>>mhm. >>Good morning. Live from Las Vegas. That snowflake Summit 22. Lisa Martin With Day Volonte David's Great. We have three wall to wall days of coverage at Snowflake Summit 22 this year. >>Yeah, it's all about data and bringing data to applications. And we've got some big announcements coming this week. Super exciting >>collaboration around data. We are excited to welcome our first two guests before the keynote. We have seen Nielsen in S V. P of data and Analytics Service offering head at emphasis. And Chris Dignan alumni is back with us to chief revenue officer at stuff like guys. Great to have you on the programme. Thanks for having us. Thank you very much. So he'll tell us what's going on with emphasis and snowflake and the partnership. Give us all that good stuff. >>Yeah, No, I think with the convergence of, uh, data digital and computing economy, um, you know that convergence is creating so much possibilities for for customers, uh, snowflake and emphases working together to help our customers realise the vision and these possibilities that are getting driven. We share a very strategic partnership where we are thinking ahead for our customers in terms of what, uh, we can do together in order to build solutions in order to bring out the expertise that is needed for such transformations and also influencing the thinking, Um, and the and the point of view in the market together so that, you know there is there is cohesive approach to doing this transformation and getting to those business outcomes. So it's a It's a partnership that's very successful and its strategic for for our customers, and we continue to invest for the market. >>Got some great customer. Some of my favourite CVS, Nike, William Sanoma. Gotta love that one. Chris talked to us about the snowflake data cloud. What makes it so unique and compelling in the market? >>Well, I think our customers, really they are going through digital transformation today, and they're moving from on premise to the cloud and historically speaking, there just hasn't been the right tool set to help them do that. I think snowflake brings to the table an opportunity for them to take all of their data and take it and and allow it to go from one cloud to the other so they can sit on a W s it can sit on Azure can sit on G, C, P and I can move around from cloud to cloud, and they can do analytics on top of that. >>So data has been traditionally really hard. And we saw that in the big data movement. But we learned a lot. Uh, and AI has been, you know, challenging. So what are you seeing with with customers? What are they struggling with? And how are you guys helping them? >>Yeah. So if you look at the customer journey, they have invested in a number of technologies in the past and are now at a juncture where they need to transform that landscape. They have the challenges of legacy debt that they need to, you know, get rid of or transform. They have the challenges of really bringing, you know, a cohesive understanding within the enterprise as to what these possibilities are for their business. Given the strategy that they are pursuing, um, business and I t cycles are not necessarily aligned. Um, you have the challenge of very fragmented data landscape that they have created over a period of time. How do you, you know, put all these together and work with a specific outcome in mind so that you're not doing transformation for the purpose of transformation. But to be able to actually drive new business models, new data driven products and services ability for you to collaborate with your partners and create unique competitive advantage in the market. And how do you bring those purposes together with the transformation that that's really happening? And and that's where you know our our customers, um, you know, grapple with the challenges of bringing it together. So, >>Chris, how do you see? Because it was talking about, uh, legacy that I think technical debt. Um, you kind of started out making the data warehouse easier. Then this data cloud thing comes out. You're like, Oh, that's an interesting vision and all of a sudden it's way more than vision. You get this huge ecosystem you're extending, we're gonna hear the announcements this morning. We won't. We won't spill the beans, but but really expanding the data cloud. So it's hard to keep up with with where you're at. So I think modernisation, right? So how do you think about modernisation? How are your customers thinking about it? And what's the scope of Snowflake. >>Well, you know, I think historically, you asked about AI and Ml and, you know, in the A I world historically, they've lacked data, and I think because we're the data cloud, we're bringing data, you know, and making it available and democratising it for everybody. And then, you know, partners like emphasis are actually helping us bring, you know, applications and new business models to to the table to our customers and their innovating on top of the data that we already have in the Snowflake Data Club. >>Chris, can you talk about some of the verticals where you guys are successful with emphasis that the three that I mentioned are retailers, But I know that finance, healthcare and life sciences are are huge for smooth, like talk to me, give us a perspective of the verticals that are coming to you. Guys saying help us out with transport. >>You know, I'll give you just an example. So So in the in the retail space, for example, Kraft Heinz is a is a joint customer of ours. And, you know, they've been all in on on snowflakes, Data Cloud and one of our big customers as well it is is Albertsons, and Albertans realises, Oh my gosh, I have all this information around the consumer in in the grocery stores and Kraft Heinz. They want access to that, and they actually can make supply chain decisions a lot faster if they have access to it. So with snowflakes data sharing, we can actually allow them to share data. Albertans share data directly with Kraft, Heinz and Kraft. Heinz can actually make supply chain decisions in real time so that these are some of the stuff that emphasis and stuff like help our customers self. >>So traditionally, the data pipeline goes through some very highly specialised individuals, whether the data engineer, the data scientists and data analyst. So that example that you just gave our organisation you mentioned before democratisation. So democratisation needs to be as a businessperson, I actually can get access to the data. So in that example that you gave between Kraft, Heinz and and and Albertson, is it the the highly hyper specialised teams sharing that data? Or is it actually extending into the line of business focus? >>That's so that's the interesting part for us is I think, snowflake, we just recently reorganise my sales team this year into verticals, and the reason we did that is customers no longer want to talk to us about speeds and feeds of how fast my database goes. They want to actually talk about business outcomes. How do I solve for demand forecasting? How do I supply fix my supply chain issues? Those are things. Those are the. That's how we're aligning with emphasis. So well is they've been doing this for a long time, Can only we haven't. And so we need their help on getting us to the next level of of the sales motion and talking to our customers on solving these business challenges in >>terms of that next level. So no question for you. Where are the customer conversations happening? At what level? I mean, we've seen such dramatic changes in the market in the last couple of years. Now we're dealing with inflation rising interest rates. Ukraine. Are you seeing the conversations in terms of building data platforms rising up the C suite? As every company recognises, we're going to be a data company. We're not gonna be a business. >>Absolutely. And I think all the macroeconomic forces that you talked about that's working on the enterprises globally is actually leading them to think about how to future proof their business models. Right? And there are tonnes of learning that they've hired in the last two or three years and digitising in embracing more digital models. The conversation with the customers have really pivoted towards business outcome. It is a C suite conversation. It is no longer just an incremental change for the for the companies they recognise. That data has been touted as a strategic asset for a long time, but I think it's taking a purpose and a meaning as to what it does for for the customers, the conversations are around industry verticals. You know, what are the specific challenges and opportunities that the the enterprises have, uh, and how you realise those and these cuts across multiple different layers. You know, we're talking about how your democratised data, which in our point of view, is absolute, must in terms of putting a foundation that doesn't take super specialised people to be able to run every operation and every bit of data that you process we have invested in building autonomous data and a state that can process data as it comes in without any manual intervention and take it all the way to consumption but also investing in those industry solutions. Along with snowflake, we launched the healthcare and life Sciences solution. We launched the only channel for retail and CPG. And these are great examples of how Snowflake Foundation enables democratisation on one side but also help solve business problems. In fact, with Snowflake, we have a very, uh, special partnership because our point of view on data economy is about how you connect with the network partners externally, and snowflake brings native capabilities. On this, we leverage that to Dr Exchanges for our customers and one of the services company in the recycling business. Uh, we're actually building and in exchange, which will allow the data points from multiple different sources and partners to come together. So they have a better understanding of their customers, their operations, the field operations and things >>like building a data ecosystem. Yes. Alright, They they Is it a two sided market place where you guys are observers and providing the the technology and the process, you know, guidance. What's your role in that? >>Yeah. So, um, we were seeing their revolution coming? Uh, two stages. Maybe even more. Um, customers are comfortable building an ecosystem. That's kind of private for them. Which means that they know who they are sharing data with. They know what the data is getting used for. And how do you really put governance on this? So that on one side you can trust it on the other side. There is a good use of that data, Uh, and not, uh, you know, compromise on their quality or privacy and some of the other regulations. But we do see this opening up to the two sided market places as well. Uh, some of the industry's lend themselves extremely well for that kind of play. We have seen that happening in trading area. We've seen that happen. And, uh, you know, the credit checks and things like that which are usually open for, you know, those kind of ecosystem. But the conversations and the and the programmes are really leading towards towards that in the market. >>You know, Lisa, one of things I wrote about this weekend is I was decided to come to stuff like summit and and see one of the, you know, thesis I have is that we're going to move not just beyond analytics, including analytics, but also building data products that can be monetised and and I'm hoping we're going to see some of that here. Are you seeing that Christian in the customer? It's It's >>a great question, David. So So we have You know, I just thought of it as as he was talking about. We have a customer who's a very large customer of ours who's in the financial services space, and they handle roughly 40% of the credit card transactions that happen in the US and they're coming to us and saying they want to go from zero in data business today to a $2 billion business over the next five years, and they're leaning on us to help them do that. And one of the things that's exciting for me is they're coming to us not saying Hey, how do you do it? You know, they're saying, Hey, we want to build a consumption model on top of snowflake and we want to use you as the delivery mechanism and the billing mechanism to help us actually monetise that data. So yes, the answer is. You know, I I used to sell to, you know, chief Data Officers and and see IOS. Now I'm talking to VPs of sales and I'm talking to chief operating officers and I'm talking to CEOs about how do we actually create a new revenue stream? And that's just I mean, it's exhilarating to have those conversations. That's >>data products. They don't have to worry about the infrastructure that comes from the cloud. They don't have to worry about the governance, as Senior was saying, Just put >>it in stuff like Just >>put stuff like that. So I call it The super cloud is kind of a, you know, a funny little tongue in cheek. But it's happening. It's this layer. It's not just multiple clouds. You see a lot of your critical competitors adjacent competitors saying, Hey, we're now running in in Google or we're running in Azure. We've been running on AWS. This is different. This is different, isn't it? It's a cloud that floats above the The infrastructure of the hyper scale is, and that's that's a new era. I think >>it's a new error. I think they're you know, I think the hyper scholars want to, you know, keep us as a as a data warehouse and and we're not. The customers are not letting them so So I think that's you know where emphasis kind of saw the light early on. And they were our innovation partner of the year, uh, this past year and they're helping us in our customers innovate, >>but you're uniquely qualified to do that where? I don't think it's the hyper scholars agenda. At least I never say never with the hyper scale is, but yeah, they have focused on providing infrastructure. And, yeah, they have databases and other tools. But that that cross cloud that continuum to your point, talking to VPs of sales and how do you generate revenue? That maybe, is a conversation that they have, but not explicitly as to how to actually do it in a data >>cloud. That's right. I mean, those and those are the Those are the fun conversations because you're you're saying, Hey, we can actually create a new revenue stream. And how can we actually help you solve our joint customers problems? So, yes, it is. Well, >>that's competitive differentiation for businesses. I mean, this is, as I mentioned Every company has to be a data company. If they're not, they're probably not going to be around much longer. They've got to be able to to leverage a data platform like snowflake, to find insights, be able to act on them and create value new services, new products to stay competitive, to stay ahead of the competition. That's no longer nice to have >>100%. I mean, I think they're they're all scared. I mean, you know, like if you look in the financial services space, they look at some of the fintech, as you know, the giant £800 gorillas look at the small fintech has huge threats to the business, and they're coming to us and say, How can we innovate our business now? And they're looking at us as the the innovator, and they're looking at emphasis to help them do that. So I think these are These are incredible times. >>So the narrative on Wall Street, of course, this past earnings season was consumption and who has best visibility and and they they were able to snowflake had a couple of large customers dial down consumption, some consumer facing. Here's the thing. If you're selling a data product for more than it costs you to make. If you dial down consumption in the future, you're gonna dial down revenue. So that's it's going to become less and less discretionary over time. And that, to me, is the next error. That's really exciting. >>The key, The key there is understanding the unit of measure. I think that's the number. One question that we get from customers is what is the unit of measure that we care about, that we want to monetise because to your point, it costs you more to make the product. You're not going to sell it right? And so I think that those are the things that the energy that we're spending with customers today is advising them, jointly advising them on how to actually monetise the specific, you know, unit of measure that they care >>about because when they get the Amazon bill or the snowflake bill, the CFO starts knocking the door. The answer has to be well, look at all the revenue that we generated and all the operating profit and the free cash flow that we drove, and then it's like, Oh, I get it. Keep doing it well, if I'm >>if I'm going on sales calls with the VP of sales and his their sales team, fantastic, right generated helping them generate revenue, right? That's a great conversation >>dynamic. And I think the adoption is really driven through the value, uh, that they can drive in their ecosystem. Their products are similar to products and services that these companies sell. And if you're embedding data inside Syria into your products services, that makes you that much more competitive in the market and drive value for your stakeholders. And that's essentially the future business model that we're talking about. On one side, the other one is the agility. Things aren't remaining constant, they are constantly changing, and we talked about some of those forces earlier. All of this is changing. The landscape is changing the the needs in the economy and things like that, and how you adapt to those kind of models in the future and pivoted on data capabilities that lets you identify new opportunities and and create new value. >>Speaking of creating new value last question guys, before we wrap, what's the go to market approach here between the two companies working customers go to get engaged. I imagine both sides. >>Yeah. I mean, the way that partnership looks good to me is is sell with co selling. So So I think, you know, we look at developing joint solutions with emphasis. They've done a wonderful job of leading into our partnership. So, you know, Sue Neill and I have a regular cadence where we talked every quarter, and our sales teams and our partner teams are are all leaning in and co selling. I don't know if you >>have Absolutely, um, you know, we we proactively identify, you know, the opportunities for our customers. And we work together at all levels within, you know, between the two companies to be able to bring a cohesive solution and a proposition for the customers. Really help them understand how to, you know, what is it that they can, um, get to and how you get that journey actually executed. And it's a partnership that works very seamlessly through that entire process, not just upstream when we're selling, but also downstream and we're executing. And we've had tremendous success together and look forward to more. >>Congratulations on that success, guys. Thank you so much for coming on talking about new possibilities with data and AI and sharing some of the impact that the technologies are making. We appreciate your insights. >>Thank you. Thank >>you. Thank you So much >>for our guests and a Volonte. I'm Lisa Martin. You're watching the Cube live in Las Vegas from Snowflake Summit 22 back after the keynote with more breaking news. Mhm, mhm.

>>thank you. I'm very happy to be here. It's no surprise that Kevin, 19, has changed every business, but how it's changed Business is very strong, Matic Lee, according to the company. Fortunately, we are seeing some interesting themes and some interesting opportunities that really spend across companies. So today's session we're going to talk to three different companies that have had three different experiences and look at what some of the opportunities, challenges and consistencies across these companies are. And I'm thrilled to be here today with three amazing presenters that have very different stories about how they embraced >>the >>challenges that covered 19 created and turned it into opportunity to get started. I'd like to introduce Dr Albert Chan. He is the vice president and chief of digital patient experience at Sutter Health. Following Dr Chan, we have Sean Flaherty, who is the head of technical services, the Kraft Heinz Company, and rounding out our Panelists. Today we have Jennifer Brent, the director, business operations and strategic planning for global real estate at H P E. Thank you everybody, for sharing your time and attention with us today. Let's jump right in now. As I said, we are seeing a great deal of change and opportunity. So I'm gonna ask you to the Panelists to talk a little bit about what the organization is and some of the challenges that they have experienced over the course of 2020. Dr. Shen, let's start with you. Could you please introduce us to Sutter Health and the challenges you faced over the course of 2020? >>Thank you, Mayor Bell. It's great to join everyone. Uh, center Health is a integrated delivery network in Northern California. We serve over 100 diverse communities with 14,000 clinicians and 53,000 employees. Um, and it's a great opportunity to serve our community. Thank you. >>Perfect. Uh, Dr Chen, that was great intro. Sean, could you pick up and tell us a little bit about what's going on at Kraft Heinz and what you've experienced? >>Uh huh. I'm Sean flirty, and I'm currently the head of technical services. I previously was the head of manufacturing for Oscar Mar. I've been with Kraft Heinz for over 30 plus years, working across the supply chain both internationally and domestically. Kraft Heinz is 150 years old. We make some of the most beloved products consumed by all of our employees. And we have made some major big brands. We have craft. We have pines. We have Oscar Mayer planters, bagel bites or write a classical Who laid Philadelphia? Jeff Maxwell house. That's just to name a few little my current role. I'm in charge of technical services, I said, which includes engineering, maintenance, capital spend transformational manufacturing, maintenance and all the productivity pipeline that goes with >>certainly a very wide purview for a big product line. Uh, Gen Brent H P E. Tell us a little bit about what you were doing. >>Thank you, Maribel. Appreciate it. So hopefully everyone is familiar with Hewlett Packard. Enterprise are our main mission is really to advance the way that people live and work through technology. Um, and one of the ways that I'm supporting the company, I work for the global real estate organization. Um, global real estate is is obviously a sort of a key area of focus for everyone. Um, thes days, you know, given the cove in 19 impacts that you're speaking to, Maribel. Um, HP has over 200 sites globally. We operate in over 50 countries. Um, with an employee base of over 65,000. So what we're really focused on right now in real estate is how do we sort of take what's happening right now with Cove in 19. How do we advance? You know, the way that our employees or team members live and work? How do we sort of capitalize on this particular situation and think about what the future of work looks like And how we start to design for and deliver that now? Um, so that's really what what me and the team are focused on. >>Great. So I'm gonna pick up with Dr Chan because, you know, it is covered. 19. And there's been a lot going on in the health care industry. Clearly, um, you know, in your case, could you talk a little bit about what happened when cove it hit? What kind of plans did you have to develop? Because it really wasn't businesses usual. >>Thank you, Maribel. Yes, and indeed you're right. It's a business. Not usual. But frankly, it's something in healthcare. We've always had the face. Whether regards the fires or other disasters, thistle is a unique time for us to being involved in the most intimate parts of people's lives, and this is no different. Um, let me let me harking back to a story. Actually, I think, which illustrate the point. Eso I was in clinic in late February and saw two patients who drove straight from the airport to my clinic. They had respiratory symptoms. Their daughter was concerned about their health and I got advanced warning. I've been reading about this thing called Cove in, and so I had to wear a mask gown, face shield, you name it. And I realized then and there that we had a unique challenge that was confronting us here instead of health. Which is how do we protect the patients and our inclinations as well. So, um, during the week of my birthday, actually, we, um, marshals up a group of people over 200 folks, many of whom I've never met to this day actually came together and designed a telehealth strategy to rapidly respond to covet. We took we typically, we one of things we were doing is telemedicine. And prior to covet, we had 20 video visits per day on average, and after co vid 19, we saw up to 7000 video visits per day. So the rapper was tremendous and it was over. We were essentially given this challenge over a four week period instead of a two year roadmap, which is what our initial intent waas. We trained over 4700 questions to deliver care virtually to meet the challenge, >>that it's simply amazing and shows the power of both the will of individuals and technology coming together to make amazing things happen. And I imagine, Sean, um, in your case, you probably had, well, different something similar in the sense that it's food manufacturing. It's not something that can easily be done remotely. Can you tell us a little bit about what you been experiencing during coded 19? >>Yes, eso. As you said, manufacturing is not something that's not very easily remote. And so we had to quickly address the pandemic and make sure that our operation could stay intact and make our employees feel safe and healthy and make sure that that happens. I mean, across our manufacturing facilities we have put in, um, we require face mask. We require health check assessments. We require a temperature check before anybody enters our facilities. We put digital signage across the facility to encourage social distancing. We've taken our break rooms and redid those so that there's, uh, social distance inside with plexiglass. We staggered are break hours or lunch hours so that people don't congratulate inside there. And then we also have mailed newsletters to ever employees home in both English and Spanish to promote yourself social distancing and wearing face masks outside of work so that they could protect their communities and their families. We've limited visits to a plant to one person per week, and that person can only go to a plant once a week we've done came meeting. We've done team meetings inside of our plants to promote social distancing. We've done lots of activities inside of a manufacturing, please sure that our people are safe and then they go home the same when they came and we don't have any transmission of the virus inside of our facility. >>I think this is so critical because you want people to be able to go to work, to feel safe. And, you know, our food supply chain depends on that. So really excited with the work that you've been doing and very happy that you were able to do it. Jen, I know that HP has manufacturing, but I would like to talk about something slightly different with you because I think you have a mixture of employees. So you're in real estate. How are you thinking differently about what to do with the employees? And you know, some people are calling this a hybrid work concept. What has been your experience with coded 19 and a global workforce? >>Absolutely, Maribel. Thank you. So you're absolutely right. We've got a blend in terms of our workforce. We have your sort of knowledge based workers, Aziz. Well, as you know, manufacturing based workers and also essential support. I t support workers. Um, and those latter two categories have continued to use their offices as part of the essential workforce throughout Cove in 19. And so we've implemented very similar sort of safety measures. Social distancing, you know, PP use Onda like, but as we're thinking about what the future of work looks like and really wanting thio leverage all spaces and and sort of re conceptualize or reimagined, as many people are saying, the future of office, um, we're thinking a bit more broadly. And so as a company, we are in the midst of a of a strategy transformation to become the edge of cloud platform as a service company that is the leader in the industry. Uh, similarly, we wanted to think about our strategy in terms of our workplace in a similar way. And so we're framing it as the edge toe office experience, where by the edge, we mean anything, really, that is outside of the office. So that might be your home office. That might be a customer site. That might be, you know, working on the train on your way to the office for a cafe s. So we're really trying to think of the workplaces everywhere. And how do we really design for that? How do we design for a flow, Um, of a workforce that's really moving and working in a space that at that particular time or moment or day best suits their their work. So we're really tackling this in terms of four key areas. Right now we're looking at what is that experience at the edge? What do we need to make people feel comfortable for people to feel safe and connected How are we then? Adapting our office is how are we pivoting those so that they are they really sort of foster used by a much more fluid workforce on, but they're really fostering collaboration and social and connection. Um, then we're looking at the digital experience being that sort of bridge between spaces on dat sort of equalizer, where everyone has a really similar kind of experience, has the ability to engage on. But it's that piece, really that is so core to our culture and ensuring that we continue tohave that really strong cultural element that is core core to HP. And I'm sure, um, to set our health into Kraft Heinz as well on dfo finally really the mindset because I think any time you move into something like hybrid and you have some people that aren't in your physical proximity, how you engage with them is incredibly important on DSO. I think what's what's most exciting? Really, for us is a technology company is the sort of the key, the key part or or piece that technology plays in that where you know, in the in the past, workplace technology and some of these other pieces collaboration technology may have been seen as more of a nice tohave, whereas now it's really an imperative. Um uh, in our view, for, you know, to really support the future workplace. >>I know when we were just talking with Sean, it sounded like there was quite a bit of communications and collaborations that had to happen with the employee based to make sure that they were up to speed on all the changes that were happening in terms of what their work environment, where was going to be on how it will change going forward. Um, now, on Albert side, this also makes me think that, you know, we talked about this tremendous amount of visits that you started doing with telehealth. Can you talk a little bit about the changes of how that might have changed, what the worker environment was like because I went from seeing a lot of patients in person to doing a lot of telehealth Any other changes that you had to associate with this coded 19 shift? >>Well, thank you very well. I think the biggest change is really our belief in what we could get done. So in other words, there's a there's There's always a fundamental belief of what you can achieve, and we've pushed the limits and we keep pushing it. And and really, it's been quite gratifying, actually, to see our our employees, our staff are clinicians. We had to step up to this challenge and feel empowered to do so. So we're we're seeing new models of care we're seeing, for example, patients. I, for example, I diagnosed a hernia. Believe it or not, be a video, which is I leave the graphical images side for a second. Uh, it was an incredible, credible feet and and I thought I never thought my career that I would be able to do this. But certainly you can, um, and this thing you can attitudes really changed our culture. So, as I mentioned earlier, we really marching up about 200 staff members to come together, many of whom we've never worked together. Frankly, to pull this challenge off, we change our training methodology. We, for example, instead of doing in class classroom training, we essentially held five sessions per day for four weeks straight so that we could accommodate the doctor's schedules and get people ready for telemedicine for example, one of the things we needed to do was get equipment out to our doctors. So we provisioned centrally and in a social distance. Safe manner. Um, several 1004. 4000 plus ipads, for example. So we could deploy them. So consider them centrally, deploy them locally to all our clinicians so they could connect to their patients. And the impact was felt almost immediately. We had stories from physicians who said, Hey, um, I had a family, for example, who was really concerned about their baby, and I diagnosed a neurologic disorder via video, for example, Um, in fact, one of our doctors was quoted as saying, You know, this is this is life has changed so much from Kobe 19, where we're seeing this differentiation between B C before coronavirus and a C after coronavirus and care will never be the same again. So it's an incredible transformation. >>I'm excited for the transformation that we've had because I think it'll bring care Teoh a lot more people more seamlessly, which I think is fabulous now. Yeah, Sean, we talked a little bit about what's going on in your manufacturing environment in terms of adding things like social distancing and other protocols. Were there any other manufacturing changes that happened as a result of that or any other challenges that this new environment created? >>Yes. So assed people started to eat more at home. We had to change our whole manufacturing network as, uh, retool because we service restaurants on the go and those two segments started to drop off. People started buying more of their trusted brands that they are used to. And so we had the retool across our manufacturing network in order to make more products that people wanted. That was in high demand. We increased our capacity across many of our segments. We focused on sanitation to production processes, were still ensuring the highest quality of products concert on lean flow and made flow management inside the facilities. We have put challenge all of our operational assumptions and make sure that we get the most out put that we can during this time. I mean, some of the I think there's four key things that we've learned during this. It's our our speed, agility, our death ability, and I read repeatability, and those four things have come to better ways of what better ways of working increase efficiency, greater flexibility and better focus on what the customer really wants. >>It's actually tremendous to think that you can change a manufacturing line like that that you could be that that responsive to shifts in demand. And I think that that that whole concept we've talked about business agility. If you look at it in health care, if you look at it, um, in a mixed blended environment, like what's going on at HP or if you look at it and manufacturing, we've always discussed it, but we we didn't necessarily have that huge imperative and push to get it done as fast as we've done this time. So it's It's wonderful to see that with the right vision and the right technology, you can actually policing together quite quickly and continue to evolve and adapt them as you see different changes in the marketplace. Jenna I wanted to circle back for a minute because you were talking a little bit about this edged office initiative, and how do you think that changes the employee experience? >>Yeah, it's a good question. I mean, I think it changes it in many ways. In many ways, we're gonna We're gonna hold on. Thio, you know, are are sort of primary core beliefs and behaviors Onda way that we operate a love, you know, the example of sort of the the art of the possible. I mean, one of our sort of call core called cultural beliefs are is is the power of yes, we can, um and I think that this what's been so fascinating and heartening about, you know, this context and the previous two examples is people are just surprised at what they've been able to do about, you know, whether that is, you know, entirely changing in manufacturing line. Whether that is, you know, taking an entire patient diagnosis kind of service entirely digital. I think that people are really becoming exposed far more than they have been in the past, to the truly to the power of technology and what we can dio Onda from an employee engagement perspective. You know, HP, as much as we've had a a pretty flexible way of working where, you know, in the past we've had people working from home. Certainly the core of our culture has always been site based. And I think what's been what you know, what we've sort of been shown through the past sort of 67 months is how much connection you could really establish virtually. You know, it may never be ah, wholesale replacement for what you're able to do in person. Um, but the kind of community feelings that were able thio develop, I think the personal connections and we're letting people into our lives a bit more than we would have. Um, otherwise, but we're really seeing a lot of adaptation. Ah, lot of, you know, efficiency gains from certain people. I think a lot of folks had preconceived ideas about not being productive at home. And I think that, you know, barring some of the sort of unique circumstances of cove it I think that's really been flipped on its head s. So I think, you know, from an engagement perspective, productivity, efficiency. Um, I think, you know, very similar to the prior two examples. What we're seeing is, you know, rethinking the way that we all work and being more sort of fluid. Relying more on technology is actually showing us that we can do things differently. Um, and in a way that actually allows people toe work a lot more flexibly in ways that that suit their own personal style without necessarily, you know, seeing any kind of negative impact on on output but actually in the reverse, you know, really seeing an accelerated positive impact. >>Wonderful. So to close out, I like each of you to tell me, what's the number one thing you've learned in the last nine months of this experience? And how do you think you can use that learning going forward? Perhaps we could start this time with Sean. Yes. So I think >>the one thing that we've learned and we started the journey was really created a culture of we versus by and the and the other thing that I think has really been important during this is management style of leadership style. I think I have had to change my leadership style from one of a servant leader because we're not in the plants now to be able to mentor coach people ends on I wonder what I'm going to call attentional leadership tension leadership. To me visibility. You still got to be seen. You still gotta be able to do things. So you got to use teams you got these virtual facetime Got to do something to make people feel engaged. You have to build trust. And remember, this has gone on for nine months. It's gonna go continue to go on a lot of the people you've never really met person yet. You have to have clarity. I think before we set goals at 123 years. Now it's 30 60 90 days because the environment keeps changing around us so fast. Diversity. You have to be very intentional about being reversed and who you slept on. Your team exclusivity. People still want to see you still want to hear you and they still want to be seen. And they still wanna hurt courage. It's x courage to speak up. It takes courage to create clarity. It takes courage to create a diverse team. It takes courage to create to lead in these chaotic times. So that's really the kind of the biggest takeaways that I've had a broken. >>Thank you, Jennifer. You wanna add anything to that? >>I love everything that Sean just said, Um, and in so many ways, it mirrors all of our key themes that we're thinking about in terms of um, you know, the goodness that we want to take from the past few months, um, and and really apply to our go forward strategy or even emphasize e guess the one the one that I would add, I think it it's probably like encompasses so much of that is really just having a bold, you know, the sort of power and believing in bold moves. So I think what's been so exciting is that we had this really quite bold idea moving Teoh. You know, the future is a hybrid, um, from a workplace strategy perspective and really seeing that embraced, um, and being pretty early on in terms of a company that was developing that strategy. And now seeing that you know, ah, lot of are are sort of competitors or peers or coming out with very similar vision statements, um, I think that that's really been a key learning. And that's been something that's, you know, that's cultural to HP. But really, the power of that kind of vision is, you know, having a sort of bold idea and going for >>it. Awesome. How about you, Albert? How >>do I beat these two? This is amazing. Um I think for me it's really an affirmation. So if I think about health care, we have this unique responsibility and opportunity privilege, if you will, to being involved in the most intimate times of patients. Lives and I have been so hardened by the commitment of our teams of our clinicians to be approachable, reachable even in this face, the pandemic and all these things we're all concerned about each and every day that we're committed to our patients. And, uh, and evidence of that. For example, Alcide, our net promoter score for video are Net net promoter score videos 82 which is on par for our in person clinical care and that that, to me reaffirms the power of relationships to connect to people and to care for people when they need us to care for them to empower them and whether it be the pace of change which we've adapted so quickly, or, um or just our ability to can do, you know we'll do, Um, it's really an affirmation that we were committed to helping people in their daily lives, and it's just an affirmation of the power of people in relationships. So, um, it's been really hardening time for all of us. >>Thank you all for such compelling and inspiring stories. I'm sure the audience will take away many tips and tricks on how to turn challenges into opportunities and strategic advantage moving forward, and now I'm going to turn it back to the Cube for the rest of the show.

>>live from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I. F s. >>Welcome back to I f s world Everybody, This is David Dante with Paul Dillon and you're watching the Cube, The leader in live tech coverage. Where here from? From the Heinz Auditorium. Nick Ward is here. He's the head of OM Digital Solutions for Rolls Royce and Scott Helmer, president of the F S aerospace and defense. Gentlemen, welcome to the Cube. Thanks for coming on. Thank you. Scott. I want to start with you. We heard a lot about digital transformation. You guys are in the heart of that. Ah, defense. Aerospace is one of those industries that hasn't been dramatically disrupted. Like publishing. Are you seeing taxis? It's a It's a high risk business. It's one that's highly in trench, but it's not safe from disruption. What are the major trends that you're seeing in your space and paint a picture for us? If you would, >>uh, that's a very good question. You're right. The same level of disruption related digital transformation has not yet common aerospace. Defense is that has come to some of the other league leading industries. But this is a whether it's land based operations, naval operations or aircraft operations. This is an asset intensive industry. It's characterized by a very connected network of organizations. Be the manufacturer's operators, subsystem, part suppliers or just maintainers. They stay connected throughout the asset life cycle in its entirety. I f F f s has a portfolio capability. There's four purpose underpinning the critical business processes of those organizations that enables us to be the digital thread to continue the connection of those organizations throughout that outs of life cycle, if you will, that sees this fall come to come to be at the heart of asset lifecycle Management on provides us with the opportunity to inform information insights for our customers. Like return on experience data on aircraft engines where an old GM like Rolls Royce, for example, can harvest that data to analyze the performance of those assets and ultimately optimized thereafter after service offerings. >>Who are the customers? I mean, there's a limited number of companies that make aircraft engines so you don't have a huge domain been numbers of those kinds of companies. But are the customers channel their partners the supply chain network >>Well, the ecosystem is actually large and extensive. They're very recognizable names, and it's certainly an industry that's characterized by significant growth. On the commercial side. Amaro continue is in the midst of a boom and is likely to continue to grow, are expected to continue to grow for at least another decorate decade. And on the defense side, we see military budgets continue or increasingly moving towards sustainment and serve it ization on a performance basis. So the number of organizations that are participating in that value chain whether they're just the upstream, only am so I should just upstream. But the Austrian Williams participate in the design and development are moving into the aftermarket sustainment and service support parts and subsystem supply, or ultimately, third part repair organizations. It's actually quite an extensive network participating in that asset life cycle. >>So, Nick, you know people here Rolls Royce, they think you know the iconic brand. We're gonna talk about cars, talk about your role at Rolls Royce and what's going on in your business. >>So my role I lead our product management function looking are digitally enabled. Service's so for 20 years we've been running a service we call total care. Total care is like a fixed dollar rate. Every time an aircraft flies, we paid a dollar rate for it. Flying. What's really great about that is we're incentivizing. No, I am exactly the same way that airline isn't said device. Keep the aircraft flying. It owns revenue for the airline. It owns revenue for us on that revolutionized relationship between oh am on operator. So within my role, it's about taking four division we call The Intelligent Engine. Intelligent Engine is recognizing the way that digital is starting to pervade the way we think about service is so we've talked about physical engine, big rotating piece of metal that people see service. Is that wrap around that on the digital brain that sits behind all of those sources? That's what we call the intelligent engine. >>Yes, so people sometimes think the mission critic critical piece of air travel is the reservation system. It's not. It's the thinness of the engines available that was lost in critical system, right? You mean like it? If you don't get your reservation Oh, well, somebody else will get it. Not not the end of the world But for the maintenance piece, that's all right. >>Job. You know, our fundamental mission is every rose was powered. Aircraft flies on time every time. All right, there's no disruption. There's no delay that works for the operator, for the airlines are owner of the aircraft. It works for us. And this is why the confluence of our incentives comes together and it really works well. >>So what role has technology played in terms of evolving that that experience? I mean, I'm sure, you know, years ago, it used to be a lot of tribal knowledge. Gut feel. Joe the mechanic really knew his stuff. Etcetera, etcetera, Powers. Technology evolved and changed your your business. >>So you had to go back to the business model, right? So technology should follow. The business model business model is fundamental risk transfer. So we take the risk off cost, fluctuation, availability, whatever it is away from the airline and we take it on to us is the Obama's Rolls Royce said the money's at risk. You gotta get really good forecasting. Four. Custom becomes your core skill almost because you've got to understand all the risk drivers understand how to optimize him, understand out of work around that in order to have a successful business. And you can't forecast without data without digital twins without all I ot and cloud and all the while the enablers allow you to sort of new to new generations of capability. >>So you're forecasting what probability of, ah, component failure, the life of ah, failure. How long it takes to bring stuff back on sure >>cost really on three different levels. So we do an engine forecast which is looking at the health of the life of the components in the engine, looking for any reasons why the engine might be forced off the wing. We're looking at a fleet level. So we're looking at all of the things that might affect the global fleet in terms of maintenance demands need for overhaul of those such things. And we forecast that out after 30 years, really accurately, as an engine leaves the factory, we know pretty much within 90 something percent everything that engine is going to require from the maintenance 20 to 30 years and then a network level. We're forecasting the capacity demand that we then need to meet within our maintenance shops globally. >>Well, He's obviously Paul. Been progress, right? We used to fly with very common four engine plains across the pond right now. Two engines. In fact, you don't want to fly in the four engine to engine more reliable. >>You've You've been a Rolls Royce for over 15 years. What have you seen as a result of all this technology is predicted maintenance technology. What impact is that? Had on equipment of reliability on life cycle on fuel efficiency. >>Huge, huge. I think if you don't have the data and you don't have the digital twin kind of capability behind you, you have to treat every engine like it's the worst engine in the fleet because you don't have the data tell you it isn't right. So everything is treated extremely extreme conservatism. If you have the data and you have the models and you have everything else around you, you treat engines, individuals. They have individual histories, individual configuration, individual experiences. Because of individuals. You tailor your maintenance intervention to keep that engine flying as long as you can on, you don't have to be his conservative. You can weed that conservatism out of the process, and that means it stays on wing 40 50% longer. It's flying for the airline that much longer. Revenues. Passengers are flying. There's less disruption. >>So what do you What do you do with my f s? What's the what's >>So Because we created this intelligent engine kind of next generation leap forward in that capability, we need data. So we have, ah, program we call the Blue Data Threat. The blue data traded in a global initiative that we're rolling through all of our 200 plus airline customers. How do we form a win win transaction with the airlines? Give us better data will make smarter decisions. You'll see less disruption, more availability. We'll share our data. Back with you is an operator. So this is a very simple, very nice cashless transactions. So with my intern X, because we share a number of customers, Scott has got a number of airline customers. Big airline customers were operating the maintenance system. What way do together? Is reform a plug in? It's like for us. We can go to an airline, and we can say you have total care inside to borrow an intel phrase. So he complied into the rosary service is seamlessly automated. The data can flow very little burden or effort on to the I t group of the outline. The data flows into our organization. We do what we do when we can push our date again back into the airline systems with updated form, their availability >>so key to that key to that value, Jane is obviously that common customer base. But critical to the work that Rolls Royce stuns does is the accuracy and reliability of the data They get to inform their own performance analysis and maintenance, availability information and the eye if it's made installed. Base leverage is a very rich data from the return on experience of the engine utilization that Nick and is able to use this part of the Blue data threat offering back to their customers. And together we're able to deliver unprecedented levels of value to airline customers and optimizing the availability of their assets. >>Nick, have you? Are you finding new ways to monetize this data beyond just improving the customer experience, a bond with your customers or their new revenue avenues >>for you? So I think within this is absolutely key that everybody within this transaction recognizes this is this is not a revenue opportunity for Rosa. This is a cashless transactions because there's a lot of sensitivity that data belongs to the airline, right? So you have to be very clear and open. That data is driving Rolls Royce to make internal improvements, so we will save a little bit on our bottom line of delivering the service's they've already bought in order to get better. Outcomes of those service is so It's a little early for the service. You were thinking about >>this a little bit like security. In that sense, you know of bad guys are trying to get there. So So the good guys to share data. It's a cashless transaction, and everybody we >>believe is a market collaboration on data is got to be the way Ford's >>Scott could. You double click on the Ecosystem and A and D, obviously different from the sort of core traditional you know, e r. P world. The importance of the ecosystem may be what it looks like, described the >>That's an insightful question, Dave, certainly the partner ecosystem in inner space and defense is somewhat differentiated. I don't want to go so far as to say that it's unique, but it's somewhat differentiated from Corey RPS. As you duly noted partner, our four persecuted for four purpose capability around the critical process is for manufacturers. Maintainers on, uh, parts and subsystem supply organizations is all the potential, and it's a promise. But that value can only be realized to the collaboration with partners who doom or an aerospace and defense and just support delivery and implementation capability. They provide value added service is around business process, reengineering, change, enablement as well as their partners and co innovation as well. Certainly the collaboration we have with Rolls Royce is certainly a new level of collaboration around innovation that hasn't been seen before. So those partners are critical to our ability to deliver that value to our customers. Secondarily, we have our partners are actually a route to market in the traditional sense of referral system like you would see in Corriere P. But more importantly, as an indirect route to market as channels to their end customers, almost I s v ng. Our capability to support the delivery of service is to their customers. >>So it's the it's the manufacturers of the Plains, For example, it's the airlines themselves. It's manufactured the engine defectors, >>the maintainers. So the M R organizations that do the work around repair, and it's the entire ecosystem of organizations to support the supply chain. Our partners are both in themselves as well as partners in delivering the capability to those organizing. >>And it's a data pipeline throughout that value chain a digital thread that you guys actually have visibility on, correct your value. Add to the and >>we have the opportunity to play a vital role between within that equal system in allowing and enabling the connective ity of that network between Williams and their customers between the operators and their maintainers. For example, we've got a collaboration with an airline right now where we're going to connect them directly with the third party organizations that they rely on for airframe repair. For example, >>I want to ask you about the aerospace business it used to be that used to be a very small market in terms of the number of customers. Now we've got Space X. We've got the private areas, three private aerospace companies. We've got different countries now. India, China getting involved. What impact is that having on your business. >>Certainly we're seeing the emergence of spatial program's playing a taking up a larger share of off of government or public sector budgets. And people are beginning to think about how to leverage or harvest the value from utilization of spatial assets and again are enabling capability. To be a collector of that data and supply it back as an information in sight to those were reliant on the data that is collected is a vital role that we play in that ecosystem. >>So when I was when you were describing the ecosystem value chain, it strikes me that there's there's clearly a whole lot of metrics going on. Are there new levers, new metrics, emerging new levers that you can pull to really drive a flywheel effect in the industry? One of the key key performance indicators that you're really trying to optimize visiting? This is >>Certainly this is certainly an industry that characterizes as an intensive, complex mobile and in this case complex in mobile or a pseudonym for very expensive assets. So everything around availability, reliability are all key drivers are performance indicators of our customers ability to realise the value from those assets and our role in that is to provide them with the information inside to be able to make optimal decisions to maximize that availability. >>Anything you dad, >>I think in this day and age things like technical dispatcher alive. Relative engines is so high, high 99 sort of percentage. You have to start focusing on things like the maintenance costs to achieve that. Driving your maintenance costs down, but still retaining your really high availability. That becomes a really interesting balance. You could have under percent of relevancy. What it's gonna cost a fortune. You don't want that. >>Well, gentlemen, thanks so much for coming on. The cute, really fascinating discussion. Thank you. Great to have you. All right, you're welcome. And keep it right there, buddy. Paul Gill on day Volante from I F s World in Boston. You're watching the Cube right back Right after this short break

>>from Boston, Massachusetts. It's the Q covering I. F s World Conference 2019. Brought to you by I F s. Hi, buddy. Welcome to Boston. You're watching the cubes coverage of I s s World in the Heinz Auditorium in Boston. I'm Day Volonte with my co host, Paul Gill and Paul. This is the the largest enterprise resource planning software company that our audience probably has never heard of. This is our second year covering I f s World. Last year was in Atlanta. They moved to Boston. I f s is a Swedish based company. They do about $600 million in annual revenue, about 3700 employees. And interestingly, they have a development center in Sri Lanka, of all places. Which is kind of was war torn for the last 15 years or so, but nonetheless, evidently, a lot of talent and beautiful views, but so welcome. >>Thank you, Dave. I have to admit, before our coverage last year, I had never even heard of this company been around this industry for more than 30 years. Never heard of this company. They've got 10,000 customers. They've got a full house next door in the keynote and very enthusiastic group. This is a focus company. It's a company that has a lot of ah ah, vision about where wants to go some impressive vision documents and really a company that I think it's coming out of the shadows in the U. S. And it will be a force to be reckoned with. >>So I should say they were founded in the in the mid 19 eighties, and then it kind of re architected their whole platform around Client server. You remember the component move? It was a sort of big trends in the in the nineties. In the mid nineties opened up offices in the United States. We're gonna talk to the head of North America later, and that's one of the big growth areas that growing at about three. They claim to be growing at three x the overall market rate, which is a good benchmark. They're really their focus is really three areas e r. P asset management software and field service management, and they talk about deep functionality. So, for instance, they compete with Oracle ASAP. Certainly Microsoft and in four company we've covered in four talks a lot about the last mile functionality. That's not terminology that I f s uses, but they do similar types of things. I'll give you some examples because, okay, what's last mile? Functionality? Things like, um, detailed invoicing integration, contract management. Very narrow search results on things like I just want to search for a refurbished parts so they have functionality to allow you to do that. Chain. A custom e custody chain of custody for handling dangerous toxic chemicals. Certain modules to handle FDA compliance. A real kind of nitty gritty stuff to help companies avoid custom modifications in certain industries. Energy, construction, aerospace and defense is a big area for that. For them, a CZ well as manufacturing, >>there's a segment of the e r P market that often is under uh is under seeing. There's a lot of these companies that started out in niches Peoples off being a famous example, starting out on a niche of the market and then growing into other areas. And this company continues to be very focused even after 35 years, as you mentioned, just energy aerospace, a few construction, a few basic industries that they serve serve them at a very deep level focused on the mid market primarily, but they have a new positioning this year. They're calling the challengers for the challengers, which I like. It's a it's a message that I think resonates. It's easy to understand there position their customers is being the companies that are going to challenge the big guys in their industries and this time of digital transformation and disruption. You know, that's what it's all about. I think it's a great message of bringing out this year. >>Of course I like it because the Cube is a challenger, right? Okay, even though we're number one of the segments that we cover, we started out as a sort of a challenger. Interestingly, I f s and the gardener Magic Corners actually, leader and Field Service Management. They made an acquisition that they announced today of a company called Asked. He asked, U S he is a pink sheet OTC company. I mean, they're very small is a tuck in acquisition that maybe they had a They had a sub $20 million market cap. They probably do 25 $30 million in revenue. Um, Darren rules. The CEO said that this place is them is the leader in field service management, which is interesting. We're gonna ask him about that to your other point. You look around the ecosystem here that they have 400 partners. I was surprised last night. I came early to sort of walk around the hall floor. You see large companies here like Accenture. Um and I'm surprised. I mean, I remember the early days when we did the service. Now conferences 2013 or so you didn't see accent. You're Delloye E Y p W c. Now you see them at the service now event here that you see them? I mean, and I talked to essential last night. They said, Yeah, well, we actually do a lot of business in Europe, particularly in the Scandinavian region, and we want to grow the business in the U. S. >>Europe tends to be kind of a blind spot for us cos they don't see the size of the European market, all the activities where some of the great e. R. P. Innovation has come out of Europe. This company, as you mentioned growing three times the rate of the market, they have a ah focus on your very tight with those customers that they serve and they understand them very well. And this is a you can see why it's centuries is is serving this market because, you know they're simply following the money. There's only so much growth left in the S a P market in the Oracle market. But as the CEO Darren said this morning, Ah, half of their revenues last year were from net new customers. So that's that's a great metric. That indicates that there's a lot of new business for these partners to pursue. >>Well, I think there's there's some fatigue, obviously, for big, long multi year s AP integrations, you're also seeing, you know, at the macro we work with Enterprise Technology Research and we have access to their data set. One of the things that we're seeing is a slowdown in the macro. Clearly, buyers are planning to spend less on I T in the second half of 2019 than they did in the first half of 2019 and they expect to spend less in Q four than they expected to in July. So things are clearly softening at the macro level. They're reverting back to pre 2018 levels but it's not falling off a cliff. One of the things that I've talked to e t. R about the premise we put forth love to get your thoughts is essentially we started digital transformation projects, Let's say in earnest in 2016 2017 doing a lot of pilots started kind of pre production in 2018. And during that time, what people were doing is they were had a lot of redundancy. They would maintain the legacy systems and they were experimenting with disruptive technologies. You saw, obviously a lot of you. I path a lot of snowflake and other sort of disruptive technology. Certainly an infrastructure. Pure storage was the beneficiary of that. So you had this sort of dual strategy. We had redundancy of legacy systems, and then the new stuff. What's happening now is, is the theory is that we're going into production. Would digital transformation projects and where were killing the legacy stuff? Okay, we're ready to cut over >>to a new land on that anymore, >>right? We're not going to spend them anymore. Dial that down. Number one. Number two is we're not just gonna spray and pray on all new tech Blockchain a i rp et cetera. We're gonna now focus on those areas that we think are going to drive business value. So both the incumbents and the disruptors are getting somewhat affected by that. That slowdown in that narrowing of the focused. And so I think that's really what's happening. And we're gonna, I think, have to absorb that for a year or so before we start to see new wave of spending. >>There's been a lot of spending on I t over the last three years. As you say, driven by this need, this transition that's going on now we're being going to see some of those legacy systems turned off. The more important thing I have to look at, I think the overall spending is where is that money being spent is being spent on on servers or is it being spent on cloud service is, and I think you would see a fairly dramatic shift going on. They're so the overall, the macro. I think it's still healthy for I t. There's still a lot of spending going on, but it's shifting to a new area there. They're killing off some of that redundancy. >>Well, the TR data shows couple things. There's no question that server and storage spending is has been declining and attenuating for a number of quarters now. And there's been a shift going on from that. Core infrastructure, obviously, into Cloud Cloud continues its steady march in terms of taking over market share. Other areas of bright spots security is clearly one. You're seeing a lot of spending in an analytics, especially new analytics. I mentioned Snowflake before we're disrupting kind of terror Data's traditional legacy enterprise data warehouse market. The R P. A market is also very hot. You AI path is a company that continues to extend beyond its its peers, although I have to say automation anywhere looks very strong. Blue Prison looks very strong. Cloudera interestingly used to be the darling is hitting sort of all time lows in the E. T R database, which is, by the way, that one of the best data sets I've ever seen on on spending enterprise software is actually still pretty strong. Particularly, uh, you know, workday look strong. Sales force still looks pretty strong. Splunk Because of the security uplift, it still looks pretty strong. I have a lot of data on I f s Like you said, they don't really show up in the e t R survey base. Um, but I would expect, with kind of growth, we're seeing $600 million. Company hopes to be a $1,000,000,000 by 2022 2021. I would think they're going to start showing up in the spending >>service well again in Europe. They may be They may be more dominant player than we see in the US. As I said, I really had not even heard of the company before last year, which was surprising for a company with 10,000 customers. Again, they're focused on the mid market in the mid market tends to fly a bit under the radar. Everyone thinks about what's happening in the enterprise is a huge opportunity out there. Many more mid market companies and there are enterprises. And that's a that's been historically a fertile ground for e. R. P. Companies to launch. You know J. D. Edwards came out of the mid market thes are companies that may end up being acquired by the Giants, but they build up a very healthy base of customers, sort of under the radar. >>Well, the other point I wanted to make I kind of started to about the digital transformation is, as they say, people are getting sort of sick of the big, long, ASAP complicated implementations. As small companies become midsize companies and larger midsize companies, they they look toward an enterprise resource planning, type of, of platform. And they're probably saying, All right, wait. I've got some choices here. I could go with an an I F. S, you know, or maybe another alternative. T s a p. You know, A S A P is maybe maybe the safe bet. Although, you know, it looks like i f s is got when you look around at the customers, they have has some real traction, obviously a lot of references, no question about it. One of things they've been digging for saw this gardener doing them for a P I integrations. Well, they've announced some major AP I integrations. We're gonna talk to them about that and poke it that a little bit and see if that will So to solve that criticism, that what Gardner calls caution, you know, let's see how real that is in talking to some of the customers will be talkinto the executives on members of the ecosystem. And obviously Paul and I will be giving our analysis as well. Final thoughts >>here. Just the challenge, I think, is you note for these midmarket focus Cos. Has been growing with their customers. And that's why you see of Lawson's in the JD Edwards of the World. Many of these these mid market companies eventually are acquired by the big E R P vendors. The customers eventually, if they grow, have to go through this transition. If they're going to go to Enterprise. The R P you know, they're forced into a couple of big choices. The opportunity and the challenge for F s is, can they grow those customers as they move into enterprise grade size? Can they grow them with with E. I. F s product line without having them forcing them to transition to something bigger? >>So a lot of here a lot of action here in Boston, we heard from several outside speakers. There was Linda Hill from Harvard. They had a digital transformation CEO panel, the CEO of soo say who will be on later uh PTC, a Conway, former PeopleSoft CEO was on there. And then, of course, Tony Hawk, which was a lot of fun, obviously a challenger. All right, so keep it right there, buddy. You're watching the Cube live from I F s World Conference at the Heinz in Boston right back, right after this short break.

>> Hello everyone, I'm John Furrier cohost, founder Silicon Angle media, we are here in our Palo Alto studios for cube conversation with your Juergen  Linder, who's the senior vice president of Oracle SaaS. You're getting great. Great to see you again. Thanks for coming in. Appreciate, uh, the time senior vice president of ERP, SaaS, you handling all the business aspects of the Oracle cloud is correct. And you'll lots happening. What's the big, the big story right now? >> Well, here at OpenWorld, it's, it's a little bit of a kid in a candy to your point, I do think it's fantastic that we can store. I mean, showcase our innovation capacity. What we have really done and you're going to see most of those announcements are around how we pervasively infuse emerging technology into our product lines. So not just a sidecar concept, but productizing out use cases where customers can reap an immediate business benefit as of day one. So allow me maybe to plow through some of those. There is a lot of it, um, what's happening and one of the big ones is certainly around cloud ERP. If it's a huge investment for us, we'd like to think it's the most strategic SaaS investment you will ever do. From that perspective. We're very committed to make sure that the emerging technology is applied for business impact. What I mean with that is take examples such as, um, intelligent payments. So imagine you have a cash surplus all of a sudden, which is a great position to be in, but two, how do you allocate it to strategically cultivate supplier relationships based off in the moment data based on machine learning suggestions. Think about the change that we're seeing out there in terms of business models. I mean product as a service is a completely different model in which our companies need to operate. So this entire motion of shipping transactionally into going into a service provider model is huge for a lot of companies and oftentimes they have multiple business models to cater to. So big announcement, this open world is subscription management, which is a unique offering where we have really plowed together the combined strengths of our customer experience cloud to handle seamlessly the customer facing interactions. So sales, service, marketing type of pieces. But teamed up with our ERP offering to really have all of the billing, the renewal cycles, the um, revenue recognition seamlessly solved in one offering. So big announcement for us. >> So on the subscription management is that for the ERP years at Oracle Cross, all oracle portfolio products are specifically ERP. >> It's both actually, it's, it spans the customer experience piece, but it's also natively embedded into the Oracle ERP cloud to have it a seamless experience because we don't think that you can solve subscription management in isolation. Oftentimes you feel vendors who does it on the customer experience side, but then you'd still need to have the backend features to make sure that you can deliver on the promise that you do understand the customer intimately, that you could do effective up cross sell and handle the renewal cycles. Constantly tap into the customer sentiment to see if they're happy and just see them grow. So we'd like to think it's really a combined effort between what we have as customer experience and the ERP side >> I mean, this brings up a great point because I think you're hitting on the major trend that's happening around Oracle open world, certainly in the industry right now that is integrating a lot of different functions. I mean ERP, they want knows ERP was lifted the days that's really critical software and it powers the business. It's not going anywhere. What people are concerned about, how do I extend the capability of the data that I have? Yes, and cross connected so that it's seamless, so I want to just go a little slow on the subscriber management thing. So what you're saying is you upgraded subscriber management so that the customer can manage their piece of their business without mangling or changing or tweaking any of are taking me through that. I was at. How are they rolled that out? What's the use case of that >> I think this is important to hit on the key point which is data mean. specifically? They give an example. What Oracle always has been synonymous with is owning, managing and securing the world's data. We'd like to live on that heritage for a while because we think it's fundamentally differentiating. If you want to bring those emerging technologies to life for outcomes, um, since we're covering all lines of businesses in the cloud and are ready to go today, it brings us into a very unique position to really stitch together data points very elegantly across a unified data platform, right? Where data travel seamlessly. Because if you think about a subscription business, there's so many aspects that goes into that. Think about conducting, collecting sensory data based on Iot. >> A lot of databases are out there and you have multiple databases you're hitting. >> Oh absolutely. So we want to make sure that obviously any data that we're collecting about the usage of a given product allows us to find tune the business model for subscription. If we have the customer or if the company made a decision to go into a subscription model, it's huge from a revenue recognition perspective, how do you report that out? It has to do with how do you service the customer constantly predict and anticipate the very next move four up and cross selling type of mechanism. So it's a big movement. >> Customer intimacy used to be a cx problem, now it's an integrated data problem and it's interesting because, you know when I broke into the business when I was graduated from college, the word data processing was a department when you guys were in the database business mean data processing now is a core competency that's not limited to one siloed system or one abstract system like an ERP or cx. It's managed to everything. So you have to do data processing because that's the value. So if, if that's the case and more data is coming to the marketplace, you need machine learning, you need to have the tools. So I gotta ask you Oracle Open world, you guys are doing some announcements around Ai. What's the impact to ai particular or using or managing whether it's symbolic systems, which is a little bit different in ai reasoning. Is is a thing processing and reasoning around the data now you need ai for that. So what are you guys announcing around ERP, oracle cloud and ai? >> So it's fundamentally that, to your point, I had the pleasure of implementing ERP system at customer side on the sis side. I had problems or challenges in my business career to bring them to life on the software development side, but fundamentals have stayed the same. You need to have data consistency and as a complete view of the business. Now, to your point, I'd like to think that machine learning and emerging technologies at large provide a new canvas on how you can create and look at every single business process as we know it so you see us talk about it because I'm all about intelligent process automation in the ERP context. What that means is if you take a typical company, about 85 percent is spent on keeping the lights on, closing the books, doing all of the in hyphened, mundane but necessary stuff, and 15 to 20 percent is typically dedicated towards innovation of new business model. Serving customers with new business model or just being the change agent that typically the finance function wants to be. I mean, there's a reason, for example, why Kraft Heinz had a cfo or has still has a CSR, was 29 years old. They're not hired necessarily for the seniority they hired for the change ability. >> The culture change is both business culture and there's also tech culture that culture cloud, native agile data at the center of the value proposition. Now culturals is about expectations I I need it relevant. I mean it's a commitment problem to needed. I need it fast. solve too as well on both business skills gap and also technical. >> I mean to your  point, I mean kid in a candy store is like the the best way I can describe it. I think every single business process and in the nineties we had this big theme of business process reengineering. You know that I'd like it comes back on steroids right now because you can simply look at every single business process once again and see where the human element and the machine or a robotic element can simply provide superior outcomes. Think about use cases of detecting fraudulent spend more easily like machines are simply better at that. We have to admit that if we can liberate the human potential at large and tap into the ingenuity by liberating them from the mundane and shifted you towards value at, that's huge. So our commitment of infusing machine learning and ai constantly in every single business process and learning from your decision like John, if you have the same workflow and you approved it 99 times, the system should start taking a hint. It doesn't mean hard coding and rewiring the work flow. The system automatically should learn from your behavior. So this is what we talk about, intelligent process automation. It also extends into what we call intelligent process performance management where our entERPrise performance management cloud is very sophisticated and analytical capabilities, but now it's taking it to the next level of prediction, learning, anticipating, constantly and suggesting actionable results. So a lot of things and chatbots for expenses is the entire communication with the system. It's just branded in a way where I say, when is the last time you had an intelligent conversation with your ERP system? A lot of people would say never. >> Well, I think people would love to get more value out of the data. And certainly the work that ERP systems have done as foundational mechanisms or plumbing or infrastructure and software is critical. Data's in there, right? So, yes. But the interesting topic that's becoming apparent and Oracle, you've, you guys lived this and you know at, uh, your other career at sap client server had a great growth when heterogeneous network started to appear, correct? So heterogeneous is a word that's not just a customer problem, it's an oracle opportunity as well because you have to be heterogeneous in an mov yourself. >> Absolutely. >> Then that's the data is the bridge of your internal system. So it's not just here's your oracle, between all of that. So now you have heterogenaity around all go buy some European, deploy it in the customer's heterogeneous environment. You gotta have a heterogeneous integration than Oracle into a cloud environment for the customer, makes it more complex, but the data becomes the key asset. >> Data is the key asset. And this is why we took decisive steps about a decade ago to really rewrite from scratch for the cloud. So we're really not trying to get away with hosting or legacy into the cloud because I think it's a fundamentally flawed strategy, right? So we also learned from what I call typical SaaS, one point old patterns where certain vendors tackled one business problem in isolation, but then it's upon the customer once again to stitch it painfully together with all of the risk it has like security risks, um, data silos that you so desperately trying to run away from comeback on steroids in the age of multicloud. Right? So it's oftentimes what we're seeing is that tactical cloud adoption, our customer and prospect conversations give way to more strategic longevity type of SaaSs consideration. And this is where we think we have a great story to tell by having everything in the cloud. Every line of business re architected for the cloud, but then of course the entire stack So of course we want to make sure that everything that comes out of Oracle depth to support it. works best stitched together. But by all means, it's really that we acknowledged that customers have heterogeneous environments that were open to connect, extend any type of starting point a customer might have. >> So one of the things I've been impressed with Oracle and the previous announcements is your affinity towards some of the emerging tech you guys aren't afraid to, to run at a new environment. And Larry Ellis was classical old with Larry. We'll wait until he sees clear And because you got a big business, you've got zillions of customers, visibility that he'll run hard at it and it's been fun to watch. uh, and you're modernizing and real time. But the big change that's on the market is the blockchain. You guys got some announcements happening around here at Oracle Open? Correct. And you made an announcement earlier what new things are coming out with blockchain because blockchain actually is a database model. It's a little bit decentralized, but it has great use cases, low hanging use case, independent of all the hype and uncertainty around cryptocurrency. But certainly blockchain is an enabling. Technology will impact your world. What new things you announcing here? >> For me, that's likely the most fundamentally disruptive technology heading our way. To your point, still a little bit at the infancy compared to other emerging technologies, but the profoundness of change with this new trust fabric is just massive for every single business process as we know it. Um, so when we discussed with customers, it's really that we try to give our customers a headstart for immediate business impact, meaning we're shipping applications, productized use cases. So the announcements this week are really around intelligent track and trace, making sure that any given point in time, you know exactly where in the supply chain you're product is, what are the handover points all documented seamlessly. You see an announcement around what we call the intelligent cold chain, big topic for some pharmaceutical companies, for example, or food and beverage, right? To have refrigerated products where you need to prove that they never surpassed the temperature threshold. For example, in the supply chain document that via supplied via block chain, we have, um, what we call warranty and usage as a use case. Just simplifying the settlements, the claim processes for any type of things here. So we have multiple more that are in the labs right now. Take an hcm use case, for example, where everyone of us had some educational experience, right? And we want to make sure that the hiring process becomes as if, uh, did you go to the school, you said you went, you know, your supply chain, you know, your journey in life as a, as a value chain. I mean the first universities are actually posting the certificates, unblocked chain so that you have this immutable record and the entire vetting of credentials in the hiring process, which is so cost intensive time intensive could be shaved off seeming as >> One of the things I'm personally passionate about and then release our video businesses that one of the big problems that's going to becoming great fast as deep face tampering with video. One of the things that we're thinking about it, how to put our videos on the blockchain to look at whether it's been tampered or not. Absolutely. Because you know, you can take this video. Could you say something that because this big, this legit problem was verified. So again, this is a verification about it and people want to know, did the produce come from that? Certain lawyers production, certainly manufacturing operations is Qa issues. This is real. These are real world examples. This is not like some pie in the sky hyped up. Tulip craze >> Funny you mentioned that we actually have an innovation panel on Tuesday afternoon where we have, for example, one of the largest food manufacturers in the world building on our blockchain cloud services. Those types of use cases and just amazing what we're seeing in terms of the impact emerging technologies can have and quite frankly business impact we're going to see out of that. >> I think I personally think, and I'd love to get your reaction to this because it's something that we talk a lot on the cube allowed in is good feedback on is that you're going to have to explain yourself and have verification because there's a lot of black box processes that have to be an unexposed because people want to know the transparency of how things move through the system. Whether it's, whether it's fruit, whether it's videos, whether it's someone's resume or credentials, reputation. These are new ways that needs to be explained by algorithms. Yes, so now the black box is going to be opened up. This is an opportunity. It's a threat to a lot of people, so you're on. Do you agree with that idea that there'll be soon things will be explained and be able to be inspected eventually. >> Transparency is huge and as to your point, I don't think you can hide a lot of things going forward anymore, so everything becomes more transparent, but with enabling technology such as blockchain for example, they also become immutable into dispute to your ability to to, to, to, to alter the information flow becomes less so. It's both. I'm very enlightening in terms of having transparency, speeding up business processes and to your point also understanding the origin where something originated. We have a lot lineage, for example, as another blockchain applicant. Live lineage, you mean like production lots, production loads, for example in provenance, right? To really understand the genealogy example that understand the genealogy as to where, for example, certain parts of your supply chain really come from. Do they come from countries for example, where you shouldn't be doing business So it's all those types of things where you can always prove like maybe the with? Right. >> Chinese put a chip on a board and puts it in Amazon Apple Data Center. That's a supply chain concern. But I totally wouldn't you love to know where that motherboard is. I mean, this is, these are real world examples. If it went through to press the last couple of weeks, it definitely is. It's a real. Aws and apple have vehemently denied, strenuously objected to the claim. I refuted. I would, I checked it out, I think with the Bloomberg story wrong, but we know that there is hacking going But again, this is an example of, on, no doubt. as things are moving around a lot, whether their workloads are manufacturing, this is a data problem. >> It all comes down to data. I mean data is the ultimate weapon in this age where they were in right now, um, and the company that can help you best to have as much data meaning first party generated data, but then also complement that with, for example, Oracle data cloud, right? Really Privacy compliant. Third Party data points to have this contextual demographic, Geo geolocation type of context to really delight customer experience and compliment your own insight is massive and we'd like to think we have a great story to tell not only being to manage this data but also to Securitas data because data security is massive. I mean I have been a personal victim of the equifax hack, so since then I take it very much seriously. >> I mean not take credit card fraud on that. >> You had been to be honest, I mean like impact was less than I'd expected it, but it's still scary to see as to how fast your privacy can be compromised. Right? So you definitely want to make sure that be hacked and some advice we you want to be hacked. Just tell people you own a lot of big coin. You'll be hacking in a heartbeat. But this is the culture. Let's get back down to this core issue because Larry Ellison said a couple open oracle liberals will go, that security should be always on. Yes. And this is a fundamental concern. So you know, as you guys look at bringing this customer experience together, bringing the unity of the data together. Um, I mean there's a lot of oracle products out there. You got, you got ERP and hcm, you've got cx data, cloud, all these things are out there, right? So bottom line, that's SaaS cloud for Oracle. What is the, what's the mission, and simplify it for us. What if I'm a customer? I got a lot of Oracle, I have some oracle, maybe I want more or less or I don't And what's the value proposition for oracle cloud's SaaS solutions? know. Bottom line. >> In a nutshell, it's about future proofing the business of our customers. I'd like to think that cloud is in hyphened the inevitable destination for us to serve the customers and our prospect base at large to help them just be ahead of the curve in either driving innovation, taking advantage of data points to turn it into a competitive advantage and having this quick ability on a quarterly basis to surface as innovation, but don't leave the customer alone with standalone innovation platforms. Sidecar concepts by making sure we have a holistic architectural approach to surface in the context of the business when you need it and making sure. So for us it's really the fundamental way how we can better serve our customer base and our prospect base and we'd like to think that the decisiveness of the architecture we have chosen about a decade ago brings us a lot of advantages right now where customers are realizing tactical cloud adoption was trust. One, LOB is short lift potentially, so they're looking at holistic cloud suites and we have everything in the cloud plus we have the architectural depth to really surface and actually tackle any business problem right now, not as a promise and a couple of years and then also keeping a roadmap, making some extensibility. >> Alright. Personal question. You're again. What are you personally excited about right now? Obviously you've seen a lot of ways of innovation with sap. Now you're at Oracle, you've seen the client server wave, you're now on the cloud wave. What are you personally excited about this next modern infrastructure and software environment as it starts to evolve, that big wave is coming? What's most exciting for you? >> For me, it's really the possibility to re think about every single business process as we know it. It's so fundamental, those technologies, machine learning, constantly learning from your decision that the experience at large, how you interact with a system. We're so conditioned in consumer life that you ask a question, you get this instant gratification of a response. This is exactly the type of experience we're going to see an entERPrise systems as well. So I do think the demographics, the requirements into an ERP system, an entERPrise system at large have changed and we're excited about the ability to serve that up now on a quarterly basis with speed and also customer responds of course, right? Because SaaS for us as a fantastic opportunity to get instant feedback, we can do ab testing, we can immediately see as the, what's used, what's not used. Right? So for us as a vendor, I think we have to be on our toes because I mean there's no hiding in SaaS, right? I mean either you deliver or your don't. Yeah, it's incident. Um, so there's a lag time of shipping info, innovation, safeguarding our customers, and I think we have a great story to tell for customers who have invested with us already in the past with on premise investments, how we can shepherd them into the cloud era at the most predictable type of timeframe caused everything. You mentioned one word which was key unity, which is one of the announcement I forgot to tell customer experience, unity in the past. I think what we have seen on the customer experience side is oftentimes that vendors have taken an approach where you had sales service, marketing, commerce, oftentimes siloed cx. Unity is really our fundamental commitment to making sure that the data management of every single dynamic touchpoints we have with a customer is constantly live up to. But do your point. I think oracle has a fantastic set of cards to deal with customers to help them in any starting point of their journey right now. Not In the future, no re architecture needed. We can take that right out to them. >> I think Oracle is a great opportunity with the data play. I'll see databases, not a foreign concept, the word database, um, data processing, real time. I mean, I think the integration, you guys have a good opportunity and great to great to see you and thanks for spending a QP, appreciate anything, keep conversations. You're lending there. Who's the senior vice president? Oracle SaaS cloud here in the studio, Palo Alto. A lot going on around Oracle. OpenWorld happening. I'm John Furrier. Thanks for watching.