>> Hey, welcome back, everybody. Jefe Rick here with the Cube. We're in this war subscribed conference 2017 downtown San Francisco. 1,000 2 1,000 people talking about the subscription economy, I think is like the sixth year they've been doing this show. First time we've been here. We're excited to be here, but we're joined by a company that we spend a lot of time talking about. I ot in the industrial Internet, and that's G, but a new gas guidance bar. Ducasse. He's the head of predicts product management for Jean Digital. Welcome. >> Thanks, Jeff. Thanks for having me here. >> So you guys I mean, we were there in 2013 when Beth and Bill lost the industrial Internet initiative at the juiciest museum just across the street. So you guys have been in this space for a while. The G predicts cloud industrial cloud. You guys have been doing a lot of stuff there, so give us kind of an update. Where are you? Obviously picked a highlight. One of the key stories here. People don't think of G as necessarily a subscription economy type of play, but that >> so why are we here >> yet? So why are you here? >> We're here because we are subscription economy. I mean, what we're really focusing on with predicts is building a platform that allows third parties and first party applications to be built around the industrial space. And so a lot of what we're hearing from our customers is that they want to subscribe to those services, right. They want to subscribe to either the production of the services, but more importantly, maybe the different elements that bring the other solution. So the thing about the hospital like a digital twin, a virtual representation with physical asset A lot of times when people want to do is they want to build twins specific to specific asset. But they want to bring together the analytics and the data associated with that. Maybe some environmental factors that they subscribe to from 1/3 party, right, bring those all together doing analysis, right? And then basically give that stuff back. So they want to subscribe to things like analytics they want subscribe to data and the imports. So that's why we're here. We've been using Zamora a CZ part of our subscription service since the we kicked off G predicts last year way Wendy and February, and it's it's going to be a very flexible solution for us. >> So the parts and I don't think it's enough talk, and it really wasn't a lot of talking. The keynote is how a subscription relationship changes the way that you engage with a customer, because if you just sell him something, thank here's the transaction. You know, go off, you run your jet engine, go run your turbine. But if you have a subscription and it's an ongoing value delivery to pay for that ongoing money that they're giving you, it's a much kind of deeper relationship in kind of a single transact, well, >> it can develop. Do you have much deeper relationship? I think the thing that allows you to do is that allows you to experiment a little bit. Try a couple things, figure out what works best for you as a customer, right, and then invest in those areas. You don't have to make a big purchase order, right? Right. You don't have to go off and spend a lot of money on a bunch of software that may eventually go away, right? You can. You can. You can almost try before you buy or try as you buy, right? Probably better way of putting it right. And so what we're saying is you give people the ability to experiment. I think, you know, we talk within G about productivity, right? And the impact we could make him our own productivity to meet predicts, is much about innovation, right? Right. It's giving people the ability to try different things. Teo, Try on DH. See what happens when you bring in environmental factors. Right? Or usage data, right or operational data? Or, you know, we talked about jet engines lot looking at the different pilots. How do they operate the engines? Right, you know. So there's there's there's all these scenarios you can sort of experiment with on a subscription model. Find out what works and then go deep is necessary. >> It's interesting. 10. And the Kino talked about. What's different now is that you can buy. You can upgrade, you can cancel, you can downgrade. So again, this this interaction, as you just described, allows for a bunch of different types of engagement, not just the Big Bang and the other thing that's consistent with we hear over and over. I is a democratization, democratization of the data, democratization of the tools so that somebody does have a hypothesis that, you know, we've been looking at Obviously, a plane operating in the southwest United States is goingto have different characteristics. Is one operating in Alaska. But as you just said, maybe we should look att, pilot characteristics. Maybe we should look at, you know, back in. So when you open up that innovation platform now, you have so many more people coming up with hypothesis, testing hypothesis and you you open up the resource into your company to do so much better >> Well, and you have little innovation like so we have a partner based on Israel Plantain who's doing some stuff in the manufacturing space with G is we start thing about additive manufacturing. You want something about the composites and the materials that actually go into the engine, right, and sort of how of those and held up over time so you could build a much more longitudinal view of that. And again, it could be a subscription service where you start experimenting, you start understanding, especially with additive being sort of ah, mechanism to decentralize a lot of the manufacturing. You don't need to make a huge investment too. Doing that at those analytics. You put some software alongside the additive systems, and you've got the ability to innovate and understand better. Like what? Composites work better. I mean, you talk about the operation of the engine. But how about the manufacturing, the gym? Are there optimal environments right where you want to build those engines? And I think we've done great work. Is an industrial company to understand how to optimize systems and probably even like what the environmental factors are to build an engine effectively. But when you start distributing that, you really want to gauge that real time to understand what the impact would be, >> All right, So we were on short time leash here, actually, but I want to give you the last word. Give a plug for the critics. Transform show Coming up is part of minds of machines. We live for the first year. Last year that was 2,000 developers. Right? Ready? Great turnout for for really a development platform for an industrial Internet cloud. >> Yeah, s. So what we've done this year was a rain together transform, which is the event for our developer community with minds of machines, which is more targeted towards the business leaders were some of the leaders in the organization, and bringing them all under one roof will be here in San Francisco mid October. I don't have the exact dates, but I probably should. But it's like a roundabout on the >> Internet looking over there. >> But we're bringing those together, right? So we can have a dialogue that spans the complete spectrum. Yeah, right. It's the people that are building will have hackathons will have places where people can actually work on that will judge those those different solutions that are being hacked together on. Then we'll be presenting sort of the business value and the impact we're seeing with a lot of the industrial customers again. Many of them are, jeez, existing customers. We've got customers in different, you know, the auto industry elevator escalator industry, you know, fixtures manufacturing spaces that we haven't traditionally played. So we'll be talking about all the benefits were bringing this customer's Blessem new product introduction talk about >> All right, great event. I team meets ot. We went last year. Jeff was there. Beth was there, Bill was there all that? All the players that great show. Well, congratulations on your successful Zorro. And we look forward to seeing your minds machine. Okay, Thanks. Alright, He's Geeta Som Jeffrey, you're watching the cube crumbs or subscribe 2017. We'll be right back after this short break. Thanks for watching.

>> Hey welcome back here everybody. Jeff Frick here with theCUBE. We're at the Zuora Subscribe Conference 2017, downtown on San Francisco. 1,000, 2,000 people talking about the subscription economy. I think it's like the sixth year they've been doing the show. First time we've been here. We're excited to be here. But we're joined by a company that we spent a lot of time talking about IOT and the industrial internet, and that's GE, but a new guest, Gytis Barzdukas, he is the head of Predix Product Management for GE Digital. Welcome. >> Thanks Jeff, thanks for having me here. >> So you guys, I mean, we were there in 2013 when Beth and Bill launched the industrial internet initiative at the Jewish History Museum just across the street. So you guys have been in this space for a while, the GE Predix Cloud, industrial internet cloud, you guys have been doing a lot of stuff there. So give us a kind of update, where are you? Obviously picked to highlight one of the key stories here. People probably don't think of GE as necessarily a subscription economy type of play, but, >> So why are we here? >> Jeff: Yeah, so why are you here? >> Well we're here because we are a subscription economy. What we're really focusing on with Predix is building a platform that allows third-parties and first-party applications to be built around the industrial space, and so a lot of what we're hearing from our customers is that they want to subscribe to those services. They want to subscribe to either the production of the services, but more importantly maybe the different elements that bring together a solution. So think about the concept like a digital twin, a virtual representation of a physical asset. A lot of times what people want to do is they want to build twins specific to a specific asset. But they want to bring together the analytics, and the data associated with that, and maybe some environmental factors that they subscribe to from a third-party, bring those all together, do an analysis, And then basically give that stuff back. So they want to subscribe to things like analytics. They want to subscribe to data and the inputs, so that's why we're here. We've been using Zuora as part of our subscription service since we kicked off GE Predix last year. We went GA in February, and it's proven to be a very flexible solution for us. >> So the part that I don't think gets enough talk, and there really wasn't a lot of talk in the keynote, is how a subscription relationship changes the way that you engage with the customer. 'Cause if you just sell 'em something, here's the transaction, you know, go off, go run your jet engine, run your turbine, but if you have a subscription, and it's an ongoing value delivery to pay for that ongoing money that they're giving you, it's a much kind of deeper relationship than kind of a single transaction relationship. >> It can develop to be a much deeper relationship. I think the thing that it allows you to do is, it allows you to experiment a little bit, try a couple things, figure out what works best for you as a customer and then invest in those areas. You don't have to make a big purchase order. You don't have to go off and spend a lot of money on a bunch of software that may eventually go away. You can almost try, before you buy, or try as you buy is probably a better way of putting it. And so what we're seeing is we give people the ability to experiment. I think, we talk within GE about productivity and the impact we can make in our own productivity. To me Predix is as much about innovation. It's giving people the ability to try different things, to try and see what happens when you bring in environmental factors or usage data, or operational data, or we talk about jet engines a lot. Looking at the different pilots, how do they operate the engines? So there's all these scenarios you can sort of experiment with on a subscription model, find out what works and then go deep as necessary. >> And it's interesting, Tien in the keynote talked about how what's different now is that you can buy, you can upgrade, you can cancel, you can downgrade, so again this interaction as you just described, allows for a bunch of different types of engagement, not just the big bang. >> Yep, yeah. >> And the other thing that's consistent with who you're over and overwrite is the democratization. Democratization of the data, democratization of the tools so that if somebody does have a hypothesis, we've been looking at obviously a plane operating in the southwest United States is going to have different characteristics as one operating in Alaska. But as you just said maybe we should look at pilot characteristics. Maybe we should look at back ends, so when you open up that innovation platform, now you have so many more people coming up with hypothesis, testing hypothesis, and you open up the resources to your company to do so much better. >> Well, and you have little innovation, so we have a partner based in Israel, Plataine, who's doing some stuff in the manufacturing space with GE as we start thinking about additive manufacturing. You want to start thinking about the composites and the materials that actually go into the engine, and sort of how have those held up over time? So you can build a much more longitudinal view of that, and again, it can be a subscription service where you start experimenting, you start understanding, especially with additive being sort of a mechanism to decentralize a lot of the manufacturing. You don't need to make a huge investment to doing those analytics. You put some software alongside the additive systems, and you've got the ability to innovate and understand better what composites work better. You talk about the operation of the engine, but how about the manufacturing of the engine? Are there optimal environments where you want to build those engines? And I think we've done great work as an industrial company and understand how to optimize systems and probably even like what the environmental factors are to build an engine effectively, but when you start distributing that, you really want to gauge that real time to understand what the impact could be. >> All right, so we're on short time leash here, unfortunately, but I want to give you the last word, give a plug for the Predix Transform Show coming up as part of Minds and Machines. We went for the first year last year. It was 2,000 developers, pretty great turnout for really a development platform for an industrial internet cloud. >> Yeah, so what we've done this year is we're bringing together Transform, which is the event for our developer community with Minds and Machines which is more targeted towards the business leaders or some of the IT leaders in their organization and bringing them all under one roof. It'll be here in San Francisco mid-October. I don't have the exact dates. I probably should, but I think it's like-- >> I can look it up on the internet. That's why we have the internet. >> But we're bringing those together. So we can have a dialogue that spans the complete spectrum. It's the people that are building, and we'll have hackathons, we'll have places where people can actually work on that. We'll judge those different solutions that are being hacked together. And then we'll be presenting sort of the business value and the impact we're seeing with a lot of the industrial customers. Again, many of them are GE's existing customers. But we've got customers in the auto industry, elevator, escalator industry, fixtures, manufacturing, spaces that we haven't traditionally played, and so we'll be talking about all of the benefits. We're bringing in those customers plus some new product introductions which I can't talk about now. >> All right great event, IT meets OT. We went last year. Jeff was there, Beth was there, >> They will be there. >> Jeff: Bill was there, all the players. A great show. >> okay, Jeff. >> Jeff: Congratulations on your success with Zuora and we look forward to seeing you at Minds and Machines. >> Okay, thanks Jeff. >> All right, he's Gytis, I'm Jeff Frick. You're watching theCUBE from Zuora Subscribe 2017. We'll be right back after this short break. Thanks for watching.