>>The Cube Presents UI Path Forward five. Brought to you by UI Path, >>Everybody. We're back in Las Vegas. The cube's coverage we're day one at UI Path forward. Five. Pascal Borne is here. He's an expert and bestselling author in the topic of AI and automation and the book Intelligent Automation. Welcome to the world of Hyper Automation, the first book on the topic. And of course, Ray Wong is back on the cube. He's the founder, chairman and principal analyst, Constellation Reese, also bestselling author of Everybody Wants To Rule the World. Guys, thanks so much for coming on The Cubes. Always a pleasure. Ray Pascal, First time on the Cube, I believe. >>Yes, thank you. Thanks for the invitation. Thank you. >>So what is artificial about artificial intelligence, >>For sure, not people. >>So, okay, so you guys are both speaking at the conference, Ray today. I think you're interviewing the co CEOs. What do you make of that? What's, what are you gonna, what are you gonna probe with these guys? Like, how they're gonna divide their divide and conquer, and why do you think the, the company Danielle in particular, decided to bring in Rob Sland? >>Well, you know what I mean, Like, you know, these companies are now at a different stage of growth, right? There's that early battle between RPA vendors. Now we're actually talking something different, right? We're talking about where does automation go? How do we get the decisioning? What's the next best action? That's gonna be the next step. And to take where UI path is today to somewhere else, You really want someone with that enterprise cred and experience the sales motions, the packages, the partnership capabilities, and who else better than Roblin? He, that's, he's done, he can do that in his sleep, but now he's gotta do that in a new space, taking whole category to another level. Now, Daniel on the other hand, right, I mean, he's the visionary founder. He put this thing from nothing to where he is today, right? I mean, at that point you want your founder thinking about the next set of ideas, right? So you get this interesting dynamic that we've seen for a while with co CEOs, those that are doing the operations, getting the stuff out the door, and then letting the founders get a chance to go back and rethink, take a look at the perspective, and hopefully get a chance to build the next idea or take the next idea back into the organization. >>Right? Very well said. Pascal, why did you write your book on intelligent automation and, and hyper automation, and what's changed since you've written that book? >>So, I, I wrote this book, An Intelligent Automation, two years ago. At that time, it was really a new topic. It was really about the key, the, the key, the key content of the, of the book is really about combining different technologies to automate the most complex end to end business processes in companies. And when I say capabilities, it's, we, we hear a lot about up here, especially here, robotic process automation. But up here alone, if you just trying to transform a company with only up here, you just fall short. Okay? A lot of those processes need more than execution. They need language, they need the capacity to view, to see, they need the capacity to understand and to, and to create insights. So by combining process automation with ai, natural language processing, computer vision, you give this capability to create impact by automating end to end processes in companies. >>I, I like the test, what I hear in the keynote with independent experts like yourself. So we're hearing that that intelligent automation or automation is a fundamental component of digital transformation. Is it? Or is it more sort of a back office sort of hidden in inside plumbing Ray? What do you think? >>Well, you start by understanding what's going on in the process phase. And that's where you see discover become very important in that keynote, right? And that's where process mining's playing a role. Then you gotta automate stuff. But when you get to operations, that's really where the change is going to happen, right? We actually think that, you know, when you're doing the digital transformation pieces, right? Analytics, automation and AI are coming together to create a concept we call decision velocity. You and I make a quick decision, boom, how long does it take to get out? Management committee could free forever, right? A week, two months, never. But if you're thinking about competing with the automation, right? These decisions are actually being done a hundred times per second by machine, even a thousand times per second. That asymmetry is really what people are facing at the moment. >>And the companies that are gonna be able to do that and start automating decisions are gonna be operating at another level. Back to what Pascal's book talking about, right? And there are four questions everyone has to ask you, like, when do you fully intelligently automate? And that happens right in the background when you augment the machine with a human. So we can find why did you make an exception? Why did you break a roll? Why didn't you follow this protocol so we can get it down to a higher level confidence? When do you augment the human with the machine so we can give you the information so you can act quickly. And the last one is, when do you wanna insert a human in the process? That's gonna be the biggest question. Order to cash, incident or resolution, Hire to retire, procure to pay. It doesn't matter. When do you want to put a human in the process? When do you want a man in the middle, person in the middle? And more importantly, when do you want insert friction? >>So Pascal, you wrote your book in the middle of the, the pandemic. Yes. And, and so, you know, pre pandemic digital transformation was kind of a buzzword. A lot of people gave it lip service, eh, not on my watch, I don't have to worry about that. But then it became sort of, you're not a digital business, you're out of business. So, so what have you seen as the catalyst for adoption of automation? Was it the, the pandemic? Was it sort of good runway before that? What's changed? You know, pre isolation, post isolation economy. >>You, you make me think about a joke. Who, who did your best digital transformation over the last years? The ceo, C H R O, the Covid. >>It's a big record ball, right? Yeah. >>Right. And that's exactly true. You know, before pandemic digital transformation was a competitive advantage. >>Companies that went into it had an opportunity to get a bit better than their, their competitors during the pandemic. Things have changed completely. Companies that were not digitalized and automated could not survive. And we've seen so many companies just burning out and, and, and those companies that have been able to capitalize on intelligent automation, digital transformations during the pandemic have been able not only to survive, but to, to thrive, to really create their place on the market. So that's, that has been a catalyst, definitely a catalyst for that. That explains the success of the book, basically. Yeah. >>Okay. Okay. >>So you're familiar with the concept of Stew the food, right? So Stew by definition is something that's delicious to eat. Stew isn't simply taking one of every ingredient from the pantry and throwing it in the pot and stirring it around. When we start talking about intelligent automation, artificial intelligence, augmented intelligence, it starts getting a bit overwhelming. My spy sense goes off and I start thinking, this sounds like mush. It doesn't sound like Stew. So I wanna hear from each of you, what is the methodical process that, that people need to go through when they're going through digital trans transmission, digital transformation, so that you get delicious stew instead of a mush that's just confused everything in your business. So you, Ray, you want, you want to, you wanna answer that first? >>Yeah. You know, I mean, we've been talking about digital transformation since 2010, right? And part of it was really getting the business model, right? What are you trying to achieve? Is that a new type of offering? Are you changing the way you monetize something? Are you taking existing process and applying it to a new set of technologies? And what do you wanna accomplish, right? Once you start there, then it becomes a whole lot of operational stuff. And it's more than st right? I mean, it, it could be like, well, I can't use those words there. But the point being is it could be a complete like, operational exercise. It could be a complete revenue exercise, it could be a regulatory exercise, it could be something about where you want to take growth into the next level. And each one of those processes, some of it is automation, right? There's a big component of it today. But most of it is really rethinking about what you want things to do, right? How do you actually make things to be successful, right? Do I reorganize a process? Do I insert a place to do monetization? Where do I put engagement in place? How do I collect data along the way so I can build better feedback loop? What can I do to build the business graph so that I have that knowledge for the future so I can go forward doing that so I can be successful. >>The Pascal should, should, should the directive be first ia, then ai? Or are these, are these things going to happen in parallel naturally? What's your position on that? Is it first, >>So it, so, >>So AI is part of IA because that's, it's, it's part of the big umbrella. And very often I got the question. So how do you differentiate AI in, I a, I like to say that AI is only the brain. So think of ai cuz I'm consider, I consider AI as machine learning, Okay? Think of AI in a, like a brain near jar that only can think, create, insight, learn, but doesn't do anything, doesn't have any arms, doesn't have any eyes, doesn't not have any mouth and ears can't talk, can't understand with ia, you, you give those capabilities to ai. You, you basically, you create a cap, the capability, technological capability that is able to do more than just thinking, learning and, and create insight, but also acting, speaking, understanding the environment, viewing it, interacting with it. So basically performing these, those end to end processes that are performed currently by people in companies. >>Yeah, we're gonna get to a point where we get to what we call a dynamic scenario generation. You're talking to me, you get excited, well, I changed the story because something else shows up, or you're talking to me and you're really upset. We're gonna have to actually ch, you know, address that issue right away. Well, we want the ability to have that sense and respond capability so that the next best action is served. So your data, your process, the journey, all the analytics on the top end, that's all gonna be served up and changed along the way. As we go from 2D journeys to 3D scenarios in the metaverse, if we think about what happens from a decentralized world to decentralized, and we think about what's happening from web two to web three, we're gonna make those types of shifts so that things are moving along. Everything's a choose your end venture journey. >>So I hope I remember this correctly from your book. You talked about disruption scenarios within industries and within companies. And I go back to the early days of, of our industry and East coast Prime, Wang, dg, they're all gone. And then, but, but you look at companies like Microsoft, you know, they were, they were able to, you know, get through that novel. Yeah. Ibm, you know, I call it survived. Intel is now going through their, you know, their challenge. So, so maybe it's inevitable, but how do you see the future in terms of disruption with an industry, Forget our industry for a second, all industry across, whether it's healthcare, financial services, manufacturing, automobiles, et cetera. How do you see the disruption scenario? I'm pretty sure you talked about this in your book, it's been a while since I read it, but I wonder if you could talk about that disruption scenario and, and the role that automation is going to play, either as the disruptor or as the protector of the incumbents. >>Let's take healthcare and auto as an example. Healthcare is a great example. If we think about what's going on, not enough nurses, massive shortage, right? What are we doing at the moment? We're setting five foot nine robots to do non-patient care. We're trying to capture enough information off, you know, patient analytics like this watch is gonna capture vitals from a going forward. We're doing a lot what we can do in the ambient level so that information and data is automatically captured and decisions are being rendered against that. Maybe you're gonna change your diet along the way, maybe you're gonna walk an extra 10 minutes. All those things are gonna be provided in that level of automation. Take the car business. It's not about selling cars. Tesla's a great example. We talk about this all the time. What Tesla's doing, they're basically gonna be an insurance company with all the data they have. They have better data than the insurance companies. They can do better underwriting, they've got better mapping information and insights they can actually suggest next best action do collision avoidance, right? Those are all the things that are actually happening today. And automation plays a big role, not just in the collection of that, that information insight, but also in the ability to make recommendations, to do predictions and to help you prevent things from going wrong. >>So, you know, it's interesting. It's like you talk about Tesla as the, the disrupting the insurance companies. It's almost like the over the top vendors have all the data relative to the telcos and mopped them up for lunch. Pascal, I wanna ask you, you know, the topic of future of work kind of was a bromide before, but, but now I feel like, you know, post pandemic, it, it actually has substance. How do you see the future of work? Can you even summarize what it's gonna look like? It's, it's, Or are we here? >>It's, yeah, it's, and definitely it's, it's more and more important topic currently. And you, you all heard about the great resignation and how employee experience is more and more important for companies according to have a business review. The companies that take care of their employee experience are four times more profitable that those that don't. So it's a, it's a, it's an issue for CEOs and, and shareholders. Now, how do we get there? How, how do we, how do we improve the, the quality of the employee experience, understanding the people, getting information from them, educating them. I'm talking about educating them on those new technologies and how they can benefit from those empowering them. And, and I think we've talked a lot about this, about the democratization local type of, of technologies that democratize the access to those technologies. Everyone can be empowered today to change their work, improve their work, and finally, incentivization. I think it's a very important point where companies that, yeah, I >>Give that. What's gonna be the key message of your talk tomorrow. Give us the bumper sticker, >>If you will. Oh, I'm gonna talk, It's a little bit different. I'm gonna talk for the IT community in this, in the context of the IT summit. And I'm gonna talk about the future of intelligent automation. So basically how new technologies will impact beyond what we see today, The future of work. >>Well, I always love having you on the cube, so articulate and, and and crisp. What's, what's exciting you these days, you know, in your world, I know you're traveling around a lot, but what's, what's hot? >>Yeah, I think one of the coolest thing that's going on right now is the fact that we're trying to figure out do we go to work or do we not go to work? Back to your other point, I mean, I don't know, work, work is, I mean, for me, work has been everywhere, right? And we're starting to figure out what that means. I think the second thing though is this notion around mission and purpose. And everyone's trying to figure out what does that mean for themselves? And that's really, I don't know if it's a great, great resignation. We call it great refactoring, right? Where you work, when you work, how we work, why you work, that's changing. But more importantly, the business models are changing. The monetization models are changing macro dynamics that are happening. Us versus China, G seven versus bricks, right? War on the dollar. All these things are happening around us at this moment and, and I think it's gonna really reshape us the way that we came out of the seventies into the eighties. >>Guys, always a pleasure having folks like yourself on, Thank you, Pascal. Been great to see you again. All right, Dave Nicholson, Dave Ante, keep it right there. Forward five from Las Vegas. You're watching the cue.

>>from >>around the globe. It's the cube with digital coverage >>of IBM. Think 20 >>21 brought to you by IBM. >>Hello, I want to welcome back to IBM think 2021 the virtual edition. The cubes continuous coverage. And we're excited to talk about people. How do you align people and technology? Of course there's a lot of process in between. Those are the hard, hard things technology sometimes easy amy right is here. She's managing partner of talent transformation at IBM Amy great to see you. >>Thanks Great to be here Dave >>Yeah. You know we love to talk tech and sometimes we kind of sweep the really hard stuff under the rug and we talk about transformation. I mean it's it's ongoing. I mean you think about the pandemic last year was sort of this forced march to digital, we had to transform overnight. You know the vast majority of leaders I think that figures like close to 95 96 say that they've accelerated their digital transformation by half a half a decade. And of course that was a lot of it was like I say, it's a forced march, so it wasn't really planned fel but now they've got time to plan about a digital first approach and how to deal with remote workers. I wonder if you could talk about the role that people play in that digital transformation. >>All right, thanks. Dave I'm happy to, you know, a lot of people think of digital transformation about being technology oriented. It's a total shift in tech and it is but it really can't be successful with just tech. So you're right with the pandemic has done for digital transformation, Is it really it pushed us to these technology extremes more than anyone could have anticipated, particularly with our ways of working being remote. It also pushed us to extremes and highlighted the role that humanity played place, it will continue to play. So we've been pushed to reimagine jobs, pushed to reimagine workplaces, push to reimagine how technology can deliver this connected enterprise. Um you know, through through virtuality. Um and virtual working wasn't really something that was accepted before, but now we've been forced to accept it, which is which is really great for the digital transformation because it accelerated that. So the connected enterprise though isn't really just working virtually. It's these new levels of productivity and decision making that are enabled by intelligent workflows and cloud and data. And so technology is absolutely critically important. But automation doesn't have empathy. So it takes people to turn these insights that are brought to us through technology and automation. It takes people to turn them into action. And it's that human technology partnership that's required for the digital transformation to get to that desired impact. So when you think about, when we think about people in the role they play, and, you know, it's the pivotal role they play. It's really multi part, it's kind of three parts. one is people are the ones that build the tech and so they influence whether or not the automation is going to work, whether it meets the needs of the enterprise, if it takes advantage of the latest thinking, um and if it's, you know, it's irresistible if you will. The second is the people use the technology to gain this meaningful insight and turn into action. And then the third is the people are the ones that embed this tech change into culture, so that's actually sustainable. So to be able to drive this sustainable digital transformation the people, it requires the people to make it happen. So, if you look at health care, Dave think about the dramatic shift in health care in the past year, where doctors have shifted to telemedicine, nurses have shifted to using ipads as caregivers at the, you know, with their patients that not only required to shift in the tech, but an adoption of caregivers of a new way of working that again, could have been successful unless they adopted and embedded, embedded a different way of working in a different culture and everything that they do. >>You know what you said is really important. Especially we talk a lot about what machines can do that people can what people can do that machines can you just nailed it with empathy. And and when you think about to the remote work, I think prior to the pandemic, it was probably around 15 16% of workers were remote. And when you when we do we do surveys with the partner E. T. R. In new york. And the They project based on these surveys that that that's gonna double somewhere between you know, 33 35%. But people don't really know when when you talk to people like I kind of like working at home, other people say I can't wait to get back to the office. So people obviously critical part of the digital transformation. But how do you think about creating those meaningful experiences at work? Whether that's remote? Part time, remote? Full time back at work? >>So this is a really great great question because I think our point of view on this has changed. So first of all, most enterprises we talked to will move back to some hybrid kind of environment. We're never going to be everybody back in the office again. That's that's that's not who we will be moving forward. But the expectations of employees have changed. Um We all know that, you know, think about your consumer lives and and how we experience that personalized that that that personalization when we go to buy something online that's now bled over into the workplace. So the employees expect that exact same personalized experience at work. But it's now so much more than that now. It's not only personalization which you know, obviously tech enables quite dramatically, but the experience is broader to look at a holistic relationship between the employer and employee. That's a little bit less, it's less transactional. Like I do my job and my company pays me for doing this set of activities, but it's more supportive and integrated with their personal cells. So, you know, we did a recent study in which we looked at consumers and employees and their highest priority areas for the expectations that they now have for their employers is career and skill advancement opportunities with speed. Second is work life balance is that might take the form of what hours they work. Their ability to um you know, manage with what they're doing in their home with their families and Children, uh you know, their ability to be camera ready or not at all times of day and night and actually where they work from. So people are now working not only at home, but they're moving to different cities and want that flexibility. And then third, hi, area of priority now is ethics and values. So not only diversity, equity, inclusion, obviously critically important, but ways of working and meaningful and purposeful work. So when you look at all of those together, the employee experience has grown to be not only that of personalization, like we have in our consumer world, that is that is critically important, but now um it's all of these other things as well as a matter of fact, they become so important dave that in our recent research, it shows that one in four Employees will change employers in 2021, 1 and 41 and four will also change professions in 2021. And while about 75 of employers, companies believe that they are doing a good job of meeting the needs, these expanded needs of their employees, less than half of employees feel the same way. So there's a lot of work to be done. So you ask the question why is this? People experience so important? It's important because it's required for the digital transformation and it's so much broader than what we used to think that it's now a competitive differentiator for employers as they try to not only achieve their digital transformation but as their organizations disrupt over and over again. Um It's a requirement in order to meet their meet their enterprises objectives. >>So it was a great great stats and you just put out there in the career advancement. I think I feel like it's always been there but it's now much more front and center employees are more vocal about it. The work like balance, same thing. I mean you're seeing some organizations in 100 hour weeks were revolting and and then you know, the ethics and values piece to me is one of the most interesting I often joke Milton Friedman rolling over in his grave because he was, the economist said uh it's just about shareholder value, that's it and that's not anymore. In fact there's clearly a relationship between shareholder value and E. S. G. And and ethics and young people are very very concerned about it. So here's the question who's accountable for making sure that you have a positive employee experiences occur. >>Yeah. Really really really good question. And the thing is this is what makes it so hard. There's not one group or one person it's actually all of us. And I know that answer sounds like a little bit like a cop out. But this is why it makes it so hard. Every leader is responsible for the employee experience, every manager is responsible for the employee experience. Every employee is actually not responsible for the experience of their teammates. And actually speaking up if the experience isn't using inclusiveness as an example if it's not inclusive. Every experience every employee has the responsibility to speak up. So some companies actually have employee experienced leaders. Some companies have digital transformation leaders that embodies that that that includes that employee experience. But most actually start this journey through the through the partnership between I. T. And H. R. So I. T. Is responsible for this technology architecture, the cloud strategy, the data strategy architectural framework. All those pieces that put together the foundation and the building blocks and the security that helped to um modernize this employee experience and by the way they're doing this at the same time with their modernizing their entire way in which the function operates. Um So you got I. T. That's kind of setting the stage and the foundation for what's possible. And then you have HR. Who's operating as the steward of the employee experience that those people experiences um and putting them in place in a consistent and consistent in a positive way across the entire enterprise. So things like design thinking um that puts the employee at the center of the way we um architect and create these experiences using rapid iterative design principles. With again with this with the employee at the centre making that the cultural norm across the enterprise is a really big deal. So HR is usually in the lead on making that happen. But again this is a cultural shift, not just I have a problem, you know kind of a project plan and here's here's what I'm going to execute on leadership roles. So HR is the steward of leadership and those characteristics of leaders now are changing very dramatically to be more even in a big enterprise large global enterprise entrepreneurial transparent co creation really at the core of everything. So being transplant transparent with your teams and be able to co create um you know co create for the future. So data and ai we can use data and I ai now to actually in uh predict the impact that the workforce and the cultural will have on business results, predict attrition, predict what different work workforce design scenarios will look like to the supply chain um uh predict the speed of hiring and how that will impact literally bottom line business results. So you said it right when when when you talked about shareholder value, the people is at the center of shareholder value now. So our functions need to be modernized. But it's really this partnership between HR. And I. T. That's going to be able to make it happen in a big way. >>It's interesting. I'm just thinking that Ai as well can be a canary in a coal mine when there's potential problems. And I love this transparency. That's critical co creation. So, okay, so tech is a key part of that, especially in terms of when you go from analog to digital, taking friction out of the system shows the employees that we're investing in in your experience. But it's more than that you're saying it's it's cultural and as it makes its kind of fun cultural, it takes a village. So that's that's part of what makes it so hard. How do you think about, you know the journey, where do you start and and how do you keep iterating? You're you're never done in this this world, are you? >>Yeah, that's a question uh everybody's asking now is where do I start? So as you said, this is very hard and and and it's hard. One of the reasons it's hard, it's because it revolves culture. Um it's not only about technology, they are hard. Technologies are hard in their own right. It's not just about data that's hard in its own right. But once you involve technology it makes it makes it even even harder. And of course the people aspect unless done very pro actively and meaningfully, it can be kind of a wild card right on who's gonna adopt what. So where do you start? So um the way we like to think about um giving advice to enterprises regarding where this is, we've seen this work well is to pick a business problem. So what's a business problem that if you solved you can actually make an impact not only for your people but for your people but for the enterprise. So if you could pick a business problem and and actually fix it using data using cloud using people, experiences using a cultural shift, then you'll get that. Buy in, you get the buy in that. Yes we can do this, this is this this is very doable. We can repeat it, repeat peat, repeatable over and over again and it has an impact on our culture. That's a great place to start. Okay so then you say if that's a place to start, how do we actually, there's got to be foundational things that have to be in place to make that work. So one of them is a consistency in data and the use of AI and the ability to make insights meaningful, you know that come through data and AI. And the other part that's really important once you pick your business problem is the shift in the way of working the shift so that it can impact cultural, a cultural change, a shift so that there's co creation with your people and there's transparency so each one of these business problems and the way companies pick to fix them, they won't all work. And the way you get that trust and transparency with your people is as scary as it is to share with them what you're attempting to do and share with them, how you're doing along the journey. And if it fails, okay fails, you know, pick yourself back up and start again that trust and transparency with your people. That's the way that's the way we all make this cultural impact. So, you know, kind of the none of this is to be to make sustainable change. We can all make short term change, we can do projects but to make sustainable change, the humanity aspect has to come to life in these digital transformations and that only comes to life with this cultural shift. >>Amy right? You've thought about this a lot, deep expertise in the area, really appreciate your sharing it with our audience and thanks for coming on the cube. >>Dave my pleasure. >>All right, keep it right there. But this is Dave Volonte. You're watching IBM think 2021 the virtual edition from the Cube. >>Yeah. Mhm.

>>from around the globe. It's the Cube with digital coverage of workplace next made possible by Hewlett Packard Enterprise. >>Hello, everyone. We're here covering workplace next on the Cube For years, you know, we've talked about new ways to work, and it was great thought exercise. And then overnight the pandemic heightened the challenges of creating an effective work force. Most of the executives that we talked to in our survey say that productivity actually has improved since the work from Home Mandate was initiative. But, you know, we're talking not just about productivity, but the well being of our associates and managing the unknown. We're going to shift gears a little bit now. We've heard some interesting real world examples of how organizations are dealing with the rapid change in workplace, and we've heard about some lessons to take into the future. But now we're going to get more practical and look at some of the tools that are available to help you navigate. The changes that we've been discussing and with me to talk about these trends related to the future of work are are are Qadoura, who's the vice president of worldwide sales and go to market for Green Lake at HP Sadat Malik is the VP of I O t and Intelligent Edge at HP and Satish Yarra Valley is the global cloud and infrastructure practice Head at Whip Probe guys welcomes. Good to see you. Thanks for coming on. >>Thanks for having us. >>You're very welcome. Let me start with Sadat. You're coming from Austin, Texas here. So thank you. Stay crazy. As they say in Austin, for the uninitiated, maybe you could talk a little bit about h p E point. Next. It's a strategic component of H p. E. And maybe tell us a little bit about those services. >>Thank you so much for taking the time today. Appreciate everybody's participation here. So absolutely so point Next is HP Services on. This is the 23,000 strong organization globally spread out, and we have a very strong ecosystem of partners that be leveraged to deliver services to our customers. Um, our organization differentiates itself in the market by focusing on digital digital transformation journeys for our customers. For customers looking toe move to a different way off, engaging with its customers, transforming the way its employees work, figuring out a different way off producing the products that it sells to. His customers are changing the way it operationalize these things. For example, moving to the cloud going to a hybrid model, we help them achieve any of these four transformation outcomes. So point next job is toe point. What is next in this digital transformation journey and then partner with our customers to make that happen? So that's what we do. >>Thank you for that. I mean, obviously, you're gonna be seeing a lot of activity around workplace with shift from work from home, changes in the network changes in security. I mean the whole deal. What are some of your top takeaways that you can share with our audience? >>Yeah, they're >>so a lot has been happening in the workplace arena lately. So this is not new, right? This is not something that all of a sudden side happening when Kobe 19 hit, uh, the digital workplace was already transforming before over 19 happened. What over 19 has done is that it has massively accelerated the pace at which this change was happening. So, for example, right remote work was already there before over 19. But now everybody is working remotely so, in many ways, the solution that we have for remote work. They have been strained to appoint, never seen before. Networks that support these remote work environments have been pushed to their limits. Security was already there, right? So security was a critical piece off any off the thinking, any of the frameworks that we had. But now security is pivotal and central. Any discussion that we're having about the workplace environment data is being generated all across the all across the environment that we operated, right? So it's no longer being generated. One place being stored. Another. It's all over the place now. So what Kobe, 19 has done is that the transformation that was already underway in the digital workplace, it has taken that and accelerated it massive. The key take away for me is right that we have to make sure that when we're working with our customers, our clients, we don't just look at the technology aspect of things. We have to look at all the other aspect as well the people in the process aspect off this environment. It is critical that we don't assume that just because the technology is there to address these challenges that I just mentioned. Our people and our processes would be able to handle that as well. We need to bring everybody along. Everybody has different needs, and we need to be able to cater to those needs effectively. So that's my biggest take away. Make sure that the process and the people aspect of things was hand in glove with the technology that we were able to bring to bear here. >>Got it. Thank you. So, ah, let's go to San Francisco, bringing our war to the conversation. You're one of your areas of focus is is HP Green Lake. You guys were early on with the as a service model. Clearly, we've seen Mawr interest in cloud and cloud like models. I wonder if you could just start by sharing. What's Green Lake all about? Where does it fit into this whole workplace? Next, Uh, conversation that we're having? >>Yeah, absolutely. Um HP Green lake effectively is the cloud that comes to your data center to your Coehlo or to your edge, right? We saw with Public Cloud. The public cloud brought a ton of innovations, um, into the sort of hyper scale model. Now, with HP. What we've done is we've said, Look, customers need this level of innovation and this level of, you know, pay as you go economics the, you know, management layer the automation layer not just in a public cloud environment, but also in our customers data center or to the other potential edges or Coehlo scenarios. And what we've done is we've brought together Asada just mentioned the best of our point next services our software management layer as well as H. P. E s rich portfolio of hardware to come together to create that cloud experience. Um, of course, we can't do this without the rich ecosystem around us as well. And so everything from you know, some of our big S I partners like we bro, who also have the virtual desktop expertise or virtual desk that then come together to start helping us launch some of these new workloads supported cloud services such as D. D i eso for my perspective, v. D. I is the most important topic for a lot of our customers right now, especially in sectors like financial services, um, advanced engineering scenarios and health care where they need access to those, uh to their data centers in a very secure way and in a highly cost optimized way as well. >>Well, okay. Thank you. And then let's let's bring in, uh, petition talk a little bit about the ecosystem. I mean, we're pro. That's really kind of your wheelhouse. We've been talking a lot on the cube about moving from an industry of point products to platforms and now ecosystem innovation, Uh, are are mentioned VD I we saw that exploding eso teach. Maybe you could weigh in here and and share with us what you're seeing in the market and specifically around ecosystem. >>As we all know, the pandemic has redefined the way we collaborate to support this collaboration. We have set up huge campuses and office infrastructure In summary, our industry has centralized approach. Now, the very premise of the centralization bringing people together for work has changed. This evolving workspace dynamics have triggered the agency to reimagine the workspace strategy. CEO, CEO S and C H R ose are all coming together to redefine the business process and find new ways off engaging with customers and employees as organizations embrace work from home for the foreseeable future. Customer need to create secure by design workspaces for remote working environments. With the pro virtual disk platform, we can help create such seamless distal workspaces and enable customers to connect, collaborate and communicate with ease from anywhere securely. They're consistent user experience. Through this platform led approach, we are able to utter the market demands which are focused on business outcomes. >>Okay, and this is the specifics of this hard news that you're talking about Video on demand and Citrix coming together with your ecosystem. H p E were pro and again, the many partners that you work with is that correct? >>Well, actually, Dave, we see a strong playoff ecosystem partners coming together to achieve transformative business outcomes. As Arbor said earlier, HP and Wipro have long standing partnership, and today's announcement around HP Green Lake is an extension off this collaboration, where we provide leverage HP Green Leg Andre Pro, which elders platform to offer video as a service in a paper user model. Our aim is to enable customers fast track there. It is still works based transformation efforts by eliminating the need to support upfront capital investments and old provisioning costs while allowing customers to enjoy the benefit off compromise, control, security and compliance. Together, we have implemented our solution across various industry segments and deliver exceptional customer experiences by helping customer businesses in their workspace. Transformation journeys by defining their workspace strategy with an intelligent, platform led approach that enables responsiveness, scalability and resilience. It's known that Wipro is recognized as a global leader in the distal workspace and video I, with HP being a technology leader, enabling us with high level of program ability on integration capabilities. We see tremendous potential to jointly address the industry challenges as we move forward. >>Excellent. Uh, sad. I wanna come back to you. We talk a lot about the digital business, the mandate for digital business, especially with the pandemic. Let's talk about data. Earlier this year, HP announced the number of solutions that used data to help organizations work more productively safely. You know, the gamut talk about data and the importance of data and what you guys were doing there specifically, >>Yeah, that's a great question. So that is fundamental to everything that we're doing in the workplace arena, right? So from a technology perspective that provides us with the wherewithal to be able to make all the changes that we want to make happen for the people in the process side of things. So the journey that we've been on this past year is a very interesting one. Let me share with the audience a little bit of what's been going on on the ground with our customers. Um, what's what's been happening in the field? So when the when Kobe 19 hit right, a lot of our customers were subjected to these shutdown, which were very pervasive, and they had to stop their operations. In many cases, they had to send their employees home. So at that point, HB stepped in the point. Next organization stepped in and helped these customers set up remote work out options, which allowed them to keep their businesses going while they handle these shutdowns. Fast forward. Six months and the shutdown. We're starting to get lifted and our customers were coming back to us and saying to us that Hey, we would now like to get a least a portion off our workforce back to the normal place of work. But we're concerned that if we do that, it's gonna jeopardize their safety because off the infection concerned that were there. So what we did was that we built a cities or five solutions using various types of video analytics and data analysis analysis technologies that allowed these customers to make that move. So these five solutions, uh, let me walk, walk our customers and our clients and audience through those. The first two of these solutions are touchless entry and fever detection. So this is the access control off your premise, right? So to make sure that whoever is entering the building that's in a safe manner and any infection concerned, we stop it at the very get go once the employees inside the workplace, the next thing that we have is a set of two solutions. What one is social distance tracing and tracking, and the other one is workplace alerting. What these two solutions do is that they use video analytics and data technology is to figure out if there is a concern with employees adhering to the various guidelines that are in place on alerting the employees and the employers if there is any infringement happening which could risk overall environment. Finally, we realized right that irrespective off how much technology and process we put in place. Not everybody will be able to come into the normal place of work. So what we have done is that the first solution that we have is augmented reality and visual remote guidance. This solution uses a our technologies allow. People were on site to take advantage of the expertise that resides offsite to undertake complex task task, which could be as complex as overhauling a machine on ah factory floor using augmented reality where somebody off site who's an expert in that machine is helping somebody on site data has become central to a lot of the things that we do. But as I said, technology is one aspect of things. So ultimately the people process technology continuum has to come together to make these solutions real for our customers. >>Thank you, Arwa. We just have just about 30 seconds left and I wonder if you could close on. We're talking about cloud hybrid. Uh, everybody's talking about hybrid. We're talking about the hybrid workplace. What do you see for the for the future over the next 2345 years? >>Absolutely. And I think you're right, Dave. It is, ah, hybrid world. It's a multi cloud world. Ultimately, what our customers want is the choice and the flexibility to bring in the capabilities that drive the business outcomes that they need to support. And that has multiple dimensions, right? It's making sure that they are minimizing their egress costs, right. And many of our on Prem solutions do give them that flexibility. It is the paper use economics that we talked about. It is about our collective capability as an ecosystem to come together. You know, with Citrix and NVIDIA with R s I partner we pro and the rich heritage of HP es services as well as hardware to bring together these solutions that are fully managed on behalf of our customers so that they can focus their staff their i t capabilities on the products and services they need to deliver to their customers. >>Awesome. Guys, I wish we had more time. We got to go day volonte for the cube. Keep it right there. Lots of great more content coming your way. >>Yeah,

>> from Cambridge, Massachusetts. It's the Cube covering M I T. Chief data officer and information quality Symposium 2019. Brought to you by Silicon Angle Media. >> Welcome back to M I. T. Everybody. This is the Cube. The leader in live coverage. My name is David wanted. I'm here with my co host, Paul Gill, in this day to coverage of the M I t cdo I Q conference. A lot of acronym stands for M I. T. Of course, the great institution. But Chief Data officer information quality event is his 13th annual event. Lars to Maria's here is the managing partner of Brass Rat Capital. Cool name Lars. Welcome to the Cube. Great. Very much. Glad I start with a name brass around Capitol was That's >> rat is reference to the M I t school. Okay, Beaver? Well, he is, but the students call it a brass rat, and I'm third generation M i t. So it's just seen absolutely appropriate. That is a brass rods and capital is not a reference to money, but is actually referenced to the intellectual capital. They if you have five or six brass rats in the same company, you know, we Sometimes engineers arrive and they could do some things. >> And it Boy, if you put in some data data capital in there, you really explosions. We cause a few problems. So we're gonna talk about some new regulations that are coming down. New legislation that's coming down that you exposed me to yesterday, which is gonna have downstream implications. You get ahead of this stuff and understand it. You can really first of all, prepare, make sure you're in compliance, but then potentially take advantage for your business. So explain to us this notion of open government act. >> Um, in the last five years, six years or so, there's been an effort going on to increase the transparency across all levels of government. Okay, State, local and federal government. The first of federal government laws was called the the Open Data Act of 2014 and that was an act. They was acted unanimously by Congress and signed by Obama. They was taking the departments of the various agencies of the United States government and trying to roll up all the expenses into one kind of expense. This is where we spent our money and who got the money and doing that. That's what they were trying to do. >> Big picture type of thing. >> Yeah, big picture type thing. But unfortunately, it didn't work, okay? Because they forgot to include this odd word called mentalities. So the same departments meant the same thing. Data problem. They have a really big data problem. They still have it. So they're to G et o reports out criticizing how was done, and the government's gonna try and correct it. Then in earlier this year, there was another open government date act which said in it was signed by Trump. Now, this time you had, like, maybe 25 negative votes, but essentially otherwise passed Congress completely. I was called the Open as all capital O >> P E >> n Government Data act. Okay, and that's not been implemented yet. But there's live talking around this conference today in various Chief date officers are talking about this requirement that every single non intelligence defense, you know, vital protection of the people type stuff all the like, um, interior, treasury, transportation, those type of systems. If you produce a report these days, which is machine, I mean human readable. You must now in two years or three years. I forget the exact invitation date. Have it also be machine readable. Now, some people think machine riddle mil means like pdf formats, but no, >> In fact, what the government did is it >> said it must be machine readable. So you must be able to get into the reports, and you have to be able to extract out the information and attach it to the tree of knowledge. Okay, so we're all of sudden having context like they're currently machine readable, Quote unquote, easy reports. But you can get into those SEC reports. You pull out the net net income information and says its net income, but you don't know what it attaches to on the tree of knowledge. So, um, we are helping the government in some sense able, machine readable type reporting that weaken, do machine to machine without people being involved. >> Would you say the tree of knowledge You're talking about the constant >> man tick semantic tree of knowledge so that, you know, we all come from one concept like the human is example of a living thing living beast, a living Beeston example Living thing. So it also goes back, and they're serving as you get farther and farther out the tree, there's more distance or semantic distance, but you can attach it back to concept so you can attach context to the various data. Is this essentially metadata? That's what people call it. But if I would go over see sale here at M I t, they would turn around. They call it the Tree of Knowledge or semantic data. Okay, it's referred to his semantic dated, So you are passing not only the data itself, but the context that >> goes along with the data. Okay, how does this relate to the financial transparency? >> Well, Financial Transparency Act was introduced by representative Issa, who's a Republican out of California. He's run the government Affairs Committee in the House. He retired from Congress this past November, but in 2017 he introduced what's got referred to his H R 15 30 Um, and the 15 30 is going to dramatically change the way, um, financial regulators work in the United States. Um, it is about it was about to be introduced two weeks ago when the labor of digital currency stuff came up. So it's been delayed a little bit because they're trying to add some of the digital currency legislation to that law. >> A front run that Well, >> I don't know exactly what the remember soul coming out of Maxine Waters Committee. So the staff is working on a bunch of different things at once. But, um, we own g was asked to consult with them on looking at the 15 30 act and saying, How would we improve quote unquote, given our technical, you know, not doing policy. We just don't have the technical aspects of the act. How would we want to see it improved? So one of the things we have advised is that for the first time in the United States codes history, they're gonna include interesting term called ontology. You know what intelligence? Well, everyone gets scared by the word. And when I read run into people, they say, Are you a doctor? I said, no, no, no. I'm just a date. A guy. Um, but an intolerant tea is like a taxonomy, but it had order has important, and an ontology allows you to do it is ah, kinda, you know, giving some context of linking something to something else. And so you're able Thio give Maur information with an intolerant that you're able to you with a tax on it. >> Okay, so it's a taxonomy on steroids? >> Yes, exactly what? More flexible, >> Yes, but it's critically important for artificial intelligence machine warning because if I can give them until ology of sort of how it goes up and down the semantics, I can turn around, do a I and machine learning problems on the >> order of 100 >> 1000 even 10,000 times faster. And it has context. It has contacts in just having a little bit of context speeds up these problems so dramatically so and it is that what enables the machine to machine? New notion? No, the machine to machine is coming in with son called SP R M just standard business report model. It's a OMG sophistication of way of allowing the computers or machines, as we call them these days to get into a standard business report. Okay, so let's say you're ah drug company. You have thio certify you >> drugged you manufactured in India, get United States safely. Okay, you have various >> reporting requirements on the way. You've got to give extra easy the FDA et cetera that will always be a standard format. The SEC has a different format. FERC has a different format. Okay, so what s p r m does it allows it to describe in an intolerant he what's in the report? And then it also allows one to attach an ontology to the cells in the report. So if you like at a sec 10 Q 10 k report, you can attach a US gap taxonomy or ontology to it and say, OK, net income annual. That's part of the income statement. You should never see that in a balance sheet type item. You know his example? Okay. Or you can for the first time by having that context you can say are solid problem, which suggested that you can file these machine readable reports that air wrong. So they believe or not, There were about 50 cases in the last 10 years where SEC reports have been filed where the assets don't equal total liabilities, plus cheryl equity, you know, just they didn't add >> up. So this to, >> you know, to entry accounting doesn't work. >> Okay, so so you could have the machines go and check scale. Hey, we got a problem We've >> got a problem here, and you don't have to get humans evolved. So we're gonna, um uh, Holland in Australia or two leaders ahead of the United States. In this area, they seem dramatic pickups. I mean, Holland's reporting something on the order of 90%. Pick up Australia's reporting 60% pickup. >> We say pick up. You're talking about pickup of errors. No efficiency, productivity, productivity. Okay, >> you're taking people out of the whole cycle. It's dramatic. >> Okay, now what's the OMG is rolling on the hoof. Explain the OMG >> Object Management Group. I'm not speaking on behalf of them. It's a membership run organization. You remember? I am a >> member of cold. >> I'm a khalid of it. But I don't represent omg. It's the membership has to collectively vote that this is what we think. Okay, so I can't speak on them, right? I have a pretty significant role with them. I run on behalf of OMG something called the Federated Enterprise Risk Management Group. That's the group which is focusing on risk management for large entities like the federal government's Veterans Affairs or Department offense upstairs. I think talking right now is the Chief date Officer for transportation. OK, that's a large organization, which they, they're instructed by own be at the, um, chief financial officer level. The one number one thing to do for the government is to get an effective enterprise worst management model going in the government agencies. And so they come to own G let just like NIST or just like DARPA does from the defense or intelligence side, saying we need to have standards in this area. So not only can we talk thio you effectively, but we can talk with our industry partners effectively on space. Programs are on retail, on medical programs, on finance programs, and so they're at OMG. There are two significant financial programs, or Sanders, that exist once called figgy financial instrument global identifier, which is a way of identifying a swap. Its way of identifying a security does not have to be used for a que ce it, but a worldwide. You can identify that you know, IBM stock did trade in Tokyo, so it's a different identifier has different, you know, the liberals against the one trading New York. Okay, so those air called figgy identifiers them. There are attributes associated with that security or that beast the being identified, which is generally comes out of 50 which is the financial industry business ontology. So you know, it says for a corporate bond, it has coupon maturity, semi annual payment, bullets. You know, it is an example. So that gives you all the information that you would need to go through to the calculation, assuming you could have a calculation routine to do it, then you need thio. Then turn around and set up your well. Call your environment. You know where Ford Yield Curves are with mortgage backed securities or any portable call. Will bond sort of probabilistic lee run their numbers many times and come up with effective duration? Um, And then you do your Vader's analytics. No aggregating the portfolio and looking at Shortfalls versus your funding. Or however you're doing risk management and then finally do reporting, which is where the standardized business reporting model comes in. So that kind of the five parts of doing a full enterprise risk model and Alex So what >> does >> this mean for first? Well, who does his impact on? What does it mean for organizations? >> Well, it's gonna change the world for basically everyone because it's like doing a clue ends of a software upgrade. Conversion one's version two point. Oh, and you know how software upgrades Everyone hates and it hurts because everyone's gonna have to now start using the same standard ontology. And, of course, that Sarah Ontology No one completely agrees with the regulators have agreed to it. The and the ultimate controlling authority in this thing is going to be F sock, which is the Dodd frank mandated response to not ever having another chart. So the secretary of Treasury heads it. It's Ah, I forget it's the, uh, federal systemic oversight committee or something like that. All eight regulators report into it. And, oh, if our stands is being the adviser Teff sock for all the analytics, what these laws were doing, you're getting over farm or more power to turn around and look at how we're going to find data across the three so we can come up consistent analytics and we can therefore hopefully take one day. Like Goldman, Sachs is pre payment model on mortgages. Apply it to Citibank Portfolio so we can look at consistency of analytics as well. It is only apply to regulated businesses. It's gonna apply to regulated financial businesses. Okay, so it's gonna capture all your mutual funds, is gonna capture all your investment adviser is gonna catch her. Most of your insurance companies through the medical air side, it's gonna capture all your commercial banks is gonna capture most of you community banks. Okay, Not all of them, because some of they're so small, they're not regularly on a federal basis. The one regulator which is being skipped at this point, is the National Association Insurance Commissioners. But they're apparently coming along as well. Independent federal legislation. Remember, they're regulated on the state level, not regularly on the federal level. But they've kind of realized where the ball's going and, >> well, let's make life better or simply more complex. >> It's going to make life horrible at first, but we're gonna take out incredible efficiency gains, probably after the first time you get it done. Okay, is gonna be the problem of getting it done to everyone agreeing. We use the same definitions >> of the same data. Who gets the efficiency gains? The regulators, The companies are both >> all everyone. Can you imagine that? You know Ah, Goldman Sachs earnings report comes out. You're an analyst. Looking at How do I know what Goldman? Good or bad? You have your own equity model. You just give the model to the semantic worksheet and all turn around. Say, Oh, those numbers are all good. This is what expected. Did it? Did it? Didn't you? Haven't. You could do that. There are examples of companies here in the United States where they used to have, um, competitive analysis. Okay. They would be taking somewhere on the order of 600 to 7. How 100 man hours to do the competitive analysis by having an available electronically, they cut those 600 hours down to five to do a competitive analysis. Okay, that's an example of the type of productivity you're gonna see both on the investment side when you're doing analysis, but also on the regulatory site. Can you now imagine you get a regulatory reports say, Oh, there's they're out of their way out of whack. I can tell you this fraud going on here because their numbers are too much in X y z. You know, you had to fudge numbers today, >> and so the securities analyst can spend Mme. Or his or her time looking forward, doing forecasts exactly analysis than having a look back and reconcile all this >> right? And you know, you hear it through this conference, for instance, something like 80 to 85% of the time of analysts to spend getting the data ready. >> You hear the same thing with data scientists, >> right? And so it's extent that we can helped define the data. We're going thio speed things up dramatically. But then what's really instinct to me, being an M I t engineer is that we have great possibilities. An A I I mean, really great possibilities. Right now, most of the A miles or pattern matching like you know, this idea using face shield technology that's just really doing patterns. You can do wonderful predictive analytics of a I and but we just need to give ah lot of the a m a. I am a I models the contact so they can run more quickly. OK, so we're going to see a world which is gonna found funny, But we're going to see a world. We talk about semantic analytics. Okay. Semantic analytics means I'm getting all the inputs for the analysis with context to each one of the variables. And when I and what comes out of it will be a variable results. But you also have semantics with it. So one in the future not too distant future. Where are we? We're in some of the national labs. Where are you doing it? You're doing pipelines of one model goes to next model goes the next mile. On it goes Next model. So you're gonna software pipelines, Believe or not, you get them running out of an Excel spreadsheet. You know, our modern Enhanced Excel spreadsheet, and that's where the future is gonna be. So you really? If you're gonna be really good in this business, you're gonna have to be able to use your brain. You have to understand what data means You're going to figure out what your modeling really means. What happens if we were, You know, normally for a lot of the stuff we do bell curves. Okay, well, that doesn't have to be the only distribution you could do fat tail. So if you did fat tail descriptions that a bell curve gets you much different results. Now, which one's better? I don't know, but, you know, and just using example >> to another cut in the data. So our view now talk about more about the tech behind this. He's mentioned a I What about math? Machine learning? Deep learning. Yeah, that's a color to that. >> Well, the tech behind it is, believe or not, some relatively old tech. There is a technology called rd F, which is kind of turned around for a long time. It's a science kind of, ah, machine learning, not machine wearing. I'm sorry. Machine code type. Fairly simplistic definitions. Lots of angle brackets and all this stuff there is a higher level. That was your distracted, I think put into standard in, like, 2000 for 2005. Called out. Well, two point. Oh, and it does a lot at a higher level. The same stuff that already f does. Okay, you could also create, um, believer, not your own special ways of a communicating and ontology just using XML. Okay, So, uh, x b r l is an enhanced version of XML, okay? And so some of these older technologies, quote unquote old 20 years old, are essentially gonna be driving a lot of this stuff. So you know you know Corbett, right? Corba? Is that what a maid omg you know, on the communication and press thing, do you realize that basically every single device in the world has a corpus standard at okay? Yeah, omg Standard isn't all your smartphones and all your computers. And and that's how they communicate. It turns out that a lot of this old stuff quote unquote, is so rigidly well defined. Well done that you can build modern stuff that takes us to the Mars based on these old standards. >> All right, we got to go. But I gotta give you the award for the most acronyms >> HR 15 30 fi G o m g s b r >> m fsoc tarp. Oh, fr already halfway. We knew that Owl XML ex brl corba, Which of course >> I do. But that's well done. Like thanks so much for coming. Everyone tried to have you. All right, keep it right there, everybody, We'll be back with our next guest from M i t cdo I Q right after this short, brief short message. Thank you

>>live from Las Vegas. It's the Cube covering. Inform Attica World 2018 Not you. Buy. Inform Attica. >>Welcome back and run. Live here in Las Vegas at the Venetian Cubes coverage of In From Attica, World 2018. I'm John for the coast to queue with by host the next two days. Peter Barrister, head of research for Wicked Bonds with an Angle and the Cube. Our next two guests from Deloitte. Leo Cabrera, who's senior manager. And Rajeev Krishna, who's the specialist leader on the engineering side. CDO side guys, Thanks for joining us. Thank you, John. Thank you, Lloyd. The leader in a lot of areas, absolutely doing a lot of cutting edge stuff from c'mon, the Blockchain crypto side tax side also in the I t side. You guys have been in a great top customers here in data in from Atticus, leading the charge, looking good with the trends. But the cloud is here. Cloud scale ecosystems developing. How do you guys see in from Attica? Evolving. Going forward, Mostly great messaging. But they still got customers out there that have sold stuff. They want to bring in cloud native new data. What's what's the prospects were in from Attica. >>Foreign Formica, Saudi lawyer. We have this nuanced article data advantage and basically would consider the inflection point between what we call in just 3.0, industry for point. And it's basically now we want to get value out of the data and our data advantage strategy Focus on three pillars. They have engineering wilderness and enable men for as Informatica Isa great component and a great supporter in each of these areas. Right, So, through these study we offer video service is we offer data governance. Studio chief did offer sheet state all of it. Yeah, on. And we partner with Informatica to profile the data to understand what will be the points in which we can find value over the data on off course with the new enterprise catalog to tool to do better governance for our clients. >>I want to get under the hood. I see the catalog is getting a lot of great reviews. Some people think that this is the next big wave in data management, similar to what we've seen in other ways like well, what? Relational databases and every way that comes on cap this catalogue New kind of catalogs emerging. What's your view on this? Is it away? Visit like recycled catalog, is it? >>So get a cataloguing and data. Curation has bean going on for decades, right? But it's never gained traction on, and it's never given Klein's the value because it was so manual takes tons of effort to get it right, right. So what inform Attica is done, which is absolute breakthrough? This embed a i into their enterprise data can log into which kind of accelerates the whole data. Cataloging on basically gives them gives climbs. The value in terms of cutting down on there are packed in terms of how many people, how many data students you need to put together >>So they modernize that. Basically, they exactly all the manual stuff put automation around and put some software to find around at machine learning. Is that kind of the secret to their success? >>Absolutely. And Down Delight has been partnering with Informatica for quite a while. In fact, we are one of the few companies that have a seat on the product advice report s o what we see from the marketplace we cannot feed into in from Attica to say, Hey, here's what you need to build into your products, right? So we be doing that with their MDM solution. For example, we have what we have. Articles indium, elevate. So we build machine learning into their MP and platform and offer. That's a solution similarly, and for America has built the clear platform into their E. D. C s. Oh, that's absolutely driving Valley for clients. And we have a lot of clients that are already leveraging >>a lot of risk and platforms tools, right? I see a lot of data stuff out there that's like like a feature, not a platform, that these guys got a platform, right? So But now the world's changing the cloud. How do you guys take that data advantage program or go to a CDO and saying, Look, you gotta think differently around the data, protect you explain your view on that. >>For us, data is now the center of everything, right? So any business who want to remain competitive in the future needs to get into entire end twin management of the data, getting the value of off data and also understanding what is the data coming from and what is the day they're going to write off course is studded with all the regulations. And now GDP are coming on Friday. It is a big, you know, pusher for companies to realize that over. If >>you have a big party on Friday, a big party or is this what you Katie was a big part. Nothing happened. So you're never mean GDP. Are you guys have a lot going on there? I mean, this is the center of the conversation. >>Yeah. I mean, we do have a lot of clients who need to be compliant on GDP are on informatica is one of the tools that have already pre established the policies, so you can quickly determine where is the data that GPR is gonna be monitoring and looking for compliance on So rather than doing it from a scratch, right? So it takes a lot of it >>for Let's build on this a little bit. So when we talk about different as John was saying, different generations of data management technology, we're coming out of a generation was focused on extract, transform and load where every single application or every single new analytics application wasn't you identify the source is uniquely you build extractions unique. You'd build transformations, you build load scripts. Uniquely all that stuff was done uniquely. Now what we're saying is catalog allows us to think to move into a re use world. We've been reusing code fragments and gets and all these other things for years. In many respects, what we're talking about is the ability to bring a reuse orientation inside the enterprise to data. Have I got that right? You got it >>right. Two minutes. But the most important parties how to get value out of that, right? Because they did >>manage to get value out of using >>it more exactly And understanding, You know, how can improve your operations or you know, the bottom line, or reduce the risk that you have in your data, which is basically CPR is about, >>and one other Salin point is on very scene for America bringing values their completeness of mission. Right. So when you talk about gdp are you need different aspects, right? You need your data integration. Whether it be through cloud around. Promise you need get a governor on top of what you're cataloging, right? You need security data security. Right? So it all comes together in the hole in dramatic solutions. And I think that's very see value is supposed to like pocket pockets >>of guys. I gotta ask you a question. We've seen many ways. I think it's a big way this whole date away. But you guys, you have a term called industry four point. Oh, is what is industry but the Deloitte term. But what is that? What is industry four point? Oh, me. Can you define that? >>You wanna take that door? >>Yeah, sure. So we've seen, you know, revolutions in terms off technology and data on. We've seen people going from kind of the industrial revolution to the dark. Amira, What? Three terms in the street? Four point off where data is annoying, right? So data is an acid that needs to be completely leverage. Not just you look a reactively and retrospectively like How did we do? Right? And not even just for predictive analytics. We've seen that for a few years now. It's also about using data to drive. This is value, right? So are there new ways to monetize data? Are there new ways to leverage data and grow your business? Right? So that's what Industry four. No, no is about. >>That's awesome. Well, we got a lot of things going on here. Thanks for coming on. The Cube had a couple of questions. Got a lot of dishes going on. That preparing for the big opening of the Solutions Expo Hall. We're in the middle of all the action. You're out in the open, accused. What we do. We go out in the open final question, eyes around the CDO. Who should the chief date officer report to the C I O board? What >>do you >>guys seeing? Because the CDO now picking a strategic role if Davis the new oil. That data is the fourth wave of innovation that we've seen over centuries. What does that mean? For the chief Data Officer? More power? Why'd you report to the C i o? Why is the CEO reported the Chief Data officer? What's your take? >>Traditionally our clients in the past, where the mandate for the studios were more in the data governess, right? As of today, it is going more into enablement the data, right? So more than Analytics case. Still, service is so well seen clients going from the studio moving from under the CEO in tow, the CEO and into the CMO in some cases, more about marketing. However, at the lawyer, our proposition is that companies should do a big shift and funded the new data function as a totally new vertical next to H. R next to finance right, which have his own funding and the CDO being the leader of that function, reporting directly to the CEO or >>enablement side CEO handling much of three things engineering, governance and enablement correct. So the CEO will handle Engineering Dept. Which not just its engineering, full stack developers, possibly our cloud native developers. Governance could come into policy, normal stuff. We've seen enablement more tooling, democratization of things. >>Yeah, yeah, >>yeah. I mean, what we've been seeing right in the real world, Liss, you have, for example, finance transformation that CIA full heads, right? So there's a lot of traction at that point to kind of bring the company together. But then that soon fizzles out. Sometimes you have, ah, the CMO bringing on and marketing campaign and, you know, analytics initiative, right? There's a lot of traction. Then it fizzes out. So you need somebody at the chief data officer of the C suite level to maintain that traction that moment, Um, in order freed value. >>But it seems the key issue is someone who is focused on data as an asset generating competitive returns on data as an asset because and the reason why it could be the CEO, it could be somebody else. Historically, an i t. The asset was the hardware on the argument here is that the asset is no longer the hardware now the data data. So whoever whatever you call it, someone and a group who's focused on generating returns out of data, >>Yes. But it has to have that executive level and that new talent mortal that we're proposing right where everybody knows a little bit of data in a sense. >>And the other thing is that I mean, think about this role that's dedicated to creating value of data, right? So you can understand you know how you create value in one function. Take it to the other function and tell them Hey, here's have helped finance right, get more value and then use the same thing marketing our sales. So it's also the cross pollination of ideas across different functions in an organization. S O n roll like that is helpful in terms of >>just to say, the data could very well become the next shared service's organization. That's because you don't want your salespeople to be great with data and your marketing people to be lousy with data. >>Correct. You're totally right on that. That's what we're proposing, right? So data being another vertical in entire business, >>the Lloyd bring all the action here on the Q. With all the data they're sharing here to you. It's the Cuban John for With Peter Burst, more live cover. Stay with us. We're here in Las Vegas. Live for in from Attica, World 2018 day. One of two days of wall to wall comes here out in the open. Bringing you all the data is Thank you. Stay with us.

(quiet jazz) >> Announcer: Live from Los Angeles, it's theCUBE covering Open Source Summit North America 2017. Brought to you by the Linux Foundation and Red Hat. (upbeat techno music) >> Okay, welcome back, everyone, live in Los Angeles to theCUBE's exclusive coverage of the Open Source Summit in North America, I'm John Furrier. My cohost, Steve Miniman. Our next guest is Jono Bacon, who is the founder of Jono Bacon Consulting in the community. A great talk here-- >> Jono: Thank you. >> at Open Source Summit. Great to see you. >> Yeah, thank you for having me on. >> Congratulation on all your recent success, on the personal and business side. Congratulations, great to see you. So, bottom line, Open Source Summit is kind of powered by the Linux Foundation, but pretty significant accomplishment and State of the Union, if you will, calling an Open Source Summit, big tent event. What's your view on this? How do you explain to folks watching? Is this a new event, is it a combination of multiple events, certainly a great, great big tent, >> Jono: Yeah. >> cross pollination. Whatever you want to call it. But what is this event about? Share your opinion. >> I think it's interesting, and I don't work for the Linux Foundation, but I've worked very closely with them for a number of years. And I think what we've been seeing is that in the earlier days of open source, there was, you know, the Linux foundation have played a fairly key role in certain specific areas. And in recent years, they've become a real center of gravity around open source in a variety of different areas, from automotive to cloud and beyond. And obviously there's a ton of events that are happening all over the world. And the open source thing I think is interesting because it's really an umbrella event that's got four other events that are part of it. So the event that I was running, which we launched this time around, was the Open Community Conference, which is kind of like one thread of this broader event. So one of the things I like about it is is different events from my experience draw different types of audiences. The Linux Foundation events have traditionally brought a lot of professionals who work in the industry. In a similar way, that happens at OSCON as well. But I like that the events kind of become a little bit more organized and diversified into those four areas. And I think what happens then is you get a greater bandwidth of content and discussions that go with that. >> I think it's an interesting point of these other streams, if you will, kind of going into the big tent event. It's got an ecosystem vibe to it, cause you don't want to lose the specialty of the topics and interest at the events that matter for the audiences on a content basis and face-to-face communications. But it's interesting that they're taking this approach because, when you look at it, the scale that's coming, in open source generally, categorically, if you put all of the code together, it's exponentially growing. >> Jono: Oh, yeah. >> So, there's a flood coming, there's a big open source flood of code coming. So, I think it's time to think architecturally about the dams and the rivers and the flows. To your point, this is a super important point in history. >> Oh, it's without question. And one of the things that's interesting to me is in my work as a consultant, when I help companies to build communities, it's broken into a few different layers. For example, so one is a technology layer, like which of the lego bricks that you're going to choose to put together, and how do you click them together in different ways? And that's where I think the LF has become a real center of gravity around what those projects are and how to integrate. But the other thing that we're starting to see more and more of is the formalization of the software development lifecycle, which is, it's not nearly just writing code anymore. It's about automated testing and continuous delivery and deployment, and all these different pieces. So I think we're seeing a formalization of the Lego bricks, but also the instructions for how you click them together. And that's really important if we're going to broaden out this bubble. Because this is a bubble that we're in right now. This is full of invariably tech companies talking about technology. But when we get into the bigger enterprises, when we get into non-tech into the-- >> John: Blocking and tackling, the realities are there. >> And there is so much nuance wrapped up in open source that it's alien to the people outside of this world, that we need to build that better interface for that. >> And that's just putting some hardening around either software or process that there's some comfort and reliability to the users. >> I'll give you one example. Like one company that I was working with, who were a large hardware company, fairly unfamiliar with open source. And one of the first questions they asked me was, "What does success look like? We know what all these options are, we see all the things that people are talking about, but we don't know how to determine what success is." And I think even just that, it seems like an obvious thing to the people in this room, but it's not obvious to a lot of people who are new to consumer technology this way. >> They want to see a finish line or some KPI that's says, we're done! >> Jono: Exactly! >> Shipped! >> And also because this is technology that's built by a broad diverse community of people, you then, a lot of these organizations then say, "So, what is my expected social responsibility here?" So, like how do I participate in this world that I'm broadly unfamiliar with? To me it's like a hip hop guy who's trying to join a metal band. You know? (John laughs) It works differently. >> It's completely different genres of developers and also environments. So, what's your advice to customers? Because they have to navigate because the mainstream adoption of Linux, obviously, and now new projects as they graduate or come to fruition will be deployed. So there is an ops, the DevOps certainly is a movement we're seeing, we can agree on. But now I got to put it into production. I'm a bank or I'm an enterprise. Hey, I got some guys that are monitoring. We're not that active, but we're happy to use it, be a user. How do you talk to that customer? >> Jono: Right. >> The way which I try to approach it is is to break it into a few different areas. The first thing is to first of all make sure that everybody's got the same sense of what the problem is that you want to solve. One of the things that was most transformative to me when I started consulting was it's amazing how many people think they're solving the same problem, but they're actually on a completely different grade of the same problem. So to me, what I like to do, is I like to define what I call a set of key themes which are these are the big rocks that we want to target in a time frame, six months or a year, or whatever it might be. Particularly with, when you're either doing community strategy or development, or you're doing a level of open source, it's fundamentally cross-functional. It involves marketing, engineering, product, there are executive stakeholder requirements, and then there's the people on the ground who are delivering those, so getting those themes in place I think is critical. But then to me what's important next, is to break a broader strategy down into smaller, consumable pieces. I think one of the things where a lot of companies get stuck is they're aware of these different Lego bricks that are available to them. They're aware of some optimizations in terms of workflow, but it's such a huge thing to bring into an organization that invariable is already got a very, very, stodgy or very specific culture that they've got to somewhat unseat. So to me, you need that combination of permissive, top-down approach, which is invariably your exec saying we see value in this, but then you need to break the strategy and the execution down into smaller manageable pieces that a team can wrap their head around. >> We talked to the Cisco guy, Ed, and he was, we were talking about DevNet, a huge developer community for Cisco. DevNet Create was kind of their cloud-native group that they've put together, great little skunk works, worked out great. But those are two languages. It's two worlds. The semantics of what they're saying is the same thing, but the translation is needed. This seems to be a common thread within the DevOps community now that the rubber hits the road, and people see the obvious benefits of what is true private cloud or cloud native. So, how do you go ahead? You provide like a dictionary, and say, "Hey, here's the translation. Okay, he really means that." I mean, are you being more herding the cats, being a translator, or is the client further along than that in your mind? >> It varies, it does vary from company to company. And a chunk of this, at least from my experience, is there is a significant translation layer. One of the things I talked about in my keynote on Monday was I see collaboration ... When I do community strategy, but fundamentally, it really is organizational design. It's just outside of a company in some cases, and sometimes inside of a company. In an organization, you'll have a set of stakeholders making decisions, and then the people who've got to execute on those decisions. And there is often a massive translation layer between them. I run a conference called the Community Leadership Summit each year at OSCON, and every year a couple hundred community managers come along, and I hear the same story from a lot of them, which is, I joined this company, I started building out, I started doing my work and my manager wasn't happy. And to me it's because the execs are defining value that they want to see, but it's not getting translated into tatics, and invariably a lot of the folks who are coming into it-- >> John: Where their ROI calculations are-- >> Yeah, a lot of that's-- >> They're not seeing a real answer. They don't know what success looks like. >> And they come in, and they don't necessarily have the strategic background to internalize that requirement into a place that they can move it forward. So, you get this kind of, this impedance mismatch. So, a big chunk of what I tend to do is to really try to understand what those requirements are and to work across the organization to try and-- >> John: You're doing architecture? Like what would be organizational behavior architecture in the wild, but also an arbiter to the managers. It's looking good, it's like you're trying to the score of the game. You're keeping-- >> Jono: And some days as well, as I'm sure anyone who's watching this, will have seen this with the companies they work with, this isn't rocket science. You know, what someone says they want, this is going to sound incredibly patronizing, it's not meant to, but when someone says what they want, invariably what they actually want is not that thing. So for example, I was working with a company a couple of months ago and they were saying, "We just want growth. We absolutely want to grow as quickly as we can." And when I dug into it with their CEO, what they really wanted was brand recognition and acceptance. And those are two very different challenges that you got to approach there. >> John: Stu, get a word in, I'm sorry if I've taken all of it. >> Yeah, John's passionate about community if you can't tell. The question I have for you is, building a community takes time, and things are changing faster than ever. How do you help people manage that pace of change versus I want results? It seems strategy is something that is for today, and we're changing often. So, how do you manage that give and take of growing yet breaking? >> It's a great question. And again, I think it varies. To me, there's some fundamental pieces that are involved in the way that I, and I take one approach and other people will take different approaches, I'm certainly not the only person who's doing this. The approach that I like to take is is we first of all need to treat communities as a journey. I think a lot of people think we have a product or a service, let's get people interested, and it's seen as a series of individual interactions with individual people. Whereas the way I like to look at it is when that person discovers your product, your service, your framework, whatever it may be, there's a journey from how they learn about it, how they go up an on-ramp to get something done, how you get people making their first contribution or how they derive their first piece of value, and then how you incentivize and reward them to keep them moving along the journey. So to me I look at it as this zoomed-out birds-eye view of this journey that I want to craft. And then I like to break that down into small bite-sized pieces that form the strategy. But the other thing is, and this varies depending on the company, is to what level of transparency and openness you need to communicate with different people. So, for example, one of the first things I do with inner source when people bring in open source principles inside a company is to make sure we have weekly reports going out and we're updating the stakeholders, more specifically, on a regular cadence. Because in that kind of environment where there's an existing enterprise, we all see these like digital transformation consultants come in-- >> Oh god, it's a total gravy train. They make the bookings and the billings. Reminds me of the old ERP deployments. Write a big fat check, and it'd be like, all these consultants come in and make all the cash. >> I think a lot of people look around thinking, alright, Lunchbox, you'll be here for a year. You'll be gone then, all right, and we'll go on to the next thing now our CEO cares about. So to me it's like-- >> John: Well, the consulting is being disrupted. It's interesting, you're a contrarian in your world because you have a consulting firm, but the old model things used to be the next gig is get that next consulting gig, so you worked not to actually put yourself out of a job, which is where the client wants to get. And that's where Agile and cloud has come in. It's interesting is, this is where the work product is. You know what success is in that model. You can come in and say, look, we did our work, everything. You've got a community that's vibrant. You got operational, they operationalized your value. >> Jono: Yep. >> You don't need me anymore, unless you want me. So, it's one of those kinds of conversations. Your thoughts? >> I agree. And it's interesting you mentioned Agile. One of the things that I've noticed as well, and I'm sure lots of not just consultants but people notice this as well is there are, I think there are broadly two types of people in the world. I think there's people who take a very kind of organic and somewhat animated approach to how they do things. And then there's some people who really need a roadmap. They need to follow a plan. I think a lot of people who are building organizational design or building communities default to we need to create a process and a workflow so people can follow that and we can have a sense of order. I don't think most people naturally want to work like that. I think there's a reason why people don't stick with to-do lists. It's because people like to have a more organic way of working. And a good example of this, in my mind, is Agile. Some people will take Agile to the nth degree with story points and epics and a lot of that kind of stuff-- >> You serve the process, the process doesn't serve the objective. I mean, it's the classic effectiveness model. But, I mean, that's the whole point. I mean, you could foreclose opportunities if you're too structured. But yet you got to have some boundaries, let the ball bounce around. So, you kind of want both. What is the ideal in your mind? >> In my mind, the approach that I'm a big fan is an approach called munsing, which was a story of, I forget his name, there's a story of a guy back in like the 50s. And he basically owned a TV factory. And what he'd do is he'd go up to like an engineer who's building one of these big, bulky old TVs, and he'd basically pull out components until it stopped working. And then he'd put that last component in so it would be the minimum level of components for it to work. Ended up saving the company a ton of money. I like to take the same approach process. What's the minimum level that you need that gives people the creativity to be successful in a predictable way? So, like with Agile, these epics and stories and things like that, I think a lot of that stuff is just there to deal with crappy product managers, like people who aren't very good at manning your project. No process is going to deal with someone who's not good at organizing. >> You need to bring to me the right level of the human ingredient and the process is what keeps people ticking over-- >> The other thing too that I find in that area is people kind of redefine, or they maybe mischaracterize what outcome is. Everyone's outcome driven. Love that word. (Jono laughs) It's all about the outcome. In this case, the TV's got to work with a less amount of moving parts. >> Jono: Right. >> That's the outcome. And so, outcomes can be bastardized if you will, could be really mangled in its definition. How do you work with clients on trying to really temper and set the expectations on what the outcome is? Cause the manager still wants to know what the outcome is going to be. So, do you reverse engineer from there? How do you tackle that? >> Jono: It's interesting. A big chunk of it for me is just being realistic. There is no minimum amount of work that needs to be put in to achieve any kind of community. I think you can build a tiny community with one person. However, depending on the requirements and the goals, there's just certain things you have to do. And there's certain time and resources that are required. And also just expectations. Like one of the expectations that some people wrestle with I think is, if you're building a community they're either inside your organization or outside, it's only going to succeed if a broader set of people participate. You know, we see this trend where you hire a community manager and that person lives in a forum or a slack channel to build out the community. Doesn't work. >> John: Yeah. >> Because the people in that community want access to other people. >> This value creation mindset in communities. Value has to be a group dynamic. This individual contributions, I get that. But the group dynamic is critical. Not just a message board moderator. I mean, that's basically what you're saying. >> Jono: Exactly. >> That's a message board. >> Nobody wants to deal with >> John: That's a tool. >> the interface of the thing you care about. And that's the community manager. So, a chunk of this then is a different mindset in how people operate. One of my clients is a company called HackerOne. I wrapped up work with them a little while ago, and their CEO is this guy called Mårten Mickos who-- >> John: Yeah, Mårten's great CUBE alumni. >> Phenomenal. For me, he's one of the people I most respect in our industry. >> John: He's a great strategic thinker, understands community, knows tech. Great guy >> Jono: Amazing. >> One of the things that he said when he joined HackerOne was I want everybody in this company to know a hacker. Everybody's got to know our audience. Everybody's got to understand the needs, the desires, the insecurities, the worries, the dynamics, otherwise we can't build a community. It's not just hiring a person to interface to that. That's one of the trickiest things because, again, it takes time. >> John: It's alignment to the audience. >> Right >> John: This is classic. >> Ingratiating in and actually being cool. Aligning with them >> Right. And if it's done well it's really rewarding because I think people who ordinarily wouldn't see the fruits of their labor. >> Well, Jono, I want to get your thoughts as we wrap up the segment here on what's exciting you about potential new things that are coming around the corner. Obviously, we see the promise of blockchain which could have a great big application for communities. We're doing some things with it now that we're testing in our community around trying to create these new value networks. Certainly, there's new tooling coming out. Things like theCUBE and content and communities. New things are coming. The growth is going to be here which is going to create great new opportunities. >> Jono: Yeah. >> What are you excited about as you want to navigate the community landscape? Because the thesis is more people are coming in, more rivers of distinct audiences are going to want specialty but yet the broad market ... What are you excited about the community opportunity? From compensation to interaction to culture. What's your thoughts? >> There's a few things I'll subdivide it into things that relate to my bread and butter which is communities and things just more broadly in technology. The one thing I'm really excited about communities is I feel like the value proposition has become well understood, is not just in open source but outside with Proctor & Gamble, H&R Block, Harley Davidson, all these examples. Where people see the value in doing this work and doing it well. And that's great because I think we're improving the state-of-the-art of how we do this. One of the reasons why I got into this was I want my career to leave a fingerprint on structured, predictable ways in which we can do this as opposed to seeming magic science that a lot of people seem to think community is. >> John: Or a series of one-offs that are not understood or can't be operationalized or leveraged in any way. >> Jono: Yeah, exactly. From a technology perspective, there's a bunch of things. I'm really excited about crowdsource security, things like HackerOne, Bugcrowd, Synack, things like that. I think there's a lot of excitement in my mind around bringing open source into financial services. I think that's an industry that's ripe to be disrupted which is a sentence I never thought I'd ever say. Ripe to be disrupted. (John laughs) And then I'm also really excited about the work that's going on obviously in A.I., but the intersection of A.I. with kind of like voice control. Obviously, things such as Google Home and Alexa, but also things like Mycroft. I think blockchain is interesting. It's kind of less interesting to me. It's not really something I've really been following very closely, but I think it is. I think it's pretty neat. But then also just the formalization of the end-to-end software development lifecycle and how we're seeing, you know, GitHub was transformative in technology for a lot of companies. And now we're seeing GitHub as one piece, and you've got continuous delivery and continuous deployment. And also, we manage ideas, the project manager, all that kind of stuff. >> I think there's a lot of transformative ideas coming. And I think it's super exciting. Congratulations on all the great work you're doing. >> Jono: Thank you. Appreciate it. >> I just think that the self-governing community model that's now becoming mainstream people are starting to figure out how to balance that with the command and control top down and hierarchy job definition specifics, and balancing that. I think the self-governing open source model certainly prove that. And communities as a working example of what you can operationalize. >> It's exciting. >> And crowdsourcing just takes it to the consumer level. >> Right. >> Okay, it's working there too. Okay, great job. Thanks for coming on. >> Thank you. >> John: Jono Bacon, >> John: Bacon Consulting. This is theCUBE. I'm John Furrier, Stu Miniman. More live coverage after this short break. (upbeat techno music)

>> Voiceover: Live from Las Vegas, it's theCUBE. Covering InterConnect 2017. Brought to you by IBM. >> Okay, welcome back, everyone. We are live in Las Vegas for IBM InterConnect 2017. This is IBM's Cloud show and, now, data show. This is theCUBE's coverage. I'm John Furrier with my cohost, Dave Vellante. Our next guest is Meg Swanson, VP of Marketing for Bluemix, the whole kit and caboodle, SoftLayer of Bluemix. Now you get to watch some data platform, IOT. The Cloud's growing up. How you doing? Good to see you again. >> It's good. Good to see you guys. Every time we get together, it's just huge growth. Every time, every month to month. Under Bluemix, we've pulled together infrastructure. The area that was called SoftLayer. And because we had developers that absolutely you need a provision down to bare metal servers, all the way up to applications. So we pulled the infrastructure together with the developer services, together with our VMware partnership, all in a single console. Continuing to work on, with clients, on just having a unified experience. That's why we have it under the Bluemix brand. >> You knew us when we were just getting theCUBE started. We knew you when you were kicking off the developer program, with Bluemix, was announced here in theCUBE. Seems like 10 dog years ago, which is about 50 years, no, that was, what, four years ago now? Are you four years in? >> I think so. Yeah, 'cause I remember running from the Hakkasan club, we had just ended a virtual reality session, and I had to run, and then I sat down, and we started immediately talking about Bluemix 'cause we just launched it. >> So here's the update. You guys have been making a lot of progress, and we've been watching you. It's been fantastic, 'cause you really had to run fast and get this stuff built out, 'cause Cloud Native, it wasn't called Cloud Native back then, it was just called Cloud. But, essentially, it was the Cloud Native vision. Services, microservices, APIs, things, we've talked about that. What's the progress? Give us the update and the status, and where are you? >> Yeah, obviously just massive growth in services and our partners. When you look at, we had Twitter up with us today, we've had continual growth in the technology partners that we bring to bear, and then also definitely Cloud Native. But then also helping clients that have existing workloads and how to migrate. So, massive partnerships with VMware. We also just announced partnership with Intel HyTrust on secure cloud optimization. When we first met, we talked so much about you're going to win this with an ecosystem. And the coolest thing is seeing that pay off every day with the number of partners that we've been so blessed to have coming to us and working together with us to build out this ecosystem for our clients. >> And what's the differentiator, because what's happening now is you're starting to see the clear line of sight from the big cloud players. You have you guys, you have Oracle, you see Microsoft, you see SAP, you all got the version of the cloud. And it's not a winner-take-all market, it's a multi-cloud world, as we're seeing. Certainly open-source is driving that. How do you guys differentiate, and is it the same message? What's new in terms of IBM's differentiators? What's the key message? >> That we're absolutely staying core to the reason we went into this business. We are looking at, what are the challenges that our clients are looking to solve? How do we build out the right solutions for them? And look at the technologies they're using today, and not have them just forklift everything to a public cloud, but walk with them every step of the way. It's absolutely been about uncovering the partnerships between on-premises and the Cloud, how you make that seamless, how you make those migrations in minutes versus hours and days. The growth that we've seen is around helping clients get to that journey faster, or, if they're not meant to go fully public Cloud, that's okay, too. We've been absolutely expanding our data centers, making sure we have everything lined up from a compliance standpoint. Because country to country, we have so many regulations that we need to make sure we're protecting our clients in. >> I want to ask you, and David Kenny referenced it a little bit today, talked about we built this for the enterprise, it didn't stem out of a retailer or a search. I don't know who he was talking about, but Martin Schroeter, on the IBM earnings call, said something that I want to get your comment on, and if we can unpack a little bit. He said, "Importantly, we've designed Watson "on the IBM Cloud to allow our clients "to retain control of their data and their insights, "rather than using client data "to educate a central knowledge graph." That's a nuance, but it's a really big statement. And what's behind that, if I can infer, is use the data to inform the model, but we're not going to take your data IP and give it to your competitors. Can you explain that a little bit, and what the philosophy is there? >> Yeah, absolutely. That is a core tenet of what we do. It's all about clients will bring their data to us to learn, to go to school, but then it goes home. We don't keep client data, that's critical to us that everything is completely within the client's infrastructure, within their data privacy and protection. We are simply applying our cognitive, artificial intelligence machine learning to help them advance faster. It's not about taking their insights in learning and fueling them into our Cloud to then resell to other teams. That, absolutely, it's great that you bring up that very nuanced point, but that's really important. In today's day and age, your data is your lifeblood as a company, and you have to trust where it's going, you have to know where it's going, and you have to trust that those machine learnings aren't going to be helping other clients that are possibly on the same cloud. >> Is it your contention that others don't make that promise, or you don't know, or you're just making that promise? >> We're making that promise. It's our contention that the data is the client's data. You look at the partnerships that we've made throughout Cloud, throughout Watson, it's really companies that have come to us to solve problems. You look at the healthcare industry, you look at all these partnerships that we have. Everything that we've built out on the IBM Cloud and within Watson has been to help advance client cases. You rarely see us launching something that's completely unique to IBM that hasn't been built together with a client, with a partner. Versus, there are other companies out there in this market where they're constantly providing infrastructure to run their own business, maybe their own retail store, and their own search engine. And they will continue to do that, and they absolutely should, but at the end of the day, when you're a client, what do you want to do? Are you trying to build somebody else's business, or do you want someone who's going to be all in on your business and helping you advance everything that you need to do. >> Well, it seems like the market has glombed on to public data plus automation. But you're trying to solve a harder problem. Explain that. >> When you look at the clients that we're working with and the data that we're working with, it's not just information that's out there to work in a sandbox environment and it's available to anyone, baseball statistics or something that's just out there in the wild. Every client engagement we're in, this is their critical data. You look at financial services. We just launched the great financial services solutions for developers. You look at those areas, and, oh my word, you cannot share that data, yet those clients, you look at the work we're doing with H&R Block, you have to look at, that is absolutely proprietary data, but how do we send in cognitive to help us learn, to help teach it, help teach them alongside, for the H&R Block example, the tax advisor. So we're helping them make their business better. It's not as if we ingested all of the tax data to then run a tax solution service from IBM. It's a nuance, but it's an important nuance of how we run this company. >> So seven years ago, I met this guy, and he said, the 2010 John, you said, "Data is the new development kit." And I was like, "What are you talking about?" But now we see this persona of data scientist and data engineer and the developer persona evolving. How are you redefining the developer? >> Yeah, it's a great point, because we see cognitive artificial intelligence machine learning development in developers really emerging strong as a career path. We see data scientists, especially where as you're building out any application, any solution, data is at the core. So, you had it 10 years ago, right? (laughs) >> (mumbles) But I did pitch it to Dave when I first met him in 2010. No, but this is the premise, right? Back then, web infrastructure, web scale guys were doing their own stuff. The data needs to be programmable. We've been riffing on this concept, and I want to get your thoughts on this. What DevOps was for infrastructurous code, we see a vision in our research at Wikibon that data as code, meaning developers just want to program and get data. They don't want to deal with all the under-the-hood production, complicated stuff like datasets, the databases. Maybe the wrangling could be done by another process. There's all this production heavy lifting that goes on. And then there's the creativity and coolness of building apps. So now you have those worlds starting to stabilize a bit. Your thoughts and commentary on that vision? >> Yeah, that's absolutely where it has been heading and is continuing to head. And as you look at all the platforms that developers get to work in right now. So you have augmented reality, virtual reality are not just being segmented off into a gaming environment, but it's absolutely mainstream. So you see where developers absolutely are looking for. What is a low-code environment for? I'd say more the productivity. How do I make this app more productive? But when it comes to innovation, that's where you see, that's where the data scientist is emerging more and more every day in a role. You see those cognitive developers emerging more and more because that's where you want to spend all your time. My developers have spent the weekend, came back on Monday, and I said, "What'd you do?" "I wrote this whole Getting Started guide "for this Watson cognitive service." "That's not your job." "Yeah, but it's fun." >> Yeah, they're geeking out on the weekends, having some beer and doing some hackathons. >> It's so exciting to see. That's where, that innovation side, that's where we're seeing, absolutely, the growth. One of the partnerships that we announced earlier today is around our investment in just that training and learning. With Galvanize. >> What was the number? How much? >> 10 million dollars. >> Evangelizing and getting, soften the ground up, getting people trained on cognitive AI. >> Yeah, so it's really about making an impactful investment in the work that we started, actually a couple years ago when we were talking, we started building out these Garages. The concept was, we have startup companies, we starting partnering with Galvanize, who has an incredible footprint across the globe. And when you look at what they were building, we started embedding our developers in those offices, calling them Garages because that is your workshop. That's where you bring in companies that want to start building applications quickly. And you saw a number of the clients we had on stage today consistently, started in the Garage, started in the Garage, started in the Garage. >> Yeah, we had one just on theCUBE earlier. >> Yeah, exactly, so they start with us in the Garage. And then we wanted to make sure we're continuing to fuel that environment because it's been so successful for our clients. We're pouring into Galvanize and companies in training, and making sure these areas that are really in their pioneering stages, like artificial intelligence, cognitive, machine learning. >> On that point, you bring up startups and Garage, two-prong question. We're putting together, I'm putting together an enterprise-readiness matrix. So you have startups who are building on the Cloud, who want to sell to the enterprise. And then you have enterprises themselves who are adopting Hybrid Cloud or a combination of public, private. What does enterprise-readiness mean to you guys? 'Cause you guys have a lot of experience. Google next, they said, "We're enterprising." They're really not. They're not ready yet, but they're going that way. You guys are there. What is enterprise-readiness? >> Yeah, and I see a lot of companies have ambitions to do that, which is what we need them to do. 'Cause as you mentioned, it's a multi-cloud environment for clients, and so we need clouds to be enterprise-ready. And that really comes down to security, compliance, scalability, multiple zones. It comes down to making sure you don't have just five developers that can work on something, but how do you scale that to 500? How do you scale that to 500,000? You've got these companies that you have to be able to ensure that developers can immediately interact with each other. You need to make sure that you've got the right compliance by that country, the data leaving that country. And it's why you see such a focus from us on industry. Because enterprise-grade is one thing. Understanding an industry top to bottom, when it comes to cloud compliance is a whole other level. And that's where we're at. >> It's really hard. Most people oversimplify Cloud, but it's extremely difficult. >> It is, 'cause it's not just announcing a healthcare practice for Cloud doesn't mean you just put everybody in lab coats and send out new digital material. It is you have to make sure you've got partnerships with the right companies, you understand all the compliance regulations, and you've built everything and designed it for them. And then you've brought in all the partner services that they need, and you've built that in a private and a public cloud environment. And that's what we've done in healthcare, that's what we're doing in finance, you see all the work we're doing with Blockchain. We are just going industry by industry and making sure that when a company comes to us in an industry like retail, or you saw American Airlines on stage with us today. We're so proud to be working with them. And looking at everything that they need to cover, from regulation, uptime, maintenance, and ensuring that we know and understand that industry and can help, guide, and work alongside of them. >> In healthcare and financial services, the number of permutations are mind-boggling. So, what are you doing? You're pointing Watson to help solve those problems, and you're codifying that and automating that and running that on the Cloud? >> That's a part of it. A part of it is absolutely learning. The whole data comes to school with us to learn, and then it goes back home. That's absolutely part of it, is the cognitive learning. The other part of it is ensuring you understand the infrastructure. What are the on-premises, servers that that industry has? How many transactions per second, per nanosecond, are happening? What's the uptime around that? How do you make sure that what points you're exposing? What's the security baked into all of that? So, it's absolutely, cognitive is a massive part of it, but it is walking all the way through every part of their IT environment. >> Well, Meg, thanks for spending the time and coming on theCUBE and giving us the update. We'll certainly see you out in the field as we cover more and more developer events. We're going to be doing most, if not all, of the Linux foundation stuff. Working a lot with Intel and a bunch of other folks that you're partnering with. So, we'll see you guys out at all the events. DockerCon, you name it, they're all there. >> We'll be there, too, right with them. >> Microservices, we didn't even get to Kubernetes, we could have another session on containers and microservices. Meg Swanson, here inside theCUBE, Vice President of Bluemix Marketing. It's theCUBE, with more coverage after this short break. Stay with us, more coverage from Las Vegas. (techno music)

(upbeat music) >> Covering InterConnect 2017, brought to you by IBM. >> Welcome back. We're here live in Las Vegas from Mandalay Bay for the IBM InterConnect 2017, this is Cube's exclusive coverage with SiliconANGLE media. I'm John Furrier, my co-host Dave Vellante here all week. We missed our kickoff this morning on day two and, because the keynotes went long with Ginni Rometty. Great star line up, you had Marc Benioff, the CEO of AT&T, and CEO of H&R Block, which I love their ad with Mad Men's guy in there. Dave let's wrap up day two. Big day, I mean traffic on the digital site, ibmgo.com was off the charts and the site just performed extremely well, excited about that. Also the keynote from the CEO of IBM, Ginni, really kind of brings us themes we've been talking about on theCUBE. I want to get your reaction to that, which is social good is now a purpose that's now becoming a generational theme, and it's not just social good in terms of equality of pay for women, which is great and of course more STEM, it's everything, it's society's global impact but also the tagline is very tight. Enterprise strong, has a Boston strong feeling to it. Enterprise strong, data first, cognitive to the core, pretty much hits their sweet spot. What did you think of her keynote presentation? >> I thought Ginni Rometty nailed it. I've always been a huge fan of hers, I first met her when she was running strategy, and you know the question you used to always get because IBM 19 quarters of straight declining revenue, how long is Ginni going to get? How long is Ginni going to get? You know when is her tenure going to be up? My answer's always been the same. (laughs) Long enough to prove that she was right. And I think, I just love her presentation today, I thought she was on, she was engaging, she's a real pro and she stressed the innovation that IBM is going through. And this was the strategy that she laid out, you know, five, six years ago and it's really coming to fruition and it was always interesting to me that she never spoke at these conferences and she didn't speak at these conferences 'cause the story was not great you know, it was coming together the big data piece or the analyst piece was not formed yet. >> So you think she didn't come to these events because the story wasn't done? >> Yeah, I think she was not-- >> That is not a fact, you believe that. >> No, this is my belief. She was not ready to showcase you know, the greatness of IBM and I said about a year ago, I said you watch this whole strategy is coming together. You are going to see a lot more of Ginni Rometty than you've seen in the past. You started to see her on CNBC much more, we saw her at the Women in Tech Conference, at the Grace Hopper Conference, we saw her at World of Watson and now we see her here at InterConnect and she's very good on stage. She's extremely engaging, I thought she was good at World of Watson, I thought she was even better today. And a couple of notable things, took a swipe at both AWS and maybe a little bit at HPE, I'm not so sure that they worry about HPE. Sam Palmisano, before he left on a Wall Street Journal interview, said "I don't worry about HPE, they don't invest in RND. "I worry about Oracle." But nonetheless, she said, it's not just a new way, cloud is not just a new way to deliver IT. Right that's the Amazon you know. >> HP. >> And certainly new way of you style by IT. >> You style by IT. >> Is Meg's line. She also took a swipe at Google basically saying, look we're not taking your data to inform some knowledge draft that we're going to take your IP and give it to the rest of the world. We're going to protect your data, we're going to protect your models. They're really making a strong statement in that regard which I think is really important for CIOs and CDOs and CEOs today. Thoughts? >> I agree. I first of all am a big fan of Ginni, I always kind of question whether she came in, I never put it together like you intuitively around her not seeing the story but you go to all the analyists thing, so I think that's legit I would say that I would buy that argument. Here's what I like. Her soundbite is enterprise strong, data first, cognitive to the core. It's kind of gimmicky, but it hits all their points. Enterprise strong is core in the conversations with customers right now. We see it in theCUBE all the time. Certainly Google Nexus was one event we saw this clearly. Having enterprise readiness is not easy and so that's a really tough code to crack. Oracle and Microsoft have cracked that code. So has IBM of the history. Amazon is getting faster to the Enterprise, some of the things they are doing. Google has no clue on the Enterprise, they're trying to do it their way. So you have kind of different dimensions. So that's the Enterprise, very hard to do, table stakes are different than having pure cloud native all the time 100%, lift and shift, rip and replace, whatever you want to call it. Data First is compelling because they have a core data strategy analytics but I thought it was interesting that they had this notion of you own your own data, which implies you're renting everything else, so if you're renting everything else, infrastructure (laughs) and facilities and reducing the cost of doing business, the only thing you really got is data, highlighted by Blockchain. So Blockchain becomes a critical announcement there. Again, that was the key announcement here at the show is Blockchain. IOT kind of a sub-text to the whole show but it's supported through the Data First. And finally Cognitive to the Core is where the AI is going to kind of be the shiny, silly marketing piece with I am Watson, I'm going to solve all your health problems. Kind of showing the futuristic aspect of that but under the hood there is machine learning, under that is a real analytics algorithms that they're going to integrate across their business whether it's a line of business in verticals, and they're going to cross pollinate data. So I think those three pillars, she is a genius (laughs) in strategy 'cause she can hit all three. What I just said is a chockfull of strategy and a chockfull execution. If they can do that then they will have a great run. >> So I go back to Palmisano's statement before Ginni took over and it was a very candid interview that he gave. And as they say, you look at when he left IBM, it was this next wave was coming like a freight train that was going to completely disrupt IBM's business, so it was, it's been a long turn around and they've done it with sort of tax rates, (laughs) stock buybacks, and all kinds of financial engineering that have held the company's stock price up, (laughs) and cash flow has been very strong and so now I really believe they're in a good position. You know to get critical for just a second, yes there's no growth but look who else isn't growing. HPE's not growing, Oracle's not growing, Tennsco's not growing, Cisco's not growing, Microsoft's not growing. The only two companies really in the cartel that are growing showing any growth really are Intel a little bit and SAP. The rest of the cartel is flat (laughs) to down. >> Well they got to get on new markets and I mean the thing is new market penetration is interesting so Blockchain could be an enabler. I think it's going to be some resistance to Blockchain, my gut tells me that but the innovative entrepreneur side of me says I love Blockchain. I would be all over Blockchain if I was an entrepreneur because that really would change the game on identity and value and all that great stuff. That's a good opportunity to take the data in. >> Well the thing I like is IBM's making bets, big bets, Blockchain, quantum computing, we'll see where that goes, cloud, clearly we could talk about, you know you said it (laughs) InterConnect two or three years ago you know SoftLayer's kind of hosting. True, but Blu makes the investments hoping-- >> SoftLayer's is not all Blu makes. >> That's right, well yeah so but any rate, the two billion dollar bet that they made on SoftLayer has allowed them to go to clients and say we have cloud. Watson, NAI, Analytics, IOT these are big bets which I think are going to pay off. You know, we'll see if quantum pays off in the year term, we'll see about Blockchain, I think a lot of the bets they've been making are going to pay off, Stark, et cetera. >> So let's talk about theCUBE interviews Dave, what got your attention? I'll start while you dig up something good from your notes. I loved Willie Tejada talked about this, they're putting in these clouds journey pieces which is not a best practice it's not a reference architecture but it's actually showing the use cases of people who are taking a cross functional journey of architecture and cloud solutions. I love the quantum computing conversation we had with believe it or not the tape person. And so from the tape whatever it was, GS. >> GS8000. >> GS8000. >> It's a storage engineering team. >> But in terms of key points, modernizing IOT relevance was a theme that popped out at me. It didn't come out directly. You start to see IOT be a proof point of operationalizing data. Let me explain, IOT right now is out there. People are focused on it because it's got real business impact, because it's either facilities, it's industrial or customer connected in some sort. That puts the pressure to operationalize that data, and I think that flushes out all the cloud washing and all the data washing, people who don't have any solutions there. So I think the operationalizing of the data with IOT is going to force people to come out with real solutions. And if you don't, you're gone, so that's, you're dead. The cultural issue is interesting. Trust as now table stakes in the equation of whether it's product trusts, operational trusts, and process trusts. That's something I saw very clearly. And of course I always get excited about DevOps and cloud native, as you know. And some of the stuff we did with data as an asset from the chief data architect. >> A couple I would add from yesterday, Indiegogo who I thought had a great case study, and then Mohammed Farooq, talking about cloud brokering. 60% of IBM's business is still services. Services is very very important. And I think that when I look at IBM's big challenge, to me, John, it's when you take that deep industry expertise that they have that competes with Accenture and ENY and Deloitte and PWC. Can you take that deep industry expertise and codify it in software and transform into a more software-oriented company? That's what IBM's doing, trying to do anyway, and challenging. To me it's all about differentiation. IBM has a substantially differentiated cloud strategy that allows them not to have to go head to head with Amazon, even though Amazon is a huge factor. And the last thing I want to say is, it's what IBM calls the clients. It's the customers. They have a logo slide, they bring up the CEOs of these companies, and it's very very impressive, almost in the same way that Amazon does at its conferences. They bring up great customers. IBM brings in the C-Suite. They're hugging Ginni. You know, it was a hug fest today. Betty up on stage. It was a pretty impressive lineup of partners and customers. >> I didn't know AT&T and IBM were that close. That was a surprise for me. And seeing the CEO of AT&T up there really tees it out. And I think AT&T's interesting, and Mobile World Congress, one of the things that we covered at that event was the over the top Telco guys got to get their act together, and that's clear that 5G and wireless over the top is going to power the sensors everywhere. So the IOT on cars, for instance, and life, is going to be a great opportunity for, but Telco has to finally get a business model. So it's interesting to see his view of digital services from a Telco standpoint. The question I have for AT&T is, are they going to be dumped pipes or are they actually going to move up the stand and add value? Interesting to see who's the master in that relationship. IBM with cognitive, or AT&T with the pipes. >> And, you know, you're in Silicon Valley so you hear all the talk from the Silicon Valley elites. "Oh well, Apple and Amazon "and Google and Facebook, "much better AI than Watson." I don't know, maybe. But IBM's messaging-- >> Yes. >> Okay, so yes, fine. But IBM's messaging and positioning in the enterprise to apply their deep industry knowledge and bring services to bear and solve real problems, and protect the data and protect the models. That is so differentiable, and that is a winning strategy. >> Yeah but Dave, everyone who's doing-- >> Despite the technical. >> Anyone who's doing serious AI attempts, first of all, this whole bastardized definition. It's really machine learning that's driving it and data. Anyone who's doing any serious direction to AI is using machine learning and writing their own code. They're doing it on their own before they go to Watson. So Watson is not super baked when it comes to AI. So what I would say is, Watson has libraries and things that could augment traditional custom-built AI as a kernel. Our 13-year-old guest Tanmay was on. He's doing his own customizing, then bring it to Watson. So I don't see Watson being a mutually exclusive, Watson or nothing else. Watson right now has a lot of things that adds to the value but it's not the Holy Grail for all things AI, in my opinion. The innovation's going to come from the outside and meet up with Watson. That to me is the formula. >> Going back to Mohammed Farooq yesterday, he made the statement, roughly, don't quote me on these numbers, I'll quote myself, for every dollar spent on technology, 10 dollars are going to be spent on services. That's a huge opportunity for IBM, and that's where they're going to make Watson work. >> If I'm IBM and Watson team, and I'm an executive there and engineering lead, I'm like, look it, what I would do is target the fusion aspect of connecting with their customers data. And I think that's what they're kind of teasing out. I don't know if they're completely saying that, but I want to bring my own machine learning to the table, or my own custom stuff, 'cause it's my solution. If Watson can connect with that and handshake with the data, then you got the governance problem solved. So I think Seth, the CDO, is kind of connecting the dots there, and I think that's still unknown, but that's the direction that I see. >> And services, it remains critical because of the complexity of IBM's portfolio, but complexity has always been the friend of services. But at the same time, IBM's going to transform its services business and become more software-like, and that is the winning formula. At the end of the day, from a financial perspective, to me it's cash flow, cash flow, cash flow. And this company is still a cash flow cow. >> So the other thing that surprised me, and this is something we can kind of end the segment on is, IBM just reorganized. So that's been reported. The games, people shift it a little bit, but it's still the same game. They kind of consolidated the messaging a little bit, but I think the proof point is that the traffic for on the digital side, for this show, is 2X World of Watson. The lines to get into keynotes yesterday and today were massive. So there's more interest in InterConnect than World of Watson. >> Well we just did. >> Amazing, isn't it? >> Well then that was a huge show, so what that means is, this is hitting an interest point. Cloud and data coming together. And again, I said it on the intro yesterday. IOT is the forcing function. That to me is bringing the big data world. We just had Strata Hadoop and R event at BigDataSV. That's not Hadoop anymore, it's data and cloud coming together. And that's going to be hitting IOT and this cognitive piece. So I think certainly it's going to accelerate at IBM. >> And IBM's bringing some outside talent. Look at Harry Green who came from Thomas Cook, Michelle Peluso. Marketing chops. They sort of shuffled the deck with some of their larger businesses. Put Arvind Krishna in charge. Brought in David Kenny from the Weather Company. Moved Bob Picciano to the cognitive systems business. So as you say, shuffle things around. Still a lot of the same players, but sometimes the organization-- >> By the way, we forgot to talk about Don Tapscott who came on, my favorite of the day. >> Another highlight. >> Blockchain Revolution, but we interviewed him. Check out his book, Blockchain can be great. Tomorrow we got a big lineup as well. We're going to have some great interviews all day, going right up to 5:30 tomorrow for day three coverage. This is theCUBE, here at the Mandalay Bay for IBM InterConnect 2017. I'm John Furrier and Dave Vellante. Stay with us, join us tomorrow, Wednesday, for our third day of exclusive coverage of IBM InterConnect 2017, thanks for watching.

live from las vegas it's the cube covering knowledge 60 brought to you by service now here your host dave vellante and Jeff Frick we're back Jeff Frick and I are pleased to be wrapping up day one for us for the cube at knowledge 16s a plastic piece no service house big events been a long day okay farriers texted me from SA and looks like they had a good event down there as well but but we're here at knowledge 16 great day financial analyst meeting yesterday set up the cube had a great kick off today at the the keynotes with Frank's luqman and and company laying out their vision she said robert gates on as a rock star right i saw him at the cio event so service now has a separate cio event within the event and they bring in a lot of speakers and they share you know it's behind closed doors CIOs talking to other CIOs pretty impressive was great walking over with him ten minutes he came on now remember he replaced rumsfeld all right george w bush brought him in asking him to replace rumsfeld it was like it would be like Belichick replacing Parcells right Rumsfeld effusive outgoing controversial hey and then and then and then of course belcheck you know very straight narrow and and that's kind of way Gates is right i mean he was very measured and in yet opinionated met serving eight presidents all of all of which had great sense of humor except to he said right jimmy carter and and richard nixon yeah dark days then take take what you will from that he's head so pretty interesting but so what's your take on day one at knowledge you know kind of following up on some of the stuff that dr. gates talked about it the themes are actually really simple you know and he listed the traits of leadership you know these are not things that you never heard before carrying it with the trust humor and I think the themes here at as service now are very similar Dave and that it's it's about work it's not about records it's you know for time and time again about it's about effective response not necessarily you know building the biggest mode in the security in the security aspect and you know it's the action platformer we get work done so it just seems like this kind of methodical just boom boom boom stick another knitting moving down the road moving down the field as we like to say and continuing just to execute and as they see everything as a service that now that opens up this huge opportunity to go well beyond itsm which is you know consistent with the vision and I don't keep talking about that 2013 interview with rebels our first meeting with him you know to execute on that vision of a platform and now going into shared services which we've heard a lot about you know a little bit into HR a little bit into legal and continuing to move down that path where you know this seems like a good opportunity for a head but they're just executing just keep executing well and I Tom now is the big opportunity facing them and I think it's going to provide a Mick shift to to a new set of products for service now IT operations management they've made some acquisitions they are a service management is now it's got its tentacles everywhere and I mean essentially helping orchestrate chef and puppet if you want they could do the orchestration for you so cloud management is a new area for these guys than this whole notion of inter clouding and managing multiple disparate clouds is something that service now can help attack I mean it's pick a problem that involves a service workflow and service now is going to knock it down how many things in business involve a service workflow it's like everything everything we do everything we touch has a service workflow aspect to it so every project every new initiative every acquisition it's just you know the market opportunities enormous and what service now has done a really good job of doing is taking this little notion of a like the Big Bang IT Service Management he'll help desk changed man and problem management change management etc and exploded that in all different directions into new vectors you mentioned a little bit in hrs I think it's increasingly getting traction in HR legal logistics you're now seeing service now lay out a vision of touching and helping to essentially orchestrate request service requests around the ERP systems around the CRM systems which are systems of record and relatively rigid systems of record right and service now can help orchestrate all the activities around that it's an enormous opportunity so the TAM I pegged the tam in 2014 I wrote an article that John furrier II published on Forbes I pegged the tam at 30 billion at that time and remember when I went through the analysis David floor you help me at ease you know it just feels like it could even be higher and I remember discussing that with David said yeah but 30 billion so huge already and they get this tiny little company and you're on thin ice we better be conservative here and now it's up to 60 billion i think the 60 billion is is understated Jeff well Darryl from from H&R Block in Canada you know they do this annual thing I left I called it a merger acquisition at a divestiture to build the infrastructure to execute the annual tax process for Canada 84,000 tasks everything from painting the building to signage to computers to paper to hiring people firing people i mean how does a lot of different tasks that they now manage with service now I thought that was pretty a fascinating story you were not when we had Lawrence on from from from ey not understand young anymore ey and talked about now they can provide a level of detail in the IT FM the financial management is like what's the cost of an application that no one ever knew before because they never added in the data center cost you know this is just software and maintenance and now people can start making interesting informed decisions about end-of-life enough which has come up in a number of our conversation so that people are turning off other applications and and service now is taking that workload the other thing I wanted to talk about we talked about this at the open but when you and I walked the floor at 22 the ServiceNow 2013 it was struck us that one of the challenges they had is to evolve this ecosystem and in that but by the way they they still have that challenge but they've done a really good job and you've seen one of the things we said is where the real big guys KPMG was here but you know the the Accenture of the world the youngs at the time now they are going all-in so accenture acquires cloud sherpas CSC acquires fruition so those guys like to focus on big opportunities so the only area now the other thing we talked about when we were at the Aria was the down market opportunity you know we said boy wouldn't it be nice if they had a solution for small companies take a put in a page out of the the Salesforce playbook and they've announced offerings there you're not hearing anything about them you know because and I think the reason is at least in part there's so much opportunity in the global 2000 they're really laser focused on that piece we got to do some more digging and find out what's going on there I know initially there was some concerns about sort of the the growth path and but we haven't heard a peep unless I missed it about the down market product the entry-level product guys the guys like us right you know he'd use it I don't know if I have 84,000 tasks to put the cube production together but i could not the few that i was not to have an automated in this system absolutely yeah so and then the other thing Dave which which you know we ettore on talking about the design and and the the watch and the fact that he sits in a room he had a surf shop in the Maldives before he came to work for service now for a couple years and he sits with Fred and so again just this unique culture of having kind of the mad scientist you know elder coder with the the fellow surf shop design guy and to come together and to try things and to come up with the watch and told the story the watch and I had to build credibility over years to try new things to get to the point where you could say hey let's let's talk about the what let's do a watch and is a form factor of the wash and what are the types of notifications and work behavior that we can better represent represent in this form factor and I think it's just you just cannot underestimate the strength of having you know a driven visionary leader that pulls people to him and inspires people which he so clearly does well and he's young at heart I mean a sec i would say i think he was coding in the keynotes today i got we gotta ask him but he comes on you know but they you know you look at this company and there's some folks at this company that been around for a while you know it's not a bunch of kids you know co diem there are right but a lot of the senior leadership team and the technical team the development team have been around the block right this is not their first rodeo and yet they're able to focus on simplicity you know Fred used to talk about the Amazon experience lat you know last year I think it was the uber experience I think I know we're gonna see some more stuff on on Wednesday though the watch still as we scratching my head a little bit but look low when did the Apple watch come out right i mean window if you look at apple's kind of the people at stamp you know this is now kind of a valid new technical assed year right austrian they're already kind of thinking of new ways to use this fourth basket right well so one of the guests said today you know things change so quickly now you know we it's true we used to go to these conferences and you'd be talking about the same cloud narrative two years straight hey right now it's like every six months it's something new every three months it's something new you know whether it's you know the way i OT just exploded on the scene you know hadoop which was so hot now the dupes like passe you know everybody's talking about you know spark and you know other new real-time methods and streaming and and it's just amazing to see the pace of innovation and so servers now seems to be a company that can keep up with that the other thing is i'd look at my notes on is back to your comment about the system integrators you know we had center and see you see both talking about them getting out of the plumbing business and really moving more of their efforts with their clients to the high-value stuff and you think wow that's kind of counterproductive they've made a lot of money on I'm doing heavy lifting infrastructure implementations and integration and all that big nasty stuff even they see the writing on the wall it's better to get behind this transformation the cult of the rotation to the new and to build their practice around helping their customers execute in a cloud enable the world versus necessarily continuing to stitch together infrastructure well I mean I think that's it's important I mean the hallmark of a great company is one that can can navigate through transitions we we've covered EMC for years we've seen their their Executive Joe Tucci talk about the waves I I always believed in the DMC strategy for example was was the right one but it could not navigate those waves all right it's been a lot of great companies the digital is the primes the way thanks you know and so we'll see if well I mean guys like the service companies tend to be able to make those transitions all right because they they do you know eat from the trough so to speak right right hey they wait until there's a lot of food and then they go in and and pig out and I do a really good job of it and they're doing it now so that tells you there's food so that's a huge sign a confirmation about this ecosystem so all right anyway a big another big day tomorrow start off with the keynotes at eight a.m. pacific time and and then we start up i think at nine thirty again right correct we start at nine thirty and again we've got a great selection of service now executives of course but more importantly what we look forward to really is the customers and and again as we've said a number of times one of the reasons why this is one of our favorite shows is because we get to talk to practitioners we get to talk to people that are executing that are in the trenches that are transforming their own companies in this competitive world and they happen to be using service now as part of that strategy and there's a lot of them here so we will be extracting the signal from the noise as we do with the cube thanks for watching everybody this is a wrap day one we're here at servicenow knowledge 2016 at the mandalay bay we'll see you tomorrow service management