>> Announcer: theCUBE's live coverage is made possible by funding from Dell Technologies, creating technologies that drive human progress. (upbeat music) >> Welcome to the Fira in Barcelona, everybody. This is theCUBE's coverage of MWC 23, day one of that coverage. We have four days of wall-to-wall action going on, the place is going crazy. I'm here with Dave Nicholson, Lisa Martin is also in the house. Today's ecosystem day, and we're really excited to have Manish Singh who's the CTO of the Telecom Systems Business unit at Dell Technologies. He's joined by Doug Wolf who's the head of strategy for the Telecom Systems Business unit at Dell. Gents, welcome. What a show. I mean really the first major MWC or used to be Mobile World Congress since you guys have launched your telecom business, you kind of did that sort of in the Covid transition, but really exciting, obviously a huge, huge venue to match the huge market. So Manish, how did you guys get into this? What did you see? What was the overall thinking to get Dell into this business? >> Manish: Yeah, well, I mean just to start with you know, if you look at the telecom ecosystem today, the service providers in particular, they are looking for network transformation, driving more disaggregation into their network so that they can get better utilization of the infrastructure, but then also get more agility, more cloud native characteristics onto their, for their networks in particular. And then further on, it's important for them to really start to accelerate the pace of innovation on the networks itself, to start more supply chain diversity, that's one of the challenges that they've been having. And so there've been all these market forces that have been really getting these service providers to really start to transform the way they have built the infrastructure in the past, which was legacy monolithic architectures to more cloud native disaggregated. And from a Dell perspective, you know, that really gives us the permission to play, to really, given all the expertise on the work we have done in the IT with all the IT transformations to leverage all that expertise and bring that to the service providers and really help them in accelerating their network transformation. So that's where the journey started. We've been obviously ever since then working on expanding the product portfolio on our compute platforms to bring Teleco great compute platforms with more capabilities than we can talk about that. But then working with partners and building the ecosystem to again create this disaggregated and open ecosystem that will be more cloud native and really meet the objective that the service providers are after. >> Dave Vellante: Great, thank you. So, Doug the strategy obviously is to attack this market, as Manish said, from an open standpoint, that's sort of new territory. It's like a little bit like the wild, wild west. So maybe you could double click on what Manish was saying from a, from a strategy standpoint, yes, the Telecos need to be more flexible, they need to be more open, but they also need this reliability piece. So talk about that from a strategy standpoint of what you guys saw. >> Doug: Yeah, absolutely. As Manish mentioned, you know, Dell getting into open systems isn't something new. You know, Dell has been kind of playing in that world for years and years, but the opportunity in Telecom that came was opening of the RAN, the core network, the edge, all of these with 5G really created a wide opening for us. So we started developing products and solutions, you know, built our first Telecom grade servers for open RAN over the last year, we'll talk about those at the show. But you know, as, as Manish mentioned, an open ecosystem is new to Telecom. I've been in the Telecom business along with Manish for, you know, 25 plus years and this is a new thing that they're embarking on. So started with virtualization about five, six years ago, and now moving to cloud native architectures on the core, suddenly there's this need to have multiple parties partner really well, share specifications, and put that together for an operator to consume. And I think that's just the start of really where all the challenges are and the opportunities that we see. >> Where are we in this transition cycle? When the average consumer hears 5G, feels like it's been around for a long time because it was hyped beforehand. >> Doug: Yeah. >> If you're talking about moving to an open infrastructure model from a proprietary closed model, when is the opportunity for Dell to become part of that? Is it, are there specific sites that have already transitioned to 5G, therefore they've either made the decision to be open or not? Or are there places where the 5G transition has taken place, and they might then make a transition to open brand with 5G? Where, where are we in that cycle? What does the opportunity look like? >> I'll kind of take it from the typology of the operator, and I'm sure Manish will build on this, but if I look back on the core, started to get virtualized you know, back around 2015-16 with some of the lead operators like AT&T et cetera. So Dell has been partnering with those operators for some years. So it really, it's happening on the core, but it's moving with 5G to more of a cloud-like architecture, number one. And number two, they're going beyond just virtualizing the network. You know, they previously had used OpenStack and most of them are migrating to more of a cloud native architecture that Manish mentioned. And that is a bit different in terms of there's more software vendors in that ecosystem because the software is disaggregated also. So Dell's been playing in the core for a number of years, but we brought out new solutions we've announced at the show for the core. And the parts that are really starting that transition of maybe where the core was back in 2015 is on the RAN and on the edge in particular. >> Because NFV kind of predated the ascendancy of cloud. >> Exactly, yeah. >> Right, so it really didn't have the impact that people had hoped. And there's some, when you look back, 'cause it's not same wine, new bottle as the open systems movement, there are a lot of similarities but you know, you mentioned cloud, and cloud native, you really didn't have, back in the nineties, true engineered systems. You didn't really have AI that, you know, to speak of at the sort of volume of the data that we have. So Manish, from a CTO's perspective, how are you attacking some of those differences in bringing that to market? >> Manish: Yeah, I mean, I think you touched on some very important points there. So first of all, the duck's point, a lot of this transformation started in the core, right? And as the technology evolution progress, the opportunities opened up. It has now come into the edge and the radio access network as well, in particular with open RAN. And so when we talk about the disaggregation of the infrastructure from the software itself and an open ecosystem, this now starts to create the opportunity to accelerate innovation. And I really want to pick up on the point that you'd said on AI, for example. AI and machine learning bring a whole new set of capabilities and opportunities for these service providers to drive better optimization, better performance, better sustainability and energy efficiency on their infrastructure, on and on and on. But to really tap into these technologies, they really need to open that up to third parties implementation solutions that are coming up. And again, the end objective remains to accelerate that innovation. Now that said, all these things need to be brought together, right? And delivered and deployed in the network without any degradation in the KPIs and actually improving the performance on different vectors, right? So this is what the current state of play is. And with this aggregation I'm definitely a believer that all these new technologies, including AI, machine learning, and there's a whole area, host area of problems that can be solved and attacked and are actually getting attacked by applying AI and machine learning onto these networks. >> Open obviously is good. Nobody's ever going to, you know, argue that open is a bad thing. It's like democracy is a good thing, right? At least amongst us. And so, but, the RAN, the open RAN, has to be as reliable and performant, right, as these, closed networks. Or maybe not, maybe it doesn't have to be identical. Just has to be close enough in order for that tipping point to occur. Is that a fair summarization? What are you guys hearing from carriers in terms of their willingness to sort of put their toe in the water and, and what could we expect in terms of the maturity model of, of open RAN and adoption? >> Right, so I mean I think on, on performance that, that's a tough one. I think the operators will demand performance and you've seen experiments, you've really seen more of the Greenfield operators kind of launch. >> Okay. >> Doug: Open RAN or vRAN type solutions. >> So they're going to disrupt. >> Doug: Yeah, they're going to disrupt. >> Yeah. >> Doug: And there's flexibility in an open RAN architecture also for 5G that they, that they're interested in and I think the Brownfield operators are too, but let's say maybe the Greenfield jump first in terms of doing that from a mass deployment perspective. But I still think that it's going to be critical to meet very similar SLAs and end user performance. And, you know, I think that's where, you know, maturity of that model is what's required. I think Brownfield operators are conservative in terms of, you know, going with something they know, but the opportunities and the benefits of that architecture and building new flexible, potentially cost advantaged over time solutions, that's what the, where the real interest is going forward. >> And new services that you can introduce much more quickly. You know, the interesting thing about Dell to me, you don't compete with the carriers, the public cloud vendors though, the carriers are concerned about them sort of doing an end run on them. So you provide a potential partnership for the carriers that's non-threatening, right? 'Cause you're, you're an arms dealer, you're selling hardware and software, right? But, but how do you see that? Because we heard in the keynote today, one of the Teleco, I think it was the chairman of Telefonica said, you know, cloud guys can't do this alone. You know, they need, you know, this massive, you know, build out. And so, what do you think about that in terms of your relationship with the carriers not being threatening? I mean versus say potentially the cloud guys, who are also your partners, I understand, it's a really interesting dynamic, isn't it? >> Manish: Yeah, I mean I think, you know, I mean, the way I look at it, the carriers actually need someone like Dell who really come in who can bring in the right capabilities, the right infrastructure, but also bring in the ecosystem together and deliver a performance solution that they can deploy and that they can trust, number one. Number two, to your point on cloud, I mean, from a Dell perspective, you know, we announced our Dell Telecom Multicloud Foundation and as part of that last year in September, we announced what we call is the Dell Telecom Infrastructure Blocks. The first one we announced with Wind River, and this is, think of it as the, you know, hardware and the cashier all pre-integrated with lot of automation around it, factory integrated, you know, delivered to customers in an integrated model with all the licenses, everything. And so it starts to solve the day zero, day one, day two integration deployment and then lifecycle management for them. So to broaden the discussion, our view is it's a multicloud world, the future is multicloud where you can have different clouds which can be optimized for different workloads. So for example, while our work with Wind River initially was very focused on virtualization of the radio access network, we just announced our infrastructure block with Red Hat, which is very much targeted and optimized for core network and edge, right? So, you know, there are different workflows which will require different capabilities also. And so, you know, again, we are bringing those things to these service providers to again, bring those cloud characteristics and cloud native architecture for their network. >> And It's going to be hybrid, to your point. >> David N.: And you, just hit on something, you said cloud characteristics. >> Yeah. >> If you look at this through the lens of kind of the general world of IT, sometimes when people hear the word cloud, they immediately leap to the idea that it's a hyperscale cloud provider. In this scenario we're talking about radio towers that have intelligence living on them and physically at the base. And so the cloud characteristics that you're delivering might be living physically in these remote locations all over the place, is that correct? >> Yeah, I mean that, that's true. That will definitely happen over time. But I think, I think we've seen the hyperscalers enter, you know, public cloud providers, enter at the edge and they're dabbling maybe with private, but I think the public RAN is another further challenge. I think that maybe a little bit down the road for them. So I think that is a different characteristic that you're talking about managing the macro RAN environment. >> Manish: If I may just add one more perspective of this cloud, and I mean, again, the hyperscale cloud, right? I mean that world's been great when you can centralize a lot of compute capability and you can then start to, you know, do workload aggregation and use the infrastructure more efficient. When it comes to Telecom, it is inherently it distributed architecture where you have access, you talked about radio access, your port, and it is inherently distributed because it has to provide the coverage and capacity. And so, you know, it does require different kind of capabilities when you're going out and about, and this is where I was talking about things like, you know, we just talked, we just have been working on our bare metal orchestration, right? This is what we are bringing is a capability where you can actually have distributed infrastructure, you can deploy, you can actually manage, do lifecycle management, in a distributed multicloud form. So it does require, you know, different set of capabilities that need to be enabled. >> Some, when talking about cloud, would argue that it's always been information technology, it always will be information technology, and especially as what we might refer to as public cloud or hyperscale cloud providers, are delivering things essentially on premises. It's like, well, is that cloud? Because it feels like some of those players are going to be delivering physical infrastructure outside of their own data centers in order to address this. It seems the nature, the nature of the beast is that some of these things need to be distributed. So it seems perfectly situated for Dell. That's why you guys are both at Dell now and not working for other Telecom places, right? >> Exactly. Exactly, yes. >> It's definitely an exciting space. It's transformed, the networks are under transformation and I do think that Dell's very well positioned to, to really help the customers, the service providers in accelerating their transformation journey with an open ecosystem. >> Dave V.: You've got the brand, and the breadth, and the resources to actually attract an ecosystem. But I wonder if you could sort of take us through your strategy of ecosystem, the challenges that you've seen in developing that ecosystem and what the vision is that ultimately, what's the outcome going to be of that open ecosystem? >> Yeah, I can start. So maybe just to give you the big picture, right? I mean the big picture, is disaggregation with performance, right, TCO models to the service providers, right? And it starts at the infrastructure layer, builds on bringing these cloud capabilities, the cast layer, right? Bringing the right accelerators. All of this requires to pull the ecosystem. So give you an example on the infrastructure in a Teleco grade servers like XR8000 with Sapphire, the new intel processors that we've just announced, and an extended array of servers. These are Teleco grade, short depth, et cetera. You know, the Teleco great characteristic. Working with the partners like Marvel for bringing in the accelerators in there, that's important to again, drive the performance and optimize for the TCO. Working then with partners like Wind River, Red Hat, et cetera, to bring in the cast capabilities so you can start to see how this ecosystem starts to build up. And then very recently we announced our private 5G solution with AirSpan and Expeto on the core site. So bringing those workloads together. Similarly, we have an open RAN solution we announce with Fujitsu. So it's, it's open, it's disaggregated, but bringing all these together. And one of the last things I would say is, you know, to make all this happen and make all of these, we've also been putting together our OTEL, our open Telecom ecosystem lab, which is very much geared, really gives this open ecosystem a playground where they can come in and do all that heavy lifting, which is anyways required, to do the integration, optimization, and board. So put all these capabilities in place, but the end goal, the end vision again, is that cloud native disaggregated infrastructure that starts to innovate at the speed of software and scales at the speed of cloud. >> And this is different than the nineties. You didn't have something like OTEL back then, you know, you didn't have the developer ecosystem that you have today because on top of everything that you just said, Manish, are new workloads and new applications that are going to be developed. Doug, anything you'd add to what Manish said? >> Doug: Yeah, I mean, as Manish said, I think adding to the infrastructure layers, which are, you know, critical for us to, to help integrate, right? Because we kind of took a vertical Teleco stack and we've disaggregated it, and it's gotten a little bit more complex. So our Solutions Dell Technology infrastructure block, and our lab infrastructure with OTEL, helps put those pieces together. But without the software players in this, you know, that's what we really do, I think in OTEL. And that's just starting to grow. So integrating with those software providers with that integration is something that the operators need. So we fill a gap there in terms of either providing engineered solutions so they can readily build on or actually bringing in that software provider. And I think that's what you're going to see more from us going forward is just extending that ecosystem even further. More software players effectively. >> In thinking about O-RAN, are they, is it possible to have the low latency, the high performance, the reliability capabilities that carriers are used to and the flexibility? Or can you sort of prioritize one over the other from a go to market and rollout standpoint and optimize one, maybe get a foothold in the market? How do you see that balance? >> Manish: Oh the answer is absolutely yes you can have both We are on that journey, we are on that journey. This is where all these things I was talking about in terms of the right kind of accelerators, right kind of capabilities on the infrastructure, obviously retargeting the software, there are certain changes, et cetera that need to be done on the software itself to make it more cloud native. And then building all the surrounding capabilities around the CICD pipeline and all where it's not just day zero or day one that you're doing the cloud-like lifecycle management of this infrastructure. But the answer to your point, yes, absolutely. It's possible, the technology is there, and the ecosystem is coming together, and that's the direction. Now, are there challenges? Absolutely there are challenges, but directionally that's the direction the industry is moving to. >> Dave V.: I guess my question, Manish, is do they have to go in lockstep? Because I would argue that the public cloud when it first came out wasn't nearly as functional as what I could get from my own data center in terms of recovery, you know, backup and recovery is a perfect example and it took, you know, a decade plus to get there. But it was the flexibility, and the openness, and the developer affinity, the programmability, that attracted people. Do you see O-RAN following a similar path? Or does it, my question is does it have to have that carrier class reliability today? >> David N.: Everything on day one, does it have to have everything on day one? >> Yeah, I mean, I would say, you know, like again, the Greenfield operators I think we're, we're willing do a little bit more experimentation. I think the operators, Brownfield operators that have existing, you know, deployments, they're going to want to be closer. But I think there's room for innovation here. And clearly, you know, Manish came from, from Meta and we're, we've been very involved with TIP, we're very involved with the O-RAN alliance, and as Manish mentioned, with all those accelerators that we're working with on our infrastructure, that is a space that we're trying to help move the ball forward. So I think you're seeing deployments from mainstream operators, but it's maybe not in, you know, downtown New York deployment, they're more rural deployments. I think that's getting at, you know, kind of your question is there's maybe a little bit more flexibility there, they get to experiment with the technology and the flexibility and then I think it will start to evolve >> Dave V.: And that's where the disruption's going to come from, I think. >> David N.: Well, where was the first place you could get reliable 4K streaming of video content? It wasn't ABC, CBS, NBC. It was YouTube. >> Right. >> So is it possible that when you say Greenfield, are a lot of those going to be what we refer to as private 5G networks where someone may set up a private 5G network that has more functions and capabilities than the public network? >> That's exactly where I was going is that, you know, that that's why you're seeing us getting very active in 5G solutions that Manish mentioned with, you know, Expeto and AirSpan. There's more of those that we haven't publicly announced. So I think you'll be seeing more announcements from us, but that is really, you know, a new opportunity. And there's spectrum there also, right? I mean, there's public and private spectrum. We plan to work directly with the operators and do it in their spectrum when needed. But we also have solutions that will do it, you know, on non-public spectrum. >> So let's close out, oh go ahead. You you have something to add there? >> I'm just going to add one more point to Doug's point, right? Is if you look on the private 5G and the end customer, it's the enterprise, right? And they're, they're not a service provider. They're not a carrier. They're more used to deploying, you know, enterprise infrastructure, maintaining, managing that. So, you know, private 5G, especially with this open ecosystem and with all the open run capabilities, it naturally tends to, you know, blend itself very well to meet those requirements that the enterprise would have. >> And people should not think of private 5G as a sort of a replacement for wifi, right? It's to to deal with those, you know, intense situations that can afford the additional cost, but absolutely require the reliability and the performance and, you know, never go down type of scenario. Is that right? >> Doug: And low latencies usually, the primary characteristics, you know, for things like Industry 4.0 manufacturing requirements, those are tough SLAs. They're just, they're different than the operator SLAs for coverage and, you know, cell performance. They're now, you know, Five9 type characteristics, but on a manufacturing floor. >> That's why we don't use wifi on theCUBE to broadcast, we need a hard line. >> Yeah, but why wouldn't it replace wifi over time? I mean, you know, I still have a home phone number that's hardwired to align, but it goes to a voicemail. We don't even have handset anymore for it, yeah. >> I think, well, unless the cost can come down, but I think that wifi is flexible, it's cheap. It's, it's kind of perfect for that. >> Manish: And it's good technology. >> Dave V.: And it works great. >> David N.: For now, for now. >> Dave V.: But you wouldn't want it in those situations, and you're arguing that maybe. >> I'm saying eventually, what, put a sim in a device, I don't know, you know, but why not? >> Yeah, I mean, you know, and Dell offers, you know, from our laptop, you know, our client side, we do offer wifi, we do offer 4G and 5G solutions. And I think those, you know, it's a volume and scale issue, I think for the cost structure you're talking about. >> Manish: Come to our booth and see the connected laptop. >> Dave V.: Well let's, let's close on that. Why don't you guys talk a little bit about what you're going on at the show, I did go by the booth, you got a whole big lineup of servers. You got some, you know, cool devices going on. So give us the rundown and you know, let's end with the takeaways here. >> The simple rundown, a broad range of new powered servers, broad range addressing core, edge, RAN, optimized for those with all the different kind of acceleration capabilities. You can see that, you can see infrastructure blocks. These are with Wind River, with Red Hat. You can see OTEL, the open telecom ecosystem lab where all that playground, the integration, the real work, the real sausage makings happening. And then you will see some interesting solutions in terms of co-creation that we are doing, right? So you, you will see all of that and not to forget the connected laptops. >> Dave V.: Yeah, yeah, cool. >> Doug: Yeah and, we mentioned it before, but just to add on, I think, you know, for private 5G, you know, we've announced a few offers here at the show with partners. So with Expeto and AirSpan in particular, and I think, you know, I just want to emphasize the partnerships that we're doing. You know, we're doing some, you know, fundamental integration on infrastructure, bare metal and different options for the operators to get engineered systems. But building on that ecosystem is really, the move to cloud native is where Dell is trying to get in front of. And we're offering solutions and a much larger ecosystem to go after it. >> Dave V.: Great. Manish and Doug, thanks for coming on the program. It was great to have you, awesome discussion. >> Thank you for having us. >> Thanks for having us. >> All right, Dave Vellante for Dave Nicholson and Lisa Martin. We're seeing the disaggregation of the Teleco network into open ecosystems with integration from companies like Dell and others. Keep it right there for theCUBE's coverage of MWC 23. We'll be right back. (upbeat tech music)

>>From the Cube Studios in Palo Alto in Boston, bringing you data-driven insights from the cube and E T R. This is breaking analysis with Dave Valante. >>Making technology predictions in 2022 was tricky business, especially if you were projecting the performance of markets or identifying I P O prospects and making binary forecast on data AI and the macro spending climate and other related topics in enterprise tech 2022, of course was characterized by a seesaw economy where central banks were restructuring their balance sheets. The war on Ukraine fueled inflation supply chains were a mess. And the unintended consequences of of forced march to digital and the acceleration still being sorted out. Hello and welcome to this week's weekly on Cube Insights powered by E T R. In this breaking analysis, we continue our annual tradition of transparently grading last year's enterprise tech predictions. And you may or may not agree with our self grading system, but look, we're gonna give you the data and you can draw your own conclusions and tell you what, tell us what you think. >>All right, let's get right to it. So our first prediction was tech spending increases by 8% in 2022. And as we exited 2021 CIOs, they were optimistic about their digital transformation plans. You know, they rushed to make changes to their business and were eager to sharpen their focus and continue to iterate on their digital business models and plug the holes that they, the, in the learnings that they had. And so we predicted that 8% rise in enterprise tech spending, which looked pretty good until Ukraine and the Fed decided that, you know, had to rush and make up for lost time. We kind of nailed the momentum in the energy sector, but we can't give ourselves too much credit for that layup. And as of October, Gartner had it spending growing at just over 5%. I think it was 5.1%. So we're gonna take a C plus on this one and, and move on. >>Our next prediction was basically kind of a slow ground ball. The second base, if I have to be honest, but we felt it was important to highlight that security would remain front and center as the number one priority for organizations in 2022. As is our tradition, you know, we try to up the degree of difficulty by specifically identifying companies that are gonna benefit from these trends. So we highlighted some possible I P O candidates, which of course didn't pan out. S NQ was on our radar. The company had just had to do another raise and they recently took a valuation hit and it was a down round. They raised 196 million. So good chunk of cash, but, but not the i p O that we had predicted Aqua Securities focus on containers and cloud native. That was a trendy call and we thought maybe an M SS P or multiple managed security service providers like Arctic Wolf would I p o, but no way that was happening in the crummy market. >>Nonetheless, we think these types of companies, they're still faring well as the talent shortage in security remains really acute, particularly in the sort of mid-size and small businesses that often don't have a sock Lacework laid off 20% of its workforce in 2022. And CO C e o Dave Hatfield left the company. So that I p o didn't, didn't happen. It was probably too early for Lacework. Anyway, meanwhile you got Netscope, which we've cited as strong in the E T R data as particularly in the emerging technology survey. And then, you know, I lumia holding its own, you know, we never liked that 7 billion price tag that Okta paid for auth zero, but we loved the TAM expansion strategy to target developers beyond sort of Okta's enterprise strength. But we gotta take some points off of the failure thus far of, of Okta to really nail the integration and the go to market model with azero and build, you know, bring that into the, the, the core Okta. >>So the focus on endpoint security that was a winner in 2022 is CrowdStrike led that charge with others holding their own, not the least of which was Palo Alto Networks as it continued to expand beyond its core network security and firewall business, you know, through acquisition. So overall we're gonna give ourselves an A minus for this relatively easy call, but again, we had some specifics associated with it to make it a little tougher. And of course we're watching ve very closely this this coming year in 2023. The vendor consolidation trend. You know, according to a recent Palo Alto network survey with 1300 SecOps pros on average organizations have more than 30 tools to manage security tools. So this is a logical way to optimize cost consolidating vendors and consolidating redundant vendors. The E T R data shows that's clearly a trend that's on the upswing. >>Now moving on, a big theme of 2020 and 2021 of course was remote work and hybrid work and new ways to work and return to work. So we predicted in 2022 that hybrid work models would become the dominant protocol, which clearly is the case. We predicted that about 33% of the workforce would come back to the office in 2022 in September. The E T R data showed that figure was at 29%, but organizations expected that 32% would be in the office, you know, pretty much full-time by year end. That hasn't quite happened, but we were pretty close with the projection, so we're gonna take an A minus on this one. Now, supply chain disruption was another big theme that we felt would carry through 2022. And sure that sounds like another easy one, but as is our tradition, again we try to put some binary metrics around our predictions to put some meat in the bone, so to speak, and and allow us than you to say, okay, did it come true or not? >>So we had some data that we presented last year and supply chain issues impacting hardware spend. We said at the time, you can see this on the left hand side of this chart, the PC laptop demand would remain above pre covid levels, which would reverse a decade of year on year declines, which I think started in around 2011, 2012. Now, while demand is down this year pretty substantially relative to 2021, I D C has worldwide unit shipments for PCs at just over 300 million for 22. If you go back to 2019 and you're looking at around let's say 260 million units shipped globally, you know, roughly, so, you know, pretty good call there. Definitely much higher than pre covid levels. But so what you might be asking why the B, well, we projected that 30% of customers would replace security appliances with cloud-based services and that more than a third would replace their internal data center server and storage hardware with cloud services like 30 and 40% respectively. >>And we don't have explicit survey data on exactly these metrics, but anecdotally we see this happening in earnest. And we do have some data that we're showing here on cloud adoption from ET R'S October survey where the midpoint of workloads running in the cloud is around 34% and forecast, as you can see, to grow steadily over the next three years. So this, well look, this is not, we understand it's not a one-to-one correlation with our prediction, but it's a pretty good bet that we were right, but we gotta take some points off, we think for the lack of unequivocal proof. Cause again, we always strive to make our predictions in ways that can be measured as accurate or not. Is it binary? Did it happen, did it not? Kind of like an O K R and you know, we strive to provide data as proof and in this case it's a bit fuzzy. >>We have to admit that although we're pretty comfortable that the prediction was accurate. And look, when you make an hard forecast, sometimes you gotta pay the price. All right, next, we said in 2022 that the big four cloud players would generate 167 billion in IS and PaaS revenue combining for 38% market growth. And our current forecasts are shown here with a comparison to our January, 2022 figures. So coming into this year now where we are today, so currently we expect 162 billion in total revenue and a 33% growth rate. Still very healthy, but not on our mark. So we think a w s is gonna miss our predictions by about a billion dollars, not, you know, not bad for an 80 billion company. So they're not gonna hit that expectation though of getting really close to a hundred billion run rate. We thought they'd exit the year, you know, closer to, you know, 25 billion a quarter and we don't think they're gonna get there. >>Look, we pretty much nailed Azure even though our prediction W was was correct about g Google Cloud platform surpassing Alibaba, Alibaba, we way overestimated the performance of both of those companies. So we're gonna give ourselves a C plus here and we think, yeah, you might think it's a little bit harsh, we could argue for a B minus to the professor, but the misses on GCP and Alibaba we think warrant a a self penalty on this one. All right, let's move on to our prediction about Supercloud. We said it becomes a thing in 2022 and we think by many accounts it has, despite the naysayers, we're seeing clear evidence that the concept of a layer of value add that sits above and across clouds is taking shape. And on this slide we showed just some of the pickup in the industry. I mean one of the most interesting is CloudFlare, the biggest supercloud antagonist. >>Charles Fitzgerald even predicted that no vendor would ever use the term in their marketing. And that would be proof if that happened that Supercloud was a thing and he said it would never happen. Well CloudFlare has, and they launched their version of Supercloud at their developer week. Chris Miller of the register put out a Supercloud block diagram, something else that Charles Fitzgerald was, it was was pushing us for, which is rightly so, it was a good call on his part. And Chris Miller actually came up with one that's pretty good at David Linthicum also has produced a a a A block diagram, kind of similar, David uses the term metacloud and he uses the term supercloud kind of interchangeably to describe that trend. And so we we're aligned on that front. Brian Gracely has covered the concept on the popular cloud podcast. Berkeley launched the Sky computing initiative. >>You read through that white paper and many of the concepts highlighted in the Supercloud 3.0 community developed definition align with that. Walmart launched a platform with many of the supercloud salient attributes. So did Goldman Sachs, so did Capital One, so did nasdaq. So you know, sorry you can hate the term, but very clearly the evidence is gathering for the super cloud storm. We're gonna take an a plus on this one. Sorry, haters. Alright, let's talk about data mesh in our 21 predictions posts. We said that in the 2020s, 75% of large organizations are gonna re-architect their big data platforms. So kind of a decade long prediction. We don't like to do that always, but sometimes it's warranted. And because it was a longer term prediction, we, at the time in, in coming into 22 when we were evaluating our 21 predictions, we took a grade of incomplete because the sort of decade long or majority of the decade better part of the decade prediction. >>So last year, earlier this year, we said our number seven prediction was data mesh gains momentum in 22. But it's largely confined and narrow data problems with limited scope as you can see here with some of the key bullets. So there's a lot of discussion in the data community about data mesh and while there are an increasing number of examples, JP Morgan Chase, Intuit, H S P C, HelloFresh, and others that are completely rearchitecting parts of their data platform completely rearchitecting entire data platforms is non-trivial. There are organizational challenges, there're data, data ownership, debates, technical considerations, and in particular two of the four fundamental data mesh principles that the, the need for a self-service infrastructure and federated computational governance are challenging. Look, democratizing data and facilitating data sharing creates conflicts with regulatory requirements around data privacy. As such many organizations are being really selective with their data mesh implementations and hence our prediction of narrowing the scope of data mesh initiatives. >>I think that was right on J P M C is a good example of this, where you got a single group within a, within a division narrowly implementing the data mesh architecture. They're using a w s, they're using data lakes, they're using Amazon Glue, creating a catalog and a variety of other techniques to meet their objectives. They kind of automating data quality and it was pretty well thought out and interesting approach and I think it's gonna be made easier by some of the announcements that Amazon made at the recent, you know, reinvent, particularly trying to eliminate ET t l, better connections between Aurora and Redshift and, and, and better data sharing the data clean room. So a lot of that is gonna help. Of course, snowflake has been on this for a while now. Many other companies are facing, you know, limitations as we said here and this slide with their Hadoop data platforms. They need to do new, some new thinking around that to scale. HelloFresh is a really good example of this. Look, the bottom line is that organizations want to get more value from data and having a centralized, highly specialized teams that own the data problem, it's been a barrier and a blocker to success. The data mesh starts with organizational considerations as described in great detail by Ash Nair of Warner Brothers. So take a listen to this clip. >>Yeah, so when people think of Warner Brothers, you always think of like the movie studio, but we're more than that, right? I mean, you think of H B O, you think of t n t, you think of C N N. We have 30 plus brands in our portfolio and each have their own needs. So the, the idea of a data mesh really helps us because what we can do is we can federate access across the company so that, you know, CNN can work at their own pace. You know, when there's election season, they can ingest their own data and they don't have to, you know, bump up against, as an example, HBO if Game of Thrones is going on. >>So it's often the case that data mesh is in the eyes of the implementer. And while a company's implementation may not strictly adhere to Jamma Dani's vision of data mesh, and that's okay, the goal is to use data more effectively. And despite Gartner's attempts to deposition data mesh in favor of the somewhat confusing or frankly far more confusing data fabric concept that they stole from NetApp data mesh is taking hold in organizations globally today. So we're gonna take a B on this one. The prediction is shaping up the way we envision, but as we previously reported, it's gonna take some time. The better part of a decade in our view, new standards have to emerge to make this vision become reality and they'll come in the form of both open and de facto approaches. Okay, our eighth prediction last year focused on the face off between Snowflake and Databricks. >>And we realized this popular topic, and maybe one that's getting a little overplayed, but these are two companies that initially, you know, looked like they were shaping up as partners and they, by the way, they are still partnering in the field. But you go back a couple years ago, the idea of using an AW w s infrastructure, Databricks machine intelligence and applying that on top of Snowflake as a facile data warehouse, still very viable. But both of these companies, they have much larger ambitions. They got big total available markets to chase and large valuations that they have to justify. So what's happening is, as we've previously reported, each of these companies is moving toward the other firm's core domain and they're building out an ecosystem that'll be critical for their future. So as part of that effort, we said each is gonna become aggressive investors and maybe start doing some m and a and they have in various companies. >>And on this chart that we produced last year, we studied some of the companies that were targets and we've added some recent investments of both Snowflake and Databricks. As you can see, they've both, for example, invested in elation snowflake's, put money into Lacework, the Secur security firm, ThoughtSpot, which is trying to democratize data with ai. Collibra is a governance platform and you can see Databricks investments in data transformation with D B T labs, Matillion doing simplified business intelligence hunters. So that's, you know, they're security investment and so forth. So other than our thought that we'd see Databricks I p o last year, this prediction been pretty spot on. So we'll give ourselves an A on that one. Now observability has been a hot topic and we've been covering it for a while with our friends at E T R, particularly Eric Bradley. Our number nine prediction last year was basically that if you're not cloud native and observability, you are gonna be in big trouble. >>So everything guys gotta go cloud native. And that's clearly been the case. Splunk, the big player in the space has been transitioning to the cloud, hasn't always been pretty, as we reported, Datadog real momentum, the elk stack, that's open source model. You got new entrants that we've cited before, like observe, honeycomb, chaos search and others that we've, we've reported on, they're all born in the cloud. So we're gonna take another a on this one, admittedly, yeah, it's a re reasonably easy call, but you gotta have a few of those in the mix. Okay, our last prediction, our number 10 was around events. Something the cube knows a little bit about. We said that a new category of events would emerge as hybrid and that for the most part is happened. So that's gonna be the mainstay is what we said. That pure play virtual events are gonna give way to hi hybrid. >>And the narrative is that virtual only events are, you know, they're good for quick hits, but lousy replacements for in-person events. And you know that said, organizations of all shapes and sizes, they learn how to create better virtual content and support remote audiences during the pandemic. So when we set at pure play is gonna give way to hybrid, we said we, we i we implied or specific or specified that the physical event that v i p experience is going defined. That overall experience and those v i p events would create a little fomo, fear of, of missing out in a virtual component would overlay that serves an audience 10 x the size of the physical. We saw that really two really good examples. Red Hat Summit in Boston, small event, couple thousand people served tens of thousands, you know, online. Second was Google Cloud next v i p event in, in New York City. >>Everything else was, was, was, was virtual. You know, even examples of our prediction of metaverse like immersion have popped up and, and and, and you know, other companies are doing roadshow as we predicted like a lot of companies are doing it. You're seeing that as a major trend where organizations are going with their sales teams out into the regions and doing a little belly to belly action as opposed to the big giant event. That's a definitely a, a trend that we're seeing. So in reviewing this prediction, the grade we gave ourselves is, you know, maybe a bit unfair, it should be, you could argue for a higher grade, but the, but the organization still haven't figured it out. They have hybrid experiences but they generally do a really poor job of leveraging the afterglow and of event of an event. It still tends to be one and done, let's move on to the next event or the next city. >>Let the sales team pick up the pieces if they were paying attention. So because of that, we're only taking a B plus on this one. Okay, so that's the review of last year's predictions. You know, overall if you average out our grade on the 10 predictions that come out to a b plus, I dunno why we can't seem to get that elusive a, but we're gonna keep trying our friends at E T R and we are starting to look at the data for 2023 from the surveys and all the work that we've done on the cube and our, our analysis and we're gonna put together our predictions. We've had literally hundreds of inbounds from PR pros pitching us. We've got this huge thick folder that we've started to review with our yellow highlighter. And our plan is to review it this month, take a look at all the data, get some ideas from the inbounds and then the e t R of January surveys in the field. >>It's probably got a little over a thousand responses right now. You know, they'll get up to, you know, 1400 or so. And once we've digested all that, we're gonna go back and publish our predictions for 2023 sometime in January. So stay tuned for that. All right, we're gonna leave it there for today. You wanna thank Alex Myerson who's on production and he manages the podcast, Ken Schiffman as well out of our, our Boston studio. I gotta really heartfelt thank you to Kristen Martin and Cheryl Knight and their team. They helped get the word out on social and in our newsletters. Rob Ho is our editor in chief over at Silicon Angle who does some great editing for us. Thank you all. Remember all these podcasts are available or all these episodes are available is podcasts. Wherever you listen, just all you do Search Breaking analysis podcast, really getting some great traction there. Appreciate you guys subscribing. I published each week on wikibon.com, silicon angle.com or you can email me directly at david dot valante silicon angle.com or dm me Dante, or you can comment on my LinkedIn post. And please check out ETR AI for the very best survey data in the enterprise tech business. Some awesome stuff in there. This is Dante for the Cube Insights powered by etr. Thanks for watching and we'll see you next time on breaking analysis.

>>The cube presents, Coon and cloud native con Europe 22 brought to you by the cloud native computing foundation. >>Lisia Spain, a cuon cloud native con Europe 2022. I'm Keith towns, along with Paul Gillon, senior editor, enterprise architecture for Silicon angle. Welcome Paul, >>Thank you, Keith pleasure to work >>With you. You know, we're gonna have some amazing people this week. I think I saw stat this morning, 65% of the attendees, 7,500 folks. First time Q con attendees. This is your first conference. >>It is my first cubic con and it is amazing to see how many people are here and to think of, you know, just a couple of years ago, three years ago, we were still talking about what the cloud was and what the cloud was gonna do and how we were gonna integrate multiple clouds. And now we have this whole new framework for computing that is just rifled out of, out of nowhere. And as we can see by the number of people who are here, this has become a, a, this is the dominant trend in enterprise architecture right now, how to adopt Kubernetes and containers, build microservices based applications, and really get to that, that transparent cloud that has been so elusive. >>It has been elusive. And we are seeing vendors from startups with just a, a few dozen people to some of the traditional players we see in the enterprise space with thousands of employees looking to capture kind of lightning in a bottle, so to speak this elusive concept of multi-cloud. >>And what we're seeing here is very typical of an early stage conference. I've seen many times over the years where the, the floor is really dominated by companies, frankly, I've never heard of that. Many of them are only two or three years old, and you don't see the big, the big dominant computing players with, with the presence here that these smaller companies have. That's very typical. We saw that in the PC age, we saw it in the early days of Unix and, and it's happening again. And what will happen over time is that a lot of these companies will be acquired. There'll be some consolidation. And the nature of this show will change, I think, dramatically over the next couple or three years, but there is an excitement and an energy in this auditorium today that is, is really a lot of fun and very reminiscent of other new technologies just as they press it. >>Well, speaking of new technologies, we have Dave Cole, CR O chief revenue officer that's right. Chief marketing officer that's right of spec cloud. Welcome to the show. Thank >>You. It's great to be here. >>So let's talk about this big ecosystem. Okay. Kubernetes. Yes. Solve problem. >>Well, you know, the, the dream is, well, first of all, applications are really the lifeblood of a company, whether it's our phone or whether it's a big company trying to connect with its customer, it's about applications. And so the whole idea today is how do I build these applications to build that tight relationship with my customers? And how do I reinvent these applications rapidly in, along comes containerization, which helps you innovate more quickly. And certainly a dominant technology. There is Kubernetes. And the, the question is how do you get Kubernetes to help you build applications that can be born anywhere and live anywhere and take advantage of the places that it's running, cuz everywhere has pluses and minuses. >>So you know what the promise of Kubernetes from when I first read about it years ago is runs on my laptop. Yep. I can push it to any cloud, any platform that's that's right. Where's the gap. Where are we in that, in that phase? Like talk to me about scale. Is that, is that, is it that simple? >>Well, that act is actually the problem is that date while the technology is the dominant containerization technology and orchestration technology, it really still takes a power user. It really hasn't been very approachable to the masses. And so it was these very expensive, highly skilled resources that sit in a dark corner that have focused on Kubernetes, but that, that now is trying to evolve to make it more accessible to the masses. It's not about sort of hand wiring together. What is a typical 20 layer stack to really manage Kubernetes and then have your engineers manually can reconfigure it and make sure everything works together. Now it's about how do I create these stacks, make it easy to deploy and manage at scale. So we've gone from sort of DIY developer centric to all right, now, how do I manage this at scale? >>Now this is a point that is important, I think is often overlooked. This is not just about Kubernetes. This is about a whole stack of cloud native technologies. Yes. And you who is going to, who is going to integrate that, all that stuff, piece that stuff together, right? Obviously you have a, a role in that. Yes. But in the enterprise, what is the awareness level of how complex this stack is and how difficult it is to assemble? >>We, we see a recognition of that, that we've had developers working on Kubernetes and applications, but now when we say, how do we weave it into our production environments? How do we ensure things like scalability and governance? How do we have this sort of interesting mix of innovation, flexibility, but with control. And that's sort of an interesting combination where you want developers to be able to run fast and use the latest tools, but you need to create these guardrails to deploy it at scale. >>So where do the developers fit in that operation stack then? Is this, is Kubernetes an AI ops or an ops a task, or is it sort of a shared task across the development spectrum? >>Well, I think there's a desire to allow application developers, to just focus on the application and have a Kubernetes related technology that ensures that all of the infrastructure and related application services are just there to support them. And because the typical stack from the operating system to the application can be up to 20 different layers components. You just want all those components to work together. You don't want application developers to worry about those things. And the latest technologies like spectra cloud there's others are making that easy application engineers focus on their apps, all of the infrastructure and the services are taken care of. And those apps can then live natively on any environment. >>So help paint this picture for us. You know, I get got AKs ETS and those, all of these distributions OpenShift, the tan zoo, where is spec cloud helping me to kind of cobble together all these different distros I thought distro was the, was the thing like, just like Lennox has different distros, you know, right. Randy said different distros >>That actually is the irony. Is that sort of the age of debating, the distros largely is over. There are a lot of distros and if you look at them, there are largely shades of gray in being different from each other. But the Kubernetes distribution is just one element of like 20 elements that all have to work together. So right now what's what's happening is that it's not about the distribution it's now, how do I, again, sorry to repeat myself, but move this into a, into scale. How do I move it into deploy at scale, to be able to manage ongoing at scale, to be able to innovate at scale, to allow engineers, as I said, use the coolest tools, but still have technical guardrails that the, the enterprise knows they'll be in control of what, >>What does at scale mean to the enterprise customers you're talking to now? What do they mean when they say that? >>Well, I think it's interesting cuz we think scale's different cuz we've all been in the industry and it's frankly sort of boring old wor word, but today it means different things. Like how do I automate the deployment at scale? How do I be able to make it really easy to provision resources for applications on any environment from either a virtualized or bare metal data center cloud or today edge is really big where people are trying to push applications out to be closer to this source of the data. And so you want to be able to deploy it scale you wanna manage at scale, you wanna make it easy to, as I said earlier, allow application developers to build their applications, but it ops wants the ability to ensure security and governance and all of that. And then finally innovate at scale. If you look at this show, it's interesting, three years ago, when we started spectra cloud, there are about 1400 businesses or technologies in the Kubernetes ecosystem today there's over 1800 and all of these technologies made up of open source and commercial, all versioning at different rates. It becomes an insurmountable problem unless you can set those guardrails sort of that balance between flexibility and control, let developers access the technologies. But again, manage it as a part of your normal processes of a, of a scale of operation. >>So, so Dave, I'm a little challenged here cuz I'm hearing two where I typically consider conflicting terms. Okay. Flexibility control. Yes. In order to achieve control, I need complexity in order to choose flexibility. I need t-shirt one t-shirt fits all right. To and I, and I, and I get simplicity. How can I get both that just doesn't you know, compute >>Well thus the opportunity and the challenge at the same time. So you're right. So developers want choice, good developers want the ability to choose the latest technology so they can innovate rapidly. And yet it ops wants to be able to make sure that there are guard rails. And so with some of today's technologies like spectral cloud, it is you have the ability to get both. We actually worked with dimensional research and we sponsor an annual state of Kubernetes survey. We found this last summer, that two out of three, it executives said you could not have both flexibility and control together, but in fact they want it. And so it is this interesting balance. How do I give engineers the ability to get anything they want, but it ops the ability to establish control. And that's why Kubernetes is really at its next inflection point. Whereas I mentioned, it's not debates about the distro or DIY projects. It's not big incumbents creating siloed Kubernetes solutions. But in fact it's about allowing all these technologies to work together and be able to establish these controls. And that's, that's really where the industry is today. >>Enterprise enterprise CIOs do not typically like to take chances. Now we were talking about the growth in the market that you described from 1400, 1800 vendors. Most of these companies, very small startups are, are enterprises. Are you seeing them willing to take a leap with these unproven companies or are they holding back and waiting for the IBMs, the HPS, the Microsofts to come in with the VMwares with whatever they solution they have? >>I, I think so. I mean, we sell to the global 2000. We had yesterday as a part of edge day here at the event, we had GE healthcare as one of our customers telling their story. And they're a market share leader in medical imaging equipment. X-rays MRIs, cat scans, and they're, they're starting to treat those as edge devices. And so here is a very large established company, a leader in their industry, working with people like spectral cloud, realizing that Kubernetes is interesting technology. The edge is an interesting thought, but how do I marry the two together? So we are seeing large corporations seeing so much of an opportunity that they're working with the smaller companies, the latest technology. >>So let's talk about the edge a little. You kind of opened it up there. Yeah. How should customers think about the edge versus the cloud data center or even bare metal? >>Actually it's a well bare bare metal is fairly easy is that many people are looking to reduce some of the overhead or inefficiencies of the virtualized environment. And, but we've had really sort of parallel little white tornadoes. We've had bare metal as infrastructure that's been developing and then we've had orchestration technology's developing, but they haven't really come together very well lately. We're finally starting to see that come together. Spectra cloud contributed to open source a metal as a service technology that finally brings these two worlds together. Making bare metal much more approachable to the inters enterprise edge is interesting because it seems pretty obvious. You wanna push your application out closer to your source of data, whether it's AI in fencing or O T or anything like that, you don't wanna worry about intermittent connectivity or latency or anything like that. But people have wanted to be able to treat the edge as if it's almost like a cloud where all I worry about is the app. >>So really the edge to us is just the next extension in a multi-cloud sort of motif where I want these edge devices to require low it resources to automate the provisioning, automate the ongoing version management patch management really act like a cloud. And we're seeing this as very, very popular now. And I just used the GE healthcare example of that. Imagine a cat scan machine, I'm making this part up in China and that's just an edge device. And it's, it's doing medical imagery, which is very intense in terms of data. You want to be able to process it quickly and accurately as close to the endpoint, the healthcare provider as possible. >>So let's talk about that in some level of detail, as we think about kind of edge and you know, these fixed devices such as imaging device, are we putting agents on there? Are we looking at something talking back to the cloud, where does special cloud inject and help make that simple, that problem of just having dispersed endpoints all over the world? Simpler? >>Sure. Well we announced our edge Kubernetes edge solution at a big medical conference called, called hymns months ago. And what we allow you to do is we allow the application engineers to develop their application. And then you can de you can design this declarative model, this cluster API, but beyond cluster profile, which determines which additional application services you need and the edge device, all the person has to do with the endpoint is plug in the power plug in the communications. It registers the edge device. It automates the deployment of the full stack. And then it does the ongoing versioning and patch management, sort of a self-driving edge device running Kubernetes. And we make it just very, very easy. No, it resources required at the endpoint, no expensive field engineering resources to go to these endpoints twice a year to apply new patches and things like that, all >>Automated, but there's so many different types of edge devices with different capabilities, different operating systems, some have no operating system. Yeah. I mean, what, that seems like a much more complex environment, just calling it, the edge is simple, but what you're really talking about is thousands of different devices, right? That you have to run your applications on how, how are you dealing with that? >>So one of the ways is that we're really unbiased. In other words, we're OS and distro agnostic. So we don't want to debate about which distribution you like. We don't want to debate about, you know, which OS you want to use. The truth is you're right. There's different environments and different choices that you'll wanna make. And so the key is, is how do you incorporate those and also recognize everything beyond those, you know, OS and Kubernetes and all of that and manage that full stack. So that's what we do is we allow you to choose which tools you want to use and let it be deployed and managed on any environment. >>And who's respo, I'm sorry, key. Who's responsible for making Kubernetes run on the edge device. >>We do. We provision the entire stack. I mean, of course the company does using our product, but we provision the entire Kubernetes infrastructure stack all the application services and the application itself on that device. >>So I would love to dig into like where pods happen and all that, but provisioning is getting to the point that it's a solve problem. Day two. Yes. Like we, you know, you just mentioned hymns, highly regulated environments. How does spec cloud helping with configuration management change control, audit, compliance, et cetera, the hard stuff. >>Yep. And one of the things we do, you bring up a good point is we manage the full life cycle from day zero, which is sort of create, deploy all the way to day two, which is about, you know, access control, security. It's about ongoing versioning and patch management. It's all of that built into the platform. And, but you're right. Like the medical industry has a lot of regulations. And so you need to be able to make sure that everything works. It's always up to the latest level, have the highest level of security. And so all that's built into the platform. It's not just a fire and forget it really is about that full life cycle of deploying, managing on an ongoing basis. >>Well, Dave, I'd love to go into a great deal of detail with you about kind of this day two option. I think we'll be covering a lot more of that topic, Paul, throughout the week, as we talk about just, you know, as we've gotten past, you know, how do I deploy Kubernetes pod to how do I actually operate it? >>Absolutely, absolutely. The devil is in the details as they say, >>Well, and also too, you have to recognize that the edge has some very unique requirements. You want very small form factors. Typically you want low it resources. It has to be sort of zero touch or low touch because if you're a large food provider with 20,000 store locations, you don't wanna send out field engineers two or three times a year to update them. So it really is an interesting beast and we have some exciting technology and people like GE are using that. >>Well, Dave, thanks a lot for coming on to Q you're now Cub Alon. You've not been on before. >>I have actually. Yes. Oh. But I always enjoy it. >>It's great conversation. Foria Spain. I'm Keith towns along with Paul Gillon and you're watching the cue, the leader in high tech coverage.

>>Welcoming into the cubes presentation of AWS startup showcase open cloud innovations. This is season two episode one of the ongoing series covering exciting hot startups from the AWS ecosystem. Today's episode. One of season two theme is open source community and the open cloud innovations. I'm your host, John farrier of the cube. And today we're excited to be joined by Loris Dajani who is the C T O chief technology officer and founder of cystic found that in his backyard with some wine and beer. Great to see you. We're here to talk about Falco finding cloud threats in real time. Thank you for joining us, Laura. Thanks. Good to see you >>Love that your company was founded in your backyard. Classic startup story. You have been growing very, very fast. And the key point of the showcase is to talk about the startups that are making a difference and, and that are winning and doing well. You guys have done extremely well with your business. Congratulations, but thank you. The big theme is security and as organizations have moved their business critical applications to the cloud, the attackers have followed. This is Billy important in the industry. You guys are in the middle of this. What's your view on this? What's your take? What's your reaction? >>Yeah. As we, as a end ecosystem are moving to the cloud as more and more, we are developing cloud native applications. We relying on CACD. We are relying on orchestrations in containers. Security is becoming more and more important. And I would say more and more complex. I mean, we're reading every day in the news about attacks about data leaks and so on. There's rarely a day when there's nothing major happening and that we can see the press from this point of view. And definitely things are evolving. Things are changing in the cloud. In for example, Cisco just released a cloud native security and usage report a few days ago. And the mundane things that we found among our user base, for example, 60, 66% of containers are running as rude. So still many organizations adopting a relatively relaxed way to deploy their applications. Not because they like doing it, but because it tends to be, you know, easier and a little bit with a little bit less ration. >>We also found that that 27% of users unnecessary route access in the 73% of the cloud accounts, public has three buckets. This is all stuff that is all good, but can generate consequences when you make a mistake, like typically, you know, your data leaks, no, because of super sophisticated attacks, but because somebody in your organization forgets maybe some data on it on a public history bucket, or because some credentials that are not restrictive enough, maybe are leaked to another team member or, or, or a Gita, you know, repository or something like that. So is infrastructures and the software becomes a let's a more sophisticated and more automated. There's also at the same time, more risks and opportunities for misconfigurations that then tend to be, you know, very often the sewers of, of issues in the cloud. >>Yeah, those self-inflicted wounds definitely come up. We've seen people leaving S3 buckets open, you know, it's user error, but, you know, w w those are small little things that get taken care of pretty quickly. That's just hygiene. It's just discipline. You know, most of the sophisticated enterprises are moving way past that, but now they're adopting more cloud native, right. And as they get into the critical apps, securing them has been challenging. We've talked to many CEOs and CSOs, and they say that to us. Yeah. It's very challenging, but we're on it. I have to ask you, what should people worry about when secure in the cloud, because they know is challenging, then they'll have the opportunity on the other side, what are they worried about? What do you see people scared of or addressing, or what should I be worried about when securing the cloud? >>Yeah, definitely. Sometimes when I'm talking about the security, I like to compare, you know, the old data center in that the old monolithic applications to a castle, you know, in middle aged castle. So what, what did you do to protect your castle? You used to build very thick walls around it, and then a small entrance and be very careful about the entrance, you know, protect the entrance very well. So what we used to doing that, that data center was protect everything, you know, the, the whole perimeter in a very aggressive way with firewalls and making sure that there was only a very narrow entrance to our data center. And, you know, as much as possible, like active security there, like firewalls or this kind of stuff. Now we're in the cloud. Now, it's everything. Everything is much more diffused, right? Our users, our customers are coming from all over the planet, every country, every geography, every time, but also our internal team is coming from everywhere because they're all accessing a cloud environment. >>You know, they often from home for different offices, again, from every different geography, every different country. So in this configuration, the metaphor data that they like to use is an amusement park, right? You have a big area with many important things inside in the users and operators that are coming from different dangerous is that you cannot really block, you know, you need to let everything come in and in operate together in these kinds of environment, the traditional protection is not really effective. It's overwhelming. And it doesn't really serve the purpose that we need. We cannot build a giant water under our amusement park. We need people to come in. So what we're finding is that understanding, getting visibility and doing, if you Rheodyne is much more important. So it's more like we need to replace the big walls with a granular network of security cameras that allow us to see what's happening in the, in the different areas of our amusement park. And we need to be able to do that in a way that is real time and allows us to react in a smart way as things happen because in the modern world of cloud five minutes of delay in understanding that something is wrong, mean that you're ready being, you know, attacked and your data's already being >>Well. I also love the analogy of the amusement park. And of course, certain rides, you need to be a certain height to ride the rollercoaster that I guess, that's it credentials or security credentials, as we say, but in all seriousness, the perimeter is dead. We all know that also moats were relied upon as well in the old days, you know, you secure the firewall, nothing comes in, goes out, and then once you're in, you don't know what's going on. Now that's flipped. There's no walls, there's no moats everyone's in. And so you're saying this kind of security camera kind of model is key. So again, this topic here is securing real time. Yeah. How do you do that? Because it's happening so fast. It's moving. There's a lot of movement. It's not at rest there's data moving around fast. What's the secret sauce to making real identifying real-time threats in an enterprise. >>Yeah. And in, in our opinion, there are some key ingredients. One is a granularity, right? You cannot really understand the threats in your amusement park. If you're just watching these from, from a satellite picture. So you need to be there. You need to be granular. You need to be located in the, in the areas where stuff happens. This means, for example, in, in security for the clowning in runtime, security is important to whoever your sensors that are distributed, that are able to observe every single end point. Not only that, but you also need to look at the infrastructure, right? From this point of view, cloud providers like Amazon, for example, offer nice facilities. Like for example, there's CloudTrail in AWS that collects in a nice opinionated consistent way, the data that is coming from multiple cloud services. So it's important from one point of view, to go deep into, into the endpoint, into the processes, into what's executing, but also collect his information like the cultural information and being able to correlate it to there's no full security without covering all of the basics. >>So a security is a matter of both granularity and being able to go deep and understanding what every single item does, but also being able to go abroad and collect the right data, the right data sources and correlated. And then the real time is really critical. So decisions need to be taken as the data comes in. So the streaming nature of security engines is becoming more and more important. So the step one of course, security, especially cost security, posture management was very much let's ball. Once in a while, let's, let's involve the API and see what's happening. This is still important. Of course, you know, you need to have the basics covered, but more and more, the paradigm needs to change to, okay, the data is coming in second by second, instead of asking for the data manually, once in a while, second by second, there's the moment it arrives. You need to be able to detect, correlate, take decisions. And so, you know, machine learning is very important. Automation is very important. The rules that are coming from the community on a daily basis are, are very important. >>Let me ask you a question, cause I love this topic because it's a data problem at the same time. There's some network action going on. I love this idea of no perimeter. You're going to be monitoring anything, but there's been trade offs in the past, overhead involved, whether you're monitoring or putting probes in the network or the different, there's all kinds of different approaches. How does the new technology with cloud and machine learning change the dynamics of the kinds of approaches? Because it's kind of not old tech, but you the same similar concepts to network management, other things, what what's going on now that's different and what makes this possible today? >>Yeah, I think from the friction point of view, which is one very important topic here. So this needs to be deployed efficiently and easily in this transparency, transparent as possible, everywhere, everywhere to avoid blind spots and making sure that everything is scheduled in front. His point of view, it's very important to integrate with the orchestration is very important to make use of all of the facilities that Amazon provides in the it's very important to have a system that is deployed automatically and not manually. That is in particular, the only to avoid blind spots because it's manual deployment is employed. Somebody would forget, you know, to deploy where somewhere where it's important. And then from the performance point of view, very much, for example, with Falco, you know, our open source front-end security engine, we really took key design decisions at the beginning to make sure that the engine would be able to support in Paris, millions of events per second, with minimal overhead. >>You know, they're barely measure measurable overhead. When you want to design something like that, you know, that you need to accept some kind of trade-offs. You need to know that you need to maybe limit a little bit this expressiveness, you know, or what can be done, but ease of deployment and performance were more important goals here. And you know, it's not uncommon for us is Dave to have users of Farco or commercial customers that they have tens of thousands, hundreds of thousands of machines. You know, I said two machines and sometimes millions of containers. And in these environments, lightweight is key. You want death, but you want overhead to be really meaningful and >>Okay, so a amusement park, a lot of diverse applications. So integration, I get that orchestration brings back the Kubernetes angle a little bit and Falco and per overhead and performance cloud scale. So all these things are working in favor. If I get that right, is that, am I getting that right? You get the cloud scale, you get the integration and open. >>Yeah, exactly. Any like ingredients over SEP, you know, and that, and with these ingredients, it's possible to bake a, a recipe to, to have a plate better, can be more usable, more effective and more efficient. That may be the place that we're doing in the previous direction. >>Oh, so I've got to ask you about Falco because it's come up a lot. We talked about it on our cube conversations already on the internet. Check that out. And a great conversation there. You guys have close to 40 million plus million downloads of, of this. You have also 80 was far gate integration, so six, some significant traction. What does this mean? I mean, what is it telling us? Why is this successful? What are people doing with Falco? I see this as a leading indicator, and I know you guys were sponsoring the project, so congratulations and propelled your business, but there's something going on here. What does this as a leading indicator of? >>Yeah. And for, for the audience, Falco is the runtime security tool of the cloud native generation such. And so when we, the Falco, we were inspired by previous generation, for example, network intrusion detection, system tools, and a post protection tools and so on. But we created essentially a unique tool that would really be designed for the modern paradigm of containers, cloud CIC, and salt and Falco essentially is able to collect a bunch of brainer information from your applications that are running in the cloud and is a religion that is based on policies that are driven by the community, essentially that allow you to detect misconfigurations attacks and normals conditions in your cloud, in your cloud applications. Recently, we announced that the extension of Falco to support a cloud infrastructure and time security by parsing cloud logs, like cloud trail and so on. So now Falba can be used at the same time to protect the workloads that are running in virtual machines or containers. >>And also the cloud infrastructure to give the audience a couple of examples, focused, able to detect if somebody is running a shelf in a radius container, or if somebody is downloading a sensitive by, from an S3 bucket, all of these in real time with Falco, we decided to go really with CR study. This is Degas was one of the team members that started it, but we decided to go to the community right away, because this is one other ingredient. We are talking about the ingredients before, and there's not a successful modern security tool without being able to leverage the community and empower the community to contribute to it, to use it, to validate and so on. And that's also why we contributed Falco to the cloud native computing foundation. So that Falco is a CNCF tool and is blessed by many organizations. We are also partnering with many companies, including Amazon. Last year, we released that far gate support for Falco. And that was done is a project that was done in cooperation with Amazon, so that we could have strong runtime security for the containers that are running in. >>Well, I've got to say, first of all, congratulations. And I think that's a bold move to donate or not donate contribute to the open source community because you're enabling a lot of people to do great things. And some people might be scared. They think they might be foreclosing and beneficial in the future, but in the reality, that is the new business model open source. So I think that's worth calling out and congratulations. This is the new commercial open source paradigm. And it kind of leads into my last question, which is why is security well-positioned to benefit from open source besides the fact that the new model of getting people enabled and getting scale and getting standards like you're doing, makes everybody win. And again, that's a community model. That's not a proprietary approach. So again, source again, big part of this. Why was security benefit from opensource? >>I am a strong believer. I mean, we are in a better, we could say we are in a war, right? The good guys versus the bad guys. The internet is full of bad guys. And these bad guys are coordinated, are motivated, are sometimes we'll find it. And we'll equip. We win only if we fight this war as a community. So the old paradigm of vendors building their own Eva towers, you know, their own self-contained ecosystems and that the us as users as, as, as customers, every many different, you know, environments that don't communicate with each other, just doesn't take advantage of our capabilities. Our strength is as a community. So we are much stronger against the big guys and we have a much better chance doing when this war, if we adopt a paradigm that allows us to work together. Think only about for example, I don't know, companies any to train, you know, the workforce on the security best practices on the security tools. >>It's much better to standardize on something, build the stack that is accepted by everybody and tell it can focus on learning the stack and becoming a master of the steak rounded rather than every single organization naming the different tool. And, and then B it's very hard to attract talent and to have the right, you know, people that can help you with, with your issues in, in, in, in, in, with your goals. So the future of security is going to be open source. I'm a strong believer in that, and we'll see more and more examples like Falco of initiatives that really start with, with the community and for the community. >>Like we always say an open, open winds, always turn the lights on, put the code out there. And I think, I think the community model is winning. Congratulations, Loris Dajani CTO and founder of SIS dig congratulatory success. And thank you for coming on the cube for the ADB startup showcase open cloud innovations. Thanks for coming on. Okay. Is the cube stay with us all day long every day with the cube, check us out the cube.net. I'm John furrier. Thanks for watching.

>>Okay, We're back at AWS Re. Invent. You're watching the >>cubes. Continuous coverage >>coverage. This is Day four. I think it's the first time it reinvent. We've done four days. This is our ninth year covering Reinvent. Tom Miller is here is the senior vice president of Alliances. And he's joined by Anchor Jane. Who's the global cloud? Practically practise lead at Merkel. Guys, good to see you. Thanks for coming on. Thank you, Tom. Tell us about Merkel. For those who might not be familiar with you. >>So Merkel is a customer experience management company. That is, um, under the Dentsu umbrella. Dense. Who is a global media agency? We represent one of the pillars which is global, our customer experience management. And they also have media and creative. And what Merkel does is provide that technology to help bring that creative and media together. They're a tech company. Yes. >>Okay, so there's some big big tail winds, changes, trends going on in the market. Obviously the pandemic. You know, the force marched to digital. Uh, there's regulation. What are some of the big waves that you guys are seeing that you're trying to ride? >>So what we're seeing is, uh we've got, uh, as a start. We've got a lot of existing databases with clients that are on Prem that we manage today within a sequel environment or so forth. And they need to move that to a cloud environment to be more flexible, more agile, provide them with more data to be able to follow that customer experience that they want with their clients, that they're all realising they need to be in a digital environment. And so that's a big push for us working with AWS and helping move our clients into that cloud environments. >>And you're relatively new to the ws world, right? Maybe you can talk >>about that anchor actually, as a partner. We may be new, but Merkel works with AWS has been working with AWS for over five years as a customer as a customer. So what we did was last year we formalise the relationship with us to be, uh, an advanced partner now. So we were part of the restock programme, basically which is a pool of very select partners. And Merkel comes in with the specialisation of marketing. So as Tom said, you know, we're part of, uh Dentsu umbrella are our core focuses on customer experience, transformation and how we do that Customer experience. Transformation is through digital transformation, data transformation. And that's where we see AWS being a very good partner to us to modernise the solutions that Martin can take to the market. >>So your on Prem databases is probably a lot of diversity on a lot of technical that when the cloud more agility, infinite resources do you have a tech stack? Are you more of an integrator? Right tool for the right job? Maybe you could describe >>your I can take that what time just described. So let me give you some perspective on what these databases are. These databases are essentially Markle, helping big brands 1400 Fortune 500 brands to organise their marketing ecosystem, especially Martek ecosystem. So these databases, they house customer touchpoints customer customer data from disparate sources, and they basically integrate that data in one central place and then bolt on analytics, data science, artificial intelligence, machine learning on top of it, helping them with those email campaigns or direct mail campaigns, social campaigns. So that's what these databases are all about, and and these databases currently set on Prem on Merkel's own data centre. And we have a huge opportunity to kind of take those databases and modernise them. Give all these ai ml type of capabilities advanced analytic capabilities to our customers by using AWS is the platform to kind of migrate. And you do that as a service. We do that as a service. >>Strategically, you're sort of transforming your business to help your customers transform their business right? Take away. It's it's classic. I mean, you really it's happening. This theme of, you know a W started with taking away the undifferentiated heavy lifting for infrastructure. Now you're seeing NASDAQ. Goldman Sachs. You guys in the media world essentially building your own clouds, right? That's the strategy. Yes, super clouds. We call >>them Super Cloud. Yeah, it's about helping our clients understand What is it they're trying to accomplish? And for the most part, they're trying to understand the customer journey where the customer is, how they're driving that experience with them and understanding that experience through the journey and doing that in the cloud makes it tremendously easier and more economical form. >>I was listening to the, uh, snowflake earnings call from last night and they were talking about, you know, a couple of big verticals, one being media and all. I keep talking about direct direct to consumer, right? You're hearing that a lot of media companies want to interact and build community directly. They don't want to necessarily. I mean, you don't want to go through a third party anymore if you don't have to, Technology is enabling that is that kind of the play here? >>Yes, Director Consumer is a huge player. Companies which were traditionally brick and mortar based or relied on a supply chain of dealers and distributors are now basically transforming themselves to be direct to consumer. They want to sell directly to the consumer. Personalisation comes becomes a big theme, especially indeed to see type of environment, because now those customers are expecting brands to know what's there like. What's their dislike? Which products which services are they interested in? So that's that's all kind of advanced analytics machine learning powered solutions. These are big data problems that all these brands are kind of trying to solve. That's where Merkel is partnering with AWS to bring all those technologies and and build those next generation solutions for access. So what kind >>of initiatives are you working >>on? So there are, like, 34 areas that we are working very closely with AWS number one. I would say Think about our marketers friend, you know, and they have a transformation like direct to consumer on the channel e commerce, these types of capabilities in mind. But they don't know where to start. What tools? What technologies will be part of that ecosystem. That's where Merkel provides consulting services to to give them a road map, give them recommendations on how to structure these big, large strategic initiatives. That's number one we are doing in partnership with AWS to reach out to our joint customers and help them transform those ecosystems. Number two as Tom mentioned migrations, helping chief data officers, chief technology officers, chief marketing officers modernise their environment by migrating them to cloud number three. Merkel has a solution called mercury, which is essentially all about customer identity. How do we identify a customer across multiple channels? We are Modernising all that solution of making that available on AWS marketplace for customers to actually easily use that solution. And number four, I would say, is helping them set up data foundation. That's through intelligent marketing Data Lake leveraging AWS technologies like blue, red shift and and actually modernise their data platforms. And number four is more around clean rooms, which is bring on your first party data. Join it with Amazon data to see how those customers are behaving when they are making a purchase on amazon dot com, which gives insights to these brands to reshape their marketing strategy to those customers. So those are like four or five focus areas. So I was >>gonna ask you about the data and the data strategy like, who owns the data? You're kind of alchemists that your clients have first party data and you might recommend bringing in other data sources. And you're sort of creating this new cocktail. Who owns the data? >>Well, ultimately, client also data because that that's their customers' data. Uh, to your point on, we helped them enrich that data by bringing in third party data, which is what we call is. So Merkel has a service called data source, which is essentially a collection of data that we acquire about customers. Their likes, their dislikes, their buying power, their interests so we monetise all that data. And the idea is to take those data assets and make them available on AWS data exchange so that it becomes very easy for brands to use their first party data. Take this third party data from Merkel and then, uh, segment their customers much more intelligently. >>And the CMO is your sort of ideal customer profile. >>Yeah, CMO is our main customer profile and we'll work with the chief data officer Will work with the chief technology officer. We kind of we bridge both sides. We can go technology and marketing and bring them both together. So you have a CMO who's trying to solve for some type of issue. And you have a chief technology officer who wants to improve their infrastructure. And we know how to bring them together into a conversation and help both parties get both get what they want. >>And I suppose the chief digital officer fits in there too. Yeah, he fits in their CDOs. Chief Digital officer CMO. Sometimes they're all they're one and the same. Other times they're mixed. I've seen see IOS and and CDOs together. Sure, you sort of. It's all data. It's all >>day. >>Yeah, some of the roles that come into play, as as Tom mentioned. And you mentioned C I o c T. O s chief information officer, chief technology officer, chief data officer, more from the side. And then we have the CMOS chief digital officers from the marketing side. So the secret sauce that Merkel brings to the table is that we know the language, what I t speaks and what business speaks. So when we talk about the business initiatives like direct to consumer Omni Channel E commerce, those are more business driven initiatives. That's where Merkel comes in to kind of help them with our expertise over the last 30 years on on how to run these strategic initiatives. And then at the same time, how do we translate translate those strategic initiatives into it transformation because it does require a lot of idea transformation to happen underneath. That's where AWS also helps us. So we kind of span across both sides of the horizon. >>So you got data. You've got tools, you've got software. You've got expertise that now you're making that available as a as a service. That's right. How far are you into that? journey of satisfying your business. >>Well, the cloud journey started almost, I would say, 5 to 7 years ago at Merkel, >>where you started, where you began leveraging the cloud. That's right. And then the light bulb went off >>the cloud again. We use clouds in multiple aspects, from general computing perspective, leveraging fully managed services that AWS offers. So that's one aspect, which is to bring in data from disparate sources, house it, analyse it and and derive intelligence. The second piece on the cloud side is, uh, SAS, offering software as a service offerings like Adobe Salesforce and other CDP platforms. So Merkel covers a huge spectrum. When it comes to cloud and you got >>a combination, you have a consulting business and also >>so Merkel has multiple service lines. Consulting business is one of them where we can help them on how to approach these transformational initiatives and give them blueprints and roadmaps and strategy. Then we can also help them understand what the customer strategy should be, so that they can market very intelligently to their end customers. Then we have a technology business, which is all about leveraging cloud and advanced analytics. Then we have data business that data assets that I was talking about, that we monetise. We have promotions and loyalty. We have media, so we recover multiple services portfolio. >>How do you mentioned analytics a couple times? How do you tie that? Back to the to the to the sales function. I would imagine your your clients are increasingly asking for analytics so they can manage their dashboards and and make sure they're above the line. How is that evolving? Yes, >>So that's a very important line because, you know, data is data, right? You bring in the data, but what you do with the data, how you know, how you ask questions and how you derive intelligence from it? Because that's the actionable part. So a few areas I'll give you one or two examples on how those analytics kind of come into picture. Let's imagine a brand which is trying to sell a particular product or a particular service to the to a set of customers Now who those set of customers are, You know where they should target this, who their target customers are, what the demographics are that's all done through and analytics and what I gave you is a very simple example. There are so many advanced examples, you know, that come into artificial intelligence machine learning those type of aspects as well. So analytics definitely play a huge role on how these brands need to sell and personalised the offerings that they're going to offer to. The customers >>used to be really pure art, right? It's really >>not anymore. It's all data driven. Moneyball. Moneyball? >>Yes, exactly. Exactly. Maybe still a little bit of hard in there, right? It doesn't hurt. It doesn't hurt to have a little creative flair still, but you've got to go with the data. >>That's where the expertise comes in, right? That's where the experience comes in and how you take that science and combine it with the art to present it to the end customer. That's exactly you know. It's a combination, >>and we also take the time to educate our clients on how we're doing it. So it's not done in a black box, so they can learn and grow themselves where they may end up developing their own group to handle it, as opposed to outsourcing with Merkel, >>teach them how to fish. Last question. Where do you see this in 2 to 3 years. Where do you want to take it? >>I think future is Cloud AWS being the market leader. I think aws has a huge role to play. Um, we are very excited to be partners with AWS. I think it's a match made in heaven. AWS cells in, uh, majority of the sales happen in our focus is marketing. I think if we can bring both the worlds together, I think that would be a very powerful story for us to be >>good news for AWS. They little your DNA can rub off on them would be good, guys. Thanks so much for coming to the Cube. Thank you. All right. Thank you for watching everybody. This is Dave Volonte for the Cube Day four aws re invent. Were the Cube the global leader in high tech coverage? Right back. Mhm. Mhm. Mhm.

>>you welcome to the cubes, continuing coverage of Splunk dot com. 21 I'm lisa martin of a couple guests here with me. Next talking about Splunk H P E N. Deloitte, please welcome Casey Clark, Managing Director and chief architect at Deloitte and Elias Alanya Master Technologists Office of the North American C T O at H P E. Guys welcome to the program. Great to have you. >>Thank you lisa. It's great to be here. >>Thanks lisa >>Here we still are in this virtual world the last 18 months, so many challenges, some opportunities, some silver linings but some of the big challenges that organizations are facing this rapid shift to remote work. The rapid acceleration In digital transformation ran somewhere up nearly 11 x in the first half of this year alone. Solar winds talk to me about some of the challenges that organizations are facing and how you're helping them deal with that Casey >>we'll start with you So most of our clients as we move to virtual um have accelerated their adoption of multiple cloud platforms. You know, moving into a W S into Azure into google. And one of the biggest challenges is in this distributed environment, they still have significant workloads on prem Part of the workloads are in office 3 65. Part of them are in salesforce part of them they're moving into AWS or big data workloads into google. How do you make this all manageable from both. A security point of view and accelerating threats. Uh make that much worse but also from an operational point of view, you know, how do I do application performance management when I have workloads in the cloud calling. Api is back on prem into the mainframe. How do I make an operationally when I have tons of containers and virtual machines operating out there? So the importance of Splunk and good log management observe ability along with all the security management and the security logs and being able to monitor for your environment in this complex distributed environment is absolutely critical and it's just going to get more complex as we get more distributed. >>How can companies given the complexity? How can companies with these complicated I. T. Landscapes get ahead of some of these issues? >>One of the things that we really focused on making sure that you're getting ahead of those and you know we work with organizations like Splunk and Deloitte is how do we how do we collect all of the data? Not just a little bit of it, you know Splunk, help and Deloitte are helping us look across all of those places. We want to make sure that we can can really ingest everything that's out there and then let the tools like Splunk then use all of that data. We found a lot of organizations really struggle with that and with the retention of that data it's been a challenge. So those are things that we really worked hard on figuring out with organizations out there um how to how to ingest retain and then modernize how they do those things at the same time. >>I was reading the Splunk state of Security report which they surveyed over 500 security leaders I think it was over nine um global economies and they said 78% of security and I. T. Leaders worry 78% that they're going to be hit by something like solar winds. Um That style of attack Splunk saying security is a data problem but also looking at all this talk about being on the defensive and preventing attacks the threat landscape escaping companies also have to plan for growth. They have to plan for agility. How do you both help them accomplished? Both at the same time Casey will start with you. >>Well fundamentally on the security front you start with security by design. You're designing the logging the monitoring the defenses into the systems as they are being designed up front as opposed to adding them when you get to Um you know you 80 or production environment. So security by design much like devops and Fc cops is pushing that attitude towards security back earlier in the process so that each of the systems as we're developing them um have the defenses that are needed and have the logging that are embedded in them and the standards for logging so that you don't just get a lot of different kinds of data you get the data you actually need coming into the system and then setting up the correlation of that data so you can identify those threats early through a i through predictive analytics, you get to identify things more quickly. You know, it's all about reducing cycle times and getting better information by designing it in from the beginning, >>standing in from the beginning that shifting left Elias. What are your thoughts about this, enabling that defense, designing an upfront and also enabling organizations to have the agility to grow and expand? >>Yes, sort of reminded of something our friends with the Blue oval used to say in manufacturing quality isn't inspected, it's built in right and and two cases point you have to build it in. We've we've definitely worked with delight to do that and we've set up systems so that they have true agility. We've done things like container ice block with kubernetes uh you know, work with object storage. A lot of the new modern technologies that maybe organizations aren't quite accustomed to yet are still getting on board with. And so we wrap those up in our HP Green Lake managed services so that we can provide those things to organizations that aren't maybe aren't ready for them yet. But the threat landscape is such that you have to be able to do those things if you're not orchestrating these thousands and thousands of containers with something like kubernetes, it's just it becomes such a manual labor intensive process. And so that that labor intensive, non automated process. That's the thing that we're trying to remove. >>Well that's an inhibitor to growth, right number one there, let's go ahead and dig into the HP. Deloitte Splunk solution case. I'm going to go back over to, you talk to me about kind of the catalyst for developing the solution and then we'll dig into it in terms of what it's delivering. >>So Deloitte has had long term partnerships with both H B E and Splunk and we're very excited about working together with them on this solution. Um the HP Green Light, which is hardware by subscription, the flexibility of that platform, you know, the cost effectiveness of the platform. Be able to run workloads like Splunk on it that are constantly changing. You have peaks and valleys depending on, you know, how much work you're doing, how many logs are coming in and so being able to expand that environment quickly through containerized architecture, Oz Funk, which is what we worked on, um you know, with the HP Green Light team uh and and also with spunk so that we can Federated the workloads and everything that's going on on prem with workloads that are in the cloud and doing it very flexibly with the HP on prim platform as well as, you know, Splunk on google and Azure and Splunk cloud um and then having one pane of glass that goes across all of it has been very exciting. You know, we were getting lots of interest in the demo of what we've done on the Green light platform and the partnership has been going great, uh >>that single pane of glass is so critical. We talked about cloud complexity a few minutes ago, customers are dealing with so many different applications there now in this hybrid multi cloud world, it's probably only going to proliferate, Let's talk to me about H P. S perspective and how you're going to help reduce the cloud complexity that customers in every industry are facing. >>Yeah, so within the HP Green Lake umbrella of portfolio, we have set up our uh admiral container platform, for example, are Green Lake management services. We bring all these things together in a way that that really can accelerate applications uh that can make the magic that Deloitte does work underneath. And so when, when our friends at Deloitte go and build something, someone has to, has to bring that to life, has to run it for for our customers. And so that's what Hb Green Lake does, then we do that in a way that fundamentally aligns to the business cycles that go on. And so, uh you know, we think of cloud as an operating model, not necessarily just a physical destination. And so we work on prem Coehlo public hybrid Green Lake spans across all of those and can bring together in a way that really helps customers. We've seen so many times, they have these silos and islands of data. Um you know, you've got uh data being generated in the cloud. Well, you need Splunk in the cloud, you've got the energy generated in uh, Amelia, Well you've got spunk into me and so so Deloitte's really done some great things to help us put that together and then we, we underpin that with the, with the green like uh management services with our software and our infrastructure to make it all >>work. Yeah, Elias, one of the areas that you just mentioned is is one of the hottest trends that we've noticed out there. A lot of clients, you know, with the competition for skilled resources out there on the engineering side and operations are looking at managed services as an option to building, you know, their own technology, you know, hiring their own team, running it themselves and the work that we do with both on the security side as well as operations to provide managed services for our clients in collaboration with companies like HP E and running of the Green Lake platform platforms as well as one cloud, those combined services together and delivered as a managed service uh to our clients is an exciting trend out there that um, is increasingly seen as very cost effective for our clients >>saving cost is key case. I want to get your perspective on what you think differentiates this, this solution, the technology alliance, what are the differentiators in this from Deloitte's lens. >>So bringing the expertise of a company like HP and the flexibility and expand ability of the Green lake platform and the container ization that they've done with Israel, you know, it's, it's bringing that cloud like automation and virtual and flexibility to on uh, the on prem and the hybrid cloud solution combined with Splunk who is rapidly expanding not only what they do in the security space where the constantly changing security landscape out there, but also in observe ability application, performance management, um, Ai ops, um, you know, fully automated and integrated response to operational events that are out there. So HP is doing what they do really well and adapting to this new world. Splunk is constantly changing their products to make it easier for us to go after those operational issues. And Deloitte is coming in with both the industry and the technical experience to bring it all together, you know, how do you log the right things, you know, how do you identify, you know, the real signal versus the noise out there? You know, when you're collecting massive amounts of log data, you know, how do you make it actionable? How can you automate those actions? So by bringing together all three of these berms together, uh we can bring a much better, much, much more effective solutions to our clients in much shorter time frames, >>Shorter time frames are key given that one of the things we've learned in the last 18 months, is that real time is really business critical for companies in every industry unless I want to get your perspective from a technology lens, talk to me about the differentiators here, what this solution is three way alliance brings to your customers. >>Yeah, sure thing. We've done a lot of work with Deloitte and with Intel also on performance optimization, which is, is key for any application and that gets to what I mentioned earlier of bringing more data in some of the work that we've done with until we've able been able to accelerate Are the ingest rate of Splunk by about 17 times, which is pretty incredible. Uh, and that allows us to do more or do more with less and that can help reduce the cost. Also done a lot of work on the, on the setup side. So there's a lot of complexities in running a big enterprise application like Splunk. Um, it does a lot of great things but with that comes some complications for sure. And so, uh, a lot of the work that we've done is to help really make this production ready at scale disaster tolerance and bring all of those things together. And that >>requires a fair amount of >>work on the back end to make sure that we can, we can do that at scale and, and to be a, you know, to run, you know, in a way that businesses of significant size can take advantage of these things without having to worry about what happens if I lose a data center or what happens if I lose a region. Um And and to do those things with absolute assurance >>That's critical case you have a question for you. How will this solution help facilitate one of the positives that we've seen during the last 18 months and that is the strengthening of the IT security relationship. What are your thoughts there? >>I think one of the important things here is that the standardization and automation of what we're what we're bringing together you know so that security can monitor all the different things that are being configured because I can go in and look at the automation that it's creating them. So we have a very dynamic environment now with the new cloud based and virtualized environment so going in and manually configuring anything anymore. It's just not possible. Not when you're managing tens of thousands of servers out there. So security working together very closely with operations and collaborating on that automation so that the managed services are are configured right from the beginning as we talked about security about design. Operations by design in the beginning it's that early collaboration and that shift left that is giving us the very close collaboration that results in good telemetry, good visibility you know good reaction times on the other end. >>That collaboration is something that we've also seen is really a key theme that's emerged I think from all of us in every industry in the last 18 months. And I want to punt the last question to you and that's where can customers go to learn more information? How do they get started with this solution? >>A great way to get started is to reach out to our partners like Deloitte, they can help you on that journey. Hp. Es there, of course. Hp dot com. We have a number of white papers, collateral presentations, reference architecture is you name it, it's out there. But really every organization is unique. Every every challenge that we come up with always requires a little bit of hard thinking and and so that's why we have the partnership >>to be able to work with customers and collaborate. I'll say to really identify what their challenges are, how they help them in this very dynamic. No doubt continuing to be dynamic market. Thank you both so much for joining me talking to me about what Deloitte Splunk NHP are doing, how you're helping customers address that cloud complexity from the security lens, the operations lens. We appreciate your time. >>Thanks lisa. Thank you lisa tonight >>For my guests. I'm Lisa Martin, you're watching the cubes coverage of splunk.com 21. Yeah. Mhm

>>from the bellagio hotel >>in Las Vegas, it's the cube covering Ui Path forward. Four brought to you >>by Ui Path. Welcome back from the bellagio in Las Vegas. The Cubans live at Ui Path forward for I'm lisa martin here with Dave Volonte. We're gonna be talking about roadblocks to automation and how to navigate around them, joining us next as Pernando Panini expert associate partner at bain and company per night. Welcome to the program. >>Thanks lisa. Happy to be here. >>Talk to us about some of the use cases that bain is working on with you I Path and then we'll dig into some of those roadblocks that you guys have uncovered. >>Yes. Uh I started a few months ago where we're working with Brandon who's the product lead on the Ui part side. We wanted to understand what's the state of citizen development and what are the blockers and how we should Both from the product side. But also on the automation journey side we need to dig deeper and understand where each of the clients and the employees are going through the journey together >>and if you look at it from the citizen developer perspective, what are some of those roadblocks? >>There are a few. So when like if you before we go to the roadblocks there are three main concerns or I would say critical groups that are involved in being successful with automation. The organization or bu leaders, the I. T. And employees. So each of the groups have different perceptions on like misconceptions or perceptions on benefits of automation and how to go up go about it. The blockers that we have seen where like a three sets of blockers. The first is cognitive where employees are unaware of automation on the benefits of automation and the second one is more organizational where organization leaders and how they feel about automation or how the how they think about employees when we introduce automation to them. One part of that is there is a misconception without nation leaders that employees are fearful of job loss when you introduce automation. What we have seen in our research is it's completely the opposite of employees are eager to adopt automation have given an opportunity, they are willing to upscale themselves and they are willing to save the time so that they can spend that on critical value added activities for um for their customers in the process. And a third blocker that we have seen is more on the product side where the some of the employees that we talked to as much as progress has been made by RPF vendors and local local vendors. It's still these tools are not intuitive user friendly for business users. They still feel they need to go through some training programs and have a better user friendly interface is >>what's the entry point she would organization first time I ever heard of Arpaio Years and years and years ago was at a CFO conference. Okay so that's cool. It seems like it forward for there's a lot more C. I. O presence here and that. Is that relatively new or did I just miss it before? >>It is relatively new. So like when we looked at like in the past few years the empty point has been someone in finance or I. T. Has heard about R. P. A. The benefits of head. They went and bought a handful of licenses and then they went and implemented it but it's just a handful of processes. It's not organizational wide. It has been mostly on a smaller sub scale of processes. And projects now that like organizations are realizing employees are asking and we are like slowly growing up with automation ceo es it's now it's intersecting with the C XL level of if it has to intersect with your or if you want to reinvent your business through automation, it has to come from the sea X level and that's where we're seeing more and more. See IOS are being involved in decisions on automation journeys, the technologies they have to buy and adopt for the business processes. >>So I. T. Can be an enabler of course. Also sometimes it can be a blocker. Um and you know, certainly from security standpoint governance etcetera. And so one of the things that we heard today in the keynotes was you don't want to automate the C I. O. He or she owns this application portfolio and everybody wants to do new projects because that's the fun stuff we heard from one CFO. Yeah. You add up all the NPV from the new projects. It's bigger than the valuation of the company. Right. But the C i O is stuck having to manage the infrastructure and all the processes around the existing application portfolio. One of things I heard today was don't automate an application or a process that you're trying to retire because we never get rid of stuff in it. So I wonder should automation like an enterprise wide automation? Should there be kind of an application rationalization exercise or a business process rationalization coincident with that >>initiative? Absolutely. I think that was one of the blockers that we have seen. Like some of the misconceptions and some of the blockers when I looked at it for them, they consider like you're bringing all these tools you're asking business users to like who haven't had haven't been trained in technology or programming, You're asking them to build these automation ins So one they have to manage with the all the applications and the tools for all that happens. And to manage these automation is after business users have either left the company or moved on. So it is essential for them to think through and provide a streamline tools it on on two aspects. one it needs to be as as you started off, it needs to be an enabler to provide them the specific tools that they can, they have already blessed. They've curated it which are ready for business consumption. A second part I can also do is providing collaboration platforms so that business users can learn from each other and from it so that they can one are developing the right processes with the right methodology that is governed by I. T. And no security or data governance issues. Come through. >>One of the things that you mentioned in terms of the three roadblocks ceo uncovered was that you were surprised that the results of the research showed that in fact employees are really wanting to adopt automation. In fact I think the stat is um 86% of employees want automation but only 30% of leaders are giving them the opportunity to use that. That's a big gap. Why do you think that is >>so a few things. Right. I mean as we talked about the three constituents that you have right one is automation leaders. If you consider from them. Their view is their employees are not capable of adopting or building on the automation is using these tools and they need technical skills. But the all the automation vendors have made progress and if you look at the tools today are much more user friendly and business users are willing to adopt. The second part as we talked about is like the fear of job loss from the employee standpoint. Whereas employees are looking at it as an opportunity for them to up skill but also eliminate the pain points that they have today in the day to day activities using the automation tools. And for them it is like this is helping them spend the time with the customers where it matters on critical value added activities versus going through reparative process of the journey. And the third part we talked about earlier with I. T. I. T. Has this notion that they need to build and develop anything technical. Business users will not be able to build or manage and they're also worried about the governance, the security and the third part which you brought up earlier is that tool sprawl, It's like we need to manage like this volume of tools that are coming in which is only adding to their plate of already busy busy workforce. >>I have one of those. It depends questions and it's a good consultant I'm sure you say well it depends but are there patterns best practice or even more than best pressures? Are there sort of play books if you will? And patterns? I'm sure it's situational. But are you seeing patterns emerge, you can say okay this sort of category should approach it this way. Here's another one in a different, maybe it's a department bottoms up top down, can you help us sort of squint through that? >>Yeah. So in terms of approaches like at least up till now the prevalent thing that is happening is like C. O. Es went and buy some licenses they talk about like opportunities that they have. So it's more of a top down driven uh like ceo driven agenda. What we're seeing now especially with citizen automation or democratisation of automation is there's a new approach of including employees into the journey and bringing the bottoms up approach. So there's a happy path where you marry up the top down approach with bottoms up and one you will find opportunities which are organizational wide with the bu leaders and they are ones which are on the long tail of opportunities which employees feel the pain but I. T. Or C. O. He doesn't have the time to come and implement or automate these activities. Um considering like one part we have seen which is increasingly helpful for people who have done this properly is including employees. And one thing we talked yesterday is invest in employees. They consider automation as investment in employees rather than something they're doing to employees. So it's kind of collaborating with employees to make progress which seems to be helping evangelize and also benefit with automation. How >>Have the events of the last 18 months impacted this as well, we've seen so much acceleration and the mandate for automation. What are some of the things that you've seen? >>Sure. So for us like even before the pandemic we've seen in our research so like more than close to 50% of the organizations that they started the automation journey were unable to achieve the savings or targets that they set themselves for whatever the success factors are. Which which hard. A few reasons one they didn't have the organizational support, not they were taking the end to end journey or a customer journey to figure out like what are these big opportunities that they can go through and they haven't included employees and to figure out what are the major pain points to go through the journey. One thing it was clear was with covid, no one expected this kind of disruption in a pan and a pandemic. There are a lot of offshore centres or like pretty much different geography is got disconnected from the work that's being done. You still need to support your customers, there is still a higher demand, what do you do? It's not like you can scale up your employees in a pandemic, that's where like we have seen increasing push towards automation and technology to see that can help and support and scale in a pandemic environment uh and also help your customers in the journey. >>So has in your opinion has automation become a mandate? Uh As a result of the pandemic >>I would say. Yeah I I would consider it's more of like now it's become a I would say uh business won a competitive differentiator to say like one I needed to keep my lights on and resiliency but also the companies have done really well they saw the advantage and they whether the pandemic better with the customers now they use that as a platform to create a competitive differentiation against their peers and push things forward. >>one of the things we heard of today and the keynotes is you got to think about my words, the life cycle, you don't just put in the bot and then just leave it alone. You really have to think through that. And that seems to me to be where you would help customers think through how to get the most return out of their investment. You I passed product company I think it's great. And so you talk about the value layer that you guys bring. >>So for us it's it's like when we talked to mostly be bringing from the business side of the house to understand what are the key drivers that you need to work on. I mean even before we talk about technology, we talk about, let's understand from the customer standpoint what is your customer journey into end and look through that journey lens and let's take the process and to end, let's look at redesigning process and making it more optimal and streamlined and where technology fits in. That's when we talk about like if it is an RPG or if it's a UI Path platform that can support, let's go through that journey versus taking the tool itself as the solution and trying to find every nail that you can hurt, which usually is not sustainable to your point. Like we need to think through the whole life cycle, make sure this is going to last. Or if you are retiring. Like in the ceo panel that was a discussion where that we need to think through when we are going to retire and make sure like we are in that journey versus building all these automation zor bringing all these tools and leaving them alone for I. T. To manage long term. >>No. Again the last 18 months. Again, question about the the um reactions catalyzed facilitated thinking about those three roadblocks. The cognitive roadblocks the organizational roadblocks since particularly what I'm interested in this question and product, what are some of the conversations that you've seen or trends that you seem to help those organizations better understand how to collaborate with each other so that what they're not doing is putting in our P. A point tools but really starting to build the right part of the nomination and and journey into their digital transformation plans. Yeah. >>I mean in a way to again, I'll go back to the three concerns that we talked earlier, right? It's it can only go so far and automate so much because they haven't seen the business lens of like how the processes are what they have to do and to end, which is where you need to involve the business leaders who can give you that view from the business side and employees who are seeing the work day to day and where they can eliminate the pain points. So the organisms that are successful, they are creating a collaborative environment between the three groups to push things forward. You >>have to have that collaboration that's critical. Otherwise, that's probably one of the road blockers as well. >>Yeah, absolutely. >>Where does automation fit? I mean you're obviously heavily into automation, but let's think about the bane portfolio, the boardroom discussions. Where does automation fit? I mean there's security, there's how do we embed ai into our business? How do we sas if I our business um how do we do transform digitally? Where's automation fit in that hole discourse? >>So I think the automation is like at the heart of digital transformation, the part which we have seen where the gap is is not taking the business angle and actually thinking through the process and to end versus picking up a tool and trying to go solve a problem or find a problem to solve. And that's where we think in our discussions with boardrooms, it's more of let's think through how you want to reimagine your company or how you want to be more competitive looking into the future and like walk back from that standpoint and then started part from, I mean, the way we call it the future back like where you are today and now, like let's go forward and to what your end status and where technology broadly a digital tools and where automation fits in the process. >>How do you see what you i path is talking about at this conference? The announcements from yesterday? There's a lot of people here which is fantastic. How do you see what they're announcing? The vision that they set out a couple years ago that they're now delivering on. How is that a facilitator of organizations removing those roadblocks? Because as you said automation is a huge competitive differentiator these days and If we've learned nothing in the last 19 months you gotta you gotta be careful because there's always a competitor in the rear view mirror who might be smaller faster more agile ready to take your place. >>Yeah so like a few things that we've seen in the product roadmap that you talked about is they are providing the collaboration platform or tools where the I. T. Business owners can work through. Like for automation hub is what they talked at length yesterday is that's the platform where business users can provide their ideas. Like you provide process mining tools which can capture the process and the business users understand the process and they are the ones who are putting in an opportunity on the road map. So you have now a platform where all the ideas are being catalogued and once you implement they're being tracked on the automation hub so that that is providing a platform for everyone to collaborate together. The second one which Brandon talked yesterday is the tool itself for Studio X. When we're talking about citizen developers, employees trying to use and make it more user friendly. Is that where the Studio X which is providing that you are interface? Which is easy intuitive for business users to build basic automation is and try to take that long tail of opportunities that we talked about. So all these tools are coming together as one platform play, which you ipod has been talking about all through the conference and that is critical for everyone to collaborate to make a progress versus only thinking it's an easy job to implement the automation opportunities. That >>collaboration is business critical these days. Right. Thank you for joining David me and the program talking about some of the roadblocks that you've uncovered, but also some of the ways that organizations in any industry can navigate around them and really empower those employees who want automation in their jobs. We appreciate your insights. >>Happy to be here. Thanks for having us. You're welcome >>for day Volonte. I'm lisa martin live in las Vegas at UI Path forward for we'll be right back with our next guest. Yeah. >>Yeah. Mm. Mhm

>>from the bellagio hotel in Las Vegas >>it's the >>cube >>covering Ui >>Path Forward four brought to you >>by Ui Path. >>Welcome back to las Vegas. The cube is live with you. I Path forward four at the bellagio lisa martin with Dave Volonte. We're gonna be talking about you I Path integration suite, we have a couple of guests joining us here. Mark Jeannie is here the GM of Ui Path, formerly the co founder and Ceo of cloud elements and Peter Villeroy also joins us Director of Global I. T. Automation practice at UI Path guys welcome to the program. >>Thanks lisa. Great to hear. >>So Mark, let's go ahead and start with you. The Cloud elements acquisition was done in about the last six months. Talk to us about why you chose to be acquired by Ui Path and where things are today. Some big announcements yesterday. >>Yeah absolutely. So yeah if you go back six months ago um you know we have been in conversations with you I Path for for quite a while and um you know as we were looking at our opportunities as an api integration platform. So cloud elements just to step back a little bit um was a leader in helping companies take a P. I. S integrate applications together and bed that into their into their apps and um you know I Path approached us about the combination of what's happening in the automation world and you know these these have been a society as the marine Fleming from I. D. C. Mentioned this morning integration and DARPA have been separate swim lanes and what we saw and what you I. Path approaches with was ability to combine these together and really be the first company to take and take ui automation and seamlessly connected together with A. P. I. Automation or api integration >>Peter What's been some of the feedback? We know you guys are more than 9000 customers strong now we've had a whole bunch of amount yesterday and today. What's been the feedback so far on the cloud elements acquisition? So >>there's a huge amount of interest. We've had very positive feedback on that lisa the combination of Ui driven automation and A. P. I. Uh Native Integrations is is key especially to the I. T. Leadership that I work with. Um some of whom have traditionally compartmentalized you ipads platform in the Ui space and legitimately think about their own internal processes as being having very little to do with the user interface right. And so combining Ui driven automation together with uh api integration really helps too pick them up where they are and show them the power of that kind of a hyper automation platform that can deliver value in a number of spaces. And you guys ever >>see the movie Blindside? All right. You know what I'm talking about with joe. Theismann gets hit from the blind side and then his career is over and and that's when people realized oh my gosh the left tackle for right handed quarterback is so important and it's subsequent drafts when somebody would pick a left tackle like a good left all the rest went and that's what's happening in in the automation business today. You guys took the lead, you you set the trend. People said wow this is actually going to be a huge market. And then now we're seeing all this gonna occur. And a lot of it from these big software companies who believe every dollar of software should go to them saying hey we can actually profit from this within our own vertical stacks. So what do you make of all the M. And A. That's going on in particular? There was one recently where private equity firm is mashing together a long time R. P. A vendor with a long time integration firm. So it looks like you guys, you know on the right >>side of history in this regard. Your thoughts. Yeah. Absolutely. I mean if you think about automation right you've got to obviously help people do their jobs better. But if you're going to automate a process and a department you needed connect the applications that they use that those people use otherwise you can't accomplish it. And where ap is fit in as is automation and ui automation has become more and more mission critical and it's become bigger and bigger part of enterprise I. T. Wants to get involved. And so enterprise gets involved and what's their stack. It's api based their technology stack is how you connect back is through api so more and more companies are seeing what you I path saw is that if you're gonna automate every process and every department for every person you need to connect to every application that they're using and that's why this is now becoming right. Three companies now just recently have done these types of acquisitions of bringing an integration platform in and combining them together are trying to combine them together. >>All mps are not created equally as we know. Some are sort of half baked lot of them. Many of them don't have decent documentation so there's sort of a spectrum there. How do you, how do you think about prioritizing? How do you think about the landscape? Do you just kind of ignore the stuff that's not well documented and eventually that will take care of itself. How should we think about there have always >>been layers of integration right. Especially working with the ICTy organizations. So you've got our native integrations would make it easy to drag and drop activities and then you've got the A. P. I. Is that we can consume with various activities. That area has really grown through the acquisition of cloud elements and then you've got that third layer where when all else fails, you go on to the user interface and interact with the application like a human does and what you see is that our our interaction with college elements really enables a great enhancement of that lower base level um which is mildly interesting to the lines of business very important. I Yeah, for sure. >>So the reason I asked that question is I was talking to one of your customers this big ASAP customers said I love you ipad. The problem I have is I got so many custom mods and so it's just you know orally documented and I can't I wanna put automation in there but I can't. So to those parts of the tech stack become like the main frame of you know what I mean? And just sort of they live there and they just keep doing their thing but there's so much innovation that pops up around it. How do you how do you see that? >>Well that's part of the agility that comes with the platform like you ipads is that you can interact with the very clean uh swagger documented restful aPI s and you can interact with SCP on their proprietary ages old A. P. I. S. Um Those are things that we've traditionally done decently well, but again through this acquisition we could do that on a grander scale um with bidirectional triggering and all the goodness that you >>solve that problem today that your customer and this is a couple of years ago, you can solve that problem with cloud elements. Is that right? >>Yeah, absolutely. The the ability to integrate too these enterprise platforms like ASAP you need multiple tools to do the job. Right. So ui automation is great but if you've customized ui significantly or other things like that then the A. P. I can be a great structure for it and other cases where um that api provides a resiliency in a in a scale to it that um opens up new processes as well to those corporate systems. Right? So the balance of being able to bring these two worlds together is where you can unlock more because you got >>east west automation >>that's very good overhead and now >>you're going north south with cloud elements is deeper. Right, >>bottom line from the VP of its point of view, the more that can be done from a machine to machine communication the better. So sure. >>What's the opportunity for the existing cloud elements customers to take advantage of here? >>Yeah, absolutely. Um We've continued to support, brought our customers over with us. Uh Part of our customer base has actually been a significant number of software customers. Uh cos S. A. P. S. One of them doc you sign gain site, you know, so household names in the world of software as well as large financial services institutions like US Bank and Capital One and american Express, all of them had that common need where um they wanted to have an api centric approach to being able to connect to customers and partners and leverage our platform to do that. So we will continue to support that extend that. But we see opportunities where again we couldn't automate everything for our customers just threw a PS And uh you know for example one of our major financial services institutions were working with wants to take um and provide a robot for their uh customers and commercial payments to be able to automatically kick off in A. P. I. And so that seamless integration where we can combine that automation with robots leveraging and kicking off a P. I. S automatically takes us further into automating those processes for those >>customers. So you guys six months right. Uh talk about how that integration api integration company better gone smoothly. But what was that like you guys are getting the knack of M and a talk about that, what you learn maybe what you would do differently to even accelerate further, How'd it go? Uh >>That's the best answer from you having been on the >>acquisition side. Um Well we how well it went is six months later, which I think is really unheard of in the technology world, we're introducing our combined offering you I Path integration service that essentially takes what cloud elements built embeds it right into automation. Cloud studio in the Ui Path products. We and uh it's been a global effort. Right? So we had the Ui Path team was based in Hyderabad Denver and Dallas and then we've got um Ui Path engineers working with that cloud elements team that are in Bucharest Bellevue and bangalore and with the miracles of zoom and uh that type of thing, never meeting anyone in person, we were able to integrate the product together and launch it here today >>six months is a fast turnaround time frame was how much of that was accelerated by the, by the fact of the global situation that we're in. >>Yeah, well you know in some respects that that helped right? Because we um um we didn't have to waste time traveling and we could hop on zoom calls instantly. We spent a lot of time even over zoom making sure there was a cultural fit. You I path has a, you know, not only the humble, bold and type of values but it's a very collaborative environment, very open and collaborative environment as Brent can attest to. And that collaboration, I think in that spirit of collaboration really helped us feel welcome and move quickly to pull this together. And also >>the necessity is the mother of innovation right. Uh you ipad traditionally being popular in the CFOs organization were becoming the C I O s best friend and the timing was right to introduce this kind of capability to combine with what we traditionally do well and really move into their picking up like I said the customer where they are and leading them into that fully end to end automation capability and this was integral. So it wasn't time to kick the tires but to get moving >>and my right, there's a governance play here as well because I. T. Is kind of generally responsible for governance if you make it easier for them to whatever governance systems they're using >>governance privacy >>security that now you can just connect. They don't have to rip and replace. Is there an angle there? >>Sure, yeah. So nothing is more important than I. T. Than than control and governments and change management and half of the uh conversations we're having out there on the floor are around that right um uh ensuring that all of the good governance is in place um and we have a lot of the uh integrations and frameworks necessary to help that through your devops pipeline and doing proper ci cd and test automation um and you know introducing that integration layer in addition to what we already have just helps all of that to uh move more smoothly and bring more value to our customers. >>Mark talk to me about some of the feedback from customers that you mentioned, doc Watson. S A P probably I imagine joint customers with you. I path now there you're working together, what's the what's in it for them? >>Yeah, no the feedback has been tremendous. Right, so um api automation is not new to you. I path but customers have been asking for more capability. So one of them is in that governance area that we were just talking about, right, the ability to create connections centrally enable them disable them. Right? You got mission critical corporate applications. You want to be able to make sure that those applications are being controlled and monitored. Right? So that was one aspect. And by bringing this as a cloud based service, we can accomplish that. Um the other area is that this eventing capability, the ability to kick off workflows and processes based on changes to corporate applications, a new employees added in workday. I want to kick off a process to onboard that new employee and that triggered eventing service has been really well received and then um yeah, so that I'd say with the ability to also create new connections more simply was the third big factor. Uh we created a standardized authentication service. So no matter where you are in the UI Path product line, you get a consistent way to create a new connection, whether it's a personal connection by a business user too, you know, google docs or Microsoft office or your C O E R I T. Creating a connection to uh an important corporate system. >>How about the partner? I know you guys had partner day here leading into forward for they must be stoked about this gives you a lever to even add new partners. What was those >>conversations like? Yeah, yeah, no, absolutely. The partners are excited about those same features but um they're also excited about something in our roadmap which we expect to be previewing early next year and that's a connector builder. So the ability for partners to uh more quickly than ever create their own connectors. That'll work just like first party connectors that we ui Path build and add them into catalogs, share them in the market place. So there's new revenue opportunities, new opportunities for partners to create reusable assets that they can leverage and yeah so um lots of things, lots of work to continue to do, right? It's only been six months and uh but that's that's gonna be a big initiative going forward. >>So integration service as you mentioned, announced at this conference, we know that that's the first step obviously accomplished as we also talked about very quickly in a six month time period. But what does the future hold for api automation and integration service? >>So um one of the key areas just continue to expose the integration service um more broadly in the Ui Path product portfolio. Now that we have this service, more Ui Path products will be able to leverage it. Right? We're starting off with studio and orchestrator but that we can all use and share that common common capability. Um The other is to make access to complex business systems easier. So you think about it right. A uh to get a purchase order from net suite might take five or six api calls to do. Well, a citizen developer doesn't know what those five or six things you have to do. So we'll be creating these business activities or just get me open purchase orders that will work seamlessly in the studio product. And behind the scenes. Well, chain together those 56 aPI calls to make that a simple process. Right? So taking the integration service and making it even more powerful tool for that citizen developer than nontechnical user as well. So that's >>development work you're going to do. >>That's what we're gonna do as well as enable partners to do as well. So it's a key part of our road map over time. Because >>yeah I mean the partner pieces key because when net suite changes how it you're creating that abstraction layer. So but that's value add for the partners. >>Absolutely. And they have that domain expertise, right. They can create assets, leveraging the UI path automation capabilities but also bring their knowledge about A. S. A. P. Or workday and those oracle ebs and those core business systems and then combine that together into assets that enhance integration service that they build and I can I can share with their customers and share with our market >>because the work workday developer is going to know about that well ahead of time. No, >>it's coming and they know better than we do. Right. That's their business. That's what they know really well. >>Nice nice value at opportunity, peter >>One of the things that you iPad has been known for is its being very and I've said this on the program the last two days, that's being a good use case for land and expand. You guys have 70% of revenue that comes from existing customers. Talk to me about the cloud elements acquisition as a facilitator of because you kind of mentioned, you know, we're used to be really in bed with the cfos now we're going to see us and we've heard from a number of your customers where they started in finance and it's now Enterprise White, how is this going to help facilitate that? Even more? >>It really helps, you know, touching on what Mark just mentioned about the citizen developer, right, just as one of many examples, the empowerment of end users to automate things for themselves um is critical to that land and expand um successes that we've been seeing and where from an I. T standpoint, the frustration with the citizen developer is, you know, maybe what they're building isn't so top notch right? It works for themselves. What we can't replicate that, but put making it easy to make api integration part of what they do in studio X is so key to enhancing also the reusability of what's coming out of there. So that c uh C O E S can replicate that across teams are globally within their organization and that's part of land and expand because you may find something that's valuable in one line of business replicates easily into another line of business if the tool set is in place >>pretty powerful model lisa >>it is guys. Thanks so much for joining us today, talking about the club elements acquisition, what you're uh, doing with integration service, What's to come the opportunities in it for both sides and your partners? We appreciate your time. >>Great. Thank you. Thank you very much. I >>appreciate it. Thank you for >>David Want I'm lisa martin. You're watching the cube live in las Vegas at the bellagio Ui Path forward for stick around. We'll be right back. Yeah. Mhm. Mhm mm.

>>text, you know, consumer opens up their iphone and says, oh my gosh, I love the technology behind my eyes. What's it been like being on the shark tank? You know, filming is fun, hang out, just fun and it's fun to be a celebrity at first your head gets really big and you get a good tables at restaurants who says texas has got a little possess more skin in the game today in charge of his destiny robert Hirschbeck, No stars. Here is CUBA alumni. Yeah, okay. >>Hi. I'm john Ferry, the co founder of silicon angle Media and co host of the cube. I've been in the tech business since I was 19 1st programming on many computers in a large enterprise and then worked at IBM and Hewlett Packard total of nine years in the enterprise brian's jobs from programming, Training, consulting and ultimately as an executive salesperson and then started my first company with 1997 and moved to Silicon Valley in 1999. I've been here ever since. I've always loved technology and I love covering you know, emerging technology as trained as a software developer and love business and I love the impact of software and technology to business to me creating technology that starts the company and creates value and jobs is probably the most rewarding things I've ever been involved in. And I bring that energy to the queue because the Cubans were all the ideas are and what the experts are, where the people are and I think what's most exciting about the cube is that we get to talk to people who are making things happen, entrepreneur ceo of companies, venture capitalists, people who are really on a day in and day out basis, building great companies and the technology business is just not a lot of real time live tv coverage and, and the cube is a non linear tv operation. We do everything that the T. V guys on cable don't do. We do longer interviews. We asked tougher questions, we ask sometimes some light questions. We talked about the person and what they feel about. It's not prompted and scripted. It's a conversation authentic And for shows that have the Cube coverage and makes the show buzz. That creates excitement. More importantly, it creates great content, great digital assets that can be shared instantaneously to the world. Over 31 million people have viewed the cube and that is the result. Great content, great conversations and I'm so proud to be part of you with great team. Hi, I'm john ferrier. Thanks for watching the cube. >>Hello and welcome to the cube. We are here live on the ground in the expo floor of a live event. The AWS public sector summit. I'm john for your host of the cube. We're here for the next two days. Wall to wall coverage. I'm here with Sandy carter to kick off the event. Vice president partner as partners on AWS public sector. Great to see you Sandy, >>so great to see you john live and in person, right? >>I'm excited. I'm jumping out of my chair because I did a, I did a twitter periscope yesterday and said a live event and all the comments are, oh my God, an expo floor a real events. Congratulations. >>True. Yeah. We're so excited yesterday. We had our partner day and we sold out the event. It was rock them and pack them and we had to turn people away. So what a great experience. Right, >>Well, I'm excited. People are actually happy. We tried, we tried covering mobile world congress in Barcelona. Still, people were there, people felt good here at same vibe. People are excited to be in person. You get all your partners here. You guys have had had an amazing year. Congratulations. We did a couple awards show with you guys. But I think the big story is the amazon services for the partners. Public sector has been a real game changer. I mean we talked about it before, but again, it continues to happen. What's the update? >>Yeah, well we had, so there's lots of announcements. So let me start out with some really cool growth things because I know you're a big growth guy. So we announced here at the conference yesterday that our government competency program for partners is now the number one industry in AWS for are the competency. That's a huge deal. Government is growing so fast. We saw that during the pandemic, everybody was moving to the cloud and it's just affirmation with the government competency now taking that number one position across AWS. So not across public sector across AWS and then one of our fastest growing areas as well as health care. So we now have an A. T. O. Authority to operate for HIPPA and Hi trust and that's now our fastest growing area with 85% growth. So I love that new news about the growth that we're seeing in public sector and all the energy that's going into the cloud and beyond. >>You know, one of the things that we talked about before and another Cuban of you. But I want to get your reaction now current state of the art now in the moment the pandemic has highlighted the antiquated outdated systems and highlighted help inadequate. They are cloud. You guys have done an amazing job to stand up value quickly now we're in a hybrid world. So you've got hybrid automation ai driving a complete change and it's happening pretty quick. What's the new things that you guys are seeing that's emerging? Obviously a steady state of more growth. But what's the big success programs that you're seeing right now? >>Well, there's a few new programs that we're seeing that have really taken off. So one is called proserve ready. We announced yesterday that it's now G. A. And the U. S. And a media and why that's so important is that our proserve team a lot of times when they're doing contracts, they run out of resources and so they need to tap on the shoulder some partners to come and help them. And the customers told us that they wanted them to be pro served ready so to have that badge of honor if you would that they're using the same template, the same best practices that we use as well. And so we're seeing that as a big value creator for our partners, but also for our customers because now those partners are being trained by us and really helping to be mentored on the job training as they go. Very powerful program. >>Well, one of the things that really impressed by and I've talked to some of your MSP partners on the floor here as they walk by, they see the cube, they're all doing well. They're all happy. They got a spring in their step. And the thing is that this public private partnerships is a real trend we've been talking about for a while. More people in the public sector saying, hey, I want I need a commercial relationship, not the old school, you know, we're public. We have all these rules. There's more collaboration. Can you share your thoughts on how you see that evolving? Because now the partners in the public sector are partnering closer than ever before. >>Yeah, it's really um, I think it's really fascinating because a lot of our new partners are actually commercial partners that are now choosing to add a public sector practice with them. And I think a lot of that is because of these public and private partnerships. So let me give you an example space. So we were at the space symposium our first time ever for a W. S at the space symposium and what we found was there were partners, they're like orbital insight who's bringing data from satellites, There are public sector partner, but that data is being used for insurance companies being used for agriculture being used to impact environment. So I think a lot of those public private partnerships are strengthening as we go through Covid or have like getting alec of it. And we do see a lot of push in that area. >>Talk about health care because health care is again changing radically. We talked to customers all the time. They're like, they have a lot of legacy systems but they can't just throw them away. So cloud native aligns well with health care. >>It does. And in fact, you know, if you think about health care, most health care, they don't build solutions themselves, they depend on partners to build them. So they do the customer doesn't buy and the partner does the build. So it's a great and exciting area for our partners. We just launched a new program called the mission accelerator program. It's in beta and that program is really fascinating because our healthcare partners, our government partners and more now can use these accelerators that maybe isolate a common area like um digital analytics for health care and they can reuse those. So it's pretty, I think it's really exciting today as we think about the potential health care and beyond. >>You know, one of the challenge that I always thought you had that you guys do a good job on, I'd love to get your reaction to now is there's more and more people who want to partner with you than ever before. And sometimes it hasn't always been easy in the old days like to get fed ramp certified or even deal with public sector. If you were a commercial vendor, you guys have done a lot with accelerating certifications. Where are you on that spectrum now, what's next? What's the next wave of partner onboarding or what's the partner trends around the opportunities in public sector? >>Well, one of the new things that we announced, we have tested out in the U. S. You know, that's the amazon way, right, Andy's way, you tested your experiment. If it works, you roll it out, we have a concierge program now to help a lot of those new partners get inundated into public sector. And so it's basically, I'm gonna hold your hand just like at a hotel. I would go up and say, hey, can you direct me to the right restaurant or to the right museum, we do the same thing, we hand hold people through that process. Um, if you don't want to do that, we also have a new program called navigate which is built for brand new partners. And what that enables our partners to do is to kind of be guided through that process. So you are right. We have so many partners now who want to come and grow with us that it's really essential that we provide a great partner, experienced a how to on board. >>Yeah. And the A. P. M. Was the amazon partner network also has a lot of crossover. You see a lot a lot of that going on because the cloud, it's you can do both. >>Absolutely. And I think it's really, you know, we leverage all of the ap in programs that exist today. So for example, there was just a new program that was put out for a growth rebate and that was driven by the A. P. N. And we're leveraging and using that in public sector too. So there's a lot of prosecutes going on to make it easier for our partners to do business with us. >>So I have to ask you on a personal note, I know we've talked about before, your very comfortable the virtual now hybrid space. How's your team doing? How's the structure looks like, what are your goals, what are you excited about? >>Well, I think I have the greatest team ever. So of course I'm excited about our team and we are working in this new hybrid world. So it is a change for everybody uh the other day we had some people in the office and some people calling in virtually so how to manage that, right was really quite interesting. Our goals that we align our whole team around and we talked a little bit about this yesterday are around mission which are the solution areas migration, so getting everything to the cloud and then in the cloud, we talk about modernization, are you gonna use Ai Ml or I O T? And we actually just announced a new program around that to to help out IOT partners to really build and understand that data that's coming in from I O T I D C says that that idea that IOT data has increased by four times uh in the, during the covid period. So there's so many more partners who need help. >>There's a huge shift going on and you know, we always try to explain on the cube. Dave and I talked about a lot and it's re platform with the cloud, which is not just lift and shift you kind of move and then re platform then re factoring your business and there's a nuance there between re platform in which is great. Take advantage of cloud scale. But the re factoring allows for this unique advantage of these high level services. >>That's right >>and this is where people are winning. What's your reaction to that? >>Oh, I completely agree. I think this whole area of modernizing your application, like we have a lot of folks who are doing mainframe migrations and to your point if they just lift what they had in COBOL and they move it to a W S, there's really not a lot of value there, but when they rewrite the code, when they re factor the code, that's where we're seeing tremendous breakthrough momentum with our partner community, you know, Deloitte is one of our top partners with our mainframe migration. They have both our technology and our consulting um, mainframe migration competency there to one of the other things I think you would be interested in is in our session yesterday we just completed some research with r C T O s and we talked about the next mega trends that are coming around Web three dato. And I'm sure you've been hearing a lot about web www dot right? Yeah, >>0.04.0, it's all moving too fast. I mean it's moving >>fast. And so some of the things we talked to our partners about yesterday are like the metaverse that's coming. So you talked about health care yesterday electronic caregiver announced an entire application for virtual caregivers in the metaverse. We talked about Blockchain, you know, and the rise of Blockchain yesterday, we had a whole set of meetings, everybody was talking about Blockchain because now you've got El Salvador Panama Ukraine who have all adopted Bitcoin which is built on the Blockchain. So there are some really exciting things going on in technology and public sector. >>It's a societal shift and I think the confluence of tech user experience data, new, decentralized ways of changing society. You're in the middle of it. >>We are and our partners are in the middle of it and data data, data data, that's what I would say. Everybody is using data. You and I even talked about how you guys are using data. Data is really a hot topic and we we're really trying to help our partners figure out just how to migrate the data to the cloud but also to use that analytics and machine learning on it too. Well, >>thanks for sharing the data here on our opening segment. The insights we will be getting out of the Great Sandy. Great to see you got a couple more interviews with you. Thanks for coming on. I appreciate you And thanks for all your support. You guys are doing great. Your partners are happy you're on a great wave. Congratulations. Thank you, john appreciate more coverage from the queue here. Neither is public sector summit. We'll be right back. Mhm Yeah. >>Mhm. Mhm robert Herjavec. People obviously know you from shark tank

>>Yeah. Hello and welcome back to the cubes coverage of AWS public sector summit here in Washington D. C. We're live on the ground for two days. Face to face conference and expo hall and everything here but keith brooks who is the director and head of technical business development for a dress government Govcloud selling brains 10th birthday. Congratulations. Welcome to the cube. Thank you john happy to be E. C. 2 15 S three is 9.5 or no, that maybe they're 10 because that's the same day as sqs So Govcloud. 10 years, 20 years. What time >>flies? 10 years? >>Big milestone. Congratulations. A lot of history involved in Govcloud. Yes. Take us through what's the current situation? >>Yeah. So um let's start with what it is just for the viewers that may not be familiar. So AWS Govcloud is isolated. AWS cloud infrastructure and services that were purposely built for our U. S. Government customers that had highly sensitive data or highly regulated data or applications and workloads that they wanted to move to the cloud. So we gave customers the ability to do that with AWS Govcloud. It is subject to the fed ramp I and D O D S R G I L four L five baselines. It gives customers the ability to address ITAR requirements as well as Seaga's N'est ce MMC and Phipps requirements and gives customers a multi region architecture that allows them to also designed for disaster recovery and high availability in terms of why we built it. It starts with our customers. It was pretty clear from the government that they needed a highly secure and highly compliant cloud infrastructure to innovate ahead of demand and that's what we delivered. So back in august of 2011 we launched AWS GovCloud which gave customers the best of breed in terms of high technology, high security, high compliance in the cloud to allow them to innovate for their mission critical workloads. Who >>was some of the early customers when you guys launched after the C. I. A deal intelligence community is a big one but some of the early customers. >>So the Department of Health and Human Services, the Department of Veterans Affairs, the Department of Justice and the Department of Defense were all early users of AWS GovCloud. But one of our earliest lighthouse customers was the Nasa jet propulsion laboratory and Nasa Jpl used AWS GovCloud to procure Procure resources ahead of demand which allowed them to save money and also take advantage of being efficient and only paying for what they needed. But they went beyond just I. T. Operations. They also looked at how do they use the cloud and specifically GovCloud for their mission programs. So if you think back to all the way to 2012 with the mars curiosity rover, Nasa Jpl actually streamed and processed and stored that data from the curiosity rover on AWS Govcloud They actually streamed over 150 terabytes of data responded to over 80,000 requests per second and took it beyond just imagery. They actually did high performance compute and data analytics on the data as well. That led to additional efficiencies for future. Over there >>were entire kicking they were actually >>hard core missing into it. Mission critical workloads that also adhere to itar compliance which is why they used AWS GovCloud. >>All these compliance. So there's also these levels. I remember when I was working on the jetty uh stories that were out there was always like level for those different classifications. What does all that mean like? And then this highly available data and highly high availability all these words mean something in these top secret clouds. Can you take us through kind of meetings >>of those? Yeah absolutely. So it starts with the federal compliance program and the two most popular programs are Fed ramp and Dodi srg fed ramp is more general for federal government agencies. There are three levels low moderate and high in the short and skinny of those levels is how they align to the fisma requirements of the government. So there's fisma low fisma moderate fisma high depending on the sensitivity of the government data you will have to align to those levels of Fed ramp to use workloads and store data in the cloud. Similar story for D. O. D. With srg impact levels to 45 and six uh impacts levels to four and five are all for unclassified data. Level two is for less sensitive public defense data levels. Four and five cover more sensitive defense data to include mission critical national security systems and impact level six is for classified information. So those form the basis of security and compliance, luckily with AWS GovCloud celebrating our 10th anniversary, we address Fed ramp high for our customers that require that and D. O. D impact levels to four and five for a sensitive defense guy. >>And that was a real nuanced point and a lot of the competition can't do that. That's real people don't understand, you know, this company, which is that company and all the lobbying and all the mudslinging that goes on. We've seen that in the industry. It's unfortunate, but it happens. Um, I do want to ask you about the Fed ramp because what I'm seeing on the commercial side in the cloud ecosystem, a lot of companies that aren't quote targeting public sector are coming in on the Fed ramp. So there's some good traction there. You guys have done a lot of work to accelerate that. Any new, any new information to share their. >>Yes. So we've been committed to supporting the federal government compliance requirements effectively since the launch of GovCloud. And we've demonstrated our commitment to Fed ramp over the last number of years and GovCloud specifically, we've taken dozens of services through Fed ramp high and we're 100% committed to it because we have great relationships with the Fed ramp, Jabor the joint authorization board. We work with individual government agencies to secure agency A. T. O. S. And in fact we actually have more agency A. T. O. S. With AWS GovCloud than any other cloud provider. And the short and skinny is that represents the baseline for cloud security to address sensitive government workloads and sensitive government data. And what we're seeing from industry and specifically highly regulated industries is the standard that the U. S. Government set means that they have the assurance to run control and classified information or other levels of highly sensitive data on the cloud as well. So Fed ramp set that standard. It's interesting >>that the cloud, this is the ecosystem within an ecosystem again within crossover section. So for instance um the impact of not getting Fed ramp certified is basically money. Right. If you're a supplier vendor uh software developer or whatever used to being a miracle, no one no one would know right bed ramp. I'm gonna have to hire a whole department right now. You guys have a really easy, this is a key value proposition, isn't it? >>Correct. And you see it with a number of I. S. V. S. And software as the service providers. If you visit the federal marketplace website, you'll see dozens of providers that have Fed ramp authorized third party SAAS products running on GovCloud industry leading SAAS companies like Salesforce dot com driven technology Splunk essay PNS to effectively they're bringing their best of breed capabilities, building on top of AWS GovCloud and offering those highly compliant fed ramp, moderate fed ramp high capabilities to customers both in government and private industry that need that level of compliance. >>Just as an aside, I saw they've got a nice tweet from Teresa Carlson now it's plunk Govcloud yesterday. That was a nice little positive gesture uh, for you guys at GovCloud, what other areas are you guys moving the needle on because architecturally this is a big deal. What are some areas that you're moving the needle on for the GovCloud? >>Well, when I look back across the last 10 years, there were some pretty important developments that stand out. The first is us launching the second Govcloud infrastructure region in 2018 And that gave customers that use GovCloud specifically customers that have highly sensitive data and high levels of compliance. The ability to build fault tolerant, highly available and mission critical workloads in the cloud in a region that also gives them an additional three availability zones. So the launch of GovCloud East, which is named AWS GovCloud Us East gave customers to regions a total of six availability zones that allowed them accelerate and build more scalable solutions in the cloud. More recently, there is an emergence of another D O D program called the cybersecurity maturity model, C M M C and C M M C is something where we looked around the corner and said we need to Innovate to help our customers, particularly defense customers and the defense industrial based customers address see MMC requirements in the cloud. So with Govcloud back in December of 2020, we actually launched the AWS compliant framework for federal defense workloads, which gives customers a turnkey capability and tooling and resources to spin up environments that are configured to meet see MMC controls and D. O. D. Srg control. So those things represent some of the >>evolution keith. I'm interested also in your thoughts on how you see the progression of Govcloud outside the United States. Tactical Edge get wavelength coming on board. How does how do you guys look at that? Obviously us is global, it's not just the jet, I think it's more of in general. Edge deployments, sovereignty is also going to be world's flat, Right? I mean, so how does that >>work? So it starts back with customer requirements and I tie it back to the first question effectively we built Govcloud to respond to our U. S. Government customers and are highly regulated industry customers that had highly sensitive data and a high bar to meet in terms of regulatory compliance and that's the foundation of it. So as we look to other customers to include those outside of the US. It starts with those requirements. You mentioned things like edge and hybrid and a good example of how we marry the two is when we launched a W. S. Outpost in Govcloud last year. So outpost brings the power of the AWS cloud to on premises environments of our customers, whether it's their data centers or Coehlo environments by bringing AWS services, a. P. I. S and service and points to the customer's on premises facilities >>even outside the United States. >>Well, for Govcloud is focused on us right now. Outside of the U. S. Customers also have availability to use outpost. It's just for us customers, it's focused on outpost availability, geography >>right now us. Right. But other governments gonna want their Govcloud too. Right, Right, that's what you're getting at, >>Right? And it starts with the data. Right? So we we we spent a lot of time working with government agencies across the globe to understand their regulations and their requirements and we use that to drive our decisions. And again, just like we started with govcloud 10 years ago, it starts with our customer requirements and we innovate from there. Well, >>I've been, I love the D. O. D. S vision on this. I know jet I didn't come through and kind of went scuttled, got thrown under the bus or whatever however you want to call it. But that whole idea of a tactical edge, it was pretty brilliant idea. Um so I'm looking forward to seeing more of that. That's where I was supposed to come in, get snowball, snowmobile, little snow snow products as well, how are they doing? And because they're all part of the family to, >>they are and they're available in Govcloud and they're also authorized that fed ramp and Gov srg levels and it's really, it's really fascinating to see D. O. D innovate with the cloud. Right. So you mentioned tactical edge. So whether it's snowball devices or using outposts in the future, I think the D. O. D. And our defense customers are going to continue to innovate. And quite frankly for us, it represents our commitment to the space we want to make sure our defense customers and the defense industrial base defense contractors have access to the best debris capabilities like those edge devices and edge capable. I >>think about the impact of certification, which is good because I just thought of a clean crows. We've got aerospace coming in now you've got D O. D, a little bit of a cross colonization if you will. So nice to have that flexibility. I got to ask you about just how you view just in general, the intelligence community a lot of uptake since the CIA deal with amazon Just overall good health for eight of his gum cloud. >>Absolutely. And again, it starts with our commitment to our customers. We want to make sure that our national security customers are defense customers and all of the customers and the federal government that have a responsibility for securing the country have access to the best of breed capability. So whether it's the intelligence community, the Department of Defense are the federal agencies and quite frankly we see them innovating and driving things forward to include with their sensitive workloads that run in Govcloud, >>what's your strategy for partnerships as you work on the ecosystem? You do a lot with strategy. Go to market partnerships. Um, it's got its public sector pretty much people all know each other. Our new firms popping up new brands. What's the, what's the ecosystem looks like? >>Yeah, it's pretty diverse. So for Govcloud specifically, if you look at partners in the defense community, we work with aerospace companies like Lockheed martin and Raytheon Technologies to help them build I tar compliant E. R. P. Application, software development environments etcetera. We work with software companies I mentioned salesforce dot com. Splunk and S. A. P. And S. To uh and then even at the state and local government level, there's a company called Pay It that actually worked with the state of Kansas to develop the Icann app, which is pretty fascinating. It's a app that is the official app of the state of Kansas that allow citizens to interact with citizens services. That's all through a partner. So we continue to work with our partner uh broad the AWS partner network to bring those type of people >>You got a lot of MST is that are doing good work here. I saw someone out here uh 10 years. Congratulations. What's the coolest thing uh you've done or seen. >>Oh wow, it's hard to name anything in particular. I just think for us it's just seeing the customers and the federal government innovate right? And, and tie that innovation to mission critical workloads that are highly important. Again, it reflects our commitment to give these government customers and the government contractors the best of breed capabilities and some of the innovation we just see coming from the federal government leveraging the count now. It's just super cool. So hard to pinpoint one specific thing. But I love the innovation and it's hard to pick a favorite >>Child that we always say. It's kind of a trick question I do have to ask you about just in general, the just in 10 years. Just look at the agility. Yeah, I mean if you told me 10 years ago the government would be moving at any, any agile anything. They were a glacier in terms of change, right? Procure Man, you name it. It's just like, it's a racket. It's a racket. So, so, but they weren't, they were slow and money now. Pandemic hits this year. Last year, everything's up for grabs. The script has been flipped >>exactly. And you know what, what's interesting is there were actually a few federal government agencies that really paved the way for what you're seeing today. I'll give you some examples. So the Department of Veterans Affairs, they were an early Govcloud user and way back in 2015 they launched vets dot gov on gov cloud, which is an online platform that gave veterans the ability to apply for manage and track their benefits. Those type of initiatives paved the way for what you're seeing today, even as soon as last year with the U. S. Census, right? They brought the decennial count online for the first time in history last year, during 2020 during the pandemic and the Census Bureau was able to use Govcloud to launch and run 2020 census dot gov in the cloud at scale to secure that data. So those are examples of federal agencies that really kind of paved the way and leading to what you're saying is it's kind >>of an awakening. It is and I think one of the things that no one's reporting is kind of a cultural revolution is the talent underneath that way, the younger people like finally like and so it's cooler. It is when you go fast and you can make things change, skeptics turned into naysayers turned into like out of a job or they don't transform so like that whole blocker mentality gets exposed just like shelf where software you don't know what it does until the cloud is not performing, its not good. Right, right. >>Right. Into that point. That's why we spend a lot of time focused on education programs and up skilling the workforce to, because we want to ensure that as our customers mature and as they innovate, we're providing the right training and resources to help them along their journey, >>keith brooks great conversation, great insight and historian to taking us to the early days of Govcloud. Thanks for coming on the cube. Thanks thanks for having me cubes coverage here and address public sector summit. We'll be back with more coverage after this short break. Mhm. Mhm mm.

>>Yeah, >>approximately two years after HP split into two separate companies, antonioni Ranieri was named president and Ceo of Hewlett Packard Enterprise. Under his tenure, the company has streamlined its operations, sharpened his priorities, simplified the product portfolio and strategically aligned its human capital with key growth initiatives. He's made a number of smaller but high leverage acquisitions and return the company to growth while affecting a massive company wide pivot to an as a service model. Welcome back to HPD discovered 2021. This is Dave Volonte for the cube and it's my pleasure to welcome back Antonio Neary to the program. Antonio it's been a while. Great to see you again. >>Hi, Dave. Thanks for having me. >>That's really our pleasure. It was just gonna start off with the big picture. Let's talk about trends. You're a trend spotter. What do you see today? Everybody talks about digital transformation. We had to force marks to digital last year. Now it's really come into focus. But what are the big trends that you're seeing that are affecting your customers transformations? >>Well, Dave, I mean obviously we have been talking about digital transformation for some time uh in our view is no longer a priority is a strategic imperative. And through the last 15 months or so since we have been going through the pandemic, we have seen that accelerated to a level we haven't never seen before. And so what's going on is that we live in a digital economy and through the pandemic now we are more connected than ever. We are much more distributed than ever before and an enormous amount of data is being created and that data has tremendous value. And so what we see in our customer's name, more connectivity, they need a platform from the edge to the cloud to manage all the data and most important they need to move faster and extracting that inside that value from the data and this is where HP is uniquely positioned to deliver against those experiences and way we haven't imagined before. >>Yeah, we're gonna dig into that now, of course you and I have been talking about data and how much data for decades, but I feel like we're gonna look back at 2030 and say, wow, we never, we're not gonna do anything like that. So we're really living in a data centric era as the curves are going exponential, What do you see? How do you see customers handling this? How are they thinking about the opportunities? >>Well, I think, you know, customer realized now that they need to move faster, they need to absolutely be uh much more agile and everything. They do, they need to deploy a cloud experience for all the work clothes and data that they manage and they need to deliver business outcomes to stay ahead of the competition. And so we believe technology now plays even a bigger role and every industry is a technology industry in many ways, every company, right, is a technology company, whether your health care, your manufacturer, your transportation company, you are an education, everybody needs more. It no less. It but at the same time they want the way they want to consumer dave is very different than ever before, right? They want an elastic consumption model and they want to be able to scale up and down based on the needs of their enterprise. But if you recall three years ago, I knew and I had this conversation, I predicted that enterprise of the future will be edge century, cloud enable and data driven. The edge is the next frontier, we said in 2018 and think about it, you know, people now are working remotely and that age now is much more distribute than we imagined before. Cloud is no longer a destination, it is an experience for all your apps and data, but now we are entering what we call the edge of insight, which is all about that data driven approach and this is where all three have to come together in ways that customer did envision before and that's why they need help. >>So I see that, I see the definition of cloud changing, it's no longer a set of remote services, you know, somewhere up there in the cloud, it's expanding on prem cross clouds, you mentioned the edge and so that brings complexity. Every every company is a technology company but they may not be great at technology. So it seems that there are some challenges around there, partly my senses, some of some of what you're trying to do is simplify that for your customers. But what are the challenges that your customers are asking you to solve? >>Well, the first they want a consistent and seamless experience, whatever that application and data lives, so, you know, for them, you know, they want to move away from running it to innovate in our 90 and then obviously they need to move much faster. As I said earlier about this data driven approaches. So they need help because obviously they need to digitize every every aspect of the company, but at the same time they need to do it in a much more cost effective way. So they're asking for subject matter expertise on process engineering. They're asking for the fighting the right mix of hybrid experiences from the edge to cloud and they need to move much faster at scale in deploying technologies like Ai deep learning and machine learning and Hewlett Packard Enterprise uh is extremely well positioned because we have been building an age to club platform where you provide connectivity where you bring computing and storage uh in a softer, define scalable way that you can consume as a service. And so we have great capabilities without HP Point next technology services and advice and run inside. But we have a portfolio with HP Green Lake, our cloud services, the cloud that comes to you that are addressing the most critical data driven warlords. >>Probably about 24 months ago you announced that HP was was going to basically go all in on as a service and get there by by 2022 for all your solutions. I gotta get, I gotta say you've done a good job communicating the Wall Street, I think, I think culturally you've really done a good job of emphasizing that to your, to the workforce. Uh, but but how should we measure the progress that you've made toward that goal? How our customers responding? I I know how the markets responding, you know, three or four year big competitors have now announced. But how should we measure, you know, how you're tracking to that goal? >>Well, I think, you know, the fact that our competitors are entering the other service market is a validation that our vision was right. And that's that's that's good because in the end, you know, it tells us we are on the right track. However, we have to move much faster than than ever before. And that's why we constantly looking for ways to go further and faster. You're right. The court of this is a cultural transformation. Engineering wise, once you state, once you state the North Star, we need to learn our internal processes to think Cloud first and data first versus infrastructure. And we have made great progress. The way we measure ourselves. Dave is very simple is by giving a consistent and transparent report on our pivot in that financial aspect of it, which is what we call the annualized revenue run rate, which we have been disclosed enough for more than a year and a half. And this past quarter grew 30% year over year. So we are on track to deliver a 30-40% Kegel that we committed two years ago And this business going to triple more than uh more than one year from now. So it's gonna be three times as bigger as we enter 2022 and 2023. But in the end, it's all about the experience you deliver and that's why architecturally uh while we made great progress. I know there is way more work to be done, but I'm really excited because what we just announced here this week is just simply remarkable. And you will see more as we become more a cloud operating driven company in the in the next months and years to come. >>I want to ask you kind of a personal question. I mean, COVID-19 is you know, sharpened our sensitivity and empathy to to a lot of different things. Uh and I think uh ceos in your position of a large tech company or any large company, they really can't just give lip service to things like E. S. G. Or or ethical uh digital transformation, which is something that you've talked about in other words, making sure that it's inclusive. Everybody is able to participate in this economy and not get left behind. What does this mean to you personally? >>Well, they remember I'm in a privileged position, right? Leading a company like Hewlett Packard Enterprise that has Hewlett and Packard on the brand is an honor, but it's also a big responsibility. Let's remember what this company stands for and what our purpose is, which is to advance the way people live and work, and in that we have to be able to create a more equitable society and use this technology to solve some of the biggest societal challenge you have been facing The last 18 months has been really hard on a number of dimensions, not just for the business but for their communities. Uh, we saw disruption, we saw hardships on the financial side, we saw acts of violence and hatred. Those are completely unacceptable. But if we work together, we can use these technologies to bring the community together and to make it equitable. And that's one is one of my passion because as we move into this digital economy, I keep saying that connecting people is the first step and if you are not connected, you're not going to participate. Therefore we cannot afford to create a digital economy for only few. And this is why connectivity has to become an essential service, not different than water and electricity. And that's why I have passion and invest my own personal time working with entities like World Economic Forum, educating our government, right, Which is very important because both the public sector and the private sector have to come together. And then from the technology standpoint, we have to architect these things that are commercially accessible and viable to everyone. And so it's uh it's I will say that it's not just my mission. Uh this is top of mind for many of my colleagues ceos that talked all the time and you can see of movement, but at the same time it's good for business because shareholders now want to invest in companies that take care about this, how we make, not just a word more inclusive and equitable, but also how we make a more sustainable and we with our technologies, we can make the world way more sustainable with circular economy, power, efficiency and so forth. So a lot of work to be done dave but I'm encouraged by the progress but we need to do way way more. >>Thank you for that Antonio. I want to ask you about the future and I want to ask you a couple of different angles. So I want to start with the edge. So it seems to me that you're you're building this vision of what I call a layer that abstracts the underlying complexity of the whether it's the public cloud across clouds on prem and and and the edge and it's your job to simplify that. So I as the customer can focus on more strategic initiatives and that's clearly the vision that you guys are setting forth on. My question is is how far do you go on the edge? In other words, it seems to me that Aruba for example, for example, awesome acquisition could go really, really deep into the far edge, maybe other parts of your portfolio, you're kind of more looking at horizontal. How should we think about HP. Es, positioning and participation in that edge opportunity? >>Well, we believe we are becoming one of the merger leaders at the intelligent edge. Right? These edges becoming way more intelligent. We live in a hyper connected world and that will continue to grow at an exponential pace. Right? So today we we may have billions of people and devices pursue. We're entering trillions of things that will be connected to the network. Uh, so you need a platform to be able to do with the scale. So there is a horizontal view of that to create these vertical experiences which are industry driven. Right? So one thing is to deliver a vertical experience in healthcare versus manufacturer transportation. And so we take a really far dave I mean, to the point that we just, you know, put into space 256 miles above the Earth, a supercomputer that tells you we take a really far, but in the end, it's about acting where the data is created and bringing that knowledge and that inside to the people who can make a difference real time as much as possible. And that's why I start by connecting things by bringing a cloud experience to that data, whatever it lives because it's cheaper and it's way more economical and obviously there's aspects of latest in security and compliance. They have to deal with it and then ultimately accelerate that inside into some sort of outcome. And we have many, many use cases were driving today and Aruba is the platform by the way, which we have been using now to extend from the edge all the way to the core into the cloud business. And that's why you HP has unique set of assets to deliver against that opportunity. >>Yes, I want to talk about some of the weapons you have in your arsenal. You know, some people talk about, hey, well we have to win the architectural battle for hybrid cloud. I've heard that statement made, certainly HP is in that battle. It's not a zero sum game, but you're a player there. And so when I, when I look at as a service, great, you're making progress there. But I feel like there's more, there's, there's architecture there, you're making acquisitions, you're building out as moral, which is kind of an interesting data platform. Uh, and so I want to ask you how you see the architecture emerging and where H. P. S sort of value add, I. P. Is your big player and compute you've got actually, you've got chops and memory disaggregate asian, you've done custom silicon over the years. How how should we think about your contribution to the next decade of innovation? >>Well, I think it's gonna come different layers of what we call the stock, right? Obviously, uh, we have been known for an infrastructure company, but the reality is what customers are looking for. Our integrated solutions that are optimized for the given world or application. So they don't have to spend time bringing things together. Right? And and spend weeks sometimes months when they can do it in just in a matter of minutes a day so they can move forward innovative on I. T. And so we were really focused on that connectivity as the first step. And Aruba give us an enormous rich uh through the cloud provisioning of a port or a wifi or a one. As you know, as we move to more cloud native applications. Much of the traffic through the connectivity will go into the internet, not through the traditional fixed networks. And that's what we did acquisitions like Silver Peak because now we can connect all your ages and all your clouds in an autonomous softer. The final way as we go to the other spectrum. Right? We talk about one load optimization and uh for us H. P. S my role is the recipe by which we bring the infrastructure and the software in through that integrated solution that can run autonomously that eventually can consume as a service. And that's why we made the introduction here of HP Green like Lighthouse, which is actually a fully optimised stack. They with the push of a bottom from HP Green Lake cloud platform, we can deploy whatever that that is required and then be able to Federated so we can also address other aspects like disaster recovery and be able to share all the knowledge real time. Swarm learning is another thing that people don't understand. I mean if you think about it. So I'm learning is a distributed Ai learning ecosystem and think about what we did with the D. C. Any in order to find cures for Alzheimer's or dementia. But so I'm learning is going to be the next platform sitting on this age to cloud architecture. So that instead of people worrying about sharing data, what we're doing is actually sharing insights And be able to learn through these millions of data points that they can connect with each other in a secure way. Security is another example, right? So today on an average takes 28 days to find a bridge in your enterprise with project Aurora, which we're going to make available at the end of the year by the end of the year. We actually can address zero day attacks within seconds. And then we're work in other areas like disaster recovery when you get attacked. Think about the ransom ramp somewhere that we have seen in the last few weeks, right? You know, God forbid you have to pay for it. But at the same time, recovery takes days and weeks. Sometimes we are working on technology to do it within 23 seconds. So this is where HP can place across all spectrums of the stack And at the same time of course people expect us to innovate in infrastructure layer. That's why we also partner with companies like Intel were with the push of a bottom. If you need more capacity of the court, you don't have to order anything. She's pushed the bottle, we make more calls available so that that warlord can perform and when you don't need it, shut it off so you don't have to pay for it. And last finalist, you know, I will say for us is all about the consumption availability of our solutions And that's what I said, you know, in 2019 we will make available everything as a service by 2022. You know, we have to say as you know, there is no need to build the church for Easter Sunday when you can rent it for that day. The point here is to grow elastically. And the fact that you don't need to move the data is already a cost savings because cost of aggression data back and forth is enormous and customers also don't want to be locked in. So we have an open approach and we have a true age to cloud architecture and we are focusing on what is most valuable aspect for the customer, which is ultimately the data. >>Thank you for that. One of the other things I wanted to ask you about, again, another weapon in your arsenal is you mentioned supercomputing before. Up in space, we're on the cusp of exa scale and that's the importance of high performance computing. You know, it used to be viewed as just a niche. I've had some great conversations with DR go about this, but that really is the big data platform, if you will. Uh can I wonder if you could talk a little bit about how that fits into the future. Your expertise in HPC, you're obviously a leader in that space. What's the fit with this new vision you're laying out? >>Well, HPC, high performance computing in memory computer are the backbone to be able to manage large data sets at massive scale. Um, and, you know, deployed technologies like deep learning or artificial intelligence for this massive amount of data. If we talked about the explosion of data all around us and uh, you know, and the algorithms and the parameters to be able to extract inside from the day is getting way more complex. And so the ability to co locate data and computed a massive scale is becoming a necessity, whether it's in academia, whether it's in the government obviously to protect your, your most valuable assets or whether it is in the traditional enterprise. But that's why with the acquisition of cray as G. I. And our organic business, we are absolutely the undisputed leader to provide the level of capabilities. And that's why we are going to build five of the top six exa scale systems, which is basically be able to process the billion billion, meaning billion square transactions per second. Can you imagine what you can do with that? Right. What type of problems you can go solve climate problems? Right. Um you know, obviously be able to put someone back into the moon and eventually in mars, you know, the first step to put that supercomputer as an edge computer into the international space station. It's about being able to process data from the images that take from the ice caps of the of the earth to understand climate changes. But eventually, if you want to put somebody in in into the Marks planet, you have to be able to communicate with those astronauts as they go and you know, you can't afford the latency. Right? So this is what the type of problems we are really focused on. But HPC is something that we are absolutely super committed and it's something that honestly, we have the full stack from silicon to software to the system performance that nobody else has in the industry. >>Well, I think it's a real tailwind for you because the industry is moving in that direction and everybody talks about the data and workloads are shifting. We used to be uh I got O. L. T. P. And I got reporting. Now you look at the workloads, there's so much diversity so I'll give you the last word. What what really is the most exciting to you about the future of HPV? >>Well, I'm excited about the innovation will bring it to the market and honestly as the Ceo I care about the culture of the company. For me, the last almost 3.5 years have been truly remarkable. As you said at the beginning, we are transforming every aspect of this company. When I became Ceo I had three priorities for myself. One is our customers and partners. That's why we do these events right to communicate, communicate, communicate. They are our North Star, that's why we exist. Second is our innovation right? We compete and win with the best innovation, solving the most complex problems in a sustainable and equitable way. And third is the culture of the company, which are the core is how we do things in our Team members and employees. You know, I represent my colleagues here, the 60,000 strong team members that had incredible passion for our customers and to make a contribution every single day. And so for me, I'm very optimistic about what we see the recovery of the economy and the possibilities of technology. Uh, but ultimately, you know, we have to work together hand in hand and I believe this company now is absolutely on the right track to not just be relevant, but really to make a difference. And remember That in the end we we have to be a force for good. And let's not forget that while we do all of this, we have some farm with technology. We have to also help some, uh, to address some of the challenges we have seen in the last 18 months and H. P. E. is a whole different company uh, that you knew 3.5 years ago. >>And as you said, knowledge is the right thing to do. It's good. It's good for business Antonio. Neary, thanks so much for coming back to the cube is always a pleasure to see you. >>Thanks for having me. Dave and >>thank you for watching this version of HP discover 2021 on the cube. This is David want to keep it right there for more great coverage. Mm

>>Welcome >>back to HP discover 2021. My name is Dave Volonte and you're watching the cubes virtual coverage of discover 21 we're excited to welcome back our wa Kadoura, She's the vice president and worldwide go to market leader for HP. Es smoking hot. Green Lake Cloud services are welcome back to the cube. Good to see you again. >>Thank you for having me to be with you. >>So talk about how your products and services are supporting customer transformations. I'm interested in the experience that everybody has been dreaming about describe how you're giving your customer that competitive advantage. If you've got any examples, that would be awesome. >>Yeah, you got it. Um, I think as we heard Antonio say the cloud is an experience, not a destination, right? And what we're doing with Green Lake is bringing those cloud capabilities and the cloud experience to our customers. You know, we like to say co locations, data center and edge of course. So this is the cloud on prem. And so rather than forcing customers to only have to go up to cloud to get modern cloud capabilities or the benefits of things like, you know, pay as you go for consumption, et cetera. You know, cloud native capabilities like containers, leveraging, kubernetes. We now bring all of that to Green Lake and to our customers. Edge locations and co locations and data centers. We've been able to dramatically transform many of our customers businesses. Right? And you'll probably see it discover some of those examples come to life. For example, Care Stream, who is, you know, in the electronic medical imaging world, Right? They have all of the X ray equipment that capture x rays and different sort of diagnostics for patients. Um and we worked with them to not only craft a ml solution to better read and diagnose these images, um but also all of the underlying infrastructure with the HP Green Lake Ml ops platform that allows them to instantly leverage the capabilities of machine learning and the infrastructure to go with it. >>And so tell me, so, how is it resonating with customers? What you're out there, talking to customers all the time? What are they >>telling you? You know, I think what our customers appreciate about HP Green Lake is it's not sort of look, it's either all on prem in my data center and I have to fully manage it, build it, implement it, take care of it or it's fully public cloud. I have little control and basically I get whatever the public cloud gives me right. Hp Green leg gives our customers the flexibility and control that they require. Right. And so you can think of many use cases where customers have a need to have the compute storage sort of processing need to happen closer to where their data and apps live. Um and so for that exact reason our customers love the flexibility, right? Cloud one, Dato was public cloud. Cloud to Dato I think is the cloud that comes to our customers at their convenience. And to me, you know what I tell C I O S and C T O S and sort of other lines of business leaders when I meet with them is you shouldn't be forced to have to take your data and apps elsewhere to get the transformation that you need. We want to be able to bring that directly to our customers. >>Of course, a lot of the transformation is around data. We love talking about data on the cube and it's funny, I mean we talked about big data last decade. We don't use that term much anymore. Uh It was kind of overhyped but as as often times as the case may be in the early days it's overhyped but then it's under hyped when it actually starts to kick in. And I feel like we're entering a new age of data. And insights with the ascendancy of machine learning and ai what does this mean from H. P. S. Perspective and what our customers telling you that it means for them. >>Yeah no data. I think we often hear data is the new currency writes the new gold. Um You know we've heard uh Antonio even say things like look data could even become something that maybe over time companies start to put some kind of value on their balance sheet. Behind right the same way that maybe brands represented this value on a balance sheet. Um effectively what's happened with data is a lot of people have a lot of data but there's not been a lot of ability to extract insights from data. Right? And I think this is the new revolution that we're all undergoing is we finally have the modern analytics tools to actually turn the data into insights and what we bring to the table from an HPD perspective is the fact that we have the best infrastructure. We obviously now have the cloud capabilities mixed in with our data fabric or container platform, our machine learning operations platform to then be able to process that data again, integrated with many of the great I SV partners that we have on the data side allow our customers to turn that into real insights for their business. And effectively data is becoming a huge competitive advantage. Right? I think many of us are you know, leveraging some, you know, pretty interesting tools or gadgets these days, right? Like I wear one of those, you know, sleep brings, you can imagine a company like that in the future that's able to collect so much data from the folks that purchase their products. Then being able to give us insights about, you know, where is the best zip code that, you know, people get the most amount of sleep in or you know, which zip codes are the healthiest and you know, the United States or countries, et cetera. Um but data really is becoming um you know, a competitive advantage. And one of the things that we care most about at HP is also using it as a force for good and making sure that there is a sort of ethical ai capability. >>That's a great message and very important one. And and it's interesting you're saying about data and the value how well it's clearly it's clearly being valued in terms of companies market caps. I mean it's it's it's you know, maybe it's not the balance yet, but it's on the income statement in terms of data products and data services that that's happening. So we'll see if Antonio's right in the next, you know, several years. But so let's talk more about the specific data challenges that you're solving for your customers. They talk about silos, they talk about they haven't got as much value out of their data initiatives as they wanted to. What are they telling you? Are there challenges and how are you approaching it? >>Yeah, I think, you know, um data's everywhere right. The ability for customers to store the right amount of data is a huge challenge because obviously there's, you know, a huge cost associated with collecting, keeping cleansing processing, you know, all the way to sort of analyzing your data. There tends to be a ton of data silos, right? So customers are looking for a common data fabric that they can then process their data sources across and then be able to sort of tap into that data from an analytics perspective. So much of the technology again that we're focused on is be able to store the data right, Our data fabric layer with his moral right being able to process that data capture that data and then allow the analytics tools to then harness the power of that data and turn that into real business insights for our customers. Um Every customer that I have spoken to, you know whether their financial services, you know, you can imagine the big financial services. I mean they've got you know, just bazillions of pockets of data everywhere and you know, the real sort of a challenge for them is how do I build a common data platform that allows me to tap into that data in effective ways for my business users? >>You talk a little bit about how you're changing the way you're providing solutions? Maybe maybe you could contrast it with the way HP has done in the past, because I think that's important when you, when you think about, you talk a lot about green lake and as a service, but if the products are still, you know, kind of boxes and Luns and, and gigahertz and ports, then, you know, that's that's a dis continuity. So what's changed from the past and how are you feeding into the way customers are transforming their business and supporting their outcomes? >>That's exactly right. You know, at some point in time, right. If you think maybe 10 or 20 years back, it used to be very much about the infrastructure for hp. What's exciting about what we're doing differently for our customers is look, we have the best infrastructure in the business, right. Hp has been doing this you no longer than anyone has probably almost 60 years now. Um but being able to vertically integrate right, move up in that value change so that our customers can get more complete solutions is the more interesting part for our customers. Our customers love our technology, Yes, the gigahertz and the speeds and feeds all of that do matter because they, you know, make for some very powerful infrastructure. However, what makes it easier is the fact that we are building platform stacks on top of that hardware, um that help abstract away the complexity of that infrastructure and the ability to use it far more seamlessly. Um and then if you think about it, we of course have also one of the most advanced services organizations. So being able to leverage our services capabilities, our platform capabilities on top of that hardware, again, deliver it back to our customers In a consumption model, which they've become two X, which they've come to expect from a cloud model. Um and then surrounded by a very rich ecosystem of partners. And we're talking about system Integrators that now have capabilities on helping our customers run their Green Lake environments. We're talking about I. S. V. S. Right? So software stacks and platforms that fully integrate with the Green Lake platform for completely seamless solutions. Um as well as channel Partners and global distributors. So I think that's where we can truly deliver the ultimate end to end solution. It's not just the hardware, right? But it's being complemented with the right services being complemented with the right platform capabilities, the software integrations to deliver that workload that the customer expects. >>And partners, they gotta they gotta place bets, they gonna put resources time money in a line, their resources with with their their partners and their suppliers like HP. So when they ask you, hey, okay. Hp. Tell me or well, what's your overall strategy? Why is it compelling and why do you give me competitive advantage relative to some of your peers in the industry? >>Yeah, I think what, you know, partners are going to be most excited about is the openness of the platform, right? Being able to allow our partners to leverage Green Lake Central with open API so that they can integrate some of their own technologies into our platform. Uh the ability to allow them to also layer in their own um managed services on top of the platform is key. Um And of course being able to build sort of these win win solutions with the system Integrators, right. The system Integrators have some fantastic capabilities all the way from an application development, all the way down to the infrastructure management and data center delivery centers that they have. And so leveraging HP Green Lake um really helps them have access to core technologies that they need to deliver these solutions. >>I wonder if I could take a little sort of side road here and ask you because so many changes going on HP itself is transforming your customers are transforming the pandemic has accelerated all these transformations. Can you talk a little bit about how you've transformed go to market specifically in the context of of as a service? I mean that had to be quite a change for you guys. >>Yeah, no, go to market transformations in support of sort of moving from traditional go to markets right to call, go to markets or significant. Um They required us to really think through what does delivering as a service solutions mean for our direct sales force? What does it mean for our partners and their transformations and being able to support as a service solutions? Um for HP specifically, it also means um thinking about our customer outcomes, not just our ability to ship them, you know, the requisite hardware and say, look, once it's left our dog, our job is done right. It really takes our obligation all the way to the customer using the technology on a day by day basis, as well as supporting them in making sure that everything from implementation to set up to the ongoing monitoring operations of the technology is working for them in the way that they expect in an as a service way, right? We don't expect them to operate it. We don't expect them to, you know, do anything more than pick up the phone and call us if something doesn't go as planned. >>And how about your sellers and your partners? How did they respond? I mean you just wake up one day is okay guys, here we go, new compensation scheme, new way to sell new way to market that that took some thought in some time. And where are you in that journey? >>That's right. And I always say, you know, if you expect people to wake up one day and be transformed, right? You're kidding yourself. Um So everything from sort of the way that we think about our customers use cases, right? And empowering our sellers to understand the outcomes that our customers expect and demand from us to things like compensation too. You know, the partner rebate program that we leverage through the channel partners in order to give them the right incentives to also allow them to make the right investments to support Green Lake. Um, you know, we've all, you know, HP has a fairly significant field sales and solution team and so not thinking about this only as a single person that represents Green Lake, but looking at our capabilities across the board, right. We have fantastic advisory consultants on the ground with phds and data science. We have folks that understand, you know, high performance computing, so making sure that we're embedding the expertise in all of the right personas that support our customers, not just from a calm perspective, but also from an understanding of the end to end solutions that we're bringing to those markets. >>So what gets you stoked in the morning, you get out of bed and you're like, okay, I'm gonna go attack the world. What are you most excited about for H P E and his future? >>You know, it's, there's so much happening right now in this sort of cloud world. Right? Um to me the most exciting portion is the fact that given that we've now introduced on prem cloud to the world, our ability to ship new services and new capabilities, um, but also do that via a very rich partner ecosystem honestly is what probably has me most excited. This is no longer the age of go at it alone, Right. So not only are engineering and product teams hard at work in the engine room producing, you know, capabilities at sort of lightening fast speeds, but it's also our ability to partner, uh you know, whether it's with platform providers, you know, software providers or, you know, system Integrators and services providers, that ecosystem is starting to come together to deliver highly meaningful solutions to our customers and all in a very open way. Um, the number one thing that I personally care about is that our customers never feel like they are being locked in or that they are sort of being forced to have to give up certain levels of capabilities. We want to give them the best of what's out there and allow them to then have that flexibility in their solution. >>And one of the challenges, of course with virtual events is you don't have the hallway track. You know, somebody can't say, hey, have you seen that IOT zone? It's amazing. They got all these robots going around. But so what, what would you say that people should be focused on the discovery maybe things that you want to call out specific highlights or segments that you think are relevant? >>Yeah, there's gonna be a ton of fantastic stuff I think, um you know, really looking for that edge to cloud strategy, um that we're gonna be spending a lot of time talking about um looking at some of our vertical workload solutions, right. We're gonna be talking about quite a few from electronic health care records to payment solutions. Um and many more I think depending on what folks are interested in, there's gonna be something for everyone. Um Project Aurora, which now starts to announce our new security capabilities. Um, you know, the zero trust capabilities that we're delivering um is probably interesting to a lot of our customers, so lots of exciting things coming and I'm excited for our customers to check this out. >>No doubt that's a hot topic. Especially given what's been happening the news these past several months. All right, well, thanks so much for coming back in. The cube is great to see you hopefully face to face next time. >>I sure hope so. Thanks so much for having me. >>It's our pleasure. And thank you for watching and thank you for being with us and our ongoing coverage of HPD discovered 2021. This is Dave Volonte. You're watching the cube, The leader and digital tech coverage. >>Yeah.

>>Welcome >>back to HP discover 2021. My name is Dave Volonte and you're watching the cubes virtual coverage of discover 21 we're excited to welcome back our wa Kadoura, She's the vice president and worldwide go to market leader for HP. Es smoking hot. Green Lake Cloud services are welcome back to the cube. Good to see you again. >>Thank you for having me to be with you. >>So talk about how your products and services are supporting customer transformations. I'm interested in the experience that everybody has been dreaming about describe how you're giving your customer that competitive advantage. If you've got any examples, that would be awesome. >>Yeah, you got it. Um, I think as we heard Antonio say the cloud is an experience, not a destination, right? And what we're doing with Green Lake is bringing those cloud capabilities and the cloud experience to our customers. You know, we like to say co locations, data center and edge of course. So this is the cloud on prem. And so rather than forcing customers to only have to go up to cloud to get modern cloud capabilities or the benefits of things like, you know, pay as you go for consumption, et cetera. You know, cloud native capabilities like containers, leveraging, kubernetes. We now bring all of that to Green Lake and to our customers. Edge locations and co locations and data centers. We've been able to dramatically transform many of our customers businesses. Right? And you'll probably see it discover some of those examples come to life. For example, Care Stream, who is, you know, in the electronic medical imaging world, Right? They have all of the X ray equipment that capture x rays and different sort of diagnostics for patients. Um and we worked with them to not only craft a ml solution to better read and diagnose these images, um but also all of the underlying infrastructure with the HP Green Lake Ml ops platform that allows them to instantly leverage the capabilities of machine learning and the infrastructure to go with it. >>And so tell me, so, how is it resonating with customers? What you're out there, talking to customers all the time? What are they >>telling you? You know, I think what our customers appreciate about HP Green Lake is it's not sort of look, it's either all on prem in my data center and I have to fully manage it, build it, implement it, take care of it or it's fully public cloud. I have little control and basically I get whatever the public cloud gives me right. Hp Green leg gives our customers the flexibility and control that they require. Right. And so you can think of many use cases where customers have a need to have the compute storage sort of processing need to happen closer to where their data and apps live. Um and so for that exact reason our customers love the flexibility, right? Cloud one, Dato was public cloud. Cloud to Dato I think is the cloud that comes to our customers at their convenience. And to me, you know what I tell C I O S and C T O S and sort of other lines of business leaders when I meet with them is you shouldn't be forced to have to take your data and apps elsewhere to get the transformation that you need. We want to be able to bring that directly to our customers. >>Of course, a lot of the transformation is around data. We love talking about data on the cube and it's funny, I mean we talked about big data last decade. We don't use that term much anymore. Uh It was kind of overhyped but as as often times as the case may be in the early days it's overhyped but then it's under hyped when it actually starts to kick in. And I feel like we're entering a new age of data. And insights with the ascendancy of machine learning and ai what does this mean from H. P. S. Perspective and what our customers telling you that it means for them. >>Yeah no data. I think we often hear data is the new currency writes the new gold. Um You know we've heard uh Antonio even say things like look data could even become something that maybe over time companies start to put some kind of value on their balance sheet. Behind right the same way that maybe brands represented this value on a balance sheet. Um effectively what's happened with data is a lot of people have a lot of data but there's not been a lot of ability to extract insights from data. Right? And I think this is the new revolution that we're all undergoing is we finally have the modern analytics tools to actually turn the data into insights and what we bring to the table from an HPD perspective is the fact that we have the best infrastructure. We obviously now have the cloud capabilities mixed in with our data fabric or container platform, our machine learning operations platform to then be able to process that data again, integrated with many of the great I SV partners that we have on the data side allow our customers to turn that into real insights for their business. And effectively data is becoming a huge competitive advantage. Right? I think many of us are you know, leveraging some, you know, pretty interesting tools or gadgets these days, right? Like I wear one of those, you know, sleep brings, you can imagine a company like that in the future that's able to collect so much data from the folks that purchase their products. Then being able to give us insights about, you know, where is the best zip code that, you know, people get the most amount of sleep in or you know, which zip codes are the healthiest and you know, the United States or countries, et cetera. Um but data really is becoming um you know, a competitive advantage. And one of the things that we care most about at HP is also using it as a force for good and making sure that there is a sort of ethical ai capability. >>That's a great message and very important one. And and it's interesting you're saying about data and the value how well it's clearly it's clearly being valued in terms of companies market caps. I mean it's it's it's you know, maybe it's not the balance yet, but it's on the income statement in terms of data products and data services that that's happening. So we'll see if Antonio's right in the next, you know, several years. But so let's talk more about the specific data challenges that you're solving for your customers. They talk about silos, they talk about they haven't got as much value out of their data initiatives as they wanted to. What are they telling you? Are there challenges and how are you approaching it? >>Yeah, I think, you know, um data's everywhere right. The ability for customers to store the right amount of data is a huge challenge because obviously there's, you know, a huge cost associated with collecting, keeping cleansing processing, you know, all the way to sort of analyzing your data. There tends to be a ton of data silos, right? So customers are looking for a common data fabric that they can then process their data sources across and then be able to sort of tap into that data from an analytics perspective. So much of the technology again that we're focused on is be able to store the data right, Our data fabric layer with his moral right being able to process that data capture that data and then allow the analytics tools to then harness the power of that data and turn that into real business insights for our customers. Um Every customer that I have spoken to, you know whether their financial services, you know, you can imagine the big financial services. I mean they've got you know, just bazillions of pockets of data everywhere and you know, the real sort of a challenge for them is how do I build a common data platform that allows me to tap into that data in effective ways for my business users? >>You talk a little bit about how you're changing the way you're providing solutions? Maybe maybe you could contrast it with the way HP has done in the past, because I think that's important when you, when you think about, you talk a lot about green lake and as a service, but if the products are still, you know, kind of boxes and Luns and, and gigahertz and ports, then, you know, that's that's a dis continuity. So what's changed from the past and how are you feeding into the way customers are transforming their business and supporting their outcomes? >>That's exactly right. You know, at some point in time, right. If you think maybe 10 or 20 years back, it used to be very much about the infrastructure for hp. What's exciting about what we're doing differently for our customers is look, we have the best infrastructure in the business, right. Hp has been doing this you no longer than anyone has probably almost 60 years now. Um but being able to vertically integrate right, move up in that value change so that our customers can get more complete solutions is the more interesting part for our customers. Our customers love our technology, Yes, the gigahertz and the speeds and feeds all of that do matter because they, you know, make for some very powerful infrastructure. However, what makes it easier is the fact that we are building platform stacks on top of that hardware, um that help abstract away the complexity of that infrastructure and the ability to use it far more seamlessly. Um and then if you think about it, we of course have also one of the most advanced services organizations. So being able to leverage our services capabilities, our platform capabilities on top of that hardware, again, deliver it back to our customers In a consumption model, which they've become two X, which they've come to expect from a cloud model. Um and then surrounded by a very rich ecosystem of partners. And we're talking about system Integrators that now have capabilities on helping our customers run their Green Lake environments. We're talking about I. S. V. S. Right? So software stacks and platforms that fully integrate with the Green Lake platform for completely seamless solutions. Um as well as channel Partners and global distributors. So I think that's where we can truly deliver the ultimate end to end solution. It's not just the hardware, right? But it's being complemented with the right services being complemented with the right platform capabilities, the software integrations to deliver that workload that the customer expects. >>And partners, they gotta they gotta place bets, they gonna put resources time money in a line, their resources with with their their partners and their suppliers like HP. So when they ask you, hey, okay. Hp. Tell me or well, what's your overall strategy? Why is it compelling and why do you give me competitive advantage relative to some of your peers in the industry? >>Yeah, I think what, you know, partners are going to be most excited about is the openness of the platform, right? Being able to allow our partners to leverage Green Lake Central with open API so that they can integrate some of their own technologies into our platform. Uh the ability to allow them to also layer in their own um managed services on top of the platform is key. Um And of course being able to build sort of these win win solutions with the system Integrators, right. The system Integrators have some fantastic capabilities all the way from an application development, all the way down to the infrastructure management and data center delivery centers that they have. And so leveraging HP Green Lake um really helps them have access to core technologies that they need to deliver these solutions. >>I wonder if I could take a little sort of side road here and ask you because so many changes going on HP itself is transforming your customers are transforming the pandemic has accelerated all these transformations. Can you talk a little bit about how you've transformed go to market specifically in the context of of as a service? I mean that had to be quite a change for you guys. >>Yeah, no, go to market transformations in support of sort of moving from traditional go to markets right to call, go to markets or significant. Um They required us to really think through what does delivering as a service solutions mean for our direct sales force? What does it mean for our partners and their transformations and being able to support as a service solutions? Um for HP specifically, it also means um thinking about our customer outcomes, not just our ability to ship them, you know, the requisite hardware and say, look, once it's left our dog, our job is done right. It really takes our obligation all the way to the customer using the technology on a day by day basis, as well as supporting them in making sure that everything from implementation to set up to the ongoing monitoring operations of the technology is working for them in the way that they expect in an as a service way, right? We don't expect them to operate it. We don't expect them to, you know, do anything more than pick up the phone and call us if something doesn't go as planned. >>And how about your sellers and your partners? How did they respond? I mean you just wake up one day is okay guys, here we go, new compensation scheme, new way to sell new way to market that that took some thought in some time. And where are you in that journey? >>That's right. And I always say, you know, if you expect people to wake up one day and be transformed, right? You're kidding yourself. Um So everything from sort of the way that we think about our customers use cases, right? And empowering our sellers to understand the outcomes that our customers expect and demand from us to things like compensation too. You know, the partner rebate program that we leverage through the channel partners in order to give them the right incentives to also allow them to make the right investments to support Green Lake. Um, you know, we've all, you know, HP has a fairly significant field sales and solution team and so not thinking about this only as a single person that represents Green Lake, but looking at our capabilities across the board, right. We have fantastic advisory consultants on the ground with phds and data science. We have folks that understand, you know, high performance computing, so making sure that we're embedding the expertise in all of the right personas that support our customers, not just from a calm perspective, but also from an understanding of the end to end solutions that we're bringing to those markets. >>So what gets you stoked in the morning, you get out of bed and you're like, okay, I'm gonna go attack the world. What are you most excited about for H P E and his future? >>You know, it's, there's so much happening right now in this sort of cloud world. Right? Um to me the most exciting portion is the fact that given that we've now introduced on prem cloud to the world, our ability to ship new services and new capabilities, um, but also do that via a very rich partner ecosystem honestly is what probably has me most excited. This is no longer the age of go at it alone, Right. So not only are engineering and product teams hard at work in the engine room producing, you know, capabilities at sort of lightening fast speeds, but it's also our ability to partner, uh you know, whether it's with platform providers, you know, software providers or, you know, system Integrators and services providers, that ecosystem is starting to come together to deliver highly meaningful solutions to our customers and all in a very open way. Um, the number one thing that I personally care about is that our customers never feel like they are being locked in or that they are sort of being forced to have to give up certain levels of capabilities. We want to give them the best of what's out there and allow them to then have that flexibility in their solution. >>And one of the challenges, of course with virtual events is you don't have the hallway track. You know, somebody can't say, hey, have you seen that IOT zone? It's amazing. They got all these robots going around. But so what, what would you say that people should be focused on the discovery maybe things that you want to call out specific highlights or segments that you think are relevant? >>Yeah, there's gonna be a ton of fantastic stuff I think, um you know, really looking for that edge to cloud strategy, um that we're gonna be spending a lot of time talking about um looking at some of our vertical workload solutions, right. We're gonna be talking about quite a few from electronic health care records to payment solutions. Um and many more I think depending on what folks are interested in, there's gonna be something for everyone. Um Project Aurora, which now starts to announce our new security capabilities. Um, you know, the zero trust capabilities that we're delivering um is probably interesting to a lot of our customers, so lots of exciting things coming and I'm excited for our customers to check this out. >>No doubt that's a hot topic. Especially given what's been happening the news these past several months. All right, well, thanks so much for coming back in. The cube is great to see you hopefully face to face next time. >>I sure hope so. Thanks so much for having me. >>It's our pleasure. And thank you for watching and thank you for being with us and our ongoing coverage of HPD discovered 2021. This is Dave Volonte. You're watching the cube, The leader and digital tech coverage. >>Yeah.

>>Welcome back to HP discover 2021 My name is Dave Volonte and you're watching the cubes, virtual coverage of H. P. S. Big customer event. Of course, the virtual edition, we're gonna dig into transformations the role of technology in the role of senior technology leadership. Look, let's face it, H P. E. Has gone through a pretty dramatic transformation itself in the past few years. So it makes a great example in case study and with me is rashmi kumari who is the senior vice president and C. I. O. At HP rashmi welcome come on inside the cube. >>Dave Nice to be here. >>Well, it's been almost a year since Covid changed the world as we know it. How would you say the role of the CEO specifically and generally it has changed. I mean you got digital Zero Trust has gone from buzzword to >>mandate >>digital. Everybody was complacent about digital in many ways and now it's really accelerated remote work hybrid. How do you see it? >>Absolutely. As I said in the last discover that Covid has been the biggest reason to accelerate digital transformation in the company's I. C. C. I O. S role has changed tremendously in the last 15 months. It's no more just keep the operations running that's become a table stick. Our roles have become not only to create digital customer experience engaged with our customers in different ways, but also to transform the company operations from inside out to be able to give that digital experience from beginning to end off the customer engagement going forward. We have also become responsible for switching our strategies around the companies as the Covid. Covid hit in different parts of the world at different times and how companies structured their operations to go from one region to another. A global company like H. B had to look into its supply chain differently. Had to look into strategies to mitigate the risk that was created because of the supply chain disruptions as well as you go to taking care of our employees. How do you create this digital collaboration experience where teams can still come together and make the work happen for our end customers? How do we think about future employee engagement when people are not coming into these big buildings and offices and working together, But how to create the same level of collaboration coordination as well as delivery or faster uh goods and services which is enabled by technology going forward. So see I. O. And I. T. S. Role has gone from giving a different level of customer experience to a different level of employee experience as well as enabling day to day operations of the company's. Ceos have realized that digital is the way to go forward. It does not matter what industry you are in and now see a as have their seat at the table to define what the future of every company now, which is a technology company respective you are in oil and gas or mining or a technical product or a card or a mobility company. End of the day you have to act and behave like a technology company. >>So I want to ask you about that because you've you've been a Ceo and uh you know, leading technology provider now for the last three years and you've had previous roles and where you know non technical technology, you know, selling to I. T. Companies and as you point out those worlds are coming together, everybody is a technology company today. How do you think that changes the role of the C. I. O. Because it would always seem to me that there was a difference between A C. I. O. And a tech company. You know what I mean by that? And the C. I. O. It's sort of every other company is those two worlds converging. >>Absolutely. And it's interesting you pointed out that I have worked in many different industries from healthcare and pharma to entertainment to utilities. Um And now at a technology company end of the day um The issues that I. T. Deals with are pretty similar across the organization. What is different here is now my customers are people like me in other industries and I have a little bit of an advantage because just having the experience across various ecosystem. Even at H. B. Look I was fortunate um at H. B. Because of Antonio's leadership, we have topped out mandate to transform how we did business. And I talked about my next gen IT program in last year's cube interview. But at the same time while we were changing our customer partners experience from ordering to order processing to supply chain to finance. Uh We decided this pivot of becoming as a service company. And if you think about that pivot it's pretty common if it was a technology company or non technology company at HP. We were very used to selling a product and coming back three years later at the time of refresh of infrastructure or hardware. That's no more true for us now we are becoming as a service or a subscription company and I. T. Played a major role to enable that quote to cash experience. Which is very different than the traditional experience around how we stay connected with our customer, how we proactively understand their behavior. I always talk about this term. Um Digital exhaust which results into data which can result into better insight and you can not only Upsell cross l because now you have more data about your product usage, but first and the foremost give what your customer wants in a much better way because you can proactively understand their needs and wants because you are providing a digital product versus a physical product. So this is the change that most of the companies are now going through. If you look at Domino's transition, there are pills a sellers but they did better because they had better digital experience. If you look at Chipotle, these are food service companies I. K which is a furniture manufacturer across the board. We have helped our customers and industries to understand how to become a more digital provider. And and remember when uh hp says edge to cloud platform as a service edges the product, the customers who we deal with and how do we get that? Help them get their data to understand how the product is behaving and then get the information to cloud for further analysis. Um and understanding from the data that comes out of the products that gets up, >>I think you've been HP now think around three years and I've been watching of course for decades. Hp. Hp then HP is I feel like it's entering now the sort of third phase of its transformation, your phase one was okay, we gotta figure out how to deal or or operate as a separate companies. Okay. That took some time and then it was okay. Now how do we align our resources and you know, what are the waves that we're gonna ride? And how do we how do we take our human capital, our investments and what bets do we place and and all in on as a service. And now it's like okay how do we deliver on all those promises? So pretty massive transformations. You talked about edge to cloud as a service so you've got this huge pivot in your in your business. What's the technology strategy to support that transformation? >>Yeah that's a that's a great question. So as I mentioned first your second phase which was becoming a stand alone company was the next N. I. T. Program very broad and um S. Four and 60 related ecosystem application. We're even in the traditional business there was a realization that we were 100 20 billion company. We are 30 billion company. We need different types of technologies as well as more integrated across our product line across the globe. And um we I'm very happy to report that we are the last leg of next in I. T. Transformation where we have brought in new customer experience through low touch or not touch order pressing. A very strong as four capabilities. Where we are now able to run all global orders across all our hardware and services business together. And I'm happy to report that we have been able to successfully run through the transformation which a typical company of our size would take five or six years to do in around close to three years. But at the same time while we were building this foundation and the capabilities to be able to do other management, supply chain and data and analytics platforms. We also made the pivot to go to as a service now for as a service and subscription selling. It needs a very different quote to Kazakh cash experience for our customers and that's where we had to bring in um platforms like brim to do um subscription building, convergent charging and a whole different way to address. But we were lucky to have this transformation completed on which we could bolt on this new capability and we had the data and another X platform built which now these as a service products can also use to drive better insight into our customer behavior um as well as how they're using our product a real time for our operations teams. >>Well they say follow the money in the cube. We love to say follow the day to day is obviously a crucial component of competitive advantage business value. So you talk a little bit more about the role of data. I'm interested I'm interested in where I. T. Fits uh you know a lot of companies that have a Chief data officer or Ceo sometimes they're separate. Sometimes they they work you know for each other or Cdo works for C. I. O. How do you guys approach the whole data conversation? >>Yeah that's a that's a great question and has been top of the mind of a lot of C E O C I O S. Chief digital officers in many different companies. The way we have set it up here is do we do have a chief data officer and we do have a head of uh technology and platform and data within I. T. Look. The way I see is that I call the term data torture if we have multiple data lakes, if we have multiple data locations and the data is not coming together at one place at the first time that it comes out of the source system, we end up with data swamps and it's very difficult to drive insights. It's very difficult to have a single version of truth. So HP had two pronged approach. First one was as part of this next gen i. T. Transformation we embarked upon the journey first of all to define our customers and products in a very uniform way across the globe. It's called entity Master Data and Product Master Data Program. These were very very difficult program. We are now happy to report that we can understand the customer from code stage to servicing stage beginning to end across all our system. It's been a tough journey but it was a effort well spent at the same time while we were building this message capability, we also invest the time in our analytics platform because we are generating so much data now globally as one footprint. How do we link our data link to R. S. A. P. And Salesforce and all these systems where our customer data flows through and create analytics and insight from it from our customers or our operations team. At the same time, we also created a chief data officer role where the responsibility is really to drive business from understanding what decision making an analytics they need around product, around customer, around their usage, around their experience to be able to drive better alignment with our customers and products going forward. So this creates efficiencies in the organization. If you have a leader who is taking care of your platforms and data building single source of truth and you have a leader who is propagating this mature notion of handling data as enterprise data and driving that focus on understanding the metrics and the insight that the businesses need to drive better customer alignment. That's when we gain those efficiencies and behind the scenes, the chief data officer and the data leader within my organization worked very, very closely to understand each other needs sometimes out of the possible where do we need the data processing? Is it at the edge? Is it in the cloud? What's the best way to drive the technology and the platform forward? And they kind of rely on each other's knowledge and intelligence to give us give us superior results. And I have done data analytics in many different companies. This model works where you have focused on insight and analytics without because data without insight is of no value, but at the same time you need clean data. You need efficient, fast platforms to process that insight at the functional nonfunctional requirements that are business partners have and that's how we have established in here and we have seen many successes recently. As of now, >>I want to ask you a kind of a harder maybe it's not harder question. It's a weird question around single version of the truth because it's clearly a challenge for organizations and there's many applications workloads that require that single version of the truth. The operational systems, the transaction systems, the HR the salesforce. Clearly you have to have a single version of the truth. I feel like however we're on the cusp of a new era where business lines see an opportunity for whatever their own truth to work with a partner to create some kind of new data product. And it's early days in that. But I want to and maybe not the right question for HP. But I wonder if you see it with in your ecosystems where where it's it's yes, single version of truth is sort of one class of data and analytics gotta have that nail down data quality, everything else. But then there's this sort of artistic version of the data where business people need more freedom. They need more latitude to create. Are you seeing that? And maybe you can help me put that into context. >>Uh, that's a great question. David. I'm glad you asked it. So I think tom Davenport who is known in the data space talks about the offensive and the defensive use cases of leveraging data. I think the piece that you talked about where it's clean, it's pristine, it's quality. It's all that most of those offer the offensive use cases where you are improving company's operations incrementally because you have very clean that I have very good understanding of how my territories are doing, how my customers are doing how my products are doing. How am I meeting my sls or how my financials are looking? There's no room for failure in that area. The other area is though, which works on the same set of data. It's not a different set of data, but the need is more around finding needles in the haystack to come up with new needs, new ones and customers or new business models that we go with. The way we have done it is we do take this data take out what's not allowed for everybody to be seen and then what we call is a private space. But that's this entire data available to our business leader, not real time because the need is not as real time because they're doing more what we call this predictive analytics to be able to leverage the same data set and run their analytics. And we work very closely with business in its we educate them. We tell them how to leverage this data set and use it and gather their feedback to understand what they need in that space to continue to run with their with their analytics. I think as we talk about hindsight insight and foresight hindsight and insight happens more from this clean data lakes where you have authenticity, you have quality and then most of the foresight happens in a different space where the users have more leverage to use data in many different ways to drive analytics and insights which is not readily available. >>Thank you for that. That's interesting discussion. You know digital transformation. It's a journey and it's going to take many years. A lot of ways, not a lot of ways 2020 was a forced March to digital. If you weren't a digital business, you were out of business and you really didn't have much time to plan. So now organizations are stepping back saying, okay let's really lean into our strategy the journey and along the way there's gonna be blind spots, there's bumps in the road when you look out what are the potential disruptions that you see maybe in terms of how companies are currently approaching their digital transformations? That's a great question. >>Dave and I'm going to take a little bit more longer term view on this topic. Right in what's top of my mind um recently is the whole topic of E. S. G. Environmental, social and governance. Most of the companies have governance in place, right? Because they are either public companies or they're under some kind of uh scrutiny from different regulatory bodies or what not. Even if you're a startup, you need to do things with our customers and what not. It has been there for companies. It continues to be there. We the public companies are very good at making sure that we have the right compliance, right privacy, right governance in in in place. Now we'll talk about cyber security. I think that creates a whole new challenge in that governance space. However, we have the set up within our companies to be able to handle that challenge. Now, when we go to social, what happened last year was really important. And now as each and every company, we need to think about what are we doing from our perspective to play our part in that. And not only the bigger companies leaders at our level, I would say that Between last March and this year, I have hired more than 400 people during pandemic, which was all virtual, but me and my team have made sure that we are doing the right thing to drive inclusion and diversity, which is also very big objective for h P E. And Antonio himself has been very active in various round tables in us at the world Economic forum level and I think it's really important for companies to create that opportunity, remove that disparity that's there for the underserved communities. If we want to continue to be successful in this world too, create innovative products and services, we need to sell it to the broader cross section of populations and to be able to do that, we need to bring them in our fold and enable them to create that um, equal consumption capabilities across different sets of people. Hp has taken many initiatives and so are many companies. I feel like uh, The momentum that companies have now created around the topic of equality is very important. I'm also very excited to see that a lot of startups are now coming up to serve that 99% versus just the shiny ones, as you know, in the bay area to create better delivery methods of food or products. Right. The third piece, which is environmental, is extremely important as well as we have seen recently in many companies and where even the dollar or the economic value is flowing are around the companies which are serious about environmental HP recently published its living Progress report. We have been in the forefront of innovation to reduce carbon emissions, we help our customers, um, through those processes. Again, if we do, if our planet is on fire, none of us will exist, right. So we all have to do that every little part to be able to do better. And I'm happy to report, I myself as a person, solar panels, battery electric cars, whatever I can do, but I think something more needs to happen right where as an individual I need to pitch in, but maybe utilities will be so green in the future that I don't need to put panels on my roof, which again creates a different kind of uh waste going forward. So when you ask me about disruptions, I personally feel that successful company like ours have to have E. S. G. Top of their mind and think of products and services from that perspective, which creates equal opportunity for people, which creates better environment sustainability going forward. And, you know, our customers are investors are very interested in seeing what we are doing to be able to serve that cause uh for for bigger cross section of companies, and I'm most of the time very happy to share with my C I. O cohort around how are H. P E F s capabilities creates or feeds into the circular economy, how much e waste we have recycled or kept it off of landfills are green capabilities, How it reduces the evils going forward as well as our sustainability initiatives, which can help other, see IOS to be more um carbon neutral going forward as well. >>You know, that's a great answer, rashmi, thank you for that because I gotta tell you hear a lot of mumbo jumbo about E S G. But that was a very substantive, thoughtful response that I think, I think tech companies in particular are have to lead in our leading in this area. So I really appreciate that sentiment. I want to end with a very important topic which is cyber. It's obviously, you know, escalated in, in the news the last several months. It's always in the news, but You know, 10 or 15 years ago there was this mentality of failure equals fire. Now we realize, hey, they're gonna get in, it's how you handle it. Cyber has become a board level topic, you know? Years ago there was a lot of discussion, oh, you can't have the sec ops team working for the C. I. O. Because that's like the Fox watching the Henhouse, that's changed. Uh it's been a real awakening, a kind of a rude awakening. So the world is now more virtual, you've gotta secure physical uh assets. I mean, any knucklehead can now become a ransomware attack, er they can, they can, they can buy ransomware as a services in the dark, dark web. So that's something we've never seen before. You're seeing supply chains get hacked and self forming malware. I mean, it's a really scary time. So you've got these intellectual assets, it's a top priority for organizations. Are you seeing a convergence of the sea? So roll the C. I. O. Roll the line of business roles relative to sort of prior years in terms of driving security throughout organizations. >>This is a great question. And this was a big discussion at my public board meeting a couple of days ago. It's as as I talk about many topics, if you think digital, if you think data, if you think is you, it's no more one organizations, business, it's now everybody's responsibility. I saw a Wall Street Journal article a couple of days ago where Somebody has compared cyber to 9-11-type scenario that if it happens for a company, that's the level of impact you feel on your on your operations. So, you know, all models are going to change where C so reports to see IO at H P E. We are also into products or security and that's why I see. So is a peer of mine who I worked with very closely who also worked with product teams where we are saving our customers from a lot of pain in this space going forward. And H. B. E. Itself is investing enormous amount of efforts in time in coming out of products which are which are secured and are not vulnerable to these types of attacks. The way I see it is see So role has become extremely critical in every company and the big part of that role is to make people understand that cybersecurity is also everybody's responsibility. That's why in I. T. V. Propagate def sec ups. Um As we talk about it, we are very very careful about picking the right products and services. This is one area where companies cannot shy away from investing. You have to continuously looking at cyber security architecture, you have to continuously look at and understand where the gaps are and how do we switch our product or service that we use from the providers to make sure our companies stay secure The training, not only for individual employees around anti phishing or what does cybersecurity mean, but also to the executive committee and to the board around what cybersecurity means, what zero trust means, but at the same time doing drive ins, we did it for business continuity and disaster recovery. Before now at this time we do it for a ransomware attack and stay prepared as you mentioned. And we all say in tech community, it's always if not when no company can them their chest and say, oh, we are fully secured because something can happen going forward. But what is the readiness for something that can happen? It has to be handled at the same risk level as a pandemic or earthquake or a natural disaster. And assume that it's going to happen and how as a company we will behave when when something like this happen. So I'm here's believer in the framework of uh protect, detect, govern and respond um as these things happen. So we need to have exercises within the company to ensure that everybody is aware of the part that they play day today but at the same time when some event happen and making sure we do very periodic reviews of I. T. And cyber practices across the company. There is no more differentiation between I. T. And O. T. That was 10 years ago. I remember working with different industries where OT was totally out of reach of I. T. And guess what happened? Wanna cry and Petra and XP machines were still running your supply chains and they were not protected. So if it's a technology it needs to be protected. That's the mindset. People need to go with invest in education, training, um awareness of your employees, your management committee, your board and do frequent exercises to understand how to respond when something like this happen. See it's a big responsibility to protect our customer data, our customers operations and we all need to be responsible and accountable to be able to provide all our products and services to our customers when something unforeseen like this happens, >>Russian, very generous with your time. Thank you so much for coming back in the CUBA is great to have you again. >>Thank you. Dave was really nice chatting with you. Thanks >>for being with us for our ongoing coverage of HP discover 21 This is Dave Volonte, you're watching the virtual cube, the leader in digital tech coverage. Be right back. >>Mm hmm, mm.