>>Live from Barcelona, Spain. It's the Cube covering Cisco Live 2020 right to you by Cisco and its ecosystem partners. >>Welcome back, everyone to the Cube's live coverage Day four of four days of wall to wall action here in Barcelona, Spain, for Cisco Live. 2020. I'm John Furrier with my co host Dave Volante, with a very special guest here to wrap up Cisco Live. The president of Europe, Middle East Africa and Russia. Francisco Wendy Mars Cube Alumni. Great to see you. Thanks for coming on to. I kind of put a book into the show here. Thanks for joining us. >>It's absolutely great to be here. Thank you. >>So what a transformation. As Cisco's business model of continues to evolve, we've been saying brick by brick, we still think big move coming. I think there's more action. I can sense the walls talking to us like Cisco live in the US and more technical announcement. In the next 24 months, you can see you can see where it's going. It's cloud, it's APS. It's policy based program ability. It's really a whole another business model shift for you and your customers. Technology shift in the business model shift. So I want to get your perspective this year. Opening. Keynote. Oh, you let it off Talking about the philosophy of the business model, but also the first presenter was not a networking guy. It was an application person. App dynamics. Yep, this is a shift. What's going on with Cisco? What's happening? What's the story? >>You know, if if you look for all of the work that we're doing is is really driven by what we see from requirements from our customers to change, that's happening in the market and it is all around. You know, if you think digital transformation is the driver organizations now are incredibly interested in, how do they capture that opportunity? How do they use technology to help them? But, you know, if you look at it, really, there's the three items that are so important it's the business model evolution. It's actually the business operations for for organizations. Plus, there people, they're people in the communities within that those three things working together. And if you look at it with, it's so exciting with application dynamics there because if you look for us within Cisco, that linkage off the application layer through into the infrastructure into the network. And bringing that linkage together is the most powerful thing because that's the insights and the value our customers are looking for. >>You know, we've been talking about the the innovation sandwich, you know, you got data in the middle and you've got technology and applications underneath. That's kind of what's going on here, but I'm glad you brought up the part about business model. This is operations and people in communities. During your keynote, you had a slide that laid out three kind of pillars. Yes, people in communities, business model and business operations. There was no 800 series in there. There was no product discussions. This is fundamentally the big shift that business models are changing. I tweeted provocatively, the killer wrap in digital business model. Because you think about it. The applications are the business. What's running under the covers is the technology, but it's all shifting and changing, so every single vertical every single business is impacted by. This is not like a certain secular thing in the industry. This is a real change. Can you describe how those three things are operating with that can >>sure. I think if you look from, you know, so thinking through those three areas. If you look at the actual business model itself, our business models is organizations are fundamentally changing and they're changing towards as consumers. We are all much more specific about what we want. We have incredible choice in the market. We are more informed than ever before. But also we are interested in the values of the organizations that we're getting the capability from us as well as the products and the services that naturally we're looking to gain. So if you look in that business model itself, this is about, you know, organizations making sure they stay ahead from a competitive standpoint about the innovation of portfolio that they're able to bring, but also that they have a strong, strong focus around the experience, that they're customer gains from an application, a touch standpoint that all comes through those different channels, which is at the end of the day, the application. Then if you look as to how do you deliver that capability through the systems, the tools, the processes? As we all evolve, our businesses have to change the dynamic within your organization to cope with that. And then, of course, in driving any transformation, the critical success factor is your people and your culture. You need your teams with you. The way teams operate now is incredibly different. It's no longer command and control. It's agile capability coming together. You need that to deliver on any transformation. Never, never mind. Let it be smooth, you know, in the execution they're all three together. >>But what I like about that model and I have to say, this is, you know, 10 years of doing the Cube, you see that marketing in the vendor community often leads what actually happens. Not surprising as we entered the last decade, there's a lot of talk about Cloud. Well, it kind of was a good predictor. We heard a lot about digital transformation. A lot of people roll their eyes and think it's a buzzword, but we really are. I feel like exiting this cloud era into the digital era. It feels, really, and there are companies that get it and are leaning in. There are others that maybe you're complacent. I'm wondering what you're seeing in Europe just in terms of everybody talks digital, every CEO wants to get it right. But there is complacency. Their financial services said Well, I'm doing pretty well, not on my watch. Others say, Hey, we want to be the disruptors and not get disrupted. What are you seeing in the region? In terms of that sentiment, >>I would say across the region, you know, there will always be verticals and industries that slightly more advanced than others. But I would say that the bulk of conversations that I'm engaged in independence of the industry or the country in which we're having that conversation in there is a acceptance off transfer. Digital transformation is here. It is affecting my business. I if I don't disrupt, I myself will be disrupted and we challenged Help me. So I You know, I'm not disputing the end state and the guidance and support soon drive the transition and risk mitigated manner, and they're looking for help in that there's actually pressure in the board room now around a what are we doing within within organizations within the enterprise service, right of the public sector, any type of style of company. There's that pressure point in the board room of Come on, we need to move it speed. >>Now the other thing about your model is technology plays a role and contribute. It's not the be all end. All that plays a role in each of those the business model of business operations developing and nurturing communities. Can you add more specifics? What role do you see technology in terms of advancing those three years? >>So I think, you know, if you look at it, technology is fundamental to all of those fears in regard. Teoh Theo innovation that differentiation technology could bring the key challenges. One being able to apply it in a manner where you can really see differentiation of value within the business. So and then the customer's organization. Otherwise, it's technology for the sake of technology. So we see very much a movement now to this conversation of talk about the use case, the use cases, the way by which that innovation could be used to deliver value to the organization on also different ways by which a company will work. Look at the collaboration Kate Capability that we announced earlier this week of helping to bring to life that agility. Look at the the APP D discussion of helping the link the layer of the application into the infrastructure of the network to get to root, cause identification quickly and to understand where you may have a problem before you actually arises and causes downtime many, many ways. >>I think the agility message has always been a technical conversation. Agile methodology, technology, softer development, No problem check. That's 10 years ago. But business agility is moving from a buzz word to reality. Exactly. That's what you're kind of getting. >>Their teams have. Teams operate, how they work and being able to be quick, efficient, stand up, stand down and operate in that way. >>You know, we were kind of thinking out loud on the Cube and just riffing with Fabio Gori on your team on Cisco's team about clarification with you, Gene Kim around kind of real time. What was interesting is we're like, Okay, it's been 13 years since the iPhone, and so 13 years of mobile in your territory in Europe, Middle East Africa mobility has been around before the iPhone, so more advanced data privacy much more advanced in your region. So you you you have a region that's pretty much I think, the tell signs for what's going on North American around the world. And so you think about that. You say Okay, how is value created? How the economics changing this is really the conversation about the business model is okay. If the value activities are shifting and being more agile and the economics are changing with SAS, if someone's not on this bandwagon is not an end state discussion, very. It's done Deal. >>Yeah, it's But I think also there were some other conversation which, which are very prevalent here, is in the region so around trust around privacy law, understanding compliance. If you look at data where data resides, portability of that data GDP our came from Europe has pushed out on those conversations will continue as we go over time. And if I also look at, you know, the dialogue that you saw, you know, within World Economic Forum around sustainability that is becoming a key discussion now within government here in Spain, you know, from a climate standpoint and many other areas >>as well. David, I've been riffing around this whole where the innovation is coming from. It's coming from your region, not so much the us US. We've got some great innovations. But look at Blockchain. Us is like, don't touch it pretty progressive outside United States. A little dangerous to, But that's where innovation is coming from, and this is really the key that we're focused on. I want to get your thoughts on. How do you see it going? Next level? The next level. Next. Gen Business model. What's your What's your vision? >>So I think there'll be lots of things if we look at things like it with the introduction. Introduction of artificial intelligence, Robotics capability five g of course, you know, on the horizon we have Mobile World Congress here in Barcelona a few weeks time. And if you talked about with the iPhone, the smartphone, of course, when four g was introduced, no one knew what the use case where that would be. It was the smartphone, which wasn't around at that time. So with five G and the capability there, that will bring again yet more change to the business model for different organizations and capability and what we can bring to market >>the way we think about AI privacy data ownership becomes more important. Some of the things you were talking about before. It's interesting what you're saying. John and Wendy, the GDP are set this standard and and you're seeing in the US they're stovepipes for that standard California is gonna do want every state is gonna have a difference, and that's going to slow things down. It's going to slow down progress. Do you see sort of an extension of GDP, our like framework of being adopted across the region, potentially accelerating some of these sticky issues and public policy issues that can actually move the market forward? >>I think I think that will because I think there'll be more and more if you look at this is terminology of data. Is the new oil What do you do with data? How do you actually get value from that data? Make intelligent business decisions around that? So, yeah, that's critical. But yet if you look for all of ours, we are extremely passionate about where's our data used again? Back to trust and privacy. You need compliance, you need regulation. And I think this is just the beginning off how we will see that >>evolving. You know, when you get your thoughts. David, I've been riffing for 10 years around the death of storage. Long live storage. But data needs to be stored somewhere. Networking is the same kind of conversation just doesn't go away. In fact, there's more pressure now to get the smartphone. That was 13 years ago, before that. Mobility, data and Video. Now super important driver. That's putting more pressure on you guys. And so hey, we did well, networking. So it's kind of like Moore's Law. More networking, more networking. So video and data are now big your thoughts on video and data video. >>But if you look out the Internet of the future, you know what? So if you look for all of us now, we are also demanding as individuals around capability and access of. That's an Internet of the future. The next phase. We want even more so they'll be more more requirement for speed availability, that reliability of service, the way by which we engage in we communicate. There's some fundamentals there, so continuing to grow, which is which is so, so exciting force. >>So you talk about digital transformation that's obviously in the mind of C level executives. I got to believe security is up. There is a topic one other. What's the conversation like in the corner office when you go visit your customers? >>So I think there's a There's a huge excitement around the opportunity, realizing the value of the of the opportunity on. You know, if you look at top of mind conversations around security around, making sure that you can make taint, maintain that fantastic customer experience because if you don't the customer go elsewhere, How do you do that? How do you enrich at all times and also looking at market? Jason sees, you know, as you go in a new tour at senior levels, within, within organizations independent of the industry in which they're in. They're a huge amount of commonalities that we see across those of consistent problems by which organizations are trying to solve. And actually, one of the big questions is what's the pace of change that I should operate us on? When is it too fast? And one is one of my too slow and trying to balance that is exciting but also a challenge for a company. >>So you feel like sentiment. There's still strong, even though we're 10 years into this, this bull market you get Brexit, China tensions with US US elections. But but generally you see sentiment still pretty strong demand. >>So I would say that the the the excitement around technology, the opportunity that is there around technology in its broader sense is greater than ever before. And I think it's on all of us to be able to help organizations to understand how they can consume and see value from us. But it's a fantastic times, >>gets economic indicators way. So >>I know you >>have to be careful, >>but really, the real I think I'm trying to get to is is the mindset of the CEO. The corner office right now is it is that we're gonna we're gonna grow short term by cutting or do we going to be aggressive and go after this incremental opportunity? And it's probably both. You see a lot of automation in cars >>both, and I think if you look fundamentally for organizations, it's it's the three things helped me to make money, how to save money, keep me out of trouble. So those are the pivots they all operate with on, you know, depending on where an organization is in its journey, whether they're start up there in the middle, the more mature and some of the different dynamics and the markets in which they operate in a well, there's all different variables, you know? So it's it's it's mixed. >>Wendy, thanks so much to spend the time to come on. The Cube really appreciate great keynote folks watching. If you haven't seen the keynote opening section, that's good. Second, the business model. I think it's really right on. I think that's gonna be a conversation will continue. So thanks for sharing that before we look. Before we leave, I want to just ask a question around, What? What's going on for you here in Barcelona? As the show winds down, you had all your activities. Take us in the day in the life of what you do. Customer meetings. What were some of those conversations? Take us inside inside. What? What goes on for you here? >>I tell you, it's been an amazing It's been amazing few days, So it's a combination of customer conversations around some of the themes We just talked about conversations with partners. There's investor companies that we invest in a Cisco that I've been spending some time with on also spending time with the teams as well. The definite zone, you know, is amazing. We have this afternoon the closing session where we got a fantastic, um, external guests who's coming in is going to be really exciting as well. And then, of course, the party tonight and will be announcing the next location, which I'm not going to reveal now. Later on today, >>we kind of figured it out because that's our job is to break news, but we're not gonna break it for you to have that. Hey, thank you so much for coming on. Really appreciate. When any market in Europe, Middle East Africa and Russia for Cisco she's got her hand on the pulse and the future is the business model. That's what's going on. Fundamentally radical change across the board in all areas. This is the Cube, bringing you all the action here in Barcelona. Thanks for watching. >>Yeah, yeah,