(upbeat music) >> Okay, welcome back everyone to the Cube's live coverage in Monaco. I'm John Furrier, host of theCube. Monaco Crypto Summit is the event and there's a big conversation later at the yacht club with Prince Albert and everyone else will be there, and it'll be quite the scene. And Rachel Wolfson is here. She's with Cointelegraph. They're the media partner of the event, the official media partner of the Monaco Crypto Summit. She's also MCing the event on stage, presented by DigitalBits. Rachel, thanks for coming on. >> Thanks for having me, John. >> So I know you're busy, thanks for taking the time cause' you got to go jump back in and moderate, and keep things on track. This isn't an inaugural event. So DigitalBits has exploded on the scene. I just saw a thing on YouTube news around this soccer player in Rome, has DigitalBits logo on their jersey. They're a big to do cause everyone's popular and they got a couple teams. So real world, kind of, assets coming together, what's going on in the event that you're MCing? What's the focus? What's the agenda? What's some of the conversations like? >> Yeah, definitely. Well, it's a great event. It's my first time here in Monaco and I'm loving it. And I think that Monaco is really becoming the next crypto hotspot. Definitely in terms of Metaverse and Web3 innovation, I think that we're going to start seeing a lot of that here. That's what we're seeing today at the Summit. So a lot of the presentations that we're seeing are really focused on Web3 and NFT platforms, so for instance, obviously what DigitalBits is doing. We watched a video before the break on Ecosystem and the Metaverse that people can join and be a part of, in terms of real estate, but we're seeing a lot of innovation here today with that. I moderated a great panel with Britney Kaiser, Lauren Bissell, Taross, I'm blanking on his last name, but it was about blockchain and how governments are implementing blockchain. So that was also really interesting to hear about what the Ukrainian government is doing with blockchain. So there's kind of a mix, but I'd say that the overall theme is Web3 and NFTs. >> Yeah. Britney was mentioning some of that, how they're going to preserve buildings and artifacts, so that in case they're looted or destroyed, they can preserve them. >> Right. I think it's called the Heritage Fund. And I just think it's such an interesting use case in terms of how governments are using blockchain because the best use for blockchain in my opinion, is recording data, and having that data be permanent. And so when we can have artifacts in Ukraine recorded on the blockchain, you know by being scanned, it's really revolutionary. And I think that a lot of governments around the world are going to see that use case and say, "Oh wow, blockchain is a great technology for things like that." >> So DigitalBits had a press conference this morning and they talked about their exchange and some other things. Did you attend that press conference or did you get briefed on that? >> I did not attend the press conference. I was prepping for my MC role. >> So they got this exchange thing and then there's real interest from Prince Albert's foundations to bring this into Monaco. So Monaco's got this vibe, big time. >> Rachel: Right. There's a vibe (John chuckles) >> What does it all mean, when you're putting in your reporting? What do you see happening? >> So, I mean, I honestly haven't covered Monaco actually ever in my reporting. And John, you know I've been reporting since 2017, but the vibe that I'm getting just from this summit today is that Web3 and NFTs are going to be huge here. I'm speaking, I haven't... You know, there's a panel coming up about crypto regulations, and so we're going to talk a little bit about laws being passed here in Monaco in terms of Metaverse and digital identity. So I think that there are a few laws around that here that they're looking at, the government here is looking at to kind of add clarity for those topics. >> I had a couple guests on earlier. We were talking about the old days, a couple years ago. You mentioned 2017, so much has changed. >> Yes. >> You know, we had a up and down. 2018 was a good year, and then it kind of dived back and changed a little bit. Then NFTs brought it back up again, been a great hype cycle, but also movement. What's your take on the real progress that's been made? If you zoom out and look at the landscape, what's happened? >> Right. I mean, well, a lot has happened. When I first entered the space, I initially came in, I was interested in enterprise, blockchain and private networks being utilized by enterprises to record data. And then we saw public blockchains come in, like Ethereum and enterprises using them. And then we saw a mix. And now I feel like we're just seeing public blockchains and there's really... (John chuckles) But there's still our private blockchains. But today, I mean, we've gone from that in 2017 to right now, I think, you know, we're recently seeing a lot of these centralized exchanges kind of collapsing. What we've seen with Celsius, for instance, and people moving their crypto to hardware wallets. I think that the space is really undergoing a lot of transformation. It's really revolutionary, actually, to see the hardware wallet market is growing rapidly, and I think that that's going to continue to grow. I think centralized exchanges are still going to exist in custody crypto for enterprises and institutions, and you know, in individuals as well. But we are seeing a shift from centralized exchanges to hardware wallets. NFTs, although the space is, you know, not as big as it was a year ago, it's still quite relevant. But I think with the way the market is looking today, we're only seeing the top projects kind of lead the way now, versus all of the noise that we were seeing previously. So yeah, I think it's- >> So corrections, basically? >> Right. Exactly. Corrections. And I think it's necessary, right. It's very necessary. >> Yeah. It's interesting. You know, you mentioned the big players you got Bitcoin, Ethereum driving a lot. I remember interviewing the crypto kiddies when they first came out, it was kind of a first gen Ethereum, and then it just exploded from there. And I remember saying to myself, if the NFTs and the decentralized applications can have that scale, but then it felt like, okay, there was a lot of jocking for under the covers, under the hood, so to speak. And now you've got massive presence from all the VCs, and Jason Ho has like another crypto fund. I mean, >> Right. you can't go a day without another big crypto fund from you know, traditional venture capitalists. Meanwhile, you got investors who have made billions on crypto, they're investing. So you kind of got a diversity of investor base going on and different instruments. So the investor community's changing and evolving too. >> Right. >> How do you see that evolving? >> Well, it's a really good point you mentioned. So Cointelegraph research recently released a report showing that Web3 is the most sought after investment sector this year. So it was DeFi before, and Web3 is now leading the way over DeFi. And so we're seeing a lot of these venture capitalist funds as you mentioned, create funds allocated just to Web3 growth. And that's exactly what we're seeing, the vibe I'm getting from the Monaco Crypto Summit here today, this is all about Web3. It's all about NFT, it is all about the Metaverse. You know, this is really revolutionary. So I think we're definitely going to see that trend kind of, you know, conquer all of these other sectors that we're seeing in blockchain right now. >> Has Web3 become the coin term for Metaverse and NFTs? Or is that being globalized as all shifted, decentralized? What's the read on it? It seems to be like, kind of all inclusive but it tends to be more like NFT's the new thing and the young Gen Zs >> Yeah want something different than the Millennials and the Xs and the Boomers, who screwed everything up for everybody. >> Yeah. (John chuckles) No, I mean, it's a great question. So when I think of Web3, I categorize NFTs and the Metaverse in there. Obviously it's just, you know the new form of the internet. It's the way the internet is- >> Never fight fashion, as I always say, right? >> Right. Yeah. Right. (John chuckles) It's just decentralization. The fact that we can live in these virtual worlds and own our own assets through NFT, it's all decentralized. And in my opinion, that all falls under the category of Web3. >> Well, you're doing a great job MCing. Great to have you on theCube. >> Rachel: Thanks. I'd like to ask you a personal question if you don't mind. COVID's impacted us all with no events. When did you get back onto the events circuit? What's on your calendar? What have you been up to? >> Yeah, so gosh, with COVID, I think when COVID, you know, when it was actually really happening, (John chuckles) and it still is happening. But when it was, you know, >> John: Like, when it was >> impacting- shut down mode. >> Right. When we were shut down, there were virtual events. And then, I think it was late last year or early this year when the events started happening again. So most recently I was at NFT NYC. Before that, I was at Consensus, which was huge. >> Was that the one in Austin or Miami? >> In Austin. >> That's right, Austin. >> Right. Were you there? >> No, I missed it. >> Okay. It was a very high level, great event. >> Huge numbers, I heard. >> Yes. Massive turnout. (John chuckles) Tons of speakers. It was really informative. >> It feels like a festival. actually. >> It was. It was just like South by Southwest, except for crypto and blockchain. (John chuckles) And then coming up, gosh, there are a lot of events. I'll be at an event in Miami, it's an NFT event that's in a few months. I know that there's a summit happening, I think in Turkey that I may be at as well. >> You're on the road. You're traveling. You're doing a lot of hopping around. >> Yes I am. And there's a lot of events happening in Europe. I'm US-based, but I'm hoping to spend more time in Europe just so I can go to those events. But there's a lot happening. >> Yeah. Cool. What's the most important story people should be paying attention to in your mind? >> Wow. That's... (Rachel chuckles) That's a big question. It's a good question. I think most, you know, the transition that we're seeing now, so in terms of prices, I think people need to focus less on the price of Bitcoin and Ethereum and more on innovation that's happening. So for instance, Web3 innovation, what we're seeing here today, you know, innovation, isn't about prices, but it's more about like actually now is the time to build. >> Yeah. because the prices are a bit down. >> Yeah. I mean, as, you know, Lewis Hamilton's F1 driver had a quote, you know, "It takes a team. No matter who's in the driver's seat, it's a team." So community, Wayne Gretzky skates where the puck is going to be I think is much more what I'm hearing now, seeing what you're saying is that don't try to count the price trade of Bitcoin. This is an evolution. >> Right. >> And the dots are connecting. >> Exactly. And like I said, now is the time to build. What we're seeing with the project Britney mentioned, putting the heritage, you know, on the blockchain from Ukraine, like, that's a great use case for what we're seeing now. I want to see more of those real world use cases. >> Right. Well, Rachel, thanks for coming on theCube. I really appreciate it. Great to see you. >> Thanks, John. >> And thanks for coming out of your schedule. I know you're busy. >> Thanks. Now you get some lunchtime now and get some break. >> Yeah. Get back on stage. Thanks for coming on. >> Rachel: Thank you. >> All right. We're here at the Monaco Crypto Summit. Rachel's MCing the event as part of the official media partner, Cointelegraph. Rachel Wolfson here on theCube. I'm John Furrier. More coverage coming after this short break. >> Thank you. (upbeat music)

>> Narrator: From theCUBE's studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hello everyone, this is Dave Vellante. Welcome to this CUBE conversation. We got a really cool company that we're going to introduce you to, and Anthony Brooks Williams is here. He's the CEO of that company, HVR. Anthony, good to see you. Thanks for coming on. >> Hey Dave, good to see you again, appreciate it. >> Yeah cheers, so tell us a little bit about HVR. Give us the background of the company, we'll get into a little bit of the history. >> Yeah sure, so at HVR we are changing the way companies routes and access their data. And as we know, data really is the lifeblood of organizations today, and if that stops moving, or stop circulating, well, there's a problem. And people want to make decisions on the freshest data. And so what we do is we move critical business data around these organizations, the most predominant place today is to the cloud, into platforms such as Snowflake, where we've seen massive traction. >> Yeah boy, have we ever. I mean, of course, last week, we saw the Snowflake IPO. The industry is abuzz with that, but so tell us a little bit more about the history of the company. What's the background of you guys? Where did you all come from? >> Sure, the company originated out of the Netherlands, at Amsterdam, founded in 2012, helping solve the issue that customer's was having moving data efficiently at scale across all across a wide area network. And obviously, the cloud is one of those endpoint. And therefore a company, such as the Dutch Postal Service personnel, where today we now move the data to Azure and AWS. But it was really around how you can efficiently move data at scale across these networks. And I have a bit of a background in this, dating back from early 2000s, when I founded a company that did auditing recovery, or SQL Server databases. And we did that through reading the logs. And so then sold that company to Golden Gate, and had that sort of foundation there, in those early days. So, I mean again, Azure haven't been moving data efficiently as we can across these organizations with it, with the key aim of allowing customers to make decisions on the freshest data. Which today's really, table stakes. >> Yeah, so, okay, so we should think about you, as I want to invoke Einstein here, move as much data as you need to, but no more, right? 'Cause it's hard to move data. So your high speeds kind of data mover, efficiency at scale. Is that how we should think about you? >> Absolutely, I mean, at our core, we are CDC trades that capture moving incremental workloads of data, moving the updates across the network, you mean, combined with the distributed architecture that's highly flexible and extensible. And these days, just that one point, customers want to make decisions on us as much as they can get. We have companies that we're doing this for, a large apparel company that's taking some of their not only their core sales data, but some of that IoT data that they get, and sort of blending that together. And given the ability to have a full view of the organization, so they can make better decisions. So it's moving as much data as they can, but also, you need to do that in a very efficient way. >> Yeah, I mean, you mentioned Snowflake, so what I'd like to do is take my old data warehouse, and whatever, let it do what it does, reporting and compliance, stuff like that, but then bring as much data as I need into my Snowflake, or whatever modern cloud database I'm using, and then apply whatever machine intelligence, and really analyze it. So really that is kind of the problem that you're solving, is getting all that data to a place where it actually can be acted on, and turned into insights, is that right? >> Absolutely, I mean, part of what we need to do is there's a whole story around multi-cloud, and that's obviously where Snowflake fit in as well. But from our point of views of supporting over 30 different platforms. I mean data is generated, data is created in a number of different source systems. And so our ability to support each of those in this very efficient way, using these techniques such as CDCs, is going to capture the data at source, and then weaving it together into some consolidated platform where they can do the type of analysis they need to do on that. And obviously, the cloud is the predominant target system of choice with something like a Snowflake there in either these clouds. I mean, we support a number of different technologies in there. But yeah, it's about getting all that data together so they can make decisions on all areas of the business. So I'd love to get into the secret sauce a little bit. I mean we've heard luminaries like Andy Jassie stand up at last year at Reinvent, he talked about Nitro, and the big pipes, and how hard it is to move data at scale. So what's the secret sauce that you guys have that allow you to be so effective at this? >> Absolutely, I mean, it starts with  how you going to acquire data? And you want to do that in the least obtrusive way to the database. So we'll actually go in, and we read the transaction logs of each of these databases. They all generate logs. And we go read the logs systems, all these different source systems, and then put it through our webs and secret sauce, and how we how we move the data, and how we compress that data as well. So, I mean, if you want to move data across a wide area network, I mean, the technique that a few companies use, such as ourselves, is change data capture. And you're moving incremental updates, incremental workloads, the change data across a network. But then combine that with the ability that we have around some of the compression techniques that we use, and, and then just into very distributed architecture, that was one of the things that made me join HVR after my previous experiences, and seeing that how that really fits in today's world of real time and cloud. I mean, those are table stakes things. >> Okay, so it's that change data capture? >> Yeah. >> Now, of course, you've got to initially seed the target. And so you do that, if I understand you use data reduction techniques, so that you're minimizing the amount of data. And then what? Do you use asynchronous methodologies, dial it down, dial it up, off hours, how does that work? >> Absolutely, exactly what you've said they mean. So we're going to we're, initially, there's an initial association, or an initial concept, where you take a copy of all of that data that sits in that source system, and replicating that over to the target system, you turn on that CDC mechanism, which is then weaving that change data. At the same time, you're compressing it, you're encrypting it, you're making sure it's highly secure, and loading that in the most efficient way into their target systems. And so we either do a lot of that, or we also work with, if there's a ETL vendor involved, that's doing some level of transformations, and they take over the transformation capabilities, or loading. We obviously do a fair amount of that ourselves as well. But it depends on what is the architecture that's in there for the customer as well. The key thing is that what we also have is, we have this compare and repair ability that's built into the product. So we will move data across, and we make sure that data that gets moved from A to B is absolutely accurate. I mean people want to know that their data can move faster, they want it to be efficient, but they also want it to be secure. They want to know that they have a peace of mind to make decisions on accurate data. And that's some stuff that we have built into the products as well, supported across all the different platforms as well. So something else that just sets us apart in that as well. >> So I want to understand the business case, if you will. I mean, is it as simple as, "Hey, we can move way more data faster. "We can do it at a lower cost." What's the business case for you guys, and the business impact? >> Absolutely, so I mean, the key thing is the business case is moving that data as efficiently as we can across this, so they can make these decisions. So our biggest online retailer in the US uses us, on the biggest busiest system. They have some standard vendors in there, but they use us, because of the scalability that we can achieve there, of making decisions on their financial data, and all the transactions that happen between the main E-commerce site, and all the third party vendors. That's us moving that data across there as efficiently as they can. And first we look at it as pretty much it's subscription based, and it's all connection based type pricing as well. >> Okay, I want to ask you about pricing. >> Yeah. >> Pricing transparency is a big topic in the industry today, but how do you how do you price? Let's start there. >> Yeah, we charge a simple per connection price. So what are the number of source systems, a connection is a source system or a target system. And we try to very simply, we try and keep it as simple as possible, and charge them on the connections. So they will buy a packet of five connections, they have source systems, two target systems. And it's pretty much as simple as that. >> You mentioned security before. So you're encrypting the data. So your data in motion's encrypted. What else do we need to know about security? >> Yeah, you mean, that we have this concept and how we handle, and we have this wallet concept, and how we integrate with the standard security systems that those customers have already, in the in this architecture. So it's something that we're constantly doing. I mean, there's there's a data encryption at rest. And initially, the whole aim is to make sure that the customer feels safe, that the data that is moving is highly secure. >> Let's talk a little bit about cloud, and maybe the architecture. Are you running in the cloud, are you running on prem, both, across clouds. How does that work? >> Yeah, all of the above. So I mean, what we see today is majority of the data is still generated on prem. And then the majority of the talks we see are in the cloud, and this is not a one time thing, this is continuous. I mean, they've moved their analytical workload into the cloud. You mean they have these large events a few times a year, and they want the ability to scale up and scale down. So we typically see you mean, right now, you need analytics, data warehouses, that type of workload is sitting in the cloud, because of the elasticity, and the scalability, and the reasons the cloud was brought on. So absolutely, we can support the cloud to cloud, we can support on prem to cloud, I think you mean, a lot of companies adopting this hybrid strategy that we've seen certainly for the foreseeable next five years. But yeah, absolutely. The source of target systems considered on prem or in the cloud. >> And where's the point of control? Is it wherever I want it to be? >> Absolutely. >> Is it in one of the clouds on prem? >> Yeah absolutely, you can put that point of control where you want it to be. We have a concept of agents, these agents search on the source and target systems. And then we have the, it's at the edge of your brain, the hub that is controlling what is happening. This data movement that can be sitting with a source system, separately, or on target system. So it's highly extensible and flexible architecture there as well. >> So if something goes wrong, it's the HVR brain that helps me recover, right? And make sure that I don't have all kinds of data corruption. Maybe you could explain that a little bit, what happens when something goes wrong? >> Yeah absolutely, I mean, we have things that are built into the product that help us highlight what has gone wrong, and how we can correct those. And then there's alerts that get sent back to us to the to the end customer. And there's been a whole bunch of training, and stuff that's taken place for then what actions they can take, but there's a lot of it is controlled through HVR core system that handles that. So we are working next step. So as we move as a service into more of an autonomous data integration model ourselves, whichever, a bunch of exciting things coming up, that just takes that off to the next levels. >> Right, well Golden Gate Heritage just sold that to Oracle, they're pretty hardcore about things like recovery. Anthony, how do you think about the market? The total available market? Can you take us through your opportunity broadly? >> Yeah absolutely, you mean, there's the core opportunity in the space that we play, as where customers want to move data, they don't want to do data integration, they want to move data from A to B. There's those that are then branching out more to moving a lot of their business workloads to the cloud on a continuous basis. And then where we're seeing a lot of traction around this particular data that resides in these critical business systems such as SAP, that is something you're asking earlier about, what are some core things on our product. We have the ability to unpack, to unlock that data that sits in some of these SAP environments. So we can go, and then decode this data that sits between these cluster pool tables, combine that with our CDC techniques, and move their data across a network. And so particularly, sort of bringing it back a little bit, what we're seeing today, people are adopting the cloud, the massive adoption of Snowflake. I mean, as we see their growth, a lot of that is driven through consumption, why? It's these big, large enterprises that are now ready to consume more. We've seen that tail wind from our perspective, as well as taking these workloads such as SAP, and moving that into something like these cloud platforms, such as a Snowflake. And so that's where we see the immediate opportunity for us. And then and then branching out from there further, but I mean, that is the core immediate area of focus right now. >> Okay, so we've talked about Snowflake a couple of times, and other platforms, they're not the only one, but they're the hot one right now. When you think about what organizations are doing, they're trying to really streamline their data pipeline to get to turn raw data into insights. So you're seeing that emerging organizations, that data pipeline, we've been talking about it for quite some time. I mean, Snowflake, obviously, is one piece of that. Where's your value in that pipeline? Is it all about getting the data into that stream? >> Yeah, you just mentioned something there that we have an issue internally that's called raw data to ready data. And that's about capturing this data, moving that across. And that's where we building value on that data as well, particularly around some of our SAP type initiatives, and solutions related to that, that we're bringing out as well. So one it's absolutely going in acquiring that data. It's then moving it as efficiently as we can at scale, which a lot of people talk about, we truly operate at scale, the biggest companies in the world use us to do that, across there and giving them that ability to make decisions on the freshest data. Therein lies the value of them being able to make decisions on data that is a few seconds, few minutes old, versus some other technology they may be using that takes hours days. You mean that is it, keeping large companies that we work with today. I mean keeping toner paper on shelves, I mean one thing that happened after COVID. I mean one of our big customers was making them out their former process, and making the shelves are full. Another healthcare provider being able to do analysis on what was happening on supplies from the hospital, and the other providers during this COVID crisis. So that's where it's a lot of that value, helping them reinvent their businesses, drive down that digital transformation strategy, is the key areas there. No data, they can't make those type of decisions. >> Yeah, so I mean, your vision really, I mean, you're betting on data. I always say don't bet against the data. But really, that's kind of the premise here. Is the data is going to continue to grow. And data, I often say data is plentiful insights aren't. And we use the Broma you said before. So really, maybe, good to summarize the vision for us, where you want to take this thing? Yeah, absolutely so we're going to continue building on what we have, making it easier to use. Certainly, as we move, as more customers move into the cloud. And then from there, I mean, we have some strategic initiatives of looking at some acquisitions as well, just to build on around offering, and some of the other core areas. But ultimately, it's getting closer to the business user. In today's world, there is many IT tech-savvy people sitting in the business side of organization, as they are in IT, if not more. And so as we go down that flow with our product, it's getting closer to those end users, because they're at the forefront of wanting this data. As we said that the data is the lifeblood of an organization. And so given an ability to drive the actual power that they need to run the data, is a core part of that vision. So we have some some strategic initiatives around some acquisitions, as well, but also continue to build on the product. I mean, there's, as I say, I mean sources and targets come and go, there's new ones that are created each week, and new adoptions, and so we've got to support those. That's our table stakes, and then continue to make it easier to use, scale even quicker, more autonomous, those type of things. >> And you're working with a lot of big companies, the company's well funded if Crunchbase is up to date, over $50 million in funding. Give us up right there. >> Yeah absolutely, I mean a company is well funded, we're on a good footing. Obviously, it's a very hot space to be in. With COVID this year, like everybody, we sat down and looked in sort of everyone said, "Okay well, let's have a look how "this whole thing's going to shake out, "and get good plan A, B and C in action." And we've sort of ended up with Plan A plus, we've done an annual budget for the year. We had our best quarter ever, and Q2, 193% year over year growth. And it's just, the momentum is just there, I think at large. I mean obviously, it sounds cliche, a lot of people say it around digital transformation and COVID. Absolutely, we've been building this engine for a few years now. And it's really clicked into gear. And I think projects due to COVID and things that would have taken nine, 12 months to happen, they're sort of taking a month or two now. It's been getting driven down from the top. So all of that's come together for us very fortunately, the timing has been ideal. And then tie in something like a Snowflake traction, as you said, we support many other platforms. But all of that together, it just set up really nicely for us, fortunately. >> That's amazing, I mean, with all the turmoil that's going on in the world right now. And all the pain in many businesses. I tell you, I interview people all day every day, and the technology business is really humming. So that's awesome to hear that you guys. I mean, especially if you're in the right place, and data is the place to be. Anthony, thanks so much for coming on theCUBE and summarizing your thoughts, and give us the update on HVR, really interesting. >> Absolutely, I appreciate the time and opportunity. >> Alright, and thank you for watching everybody. This is Dave Vellante for theCUBE, and we'll see you next time. (upbeat music)

>> From the Cube Studios in Palo Alto in Boston, connecting with thought leaders all around the world, this is a Cube Conversation. >> Hi everyone, this is Dave Vellante and welcome back to the Cube's coverage of the MIT CDOIQ. God, we've been covering this show since probably 2013, really trying to understand the intersection of data and organizations and data quality and how that's evolved over time. And with me to discuss these issues is Krishna Cheriath, who's the Vice President and Chief Data Officer, Bristol-Myers Squibb. Krishna, great to see you, thanks so much for coming on. >> Thank you so much Dave for the invite, I'm looking forward to it. >> Yeah first of all, how are things in your part of the world? You're in New Jersey, I'm also on the East coast, how you guys making out? >> Yeah, I think these are unprecedented times all around the globe and whether it is from a company perspective or a personal standpoint, it is how do you manage your life, how do you manage your work in these unprecedented COVID-19 times has been a very interesting challenge. And to me, what is most amazing has been, I've seen humanity rise up and so to our company has sort of snap to be able to manage our work so that the important medicines that have to be delivered to our patients are delivered on time. So really proud about how we have done as a company and of course, personally, it has been an interesting journey with my kids from college, remote learning, wife working from home. So I'm very lucky and blessed to be safe and healthy at this time. So hopefully the people listening to this conversation are finding that they are able to manage through their lives as well. >> Obviously Bristol-Myers Squibb, very, very strong business. You guys just recently announced your quarter. There's a biologics facility near me in Devon's, Massachusetts, I drive by it all the time, it's a beautiful facility actually. But extremely broad portfolio, obviously some COVID impact, but you're managing through that very, very well, if I understand it correctly, you're taking a collaborative approach to a COVID vaccine, you're now bringing people physically back to work, you've been very planful about that. My question is from your standpoint, what role did you play in that whole COVID response and what role did data play? >> Yeah, I think it's a two part as you rightly pointed out, the Bristol-Myers Squibb, we have been an active partner on the the overall scientific ecosystem supporting many different targets that is, from many different companies I think. Across biopharmaceuticals, there's been a healthy convergence of scientific innovation to see how can we solve this together. And Bristol-Myers Squibb have been an active participant as our CEO, as well as our Chief Medical Officer and Head of Research have articulated publicly. Within the company itself, from a data and technology standpoint, data and digital is core to the response from a company standpoint to the COVID-19, how do we ensure that our work continues when the entire global workforce pivots to a kind of a remote setting. So that really calls on the digital infrastructure to rise to the challenge, to enable a complete global workforce. And I mean workforce, it is not just employees of the company but the all of the third-party partners and others that we work with, the whole ecosystem needs to work. And I think our digital infrastructure has proven to be extremely resilient than that. From a data perspective, I think it is twofold. One is how does the core book of business of data continue to drive forward to make sure that our companies key priorities are being advanced. Secondarily, we've been partnering with a research and development organization as well as medical organization to look at what kind of real world data insights can really help in answering the many questions around COVID-19. So I think it is twofold. Main summary; one is, how do we ensure that the data and digital infrastructure of the company continues to operate in a way that allows us to progress the company's mission even during a time when globally, we have been switched to a remote working force, except for some essential staff from lab and manufacturing standpoint. And secondarily is how do we look at the real-world evidence as well as the scientific data to be a good partner with other companies to look at progressing the societal innovations needed for this. >> I think it's a really prudent approach because let's face it, sometimes one shot all vaccine can be like playing roulette. So you guys are both managing your risk and just as I say, financially, a very, very successful company in a sound approach. I want to ask you about your organization. We've interviewed many, many Chief Data Officers over the years, and there seems to be some fuzziness as to the organizational structure. It's very clear with you, you report in to the CIO, you came out of a technical bag, you have a technical degree but you also of course have a business degree. So you're dangerous from that standpoint. You got both sides which is critical, I would think in your role, but let's start with the organizational reporting structure. How did that come about and what are the benefits of reporting into the CIO? >> I think the Genesis for that as Bristol-Myers Squibb and when I say Bristol-Myers Squibb, the new Bristol-Myers Squibb is a combination of Heritage Bristol-Myers Squibb and Heritage Celgene after the Celgene acquisition last November. So in the Heritage Bristol-Myers Squibb acquisition, we came to a conclusion that in order for BMS to be able to fully capitalize on our scientific innovation potential as well as to drive data-driven decisions across the company, having a robust data agenda is key. Now the question is, how do you progress that? Historically, we had approached a very decentralized mechanism that made a different data constituencies. We didn't have a formal role of a Chief Data Officer up until 2018 or so. So coming from that realization that we need to have an effective data agenda to drive forward the necessary data-driven innovations from an analytic standpoint. And equally importantly, from optimizing our execution, we came to conclusion that we need an enterprise-level data organization, we need to have a first among equals if you will, to be mandated by the CEO, his leadership team, to be the kind of an orchestrator of a data agenda for the company, because data agenda cannot be done individually by a singular CDO. It has to be done in partnership with many stakeholders, business, technology, analytics, et cetera. So from that came this notion that we need an enterprise-wide data organization. So we started there. So for awhile, I would joke around that I had all of the accountabilities of the CDO without the lofty title. So this journey started around 2016, where we create an enterprise-wide data organization. And we made a very conscious choice of separating the data organization from analytics. And the reason we did that is when we look at the bowl of Bristol-Myers Squibb, analytics for example, is core and part of our scientific discovery process, research, our clinical development, all of them have deep data science and analytic embedded in it. But we also have other analytics whether it is part of our sales and marketing, whether it is part of our finance and our enabling functions they catch all across global procurement et cetera. So the world of analytics is very broad. BMS did a separation between the world of analytics and from the world of data. Analytics at BMS is in two modes. There is a central analytics organization called Business Insights and Analytics that drive most of the enterprise-level analytics. But then we have embedded analytics in our business areas, which is research and development, manufacturing and supply chain, et cetera, to drive what needs to be closer to the business idea. And the reason for separating that out and having a separate data organization is that none of these analytic aspirations or the business aspirations from data will be met if the world of data is, you don't have the right level of data available, the velocity of data is not appropriate for the use cases, the quality of data is not great or the control of the data. So that we are using the data for the right intent, meeting the compliance and regulatory expectations around the data is met. So that's why we separated out that data world from the analytics world, which is a little bit of a unique construct for us compared to what we see generally in the world of CDOs. And from that standpoint, then the decision was taken to make that report for global CIO. At Bristol-Myers Squibb, they have a very strong CIO organization and IT organization. When I say strong, it is from this lens standpoint. A, it is centralized, we have centralized the budget as well as we have centralized the execution across the enterprise. And the CDO reporting to the CIO with that data-specific agenda, has a lot of value in being able to connect the world of data with the world of technology. So at BMS, their Chief Data Officer organization is a combination of traditional CDO-type accountabilities like data risk management, data governance, data stewardship, but also all of the related technologies around master data management, data lake, data and analytic engineering and a nascent AI data and technology lab. So that construct allows us to be a true enterprise horizontal, supporting analytics, whether it is done in a central analytics organization or embedded analytics teams in the business area, but also equally importantly, focus on the world of data from operational execution standpoint, how do we optimize data to drive operational effectiveness? So that's the construct that we have where CDO reports to the CIO, data organization separated from analytics to really focus around the availability but also the quality and control of data. And the last nuance that is that at BMS, the Chief Data Officer organization is also accountable to be the Data Protection Office. So we orchestrate and facilitate all privacy-related actions across because that allows us to make sure that all personal data that is collected, managed and consumed, meets all of the various privacy standards across the world, as well as our own commitments as a company from across from compliance principles standpoint. >> So that makes a lot of sense to me and thank you for that description. You're not getting in the way of R&D and the scientists, they know data science, they don't need really your help. I mean, they need to innovate at their own pace, but the balance of the business really does need your innovation, and that's really where it seems like you're focused. You mentioned master data management, data lakes, data engineering, et cetera. So your responsibility is for that enterprise data lifecycle to support the business side of things, and I wonder if you could talk a little bit about that and how that's evolved. I mean a lot has changed from the old days of data warehouse and cumbersome ETL and you mentioned, as you say data lakes, many of those have been challenging, expensive, slow, but now we're entering this era of cloud, real-time, a lot of machine intelligence, and I wonder if you could talk about the changes there and how you're looking at and thinking about the data lifecycle and accelerating the time to insights. >> Yeah, I think the way we think about it, we as an organization in our strategy and tactics, think of this as a data supply chain. The supply chain of data to drive business value whether it is through insights and analytics or through operation execution. When you think about it from that standpoint, then we need to get many elements of that into an effective stage. This could be the technologies that is part of that data supply chain, you reference some of them, the master data management platforms, data lake platforms, the analytics and reporting capabilities and business intelligence capabilities that plug into a data backbone, which is that I would say the technology, swim lane that needs to get right. Along with that, what we also need to get right for that effective data supply chain is that data layer. That is, how do you make sure that there is the right data navigation capability, probably you make sure that we have the right ontology mapping and the understanding around the data. How do we have data navigation? It is something that we have invested very heavily in. So imagine a new employee joining BMS, any organization our size has a pretty wide technology ecosystem and data ecosystem. How do you navigate that, how do we find the data? Data discovery has been a key focus for us. So for an effective data supply chain, then we knew that and we have instituted our roadmap to make sure that we have a robust technology orchestration of it, but equally important is an effective data operations orchestration. Both needs to go hand in hand for us to be able to make sure that that supply chain is effective from a business use case and analytic use standpoint. So that has led us on a journey from a cloud perspective, since you refer that in your question, is we have invested very heavily to move from very disparate set of data ecosystems to a more converse cloud-based data backbone. That has been a big focus at the BMS since 2016, whether it is from a research and development standpoint or from commercialization, it is our word for the sales and marketing or manufacturing and supply chain and HR, et cetera. How do we create a converged data backbone that allows us to use that data as a resource to drive many different consumption patterns? Because when you imagine an enterprise of our size, we have many different consumers of the data. So those consumers have different consumption needs. You have deep data science population who just needs access to the data and they have data science platforms but they are at once programmers as well, to the other end of the spectrum where executives need pre-packaged KPIs. So the effective orchestration of the data ecosystem at BMS through a data supply chain and the data backbone, there's a couple of things for us. One, it drives productivity of our data consumers, the scientific researchers, analytic community or other operational staff. And second, in a world where we need to make sure that the data consumption appalls ethical standards as well as privacy and other regulatory expectations, we are able to build it into our system and process the necessary controls to make sure that the consumption and the use of data meets our highest trust advancements standards. >> That makes a lot of sense. I mean, converging your data like that, people always talk about stove pipes. I know it's kind of a bromide but it's true, and allows you to sort of inject consistent policies. What about automation? How has that affected your data pipeline recently and on your journey with things like data classification and the like? >> I think in pursuing a broad data automation journey, one of the things that we did was to operate at two different speed points. In a historically, the data organizations have been bundled with long-running data infrastructure programs. By the time you complete them, their business context have moved on and the organization leaders are also exhausted from having to wait from these massive programs to reach its full potential. So what we did very intentionally from our data automation journey is to organize ourselves in two speed dimensions. First, a concept called Rapid Data Lab. The idea is that recognizing the reality that the data is not well automated and orchestrated today, we need a SWAT team of data engineers, data SMEs to partner with consumers of data to make sure that we can make effective data supply chain decisions here and now, and enable the business to answer questions of today. Simultaneously in a longer time horizon, we need to do the necessary work of moving the data automation to a better footprint. So enterprise data lake investments, where we built services based on, we had chosen AWS as the cloud backbone for data. So how do we use the AWS services? How do we wrap around it with the necessary capabilities so that we have a consistent reference and technical architecture to drive the many different function journeys? So we organized ourselves into speed dimensions; the Rapid Data Lab teams focus around partnering with the consumers of data to help them with data automation needs here and now, and then a secondary team focused around the convergence of data into a better cloud-based data backbone. So that allowed us to one, make an impact here and now and deliver value from data to the dismiss here and now. Secondly, we also learned a lot from actually partnering with consumers of data on what needs to get adjusted over a period of time in our automation journey. >> It makes sense, I mean again, that whole notion of converged data, putting data at the core of your business, you brought up AWS, I wonder if I could ask you a question. You don't have to comment on specific vendors, but there's a conversation we have in our community. You have AWS huge platform, tons of partners, a lot of innovation going on and you see innovation in areas like the cloud data warehouse or data science tooling, et cetera, all components of that data pipeline. As well, you have AWS with its own tooling around there. So a question we often have in the community is will technologists and technology buyers go for kind of best of breed and cobble together different services or would they prefer to have sort of the convenience of a bundled service from an AWS or a Microsoft or Google, or maybe they even go best of breeds for all cloud. Can you comment on that, what's your thinking? >> I think, especially for organizations, our size and breadth, having a converged to convenient, all of the above from a single provider does not seem practical and feasible, because a couple of reasons. One, the heterogeneity of the data, the heterogeneity of consumption of the data and we are yet to find a single stack provider who can meet all of the different needs. So I am more in the best of breed camp with a few caveats, a hybrid best of breed, if you will. It is important to have a converged the data backbone for the enterprise. And so whether you invest in a singular cloud or private cloud or a combination, you need to have a clear intention strategy around where are you going to host the data and how is the data is going to be organized. But you could have a lot more flexibility in the consumption of data. So once you have the data converged into, in our case, we converged on AWS-based backbone. We allow many different consumptions of the data, because I think the analytic and insights layer, data science community within R&D is different from a data science community in the supply chain context, we have business intelligence needs, we have a catered needs and then there are other data needs that needs to be funneled into software as service platforms like the sales forces of the world, to be able to drive operational execution as well. So when you look at it from that context, having a hybrid model of best of breed, whether you have a lot more convergence from a data backbone standpoint, but then allow for best of breed from an analytic and consumption of data is more where my heart and my brain is. >> I know a lot of companies would be excited to hear that answer, but I love it because it fosters competition and innovation. I wish I could talk for you forever, but you made me think of another question which is around self-serve. On your journey, are you at the point where you can deliver self-serve to the lines of business? Is that something that you're trying to get to? >> Yeah, I think it does. The self-serve is an absolutely important point because I think the traditional boundaries of what you consider the classical IT versus a classical business is great. I think there is an important gray area in the middle where you have a deep citizen data scientist in the business community who really needs to be able to have access to the data and I have advanced data science and programming skills. So self-serve is important but in that, companies need to be very intentional and very conscious of making sure that you're allowing that self-serve in a safe containment sock. Because at the end of the day, whether it is a cyber risk or data risk or technology risk, it's all real. So we need to have a balanced approach between promoting whether you call it data democratization or whether you call it self-serve, but you need to balance that with making sure that you're meeting the right risk mitigation strategy standpoint. So that's how then our focus is to say, how do we promote self-serve for the communities that they need self-serve, where they have deeper levels of access? How do we set up the right safe zones for those which may be the appropriate mitigation from a cyber risk or data risk or technology risk. >> Security pieces, again, you keep bringing up topics that I could talk to you forever on, but I heard on TV the other night, I heard somebody talking about how COVID has affected, because of remote access, affected security. And it's like hey, give everybody access. That was sort of the initial knee-jerk response, but the example they gave as well, if your parents go out of town and the kid has a party, you may have some people show up that you don't want to show up. And so, same issue with remote working, work from home. Clearly you guys have had to pivot to support that, but where does the security organization fit? Does that report separate alongside the CIO? Does it report into the CIO? Are they sort of peers of yours, how does that all work? >> Yeah, I think at Bristol-Myers Squibb, we have a Chief Information Security Officer who is a peer of mine, who also reports to the global CIO. The CDO and the CSO are effective partners and are two sides of the coin and trying to advance a total risk mitigation strategy, whether it is from a cyber risk standpoint, which is the focus of the Chief Information Security Officer and whether it is the general data consumption risk. And that is the focus from a Chief Data Officer in the capacities that I have. And together, those are two sides of a coin that the CIO needs to be accountable for. So I think that's how we have orchestrated it, because I think it is important in these worlds where you want to be able to drive data-driven innovation but you want to be able to do that in a way that doesn't open the company to unwanted risk exposures as well. And that is always a delicate balancing act, because if you index too much on risk and then high levels of security and control, then you could lose productivity. But if you index too much on productivity, collaboration and open access and data, it opens up the company for risks. So it is a delicate balance within the two. >> Increasingly, we're seeing that reporting structure evolve and coalesce, I think it makes a lot of sense. I felt like at some point you had too many seats at the executive leadership table, too many kind of competing agendas. And now your structure, the CIO is obviously a very important position. I'm sure has a seat at the leadership table, but also has the responsibility for managing that sort of data as an asset versus a liability which my view, has always been sort of the role of the Head of Information. I want to ask you, I want to hit the Escape key a little bit and ask you about data as a resource. You hear a lot of people talk about data is the new oil. We often say data is more valuable than oil because you can use it, it doesn't follow the laws of scarcity. You could use data in infinite number of places. You can only put oil in your car or your house. How do you think about data as a resource today and going forward? >> Yeah, I think the data as the new oil paradigm in my opinion, was an unhealthy, and it prompts different types of conversations around that. I think for certain companies, data is indeed an asset. If you're a company that is focused on information products and data products and that is core of your business, then of course there's monetization of data and then data as an asset, just like any other assets on the company's balance sheet. But for many enterprises to further their mission, I think considering data as a resource, I think is a better focus. So as a vital resource for the company, you need to make sure that there is an appropriate caring and feeding for it, there is an appropriate management of the resource and an appropriate evolution of the resource. So that's how I would like to consider it, it is a personal end of one perspective, that data as a resource that can power the mission of the company, the new products and services, I think that's a good, healthy way to look at it. At the center of it though, a lot of strategies, whether people talk about a digital strategy, whether the people talk about data strategy, what is important is a company to have a pool north star around what is the core mission of the company and what is the core strategy of the company. For Bristol-Myers Squibb, we are about transforming patients' lives through science. And we think about digital and data as key value levers and drivers of that strategy. So digital for the sake of digital or data strategy for the sake of data strategy is meaningless in my opinion. We are focused on making sure that how do we make sure that data and digital is an accelerant and has a value lever for the company's mission and company strategy. So that's why thinking about data as a resource, as a key resource for our scientific researchers or a key resource for our manufacturing team or a key resource for our sales and marketing, allows us to think about the actions and the strategies and tactics we need to deploy to make that effective. >> Yeah, that makes a lot of sense, you're constantly using that North star as your guideline and how data contributes to that mission. Krishna Cheriath, thanks so much for coming on the Cube and supporting the MIT Chief Data Officer community, it was a really pleasure having you. >> Thank you so much for Dave, hopefully you and the audience is safe and healthy during these times. >> Thank you for that and thank you for watching everybody. This is Vellante for the Cube's coverage of the MIT CDOIQ Conference 2020 gone virtual. Keep it right there, we'll right back right after this short break. (lively upbeat music)

>> Live from Las Vegas, it's theCUBE covering AWS Reinvent 2018. Brought to you by Amazon Web Services, Intel and their ecosystem partners. >> And welcome to Las Vegas, we're in the Sands now for AWS re:Invent day one, here for all three days, Tuesday, Wednesday, Thursday, exclusive CUBE coverage here. I'm John Walls with Justin Warner and John Ferrier. Gentlemen, good to see you, it's been a while since we had the band together so it's good to be back. >> Well we can reinvent, everyone is going to run the marathon, it's a hard hitting show, it's the wall-to-wall coverage. Started with what they call Midnight Madness kind of played off March Madness. Sunday at midnight kicks off the show, they have a party that goes well into the evening, to get the launches out there. >> I don't want to ask where you were at that time. >> I was actually coming home from Phoenix, from a family trip but I'll be coming this year but this even, wall-to-wall coverage, here at The Cube, three days of live broadcast. It really kicked off yesterday, there's evening events, 52 000 people, it is packed, it feels like you're walking through Disneyland on the busiest day, really is crazy. A ton of networking, a lot of customers. This is Amazon's biggest show, it's really awesome and it's a great way to see the formation of the industry. So it really is the industry Super Bowl event as Dave (mumbles) says and watching how people form, how their posture is, what their messaging is and our job, we're going to split through that this week, we're going to extract from the messaging and the conversations, get the story, get to the truth, shortcut to the data and should be fun. >> Well, let's talk about the head coach here in AWS. You've had a chance to sit down with him recently. We'll hear the key note tomorrow morning but just give you a little sneak peak of what you think is coming from Mr Jassy and what do you think the message is that he wants to deliver? >> Well, we've been covering Amazon since its founding, or our founding eight years ago and seven years they started reInvent, eight years ago, we are seven years, this is our seventh year at reInvent. So we get to know Jassy So he invites me every year for a one-on-one. This year, I did it at his house. He's got a sport bar in his basement. Tricked out sports bar, great football game was on, Chiefs against the Chargers, we watched that, two and a half hours I spent with him really kind of getting a feel for what's on his mind. How he's thinking about the business because a lot of, he's having a lot of pinch-me moments where certainly they're winning, they're blowing away field in my opinion in cloud computing. I think there's really not even a close second place although Microsoft's got the chops, they're doing their gaming, Google's got the tech and they're repositioning, you know, how does he feel? He's humble as they come and he's got the management discipline, but he was really kind of saying to me, hey, great leaders are listening to customers and he was walking back his position on hybrid cloud because clearly they're going to make some big announcements here around hybrid cloud but I got insight into his mind and he's not done and these guys are not celebrating in the end zone, they're not high fiving each other, they've got a lot of work to do and still, people are not using the cloud like they really are in their mind. I think things like Lambda and the announcements we'll be expecting to see here today is going to set the stage for a new set of apps and I think there's going to be a renaissance of software development, they recognize it, they recognize that the competition's hotter, they recognize that they got to get better and raise the bar and that's what they're doing. They have a cadens to their management style that I think is historic in this era of leadership and the likes of all the Uber scandals, Facebook, the scandals of the management team of Facebook. No one trusts corporate America. Amazon's got this execution style that kind of reminds me back in the old days, Intel had or an HP back in the day. They actually kick ass as a management team. They're focused, they're not celebrating and they're clearly guns glaring. SO they're doing the work. I still think that they see the world as still competitive, there are things out there that I think scares them, although he didn't say CNCF directly but there's things out there forming that could dis-intermediate the greatness of AWS and that's just natural competition and his philosophy, Justin is, bring it on. >> Well, I was just in China funnily enough for CNCF Cube, CNCF club native con, Cube con. The first one that they held in China and it was amazing to see what the Chinese are actually doing. So we ear a lot over here in Europe and over here in the Western world. There's a lot of conversation about Amazon and Google and Microsoft, but you never hear the words Tencent or Alibaba, they don't come up a lot and yet what Alibaba and Tencent are doing over there is amazing so I think if we're thinking about the competition in a global sense, then certainly Amazon needs to be right onto of their game because yeah, we might have some stumbles from Google as we've seen and Microsoft, still a little bit behind the plan but if you look at globally and see what's happening over there in China, there's a lot that they should be worried about. >> Well, give me a such as. When you talk about Alibaba doing things that maybe aren't happening here, for example. >> There was some amazing stuff around our AI machine learning that they were doing around grid management of renewable energy and distribution around the entire country of China. So there are things that are possible in China that are not quite as easy to do over here in the West. It's a lot easier when you have one person in charge of all of the things and they can say, we're going to go and do that. It's a little bit more, there's a lot more negotiation required over this side. >> And you think too about China as the mobile penetration is higher there and they're very data centered. You look at the United States, even in the IT world. Dell, HP's, the Oracle's of the world, the old IT guard essentially had that data but now you got data on phones, with this proximity, you've got edge of the network. The data is going to live in a lot of places and in our legacy infrastructure and IT in North America, Dell doesn't have anything to do with my phone or HP, that's just service so the old way of storing data and where data lives and how data's being used is radically changing. >> Yeah, there's a lot of stuff happening at the edge. We have some presentations on wind farms. So you have compute lives in wind farms and they're actually sampling the air and finding out what the weather patterns are like, feeding that back into central systems and they're having to design systems that are able to be deployed, the same thing, cookie cutter all over the country, distributed around the place where you've got latency and communication issues, where you've got power distribution issues. So you have to think about the way you're deploying these infrastructure, completely differently than if you centralize in one cloud or even in a data center or you're running it yourself. So they're actually thinking about things in a layered sense. So it's not just one size fits all, it's actually we need sides, multiple different sizes to fit lots of different things. >> And what, I mean John you got off the phone with 5G on the horizon. I can only imagine the exponential explosion we're going to see in data coming in from sensors and IoT, you talk about edge and faster, more, where's all that going? >> So I got a little reporter's notebook here from my meeting with Jassy and also connecting the dots what's going to be announced. There's going to be an announcement today around 11 o'clock this morning around maybe Jassy announcing new connectivity option and what you're seeing is that Amazon recognizing that IoT at the edge, Internet of Things is sensors as wind farms so this IoT is about power and connectivity. Without power and connectivity, IoT doesn't really exist. SO these new kinds of internet infrastructure data devices that need computer, you got to have power, you got to have connectivity and they might not have the worst power on a safe phone, although this is a, plenty of power on there. You want to take advantage of bigger data sets. You've got to go back to the cloud. So the cloud is becoming the brain and that's what Andy Jassy said to me, he said the cloud is going to be the brains and the edge can be, use some processing, we're going to send compute there if we need it. We don't want to move data around because latency will kill. So we're expecting Amazon to announce new services around connectivity where you can stand up things like satellites as a service and that's what's going to be announced at 11 o'clock. I just got that out there so we'll see if that's confirmed or not. (John Walls laughs) Two hours early if you watch this, don't tweet this, I'll get in trouble. >> Is that cat out of the bag. I think yeah, go ahead. >> Well you know, it's a brief guess, I heard some rumbles in the hallway but we'll see what the details are but this is a new kind of progressive thinking, this is what I love about AWS and Jassy, they're not afraid to use their scale and power to push new capabilities, not just extract ranch from customers and by standing up connectivity, this is a weak link in the equation of IoT. There's a lot of things that need power and connectivity and if you have good processing power and compute at the edge, that's going to happen. So Andy's philosophy and Amazon's philosophy is consistent with Wikibon research and most analysts have discussed in this strand that you want to move compute to the edge, not move data back to the cloud. This is fundamentally the shift that's going on with services like Lambda, you can power up things in hundreds of milliseconds versus an instance of ten seconds. This is changing the software development paradigm. This is a tailwind, this is going to power new work loads so you see Amazon recognizing this, increasing power compute to the edge, offering connectivity ops where there isn't any. Making things faster with compute and then moving up the stack. This is going to be a big part of this show. We're expecting to see if Amazon is going to move up the stack. Aurora, Sagemaker and levels of services that they're going to allow developers, new kind of software development where truly the dream of (mumbles) of not knowing anything about the infrastructure could be realized. >> That is a pretty big shift for Amazon 'cause they've always been talking about themselves as undifferentiated heavy lifting as one of their analysts told me it some years ago. That was their idea, was that we're just going to be the utility service that is the one true way that you should use it and it will be ubiquitous in the same way that you have power as a utility, you rent it and you just use it and you build other things on top of that. So it's interesting that we're now starting to see that Amazon themselves are building things on top of what they've already created in the same way that S3 was build on top of EC2, so now we're seeing this layering effect of we built the underlying technologies and now we're going to start putting extra value technologies on top of that and that's where to start to see things like as a services, serverless Lambda being built on top of all this underlying stuff. We're going to start seeing some really interesting stuff coming form Amazon. >> I'd like to hear from you guys, you've talked about what you think AWS is going to talk about. What do you want them to talk about. What do you want to hear form them this week, whether it's a challenge they have to take on or whether it's about the competitive landscape what is it between the two of you that's you'd like to hear them address. >> I would like to hear their position on the software development paradigm around moving between clouds. I know they don't like the word multi-cloud, hybrid cloud's the word that they choose. They don't actually use the word multi-cloud, hybrid cloud is their word. They see the world in a very specific way which I don't disagree with. On premises with clouds, operations and seamless consistency around both, how that works and what is means for the customer is what I want to know. WHat's the switching cost involved, what's the benefit to customers, it's going to be a lock inspect. I want to hear about some of the migration stories, I want to hear them talk about migrations. I don't think migration to the cloud has been successful for Amazon as they had hoped. I think when you look at what's going on in the enterprise, legacy workloads that run payroll around mainframes, they're going to stay there and no-one's moving that to the cloud 'cause why would I want to rewrite that. So this is the interesting thing. So I want to hear them talk about how they're going to handle a workload that's on premises, that's legacy, that's part of a production mission critical application and how that's going to work with new services via APIs. Stable data, things of that nature. I want to hear how they're going to handle containers and Kubernetes, 'cause this is going to be the key linchpin between moving data and services via APIs and web services, this is the holy grail. They can address that in a clear way, I would be happy and I expect them to see them do things like put a VM container around containers. A lot of competitive strategy going on, so I'm trying to look for the chess moves on the board. Kubernetes and containers is a big one. >> The customer, in terms of helping customers, I would actually like to see, I think similarly, see Amazon relax we are the one true way message that they've been hammering pretty hard for a long, long time. If you do cloud, it has to be us and we're really the only the cloud that exist. That's caused a lot of issues inside particularly enterprise customers who have, as you say, they've got legacy applications, or we'd like to call them heritage applications. They work, they've been debugged, they're sold applications. Rewriting those adds a lot of risk and a lot of IT projects found, more than 50% of them fail. SO if you're going to say, oh you have to completely rewrite everything and take it all to serverless, if you're going to do anything cloud, that adds a huge amount of risk onto the IT portfolio. So for an enterprise, or anyone who's actually been a successful company already, not the new startups, I'd say yes, brand new, you can start green, field's awesome, but if you have any kind of successful company already, you need to have a migration part. You need to understand it's appropriate to put these things, net news should start in cloud, great. What about the stuff that we've already got that's debugged, how do I get that to talk to cloud and how do I not end up with a bifurcated organization where I've got this legacy stuff that sits in the cupboard which no-one want to touch and play with and I have everyone doing all the new shiny stuff over here and then I end up killing my business because I have no migration part. >> And one final thing and then we got to go wrap up and get started for the day. I want to see more on the net new work loads because I think that is going to be a key part. The application developers are going to be where the power source is. New breeded developer, classic IT experts emerging, changing to devops and kind of a new community, open source community kind of personas them all evolving. So development, of our environment changing with developer persona, IT experts are changing to devops and the role of open source communities, I want to see more of that. At the end of the day, I want to see how Amazon thinks and how their customers are working with their data. Because if they have that Heritage app or legacy or an edge or wherever, the data is going to be a critical design component for the next generation. So that's what I'm looking for, what's going on with the data and trying to survive the slew of announcements. >> Big data, big topics and we have 40 000 of our best friends here to share their knowledge with you. Well, we're not going to have all of them, but we're going to have a lot. Wall-to-wall coverage here, AWS re:Invent kicks off in just a few moments, you are watching The Cube live from Las Vegas. 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[Music] [Music] [Music] [Music] [Music] [Music] that will be successful in the 21st century [Music] being open is really important because it comes with a lot of trust the open-source community now has matured so much and that contribution from the community is really driving innovation [Music] but what's really exciting is the change that we've seen in our teams not only the way they collaborate but the way they operate in the way they work [Music] I think idea is everything ideas can change the way you see things open-source is more than a license it's actually a way of operating [Music] ladies and gentlemen please welcome Red Hat president and chief executive officer Jim Whitehurst [Music] all right well welcome to day two at the Red Hat summit I'm amazed to see this many people here at 8:30 in the morning given the number of people I saw pretty late last night out and about so thank you for being here and have to give a shout out speaking of power participation that DJ is was Mike Walker who is our global director of open innovation labs so really enjoyed that this morning was great to have him doing that so hey so day one yesterday we had some phenomenal announcements both around Red Hat products and things that we're doing as well as some great partner announcements which we found exciting I hope they were interesting to you and I hope you had a chance to learn a little more about that and enjoy the breakout sessions that we had yesterday so yesterday was a lot about the what with these announcements and partnerships today I wanted to spin this morning talking a little bit more about the how right how do we actually survive and thrive in this digitally transformed world and to some extent the easy parts identifying the problem we all know that we have to be able to move more quickly we all know that we have to be able to react to change faster and we all know that we need to innovate more effectively all right so the problem is easy but how do you actually go about solving that right the problem is that's not a product that you can buy off the shelf right it is a capability that you have to build and certainly it's technology enabled but it's also depends on process culture a whole bunch of things to figure out how we actually do that and the answer is likely to be different in different organizations with different objective functions and different starting points right so this is a challenge that we all need to feel our way to an answer on and so I want to spend some time today talking about what we've seen in the market and how people are working to address that and it's one of the reasons that the summit this year the theme is ideas worth it lorring to take us back on a little history lesson so two years ago here at Moscone the theme of the summit was the power of participation and then I talked a lot about the power of groups of people working together and participating are able to solve problems much more quickly and much more effectively than individuals or even individual organizations working by themselves and some of the largest problems that we face in technology but more broadly in the world will ultimately only be solved if we effectively participate and work together then last year the theme of the summit was the impact of the individual and we took this concept of participation a bit further and we talked about how participation has to be active right it's a this isn't something where you can be passive that you can sit back you have to be involved because the problem in a more participative type community is that there is no road map right you can't sit back and wait for an edict on high or some central planning or some central authority to tell you what to do you have to take initiative you have to get involved right this is a active participation sport now one of the things that I talked about as part of that was that planning was dead and it was kind of a key my I think my keynote was actually titled planning is dead and the concept was that in a world that's less knowable when we're solving problems in a more organic bottom-up way our ability to effectively plan into the future it's much less than it was in the past and this idea that you're gonna be able to plan for success and then build to it it really is being replaced by a more bottom-up participative approach now aside from my whole strategic planning team kind of being up in arms saying what are you saying planning is dead I have multiple times had people say to me well I get that point but I still need to prepare for the future how do I prepare my organization for the future isn't that planning and so I wanted to spend a couple minutes talk a little more detail about what I meant by that but importantly taking our own advice we spent a lot of time this past year looking around at what our customers are doing because what a better place to learn then from large companies and small companies around the world information technology organizations having to work to solve these problems for their organizations and so our ability to learn from each other take the power of participation an individual initiative that people and organizations have taken there are just so many great learnings this year that I want to get a chance to share I also thought rather than listening to me do that that we could actually highlight some of the people who are doing this and so I do want to spend about five minutes kind of contextualizing what we're going to go through over the next hour or so and some of the lessons learned but then we want to share some real-world stories of how organizations are attacking some of these problems under this how do we be successful in a world of constant change in uncertainty so just going back a little bit more to last year talking about planning was dead when I said planning it's kind of a planning writ large and so that's if you think about the way traditional organizations work to solve problems and ultimately execute you start off planning so what's a position you want to get to in X years and whether that's a competitive strategy in a position of competitive advantage or a certain position you want an organizational function to reach you kind of lay out a plan to get there you then typically a senior leaders or a planning team prescribes the sets of activities and the organization structure and the other components required to get there and then ultimately execution is about driving compliance against that plan and you look at you say well that's all logical right we plan for something we then figure out how we're gonna get there we go execute to get there and you know in a traditional world that was easy and still some of this makes sense I don't say throw out all of this but you have to recognize in a more uncertain volatile world where you can be blindsided by orthogonal competitors coming in and you the term uber eyes you have to recognize that you can't always plan or know what the future is and so if you don't well then what replaces the traditional model or certainly how do you augment the traditional model to be successful in a world that you knows ambiguous well what we've heard from customers and what you'll see examples of this through the course of this morning planning is can be replaced by configuring so you can configure for a constant rate of change without necessarily having to know what that change is this idea of prescription of here's the activities people need to perform and let's lay these out very very crisply job descriptions what organizations are going to do can be replaced by a greater degree of enablement right so this idea of how do you enable people with the knowledge and things that they need to be able to make the right decisions and then ultimately this idea of execution as compliance can be replaced by a greater level of engagement of people across the organization to ultimately be able to react at a faster speed to the changes that happen so just double clicking in each of those for a couple minutes so what I mean by configure for constant change so again we don't know exactly what the change is going to be but we know it's going to happen and last year I talked a little bit about a process solution to that problem I called it that you have to try learn modify and what that model try learn modify was for anybody in the app dev space it was basically taking the principles of agile and DevOps and applying those more broadly to business processes in technology organizations and ultimately organizations broadly this idea of you don't have to know what your ultimate destination is but you can try and experiment you can learn from those things and you can move forward and so that I do think in technology organizations we've seen tremendous progress even over the last year as organizations are adopting agile endeavor and so that still continues to be I think a great way for people to to configure their processes for change but this year we've seen some great examples of organizations taking a different tack to that problem and that's literally building modularity into their structures themselves right actually building the idea that change is going to happen into how you're laying out your technology architectures right we've all seen the reverse of that when you build these optimized systems for you know kind of one environment you kind of flip over two years later what was the optimized system it's now called a legacy system that needs to be migrated that's an optimized system that now has to be moved to a new environment because the world has changed so again you'll see a great example of that in a few minutes here on stage next this concept of enabled double-clicking on that a little bit so much of what we've done in technology over the past few years has been around automation how do we actually replace things that people were doing with technology or augmenting what people are doing with technology and that's incredibly important and that's work that can continue to go forward it needs to happen it's not really what I'm talking about here though enablement in this case it's much more around how do you make sure individuals are getting the context they need how are you making sure that they're getting the information they need how are you making sure they're getting the tools they need to make decisions on the spot so it's less about automating what people are doing and more about how can you better enable people with tools and technology now from a leadership perspective that's around making sure people understand the strategy of the company the context in which they're working in making sure you've set the appropriate values etc etc from a technology perspective that's ensuring that you're building the right systems that allow the right information the right tools at the right time to the right people now to some extent even that might not be hard but when the world is constantly changing that gets to be even harder and I think that's one of the reasons we see a lot of traction and open source to solve these problems to use flexible systems to help enterprises be able to enable their people not just in it today but to be flexible going forward and again we'll see some great examples of that and finally engagement so again if execution can't be around driving compliance to a plan because you no longer have this kind of Cris plan well what do leaders do how do organizations operate and so you know I'll broadly use the term engagement several of our customers have used this term and this is really saying well how do you engage your people in real-time to make the right decisions how do you accelerate a pace of cadence how do you operate at a different speed so you can react to change and take advantage of opportunities as they arise and everywhere we look IT is a key enabler of this right in the past IT was often seen as an inhibitor to this because the IT systems move slower than the business might want to move but we are seeing with some of these new technologies that literally IT is becoming the enabler and driving the pace of change back on to the business and you'll again see some great examples of that as well so again rather than listen to me sit here and theoretically talk about these things or refer to what we've seen others doing I thought it'd be much more interesting to bring some of our partners and our customers up here to specifically talk about what they're doing so I'm really excited to have a great group of customers who have agreed to stand in front of 7,500 people or however many here this morning and talk a little bit more about what they're doing so really excited to have them here and really appreciate all them agreeing to be a part of this and so to start I want to start with tee systems we have the CEO of tee systems here and I think this is a great story because they're really two parts to it right because he has two perspectives one is as the CEO of a global company itself having to navigate its way through digital disruption and as a global cloud service provider obviously helping its customers through this same type of change so I'm really thrilled to have a del hasta li join me on stage to talk a little bit about T systems and what they're doing and what we're doing jointly together so Adelle [Music] Jim took to see you Adele thank you for being here you for having me please join me I love to DJ when that fantastic we may have to hire him no more events for events where's well employed he's well employed though here that team do not give him mics activation it's great to have you here really do appreciate it well you're the CEO of a large organization that's going through this disruption in the same way we are I'd love to hear a little bit how for your company you're thinking about you know navigating this change that we're going through great well you know key systems as an ICT service provider we've been around for decades I'm not different to many of our clients we had to change the whole disruption of the cloud and digitization and new skills and new capability and agility it's something we had to face as well so over the last five years and especially in the last three years we invested heavily invested over a billion euros in building new capabilities building new offerings new infrastructures to support our clients so to be very disruptive for us as well and so and then with your customers themselves they're going through this set of change and you're working to help them how are you working to help enable your your customers as they're going through this change well you know all of them you know in this journey of changing the way they run their business leveraging IT much more to drive business results digitization and they're all looking for new skills new ideas they're looking for platforms that take them away from traditional waterfall development that takes a year or a year and a half before they see any results to processes and ways of bringing applications in a week in a month etcetera so it's it's we are part of that journey with them helping them for that and speaking of that I know we're working together and to help our joint customers with that can you talk a little bit more about what we're doing together sure well you know our relationship goes back years and years with with the Enterprise Linux but over the last few years we've invested heavily in OpenShift and OpenStack to build peope as layers to build you know flexible infrastructure for our clients and we've been working with you we tested many different technology in the marketplace and been more successful with Red Hat and the stack there and I'll give you an applique an example several large European car manufacturers who have connected cars now as a given have been accelerating the applications that needed to be in the car and in the past it took them years if not you know scores to get an application into the car and today we're using open shift as the past layer to develop to enable these DevOps for these companies and they bring applications in less than a month and it's a huge change in the dynamics of the competitiveness in the marketplace and we rely on your team and in helping us drive that capability to our clients yeah do you find it fascinating so many of the stories that you hear and that we've talked about with with our customers is this need for speed and this ability to accelerate and enable a greater degree of innovation by simply accelerating what what we're seeing with our customers absolutely with that plus you know the speed is important agility is really critical but doing it securely doing it doing it in a way that is not gonna destabilize the you know the broader ecosystem is really critical and things like GDP are which is a new security standard in Europe is something that a lot of our customers worry about they need help with and we're one of the partners that know what that really is all about and how to navigate within that and use not prevent them from using the new technologies yeah I will say it isn't just the speed of the external but the security and the regulation especially GDR we have spent an hour on that with our board this week there you go he said well thank you so much for being here really to appreciate the work that we're doing together and look forward to continued same here thank you thank you [Applause] we've had a great partnership with tea systems over the years and we've really taken it to the next level and what's really exciting about that is you know we've moved beyond just helping kind of host systems for our customers we really are jointly enabling their success and it's really exciting and we're really excited about what we're able to to jointly accomplish so next i'm really excited that we have our innovation award winners here and we'll have on stage with us our innovation award winners this year our BBVA dnm IAG lasat Lufthansa Technik and UPS and yet they're all working in one for specific technology initiatives that they're doing that really really stand out and are really really exciting you'll have a chance to learn a lot more about those through the course of the event over the next couple of days but in this context what I found fascinating is they were each addressing a different point of this configure enable engage and I thought it would be really great for you all to hear about how they're experimenting and working to solve these problems you know real-time large organizations you know happening now let's start with the video to see what they think about when they think about innovation I define innovation is something that's changing the model changing the way of thinking not just a step change improvement not just making something better but actually taking a look at what already exists and then putting them together in new and exciting lives innovation is about to build something nobody has done before historically we had a statement that business drives technology we flip that equation around an IT is now demonstrating to the business at power of technology innovation desde el punto de vista de la tecnología supone salir de plataform as proprietary as ADA Madero cloud basado an open source it's a possibility the open source que no parameter no sir Kamala and I think way that for me open-source stands for flexibility speed security the community and that contribution from the community is really driving innovation innovation at a pace that I don't think our one individual organization could actually do ourselves right so first I'd like to talk with BBVA I love this story because as you know Financial Services is going through a massive set of transformations and BBVA really is at the leading edge of thinking about how to deploy a hybrid cloud strategy and kind of modular layered architecture to be successful regardless of what happens in the future so with that I'd like to welcome on stage Jose Maria Rosetta from BBVA [Music] thank you for being here and congratulations on your innovation award it's been a pleasure to be here with you it's great to have you hi everybody so Josemaria for those who might not be familiar with BBVA can you give us a little bit of background on your company yeah a brief description BBVA is is a bank as a financial institution with diversified business model and that provides well financial services to more than 73 million of customers in more than 20 countries great and I know we've worked with you for a long time so we appreciate that the partnership with you so I thought I'd start with a really easy question for you how will blockchain you know impact financial services in the next five years I've gotten no idea but if someone knows the answer I've got a job for him for him up a pretty good job indeed you know oh all right well let me go a little easier then so how will the global payments industry change in the next you know four or five years five years well I think you need a a Weezer well I tried to make my best prediction means that in five years just probably will be five years older good answer I like that I always abstract up I hope so I hope so yah-yah-yah hope so good point so you know immediately that's the obvious question you have a massive technology infrastructure is a global bank how do you prepare yourself to enable the organization to be successful when you really don't know what the future is gonna be well global banks and wealth BBBS a global gam Bank a certain component foundations you know today I would like to talk about risk and efficiency so World Bank's deal with risk with the market great the operational reputational risk and so on so risk control is part of all or DNA you know and when you've got millions of customers you know efficiency efficiency is a must so I think there's no problem with all these foundations they problem the problem analyze the problems appears when when banks translate these foundations is valued into technology so risk control or risk management avoid risk usually means by the most expensive proprietary technology in the market you know from one of the biggest software companies in the world you know so probably all of you there are so those people in the room were glad to hear you say that yeah probably my guess the name of those companies around San Francisco most of them and efficiency usually means a savory business unit as every department or country has his own specific needs by a specific solution for them so imagine yourself working in a data center full of silos with many different Hardware operating systems different languages and complex interfaces to communicate among them you know not always documented what really never documented so your life your life in is not easy you know in this scenario are well there's no room for innovation so what's been or or strategy be BES ready to move forward in this new digital world well we've chosen a different approach which is quite simple is to replace all local proprietary system by a global platform based on on open source with three main goals you know the first one is reduce the average transaction cost to one-third the second one is increase or developers productivity five times you know and the third is enable or delete the business be able to deliver solutions of three times faster so you're not quite easy Wow and everything with the same reliability as on security standards as we've got today Wow that is an extraordinary set of objectives and I will say their world on the path of making that successful which is just amazing yeah okay this is a long journey sometimes a tough journey you know to be honest so we decided to partnership with the with the best companies in there in the world and world record we think rate cut is one of these companies so we think or your values and your knowledge is critical for BBVA and well as I mentioned before our collaboration started some time ago you know and just an example in today in BBVA a Spain being one of the biggest banks in in the country you know and using red hat technology of course our firm and fronting architecture you know for mobile and internet channels runs the ninety five percent of our customers request this is approximately 3,000 requests per second and our back in architecture execute 70 millions of business transactions a day this is almost a 50% of total online transactions executed in the country so it's all running yes running I hope so you check for you came on stage it's I'll be flying you know okay good there's no wood up here to knock on it's been a really great partnership it's been a pleasure yeah thank you so much for being here thank you thank you [Applause] I do love that story because again so much of what we talk about when we when we talk about preparing for digital is a processed solution and again things like agile and DevOps and modular izing components of work but this idea of thinking about platforms broadly and how they can run anywhere and actually delivering it delivering at a scale it's just a phenomenal project and experience and in the progress they've made it's a great team so next up we have two organizations that have done an exceptional job of enabling their people with the right information and the tools they need to be successful you know in both of these cases these are organizations who are under constant change and so leveraging the power of open-source to help them build these tools to enable and you'll see it the size and the scale of these in two very very different contexts it's great to see and so I'd like to welcome on stage Oh smart alza' with dnm and David Abraham's with IAG [Music] Oh smart welcome thank you so much for being here Dave great to see you thank you appreciate you being here and congratulations to you both on winning the Innovation Awards thank you so Omar I really found your story fascinating and how you're able to enable your people with data which is just significantly accelerated the pace with which they can make decisions and accelerate your ability to to act could you tell us a little more about the project and then what you're doing Jim and Tina when the muchisimas gracias por ever say interesado pono true projecto [Music] encargado registry controller las entradas a leda's persona por la Frontera argentina yo sé de dos siento treinta siete puestos de contrôle tienen lo largo de la Frontera tanto area the restreamer it EEMA e if looool in dilute ammonia shame or cinta me Jonas the tránsito sacra he trod on in another Fronteras dingus idea idea de la Magneto la cual estamos hablando la Frontera cantina tienen extension the kin same in kilo metros esto es el gada mint a maje or allege Estancia kaeun a poor carretera a la co de mexico con el akka a direction emulation s 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calidad de vida de atras de mettre personas SI y meet our que el delito perform a trois Natura from Dana's Argentine sigue siendo en favor de esto SI temes uno de los países mess Alberto's Allah immigration en Latin America yah hora con una plataforma mas segunda first of all I want to thank you for the interest is played for our project the National migration administration or diem records the entry and exit of people on the Argentine territory it grants residents permits to foreigners who wish to live in our country through 237 entry points land air border sea and river ways Jim dnm registered over 80 million transits throughout last year Argentine borders cover about 15,000 kilometers just our just to give you an idea of the magnitude of our borders this is greater than the distance on a highway between Mexico City and Alaska our department applies the mechanisms that prevent the entry and residents of people involved in crimes like terrorism trafficking of persons weapons drugs and others in 2016 we shifted to a more preventive and predictive paradigm that is how Sam's the system for migration analysis was created with red hats great assistance and support this allowed us to tackle the challenge of integrating multiple and varied issues legal issues police databases national and international security organizations like Interpol API advanced passenger information and PNR passenger name record this involved starting private cloud with OpenShift Rev data virtualization cloud forms and fuse that were the basis to develop Sam and implementing machine learning models and artificial intelligence our analysts consulted a number of systems and other manual files before 2016 4 days for each person entering or leaving the country so this has allowed us to optimize our decisions making them in real time each time Sam is consulted it processes patterns of over two billion data entries Sam's aim is to improve the quality of life of our citizens and visitors making sure that crime doesn't pierce our borders in an environment of analytic evolution and constant improvement in essence Sam contributes toward Argentina being one of the leaders in Latin America in terms of immigration with our new system great thank you and and so Dave tell us a little more about the insurance industry and the challenges in the EU face yeah sure so you know in the insurance industry it's a it's been a bit sort of insulated from a lot of major change in disruption just purely from the fact that it's highly regulated and the cost of so that the barrier to entry is quite high in fact if you think about insurance you know you have to have capital reserves to protect against those major events like floods bush fires and so on but the whole thing is a lot of change there's come in a really rapid pace I'm also in the areas of customer expectations you know customers and now looking and expecting for the same levels of flexibility and convenience that they would experience with more modern and new startups they're expecting out of the older institutions like banks and insurance companies like us so definitely expecting the industry to to be a lot more adaptable and to better meet their needs I think the other aspect of it really is in the data the data area where I think that the donor is now creating a much more significant connection between organizations in a car summers especially when you think about the level of devices that are now enabled and the sheer growth of data that's that that's growing at exponential rates so so that the impact then is that the systems that we used to rely on are the technology we used to rely on to be able to handle that kind of growth no longer keeps up and is able to to you know build for the future so we need to sort of change that so what I G's really doing is transform transforming the organization to become a lot more efficient focus more on customers and and really set ourselves up to be agile and adaptive and so ya know as part of your Innovation Award that the specific set of projects you tied a huge amount of different disparate systems together and with M&A and other you have a lot to do there to you tell us a little more about kind of how you're able to better respond to customer needs by being able to do that yeah no you're right so we've we've we're nearly a hundred year old company that's grown from lots of merger and acquisition and just as a result of that that means that data's been sort of spread out and fragmented across multiple brands and multiple products and so the number one sort of issue and problem that we were hearing was that it was too hard to get access to data and it's highly complicated which is not great from a company from our perspective really because because we are a data company right that's what we do we we collect data about people what they what's important to them what they value and the environment in which they live so that we can understand that risk and better manage and protect those people so what we're doing is we're trying to make and what we have been doing is making data more open and accessible and and by that I mean making data more of easily available for people to use it to make decisions in their day-to-day activity and to do that what we've done is built a single data platform across the group that unifies the data into a single source of truth that we can then build on top of that single views of customers for example that puts the right information into the into the hands of the people that need it the most and so now why does open source play such a big part in doing that I know there are a lot of different solutions that could get you there sure well firstly I think I've been sauce has been k2 these and really it's been key because we've basically started started from scratch to build this this new next-generation data platform based on entirely open-source you know using great components like Kafka and Postgres and airflow and and and and and then fundamentally building on top of red Red Hat OpenStack right to power all that and they give us the flexibility that we need to be able to make things happen much faster for example we were just talking to the pivotal guys earlier this week here and some of the stuff that we're doing they're they're things quite interesting innovative writes even sort of maybe first in the world where we've taken the older sort of appliance and dedicated sort of massive parallel processing unit and ported that over onto red Red Hat OpenStack right which is now giving us a lot more flexibility for scale in a much more efficient way but you're right though that we've come from in the past a more traditional approach to to using vendor based technology right which was good back then when you know technology solutions could last for around 10 years or so on and and that was fine but now that we need to move much faster we've had to rethink that and and so our focus has been on using you know more commoditized open source technology built by communities to give us that adaptability and sort of remove the locking in there any entrenchment of technology so that's really helped us but but I think that the last point that's been really critical to us is is answering that that concern and question about ongoing support and maintenance right so you know in a regular environment the regulator is really concerned about anything that could fundamentally impact business operation and and so the question is always about what happens when something goes wrong who's going to be there to support you which is where the value of the the partnership we have with Red Hat has really come into its own right and what what it's done is is it's actually giving us the best of both worlds a means that we can we can leverage and use and and and you know take some of the technology that's being developed by great communities in the open source way but also partner with a trusted partner in red had to say you know they're going to stand behind that community and provide that support when we needed the most so that's been the kind of the real value out of that partnership okay well I appreciate I love the story it's how do you move quickly leverage the power community but do it in a safe secure way and I love the idea of your literally empowering people with machine learning and AI at the moment when they need it it's just an incredible story so thank you so much for being here appreciate it thank you [Applause] you know again you see in these the the importance of enabling people with data and in an old-world was so much data was created with a system in mind versus data is a separate asset that needs to be available real time to anyone is a theme we hear over and over and over again and so you know really looking at open source solutions that allow that flexibility and keep data from getting locked into proprietary silos you know is a theme that we've I've heard over and over over the past year with many of our customers so I love logistics I'm a geek that way I come from that background in the past and I know that running large complex operations requires flawless execution and that requires great data and we have two great examples today around how to engage own organizations in new and more effective ways in the case of lufthansa technik literally IT became the business so it wasn't enabling the business it became the business offering and importantly went from idea to delivery to customers in a hundred days and so this theme of speed and the importance of speed it's a it's a great story you'll hear more about and then also at UPS UPS again I talked a little earlier about IT used to be kind of the long pole in the tent the thing that was slow moving because of the technology but UPS is showing that IT can actually drive the business and the cadence of business even faster by demonstrating the power and potential of technology to engage in this case hundreds of thousands of people to make decisions real-time in the face of obviously constant change around weather mechanicals and all the different things that can happen in a large logistics operation like that so I'd like to welcome on stage to be us more from Lufthansa Technik and Nick Castillo from ups to be us welcome thank you for being here Nick thank you thank you Jim and congratulations on your Innovation Awards oh thank you it's a great honor so to be us let's start with you can you tell us a little bit more about what a viet are is yeah avatars are a digital platform offering features like aircraft condition analytics reliability management and predictive maintenance and it helps airlines worldwide to digitize and improve their operations so all of the features work and can be used separately or generate even more where you burn combined and finally we decided to set up a viet as an open platform that means that we avoid the whole aviation industry to join the community and develop ideas on our platform and to be as one of things i found really fascinating about this is that you had a mandate to do this at a hundred days and you ultimately delivered on it you tell us a little bit about that i mean nothing in aviation moves that fast yeah that's been a big challenge so in the beginning of our story the Lufthansa bot asked us to develop somehow digital to win of an aircraft within just hundred days and to deliver something of value within 100 days means you cannot spend much time and producing specifications in terms of paper etc so for us it was pretty clear that we should go for an angel approach and immediately start and developing ideas so we put the best experts we know just in one room and let them start to work and on day 2 I think we already had the first scribbles for the UI on day 5 we wrote the first lines of code and we were able to do that because it has been a major advantage for us to already have four technologies taken place it's based on open source and especially rated solutions because we did not have to waste any time setting up the infrastructure and since we wanted to get feedback very fast we were certainly visited an airline from the Lufthansa group already on day 30 and showed them the first results and got a lot of feedback and because from the very beginning customer centricity has been an important aspect for us and changing the direction based on customer feedback has become quite normal for us over time yeah it's an interesting story not only engaging the people internally but be able to engage with a with that with a launch customer like that and get feedback along the way as it's great thing how is it going overall since launch yeah since the launch last year in April we generated much interest in the industry as well from Airlines as from competitors and in the following month we focused on a few Airlines which had been open minded and already advanced in digital activities and we've got a lot of feedback by working with them and we're able to improve our products by developing new features for example we learned that data integration can become quite complex in the industry and therefore we developed a new feature called quick boarding allowing Airlines to integrate into the via table platform within one day using a self-service so and currently we're heading for the next steps beyond predictive maintenance working on process automation and prescriptive prescriptive maintenance because we believe prediction without fulfillment still isn't enough it really is a great example of even once you're out there quickly continuing to innovate change react it's great to see so Nick I mean we all know ups I'm still always blown away by the size and scale of the company and the logistics operations that you run you tell us a little more about the project and what we're doing together yeah sure Jim and you know first of all I think I didn't get the sportcoat memo I think I'm the first one up here today with a sport coat but you know first on you know on behalf of the 430,000 ups was around the world and our just world-class talented team of 5,000 IT professionals I have to tell you we're humbled to be one of this year's red hat Innovation Award recipients so we really appreciate that you know as a global logistics provider we deliver about 20 million packages each day and we've got a portfolio of technologies both operational and customer tech and another customer facing side the power what we call the UPS smart logistics network and I gotta tell you innovations in our DNA technology is at the core of everything we do you know from the ever familiar first and industry mobile platform that a lot of you see when you get delivered a package which we call the diad which believe it or not we delivered in 1992 my choice a data-driven solution that drives over 40 million of our my choice customers I'm whatever you know what this is great he loves logistics he's a my choice customer you could be one too by the way there's a free app in the App Store but it provides unmatched visibility and really controls that last mile delivery experience so now today we're gonna talk about the solution that we're recognized for which is called site which is part of a much greater platform that we call edge which is transforming how our package delivery teams operate providing them real-time insights into our operations you know this allows them to make decisions based on data from 32 disparate data sources and these insights help us to optimize our operations but more importantly they help us improve the delivery experience for our customers just like you Jim you know on the on the back end is Big Data and it's on a large scale our systems are crunching billions of events to render those insights on an easy-to-use mobile platform in real time I got to tell you placing that information in our operators hands makes ups agile and being agile being able to react to changing conditions as you know is the name of the game in logistics now we built edge in our private cloud where Red Hat technologies play a very important role as part of our overage overarching cloud strategy and our migration to agile and DevOps so it's it's amazing it's amazing the size and scale so so you have this technology vision around engaging people in a more effect way those are my word not yours but but I'd be at that's how it certainly feels and so tell us a little more about how that enables the hundreds of thousands people to make better decisions every day yep so you know we're a people company and the edge platform is really the latest in a series of solutions to really empower our people and really power that smart logistics network you know we've been deploying technology believe it or not since we founded the company in 1907 we'll be a hundred and eleven years old this August it's just a phenomenal story now prior to edge and specifically the syphon ishutin firm ation from a number of disparate systems and reports they then need to manually look across these various data sources and and frankly it was inefficient and prone to inaccuracy and it wasn't really real-time at all now edge consumes data as I mentioned earlier from 32 disparate systems it allows our operators to make decisions on staffing equipment the flow of packages through the buildings in real time the ability to give our people on the ground the most up-to-date data allows them to make informed decisions now that's incredibly empowering because not only are they influencing their local operations but frankly they're influencing the entire global network it's truly extraordinary and so why open source and open shift in particular as part of that solution yeah you know so as I mentioned Red Hat and Red Hat technology you know specifically open shift there's really core to our cloud strategy and to our DevOps strategy the tools and environments that we've partnered with Red Hat to put in place truly are foundational and they've fundamentally changed the way we develop and deploy our systems you know I heard Jose talk earlier you know we had complex solutions that used to take 12 to 18 months to develop and deliver to market today we deliver those same solutions same level of complexity in months and even weeks now openshift enables us to container raise our workloads that run in our private cloud during normal operating periods but as we scale our business during our holiday peak season which is a very sure window about five weeks during the year last year as a matter of fact we delivered seven hundred and sixty-two million packages in that small window and our transactions our systems they just spiked dramatically during that period we think that having open shift will allow us in those peak periods to seamlessly move workloads to the public cloud so we can take advantage of burst capacity economically when needed and I have to tell you having this flexibility I think is key because you know ultimately it's going to allow us to react quickly to customer demands when needed dial back capacity when we don't need that capacity and I have to say it's a really great story of UPS and red hat working you together it really is a great story is just amazing again the size and scope but both stories here a lot speed speed speed getting to market quickly being able to try things it's great lessons learned for all of us the importance of being able to operate at a fundamentally different clock speed so thank you all for being here very much appreciated congratulate thank you [Applause] [Music] alright so while it's great to hear from our Innovation Award winners and it should be no surprise that they're leading and experimenting in some really interesting areas its scale so I hope that you got a chance to learn something from these interviews you'll have an opportunity to learn more about them you'll also have an opportunity to vote on the innovator of the year you can do that on the Red Hat summit mobile app or on the Red Hat Innovation Awards homepage you can learn even more about their stories and you'll have a chance to vote and I'll be back tomorrow to announce the the summit winner so next I like to spend a few minutes on talking about how Red Hat is working to catalyze our customers efforts Marko bill Peter our senior vice president of customer experience and engagement and John Alessio our vice president of global services will both describe areas in how we are working to configure our own organization to effectively engage with our customers to use open source to help drive their success so with that I'd like to welcome marquel on stage [Music] good morning good morning thank you Jim so I want to spend a few minutes to talk about how we are configured how we are configured towards your success how we enable internally as well to work towards your success and actually engage as well you know Paul yesterday talked about the open source culture and our open source development net model you know there's a lot of attributes that we have like transparency meritocracy collaboration those are the key of our culture they made RedHat what it is today and what it will be in the future but we also added our passion for customer success to that let me tell you this is kind of the configuration from a cultural perspective let me tell you a little bit on what that means so if you heard the name my organization is customer experience and engagement right in the past we talked a lot about support it's an important part of the Red Hat right and how we are configured we are configured probably very uniquely in the industry we put support together we have product security in there we add a documentation we add a quality engineering into an organization you think there's like wow why are they doing it we're also running actually the IT team for actually the product teams why are we doing that now you can imagine right we want to go through what you see as well right and I'll give you a few examples on how what's coming out of this configuration we invest more and more in testing integration and use cases which you are applying so you can see it between the support team experiencing a lot what you do and actually changing our test structure that makes a lot of sense we are investing more and more testing outside the boundaries so not exactly how things must fall by product management or engineering but also how does it really run in an environment that you operate we run complex setups internally right taking openshift putting in OpenStack using software-defined storage underneath managing it with cloud forms managing it if inside we do that we want to see how that works right we are reshaping documentation console to kind of help you better instead of just documenting features and knobs as in how can how do you want to achieve things now part of this is the configuration that are the big part of the configuration is the voice of the customer to listen to what you say I've been here at Red Hat a few years and one of my passion has always been really hearing from customers how they do it I travel constantly in the world and meet with customers because I want to know what is really going on we use channels like support we use channels like getting from salespeople the interaction from customers we do surveys we do you know we interact with our people to really hear what you do what we also do what maybe not many know and it's also very unique in the industry we have a webpage called you asked reacted we show very transparently you told us this is an area for improvement and it's not just in support it's across the company right build us a better web store build us this we're very transparent about Hades improvements we want to do with you now if you want to be part of the process today go to the feedback zone on the next floor down and talk to my team I might be there as well hit me up we want to hear the feedback this is how we talk about configuration of the organization how we are configured let me go to let me go to another part which is innovation innovation every day and that in my opinion the enable section right we gotta constantly innovate ourselves how do we work with you how do we actually provide better value how do we provide faster responses in support this is what we would I say is is our you know commitment to innovation which is the enabling that Jim talked about and I give you a few examples which I'm really happy and it kind of shows the open source culture at Red Hat our commitment is for innovation I'll give you good example right if you have a few thousand engineers and you empower them you kind of set the business framework as hey this is an area we got to do something you get a lot of good IDs you get a lot of IDs and you got a shape an inter an area that hey this is really something that brings now a few years ago we kind of said or I say is like based on a lot of feedback is we got to get more and more proactive if you customers and so I shaped my team and and I shaped it around how can we be more proactive it started very simple as in like from kbase articles or knowledgebase articles in getting started guys then we started a a tool that we put out called labs you've probably seen them if you're on the technical side really taking small applications out for you to kind of validate is this configured correctly stat configure there was the start then out of that the ideas came and they took different turns and one of the turns that we came out was right at insights that we launched a few years ago and did you see the demo yesterday that in Paul's keynote that they showed how something was broken with one the data centers how it was applied to fix and how has changed this is how innovation really came from the ground up from the support side and turned into something really a being a cornerstone of our strategy and we're keeping it married from the day to day work right you don't want to separate this you want to actually keep that the data that's coming from the support goes in that because that's the power that we saw yesterday in the demo now innovation doesn't stop when you set the challenge so we did the labs we did the insights we just launched a solution engine called solution engine another thing that came out of that challenge is in how do we break complex issues down that it's easier for you to find a solution quicker it's one example but we're also experimenting with AI so insights uses AI as you probably heard yesterday we also use it internally to actually drive faster resolution we did in one case with a a our I bought basically that we get to 25% faster resolution on challenges that you have the beauty for you obviously it's well this is much faster 10% of all our support cases today are supported and assisted by an AI now I'll give you another example of just trying to tell you the innovation that comes out if you configure and enable the team correctly kbase articles are knowledgebase articles we q8 thousands and thousands every year and then I get feedback as and while they're good but they're in English as you can tell my English is perfect so it's not no issue for that but for many of you is maybe like even here even I read it in Japanese so we actually did machine translation because it's too many that we can do manually the using machine translation I can tell it's a funny example two weeks ago I tried it I tried something from English to German I looked at it the German looked really bad I went back but the English was bad so it really translates one to one actually what it does but it's really cool this is innovation that you can apply and the team actually worked on this and really proud on that now the real innovation there is not these tools the real innovation is that you can actually shape it in a way that the innovation comes that you empower the people that's the configure and enable and what I think is all it's important this don't reinvent the plumbing don't start from scratch use systems like containers on open shift to actually build the innovation in a smaller way without reinventing the plumbing you save a lot of issues on security a lot of issues on reinventing the wheel focus on that that's what we do as well if you want to hear more details again go in the second floor now let's talk about the engage that Jim mentioned before what I translate that engage is actually engaging you as a customer towards your success now what does commitment to success really mean and I want to reflect on that on a traditional IT company shows up with you talk the salesperson solution architect works with you consulting implements solution it comes over to support and trust me in a very traditional way the support guy has no clue what actually was sold early on it's what happens right and this is actually I think that red had better that we're not so silent we don't show our internal silos or internal organization that much today we engage in a way it doesn't matter from which team it comes we have a better flow than that you deserve how the sausage is made but we can never forget what was your business objective early on now how is Red Hat different in this and we are very strong in my opinion you might disagree but we are very strong in a virtual accounting right really putting you in the middle and actually having a solution architect work directly with support or consulting involved and driving that together you can also help us in actually really embracing that model if that's also other partners or system integrators integrate put yourself in the middle be around that's how we want to make sure that we don't lose sight of the original business problem trust me reducing the hierarchy or getting rid of hierarchy and bureaucracy goes a long way now this is how we configured this is how we engage and this is how we are committed to your success with that I'm going to introduce you to John Alessio that talks more about some of the innovation done with customers thank you [Music] good morning I'm John Alessio I'm the vice president of Global Services and I'm delighted to be with you here today I'd like to talk to you about a couple of things as it relates to what we've been doing since the last summit in the services organization at the core of everything we did it's very similar to what Marco talked to you about our number one priority is driving our customer success with red hat technology and as you see here on the screen we have a number of different offerings and capabilities all the way from training certification open innovation labs consulting really pairing those capabilities together with what you just heard from Marco in the support or cee organization really that's the journey you all go through from the beginning of discovering what your business challenge is all the way through designing those solutions and deploying them with red hat now the highlight like to highlight a few things of what we've been up to over the last year so if I start with the training and certification team they've been very busy over the last year really updating enhancing our curriculum if you haven't stopped by the booth there's a preview for new capability around our learning community which is a new way of learning and really driving that enable meant in the community because 70% of what you need to know you learned from your peers and so it's a very key part of our learning strategy and in fact we take customer satisfaction with our training and certification business very seriously we survey all of our students coming out of training 93% of our students tell us they're better prepared because of red hat training and certification after Weeds they've completed the course we've updated the courses and we've trained well over a hundred and fifty thousand people over the last two years so it's a very very key part of our strategy and that combined with innovation labs and the consulting operation really drive that overall journey now we've been equally busy in enhancing the system of enablement and support for our business partners another very very key initiative is building out the ecosystem we've enhanced our open platform which is online partner enablement network we've added new capability and in fact much of the training and enablement that we do for our internal consultants our deal is delivered through the open platform now what I'm really impressed with and thankful for our partners is how they are consuming and leveraging this material we train and enable for sales for pre-sales and for delivery and we're up over 70% year in year in our partners that are enabled on RedHat technology let's give our business partners a round of applause now one of our offerings Red Hat open innovation labs I'd like to talk a bit more about and take you through a case study open innovation labs was created two years ago it's really there to help you on your journey in adopting open source technology it's an immersive experience where your team will work side-by-side with Red Hatters to really propel your journey forward in adopting open source technology and in fact we've been very busy since the summit in Boston as you'll see coming up on the screen we've completed dozens of engagements leveraging our methods tools and processes for open innovation labs as you can see we've worked with large and small accounts in fact if you remember summit last year we had a European customer easier AG on stage which was a startup and we worked with them at the very beginning of their business to create capabilities in a very short four-week engagement but over the last year we've also worked with very large customers such as Optim and Delta Airlines here in North America as well as Motability operations in the European arena one of the accounts I want to spend a little bit more time on is Heritage Bank heritage Bank is a community owned bank in Toowoomba Australia their challenge was not just on creating new innovative technology but their challenge was also around cultural transformation how to get people to work together across the silos within their organization we worked with them at all levels of the organization to create a new capability the first engagement went so well that they asked us to come in into a second engagement so I'd like to do now is run a video with Peter lock the chief executive officer of Heritage Bank so he can take you through their experience Heritage Bank is one of the country's oldest financial institutions we have to be smarter we have to be more innovative we have to be more agile we had to change we had to find people to help us make that change the Red Hat lab is the only one that truly helps drive that change with a business problem the change within the team is very visible from the start to now we've gone from being separated to very single goal minded seeing people that I only ever seen before in their cubicles in the room made me smile programmers in their thinking I'm now understanding how the whole process fits together the productivity of IT will change and that is good for our business that's really the value that were looking for the Red Hat innovation labs for us were a really great experience I'm not interested in running an organization I'm interested in making a great organization to say I was pleasantly surprised by it is an understatement I was delighted I love the quote I was delighted makes my heart warm every time I see that video you know since we were at summit for those of you who are with us in Boston some of you went on our hardhat tours we've opened three physical facilities here at Red Hat where we can conduct red head open Innovation Lab engagements Singapore London and Boston were all opened within the last physical year and in fact our site in Boston is paired with our world-class executive briefing center as well so if you haven't been there please do check it out I'd like to now talk to you a bit about a very special engagement that we just recently completed we just recently completed an engagement with UNICEF the United Nations Children's Fund and the the purpose behind this engagement was really to help UNICEF create an open-source platform that marries big data with social good the idea is UNICEF needs to be better prepared to respond to emergency situations and as you can imagine emergency situations are by nature unpredictable you can't really plan for them they can happen anytime anywhere and so we worked with them on a project that we called school mapping and the idea was to provide more insights so that when emergency situations arise UNICEF could do a much better job in helping the children in the region and so we leveraged our Red Hat open innovation lab methods tools processes that you've heard about just like we did at Heritage Bank and the other accounts I mentioned but then we also leveraged Red Hat software technologies so we leveraged OpenShift container platform we leveraged ansible automation we helped the client with a more agile development approach so they could have releases much more frequently and continue to update this over time we created a continuous integration continuous deployment pipeline we worked on containers and container in the application etc with that we've been able to provide a platform that is going to allow for their growth to better respond to these emergency situations let's watch a short video on UNICEF mission of UNICEF innovation is to apply technology to the world's most pressing problems facing children data is changing the landscape of what we do at UNICEF this means that we can figure out what's happening now on the ground who it's happening to and actually respond to it in much more of a real-time manner than we used to be able to do we love working with open source communities because of their commitment that we should be doing good for the world we're actually with red hat building a sandbox where universities or other researchers or data scientists can connect and help us with our work if you want to use data for social good there's so many groups out there that really need your help and there's so many ways to get involved [Music] so let's give a very very warm red hat summit welcome to Erica kochi co-founder of unicef innovation well Erica first of all welcome to Red Hat summit thanks for having me here it's our pleasure and thank you for joining us so Erica I've just talked a bit about kind of what we've been up to and Red Hat services over the last year we talked a bit about our open innovation labs and we did this project the school mapping project together our two teams and I thought the audience might find it interesting from your point of view on why the approach we use in innovation labs was such a good fit for the school mapping project yeah it was a great fit for for two reasons the first is values everything that we do at UNICEF innovation we use open source technology and that's for a couple of reasons because we can take it from one place and very easily move it to other countries around the world we work in 190 countries so that's really important for us not to be able to scale things also because it makes sense we can get we can get more communities involved in this and look not just try to do everything by ourselves but look much open much more openly towards the open source communities out there to help us with our work we can't do it alone yeah and then the second thing is methodology you know the labs are really looking at taking this agile approach to prototyping things trying things failing trying again and that's really necessary when you're developing something new and trying to do something new like mapping every school in the world yeah very challenging work think about it 190 countries Wow and so the open source platform really works well and then the the rapid prototyping was really a good fit so I think the audience might find it interesting on how this application and this platform will help children in Latin America so in a lot of countries in Latin America and many countries throughout the world that UNICEF works in are coming out of either decades of conflict or are are subject to natural disasters and not great infrastructure so it's really important to a for us to know where schools are where communities are well where help is needed what's connected what's not and using a overlay of various sources of data from poverty mapping to satellite imagery to other sources we can really figure out what's happening where resources are where they aren't and so we can plan better to respond to emergencies and to and to really invest in areas that are needed that need that investment excellent excellent it's quite powerful what we were able to do in a relatively short eight or nine week engagement that our two teams did together now many of your colleagues in the audience are using open source today looking to expand their use of open source and I thought you might have some recommendations for them on how they kind of go through that journey and expanding their use of open source since your experience at that yeah for us it was it was very much based on what's this gonna cost we have limited resources and what's how is this gonna spread as quickly as possible mm-hmm and so we really asked ourselves those two questions you know about 10 years ago and what we realized is if we are going to be recommending technologies that governments are going to be using it really needs to be open source they need to have control over it yeah and they need to be working with communities not developing it themselves yeah excellent excellent so I got really inspired with what we were doing here in this project it's one of those you know every customer project is really interesting to me this one kind of pulls a little bit at your heartstrings on what the real impact could be here and so I know some of our colleagues here in the audience may want to get involved how can they get involved well there's many ways to get involved with the other UNICEF or other groups out there you can search for our work on github and there are tasks that you can do right now if and if you're looking for to do she's got work for you and if you want sort of a more a longer engagement or a bigger engagement you can check out our website UNICEF stories org and you can look at the areas you might be interested in and contact us we're always open to collaboration excellent well Erica thank you for being with us here today thank you for the great project we worked on together and have a great summer thank you for being give her a round of applause all right well I hope that's been helpful to you to give you a bit of an update on what we've been focused on in global services the message I'll leave with you is our top priority is customer success as you heard through the story from UNICEF from Heritage Bank and others we can help you innovate where you are today I hope you have a great summit and I'll call out Jim Whitehurst thank you John and thank you Erica that's really an inspiring story we have so many great examples of how individuals and organizations are stepping up to transform in the face of digital disruption I'd like to spend my last few minutes with one real-world example that brings a lot of this together and truly with life-saving impact how many times do you think you can solve a problem which is going to allow a clinician to now save the life I think the challenge all of his physicians are dealing with is data overload I probably look at over 100,000 images in a day and that's just gonna get worse what if it was possible for some computer program to look at these images with them and automatically flag images that might deserve better attention Chris on the surface seems pretty simple but underneath Chris has a lot going on in the past year I've seen Chris Foreman community and a space usually dominated by proprietary software I think Chris can change medicine as we know it today [Music] all right with that I'd like to invite on stage dr. Ellen grant from Boston Children's Hospital dr. grant welcome thank you for being here so dr. grant tell me who is Chris Chris does a lot of work for us and I think Chris is making me or has definitely the potential to make me a better doctor Chris helps us take data from our archives in the hospital and port it to wrap the fastback ends like the mass up and cloud to do rapid data processing and provide it back to me in any format on a desktop an iPad or an iPhone so it it basically brings high-end data analysis right to me at the bedside and that's been a barrier that I struggled with years ago to try to break down so that's where we started with Chris is to to break that barrier between research that occurred on a timeline of days to weeks to months to clinical practice which occurs in the timeline of seconds to minutes well one of things I found really fascinating about this story RedHat in case you can't tell we're really passionate about user driven innovation is this is an example of user driven innovation not directly at a technology company but in medicine excuse me can you tell us just a little bit about the genesis of Chris and how I got started yeah Chris got started when I was running a clinical division and I was very frustrated with not having the latest image analysis tools at my fingertips while I was on clinical practice and I would have to on the research so I could go over and you know do line code and do the data analysis but if I'm always over in clinical I kept forgetting how to do those things and I wanted to have all those innovations that my fingertips and not have to remember all the computer science because I'm a physician not like a better scientist so I wanted to build a platform that gave me easy access to that back-end without having to remember all the details and so that's what Chris does for us is brings allowed me to go into the PAC's grab a dataset send it to a computer and back in to do the analysis and bring it back to me without having to worry about where it was or how it got there that's all involved in the in the platform Chris and why not just go to a vendor and ask them to write a piece of software for you to do that yeah we thought about that and we do a lot of technical innovations and we always work with the experts so we wanted to work with if I'm going to be able to say an optical device I'm going to work with the optical engineers or an EM our system I'm going to work with em our engineers so we wanted to work with people who really knew or the plumbers so to speak of the software in industry so we ended up working with the massive point cloud for the platform and the distributed systems in Red Hat as the infrastructure that's starting to support Chris and that's been actually a really incredible journey for us because medical ready medical softwares not typically been a community process and that's something that working with dan from Red Hat we learned a lot about how to participate in an open community and I think our team has grown a lot as a result of that collaboration and I know you we've talked about in the past that getting this data locked into a proprietary system you may not be able to get out there's a real issue can you talk about the importance of open and how that's worked in the process yeah and I think for the medical community and I find this resonates with other physicians as well too is that it's medical data we want to continue to own and we feel very awkward about giving it to industry so we would rather have our data sitting in an open cloud like the mass open cloud where we can have a data consortium that oversees the data governance so that we're not giving our data way to somebody else but have a platform that we can still keep a control of our own data and I think it's going to be the future because we're running of a space in the hospital we generate so much data and it's just going to get worse as I was mentioning and all the systems run faster we get new devices so the amount of data that we have to filter through is just astronomically increasing so we need to have resources to store and compute on such large databases and so thinking about where this could go I mean this is a classic feels like an open-source project it started really really small with a originally modest set of goals and it's just kind of continue to grow and grow and grow it's a lot like if yes leanest torval Linux would be in 1995 you probably wouldn't think it would be where it is now so if you dream with me a little bit where do you think this could possibly go in the next five years ten years what I hope it'll do is allow us to break down the silos within the hospital because to do the best job at what we physicians do not only do we have to talk and collaborate together as individuals we have to take the data each each community develops and be able to bring it together so in other words I need to be able to bring in information from vital monitors from mr scans from optical devices from genetic tests electronic health record and be able to analyze on all that data combined so ideally this would be a platform that breaks down those information barriers in a hospital and also allows us to collaborate across multiple institutions because many disorders you only see a few in each hospital so we really have to work as teams in the medical community to combine our data together and also I'm hoping that and we even have discussions with people in the developing world because they have systems to generate or to got to create data or say for example an M R system they can't create data but they don't have the resources to analyze on it so this would be a portable for them to participate in this growing data analysis world without having to have the infrastructure there and be a portal into our back-end and we could provide the infrastructure to do the data analysis it really is truly amazing to see how it's just continued to grow and grow and expand it really is it's a phenomenal story thank you so much for being here appreciate it thank you [Applause] I really do love that story it's a great example of user driven innovation you know in a different industry than in technology and you know recognizing that a clinicians need for real-time information is very different than a researchers need you know in projects that can last weeks and months and so rather than trying to get an industry to pivot and change it's a great opportunity to use a user driven approach to directly meet those needs so we still have a long way to go we have two more days of the summit and as I said yesterday you know we're not here to give you all the answers we're here to convene the conversation so I hope you will have an opportunity today and tomorrow to meet some new people to share some ideas we're really really excited about what we can all do when we work together so I hope you found today valuable we still have a lot more happening on the main stage as well this afternoon please join us back for the general session it's a really amazing lineup you'll hear from the women and opensource Award winners you'll also hear more about our collab program which is really cool it's getting middle school girls interested in open sourcing coding and so you'll have an opportunity to see some people involved in that you'll also hear from the open source Story speakers and you'll including in that you will see a demo done by a technologist who happens to be 11 years old so really cool you don't want to miss that so I look forward to seeing you then this afternoon thank you [Applause]

>> Announcer: Live from Las Vegas, it's theCUBE, covering Dell EMC World 2017, brought to you by Dell EMC. >> Hey, welcome back everyone. We're here live in Las Vegas for Dell EMC World 2017. This is theCUBE's eighth year of covering, since the inception of theCUBE. EMC World, which is now called Dell EMC, with the first year of the combination coming together. Exciting, a lot of storylines here. I'm John Furrier with SiliconANGLE, and my co-host with SiliconANGLE, Paul Gillin. Our next guest, Jeff Boudreau, who's the president of Dell EMC Storage Division. It sounds weird to say that because EMC used to be a storage company. Now, they're a part of Dell Technologies with a zillion brands. Jeff, welcome to theCUBE. >> Thank you for having me. >> So first, explain quickly what the storage division is, because Chad Sakac does converge infrastructure, but, you own all the storage. >> Jeff: Correct. >> So just quickly, just. >> Yeah, real quick, keeping it simple, if you think about the components and the building blocks, you have Ashley running compute, you have Tom Burns running network, you have myself running storage, and you have Beth Phalen running data protection, and then Chad's the converge platform, so when we integrate the solution, Chad has that piece. So yes, all storage, and that would be Legacy or Heritage Dell storage, but also Heritage and Legacy EMC storage. All that came together so, just massive revenue, massive amounts of customers, and then obviously tons of engineers around the world. >> You got a lot of work to do. Obviously storage is not going away. It's changing radically and in different ways. Certainly cloud is accelerating it. The data center world is changing. They call it data center. They don't call it server center. They call it the data center 'cause there's more data coming. So I got to ask you, one of my favorite quotes in your keynote this morning was, "We have self-driving cars. "Why don't we have self-driving storage "or autonomous storage?" Which is provocative, but also very relevant. Can you explain what you meant by that, and let's dig deeper into that. >> Yeah. I mean, actually, it's one of my favorite topics, actually. So I have these notions of the pillars of innovation, right? And I want to start looking at, to your point, things are changing in the markets and in the way customers are using our products, and I want to embrace that change and innovate around that change. The notion of the day in the life of the storage admin, or the day in the life of the data center admin, and the day in the life of just about anybody using the product. We got to make it simpler, right? It goes back to consumer simplicity, a lot of this stuff. What we're trying to do there is actually make the storage be smart enough to actually just take care of itself. It's kind of the set it and forget it notion. So, as part of autonomous storage, we look at four attributes simplistically, in regards to how you would have a self-driving system. The first one is about being application-centric, 'cause, at the end of the day, it's all about the app and the workload. We all know that, right, and that's what the users care about. So the way I kind of looked at that this morning is, the example is, that's like telling your car where you want to go, or is it a turn-by-turn decision, right, that you would give it? The second thing is about being policy driven. I'm not going to say, hey listen, do I want to take the fastest route or do I want to take the scenic route? >> John: Yep. >> Right, simplistically. And then, I'm going to be honest, that stuff's relatively easy and we do a bunch of that stuff today. Really when it starts to get the next level is when this stuff becomes self-aware, right? Understanding its resources, and then understanding if you're in or out of those boundaries. So, am I, you know, swerving out of my lane? Do I have enough gas? Dot, dot, dot, right, as an example. And then where it gets really powerful is the fourth component for me, is self-optimization. That's being able to understanding what, you're self-aware and then making a better outcome for your customer. At the end of the day, that could be, hey, there's not enough charging stations to get to your destination, or you don't have enough charge, or better yet, the storage will actually or the system would tell you, hey take this path. There's enough charging stations. I'll get you there on time and safely, right? >> So you'd be very happy if you had the brand bumper sticker of the Tesla of storage. >> Absolutely. >> To your point about the stations, you know, people love Teslas. It's very sexy and it's relevant. I got to ask you about machine learning. It's obviously AIs hyped-up. We call it, not artificial intelligence, more augmented intelligence. That's a better definition because artificial intelligence is this weak, weak word. (laughing) It doesn't really exist, it's kind of out there. But, augmentation of value is about machine learning and deep learning. These are the learning systems you mentioned. Self-optimization, that's basically learning machines. >> That's right. >> What are you guys doing around big data, I meant big data machine learning and some of these things? >> So we're doing a handful of things. So along the keynote, I mentioned builtin analytics. That's two things, you know. Dell EMC, we store, protect and secure more data than anybody else in the world, par or not. So, you know and I used to joke, EMC used to be known for where information lives. Dell Technologies and Dell EMC has to be known for where information comes alive, right? And actually providing value or generating value for our customers. So, what we're going to do is, we're going to have builtin capabilities into the array, but also we're going to plug into the broader ecosystem, you know, with analytics and service providers to really help drive that value and that creation. So, you'll see a lot more around the storage itself around that self-learning and understanding. That kind of, the core components of an array. What makes it run healthy or unhealthy enables the customer to better utilize and add more value to their stack. Then also, going into that broader ecosystem, making sure that they can really drop that value to their customers and to their business. >> What pieces will you be delivering first? >> On the storage side itself, specifically, we'll be, we already have a lot of products that have probably two or three of the capabilities. So between app-centric, policy driven, and self-awareness, those are the ones we're on right now, big time. And I have a team focused on the machine learning, so we can really start self-optimizing. We actually just, we mentioned, I don't know if the guys that were on, where all the folks we've had on the show talked about a thing called cloud IQ? >> Paul: Yes, they did. >> That was something that we built a SAS model in the cloud, which is all about machine learning. >> So, that's part of this whole rollout, is moving to the cloud eventually. >> Oh, absolutely. It's critical. >> So another quote that I have off from your keynote, because it had some great soundbites, Isilon, one of the products in your portfolio, "Isilon is known to be the gold standard "for storage in the genome sequencing." Obviously, with the massive amounts of computers available, certainly cloud computing has now made it possible to do amazing things with the data, and make that literally come alive, and hopefully people could live longer. But, genome sequencing is actually doable, and price points at. >> It's crazy, probably the last two years alone, it's dramatically and drastically just reduced. >> But why is Isilon the gold standard for sequence? What specifically is it that's great about it? >> Well, it basically, in regards to the data structure and how we can process that big data, and make sense of it quickly as we analyze it, there's nothing faster in the market. And it'd be interesting, and now that we've brought out the Isilon All-Flash array with the new infinity platform, we've taken something that, two years ago took weeks, down to days, down to hours, and with the All-Flash array we've taken it down to minutes, 22 minutes to be exact. >> So I got to to ask you, I'll let you think about the portfolio question and I'm going to ask in about a minute how you're going to rectify all that, where the overlap is or isn't, so you can work on that, but the next question is, the industry, you're not seeing a lot of start-ups trying to do what Isilon did. You heard Isilon guys leaving, starting companies, and everyone's kind of pivoting, but you are seeing startups in the white spaces, data protection, so question, how hard is it to do a startup right now and get venture funding, because it seems to be scale is the issue, and it's hard to be a, quote, pure storage company, pun intended. Pure Storage was the last company to challenge you guys. (laughing) >> You know, I've also thrown that app in there as well, it's standing on their own, regardless of that. But, let's be clear, this market is consolidating. That's good for us, no ifs, ands, or buts about it. So, with our size and scale, Dell and EMC, and Dell Technologies together, our size, our scale, our buying power, unmatched by anybody. It's going to be hard, for you know, there's a lot of companies. >> Hard nut to crack, for a start up to come in and it could be the table stakes are too high. >> So in regards, the innovation, spending R&D, value chain that we get, efficiency, buying power, intel, I mean think about all the stuff around the whole ecosystem, it's just really hard to do, so this market is consolidating. We're good with that. What I want to do is consolidate this market faster, and I want to drive more share of this market in regards to that, and I think it's really tough. So, you've seen small guys be bought recently. Some guys that aren't doing well. Some people, >> Acquihires. >> Maybe some of these orange people are really in the red, going back to your pun. So, they're struggling, right, some of these guys are struggling, so I really think this is an opportunity, as we force this market as it consolidates, for us, I think it's a real big thing. >> Alright, so the question on the consolidation, sorry Paul to interrupt, but okay. I get the consolidation. Now the growth, we're going to put the pedal to the medal. It's going to come from where? You got a mature market, you're consolidating. You lock that in, so that's big dollars by the way. It's not like small numbers, and the table stakes are high so, storage going to crack that nut. Then you got to have the growth strategy where there's a hockey stick opportunity. >> Yeah, so, from a storage perspective, let's be clear, they're going to have the growth. It's going to come through things like HTI. It's going to come through things like software-defined, in regards to how we do that, right? That's obviously part of, software-defined is part of my portfolio as well, so, it will be a journey in regards to where we grow. The traditional space is huge, let's be very clear. It's massive, right. We have to do that and do that extremely well, and protect that, and make sure our customers are taken care of, but as they go on their journey, if it's software-defined, or cloud, or what have you, we want to make sure we're relevant can help with that. So, one will be taking share in that space, there'll be opportunities as the consumption models, the technology, and the deployment models change, we'll be front and center in all of those. >> Speaking of software-defined, essentially that can deposition some of the storage elements below it. Cisco is wrestling with that right now. Where they sort of held off for a couple of years on software-defined network, and they're finally embracing it. What are you doing to balance the need for your, the elements of your portfolio to shine, with also the need to get customers to software definition? >> Absolutely, so, right now, I mean, it's a journey. Let's be clear, right, so, I have a, actually, a large customer that was on stage with me. I'll leave their name out, if anyone wants to watch who I talked to on day one, they'll know who I'm talking about. They're on a journey. Right now, today, they're probably one of the, I would say, leaders in software-defined storage and driving software-defined storage is part of their IT transformation and their data centers. They're 20% software-defined, 80% still traditional physical infrastructure. They have a big stake in the ground. In three or four short years, 2020, they're going to be 50/50. Right, and these the guys that are leading and driving. So just give the folks a little bit of balance in regards to yes, that's where their growth will come from, this is where the appeal is, but it will be a journey in how we get through that, but also for me, going back to scale and Dell Technologies, I have products like Scale IO. I have virtual Isilon, I have virtual Unity. In regards to what we do with ECS, that's an object store, so file blocker object, we have it. And then I have wonderful 14G servers from my friend Ashley in the compute team. Go well together. >> So, Pat Gelsinger's talking about a developer-ready infrastructure. You've mentioned on your keynote, I thought was clever, the cloud-ready storage. Talk about that dynamic because, love this soundbite, "Storage has to be cloud ready, cloud connected, "build out on off prim, and live in a multi-cloud world." Don't comment on the multi-cloud. We think that's going to happen. Not ready for primetime right now. I'm pretty certainly it is happening. Their is some latency issues on multi-cloud. >> Sure >> We don't want to digress. But hybrid is definitely happening, but multi-cloud is the gateway, hybrid cloud is the gateway to multi-cloud. Dealing with legacy to cloud native, that gap with hybrid. How do you look at that, cause that's truly going to be a great opportunity for you, and being cloud storage ready, I'm sorry, cloud ready. >> Cloud ready. >> Ready storage, how do you make that happen? >> Yeah, so, cloud connections is one of the big ones for me. So, the ability to connect to the cloud and allow people to move, seamlessly move data in and out of the cloud. So depending if it's a traditional on prim or off prim, so we have great technologies for file, we have CTA, which is a cloud tiering appliance, all file based, gets rave reviews from our customers and we're able to help them not only on our products but actually on some competitor file products to move it off to the cloud if need be, which has actually been a pretty big win for us. In addition to that, Isilon has a notion of cloud pools that people haven't seen, but again it's a transparent seamless data mobility from Isilon, from core to the cloud, if you will. Then, lastly we have a cloud array, which is a block device that allows us to move block data from a traditional asset into the cloud as well, so, we have a handful of products or features that are natively in certain products today. We'll be evolving that over time. >> You got everything! >> Well we'll be evolving that over time too, so we want to have a more coherent simple storage for our customers, right? It doesn't matter what the data type is, we want to be able to present it to the cloud. >> But you, by that I mean EMC, were late to the Flash market, but have caught up, are now the leaders in the Flash market. Phenomenal growth year over year. What did you do to pull that off? That's kind of counter-intuitive. >> Focus and energy, and a lot of great engineers. I'll be honest with you, alright. And then a great sales team behind it as well. So, we were late to the game. We made some decisions to lead with certain products and drive certain products where if we, you know if you took a step back, I think we'd said, "Hey, listen, we all agreed Flash was critical. Flash will be everywhere, compute, storage, network." And then you could debate on the consumption model, if it would be all Flash systems versus hybrid systems, or what have you. At the end of the day, Flash was pretty critical, and I think we're all on the same page there, in regards to how you want to attack the problem, if it's a hybrid or all Flash, that's maybe where we got a little stuck in our own way. But then focus from all the teams, if it was Bemax or Midrange or Xtreme IO, Isilon now. Teams have done an amazing job catching up, and then working with Billy and Marius, and the go-to-market teams, they've been phenomenal. It's been a huge shape with our. >> Well that's a good point to my portfolio question, is you guys really worked that problem hard. I think it was a two year window, we saw all kinds of architecture, but that was good timing on that, because you were early on the trend architecturally was happening in a real sense, although late to the game. Things kind of played out and you kind of shaped your portfolio up during that time. Kind of a forcing function. One, is that what happened, and two, what is the current view of the portfolio right now? Do you feel comfortable about the overlap, gaps, things that you think about? >> Yeah absolutely, so let me take the media one first, and go back to Flash specifically. We learned a lot, and yes that did help us shape our portfolios and go forward and actually try to focus specific architectures to specific-use cases to make our customers successful. We also learned is we didn't ever want to be late again. That's why, with NVME specifically, that we actually were major contributors and actually a codeveloper on NVME. Which others can talk about NVME in their marketing material. They weren't actually at the table codeveloping. >> You get the scar tissue, saying if we don't get out in this, we're going to. (laughing) >> That's right, so we've learned and I don't want it to happen again. I want to be a learning organization. I don't want it to happen again, so we're going to be driving that, and we'll be a leader in NVME, and as more media transitions happen in Flash, there'll be more, trust me, a few years down the road beyond that, we're already looking at, we'll continue to make sure that we're a leader in that space. Now on the portfolio, I talk to customers all the time. They love the portfolio in the sense of, that they understand, they believe in the fact that there's no, one size does not fit all. They have said, though, "Hey you got a lot of products "and you have to simplify." In full transparency that's something we've been working through and we'll continue to work through that. We will have overlap, and we want overlap, it's good. >> John: Better to have overlaps than gaps. >> And Joe Tucci was a huge person and I couldn't support more but we want it to be planned overlap versus unplanned overlap, because we want to be making sure we want to make our customers successful, and we say hey, and that we can articulate clearly to our customers why they'd use a product and the value its going to drive for their use-case, for their application. Same thing our sales guys, same thing for our service guys, same thing for our own engineers. We want to keep people aligned and focused on what we're trying to do. So that way, we can provide a better outcome on the other side. >> Are you looking at, when you're looking out at the future, do you see anything disruptive on the horizon? Is there anything that could change this industry fundamentally? >> Obviously, I always keep cloud in the back of mind. It's still something, you know. Depending on how people want to portray it or look at it. People call it a destination, some people call it a media, what have you. I call it a virtual infrastructure. Depending on how you want to define it, there's different ways. >> A mainframe in the sky. >> You know, I say that one always keeps me up at night, depending on how things go, but there's a lot of cool things going on in storage actually where I think, first, let's be clear, storage in general maybe hesitant. It's lost some of the sex appeal, if you will, the attractiveness of it. I think that's starting to come back with some of the things like NVME and cloud-ready and multi-dimensional scaling. There's a whole bunch of things going around there that actually is going to kind of drive that back. Now in addition to that, though, we all know internet of things, machine learning, you know, video, it's exploding. So let's be very clear there'll be a lot, >> Storage is not going away, but the machine learning certainly is going to be a nice jolt in the arm for optimization and automation. >> There's a huge opportunity there, in regards to that. Cloud is one of the big ones, but I think there's a lot of things, I guess the had-wins stay at wins, there's a lot of things in favor to really kind of push us forward. >> Jeff Boudreau, thank you for coming on theCUBE. We really appreciate the insight, and candid commentary and analysis and insight into your business. Appreciate it. You got the storage, it's not going away. It's called the data center and the cloud for a reason. It's all about the data and the value of business will be data driven. This is theCUBE bringing data to you here live from Las Vegas at Dell EMC World 2017. I'm John Furrier with Paul Gillin. Back with more, stay with us after the short break. (lively music)