens up a ticket. I need to know what to tell him right when it's gonna be fixed and how we're addressing their problems. Or I could be the CFO, a stakeholder and just want to know what's the real revenue impact of this outage of this time? So whether I'm taking action or I just need to know these air people outside of the sphere of the technical team and their business responders and stakeholders and we're automating the flow of information all of them so that they don't interrupt the poor responders team so they can focus on their work, >>right? Yeah. Another concept that kind of clarified today is all of your guys partnerships. You know, you've listened on your integration page on the Web site. It's clear. Well, data dog sales for Zenda Sumo AWS service now last CNN, IBM Blue mix. I mean, it's they can't go through the whole list. It's a huge list, but I think confusion in the market or maybe clarification is helpful is, you know, kind of where to those systems play versus your system when that Everyone wants to be a system of record, right? Everybody wants to be the database that has all the all the information. And yet you figured out a way to take your capabilities and augment all these other platforms and really puts you in a nice play across a really wide range of a problem. Sets. >>Yeah, it's it's so core to who we are way like to think of our pager duty platform. I always refer to it as it's a central nervous system, and what does that really mean? We always say it's a central nervous system and pager duty is about people. So all of those vendors, all of those companies, they're all valued partners. Many of them are customers of pager duty as well. They use us to keep their service is up on the monitoring world. But what pager duty is always focused on is ensuring that people two people collaboration to get real work done based on the information coming from those folks. So a lot of those vendors out there they play such an invaluable part of the ecosystem. They let us know they provide all the telemetry in the information in the data way, make sense of it and then engage people Finish that work. So in a way, you know that central nervous system is taking all these impulses just like a really central nervous system. And we're engaging the right people to help them effectively get the right right, and we couldn't do it without them. So the famous 350 plus way couldn't do what we do without them, and they're all here today. You >>didn't think I was going to read the whole hunt 350 >>Hope. That would be a long way >>Hades in desk on. And I know that was part of the new customer service and has been getting, you know, kind of your value kind of closer to the actual customer transaction. It's always in support of the customer transactions. The website's down transaction close, but this actually has taken it to the next level toe. Have a direct contact to the person who's actually engaged with the client to give them or inside is what's going on as being resolved in these type thing with a two way communication pattern. >>Yeah, it's something I'm personally really excited about. Where customer of zendesk as well. So we use end us and they use pager duty. So we get a lot of feedback on what's working, what's not working, which informed us and what we were doing. But there's two big problems in the industry that I've seen over, you know, two plus decades, which is customer service and support teams. They're dealing also on the front lines. Having them communicate and get information from development teams isn't always easy. And so both of us are really interested in kind of breaking down the walls between those organizations. But doing so in a way that's not interrupting those teams when they're doing their work that they have, right, so one, that's what we wanted to accomplish. How can we share information seamlessly automatically? So both teams are in sync, but they're not pestering each other and then to that work that's being done on the development side, when something does go wrong in a devil apps world, now, the customer support agents, the service agents they can get ahead of those cases that are being opened up, so they're not in the dark. They're not being flooded by tons of cases being opened up and they don't know what to say. They ready their communications and push it out because they're insane. >>It's really you think pager duty and notifications were surrounded by all these dashboards and computer stuff, but you made a really instant comment. It's all about the people you guys commissioned. A study called I'm gonna read an unplanned work, the human impact of an always on world and really going after unplanned work. Now it's funny, because everyone always talks about unplanned maintenance and on scheduled maintenance and the impacts on aircraft and the impacts on power generation and aircraft. This is the first time I've ever heard anyone couch it as as unplanned, which is completely disruptive fours on people and their lives, not to mention their service workers. And, according to the study, 2/3 of her pissed off and not too happy the way things are going at work anyway, with what kind of was zenith of that. And that's a really great way to reframe this problem into something much more human. >>The genesis of this all came from the concept that a CZ you'll read a lot we say we're always on. Let's keep it that way. Let's help help everyone. Keep it that way. It's a mantra with pager duty, and it comes from again when I say Genesis, it comes from even within our platform way. Don't have me Windows. We are on 24 7 360 days a year way have to be up when other service's aren't because of that. Whenever we work with organizations or vendors that that we pay for. And they say we have a maintenance window like a maintenance window my partner in crime runs engineering team are meant for. He always says maintenance Windows air for cars, not SAS software like there are no maintenance windows. And what that means as a first step is, if that's the case, there's no maintenance windows you're always on. Then you have to answer this question of how much time are you really spending unplanned work interruptions, right? So we really started taking not the heart. We really started trying to figure out what is the percentage everybody's trying to innovate more. That's planned war, right? Is it? 10% is a 20%. Is it 50%? The best organizations we see our 20 to 25% is unplanned work. We'll >>need 25% for the best organization. >>Yeah, so means not. So best organizations are very different, right? And so way feel that we uniquely can help organizations get way better at cutting down that time so that they can innovate more, Right? They're not firefighting. They're actually innovating and growing their business right. That's a big part of how we help people in these organizations do their job better. >>God, that's before you get in contact. Switching and pressure and disruption and >>way found some amazing statistics in my prior life. Iran Engineering. And it was at a sauce company. And what I found was whenever customers, whenever my top engineers would be put on Call Way, didn't have pager duty at the time, and they would be on call and interrupted on consecutive nights in the middle of the night. First, I would typically hear about when somebody was burned out is when I would see a resignation letter on my desk or somebody way no, after two or three or four successive interruptions in someone's personal life that goes on where they feel they're not being productive. One, they aren't productive at work either, to they're a huge retention risk. So way have that kind of data. We can look at it, and we can help management and organizations help them. And their teams take better care of their teams so that, you know, they're they're being more humane, humane knots, not human off pain, All right. And how you deal with those most expensive precious resource is in your company, which are your people is really important >>when they walk out the door every night, you know? So you gotta take care of him. So they come back the next day. It is? Yes. All right, Jonathan, last question is you as we wait, we're not quite done with some yet, but as we come to the closest on her arm really busy year. The AIPO. You guys have done amazing things, but you kind of flipped the calendar. Look forward. What are some of your kind of priorities as we as >>we move forward? Yeah. So it's been a crazy year. A lot of change and a couple things going forward. One were big partners with Amazon in a W S S O were attending reinvent. That's a big event for the company, but also at this event. As I mentioned before, it's probably our biggest unveiling of new innovations and products for our entire 12,000 plus customers. So for us, it may seem like it's an end. It's really just the beginning, because all of these products and intelligent triage business response, intelligent dashboards, these products that are apart, his capabilities that are part of our analytics and events intelligence on the pager duty, platform way have to keep evolving This we have to keep kind of moving forward because the world is always on and we've got to keep it that way. >>What? Andre just had a great line in his keynote about being scared is the generator of wisdom. But here it is, right here. Fear is the beginning of wisdom. Not necessarily fear, but fear getting caught. Keep moving that we have ahead of the pack. All right, Jonathan, Thanks for taking a few minutes and congratulations. I'm sure tough getting all those new babies out this week, but what a great what a great job. Thank you so much. All right. Pleasure. He's Jonathan. I'm Jeff. You're watching the cube. Where? Pager duty Summit in San Francisco. Thanks for watching. We'll see you next time.

>>from San Francisco. It's the Q covering pager duty Summit 2019. Brought to you by pager Duty. >>Hey, welcome back there. Ready, Geoffrey? Here with the cue, we're pager duty Summit in the historic Western St Francis Hotel, downtown San Francisco. I think they've outgrown the venue. The place is packed to the gills. Standing, rolling, the keynote Really excited of our next guest. Someone who's been to this industry for awhile really done some super cool creative things. He's given the closing keynote. We're happy to have him here right now. That's Mitchell Hashimoto from Hachiko. It's great to see you. >>Good to see you too. Thanks for having >>absolutely so just a quick overview before we get into it on hot chic or for the people in our familiar >>Sure, so hospitals a company that what we try to do is help people adopt cloud, but more, more realistically, Adolfo multi cloud and hybrid cloud the real world complexities. That cloud isn't just a technical landing point, but it's really way You deliver software. You want to deliver more applications, you want to connect them faster. You want to do this in an automated away infrastructure is code of all these modern practices way. Build a suite of tools Thio provisions secure, connect and run those applications for separate products that we sell that you could adopt separately. Good mix and match. That's That's what we've been doing for a long time. Based on open source Software, Way started purely as an open source community and have grown into an enterprise cos that's that's That's the elevator pitch. >>No, it's great, but it's a great story, >>right? Europe, Europe in Seattle got some access to some cloud infrastructure and really solve your own problem. Figured out other people of that problem and then really built a really cool, open source kind of based software company. >>Yeah, I mean, I think the amount of people that had the problem I was facing personally was orders of magnitude more than I expected. I've told other people we never expected to start even a business around this. It was just scratching and building technical solutions. But a CZ, as we sort of worked at startups, started talking a bigger and bigger companies. It just kept everyone kept saying, Yes, I have that problem and it's only grown since then, right surprising, >>and the complexity has only grown exponentially before. The you know, years ago, there was this bright, shiny new object called a W s. I mean, I love Bezos is great line that nobody even paid attention. You have six or seven years. They've got a head start and kind of this Russian. Now there's been a little bit of a fallback as people trying to figure out what to go where now it's hybrid cloud and horses for courses. So a lot of great complexity, which is nothing but good news for you. >>Absolutely. I told this story before, but our first year incorporated company I actually got hung up on by an analyst because I said way we're trying to solve a multi cloud problem and they said that's not a real problem when it will never be a real problem. They hung up on me on it was a bet, then, and and I think they're the expectation that was it was gonna be Eight of us is gonna be physical infrastructure and the physical infrastructure days were numbered. It was gonna get acts out. It was just gonna all go to eight of us and our conviction was that you would have both forever and or for a very long time. And then people like Azure, Google and others would pick up and and that's been true. But I think what we didn't expect, the complexity that got introduced with things like containers in Kubernetes because it's not like Clouded option finished in the next started It all came at once. So now Riel Cos they're dealing with the complexity of their still trying to move the clouds. They're trying to get more out of their physical infrastructure, trying to adopt kubernetes. Now people are starting to peck at them about server list. So there the complexity is is a bit crazy and review our job trying to simplify that adoption make you get the most out of >>right. And that was before you could get a piece of Ian where inside of AWS, get a get a piece of the Google Data Center inside your own data center. So it just continues to get crazier. >>Yes, yeah, So you're giving a closing keynote on a >>new project. You're working on fault, and it's an existing project. Justin cry. They're old, but but I think you talked about before we turn the cameras on. It's really more of a kind of an attitude in a and a point of view and a way to go after the problem. So I wonder if you could kind of dig into a little bit of What did you see? How did you decide to kind of turn the lens a little bit and reframe this challenge? Yeah, >>I think the big picture of story I'm trying to tell him the keynote is that everybody? Anything You look around the technical nontechnical, this table, that glass. Like everything you look at, it trickles back to the idea of one or a small group of people, and it takes an army to make it show up on this table. But it starts by somebody's vision, and everything was created by somebody. So I'm talking about vault, something we made and, you know, why don't we create it? And why do we make it the way we did? And you know, another thing I say is people ask, Why did you start hot record for having this vision? Something I constantly told myself was wine on me. I get someone's gonna do it. Why not make it? Could be anybody, like I'll give it a shot. Why not? And Bolt was that way. We Armand. I'm a co founder. Way took security classes in college, but we don't have a formal security background. We didn't work in security in industry. So the odds of us launching a security product that is so prevalent today whether you know it or not, it's behind the scenes very prevalent were stacked against us. How did that happen? And that's that's sort of what I've been going to talk about. >>Let's go. But do >>dive into a little bit on the security challenge because it's funny, right? Everyone always says, Right. Security's got to be baked in and you've got these complex infrastructure and everything's connected with AP eyes, the other people's applications and, oh yes, delivered through this little thing that you carry around. And maybe the network's not working well or the CPS running low are You're running iPhone five. And of course, it's not gonna work on most modern app. Yeah, bacon security always do, but that's easy to say. It's much harder to do, you know. Still, people want to build moats and castles and drawbridges, and that's just not gonna work anymore. >>Exactly. So you exactly hit upon the two major issues that we recognize there felt we recognize. One was that a lot of people were saying it. Very few people were doing it on. The reality was it was hard to do. Everyone knew theoretically what they should do. No one, no one thought. Oh yeah, saving somebody's personal information in plain text in the daytime. It's a good idea. Nobody thought that Everyone said it should be encrypted, but encryption is hard. So maybe one day, so no one was doing it. And then the other side of it was the people that were doing it where the world's largest companies, because the solutions were catered towards his mindset of of castle and moats, which works totally fine in a physical tradition environment but completely breaks down in a cloud world where there is no four perimeters anymore. It's >>still there, There. >>You're one AP I call away from opening everything to the Internet. So how do you protect this? And we've seen a lot of trends change towards zero Trust and ServiceMaster Mutual feel like there's a lot of stuff that happened way sort of jumped on that. >>Yeah, so So you're using, like, multi level encryption, and I've read a little bit on the website. It's way over my head, I think. But, you >>know, the basics are just making kryptonite. Christian makes security, cloud infrastructure, security approachable by anybody and a core philosophy. Our company, Hashi Hashi Hashi. My name means bridge, and that is a core part of our culture. Which is you can't just have, ah, theoretical thing or a shiny object and leave people hanging. You gotta give them a bridge, a path to get there, right? And so we say, with all our technology, one of the crawl, walk and run adoption periods and with security it's the same is that to say you're secure means something totally different everybody for a bank to be secure, it's a lot more than for a five person started to be secure. So how do you give somebody a solutions they could adopt? Check the security box for themselves at every path of the lake, and bald is one of the tools that way have individuals using it, and we have the world's largest companies, almost 10% of the global 2000 paying customers evolved many more open source users on its scales the entire spectrum. >>Wow. So you keep coming up >>with lots of new, uh, new projects as we get ready to flip the counter to 2020. What are some of the things you're thinking about? >>I think the big one, you know, that our focus is right now is service. Miss Vault is we're big enough company now where we always have teams working on every every one of our projects we have release is going out. The thing we've been talking about the most is the service mess thing. I think Cloud as a mainstream thing, Let's say, has has existed for seven or eight years. It's since it's been released. It's been over in almost 15 but as a thing that people have, that is a good idea. Seven or eight years and you know we've touched security. Now we've touched how infrastructures managed touch developers. I think a place that's been relatively untouched and has gotten by without anyone noticing has been networking and network security. They're they're really doing things the way they've always done things, and I think that's been okay because there's bigger fish to fry. But I think the time has come and networking as a bull's eye on it. And people are looking at What is networking mean in a cloud world and service mash appears to be the way that is gonna happen. Way have our own service mess solution called Council on Our Approaches Standard Hasta Corp. It's nothing new. It's We're gonna work with everything containers, kubernetes, viens physical infrastructure. We're gonna make it all work across multiple data centers. That is our approach service fashion, solving that challenge. >>What's the secret sauce? >>I mean, it's not that secret, right? >>It's just building. Just execute. Better understand that this header >>JD is the problem, right? Right, I said, This is our keynote a couple weeks ago that there are a lot of service messes out there, and nine out of 10 of them are solving a solution for a single environment, whether it's kubernetes or physical environment. And I think that's a problem. But it's not the problem. The problem to me is how do I get my kubernetes instances pods to communicate to my NSX service is on my physical infrastructure. That is the problem as people, whether that's temporary, not and they intend to move the communities or whatever. It's that's the reality. And how do you make that work? And that is what we're focused on solving that problem >>just every time I hear service mess. I think there was a company a while ago that sold the CSC. Probably like 2013. Didn't really get into That is a as a good, happy story. But they were early on the name. Yeah. Yeah. So last thing pager duty were Pedrie. What? You guys doing a page of duty? >>Sure. So we've been I've actually been a paying customer pager duty since before we even made this company in my previous job was a customer wear now, still customers. So we still use it internally. But in addition to that way, do integration across the board. So with terra form our infrastructure provisioning tool way have a way to manage all pager duty as code and as your complexion pager duty rises instead of clicking through a u. I being able to version and code everything and have that realize itself and how he works very valuable from like a service MASH consul standpoint. Hooking in the monitoring to the alerting of Pedro duty is a big thing that we do so tying those together. So it's very symbiotic. I love pager duty as a user and a partner. There's a lot here. >>Yeah, is pretty interesting slide when Jennifer put up in the keynote where it listed so many integration points with so many applications with on the outside looking in and you're like how you're integrating with spunk, that making how you're innovating with service. Now that doesn't make any sense. How Integrated was in Desperate. These were all kind of systems of record, but really, there's some really elegant integration points to make. This one plus one equals three opportunity between these applications. >>Yeah, I think it's very similar to the stuff we do with Walton Security. It's like the core permanence. Everybody needs him like with security. Everyone is an auto. Everyone needs traceability. Everyone needs access control. But rebuilding that functionality and every application is unrealistic. And paging and alerting an on call and events are the same thing. So it's you'd rather integrate and leverage those systems that make that your nexus for that specific functionality. And that's where Page duties. Awesome way. Step in, >>which was always great to catch up. Good luck on your keynote tomorrow. And really, it's a really amazing story to watch that you got You guys have built >>Well, thank you very much. >>All right. He's Mitchell. I'm Jeff. You're watching the cue. Were paid your duty, Simon in downtown San Francisco. Thanks for watching. We'll see you next time.

>>From San Francisco. It's the cube covering PagerDuty summit 2019 brought to you by PagerDuty. >>Hey, welcome back everybody. Jeff, Rick here with the queue. We're at PagerDuty. Simon in downtown San Francisco at the Western st Francis. I think we've just about busted the seams in this beautiful old hotel. Thousand people. Fourth conference. We're excited to be here. And the big announcement today is around, you know, PagerDuty getting closer to the revenue, getting closer to the customer, getting beyond just break fix and incident response. And a huge partner. Big announcement of that was Zen desk. So we're happy to have today from Zendesk. Luke Benkei, the VP of product. Lou, great to see you. Yeah. Hey Jeff, thanks for being here. Thanks for absolutely. So before we get into the announcements and some of this stuff with the, with PagerDuty, give us kind of an update on Zendesk. We're all happy to see as Zen desk email in our inbox have been, someone's working on are working on my customer service issue. >>But you guys are a lot more than that. We are, yeah. Thanks for asking. Yes. So Zendesk started in, you know, it as a great solution for customer support and solving customer support issues. And we've really expanded recently to think more about the overall customer experience. Uh, and so that means, you know, launching more channels where customers can reach out beyond just emails and tickets to live chat and messaging and really rich experiences to communicate with your customers. But it also means, uh, you know, getting into the sales automation world and kind of helping sales and success work together, uh, on the whole customer experience and the customer life cycle. And underneath all of it, uh, our new sunshine platforms and as sunshine, it's a CRM platform that allows you to bring in a ton of information about the customer. You know, the, the products that customer owns. >>Um, you know, how they, how you've done business with them across all the different systems you have, right, that you do business with. Some, most companies we talked to have hundreds of different systems that store a little bit of information about the customer elusive three 60 degree. I mean, the single view of the customer. You know, I talked to a customer recently that said, Oh, I have 12 CRMs. Like are you going to be my 13th? And we said, no. You had to bring the right bits of information into Zandesk in order to make the right kind of actions that you want to take on behalf of that customer. Whether it's routing them to the right agent at the right time, whether that's making sure this is a VIP customer that has a, a hot deal with your sales team and you want to alert the sales rep if there's an incident that's affecting that customer open right now. >>Or maybe you want to have a bot experience that really solves a lot of the customer, uh, pain with knowing who that customer is, what products they own, et cetera. Right? So, right. That's really been what we've been trying to do with sunshine is, is move beyond just customer support into, uh, a full blown CRM solution. The one, you know, one place where a lot of your customer information can live to deliver that experience. Okay. So then we've got PagerDuty. So PagerDuty is keeping track of have more incidents, not necessarily customer problems per se, but system system incidents and website incidents and all these. How does that system of record interface with your system of record to get a one plus one makes three? That's it. I mean, so you know, if PagerDuty is the source of truth where your dev ops team and your developers and your product team are when there's an incident, you know, I've been part of this, uh, unfortunately we've, you know, if we have an incident at Zendesk, I'm, I'm in there as well kind of understanding what's happening, you know. >>But what's really missing there is that customer context and who's affected, you know, and even as good as our monitoring might be, sometimes customers tell us they're having problems, uh, or, or the extent of the problems they're having before we've fully been able to dig into it. Right? And so taking those two systems, the incident management portal and the customer record on the customer communications portal and bringing those two together, you know, it's better for the dev ops teams. They can learn. Like maybe we're getting some insight from the field about exactly who's affected and it's great for the customer support team because they don't have to sit there and tapping the, the engineer on the shoulder like have you fixed it yet? Right. What's the latest? Right. They can write within Zendesk with the new integration that that the PagerDuty Zendesk integration that we are, that we announced today, right. >>Within Zendesk, you know, reps can see a support, reps can see exactly what's happening in, in pretty close to real time with that incident so that they can keep customers proactively up to date. You know, before the customer reaches out, I have a problem, you know, they can say, Hey, here's the latest, you know, we're working on it. We estimate a fixed in this amount of time. Okay, now we've launched a fix. You should start to see things coming back up. Right. Okay. That that's a one plus one equals three. Okay. This is a two way communication. It's a two way writing. Yeah. I'm just curious, how does it, how does it get mapped? How does this particular Zen desk issue that I just sent it a note that I'm having a problem get mapped to, you know, this particular incident that's being tracked in PagerDuty. >>We got, you know, a power outage at a, at a distribution center right place. How do I know those two are related? So it's a, it's a two way integration, right? So it's installed both into the PagerDuty console as well as into Zendesk support where your agents are. And so, uh, you can create a really, it's all about the incident number and so you can create that out of, out of PagerDuty and then start attaching tickets, uh, as they come in to that incident or a customer's. Our rep could create an incident in PagerDuty, right through Zendesk. And so, you know, you're really working off of that same information about that incident number and then you're able to start attaching customers and tickets and other information that your customer support rep has to that incident number. And then you're all working off the same, you know, the same playbook and you're all understanding in real time if, if the developers are updating what's happening, the latest, the latest on it, you can sort of see that right in Zendesk and it's all based on that, that incident. >>So that's gotta be a completely different set of data and or you know, kind of power that the customer service agent has with this whole new kind of dead data set of potential if not root causes, at least known symptoms. Yeah, exactly. That's right. I mean, you know, part of our job on the product team at Zendesk is to sit with real customers and watch them shadow agents, watch them do their job every day and it's an ma even sometimes I log in and actually field tickets myself for Zendesk and it's an incredible experience to sit there and you log in and customers just start reaching out to you and they want answers, they want information. And you know, we've, we deliver a lot of automation and, and products like that, but still it's up to that customer support rep to quickly get back to that customer. >>And so to have some data right in front of them, Oh, it looks like this customer uses a certain product, that product is affected by this outage. Right. To be able to immediately have that customer support rep kind of alerted there is an outage. It might be effecting this customer, here's the latest information I can give that customer, you know, that's just less back and forth and round trips that they have to do to solve that customer's problem. Right. You know, as customers ourselves, we don't want that. We don't want to have to sit and wait or do they even know my tickets open? Do they have an update for me? I've been waiting 20 minutes, you know, to cut that down to give the agents context, it's, it's huge. It really helps them do their job. And of course the Holy grail is to not be reactive, to wait for the ticket, but to get predictive and even prescriptive. >>That's it. So where's that kind of in terms of, of your roadmap, how close are we to know adding things where we can get ahead, you can get ahead of the clients can get ahead of we see this coming down the road, let's get ahead and nip it in the bud before it even becomes a problem. Yeah, I mean, you know, we all are accustomed to whatever the last great experience we had with a company that suddenly just becomes what we expect next. And I think a big trend we're seeing in the last year or two is really customers want to get more proactive. And so we launched the Zendesk sunshine platform, which is all about bringing more of that data in. And the vision there then is really being able, which a lot of our customers are doing today. You know, they're able to say, I know which customers are using a certain product and when that product has an issue, send a proactive ticket. >>You know, before they even reach out to you were aware of an issue. You might be seeing these symptoms, here's some troubleshooting advice and here's our latest update and we'll keep this ticket up to date. We'll keep this conversation up to date as we learn more. You know, customers are already doing that was NS, but you're exactly right. That is more and more customers are trying to get there because it's becoming expected. You know, customers don't want to have to uh, log in and find that something's down and then try to troubleshoot unplugged re, you know, figure out, maybe it's me, maybe it's them. They want to know, okay, I get it. I can now plan around that. Maybe I'll go have my agents go work on a different, um, you know, updating some knowledge content or maybe put them on a different channel for a little bit or move people around depending on what's happening in the business. >>You know, the other thing that came up in the keynote that I think it's pretty saying that I don't know that people are thinking about is that there's more people that need to know what's going on than just the people tasked with fixing the problem. Whether it's account reps, whether it's senior executives, whether it's the PR team, you know, depending on the incident, there's a lot of people that aren't directly involved in fixing the incident that's still need that information and that seems like a super valuable asset to go beyond the ticket to a much broader kind of communication of the issue. As we actually, as we started to work, uh, with PagerDuty on expanding this integration with Zendesk and PagerDuty, we were talking to their team and we both have the same mantra, which is that the customer experience, it's a team sport. You know, it's not just the developers who are trying to fix the problem on behalf of the customers and it's not just your front line customer support reps who are fielding all those inquiries, right? >>It's everybody's job. In the end, as you said, the sales rep wants to know what's happening with my top accounts. Do I need to get in touch with them? Do I need to put in a phone call? Uh, you know, do I need to alert other teams? Maybe we should stop the marketing campaign that we were about to send. Cause the last thing you want is a buy more stuff, email when the site is down right now. So let's really start to think about this as a team sport. And I think this integration is a really great, uh, you know, how customer support and product and dev ops and engineering can kind of work together to deliver a better customer experience. It's, it's, so, it's, so Kate, you know, kind of multifaceted, so many things that need to happen based on that. Really seeing that single service call, that single transaction. >>Awesome. Well Luke, thanks for uh, for sharing the story and yeah, it's great to hear the Zendesk is still doing well. We are like, I like Zen desk emails like, yeah, I know. The next thing that we'll do is I will start to solve your problem before you even have to get us on that split up. Like we'll be working on your behalf even when you're not getting it. Okay. So Luke, thanks. Thanks Jeff. Appreciate it. See ya. Alright, he's Luke. I'm Jeff. You're watching the cube where PagerDuty summit in downtown San Francisco. Thanks for watching. We'll see you next time.

>>From San Francisco. It's the cube covering PagerDuty summit 2019 brought to you by PagerDuty. >>Hey, welcome back everybody. Jeff, Rick here with the cube. We're in downtown San Francisco at PagerDuty summit, the fourth year, the show third year. The cube being here. I think they finally outgrown the Western st Francis. We've got to have a better, a bigger venue but we're really excited to have our next guest doing super, super important work. We learned about this company a couple of weeks back at AWS. Imagine non profit, the Polaris company and we are happy to have Nancy Maguire. She's the CEO. >>Oh Nancy, great to see you Jeff. It's fantastic to be here. Thanks so much for having me and it's great to be back at the PagerDuty summit a second year in a row. Last year I was here last year. I'm on the big stage, is it? I've grown the venue. Are we ready to move to a larger, possibly a larger venue next year? They're doing incredible work. So really a really fortunate to interview Brad a couple of weeks ago. So for people that didn't see that, don't know players. Give us kind of the overview about what you guys are up to. What's your mission? Absolutely. So Polaris is an organization dedicated to ending human trafficking and restoring freedom to survivors. So for those that may not know what we're talking about when we talk about human trafficking is three main categories. Anybody who is forced to work against their will by means of force, fraud or coercion. >>Any adult in the commercial sex trade by means of force, fraud or coercion, and any minor, anyone 17 or younger in the commercial sex trade. And the way we think about this issue is in two halves that are complimentary. One is on the response side, we've got 25 million people around the world who fit that definition that I just described. And so it's about individual case management and helping to get them out of those situations. The way Polaris works on the response side of the issue is by operating to U S national human trafficking hotline. This is the nerve center for the anti-trafficking movement in the United States where we work 24 seven to connect to victims and survivors to the services they need to get help, stay safe, and began to rebuild their lives. So that's half of the story. The other half of the story is we recognize that the response side, while absolutely invaluable, doesn't get at solutions to the problems. >>So we work on longer term solutions to the issue of human trafficking. And the way we do that is through data and technology. So we haven't asked one of the largest data sets on human trafficking in the U S and we've mined that data for insight about how trafficking works. So we've learned there are 25 distinct types in the U S alone. We've then dug deeper to understand what are the legitimate businesses and industries that traffickers are using for their crimes. And those include social media, hotels, motels, transportation, financial services among others. And then we take those insights. We work with private sector companies, public sector, and law enforcement to get to upstream strategies to prevent and disrupt this issue at scale. So, unfortunately we don't have three days to dig through the that good list. But let's, let's unpack some of it cause it's super, super important on the, uh, on the data side, cause we're here at PG. >>So what are the types of data that you guys are looking at? The buildings mall and it was fascinating, Brad's conversation about the multiple kind of business models that you guys have have defined as was, was it lightning for sure. So what types of data are you looking at? Where are you getting the data? What are you doing with it? Yeah, absolutely. So I think the first thing to know is that this is a clandestine issue. And for so long the field has been data poor and it's been really hard to unpack what we mean by sex trafficking and labor trafficking to wrap our arms around the problem. And so we've had these really significant breakthroughs just in the last few years with a, by understanding that there are these 25 types. And that was through mining over 35,000 cases that we worked on on the national hotline over the years. >>And that our second major research initiative was to augment that with surveys and focus groups with survivors. So those with lived experience have now informed the data set and some examples of what we've learned, how our traffickers using hotels and motels for their operations, how do they use credit cards, how do they use buses and planes and trains and rideshares and how are victims recruited on social media. And conversely, how can they reach out for help, including through our hotline. Um, and so we're starting to really get granular about the nature of this problem. And then where are those key intersection points? Where do we have leverage? And a big part of the answer is, is the private sector, right? Right. So, uh, you know, the kind of the intersection from the clandestine in the dark and secret, you know, to, to the public, as you said, were things like credit cards or they need to get on planes. >>So they need hotels. It's a pretty interesting way to address the problem because there are these little, little, little points where they pop up into the light. Absolutely. So when you're doing that in your building, the longer term strategy one, it's to get the other, the people out of there. But are you trying to change the business models? I mean, how, what are some of these kind of longer term reservoirs? Absolutely. So right now the equation that traffickers perceive is this is the financial crime, right? It's not just a human rights abuse, right? Right. The equation they perceive is that this is high profit, low risk. We've flipped that equation. For instance, when financial institutions are tuned into, I have the built in red flag indicators for all the different types of trafficking that they might see. So it makes it simply too difficult for, or too risky for traffickers to bank and move their money. >>So that's one example. Another is in the realm of social media. So we've understood how traffickers are exploiting victims on social media. It can look like anything from grooming and recruitment on in sex trafficking to um, fake, uh, job ads on social media as well. So as we can help to inform social media companies, again working in tandem with victims and survivors to put those lived experiences into and leverage those insights into solutions, we can make change that equation for traffickers to it is simply too difficult and too risky to recruit online and push them to sort of more old school systems of recruitment that those are the sorts of upstream things that we believe are really going to change. Change the game, right? So it's recruiting, it's taking their money away, it's making it expensive for them to operate a lot of those types of, exactly. >>And the real focus is on these six systems and industries that we've identified. And tech is really a crucial, obviously social media companies, hotels, motels, transportation. Um, and for instance, one of the, one of our partners is Delta airlines and so they have been, I think one of the exemplars and really looking at this issue holistically and being all in from the CEO on down and leveraging again, why we think the private sector is so crucial is they've got the resources, the customer base, the engaged employees. Um, they've got the brand. And so for instance, what Delta does is they've trained all 60 plus thousand employees on how to, how to spot and detect human trafficking and what to do. They engage their customer base through PSA is and people can donate miles including that ended up, um, helping victims and survivors on our hotline to get flights to get out of their situations, um, and resources to, to support the hotline to scale. >>Um, and so it really takes that, we think the private sector is a huge piece of, of the puzzle and sort of bringing it back to the tech industry. The tech industry is uniquely position again with the tools, the resources that know how to actually supercharge this movement because it's going to be data in technology that's going to get us to scale. Right? Yeah. The, the Delta story is amazing. If for people that haven't seen it, um, you know, the CEO got completely behind this, basically train the entire company and other passengers to look for these anomalies. And, and what came up, some of the conversations in Seattle is it's really not that hard because you've got your business travelers and you got your families and you got these things that don't really fit. And that's, I don't know what percentage of the total flights, but it's a lot. >>So these things, if you're paying attention, it should be a lot easier to identify. So PagerDuty specifically, what are you guys doing with PagerDuty? Absolutely. Polaris and the broader anti-trafficking movement is engaged in a digital transformation. And so for us, that's on the response side, both on our hotline and on our data side so we can supercharge that learning and insight development. PagerDuty is central to our ability to, um, increase our efficiency on the hotline. It's, it's uh, uh, the hotline itself is composed of a number of different technologies. We cannot have any of those technologies go down because minutes and seconds matter on a crisis hotline. So PagerDuty helps us be as efficient as we can be in escalating urgent issues so they can immediately begin being worked on by our technical team. We don't lose those seconds and minutes and hours, um, as in sort of the, the old school model. >>So it's, it's part of our broader strategy and we've already been able to identify significant efficiency gains as a result when, when it's a response situation that someone's, someone got the number, they've got it, they got an opportunity to try to get out. What's the total time? Usually between they pick, picking up the phone and you giving them some action, which I don't know what the action is, runaway or somebody coming to get you or you know, it really depends on the situation. Um, of course if we're talking about a minor or a situation with imminent harm, um, but we can be talking about something, you know, an extraction or somebody getting to help within a matter of minutes. In other instances, safety planning at the victim and survivors wishes takes place over a period of calls over a period of contact. Sometimes it takes, it can take months or years to work up the courage to get to that point. >>So we do have ongoing communications with victims and survivors over time to support them, uh, to, to leave when they're, when they're ready. Right. Well, Nancy, it's such, it's such important, important work, not necessarily the most positive thing, but I'm sure there's a lot of great positive stories when you're helping these, these people get out of these crazy stories. Well, absolutely. And I think, you know, there was so much reason to be optimistic. This is a really unique moment in time and it's part of why I joined Polaris and joined this anti-trafficking movement is we're seeing, we're seeing unprecedented engagement from the private sector that I mentioned I think is absolutely critical to solving this issue when we've had real breakthroughs with the data so that we can get so much more granular and understanding how it works. So there's now really, as the time, I mean as, as as Jennifer said, she talking about digital transformation this morning, being a team sport, we think the anti-trafficking movement needs to be a team sport, right? >>We want to draw that circle a much bigger stick. Who's in that? Then we invite private sector technology companies and all of you out there to join us. Good. Well, hopefully we're helping get the word out and um, and again, you know, thank you for, for, for what you're doing. It's super important and it's much more pervasive and broad than, than I had ever imagined, perhaps some of these conversations. So thanks a lot. Thank you so much. All right. She's Nancy. I'm Jeff. You're watching the cube. We're a PagerDuty summit in downtown San Francisco. Thanks for watching. We'll see you next time.