>> Announcer: Live from Las Vegas, it's the Cube, covering Dell EMC World 2017. Brought to you by Dell EMC. >> Hello everyone, welcome to the Cube special coverage of Dell EMC World 2017. This is the Cube Silicon Angle's flagship program where we go out to the events and extract the signal from the noise. This is our eighth year of covering EMC World, but now called Dell EMC World. I'm John Furrier, your co-host on our set one and with my co-host Paul Gillin this week as well as Kieth Townshend and John Walls and Rebecca Knight on set two. Double barrel shotgun of content here at Dell EMC World with you. Thanks for joining us for three days of wall to wall coverage. Paul, so much to talk about here this week. Digital transformation, little bit boring theme, it's being played out in real time. But this is a historic moment because one, the Cube started at EMC World in 2010, eight years ago. But, this is the first official EMC World where it's Dell EMC World, kind of a mini event in Austin, but since Michael Dell took over, or I'm sorry, merger of equals, a combination. >> Paul: Combination, as they call it. >> (chuckling) Combination. This is the first instantiation of EMC World as Dell EMC World. Jeremy Burton's now the CMO of Dell Technologies which is the holding company for all the companies. It's the same EMC World flair, now the integrated content. Notable absent Cube alumni and executives from EMC. We'll talk about that in the EMC Mafia segment shortly, but (chuckling) your thoughts because now Michael Dell's puttin' the rubber to the road. Kind of nothing earth shattering in his keynote, but certainly private company, all guns blaring, smiling and dialing, he's got the swagger on stage. >> Well, Michael is nothing if not an optimist. He's always good at seeing a brighter future, and at his keynote this morning, as you said it was blissfully free of content, but it did talk a lot about digital transformation which is of course the buzzword of the year in the IT industry. Little surprised that Dell adopted the same buzzword that HP and Cisco and all these other big companies are adopting. What happened in the keynote is less interesting than how the mood changes here, and this is the coming out party for Dell EMC. Yeah, there was a conference last October, a month after the merger, but this is really, things have finally settled out, now six months later and it's a chance for customers and for the partners to get a sense of how well this is all working out. >> And one of the things I'm watching is how the story's unfolding 'cause now you're starting to see the big companies, certainly in the consolidation side of the business market of infrastructure and data center and enterprise IT, it's a consolidating mature market. It is transforming, there is a cloud story requirement, there are new software requirements, software defined data center, as well as new growth opportunities, so what I'm looking at is what is the story? What is Michael packaging and how does that compare to the competition? We're going to hear from HPE at HPE Discover coming up, the Cube will be covering that for the seventh consecutive year. We're seeing Amazon's story playing out in real time. Oracle's story, everyone's got their story. And it's certainly digital transformation but what's interesting is Michael's got the packaging. He's packaging it up, your thoughts. >> And Michael kind of dissed the cloud this morning, actually in his presentation. He said, you can't have a successful business, or your business is not going to grow as quickly if you're 100% cloud based. He was very much making a pitch for data center infrastructure. Really not surprising coming from Michael. One thing that will be a sub-theme here I think is how this merger is working out, and as we wrote on Silicon Angle this week, if you go back to the history of big mega mergers, particularly in the hardware industry, going back to Burroughs Sperry, DEC Compaq, HP Compaq, Wellfleet Synoptics and NCR AT&T. I mean, it goes on and on and on. Pretty much all disasters, and we really haven't seen a merger anywhere near this scale between two IT companies that has worked well. All indications are now that they're doing the right things, they even have some people on board with Dell EMC who went through some of those mergers. But it's going to be interesting to see how they break a pattern that has been decidedly negative. >> Great point, I loved your post by the way, and I would add that interesting observation, at least from my perspective is, as we sit down with these billionaires and interview them one-on-one on the Cube is, you look at Amazon, Andy Jasse and Jeff Bezos, Bezos in particular. Larry Ellison and Michael Dell, you have essentially captains of industry at the helm. Michael Dell is no spring chicken, but he's also not over the hill either, he's 51 years old. >> Paul: He's a kid relative to most leaders in this industry. >> You know, you hear Jeff Bezos talk and I was watching his talk in DC just this week, he's saying we're taking the long view. If you look at Amazon.com's CEO, Bezos, look at Michael Dell, look at what Ellison's doing, they're all playing the long game card. Now I don't know if that's a hedge against we don't have our story right, or give us more time to bake out our stuff, but I think what's different about Dell Technologies is, Michael's 33 years into the business, one trillion dollars later in sales and he's young, so I think that is a wild card. Ellison's still running the show, Bezos is still running the show, Dell's certainly running the show. I think the wild card on this is the fact that you got a strong founder, and a privately held company. >> And Ellison, it's questionable how long Ellison will be able to run the show, I mean he is over 70 at this point. Dell certainly will be around for a long time. You have to take a long term strategy. If you're not Amazon, you have to take a long term strategy 'cause what other choice do you have? You've lost in the short term, so it's not surprising to hear these guys going that way. I'll be interested to hear from Michael and from his team about the cloud and how they really design and differentiate its strategy. I think IBM has staked its position in cloud out pretty well. Even HPE has got a differentiated position. HPE of course has the configurable hardware, that's a point that Dell I think has to come back on, and the big question is software. John, as you pointed out the other day, VMware is worth more than HPE, by a substantial margin at this point. They've got this huge asset in VMware, not to mention Virtuestream and Pivotal and the other good software assets they acquired. What are they going to do with them? Are they just going to let 'em go free like Michael has done in the past, or are they going to try to mold these into some kind of coordinated whole? >> Well, great point one is on the HPE valuation thing market cap, VMware's actually worth more on market cap and public markets than HPE. Interesting, but not significant in my mind yet, but it does point to the fact that Michael Dell's rhetoric on stage today, he didn't take any shots at HP. Last year he took a big shot at HPE. It's been his rival from day one. I used to work at HP when he was just a mail order company selling white boxes and then he grew that business, obviously the rest is history, but no shot at HP because VMware has to work with HP. Right, (chuckling) so that's interesting. Two is, on the software side, Dell is a hardware company, let's face it. But they have more software now than they've ever had before so that is a good point, we're going to be getting into this date software defined data center to find out how much they actually have. A couple core themes that I see already popping out of the keynote, one, Pivotal. Pivotal and Cloud Foundry's instrumental in the keynotes. NSX was mentioned, Pat Gelsinger's going to be on tomorrow. NSX is VMware's secret play. If you look at what NSX is doing with the Amazon public cloud deal that they did recently this year, NSX could be the real lever in that intellectual property, that lock in, that kind of differentiation. The cloud is not a place, it's a way of doing IT is another message we heard all day today. To me, and your point about bashing cloud, I actually think that's a stake in the ground to kind of hold the line, because they have no cloud strategy. Now, their cloud strategy is kind of hand waiving right now with multi-cloud, which I buy, but multi-cloud is still a fantasy in my mind. Latencies are too low, there just isn't the kind of plumbing yet in place on the clouds for multi-cloud, but certainly hybrid-cloud I think will be multi-cloud roll, so those are the key things and then I'm going to ask Michael directly. You blew 60 billion dollars on this deal. Is there any cash left for M&A? >> Paul: Acquisitions, yeah. >> M&A right now is hot market, you can do some nice tuck ins, fill in the white spaces on the products. Get those software assets and really start cobbling together a growth strategy. There's no doubt in my mind, Paul, that they're going to win the mature, classic business school move of consolidated market. Own the consolidated market, and try to get a growth strategy. To me, that's going to be the big question. What is Dell Technologies and Dell EMC's growth strategy? >> And you would have to think it's either through M&A, perhaps an acquisition of HPE if the valuation continues to go down. Or it's in software It's a good point you made about VMware. Vmware also has a strategic alliance with IBM, so if you're Michael Dell, it's hard to give a compelling keynote speech these days because you can't really offend anybody. His companies now are in cahoots with all these other firms, and of course dissing the cloud is even dangerous because Cloud Foundry is such a critical part of the Pivotal strategy. I think it's an important point, you've got a company that is almost trying to reassemble the old IBM, the old IBM of the '80s which dominated every segment that was important Dell is almost doing that now, I mean the only piece they really don't have is networking. To make a big play, to become the mongo IT company in the world, can they raise the kind of funds for that? >> Yeah, and we're also going to talk about the cloud transition as well as what I'm calling the EMC mafia, folks that have been on the Cube and big executives at EMC. We'll get to that in a minute, but I just want to talk about that cloud play, because you're right, the growth strategy has to come from software. I just don't see the cloud growth yet for these guys, although Michael, in the hallway, conversations are growth in the cloud is doing really well for EMC, not sure. But on the growth strategy, Pivotal, Boo-Mee, Vmware, Virtuestream, and Software Converge Infrastructure are interesting plays, so I think that's where we have to look here. I still think there's a lot of holes in the product line. To me that's important. Now, trends so far, and what we're expecting to hear at the show is, some of my notes Paul, I'll share with you, and get your reaction on. All flash arrays are going to be big, continuing to grow that. Hyperconverge VX rail, we heard that on stage today, claiming to be number one. Power edge 14G. Again, back to speeds and feeds, (chuckling) you know. Storage. Storage is the bread and butter of EMC and now Dell EMC I still think is going to be a real critical beachhead that they going to continue to expand, storage is not going away. Obviously the ice lawn all flash is coming out, and then SSD's, data protection in the cloud. You're starting to see them going where their roots are. Cloud stuff is coming out of the data domain, kind of their core storage first, make sense strategy wise, while they buy their time to fill in the cloud. >> Well, it's a good point about storage. They have a comfortable lead in storage. According to the latest IDC figures, they're a good 15 points ahead of their next biggest competitor. They have a comfortable lead in the hyper converge infrastructure. Four different product lines in that area. These are beachheads that they have to shore up. They have to be sure that their market share doesn't erode in those areas. The question is where does the growth come from? You look at a company that's going through a very similar transition right now, Cisco, which has finally really bought in to software defined networking and is remaking its company around it. That company is having to change the whole culture in response to a technology trend. Now the same thing's going on in the data center. Everything's being remade as virtualized and Vmware is at the center of that, so Michael Dell has the asset to be able to lead that conversion, but are they psychologically going to get there? >> Great point. One, I would agree with you that the whole Cisco example proves the same channel that Dell EMC is. Can they move up the stack? In this case, they're hardware guys, can they add software. Cisco, they're transforming themselves to be more cloud native. The classic move's happening. Cisco have been trying to move up the stack for over a generation. They're plumbing guys, they're networking guys. These guys are hardware guys. Can they get the DNA to truly become software providers, not in the sense of selling software, just providing a software fabric that's going to be the key differentiators, because digital transformation is about IT transformation. That is certainly the reality, what we're seeing when you start to peel back the onions. And that to me is going to be the big discussion because as David Gooldun said on stage, apps provide the value. As the enterprises build more apps, you got to have a platform, you got to have a cohesive horizontal end to end software fabric, and the question is, do they have it? >> Well, they certainly have the foundation for it, I mean they have Pivotal, there's a whole developer community around Pivotal. Dell itself doesn't have a developer community, nor does EMC but they have elements of that to build upon. The interesting thing about the conversion to software, about software defined infrastructure, is that it requires thinking from an application perspective and that's not something hardware companies have ever been inclined to do. So, how does Michael Dell make that transition, has he made it himself, is there other leadership he's going to have to bring in who are going to make it for him? The whole leadership of the Dell EMC company right now is ex-Dell and EMC people, it's hardware guys. >> I'm going to put pressure on Dell, the question on software. But you wrote a two part series on SiliconAngle.com, worth checking out, getting a lot of viral buzz around open source and the value of open source, because if you look at say Cisco for instance, what they're doing with the cloud native strategy, they have actually pivoted and Chuck Robbins, the CEO has acknowledged, actually re-tweeted one of my tweets the other day, with as we were talking about this new program called DevNet Create. They're taking the developer program from Cisco and moving it into an open community model, which basically is the toe in the water for saying, we have to figure out open source. All the critical, big vendors that are transforming from called the old guard, as Amazon calls 'em, Amazon Web Services, Andy Jasse. Dell's an old guard guy, but still young, but they got to get to open source. What are you finding is the success parameters there because you got to play in the open source, be a contributing member. Again, back to the DNA of the culture, and two, there's real value there. >> Well, there's no question that open source has won when it comes to infrastructure. I mean, the biggest IT companies in the world which are Google and Facebook, are both built on open source platforms. Game over. This is where IT infrastructure is headed. Cisco, interesting case because they are an infrastructure company, and they are being eroded, their traditional market is being eroded by open source, they've chosen to embrace it through their developer community. Cisco is one company I would never bet against. They're such a great company. If anyone's going to make the transition, they will. Open source is still an infrastructure play. I don't see open source in the applications area being a major driver, but Dell is an infrastructure company, so you have to assume that everything they're doing in managing, in securing storage and servers is going to be under pressure from open source at some point. They have to embrace that as Cisco is doing. >> Paul, we had thought leader chat with some experts on our digital panel, software crowd chat, everyone knows crowdchat.net, check it out. And comment and conversation was taking place among the influential folks saying, what is a software company? You go back to the web, shrink wrapped, download software, to now fully SAS based and Saas now platform, what is a software company? So, the question was, is Facebook a software company? Or are they an app company? Which begs the question, you have to be a software company, but it's not the classic software company category, business model. You need software (chuckling) to run stuff, so you can be a hardware guy, like Michael Dell, and have Dell Technologies. You can be a network company like Cisco, but you've got to be a software company in the new way. >> Well, I spoke to a Forester analyst in writing that piece on open source who had a great point, he said Facebook and Google are two big successful software companies, neither of which makes. >> Any money. >> Any money, a little bit in Google's case licensing software. They created business models that have nothing to do with the traditional software model, but that have leveraged their expertise in the software that they've developed. And maybe that is the business model, ultimately the business model is building software in order to do something else with it that customers will pay for. >> I think you're on to something. I think your post illuminates that. I think that this is going to be one of those things where in the history books of the tech generation, as we're on our whatever wave of open source generation, this is it, it's not about the business model of the software, it's how the software's being used in the business model of the transformation. That is really really key. Paul, I want to just talk about, really quickly about my observation at EMC. A little bit of editorial moment here. Because, Dell took over. Dell EMC. We've interviewed now eight years, pretty much all the executives at EMC over the years, but there's an EMC mafia developing. There's a lot of people who have left EMC, that we know, we're friends with. Guy Churchwood, CJ DeSai, Josh Conn, Rich DePellatano, Brian Gallagher, BJ Jenkins, Sanjay Murchandani, and many more have left because of the consolidation. Certainly you can't, EMC's going to get consolidated down, but no major layoffs but still enough that some eagles have flown from the nest, as they say and are running other companies. So you have this EMC culture out there of very sales oriented, very customer centric, now running other companies, and I want to give a shout out to all those EMC alumni and mafia out there. Good luck on your new ventures, but the impact here to Dell is a mashup of the two cultures. What's your observation, what's your reaction of that. Have you heard anything? I have some thoughts, but I want to get your reaction because okay, some eagles fly away, you still got the worker bees inside EMC, and now Dell coming together. Thoughts on the culture clash. >> Well, I live in Boston, and so I've been through the acquisition of Prime Computer, through EMC acquiring Data General, through the DEC acquisition by Compaq. All of which were disasters, and all of which where the cultural issues were much bigger than the technology issues. So, I think that that is something that Dell has to be front and center for Michael Dell, is how do you mash up these two cultures. As you pointed out, EMC, very aggressive, take no prisoners, enterprise-oriented sales force. Their sales people make a lot of money. I used to live in a neighborhood where everyone was EMC salespeople. >> John: Buying new houses. >> They were making a million dollars a year. And you've got Dell with its direct model, with its channeled model, and without a particularly strong roots in enterprise sales force and how do you coordinate those. It's not surprising to see people leaving. Of course, in the early days after an acquisition, choices get made, people get promoted and moved in new positions. Those who lose out tend to leave the company. But, I think the sales issue would be something to delve into too. Does Dell want to adopt EMC's sales style, or the other way around? Or is there some way that they can live both in harmony? >> You know, I follow a lot of companies in Silicon Valley as well, I'm out there on the west coast, left coast, as they say. Where all the crazy ones are, as they say. But I got to say, there's been some shrinkage on EMC, but for the most part, I haven't really heard any really negative horror stories. Actually, it's been going pretty well, and I think you bring up an issue of effectiveness with the sales folks. Dell's an efficiency guy, right so you got effectiveness and efficiency coming together. But I think they've handled it well. I really haven't heard any real horror stories. Again, I think that has to do with the founder being actively involved, they're a private company, so they have some room. And I think they've invested in making that happen, so I think generally, props to EMC folks and for the Dell folks on the acquisition. Still not clear the woods yet, it's going to surely be in the products and the revenue, but for the most part, we're going to unpack that. So Paul. >> But you can't, I just wanted to jump in just quickly. You can't minimize customer touch, and EMC was always a high touch company. Outstanding service, they put people on a plane in the middle of the night, charter a private jet in the middle of the night to get someone on site at a customer to fix a problem. As you mentioned, Dell is an efficiency company. That's not a very efficient way to operate. Can they absorb the best of EMC and the best of Dell at the same time? >> Yeah, well we'll certainly tell, I mean they got a lot of competition, Michael Dell saying on stage. (mumbling) startups, essentially what's he's saying is Amazon, there in my opinion, although that's not probly what he really meant but that's my interpretation. But I'm expecting to see the same old EMC world with a twist, and that is, we're doin' good, the messaging's out there, we're going to see how the products compare vis a vis the competition. I'm interested in Vmware piece. Paul, what are you looking forward to? >> I'm looking forward to hearing how this is all going, how this company is culturally, what kind of a cultural chimera they're putting together here that's going to make sense, that the market is going to understand. I also want to hear how they're going to differentiate in cloud, internet of things, we just heard a little bit about that this morning. That's something where I think you're seeing Cisco. The way Cisco's dealing with the cloud these days is to say, don't worry about it, it's all going IOT. It's all going to distributed intelligent devices, the cloud is already history, is what they're saying. So, does Dell have a similar differentiated position on that. I'm least interested in hearing about the new products because it's speeds and feeds. But really, how is this company going to dominate an industry, how is it going to get over some of the speed bumps that we've been talking about for the last 20 minutes that have foiled so many merger attempts in the past. >> One of the tell signs that I look at a conference when I see a lot of AI washing. The good news is, there's not a lot of AI being talked about here, 'cause usually that's just lipstick on the pig, as they say. Except for the case of Google and Amazon Web Services, they do have some AI story, with some real products to back it up. For the most part, you're not seeing EMC glob on the whole machine learning, rah rah. They did talk about it but it wasn't like a big theme. I think they really talked about the packaging of the value. Of the brands together, comments around costs for public cloud, nice little ding there. I'm going to dig into the story. I'm going to really test the story, and I'm going to look at the customer traction. I really want to see who they have on stage, I really want to hear who's really going down the road, how that growth strategy, 'cause I think they're going to win the data consolidation market pretty handily, and the question between HPE and Dell, for instance, 'cause that's really to me the two big horses on the track. Who's going to win the growth. Who's going to be able to lock in their beachhead on the core market, traditional market, and have access to the growth of what cloud will bring and IOT and among other things. >> I think at this point, HP has a better story in that area with their configurable infrastructure, with their pay as you go on site model, really interesting models. I was at HP World in Europe in December, and I came away from that feeling like these guys have some unique talking points here. At least they have a strategy that I think I understand and that is different. Dell is still working through this huge merger and that's a big catch. >> Bottom line is, Dave Donatelli, who's an executive at Oracle told me, he also was an EMC executive, and HPE. The business of provisioning servers and storage (laughing) is not going to be the growth strategy. Now, it might be a component of the overall business model, like software, but ultimately, that business is in decline, and that's a fact. Okay, this is the Cube, bringing you all the coverage of the kickoff from day one at Dell EMC World 2017. Our eighth year, three days of wall to wall coverage. We have two sets, the blue set and the white set. Go to SiliconAngle.tv to find the coverage, also go on Twitter, follow us on the Cube, I'm John Furrier with Paul Gillin, kickin' off Dell EMC World 2017, back with more, stay with us after this short break. (atmospheric instrumental music)

I[Announcer] Live from Silicon Valley, it's "The Cube." Covering Mobile World Congress 2017. Brought to you by Intel. >> 'Kay welcome back everyone, we are live in Palo Alto for "The Cube" special coverage of Mobile World Congress 2017. We're in our new 4,500 square foot studio, just moved in. We'll be expanding, you'll see a lot more in-studio coverage from "The Cube" as well as our normal going out to the events and extracting. Anyways I'm John Furrier Joining me is Jeff Frick. General manager of "The Cube." But a breakdown, all the action. As you know, we do a lot of data science. We've been watching the grid. We've been on the treadmill all weekend. All last week, digging into the Mobile World Congress. Sentiment, the vibe, the direction, and trying to synthesize all the action. And really kind of bring it all together for everyone here. And of course,we're doing it in Palo Alto. We're going to bring folks in from Silicon Valley that could not have made the trek to Barcelona. We're going to be talking to folks on the phone, who are in Barcelona. You heard from Lynn Comp from Intel. We have Floyd coming up next. CTO and SAP breaking down all the action from their new cloud. And big Apple news. SAP now has a general availability of the iOS native development kit. Which should change the game for SAP. There is tons of smart cities, smart stadiums, you know IOT, autonomous vehicles. So much going on at Mobile World Congress. We're going to break that down every day starting at 8AM. In-studio. And of course, I want to thank Intel for headlining our sponsorship and allowing us to create this great content. With some contributing support from SAP clouds I want to give a shout out, a bit shout out to Intel. Check out their booth. Check out their coverage. And check out their new SAP cloud, that's been renamed from HANA Cloud to SAP cloud. Without their support we wouldn't be able to bring this wall-to-wall great commentary. Jeff so with that aside. We got two days. We've got Laura Cooney coming in. Bob Stefanski managing this bridge between Detroit and Silicon Valley. And all that great stuff. Phones are ringing off the hook here in the studio. Go tweet us by the way at the cube or at ferrier We have Guy Churchwood coming in. We have great content all week. We have entrepreneurs. We have Tom Joyce, a Cube alumni. Who's an executive interviewing for a bunch of CEO positions. Really going to break down the changing aspect of Mobile World Congress. The iPhone's 10 years old. We're seeing now a new step function of disruption. Peter Burris said the most terrible in time. And I even compounded the words by saying and the phones are getting faster. So it's beyond the device. I mean what are you seeing on the grid? When you look at the data out there? >> John a bunch of things as we've been watching the stream of the data that came in and surprised me. First off just a lot of early announcements around Blackberry and Nokia. Who are often not really mentioned as the leaders in the handsets base. Not a place that we cover real extensively. But really kind of, these guys making a move and really taking advantage of the void that Samsung left with some of the Note issues. But what I thought was even more interesting is on our hashtag monitoring tools that IOT and 5G are actually above any of the handset manufacturers. So it really supports a hypothesis that we have that while handsets will be better and there'll be more data enabled by 5G, what 5G's really all about is as an IOT enabler. And really another huge step in the direction of connected devices, autonomous vehicles. We've talked about it. We cover IOT a lot. But I thought that was pretty interesting. >> Well Robo Car's also in there. That's a. >> Well everybody loves a car right. >> Well it's kind of a symbol of the future of the car. Which again ties it all together. >> Right right. The driverless race car, which is pretty interesting. >> Takes sports to a whole other level. >> I thought that was interesting. Another little thing as we watch these digital assistants and these voice assistants John, and I got a couple for Christmas just so I could try them out, is that Motorola announced that they're going to partner with Alexa. And use the Alexa voice system inside of their phones. You know I'm still waiting, I don't know why Siri doesn't have a stand-alone device and really when you use a Google Home versus an Amazon Alexa, very different devices, really different kind of target. So I thought that was an interesting announcement that also came out. But fundamentally it's fun to see the support of IOT and 5G, and really enable this next great wave of distribution, disruption, and opportunity. >> We're going to have Saar Gillia in the studio later today and tomorrow as a guest analyst for us on "The Cube." Of course folks may know Saar from being on "The Cube," he was recently senior vice reporting to Meg Whitman, and built out that teleco service provider, NFV business model for HP. And he's been to Mobile World Congress almost every year. He didn't make it this year, he'll be coming in the studio. And he told me prior to being, extremely vetting him for "The Cube" if you will, to use a Trump term, after extreme vetting of Saar Gillia he really wants to make the point of, and this is going to be critical analysis, kind of poking a hole into the hype, which is he doesn't think that the technology's ready for primetime. And specifically he's going to comment around he doesn't believe that the apps are ready for all this bandwidth. He doesn't think, he thinks that 5G is a solution looking for a problem. And I don't necessarily agree with him, so we'll have a nice commentary. Look for Saar today on "The Cube," at 11:30 he's coming on. It's going to be a little bit of a cage match there with Saar. >> I always go back to the which is the most underrepresented and most impactful law. Which is probably in the short term, in the hype cycle 5G's probably not going to deliver on their promise up to the level of the hype. As we find over and over with these funny things like Bluetooth. Who would ever think Bluetooth would be such an integral part of so many things that we do today? I think over the long term, the mid term, I think the opportunity's giant. >> I meant I think for people to understand 5G, at least the way I always describe it over the weekend, when I was at lacrosse games and soccer games over the weekend, for the folks that aren't in tech, 5G is the holy grail for IOT, mobile cars, and AI. Because what 5G does, it creates that mesh of rf, or rf radio frequency, at a whole other level. You look at the radios that Intel's announcing across their Telco partners, and what Intel's doing really is a game-changer. And we all know LTE, when the signal's low on the phone, everyone freaks out. We all know when WiFi doesn't work, the world kind of comes to a crawl. I mean just think 15 years ago wifi wasn't even around. So now think about the impact of just what we rely on with the digital plumbing called wireless. >> [Jeff] Right, right. >> When you think about the impact of going around the fiber to the home, and the cost it takes, to bring fiber to, Lynn Comp was commenting on that. So having this massively scalable bandwidth that's a radio frequency wireless is just a game-changing thing you can do. Low latency, 10 20 gig, that's all you need. Then you're going to start to see the phones change and the apps change. And as Peter Burris said a turbulent change of value propositions will emerge. >> It's funny at RSA a couple of weeks back the chatter was the people at RSA, they don't use wifi. You know, they rely on secure mobile networks. And so 5G is going to enable that even more, and as you said, if you can get that bandwidth to your phone in a safer, and secure, more trusted way, you know what is the impact on wifi and what we've come to expect on our devices and the responsiveness. And all that said, there will be new devices, there will be new capabilities. And I guess the other thing that's kind of funny is that of course the Oscar's made their way up to the, on the board. I thought that might wipe everything out after last night. But no IOT and 5G is still above Oscar's on the trending hashtag. >> Well I mean, Oscar's bring up... It's funny we all watch the Oscar's. There was some sort of ploy, but again, you bring up entertainment with the Oscar's. You look at what Hollywood's going through, and the Hollywood Reporter had an article talking about Reed Hastings with Netflix, he talked today really kind of higher end video so the entertainment business is shifting the court cutting is happening, we're seeing more and more what they call over the top. And this is the opportunity for the service providers but also for the entertainment industry. And with social media and with all these four form factors changing the role of media will be a packet data game. And how much can you fit in there? Whether it's e-sports to feature film making, the game is certainly changing. And again, I think Mobile World Congress is changing so radically. It's not just a device show anymore, it's not about the handset. It's about what the enablement is. I think that's why the 5G impact is interesting. And making it all work together, because a car talking to this device, it's complicated. So there's got to be the glue, all kind of new opportunities. So that's what I'm intrigued by. The Intel situation where you've got two chip guys battling it out for who's going to be that glue layer under the hood >> Right and if you look at some of the quotes coming out of the show a lot of the high-level you got to get away from the components and get into the systems and solutions, which we hear about over and over and over again. It's always about systems and solutions. I think they will find a problem to solve, with the 5G. I think it's out there. But it is... >> My philosophy Jeff is kill me with the bandwidth problem. Give me more bandwidth, I will consume more bandwidth. I mean look at compute pal as an example. People thought Morse law was going to cap out a decade ago. You look at the compute power in the chips with the cloud, with Amazon and the cloud providers it's almost infinite computes. So then the role of data comes in. So now you got data, now you got mobile, I think give us more bandwidth, I think the apps have no problem leveling up. >> [Jeff] Sucking it up. >> And that's going to be the debate with Saar. >> It's the old chip. The Intel Microsoft thing where you know, Intel would come out with a faster chip then the OS with eat more of it as part of the OS. And it kept going and going. We've talked through a lot of these John and if you're trying to predict the future and building for the future you really have to plan now for almost infinite bandwidth for free. Infinite storage for free, infinite compute for free. And while those curves are kind of asymptotically free they're not there yet. That is really the world in which we're heading. And how do you reshape the way you design apps, experiences, interphases without those constraints, which before were so so significant. >> I'm just doing a little crowd check here, you can go to crowdcheck.net/mwc if you want to leave news links or check in with the folks chatting. And I was just talking to SAP and SAP had the big Apple news. And one of the things that's interesting and Peter Burris talked about this on our opening this morning is that confluence between the consumer business and then the infrastructures happening. And that it was called devos but now you're starting to see the developers really focusing on the business value of technology. But yet it's not all developers even though people say the developers, the new king-makers, well I would say that. But the business models still is driven by the apps. And I think developers are certainly closer to the front lines. But I think you're going to start to see a much more tighter coupling between the c level folks in business and the developers. It's not just going to be a developer-led 100% direction. Whether it's entertainment, role of data, that's going to be pretty interesting Jeff. >> So Apple's just about finished building the new spaceship headquarters right. I think I opens up next month. I'm just curious to get your take John on Apple. Obviously the iPhone changed the game 10 years ago. What' the next big card that Apple's going to play? 'Cause they seemed to have settled down. They're not at the top of the headlines anymore. >> Well from my sources at Apple, there are many. Deep inside at the highest levels. What I'm hearing is the following. They're doing extremely well financially, look at the retail, look at the breadth of business. I think Tim Cook has done an amazing job. And to all my peers and pundits who are thrashing Apple they just really don't know what they're talking about. Apple's dominating at many levels. It's dominating firstly on the fiscal performance of the company. They're a digital presence in terms of their stickiness is second to none. However, Apple does have to stay in their game. Because all the phone guys they are in essence copying Apple. So I think Apple's going to be very very fine. I think where they could really double down and win on is what they did getting out of the car business. I think that was super smart. There was a post by Auto Blog this weekend saying Silicon Valley failed. I completely disagree with that statement. Although in the short term it looks like on the scoreboard they're kind of tapping out, although Tesla this year. As well as a bunch of other companies. But it's not about making the car anymore. It's all about the car's role in a better digital ecosystem. So to me I think Apple is poised beautifully to use their financial muscle, to either buy car companies or deal with the digital aspect of it and bring that lifestyle to the car, where the digital services for the personalization of the user will be the sticking point for the transportation. So I think Apple's poised beautifully for that. Do they have some issues? Certainly every company does. But compared to everyone else I just see no one even close to Apple. At the financial level, with the cash, and just what they're doing with the tax. From a digital perspective. Now Google's got a self-driving cars, Facebook's a threat, Amazon, so those are the big ones I see. >> The other thing that's happening this week is the game developer conference in San Francisco at Moscone. So you know again, huge consumers of bandwidth, huge consumers of compute power. Not so much storage. I haven't heard much of the confluence of the 5G movement with the game developer conference. But clearly that's going to have a huge impact 'cause most gaming is probably going to move to a more and more mobile platform, less desktop. >> Well the game developer conference, the one that's going on the GDC, is kind has a different vibe right now. It's losing, it's a little bit lackluster in my mind. It's classic conference. It's very monetized. It seems to be over-monetized. It's all about making money rather than promoting community. The community in gaming is shifting. So you can look at how that show is run, versus say e three and now you've got Twitch Con. And then Mobile World Congress, one of the big voids is there's no e-sports conversation. That certainly would be the big thing to me. To me, everything that's going digital, I think gaming is going to shift in a huge way from what we know as a console cult. It's going to go completely mainstream, in all aspects of the device. As 5G overlays on top of the networks with the software gaming will be the first pop. You're going to see e-sports go nuclear. Twitch Con, those kind of Twitch genre's going to expand. Certainly "The Cube" will have in the future a gaming cube. So there'll be a cube anchor desk for most the gaming culture. Certainly younger hosts are going to come one. But to me I think the gaming thing's going to be much more lifestyle. Less culty. I think the game developer conference's lost its edge. >> And one of the other things that comes, obviously Samsung made a huge push. They were advertising crazy last night on the Oscar's, with the Casey add about you know, people are creating movies. And they've had their VR product out for a while but there's a lot of social activity saying what is going to be the killer app that kind of breaks through VR? We know Oculus has had some issues. What do you read in between the tea leaves there John? >> Well it's interesting the Oscar's was awesome last night, I would love to watch the Hollywood spectacle but one of the things that I liked was that segway where they introduced the Oscar's and they kind of were tongue in cheek 'cause no one in Hollywood really has any clue. And they were pandering, well we need to know what they meant. It was really the alpha geeks who were pioneering what used to be the green screen technology now you go and CGI it's our world. I mean I want to see more of that because that is going to be the future of Hollywood. The tools and the technologies for filmmaking is going to have a Morse law-like impact. It's the same as e-sports, you're going to see all kinds of new creative you're going to see all kinds of new tech. They talked about these new cameras. I'm like do a whole show on that, I would love it. But what it's going to enable is you're going to see CGI come down to the price point where when we look at PowerPoints and Adobe Creative Suite and these tools. You're going to start to see some badass creative come down for CGI and this is when the artist aspect comes in. I think art design will be a killer field. I think that is going to be the future of filmmaking. You're going to see an indie market explode in terms of talent. The new voices are going to emerge, the whole diversity thing is going to go away. Because now you're going to have a complete disruption of Hollywood where Hollywood owns it all that's going to get flattened down. I think you're going to see a massive democratization of filmmaking. That's my take. >> And then of course we just continue to watch the big players right. The big players are in here. It's the start ups but I'm looking here at the Ford SAP announcement that came across the wire. We know Ford's coming in at scale as stuff with IBM as well So those people bring massive scale. And scale is what we know drives pricing and I think when people like to cap on Morse law they're so focused on the physical. I think the power of Morse law has nothing to do with the microprocessor per se. But really it's an attitude. Which we talked a little briefly about what does the world look like if you have infinite networking, infinite compute, and infinite storage. And basically free. And if you start to think that way that changes your perspective on everything. >> Alright Jeff well thanks for the commentary. Great segment really breaking down the impact of Mobile World Congress. Again this show is morphing from a device show phone show, to full on end-to-end network. Intel are leading the way and the entire ecosystem on industry partners, going to write software for this whole new app craze, and of course we'll be covering it here all day today Monday the 27th and all the day the 28th. Stay tuned stay watching. We've got more guests coming right back with more after the short break.