>>The cube presents HPE discover 2022 brought to you by HPE. >>Welcome back to HPE. Discover 2022. You're watching the cubes, uh, coverage where day two here at Dave ante with John furrier, HaCo Myers here. He's the executive vice president and chief sales officer, newly minted, relatively newly minted chief sales officer at HPE at HPE and Paul Hunter. Who's the senior vice president and managing director of north America for Hewlett Packard enterprise gentlemen. Welcome to the cube. >>Thank you. Thanks having us. >>Hi coach. This is the first time back in Vegas in a while three years. I think it's been. And your first as the chief sales officer. Yep. What's the vibe like how how's, how's >>It feel? I can tell you. It's so cool. Is it you, you walk down the hallway, everybody's smiling and you see people from, you have seen three years ago or in this format on your screen the last three years, I think, uh, what is amazing. We had exactly three years ago, we had this event and Antonio mentioned, Hey, and by end of 20, 22, you will see everything being available as a service. Yeah. And nobody thought about that. We will not meet in person until 2022 at that point in time. Yeah, indeed. And that's what happened that I can tell you, what's the best decision to make an in person event here in vigor with so many people, uh, because it's about, Hey, the change in the market, the demand, the transition. And, uh, so I think it, I, couldn't be more happy to see the last two days and looking for, for the, to the rest of the event, >>Paul, you have a, a, a background in the, the channel, um, and now you're heading north America. What are you seeing in the ecosystem? Is it, is there a difference as HaCo was saying from 2019, is there a different, you know, feeling different conversations? What are you seeing? Yeah. >>Well, the good thing is like, because we haven't been here for three years, you've got a really marked moment of comparison. So you cast your mind back. What were the conversations like? I think three years ago we were talking about cloud services and partners were nodding their heads and thinking, yeah, but the world is gonna continue as normal and we fast forward three years and, uh, the partners are really talking about, uh, proactively how do they build up that cloud services? And, uh, they're also talking about customer experiences as well. We've landed and won new customers. So, uh, that's really sort of thrilling to hear that they're really excited about the journey on with us. >>You know, I'd like to get your perspective on the, what happened during the pandemic, because we saw, um, first of all, you know, zoom and video com saved the internet, uh, had meetings, but the partner, the partners delivered a lot of value. Um, customers had to pivot, or if they had a tailwind, they had, they took advantage of it. Some had headwinds with the pandemic everyone's working at home. So a lot of disruptions for all the companies, but a lot of the partners had success during the pandemic. And because they have that solution. What was the, uh, uh, the learnings that you guys saw during the pandemic, because now with cloud cloud scale hybrid, mainstream, and now steady state people lived it and partners delivered a lot of solutions in hybrid mode. Yeah. In virtual mode. What was the learnings for you guys out, coming out of that with customers and partners? >>I think first of all, we, we all learned during the pandemic that, uh, you can business, uh, do business in a different way, but as well, you learned, uh, how to pivot faster in the digital transformation. This makes a difference. And this creates value. And I think together with our partner ecosystem, we were able to develop faster solutions there while we developed everything as a service and came up with more and more cloud services. The good thing is it resonates. And our history with the partners is I donors, as long as I can, uh, think back in my career. And you only can do that together with the channel partners. And I think they appreciate that. We learn from each other. We do the same enablement from my guys, like from the partner guys and this close relation, I think made a difference, >>You know, in 2019 GreenLake, as a service was really a financial vehicle right now that's, that's evolved. And now, you know, two years on three years on it's actually a cloud service. Absolutely. And so what's the resonance been with customers because I mean, every everybody says they want that cloud experience. They may not all want OPEX. Yeah. But so what have you hearing from customers? So >>First of all, what I hear is, um, not the, if, so the strategy is clear, the customer they'll love it. They like it. They have, they want to have the cloud-like experience and guess what? We have 70 cloud services now. Yeah. And we have announced a lot of new one the last couple of days, but it's not so much that if they should do this, it's more the question, how can we help me to scale faster? Yeah. And, uh, that's the, the, the, the feedback I got the last couple of days, and for us, it's a motivation. We are on the right track. There is, this is a moment where you have a demand from the market and a strategy that fits, and this is so strong and you can do this with the partner through the partners and you see the, the customers, they love it. I have never seen an event where I got so many requests the last two days where I say, I thought that, can you help me to get there faster? It's perfect. >>Yeah. I think, I think it was also a landmark moment when we presented the cloud platform as part of the Antonio's keynote, I've had a lot of partners say this was sort of really marked the moment where we felt there was there's real substance to the offering now. And, uh, I had one of the sales guys relate to me a story where they have a, a, a client in the audience. And, uh, they're thinking about how they might, um, have a relationship with us and through seeing the kind of significance of it for us, we're able to close deals. So that's also, you know, a really exciting thing. We're actually know we're closing deals and, and winning new >>Customers, Hey, being agile and closing deals fast is a good thing. Right? I mean, that's what you guys like. Yeah. >>I mean, that's >>What it, so I, so I love the channel conversation partners because one of the things that I've observed and, and, and, and, and knowing the HP channels so strong, they're obviously they want make money. Gross margin is all about the profit, the profit motive, but the enablement that you guys have, how is that translated into this, this, this shift everyone's aligned behind GreenLake and as a service, cuz this seems to be a good fit for partner. Cause they're gonna go to the customer, the ultimate end customer and bolt on services. >>Yeah. >>How is that going? Cuz this is, to me, seems like a dream scenario for services, which we all know is high gross margin. >>Yeah. Yeah. I think it's a journey. What's a journey for our sales organization. Like it is for the partners, but it's a journey worth to do that. And um, so what, what is our, our strategy to have this together with our channel partners in mind, uh, to, to combine their strengths and they can, we, we have a kind of modular approach so that they can plug in their strengths, their IP, or as well, their services, which makes them sticky and, uh, relevant to the customer. And it drives profitability. And I think that's the, the, the secret behind the model, working with the channel, not, uh, separate to the channel. And I think this resonates this story, it's, it's a journey. And, uh, we learned a lot the last three years how to sell it. We, in the past we were selling, uh, transactional hardware. Yeah. Now we are selling services, cloud services, like you mentioned different game and this is an enablement. And we, we, um, we offer the same trainings we are doing with our folks to our channel partners because we are together in this journey. >>Yeah. It, you, you described it really well. And uh, so did, Hico essentially, this is, it requires a lot of persistence because you, you're not gonna get it right the first time. And so we now seen partners try and fail several times, but now try fail and succeed. So that's exciting. Um, and also I think what we're also seeing is partners is doing quite a good job of building services that integrate into the cloud services. So they're right into the APIs. I was, I was with a meeting with a partner called CBTS and they talked about the whole of their services portfolio now is embedded in, in GreenLake. So that certainly was not the case three years ago. >>Yeah. And the other, the big tailwind too, as you got the open source software movement, you're seeing, you know, the ability for partners and ultimately the channel being software enabled they're adding services, not just professional services, but cloud services where they have the domain expertise. Yeah. They're close to the customer. Yeah. And they could really be, um, customizing solutions. Um, and that's gonna always be great for the customer. The question I have for you guys is do you see that domain specialism with machine learning and with software, do you see partners start to get vertically focused and like, and start, get more targeted towards save verticals? >>Yeah. >>You go, no, go first. Yeah. >>Well, again, I was, uh, it's funny, your questions are completely resonating with the conversations we've been having all day. Like I was with our partner called connection and they're talking about how do they build practices in four areas? And they're, I'm quite closely allowed to aligned to our areas of edge cloud and data. Um, they have another one which is also workplace transformation. So, and they're thinking, how do we add expertise? How do we hire, recruit and retain the best talent? And, uh, that again, that wasn't a conversation we were having two, three years ago. So where partners really add value to us is through their services and their expertise and progressive partners are hiring and doing that. >>Yeah. And this transformation I mentioned earlier, it's selling outcomes, business outcomes for the end customer. And, uh, I think selling outcomes means you need to be specialized in something, be it on a domain area or be on a vertical. And I think, uh, when you focus on that, uh, that's the best way you can add value to a customer. This creates this trust, this trust relationship. Yeah. >>So edge cloud and data, obviously, I, I think edge, you guys, you got sending stuff and outta space, that's the ultimate edge. So you got some proof points there. Deep edge, I think. Deep edge. Yeah. >><laugh> I is very good. >>I think cloud, you showed the console Alma. It was very, had a very clear and strong platform message say, okay, now go build the data piece to me is the least mature when I walk around. Although I did see Starburst. Yeah, yeah. Out there. I think Starbursts a very advanced leading edge thinker. So that was a good sign. What do you see as having to happen to really build out that data ecosystem now? >>So I think what is important, this, this is all connected to each other edge cloud and data. And at the end, it's about, uh, how we can create insights out of the data, uh, and uh, where they, they live, where they come up, the data, how we structure them, how we get insights out of the data. So I think this is an area we see much more. It's not only about AI, but it's about having a data strategy as a customer. This is one of those areas. We have customer advisory bots that tell us, Hey, help us. We want to create our data strategy. And this is something where I think we can play together with our partners to really create value, get these insights out of the data. >>Are you hearing conversations where cus customers or partners are saying, okay, I wanna get insights out of the data, but I actually want to build a data business. I wanna build data products on, on, on GreenLake. Are you hearing that yet? >>Yeah, we are. Um, particularly the sort of, we, we think of them as sort of information, um, modern companies, um, they're building out new service lines. I mean, you, you, we see it in a lot of industries. Now you can see like how car manufacturers are increasingly thinking about how do they monetize their data, they're getting from it. And, uh, so there are new businesses being established, like in lots of different verticals. Pharmaceuticals will be another one where, um, traditional players are really being challenged and there are big businesses growing very rapidly based off data. So we're seeing it quite extensively. And, and we have to think about how do we access those new customers? How do we intersect them? And it's not just the people that we've been dealing with for 10, 20 years. They're very new companies, >>Which, which announcement's got the most buzz in your conversations with customers, partners. >><laugh>, it's funny. So I, I had, uh, when, when, when I started my conversation at a couple of, uh, meetings now, the last two days always started and said, what, what resonates? Yeah. And first of all, the funny thing is everybody told me the clarity of the message, the strategy second, uh, the consistency that we do, what we promise to do. Um, a couple of them, I know that down ISS, private cloud enterprise, uh, it's a great solution here. And, uh, then, uh, what, what I hear as well with our clarity and the strategy we are leapfrogging the competition. That's what I get out of these meetings. And I think that's the best compliment we can get for the two days. Yeah. >>Yeah. And I think the platform and the conversations around machine learning, AI, we even had an HP executive talk about quantum. Yeah. So you guys are already starting to think about what's around the corner. And I think if the platform works, the test will be, and the results will be enablement ecosystem will be flourishing, and we're gonna watch that. So I wanna get your, your take on the early, um, shift. Cause I think this year with GreenLake and the platform it's, it's maturing enough to the right. No doubt about it. We see the momentum, but there's still a lot more to do than go. So how do you guys envision the ecosystem developing? Because that'll be the true test, the flourishing, cuz if you enable people will get value out of it and it's gotta be a step function, not incremental value. >>Yeah. I think we, we, we, we always talk about, Hey, we landed and then we expand from there. That's the beauty of the model. And the good thing is there's no window looking for the customer. So they are free. That's a modular system. And what we see it's uh, really first of all, to understand the customer digital journey, where are the journey and they're all in a different place. And we have this digital, uh, uh, next advisor workshops when we have this anchor point mm-hmm, <affirmative>, you start there, you really can grow. And then you add workloads based on where the customer sits, what are the partnerships we have to bring to that? So it's really a model which starts and is, uh, designed for the future. >>The field must love it. The folks in the field, we love it. Yeah. You guys love that. Absolutely. Yeah. Yeah. Give it the customer plan future and >>I can tell you the partners love it the, well, yeah, >>Got it. When I talk to CIOs, I, I, and I ask them, you know, what's changed, you know, with Ukraine and supply chain and inflation and rising interest rate, what's changed in terms of your assumption from the beginning of the year, you know, let's say, you know, in, in terms of it spend and they're saying, well, not a lot, actually we're gonna continue to spend, we are reprioritizing. You know, we got, we're taking Robb a little bit from over here to put it into security. Yeah. Okay. But generally speaking, it's, it's the same as we expected, let's call it six, 7% growth, which is pretty good on top of last year. Um, and, and maybe there's some dry powder there, depending on how business goes. It also seems like there's, there's a lot of headwinds at the macro and B to C you know, some of the consumer companies, but B2B is booming. >>So I think >>That what do you guys are seeing? >>Absolutely. I, I completely agree that the demand will continue. Mm-hmm <affirmative> for different reasons. It could be a little bit shift within the demand as you described, but, uh, they know exactly they're on a journey in the digital transformation. If they stop now, they have a competitive disadvantage. So they are wisely in investing. So I think that the, the demand will stay here. Yes. Everybody talks about macroeconomics recession. Uh, we are confident we will see in our B2B >>Part continued demand and they're well capitalized as are a lot of the ecosystem partners. >>Yeah. And it's not a nice to have. It's a must have, I mean, I dunno of any customers that are deinvest in technology, deinvest in the life blood of their business >>Business. Exactly. Guys, thanks so much for coming on the cube. Great. Great to see you. Yeah. Congratulations on being here and, and, and best of luck with all the follow up from the show. I'm sure that lot we're gonna update next year. You see how it turned out? Yeah. >><laugh> numbers >><laugh> thanks for having us. Thank you for watching this segment. This is Dave ante for John furrier, the cubes coverage of HPE discover 22 from Las Vegas. We'll be right back.

>>Mhm Yes. Hello and welcome back to the cubes coverage of red hat summit 2021 virtual. I'm john for your host of the cube we're here with Hillary Hunter, the VP and CTO and IBM fellow of IBM cloud at IBM. Hillary, Great to see you welcome back, You're no stranger to us in the cube your dentist few times. Thanks for coming on. >>Thanks so much for having me back. Great to talk more today >>I believe I B M is the premier sponsor for red hat summit this year. No, I mean I think they're somewhat interested in what's happening. >>Yeah, you know, somebody is such a great event for us because it brings together clients that, you know, we work together with red head on and gives us a chance to really talk about that overall journey to cloud and everything that we offer around cloud and cloud adoption um, and around redheads capabilities as well. So we look forward to the summit every year for sure. >>You know, the new IBM red hat relationship obviously pretty tight and successful seeing the early formations and customer attraction and just kind of the momentum, I'll never forget that Red hat something was in SAN Francisco. I sat down with Arvin at that time, uh, Red hat was not part of IBM and it was interesting. He was so tied into cloud native. It was almost as if he was dry running the acquisition, which he announced just moments later after that. But you can see the balance. The Ceo at IBM really totally sees the cloud. He sees that experience. He sees the customer impact. This has been an interesting year, especially with Covid and with the combination of red hat and IBM, this cloud priority for IT leaders is more important than ever before. What's your, what's your take on this? Because clearly you guys are all in on cloud, but not what people think, what's your, what's your view on this? >>Yeah. You know, from, from the perspective of those that are kind of data oriented IBM Institute for Business Value, did lots of studies over the last year, you know, saying that over 60% of leaders feel, you know, increased urgency to get to the cloud, um they're intending to accelerate their program to the cloud, but I think, you know, just even as consumers where each very conscious that our digital behaviors have changed a lot in the last year and we see that in our enterprise client base where um everything from, you know, a bank, we work that that that had to stand up their countries equivalent of the payroll protection program in a matter of weeks, which is just kind of unheard of to do something that robust that quickly or um, you know, retail obviously dealing with major changes, manufacturing, dealing with major changes and all consumers wanting to consume things on an app basis and such, not going into brick and mortar stores and such. And so everything has changed and months, I would say have sort of timeframes of months have been the norm instead of years for um, taking applications forward and modernizing them. And so this journey to cloud has compressed, It's accelerated. And as one client I spoke with said, uh, in the midst of last year, you know, it is existential that I get to cloud with urgency and I think That's been that has been the theme of 2020 and now also 2021. And so it is, it is the core technology for moving faster and dealing with all the change that we're all experiencing. >>That's just so right on point. But I got I want to ask you because this is the key trend enterprises are now realizing that cloud native architecture is based on open source specifically is a key architectural first principle now. >>Yeah. >>What's your, what, what would you say to the folks out there who were listening to this and watching this video, Who were out in the enterprise going, hey, that's a good call. I'm glad I did it. So I don't have any cognitive dissidence or I better get there faster. >>Yeah. You know, open source is such an important part of this conversation because I always say that open source moves at the rate and pays a global innovation, which is kind of a cute phrase that I really don't mean it in anyways, cute. It really is the case that the purpose of open sources for people globally to be contributing. And there's been innovation on everything from climate change to you know, musical applications to um things that are the fundamentals of major enterprise mission critical workloads that have happened is everyone is adopting cloud and open source faster. And so I think that, you know this choice to be on open source is a choice really, you know, to move at the pace of global innovation. It's a choice too um leverage capabilities that are portable and it's a choice to have flexibility in deployment because where everyone's I. T is deployed has also changed. And the balance of sort of where people need the cloud to kind of come to life and be has also changed as everyone's going through this period of significant change. >>That's awesome. IBM like Red has been a long supporter and has a history of supporting open source projects from Lenox to kubernetes. You guys, I think put a billion dollars in Lenox way back when it first started. Really power that movement. That's going back into the history books there. So how are you guys all collaborating today to advance the open source solutions for clients? >>Yeah, we remain very heavily invested in open source communities and invested in work jointly with Red Hat. Um you know, we enabled the technology known as um uh Rackham the short name for the Red Hat advanced cluster management software, um you know, in this last year, um and so, you know, provided that capability um to to become the basis of that that product. So we continue to, you know, move major projects into open source and we continue to encourage external innovators as well to create new capabilities. And open source are called for code initiatives for developers as an example, um have had specific programs around um uh social justice and racial issues. Um we have a new call for code out encouraging open source projects around climate change and sustainable agriculture and all those kind of topics and so everything from you know, topics with developers to core product portfolio for us. Um We have a very uh very firm commitment in an ongoing sustained contribution on an open source basis. >>I think that's important. Just to call out just to kind of take a little sidebar here. Um you guys really have a strong mission driven culture at IBM want to give you props for that. Just take a minute to say, Congratulations call for code incredible initiative. You guys do a great job. So congratulations on that. Appreciate. >>Thank you. Thank you. >>Um as a sponsor of Red Hat Summit this year, I am sponsoring the zone Read at um you have you have two sessions that you're hosting, Could you talk about what's going on? >>Yeah, the the two sessions, so one that I'm hosting is around um getting what we call 2.5 x value out of your cloud journey. Um and really looking at kind of how we're working with clients from the start of the journey of considering cloud through to actually deploying and managing environments and operating model on the cloud um and where we can extract greater value and then another session um that I'm doing with Roger Primo, our senior vice President for strategy at IBM We're talking about lessons and clouded option from the Fortune 500, so we're talking there about coca cola european bottling partners, about lumen technologies um and um also about wonderman Thompson, um and what they're doing with us with clouds, so kind of two sessions, kind of one talking a sort of a chalkboard style um A little bit of an informal conversation about what is value meaning cloud or what are we trying to get out of it together? Um And then a session with roger really kind of focused on enterprise use cases and real stories of cloud adoption. >>Alright so bottom line what's going to be in the sessions, why should I attend? What's the yeah >>so you know honest honestly I think that there's kind of this um there's this great hunger I would say in the industry right now to ascertain value um and in all I. T. Decision making, that's the key question right? Um not just go to the cloud because everyone's going to the cloud or not just adopt you know open source technologies because it's you know something that someone said to do, but what value are we going to get out of it? And then how do we have an intentional conversation about cloud architecture? How do we think about managing across environments in a consistent way? Um how do we think about extracting value in that journey of application, modernization, um and how do we structure and plan that in a way? Um that results in value to the business at the end of the day, because this notion of digital transformation is really what's underlying it. You want a different business outcome at the end of the day and the decisions that you take in your cloud journey picking. Um and open hybrid, multi cloud architecture leveraging technologies like IBM cloud satellite to have a consistent control plan across your environments, um leveraging particular programs that we have around security and compliance to accelerate the journey for regulated industries etcetera. Taking intentional decisions that are relevant to your industry that enable future flexibility and then enable a broad ecosystem of content, for example, through red hat marketplace, all the capabilities and content that deploy onto open shift, et cetera. Those are core foundational decisions that then unlock that value in the cloud journey and really result in a successful cloud experience and not just I kind of tried it and I did or didn't get out of it what I was expecting. So that's really what, you know, we talk about in these in these two sessions, um and walk through um in the second session than, you know, some client use cases of, of different levels and stages in that cloud journey, some really core enterprise capabilities and then Greenfield whitespace completely new capabilities and cloud can address that full spectrum. >>That's exciting not to get all nerdy for a second here, But you know, you bring up cloud architecture, hybrid cloud architecture and correct me if I'm wrong if you're going to address it because I think this is what I'm reporting and hearing in the industry against the killer problem everyone's trying to solve is you mentioned, um, data, you mentioned control playing for data, you mentioned security. These are like horizontally scalable operating model concepts. So if you think about an operating system, this is this is the architecture that becomes the cloud model hybrid model because it's not just public cloud cloud native or being born in the cloud. Like a startup. The integration of operating at scale is a distributed computing model. So you have an operating system concept with some systems engineering. Yeah, it sounds like a computer to me, right. It sounds like a mainframe. Sounds like something like that where you're thinking about not just software but operating model is, am I getting that right? Because this is like fundamental. >>Yeah, it's so fundamental. And I think it's a great analogy, right? I think it's um you know, everyone has kind of, their different description of what cloud is, what constitutes cloud and all that kind of thing, but I think it's great to think of it as a system, it's a system for computing and what we're trying to do with cloud, what we're trying to do with kubernetes is to orchestrate a bunch of, you know, computing in a consistent way, as, you know, other functions within a single server do. Um What we're trying to do with open shift is, you know, to enable um clients to consume things in a consistent way across many different environments. Again, that's the same sort of function um conceptually as, you know, an operating system or something like that is supposed to provide is to have a platform fundamentally, I think the word platform is important, right? Have a platform that's consistent across many environments and enables people to be productive in all those environments where they need to be doing their computing. >>We were talking before we came on camera about cloud history and we were kind of riffing back and forth around, oh yeah, five years ago or six years ago was all the conversations go to the cloud now, it's like serious conscience around the maturity of cloud and how to operate that scale in the cloud, which is complex, it's complex system and you have complexity around system complexity and novelty complexity, so you have kind of all these new things happening. So I want to ask you because you're an IBM fellow and you're on the cloud side at IBM with all this red hat goodness you've got going on, Can you give us a preview of the maturity model that you see the IBM season, that red hats doing so that these architectures can be consistent across the platforms, because you've got def sec ops, you've got all these new things, you've got security and data at scale, it's not that obviously it's not easy, but it has to be easier. What's what's the preview of the maturity model? >>Yeah, you know, it really is about kind of a one plus one equals three conversation because red hats approach to provide a consistent platform across different environments in terms of Lennox and Kubernetes and the open shift platform um enables that first conversation about consistency and maturity um in many cases comes from consistency, being able to have standards and consistency and deployment across different environments leads to efficiency. Um But then IBM odds on that, you know, a set of conversations also around data governance, um consistency of data, cataloguing data management across environments, machine learning and ai right bringing in A. I. For I. T. Operations, helping you be more efficient to diagnose problems in the IT environment, other things like that. And then, you know, in addition, you know, automation ultimately right when we're talking about F. R. I. T. Ops, but also automation which begins down at the open shift level, you know with use of answerable and other things like that and extends them up into automation and monitoring of the environment and the workloads and other things like that. And so it really is a set of unlocking value through increasing amounts of insight, consistency across environments, layering that up into the data layer. Um And then overall being able to do that, you know efficiently um and and in a consistent way across the different environments, you know, where cloud needs to be deployed in order to be most effective, >>You know, David Hunt and I always talk about IBM and all the years we've been covering with the Cube, I mean we've pretty much been to every IBM events since the Cube was founded and we're on our 11th year now watching the progression, you guys have so much expertise in so many different verticals, just a history and the expertise and the knowledge and the people. They're so smart. Um I have to ask you how you evolved your portfolio with the cloud now um as it's gone through, as we are in the 2021 having these mature conversations around, you know, full integration, large scale enterprise deployments, Critical Mission Mission Critical Applications, critical infrastructure, data, cybersecurity, global scale. How are you evolve your portfolio to better support your clients in this new environment? >>Yeah, there's a lot in there and you hit a lot of the keywords already. Thank you. But but I think that you know um we have oriented our portfolio is such that all of our systems support Red hat um and open shift, um our cloud, we have redhead open shift as a managed service and kubernetes is at the core of what we're doing as a cloud provider and achieving our own operational efficiencies um from the perspective of our software portfolio, our core products are delivered in the form of what we refer to as cloud packs on open shift and therefore deploy across all these different environments where open shift is supported, um products available through Red hat marketplace, you know, which facilitates the billing and purchasing an acquisition and installation of anything within the red hat ecosystem. And I think, you know, for us this is also then become also a journey about operational efficiency. We're working with many of our clients is we're kind of chatting about before about their cloud operating model, about their transformation um and ultimately in many cases about consumption of cloud as a service. Um and so um as we, you know, extend our own cloud capabilities, you know, out into other environment through distributed cloud program, what we refer to as as IBM cloud satellite, you know, that enables consistent and secure deployment of cloud um into any environment um where someone needs, you know, cloud to be operated. Um And that operating model conversation with our clients, you know, has to do with their own open shift environments that has to do with their software from IBM, it has to do their cloud services. And we're really ultimately looking to partner with clients to find efficiency in each stage of that journey and application modernization in deployment and then in getting consistency across all their environments, leveraging everything from uh the red hat, you know, ACM capabilities for cluster management up through a i for beauty shops and automation and use of a common console across services. And so it's an exciting time because we've been able to align our portfolio, get consistency and delivery of the red half capabilities across our full portfolio and then enable clients to progress to really efficient consumption of cloud. >>That's awesome. Great stuff there. I got to ask you the question that's on probably your customers minds. They say, okay, Hillary, you got me sold me on this. I get what's going on, I just gotta go faster. How do I advance my hybrid cloud model faster? What are you gonna do for me? What do you have within the red hat world and IBM world? How are you gonna make me go faster? That's in high quality way? >>Yeah. You know, we often like to start with an assessment of the application landscape because you move faster by moving strategically, right? So assessing applications and the opportunity to move most quickly into a cloud model, um, what to containerized first, what to invest in lift and shift perspective, etcetera. So we we help people look at um what is strategic to move and where the return on investment will be the greatest. We help them also with migrations, Right? So we can help jump in with additional skills and establish a cloud center of competency and other things like that. That can help them move faster as well as move faster with us. And I think ultimately choosing the right portfolio for what is defined as cloud is so important, having uh, an open based architecture and cloud deployment choice is so important so that you don't get stuck in where you made some of your initial decisions. And so I think those are kind of the three core components to how we're helping our clients move as quickly as possible and at the rate and pace that the current climate frankly demands of everyone. >>You know, I was joking with a friend the other night about databases and how generations you have an argument about what is it database, what's it used for. And then when you kind of get to that argument, all agree. Then a new database comes along and then it's for different functions. Just the growth in the internet and computing. Same with cloud, you kind of see a parallel thing where it's like debate, what is cloud? Why does he even exist? People have different definitions. That was, you know, I mean a decade or so ago. And then now we're at almost another point where it's again another read definition of, okay, what's next for cloud? It's almost like an inflection point here again. So with that I got to ask you as a fellow and IBM VP and Cto, what is the IBM cloud because if I'm going to have a discussion with IBM at the center of it, what does it mean to me? That's what people would like to know. How do you respond to that? >>Yeah. You know, I think two things I think number one to the, to the question of accelerating people's journeys to the cloud, we are very focused within the IBM cloud business um on our industry specific programs on our work with our traditional enterprise client base and regulated industries, things like what we're doing in cloud for financial services, where we're taking cloud, um and not just doing some sort of marketing but doing technology, which contextualize is cloud to tackle the difficult problems of those industries. So financial services, telco uh et cetera. And so I think that's really about next generation cloud, right? Not cloud, just for oh, I'm consuming some sauce, and so it's going to be in the cloud. Um but SAS and I SV capabilities and an organization's own capabilities delivered in a way appropriate to their industry in in a way that enables them to consume cloud faster. And I think along those lines then kind of second thing of, you know, whereas cloud headed the conversation in the industry around confidential computing, I think is increasingly important. Um It's an area that we've invested now for several generations of technology capability, confidential computing means being able to operate even in a cloud environment where there are others around um but still have complete privacy and authority over what you're doing. And that extra degree of protection is so important right now. It's such a critical conversation um with all of our clients. Obviously those in things like, you know, digital assets, custody or healthcare records or other things like that are very concerned and focused about data privacy and protection. And these technologies are obvious to them in many cases that yes, they should take that extra step and leverage confidential computing and additional data protection. But really confidential computing we're seeing growing as a topic zero trust other models like that because everyone wants to know that not only are they moving faster because they're moving to cloud, but they're doing so in a way that is without any compromise in their total security, um and their data protection on behalf of their clients. So it's exciting times. >>So it's so exciting just to think about the possibilities because trust more than ever now, we're on a global society, whether it's cyber security or personal interactions to data signing off on code, what's the mutability of it? I mean, it's a complete interplay of all the fun things of uh of the technology kind of coming together. >>Absolutely, yeah. There is so much coming together and confidential computing and realizing it has been a decade long journey for us. Right? We brought our first products actually into cloud in 2019, but its hardware, it's software, it services. It's a lot of different things coming together. Um but we've been able to bring them together, bring them together at enterprise scale able to run entire databases and large workloads and you know um pharmaceutical record system for Germany and customer records for daimler and um you know what we're doing with banks globally etcetera and so you know it's it's wonderful to see all of that work from our research division and our developers and our cloud teams kind of come together and come to fruition and and really be real and be product sizable. So it's it's very exciting times and it's it's a conversation that I think I encourage everyone to learn a little bit more about confidential computing. >>Hillary hunter. Thank you for coming on the cube. Vice President CTO and IBM fellow which is a big distinction at IBM. Congratulations and thanks for coming on the Cuban sharing your insight. Always a pleasure to have you on an expert always. Great conversation. Thanks for coming on. >>Thanks so much for having me. It was a pleasure. >>Okay, so cubes coverage of red Hat Summit 21 of course, IBM think is right around the corner as well. So that's gonna be another great event as well. I'm john Feehery, a host of the cube bringing all the action. Thanks for watching. Yeah.

>> From around the globe, it's The Cube, presenting Cube on Cloud, brought to you by SiliconANGLE. >> Welcome back to Cube on Cloud. I'm Paul Gillin, enterprise editor of SiliconANGLE. As we look ahead at what is in store for the cloud this year, one of the intriguing possibilities that has emerged is the rise of vertical clouds. IBM has been a leader in this area with its launch in late '19 of the IBM Financial Services cloud. That's a services-ready public cloud with exceptional security, as well as a policy framework for certifying compliance and services from the IBM subsidiary, Promontory. Now, with the IBM Financial Services cloud, that has been a major focus of our next guest, Hillery Hunter. She is the Vice President and CTO of IBM Cloud, an IBM Fellow, and a veteran of, I believe, three previous appearances on The Cube. Am I right, Hillery? >> Yep, sounds about right. Great to be back here today. >> Thanks for joining us. So let's start with getting an update on the IBM Financial Services cloud. What progress have you made in signing up customers and your ecosystem of partners? >> Yeah, we've made really significant progress advancing the IBM Cloud for Financial Services since we last talked, and we're really at that place of establishing a trusted platform for the industry. Just in some specifics, in addition to Bank of America which we had talked about as our U.S. anchor partner for the program, we've announced several global banks that are partnering with us for the global expansion of the program, including BNP party bar, which is one of Europe's largest banks. More than 70 ASVs are signed up with us now as part of the program and adopting IBM Cloud for Financial Services. This level of ecosystem is exciting because it means that banks will have the opportunity to transform what they're doing, but do so in a way which is driven by security and compliance so that they can be confident in those deployments on IBM Cloud for Financial Services. We also released the IBM Cloud policy framework for Financial Services. This is both the security and compliance posture of the environment, as well as guidance on controls, reference architectures, automation to help people onboard. And so both ISVs and banks now are able to onboard to this environment, and offer their wares and deploy their workloads. So it's a really exciting state for us on the program, and we're really in a place where there'll be an ongoing cadence of additional releases and announcements of additional partnerships and clients. So it's an exciting time in the program. >> One of the distinctive features, I think, of this launch is that you're working actively with your customers. They're working with you on building policy frameworks, as well as, I imagine, the features that you're offering on the cloud. How do you orchestrate all of these different customers and get them involved in, actually, co-development. >> Yeah, the ecosystem conversation and the partnership conversation are two of the fundamental aspects of the program. Like you said, this isn't just us sitting off in a bubble and inventing the future. We're working internally with partners within IBM, like IBM Promontory, which is a consultancy that has deep, deep regulatory expertise in jurisdictions globally, with IBM Security Services, and then with these individual partners and banks and clients. One of the ways that we bring everything together is through our council. So our council, our Cloud Council for Financial Services, is where we have global, systemically important financial institutions partnered with us and working together with one another, and that covers CIOs, it covers chief security officers, risk officers, et cetera. So we have some formality around how we work with all of these partners, really, as a body and as a group. >> And what have you learned from this experience? If you were to go into other vertical clouds, what have been the lessons? >> Ecosystem is so important. As I look at this space, I see that everyone has an existing business. They have a platform they're running, they have clients they're trying to service, but the software providers into this space are looking, themselves, to transform. They're looking to transform from being software vendors to being SaaS providers. The banks and financial institutions themselves are looking to transform from working on their own premises to benefit from the elasticity and the scale and the optionality that being in public cloud provides. So there's a lot of parties themselves that are trying to transform, and a lot of vendors into the financial space that are looking to transform. And in that time of a lot of change, ecosystem is absolutely key. And so the ISE and SaaS providers providing their wares on the cloud for financial services is really just as important as those financial services institutions, so that everyone can make that transition together, and so that banks that are looking to digitally transform can leverage partners that are really at the forefront of that change and that innovation in platforms for the industry. >> Would you say that there are- Is this the first of many? Are there going to be other vertical IBM clouds, or is the range of industries that really need that kind of specificity, limited? I think it's actually not limited, though I will say that within the space of industries that are heavily regulated, there's obviously a deeper need for specific cloud embodiments and cloud implementation, so regulated industries like insurance, like telco, health care, et cetera, these are the ones, I think, where there's the greatest opportunity to do verticals that are specific to industry. But as we look at this, this is absolutely part of an IBM Cloud strategy to deliver industry-specific clouds. And this comes from our decades of expertise. Even in financial services, being able to leverage those other entities within IBM that I mentioned, our regulatory background with companies, having helped them address regulatory needs for specific industries, and then translating that into cloud and cloud technologies. And then coming up from the other side, in terms of the technologies themselves, we've partnered with key industries to deliver security, and data protection, and cryptography technologies, and such, on premises, and we're contextualizing that now for cloud and public cloud deployments. And so it brings together the pieces of decades of expertise in platforms, and technology, and regulations, and contextualizes it into cloud, and I absolutely think that's an opportunity for other industries as well. >> Can you give us a bit of a preview? Do you have specific industries in mind? Is there a timeframe? >> Yeah, so late last year we did announce a second industry-specific cloud initiative, and that was IBM Cloud for Telco. So we have in that ecosystem, now, over 40 partners that are now, that are working with IBM and with Red Hat, especially with clients and partners that are looking to help with that transition into 5G and increasing use of IOT. 5G is really this disruptive opportunity for that industry, and also just for many other different types of companies and institutions that are looking to deploy with more efficiency, better operational efficiency, deploy with AI capabilities, really being able to do things at cellular network EDGE, and the places that they're doing business using IOT devices, and 5G will enable much of that to really transform and flourish. So a couple of the partners, initially, in addition to that ecosystem that I mentioned in Cloud for Telco, we've got Samsung working with us, Nokia, AT&T, et cetera, and so these partnerships and capabilities around network EDGE and specific capabilities in Cloud for Telco are that second public announcement that we've made around industry-specific cloud. >> And as far as your competitive position is concerned, are you taking away business from your competitors when you partner with these telcos and these banks, or is this an entirely new line of business that was not previously in the cloud? >> Yeah, these are really, I think, in, by and large, new opportunities. As we look at, for example, how we, as customers, expect to engage with our bank, we are looking to increasingly engage with a bank in a digital way, use our applications, use mobile devices. We're looking for individual bank outlets, branch outlets of a banking institution, to be increasingly smart, to service our needs more quickly, et cetera. And so as we look at 5G and telco EDGE, it's about delivery of smarter capabilities and such. I think much of it really is about, in this digital transformation space, about creating new capabilities, creating new experiences, creating new ways of engagement, and engagement and opportunity to customize and personalize, I think most of those are new experiences and new capabilities for most companies. >> So speak about IBM's positioning right now. You're not one of the big three cloud providers, unlikely to become one, but you do have a big cloud business, and you've got the verticals, you've got the multicloud. I know IBM has been a big champion of multicloud. How is IBM distinctively positioned in the cloud market right now? >> Yeah, we are all-in on hybrid cloud and AI, and if you listen to our CEO and chairman, you'll hear that. It is a really consistent message since he came into his role as as our CEO. So being all-in on hybrid cloud and AI, we really are looking to help our clients transform into holistic cloud architecture. So when I say all-in on hybrid cloud, I mean that there's been a lot of, I jokingly say, random acts of cloud usage. People have ended up using cloud because there's some SaaS function that they want, or some particular line of business has been highly motivated to pursue some service on a particular cloud. And hybrid cloud is really about taking a step back, having a holistic architecture for cloud consumption. And in that sense, clouds are IBM's partners. And we're really looking to enable our clients to have consistency in their deployments, to consolidate across their IT estate and across their cloud deployments so that they can have a common platform, so they can have efficiency in how their developers deploy capabilities, so they can deploy more quickly with security and compliance patterns, and have oversight over everything that's going on in a consistent way that really enables them to have that velocity in their business. And so when we then position things like industry cloud, we're leveraging IBM-specific technologies to deliver differentiated capabilities in data privacy, data protection, security and compliance, for these industries, in public cloud, yes, but it's in the context of helping our clients overall across all the different things, some of which may not need all of that data privacy or be leveraging particular SaaS content. We're looking to help them really have cloud architecture, have a holistic conversation across hybrid cloud, and yet to still be able to choose particular cloud deployments on our cloud for industries that enables data protection and policy for the most sensitive and enterprise grade things that they're looking to do at the core of their business. >> So speaking of hybrid hybrid cloud, the major cloud providers, Amazon, Microsoft, Google, Oracle's another one, all have on-premises offerings right now. Several of them are working with telcos to expand their reach out into co-location and into telecom data centers, all of this being to enable this distributed cloud fabric, a hybrid cloud fabric. What's IBM's play in this area? Do you have a similar strategy or is it different? >> Yeah, I really think, and I think you maybe wanted to get a little bit into trends and predictions here in this conversation, and we absolutely see that need for distributed cloud, for cloud to really be alive in all the places where it needs to be, in all the places that someone is doing business, and in a consistent way across cloud environments, to be one of those major trends that's emerging as a really hot conversation. We have introduced IBM Cloud Satellite, that is IBM's hybrid cloud, as a service platform. It enables our clients to leverage OpenShift and Kubernetes environments, developer tooling, consistency in a cloud catalog, visibility and control over all their resources across different environments, and to be able to run end-to-end with consistency from on-premises, to EDGE, to different public cloud providers, and this is absolutely something that, across industries but within, also, those industries, that we're focused on in particular, that we're seeing a lot of interesting conversations emerge, because if cloud is everywhere, if cloud is distributed and can be on premises and in public cloud, it enables this consistency and this parity, really that brings together that seamlessness, not just the random acts of cloud usage. It means that using cloud can be something that drives speed of release of new product. It means that you can deliver more capability and functionality into a retail outlet where you're doing business, or a banking brick-and-mortar location. You can have AI for IT ops and understand what's going on across those different environments, and ensure things are kept secure, and patched, and updated, and you're responding to incidents in efficient ways. And so, really, having a consistent cloud environment and a distributed cloud environment across different locations, it's really key to leveraging the promises of what everyone had originally hoped to get out of cloud computing. >> And of course, one of IBM's distinctive advantages in this area is, you've got a huge hardware install base out there. How do all those 360 mainframes figure into this? >> Yeah, with the OpenShift capabilities and our (audio skips) relations with Red Hat in this area, we are able to actually help our clients leverage Kubernetes, and Linux, and all those things, even on the mainframe. So across the mainframe family, the IBM power family, where folks may also have AIX or IBM i deployments, people can now do Linux, they can do OpenShift, they can do Kubernetes, and we have core technologies that enable that really to be stitched together, and I think that's one of the unique perspectives that IBM has in this whole conversation about hybrid cloud. There are many different definitions of hybrid cloud, but we really view it as stretching from the traditional enterprise IT, like you said, there's a lot of IT out there, and being able to also incorporate OpenShift and Kubernetes in a common cloud platform, on traditional enterprise IT, on private cloud, on fresh deployments, on private cloud, Amazon public cloud, that really is the whole IT estate. So when we talk about hybrid cloud, when we talk about distributed cloud, we're really talking about the entirety of the IT state, not just new deployments of SaaS, or something like that. >> So as someone who's on the front lines of what customers are asking about cloud, do you see customer, the questions that they're asking, changing? Are their decision criteria changing for how they choose a cloud provider? >> Yeah, I think that there's definitely a lot more conversation, and especially in this current era where there's an accelerated rate of cloud adoption, there's a lot more conversation around things like security, data protection, data privacy, being able to run in an environment that you trust not just, is it a cloud and what does it do, but can I trust it? Do I understand how my data is protected, how my workloads are secured? That's really why we started Cloud for Financial Services, because that industry shepherds such vital data, so the reason that they are highly regulated is because of the importance of what they are stewarding, very important data and financial information. So we began there with the Cloud for Regulated Industries, there with with Financial Services, but I see that across all industries. I was participating on a panel with a bunch of CIOs, and I was there interviewing some CIOs who were from a much more consumer-facing, and also from from foods industry, et cetera, and their conversation was exactly the same as I have with many other clients, which is that their cloud choices, their efficiency in cloud deployment, now are largely driven by the ability to get to a secure posture and the ability to demonstrate to their internal security and risk teams that they understand their data protection and data privacy posture. So we are seeing lots of pickup and conversation opportunity around confidential computing, specifically, and that's really about enabling our clients to have full authority and privacy in their computing, in their code, in their data, even when running in a cloud environment. And so I do see a shift. Everyone's more concerned about security, and I think we have great technologies, and we've been working with core partners to establish, and harden, and create generations of technology that can really answer those questions. >> I have to ask you about that term, confidential computing. I haven't heard that before. What does that involve? >> Yeah, it is a buzzword to watch out here for in 2021. So confidential computing means being able to run in an environment where there are others, in a cloud computing environment, for example, but still have full privacy and authority over what you're doing. So you are effectively in an enclave. Imagine yourself protected and secured. And so our confidential computing technology is, we're actually on, basically, our fourth generation of the hardware and software technologies to create that strong degree of isolation. This enables us to deliver a really rich portfolio, frankly, the richest portfolio in the industry, of actual services delivered using confidential computing and secure enclaves. And so we can enable our customers to solution things in a way, for example, where their data can not even be visible to our cloud operators, or where they retain full control over a database, and have full privacy as they're running in that environment. These are really great considerations, but they impact everything from health care, financial services. We have other partners and clients who are working to protect consumer data through these means, et cetera. And so across different industries, everyone's really looking at this topic of data privacy and data protection. And so we have a whole suite and a whole family of confidential computing-based services that we're able to offer, to offer those assurances and that privacy to them in their cloud computing. >> I do have to ask you about the multicloud, because this is a topic of constant debate in the industry of whether customers want to shift workloads across multiple clouds to protect themselves from lock-in. Is that a fantasy? Is that too restrictive? This has been a key part of IBM strategy is enabling the multicloud. How do you see customer attitudes developing right now? How do they want to use multiple clouds, or, in fact, do they? Are they concentrating perhaps more of their workloads in one or two? >> Yeah, we believe vendor lock-in goes against the true spirit of hybrid cloud, that desire to have consistency across environments, that desire to- and the business need to have continuity and resiliency and operations, et cetera, and so I do see this as a really important topic. From the perspective of managing environments, I think in multicloud, I think folks are starting to realize that multicloud isn't necessarily a strategy, it's a reality. People have deployments in lots of different cloud environments that happen somewhat organically, in many cases, and so the key question is how to then get to visibility and control over those resources. I think two of the core topics in that are multicloud management, being able to understand clusters, and virtual machines, and other things that are deployed across different environments, and manage them with a common set of policies, for example. And then, in addition to multicloud management, AI for IT operations is another really important topic in multicloud, being able to respond to incidents, understand and analyze and leverage AI for understanding what's going on across those environments is another really core topic. And then as you said, distributed cloud is a means of getting that consistency. Having a common control and deployment plane across those different environments can help it not just be accidental usage of multiple cloud environments, but very intentional deployment, based on the needs of particular workloads to the environment that they're best suited to. And that's really what you want to aim for. Not that multicloud is necessarily, I guess I would say, is a- It is a complexity that is manageable through these new types of technologies and multicloud management, and such like that, and distributed cloud. >> Well, Hillery 'tis the season for predictions, it's January. Everyone's prognosticating about what the future will look like. What do you think are going to be the main trend lines in cloud this year? >> Yeah, I sprinkled a few in there as we were talking, but I really do think that the conversation around hybrid cloud, number one, how to have an open innovation ecosystem for cloud, where you have consistency across environments, not just random acts of cloud usage, but intentional and holistic architecture. I really see that as the transition, as the second wave of of cloud adoption. And then, secondly, is we were talking earlier about security. Everyone is wondering about data policy, data privacy. We've always taken a strong stance that our client's data is their data. We are not going to be using their data to further develop our AI services on our cloud, or something. We have deployed technologies in confidential computing that enable them to keep full control over their keys so that even our cloud operators don't have access to data, computing in secure enclaves where they have a strong degree of isolation and full privacy and authority over their workload. I really think these two topics, open and secure hybrid computing and with consistency across environments, with distributed cloud technology, and secondly, security. I think these are really important topics for 2021. And they may seem a little bit obvious, but I think it's important as people look at this to look for technologies that are multiple generations into this journey, partner with folks who are committed very clearly to an open ecosystem and open source innovation on the one hand, and secondly, when we talk about security and data protection, you want to know that that provider is several generations into that journey so you really know that that technology has been vetted out, is at production scale, and has a stable basis. And so I think this is the year when folks are transitioning from cloud adoption to consistency in cloud, and security and privacy in cloud. >> A final question, and it has nothing to do with cloud. You're an IBM Fellow, and I see that term turn up occasionally with other other people I've spoken to from IBM. What is an IBM Fellow, how do you become one, and what privileges and responsibilities does it entail? >> Yeah, it's an exciting opportunity to be an IBM Fellow. There's about a hundred active IBM Fellows right now, so there aren't too many of us, but there is a small community of us. IBM Fellow is IBM's highest technical designation within our technical population, so I do have a role within our cloud business, but as one of our technical leaders, get to interact with the other Fellows, work on strategy for IBM in technology overall as a company, and I also get to be a trusted advisor to many of our clients, and so I get to work with CTOs and CIOs and VP of Application Development profiles, and VP of IT, and things like that, in our different clients, and really help them wrestle through those struggles of future IT transformation. And so part of what I enjoy most about the role, and the Fellow role, is being able to be that trusted advisor to many of our clients. There's been so much change in this last year for everyone, and being able to also help our technical population through that, in various means, and then help our clients through all of that change, and really being able to take and grasp onto the opportunities that this last year has had in the way that we work has changed, and the way that companies are looking to deliver capabilities has changed. So that's, for me, the exciting part of the role. >> Well, you're one in a hundred, then, and you do a great job of articulating the IBM strategy, and also the cloud landscape. Hillery Hunter, VP and CTO, excuse me, CTO of IBM Cloud, thank you so much for joining us today on Cube on Cloud. >> Thanks so much for having me. It was a pleasure. >> I'm Paul Gillin, stick with us. (upbeat music)

>>From around the globe. It's the cube presenting cube on cloud brought to you by Silicon angle. >>Welcome back to coupon cloud I'm Paul Gillan enterprise editor of Silicon angle. You know, as we look ahead at what is in store for the cloud this year, one of the intriguing possibilities that has emerged is the rise of vertical clouds. IBM has been a leader in this area with its launch in late 19 of the IBM financial services cloud. That's a services ready public cloud with exceptional security, as well as Polly, a policy framework for certifying compliance and services from the IBM subsidiary. Promintory now with the IBM financial services cloud, uh, that has been a major focus of our next guest, Hillary Hunter. She is the vice president and CTO of IBM cloud and IBM fellow and a veteran of, I believe, three previous appearances on the cube. Am I right Hillary? >>Yep. Sounds about right. Great to be back here today. >>Thanks for joining us. So let's start with getting an update on the IBM financial services cloud. What progress have you made in signing up customers and your ecosystem of partners? >>Yeah, you know, we've made really significant progress, uh, progress in advancing the IBM cloud for financial services since we last talked, you know, and, and we're really at that place of establishing a trusted platform for the industry, just in, you know, some specifics in addition to bank of America, which we had talked about as our us anchor partner for the program. Um, we've announced several global banks, um, that are partnering with us for the global expansion of the program, including BNP party, you know, which is one of Europe's largest banks. Um, more than 70 ASVs are signed up with us now as part of the program and adopting IBM cloud for financial services, this level of sort of ecosystem is, is exciting because it means that, you know, banks will have the opportunity to, to transform what they're doing, but do so in a way, which is driven by security and compliance, um, so that they can be confident in those deployments on IBM cloud for financial services. >>We also released the IBM cloud policy framework for financial services. This is both the sort of security and compliance posture of the environment, as well as, you know, guidance on controls, reference architectures automation to help people on board. And so both ISBNs and banks now are able to, um, onboard to this environment and offer their wares and deploy their workloads. So it's a really exciting state for us on the program. And we're really in a place where there'll be, you know, an ongoing cadence of, you know, additional releases and announcements of additional partnerships and clients. So it's an exciting time in the program. >>Uh, one of the distinctive features I think of this, uh, of this launch is that you're working actively with your customers. They're working with you on building policy frameworks, as well as I imagined the features that you're offering on the cloud. How do you orchestrate all of these different customers and get them involved and actually co-development >>Yeah. You know, it's the ecosystem conversation and the partnership conversation are two of the fundamental aspects of the program. Like you said, this isn't, you know, just us sitting off in a bubble, inventing the future. Um, you know, we're working internally with partners, uh, within IBM like IBM Promintory, um, which is a consultancy that has deep, deep regulatory expertise and in jurisdictions globally with IBM security services. And then with these individual partners and banks and clients, one of the ways that we bring everything together is through our councils. So our council, our cloud council for financial services, um, it's where we have global systemically important financial institutions partnered with us and, and working together with one another. And, and that covers, you know, CIO is it covers chief security officers, risk officers, et cetera. Um, so we have some formality around how we work with, um, all of these partners, uh, really as a body and as a group. >>And what have you learned from this experience? I mean, if you were to go into the, uh, into other vertical clouds, what have been the lessons >>Ecosystem is so important, right? It's as I look at this space, I see that, you know, everyone has an existing business, they have a platform they're running, they have clients they're trying to service. Um, but those, the software providers into this space are looking themselves to transform their they're looking to transform from being a software vendors, to being SAS providers, the banks and financial institutions themselves are looking to transform from working on their own premises to benefit from the Alaska city and the scale and the optionality of, you know, that being in public cloud provides. So there's a lot of, um, parties themselves that are trying to transform and a lot of vendors into the financial space that are looking to transform. And in that time of a lot of change ecosystem is, is absolutely key. And so, um, the ISE and SAS providers, you know, providing their wares on the cloud for financial services is, is really just as important as those financial services institutions so that everyone can make that transition together. Um, and so that banks that are looking to digitally transform can, can leverage partners that are really at the forefront of that change in that innovation and in platforms for the industry. >>Would you say that there are, is this the first of many, I mean, are there going to be other vertical financial or other vertical IBM clouds or is the range of industries that really need that kind of specificity limited? >>I think it's, it's actually not limited, you know, though, I will say that within the space of industries that are heavily regulated, there's obviously a deeper need for sort of specific cloud embodiments and cloud implementation. So regulated industries like insurance, like telco healthcare, et cetera. Um, these are the ones I think, where there's the greatest opportunity to do verticals that are specific to industry. Um, but you know, as we look at this, this is absolutely part of an IBM cloud strategy to deliver industry specific clouds. And, and, and this comes from our decades of expertise, right? Even in financial services, being able to leverage, you know, those other entities within IBM that I mentioned, right. You know, our, our regulatory, um, background with companies, you know, having helped them address regulatory needs for specific industries, and then translating that into cloud and cloud technologies. Right. And, and then coming up from the other side, you know, in terms of the technologies themselves, we've partnered with key industries, um, to deliver security and data protection and cryptography technologies and such on premises. And we're contextualizing that now for cloud and public cloud deployments. And so it kind of brings together the pieces of decades of expertise and platforms and technology and regulations and contextualizes it into cloud. And I absolutely think that's, you know, an opportunity for, for other industries as well. >>Can you give us a bit of a preview? I mean, do you have specific industries in mind? Is there a time? >>Yeah, so, so, uh, late last year we did announce a second industry specific cloud initiative and that was IBM cloud for telco. So we have in that ecosystem now over 40 partners that are announced, that are working with IBM and with red hat, especially with, um, clients and partners that are looking to help with that transition into 5g and increasing use of IOT. 5g is really this disruptive opportunity for that industry. And, and also just for many other different types of companies and institutions that are looking to deploy with more efficiency, better operational efficiency, deploy with AI capabilities, really being able to do things that like cellular network edge, um, and the places that they're doing business using IOT devices and 5g will enable much of that to really transform and flourish. So a couple of the partners, initially, in addition to that ecosystem that I mentioned in cloud for telco, um, you know, we've got Samsung working with us, Nokia ATNT, et cetera. Um, and so, you know, these, these partnerships and, and capabilities around network edge, um, and specific capabilities in cloud for telco, um, are sort of that second, you know, public announcement that we've made around industry specific cloud, >>As far as your competitive position is concerned. I mean, are, are you taking away business from your competitors when you partner with these, these telcos and these banks, or is this an entirely new line of business that was not previously in the cloud? >>Yeah. You know, these are really, I think in, by and large new opportunities as we look at, you know, for example, how we as customers expect to engage with, um, you know, our bank, right. You know, we are looking to increasingly engage with a bank in a digital way, use our applications, use mobile devices. We're looking for, you know, individual bank outlets, uh, branch outlets of, of a banking institution to be increasingly smart, to service our needs, you know, more quickly, et cetera. Um, and so as we look at, you know, 5g and telco edge, it's about delivery of sort of smarter capabilities and such. I think much of it really is about in this digital transformation space about, you know, creating new capabilities, creating new experiences, creating new ways of engagement, um, and engagement and an opportunity to customize and personalize. Um, I think most of those are sort of new experiences and new capabilities for most companies. >>So speak about IBM's positioning right now. I mean, you're not one of the big three cloud providers to, to become one. Uh, but you do have as a big cloud business and, uh, you've, you've got the verticals, you've got the multi-cloud, uh, I know IBM is big, has been a big champion of multi-cloud. I mean, how is IBM distinctively positioned in the cloud market right now? >>Yeah. You know, we are all in, on hybrid cloud and AI. And if you listened to our CEO and chairman, you'll hear that it is a really consistent message. And he, since he came into his role as, as our CEO, um, so being all in, on hybrid cloud and AI, you know, we really are looking to help our clients transform into holistic cloud architecture. Right? So, so when I say all in, on hybrid cloud, I mean that, you know, it's, there's been a lot of sort of, I jokingly say random acts of cloud usage, right? People have ended up using cloud because there's some SAS function that they want, or some particular line of business has been highly motivated to pursue some service on a particular cloud. And hybrid cloud is really about taking a step back, having a holistic architecture for cloud consumption. And in that sense, you know, uh, clouds, uh, are IBM's partners. >>Um, and we're really looking to enable our clients to have consistency in their deployments to consolidate across their it estate and across their cloud deployments so that they can have, um, a common platform, so they can have efficiency in how their developers to like capabilities. So they can deploy more quickly with security and compliance patterns and have oversight over everything that's going on in a consistent way that really enables them to have that velocity in their business. And so when we then, you know, positioned things like industry cloud, we're leveraging IBM specific technologies to deliver differentiated capabilities and data privacy, data protection, security compliance, where these industries in public cloud. Yes. But it's in the context of helping our clients overall across all the different things. Some of which may not need all of that data privacy or, or, or be leveraging particular SAS content we're looking to help them really have cloud architecture have a holistic conversation across hybrid cloud. Um, and yet to still be able to choose particular cloud deployments on our cloud for industries, um, that enables data protection and policy for the most sensitive and, and enterprise grade things that they're looking to do at the core of their business. >>So speaking of hybrid hybrid cloud, I mean the major cloud providers, Amazon, Microsoft, Google, Oracle, and other one all have on premises offerings right now. Uh, several of them are working with telcos to expand their reach out into, uh, into co-location and into telecom, uh, data centers. Uh, all of these things were to enable is this distributed cloud fabric kind of a hybrid cloud fabric what's, IBM's play in this area. Uh, do you have a similar strategy or is it different? >>I really think, and I think you maybe wanted to get a little bit into sort of, you know, trends and predictions here in this conversation and, and, and, you know, we, we absolutely see that need for distributed cloud for cloud to really kind of be alive in all the places where it needs to be in, in all the places that someone is doing business and in a consistent way across cloud environments, um, to be one of those major trends, that's emerging as a really hot conversation. We have introduced IBM cloud satellite, um, that is IBM's hybrid cloud as a service platform, um, and enables our clients to leverage, um, uh, OpenShift and Kubernetes environments, developer tooling, uh, consistency in a cloud catalog, visibility and control over all their resources, um, across different environments. And to be able to run end, to end with consistency from on-premises to edge to different public cloud providers. >>Um, and this is absolutely something that across industries, but, you know, within also those industries that we're focused on in particular, um, that we're seeing a lot of interesting conversations emerge because if cloud is sort of everywhere, if cloud is distributed and can be on premises and in public cloud, it enables this consistency in this parody, um, really that sort of brings together that, that seamlessness, not just the random acts cloud usage, right? I mean, it means that using cloud, um, can be something that, that drives, you know, speed of release of new product. It means that you can deliver more capability and functionality into, you know, a retail outlet where you're doing business or a banking, you know, brick and mortar location. Um, you can have, you know, AI for it ops and understand what's going on across those different environments and ensure things are kept secure and patched and updated, and you're responding to incidents in efficient ways. Um, and so really having a consistent cloud environment and a distributed cloud environment across different locations, um, it's really key to leveraging the promises of what everyone had originally hoped to get out of out of cloud computing. >>Of course, one of IBM's distinctive, uh, advantages of this area is you've got a huge hardware install base out there. I mean, how do all those three 60 mainframes figuring it out, figure into this, >>Um, with the OpenShift capabilities in our Clara operations with red hat in this area, we are able to actually help our clients leverage Kubernetes and Linux and all those things, even on the mainframe. So across the mainframe family, the IBM power family, um, you know, where folks may also have AIX or IBMI deployments, people can now do Lennox, they can do open shifts, they can do Coopernetti's. Um, and we have core technologies that enable that really to be stitched together. And I think that's one of the unique perspectives that IBM has in this whole conversation about hybrid cloud. Um, there are many different definitions of hybrid cloud, but we really view it as stretching from the traditional enterprise. It, like you said, there's a lot of it out there and being able to also incorporate OpenShift and Kubernetes in a common cloud platform, um, on traditional enterprise, it on private cloud, on fresh deployments, on private cloud, Amazon public cloud, that really is the whole it estate. So when we talk about hybrid cloud, when we talk about distributed cloud, really talking about the entirety of VIT state, not just sort of new deployments of, of SAS or something like that. >>So as someone who's on the front lines of, you know, what customers are asking about cloud, do you see customer the questions that they're asking changing? Are they, are they their decision criteria changing for how they choose a cloud provider? >>Yeah. You know, I think that, um, there's definitely a lot more conversation, especially in this current era where there's an accelerated rate of cloud adoption. Um, there's a lot more conversation around things like security, um, data protection, data, privacy, being able to run in an environment that you trust, not just is it a cloud and what does it do, but can I trust it? Do I understand how my data is protected, how my workloads are secured? Um, you know, that's really why we started cloud for financial services because that industry shepherds such vital data, right? So the reason that they are highly regulated is because of the importance of what they are stewarding very important data and financial information. Um, so, you know, we began there with the cloud for regulated industries there with, with financial services, but I see that across all industries, I was participating on a panel, um, that was, uh, with a bunch of CEOs. >>And I was there interviewing some CEOs who were from a much more sort of consumer facing and also from, from foods industry, et cetera. And their conversation was exactly the same as I have with many other clients, which is that their cloud choices, their efficiency and cloud deployment now are largely driven by the ability to get to a secure posture and the ability to demonstrate their, to their internal security and risk teams that they understand their data protection, data, privacy posture. So we are seeing lots of pickup and, and conversation opportunity around confidential competing specifically. Um, and you know, that's really about enabling, uh, our clients to have full authority and privacy in their computing, in their code and their data, even when running in a cloud environment. And so I do see a shift everyone's more concerned about security, and I think we have great technologies and we've been working with core partners to establish and harden and, and create, um, generations of technology that can really answer those questions. >>I have to ask you about that term confidential computing. I haven't heard that before. What, what does that involve? >>Yeah. You know, it's, it is a buzzword to watch out here for an in 2021. So confidential computing means being able to run in an environment where there are others in a, in a cloud computing environment, for example, um, but still have full privacy and authority over what you're doing. So you are effectively in an enclave, uh, imagine yourself sort of protected and secured. And so our confidential competing technologies, um, we're actually on basically our fourth generation of, of, of the hardware and software technologies to create that strong degree of isolation. Um, this enables us to deliver a really rich portfolio. Um, frankly, the, the, the richest portfolio in the industry of actuals services delivered, um, using confidential, competing and secure enclaves. And so we can enable our customers to solution things in a way, for example, where their data, you know, can not even be visible to our cloud operators or where they, uh, retain, you know, full control over, you know, a database and have full privacy as they're running in that environment. Um, these are really great, um, you know, considerations, but they impact everything from health care financial services. Uh, we have other partners and clients who are working to protect consumer data, um, you know, through these means et cetera. And so, um, across different industries, everyone's really looking at this topic of data, privacy, data protection. Um, and so we have a whole suite and whole family of confidential competing based, uh, services that we're able to offer to, uh, offer those assurances and that privacy to them in their cloud competing. >>I do have to ask you about the multi-cloud because this is a topic of constant debate in the industry of whether customers want to move shift workloads across multiple clouds to protect themselves from lock-in. I mean, is that a fantasy? Is that real? Is that a too restrictive? Uh, this has been a key part of IBM strategy is enabling the multi-cloud. How do you see customer attitudes developing right now? How do they want to use multiple clouds or in fact, do they, are they, are they, uh, concentrating perhaps more of their workloads in one or two? >>Yeah. You know, we believe vendor locking goes against the true spirit of hybrid cloud, right. Um, that desire to have consistency across environments, um, that desire to, uh, and the business need to have, you know, continuity and resiliency and operations, et cetera. Um, and so I do see this as a really important topic, um, from the perspective of, you know, managing environments, I think in multi-cloud, um, I think folks are starting to realize that multicloud isn't necessarily a strategy. It's a reality. Um, people have deployments in lots of different cloud environments, um, that happened somewhat organically in many cases. And so the key question is how to then get to visibility and control over those resources. Um, I think kind of two of the, the, the core topics in that are multicloud management, um, you know, being able to understand, you know, clusters and virtual machines and other things that are deployed across different environments and manage them with a common set of policies, for example. >>Um, and then in addition to multicloud management, um, I, for it, operations is another really important topic in, in multi-cloud being able to respond to incidents, understand and analyze and leverage AI, um, for what's going on for understanding what's going on across those environments, um, is another really core topic. And then as you said, you know, distributed cloud is a means of getting that consistency, having a common, you know, control and deployment plane across those different environments, um, can help it not just be sort of accidental usage of multiple cloud environments, but very intentional deployment based on the needs of particular workloads to the environment that they're best suited to. Um, and, and that's really what you want to aim for. Um, not that multi-cloud is necessarily, um, you know, uh, uh, I guess I would say is, is it is a, um, it is a complexity that is manageable, um, through these, you know, new types of technologies and multicloud management and such like that, and cloud >>Well, uh, Hillary TIS, the season for predictions is January, uh, everyone's prognostic table of what the future will look like. What do you think are going to be the main trend lines in cloud this year? Yeah, >>You know, I, I sort of sprinkled a few in there as we were talking, but I really do think that, um, the conversation around hybrid cloud number one, how to have an open innovation ecosystem for cloud, where, um, you have a consistency across environments, you know, not just random acts of cloud usage, but intentional and holistic architecture. Um, I really see that as the transition to sort of the second wave of, of cloud adoption. Um, and then secondly, as we were talking earlier about security, right, everyone is wondering about data policy and data privacy. Um, we've always taken a strong stance that, you know, our client's data is, is, is their data. We are not going to be using their data to, you know, further develop our, um, you know, AI services on our cloud or something. Um, we have deployed technologies and confidential computing that enabled them to keep full control over their keys so that, you know, even our caught operators center have access to data, um, competing in secure enclaves, where they have a strong degree of isolation and full privacy and authority over their workload. >>I really think, you know, these two topics open and secure hybrid computing and with consistency across environments, but distributed cloud technology. Um, and secondly, security, I think these are really important topics for 2021, and they may seem a little bit obvious, but I think it's important as people look at this to look for technologies that are multiple generations into this journey, right. Um, you know, partner with, um, folks who, um, are, you know, committed, uh, very clearly to an open ecosystem and open source innovation on the one hand. Um, and secondly, you know, um, when we talk about security and data protection, you want to know that that provider is several generations into that journey. Um, you know, so you really know that that technology has been vetted out is that production scale and has the stable basis. And so I think this is the year when folks are transitioning from cloud adoption, uh, to consistency in cloud and security and privacy in cloud >>Final question. And it has nothing to do with cloud. You're an IBM fellow. And I see that term, uh, turn up occasionally with other other people I've spoken to from IBM, what is it? IBM fellow, how do you become one and what right. Privileges and responsibilities as an entail. >>Yeah. You know, it's an exciting opportunity to be an IBM fellow. There's about a hundred active IBM fellows, um, right now. Um, so there aren't too many of us, but there is a small community of us. Um, IBM fellow is IBM's highest technical designation within our technical population. Um, so I do have a role within our cloud business. Um, but as one of our technical leaders, um, get to interact with the other fellows, um, you know, work on strategy for IBM in technology overall as a company. Um, and I also get to sort of be a trusted advisor to many of our clients. And so, um, I get to with CTOs and CEOs and VP of application development, um, you know, kind of, kind of profiles and VP of, of it and things like that, um, in our different clients and really help them wrestle through those struggles, um, of, you know, future it transformation. >>And so, um, you know, part of what I enjoy most about sort of the role and, and the fellow role is, is being able to kind of be that trusted advisor to many of our clients. There's been so much change in this last year for everyone. Um, and being able to, you know, also, you know, help our technical population through that, you know, in various means and then help our clients, um, through all of that change and really being able to take and grasp onto the opportunities, um, that this last year has had in the way that we work has changed. And the way that companies are looking to deliver capabilities has changed. Um, so that's, for me, the exciting part of, of the role, >>Or you're wondering a hundred then, and you do a great job of articulating the IBM strategy and also the, uh, the cloud landscape, Hillary Hunter, VP and CTO, excuse me, CTO of IBM cloud. Thank you so much for joining us today on Cuban cloud. >>Thanks so much for having me. It was a pleasure. >>I'm Paul Gillan stick with us.

>> Announcer: From theCUBE studios in Palo Alto and Boston, connecting with thought leaders all around the world, this is a CUBE Conversation. >> Hi everybody, this is Dave Vellante, and back in 2013, when it was becoming pretty obvious that the cloud was going to have a major impact on our industry, the IT industry, I wrote at the time that the way incumbents were going to have to compete was to really go into vertical markets and build ecosystems for their own clouds, and that's exactly what IBM did late last year, when it announced a major partnership with Bank of America in the financial services cloud, and guess what, Hillery Hunter is back in the house, she's the vice president and CTO of the IBM cloud, and an IBM fellow, Hillery, great to see you again, thanks for coming back on. >> Thanks so much for having me again, always a pleasure to be here. >> So we had an awesome conversation, I think we got into the FS cloud a little bit, but as I was saying, you guys announced last year, Bank of America, but let me start here. Why does the industry need a financial services cloud? >> Yeah, you know, it's key that we ground ourselves in that question of why a financial services cloud, and I think it really goes back to the sensitivity of the workloads and the data that that industry stewards. The financial services industry stewards the data of millions and millions of customers, and they are heavily regulated because of that, and they handle very high value transactions, and being able to take that context and translate that into what does it mean to do high value transactions, sensitive data, consumer data computing, also with all those benefits of elasticity and the value proposition of different deployment locations, is really what financial cloud is about. And those needs of that industry are a little bit different, the regulations are higher, the bar and data protection is higher, and the need to interlock across workload characteristics and the cloud deployment is a bit different. And so, we are bringing what we know about that industry to bear in the context also of cloud computing. >> Okay, so you're making some new announcements, there's some hard news here, but I want to know, if you're an executive, or business leader in the financial services industry, what's in it for me in these announcements? >> Yeah, what's in it for you is that we are moving into the next phase of financial services cloud in making the policy framework that has been developed through an enormous amount of work available to additional industry participants, and we're also moving into a phase of global expansion, and so being able to take this value proposition of an end to end considered secure and confine environment for financial services, out to more players in the industry, out to additional geographies and deployment locations, it's an exciting moment because everyone's really not looking just for a cloud, but they're looking for a choice of deployment locations, they're looking to move more workload to the cloud, and this is really about providing a cloud solution that more workload can move to, not just the first couple phases of analytics and things like that, but also moving into more transformation of the core of banking and the core of banking business, so it is about getting more workload to the cloud, getting that done faster, and getting it done at a net improved security and compliance posture. >> Got it, so I want to ask you about some learnings, now you're the double whammy of learnings here. When you announced the collaboration with B of A, obviously one of the top banks of the world, you've obviously made some progress since then, but the other part of that whammy was COVID. So what did you learn from the collaboration with B of A, and have you guys, how have you expanded your thinking BC, from before COVID, versus AC, after COVID? >> Yeah, you know, the initial motivation for this program was about having trust and transparency in public cloud, and having a public cloud suited also to sensitive and even core banking workloads. We have seen this conversation and the need for it and the urgency for it only pick up since COVID. A lot of things in the world kind of took a pause, but cloud computing really accelerated. We're seeing that businesses need to digitally transform their banking, so core banking transformation is a very hot topic. They need to deal with elasticity, we worked with banks during COVID that were having to suddenly stand up their national equivalent of the Payroll Protection Program. Banks that had to suddenly have three times the elasticity, because all of a sudden consumers were interacting with them purely digitally. And cloud can enable all of those kind of things, and so COVID has really accelerated the motivation toward banking in the cloud, and also toward core banking transformation, which is at the heart of setting a very high security bar in public cloud, to be able to also enable those kind of workloads. >> Yeah, so many changes as a result of COVID, I mean the volume of loans, like you said, everything was digital. I know a lot of older people that always still like to go into the bank, that like to see people, and they knew people and people knew them, well they had no choice but to go digital, so that's huge, if you didn't have a digital solution, and cloud is fundamental in that equation. But let's get into it a little bit more. We talked a little about this at IBM Think, but what are the key attributes that make the IBM financial services cloud suitable for financial services, is it the certifications, I wonder if you could add some color there. >> Yeah, so the key elements of the financial services cloud program are number one, a policy framework, which is a set of controls that are customized to the financial services industry, so this isn't about some existing standard, this is a customization of controls and security for the financial services industry, and that's a major element of what we're announcing right now. In addition to the policy framework is also the way that the different elements of the industry and of regulatory expertise are coming together, so this cloud, and these public cloud offerings, were co-developed and co-designed with IBM Promontory, with IBM Security Services that work with banks, with our anchor partner, and moving forward, we'll be advised by an advisory council of CSOs who have that day to day experience with security and with regulations. And so that is also a very unique context for not this being just a point in time with a policy framework, but being an ongoing initiative that will stay up to date, as security concerns and as regulatory concerns change. And the third aspect is a really unique set of technologies that make all of that possible, so you have to define how the cloud is going to be secure, and then you have to actually do it, and the unique capabilities that we have in IBM public cloud that have enabled this program include a number of things, but amongst them, the industry's highest standard for data protection, with our FIPS-140-2 Level 4 based key protect service, it includes capabilities that we'll be releasing through our acquisition of Spanugo around cloud security and compliance posture management, mapped back to that context of financial services. And so it's really three things, it's a policy framework custom and optimized for the financial services industry, the forward evolution of that through industry expertise, and participation of multi parties in that, and then core technologies that enable folks to accomplish that security posture through data protection, through cloud security posture management, et cetera. >> I forgot about the Promontory, you guys made that acquisition several years ago, that's a nice little feature of the FS cloud. But I want to ask, how hard is it to get these certifications? I mean it's obviously not a layup. Lot of work, lot of time, my reason of my question, is this a moat for you, as you guys start to scale? How difficult is it? >> Yeah, so we have been putting in the time and effort, and so that's why this is an exciting moment for us with the initial work product of this effort. And so our intention really is not for that to be a moat, but for us having traversed the moat, to now have a bridge there through the methodology that we built, through the control framework that we built, for others to now get across that moat. And so this is really about taking what is an extensive amount of work, and an extensive amount of expertise, IBM Promontory, you just mentioned, but they monitor over 70 regulatory obligations in over 20 jurisdictions globally, right? I mean this is a tremendous depth of expertise, and so having crossed the moat, and having built the bridge across it, this is where we can then help others to save time in this process of adopting public cloud for further workloads. >> You've mentioned workloads, you've talked about core financial workloads, but maybe give us a little insight on what type of workloads are the most suitable for the financial services cloud, because let's face it, most of the hardcore mission-critical workloads haven't moved, actually probably none of 'em have moved to the cloud, you kind of referenced that before. Ginni Rometty talks about that all the time. But what are the right workload strategic fits for your cloud? >> Yeah, you know you mentioned Ginni Rometty, and so I'll take a quick note there from some of the language that you'll hear her use, she talks about, there was chapter one of the cloud journey, and stuff that was on less sensitive data, analytics, some things on public information, were certainly done, also in finance and also in regulated industries in the cloud. And she talks about chapter two, chapter two being mission-critical workloads. And this program really is the definition of chapter two for the financial services industry. It is the enabling expertise, the enabling control set, the enabling security technologies, the enabling cloud services, for that chapter two, right, for that next layer of adoption of things that had been kept behind the firewall, had been kept in a private cloud context, can now be considered also for public cloud. And so easing that adoption, streamlining that process, et cetera, is really what we're looking to accomplish. >> I mean obviously IBM, huge presence in the banking community, is this really for just big banks? What about the ecosystem, what do you got in there for ISVs and SaaS providers? >> Yeah, you know, you asked me a question at the beginning here about COVID and what's happened, and I think, the transformation of ISV providers to become SaaS providers, the expansion of their capabilities being needed in payments and digital client experiences and such, also for regionals and second and third tier banking institutions and such, is as much of what is happening right now as anything else, amongst the first tiers, because there's just as much pressure for transformation and digital consumer experience, and other things like that, also in the regionals and second and third tiers. So part of our announcement is around the ecosystem of partners that we have now for the financial services cloud program. And that includes ISVs and SaaS providers that are servicing many different types of needs of institutions large and small, so we're seeing those that are servicing core banking, and payments, those that are servicing analytics use cases for this industry, and even HR function, just because of that concern about stewarding data well for these industries and those first tier banks, and so that transition to digital, that drive to infuse AI capabilities, the need to transform core banking, is something that's very much also happening within the ISV and SaaS providers, and we're thrilled with the wide variety of partner base that we're seeing develop there within our ecosystem for this program. >> I was talking to a CIO friend of mine several years ago, and he said to me, "You know, this idea of lifting and shifting, "it's fine, you get little cost savings, maybe, "but unless you change your operating model "and you drive an innovation agenda, "you really aren't going to get the type "of telephone number returns from cloud "that you would want or expect." So my question is around innovation, and we've said many times in theCUBE that the new innovation cocktail, it's not Moore's law anymore, it's the combination of data applying machine intelligence and then the cloud, and the reason why the cloud is important is scale, okay, there's maybe a little bit of cost as well, but it's also innovation. It's the ability to attract people into an ecosystem, and that resonates with line of business. If your cloud is just about making IT's life better, well that's nice, but what's in this announcement and in this initiative for the line of business? >> Yeah, it is all about the workloads. I always say that to me the cloud journey is about, number one your platform, which is the thing onto which you modernize. It is what are you going to get out of moving to containers, what are you going to get out of moving to microservices, how does that help all of those cloud metrics that you mentioned? But number two, it's about the workload, right, which workloads are we talking about, how will they deliver, how will those workloads be able to because of cloud deliver not just TCO but improvement in customer experience, how will those workloads be able to meet elasticity, resiliency, cybersecurity concerns, changes in the way the workforce is working these days, et cetera. And from the line of business perspective, there is a tremendous need to consume, for example, fintech-based innovation. But a lot of folks have struggled to move past POCs because of concerns about security and compliance, for those deployment scenarios, and so being able to bring the ISVs and SaaS providers, and then also fintechs into an ecosystem with a prescriptive and proactive security and compliance context is really what we're all about here. And that will enable a flourishing of adoption of innovation. >> You know, I always love to talk about the competition on these episodes. But I want to ask differentiation, how different is this, can I just go to any cloud supplier and get this, will I eventually be able to, what's IBM's differentiation, Hillery? >> Yeah, so you want to think of it that, in financial services, you are concerned, and you have to be concerned about everything. You have to be concerned about things into the details of the cloud itself, you have to be concerned about things that are related to the behavior and the permissions of your developers in that environment. Financial services cloud really has to be an end to end, soup to nuts conversation, and so this is a program of our public cloud, where end to end, we can stand behind and provide trust and resiliency and this policy framework, end to end within an environment that can be trusted for mission-critical workload. And so when we look at differentiation, our investments are in bringing together IBM's expertise all the way going back to regulations and security consulting that we've been doing for decades in this industry, applying that to that cloud context, taking capabilities that are developed all the way down into the transistors, investments we've made even into the silicon around how cryptography is done, bringing that into the cloud context. And so having brought those things together into our public cloud context, that's how we're able to solution this in a different way, because it really is end to end about the expertise, from all of that regulatory advising, that security context, all the way down into the silicon and the transistors, and I think that's a very unique value proposition, as a cloud provider, it's a tremendous opportunity for us to bring together those pieces. And to continue to be a trusted partner to these companies that we have long been a trusted partner of. >> Now of course you guys have a relationship with VMware, you were the first, actually, to announce a VMware cloud relationship. And so let's say, okay, I got some VMware workloads, I move 'em into your FS cloud. Make sure that I've got the security and compliance checked. Six months down the road, so I've done that sort of first step, what's next for me, is that the end, or are there other things on my journey? >> Yeah, so absolutely, I mean VMware is part of what we are solution financial services clients to, but also cloud-native, and OpenShift, containerization, that modernization journey, is an ongoing journey for everyone, and so to your point of what's next, we're seeing a continual conversation of balancing lift and shift and modernization across workloads, and there are different reasons at different points in time, for people to consider that. I think the key is that they trust where they are taking that data, and whatever the form is that the workload goes, it needs to be in the context of that trust around the data in a security context, and so we're absolutely seeing everything, honestly, from financial services institutions looking to engage with us, also in our new research innovation lab, where we're engaging directly with financial services clients that are trying to work through this differentiation, is it virtualization, is it containerization, is it even serverless? What is the right and most effective balance of how workloads are programmed and run for the next generation of banking. >> You know, Hillery, I've been doing a lot of interviews in the last decade, and it's been interesting to see the ascendancy of cloud, of course, but also the change in perception, particularly in financial services, in the early days of cloud, cloud was an evil word. The C that should not be named. And so I want to understand if I'm, and of course COVID has also changed the perception, because if you weren't digital and you didn't have cloud, you couldn't really transact businesses as well, you didn't have that business resiliency. So, what if I'm a financial services person now, okay, I'm through the knothole, I want to get started, where do I start? >> Yeah, well call us first, but past that, I think that the conversations, the first conversations that we're having with our clients are, number one, do you have an architecture? So is cloud not just a place, like I like to say, but is cloud a plan, is there an architectural plan to enable you to have consistency, for example, in your developer experience between your private cloud environment and your public cloud environment? Architecturally are there those foundational choices around common services about being able to deploy capabilities in one location, and develop them in another, et cetera. All those value propositions of what we have been creating around OpenShift and Cloud Paks in our public cloud, and consistency across different environments and such, I think that's the first thing to start with is architecting a cloud, not accidental usage of multiple environments, but architecting use of multiple environments. And then I think the second conversation is to make a security and compliance plan that is going to be robust enough to withstand even the intense scrutiny of a regulated industry CCO and risk team, and so that's the other foundational conversation that we're having with our clients, and helping them with, so we can provide services and reference architectures, and all that other kind of thing, to enable them to stabilize planning on both fronts, both architecturally for what cloud means in its entirety, not just a cloud, but in its entirety, all clouds, multicloud, hybrid cloud, et cetera. And then secondly, then, a comprehensive security plan for that public cloud choice, and that's what we're really locking down with this policy framework, is bringing standardization on that for public cloud. >> Well, lot of innovation for the financial services community, which is again your wheelhouse. I wrote a piece right around Think that IBM's future rests on its innovation agenda, and I'm glad you brought up the notion of private, public, and then the whole hybrid thing, because I see OpenShift as a key, and RedHat as a key enabler of that across whether it's cloud, on-prem, edge, across multiple clouds. That's an ambitious agenda, as somebody who's responsible for cloud. That is something that is real innovation, and really differentiable I think, in the marketplace, and probably pretty expensive to build out across all those different platforms. >> Yeah, it is, but I think on the word innovation, my mind, as an IBMer, goes to the IBM research division. Thousands of researchers globally, and they've very much been a part of this journey with us. The journey with us on containerization, the journey on workload modernization from monolith to microservices, the journey of our public cloud, and now also very much a part of our work in financial services, so our research division is this incredible gift and asset that we have, that is working with us also on our cloud security and compliance posture management, that security and compliance control center that we're talking about in this announcement, et cetera, and so them being a part of this innovation stream for us is a really exciting part, again, of bringing together all these different pieces that IBM has to offer in this space to make it all stack up, to be a cloud for financial services. >> I got a couple of little housekeeping items before we close here. This is announced for the US first, right? What about other regions, first of all, is that correct, and what about other regions? >> That's correct, and we are also announcing additional participation of global banking partners as well in this announcement. And so this is also again our initial public statement of our expansion past the US. >> Last question, so just give us a glimpse of the future, where do you want to be in a few years, thinking about let's say three years down the road, what's that outcome look like? >> Yeah, you know I think that three years from now, we would love to see that people are able to make a decision, going back to your question about the line of business owners, make a decision about what they're trying to accomplish with a workload, and not be held back by security and compliance concerns in terms of putting that workload where it needs to be, where it will be most efficient, and where it can be embraced by a set of cloud capabilities that enable it to move in a competitive pace forward, infusing AI into everything that is done. Leveraging the latest in technologies, and serverless computing and all these other kind of things that can facilitate a line of business delivering more value so that cloud really continues, but also realizes its promises in that chapter two version of the story, also for regulated industries and also for their mission-critical workloads. >> Well Hillery, good luck with this, I mean congratulations on the progress that you've made, really since you guys announced this late last year, and really excited to see this start to take off, and you're a great guest, love having you on, thank you so much. >> Thanks so much for having me, pleasure talking to you as always. >> All right, cheers. And thank you everybody for watching, this is Dave Vellante for theCUBE, and we'll see you next time. (calm music)

>>From the cube studios in Palo Alto and Boston gets the Q covering IBM thing brought to you by IBM. >>Welcome back to our coverage of IBM think 2020 the digital version of IBM. Thank, my name is Dave Vellante and you're watching the cube. Hillary Hunter is here. She's the vice president and CTO of IBM cloud and also an IBM fellow. Hillary, thanks for coming on. Good to see you. >>Thanks so much for having me today. >>All right, let's get really, let's get into it. We want to focus on security and compliance. It's a key, obviously a key aspect and consideration for customers. But I have to start by asking you, there's this sort of the age old conflict between being secure and then having the flexibility and agility and speed that business people need. How does IBM clouds sort of square that circle? >>Yeah, you know, it's, it's really interesting because cloud itself is detained, um, designed to deliver agility, um, and speed. And that's everything from the release cadence to being able to consume things as APIs. And so when we say cloud and security, it's about the things that we implement as a cloud provider and the services that we stand up. And all of that is API driven. Um, all of that is intended to enable, you know, data protection through API APIs intended to enable security monitoring through PIs and dashboards and other things like that. And so actually when delivered as cloud services, security functions can actually even go more quickly and can facilitate that speed and agility in and of themselves. So it's really interesting that the means of delivering cloud capabilities actually can facilitate that agility in the security area. >>Yeah, I mean I think it's, especially in these times with COBIT 19 a lot of why is that? We're talking, you were saying, Hey, yeah, we're really going harder, uh, for the cloud because the downturns have been actually pretty good for them. For the cloud. I presume you're sort of seeing the same thing, but if you think about the cost of a breach, it's millions of millions of dollars on average. And think about the time it takes for an organization to identify when there's been an infiltration. Mmm. I know small companies like ours, we feel good that we can tap into, you know, cloud infrastructure. what are your thoughts? Oh, on sort of that whole notion cloud essentially maybe even having better security in a way, but however you define better. >>Yeah. You know, I, I actually agree with those statements and I think it's played out in many of our client engagements. Um, because when you are talking about cloud and you're talking about security, we have the opportunity to present to you a proactive approach, right? Where we're saying, okay, leverage this type of technology in order to do your key management or data encryption. It is up by us already fully as a service. You consume it API driven. Um, and so we are able to say that this will enable you to have end to end data encryption or corruption according to some standard or key management, um, where the keys remained in your hands or you know, use these things that are security services so that there isn't, um, there doesn't have to be, um, as detailed of a conversation. Um, as you often have to have in your solution, in your own it. >>You can say, okay, what's the objective we're trying to get to what is the net security and compliance posture? And we as a cloud provider can be proactive and telling you, Hey, therefore then use this combination of services and use them in this following way and that will enable you to reach those outcomes. And so moving past, um, you know, being fully self service where you have to configure hundreds and hundreds of things yourselves. To me being more prescriptive and proactive and goal oriented and outcome oriented, um, is an opportunity that we have in cloud where we're standing up Janning up capabilities. And so we really tried to talk to clients about, okay, what's the, what are you trying to accomplish? Are you concerned about control over your it? Are you concerned about meeting particular documentation on particular regulatory compliance? What's the point? And then how does that relate into a conversation about data compute, networking, et cetera, and then what does that matter too in terms of how you should then use certain cloud capabilities. >>I want to follow up on that, Hillary, because I want to see it. If I can discern, maybe there's some difference in the way IBM approaches this. I've often said in the cube that bad user behavior trumps good security every time. And of course you've got multiple layers, you've got IBM securing, you know it's infrastructure and it's cloud. You've got it in whatever role there and you've got the end user now. Yeah. Somebody fishes the end user or end user admin. Okay. There are things you can do fine. Hmm. But there's also the, it kind of in the middle you mentioned managed services is IBM's approach, you know, somewhat different >>no >>cloud suppliers. Maybe you could elaborate on that. >>Yeah. So, you know, we really look to protect the services that we're standing up, whether it's infrastructure services, where it's yeah, networking, whether or not it's container service or you know, other services that we're providing. We're looking to protect it, those, you know, down to the core of what that service is and how it works and, and how it provides security and then the technologies that that service integrates into. Right? So services seamlessly integrating into bring your own key and our, um, FIPs one 40 dash two level four baths, um, keep your own key, et cetera. So, so we take other things for our clients and then in doing so, we enable end to end the client to understand both what the status of the service itself is as well as, um, you know, how they use it in order to take into account other security considerations. >>And, and I think it is a fundamentally different, um, approach then one takes for, you know, your own it, you're responsible end to end for everything. In this case, you know, we a secure what we're doing. And then we enable through things like our security advisor, um, to do configurations in such that, that governed the developer behavior and ensure that overall together between us and the client, the posture, even of what the developers and such is understood and can be monitored and ensured that it is secure and compliant. Okay. So I just want to take an example of that. So you are responsible for let's say, securing the object store as an example, but yet at the same time the clients it organization policies that map to the edict of their organization. So they've got flexibility sort of a partnership. Okay. Am I understanding that correctly? >>Yeah, absolutely. And the question is then that it organization that's taken policies, um, we then enable our clients to use tools, everything from things that can be integrated into the dev sec ops pipeline of red hat, you know, and initiatives that are going on. We had CNCF and NIST and other places like that. Yeah. So how can they translate their risk, insecurity, postures into concrete tools? That's that we deliver, right? Everything from dev, sec ops and OpenShift. So then tools and dashboards that we have, like security advisor, um, so that they can then most effectively implement the entirety of what constitutes security on in public cloud environment with confidence. Yeah. So security in compliance slash privacy or sort of two sides of the same coin. So I want to understand, Oh, IBM cloud is approaching, Oh, compliance, obviously GDPR, yeah, yeah. Whatever. They may have, I guess 2018 in terms of the fines. >>Oh, the, the California consumer privacy act. Everybody sort of has their own little GDPR now States and regions and countries, et cetera. How is IBM supporting clients in regard to Oh, compliance such initiatives? Yeah. You know, and this is an area where, you know, again, we are working to make it as easy as possible for our clients to not only see our status on certain compliance areas, which is visible through our website on compliance, but also to achieve compliance is where there is some joint or shared responsibility. So for example, in Europe with the European banking 30, we have kind of an industry unique position and enabling clients you achieve, um, what is needed. And so we provide proactive, you know, guidance. I'm on European banking authority or a PCI DSS or other things like that. So we really are trying to take a very proactive approach to Mmm, uh, providing the guidance that clients need and meeting them in that journey over all. >>We, in addition have a specific program for financial services, um, where we announced our partnership back in November with the bank of America for financial services for a very significant control setting compliance, um, that is not just a of a bunch of little existing things, but it really is a tailored control set for the financial services industry. Um, that acknowledges the fact that, you know, getting compliance in that space can be particularly, ah, particularly challenging. So we are, are taking a very proactive approach, do helping our clients across different doctors, um, deal with those changing, you know, postures and internally as a cloud organization. Um, we are advised also by IBM Promitory, which, um, it has extensive background over 70 jurisdictions globally, changes in all these postures and in compliance and rules and such like that, that they consistently and continuously monitor. Um, and help us design the right cloud moving forward. Cause is compliance as you said is it's very much a dynamic and changing landscape. >>You know, when you talk to chief information security officers and ask them what their biggest challenges, they'll tell you. Yeah. The lack of skills. Uh, and so they're looking to automation. It really helped close that gap. And clearly cloud is sort of all about automation. So I wonder if you could just talk a little bit about what you're seeing with regard to automation generally, but specifically how it's helping, you know, close that skills gap. >>Yeah, you know, it, the, the, the topic of automation is so interesting when it intersects security because I really view this, um, transition to cloud and the use of cloud native and the use of containers and such actually is an opportunity again, yet again to improve security and compliance posture. Um, because cloud, um, and uh, the dev ops and CICB pipelines, um, and all of that of, of a cloud native build and a containerized build give you a certain opportunity both to prevent a bunch of behaviors as well as to collect certain information that may become useful later on. Um, I think actually called modernization because of the automation it brings, um, is a really, really topic for both CSOs and risk officers right now because it can not just improve the agility that you started with as a motivation to go to cloud, but it can also improve visibility into what's going on with all your workloads. >>You know, to know that a developer used a particular library and then you see, oops, maybe there's a concern about that library and you instantly know where across the entirety of your IOT that that's been deployed. That's a tremendous amount of knowledge. Um, and you can take either, you know, immediate action on that or you can through automation push out changes and things like that. Um, we use internally as a cloud provider the best of SRE and automation practices to keep our estate patched and other things like that. And that can also then translate into people's own workloads, which I think is a really exciting opportunity of cloud. >>You know, we're out of time, but I want to close and asking you sort of what we should look at 42, we had a great conversation earlier, well with Jamie Thomas about, about quantum and she talked about ideas. You get that on the IBM what what should we look forward to sort of in the coming months and even years in IBM cloud. >>Yeah. You know, we're really excited about that agility, that cloud itself for us as a company and provides, right? Like you said with quantum, it is the place that we can bring out the latest and greatest things, um, in, you know, uh, for our clients to use and experiment with and adopt their algorithms and such juice. So you're going to continue to see us taking a very aggressive posture in turning the latest and open source and technologies into cloud delivered fully managed services. Um, and so, you know, everything from what we've done already with, um, Istio is a service and can native as a server, a service and quantum as a service, et cetera. Um, you'll continue to see us take that approach that, um, you know, we want to be a fresh and vital environment for developers to consume the latest and greatest that's out there. Um, but yet as an enterprise focused company and a company, you know, very much focused on security and compliance, you'll continue to see us back those things with our own efforts to secure and then enable security, um, on our environment. >>Well, Hillary, thanks so much for coming on the cube. It's always great to have experts like yourself, uh, share with, uh, with our community. Appreciate it. >>Great. Thank you so much for having me. >>And so we're seeing cloud acceleration as a result of covert 19, but it's always been a, a real wave for the last 10 years. We're just seeing it again, accelerate even faster. This is Dave Volante for the cube. You're watching the cubes, continuous coverage of IBM thing, digital thing, 2020 people right there, but right back, right after this short, >>right.

>>live from Denver, Colorado. It's the Q covering com vault. Go 2019. Brought to you by combo. >>Welcome to the Cube. Lisa Martin with student A man we're covering Day one of convo go 19 from Colorado. Stew and I are pleased to welcome to the Cube one of combo longtime customers from AstraZeneca. We have Scott 100 global infrastructure surfaces. Director. Hey, Scott. >>Good afternoon. >>Good afternoon. Welcome to the Cube. AstraZeneca is a name that probably a lot of folks know in the bio medical pharmaceutical space. But for those that don't give us an overview of AstraZeneca. What you guys are what you d'oh! >>Obviously we're we're, ah, bio pharmaceutical company with global presence way be used. The primary care takes off. Medicines be sale throughout the world. So everything from Kearney care to tiu oncology onda also are massive. That diabetes franchise, as well as other core core therapies that are used by our patients, were like, >>All right, So, Scott, maybe bring us inside. What is data mean to your organization? >>And it means loss. Lots of things taxes and cut through our organization from go boat framed in that next molecules to discover them bleeding edge medicines for our patients all the way to have our sales People commercial use data to identify the patients for further rate kid as well and ofcourse, backoffice tree I t enabling functions like each HR and finances. Well, therefore, is this apartment for business >>you've got Global infrastructure service could just lay out a little bit what that entails and how data fits into the picture, what's in your purview and what you have to work with other groups on. >>So my idea looks after architecture, designing governance and for cyber security infrastructure, savage seas, AstraZeneca. So So we be like after within either on premise within their own try our own data centers are in the public load as well. So as you can imagine, their movement on Deron realms and that can environment is pivotal to the coming been successful go forward >>when every time we, you know, you talk about data being the life blood of an organization or the new oil when we're talking about a patient information and the information that could be used to find the next, you know, cure for a particular disease, this it's this is literally life and death data on the ability to have access to it, but also to make sure that it's protected and secure table stakes. Right, so talk to us about when you came on board, he said. Around six years ago, before we went live knowing how critical data is toe AstraZeneca's business, What was the data strategy like a few years ago? >>It was pretty convoluted six years ago when am I fought during the actual Danica over largely exhaust to various companies? So their strategy basically that have one. We don't really have much of a strategy for looking after our deal with five or six different backup products, but then the cinnamon on lane their storage products is now. So over the last 56 years, can stealing that down to one key data storage provider in the APP and also for backup from the store combo. We do still have some leg. It's a very fast environments, but they're being decommissioned. That moved over combo. I speak >>from a what can I t. An initial initiative perspective. A few years ago, six years ago, we didn't have a date, a strategy. What was some of the you know from the top, down from the C suite down, maybe from the board down saying, Hey, guys, we have to get our hands around. I mean, this is before GDP are But in terms of the opportunities that I provided the company, where did that initiative come from? And a new year old come about now. But you guys want a couple of different routes, Talk to us a little bit about that initiative and the initial directions to where you are now. >>Yes, O. R. Xia Old Smalley obviously had a vision for how the country is going to progress. Set sail in his tenure on a massive pile that was understanding with our data waas how it was used on but most importantly have it was protected as well. And so that kind of drove the insertion from likes of HCL Congress and emphasis into looking after our own environment. You can, after our own idea for choosing strategies as well, so that organically company could grow based on best directions for using that there that we could meet from what we had the radio through collaboration with other bio farmers is a game just for the greater good of fame than that. That next medical molecules to help proficient. All right, >>Scott, have you been toe the combo Cho shows before? >>Second thing second time. Tell us a >>little >>bit about you know what brings you to the show? A lot of announcements here. Anything jump out so far? >>Yeah, it is interesting to see some of the new collaborations are Sorry. Party sees it comes I'll be making over the last little well Hedvig acquisition looks looks breaks on the metallic venture that, doomed for public sass is, well, looks like equals x, a n and ammunition and came environments that convo play on. So I think things to very good moves. >>So you're leveraging Public Cloud. How does Khan Vault fit into that? You're to be used babies >>convoked for for M backing up on restoring and our public load environments. Whether we need a B s robotics, start watching in the jury's there with You're in the club zero stack as well. And then we're in the process of bringing on lane production environments and Google Cloud Platform zone. So having that one back up in the store strategies pivotal Isabella's enabling us to move our day off using visibility solution to get calm. Boulders now, which is very powerful, is >>one of the things I noticed when I watched the video that combo has done with you. And they actually shared a quote from you during the keynote before Actually, before everyone walked. It is, you said this constant evolution that come about is delivering was one of the things that that you really like. From a business perspective, Combo has done a lot of evolving in the last nine months with the new leadership. It's too. And you were talking about some of the new technology, some of the new announcements from that evolutionary perspective and what you guys like about it. What are you seeing in terms of them going forward? Are you saying hey, there really listening? They're looking at use cases like ours, learning from it to not only make the technology is better, but to expand their portfolio. >>I mean, for a lot of it's based in the constant evolution of the FBI's that convo used for access and videos need parts. Technology will be backing up of the M two, backing up kubernetes containers and using that in the Secret Service's environment is Val to Tolliver's to ensure that whatever it comes to get from Lourdes cannot feel like several. It's computing environments that don't understand what what they put watch. So we can either reuse it, destroy, are used different manner, so that for us, that's great. Because obviously for our own C A c d pay planes, they're all FBI driven on to be able to use a convert production. The same kind of fashion is >>so, Scott, do you keep up on the quarterly cadence that combo doing and is there anything, uh, kind of either on the road map for things that you're asking for that would make your environment even better? >>And we're kind of used the 90 day cadences for ourselves to ensure that our own strategies are kept in check and we could take advantage off in your aunties are coming not only from convo but for other parts of our the infrastructure really be now for our only storage or a video. Various other providers that be used for insurance are dead as a decibel and used in a proper fashion. I >>want to get into a little bit of the use case, I knew that you had a number of different competing backup solutions in place. Did you start from a data started perspective, like within one division or one part of the company to maybe pilot, because you ended up with a whole bunch of different software solutions in there. Now you standardize on combo, walk us through that process, those decisions and what you're getting by having this now single pane of less >>some of the populated back up in the store sprawl was caused by individual parts of his had been able to do a little thing having little ineighty budget. So give it up. Some parts of business want to use a backup from Veritas or the emcee products that were in play at the time when we source between IBM and HDL chores each pdp for a pre media centers. So I decided another another backup restore productive in the mix. So for us, it just became untenable when we started insourcing, you know, to build a support team support organization to work after that many technologies was pretty difficult hands by way to go for 11 stop strategy. >>You said in the video. That combo had a pretty significantly higher success rate compared to some of the other solutions, so that must have made it a no brainer. >>So our backup critical applications is 99.8% successful to stay on, and that's that. That's what come won't get themselves. So that was a great comfort on the series. Is more and more of our applications move over on the convo platform, then have ah more wrong deeds approached, You know, backup success, but success in the store and say the things as well as Bella's, you know, using the analytics on a more timely fashion again for for drug and manufacturing research. >>So I know that you guys looked at our sorry spoke with a number of combat customers before you made this decision. And now here you are, on the other side of the coin, talking to a lot of combo customers. What advice would you give companies in any industry who in almost 2020 may not have a really robust data strategy? Your recommendations >>should look it over, not just our backup in the store solution. You know, the could base, which has put together for involves very powerful from the beta index. Ease with information going through construe the product to you can use out for things like D. R H A and also immigration off records. Two different defense centers are different parts of public low dreamer, you know, And the new new vision that I have for the analytics is very powerful as well. Forget the name of this tour today that someone that, you know, maybe we've started to use ourselves in a big way. We've got a little science team within my operation, which is made in that they are not coming, that they're more efficient manner. Feed that into our. Praised the architecture so that they could take advantage of what? Worried they got their own confines and makes out with what they need to do for for new discoveries. >>Scott, thank you for joining. Stewing me on the cube today, sharing with us what you're doing at AstraZeneca and looking forward to hearing the next molecule that discovers some great breakthrough. >>Thank you. >>First to Minutemen. I'm Lisa Martin. You're watching the cue from combo go 19

(technological music) >> From Yorktown Heights, New York, it's theCUBE covering IBM Cloud Innovation Day, brought to you by IBM. >> Hi, I'm Peter Burris and we are broadcasting theCUBE from IBM Innovation Day at the Thomas J. Watson Research Lab in Yorktown, New York. We've got a great number of guests to talk about. We're going to start with Hillery Hunter, who's the CTO and vice-president of cloud infrastructure at IBM. Hillery, welcome to theCUBE. >> Thank you very much. Pleasure to be here. >> So, you're relatively new in your role. Tell us about some of the things that you're focusing on as the CTO of cloud infrastructure here at IBM. >> As CTO for cloud infrastructure, I'm focused on making our cloud the best possible place that it can be for people to bring their data, bring their applications, and overall, come into that modernization journey with us, the process of transforming to become a digital enterprise. >> So, one of the things that people talk about all the time is how fast data's being generated. Nobody seems to be talking about how fast software is being generated, and yet, that seems to be one of the advantages and potentially the liabilities of doing cloud wrong. Talk to us a little bit about how IBM sees the world of software changing as we move forward with the cloud. >> [Hillery] There are parts that are consistent with what we've seen for about the past 20 years in open source, and there are parts that certainly, we feel like are accelerating and changing. With regard to the pace of software and its change today, open source is clearly this innovation space. It's this playground where lots of people can go and can contribute. We can take... We're here at the IBM research facility. We can take the latest in innovations and math that helps us accomplish great AI and AI insights. We can take that into open source. We can take microservice integration capabilities and take it into open source and work there collaboratively with people across the industry. What we see, therefore, is a tremendous rate and pace in change of software and the capability of software and its ability to analyze data and bring insights to data and realize the promises of big data, of getting insight out of that data, is just really on a tremendous growth rate. When you move to cloud, you're not just doing what they used to say of converting capital expense on premises into opex and renting a server in the cloud. You're bringing your overall workload and modernizing it and bringing it into this era where you're able to apply through microservices and cloud-based programming methodology, you're able to bring the latest of software capability to your data and get more insights out of it. >> You're really able to alter the operating model of how not only your technology group works, but also how your business works. >> Absolutely. >> How does Red Hat play a role in this? >> We have shared principles with Red Hat. We both have been active in the open source communities. IBM famously had billion dollars of investment in LINUX going back 20 years ago, and Red Hat is a prominent name in open source. We have a shared understanding of the value of open source and the value of rate and pace of innovation that's commensurate with what open source provides. We have a shared value around what enterprises need and a shared client-centric view that you need support on your software, that you need certifications, that you expect security, those kind of things. There's tremendous amount of shared value proposition in what we see as the rate and pace of innovation as well as then moving that into an enterprise context. Enterprises make these choices very carefully. As consumers of enterprise capabilities, we expect them to guard our data, we expect them to do things on our data in a secure way, and there are many foundational elements in philosophy that are similar between the two of us. >> You mentioned that cloud started out as this notion of capex to opex, move all your data to a single place, let somebody else deal with it. Increasingly, enterprise is starting to recognize that their data may sometimes have to remain in place. We start talking about innovation, open source, these new classes of services. What is it going to mean to bring the cloud experience to the data from IBM's perspective? >> We really see that the data today exists in multiple places, that largely because of that, people are partway through their journey to overall modernization. They're partway through their journey to the cloud. We really think that the world is going to be hybrid, meaning that... Or, the world is hybrid, I guess I would say, meaning that there is data and there is cloud function needed on premises and in public clouds. There's a need for private, dedicated environments in the public cloud as well. There's a significant amount of IT that is currently traditional in that people are in the process of modernizing, and that may initially be through a private cloud context on the journey to overall workload modernization. We also see that the world is multi-cloud. People are using upwards of 9 clouds or more in many cases, and that, in a lot of cases, has to do with this intersection of function and data residency and being able to bring together all of those pieces of where the data needs to be or where the data currently is, and then bring software function to the data is something that we see as critically important. >> Without being too specific in the use of the word binding, today, the idea is you bring your data to a cloud supplier and then, you can run the services of that cloud supplier supplies on that data. Do you and IBM foresee a world in which the customer's going to be able to control their own data and then acquire the services from the cloud and bring it to their data? Is that the direction you think it's going to go? >> Not only do we see that it will be possible, we think that it is possible and we're putting things in market already today that enable people to bring cloud function to their data. The IBM Cloud private offerings and IBM Cloud private for data enable people to, in their environment, where their data resides, bring sophisticated data, warehousing data analytics and AI capabilities. Fundamentally, that process of workload modernization is a set of steps and it starts with data and it starts with modernization of that environment and it matures then into being able to get deep insights through the power of AI on that data. >> Let me ask you one more question. In February, IBM's going to host 30,000+ people in San Francisco. Unbelievable opportunity for networking, learning, and IBM Think. What kind of conversations do you expect that you're going to be having in Think in 2019? >> I think you hit at the heart of the conversations that we're going to be having at Think and our positioning of the hybrid multi-cloud environment. Our other core tenets there are open and open source and keeping up with the rate and pace of open source as an innovation stream, providing choice in how folks are deploying cloud and deploying systems. We also are going to be having conversations around security. That's a core enterprise value proposition and ultimately, management. You want to not just declare that the world is hybrid and multi-cloud, but provide solutions to that and we believe we have strong answers to how to bring these pieces together and enable people to successfully move at the rate and pace of innovation that they need, yet in a secure context, and leverage the ability to deploy cloud capabilities where their data currently is, be that on private or public context. >> Hillery Hunter, CTO and vice president of cloud infrastructure at IBM, thanks for talking to theCUBE here today at the IBM Innovation Day. >> Thank you so much for having me. It was a pleasure. >> And, we will be back momentarily with more conversations at IBM Innovation Day.

>> Narrator: Live from San Francisco, it's TheCUBE. Covering Samsung Developer Conference 2017 brought to you by Samsung. (techno music) >> Hello there and welcome to the special exclusive coverage of Samsung Developer Conference 2017 here at the Moscone West in San Francisco, TheCUBE's coverage. I'm John Furrier, the co-founder of SiliconANGLE Media and co-host of TheCUBE. We're here with Leah Hunter: author, thought leader, covers technology design, women in tech, a variety of things author at O'Reilly's Safari Books, Fast Company, Forbes, among a lot of other things you've done. Welcome to TheCUBE conversation here at the Samsung Developer Conference. >> Thank you. I appreciate it. >> So, Samsung obviously is tied with Google. We saw Google onstage. The story we're seeing here emerging is the edge of the network of mobile devices. That means the humans involved. That means the consumer and the technology are intersecting. This has been a big part of TheCUBE coverage, we've been looking at this for a while. We were just in China talking with Alibaba Cloud and the design ethos culture. Not just creating user experience, that's been out for a while, but it's not about speeds and feeds anymore. It's about enabling human interactions, we're seeing some bad stuff now. The fake news, all that bad behavior, but now, all the data's out there. This is a big part of the developer design now coming forward. What's your thoughts? >> Well, there are two ways that I see that playing out really powerfully and that it can play out powerfully. One, ethnography and social science is getting embedded into what people are creating now and I'm thrilled to see that, because we're at the beginning of a lot of new technologies, augmented reality is one of my specializations, and we're, you know, sure, it's been around for 60 years if you're counting that way, 15 really deeply, but we're just at the cusp of it really taking hold for consumers. And there's this opportunity for anyone developing AR specifically to build social science ethnography user research into their team to create things in a way that is, like, start as you mean to go on. We can be wise about what our future world looks like. And the second thing is around art. You know, when I came here and I sat down, you mentioned at Alibaba there had just been a conversation about art. Well, in my latest book I interviewed someone who is an artist. His name is Alex Mayhew, he did a bunch of work with Peter Gabriel, he's a digital artist who just happened to slide into technology. And because his background is in something entirely different, he approaches AR in a really different way. He just did something for an art museum in Ontario that's really fantastic and worth checking out. You can actually look up the exhibit. It's called ReBlink. I'm going to write about it, but it's there now. >> Well, you've been covering technology many ways, now you're onto AR, and also you're seeing the front range if you will of these new concepts. But before you get it there, define what ethnography is for the folks that might not know what it is. (laughs) >> Thank you. I forget, okay, so I define ethnography as kind of like seeing the world like a five year old. There's an author that I love, her name is Keri Smith. She writes children's books. I found the first copy of this at the Teat Museum. It's called How to be a Life Artist. But her books are all about close observation, collecting everything, paying attention to the world, and finding everything interesting. Being curious in the same way you do when you're a five year old. Well, that's essentially what an ethnographer does in a business context. They observe, they interview people, they go around and collect data the same way that anyone who's on the data side is doing it with numbers. They do it with quotes and observation and pictures and then aggregate that into a story. >> That brings up a great conversation we're seeing here at the Samsung conference as a trend, a mega trend if you will, and that is the blending of analog and digital. Or, they say, physical to digital. Whatever they want to call it. Internet of things is the tech buzzword, >> (Leah) Yeah >> Internet of things being the senses on devices, or wearables, or things of that nature. That is defined as the edge of the network. This is the big wave that's forcing things to be different at the tech level. So this is where this blending comes in. It's the consumerization of tech. This is a big part of these consumer companies who have to kind of get their act together on cloud computing, and a lot of tech detail. So it's coming down from the edge, the infrastructures being redefined, or replatformed as we say. How do you view that, and what does your data show for you around how companies are reacting, what are the consumer expectations? >> Well, I'm going to speak to what I'm seeing in the world because I approach the world like an ethnographer. I wander around, and I collect interesting bits of things, kind of like a magpie. >> (John) Yeah. >> One thing that I saw this week, or I saw two things that were very interesting. I was just in New York, and I walked past an area where it was branded Amazon, but it kind of looked like a carnival. And I was like, what is going on here? And basically, Amazon is doing pop-ups, I believe they said in 18 cities, they just started in New York, but it's a pop-up where you can text in, and you can buy an item on Amazon that you can't get anywhere else. In this instance it was a Nintendo. You go and you pick it up in this physical space that kind of operates like a carnival and has circusy lights and beautiful trucks and whatever. But I thought that that was the coolest blend, and they also gave me their marketing materials that kind of looked like a ticket to a carnival. But I liked that, because it was a new way a digital focused company is operating in the physical world, to your point. It's a new way of blending those. And Amazon doesn't necessarily have to do it. It's just smart marketing. But it also shows the way that companies are pushing from the internet into the physical world. Now that's also happening in reverse. There's a company I really like called Shimmy that basically uses Kinect sensors to measure your body and make custom-made swimsuits for women. They're using that digital information and they're sort of, like, pushing it, so, yeah. >> Yeah, this is a big thing, I mean, this is about reimagining the future. And I think developers, this is a developer conference, so they tried out all the shiny new toys, Bixby, which is personalization now, IOT, which is kind of a geeky message, but ultimately the developers and the ecosystem partners of Samsung have to create the future together. So the question for you is around how you see the ecosystems developing. I see developers learning more about the real world. Less being behind the wall, if you will. Being the super geeks coding away. You're seeing developers on the front lines. And I think that's super important. I do want to get it noted here that you got a book coming out. >> Yes. >> So tell us what you're working on, cause it's going to ship in December? >> Yeah, I... >> What is the book about? I mean, obviously it's chroniclizing this new wave. What is the book about? Tell us a little bit about the book you're writing. >> So I wrote a book, my last book was about industrial augmented reality specifically, and it was sponsored by PTC, so you can actually go and find it for free. They wanted something that would work around industrial AR, and I wrote it in editorial independence so it is truly my perspective, but what was interesting about that at the time I wrote it, I discovered industrial AR was the most powerful place to play, because there were real world examples of AR actually helping people. >> John: Yeah. >> Now, I've broadened that look to see okay, Goldman Sachs said that there's going to be all this growth. Are the areas that they're looking at, things like education, real estate, you know, construction, is there actually growth there? So it's a broad look at a AR. And it's on O'Reilly's Safari Books. >> John: Well, that's interesting. One of the things that's interesting, you know, I've seen many waves myself, I've been through a bunch of cycles. It used to be the consumers that would lead the trends. But you're bringing up an interesting point around AI, augmented reality, even virtual reality. The innovations coming from the enterprise side. So, industrial IOT is really hot right now cause people are connecting physical plant and equipment. You see drones and it's mostly about industrial, AR's industrial because the use cases are so obvious. >> That's right. >> Not necessarily the consumer side has it yet. So it's almost flipped the entire world around. >> But, with, you know, Pokemon Go, that did sort of give consumers the scent, a scent of, okay, this is what it is you know, with AR kit, it hasn't completely lived up to our expectations, but there has been a flurry of activity around people experimenting to see how it can be applied in a consumer way. And, frankly, you know, there are people like DHL who are starting to roll it out in a way that is somewhere between industrial use and consumer in a broad way. So it's moving there. It is nowhere near ready for it yet. >> Leah Hunter here. A thought leader, writer, author, and a new book coming out. I'll give you the final word. What are you up to? What are you going to do after this event? What's next for you? What's the next couple months look like? Obviously, you've got to jam hard on the book, get that done, what else you working on? >> (laughs) I'm an interesting person to ask that question. I produce a television show called Created Here. I'm flying to Austin after this to interview artists and musicians and shoot our next episode of the show. Then we're going to LA and then New York. >> And where are you based out of? >> Me? >> Yeah. >> San Francisco, New York, a little bit Paris, and some New Orleans. >> You're on the plane a lot. >> I am. I like my life. >> Well, you've got a great life, and obviously great work you're doing. Come by TheCUBE studio in Palo Alto, give us an update on what your findings are as you go get that new perspective of art, artistry, artisans are really going to be the craft, we believe that TheCUBE will be the future of intersecting with technology. More exclusive coverage here in Moscone West in San Francisco, this is the Cube's coverage of Samsung Developer Conference. We'll be right back with more coverage after this short break.

>>Good afternoon everyone, and thank you so much for joining us. My name is Savannah Peterson, joined by my co-host Paul for the afternoon. Very excited. Oh, Savannah. Hello. I'm, I'm pumped for this. This is our first bit together. Exactly. >>It's gonna be fun. Yes. We have a great guest to kick off with. >>We absolutely do. We're at Supercomputing 2022 today, and very excited to talk to our next guest. We're gonna be talking about data at scale and data that really matters to us joining us. Kelly Gayer, thank you so much for being here and you are with tech. Tell everyone what TAC is. >>Tech is the Texas Advanced Computing Center at the University of Texas at Austin. And thank you so much for having me here. >>It is wonderful to have you. Your smile's contagious. And one of the themes that's come up a lot with all of our guests, and we just talked about it, is how good it is to be back in person, how good it is to be around our hardware, community tech. You did some very interesting research during the pandemic. Can you tell us about that? >>I can. I did. So when we realized sort of mid-March, we realized that, that this was really not normal times and the pandemic was statement. Yes. That pandemic was really gonna touch everyone. I think a lot of us at the center and me personally, we dropped everything to plug in and that's what we do. So UT's tagline is what starts here changes the world and tax tagline is powering discoveries that change the world. So we're all about impact, but I plugged in with the research group there at UT Austin, Dr. Lauren Myers, who's an epidemiologist, and just we figured out how to plug in and compute so that we could predict the spread of, of Covid 19. >>And you did that through the use of mobility data, cell phone signals. Tell us more about what exactly you were choreographing. >>Yeah, so that was really interesting. Safe graph during the pandemic made their mobility data. Typically it was used for marketing purposes to know who was going into Walmart. The offenses >>For advertising. >>Absolutely, yeah. They made all of their mobility data available for free to people who were doing research and plugging in trying to understand Covid. 19, I picked that data up and we used it as a proxy for human behavior. So we knew we had some idea, we got weekly mobility updates, but it was really mobility all day long, you know, anonymized. I didn't know who they were by cell phones across the US by census block group or zip code if we wanted to look at it that way. And we could see how people were moving around. We knew what their neighbor, their home neighborhoods were. We knew how they were traveling or not traveling. We knew where people were congregating, and we could get some idea of, of how people were behaving. Were they really, were they really locking down or were they moving in their neighborhoods or were they going outside of their neighborhoods? >>What a, what a fascinating window into our pandemic lives. So now that you were able to do this for this pandemic, as we look forward, what have you learned? How quickly could we forecast? What's the prognosis? >>Yeah, so we, we learned a tremendous amount. I think during the pandemic we were reacting, we were really trying. It was a, it was an interesting time as a scientist, we were reacting to things almost as if the earth was moving underneath us every single day. So it was something new every day. And I've told people since I've, I haven't, I haven't worked that hard since I was a graduate student. So it was really daylight to dark 24 7 for a long period of time because it was so important. And we knew, we, we knew we were, we were being a part of history and affecting something that was gonna make a difference for a really long time. And, and I think what we've learned is that indeed there is a lot of data being collected that we can use for good. We can really understand if we get organized and we get set up, we can use this data as a means of perhaps predicting our next pandemic or our next outbreak of whatever. It is almost like using it as a canary in the coal mine. There's a lot in human behavior we can use, given >>All the politicization of, of this last pandemic, knowing what we know now, making us better prepared in theory for the next one. How confident are you that at least in the US we will respond proactively and, and effectively when the next one comes around? >>Yeah, I mean, that's a, that's a great question and, and I certainly understand why you ask. I think in my experience as a scientist, certainly at tech, the more transparent you are with what you do and the more you explain things. Again, during the pandemic, things were shifting so rapidly we were reacting and doing the best that we could. And I think one thing we did right was we admitted where we felt uncertain. And that's important. You have to really be transparent to the general public. I, I don't know how well people are gonna react. I think if we have time to prepare, to communicate and always be really transparent about it. I think those are three factors that go into really increasing people's trust. >>I think you nailed it. And, and especially during times of chaos and disaster, you don't know who to trust or what to believe. And it sounds like, you know, providing a transparent source of truth is, is so critical. How do you protect the sensitive data that you're working with? I know it's a top priority for you and the team. >>It is, it is. And we, we've adopted the medical mantra, do no harm. So we have, we feel a great responsibility there. There's, you know, two things that you have to really keep in mind when you've got sensitive data. One is the physical protection of it. And so that's, that's governed by rule, federal rules, hipaa, ferpa, whatever, whatever kind of data that you have. So we certainly focus on the physical protection of it, but there's also sort of the ethical protection of it. What, what is the quote? There's lies, damn lies and statistics. >>Yes. Twain. >>Yeah. So you, you really have to be responsible with what you're doing with the data, how you're portraying the results. And again, I think it comes back to transparency is is basically if people are gonna reproduce what I did, I have to be really transparent with what I did. >>I, yeah, I think that's super important. And one of the themes with, with HPC that we've been talking about a lot too is, you know, do people trust ai? Do they trust all the data that's going into these systems? And I love that you just talked about the storytelling aspect of that, because there is a duty, it's not, you can cut data kind of however you want. I mean, I come from marketing background and we can massage it to, to do whatever we want. So in addition to being the deputy director at Tech, you are also the DEI officer. And diversity I know is important to you probably both as an individual, but also in the work that you're doing. Talk to us about that. >>Yeah, I mean, I, I very passionate about diversity, equity and inclusion in a sense of belongingness. I think that's one of the key aspects of it. Core >>Of community too. >>I got a computer science degree back in the eighties. I was akin to a unicorn in a, in an engineering computer science department. And, but I was really lucky in a couple of respects. I had a, I had a father that was into science that told me I could do anything I, I wanted to set my mind to do. So that was my whole life, was really having that support system. >>He was cheers to dad. >>Yeah. Oh yeah. And my mom as well, actually, you know, they were educators. I grew up, you know, in that respect, very, very privileged, but it was still really hard to make it. And I couldn't have told you back in that time why I made it and, and others didn't, why they dropped out. But I made it a mission probably back, gosh, maybe 10, 15 years ago, that I was really gonna do all that I could to change the needle. And it turns out that there are a number of things that you can do grassroots. There are certainly best practices. There are rules and there are things that you really, you know, best practices to follow to make people feel more included in an organization, to feel like they belong it, shared mission. But there are also clever things that you can do with programming to really engage students, to meet people and students where they are interested and where they are engaged. And I think that's what, that's what we've done over, you know, the course of our programming over the course of about maybe since 2016. We have built a lot of programming ATAC that really focuses on that as well, because I'm determined the needle is gonna change before it's all said and done. It just really has to. >>So what, what progress have you made and what goals have you set in this area? >>Yeah, that, that's a great question. So, you know, at first I was a little bit reluctant to set concrete goals because I really didn't know what we could accomplish. I really wasn't sure what grassroots efforts was gonna be able to, you're >>So honest, you can tell how transparent you are with the data as well. That's >>Great. Yeah, I mean, if I really, most of the successful work that I've done is both a scientist and in the education and outreach space is really trust relationships. If I break that trust, I'm done. I'm no longer effective. So yeah, I am really transparent about it. But, but what we did was, you know, the first thing we did was we counted, you know, to the extent that we could, what does the current picture look like? Let's be honest about it. Start where we are. Yep. It was not a pretty picture. I mean, we knew that anecdotally it was not gonna be a great picture, but we put it out there and we leaned into it. We said, this is what it is. We, you know, I hesitated to say we're gonna look 10% better next year because I'm, I'm gonna be honest, I don't always know we're gonna do our best. >>The things that I think we did really well was that we stopped to take time to talk and find out what people were interested in. It's almost like being present and listening. My grandmother had a saying, you have two errors in one mouth for a reason, just respect the ratio. Oh, I love that. Yeah. And I think it's just been building relationships, building trust, really focusing on making a difference, making it a priority. And I think now what we're doing is we've been successful in pockets of people in the center and we are, we are getting everybody on board. There's, there's something everyone can do, >>But the problem you're addressing doesn't begin in college. It begins much, much, that's right. And there's been a lot of talk about STEM education, particularly for girls, how they're pushed out of the system early on. Also for, for people of color. Do you see meaningful progress being made there now after years of, of lip service? >>I do. I do. But it is, again, grassroots. We do have a, a, a researcher who was a former teacher at the center, Carol Fletcher, who is doing research and for CS for all we know that the workforce, so if you work from the current workforce, her projected workforce backwards, we know that digital skills of some kind are gonna be needed. We also know we have a, a, a shortage. There's debate on how large that shortage is, but about roughly about 1 million unmet jobs was projected in 2020. It hasn't gotten a lot better. We can work that problem backwards. So what we do there is a little, like a scatter shot approach. We know that people come in all forms, all shapes, all sizes. They get interested for all different kinds of reasons. We expanded our set of pathways so that we can get them where they can get on to the path all the way back K through 12, that's Carol's work. Rosie Gomez at the center is doing sort of the undergraduate space. We've got Don Hunter that does it, middle school, high school space. So we are working all parts of the problem. I am pretty passionate about what we consider opportunity youth people who never had the opportunity to go to college. Is there a way that we can skill them and get, get them engaged in some aspect and perhaps get them into this workforce. >>I love that you're starting off so young. So give us an example of one of those programs. What are you talking to kindergartners about when it comes to CS education? >>You know, I mean, gaming. Yes. Right. It's what everybody can wrap their head around. So most kids have had some sort of gaming device. You talk in the context, in the context of something they understand. I'm not gonna talk to them about high performance computing. It, it would go right over their heads. And I think, yeah, you know, I, I'll go back to something that you said Paul, about, you know, girls were pushed out. I don't know that girls are being pushed out. I think girls aren't interested and things that are being presented and I think they, I >>Think you're generous. >>Yeah. I mean, I was a young girl and I don't know why I stayed. Well, I do know why I stayed with it because I had a father that saw something in me and I had people at critical points in my life that saw something in me that I didn't see. But I think if we ch, if we change the way we teach it, maybe in your words they don't get pushed out or they, or they won't lose interest. There's, there's some sort of computing in everything we do. Well, >>Absolutely. There's also the bro culture, which begins at a very early >>Age. Yeah, that's a different problem. Yeah. That's just having boys in the classroom. Absolutely. You got >>It. That's a whole nother case. >>That's a whole other thing. >>Last question for you, when we are sitting here, well actually I've got, it's two parter, let's put it that way. Is there a tool or something you wish you could flick a magic wand that would make your job easier? Where you, you know, is there, can you identify the, the linchpin in the DEI challenge? Or is it all still prototyping and iterating to figure out the best fit? >>Yeah, that is a, that's a wonderful question. I can tell you what I get frustrated with is that, that >>Counts >>Is that I, I feel like a lot of people don't fully understand the level of effort and engagement it takes to do something meaningful. The >>Commitment to a program, >>The commitment to a program. Totally agree. It's, there is no one and done. No. And in fact, if I do that, I will lose them forever. They'll be, they will, they will be lost in the space forever. Rather. The engagement is really sort of time intensive. It's relationship intensive, but there's a lot of follow up too. And the, the amount of funding that goes into this space really is not, it, it, it's not equal to the amount of time and effort that it really takes. And I think, you know, I think what you work in this space, you realize that what you gain is, is really more of, it's, it really feels good to make a difference in somebody's life, but it's really hard to do on a shoer budget. So if I could kind of wave a magic wand, yes, I would increase understanding. I would get people to understand that it's all of our responsibility. Yes, everybody is needed to make the difference and I would increase the funding that goes to the programs. >>I think that's awesome, Kelly, thank you for that. You all heard that. More funding for diversity, equity, and inclusion. Please Paul, thank you for a fantastic interview, Kelly. Hopefully everyone is now inspired to check out tac perhaps become a, a Longhorn, hook 'em and, and come deal with some of the most important data that we have going through our systems and predicting the future of our pandemics. Ladies and gentlemen, thank you for joining us online. We are here in Dallas, Texas at Supercomputing. My name is Savannah Peterson and I look forward to seeing you for our next segment.

(upbeat music) >> Hey everyone. And welcome to this CUBE Conversation which is part of the AWS startup showcase. Season two, episode four of our ongoing series. The theme of this episode is cybersecurity, detect and protect against threats. I'm your host, Lisa Martin, and I'm pleased to be joined by the founder and CEO of Hunters.AI, Uri May. Uri, welcome to theCUBE. It's great to have you here. >> Thank you, Lisa. It's great to be here. >> Tell me a little bit about your background and the founders story. This company was only founded in 2018, so you're quite young. But gimme that backstory about what you saw in the market that really determined, this is needed. >> Yeah, absolutely. So, I mean, I think the biggest thing for us was the understanding that significant things have happened in the cybersecurity landscape for customers and technology stayed the same. I mean, we tried on solving the same... We tried on solving a big problem with the same old tools when we actually noticed that the problem has changed significantly. And we saw that change happening in two different dimensions. The first is the types of attacks that we're defending against. A decade ago, we were mostly focused on these highly sophisticated nation state efforts that included unknown techniques and tactics and highly sophisticated kind of methods. Nowadays, we're talking a lot about cyber crime gangs, whoops of people that are financially motivated or using off the shelf tools, of the shelf malware, coordinating in the dark web, attacking for money and ransom basically, versus sophisticated intelligence kind of objectives. And in the same time of that happening, we also saw what we like to refer to as explosion of the securities stack. So some of our customers are using more than 60 or 70 different security tools that are generating sometimes tens of terabytes a day of flows. That explosion of data, together with a very persistent and consistent threat that is continuously affecting customers, create a very different environment, where you need to analyze a big variety of data and you need to constantly defend yourself against stuff that are happening all the time. And that was kind of like our wake moment when we understand that the tools that are out there now might have been the right tools a decade ago, they are probably not the right tools to solve the problem now. So yeah, I think that that was kind of what led us to Hunters. And in the same time, and I think that that's my personal kind of story behind it. We used to talk a lot about the fact that we want to solve a fundamental problem. And we, as part of the ideation around Hunters and us zooming in on exactly the areas that we want to focus on in security, we talked with a lot of CSOs, we talked with a lot of industry experts, everyone directed us to the security operation center. I mean the notion that there's a lot of tools and there's always going to be a lot of tools, but eventually decisions are being made by people that are running security operation center, that are actually acting as the first line of defense. And that's where you feel that the processes are woke. That's where you feel that that technology doesn't really meet the rabel, and the rabel doesn't really meet the hold. And for us, it was a very clear sign that this is where we need to focus on. And that set us on a journey to explore red hunting and then understand that we can solve something bigger than that. And then eventually get to where we are today, which is go to market around. So holistic a platform that can help SOC analysts doing the day to day job defending the organizations. >> So you saw back in 2018, probably even before that that the SIEM market was prime and right for disruption. And only in a four year time period, there's been some pretty significant milestones and accomplishment that the team at Hunters has made in that short timeframe. Talk to me about some of those big milestones that the company has reached in just four years. >> Yeah, I think that the biggest thing and I know that it's going to sound like a cliche, but we're actually believing that I think it's the team. I mean, we're able to go to an organization of around 150 employees. All over the world, the course, I think I mean the last time that I checked, like 15 countries. That's the most amazing feeling that you can have. That ability to attract people to a single mission from all over the world and to get them collaborate and do amazing things and achieve unbelievable accomplishment. I think that's the biggest thing. The other thing for us was customers. I mean, think about it like, SIEM it's such a central and critical system. So for us as a young startup from Tel Aviv to go out to Enterprise America and convince the biggest enterprise around the world to rip and replace the the existing solutions that are being built by the biggest software brands out there and install Hunters instead, that's a huge leap of trust, that we are very grateful for, and we're trying to handle with a lot of care and a lot of responsibility. And obviously, I think that other than that, is all of the investors that we were able to attract that basically enabled all of that customer acquisition and team building and product development. And we're very fortunate to work with the biggest names out there, both from a strategic perspective and also from tier one VCs from mainly from the U.S., but from all over the world, actually that are backing us. >> Great customers, solid foundation. Hunters is built for the clouds, is powered by Snowflake. This is AWS built. Talk to me about what's in it for me from an AWS customer perspective. What's that value in it for them? >> Yeah, so I think that the most important thing, in my opinion, at least, is the security value that you're getting from it. Other than the fact that Hunters is a multi-tenant SaaS application running in AWS, it's also a system that is highly tuned and specifically built to be very effective against detecting threats inside AWS environments. So we invested a lot of time in research, in analyzing the way attackers are operating inside cloud environments, specifically in AWS. And then we model these techniques and tactics and procedures into the system. We're leveraging data sets like AWS CloudRail and CloudWatch and VPC Flow Logs, obviously AWS GuardDuty which is an amazing detection system that AWS offer to its customer, and we're able to leverage it, correlate it with other signals. And at the same time, there's also the commercial aspect and the business aspect. I mean, we're allowing AWS customers to leverage the AWS credits to the marketplace to fund same projects like Hunters that comes with a lot of efficiencies also. And with a lot of additional capabilities like I mentioned earlier. >> So let's crack open Hunters.AI. What makes this approach different? You talked about the challenges that you guys saw in the market that were gaps there, and why technology needed to come in from a disruption standpoint. But describe the differentiators. When you're talking to perspective customers, what are those key differentiators that Hunters brings to the table? >> Yeah, absolutely. So we like to divide it into three main pillars. The first pillar is everything that we do with data, that is very different from our competitors. We believe that data should be completely liberated from the analytical layer. And that's why we're storing data in a dedicated data warehouse. Snowflake, as you mentioned earlier, is one of our go to data warehouses. And that give customers the ability to own their own data. So you as a customer can opt in into using Hunters on top of your Snowflake. It's not the only way. You can also get Snowflake bundled as part of that, your Hunter subscription, but for some customers that ability to reduce vendor lock risk on data on your own and also level security data for other kind of workflows is something that is really huge. So that's the first thing that is very different. The second thing is what we like to call security engineering as a service. So when you buy Hunters, you don't just buy a data platform. You actually buy a system, a SOC platform that is already populated with use cases. So what we are saying is that in today's world the threats that we're handling as a SOC, as security operations center professionals are actually shared by 80% of the customers out there. So 80% of the customers share around 80% of the threat. And what we're basically saying is let us as a vendor, solve the detection response around that 80%. So you as a customer could focus on the 20% that is unique to your environment. Then in a lot of cases generate 80% of the impact. So that means that you are getting a lot of rebuilt tools and detections, data modeling to your integrations, automatic investigations, scoring correlations. All of these things are being continuously deployed and delivered by us because we're multi tenant SaaS. And also allowing you again to get this effortless tail key kind of solution that is very different from your experience with your current SIEM tools that usually involves a lot of tuning, professional services, configuration, et cetera. And the last aspect of it, is everything that we're doing around automation. We're leveraging very unique graph technology and what we call automatic investigation enrichments that allows us to take all of these signals that we're extracting from all over the attacks, of say AWS included, but also the endpoint and the email and the network and IOT environments and whatever automatically investigate them, load them into a graph and then automatically correlate them to what we call stones, which are basically representation of incidents that are happening across your tax office. And that's a very unique capability that we bring into the table that demonstrates our focus on the analytical lens. So it's not just log aggregation, and querying and dashboarding kind of system. It's actually a security analytic system that is able to drive real insights on top of the data that you're plugging into it. >> So talk to me, Uri, when you're in customer conversations these days the market is there's so many dynamics and flux that customers are dealing with. Obviously, the threat landscape continues to expand and really become quite amorphous as that perimeter blends. What are some of the specific challenges that security operation center or SOC teams come to you saying, help us eliminate this. We have so many tools, we've probably got limited resources. What are those challenges and how does Hunters really wipe those off the plate? >> Yeah, so I think the first and foremost has to do with the second pillar that I mentioned earlier and that's security engineering. So for most security operations centers and most organizations around the world, the feeling is that they're kind of like stuck on this third wheel. They keep on buying tools and then implementing these tools and then writing rules and then generating noise and then fine tuning the rules. And then testing the rules and understanding that the fine tuning actually generated misdetections. And they're kind of like stuck on this vicious side. And no one can really help because a lot of the stuff that they're building, they're building it in their environment. And what we're saying is that, let us do it for you. Well, that 80% that we've mentioned earlier and allows you to really focus on the stuff that you're doing and even offset your talent. So, we're not talking about really a talent reduction. Because everyone needs more talent in cybersecurity nowadays but we're talking a lot about offset. I mean, if we had a team of five people investing efforts in building walls, building automation, and now three or four of these people can go and do advanced investigations, instant response, threat hunting interval, that's meaningful. For a lot of SOCs, in a lot of cases that means either identifying and analyzing a threat in time or missing it. So, I mean, I think that that's the biggest thing. And the other thing has to do with the first thing that I mentioned earlier, and these are the data challenges. Data challenges in terms of cost, performance, the ability to absorb data sets that today's tools can't really support. I mean, for example, one of the biggest data sets that we're loading that is tremendously helpful is raw data for EDR products. Raw data for EDR products in large enterprises can get to 10, 15, 20 terabytes a day. In today's SIEMs and SOC platforms that the customers are using, this thing is just as prohibited from SOC. They can't really analyze it because it's so costly. So what we're saying is a lot of what we're seeing is a lot of customers, either not analyzing it at all, or saving it for a very little amount of time, account of days. Because they can't support the retention around it. So the ability to store huge data sets for longer period of time makes it something that a lot of big enterprises need. And to be honest, I think that in the next couple of years they would also be forced to have these kind of capabilities, even from a compliance perspective. >> So in terms of outcomes, I'm hearing reduction in costs really helping security teams utilize their resources, the ability to analyze growing volumes of data. That's only going to continue to increase as we know. Is there a customer story, Uri that you have that really, where the value proposition of Hunters really shines through? >> Yeah, I think that one thing comes to mind from those hospitality vertical and actually it's a reference customer. I mean, we can share the name. His name is booking.com. It's also publicly shown on our website. And they think the coolest thing that we were able to do with booking is give them that capability to stay up to date with the threats that they're facing. So it's not just that we saved a lot of efforts from them because we came with a lot of out of the box capabilities that they can use. We also kept them up to date with everything that they were facing. And there was a couple of cases, where we were able to detect threats that were very recently from threat perspective. Based on our ability to invest research time and efforts in everything that is going on in the ecosystem and the feedback that we got from the customer, and it's not a single of feedback. Like we're getting it a lot, is that, without you guys we wouldn't be able to do the effective research and then the implementation of this and the threat modeling and the implementation of these things in time. And walking with you kind of like made the difference between analyzing it and reacting in time and potentially blocking like a very serious bridge versus maybe finding out when it's too late. >> Huge impact there. And I'm kind of thinking, Hunters aim, might be one of the reasons that booking.com's tagline it's booking.com, booking.yeah. Yeah, we're secure. We know if we can demonstrate that to everyone that uses our service. I noticed kind of wrapping things up here, Uri. I noticed that back in I think it was January of 2022, Hunters raised about 60 million in series C. You talked about kind of being in the GTM phase, where are some of those strategic investments? What have you been doing, focusing on this year and what's to come as we round out 22? >> Yeah, absolutely. So, I mean, there's a lot of building going on. Yeah. Still, right. I mean, we're getting into that scale mode and scale phase but we're very much also building our capabilities, building our infrastructure, building our teams, building our business processes. So there's a lot of efforts going into that, but in the same time, I mean, we've being able to vary, to depending our relationship with DataBlitz which is a very important partner of us. And we got some big news coming up on that. And they were a strategic investor that participated in our series C. And in the same time we're walking in the air market which is a very interesting market for us. And we get a lot of support from one other strategic investor that joined the series C, Deutsche Telekom. And they are a huge provider in IT and security in email, other than doing a lot of other things and including T-systems and T-Mobile and everything that has to do with that. So we're getting a lot of support from them. And regardless, I think, and that ties back to what we've mentioned earlier, the ability for us to come to really big customers with the quality of investors that we have is a very important external validation. It's basically saying like this company is here to stay. We're aiming at disrupting the market. We're building something big. You can count on us by replacing this critical system that we're talking about. And sometimes it makes a difference, like sometimes for some of the customers, it means that this is something that I can rely on. Like it's not a startup that is going to be sold two months after I'm deploying it. And it's not a founder that is going to disappear on me. And for a lot of customers, these things happen, especially in an ecosystem like cybersecurity, that is so big with such a huge variety of different systems. So, yeah, I think that we're getting ready for that scale mode and hopefully it'll happen sooner than what we think. >> A lot of growth already as we mentioned in the beginning of the program. Since just 2018 it sounds like from a foundation perspective, you guys are strong, you're rocking away and ready to really take things into 2023 with such force. Uri, thank you so much for joining me on the program, talking about what Hunters.AI is up to and how you're different and why you're disrupting the SIEM market. We appreciate your insights and your time. >> Absolutely. Lisa, the pleasure was all mine. Thank you for having me. >> Likewise. For Uri May, I'm Lisa Martin. Thank you for watching our CUBE Conversation as part of the AWS startup showcase. Keep it right here for more actions on theCUBE, your leader in tech coverage. (upbeat music)

>> Narrator: From theCUBE Studios in Palo Alto, in Boston bringing you data-driven insights from theCUBE and ETR. This is "Breaking Analysis" with Dave Vellante. >> The next 10 years of cloud, they're going to differ dramatically from the past decade. The early days of cloud, deployed virtualization of standard off-the-shelf components, X86 microprocessors, disk drives et cetera, to then scale out and build a large distributed system. The coming decade is going to see a much more data-centric, real-time, intelligent, call it even hyper-decentralized cloud that will comprise on-prem, hybrid, cross-cloud and edge workloads with a services layer that will obstruct the underlying complexity of the infrastructure which will also comprise much more custom and varied components. This was a key takeaway of the guests from theCUBE on Cloud, an event hosted by SiliconANGLE on theCUBE. Welcome to this week's Wikibon CUBE Insights Powered by ETR. In this episode, we'll summarize the findings of our recent event and extract the signal from our great guests with a couple of series and comments and clips from the show. CUBE on Cloud is our very first virtual editorial event. It was designed to bring together our community in an open forum. We ran the day on our 365 software platform and had a great lineup of CEOs, CIOs, data practitioners technologists. We had cloud experts, analysts and many opinion leaders all brought together in a day long series of sessions that we developed in order to unpack the future of cloud computing in the coming decade. Let me briefly frame up the conversation and then turn it over to some of our guests. First, we put forth our view of how modern cloud has evolved and where it's headed. This graphic that we're showing here, talks about the progression of cloud innovation over time. A cloud like many innovations, it started as a novelty. When AWS announced S3 in March of 2006, nobody in the vendor or user communities really even in the trade press really paid too much attention to it. Then later that year, Amazon announced EC2 and people started to think about a new model of computing. But it was largely tire kickers, bleeding-edge developers that took notice and really leaned in. Now the financial crisis of 2007 to 2009, really created what we call a cloud awakening and it put cloud on the radar of many CFOs. Shadow IT emerged within departments that wanted to take IT in bite-sized chunks and along with the CFO wanted to take it as OPEX versus CAPEX. And then I teach transformation that really took hold. We came out of the financial crisis and we've been on an 11-year cloud boom. And it doesn't look like it's going to stop anytime soon, cloud has really disrupted the on-prem model as we've reported and completely transformed IT. Ironically, the pandemic hit at the beginning of this decade, and created a mandate to go digital. And so it accelerated the industry transformation that we're highlighting here, which probably would have taken several more years to mature but overnight the forced March to digital happened. And it looks like it's here to stay. Now the next wave, we think we'll be much more about business or industry transformation. We're seeing the first glimpses of that. Holger Mueller of Constellation Research summed it up at our event very well I thought, he basically said the cloud is the big winner of COVID. Of course we know that now normally we talk about seven-year economic cycles. He said he was talking about for planning and investment cycles. Now we operate in seven-day cycles. The examples he gave where do we open or close the store? How do we pivot to support remote workers without the burden of CAPEX? And we think that the things listed on this chart are going to be front and center in the coming years, data AI, a fully digitized and intelligence stack that will support next gen disruptions in autos, manufacturing, finance, farming and virtually every industry where the system will expand to the edge. And the underlying infrastructure across physical locations will be hidden. Many issues remain, not the least of which is latency which we talked about at the event in quite some detail. So let's talk about how the Big 3 cloud players are going to participate in this next era. Well, in short, the consensus from the event was that the rich get richer. Let's take a look at some data. This chart shows our most recent estimates of IaaS and PaaS spending for the Big 3. And we're going to update this after earning season but there's a couple of points stand out. First, we want to make the point that combined the Big 3 now account for almost $80 billion of infrastructure spend last year. That $80 billion, was not all incremental (laughs) No it's caused consolidation and disruption in the on-prem data center business and within IT shops companies like Dell, HPE, IBM, Oracle many others have felt the heat and have had to respond with hybrid and cross cloud strategies. Second while it's true that Azure and GCP they appear to be growing faster than AWS. We don't know really the exact numbers, of course because only AWS provides a clean view of IaaS and passwords, Microsoft and Google. They kind of hide them all ball on their numbers which by the way, I don't blame them but they do leave breadcrumbs and clues on growth rates. And we have other means of estimating through surveys and the like, but it's undeniable Azure is closing the revenue gap on AWS. The third is that I like the fact that Azure and Google are growing faster than AWS. AWS is the only company by our estimates to grow its business sequentially last quarter. And in and of itself, that's not really enough important. What is significant is that because AWS is so large now at 45 billion, even at their slower growth rates it grows much more in absolute terms than its competitors. So we think AWS is going to keep its lead for some time. We think Microsoft and AWS will continue to lead the pack. You know, they might converge maybe it will be a 200 just race in terms of who's first who's second in terms of cloud revenue and how it's counted depending on what they count in their numbers. And Google look with its balance sheet and global network. It's going to play the long game and virtually everyone else with the exception of perhaps Alibaba is going to be secondary players on these platforms. Now this next graphic underscores that reality and kind of lays out the competitive landscape. What we're showing here is survey data from ETR of more than 1400 CIOs and IT buyers and on the vertical axis is Net Score which measures spending momentum on the horizontal axis is so-called Market Share which is a measure of pervasiveness in the data set. The key points are AWS and Microsoft look at it. They stand alone so far ahead of the pack. I mean, they really literally, it would have to fall down to lose their lead high spending velocity and large share of the market or the hallmarks of these two companies. And we don't think that's going to change anytime soon. Now, Google, even though it's far behind they have the financial strength to continue to position themselves as an alternative to AWS. And of course, an analytics specialist. So it will continue to grow, but it will be challenged. We think to catch up to the leaders. Now take a look at the hybrid zone where the field is playing. These are companies that have a large on-prem presence and have been forced to initiate a coherent cloud strategy. And of course, including multicloud. And we include Google in this so pack because they're behind and they have to take a differentiated approach relative to AWS, and maybe cozy up to some of these traditional enterprise vendors to help Google get to the enterprise. And you can see from the on-prem crowd, VMware Cloud on AWS is stands out as having some, some momentum as does Red Hat OpenShift, which is it's cloudy, but it's really sort of an ingredient it's not really broad IaaS specifically but it's a component of cloud VMware cloud which includes VCF or VMware Cloud Foundation. And even Dell's cloud. We would expect HPE with its GreenLake strategy. Its financials is shoring up, should be picking up momentum in the future in terms of what the customers of this survey consider cloud. And then of course you could see IBM and Oracle you're in the game, but they don't have the spending momentum and they don't have the CAPEX chops to compete with the hyperscalers IBM's cloud revenue actually dropped 7% last quarter. So that highlights the challenges that that company facing Oracle's cloud business is growing in the single digits. It's kind of up and down, but again underscores these two companies are really about migrating their software install basis to their captive clouds and as well for IBM, for example it's launched a financial cloud as a way to differentiate and not take AWS head-on an infrastructure as a service. The bottom line is that other than the Big 3 in Alibaba the rest of the pack will be plugging into hybridizing and cross-clouding those platforms. And there are definitely opportunities there specifically related to creating that abstraction layer that we talked about earlier and hiding that underlying complexity and importantly creating incremental value good examples, snowfallLike what snowflake is doing with its data cloud, what the data protection guys are doing. A company like Loomio is headed in that direction as are others. So, you keep an eye on that and think about where the white space is and where the value can be across-clouds. That's where the opportunity is. So let's see, what is this all going to look like? How does the cube community think it's going to unfold? Let's hear from theCUBE Guests and theCUBE on Cloud speakers and some of those highlights. Now, unfortunately we don't have time to show you clips from every speaker. We are like 10-plus hours of video content but we've tried to pull together some comments that summarize the sentiment from the community. So I'm going to have John Furrier briefly explain what theCUBE on Cloud is all about and then let the guests speak for themselves. After John, Pradeep Sindhu is going to give a nice technical overview of how the cloud was built out and what's changing in the future. I'll give you a hint it has to do with data. And then speaking of data, Mai-Lan Bukovec, who heads up AWS is storage portfolio. She'll explain how she views the coming changes in cloud and how they look at storage. Again, no surprise, it's all about data. Now, one of the themes that you'll hear from guests is the notion of a distributed cloud model. And Zhamak Deghani, he was a data architect. She'll explain her view of the future of data architectures. We also have thoughts from analysts like Zeus Karavalla and Maribel Lopez, and some comments from both Microsoft and Google to compliment AWS's view of the world. In fact, we asked JG Chirapurath from Microsoft to comment on the common narrative that Microsoft products are not best-to-breed. They put out a one dot O and then they get better, or sometimes people say, well, they're just good enough. So we'll see what his response is to that. And Paul Gillin asks, Amit Zavery of Google his thoughts on the cloud leaderboard and how Google thinks about their third-place position. Dheeraj Pandey gives his perspective on how technology has progressed and been miniaturized over time. And what's coming in the future. And then Simon Crosby gives us a framework to think about the edge as the most logical opportunity to process data not necessarily a physical place. And this was echoed by John Roese, and Chris Wolf to experience CTOs who went into some great depth on this topic. Unfortunately, I don't have the clips of those two but their comments can be found on the CTO power panel the technical edge it's called that's the segment at theCUBE on Cloud events site which we'll share the URL later. Now, the highlight reel ends with CEO Joni Klippert she talks about the changes in securing the cloud from a developer angle. And finally, we wrap up with a CIO perspective, Dan Sheehan. He provides some practical advice on building on his experience as a CIO, COO and CTO specifically how do you as a business technology leader deal with the rapid pace of change and still be able to drive business results? Okay, so let's now hear from the community please run the highlights. >> Well, I think one of the things we talked about COVID is the personal impact to me but other people as well one of the things that people are craving right now is information, factual information, truth, textures that we call it. But here this event for us Dave is our first inaugural editorial event. Rob, both Kristen Nicole the entire cube team, SiliconANGLE on theCUBE we're really trying to put together more of a cadence. We're going to do more of these events where we can put out and feature the best people in our community that have great fresh voices. You know, we do interview the big names Andy Jassy, Michael Dell, the billionaires of people making things happen, but it's often the people under them that are the real Newsmakers. >> If you look at the architecture of cloud data centers the single most important invention was scale-out. Scale-out of identical or near identical servers all connected to a standard IP ethernet network. That's the architecture. Now the building blocks of this architecture is ethernet switches which make up the network, IP ethernet switches. And then the server is all built using general purpose x86 CPU's with DRAM, with SSD, with hard drives all connected to inside the CPU. Now, the fact that you scale these server nodes as they're called out was very, very important in addressing the problem of how do you build very large scale infrastructure using general purpose compute but this architecture, Dave is a compute centric architecture. And the reason it's a compute centric architecture is if you open this, is server node. What you see is a connection to the network typically with a simple network interface card. And then you have CPU's which are in the middle of the action. Not only are the CPU's processing the application workload but they're processing all of the IO workload what we call data centric workload. And so when you connect SSDs and hard drives and GPU is everything to the CPU, as well as to the network you can now imagine that the CPU is doing two functions. It's running the applications but it's also playing traffic cop for the IO. So every IO has to go to the CPU and you're executing instructions typically in the operating system. And you're interrupting the CPU many many millions of times a second. Now general purpose CPU and the architecture of the CPU's was never designed to play traffic cop because the traffic cop function is a function that requires you to be interrupted very, very frequently. So it's critical that in this new architecture where does a lot of data, a lot of these stress traffic the percentage of workload, which is data centric has gone from maybe one to 2% to 30 to 40%. >> The path to innovation is paved by data. If you don't have data, you don't have machine learning you don't have the next generation of analytics applications that helps you chart a path forward into a world that seems to be changing every week. And so in order to have that insight in order to have that predictive forecasting that every company needs, regardless of what industry that you're in today, it all starts from data. And I think the key shift that I've seen is how customers are thinking about that data, about being instantly usable. Whereas in the past, it might've been a backup. Now it's part of a data Lake. And if you can bring that data into a data lake you can have not just analytics or machine learning or auditing applications it's really what does your application do for your business and how can it take advantage of that vast amount of shared data set in your business? >> We are actually moving towards decentralization if we think today, like if it let's move data aside if we said is the only way web would work the only way we get access to various applications on the web or pages to centralize it We would laugh at that idea. But for some reason we don't question that when it comes to data, right? So I think it's time to embrace the complexity that comes with the growth of number of sources, the proliferation of sources and consumptions models, embrace the distribution of sources of data that they're not just within one part of organization. They're not just within even bounds of organizations that are beyond the bounds of organization. And then look back and say, okay, if that's the trend of our industry in general, given the fabric of compensation and data that we put in, you know, globally in place then how the architecture and technology and organizational structure incentives need to move to embrace that complexity. And to me that requires a paradigm shift a full stack from how we organize our organizations how we organize our teams, how we put a technology in place to look at it from a decentralized angle. >> I actually think we're in the midst of the transition to what's called a distributed cloud, where if you look at modernized cloud apps today they're actually made up of services from different clouds. And also distributed edge locations. And that's going to have a pretty profound impact on the way we go vast. >> We wake up every day, worrying about our customer and worrying about the customer condition and to absolutely make sure we dealt with the best in the first attempt that we do. So when you take the plethora of products we've dealt with in Azure, be it Azure SQL be it Azure cosmos DB, Synapse, Azure Databricks, which we did in partnership with Databricks Azure machine learning. And recently when we sort of offered the world's first comprehensive data governance solution and Azure overview, I would, I would humbly submit to you that we are leading the way. >> How important are rankings within the Google cloud team or are you focused mainly more on growth and just consistency? >> No, I don't think again, I'm not worried about we are not focused on ranking or any of that stuff. Typically I think we are worried about making sure customers are satisfied and the adding more and more customers. So if you look at the volume of customers we are signing up a lot of the large deals we did doing. If you look at the announcement we've made over the last year has been tremendous momentum around that. >> The thing that is really interesting about where we have been versus where we're going is we spend a lot of time talking about virtualizing hardware and moving that around. And what does that look like? And creating that as more of a software paradigm. And the thing we're talking about now is what does cloud as an operating model look like? What is the manageability of that? What is the security of that? What, you know, we've talked a lot about containers and moving into different, DevSecOps and all those different trends that we've been talking about. Like now we're doing them. So we've only gotten to the first crank of that. And I think every technology vendor we talked to now has to address how are they are going to do a highly distributed management insecurity landscape? Like, what are they going to layer on top of that? Because it's not just about, oh, I've taken a rack of something, server storage, compute, and virtualized it. I know have to create a new operating model around it in a way we're almost redoing what the OSI stack looks like and what the software and solutions are for that. >> And the whole idea of we in every recession we make things smaller. You know, in 91 we said we're going to go away from mainframes into Unix servers. And we made the unit of compute smaller. Then in the year, 2000 windows the next bubble burst and the recession afterwards we moved from Unix servers to Wintel windows and Intel x86 and eventually Linux as well. Again, we made things smaller going from million dollar servers to $5,000 servers, shorter lib servers. And that's what we did in 2008, 2009. I said, look, we don't even need to buy servers. We can do things with virtual machines which are servers that are an incarnation in the digital world. There's nothing in the physical world that actually even lives but we made it even smaller. And now with cloud in the last three, four years and what will happen in this coming decade. They're going to make it even smaller not just in space, which is size, with functions and containers and virtual machines, but also in time. >> So I think the right way to think about edges where can you reasonably process the data? And it obviously makes sense to process data at the first opportunity you have but much data is encrypted between the original device say and the application. And so edge as a place doesn't make as much sense as edge as an opportunity to decrypt and analyze it in the care. >> When I think of Shift-left, I think of that Mobius that we all look at all of the time and how we deliver and like plan, write code, deliver software, and then manage it, monitor it, right like that entire DevOps workflow. And today, when we think about where security lives, it either is a blocker to deploying production or most commonly it lives long after code has been deployed to production. And there's a security team constantly playing catch up trying to ensure that the development team whose job is to deliver value to their customers quickly, right? Deploy as fast as we can as many great customer facing features. They're then looking at it months after software has been deployed and then hurrying and trying to assess where the bugs are and trying to get that information back to software developers so that they can fix those issues. Shifting left to me means software engineers are finding those bugs as they're writing code or in the CIC CD pipeline long before code has been deployed to production. >> During this for quite a while now, it still comes down to the people. I can get the technology to do what it needs to do as long as they have the right requirements. So that goes back to people making sure we have the partnership that goes back to leadership and the people and then the change management aspects right out of the gate, you should be worrying about how this change is going to be how it's going to affect, and then the adoption and an engagement, because adoption is critical because you can go create the best thing you think from a technology perspective. But if it doesn't get used correctly, it's not worth the investment. So I agree, what is a digital transformation or innovation? It still comes down to understand the business model and injecting and utilizing technology to grow our reduce costs, grow the business or reduce costs. >> Okay, so look, there's so much other content on theCUBE on Cloud events site we'll put the link in the description below. We have other CEOs like Kathy Southwick and Ellen Nance. We have the CIO of UI path. Daniel Dienes talks about automation in the cloud and Appenzell from Anaplan. And a plan is not her company. By the way, Dave Humphrey from Bain also talks about his $750 million investment in Nutanix. Interesting, Rachel Stevens from red monk talks about the future of software development in the cloud and CTO, Hillary Hunter talks about the cloud going vertical into financial services. And of course, John Furrier and I along with special guests like Sergeant Joe Hall share our take on key trends, data and perspectives. So right here, you see the coupon cloud. There's a URL, check it out again. We'll, we'll pop this URL in the description of the video. So there's some great content there. I want to thank everybody who participated and thank you for watching this special episode of theCUBE Insights Powered by ETR. This is Dave Vellante and I'd appreciate any feedback you might have on how we can deliver better event content for you in the future. We'll be doing a number of these and we look forward to your participation and feedback. Thank you, all right, take care, we'll see you next time. (upbeat music)

>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle, everybody to Cuban cloud. My name is Dave Volonte, and I'll be here throughout the day with my co host, John Ferrier, who was quarantined in an undisclosed location in California. He's all good. Don't worry. Just precautionary. John, how are you doing? >>Hey, great to see you. John. Quarantine. My youngest daughter had covitz, so contact tracing. I was negative in quarantine at a friend's location. All good. >>Well, we wish you the best. Yeah, well, right. I mean, you know what's it like, John? I mean, you're away from your family. Your basically shut in, right? I mean, you go out for a walk, but you're really not in any contact with anybody. >>Correct? Yeah. I mean, basically just isolation, Um, pretty much what everyone's been kind of living on, kind of suffering through, but hopefully the vaccines are being distributed. You know, one of the things we talked about it reinvent the Amazon's cloud conference. Was the vaccine on, but just the whole workflow around that it's gonna get better. It's kind of really sucky. Here in the California area, they haven't done a good job, a lot of criticism around, how that's rolling out. And, you know, Amazon is now offering to help now that there's a new regime in the U. S. Government S o. You know, something to talk about, But certainly this has been a terrible time for Cove it and everyone in the deaths involved. But it's it's essentially pulled back the covers, if you will, on technology and you're seeing everything. Society. In fact, um, well, that's big tech MIT disinformation campaigns. All these vulnerabilities and cyber, um, accelerated digital transformation. We'll talk about a lot today, but yeah, it's totally changed the world. And I think we're in a new generation. I think this is a real inflection point, Dave. You know, modern society and the geo political impact of this is significant. You know, one of the benefits of being quarantined you'd be hanging out on these clubhouse APS, uh, late at night, listening to experts talk about what's going on, and it's interesting what's happening with with things like water and, you know, the island of Taiwan and China and U. S. Sovereignty, data, sovereignty, misinformation. So much going on to talk about. And, uh, meanwhile, companies like Mark injuries in BC firm starting a media company. What's going on? Hell freezing over. So >>we're gonna be talking about a lot of that stuff today. I mean, Cuba on cloud. It's our very first virtual editorial event we're trying to do is bring together our community. It's a it's an open forum and we're we're running the day on our 3 65 software platform. So we got a great lineup. We got CEO Seo's data Practitioners. We got a hard core technologies coming in, cloud experts, investors. We got some analysts coming in and we're creating this day long Siri's. And we've got a number of sessions that we've developed and we're gonna unpack. The future of Cloud computing in the coming decade is, John said, we're gonna talk about some of the public policy new administration. What does that mean for tech and for big tech in General? John, what can you add to that? >>Well, I think one of the things that we talked about Cove in this personal impact to me but other people as well. One of the things that people are craving right now is information factual information, truth texture that we call it. But hear this event for us, Davis, our first inaugural editorial event. Robbo, Kristen, Nicole, the entire Cube team Silicon angle, really trying to put together Morva cadence we're gonna doom or of these events where we can put out feature the best people in our community that have great fresh voices. You know, we do interview the big names Andy Jassy, Michael Dell, the billionaires with people making things happen. But it's often the people under there that are the rial newsmakers amid savory, for instance, that Google one of the most impressive technical people, he's gotta talk. He's gonna present democratization of software development in many Mawr riel people making things happen. And I think there's a communal element. We're going to do more of these. Obviously, we have, uh, no events to go to with the Cube. So we have the cube virtual software that we have been building and over years and now perfecting and we're gonna introduce that we're gonna put it to work, their dog footing it. We're gonna put that software toe work. We're gonna do a lot mawr virtual events like this Cuban cloud Cuban startup Cuban raising money. Cuban healthcare, Cuban venture capital. Always think we could do anything. Question is, what's the right story? What's the most important stories? Who's telling it and increase the aperture of the lens of the industry that we have and and expose that and fastest possible. That's what this software, you'll see more of it. So it's super exciting. We're gonna add new features like pulling people up on stage, Um, kind of bring on the clubhouse vibe and more of a community interaction with people to meet each other, and we'll roll those out. But the goal here is to just showcase it's cloud story in a way from people that are living it and providing value. So enjoy the day is gonna be chock full of presentations. We're gonna have moderated chat in these sessions, so it's an all day event so people can come in, drop out, and also that's everything's on demand immediately after the time slot. But you >>want to >>participate, come into the time slot into the cube room or breakout session. Whatever you wanna call it, it's a cube room, and the people in there chatting and having a watch party. So >>when you're in that home page when you're watching, there's a hero video there. Beneath that, there's a calendar, and you'll see that red line is that red horizontal line of vertical line is rather, it's a linear clock that will show you where we are in the day. If you click on any one of those sessions that will take you into the chat, we'll take you through those in a moment and share with you some of the guests that we have upcoming and and take you through the day what I wanted to do. John is trying to set the stage for the conversations that folks are gonna here today. And to do that, I wanna ask the guys to bring up a graphic. And I want to talk to you, John, about the progression of cloud over time and maybe go back to the beginning and review the evolution of cloud and then really talk a little bit about where we think it Z headed. So, guys, if you bring up that graphic when a W S announced s three, it was March of 2000 and six. And as you recall, John you know, nobody really. In the vendor and user community. They didn't really pay too much attention to that. And then later that year, in August, it announced E C two people really started. They started to think about a new model of computing, but they were largely, you know, chicken tires. And it was kind of bleeding edge developers that really leaned in. Um what? What were you thinking at the time? When when you saw, uh, s three e c to this retail company coming into the tech world? >>I mean, I thought it was totally crap. I'm like, this is terrible. But then at that time, I was thinking working on I was in between kind of start ups and I didn't have a lot of seed funding. And then I realized the C two was freaking awesome. But I'm like, Holy shit, this is really great because I don't need to pay a lot of cash, the Provisional Data center, or get a server. Or, you know, at that time, state of the art startup move was to buy a super micro box or some sort of power server. Um, it was well past the whole proprietary thing. But you have to assemble probably anyone with 5 to 8 grand box and go in, and we'll put a couple ghetto rack, which is basically, uh, you know, you put it into some coasting location. It's like with everybody else in the tech ghetto of hosting, still paying monthly fees and then maintaining it and provisioning that's just to get started. And then Amazon was just really easy. And then from there you just It was just awesome. I just knew Amazon would be great. They had a lot of things that they had to fix. You know, custom domains and user interface Council got better and better, but it was awesome. >>Well, what we really saw the cloud take hold from my perspective anyway, was the financial crisis in, you know, 709 It put cloud on the radar of a number of CFOs and, of course, shadow I T departments. They wanted to get stuff done and and take I t in in in, ah, pecs, bite sized chunks. So it really was. There's cloud awakening and we came out of that financial crisis, and this we're now in this 10 year plus boom um, you know, notwithstanding obviously the economic crisis with cove it. But much of it was powered by the cloud in the decade. I would say it was really about I t transformation. And it kind of ironic, if you will, because the pandemic it hits at the beginning of this decade, >>and it >>creates this mandate to go digital. So you've you've said a lot. John has pulled forward. It's accelerated this industry transformation. Everybody talks about that, but and we've highlighted it here in this graphic. It probably would have taken several more years to mature. But overnight you had this forced march to digital. And if you weren't a digital business, you were kind of out of business. And and so it's sort of here to stay. How do you see >>You >>know what this evolution and what we can expect in the coming decades? E think it's safe to say the last 10 years defined by you know, I t transformation. That's not gonna be the same in the coming years. How do you see it? >>It's interesting. I think the big tech companies are on, but I think this past election, the United States shows um, the power that technology has. And if you look at some of the main trends in the enterprise specifically around what clouds accelerating, I call the second wave of innovations coming where, um, it's different. It's not what people expect. Its edge edge computing, for instance, has talked about a lot. But industrial i o t. Is really where we've had a lot of problems lately in terms of hacks and malware and just just overall vulnerabilities, whether it's supply chain vulnerabilities, toe actual disinformation, you know, you know, vulnerabilities inside these networks s I think this network effects, it's gonna be a huge thing. I think the impact that tech will have on society and global society geopolitical things gonna be also another one. Um, I think the modern application development of how applications were written with data, you know, we always been saying this day from the beginning of the Cube data is his integral part of the development process. And I think more than ever, when you think about cloud and edge and this distributed computing paradigm, that cloud is now going next level with is the software and how it's written will be different. You gotta handle things like, where's the compute component? Is it gonna be at the edge with all the server chips, innovations that Amazon apple intel of doing, you're gonna have compute right at the edge, industrial and kind of human edge. How does that work? What's Leighton see to that? It's it really is an edge game. So to me, software has to be written holistically in a system's impact on the way. Now that's not necessarily nude in the computer science and in the tech field, it's just gonna be deployed differently. So that's a complete rewrite, in my opinion of the software applications. Which is why you're seeing Amazon Google VM Ware really pushing Cooper Netease and these service messes in the micro Services because super critical of this technology become smarter, automated, autonomous. And that's completely different paradigm in the old full stack developer, you know, kind of model. You know, the full stack developer, his ancient. There's no such thing as a full stack developer anymore, in my opinion, because it's a half a stack because the cloud takes up the other half. But no one wants to be called the half stack developer because it doesn't sound as good as Full Stack, but really Cloud has eliminated the technology complexity of what a full stack developer used to dio. Now you can manage it and do things with it, so you know, there's some work to done, but the heavy lifting but taking care of it's the top of the stack that I think is gonna be a really critical component. >>Yeah, and that that sort of automation and machine intelligence layer is really at the top of the stack. This this thing becomes ubiquitous, and we now start to build businesses and new processes on top of it. I wanna I wanna take a look at the Big Three and guys, Can we bring up the other The next graphic, which is an estimate of what the revenue looks like for the for the Big three. And John, this is I asked and past spend for the Big Three Cloud players. And it's It's an estimate that we're gonna update after earning seasons, and I wanna point a couple things out here. First is if you look at the combined revenue production of the Big Three last year, it's almost 80 billion in infrastructure spend. I mean, think about that. That Z was that incremental spend? No. It really has caused a lot of consolidation in the on Prem data center business for guys like Dell. And, you know, um, see, now, part of the LHP split up IBM Oracle. I mean, it's etcetera. They've all felt this sea change, and they had to respond to it. I think the second thing is you can see on this data. Um, it's true that azure and G C P they seem to be growing faster than a W s. We don't know the exact numbers >>because >>A W S is the only company that really provides a clean view of i s and pass. Whereas Microsoft and Google, they kind of hide the ball in their numbers. I mean, I don't blame them because they're behind, but they do leave breadcrumbs and clues about growth rates and so forth. And so we have other means of estimating, but it's it's undeniable that azure is catching up. I mean, it's still quite distance the third thing, and before I want to get your input here, John is this is nuanced. But despite the fact that Azure and Google the growing faster than a W s. You can see those growth rates. A W s I'll call this out is the only company by our estimates that grew its business sequentially last quarter. Now, in and of itself, that's not significant. But what is significant is because AWS is so large there $45 billion last year, even if the slower growth rates it's able to grow mawr and absolute terms than its competitors, who are basically flat to down sequentially by our estimates. Eso So that's something that I think is important to point out. Everybody focuses on the growth rates, but it's you gotta look at also the absolute dollars and, well, nonetheless, Microsoft in particular, they're they're closing the gap steadily, and and we should talk more about the competitive dynamics. But I'd love to get your take on on all this, John. >>Well, I mean, the clouds are gonna win right now. Big time with the one the political climate is gonna be favoring Big check. But more importantly, with just talking about covert impact and celebrating the digital transformation is gonna create a massive rising tide. It's already happening. It's happening it's happening. And again, this shift in programming, uh, models are gonna really kinda accelerating, create new great growth. So there's no doubt in my mind of all three you're gonna win big, uh, in the future, they're just different, You know, the way they're going to market position themselves, they have to be. Google has to be a little bit different than Amazon because they're smaller and they also have different capabilities, then trying to catch up. So if you're Google or Microsoft, you have to have a competitive strategy to decide. How do I wanna ride the tide If you will put the rising tide? Well, if I'm Amazon, I mean, if I'm Microsoft and Google, I'm not going to try to go frontal and try to copy Amazon because Amazon is just pounding lead of features and scale and they're different. They were, I would say, take advantage of the first mover of pure public cloud. They really awesome. It passed and I, as they've integrated in Gardner, now reports and integrated I as and passed components. So Gardner finally got their act together and said, Hey, this is really one thing. SAS is completely different animal now Microsoft Super Smart because they I think they played the right card. They have a huge installed base converted to keep office 3 65 and move sequel server and all their core jewels into the cloud as fast as possible, clarified while filling in the gaps on the product side to be cloud. So you know, as you're doing trends job, they're just it's just pedal as fast as you can. But Microsoft is really in. The strategy is just go faster trying. Keep pedaling fast, get the features, feature velocity and try to make it high quality. Google is a little bit different. They have a little power base in terms of their network of strong, and they have a lot of other big data capabilities, so they have to use those to their advantage. So there is. There is there is competitive strategy game application happening with these companies. It's not like apples, the apples, In my opinion, it never has been, and I think that's funny that people talk about it that way. >>Well, you're bringing up some great points. I want guys bring up the next graphic because a lot of things that John just said are really relevant here. And what we're showing is that's a survey. Data from E. T. R R Data partners, like 1400 plus CEOs and I T buyers and on the vertical axis is this thing called Net score, which is a measure of spending momentum. And the horizontal axis is is what's called market share. It's a measure of the pervasiveness or, you know, number of mentions in the data set. There's a couple of key points I wanna I wanna pick up on relative to what John just said. So you see A W S and Microsoft? They stand alone. I mean, they're the hyper scale er's. They're far ahead of the pack and frankly, they have fall down, toe, lose their lead. They spend a lot on Capex. They got the flywheel effects going. They got both spending velocity and large market shares, and so, but they're taking a different approach. John, you're right there living off of their SAS, the state, their software state, Andi, they're they're building that in to their cloud. So they got their sort of a captive base of Microsoft customers. So they've got that advantage. They also as we'll hear from from Microsoft today. They they're building mawr abstraction layers. Andy Jassy has said We don't wanna be in that abstraction layer business. We wanna have access to those, you know, fine grain primitives and eso at an AP level. So so we can move fast with the market. But but But so those air sort of different philosophies, John? >>Yeah. I mean, you know, people who know me know that I love Amazon. I think their product is superior at many levels on in its way that that has advantages again. They have a great sass and ecosystem. They don't really have their own SAS play, although they're trying to add some stuff on. I've been kind of critical of Microsoft in the past, but one thing I'm not critical of Microsoft, and people can get this wrong in the marketplace. Actually, in the journalism world and also in just some other analysts, Microsoft has always had large scale eso to say that Microsoft never had scale on that Amazon owned the monopoly on our franchise on scales wrong. Microsoft had scale from day one. Their business was always large scale global. They've always had infrastructure with MSN and their search and the distributive how they distribute browsers and multiple countries. Remember they had the lock on the operating system and the browser for until the government stepped in in 1997. And since 1997 Microsoft never ever not invested in infrastructure and scale. So that whole premise that they don't compete well there is wrong. And I think that chart demonstrates that there, in there in the hyper scale leadership category, hands down the question that I have. Is that there not as good and making that scale integrate in because they have that legacy cards. This is the classic innovator's dilemma. Clay Christensen, right? So I think they're doing a good job. I think their strategy sound. They're moving as fast as they can. But then you know they're not gonna come out and say We don't have the best cloud. Um, that's not a marketing strategy. Have to kind of hide in this and get better and then double down on where they're winning, which is. Clients are converting from their legacy at the speed of Microsoft, and they have a huge client base, So that's why they're stopping so high That's why they're so good. >>Well, I'm gonna I'm gonna give you a little preview. I talked to gear up your f Who's gonna come on today and you'll see I I asked him because the criticism of Microsoft is they're, you know, they're just good enough. And so I asked him, Are you better than good enough? You know, those are fighting words if you're inside of Microsoft, but so you'll you'll have to wait to see his answer. Now, if you guys, if you could bring that that graphic back up I wanted to get into the hybrid zone. You know where the field is. Always got >>some questions coming in on chat, Dave. So we'll get to those >>great Awesome. So just just real quick Here you see this hybrid zone, this the field is bunched up, and the other companies who have a large on Prem presence and have been forced to initiate some kind of coherent cloud strategy included. There is Michael Michael, multi Cloud, and Google's there, too, because they're far behind and they got to take a different approach than a W s. But as you can see, so there's some real progress here. VM ware cloud on AWS stands out, as does red hat open shift. You got VM Ware Cloud, which is a VCF Cloud Foundation, even Dell's cloud. And you'd expect HP with Green Lake to be picking up momentum in the future quarters. And you've got IBM and Oracle, which there you go with the innovator's dilemma. But there, at least in the cloud game, and we can talk about that. But so, John, you know, to your point, you've gotta have different strategies. You're you're not going to take out the big too. So you gotta play, connect your print your on Prem to your cloud, your hybrid multi cloud and try to create new opportunities and new value there. >>Yeah, I mean, I think we'll get to the question, but just that point. I think this Zeri Chen's come on the Cube many times. We're trying to get him to come on lunch today with Features startup, but he's always said on the Q B is a V C at Greylock great firm. Jerry's Cloud genius. He's been there, but he made a point many, many years ago. It's not a winner. Take all the winner. Take most, and the Big Three maybe put four or five in there. We'll take most of the markets here. But I think one of the things that people are missing and aren't talking about Dave is that there's going to be a second tier cloud, large scale model. I don't want to say tear to cloud. It's coming to sound like a sub sub cloud, but a new category of cloud on cloud, right? So meaning if you get a snowflake, did I think this is a tale? Sign to what's coming. VM Ware Cloud is a native has had huge success, mainly because Amazon is essentially enabling them to be successful. So I think is going to be a wave of a more of a channel model of indirect cloud build out where companies like the Cube, potentially for media or others, will build clouds on top of the cloud. So if Google, Microsoft and Amazon, whoever is the first one to really enable that okay, we'll do extremely well because that means you can compete with their scale and create differentiation on top. So what snowflake did is all on Amazon now. They kind of should go to azure because it's, you know, politically correct that have multiple clouds and distribution and business model shifts. But to get that kind of performance they just wrote on Amazon. So there's nothing wrong with that. Because you're getting paid is variable. It's cap ex op X nice categorization. So I think that's the way that we're watching. I think it's super valuable, I think will create some surprises in terms of who might come out of the woodwork on be a leader in a category. Well, >>your timing is perfect, John and we do have some questions in the chat. But before we get to that, I want to bring in Sargi Joe Hall, who's a contributor to to our community. Sargi. Can you hear us? All right, so we got, uh, while >>bringing in Sarpy. Let's go down from the questions. So the first question, Um, we'll still we'll get the student second. The first question. But Ronald ask, Can a vendor in 2021 exist without a hybrid cloud story? Well, story and capabilities. Yes, they could live with. They have to have a story. >>Well, And if they don't own a public cloud? No. No, they absolutely cannot. Uh hey, Sergey. How you doing, man? Good to see you. So, folks, let me let me bring in Sergeant Kohala. He's a He's a cloud architect. He's a practitioner, He's worked in as a technologist. And there's a frequent guest on on the Cube. Good to see you, my friend. Thanks for taking the time with us. >>And good to see you guys to >>us. So we were kind of riffing on the competitive landscape we got. We got so much to talk about this, like, it's a number of questions coming in. Um, but Sargi we wanna talk about you know, what's happening here in Cloud Land? Let's get right into it. I mean, what do you guys see? I mean, we got yesterday. New regime, new inaug inauguration. Do you do you expect public policy? You'll start with you Sargi to have What kind of effect do you think public policy will have on, you know, cloud generally specifically, the big tech companies, the tech lash. Is it gonna be more of the same? Or do you see a big difference coming? >>I think that there will be some changing narrative. I believe on that. is mainly, um, from the regulators side. A lot has happened in one month, right? So people, I think are losing faith in high tech in a certain way. I mean, it doesn't, uh, e think it matters with camp. You belong to left or right kind of thing. Right? But parlor getting booted out from Italy s. I think that was huge. Um, like, how do you know that if a cloud provider will not boot you out? Um, like, what is that line where you draw the line? What are the rules? I think that discussion has to take place. Another thing which has happened in the last 23 months is is the solar winds hack, right? So not us not sort acknowledging that I was Russia and then wish you watching it now, new administration might have a different sort of Boston on that. I think that's huge. I think public public private partnership in security arena will emerge this year. We have to address that. Yeah, I think it's not changing. Uh, >>economics economy >>will change gradually. You know, we're coming out off pandemic. The money is still cheap on debt will not be cheap. for long. I think m and a activity really will pick up. So those are my sort of high level, Uh, >>thank you. I wanna come back to them. And because there's a question that chat about him in a But, John, how do you see it? Do you think Amazon and Google on a slippery slope booting parlor off? I mean, how do they adjudicate between? Well, what's happening in parlor? Uh, anything could happen on clubhouse. Who knows? I mean, can you use a I to find that stuff? >>Well, that's I mean, the Amazons, right? Hiding right there bunkered in right now from that bad, bad situation. Because again, like people we said Amazon, these all three cloud players win in the current environment. Okay, Who wins with the U. S. With the way we are China, Russia, cloud players. Okay, let's face it, that's the reality. So if I wanted to reset the world stage, you know what better way than the, you know, change over the United States economy, put people out of work, make people scared, and then reset the entire global landscape and control all with cash? That's, you know, conspiracy theory. >>So you see the riches, you see the riches, get the rich, get richer. >>Yeah, well, that's well, that's that. That's kind of what's happening, right? So if you start getting into this idea that you can't actually have an app on site because the reason now I'm not gonna I don't know the particular parlor, but apparently there was a reason. But this is dangerous, right? So what? What that's gonna do is and whether it's right or wrong or not, whether political opinion is it means that they were essentially taken offline by people that weren't voted for that. Weren't that when people didn't vote for So that's not a democracy, right? So that's that's a different kind of regime. What it's also going to do is you also have this groundswell of decentralized thinking, right. So you have a whole wave of crypto and decentralized, um, cyber punks out there who want to decentralize it. So all of this stuff in January has created a huge counterculture, and I had predicted this so many times in the Cube. David counterculture is coming and and you already have this kind of counterculture between centralized and decentralized thinking and so I think the Amazon's move is dangerous at a fundamental level. Because if you can't get it, if you can't get buy domain names and you're completely blackballed by by organized players, that's a Mafia, in my opinion. So, uh, and that and it's also fuels the decentralized move because people say, Hey, if that could be done to them, it could be done to me. Just the fact that it could be done will promote a swing in the other direction. I >>mean, independent of of, you know, again, somebody said your political views. I mean Parlor would say, Hey, we're trying to clean this stuff up now. Maybe they didn't do it fast enough, but you think about how new parlor is. You think about the early days of Twitter and Facebook, so they were sort of at a disadvantage. Trying to >>have it was it was partly was what it was. It was a right wing stand up job of standing up something quick. Their security was terrible. If you look at me and Cory Quinn on be great to have him, and he did a great analysis on this, because if you look the lawsuit was just terrible. Security was just a half, asshole. >>Well, and the experience was horrible. I mean, it's not It was not a great app, but But, like you said, it was a quick stew. Hand up, you know, for an agenda. But nonetheless, you know, to start, get to your point earlier. It's like, you know, Are they gonna, you know, shut me down? If I say something that's, you know, out of line, or how do I control that? >>Yeah, I remember, like, 2019, we involved closing sort of remarks. I was there. I was saying that these companies are gonna be too big to fail. And also, they're too big for other nations to do business with. In a way, I think MNCs are running the show worldwide. They're running the government's. They are way. Have seen the proof of that in us this year. Late last year and this year, um, Twitter last night blocked Chinese Ambassador E in us. Um, from there, you know, platform last night and I was like, What? What's going on? So, like, we used to we used to say, like the Chinese company, tech companies are in bed with the Chinese government. Right. Remember that? And now and now, Actually, I think Chinese people can say the same thing about us companies. Uh, it's not a good thing. >>Well, let's >>get some question. >>Let's get some questions from the chat. Yeah. Thank you. One is on M and a subject you mentioned them in a Who do you see is possible emanate targets. I mean, I could throw a couple out there. Um, you know, some of the cdn players, maybe aka my You know, I like I like Hashi Corp. I think they're doing some really interesting things. What do you see? >>Nothing. Hashi Corp. And anybody who's doing things in the periphery is a candidate for many by the big guys, you know, by the hyper scholars and number two tier two or five hyper scholars. Right. Uh, that's why sales forces of the world and stuff like that. Um, some some companies, which I thought there will be a target, Sort of. I mean, they target they're getting too big, because off their evaluations, I think how she Corpuz one, um, >>and >>their bunch in the networking space. Uh, well, Tara, if I say the right that was acquired by at five this week, this week or last week, Actually, last week for $500 million. Um, I know they're founder. So, like I found that, Yeah, there's a lot going on on the on the network side on the anything to do with data. Uh, that those air too hard areas in the cloud arena >>data, data protection, John, any any anything you could adhere. >>And I think I mean, I think ej ej is gonna be where the gaps are. And I think m and a activity is gonna be where again, the bigger too big to fail would agree with you on that one. But we're gonna look at white Spaces and say a white space for Amazon is like a monster space for a start up. Right? So you're gonna have these huge white spaces opportunities, and I think it's gonna be an M and a opportunity big time start ups to get bought in. Given the speed on, I think you're gonna see it around databases and around some of these new service meshes and micro services. I mean, >>they there's a There's a question here, somebody's that dons asking why is Google who has the most pervasive tech infrastructure on the planet. Not at the same level of other to hyper scale is I'll give you my two cents is because it took him a long time to get their heads out of their ads. I wrote a piece of around that a while ago on they just they figured out how to learn the enterprise. I mean, John, you've made this point a number of times, but they just and I got a late start. >>Yeah, they're adding a lot of people. If you look at their who their hiring on the Google Cloud, they're adding a lot of enterprise chops in there. They realized this years ago, and we've talked to many of the top leaders, although Curry and hasn't yet sit down with us. Um, don't know what he's hiding or waiting for, but they're clearly not geared up to chicken Pete. You can see it with some some of the things that they're doing, but I mean competed the level of Amazon, but they have strength and they're playing their strength, but they definitely recognize that they didn't have the enterprise motions and people in the DNA and that David takes time people in the enterprise. It's not for the faint of heart. It's unique details that are different. You can't just, you know, swing the Google playbook and saying We're gonna home The enterprises are text grade. They knew that years ago. So I think you're going to see a good year for Google. I think you'll see a lot of change. Um, they got great people in there. On the product marketing side is Dev Solution Architects, and then the SRE model that they have perfected has been strong. And I think security is an area that they could really had a lot of value it. So, um always been a big fan of their huge network and all the intelligence they have that they could bring to bear on security. >>Yeah, I think Google's problem main problem that to actually there many, but one is that they don't They don't have the boots on the ground as compared to um, Microsoft, especially an Amazon actually had a similar problem, but they had a wide breath off their product portfolio. I always talk about feature proximity in cloud context, like if you're doing one thing. You wanna do another thing? And how do you go get that feature? Do you go to another cloud writer or it's right there where you are. So I think Amazon has the feature proximity and they also have, uh, aske Compared to Google, there's skills gravity. Larger people are trained on AWS. I think Google is trying there. So second problem Google is having is that that they're they're more focused on, I believe, um, on the data science part on their sort of skipping the cool components sort of off the cloud, if you will. The where the workloads needs, you know, basic stuff, right? That's like your compute storage and network. And that has to be well, talk through e think e think they will do good. >>Well, so later today, Paul Dillon sits down with Mids Avery of Google used to be in Oracle. He's with Google now, and he's gonna push him on on the numbers. You know, you're a distant third. Does that matter? And of course, you know, you're just a preview of it's gonna say, Well, no, we don't really pay attention to that stuff. But, John, you said something earlier that. I think Jerry Chen made this comment that, you know, Is it a winner? Take all? No, but it's a winner. Take a lot. You know the number two is going to get a big chunk of the pie. It appears that the markets big enough for three. But do you? Does Google have to really dramatically close the gap on be a much, much closer, you know, to the to the leaders in orderto to compete in this race? Or can they just kind of continue to bump along, siphon off the ad revenue? Put it out there? I mean, I >>definitely can compete. I think that's like Google's in it. Then it they're not. They're not caving, right? >>So But But I wrote I wrote recently that I thought they should even even put mawr oven emphasis on the cloud. I mean, maybe maybe they're already, you know, doubling down triple down. I just I think that is a multi trillion dollar, you know, future for the industry. And, you know, I think Google, believe it or not, could even do more. Now. Maybe there's just so much you could dio. >>There's a lot of challenges with these company, especially Google. They're in Silicon Valley. We have a big Social Justice warrior mentality. Um, there's a big debate going on the in the back channels of the tech scene here, and that is that if you want to be successful in cloud, you have to have a good edge strategy, and that involves surveillance, use of data and pushing the privacy limits. Right? So you know, Google has people within the country that will protest contract because AI is being used for war. Yet we have the most unstable geopolitical seen that I've ever witnessed in my lifetime going on right now. So, um, don't >>you think that's what happened with parlor? I mean, Rob Hope said, Hey, bar is pretty high to kick somebody off your platform. The parlor went over the line, but I would also think that a lot of the employees, whether it's Google AWS as well, said, Hey, why are we supporting you know this and so to your point about social justice, I mean, that's not something. That >>parlor was not just social justice. They were trying to throw the government. That's Rob e. I think they were in there to get selfies and being protesters. But apparently there was evidence from what I heard in some of these clubhouse, uh, private chats. Waas. There was overwhelming evidence on parlor. >>Yeah, but my point is that the employee backlash was also a factor. That's that's all I'm saying. >>Well, we have Google is your Google and you have employees to say we will boycott and walk out if you bid on that jet I contract for instance, right, But Microsoft one from maybe >>so. I mean, that's well, >>I think I think Tom Poole's making a really good point here, which is a Google is an alternative. Thio aws. The last Google cloud next that we were asked at they had is all virtual issue. But I saw a lot of I T practitioners in the audience looking around for an alternative to a W s just seeing, though, we could talk about Mano Cloud or Multi Cloud, and Andy Jassy has his his narrative around, and he's true when somebody goes multiple clouds, they put you know most of their eggs in one basket. Nonetheless, I think you know, Google's got a lot of people interested in, particularly in the analytic side, um, in in an alternative, hedging their bets eso and particularly use cases, so they should be able to do so. I guess my the bottom line here is the markets big enough to have Really? You don't have to be the Jack Welch. I gotta be number one and number two in the market. Is that the conclusion here? >>I think so. But the data gravity and the skills gravity are playing against them. Another problem, which I didn't want a couple of earlier was Google Eyes is that they have to boot out AWS wherever they go. Right? That is a huge challenge. Um, most off the most off the Fortune 2000 companies are already using AWS in one way or another. Right? So they are the multi cloud kind of player. Another one, you know, and just pure purely somebody going 200% Google Cloud. Uh, those cases are kind of pure, if you will. >>I think it's gonna be absolutely multi cloud. I think it's gonna be a time where you looked at the marketplace and you're gonna think in terms of disaster recovery, model of cloud or just fault tolerant capabilities or, you know, look at the parlor, the next parlor. Or what if Amazon wakes up one day and said, Hey, I don't like the cubes commentary on their virtual events, so shut them down. We should have a fail over to Google Cloud should Microsoft and Option. And one of people in Microsoft ecosystem wants to buy services from us. We have toe kind of co locate there. So these are all open questions that are gonna be the that will become certain pretty quickly, which is, you know, can a company diversify their computing An i t. In a way that works. And I think the momentum around Cooper Netease you're seeing as a great connective tissue between, you know, having applications work between clouds. Right? Well, directionally correct, in my opinion, because if I'm a company, why wouldn't I wanna have choice? So >>let's talk about this. The data is mixed on that. I'll share some data, meaty our data with you. About half the companies will say Yeah, we're spreading the wealth around to multiple clouds. Okay, That's one thing will come back to that. About the other half were saying, Yeah, we're predominantly mono cloud we didn't have. The resource is. But what I think going forward is that that what multi cloud really becomes. And I think John, you mentioned Snowflake before. I think that's an indicator of what what true multi cloud is going to look like. And what Snowflake is doing is they're building abstraction, layer across clouds. Ed Walsh would say, I'm standing on the shoulders of Giants, so they're basically following points of presence around the globe and building their own cloud. They call it a data cloud with a global mesh. We'll hear more about that later today, but you sign on to that cloud. So they're saying, Hey, we're gonna build value because so many of Amazon's not gonna build that abstraction layer across multi clouds, at least not in the near term. So that's a really opportunity for >>people. I mean, I don't want to sound like I'm dating myself, but you know the date ourselves, David. I remember back in the eighties, when you had open systems movement, right? The part of the whole Revolution OS I open systems interconnect model. At that time, the networking stacks for S N A. For IBM, decadent for deck we all know that was a proprietary stack and then incomes TCP I p Now os I never really happened on all seven layers, but the bottom layers standardized. Okay, that was huge. So I think if you look at a W s or some of the comments in the chat AWS is could be the s n a. Depends how you're looking at it, right? And you could say they're open. But in a way, they want more Amazon. So Amazon's not out there saying we love multi cloud. Why would they promote multi cloud? They are a one of the clouds they want. >>That's interesting, John. And then subject is a cloud architect. I mean, it's it is not trivial to make You're a data cloud. If you're snowflake, work on AWS work on Google. Work on Azure. Be seamless. I mean, certainly the marketing says that, but technically, that's not trivial. You know, there are latent see issues. Uh, you know, So that's gonna take a while to develop. What? Do your thoughts there? >>I think that multi cloud for for same workload and multi cloud for different workloads are two different things. Like we usually put multiple er in one bucket, right? So I think you're right. If you're trying to do multi cloud for the same workload, that's it. That's Ah, complex, uh, problem to solve architecturally, right. You have to have a common ap ice and common, you know, control playing, if you will. And we don't have that yet, and then we will not have that for a for at least one other couple of years. So, uh, if you if you want to do that, then you have to go to the lower, lowest common denominator in technical sort of stock, if you will. And then you're not leveraging the best of the breed technology off their from different vendors, right? I believe that's a hard problem to solve. And in another thing, is that that that I always say this? I'm always on the death side, you know, developer side, I think, uh, two deaths. Public cloud is a proxy for innovative culture. Right. So there's a catch phrase I have come up with today during shower eso. I think that is true. And then people who are companies who use the best of the breed technologies, they can attract the these developers and developers are the Mazen's off This digital sort of empires, amazingly, is happening there. Right there they are the Mazen's right. They head on the bricks. I think if you don't appeal to developers, if you don't but extensive for, like, force behind educating the market, you can't you can't >>put off. It's the same game Stepping story was seeing some check comments. Uh, guard. She's, uh, linked in friend of mine. She said, Microsoft, If you go back and look at the Microsoft early days to the developer Point they were, they made their phones with developers. They were a software company s Oh, hey, >>forget developers, developers, developers. >>You were if you were in the developer ecosystem, you were treated his gold. You were part of the family. If you were outside that world, you were competitors, and that was ruthless times back then. But they again they had. That was where it was today. Look at where the software defined businesses and starve it, saying it's all about being developer lead in this new way to program, right? So the cloud next Gen Cloud is going to look a lot like next Gen Developer and all the different tools and techniques they're gonna change. So I think, yes, this kind of developer ecosystem will be harnessed, and that's the power source. It's just gonna look different. So, >>Justin, Justin in the chat has a comment. I just want to answer the question about elastic thoughts on elastic. Um, I tell you, elastic has momentum uh, doing doing very well in the market place. Thea Elk Stack is a great alternative that people are looking thio relative to Splunk. Who people complain about the pricing. Of course it's plunks got the easy button, but it is getting increasingly expensive. The problem with elk stack is you know, it's open source. It gets complicated. You got a shard, the databases you gotta manage. It s Oh, that's what Ed Walsh's company chaos searches is all about. But elastic has some riel mo mentum in the marketplace right now. >>Yeah, you know, other things that coming on the chat understands what I was saying about the open systems is kubernetes. I always felt was that is a bad metaphor. But they're with me. That was the TCP I peep In this modern era, C t c p I p created that that the disruptor to the S N A s and the network protocols that were proprietary. So what KUBERNETES is doing is creating a connective tissue between clouds and letting the open source community fill in the gaps in the middle, where kind of way kind of probably a bad analogy. But that's where the disruption is. And if you look at what's happened since Kubernetes was put out there, what it's become kind of de facto and standard in the sense that everyone's rallying around it. Same exact thing happened with TCP was people were trashing it. It is terrible, you know it's not. Of course they were trashed because it was open. So I find that to be very interesting. >>Yeah, that's a good >>analogy. E. Thinks the R C a cable. I used the R C. A cable analogy like the VCRs. When they started, they, every VC had had their own cable, and they will work on Lee with that sort of plan of TV and the R C. A cable came and then now you can put any TV with any VCR, and the VCR industry took off. There's so many examples out there around, uh, standards And how standards can, you know, flair that fire, if you will, on dio for an industry to go sort of wild. And another trend guys I'm seeing is that from the consumer side. And let's talk a little bit on the consuming side. Um, is that the The difference wouldn't be to B and B to C is blood blurred because even the physical products are connected to the end user Like my door lock, the August door lock I didn't just put got get the door lock and forget about that. Like I I value the expedience it gives me or problems that gives me on daily basis. So I'm close to that vendor, right? So So the middle men, uh, middle people are getting removed from from the producer off the technology or the product to the consumer. Even even the sort of big grocery players they have their APs now, uh, how do you buy stuff and how it's delivered and all that stuff that experience matters in that context, I think, um, having, uh, to be able to sell to thes enterprises from the Cloud writer Breuder's. They have to have these case studies or all these sample sort off reference architectures and stuff like that. I think whoever has that mawr pushed that way, they are doing better like that. Amazon is Amazon. Because of that reason, I think they have lot off sort off use cases about on top of them. And they themselves do retail like crazy. Right? So and other things at all s. So I think that's a big trend. >>Great. Great points are being one of things. There's a question in there about from, uh, Yaden. Who says, uh, I like the developer Lead cloud movement, But what is the criticality of the executive audience when educating the marketplace? Um, this comes up a lot in some of my conversations around automation. So automation has been a big wave to automate this automate everything. And then everything is a service has become kind of kind of the the executive suite. Kind of like conversation we need to make everything is a service in our business. You seeing people move to that cloud model. Okay, so the executives think everything is a services business strategy, which it is on some level, but then, when they say Take that hill, do it. Developers. It's not that easy. And this is where a lot of our cube conversations over the past few months have been, especially during the cova with cute virtual. This has come up a lot, Dave this idea, and start being around. It's easy to say everything is a service but will implement it. It's really hard, and I think that's where the developer lead Connection is where the executive have to understand that in order to just say it and do it are two different things. That digital transformation. That's a big part of it. So I think that you're gonna see a lot of education this year around what it means to actually do that and how to implement it. >>I'd like to comment on the as a service and subject. Get your take on it. I mean, I think you're seeing, for instance, with HP Green Lake, Dell's come out with Apex. You know IBM as its utility model. These companies were basically taking a page out of what I what I would call a flawed SAS model. If you look at the SAS players, whether it's salesforce or workday, service now s a P oracle. These models are They're really They're not cloud pricing models. They're they're basically you got to commit to a term one year, two year, three year. We'll give you a discount if you commit to the longer term. But you're locked in on you. You probably pay upfront. Or maybe you pay quarterly. That's not a cloud pricing model. And that's why I mean, they're flawed. You're seeing companies like Data Dog, for example. Snowflake is another one, and they're beginning to price on a consumption basis. And that is, I think, one of the big changes that we're going to see this decade is that true cloud? You know, pay by the drink pricing model and to your point, john toe, actually implement. That is, you're gonna need a whole new layer across your company on it is quite complicated it not even to mention how you compensate salespeople, etcetera. The a p. I s of your product. I mean, it is that, but that is a big sea change that I see coming. Subject your >>thoughts. Yeah, I think like you couldn't see it. And like some things for this big tech exacts are hidden in the plain >>sight, right? >>They don't see it. They they have blind spots, like Look at that. Look at Amazon. They went from Melissa and 200 millisecond building on several s, Right, Right. And then here you are, like you're saying, pay us for the whole year. If you don't use the cloud, you lose it or will pay by month. Poor user and all that stuff like that that those a role models, I think these players will be forced to use that term pricing like poor minute or for a second, poor user. That way, I think the Salesforce moral is hybrid. They're struggling in a way. I think they're trying to bring the platform by doing, you know, acquisition after acquisition to be a platform for other people to build on top off. But they're having a little trouble there because because off there, such pricing and little closeness, if you will. And, uh, again, I'm coming, going, going back to developers like, if you are not appealing to developers who are writing the latest and greatest code and it is open enough, by the way open and open source are two different things that we all know that. So if your platform is not open enough, you will have you know, some problems in closing the deals. >>E. I want to just bring up a question on chat around from Justin didn't fitness. Who says can you touch on the vertical clouds? Has your offering this and great question Great CP announcing Retail cloud inventions IBM Athena Okay, I'm a huge on this point because I think this I'm not saying this for years. Cloud computing is about horizontal scalability and vertical specialization, and that's absolutely clear, and you see all the clouds doing it. The vertical rollouts is where the high fidelity data is, and with machine learning and AI efforts coming out, that's accelerated benefits. There you have tow, have the vertical focus. I think it's super smart that clouds will have some sort of vertical engine, if you will in the clouds and build on top of a control playing. Whether that's data or whatever, this is clearly the winning formula. If you look at all the successful kind of ai implementations, the ones that have access to the most data will get the most value. So, um if you're gonna have a data driven cloud you have tow, have this vertical feeling, Um, in terms of verticals, the data on DSO I think that's super important again, just generally is a strategy. I think Google doing a retail about a super smart because their whole pitches were not Amazon on. Some people say we're not Google, depending on where you look at. So every of these big players, they have dominance in the areas, and that's scarce. Companies and some companies will never go to Amazon for that reason. Or some people never go to Google for other reasons. I know people who are in the ad tech. This is a black and we're not. We're not going to Google. So again, it is what it is. But this idea of vertical specialization relevant in super >>forts, I want to bring to point out to sessions that are going on today on great points. I'm glad you asked that question. One is Alan. As he kicks off at 1 p.m. Eastern time in the transformation track, he's gonna talk a lot about the coming power of ecosystems and and we've talked about this a lot. That that that to compete with Amazon, Google Azure, you've gotta have some kind of specialization and vertical specialization is a good one. But of course, you see in the big Big three also get into that. But so he's talking at one o'clock and then it at 3 36 PM You know this times are strange, but e can explain that later Hillary Hunter is talking about she's the CTO IBM I B M's ah Financial Cloud, which is another really good example of specifying vertical requirements and serving. You know, an audience subject. I think you have some thoughts on this. >>Actually, I lost my thought. E >>think the other piece of that is data. I mean, to the extent that you could build an ecosystem coming back to Alan Nancy's premise around data that >>billions of dollars in >>their day there's billions of dollars and that's the title of the session. But we did the trillion dollar baby post with Jazzy and said Cloud is gonna be a trillion dollars right? >>And and the point of Alan Answer session is he's thinking from an individual firm. Forget the millions that you're gonna save shifting to the cloud on cost. There's billions in ecosystems and operating models. That's >>absolutely the business value. Now going back to my half stack full stack developer, is the business value. I've been talking about this on the clubhouses a lot this past month is for the entrepreneurs out there the the activity in the business value. That's the new the new intellectual property is the business logic, right? So if you could see innovations in how work streams and workflow is gonna be a configured differently, you have now large scale cloud specialization with data, you can move quickly and take territory. That's much different scenario than a decade ago, >>at the point I was trying to make earlier was which I know I remember, is that that having the horizontal sort of features is very important, as compared to having vertical focus. You know, you're you're more healthcare focused like you. You have that sort of needs, if you will, and you and our auto or financials and stuff like that. What Google is trying to do, I think that's it. That's a good thing. Do cook up the reference architectures, but it's a bad thing in a way that you drive drive away some developers who are most of the developers at 80 plus percent, developers are horizontal like you. Look at the look into the psyche of a developer like you move from company to company. And only few developers will say I will stay only in health care, right? So I will only stay in order or something of that, right? So they you have to have these horizontal capabilities which can be applied anywhere on then. On top >>of that, I think that's true. Sorry, but I'll take a little bit different. Take on that. I would say yes, that's true. But remember, remember the old school application developer Someone was just called in Application developer. All they did was develop applications, right? They pick the framework, they did it right? So I think we're going to see more of that is just now mawr of Under the Covers developers. You've got mawr suffer defined networking and software, defined storage servers and cloud kubernetes. And it's kind of like under the hood. But you got your, you know, classic application developer. I think you're gonna see him. A lot of that come back in a way that's like I don't care about anything else. And that's the promise of cloud infrastructure is code. So I think this both. >>Hey, I worked. >>I worked at people solved and and I still today I say into into this context, I say E r P s are the ultimate low code. No code sort of thing is right. And what the problem is, they couldn't evolve. They couldn't make it. Lightweight, right? Eso um I used to write applications with drag and drop, you know, stuff. Right? But But I was miserable as a developer. I didn't Didn't want to be in the applications division off PeopleSoft. I wanted to be on the tools division. There were two divisions in most of these big companies ASAP. Oracle. Uh, like companies that divisions right? One is the cooking up the tools. One is cooking up the applications. The basketball was always gonna go to the tooling. Hey, >>guys, I'm sorry. We're almost out of time. I always wanted to t some of the sections of the day. First of all, we got Holder Mueller coming on at lunch for a power half hour. Um, you'll you'll notice when you go back to the home page. You'll notice that calendar, that linear clock that we talked about that start times are kind of weird like, for instance, an appendix coming on at 1 24. And that's because these air prerecorded assets and rather than having a bunch of dead air, we're just streaming one to the other. So so she's gonna talk about people, process and technology. We got Kathy Southwick, whose uh, Silicon Valley CEO Dan Sheehan was the CEO of Dunkin Brands and and he was actually the c 00 So it's C A CEO connecting the dots to the business. Daniel Dienes is the CEO of you I path. He's coming on a 2:47 p.m. East Coast time one of the hottest companies, probably the fastest growing software company in history. We got a guy from Bain coming on Dave Humphrey, who invested $750 million in Nutanix. He'll explain why and then, ironically, Dheeraj Pandey stew, Minuteman. Our friend interviewed him. That's 3 35. 1 of the sessions are most excited about today is John McD agony at 403 p. M. East Coast time, she's gonna talk about how to fix broken data architectures, really forward thinking stuff. And then that's the So that's the transformation track on the future of cloud track. We start off with the Big Three Milan Thompson Bukovec. At one oclock, she runs a W s storage business. Then I mentioned gig therapy wrath at 1. 30. He runs Azure is analytics. Business is awesome. Paul Dillon then talks about, um, IDs Avery at 1 59. And then our friends to, um, talks about interview Simon Crosby. I think I think that's it. I think we're going on to our next session. All right, so keep it right there. Thanks for watching the Cuban cloud. Uh huh.

>> Narrator: From around the globe it's theCUBE, with digital coverage of AWS reinvent 2020 special coverage sponsored by AWS global partner network. >> Hello, and welcome to theCUBE virtual with our special coverage of AWS reinvent 2020 with additional special coverage of APN partner experience. We are theCUBE virtual and I'm your host, Justin Warren. And today I'm joined by Angelos Kottas who is vice president of product marketing at elastic and he comes to us from San Francisco. Angelos , welcome to theCUBE. >> Thank you, Justin. A pleasure to join you. >> Great to have you here. Now. I've been a big fan of elastic for a while have used your products in a variety of circumstances? You're big partners of AWS and have seen quite a bit of change over the last couple of years. We were talking just before we came on air. Maybe you could talk us through what elastic is doing with AWS and a little bit about those changes that you've seen over the last >> Absolutely one period. >> Sounds good Justin. So first of all many people know elastic as the makers of elastic search. One of the most popular open source of search engines and along with elastic search we have Kibana and beats and Logstash and many people know us as the Elk Stack, right? And so clearly we have roots in the open source community and people have used us for custom applications for years and years. One of the key changes over the last few years is that we've realized that many customers were doing some of the same things with elastic. So we said, what if we really focus on end to end experiences for our three core use cases? And so we chose three use cases and built solutions around them. What is enterprise search, right? Which is how do you find information on your website in your application or in your workspace? The second is observability. So think about software development software in every industry. What about dev ops? What about performance? What about consistency and last but not least, especially you know, with some of the current transitions in digital transformation, think about security. Think about your network security, your endpoint security and how you have visibility across your entire IT ecosystem. So we've chosen those three solution areas and put significant engineering into building out that experience. How quickly can we deliver value, how pre-built can the configuration be the integrations be, the workflow, the reporting and the dashboards around those use cases. The last piece, which is very relevant for reinvent is the transition to cloud, right? So we still offer a downloadable software and many of our customers and users download the elastic stack and deploy it on-prem and hybrid cloud environments. But one of the fastest growing deployment models is in the public cloud. And of course, elastic cloud on AWS is one of our major routes to market, happy to meet many of our customers where they are, which is on AWS. >> Oh it's great to be able to have that choice I think that people can download the software try and get it, get comfortable with it but then people often find that actually running software yourself, there's quite a lot of work involved in doing that. I know that I, I've experienced that myself. Just little things like maintenance and so on. So it sounds like you're actually taking care of a lot of that for customers if they move to the cloud service. But is there anything else special about the cloud service that customers might not be that aware of? >> Well, I mean, choice is a big part of it and so it's not just do I choose cloud it's wearing cloud. So we've actually, we now run elastic cloud in over 40 regions around the world. So we can be close to you in terms of latency, and in terms of performance, in terms of data sovereignty we can be local to your environment. The other aspect it's not just how we simplify deploying elastic. You know, clearly we architect it we install it, deploy and upgraded for you. But also we have focused quite a bit on integrating cloud data sources. So with AWS, as an example, we look at all of the applications and data sources that you host on AWS. And we think about how do we get those data streams how do we get that data directly integrated into elastic. One final piece, actually which I forget sometimes it's not the technical side. It's the business side is the commercial integration, right? So we are, you know, very happy to to be listed on the AWS marketplace. We've made it easy for you to find, deploy and actually build through your AWS commercial agreements via the marketplace integration. >> Right, so easy to get started and to start using it and search is certainly something that elastic is famous for. But you mentioned observability there, a bit of a question I have around observability is, is it that just a fancy way of saying monitoring? There seems to be this, this buzzword around the place. So what do you mean when you say observability? >> So one of the key foundational principles of the elastic observability solution is that, you know you want a unified data database a unified place to store all that data. So it is stretching across logs metrics, application traces it's bringing together a common platform that lets you look at different aspects of observability. So whether you're doing end to end application traces or whether you're just collecting infrastructure logs and looking at performance metrics it's kind of across the board, even looking at things in our most recent release that just came out last week, you know expanding on user experience, monitoring and synthetics. So you can optimize web interactions and web experiences, for example. >> Right. Okay. So there's a bunch of different types of data that are involved there. I know traditionally people would silo those off into a specific customized thing just for that particular type of workload. What is it about elastic that means that you can put all of these in one place? >> Yeah. You know, one of early catchphrases for what does elastic do? What do we focus on? The value we deliver is speed, scale and relevance. And so one of the things that is famous about the elastic way of doing things is the way in which we index data on ingest and so that you can get search queries that return within milliseconds and so that performance characteristics. A second one is scale. And this is actually really key, not just for observability but right next to observability, you get security as well. We like to say, if you're going to observe you might as well protect as well. So when you expand to that universe you have not just hundreds of devices you might have thousands or tens of thousands of devices that you are ingesting information whether it's operational data, whether it's security data. So scale becomes extremely significant. How can you scale horizontally and vertically and maintain that performance even when you are in a fortune 500 scale infrastructure The last piece is relevance. And so, you know that data it's not just about knowing what to look for. It's about using things like machine learning and anomaly detection to uncover unusual patterns of behavior and proactively alerting and making that visible through notifications and through alerts that can actually integrate not just with your elastic operations but actually with third party software. Maybe you want to trigger a service now ticket or a, you know, a Slack integration and all of that is part of the elastic platform as well. >> Right? Okay. So by putting everything kind of in one place that is around what you're talking about. So we have enterprise search and then to be able to find things we're collecting all of the data that we need to find things. And then you touched on security at the beginning and we're starting to talk around security there. So I'm keen to move on to that >> (chuckles) >> By looking at all of these, these different, these signals we can hopefully then manage some of security which I know is very much front of mind for everyone over the last year. Cyber security has very much come to the forefront of everyone's thinking. >> Absolutely. And you know, we've been on the network side of security for some time. So we've had our SIM solution, you know security information event monitoring, but we made a very strategic acquisition a little over a year ago. We saw that a critical piece of visibility is also the end point. And so we partnered with end game and eventually we acquired end game to create end to end visibility on that security. So it is being able to connect, you know the path of data from your servers and network devices all the way to the end points. And an example of the power of this unified architecture is the new elastication that we introduced in beta a couple of months ago. We said, what if we had a single deployment that both does endpoint protection and does malware scanning of your endpoint devices while also ingesting data into your observability systems. And so that's kind of the power of the platform the ability to use common infrastructure common integrations, so that every use case you adopt on top of elastic, it sort of multiplies the value you're getting from using elastic as an infrastructure player. >> Alright that's a good combining a couple of different things into the one tool that you can use. I know sys who I'd spoken to are quite concerned about the proliferation of tools that they have in their environment, it seems that they've bought lots of different things but a lot of them are kind of sitting in a drawer, not really being used. And partly, it's just, we we have so many different ways of dealing with these issues. None of it's really flushed out or sorry has been fully fleshed out that we definitely know this is the one true way to solve this. So what are you hearing from customers as they start to use these security functions? What are they telling you about the way that they're managing security in their environments? >> Well, you know, we think about a few different personas in the security market, right? We think about threat hunters, for example who are looking to identify threats, we're looking at the operations team that do the cleanup that do the you know, the resolution of security threats. And we also, so there's a, you know, there's two competing terms in the security market. We have security operations in the observability world. We have dev ops, right? And, and developer, you know, the continue of developer and deployment into a dev ops role. And so we're starting to see this concept of DevSecOps, right? What if there is a unified set it's not all things to all people and that's an important thing, right? We're not trying to be, your single security vendor for all IT security needs, but instead we're saying, what if you had a security operations analyst, a thrent Hunter an executive, a CSO who's looking for, you know an overall level of threat or compliance to policy and you can bring those experiences together through the elastic security solution. >> Right? So it sounds like you you're trying to allow people to work in the way that they need to providing them the tools that suit their particular circumstance. >> That's right. That's right. I mean, in terms of how do you define success? You look at metrics like meantime to resolution, you know can we reduce the meantime to resolution or you look at law collection and how much more efficiently can you collect logs? You look at asset monitoring and what percentage of your IT infrastructure you actually have unified visibility into, you know we have one great cloud customer OALEKS group. They are a popular online marketplace, you know and they quoted to us that they had a 1900% increase in law collection, right. In terms of scope of what they are collecting logs on they reduce that MTTR by 30% for security incidents so dramatically streamlined and shortened the exposure. And then they increased asset monitoring by 35% across cloud, as well as on-prem. And I think that's the other piece is that, you know whether you deploy your security in the cloud or on-prem you are looking to secure your hybrid environment. And so being able to take data feeds from your SAS partners from your infrastructure running on AWS as well as from those endpoint devices. >> Well, it sounds like there's plenty of scope of interesting things for people to come and have a look at it, at elastic. So, Angelos, thank you so much for joining us here, please. Thank you to my guests Angelos Kottas, vice president of product marketing at elastic. You've been watching theCUBE virtual and our coverage of AWS reinvent 2020 with special coverage of APN partner experience. Make sure you check out all our coverage on your desktop laptop or on your phone, wherever you are. I've been your host, Justin Warren. And I look forward to seeing you again soon. (upbeat music)

>>long from Las Vegas. It's the Q covering a ws re invent 2019. Brought to you by Amazon Web service is and in along with its ecosystem partners. >>Welcome back here in the Cube, we continue our coverage here Day one, a day Ws re invent 2019 were on the show floor You could probably see behind the city's packed is exciting. Great exhibits, great keynotes this morning, Dan. A lot from Andy Jassy, Justin Warren. John Walls were joined by Jasper Singh, who is the founder and CEO of DRUVA. Good to have you here on the Cube. Thank you very much. And I say a whiner whose principal technologist at a. W s and I say it Good to see you this morning. Thanks very much. Thanks for being here. First off, tell me a little bit about drove up for folks at home. Might not be familiar. And then we're gonna get into your relationship with a W s. And why the two of you are sitting in first. Just a little thumbnail about druva. >>Sure, as we all know, data is growing by leaps and bounds on dhe. Data management prediction has been a big challenge for all enterprises driven the SAS platform very long. AWS, which helps him manage to get up and do it from the center to deal in the cloud toe at the educations, simply console to manage protection governance management on a single pane of glass. All >>right, so the two of you together we were talking before the interview a little bit about maybe some of these common attributes or shared values which make your partnership. I wouldn't say unique, but certainly make it work. So go over that a little bit about maybe we're that synergy exists where you see that overlap in your mission and why you think it's working so well for you to reveal your partnership. Once you're Jeffrey, why don't you jump on that? Isaiah? I >>think we saw a big chain in the enterprise landscape Hunter team and I made personally met Fiona Vogel back then and understood that big change and enterprise buying when it comes to a public cloud, data belongs to public cloud, the weeds growing and eventually manage on rebuild the entire rocket picture around the whole notion off a centralized sort of a data lake to predict it manageable on Arab us. We thought about eight of us in public cloud of completely different operating system. It's not just not about our technology team kicked out of the business changes with people want to buy an S L. A. Across the global consistent price point so delivered already have toe, understand how they built differently, operate differently security point of view cost part of you and also sell differently. You're gonna market partnerships you're setting motion procurement. All changes to be redesigned, reactivated entire drove our experience around Public Cloud And Amazon is in a great partner all throughout to build a story on top of the platform not just to based technology on, but are breeding a printing model on selling motion on and course introduced to customer benefits on. >>So one of the things that customers tell us is that when they come to the cloud, they want less stuff to manage. And it can be difficult sometimes to deal the new set of primitives. You know, the way things worked in your data center understanding locality, these sorts of things. A lot of this stuff gets abstracted in the cloud, and so druva help sort of take away all of that and create a simple solution for customers. They've been doing this for a long time, actually, you know, offering full SAS solution to customers not only who want to protect data in the cloud, but also on Prem to the cloud. And the way that eight of us goes about an Amazon in general goes about creating things for customers is way. Have what we call a working backwards process. And it all ties back to our first of 14 leaders, principles, customer obsession. And so one of the things that's really nice about working with druva is that they also have a working backwards process. And so we get to do a lot of that stuff together there, also a customer. So, you know, it's not just a partnership there. Also a customer, because they operate this SAS platform. And so, for quite a long time, for example, they've been one of the larger dynamodb customers. They've developed tight relationships with our service teams way our field knows them, you know, if you ask the field, you know, name a backup provider, you know chances are pretty good. They're gonna know Drew right, so and because they're all in on eight of us, it gives us an opportunity to launch things together. So when we have new storage classes in the past and new devices, new offerings Drew has been a launch partner on multiple occasions. I >>was gonna ask about that. A lien on AWS, like as a customer if I'm buying some clouds. So it's like I want to buy an S l A a cz you mentioned. Just do it. Do it. Really care which cloud you you picked as a customer >>customer. You really cared about an SL for for data recovery, which you need a guarantee across the group. That's a simplest part. So in that context, they don't care. But it goes beyond that. Data and infrastructure is very connected to shoot for the enterprise they wanted, you know, just to be recovered. But integrated with other service is, for example, Panis is are they have other value. Our service is you want to be part of the whole story from that perspective because there is so integral to their lesson strategy. They do care about where we're building this new every center from my data management, but they are getting more and more fragmented in both centralized way to manage. The more centralized way happens to be on the best known of embroidery, which happens to have all the service is to surround it of it. You do start to care about you know how they're holding me may transform the journey of data for the customer >>Ueno from the Kino this morning that I think it's only about 3% of total spend is on clouds, and there is room for a cloud to grow here. But that also means that there's a lot of data that sitting out there that isn't actually in the cloud. So a cloud based backup service like how the customers who already have existing onsite data, How should they think about this? You mentioned that they need to think about it in a different way and change the way that you experienced backup. So how how the customers start to understand what they should be doing differently and how they should think about their data in a different way. To start looking at something like the river >>Absolutely reversal. Ashley's got people, plus one that typically customers have 3.1 bucket solutions in their in their environment. They don't accept it, but they do have multiple softness. They always are the new one to replace an old one, but it still keep their legacy on what they need to do. What I do when I was to look for meditators before driven were tons and tons of legacy being managing very cars. And then I was always very, very hard. You have to spend a lot of time to manage all throughout, withdrew. Our philosophy is that your next generation of workloads, your next edition of evolution towards loud used to happen in river for a legacy. You could still keep the legacy software's IBM better cars. Let's keep on doing what you do with them. You're next. Attrition off architecture refresh, Refresh should happen in >>a zone old back of admin Who's gone through that process multiple times. Managing tape is a nightmare. Yes, I can. I can absolutely attest that that is the process. That enterprise tends to go through it like you want to pick something that you want to put all the new stuff on. Do you? Do you see anyone actually bringing data from their old system that they migrated across. So they just go, You know what? We'll just wait for it to die. >>I think a lot of people do a mix of both right today. They may have a cold data with a more humanity move toe deep archive a glacier from active data management part if you want to see how do it, how do they change processes to impact date evolution From now on 1st 1st 1st and foremost before they started, Look at old arcade media could be born on a CZ. Well, I think with evolution of deep archive, evolution off other service is much cheaper than tapes. It's about time that people start now, look at older technology that how do you know Maybe encompasses? Well, >>yeah, To me, this stuff is kind of hard. All right, on down might be oversimplifying, but you've got your warm data. You got stuff, it's cold. That might sit there for years. And we're gonna work, you know, we're never gonna worry about it again. But I have to decide what's warmer. What's cold. If I've got legacy and I've got new, I've got to decide what I want to bring over what I don't and then I've got the edge. I've got a i ot I've got all this stuff. No exponential growth data scale. So to me, it's it's It's a confounding problem of I'm in enterprise. It's already got my stuff going, as opposed to. If I'm totally born on the cloud, right, that's a how do you deal with? It's easy to do it from scratch. It's a lot harder to do it when I've got I'm bringing all his baggage with me and why do I want to bring on that headache? >>So I want you to think about it, says that you know, where would you want to innovate and start their first like a zombie? This is said that this morning in Kenya, or that whenever someone tells you you have one tool for it all, they probably wrong about it. Right? You. It's all for the best tool for the best problems. So you look at the way you really wouldn't want it any way you start there first to bring in the cloud first, then it slowly insanity. Start to lower your workload by getting rid of legacy or by re factoring in overtime. >>You've been doing this for a little while, So I assume that this isn't This isn't something that only just a couple of people of dipping their toe in the water and trying out. You told us before they actually had quite a bit of success with this. >>I think whenever there's an interesting problem, this competition. So we do have some new age companies coming to tow. What we do for a living drama is heading scale we announced this morning. We're $100 revenue run rate of business. So you just thought about building it right? But as I mentioned, it's about operating unit scale will be run about six million back after a week, with more than with better than 0.1% efficiency. It successfully the amount of paranoia going into security cost optimization Dev Ops Mount Off Hardware goes into building a good market motion to buy from marketplace by consumption models is very different from from legacy. Technology for side is only the first body, but Amazon has done for industry, which we're leading with cheerleading and we're falling. Example off is how you transform the buying baby of customer was something radically simple than ever before. >>You know, as a that's been been really a topic, and he's talked about it a lot. This transformation versus transition. It's kind of like being a little bit pregnant, you know, you have to transform yourself right and maybe it's not dipping the toe, but it's diving in that deep end. So from the AWS perspective and from what we've been hearing, just free talk about put it in that in that context, if you will, about people who are, I guess, willing to make a full fledged commitment and jump in and go is supposed to dabble in a little bit and maybe being a little bit pregnant, >>I mean something you mentioned earlier about two people. Just let let stuff rot. Yes, there is some of that like, don't get me wrong. I talked with customers all the time and they have three different backup providers. But the fact is, is that when they go to the cloud they look at okay, where can I cut and run, you know, And when they look at their the things that not only matter in order for them to transition their operations into the cloud. But then they look at, like, the new rate of data creation that they've got going on in the cloud. They sort of a lot of customers. They look at the old models of of enterprise, back of sweets and they say, Okay, I know how to operate this, But do I want to? Or they look at it, You know, some of the finer things. Like, you know, am I doing all the right things from a security perspective? In all of the right connection points across all of the right pieces of software, the answer may not be yes. Or maybe the answer is yes. And they look at other things, like, you know, what is my r p o gonna be? What is my rto gonna be? Can I abandon my eight of us account because of about actor scenario and go to another account and do a restore without having to have infrastructure in there? First you can if it's in somebody else's infrastructure in this case druva right. So, like there's there's a hard way to do things in an easy way to do things and drew has done things. Arguably, I would say they've done things the hard way so that customers can do things the easy way. It's probably a good way to characterize it. Early on, Druva decided that they didn't want to be in the infrastructure business, so they built something on top of a platform that would allow them to stop having to worry about that stuff. And if you're trying to on board a lot of customers concurrently than that, something that you want to scale automatically right, you know these kinds of things. When we talk to customers and customers ask us questions like You know what? Our customers using toe back up in eight of us. They often ask qualifying questions like I'm in a certain region or I'm in govcloud or I have too much data on prim for my bandwidth capabilities. And I don't really want to get into a new three year contract because I want to shut down this data center in October and it's, you know, maybe it's September, you know, maybe I don't have a lot of runway on, so they're looking for things like support for Snowball Edge. They're looking for things like not having Thio worry about. Do I have to modify all of my traditional applications to take advantage of other storage tears or my cold data? How do I get it into something like Amazon has three glacier deep archives without having to really know how that works on DSO. When these folks look at the clouds, they think aws because of all of the things that AWS enables them to do without them having to have, ah, a massive learning curve. When it comes to data protection in the cloud, Dhruv is doing the same thing. >>Well, the good news for Justin and me and Isaiah's, Jasper said. You hit 100 million. So dinner's on you tonight. This is great. I look, congratulations. Thank you. That is a big number and congratulate great success. Wish you all the best down the road and thank you both for being with us here on the Q. We appreciate that. Thanks very much. Back with more live here in Las Vegas. You're watching the Cuban eight of us. Raven 2019

>> From our studios, in the heart of Silicon Valley, Palo Alto, California, this is a CUBE Conversation. >> Welcome to this CUBE Conversation here in Palo Alto, California. I'm John Furrier, host of theCUBE. We are here with Arpit Joshipura, GM of Networking, Edge, IoT for the Linux Foundation. Arpit, great to see you again, welcome back to theCUBE, thanks for joining us. >> Thank you, thank you. Happy to be here. >> So obviously, we love the Linux Foundation. We've been following all the events; we've chatted in the past about networking. Computer storage and networking just doesn't seem to go away with cloud and on-premise hybrid cloud, multicloud, but open-source software continues to surpass expectations, growth, geographies outside the United States and North America, just overall, just greatness in software. Everything's an abstraction layer now; you've got Kubernetes, Cloud Native- so many good things going on with software, so congratulations. >> Well thank you. No, I think we're excited too. >> So you guys got a big event coming up in China: OSS, Open Source Summit, plus KubeCon. >> Yep. >> A lot of exciting things, I want to talk about that in a second. But I want to get your take on a couple key things. Edge and IoT, deep learning and AI, and networking. I want to kind of drill down with you. Tell us what's the updates on the projects around Linux Foundation. >> Okay. >> The exciting ones. I mean, we know Cloud Native CNCF is going to take up more logos, more members, keeps growing. >> Yep. >> Cloud Native clearly has a lot of opportunity. But the classic in the set, certainly, networking and computer storage is still kicking butt. >> Yeah. So, let me start off by Edge. And the fundamental assumption here is that what happened in the cloud and core is going to move to the Edge. And it's going to be 50, 100, 200 times larger in terms of opportunity, applications, spending, et cetera. And so what LF did was we announced a very exciting project called Linux Foundation Edge, as an umbrella, earlier in January. And it was announced with over 60 founding members, right. It's the largest founding member announcement we've had in quite some time. And the reason for that is very simple- the project aims at unifying the fragmented edge in IoT markets. So today, edge is completely fragmented. If you talk to clouds, they have a view of edge. Azure, Amazon, Baidu, Tencent, you name it. If you talk to the enterprise, they have a view of what edge needs to be. If you talk to the telcos, they are bringing the telecom stack close to the edge. And then if you talk to the IoT vendors, they have a perception of edge. So each of them are solving the edge problems differently. What LF Edge is doing, is it is unifying a framework and set of frameworks, that allow you to create a common life cycle management framework for edge computing. >> Yeah. >> Now the best part of it is, it's built on five exciting technologies. So people ask, "You know, why now?" So, there are five technologies that are converging at the same time. 5G, low latency. NFV, network function virtualization, so on demand. AI, so predictive analytics for machine learning. Container and microservices app development, so you can really write apps really fast. And then, hardware development: TPU, GPU, NPU. Lots of exciting different size and shapes. All five converging; put it close to the apps, and you have a whole new market. >> This is, first of all, complicated in the sense of... cluttered, fragmented, shifting grounds, so it's an opportunity. >> It's an opportunity. >> So, I get that- fragmented, you've got the clouds, you've got the enterprises, and you've got the telcos all doing their own thing. >> Yep. >> So, multiple technologies exploding. 5G, Wi-Fi 6, a bunch of other things you laid out, >> Mhmm. >> all happening. But also, you have all those suppliers, right? >> Yes. >> And, so you have different manufacturers-- >> And different layers. >> So it's multiple dimensions to the complexity. >> Correct, correct. >> What are you guys seeing, in terms of, as a solution, what's motivating the founding members; when you say unifying, what specifically does that mean? >> What that means is, the entire ecosystem from those markets are coming together to solve common problems. And I always sort of joke around, but it's true- the common problems are really the plumbing, right? It's the common life cycle management, how do you start, stop, boot, load, log, you know, things like that. How do you abstract? Now in the Edge, you've 400, 500 interfaces that comes into an IoT or an edge device. You know, Zigbee, Bluetooth, you've got protocols like M2T; things that are legacy and new. Then you have connectivity to the clouds. Devices of various forms and shapes. So there's a lot of end by end problems, as we call it. So, the cloud players. So for LF Edge for example, Tencent and Baidu and the cloud leaders are coming together and saying, "Let's solve it once." The industrial IoT player, like Dynamic, OSIsoft, they're coming in saying, "Let's solve it once." The telcos- AT&T, NTT, they're saying "Let's solve it once. And let's solve this problem in open-source. Because we all don't need to do it, and we'll differentiate on top." And then of course, the classic system vendors that support these markets are all joining hands. >> Talk about the business pressure real quick. I know, you look at, say, Alibaba for instance, and the folks you mentioned, Tencent, in China. They're perfecting the edge. You've got videos at the edge; all kinds of edge devices; people. >> Correct. >> So there's business pressures, as well. >> The business pressure is very simple. The innovation has to speed up. The cost has to go down. And new apps are coming up, so extra revenue, right? So because of these five technologies I mentioned, you've got the top killer apps in edge are anything that is, kind of, video but not YouTube. So, anything that the video comes from 360 venues, or drones, things like that. Plus, anything that moves, but that's not a phone. So things like connected cars, vehicles. All of those are edge applications. So in LF Edge, we are defining edge as an application that requires 20 milliseconds or less latency. >> I can't wait for someone to define- software define- "edge". Or, it probably is defined. A great example- I interviewed an R&D engineer at VMware yesterday in San Francisco, it was at the RADIO event- and we were just riffing on 5G, and talking about software at the edge. And one of the advances >> Yes. >> that's coming is splicing the frequency so that you can put software in the radios at the antennas, >> Correct. Yeah. >> so you can essentially provision, in real time. >> Correct, and that's a telco use case, >> Yeah. >> so our projects at the LF Edge are EdgeX Foundry, Akraino, Edge Virtualization Engine, Open Glossary, Home Edge. There's five and growing. And all of these software projects can allow you to put edge blueprints. And blueprints are really reference solutions for smart cities, manufacturing, telcos, industrial gateways, et cetera et cetera. So, lots of-- >> It's kind of your fertile ground for entrepreneurship, too, if you think about it, >> Correct; startups are huge. >> because, just the radio software that splices the radio spectrum is going to potentially maybe enable a service provider market, and towers, right? >> Correct, correct. >> Own my own land, I can own the tower and rent it out, one radio. >> Yep. >> So, business model innovations also an opportunity, >> It's a huge-- >> not just the business pressure to have an edge, but-- >> Correct. So technology, business, and market pressures. All three are colliding. >> Yeah, perfect storm. >> So edge is very exciting for us, and we had some new announcements come out in May, and more exciting news to come out in June, as well. >> And so, going back to Linux Foundation. If I want to learn more. >> LFEdge.org. >> That's kind of the CNCF of edge, if you will, right? Kind of thing. >> Yeah. It's an umbrella with all the projects, and that's equivalent to the CNCF, right. >> Yeah. >> And of course it's a huge group. >> So it's kind of momentum. 64 founding members-- >> Huge momentum. Yeah, now we are at 70 founding members, and growing. >> And how long has it been around? >> The umbrella has been around for about five months; some of the projects have been around for a couple of years, as they incubate. >> Well let us know when the events start kicking in. We'll get theCUBE down there to cover it. >> Absolutely. >> Super exciting. Again, multiple dimensions of innovation. Alright, next topic, one of my favorites, is AI and deep learning. AI's great. If you don't have data you can't really make AI work; deep learning requires data. So this is a data conversation. What's going on in the Linux Foundation around AI and deep learning? >> Yeah. So we have a foundation called LF Deep Learning, as you know. It was launched last year, and since then we have significantly moved it forward by adding more members, and obviously the key here is adding more projects, right. So our goal in the LF Deep Learning Foundation is to bring the community of data scientists, researchers, entrepreneurs, academia, and users to collaborate. And create frameworks and platforms that don't require a PhD to use. >> So a lot of data ingestion, managing data, so not a lot of coding, >> Platforms. >> more data analyst, and/or applications? >> It's more, I would say, platforms for use, right? >> Yeah. >> So frameworks that you can actually use to get business outcomes. So projects include Acumos, which is a machine learning framework and a marketplace which allows you to, sort of, use a lot of use cases that can be commonly put. And this is across all verticals. But I'll give you a telecom example. For example, there is a use case, which is drones inspecting base stations-- >> Yeah. >> And doing analytics for maintenance. That can be fed into a marketplace, used by other operators worldwide. You don't have to repeat that. And you don't need to understand the details of machine learning algorithms. >> Yeah. >> So we are trying to do that. There are projects that have been contributed from Tencent, Baidu, Uber, et cetera. Angel, Elastic Deep Learning, Pyro. >> Yeah. >> It's a huge investment for us. >> And everybody wins when there's contribution, because data's one of those things where if there's available, it just gets smarter. >> Correct. And if you look at deep learning, and machine learning, right. I mean obviously there's the classic definition; I won't go into that. But from our perspective, we look at data and how you can share the data, and so from an LF perspective, we have something called a CDLA license. So, think of an Apache for data. How do you share data? Because it's a big issue. >> Big deal. >> And we have solved that problem. Then you can say, "Hey, there's all these machine learning algorithms," you know, TensorFlow, and others, right. How can you use it? And have plugins to this framework? Then there's the infrastructure. Where do you run these machine learning? Like if you run it on edge, you can run predictive maintenance before a machine breaks down. If you run it in the core, you can do a lot more, right? So we've done that level of integration. >> So you're treating data like code. You can bring data to the table-- >> And then-- >> Apply some licensing best practices like Apache. >> Yes, and then integrate it with the machine learning, deep learning models, and create platforms and frameworks. Whether it's for cloud services, for sharing across clouds, elastic searching-- >> And Amazon does that in terms of they vertically integrate SageMaker, for instance. >> That's exactly right. >> So it's a similar-- >> And this is the open-source version of it. >> Got it- oh, that's awesome. So, how does someone get involved here, obviously developers are going to love this, but-- >> LF Deep Learning is the place to go, under Linux Foundation, similar to LF Edge, and CNCF. >> So it's not just developers. It's also people who have data, who might want to expose it in. >> Data scientists, databases, algorithmists, machine learning, and obviously, a whole bunch of startups. >> A new kind of developer, data developer. >> Right. Exactly. And a lot of verticals, like the security vertical, telecom vertical, enterprise verticals, finance, et cetera. >> You know, I've always said- you and I talked about this before, and I always rant on theCUBE about this- I believe that there's going to be a data development environment where data is code, kind of like what DevOps did with-- >> It's the new currency, yeah. >> It's the new currency. >> Yeah. Alright, so final area I want to chat with you before we get into the OSS China thing: networking. >> Yeah. >> Near and dear to your heart. >> Near and dear to my-- >> Networking's hot now, because if you bring IoT, edge, AI, networking, you've got to move things around-- >> Move things around, (laughs) right, so-- >> And you still need networking. >> So we're in the second year of the LF Networking journey, and we are really excited at the progress that has happened. So, projects like ONAP, OpenDaylight, Tungsten Fabric, OPNFV, FDio, I mean these are now, I wouldn't say household names, but business enterprise names. And if you've seen, pretty much all the telecom providers- almost 70% of the subscribers covered, enabled by the service providers, are now participating. Vendors are completely behind it. So we are moving into a phase which is really the deployment phase. And we are starting to see, not just PoCs [Proofs of Concept], but real deployments happening, some of the major carriers now. Very excited, you know, Dublin, ONAP's Dublin release is coming up, OPNFV just released the Hunter release. Lots of exciting work in Fido, to sort of connect-- >> Yeah. >> multiple projects together. So, we're looking at it, the big news there is the launch of what's called OVP. It's a compliance and verification program that cuts down the deployment time of a VNF by half. >> You know, it's interesting, Stu and I always talk about this- Stu Miniman, CUBE cohost with me- about networking, you know, virtualization came out and it was like, "Oh networking is going to change." It's actually helped networking. >> It helped networking. >> Now you're seeing programmable networks come out, you see Cisco >> And it's helped. >> doing a lot of things, Juniper as well, and you've got containers in Kubernetes right around the corner, so again, this is not going to change the need, it's going to- It's not going to change >> It's just a-- >> the desire and need of networking, it's going to change what networking is. How do you describe that to people? Someone saying, "Yeah, but tell me what's going on in networking? Virtualization, we got through that wave, now I've got the container, Kubernetes, service mesh wave, how does networking change? >> Yeah, so it's a four step process, right? The first step, as you rightly said, virtualization, moved into VMs. Then came disaggregation, which was enabled by the technology SDN, as we all know. Then came orchestration, which was last year. And that was enabled by projects like ONAP and automation. So now, all of the networks are automated, fully running, self healing, feedback closed control, all that stuff. And networks have to be automated before 5G and IoT and all of these things hit, because you're no longer talking about phones. You're talking about things that get connected, right. So that's where we are today. And that journey continues for another two years, and beyond. But very heavy focused on deployment. And while that's happening, we're looking at the hybrid version of VMs and containers running in the network. How do you make that happen? How do you translate one from the other? So, you know, VNFs, CNFs, everything going at the same time in your network. >> You know what's exciting is with the software abstractions emerging, the hard problems are starting to emerge because as it gets more complicated, end by end problems, as you said, there's a lot of new costs and complexities, for instance, the big conversation at the Edge is, you don't want to move data around. >> No, no. >> So you want to move compute to the edge, >> You can, yeah-- >> But it's still a networking problem, you've still got edge, so edge, AI, deep learning, networking all tied together-- >> They're all tied together, right, and this is where Linux Foundation, by developing these projects, in umbrellas, but then allowing working groups to collaborate between these projects, is a very simple governance mechanism we use. So for example, we have edge working groups in Kubernetes that work with LF Edge. We have Hyperledger syncs that work for telecoms. So LFN and Hyperledger, right? Then we have automotive-grade Linux, that have connected cars working on the edge. Massive collaboration. But, that's how it is. >> Yeah, you connect the dots but you don't, kind of, force any kind of semantic, or syntax >> No. >> into what people can build. >> Each project is autonomous, >> Yeah. >> and independent, but related. >> Yeah, it's smart. You guys have a good view, I'm a big fan of what you guys are doing. Okay, let's talk about the Open Source Summit and KubeCon, happening in China, the week of the 24th of June. >> Correct. >> What's going on, there's a lot of stuff going on beyond Cloud Native and Linux, what are some of the hot areas in China that you guys are going to be talking about? I know you're going over. >> Yeah, so, we're really excited to be there, and this is, again, life beyond Linux and Cloud Native; there's a whole dimension of projects there. Everything from the edge, and the excitement of Iot, cloud edge. We have keynotes from Tencent, and VMware, and all the Chinese- China Mobile and others, that are all focusing on the explosive growth of open-source in China, right. >> Yeah, and they have a lot of use cases; they've been very aggressive on mobility, Netdata, >> Very aggressive on mobility, data, right, and they have been a big contributor to open-source. >> Yeah. >> So all of that is going to happen there. A lot of tracks on AI and deep learning, as a lot more algorithms come out of the Tencents and the Baidus and the Alibabas of the world. So we have tracks there. We have huge tracks on networking, because 5G and implementation of ONAP and network automation is all part of the umbrella. So we're looking at a cross-section of projects in Open Source Summit and KubeCon, all integrated in Shanghai. >> And a lot of use cases are developing, certainly on the edge, in China. >> Correct. >> A lot of cross pollination-- >> Cross pollination. >> A lot of fragmentation has been addressed in China, so they've kind of solved some of those problems. >> Yeah, and I think the good news is, as a global community, which is open-source, whether it's Europe, Asia, China, India, Japan, the developers are coming together very nicely, through a common governance which crosses boundaries. >> Yeah. >> And building on use cases that are relevant to their community. >> And what's great about what you guys have done with Linux Foundation is that you're not taking positions on geographies, because let the clouds do that, because clouds have-- >> Clouds have geographies, >> Clouds, yeah they have agents-- >> Edge may have geography, they have regions. >> But software's software. (laughs) >> Software's software, yeah. (laughs) >> Arpit, thanks for coming in. Great insight, loved talking about networking, the deep learning- congratulations- and obviously the IoT Edge is hot, and-- >> Thank you very much, excited to be here. >> Have a good trip to China. Thanks for coming in. >> Thank you, thank you. >> I'm John Furrier here for CUBE Conversation with the Linux Foundation; big event in China, Open Source Summit, and KubeCon in Shanghai, week of June 24th. It's a CUBE Conversation, thanks for watching.