>> Live from San Francisco. It's the Cube covering artists. A conference twenty nineteen brought to you by for scout. >> Hey, welcome back already, Geoffrey here with the Cube were in downtown San Francisco at the brand new Open. I think it's finally complete. Mosconi Center for our conference. Twenty nineteen were really excited this year. For the first time ever in the four Scout booth, we've been coming to our say for a long time. We had Mike on last last year by Caesar. President Seo >> for scout. I appreciate you having me >> because we had the last year and you're so nice. You You invited us to the way we must both done something right? Absolutely it Also, before we get too far into it, Congratulations. Doing some homework. The stock is going well. You're making acquisitions, You said it's the anniversary of going out in public. So things are things are looking good for Four. Scout >> things have been good. We've been public company now for four quarters. We've beaten, raised on every metric we had out there. So we're feeling good about >> life. So I don't think the security threats are going down. I don't think you're Tamas is shrinking by any stretch of the imagination. Definitely >> does not feel like the threat landscape is getting less challenging these days, right? I mean, when you look at all the geopolitical stuff going on between the US and China and Russia, that that usually spills into the cybersecurity world and kind of makes things a little bit more tense, >> right? So the crazy talk and all confidence now is machine learning an a I and obviously one of the big themes that came up, we had a great interview. A googol is you just can't hire enough professionals regardless of the field, especially in this one to take care of everything So automation, really key. Hey, I really key. But the same time the bad guys have access to many of the same tools so that you're in the middle of this arm raise. How are you? You kind of taken a strategic view of machine learning an A I in this world. >> So what's amazing about cyber security in two thousand nineteen is the fact that the pace of innovation is exploding at an unprecedented rate, Right? I mean, we're bringing Maur devices online every quarter now, then the first ten years of the Internet combined. So the pace of adoption of new technologies is really what is driving the need for machine learning and a I a human being. Historically, in the cybersecurity world, most corporations approach was, I'm gonna have a whole bunch of different cyber products. They all have their own dashboards. I'm going to build this thing called a cyber Operations Center of Sock. That is going to be the input of all those. But a human being is going to be involved in a lot of the research and prioritization of attacks. And I think just the volume and sophistication of the breaches these days and attacks is making those same companies turn towards automation. You have to be willing to let your cyber security products take action on their own and machine learning in a I play a very large roll back. >> Yeah, it's really interesting because there's very few instances where the eye in the M L actually generate an action. Oftentimes will generate a flag, though they'll bring in a human to try to make one of the final analysis. But it's not, not often that way, actually give them the power to do something. Is that changing? Do you see that changing are people more accepting of that when you can't give it up that >> control when you when you look at for scouts kind of core value Proposition the category that were in his device. Visibility in control device visibility. What's on the network control? When I find something that shouldn't be, there are customers. Want to block that so way? Have a front row seat on watching customers that for decades have been unwilling to allow cybersecurity products to actually take action, turning our product on everyday and allowing us to do exactly that. So when we look at the way that they approached the breaches in every one of these scenarios, they're trying to figure out how they can augment the personal staff they have with products that can provide that level of intelligence >> on nothing to >> see over and over is that people are so falih. Fallible interview to Gala Grasshopper A couple of years he was one hundred percent a social engineering her way into any company that she tried. She had a kind of cool trick. She looked at Instagram photos. He would see the kind of browser that you had, and you know the company picnic. Paige won't let me in. Can you please try this? You're one hundred percent success. So you guys really act in a very different way. You're kind of after the breaches happened. You're sensing and taking action, not necessarily trying to maintain that that print Big Mo >> we're actually on the front end were before the breach takes place. So the way our product works is way plug into the network and then we turned that network ten years ago. A CEO would would would control everything on their networks. They would buy servers and load them with products and put them in their data centers. And they bite, you know, end points and they give those to their to their employees. Those same CEOs now need to allow everything to connect and try to make sense of this growing number of devices. So both the role that we play is preventative. We are on the front end. When a device first joins that network, you need to make sure that device is allowed to be there. So before we worry about what credentials that device is trying to log in with, let's make sure that's a device that the company wants to be on the network to begin with. So to your point, exactly your right. I mean, I think my CFO and I probably every week have some very sophisticated email that makes it sound like one of us asked the other to approve a check request. But it's but they're getting good and you're right. They go on the They know that I went to Villanova, where I'm a Phish fan, and they'll leverage some form of thing. All Post online has tried to make that seem a little bit more personalized, but our philosophy is a company is very basic, which is you need situational awareness of what devices are allowed to be on that network to begin with. If you get that in place, there's a lot less examples that what you described a couple of minutes >> ago and that you said to really instinct philosophy, having kind of an agent list methodology to identify and profile everything that's connected to the network, as opposed to having having you know an OS or having a little bug on there, Which would put you in good shape for this operations technology thing, which is such a critical piece of the i O. T and the I O T transfer >> there. Now there's there's no doubt, You know, that's one of the most fourth sight ful things that, for Scout has ever done is we made the decision to go Agent Lis ten years ago, Way saw that the world was moving from you, Nick and and Lenox and Windows and all of these basic operating systems that were open and only a few of them to the world that we're in today, where every TV has a different operating system, every OT manufacturer has their own operating system, right? It's example I uses that is the Google, you know, the nest thermostat where you you, you buy that, you put it on the wall of your house, you pair with your network, and it's sitting right on line next to your work laptop, right? And and there's been Brit breaches shown that attacks can come in through a device like that and get on to a more more trusted asset, right? So just having that situational awareness is a big part to begin with. But, oh, teams, let's talk about OT for a couple of seconds is almost in front of us post Wanna cry? I am seeing almost every sea, so in the world not having had but the cyber responsibilities for OT being pulled into the O. T part of the business. And it makes sense. You know that the when you watch it a cry, a breach like Wanna cry? Most companies didn't think they bought something from Windows. They thought they bought a controller from Siemens or Gear, one of the larger manufacturers. What they realized on wanna cry was that those controllers have embedded versions of an old operating system from Microsoft called X that had vulnerabilities. And that's how it was exploited so that the approach of devices being online, which changing in front of us, is not just the volume of devices. But they're not open anymore. So the Agent Lis approach of allowing devices to connect to the network and then using the network to do our thing and figure out what's on it makes us a really relevant and big player in that world of coyote and don't. So >> do you have to hold their hand when they when they break the air gap and connect the TV into the Heidi to say it'll be okay. We'll be able to keep an eye on these things before you go. You know, you talk about air gaps all the time is such a kind of fundamental security paradigm in the old way. But now the benefits of connectivity are outweighing, you know, the potential cost of very >> difficult, right? I mean, one of the examples I always uses. PG and E are local power company here. We're up until a few years ago, they'd have a human being. A band would come to your house and knock on your door, and all they wanted to do is get in your garage to read your meter, right? So they could bill you correctly. And then they put smart meters on the side of our houses. And I'm sure the roo I for them was incredible because they got rid of their entire fleet as a result, but recognized that my house is Theo T grid, now connected back to the side, which is Billy. So there's just so many examples in this connected world that we're in. Companies want to do business online, but online means interconnectivity. Interconnectivity means OT and connected so Yes, you're absolutely right. There's many companies believe they have systems air gapped off from each other. Most of those same cos once they get for Scout Live recognized they actually were not air gapped off from each other to begin with. That's part of the role that we play. >> This cure is to get your >> take. You talk to a lot of sizes about how kind of the the types of threats you know have evolved more recently. You know, we saw the stuff with presidential campaign. The targets and what they're trying to do has changed dramatically over the last several years in terms of what the bad guys actually want to do once they get in where they see the value. So how has that changed? No, it's not directly because you guys don't worry about what they're trying to do bad. You want to protect everything. But how is that kind of change from the size of perspective? >> Our customers are government's financial service companies, health care companies, manufacturing companies. Because every one of those companies, I mean, it sounds basic. But if you knew the bad thing was plugged into your network, doing something bad you would've blocked it. You didn't know it was there to begin with. So we actually have a role in all types of threats. But when you look at the threat landscape, it's shifted your right. I mean, ten years ago, it was mostly I p theft. You were hearing examples of somebody's blueprints being stolen before they got their product into the market. WeII. Then soft financial threat shifted. That's still where the bulk of it is today, right? No, they ransomware attacks. I mean, they're all money motivated. The swift breaches. They're all about trying to get a slice of money and more money moves online that becomes a good hunting ground for cybersecurity attackers. Right? But what? What is now being introduced? A CZ? Well, as all the geopolitical stuff. And I think you know with, with our commander in chief being willing to be online, tweeting that with other organism governments worldwide having a more social footprint, now that's on the table. And can you embarrass somebody? And what does that mean? And can you divide parties? But, yeah, there's there's a lot of different reasons for people to be online. What's amazing is the attacks behind them are actually fairly consistent. The mechanisms used right toe actually achieve those that you know that you know the objectives are actually quite similar. >> I'm curious from the site's perspective >> and trying to measure r A Y and, you know, kind of where they should invest in, not a vest, How the changing kind of value proposition of the things that they that are at risk really got to change the dynamic because they're not just feeling a little bit of money. You know, these air, these are much more complex and squishy kind of value propositions. If you're trying to influence our election or you're trying to embarrass somebody or you know, >> that's kind of different from anything. If it's state funded sheriff, it's believed to be state funded. It typically has a different roo. I model behind it, right, and there's different different organizations. But, you know, like on the OT side that you described a second ago, right? Why is OT so hot right now? Because it's one thing to have a bunch of employees have their laptops compromised with something you don't want to be on their right. It's embarrassing. Your emails get stolen it's embarrassing. It's a very different thing when you bring down a shipping line. When a company can't shift, you know can't ship their products. So the stakes are so high on the OT side for organizations that you know, they are obviously put a lot of energy and doing these days. >> You need talk about autonomous vehicles, you know, misreading signs and giving up control. And you know what kinds of things in this feature? Right, Mike? So if we let you go, you're busy. Guy, get thanks >> for having us in the booth. What do your superiors for twenty nineteen, you know for us at Four Scout, the priorities are continuing to execute. You know, we grow our business thirty three percent. Last year. We achieved free cash flow profitability, which is the first time in the company's history. So way of obligation to our investment community. And we intend to run a good, solid business from a product perspective. Our priorities are right in the category of device visibility and control its one of things. When you look around this conferences, you know cos cos had to be careful. They don't increase their product size too quickly. Before they have the financial means to do so. And we just see such a large market in helping answer that question. What is on my network? That's our focus, and we want to do it across the extent that enterprise at scale. >> Yeah, I've sought interesting quote from you on one of their earnings calls that I thought was was needed. A lot of people complain What, you go public. You're on the ninety day shot clock in that that becomes a focus. But your your take on it was now that everything's exposed country spending an already how much spinning a marketing I'm in shipping, it sails that it forces you to really take a deeper look and to make tougher decisions and to make sure you guys are prioritizing your resource is in the right way, knowing that a lot of other people now are making those judgments. >> You know, Listen, the process of raising money and then going public is that you have to be willing to understand that you have an investment community, but you have an obligation to share a lot of detail about the business. But from the other side of that, I get a chance to sit in front of some of the smartest people on the planet that look att my peer companies and me and then provide us input on areas that they're either excited about are concerned about. That's amazing input for me and helps me drive the business. And again, we're trying to build this into a big, organically large cybersecurity business, which is a rare thing these days. And we're quite were very how aboutthe trajectory that we're on. >> Right? Well, Mike, thank you. Like just out with smart people like, you know, I appreciate it and learned a lot. So you congrats on this very much. >> Sorry. He's Mike. I'm Jeff. You're watching The Cube were in the Fourth Scout booth at RC North America. Mosconi Center. Or in the north North Hall. Just find the Seibu. Thanks for watching. >> We'LL see you next time.