>>from around the globe. It's the Cube presenting Cuban cloud brought to you by silicon angle. Welcome to the cubes event. Virtual event. Cuban Cloud. I'm John for your host. We're here talking to all the thought leaders getting all the stories around Cloud What's going on this year and next today, Tomorrow and the future. We gotta featured startup here. Jonah Clipper, who is the CEO and founder of Stack Hawks. Developing security software for developers to have them put security baked in from the beginning. Johnny, thanks for coming on and being featured. Start up here is part of our Cuban cloud. Thanks for joining. >>Thanks so much for having me, John. >>So one of our themes this year is obviously Cloud natives gone mainstream. The pandemic has shown that. You know, a lot of things have to be modern. Modern applications, the emerald all they talked about modern applications. Infrastructure is code. Reinvent, um is here. They're talking about the next gen enterprise. Their public cloud. Now you've got hybrid cloud. Now you've got multi cloud. But for developers, you just wanna be building security baked in and they don't care where the infrastructure is. So this is the big trend. Like to get your thoughts on that. But before we jump in, tell us about Stack Hawk What you guys do your founded in 2019. Tell us about your company and what Your mission is >>Awesome. Yeah, our mission is to put application security in the hands of software developers so that they can find and fix upset books before they deployed a production. And we do that through a dynamic application scanning capability. Uh, that's deployable via docker, so engineers can run it locally. They can run it in C I C. D. On every single PR or merge and find bugs in the process of delivering software rather than after it's been production. >>So everyone's talking about shift left, shift left for >>security. What does >>that mean? Uh, these days. And what if some of the hurdles that people are struggling with because all I hear is shift left shift left from, like I mean, what does What does that actually mean? Now, Can you take us through your >>view? Yes, and we use the phrase a lot, and I and I know it can feel a little confusing or overused. Probably. Um, When I think of shift left, I think of that Mobius that we all look at all of the time, Um, and how we deliver and, like, plan, write code, deliver software and then manage it. Monitor it right like that entire Dev ops workflow. And today, when we think about where security lives, it either is a blocker to deploying production. Or most commonly, it lives long after code has been deployed to production. And there's a security team constantly playing catch up, trying to ensure that the development team whose job is to deliver value to their customers quickly, right, deploy as fast as we can, as many great customer facing features, um there, then, looking at it months after software has been deployed and then hurrying and trying to assess where the bugs are. And, um, trying to get that information back to software developers so that they can fix those issues. Shifting left to me means software engineers are finding those bugs as their writing code or in the CIA CD pipeline long before code has been deployed to production. >>And so you guys attack that problem right there so they don't have to ship the code and then come back and fix it again. Or where we forgot what the hell is going on. That point in time some Q 18 gets it. Is that the kind of problem that that's out there? Is that the main pain point? >>Yeah, absolutely. I mean a lot of the way software, specifically software like ours and dynamic applications scanning works is a security team or a pen tester. Maybe, is assessing applications for security vulnerability these, um, veteran prod that's normally where these tools are run and they throw them back over the wall, you know, interrupting sprints and interrupting the developer workflow. So there's a ton of context switching, which is super expensive, and it's very disruptive to the business to not know about those issues before they're in prod. And they're also higher risk issues because they're in fraud s. So you have to be able to see a >>wrong flywheel. Basically, it's like you have a penetration test is okay. I want to do ship this app. Pen test comes back, okay? We gotta fix the bug, interrupts the cycle. They're not coding there in fire drill mode. And then it's a chaotic death spiral at that point, >>right? Or nothing gets done. God, how did >>you What was the vision? How did you get here? What? How did you start? The company's woke up one morning. Seven started a security company. And how did what was the journey? What got you here? >>Sure. Thanks. I've been building software for software engineers since 2010. So the first startup I worked for was very much about making it easy for software engineers to deploy and manage applications super efficiently on any cloud provider. And we did programmatic updates to those applications and could even move them from cloud to cloud. And so that was sort of cutting my teeth and technology and really understanding the developer experience. Then I was a VP of product at a company called Victor Ops. We were purchased by spunk in 2018. But that product was really about empowering software engineers to manage their own code in production. So instead of having a network operations center right who sat in front of screens and was waiting for something to go wrong and would then just end up dialing there, you know, just this middle man trying to dial to find the person who wrote the software so that they can fix it. We made that way more efficient and could just route issues to software engineers. And so that was a very dev ops focused company in terms of, um, improving meantime to know and meantime to resolve by putting up time in the hands of software engineers where it didn't used to live there before it lived in a more traditional operations type of role. But we deploy software way too quickly and way too frequently to production to assume that another human can just sit there and know how to fix it, because the problems aren't repeatable, right? So So I've been living in the space for a long time, and I would go to conferences and people would say, Well, I love for, you know, we have these digital transformation initiatives and I'm in the security team and I don't feel like I'm part of this. I don't know. I don't know how to insert myself in this process. And so I started doing a lot of research about, um, how we can shift this left. And I was actually doing some research about penetration testing at the time, Um, and found just a ton of opportunity, a ton of problems, right that exist with security and how we do it today. So I really think of this company as a Dev Ops first Company, and it just so happens to be that we're taking security, and we're making it, um, just part of the the application testing framework, right? We're testing for security bugs, just like we would test for any other kind of bucks. >>That's an awesome vision of other great great history there. And thanks for sharing that. I think one of the things that I think this ties into that we have been reporting aggressively on is the movement to Dev Stack Up, Dev, Ops Dev SEC Ops. And you know, just doing an interview with the guy who stood up space force and big space conversation and were essentially riffing on the idea that they have to get modern. It's government, but they got to do more commercial. They're using open source. But the key thing was everything. Software defined. And so, as you move into suffer defined, then they say we want security baked in from the beginning and This is the big kind of like sea level conversation. Bake it in from the beginning, but it's not that easy. And this is where I think it's interesting where you start to think, uh, Dev ops for security because security is broken. So this is a huge trend. It sounds easy to say it baked security in whether it's an i o T edge or multi cloud. There's >>a lot >>of work there. What should people understand when they hear that kind of platitude of? I just baked security and it's really easy. It's not. It's not trivial. What's your thoughts on >>that? It isn't trivial. And in my opinion, there aren't a lot of tools on the market that actually make that very easy. You know, there are some you've had sneak on this program and they're doing an excellent job, really speaking to the developer and being part of that modern software delivery workflow. Um, but because a lot of tools were built to run in production, it makes it really difficult to bake them in from the beginning. And so, you know, I think there are several goals here. One is you make the tooling work so that it works for the software engineer and their workflow. And and there's some different values that we have to consider when its foreign engineer versus when it's for a security person, right? Limit the noise, make it as easy as possible. Um, make sure that we only show the most critical things that are worth an engineer. Stopping what they're doing in terms of building business value and going back and fixing that bugs and then create a way to discuss in triage other issues later outside of the development. Workflow. So you really have to have a lot of empathy and understanding for how software is built and how software engineers behave, I think, in order to get this right. So it's not easy. Um, but we're here and other tools air here. Thio support companies in doing that. >>What's the competitive strategy for you guys going forward? Because there's a big sea change. Now I see an inflection point. Obviously, Cove it highlights. It's not the main reason, but Cloud native has proven it's now gone mainstream kubernetes. You're seeing the big movement there. You're seeing scale be a huge issue. Software defined operations are now being discussed. So I think it's It's a simple moment for this kind of solution. How are you guys going to compete? What's what's the winning strategy? How are you guys gonna compete to win? >>Yeah, so there's two pieces to that one is getting the technology right and making sure that it is a product that developers love. And we put a ton of effort into that because when a software engineer says, Hey, I'd love to use the security product, right? CSOs around the world are going to be like, Yes, please. Did a software engineer just ask me, You have the security product. Thank you, Right. We're here to make it so easy for them and get the tech right. And then the other piece, in terms of being competitive, is the business model. There were something like, I don't You would know better than me, but I think the data point I last saw was like 1300 venture backed security companies since 2012 focused on selling to see SOS and Fortune 2000 companies. It is a mess. It's so noisy, nobody can figure out what anybody actually does. What we have done is said no, we're going to take a modern business model approach to security. So you know, it's a SAS platform that makes it super easy for a software engineer or anybody on the team to try and buy the software. So 14 day trial. You don't have to talk to anybody if you don't want Thio Awesome support to make sure that people can get on boarded and with our on boarding flow, we've seen that our customers go from signing up to first successful scan of their platform or whatever app they chose to scan in a knave ridge of about 10 minutes. The fastest is eight, right? So it's about delivering value to our customers really quickly. And there aren't many companies insecurity on the market today. That do that? >>You know, you mentioned pen test earlier. I I hear that word. Nice shit. And, like, pen test penetration test, as it's called, um, Sock reports. I mean, these are things that are kind of like I got to do that again. I know these people are doing things that are gonna be automated, but one of the things that cloud native has proven as be killer app is integrations because when you build a modern app, it has to integrate with someone else. So there you need these kind of pen tests. You gotta have this kind of code review. And as code, um, is part of, say, a purpose built device where it's an I o T. Edge updates have toe happen. So you need mawr automation. You need more scale around both updating software to, ah, purpose built device or for integration. What's your thoughts in reaction to that? Because this is a riel software challenge from a customer standpoint, because there are too many tools out there and every see so that I talk to says, I just want to get rid of half the tools consolidate down around my clouds that I'm working through my environment and b'more developer oriented, not just purchasing stuff. So you have all this going on? What's your reaction to that? You got the you know, the integration and you've got the software updates on purpose built devices. >>Yeah, I mean, we I make a joke a little bit. That security land is like, you know, acronyms. Dio there are so many types of security that you could choose to implement. And they all have a home and different use cases that are certainly valuable toe organizations. Um, what we like to focus on and what we think is interesting and dynamic application scanning is because it's been hard toe automate dynamic application for especially for modern applications. I think a lot of companies have ignored theon pertuan ity Thio really invest in this capability and what's cool about dynamic. And you were mentioning pen testing. Is that because it's actively attacking your app? It when you get a successful test, it's like a It's like a successful negative test. It's that the test executed, which means that bug is present in your code. And so there's a lot less false positives than in other types of scanning or assessment technologies. Not to say there isn't a home for them. There's a lot of we could we could spend a whole hour kind of breaking down all the different types of bugs that the different tools confined. Um, but we think that if you want to get started developer first, you know there's a lot of great technologies. Pick a couple or one right pick stack hawk pick, sneak and just get started and put it in your developer workflow. So integrations are super important. Um, we have integrations with every C I C. D provider, making it easy to scan your code on every merge or release. And then we also have workflow integrations for software engineers associated with where they want to be doing work and how they want to be interrupted or told about an issue. So, you know, we're very early to market, but right out of the gate, we made sure that we had a slack integration so that scans are running. Or as we're finding new things, it's populating in a specific slack channel for those engineers who work on that part of the app and you're a integration right. If we find issues, we can quickly make tickets and route them and make sure that the right people are working on those issues. Eso That's how I think about sort of the integration piece and just getting started. It's like you can't tackle the whole like every accurate, um, at once like pick something that helps you get started and then continue to build out your program, as you have success. >>A lot of these tools can they get in the hands of developers, and then you kind of win their trust by having functionality. Uh, certainly a winning strategy we've seen. You know, Splunk, you mentioned where you worked for Data Dog and very other tools out there just get started easily. If it's good, it will be used. So I love that strategy. Question. I wanna ask you mentioned Dr earlier. Um, they got a real popular environment, but that speaks to the open source area. How do you see the role of open source playing with you guys? Is that gonna be part of your community outreach? Does the feed into the product? Could you share your vision on how stack hawks engaging and playing an open source? >>Yeah, absolutely. Um So when we started this company, my co founders and I, we sat down and said here, What are the problems? Okay, the world doesn't need a better scanner, right? If you walk the floor of, ah, security, uh, conference. It's like our tool finds a million things and someone else is. My tool finds a million and five things. Right, And that's how they're competing on value. It's really about making it easy to use and put in the pipeline. So we decided not to roll. Our own scanner were based on an open source capability called Zap the Set Attack Proxy. Uh, it is the most the world's most downloaded application scanner. And, uh, actually we just hired the founder of Zap to join the Stack Hawk team, and we're really excited to continue to invest in the open source community. There is a ton of opportunity to grow and sort of galvanize that community. And then the work that we do with our customers and the feedback that we get about the bugs we find if there, ah, false positive or this one's commonly risk accepted, we can go back to the community, which were already doing and saying, Hey, ditch this rule, Nobody likes it or we need to improve this test. Um, so it's a really nice relationship that we have, and we are looking forward to continuing to grow that >>great stuff. You guys are hot. Start of love. The software on security angle again def sec. Cox is gonna be It's gonna be really popular. Can you talk about some of the customer success is What's the What's the feedback from customers? Can you share some of the use cases that you guys are participating in where you're winning? You mentioned developers love it and try It can just give us a couple of use cases and examples. >>Yeah. Ah, few things. Um ah, lot of our customers are already selling on the notion. Like before we even went to G A right. They told all of their customers that they scan for security bugs with every single release. So in really critical, uh, industry is like fintech, right. It's really important that their customers trust that they're taking security seriously, which everybody says they dio. But they show it to their customers by saying here, every single deploy I can show you if there were any new security bugs released with that deploy. So that's really awesome. Other things We've heard our, uh, people being able to deploy really quickly thio the Salesforce marketplace, right? Like if they have toe have a scan to prove that that they can sell on Salesforce, they do that really rapidly. Eso all of that's going really well with our customers. >>How would I wanna How would I be a customer if I was interested in, um, using Stack Hawks say we have some software we wanna stand up, and, uh, it's super grade. And so Amazon Microsoft Marketplace Stairs Force They'll have requirements or say I want to do a deal with an integration they don't want. They want to make sure there's no nothing wrong with the code. This seems to be a common use case. How doe I if I was a customer, get involved or just download software? Um, what's the What's the procurement? What's the consumption side of it looked like, >>Yeah, you just go to Stockholm dot com and you create an account. If you'd like to get started that way so you can have a 14 day free trial. We have extremely extensive documentation, so it's really easy to get set up that way. You should have some familiarity. Or grab a software engineer who has familiarity with a couple of things. So one is how to use Docker, right? So Docker is, ah, deployment mechanism for the scanner. We do that so you can run it anywhere that you would like to, and we don't have to do things like pierce firewalls or other protective measures that you've instrumented on your production environment. You just run it, um, wherever you like in your system. So locally, C I c d So docker is an important thing to understand the way we configure our scanner is through a, um, a file. So if you are getting a scan today, either your security team is doing it or you have a pen tester doing it. Um, the whole like getting ready for that engagement takes a lot of time because the people who are running the tests don't know how the software was built. So the way we think about this is, just ask them. So you just fill out a Yamil file with parameters that tell the scanner what to dio tell it how to authenticate and not log out. Um, feed us an A p. I speak if you want, so weaken super efficiently, scan your app and you can be up and running really quickly, and then that's it. You can work with our team at any time if you need help, and then we have a really efficient procurement process >>in my experience some of the pen tests of firms out there, is it? It's like the house keeping seal of approval. You get it once and then you gotta go back again. Software change, new things come in. And it's like, Wait a minute, what's the new pen test? And then you to write a check or engaged to have enough meeting? I mean, this is the problem. I mean, too many meetings. Do you >>guys solve that problem? Do >>you solve that problem? >>We solve a piece of that problem. So I think you know, part of how I talk about our company is this idea that we live in a world where we deploy software every single day. Yet it seems reasonable that once a year or twice a year, we go get a pen test where human runs readily available, open source software on our product and gives us a like, quite literal. Pdf of issues on. It's like this is so intellectually dishonest, like we deploy all of the time. So here's the thing. Pen tests are important and everybody should do them. But that should not be the introduction to these issues that are also easy to automate and find in your system. So the way we think about how we work with pen testers is, um, run, stack hawk or zapped right in an automated fashion on your system, and then give that, give the configuration and give the most recent results to your pen tester and say, Go find the hard stuff. You shouldn't be cutting checks for $30,000 to a pen tester or something that you could easily meet in your flare up. Klein. You could write the checks for finding finding the hard stuff that's much more difficult to automate. >>I totally agree. Final question. Business model Once I get in, is it a service software and services? A monthly fee? How do you guys make money? >>Yep, it is software as a service, it is. A monthly fee were early to market. So I'm not going to pretend that we have perfectly cracked the pricing. Um, but the way that we think about this is this is a team product for software engineers and for, you know, informed constituents, right? You want a product person in the product. You want a security person in the product? Um, and we also want to incent you to scan your APS And the most modern fashion, which is scanning the smallest amount of http that lives in your app, like in a micro services architecture because it makes a lot easier, is easy to isolate the problems where they live and to fix those issues really quickly. So we bundle team and for a UPS and then we scale within, uh, companies as they add more team. So pen users. 10 APS is 3 99 a month. And as you add software engineers and more applications, we scale within your company that way. >>Awesome. So if you're successful, you pay more, but doesn't matter. You already succeeded, and that's the benefit of by As you go Great stuff. Final question. One more thing. Your vision of the future. What are the biggest challenges you see in the next 24 months? Plus beyond, um, that you're trying to attack? That's a preferred future that you see evolving. What's the vision? >>Yeah, you've touched on this a couple of times in this interview with uh being remote, and the way that we need to build software already has been modernizing, and I feel like every company has a digital transformation initiative, but it has toe happen faster. And along with that, we have to figure out how Thio protect and secure these Moderna Gail. The most important thing that we do the hearts and minds of our support engineers and make it really easy for them to use security capabilities and then continue to growth in the organization. And that's not an easy thing tied off. It's easy change, a different way of being security. But I think we have to get their, uh, in order to prepare the security, uh, in these rapidly deployed and developed applications that our customers expect. >>Awesome. Jodi Clippers, CEO and founder of Stack Hawk. Thank you for coming on. I really appreciate it. Thanks for spending the time featured Startup is part of our Cuban cloud. I'm Sean for your host with silicon angle to Cube. Thanks for watching

>>from around the globe. It's the Cube presenting innovation for good, brought to you by on shape. >>Hello, everyone, and welcome to Innovation for Good Program, hosted by the Cuban. Brought to You by on Shape, which is a PTC company. My name is Dave Valentin. I'm coming to you from our studios outside of Boston. I'll be directing the conversations today. It's a very exciting, all live program. We're gonna look at how product innovation has evolved and where it's going and how engineers, entrepreneurs and educators are applying cutting edge, cutting edge product development techniques and technology to change our world. You know, the pandemic is, of course, profoundly impacted society and altered how individuals and organizations they're gonna be thinking about an approaching the coming decade. Leading technologists, engineers, product developers and educators have responded to the new challenges that we're facing from creating lifesaving products to helping students learn from home toe how to apply the latest product development techniques and solve the world's hardest problems. And in this program, you'll hear from some of the world's leading experts and practitioners on how product development and continuous innovation has evolved, how it's being applied toe positive positively affect society and importantly where it's going in the coming decades. So let's get started with our first session fueling Tech for good. And with me is John Hirschbeck, who is the president of the Suffers, a service division of PTC, which acquired on shape just over a year ago, where John was the CEO and co founder, and Dana Grayson is here. She is the co founder and general partner at Construct Capital, a new venture capital firm. Folks, welcome to the program. Thanks so much for coming on. >>Great to be here, Dave. >>All right, John. >>You're very welcome. Dana. Look, John, let's get into it for first Belated congratulations on the acquisition of Von Shape. That was an awesome seven year journey for your company. Tell our audience a little bit about the story of on shape, but take us back to Day zero. Why did you and your co founders start on shape? Well, >>actually, start before on shaping the You know, David, I've been in this business for almost 40 years. The business of building software tools for product developers and I had been part of some previous products in the industry and companies that had been in their era. Big changes in this market and about, you know, a little Before founding on shape, we started to see the problems product development teams were having with the traditional tools of that era years ago, and we saw the opportunity presented by Cloud Web and Mobile Technology. And we said, Hey, we could use Cloud Web and Mobile to solve the problems of product developers make their Their business is run better. But we have to build an entirely new system, an entirely new company, to do it. And that's what on shapes about. >>Well, so notwithstanding the challenges of co vid and difficulties this year, how is the first year been as, Ah, division of PTC for you guys? How's business? Anything you can share with us? >>Yeah, our first year of PTC has been awesome. It's been, you know, when you get acquired, Dave, you never You know, you have great optimism, but you never know what life will really be like. It's sort of like getting married or something, you know, until you're really doing it, you don't know. And so I'm happy to say that one year into our acquisition, um, PTC on shape is thriving. It's worked out better than I could have imagined a year ago. Along always, I mean sales are up. In Q four, our new sales rate grew 80% vs Excuse me, our fiscal Q four Q three. In the calendar year, it grew 80% compared to the year before. Our educational uses skyrocketing with around 400% growth, most recently year to year of students and teachers and co vid. And we've launched a major cloud platform using the core of on shape technology called Atlas. So, um, just tons of exciting things going on a TTC. >>That's awesome. But thank you for sharing some of those metrics. And of course, you're very humble individual. You know, people should know a little bit more about you mentioned, you know, we founded Solid Works, co founded Solid where I actually found it solid works. You had a great exit in the in the late nineties. But what I really appreciate is, you know, you're an entrepreneur. You've got a passion for the babies that you you helped birth. You stayed with the salt systems for a number of years. The company that quiet, solid works well over a decade. And and, of course, you and I have talked about how you participated in the the M I T. Blackjack team. You know, back in the day, a zai say you're very understated, for somebody was so accomplished. Well, >>that's kind of you, but I tend to I tend Thio always keep my eye more on what's ahead. You know what's next, then? And you know, I look back Sure to enjoy it and learn from it about what I can put to work making new memories, making new successes. >>Love it. Okay, let's bring Dana into the conversation. Hello, Dana. You look you're a fairly early investor in in on shape when you were with any A And and I think it was like it was a serious B, but it was very right close after the A raise. And and you were and still are a big believer in industrial transformation. So take us back. What did you see about on shape back then? That excited you. >>Thanks. Thanks for that. Yeah. I was lucky to be a early investment in shape. You know, the things that actually attracted me. Don shape were largely around John and, uh, the team. They're really setting out to do something, as John says humbly, something totally new, but really building off of their background was a large part of it. Um, but, you know, I was really intrigued by the design collaboration side of the product. Um, I would say that's frankly what originally attracted me to it. What kept me in the room, you know, in terms of the industrial world was seeing just if you start with collaboration around design what that does to the overall industrial product lifecycle accelerating manufacturing just, you know, modernizing all the manufacturing, just starting with design. So I'm really thankful to the on shape guys, because it was one of the first investments I've made that turned me on to the whole sector. And while just such a great pleasure to work with with John and the whole team there. Now see what they're doing inside PTC. >>And you just launched construct capital this year, right in the middle of a pandemic and which is awesome. I love it. And you're focused on early stage investing. Maybe tell us a little bit about construct capital. What your investment thesis is and you know, one of the big waves that you're hoping to ride. >>Sure, it construct it is literally lifting out of any what I was doing there. Um uh, for on shape, I went on to invest in companies such as desktop metal and Tulip, to name a couple of them form labs, another one in and around the manufacturing space. But our thesis that construct is broader than just, you know, manufacturing and industrial. It really incorporates all of what we'd call foundational industries that have let yet to be fully tech enabled or digitized. Manufacturing is a big piece of it. Supply chain, logistics, transportation of mobility or not, or other big pieces of it. And together they really drive, you know, half of the GDP in the US and have been very under invested. And frankly, they haven't attracted really great founders like they're on in droves. And I think that's going to change. We're seeing, um, entrepreneurs coming out of the tech world orthe Agnelli into these industries and then bringing them back into the tech world, which is which is something that needs to happen. So John and team were certainly early pioneers, and I think, you know, frankly, obviously, that voting with my feet that the next set, a really strong companies are going to come out of the space over the next decade. >>I think it's a huge opportunity to digitize the sort of traditionally non digital organizations. But Dana, you focused. I think it's it's accurate to say you're focused on even Mawr early stage investing now. And I want to understand why you feel it's important to be early. I mean, it's obviously riskier and reward e er, but what do you look for in companies and and founders like John >>Mhm, Um, you know, I think they're different styles of investing all the way up to public market investing. I've always been early stage investors, so I like to work with founders and teams when they're, you know, just starting out. Um, I happened to also think that we were just really early in the whole digital transformation of this world. You know, John and team have been, you know, back from solid works, etcetera around the space for a long time. But again, the downstream impact of what they're doing really changes the whole industry. And and so we're pretty early and in digitally transforming that market. Um, so that's another reason why I wanna invest early now, because I do really firmly believe that the next set of strong companies and strong returns for my own investors will be in the spaces. Um, you know, what I look for in Founders are people that really see the world in a different way. And, you know, sometimes some people think of founders or entrepreneurs is being very risk seeking. You know, if you asked John probably and another successful entrepreneurs, they would call themselves sort of risk averse, because by the time they start the company, they really have isolated all the risk out of it and think that they have given their expertise or what they're seeing their just so compelled to go change something, eh? So I look for that type of attitude experience a Z. You can also tell from John. He's fairly humble. So humility and just focus is also really important. Um, that there's a That's a lot of it. Frankly, >>Excellent. Thank you, John. You got such a rich history in the space. Uh, and one of you could sort of connect the dots over time. I mean, when you look back, what were the major forces that you saw in the market in in the early days? Particularly days of on shape on? And how is that evolved? And what are you seeing today? Well, >>I think I touched on it earlier. Actually, could I just reflect on what Dana said about risk taking for just a quick one and say, throughout my life, from blackjack to starting solid works on shape, it's about taking calculated risks. Yes, you try to eliminate the risk Sa's much as you can, but I always say, I don't mind taking a risk that I'm aware of, and I've calculated through as best I can. I don't like taking risks that I don't know I'm taking. That's right. You >>like to bet on >>sure things as much as you sure things, or at least where you feel you. You've done the research and you see them and you know they're there and you know, you, you you keep that in mind in the room, and I think that's great. And Dana did so much for us. Dana, I want to thank you again. For all that, you did it every step of the way, from where we started to to, you know, your journey with us ended formally but continues informally. Now back to you, Dave, I think, question about the opportunity and how it's shaped up. Well, I think I touched on it earlier when I said It's about helping product developers. You know, our customers of the people build the future off manufactured goods. Anything you think of that would be manufacturing factory. You know, the chair you're sitting in machine that made your coffee. You know, the computer you're using, the trucks that drive by on the street, all the covert product research, the equipment being used to make vaccines. All that stuff is designed by someone, and our job is given the tools to do it better. And I could see the problems that those product developers had that we're slowing them down with using the computing systems of the time. When we built solid works, that was almost 30 years ago. If people don't realize that it was in the early >>nineties and you know, we did the >>best we could for the early nineties, but what we did. We didn't anticipate the world of today. And so people were having problems with just installing the systems. Dave, you wouldn't believe how hard it is to install these systems. You need toe speck up a special windows computer, you know, and make sure you've got all the memory and graphics you need and getting to get that set up. You need to make sure the device drivers air, right, install a big piece of software. Ah, license key. I'm not making this up. They're still around. You may not even know what those are. You know, Dennis laughing because, you know, zero cool people do things like this anymore. Um, and it only runs some windows. You want a second user to use it? They need a copy. They need a code. Are they on the same version? It's a nightmare. The teams change, you know? You just say, Well, get everyone on the software. Well, who's everyone? You know, you got a new vendor today? A new customer tomorrow, a new employee. People come on and off the team. The other problem is the data stored in files, thousands of files. This isn't like a spreadsheet or word processor, where there's one file to pass around these air thousands of files to make one, even a simple product. People were tearing their hair out. John, what do we do? I've got copies everywhere. I don't know where the latest version is. We tried like, you know, locking people out so that only one person can change it At the time that works against speed, it works against innovation. We saw what was happening with Cloud Web and mobile. So what's happened in the years since is every one of the forces that product developers experience the need for speed, the need for innovation, the need to be more efficient with their people in their capital. Resource is every one of those trends have been amplified since we started on shape by a lot of forces in the world. And covert is amplified all those the need for agility and remote work cove it is amplified all that the same time, The acceptance of cloud. You know, a few years ago, people were like cloud, you know, how is that gonna work now They're saying to me, You know, increasingly, how would you ever even have done this without the cloud. How do you make solid works work without the cloud? How would that even happen? You know, once people understand what on shapes about >>and we're the >>Onley full SAS solution software >>as a service, >>full SAS solution in our industry. So what's happened in those years? Same problems we saw earlier, but turn up the gain, their bigger problems. And with cloud, we've seen skepticism of years ago turn into acceptance. And now even embracement in the cova driven new normal. >>Yeah. So a lot of friction in the previous environments cloud obviously a huge factor on, I guess. I guess Dana John could see it coming, you know, in the early days of solid works with, you know, had Salesforce, which is kind of the first major independent SAS player. Well, I guess that was late nineties. So his post solid works, but pre in shape and their work day was, you know, pre on shape in the mid two thousands. And and but But, you know, the bet was on the SAS model was right for Crick had and and product development, you know, which maybe the time wasn't a no brainer. Or maybe it was, I don't know, but Dana is there. Is there anything that you would invest in today? That's not Cloud based? >>Um, that's a great question. I mean, I think we still see things all the time in the manufacturing world that are not cloud based. I think you know, the closer you get to the shop floor in the production environment. Um e think John and the PTC folks would agree with this, too, but that it's, you know, there's reliability requirements, performance requirements. There's still this attitude of, you know, don't touch the printing press. So the cloud is still a little bit scary sometimes. And I think hybrid cloud is a real thing for those or on premise. Solutions, in some cases is still a real thing. What what we're more focused on. And, um, despite whether it's on premise or hybrid or or SAS and Cloud is a frictionless go to market model, um, in the companies we invest in so sass and cloud, or really make that easy to adopt for new users, you know, you sign up, started using a product, um, but whether it's hosted in the cloud, whether it's as you can still distribute buying power. And, um, I would I'm just encouraging customers in the customer world and the more industrial environment to entrust some of their lower level engineers with more budget discretionary spending so they can try more products and unlock innovation. >>Right? The unit economics are so compelling. So let's bring it, you know, toe today's you know, situation. John, you decided to exit about a year ago. You know? What did you see in PTC? Other than the obvious money? What was the strategic fit? >>Yeah, Well, David, I wanna be clear. I didn't exit anything. Really? You >>know, I love you and I don't like that term exit. I >>mean, Dana had exit is a shareholder on and so it's not It's not exit for me. It's just a step in the journey. What we saw in PTC was a partner. First of all, that shared our vision from the top down at PTC. Jim Hempleman, the CEO. He had a great vision for for the impact that SAS can make based on cloud technology and really is Dana of highlighted so much. It's not just the technology is how you go to market and the whole business being run and how you support and make the customers successful. So Jim shared a vision for the potential. And really, really, um said Hey, come join us and we can do this bigger, Better, faster. We expanded the vision really to include this Atlas platform for hosting other SAS applications. That P D. C. I mean, David Day arrived at PTC. I met the head of the academic program. He came over to me and I said, You know, and and how many people on your team? I thought he'd say 5 40 people on the PTC academic team. It was amazing to me because, you know, we were we were just near about 100 people were required are total company. We didn't even have a dedicated academic team and we had ah, lot of students signing up, you know, thousands and thousands. Well, now we have hundreds of thousands of students were approaching a million users and that shows you the power of this team that PTC had combined with our product and technology whom you get a big success for us and for the teachers and students to the world. We're giving them great tools. So so many good things were also putting some PTC technology from other parts of PTC back into on shape. One area, a little spoiler, little sneak peek. Working on taking generative design. Dana knows all about generative design. We couldn't acquire that technology were start up, you know, just to too much to do. But PTC owns one of the best in the business. This frustrated technology we're working on putting that into on shaping our customers. Um, will be happy to see it, hopefully in the coming year sometime. >>It's great to see that two way exchange. Now, you both know very well when you start a company, of course, a very exciting time. You know, a lot of baggage, you know, our customers pulling you in a lot of different directions and asking you for specials. You have this kind of clean slate, so to speak in it. I would think in many ways, John, despite you know, your install base, you have a bit of that dynamic occurring today especially, you know, driven by the forced march to digital transformation that cove it caused. So when you sit down with the team PTC and talk strategy. You now have more global resource is you got cohorts selling opportunities. What's the conversation like in terms of where you want to take the division? >>Well, Dave, you actually you sounds like we should have you coming in and talking about strategy because you've got the strategy down. I mean, we're doing everything said global expansion were able to reach across selling. We got some excellent PTC customers that we can reach reach now and they're finding uses for on shape. I think the plan is to, you know, just go, go, go and grow, grow, grow where we're looking for this year, priorities are expand the product. I mentioned the breath of the product with new things PTC did recently. Another technology that they acquired for on shape. We did an acquisition. It was it was small, wasn't widely announced. It, um, in an area related to interfacing with electrical cad systems. So So we're doing We're expanding the breath of on shape. We're going Maura, depth in the areas were already in. We have enormous opportunity to add more features and functions that's in the product. Go to market. You mentioned it global global presence. That's something we were a little light on a year ago. Now we have a team. Dana may not even know what we have. A non shape, dedicated team in Barcelona, based in Barcelona but throughout Europe were doing multiple languages. Um, the academic program just introduced a new product into that space that z even fueling more success and growth there. Um, and of course, continuing to to invest in customer success and this Atlas platform story I keep mentioning, we're going to soon have We're gonna soon have four other major PTC brands shipping products on our Atlas Saas platform. And so we're really excited about that. That's good for the other PTC products. It's also good for on shape because now there's there's. There's other interesting products that are on shape customers can use take advantage of very easily using, say, a common log in conventions about user experience there, used to invest of all they're SAS based, so they that makes it easier to begin with. So that's some of the exciting things going on. I think you'll see PTC, um, expanding our lead in SAS based applications for this sector for our our target, uh, sectors not just in, um, in cat and data management, but another area. PTC's Big and his augmented reality with of euphoria, product line leader and industrial uses of a R. That's a whole other story we should do. A whole nother show augmented reality. But these products are amazing. You can you can help factory workers people on, uh, people who are left out of the digital transformation. Sometimes we're standing from machine >>all day. >>They can't be sitting like we are doing Zoom. They can wear a R headset in our tools, let them create great content. This is an area Dana is invested in other companies. But what I wanted to note is the new releases of our authoring software. For this, our content getting released this month, used through the Atlas platform, the SAS components of on shape for things like revision management and collaboration on duh workflow activity. All that those are tools that we're able to share leverage. We get a lot of synergy. It's just really good. It's really fun to have a good time. That's >>awesome. And then we're gonna be talking to John MacLean later about that. Let's do a little deeper Dive on that. And, Dana, what is your involvement today with with on shape? But you're looking for you know, which of their customers air actually adopting. And they're gonna disrupt their industries. And you get good pipeline from that. How do you collaborate today? >>That sounds like a great idea. Um, Aziz, John will tell you I'm constantly just asking him for advice and impressions of other entrepreneurs and picking his brain on ideas. No formal relationship clearly, but continue to count John and and John and other people in on shaping in the circle of experts that I rely on for their opinions. >>All right, so we have some questions from the crowd here. Uh, one of the questions is for the dream team. You know, John and Dana. What's your next next collective venture? I don't think we're there yet, are we? No. >>I just say, as Dana said, we love talking to her about. You know, Dana, you just returned the compliment. We would try and give you advice and the deals you're looking at, and I'm sort of casually mentoring at least one of your portfolio entrepreneurs, and that's been a lot of fun for May on, hopefully a value to them. But also Dana. We uran important pipeline to us in the world of some new things that are happening that we wouldn't see if you know you've shown us some things that you've said. What do you think of this business? And for us, it's like, Wow, it's cool to see that's going on And that's what's supposed to work in an ecosystem like this. So we we deeply value the ongoing relationship. And no, we're not starting something new. I got a lot of work left to do with what I'm doing and really happy. But we can We can collaborate in this way on other ventures. >>I like this question to somebody asking With the cloud options like on shape, Wilmore students have stem opportunities s Oh, that's a great question. Are you because of sass and cloud? Are you able to reach? You know, more students? Much more cost effectively. >>Yeah, Dave, I'm so glad that that that I was asked about this because Yes, and it's extremely gratified us. Yes, we are because of cloud, because on shape is the only full cloud full SAS system or industry were able to reach. Stem education brings able to be part of bringing step education to students who couldn't get it otherwise. And one of most gratifying gratifying things to me is the emails were getting from teachers, um, that that really, um, on the phone calls that were they really pour their heart out and say We're able to get to students in areas that have very limited compute resource is that don't have an I T staff where they don't know what computer that the students can have at home, and they probably don't even have a computer. We're talking about being able to teach them on a phone to have an android phone a low end android phone. You can do three D modeling on there with on shape. Now you can't do it any other system, but with on shape, you could do it. And so the teacher can say to the students, They have to have Internet access, and I know there's a huge community that doesn't even have Internet access, and we're not able, unfortunately to help that. But if you have Internet and you have even an android phone, we can enable the educator to teach them. And so we have case after case of saving a stem program or expanding it into the students that need it most is the ones we're helping here. So really excited about that. And we're also able to let in addition to the run on run on whatever computing devices they have, we also offer them the tools they need for remote teaching with a much richer experience. Could you teach solid works remotely? Well, maybe if the student ran it had a windows workstation. You know, big, big, high end workstation. Maybe it could, but it would be like the difference between collaborating with on shape and collaborate with solid works. Like the difference between a zoom video call and talking on the landline phone. You know, it's a much richer experience, and that's what you need. And stem teaching stem is hard, So yeah, we're super super. Um, I'm excited about bringing stem to more students because of cloud yond >>we're talking about innovation for good, and then the discussion, John, you just had it. Really? There could be a whole another vector here. We could discuss on diversity, and I wanna end with just pointing out. So, Dana, your new firm, it's a woman led firm, too. Two women leaders, you know, going forward. So that's awesome to see, so really? Yeah, thumbs up on that. Congratulations on getting that off the ground. >>Thank you. Thank you. >>Okay, so thank you guys. Really appreciate It was a great discussion. I learned a lot and I'm sure the audience did a swell in a moment. We're gonna talk with on shaped customers to see how they're applying tech for good and some of the products that they're building. So keep it right there. I'm Dave Volonte. You're watching innovation for good on the Cube, the global leader in digital tech event coverage. Stay right there. >>Oh, yeah, it's >>yeah, yeah, around >>the globe. It's the Cube presenting innovation for good. Brought to you by on shape. >>Okay, we're back. This is Dave Volonte and you're watching innovation for good. A program on Cuba 3 65 made possible by on shape of PTC company. We're live today really live tv, which is the heritage of the Cube. And now we're gonna go to the sources and talkto on shape customers to find out how they're applying technology to create real world innovations that are changing the world. So let me introduce our panel members. Rafael Gomez Furberg is with the Chan Zuckerberg bio hub. A very big idea. And collaborative nonprofit was initiative that was funded by Mark Zuckerberg and his wife, Priscilla Chan, and really around diagnosing and curing and better managing infectious diseases. So really timely topic. Philip Tabor is also joining us. He's with silver side detectors, which develops neutron detective detection systems. Yet you want to know if early, if neutrons and radiation or in places where you don't want them, So this should be really interesting. And last but not least, Matthew Shields is with the Charlottesville schools and is gonna educate us on how he and his team are educating students in the use of modern engineering tools and techniques. Gentlemen, welcome to the Cuban to the program. This should be really interesting. Thanks for coming on. >>Hi. Or pleasure >>for having us. >>You're very welcome. Okay, let me ask each of you because you're all doing such interesting and compelling work. Let's start with Rafael. Tell us more about the bio hub and your role there, please. >>Okay. Yeah. So you said that I hope is a nonprofit research institution, um, funded by Mark Zuckerberg and his wife, Priscilla Chan. Um, and our main mission is to develop new technologies to help advance medicine and help, hopefully cure and manage diseases. Um, we also have very close collaborations with Universe California, San Francisco, Stanford University and the University California Berkeley on. We tried to bring those universities together, so they collaborate more of biomedical topics. And I manage a team of engineers. They by joining platform. Um, and we're tasked with creating instruments for the laboratory to help the scientist boats inside the organization and also in the partner universities Do their experiments in better ways in ways that they couldn't do before >>in this edition was launched Well, five years ago, >>it was announced at the end of 2016, and we actually started operation with at the beginning of 2017, which is when I joined, um, So this is our third year. >>And how's how's it going? How does it work? I mean, these things take time. >>It's been a fantastic experience. Uh, the organization works beautifully. Um, it was amazing to see it grow From the beginning, I was employee number 12, I think eso When I came in, it was just a nem P office building and empty labs. And very quickly we had something running about. It's amazing eso I'm very proud of the work that we have done to make that possible. Um And then, of course, that's you mentioned now with co vid, um, we've been able to do a lot of very cool work attire being of the pandemic in March, when there was a deficit of testing, uh, capacity in California, we spun up a testing laboratory in record time in about a week. It was crazy. It was a crazy project, Um, but but incredibly satisfying. And we ended up running all the way until the beginning of November, when the lab was finally shut down. We could process about 3000 samples a day. I think at the end of it all, we were able to test about 100 on the order of 100 and 50,000 samples from all over the state. We were providing free testing toe all of the Department of Public Health Department of Public Health in California, which at the media pandemic, had no way to do testing affordably and fast. So I think that was a great service to the state. Now the state has created that testing system that would serve those departments. So then we decided that it was unnecessary to keep going with testing in the other biopsy that would shut down. >>All right. Thank you for that. Now, Now, Philip, you What you do is mind melting. You basically helped keep the world safe. Maybe describe a little bit more about silver sod detectors and what your role is there and how it all works. >>Tour. So we make a nuclear bomb detectors and we also make water detectors. So we try and do our part thio keep the world from blowing up and make it a better place at the same time. Both of these applications use neutron radiation detectors. That's what we make. Put them out by import border crossing places like that. They can help make sure that people aren't smuggling. Shall we say very bad things. Um, there's also a burgeoning field of research and application where you can use neutrons with some pretty cool physics to find water so you could do things. Like what? A detector up in the mountains and measure snowpack. Put it out in the middle of the field and measure soil moisture content. And as you might imagine, there's some really cool applications in, uh, research and agronomy and public policy for this. >>All right, so it's OK, so it's a It's much more than, you know, whatever fighting terrorism, it's there's a riel edge or I kind of i o t application for what you guys >>do. We do both its's to plowshares. You might >>say a mat. I I look at your role is kind of scaling the brain power for for the future. Maybe tell us more about Charlottesville schools and in the mission that you're pursuing and what you do. >>Thank you. Um, I've been in Charlottesville City schools for about 11 or 12 years. I started their teaching, um, a handful of classes, math and science and things like that. But Thescore board and my administration had the crazy idea of starting an engineering program about seven years ago. My background is an engineering is an engineering. My masters is in mechanical and aerospace engineering and um, I basically spent a summer kind of coming up with what might be a fun engineering curriculum for our students. And it started with just me and 30 students about seven years ago, Um, kind of a home spun from scratch curriculum. One of my goals from the outset was to be a completely project based curriculum, and it's now grown. We probably have about six or 700 students, five or six full time teachers. We now have pre engineering going on at the 5th and 6th grade level. I now have students graduating. Uh, you know, graduating after senior year with, like, seven years of engineering under their belt and heading off to doing some pretty cool stuff. So it's It's been a lot of fun building a program and, um, and learning a lot in the process. >>That's awesome. I mean, you know, Cuba's. We've been passionate about things like women in tech, uh, diversity stem. You know, not only do we need more, more students and stem, we need mawr underrepresented women, minorities, etcetera. We were just talking to John Herstek and integrate gration about this is Do you do you feel is though you're I mean, first of all, the work that you do is awesome, but but I'll go one step further. Do you feel as though it's reaching, um, or diverse base? And how is that going? >>That's a great question. I think research shows that a lot of people get funneled into one kind of track or career path or set of interests really early on in their educational career, and sometimes that that funnel is kind of artificial. And so that's one of the reasons we keep pushing back. Um, so our school systems introducing kindergartners to programming on DSO We're trying to push back how we expose students to engineering and to stem fields as early as possible. And we've definitely seen the first of that in my program. In fact, my engineering program, uh, sprung out of an after school in Extracurricular Science Club that actually three girls started at our school. So I think that actually has helped that three girls started the club that eventually is what led to our engineering programs that sort of baked into the DNA and also our eyes a big public school. And we have about 50% of the students are under the poverty line and we e in Charlottesville, which is a big refugee town. And so I've been adamant from Day one that there are no barriers to entry into the program. There's no test you have to take. You don't have to have be taking a certain level of math or anything like that. That's been a lot of fun. To have a really diverse set of kids enter the program and be successful, >>that's final. That's great to hear. So, Philip, I wanna come back to you. You know, I think about maybe some day we'll be able to go back to a sporting events, and I know when I when I'm in there, there's somebody up on the roof looking out for me, you know, watching the crowd, and they have my back. And I think in many ways, the products that you build, you know, our similar. I may not know they're there, but they're keeping us safe or they're measuring things that that that I don't necessarily see. But I wonder if you could talk about a little bit more detail about the products you build and how they're impacting society. >>Sure, so There are certainly a lot of people who are who are watching, trying to make sure things were going well in keeping you safe that you may or may not be aware of. And we try and support ah lot of them. So we have detectors that are that are deployed in a variety of variety of uses, with a number of agencies and governments that dio like I was saying, ports and border crossing some other interesting applications that are looking for looking for signals that should not be there and working closely to fit into the operations these folks do. Onda. We also have a lot of outreach to researchers and scientists trying to help them support the work they're doing. Um, using neutron detection for soil moisture monitoring is a some really cool opportunities for doing it at large scale and with much less, um, expense or complication than would have been done. Previous technologies. Um, you know, they were talking about collaboration in the previous segment. We've been able to join a number of conferences for that, virtually including one that was supposed to be held in Boston, but another one that was held out of the University of Heidelberg in Germany. And, uh, this is sort of things that in some ways, the pandemic is pushing people towards greater collaboration than they would have been able to do. Had it all but in person. >>Yeah, we did. Uh, the cube did live works a couple years ago in Boston. It was awesome show. And I think, you know, with this whole trend toward digit, I call it the Force march to digital. Thanks to cove it I think that's just gonna continue. Thio grow. Rafael. What if you could describe the process that you use to better understand diseases? And what's your organization's involvement? Been in more detail, addressing the cove in pandemic. >>Um, so so we have the bio be structured in, Um um in a way that foster so the combination of technology and science. So we have to scientific tracks, one about infectious diseases and the other one about understanding just basic human biology, how the human body functions, and especially how the cells in the human body function on how they're organized to create tissues in the body. On Ben, it has this set of platforms. Um, mind is one of them by engineering that are all technology rated. So we have data science platform, all about data analysis, machine learning, things like that. Um, we have a mass spectrometry platform is all about mass spectrometry technologies to, um, exploit those ones in service for the scientist on. We have a genomics platform that it's all about sequencing DNA and are gonna, um and then an advanced microscopy. It's all about developing technologies, uh, to look at things with advanced microscopes and developed technologies to marry computation on microscopy. So, um, the scientists set the agenda and the platforms, we just serve their needs, support their needs, and hopefully develop technologies that help them do their experiments better, faster, or allow them to the experiment that they couldn't do in any other way before. Um And so with cove, it because we have that very strong group of scientists that work on have been working on infectious disease before, and especially in viruses, we've been able to very quickly pivot to working on that s O. For example, my team was able to build pretty quickly a machine to automatically purified proteins on is being used to purify all these different important proteins in the cove. It virus the SARS cov to virus Onda. We're sending some of those purified proteins all over the world. Two scientists that are researching the virus and trying to figure out how to develop vaccines, understand how the virus affects the body and all that. Um, so some of the machines we built are having a very direct impact on this. Um, Also for the copy testing lab, we were able to very quickly develop some very simple machines that allowed the lab to function sort of faster and more efficiently. Sort of had a little bit of automation in places where we couldn't find commercial machines that would do it. >>Um, eso Matt. I mean, you gotta be listening to this and thinking about Okay, So someday your students are gonna be working at organizations like like, like Bio Hub and Silver Side. And you know, a lot of young people they're just don't know about you guys, but like my kids, they're really passionate about changing the world. You know, there's way more important than you know, the financial angles and it z e. I gotta believe you're seeing that you're right in the front lines there. >>Really? Um, in fact, when I started the curriculum six or seven years ago, one of the first bits of feedback I got from my students is they said Okay, this is a lot of fun. So I had my students designing projects and programming microcontrollers raspberry, PiS and order we nose and things like that. The first bit of feedback I got from students was they said Okay, when do we get to impact the world? I've heard engineering >>is about >>making the world a better place, and robots are fun and all, but, you know, where is the real impact? And so um, dude, yeah, thanks to the guidance of my students, I'm baking that Maurin. Now I'm like day one of engineering one. We talk about how the things that the tools they're learning and the skills they're gaining, uh, eventually, you know, very soon could be could be used to make the world a better place. >>You know, we all probably heard that famous line by Jeff Hammer Barker. The greatest minds of my generation are trying to figure out how to get people to click on ads. I think we're really generally generationally, finally, at the point where young students and engineering a really, you know, a passionate about affecting society. I wanna get into the product, you know, side and understand how each of you are using on shape and and the value that that it brings. Maybe Raphael, you could start how long you've been using it. You know, what's your experience with it? Let's let's start there. >>I begin for about two years, and I switched to it with some trepidation. You know, I was used to always using the traditional product that you have to install on your computer, that everybody uses that. So I was kind of locked into that. But I started being very frustrated with the way it worked, um, and decided to give on ship chance. Which reputation? Because any change always, you know, causes anxiety. Um, but very quickly my engineers started loving it, Uh, just because it's it's first of all, the learning curve wasn't very difficult at all. You can transfer from one from the traditional product to entree very quickly and easily. You can learn all the concepts very, very fast. It has all the functionality that we needed and and what's best is that it allows to do things that we couldn't do before or we couldn't do easily. Now we can access the our cat documents from anywhere in the world. Um, so when we're in the lab fabricating something or testing a machine, any computer we have next to us or a tablet or on iPhone, we can pull it up and look at the cad and check things or make changes. That's something that couldn't do before because before you had to pay for every installation off the software for the computer, and I couldn't afford to have 20 installations to have some computers with the cat ready to use them like once every six months would have been very inefficient. So we love that part. And the collaboration features are fantastic, especially now with Kobe, that we have to have all the remote meetings eyes fantastic, that you can have another person drive the cad while the whole team is watching that person change the model and do things and point to things that is absolutely revolutionary. We love it. The fact that you have very, very sophisticated version control before it was always a challenge asking people, please, if you create anniversary and apart, how do we name it so that people find it? And then you end up with all these collection of files with names that nobody ever remembers, what they are, the person left. And now nobody knows which version is the right one. A mess with on shape on the version ING system it has, and the fact that you can go back in history off the document and go back to previous version so easily and then go back to the press and version and explore the history of the part that is truly, um, just world changing for us, that we can do that so easily on for me as a manager to manage this collection of information that is critical for our operations. It makes it so much easier because everything is in one place. I don't have to worry about file servers that go down that I have to administer that have to have I t taken care off that have to figure how to keep access to people to those servers when they're at home, and they need a virtual private network and all of that mess disappears. I just simply give give a person in accounting on shape and then magically, they have access to everything in the way I want. And we can manage the lower documents and everything in a way that is absolutely fantastic. >>Feel what was your what? What were some of the concerns you had mentioned? You had some trepidation. Was it a performance? Was it security? You know some of the traditional cloud stuff, and I'm curious as to how, How, whether any of those act manifested really that you had to manage. What were your concerns? >>Look, the main concern is how long is it going to take for everybody in the team to learn to use the system like it and buy into it? Because I don't want to have my engineers using tools against their will write. I want everybody to be happy because that's how they're productive. They're happy, and they enjoyed the tools they have. That was my main concern. I was a little bit worried about the whole concept of not having the files in a place where I couldn't quote unquote seat in some server and on site, but that That's kind of an outdated concept, right? So that took a little bit of a mind shift, but very quickly. Then I started thinking, Look, I have a lot of documents on Google Drive. Like, I don't worry about that. Why would I worry about my cat on on shape, right? Is the same thing. So I just needed to sort of put things in perspective that way. Um, the other, um, you know, the concern was the learning curve, right? Is like, how is he Will be for everybody to and for me to learn it on whether it had all of the features that we needed. And there were a few features that I actually discussed with, um uh, Cody at on shape on, they were actually awesome about using their scripting language in on shape to sort of mimic some of the features of the old cat, uh, in on, shaped in a way that actually works even better than the old system. So it was It was amazing. Yeah, >>Great. Thank you for that, Philip. What's your experience been? Maybe you could take us through your journey within shape. >>Sure. So we've been we've been using on shaped silver side for coming up on about four years now, and we love it. We're very happy with it. We have a very modular product line, so we make anything from detectors that would go into backpacks. Two vehicles, two very large things that a shipping container would go through and saw. Excuse me. Shape helps us to track and collaborate faster on the design. Have multiple people working a same time on a project. And it also helps us to figure out if somebody else comes to us and say, Hey, I want something new how we congrats modules from things that we already have put them together and then keep track of the design development and the different branches and ideas that we have, how they all fit together. A za design comes together, and it's just been fantastic from a mechanical engineering background. I will also say that having used a number of different systems and solid works was the greatest thing since sliced bread. Before I got using on shape, I went, Wow, this is amazing and I really don't want to design in any other platform. After after getting on Lee, a little bit familiar with it. >>You know, it's funny, right? I'll have the speed of technology progression. I was explaining to some young guns the other day how I used to have a daytime er and that was my life. And if I lost that daytime, er I was dead. And I don't know how we weigh existed without, you know, Google maps eso we get anywhere, I don't know, but, uh but so So, Matt, you know, it's interesting to think about, you know, some of the concerns that Raphael brought up, you hear? For instance, you know, all the time. Wow. You know, I get my Amazon bill at the end of the month that zip through the roof in, But the reality is that Yeah, well, maybe you are doing more, but you're doing things that you couldn't have done before. And I think about your experience in teaching and educating. I mean, you so much more limited in terms of the resource is that you would have had to be able to educate people. So what's your experience been with With on shape and what is it enabled? >>Um, yeah, it was actually talking before we went with on shape. We had a previous CAD program, and I was talking to my vendor about it, and he let me know that we were actually one of the biggest CAD shops in the state. Because if you think about it a really big program, you know, really big company might employ. 5, 10, 15, 20 cad guys, right? I mean, when I worked for a large defense contractor, I think there were probably 20 of us as the cad guys. I now have about 300 students doing cat. So there's probably more students with more hours of cat under their belt in my building than there were when I worked for the big defense contractor. Um, but like you mentioned, uh, probably our biggest hurdle is just re sources. And so we want We want one of things I've always prided myself and trying to do in this. Programs provide students with access two tools and skills that they're going to see either in college or in the real world. So it's one of the reason we went with a big professional cad program. There are, you know, sort of K 12 oriented software and programs and things. But, you know, I want my kids coding and python and using slack and using professional type of tools on DSO when it comes to cat. That's just that That was a really hurt. I mean, you know, you could spend $30,000 on one seat of, you know, professional level cad program, and then you need a $30,000 computer to run it on if you're doing a heavy assemblies, Um and so one of my dreams And it was always just a crazy dream. And I was the way I would always pitcher in my school system and say, someday I'm gonna have a kid on a school issued chromebook in subsidized housing, on public WiFi doing professional level bad and that that was a crazy statement until a couple of years ago. So we're really excited that I literally and you know, March and you said the forced march, the forced march into, you know, modernity, March 13th kids sitting in my engineering lab that we spent a lot of money on doing cad March 14th. Those kids were at home on their school issued chromebooks on public WiFi, uh, keeping their designs going and collaborating. And then, yeah, I could go on and on about some of the things you know, the features that we've learned since then they're even better. So it's not like this is some inferior, diminished version of Academy. There's so much about it. Well, I >>wanna I wanna ask you that I may be over my skis on this, but we're seeing we're starting to see the early days of the democratization of CAD and product design. It is the the citizen engineer, I mean, maybe insulting to the engineers in the room, But but is that we're beginning to see that >>I have to believe that everything moves into the cloud. Part of that is democratization that I don't need. I can whether you know, I think artists, you know, I could have a music studio in my basement with a nice enough software package. And Aiken, I could be a professional for now. My wife's a photographer. I'm not allowed to say that I could be a professional photographer with, you know, some cloud based software, and so, yeah, I do think that's part of what we're seeing is more and more technology is moving to the cloud. >>Philip. Rafael Anything you Dad, >>I think I mean, yeah, that that that combination of cloud based cat and then three d printing that is becoming more and more affordable on ubiquitous It's truly transformative, and I think for education is fantastic. I wish when I was a kid I had the opportunity to play with those kinds of things because I was always the late things. But, you know, the in a very primitive way. So, um, I think this is a dream for kids. Teoh be able to do this. And, um, yeah, there's so many other technologies coming on, like Arduino on all of these electronic things that live kids play at home very cheaply with things that back in my day would have been unthinkable. >>So we know there's a go ahead. Philip, please. >>We had a pandemic and silver site moved to a new manufacturing facility this year. I was just on the shop floor, talking with contractors, standing 6 ft apart, pointing at things. But through it all, our CAD system was completely unruffled. Nothing stopped in our development work. Nothing stopped in our support for existing systems in the field. We didn't have to think about it. We had other server issues, but none with our, you know, engineering cad, platform and product development in support world right ahead, which was cool, but also a in that's point. I think it's just really cool what you're doing with the kids. The most interesting secondary and college level engineering work that I did was project based, taken important problem to the world. Go solve it and that is what we do here. That is what my entire career has been. And I'm super excited to see. See what your students are going to be doing, uh, in there home classrooms on their chromebooks now and what they do building on that. >>Yeah, I'm super excited to see your kids coming out of college with engineering degrees because, yeah, I think that Project based experience is so much better than just sitting in a classroom, taking notes and doing math problems on day. I think it will give the kids a much better flavor. What engineering is really about Think a lot of kids get turned off by engineering because they think it's kind of dry because it's just about the math for some very abstract abstract concept on they are there. But I think the most important thing is just that hands on a building and the creativity off, making things that you can touch that you can see that you can see functioning. >>Great. So, you know, we all know the relentless pace of technology progression. So when you think about when you're sitting down with the folks that on shape and there the customer advisor for one of the things that that you want on shape to do that it doesn't do today >>I could start by saying, I just love some of the things that does do because it's such a modern platform. And I think some of these, uh, some some platforms that have a lot of legacy and a lot of history behind them. I think we're dragging some of that behind them. So it's cool to see a platform that seemed to be developed in the modern era, and so that Z it is the Google docks. And so the fact that collaboration and version ing and link sharing is and like platform agnostic abilities, the fact that that seems to be just built into the nature of the thing so far, That's super exciting. As far as things that, uh, to go from there, Um, I don't know, >>Other than price. >>You can't say >>I >>can't say lower price. >>Yeah, so far on P. D. C. S that work with us. Really? Well, so I'm not complaining. There you there, >>right? Yeah. Yeah. No gaps, guys. Whitespace, Come on. >>We've been really enjoying the three week update. Cadence. You know, there's a new version every three weeks and we don't have to install it. We just get all the latest and greatest goodies. One of the trends that we've been following and enjoying is the the help with a revision management and release work flows. Um, and I know that there's more than on shape is working on that we're very excited for, because that's a big important part about making real hardware and supporting it in the field. Something that was cool. They just integrated Cem markup capability. In the last release that took, we were doing that anyway, but we were doing it outside of on shapes. And now we get to streamline our workflow and put it in the CAD system where We're making those changes anyway when we're reviewing drawings and doing this kind of collaboration. And so I think from our perspective, we continue to look forward. Toa further progress on that. There's a lot of capability in the cloud that I think they're just kind of scratching the surface on you, >>right? I would. I mean, you're you're asking to knit. Pick. I would say one of the things that I would like to see is is faster regeneration speed. There are a few times with convicts, necessities that regenerating the document takes a little longer than I would like. It's not a serious issue, but anyway, I I'm being spoiled, >>you know? That's good. I've been doing this a long time, and I like toe ask that question of practitioners and to me, it It's a signal like when you're nit picking and that's what you're struggling to knit. Pick that to me is a sign of a successful product, and and I wonder, I don't know, uh, have the deep dive into the architecture. But are things like alternative processors. You're seeing them hit the market in a big way. Uh, you know, maybe helping address the challenge, But I'm gonna ask you the big, chewy question now. Then we maybe go to some audience questions when you think about the world's biggest problems. I mean, we're global pandemics, obviously top of mind. You think about nutrition, you know, feeding the global community. We've actually done a pretty good job of that. But it's not necessarily with the greatest nutrition, climate change, alternative energy, the economic divides. You've got geopolitical threats and social unrest. Health care is a continuing problem. What's your vision for changing the world and how product innovation for good and be applied to some of the the problems that that you all are passionate about? Big question. Who wants toe start? >>Not biased. But for years I've been saying that if you want to solve the economy, the environment, uh, global unrest, pandemics, education is the case. If you wanna. If you want to, um, make progress in those in those realms, I think funding funding education is probably gonna pay off pretty well. >>Absolutely. And I think Stam is key to that. I mean, all of the ah lot of the well being that we have today and then industrialized countries. Thanks to science and technology, right improvements in health care, improvements in communication, transportation, air conditioning. Um, every aspect of life is touched by science and technology. So I think having more kids studying and understanding that is absolutely key. Yeah, I agree, >>Philip, you got anything to add? >>I think there's some big technical problems in the world today, Raphael and ourselves there certainly working on a couple of them. Think they're also collaboration problems and getting everybody to be able to pull together instead of pulling separately and to be able to spur the ideas on words. So that's where I think the education side is really exciting. What Matt is doing and it just kind of collaboration in general when we could do provide tools to help people do good work. Uh, that is, I think, valuable. >>Yeah, I think that's a very good point. And along those lines, we have some projects that are about creating very low cost instruments for low research settings, places in Africa, Southeast Asia, South America, so that they can do, um, um, biomedical research that it's difficult to do in those place because they don't have the money to buy the fancy lab machines that cost $30,000 an hour. Um, so we're trying to sort of democratize some of those instruments. And I think thanks to tools like Kahn shape then is easier, for example, to have a conversation with somebody in Africa and show them the design that we have and discuss the details of it with them on. But it's amazing, right to have somebody, you know, 10 time zones away, Um, looking really life in real time with you about your design and discussing the details or teaching them how to build a machine, right? Because, um, you know, they have a three D printer. You can you can just give them the design and say like, you build it yourself, uh, even cheaper than and, you know, also billing and shipping it there. Um, so all that that that aspect of it is also super important. I think for any of these efforts to improve some of the hardest part was in the world for climate change. Do you say, as you say, poverty, nutrition issues? Um, you know, availability of water. You have that project at about finding water. Um, if we can also help deploy technologies that teach people remotely how to create their own technologies or how to build their own systems that will help them solve those forms locally. I think that's very powerful. >>Yeah, the point about education is right on. I think some people in the audience may be familiar with the work of Erik Brynjolfsson and Andrew McAfee, the second machine age where they sort of put forth the premise that, uh, is it laid it out. Look, for the first time in history, machines air replacing humans from a cognitive perspective. Machines have always replaced humans, but that's gonna have an impact on jobs. But the answer is not toe protect the past from the future. The answer is education and public policy that really supports that. So I couldn't agree more. I think it's a really great point. Um, we have We do have some questions from the audience. If if we could If I can ask you guys, um, you know, this one kind of stands out. How do you see artificial intelligence? I was just talking about machine intelligence. Um, how do you see that? Impacting the design space guys trying to infuse a I into your product development. Can you tell me? >>Um, absolutely, like, we're using AI for some things, including some of these very low cost instruments that will hopefully help us diagnose certain diseases, especially this is that are very prevalent in the Third World. Um, and some of those diagnostics are these days done by thes armies of technicians that are trained to look under the microscope. But, um, that's a very slow process. Is very error prone and having machine learning systems that can to the same diagnosis faster, cheaper and also little machines that can be taken to very remote places to these villages that have no access to a fancy microscope. To look at a sample from a patient that's very powerful. And I we don't do this, but I have read quite a bit about how certain places air using a Tribune attorneys to actually help them optimize designs for parts. So you get these very interesting looking parts that you would have never thought off a person would have never thought off, but that are incredibly light ink. Earlier, strong and I have all sort of properties that are interesting thanks to artificial intelligence machine learning in particular >>yet another. The advantage you get when when your work is in the cloud I've seen. I mean, there's just so many applications that so if the radiology scan is in the cloud and the radiologist is goes to bed at night, Radiologist could come in in the morning and and say, Oh, the machine while you were sleeping was using artificial intelligence to scan these 40,000 images. And here's the five that we picked out that we think you should take a closer look at. Or like Raphael said, I can design my part. My, my, my, my, my you know, mount or bracket or whatever and go to sleep. And then I wake up in the morning. The machine has improved. It for me has made it strider strider stronger and lighter. Um And so just when your when your work is in the cloud, that's just that's a really cool advantage that you get that you can have machines doing some of your design work for you. >>Yeah, we've been watching, uh, you know, this week is this month, I guess is AWS re invent and it's just amazing to see how much effort is coming around machine learning machine intelligence. You know Amazon has sage maker Google's got, you know, embedded you no ML and big query. Uh, certainly Microsoft with Azure is doing tons of stuff and machine learning. I think the point there is that that these things will be infused in tow R and D and in tow software product by the vendor community. And you all will apply that to your business and and build value through the unique data that your collecting, you know, in your ecosystems. And and that's how you add value. You don't have to be necessarily, you know, developers of artificial intelligence, but you have to be practitioners to apply that. Does that make sense to you, Philip? >>Yeah, absolutely. And I think your point about value is really well chosen. We see AI involved from the physics simulations all the way up to interpreting radiation data, and that's where the value question, I think, is really important because it's is the output of the AI giving helpful information that the people that need to be looking at it. So if it's curating a serious of radiation alert, saying, Hey, like these air the anomalies. You need to look at eyes it, doing that in a way that's going to help a good response on. In some cases, the II is only as good as the people. That sort of gave it a direction and turn it loose. And you want to make sure that you don't have biases or things like that underlying your AI that they're going to result in less than helpful outcomes coming from it. So we spend quite a lot of time thinking about how do we provide the right outcomes to people who are who are relying on our systems? >>That's a great point, right? Humans air biased and humans build models, so models are inherently biased. But then the software is hitting the market. That's gonna help us identify those biases and help us, you know? Of course. Correct. So we're entering Cem some very exciting times, guys. Great conversation. I can't thank you enough for spending the time with us and sharing with our audience the innovations that you're bringing to help the world. So thanks again. >>Thank you so much. >>Thank you. >>Okay. Welcome. Okay. When we come back, John McElheny is gonna join me. He's on shape. Co founder. And he's currently the VP of strategy at PTC. He's gonna join the program. We're gonna take a look at what's next and product innovation. I'm Dave Volonte and you're watching innovation for good on the Cube, the global leader. Digital technology event coverage. We'll be right back. >>Okay? Okay. Yeah. Okay. >>From around >>the globe, it's the Cube. Presenting innovation for good. Brought to you by on shape. >>Okay, welcome back to innovation. For good. With me is John McElheny, who is one of the co founders of On Shape and is now the VP of strategy at PTC. John, it's good to see you. Thanks for making the time to come on the program. Thanks, Dave. So we heard earlier some of the accomplishments that you've made since the acquisition. How has the acquisition affected your strategy? Maybe you could talk about what resource is PTC brought to the table that allowed you toe sort of rethink or evolve your strategy? What can you share with us? >>Sure. You know, a year ago, when when John and myself met with Jim Pepperman early on is we're we're pondering. Started joining PTC one of things became very clear is that we had a very clear shared vision about how we could take the on shape platform and really extended for, for all of the PTC products, particular sort of their augmented reality as well as their their thing works or the i o. T business and their product. And so from the very beginning there was a clear strategy about taking on shape, extending the platform and really investing, um, pretty significantly in the product development as well as go to market side of things, uh, toe to bring on shape out to not only the PTC based but sort of the broader community at large. So So So PTC has been a terrific, terrific, um, sort of partner as we've we've gonna go on after this market together. Eso We've added a lot of resource and product development side of things. Ah, lot of resource and they go to market and customer success and support. So, really, on many fronts, that's been both. Resource is as well a sort of support at the corporate level from from a strategic standpoint and then in the field, we've had wonderful interactions with many large enterprise customers as well as the PTC channels. So it's been really a great a great year. >>Well, and you think about the challenges of in your business going to SAS, which you guys, you know, took on that journey. You know, 78 years ago. Uh, it's not trivial for a lot of companies to make that transition, especially a company that's been around as long as PTC. So So I'm wondering how much you know, I was just asking you How about what PCP TC brought to the table? E gotta believe you're bringing a lot to the table to in terms of the mindset, uh, even things is, is mundane is not the right word, but things like how you compensate salespeople, how you interact with customers, the notion of a service versus a product. I wonder if you could address >>that. Yeah, it's a it's a really great point. In fact, after we had met Jim last year, John and I one of the things we walked out in the seaport area in Boston, one of things we sort of said is, you know, Jim really gets what we're trying to do here and and part of let me bring you into the thinking early on. Part of what Jim talked about is there's lots of, you know, installed base sort of software that's inside of PTC base. That's helped literally thousands of customers around the world. But the idea of moving to sass and all that it entails both from a technology standpoint but also a cultural standpoint. Like How do you not not just compensate the sales people as an example? But how do you think about customer success? In the past, it might have been that you had professional services that you bring out to a customer, help them deploy your solutions. Well, when you're thinking about a SAS based offering, it's really critical that you get customers successful with it. Otherwise, you may have turned, and you know it will be very expensive in terms of your business long term. So you've got to get customers success with software in the very beginning. So you know, Jim really looked at on shape and he said that John and I, from a cultural standpoint, you know, a lot of times companies get acquired and they've acquired technology in the past that they integrate directly into into PTC and then sort of roll it out through their products, are there just reached channel, he said. In some respects, John John, think about it as we're gonna take PTC and we want to integrate it into on shape because we want you to share with us both on the sales side and customer success on marketing on operations. You know all the things because long term, we believe the world is a SAS world, that the whole industry is gonna move too. So really, it was sort of an inverse in terms of the thought process related to normal transactions >>on That makes a lot of sense to me. You mentioned Sharon turns the silent killer of a SAS company, and you know, there's a lot of discussion, you know, in the entrepreneurial community because you live this, you know what's the best path? I mean today, You see, you know, if you watch Silicon Valley double, double, triple triple, but but there's a lot of people who believe, and I wonder, if you come in there is the best path to, you know, in the X Y axis. If if it's if it's uh, growth on one and retention on the other axis. What's the best way to get to the upper right on? Really? The the best path is probably make sure you've nailed obviously the product market fit, But make sure that you can retain customers and then throw gas on the fire. You see a lot of companies they burn out trying to grow too fast, but they haven't figured out, you know that. But there's too much churn. They haven't figured out those metrics. I mean, obviously on shape. You know, you were sort of a pioneer in here. I gotta believe you've figured out that customer retention before you really, You know, put the pedal to the >>metal. Yeah, and you know, growth growth can mask a lot of things, but getting getting customers, especially the engineering space. Nobody goes and sits there and says, Tomorrow we're gonna go and and, you know, put 100 users on this and and immediately swap out all of our existing tools. These tools are very rich and deep in terms of capability, and they become part of the operational process of how a company designs and builds products. So any time anybody is actually going through the purchasing process. Typically, they will run a try along or they'll run a project where they look at. Kind of What? What is this new solution gonna help them dio. How are we gonna orient ourselves for success? Longer term. So for us, you know, getting new customers and customer acquisition is really critical. But getting those customers to actually deploy the solution to be successful with it. You know, we like to sort of, say, the marketing or the lead generation and even some of the initial sales. That's sort of like the Kindle ing. But the fire really starts when customers deploy it and get successful. The solution because they bring other customers into the fold. And then, of course, if they're successful with it, you know, then in fact, you have negative turn which, ironically, means growth in terms of your inside of your install. Bates. >>Right? And you've seen that with some of the emerging, you know, SAS companies, where you're you're actually you know, when you calculate whatever its net retention or renew ALS, it's actually from a dollar standpoint. It's up in the high nineties or even over 100%. >>So >>and that's a trend we're gonna continue. See, I >>wonder >>if we could sort of go back. Uh, and when you guys were starting on shape, some of the things that you saw that you were trying to strategically leverage and what's changed, you know, today we were talking. I was talking to John earlier about in a way, you kinda you kinda got a blank slate is like doing another startup. >>You're >>not. Obviously you've got installed base and customers to service, but But it's a new beginning for you guys. So one of the things that you saw then you know, cloud and and sas and okay, but that's we've been there, done that. What are you seeing? You know today? >>Well, you know, So So this is a journey, of course, that that on shape on its own has gone through it had I'll sort of say, you know, several iterations, both in terms of of of, you know, how do you How do you get customers? How do you How do you get them successful? How do you grow those customers? And now that we've been part of PTC, the question becomes okay. One, There is certainly a higher level of credibility that helps us in terms of our our megaphone is much bigger than it was when we're standalone company. But on top of that now, figuring out how to work with their channel with their direct sales force, you know, they have, um, for example, you know, very large enterprises. Well, many of those customers are not gonna go in forklift out their existing solution to replace it with with on shape. However, many of them do have challenges in their supply chain and communications with contractors and vendors across the globe. And so, you know, finding our fit inside of those large enterprises as they extend out with their their customers is a very interesting area that we've really been sort of incremental to to PTC. And then, you know, they they have access to lots of other technology, like the i o. T business. And now, of course, the augmented reality business that that we can bring things to bear. For example, in the augmented reality world, they've they've got something called expert capture. And this is essentially imagine, you know, in a are ah, headset that allows you to be ableto to speak to it, but also capture images still images in video. And you could take somebody who's doing their task and capture literally the steps that they're taking its geo location and from their builds steps for new employees to be, we'll learn and understand how todo use that technology to help them do their job better. Well, when they do that, if there is replacement products or variation of of some of the tools that that they built the original design instruction set for they now have another version. Well, they have to manage multiple versions. Well, that's what on shape is really great at doing and so taking our technology and helping their solutions as well. So it's not only expanding our customer footprint, it's expanding the application footprint in terms of how we can help them and help customers. >>So that leads me to the tam discussion and again, as part of your strategist role. How do you think about that? Was just talking to some of your customers earlier about the democratization of cat and engineering? You know, I kind of joked, sort of like citizen engineering, but but so that you know, the demographics are changing the number of users potentially that can access the products because the it's so much more of a facile experience. How are you thinking about the total available market? >>It really is a great question, You know, it used to be when you when you sold boxes of software, it was how many engineers were out there. And that's the size of the market. The fact that matter is now when, When you think about access to that information, that data is simply a pane of glass. Whether it's a computer, whether it's a laptop, UH, a a cell phone or whether it's a tablet, the ability to to use different vehicles, access information and data expands the capabilities and power of a system to allow feedback and iteration. I mean, one of the one of the very interesting things is in technology is when you can take something and really unleash it to a larger audience and builds, you know, purpose built applications. You can start to iterate, get better feedback. You know there's a classic case in the clothing industry where Zara, you know, is a fast sort of turnaround. Agile manufacturer. And there was a great New York Times article written a couple years ago. My wife's a fan of Zara, and I think she justifies any purchases by saying, You know, Zara, you gotta purchase it now. Otherwise it may not be there the next time. Yet you go back to the store. They had some people in a store in New York that had this woman's throw kind of covering Shaw. And they said, Well, it would be great if we could have this little clip here so we can hook it through or something. And they sent a note back toe to the factory in Spain, and literally two weeks later they had, you know, 4000 of these things in store, and they sold out because they had a closed loop and iterative process. And so if we could take information and allow people access in multiple ways through different devices and different screens, that could be very specific information that, you know, we remove a lot of the engineering data book, bring the end user products conceptually to somebody that would have had to wait months to get the actual physical prototype, and we could get feedback well, Weaken have a better chance of making sure whatever product we're building is the right product when it ultimately gets delivered to a customer. So it's really it's a much larger market that has to be thought of rather than just the kind of selling A boxes software to an engineer. >>That's a great story. And again, it's gonna be exciting for you guys to see that with. The added resource is that you have a PTC, Um, so let's talk. I promise people we wanna talk about Atlas. Let's talk about the platform. A little bit of Atlas was announced last year. Atlas. For those who don't know it's a SAS space platform, it purports to go beyond product lifecycle management and you You're talking cloud like agility and scale to CAD and product design. But John, you could do a better job than I. What do >>we need to know about Atlas? Well, I think Atlas is a great description because it really is metaphorically sort of holding up all of the PTC applications themselves. But from the very beginning, when John and I met with Jim, part of what we were intrigued about was that he shared a vision that on shape was more than just going to be a cad authoring tool that, in fact, you know, in the past these engineering tools were very powerful, but they were very narrow in their purpose and focus. And we had specialty applications to manage the versions, etcetera. What we did in on shape is we kind of inverted that thinking. We built this collaboration and sharing engine at the core and then kind of wrap the CAD system around it. But that collaboration sharing and version ING engine is really powerful. And it was that vision that Jim had that he shared that we had from the beginning, which was, how do we take this thing to make a platform that could be used for many other applications inside of inside of any company? And so not only do we have a partner application area that is is much like the APP store or Google play store. Uh, that was sort of our first Stan Shih ation of this. This this platform. But now we're extending out to broader applications and much meatier applications. And internally, that's the thing works in the in the augmented reality. But there'll be other applications that ultimately find its way on top of this platform. And so they'll get all the benefits of of the collaboration, sharing the version ing the multi platform, multi device. And that's an extremely extremely, um, strategic leverage point for the company. >>You know, it's interesting, John, you mentioned the seaport before. So PTC, for those who don't know, built a beautiful facility down at the Seaport in Boston. And, of course, when PTC started, you know, back in the mid 19 eighties, there was nothing at the seaport s. >>So it's >>kind of kind of ironic, you know, we were way seeing the transformation of the seaport. We're seeing the transformation of industry and of course, PTC. And I'm sure someday you'll get back into that beautiful office, you know? Wait. Yeah, I'll bet. And, uh and but I wanna bring this up because I want I want you to talk about the future. How you how you see that our industry and you've observed this has moved from very product centric, uh, plat platform centric with sass and cloud. And now we're seeing ecosystems form around those products and platforms and data flowing through the ecosystem powering, you know, new innovation. I wonder if you could paint a picture for us of what the future looks like to you from your vantage point. >>Yeah, I think one of the key words you said there is data because up until now, data for companies really was sort of trapped in different applications. And it wasn't because people were nefarious and they want to keep it limited. It was just the way in which things were built. And, you know, when people use an application like on shape, what ends up happening is there their day to day interaction and everything that they do is actually captured by the platform. And, you know, we don't have access to that data. Of course it's it's the customer's data. But as as an artifact of them using the system than doing their day to day job, what's happening is they're creating huge amounts of information that can then be accessed and analyzed to help them both improve their design process, improve their efficiencies, improve their actual schedules in terms of making sure they can hit delivery times and be able to understand where there might be roadblocks in the future. So the way I see it is companies now are deploying SAS based tools like on shape and an artifact of them. Using that platform is that they have now analytics and tools to better understand and an instrument and manage their business. And then from there, I think you're going to see, because these systems are all you know extremely well. Architected allow through, you know, very structured AP. I calls to connect other SAS based applications. You're gonna start seeing closed loop sort of system. So, for example, people design using on shape, they end up going and deploying their system or installing it, or people use the end using products. People then may call back into the customers support line and report issues, problems, challenges. They'll be able to do traceability back to the underlying design. They'll be able to do trend analysis and defect analysis from the support lines and tie it back and closed loop the product design, manufacture, deployment in the field sort of cycles. In addition, you can imagine there's many things that air sort of as designed. But then when people go on site and they have to install it. There's some alterations modifications. Think about think about like a large air conditioning units for buildings. You go and you go to train and you get a large air conditioning unit that put up on top of building with a crane. They have to build all kinds of adaptors to make sure that that will fit inside of the particulars of that building. You know, with on shape and tools like this, you'll be able to not only take the design of what the air conditioning system might be, but also the all the adapter plates, but also how they installed it. So it sort of as designed as manufactured as stalled. And all these things can be traced, just like if you think about the transformation of customer service or customer contacts. In the early days, you used to have tools that were PC based tools called contact management solution, you know, kind of act or gold mine. And these were basically glorified Elektronik role in Texas. It had a customer names and they had phone numbers and whatever else. And Salesforce and Siebel, you know, these types of systems really broadened out the perspective of what a customer relationship? Waas. So it wasn't just the contact information it was, you know, How did they come to find out about you as a company? So all of the pre sort of marketing and then kind of what happens after they become a customer and it really was a 3 60 view. I think that 3 60 view gets extended to not just to the customers, but also tools and the products they use. And then, of course, the performance information that could come back to the manufacturer. So, you know, as an engineer, one of the things you learn about with systems is the following. And if you remember, when the CD first came out CDs that used to talk about four times over sampling or eight times over sampling and it was really kind of, you know, the fidelity the system. And we know from systems theory that the best way to improve the performance of a system is to actually have more feedback. The more feedback you have, the better system could be. And so that's why you get 16 60 for example, etcetera. Same thing here. The more feedback we have of different parts of a company that a better performance, The company will be better customer relationships. Better, uh, overall financial performance as well. So that's that's the view I have of how these systems all tied together. >>It's a great vision in your point about the data is I think right on. It used to be so fragmented in silos, and in order to take a system view, you've gotta have a system view of the data. Now, for years, we've optimized maybe on one little component of the system and that sometimes we lose sight of the overall outcome. And so what you just described, I think is, I think sets up. You know very well as we exit. Hopefully soon we exit this this covert era on John. I hope that you and I can sit down face to face at a PTC on shape event in the near term >>in the seaport in the >>seaport would tell you that great facility toe have have an event for sure. It >>z wonderful >>there. So So John McElhinney. Thanks so much for for participating in the program. It was really great to have you on, >>right? Thanks, Dave. >>Okay. And I want to thank everyone for participating. Today we have some great guest speakers. And remember, this is a live program. So give us a little bit of time. We're gonna flip this site over toe on demand mode so you can share it with your colleagues and you, or you can come back and and watch the sessions that you heard today. Uh, this is Dave Volonte for the Cube and on shape PTC. Thank you so much for watching innovation for good. Be well, Have a great holiday. And we'll see you next time. Yeah.

>>from around the globe. It's the Cube presenting innovation for good. Brought to >>you by on shape. Okay, welcome back to innovation. For good. With me is John McElheny, who is one of the co founders of on Shape and is now the VP of strategy at PTC. John, good to see you. Thanks for making the time to come on the program. Thanks, Dave. So we heard earlier some of the accomplishments that you've made since the acquisition. How has the acquisition affected your strategy? Maybe you could talk about what resource is PTC brought to the table that allowed you toe sort of rethink or evolve your strategy? What can you share with us? >>Sure. You know, a year ago when John and myself met with Jim Hempleman early on is we're we're pondering started joining PTC. One of things became very clear is that we had a very clear shared vision about how we could take the on shape platform and really extended for for all of the PTC products, particular sort of their augmented reality as well as their their thing works or the i o. T business and their product. And so from the very beginning, there was a clear strategy about taking on shape, extending the platform and really investing, um, pretty significantly in the product development as well as go to market side of things, uh, toe to bring on shape out to not only the PTC based but sort of the broader community at large. So So So PTC has been terrific. Terrific, um, sort of partner as we've we've gonna go on after this market together. Eso we've added a lot of resource and product development side of things. Ah, lot of resource and to go to market and customer success and support. So really, on many fronts, that's with both resource is, as well a sort of support at the corporate level from from a strategic standpoint and then in the field, we've had wonderful interactions with many large enterprise customers as well as the PTC channels. So it's been really a great a great year. >>Well, and you think about the challenges of your business going to sas what you guys, you know, took on that journey, you know, 78 years ago. Uh, it's not trivial for a lot of companies to make that transition, especially company. That's been around as long as PTC. So So I'm wondering how much you know, I was just asking you what PC PTC brought the table. E gotta believe you're bringing a lot to the table to in terms of the mindset, uh, even things is, is mundane is not the right word. But things like how you compensate sales people, how you interact with customers, the notion of a service versus a product. I wonder if you could address >>that. Yeah, it's a It's a really great point. In fact, after we had met Jim last year, John and I one of the things we walked out in the seaport area in Boston one of things we sort of said is you know, Jim really gets what we're trying to do here and and part of let me bring you into the thinking early on. Part of what Jim talked about is there's lots of, you know, installed base sort of software that's inside of PTC base. That helped literally thousands of customers around the world. But the idea of moving to sass and all that it entails both from a technology standpoint, but also a cultural standpoint, like how do you not not just compensate the sales people as an example? But how do you think about customers? Success? In the past, it might have been that you had professional services that you bring out to a customer, help them deploy your solutions. Well, when you're thinking about a SAS based offering, it's really critical that you get customers successful with it. Otherwise, you may have turned, and you know it will be very expensive in terms of your business long term. So you've got to get customers success with software in the very beginning. So you know, Jim really looked at on shape and he said that John and I from a cultural standpoint, you know, a lot of times companies get acquired and they've acquired technology in the past that they integrate directly into into PTC and then sort of roll it out through their products or their distribution channels, he said. In some respects, John John, think about it as we're gonna take PTC and we want to integrate it into on shape because we want you to share with us both on the sales side and customer success on marketing on operations, you know, all the things because long term, we believe the world is a SAS world, that the whole industry is gonna move too. So, really, it was sort of an inverse in terms of the thought process related to normal transactions >>on that makes a lot of sense to me. You mentioned Sharon turns the silent killer of a SAS company. And you know, there's a lot of discussion, you know, in the entrepreneurial community because you live this, you know, what's the best path? I mean, today, you see, you know, you you watch Silicon Valley double, double, triple triple. But but there's a lot of people who believe, and I wonder, if you come in there is the best path to, you know, in the X Y axis. If if it's if it's, uh, growth on one and retention on the other axis, what's the best way to get to the upper right on? Really, the the best path is probably make sure you've nailed obviously the product market fit, but make sure that you can retain customers and then throw gas on the fire. You see a lot of companies they burn out trying to grow too fast, but they haven't figured out, you know that. But there's too much churn. They haven't figured out those metrics. I mean, obviously on shape. You know, you were sort of a pioneer in here. I gotta believe you've figured out that customer retention before you really? You know, put the pedal to the >>metal. Yeah. And you know, growth growth can mask a lot of things, but getting getting customers, especially the engineering space. Nobody goes and sits there and says, Tomorrow we're gonna go and and, you know, put 100 users on this and and immediately swap out all of our existing tools. These tools are very rich and deep in terms of capability, and they become part of the operational process of how a company designs and builds products. So any time anybody is actually going through the purchasing process, typically they will run a try along or they'll run a project where they look at Kind of What? What is this new solution gonna help them dio. How are we gonna orient ourselves for success? Longer term. So for us, you know, getting new customers and customer acquisition is really critical. But getting those customers to actually deploy the solution to be successful with it. You know, we like to sort of, say, the marketing or the lead generation and even some of the initial sales. That's sort of like the Kindle ing. But the fire really starts when customers deploy it and get successful with the solution because they bring other customers into the fold. And then, of course, if they're successful with it, you know, then in fact, you have negative turn which, ironically, means growth in terms of your inside of your install Bates. >>Right? And you've seen that with some of the emerging, you know, SAS companies, where you're you're actually you know, when you calculate whatever its net retention or renew ALS, it's actually from a dollar standpoint that's up in the high nineties or even over 100% >>so and >>that's a trend we're gonna continue. See, I wonder if we could sort of go back. Uh, and when you guys were starting on shape, some of the things that you saw that you were trying to strategically leverage and what's changed, you know, today we were talking. I was talking to John earlier about in a way, you kinda you kinda got a blank slate is like doing another startup. You're not. Obviously you've got installed base and customers to service, but but it's a new beginning for you guys. So one of the things that you saw then you know, cloud and and sas and okay, but that's we've been there, done that. What are you seeing? You know, today? >>Well, you know, So So this is a journey, of course, that that on shape on its own has gone through. And had, I'll sort of say, you know, several iterations, both in terms of of of, you know, how do you How do you get customers? How do you How do you get them successful? How do you grow those customers? And now that we've been part of PTC, the question becomes okay, One, there is certainly a higher level of credibility that helps us in terms of our our megaphone is much bigger than it was when we're standalone company. But on top of that now, figuring out how to work with their channel with their direct sales force, you know, they have, um, for example, you know, very large enterprises. Well, many of those customers are not gonna go in forklift out their existing solution to replace it with with on shape. However, many of them do have challenges in their supply chain and communications with contractors and vendors across the globe. And so, you know, finding our fit inside of those large enterprises as they extend out with their their customers is a very interesting area that we've really been sort of incremental to to PTC. And then, you know, they they have access to lots of other technology, like the i O. T business. And now, of course, the augmented reality business that that we can bring things to bear. For example, in the augmented reality world they've they've got something called expert capture. And this is essentially imagined, you know, in a are, ah, headset that allows you to be ableto to speak to it but also capture images, still images in video, and you could take somebody who's doing their task and capture literally the steps that they're taking its geo location and from their builds steps for new employees. We'll learn and understand how todo use that technology to help them do their job better. Well, when they do that if there is replacement products or variation of of some of the tools that that they built the original design instruction set for they now have another version. Well, they have to manage multiple versions. Well, that's what on shape is really great at doing and so taking our technology and helping their solutions as well. So it's not only expanding our customer footprint, it's expanding the application footprint in terms of how we can help them and help customers. >>So that leads me to the tam discussion. And again, it was part of your strategist role. How do you think about that? Was just talking to some of your customers earlier about the democratization of cat and engineering. You know, I kind of joked, sort of like citizen engineering, but but so that, you know, the demographics are changing the number of users potentially that can access the products because the it's so much more of a facile experience. How are you thinking about the total available market? >>It really is a great question, you know, It used to be when you when you sold boxes of software, it was how many engineers were out there, and that's the size of the market. The fact that matter is now when, When you think about access to that information, that data is simply a pane of glass. Whether it's a computer, whether it's a laptop, uh, a cell phone or whether it's a tablet, the ability to to use different vehicles, access information and data expands the capabilities and power of a system to allow feedback and iteration. I mean, one of the one of the very interesting things is in technology is when you can take something and really unleash it to a larger audience and builds, you know, purpose built applications. You can start to iterate, get better feedback. You know, there's a classic case in the clothing industry where Zara, you know, is a fast, sort of turnaround agile manufacturer. And there was a great New York Times article written a couple years ago. My wife's a fan of Zara, and I think she justifies any purchases by saying, you know, was Are you gotta purchase it now. Otherwise it may not be there the next time. Yet you go back to the store. They had some people in the store in New York that had this woman's throw kind of covering Shaw, and they said, Well, it would be great if we could have this little clip here so we could hook it through or something. And they sent a note back toe to the factory in Spain and literally two weeks later they had, you know, 4000 of these things in store, and they sold out because they had a closed loop and iterative process. And so if we could take information and allow people access in multiple ways through different devices and different screens, that could be very specific information that, you know, we remove a lot of the engineering data book, bring the end user products conceptually to somebody that would have had to wait months to get the actual physical prototype, and we could get feedback. Well, Weaken have a better chance of making sure whatever product we're building is the right product when it ultimately gets delivered to a customer. So it's really it's a much larger market that has to be thought of rather than just the kind of selling a boxes off where to an engineer, >>that's a great story, and and again, it's gotta be exciting for you guys to see that on day with the added resource is that you have a PTC eso. Let's talk. I promise people we want to talk about Atlas. Let's talk about the platform. A little bit of Atlas was announced last year. Atlas. For those who don't know it's a SAS space platform, it purports to go beyond product lifecycle management and you you're talking cloudlike agility and scale to CAD and product design. But, John, you could do a better job than I. What do >>we need to know about Atlas? Well, I think Atlas is a great description because it really is metaphorically, sort of holding up all of the PTC applications themselves. But from the very beginning, when John and I met with Jim, part of what we were intrigued about was that he shared a vision that on shape was more than just going to be a cad authoring tool that, in fact, you know, in the past, these engineering tools were very powerful, but they were very narrow in their purpose and focus, and we had specialty applications to manage diversions, etcetera. What we did in on shape is we kind of inverted that thinking we built this collaboration and sharing engine at the core and then kind of wrap the CAD system around it. But that collaboration sharing and version ING engine is really powerful. And it was that vision that Jim had that he shared that we had from the beginning, which was, how do we take this thing to make a platform that could be used for many other applications inside of inside of any company? And so not only do we have a partner application area that is is much like the APP store or Google play store. Uh, that was sort of our first misty initiation of this this this platform. But now we're extending out to broader applications and much meatier applications. And internally, that's the thing works in the in the augmented reality. But there'll be other applications that ultimately find its way on top of this platform, and so they'll get all the benefits of of the collaboration, sharing the version ing the multi platform multi device. And that's an extremely extremely, um, strategic leverage point for the company. >>You know, it's interesting, John, you mentioned the seaport before, So PTC For those who don't know built a beautiful facility down at the seaport in Boston. And of course, when PTC started back in the mid 19 eighties, this there was nothing at the seaport s. >>So it's >>kind of kind of ironic, you know, we were way seeing the transformation of the seaport. We're seeing the transformation of industry and of course, PTC. And I'm sure someday you'll get back into that beautiful office, you know? Wait. Yeah, I'll Bet. And, uh and but I wanna bring this up because I want I want you to talk about the future. How you how you see that our industry and you've observed this has moved from very product centric, uh, plat platform centric with sass and cloud. And now we're seeing ecosystems form around those products and platforms and in data flowing through the ecosystem, powering you new innovation. I wonder if you could paint a picture for us of what the future looks like to you from your vantage point. >>Yeah, I think one of the key words you said there is data because up until now, data for companies really was sort of trapped in different applications. And it wasn't because people with nefarious and they want to keep it limited. It was just the way in which things were built, and you know, when people use an application like on shape, what ends up happening is there their day to day interactions and everything that they dio is actually captured by the platform. And you know, we don't have access to that data. Of course it's it's the customer's data. But as as an artifact of them using the system than doing their day to day job, what's happening is they're creating huge amounts of information that can then be accessed and analyzed to help them both improve their design process, improve their efficiencies, improve their actual schedules in terms of making sure they can hit delivery times and be able to understand where there might be roadblocks in the future. So the way I see it is, companies now are deploying SAS based tools like an shape and an artifact of them. Using that platform is that they have now analytics and tools to better understand and an instrument and manage their business. And then from there, I think you're going to see, because these systems are all you know extremely well. architected allow through, you know, very structured AP. I calls to connect other SAS based applications. You're gonna start seeing closed loop sort of system. So, for example, people design using on shape. They end up going and deploying their system or installing it, or people use the end using products. People then may call back into the customers support line and report issues problems, challenges. They'll be able to do traceability back to the underlying design. They'll be able to do trend analysis and defect analysis from the support lines and tie it back and closed loop the product design, manufacture, deployment in the field sort of cycles. In addition, you can imagine there's many things that air sort of as designed. But then when people go on site and they have to install it, there's some alterations modifications. Think about think about like a large air conditioning units for buildings. You go and you go to train and you get a large air conditioning unit that put up on the top of building with a crane. They have to build all kinds of adaptors to make sure that that will fit inside of of of the particulars of that building. You know, with on shape and tools like this, you'll be able to not only take the design of what the air conditioning system might be, but also the all the adapter plates, but also how they installed it. So it sort of as designed as manufactured as stalled. And all these things can be traced just like if you think about the transformation of customer service or customer contacts. In the early days, you used to have tools that were PC based tools called contact management solution, you know, kind of act or gold mine. And these were basically glorified Elektronik role in Texas. It had a customer names, and they had phone numbers and whatever else. And Salesforce and Siebel, these types of systems really broadened out the perspective of what a customer relationship waas. So it wasn't just the contact information it was, you know, How did they come to find out about you as a company? So all the pre sort of marketing and then kind of what happens after they become a customer and it really was a 3 60 view. I think that 3 60 view gets extended to not just to the customers, but also tools and the products they use. And then, of course, the performance information that could come back to the manufacturer. So, you know, as an engineer, one of the things you learn about with systems is the following. And if you remember, when the 501st came out CDs that used to talk about four times over sampling or eight times over sampling and it was really kind of, you know, the fidelity the system. And we know from systems theory that the best way to improve the performance of a system is to actually have more feedback. The more feedback you have, the better system could be. And so that's why you got 16 60 for example, etcetera. Same thing here. The more feedback we have of different parts of a company that a better performance. The company will be better customer relationships, better overall financial performance as well. So that's that's the view I have of how these systems all tied together. >>The great vision in your point about the data is, I think, right on. It used to be so fragmented in silos, and in order to take a system view, you've gotta have a system view of the data. Uh, for years we've optimized maybe on one little component of the system and that sometimes we lose sight of the overall outcome. And so what you just described, I think is, I think sets up. You know very well as we exit. Hopefully soon we exit this this covert era on John. I hope that you and I can sit down face to face at a PTC on shape event in the near term. Who's >>in the seaport in the >>seaport Would tell you that great facility toe have have an event for sure. It >>z wonderful >>there. So So, John McElhinney. Thanks so much for for participating in the program. It was really great to have you on. >>Right. Thanks, Dave. >>Okay. And I want to thank everyone for participating. Today. We have some great guest speakers. And remember, this is a live program, so give us a little bit of time. We're gonna flip this site over to on demand mode so you can share it with your colleagues and you, or you can come back and and watch the sessions that you heard today. Uh, this is Dave Volonte for the Cube and on shape PTC. Thank you so much for watching innovation for good. Be well, have a great holiday and we'll see you next time.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel, AWS and our community partners. >>Hey, welcome back already, Jeffrey here with the Cube coming to you from Palo Alto studios today for our ongoing coverage of aws reinvent 2020. It's a digital event like everything else in 2020. We're excited for our next segment, so let's jump into it. We're joined in our next segment by Andrew Rafa. He is the principal and zero trust offering lead at the Light and Touche LLP. Andrew, great to see you. >>Thanks for having me. >>Absolutely. And joining him is Robbie Deval. He is the AWS cyber risk lead for Deloitte and Touche LLP. Robbie, Good to see you as well. >>Hey, Jeff, good to see you as well. >>Absolutely. So let's jump into it. You guys are all about zero trust and I know a little bit about zero trust I've been going to are safe for a number of years and I think one of the people that you like to quote analysts chase Cunningham from Forrester, who's been doing a lot of work around zero trust. But for folks that aren't really familiar with it. Andrew, why don't you give us kind of the 101? About zero trust. What is it? What's it all about? And why is it important? >>Sure thing. So is your trust is, um, it's a conceptual framework that helps organizations deal with kind of the ubiquitous nature of modern enterprise environments. Um, and then its course. Your trust commits to a risk based approach to enforcing the concept of least privileged across five key pillars those being users, workloads, data networks and devices. And the reason we're seeing is your trust really come to the forefront is because modern enterprise environments have shifted dramatically right. There is no longer a defined, clearly defined perimeter where everything on the outside is inherently considered, considered untrusted, and everything on the inside could be considered inherently trusted. There's a couple what I call macro level drivers that are, you know, changing the need for organizations to think about securing their enterprises in a more modern way. Um, the first macro level driver is really the evolving business models. So as organizations are pushing to the cloud, um, maybe expanding into into what they were considered high risk geography is dealing with M and A transactions and and further relying on 3rd and 4th parties to maintain some of their critical business operations. Um, the data and the assets by which the organization, um transact are no longer within the walls of the data center. Right? So, again, the perimeter is very much dissolved. The second, you know, macro level driver is really the shifting and evolving workforce. Um, especially given the pandemic and the need for organizations to support almost an entirely remote workforce nowadays, um, organizations, they're trying to think about how they revamp their traditional VPN technologies in order to provide connectivity to their employees into other third parties that need to get access to, uh, the enterprise. So how do we do so in a secure, scalable and reliable way and then the last kind of macro level driver is really the complexity of the I t landscape. So, you know, in legacy environment organizations on Lee had to support managed devices, and today you're seeing the proliferation of unmanaged devices, whether it be you know, B y o d devices, um, Internet of things, devices or other smart connected devices. So organizations are now, you know, have the need to provide connectivity to some of these other types of devices. But how do you do so in a way that, you know limits the risk of the expanding threat surface that you might be exposing your organization to by supporting from these connected devices? So those are some three kind of macro level drivers that are really, you know, constituting the need to think about security in a different >>way. Right? Well, I love I downloaded. You guys have, ah zero trust point of view document that that I downloaded. And I like the way that you you put real specificity around those five pillars again users, workloads, data networks and devices. And as you said, you have to take this kind of approach that it's kind of on a need to know basis. The less, you know, at kind of the minimum they need to know. But then, to do that across all of those five pillars, how hard is that to put in place? I mean, there's a There's a lot of pieces of this puzzle. Um, and I'm sure you know, we talk all the time about baking security and throughout the entire stack. How hard is it to go into a large enterprise and get them started or get them down the road on this zero trust journey? >>Yeah. So you mentioned the five pillars. And one thing that we do in our framework because we put data at the center of our framework and we do that on purpose because at the end of the day, you know, data is the center of all things. It's important for an organization to understand. You know what data it has, what the criticality of that data is, how that data should be classified and the governance around who and what should access it from a no users workloads, uh, networks and devices perspective. Um, I think one misconception is that if an organization wants to go down the path of zero trust, there's a misconception that they have to rip out and replace everything that they have today. Um, it's likely that most organizations are already doing something that fundamentally aligned to the concept of these privilege as it relates to zero trust. So it's important to kind of step back, you know, set a vision and strategy as faras What it is you're trying to protect, why you're trying to protect it. And what capability do you have in place today and take more of an incremental and iterative approach towards adoption, starting with some of your kind of lower risk use cases or lower risk parts of your environment and then implementing lessons learned along the way along the journey? Um, before enforcing, you know more of those robust controls around your critical assets or your crown jewels, if you >>will. Right? So, Robbie, I want to follow up with you, you know? And you just talked about a lot of the kind of macro trends that are driving this and clearly covert and work from anywhere is a big one. But one of the ones that you didn't mention that's coming right around the pike is five g and I o t. Right, so five g and and I o. T. We're going to see, you know, the scale and the volume and the mass of machine generated data, which is really what five g is all about, grow again exponentially. We've seen enough curves up into the right on the data growth, but we've barely scratched the surface and what's coming on? Five G and I o t. How does that work into your plans? And how should people be thinking about security around this kind of new paradigm? >>Yeah, I think that's a great question, Jeff. And as you said, you know, I UT continues to accelerate, especially with the recent investments and five G that you know pushing, pushing more and more industries and companies to adopt a coyote. Deloitte has been and, you know, helping our customers leverage a combination of these technologies cloud, Iot, TML and AI to solve their problems in the industry. For instance, uh, we've been helping restaurants automate their operations. Uh, we've helped automate some of the food safety audit processes they have, especially given the code situation that's been helping them a lot. We are currently working with companies to connect smart, wearable devices that that send the patient vital information back to the cloud. And once it's in the cloud, it goes through further processing upstream through applications and data. Let's etcetera. The way we've been implementing these solutions is largely leveraging a lot of the native services that AWS provides, like device manager that helps you onboard hundreds of devices and group them into different categories. Uh, we leveraged device Defender. That's a monitoring service for making sure that the devices are adhering to a particular security baseline. We also have implemented AWS green grass on the edge, where the device actually resides. Eso that it acts as a central gateway and a secure gateway so that all the devices are able to connect to this gateway and then ultimately connect to the cloud. One common problem we run into is ah, lot of the legacy i o t devices. They tend to communicate using insecure protocols and in clear text eso we actually had to leverage AWS lambda Function on the edge to convert these legacy protocols. Think of very secure and Q t t protocol that ultimately, you know, sense data encrypted to the cloud eso the key thing to recognize. And then the transformational shift here is, um, Cloud has the ability today to impact security off the device and the edge from the cloud using cloud native services, and that continues to grow. And that's one of the key reasons we're seeing accelerated growth and adoption of Iot devices on did you brought up a point about five G and and that's really interesting. And a recent set of investments that eight of us, for example, has been making. And they launched their AWS Waveland zones that allows you to deploy compute and storage infrastructure at the five G edge. So millions of devices they can connect securely to the computer infrastructure without ever having to leave the five g network Our go over the Internet insecurely talking to the cloud infrastructure. Uh, that allows us to actually enable our customers to process large volumes of data in a short, near real time. And also it increases the security of the architectures. Andi, I think truly, uh, this this five g combination with I o t and cloudy, I m l the are the technologies of the future that are collectively pushing us towards a a future where we're gonna Seymour smart cities that come into play driverless connected cars, etcetera. >>That's great. Now I wanna impact that a little bit more because we are here in aws re invent and I was just looking up. We had Glenn Goran 2015, introducing a W S s I O T Cloud. And it was a funny little demo. They had a little greenhouse, and you could turn on the water and open up the windows. But it's but it's a huge suite of services that you guys have at your disposal. Leveraging aws. I wonder, I guess, Andrew, if you could speak a little bit more suite of tools that you can now bring to bear when you're helping your customers go to the zero trust journey. >>Yeah, sure thing. So, um, obviously there's a significant partnership in place, and, uh, we work together, uh, pretty tremendously in the market, one of the service are one of solution offering that we've built out which we dub Delight Fortress, um is a is a concept that plays very nicely into our zero trust framework. More along the kind of horizontal components of our framework, which is really the fabric that ties it all together. Um s o the two horizontal than our framework around telemetry and analytics. A swell the automation orchestration. If I peel back the automation orchestration capability just a little bit, um, we we built this avoid fortress capability in order for organizations to kind of streamline um, some of the vulnerability management aspect of the enterprise. And so we're able through integration through AWS, Lambda and other functions, um, quickly identify cloud configuration issues and drift eso that, um, organizations cannot only, uh, quickly identify some of those issues that open up risk to the enterprise, but also in real time. Um, take some action to close down those vulnerabilities and ultimately re mediate them. Right? So it's way for, um, to have, um or kind of proactive approach to security rather than a reactive approach. Everyone knows that cloud configuration issues are likely the number one kind of threat factor for Attackers. And so we're able to not only help organizations identify those, but then closed them down in real time. >>Yeah, it's interesting because we hear that all the time. If there's a breach and if if they w s involved often it's a it's a configuration. You know, somebody left the door open basically, and and it really drives something you were talking about. Ravi is the increasing important of automation, um, and and using big data. And you talked about this kind of horizontal tele metrics and analytics because without automation, these systems are just getting too big and and crazy for people Thio manage by themselves. But more importantly, it's kind of a signal to noise issue when you just have so much traffic, right? You really need help surfacing. That signals you said so that your pro actively going after the things that matter and not being just drowned in the things that don't matter. Ravi, you're shaking your head up and down. I think you probably agree with this point. >>Yeah, yeah, Jeff and definitely agree with you. And what you're saying is truly automation is a way off dealing with problems at scale. When when you have hundreds of accounts and that spans across, you know, multiple cloud service providers, it truly becomes a challenge to establish a particular security baseline and continue to adhere to it. And you wanna have some automation capabilities in place to be able to react, you know, and respond to it in real time versus it goes down to a ticketing system and some person is having to do you know, some triaging and then somebody else is bringing in this, you know, solution that they implement. And eventually, by the time you're systems could be compromised. So ah, good way of doing this and is leveraging automation and orchestration is just a capability that enhances your operational efficiency by streamlining summed Emmanuel in repetitive tasks, there's numerous examples off what automation and orchestration could do, but from a security context. Some of the key examples are automated security operations, automated identity provisioning, automated incident response, etcetera. One particular use case that Deloitte identified and built a solution around is the identification and also the automated remediation of Cloud security. Miss Consideration. This is a common occurrence and use case we see across all our customers. So the way in the context of a double as the way we did this is we built a event driven architectures that's leveraging eight of us contribute config service that monitors the baselines of these different services. Azzan. When it detects address from the baseline, it fires often alert. That's picked up by the Cloudwatch event service that's ultimately feeding it upstream into our workflow that leverages event bridge service. From there, the workflow goes into our policy engine, which is a database that has a collection off hundreds of rules that we put together uh, compliance activities. It also matched maps back to, ah, large set of controls frameworks so that this is applicable to any industry and customer, and then, based on the violation that has occurred, are based on the mis configuration and the service. The appropriate lambda function is deployed and that Lambda is actually, uh, performing the corrective actions or the remediation actions while, you know, it might seem like a lot. But all this is happening in near real time because it is leveraging native services. And some of the key benefits that our customers see is truly the ease of implementation because it's all native services on either worse and then it can scale and, uh, cover any additional eight of those accounts as the organization continues to scale on. One key benefit is we also provide a dashboard that provides visibility into one of the top violations that are occurring in your ecosystem. How many times a particular lambda function was set off to go correct that situation. Ultimately, that that kind of view is informing. Thea Outfront processes off developing secure infrastructure as code and then also, you know, correcting the security guard rails that that might have drifted over time. Eso That's how we've been helping our customers and this particular solution that we developed. It's called the Lloyd Fortress, and it provides coverage across all the major cloud service providers. >>Yeah, that's a great summary. And I'm sure you have huge demand for that because he's mis configuration things. We hear about him all the time and I want to give you the last word for we sign off. You know, it's easy to sit on the side of the desk and say, Yeah, we got a big security and everything and you got to be thinking about security from from the time you're in, in development all the way through, obviously deployment and production and all the minutes I wonder if you could share. You know, you're on that side of the glass and you're out there doing this every day. Just a couple of you know, kind of high level thoughts about how people need to make sure they're thinking about security not only in 2020 but but really looking down the like another road. >>Yeah, yeah, sure thing. So, you know, first and foremost, it's important to align. Uh, any transformation initiative, including your trust to business objectives. Right? Don't Don't let this come off as another I t. Security project, right? Make sure that, um, you're aligning to business priorities, whether it be, you know, pushing to the cloud, uh, for scalability and efficiency, whether it's digital transformation initiative, whether it be a new consumer identity, Uh uh, an authorization, um, capability of china built. Make sure that you're aligning to those business objectives and baking in and aligning to those guiding principles of zero trust from the start. Right, Because that will ultimately help drive consensus across the various stakeholder groups within the organization. Uh, and build trust, if you will, in the zero trust journey. Um, one other thing I would say is focus on the fundamentals. Very often, organizations struggle with some. You know what we call general cyber hygiene capabilities. That being, you know, I t asset management and data classifications, data governance. Um, to really fully appreciate the benefits of zero trust. It's important to kind of get some of those table six, right? Right. So you have to understand, you know what assets you have, what the criticality of those assets are? What business processes air driven by those assets. Um, what your data criticality is how it should be classified intact throughout the ecosystem so that you could really enforce, you know, tag based policy, uh, decisions within, within the control stack. Right. And then finally, in order to really push the needle on automation orchestration, make sure that you're using technology that integrate with each other, right? So taken a p I driven approach so that you have the ability to integrate some of these heterogeneous, um, security controls and drive some level of automation and orchestration in order to enhance your your efficiency along the journey. Right. So those were just some kind of lessons learned about some of the things that we would, uh, you know, tell our clients to keep in mind as they go down the adoption journey. >>That's a great That's a great summary s So we're gonna have to leave it there. But Andrew Robbie, thank you very much for sharing your insight and and again, you know, supporting this This move to zero trust because that's really the way it's got to be as we continue to go forward. So thanks again and enjoy the rest of your reinvent. >>Yeah, absolutely. Thanks for your time. >>All right. He's Andrew. He's Robbie. I'm Jeff. You're watching the Cube from AWS reinvent 2020. Thanks for watching. See you next time.

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 Special coverage sponsored by AWS Global Partner Network. Right. Welcome back to the cubes. Live coverage of AWS reinvent 2020 were virtual this year. We're not in person. We have to do it remote but the Cuba's virtual And I'm John for your host here with Cube Virtual next guest, Sarah Cooper, who is the general manager of the i o T Solutions with a W s. Sarah. Great to see you. Eso you last year in person. In real life, now we're remote. But thanks for coming on. Thank you. >>Thanks, John. Always good to be on the Cube and great to see you again. I don't know how many years it's been from our initial meeting, but it's been a few. >>Well, we gotta we gotta cube search engine. You were on in 2016, but we saw each other last year on when we're riffing on the i o t. News. A lot of great stuff. I mean, from Speed Racer all the way down through all the industrial stuff. Even more this year. But two things that jumped out at me this year. War is the carrier keynote and also the BlackBerry kind of automotive thing again speaks to kind of two megatrends. Obviously, automotive will get to a second, but the carrier announcement was really interesting. You guys did this thing and I was so impressed with the cold chain, uh, product. It was the connected cold chain. It was called, Um, this is where the carrier, which is known for air conditioning This is critical I o t devices that stays with the vaccines involved. Take a minute to explain what the cold chain connected cold chain project waas. >>Yeah, absolutely. So. So we worked closely and are working closely with Carrier on on a product called Links Now Cold chain. Um, as Dave Gitlin, the CEO of Carrier, described in Andy's keynote eyes about moving perishable goods, things that need certain temperature ranges from point A to point B and that usually it sounds simple. Uh, that's not quite so simple. It's usually you know, least you know, 5 to 25 hops, sometimes as much as 40. Andi zehr these air partial goods This is food. This is medicines. This is vaccines. Very hot topic at the moment. And today you know you're moving between ships and those big tractor trailers, and you've got warehouses with refrigeration units and you've got retail grocery stores with refrigeration units thes air, all different data sources that are owned by different. You know, members of that supply chain that value chain and to end. And so what links does is it pulls the data from all of the curier equipment and then pulls that data and looks across all of this information, using things like machine learning to draw inference and relationship and then be allows us to be able to make smart recommendations on things like routes. Or, if you know, a particular produce might need to stop before its original event to make sure it's got long shelf life. It allows us basically to provide that transparency and toe end, which is so difficult because of the number of players. And it's in part due to curious breath of products. And then, you know, with AWS, we're bringing the digital technology side. We got the i o t. The M l. A lot of big data processing pieces, eh? So we're really excited about that. I have to say It's one of the easiest projects to hire for when you talk about making sure that we're able to reduce food waste from the current 30 to 40% or that we're working on making sure that vaccines are efficacious by the time that they get a vaccination site, engineers sign up pretty quickly. >>You know the cliche. You know, mission driven companies. They're always kind of like people love the work for mission driven companies. In this case, you have a project and group that literally is changing the world. If you think about just the life savings on the on the on the vaccine side, that's obvious. We all can relate to that now with covert on full display. But just in terms of energy consumption, on food, ways to perishables if you get the costs involved to society, hunger around the world. Uh, just >>food is >>just wasted, and there are people starving, right? So when you start looking at this as an instrumentation problem, right, it gets really interesting. So you mentioned supply chain value chain. This is I o t potentially, even Blockchain again. This is a key change. The world area. You guys have a multi year deal with Carrier, So validation. What does that mean? Specifically, you guys gonna provide cloud services? Um, what's that all mean? >>Yeah. So we were bringing our engineering talent as this carrier. This is a code development, so we're actually jointly developing together. They bring a lot of the domain expertise they bring, you know, years and years of experience in refrigeration, Um, and in, you know, track and trace of these products. And we bring engineers who have vast experience at scale in these kinds of inference, challenges and and data management and data quality. And so it's really kind of bringing the best of both worlds. And you see this happening more and more. I think in general, where you've got a company like AWS that has strong digital expertise and a history of product innovation, working with customers that are very innovative themselves, but typically have been innovative in in, you know, traditional hardware products and the two worlds coming together to make sure that we can really solve some of the big challenges that are facing our society today. And, um, again, you know, it's great to wake up in the morning and get to work on a project that has that kind of impact. >>Well, before we move on to the whole BlackBerry automotive thing, which is another whole fascinating thing share something that people might not know about this carrier project. That's important. Um, whether it's something anecdotal, something that you know, Um, that's important. What, what what's what's What else is there that's game changing that you think is important to point out? >>Yeah, you know, I don't know that when we first started working with Carrier on on scoping this project that I had really thought through all the different players that are touched by cold chain. Um, certainly we've got a number of them within Amazon with our our fulfillment technologies and our grocery stores. That that's logical. Um, you think about the shippers and people who are out, you know, um, farming. And you know, I mean, crabmeat is something that moves in these big refrigerated containers, but actually there's there are transportation companies. There's drivers of these big rigs that need to make sure that they're being that they have fuel consumption management. You've got customers, you know, really kind of throughout that piece, freight forwarders. And so really the breath of the people that are touched, not just you and I is consumers of of perishable goods and fruits and produce on DNA medicines, but also really, that full end to end ecosystem on that's That's both the exciting part from A from a business standpoint, but also the exciting part from the technology stand. >>Well, it's great work, and I applaud you for it's one of those things where foodways isn't just a supply chain impacts the rest of the world because you're more efficient. You could distribute food, toe other places where people are hungry and just its overall impact is huge trickle effect. So impact is huge. Okay, now let's talk about the automotive peace. Because last year we had on the Cube folks from BlackBerry and remember them came on like BlackBerry. Isn't that the phone that went extinct by the iPhone? No, no. There's a whole nother io ti automotive thing around. Ivy Ivy? Why intelligent vehicle data platform? You guys just announced a multiyear agreement with them to develop that product combined with some of the I O. T and machine learning. Could you take him in to explain what this relationship is. What does it mean? What does it mean for the industry? >>Yeah, it's It's similar to the carrier relationship. You know we are. We're engineering together. Um, in this instance Q and X, which is a division of BlackBerry, is in 175 million vehicles. I mean, just think about that. They're running under the covers, and they are. They are a safety security layer and a real time operating system. So you know, when you think about all of the products, really end end in Q and X isn't just in automotives. It's in nuclear power plants. It's in manufacturing automation. It's one of those products that that you probably benefit from, but you didn't know it. Um, and in the automotive space, it's the piece that manages the safety certified layers of data coming off of sensors in the car. And so, fundamentally, what we're doing with Ivy is we're up leveling that information today. If you think about a car, you've got 1500 suppliers that are all providing parts into that far, which means that different makes and models have different seats. Sensors to give you wait in the back, you know, seat as an example. And so if do you want to write an application that tries to determine if that weight in the back seat is your dog or not, my dog happens to be bothering me at the moment. Z. >>That's one of the benefits of working at home. You know? >>Absolutely. So we'll use him as an excuse here. But if you want to know if that's a dog on the back seat, um, being able Thio, then figure out the PC electric measurements and the algorithms, um means you have to know what sensors air in that back seat, which means you got to write essentially an application Pir sensor manufacturer for vehicle make and model That doesn't work so fundamentally What Ivy does, is it? It abstracts away the differences between the vendors and then it up levels information by using machine learning and analytics running in the car. To be able to allow a developer to say, you know, a P I. Is there a dog in the car like How simple is that? I don't have to figure out what the weight measurement is. I don't know. I have to know if there's cameras in the car or if there's some other way to know. If the dog I just need to ask, Is there dog in the car? And the A P. I, for my view, will tell you yes, No, or I don't know, you know, because sometimes there isn't the technology to know that. And then the application developer can then use that information to build delightful experiences, things that make your dog behave, hopefully, things that might help protect them on a hot day. Um, you know, in things where you know that if there's a child in the car, you don't play explicit lyrics. If they're fighting in the back seat, you make sure that the cartoons go off until they behave themselves and cartoons come back on. There are lots of in vehicle experiences that can be enabled by this as well as vehicle operations. So, you know, being able to do >>yeah and all that stuff. >>Yeah, Selective recalls making sure that Onley cars that are actually affected need to come in and making sure that that you know, that's that's quantified and that, you know, it is actually safe to drive to the point of recall. All of that could be done on a vehicle by vehicle basis. >>So are you competing with car companies now? >>No, fundamentally, the oe EMS are the Are the companies that that the car manufacturers are those that end up delivering this capability and they own the data. You know, this isn't something where BlackBerry or A W S owns the data the auto manufacturers dio so it's there platforms to make a delightful experience out of, um, we're just helping to make sure that that's as easy as possible and opening up. You know, the potential innovation so that it's, you know, it's certainly their developers internally. But if they want take advantage of the millions of AWS developers now, they could do that. >>Sarah, Great to have you on one of the things. I just want a final questions or final point. Let's get your reaction to Is that it seems to me with the cloud in this post covert scale error when you start to get into edge, um, you know, industrial I o t. You hear things like instrumentation supply chain, these air buzzwords, these air kind of characteristics all kind of in play. But the other observation is partnerships, arm or co engineering. Co development vibe. Is that just unique? Thio what you're doing? Or do you see this as kind of as a template for partnering? Because when you start to get these abstraction layers, the heavy lifting can be under the covers. You have this enablement model. What's your quick take on this? >>Yeah, I think we talk about undifferentiated heavy lifting, a lot of Amazon on defunding mentally. That's different for each industry. And he talked about that. His keynote. And so I think you know you'll see more and more co development and co engineering coming from from companies across when we have big technical challenges and these air complex problems to solve it takes a village >>awesome. Sarah Cooper Thanks for coming on GM of Iot. TIF Solutions A. The best to great success stories. The carrier and Blackberry, one Automotive with Black Braids operating system that powers the safety and for cars and, hopefully, future of application, development and carrier, with the cold connected chain delivering perishable goods, vaccines and food. Changing the game. That's a game changer. Thanks for coming on. >>Thanks, John appreciate. Always good to see you. >>Okay. Cube coverage. Jump shot for your host. Stay with us from or coverage throughout the day and all next couple weeks. Thanks for watching. Yeah. Mhm.

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

>>from around the globe. It's the Cube covering HP. Discover Virtual experience Brought to you by HP. >>Welcome to the Cube's coverage of HP Discover 2020 Virtual Experience. I'm Lisa Martin, and I'm pleased to be joined by two guests from HP longtime partner Tech Data. We have calling Blair the vice president of sales and marketing of I. O. T. And Data Solutions and David Smith, H P E Pre Sales Field Solutions are common. And David, Welcome to the Cube. Thanks, Lisa. Great to see. So let's start with the calling. HP and Technical have been partners for over 40 years, but tell our audience a little bit about tech data before we get into the specifics of what you're doing and some of the cool I o. T. Stuff with HP. I >>think that the Tech data is a Fortune 100 distributor. We continued to evolved to be a solutions aggregator in these next generation technology businesses. As you've mentioned, we've been serving the I T distribution markets globally for for 40 plus years, and we're now moving into next generation technologies like Wild Analytics, I O. T and Security bubble Lifecycle Management services. But to be able todo position ourselves with our customer base and the needs of their clients have. So I'm excited to be here today to talk a little bit about what we're doing in I, O. T. And Analytics with David on the HPC side >>and in addition to the 40 plus years of partnership calling that you mentioned that Detected and HP have you've got over 200 plus hp. Resource is David, you're one of those guys in the field. Talk to us about some of the things that you're working on with Channel Partners Table David to enable them, especially during such crazy times of living and now >>absolutely, absolutely so. What we can do is we can provide strong sales and technical enablement if your team, for example, wants to better understand how to position HP portfolio if they require assistance and architect ing a secure performance i o t. Solution. We can help ensure that you're technical team is fully capable of having that conversation, and it's one that they're able to have of confidence, weaken validate the proposed HP solutions with the customers, technical requirements and proposed use case. We can even exist on a customer calls, if it would, would benefit our partner to kind of extend out to that. We also have a a a deep technical bench that Colin can speak to in the OT space toe lean on as well. For so solution is that kind of span into the space beyond where HP typically operates, which would be edge, compute computing and network. Sic security. >>Excellent call and tell me a little bit about Tech Data's investments in I o. T. When did this start? What are you guys doing today? >>Sure, we started in the cloud space. First tackle this opportunity in data center modernization and hybrid cloud. That was about seven years ago. Shortly thereafter we started investing very materially in the security cyber security space. And then we follow that with Data Analytics and then the Internet of things. Now we've been in those spaces with our long term partners for some time. But now that we're seeing this movement to the intelligent edge and a real focus on business outcomes and specialization, we've kind of tracked with the market, and we feel like we've invested a little bit ahead of where the channel is in terms of supporting our ecosystem of partners in this space. >>So the intelligent edge has been growing for quite some time. Poland in the very unique times that we're living in in 2020 how are you seeing that intelligent edge expand even more? And what are some of the pressing opportunities that tech data and HPC i O T solutions together can address? >>So a couple. So the first is a Xai mentioned earlier just data center modernization. And so, in the middle of code 19 and perhaps postcode 19 we're going to see a lot of clients that are really focused on monetizing the things that they've got. But doing so to drive business outcomes. We believe that increasingly, the predominance of use cases and compute and analytics is going to move to the edge. And HP has got a great portfolio for not just on premise high performance computing but also hybrid cloud computing. And then when we get into the edge with edge line and networking with Aruba and devices that need to be a digitized and sense arised, it's a really great partnership. And then what we're able to do also, Lisa, is we've been investing in vertical markets since 2000 and seven, and I've been a long the ride with that team, most all of that way. So we've got deep specialization and healthcare and industrial manufacturing, retail and then public sector. And then the last thing we've kind of turned on here recently just last month is a strategic partnership in the smarter cities space. So we're able to leverage a lot of those vertical market capabilities. Couple that with our HP organization and really drive specialized repeatable solutions in these vertical markets, where we believe increasingly, customers are going to be more interested in a repeatable solutions that can drive quick proof of value proof of concepts with minimal viable what kinds of products. And that's that's kind of the apartment today with RHB Organization and the HP Corporation >>David. Let's double click into some of those of vertical markets that Colin mentioned some of the things that pop into minor healthcare manufacturing. As we know, supply chains have been very challenged during covered. Give us an insight into what you're hearing from channel partners now virtually, but what are some of the things that are pressing importance? >>So from a pressing and important to Collins exact point, and your exact point as well is really it's all about the edge computing space now from a product perspective Azaz Colin had mentioned earlier. HP has their edge line converged systems, which is kind of taking the functionality of OT and edge T Excuse me of OT and I t and combine it into a single edge processing compute solution. You kind of couple that with the ability to configure components such as Tesla GP, use in specific excellent offerings to offer an aid and things like realtime, video processing and analytics. Uh, and a perfect example of this is, ah so for dissing and covert space. If if I need to be able to analyze a group of people to ensure they're staying as far apart as possible or, you know within self distant guidelines, that is where kind of the real time that's like an aspect of things can be taken advantage of same things with with the leveraging cameras where you could actually take temperature detection as as well, so it's really kind of best to think of Edge Lines Solutions is data center computing at the edge kind of transition into the Aruba space. Uh Rubio says offerings aid in the island Security is such a clear pass device inside, which allows for device discovery of network and monitoring of wired and wireless devices. There's also Aruba asset tracking and real time location of solutions, and that's particularly important in the healthcare space as well. If I have a lot of high value assets, things like wheelchairs, things like ventilation devices, where these things low located within my facilities and how can I keep keep track of them? They also, and by that I mean HP. They also kind of leveraging expanse ecosystem of partners. As an example, they leverage thing works allow their i o t solutions as well, when you kind of tying it all together with HP Point. Next to the end, customers provided with comprehensive loyalty solution. >>So, Colin, how ready? Our channel partners and the end user customers to rapidly pivot and start either deploying more technologies at the edge to be able to deliver some of the capabilities that David talked about in terms of analytics and sensors for social distancing. How ready are the channel partners and customers to be able to understand, adopt and execute this technology. >>So I think on the understanding side, I think the partners are there. We've been talking about digital transformation in the channel for a couple of years now, and I think what's happened through the 19 Pandemic is that it's been a real spotlight on the need for those business outcomes to to solve for very specific problems. And that's one of the values that we serve in the channel. So we've got a solution offering that we call our solution factory. And what we do really says is we leverage a process to look outside the industry. At Gartner, Magic Quadrant Solutions forced a Wave G two crowd. You know, top leaders, visionaries and understand What are those solutions that are in demand in these vertical markets that we talked about? And then we do a lot of work with David and his team internally in the HP organization to be able to do that and then build out that reference architectures so that we know that there's a solution that drives a bill of materials and a reference architecture that's going to work that clients are going to need and then we can do it quickly. You know, Tech data. Everything's about being bold, acting now getting scale. And we've got a large ecosystem partners that already have great relationships. So we pride ourselves on being able to identify what are those solutions that we can take to our partners that they can quickly take to their end users where you know we've We've kind of developed out what we think the 70 or 80% of that solution is going to look like. And then we drive point next and other services capabilities to be able to complete that last mile, if you will, of some of the customization. So we're helping them. For those who aren't ready, we're helping them. For those who already have very specific use cases and a practice that they drive with repeatable solutions were coming alongside them and understanding. What can we do? Using a practice builder approach, which is our consultative approach to understand where our partners are going in the market, who their clients are, what skill sets do they have? What supplier affinities do they want to drive? What brand marketing or demand generation support do they need? And that's where we can take some of these solutions, bring them to bear and engage in that consultative engagement to accelerate being ready as, as you rightly say, >>so tech. It has a lot of partners. You in general. You also have a lot of partners in the i o T space calling What? How do you from a marketing hat perspective? How do you describe the differentiation that Tech data and HP ease Iot solutions delivered to the channel to the end user? >>A couple of different things? I think that's that's differentiation. And that's one of the things that we strive for in the channel is to be specialized and to be competitively differentiated. And so the first part, I say to all of my team, Lisa, is you know, whether it's our solution consultants or our technical consultants, our solutions to the developers or the software development team that works my organization. Our goal is to be specialized in such a way that we're having relevant value added conversations not only our channel partners, but also end users of our partners want to bring us into those conversations, and many do. The next is really education and enablement as you would expect. And so there's a lot of things that are specialized in our technical. We drive education certification programs, roadshows, seminars, one of the things that we're seeing a lot of interest now. Lisa is for a digital marketing, and we're driving. Some really need offerings around digital marketing platforms that not only educate our partners but also allow our partners to bring their end users and tour some of this some of these technologies. So whether it's at our Clearwater office, where we've got an I. O T. Solution center, that we we take our partners and their clients through or we're using our facilities Teoh to do executive briefings and ideation as a service that, you know, kind of understanding the art of the possible. With both our resellers and their clients work, we're using our solution. Our solution catalogs that we've built an interactive pdf that allows our partners to understand over 50 solutions that we've got and then be able to identify. Where would they like to bring in David and his team and then my consultants to do that, that deep planning on business development, uh, that we talked about a little bit earlier. >>So the engagement right now is maybe even more important than it has been in a while because it's all hands off and virtual David. Talk to me about some of the engagement and the enablement piece that call and talked about. How are you able to really keep a channel partner and their end user customers engaged and interested in what you're able to deliver through this from New Virtual World? >>That's a great, great question. And we work in conjunction with our marketing teams to make sure that as new technologies and quite in I O. T space as well as within the HP East base as well that that our channel partners are educated and aware that these solutions exist. I know for a fact that for the majority of them you kind of get this consistent bombardment of new technology. But being able to actually have someone go out and explain it and then being able to correspondingly position it's use case and it's functionality and why it would provide value for your end customer is one of the benefits of tech data ads to kind of build upon that previous statement. The fact that We have such a huge portfolio of partners, so you kind of have HP and the edge compute space. But we have so many different partners in the OT space where it's really just a phone call, an email, a Skype message, a way to have that conversation around interoperability and then provide those responses back to our partners. >>Excellent. One more question before we go. Colin for you, A lot of partners. Why HP fry Mt. >>So a couple of reasons? One of the one of the biggest reasons as HP is just a great partner. And so when you look at evaluating I. O. T solutions that tend to be pretty comprehensive in many cases, Lisa it takes 10 or 12 partners to complete a really i o t solution and address that use case that that's in the field. And so when you have a partner like HP who's investing in these programs, investing in demand generation, investing in the spectrum of technology, whether it's hybrid Cloud Data Center, compute storage or your edge devices and Iot gateways, then to be able to contextualize those into what we call market ready solutions in each one of these vertical markets where there's references and there's use cases. And there were coupling education that specific rest of solutions. You know HP can do all of those things, and that's very important. Because in this new world, no one can go it alone anymore. It takes it takes partnerships, and we're all better together. And HP really does embrace that philosophy. And they've been a great partner for us in the Iot space. >>Excellent. Well, Colin and David, thank you so much for joining me today on the Cube Tech data. H p e i o t better together. Thank you so much. It's been a pleasure talking with you. >>Thank you. >>Thank you. Lisa. >>And four Collet and David. I am Lisa Martin. You're watching the Cube's virtual coverage of HP Discover 2020. Thanks for watching. Yeah, yeah, yeah, yeah.

>>Live from Barcelona, Spain. It's the Cube covering Cisco Live 2020 right to you by Cisco and its ecosystem partners. >>Welcome back to the Cube's live coverage here at Cisco Live 2020 in Barcelona, Spain. I'm jumpers student of cube coverage. We've got a lot of stuff going on in Cisco Multi cloud and cloud technology. Quantification of Cisco's happening in real time is happening right now. Cloud is here here to stay. We got two great guests unpack what's going on in cloud native and networking and applications as the modern infrastructure and software evolves. We got you. Gene Kim, global product marketing. Compute Storage at Cisco Global marketing manager and Rob Gori, senior director. Cloud Solution Marketing Guys come back. Thanks for coming back. Appreciate it. Great to see you Barcelona guys. So, Bobby, we've had multiple conversations and you see that from the sales force given kind of the the discussion in the motivation Cloud is big. It's here. It's here to stay. It's changing. Cisco AP I first week here in all the products, it's changing everything. What's the story now? What's going on? >>I would say you know the reason why we're so excited about the launch here in Barcelona is because this time it's all about the application of spirits. I mean, the last two years we've being announcing some really exciting stuff in the cloud space where I think about all the announcements with AWS is the Googles the azure, so the world. But this time it really boils down to making sure that is incredibly hyper distributive world. There is an application explosion. Ultimately, we will help for the right operation stools and infrastructure management tools to ensure that the right application experience will be guaranteed for the end customer. And that's incredibly important because at the end, what really really matters is that you will ensure the best possible digital experience to your customer. Otherwise, ultimately nothing's gonna work. And, of course, you're gonna lose your brand and your customers. >>One of the main stories that we're covering is the transformation of the industry. Also, Cisco and one of the highlights to me was the opening keynote. You had APP dynamics first, not networking. Normally it's like what's in the hood? Routers and the gear. No, it was about the applications. This is the story we're seeing. It's kind of a quiet unveiling. Its not get a launch, but it's evolving very quickly. Can you share what's going on behind this? All this? >>Absolutely. It's exactly along the lines of what I was saying a second ago, in the end that the reason why we're driving the announcement, if you want from the application experience side of the House, is because with Appdynamics, we already have very, very powerful application performance management, which it's evolving extremely rapidly. First of all, Appdynamics can correlate not just the application for four months to some technology, maybe eyes, but through actual business KP eyes. So app dynamics can give you, for instance, serial time visibility off, say, a marketing funnel conversion rates transactions that you're having in your in your business operation. Now we're introducing an incredibly powerful new capability that takes the bar to a whole new level. And that's the Appdynamics experience. Journey maps. What are those? It's actually the ability off, focusing not so much on front ends and back ends and the business performances, but really focusing on what the user is seen in front of his or her screen. And so what really matters is capturing the journey that given user of your application is being and understanding whether the experience is the one that you want to deliver or you have, like, a sudden drop off somewhere. And you know why this is important because in the end we've been talking about is the problem of the application, performance issues or performance. It could be a badly designed page. How do you know? And so this is a very precious information they were giving to application developers know, just through the idea. Ops, guys, that is incredibly gracious. >>Okay, you want to get this in. So you just brought up that journey. So that's part of the news. Just break down real quick. One minute what the news is. >>Yeah, so we have three components. The 1st 1 as you as you correctly pointed out, is really the introduction of the application. The journey maps, right. The experience journey maps. That's very, very important. The second he's way are actually integrating Appdynamics with the inter site. Actually, inter site the optimization manager, the workload optimization, workload, optimizer. And so because there is exchange of data between the two now, you are in a position to immediately understand whether you have an application problem. We have a worker problem for structure problem, which is after me, where you really need to do as quickly as you can. And thirdly, way have introduced a new version of our hyper flex platform, which is hyper converge flagship platform for Cisco with a fully containerized version, the tax free if you want as well, that is a great platform for containerized applications. >>So you do and what I've been talking to customers last few years. When they go through their transformational journey, there's the modernization they need to do. The pattern I've seen most successful is first, modernize the platform often HD I is, you know, an option for that. It really simplifies the environment, reduces the silos on, has more of that operational model that looks closer to what the cloud experience is. And then, if I've got a good platform, then I can modernize the applications on top of it. But often those two have been a little bit disconnected. It feels like the announcements now that they are coming together. What are you seeing? What're you hearing? How your solutions at solving this issue >>exactly. I mean, as we've been talking to our customers, a lot of them are going through a different application. Modernizations and kubernetes and containers is extremely important to them. And to build a container cloud on Prem is extremely one of their needs. And so there's three distinctive requirements that they've kind of talk to us about. A lot of it has to be ableto it's got to be very simple, very turnkey, fully integrated, ready to turn on the other. One is something that's very agile, right? Very Dev Ops friendly and the third being a very economic container cloud on prim. So as you mentioned, High Flex Application Platform takes our hyper converge system and build on top of it a integrated kubernetes platform to deliver a container as a service type capability. And it provides a full stack, fully supported element platform for our customers, and one of the best great aspects of it is it's all managed from inter site, from the physical infrastructure to the hyper converge layer to all the way to the container management. So it's very exciting to have that full stack management and inter site as well. >>It's great to see you, John and I have been following this kubernetes wave since the early early days. Fabio mentioned integrations with the Amazons and Googles of the world because, you know, a few years ago you talk to customers and they're like, Oh, well, I'm just going to build my own community. Nobody ever said that is easy now. Just delivering as a service seems to be the way most people want it. So if I'm doing it on Amazon or Google, they've got their manage service that I could do that or that there partners we're working with. So explain what you're doing to make it simpler in the data center environment. Because on Prem absolutely is a piece of that hybrid equation that customers need. >>Yes, so, essentially from the customer experience perspective, as I mentioned, very fairly turnkey right from the hyper flex application platform we're taking are happening for software were integrating a application virtualization layer on top of it analytics k VM based. And then on top of that, we're integrating the kubernetes stack on top of as well. And so, in essence, right? It's a fully curated kubernetes stack that has all the different elements from the networking from the storage elements and provide that in a very turnkey way. And as I mentioned, the inter site management is really providing that simplicity that customers need for that management. >>Fabio This is the previous announcements you've made with the public clouds. This just ties into those hybrid environments. That's exactly a few years ago. People like, Oh, is there going to be a distribution that wins in kubernetes? We don't think that's the answer, but still, I can't just move between kubernetes. You know seamlessly yet. But this is moving toward that >>direct. Absolutely. A lot of customers want to have a very simple implementation. At the same time, they weren't off course a multi cloud approach and I really care about marking the difference between multi cloud hybrid Cloud has been a lot of confusion. But if you think about a multi cloud is re routed into the business need or harnessing innovation from wherever it comes from, you know the different clouds capability from things, and you know what they do today. Tomorrow it could even change, so people want optionality, so they want a very simple implementation that's integrated with public cloud providers that simplifies their life in terms of networking, security and application of workload management. And we've been executing towards that goal so fundamentally simplify the operations of these pretty complex kind of hybrid apartments. >>And once you nail that operations on hybrid, that's where multi cloud comes in. That's really just a connection point. >>Absolutely, you know, you might know is an issue. So in order to fulfill your business, your line of business needs you. Then you have a hybrid problem, and you want to really kind of have a consistent production grade environment between things on Prem that you own and control versus things that you use and you want to control better. Now, of course, they're different school thoughts. But most of the customers who are speaking with really want to expand their governance and technology model right to the cloud, as opposed to absorb in different ways of doing things from each and every time. >>I want to unpack a little bit of what you said earlier about the knowing where the problem is, because a lot of times it's a point, the finger at the other first, it's the application promising the problem, so I want to get into that. But first I want to understand the hyper flex application platform. Eugene, if you could just share the main problem that you guys solve, what are some of the pain points that customers had? What problem does the AP solved? >>Yeah, as I mentioned, it's really the platform for our customers to modernize the applications on right, and it addresses those things that they're looking for as far as the economics right, really? The ability to provide a full stack container experience without having to, you know, but bringing any third party hyper visor licenses as well support costs that's well integrated. There you have your integrated, hyper converged storage capability. You have the cloud based management, and that's really developing. You provide that developer dev ops simplicity from that agility that they're looking for internally as well as for their production environments. And then the other aspect is the simplicity to manage all this right and the entire life cycle management >>as well. So it's the operational side of the hole in under the covers hobby on the application side where the problem is because this is where I'm a bit skeptical, Normal rightfully so. But I can see a problem where it's like Whose fault is it? Applications, problem or the network? I mean, it runs on where? Sears Workloads, Banking app. It's having trouble. How do you know where the problem is? And how do you solve that problem with what's going on for that specific issue? >>Absolutely. And you know, the name of the game here is breaking down this operational side, right? And I love what are appdynamics VP? GM Any? Whitaker said. You know, he has this terminology. Beast develops, which it may sound like an interesting acrobatics, but it's absolutely too. The business has to be part of this operational kind of innovation because, as you said, you know, developer just drops their containers and their code to the I T. Ops team, but you don't really know whether the problem a certain point is going to be in the code or in the application is actually deployed. Or maybe a server that doesn't have enough CPU. So in the end, it boils down to one very important thing. You have to have visibility, insights and take action at every layer of the stack. Instrumentation. Absolutely. There are players that only do it in their software overlay domain. The problem is, very often these kind of players assume they're underneath. Things are fine, and very often they're not. So in the end, this visibility inside in action is the loop that everybody's going after these days, too, Really get to the next. If you want a generational operation, where you gotta have a constant feedback loop and making it more faster and faster because in the end you can only win in the marketplace, right? So your I T ops, if you're faster than your competitors, >>will still still questioning the GM of APP Dynamics. Run, observe, ability. And he's like, No, it's not a feature, it's everywhere. So he's comment was observe. Abilities don't really talk about it because it's a big in. You agree with that? >>Absolutely. It has to be at every layer of the stack, and only if you have visibility inside an action through the entire stock, from the software all the way to the infrastructure level that you can solve the problems. Otherwise, the finger pointing quote unquote will continue, and you will not be able to gain the speed you need. >>Okay, so The question on my mind I want to get both of you guys could weigh in on this is that if you look at Cisco as a company, you got a lot going on. You guys huge customer base core routers to know applications. There's a lot going on a lot of a lot of complexity. You got I o. T. Security members talking about that. You got the WebEx rooms totally popular. It's got a lot of glam, too, and having the WebEx kind of, I guess, what virtual presence was telepresence kind of model. And then you get cloud. Is there a mind share within the company around how cloud is baked into everything? Because you can't do I ot edge without having some sort of cloud operational things. Stuff we're talking about is not just a division. It's kind of it's kind of threads everywhere across Cisco. What's the what's the mind share right now within the Cisco teams and also customers around cloud ification? >>Well, I would say it's it's a couple of dimensions. The 1st 1 is the cloud is one of the critical domains of this multi domain architecture. That, of course, is the cornerstone of Cisco's. The knowledge is strategy, right? If you think about it, it's all about connecting users to applications wherever they are and not just the users to the applications themselves. Like if you look at the latest US from I. D. C. 58% of workloads is heading to a public cloud, and the edge is like the data center is exploding many different directions. So you have this highly distributed kind of fabric. Guess what sits in between. All these applications and micro services is a secure network, and that's exactly what we're executing upon. Now that's the first kind of consideration. The second is if you look at the other civil line. Most of the Cisco technology innovation is also going a direction of absorbing cloud as a simplified way of managing all the components or the infrastructure. You look at the hyper flex. AP is actually managed by Inter site, which is a SAS kind of component. This journey started long time ago with Cisco Iraqi on then, of course, we have sass properties like WebEx. Everything else absolutely migrate borders. >>We've been reporting Eugene that five years ago we saw the movement where AP, eyes were starting to come in when you go back five years ago. Not a lot of the gear and stuff that Cisco had AP eyes. Now you got AP eyes building in all the new products that you see the software shift with you intent based networking to APP dynamics. It's interesting. It's you're seeing kind of the agile mindset. This is something you and I talk all the time. But agile now is the new model. Is it ready for customers? I mean, the normal enterprises still have the infrastructure and separated, and they're like, Okay, how do I bring it together? What do you guys see in the customer base? What's going on with that early adopters, Heavy duty hardcore pioneers out there. But you know, the general mainstream enterprise. Are they there yet? Have they had that moment of awakening? >>Yeah, I mean, I think they they are there because fundamentally, it's all about ensuring that application experience. And you could only ensure the application experience right by having your application teams and infrastructure teams work together. And that's what's exciting. You mentioned Ap eyes and what we've done. They were with APP dynamics, integrating with inner sight workload. Optimizer as you mentioned all the visibility inside in action and what APP Dynamics has provides. Provide that business and end user application performance experience. Visibility Inter site. It's giving you visibility on the underlining workload, and the resource is whether it's on prim in your private data center environment or in a different type of cloud providers. So you get that full stack visibility right from the application all the way down to the bottom and then inter site local optimizer is then also optimizing the resource is to proactively ensure that application experience. So before you know, if we talk about someone at a check out and they're about there's of abandonment because the function is not working, we're able to proactively prevent that and take a look at all that. So, you know, in the end, I think it's all about ensuring that application experience and what we're providing with APP Dynamics is for the application team is kind of that horizontal visibility of how that application performing and at the same time, if there's an issue, the infrastructure team could see exactly within the workload topology, where the issue is and entertain safely, whether it be manual intervention or even automatically our ops capability. Go ahead and provide that action so the action could be, you know, scaling out the VM that's on Prem or looking at new, different type of easy to template in the cloud. That's a very exciting about this. It's really the application experience is now driving and optimize the infrastructure in real >>time. And let me flip your question like, Do you even have a choice, John, when you think about in the next two years 50% more applications? If you're a large enterprise here, 5 to 7000 apps you have another 2 3000 applications just coming into into the and then 50% of the existing ones that are going to be re factor lifted and shifted the replace or retired by SAS application. It's just like a tsunami that's that's coming on you and oh, by the way, because again the micro services kind of effect the number of dependencies between all these applications is growing incredibly rapidly, Like last year, we were eight average interdependencies for applications. Now we have 20 so in Beijing imaginable happens as you are literally flooded with this can really you have to ensure that your application infrastructure fundamentally will get tied up as quickly as you can >>see. You and I have been talking for at least five years now, if not longer. Networking has been the key kind of last change over clarification. I would agree with you guys. I think last question because I wanted to get your perspective. But think about it. It's 13 years since the iPhone so mobile has shown people that mobile app can change business. But now you get the pressure of the networks. Bringing that pressure on the network or the pressure of the network to be better than programmable is the rise of video and data. I mean, you got mobile check now you got it. Video. I mean more people doing video now than ever before. Videos of consumer. Well, it's streaming. You got data? These two things absolutely forced customers to deal with it. >>But what really tipped the balance? John is actually the SAS effect is the cloud effect because, as you know, it's an I t. So the inflection points. Nothing gets a linear right. So once you reach a certain critical mass of cloud apps, and we're absolutely they're already all of a sudden your traffic pattern on your network changes dramatically. So why in the world are you continuing? Kind of, you know, concentrating all of your traffic in your data center and then going to the Internet. You have to absolutely open the floodgates at the branch level and as close to the users this possible, and that it implies a radical change of the >>way I would even add to that. And I think you guys are right on where you guys are going. It may be hard to kind of tease out with all the complexity with Cisco, but in the keynote, the business model shifts come from SAS. So you got all this technical stuff going on. You have the sass ification, or cloud changes the business models so new entrants can come in and existing players get better. So I think that whole business model conversation never was discussed at Cisco Live before in depth. Okay, run your business, connect your hubs campus move packets around Dallas applications in business model, >>but also the fact that there is increasing number off software capabilities and so fundamental. You want to simplify the life of your customers through subscription models that help the customer buying a using what they really need the right at any given point in time, all the way to having enterprise agreements. >>I also think that's about delivering these application experiences free for small, different experience. That's really what's differentiating you from your competitors, right? And so that's a different type of >>shift as well. Well, you guys have got a good That's a good angle on this cloud. I love it. I got to ask the question. What can we expect next from Cisco? More progression along cloud ification? What's next? >>Well, I would say we've been incredibly consistent, I believe in the last few years in executing on our cloud strategy, which again is sent around helping customers really gluing this mix, set off data centers and clouds to make it work as one right as much as possible. And so what we really deliver is networking security and application performance management, and we're integrating this more and more on the two sides of the equation, right? The data center side and the public cloud side and more more integrated in between all of these layers again, to fundamentally give you this operational capability to get faster and faster. We'll continue doing so and >>we'll get you set up before we came on camera that you were talking to sales teams. What are they? What's the vibe with sales team? They get excited by this. What's the >>oh yeah, feedback. And absolutely, from the inter site work optimizer and the app Dynamics side. It's very exciting for them. Switch the conversation they're having with their customers, really from that application experience and proactively ensuring it. And on the hyper flex application platform side, this is extreme exciting with providing a container cloud to our customers. And you know what's coming down is more and more capabilities for our customers to modernize the applications on hyper >>flex. You guys are riding a pretty big waves here at Cisco in a cloud way to get the i o t. Security wave. Great stuff. Thanks for coming in. Thanks for sharing the insights. Appreciate it. >>Thank you for having >>coverage here in Barcelona. I'm John. First, Minutemen back with more coverage. Fourth day of four days of cube coverage. Be right back after this short break. >>Yeah, yeah, yeah.

>>live from Barcelona, Spain. It's the Cube covering Cisco Live 2020 right to you by Cisco and its ecosystem partners. >>Welcome back to the Cisco Live 2020 show in Barcelona, Spain. It's the Cube's live coverage. Four days of action. I'm John Furrier with my co host, Dave Vellante. Stew Minimum is in the house. We've been really interview all the thought. Leads all the action here in the DEV. Net zone of Cisco. We're here with Susie Wee, who's the senior vice president, chief technology officer and general manager of Cisco's DEV. Net and C X ecosystem success. Susie, great to see you again, Thanks to you. With our third year we've been we've been watching the growth of definite explode and definite create a separate event for developers. Great to see you. >>Great to see you. Great to be here. >>So how does it feel to be on a wave of success? You've had quite an impact in the industry, and I think the biggest story that's going on in the industry is the role of developers. You guys have embraced that four years ago, brought it all together and really just been marching to the cadence of just humble training, education and programming, all the Cisco products enabling what it looks like to be the future of Cisco. >>Yeah, I mean, it's it's humbling, t So you know what's been really great? It's really all about our community. And, you know, I mean, you guys have jumped in, been with us on this journey. You've seen it like all around us in terms of how it's progressed. But what's interesting is that, you know, networkers the software developers, the Dev Ops pros that people who are coming into definite really progressing, they're getting to the next level. And then we have more and more new people coming in. And what happens is the technology keeps advancing right. So networking, security going toe intent based networking, multi domain. How do you integrate these things? Cognitive collaboration. I o t an edge, you know, edge computing. As all of this comes together, you get to a really interesting place. But what happens is we have to think about I t department networking departments like how do people use this to their advantage? Right. So there's actually users of people who install and run these things and how do they make that available and actually get a business advantage out of that infrastructure? That's what this is all about. >>And the big scene. Wendy on the opening keynote, kicked off before David came on. She had a slide that I thought encapsulate what I think the future of all business and you guys have been on and on and on, a reference that it was people in communities, business model and business operations almost like a three legged stool. You've been on this because your team Michael was on the Cube just now said people have been in their careers on Cisco. But Cisco is betting the business on the people, that ecosystem, it's developers. CC III is the certifications. This dynamic of the role of the people is critical, >>and they're driving >>the change >>it is. And you know what was tremendous about Cisco's business model and how Cisco was founded. So this was pre me, you know, and it's just the brilliance of the early folks is like Cisco made this router, you know? It was a little start up. It was like five people, right? And then it started flying off the shelf in the mid eighties in late eighties when the Internet started taking off, and then the way they scale that out was by growing the community, they didn't say We're going to hire people around the world to install these networks. We're gonna create a community of professionals who can go around and install these networks. And then we're going to create a partner ecosystem of partners who are going to build businesses around this, installing networks for customers. And so really, Cisco very early on, learn that we had to be very customer focused and build with an ecosystem of partners. And then we created Cisco Certification Program, and that started to take the people who are getting trained to do networking and give them certifications. And then they were able to get jobs in customers and partners and build their careers. And so now we move that to today, and we're continuing with that philosophy and doubling down. It's about them, except there's a shift in technology. So the network has changed. It's not the same old network like now. There's new capabilities that require software. It requires dev ops. It requires applications to hit the infrastructure it requires. I T and Infrastructure to solve business problems. But we need to bring the people along and doing that, and that is absolutely what we've been about. >>I said in my breaking analysis there were there were many things that helped Cisco rise with the three things like pointed out where the bet on I p, the M and A and then I was too narrow. I liked how you describe it as the community, but really talking about the Army of trained engineers that were advocates. And you're extending that to the partner ecosystem. What's interesting about watching this rise over the faster uses? Not only transformation of Cisco from hardware to software and now even business transformation is you see, I t go from a cost center to a profit center, but you're sort of following that track. I don't know if you're leading it are following it sort of incompetent what's going on. And, >>you know, I would say >>that we're doing both because, uh, obviously we're listening to customers and partners all the time to see what do you need? So we're listening, and that would make us leading as we're sorry. Following is >>we're >>listening and yet we're creating technology to enable them to do these new things right? So there's a reason that you can think about the network to be solving business problems. It's because we made the networking programmable and based on software. If we didn't make it software, it would still be running the old way. And it wouldn't be able to play in a Dev ops loop or be automated or anything there. So I would say that it's very combined. But Cisco takes a holistic approach right back there. We have an I T managers forum where there are people who are trying to say, Hey, you know, I've been leading technology teams in I T. But I need to learn how to talk to the business, right? So there's a transformation that needs to happen, which is okay, The technologist networkers I t folks themselves need to learn about software. But then also, these folks and their managers need to be able to talk to the business and think differently. So take some design thinking. Think about what are the business stakeholders problems where customers problems, how can I make my technology work for them? So we really have a lot going on Teoh building the kind of success of our ecosystem. >>Yeah, it's interesting you mentioned technology shift, and that's causing a lot of change is actually how people are certified business models. And it's interesting. When we were chatting years ago, Dev. Ops was actually out there. The hyper scales around you saw it evolving was pretty clear to a lot of the insiders. That's Dev Ops. Infrastructure is code. Then you kicked on something where programmable networks I heard this week, and this is kind of again goes to the next level and kind of connect the dots. Biz Dev. Ops. So the AB dynamics guys, look at this as OK. So this agile attitude yes, has been on for a while. Could you comment? I think >>a lot of people that >>are looking at Cisco trying to understand its evolution where it's gonna go >>yeah, >>is rooted in years ago. A shift in thinking, yes, and it's an agile It's a dev ops mindset, >>yes, but >>the Dev ops notion from whether it's pure Dev ops, cloud native or Dev ops or Biz Dev ops >>for what's next? So this is a It's been around for a while. You just share your Yeah, Absolutely. So >>I have a slide and we don't show slides here, which is a good thing. But it was called it the hamburger slide. So the hamburger slide, where there would be infrastructure and the applications. And then there's this other layer appear business, you know. And basically, what happens is the infrastructure became programmable, so as opposed to the infrastructure and the applications being separate, the I T teams did the infrastructure of the app Dev did. The businesses did the APS. Then now that the infrastructure's family can get into a dev ops workflow. So for cloud applications, the APS and the infrastructure can really mix. And now the network is programmable. So there's Net Dev ops. And it's not just compute that can get into Dev ops. But you know, the network can too. But then, now that business layer can flow into this. And so what happens is once again, you could say that cloud enables business, right? And so, if you know, a business is trying to say, how do I compete like a retail store? How my completing with a cloud competitors. Well, you have to embrace it. Take your traditional infrastructure, your customer data your stores, but then mix that with cloud offerings. That's a huge transformation that needs to happen. But now there's even more capabilities. As you're saying, Hey, I'm like a coffee shop and I'm rolling out all of these stores. How do I make sure my business applications get there? How do I get customer intelligence and business intelligence together so my workers can serve my customers with the right knowledge and information they need so you can actually use the infrastructure and APS as an advantage in how you serve your business? And you wouldn't even be able to do those things if you didn't know about the technology. So I would say that there's like a workforce trend where technology is enabling business and it can grow your business in different ways. But we need to make sure that we can express that because the technologist doesn't usually talk in terms of the business. But that's where all the value >>on the application has always been. That point of business value in connection to the business when the APP is the infrastructure has been removed from that now that the infrastructure's becoming programmable. It's embedded into that application, and developers can now add value on top of it. I mean, the striking thing to me was just behind us, to seeing a number of your customers lining up to learn how to code in Python. And then I o t was off the charts. And I've always been saying that Look at the edge is going to be one by developers E. I think you really got that right. I'm curious as to why you think just really is the one company in a large, established player. That is, I think, figured it out that I've said that many have tried throwing money at the problem, reaching out to developers fallen flat. I mean, even very successful software companies were struggling. Why do you think Cisco has had successes? Is a culture is at the leverage of that certification and community that you talked about earlier? >>Yeah, it's while it's really hard to say, like one reason why, because these air tricky things, like so taking on a new business strategy, getting everybody aligned in a big company, even in a little company, is hard, but it takes like everybody pushing towards the direction and what happens is different. People get it at different times. So obviously with Dev net, we're trying to push something along. The CEO Chuck Robbins. He got it and he was pushing it. And then the businesses and product teams. Some of them had a P I first, and some of them did not. But now more and more on almost all of them do. Now. All the products have AP eyes and they're getting more AP I first and now what we're doing is aligning AP eyes across the portfolio. You need to get your sales teams to understand and to engage. Like the regions. We have people in Italy who are engaging with the Italian community. We have our seas around the world that are basically engaging the people in each of their countries to evangelize it in tow, work with customers and partners in their local language is using this material to get them on board. So, you know, when we started, Definite Way had different ways we could take it. No one defined a developer program for a company like Cisco before, like a networking company, but we actually didn't do it by saying, Oh, we're only gonna talk to application developers and ignore those old networkers We said we're going to make them core and bring them along and bring in the captives and bring them together. I wouldn't say we're gonna, like, forget about the old Cisco products We said we're gonna work with them as they add AP eyes and make that better. We're gonna ignore our sales guys and the ones that we're going to bring them along and make them our evangelists and advocates to work with the region. So we kind of use the whole fabric along with it and just I kind of gained. The community >>recognized the appetite for building, and some people are like, >>I'm going to jump in and give this a try because I think it's important and something like, I'm gonna wait and see and they're like, Oh, it's something now, Okay, now I'll jump in and we're like, >>That's right, >>you're totally We do a lot of Cuban. It is many different events here at Cisco over the years. It's interesting to see when people get in and you can see it when their eyes pop up. Oh, I get it. It is a progression of whether they're orientation, what their background is. But it seems to me the early people who click it on it is our systems thinkers. Most of the techies, they're systems systems, folks. Yeah, they see as a system not as one thing. Yes, As you said, it's not just absent infrastructure. So a lot of the system guys get it first. And then on the business side, they see it from more of the making money. So you see the impact of the application changing the business model. It's a retail app or whatever they get it. That that's gonna be the future. Yeah, it depends on where you're coming from. >>It does. It does. And what's interesting is to >>see how this community has evolved and actually, how we've evolved to be able to support people along the way. So as you remember, when you were first year, it was really some techies who realized they needed to learn something new. So is about learning about software and AP eyes. And then we evolved. It became about coding. So how do we use a definite automation exchange in code exchange to use a software based model to build community code around networking use cases because they wanted to use it and get it into use cases. And then now we have people are like, Okay, I'm doing it, I get it. But I can't get my business leaders to understand. So now we're actually helping them express the business case and create use cases that solve business problems more directly, so >>your access to customer success >>and customer success. So now explain that piece. What is that? How >>to be successful at training is everything >>customer direction. What is that piece? So s >>o me and my team were Cisco employees, and sometimes I mean, this doesn't get represented, but we move around the York, so you know, as different things change. And so there's a recent move where it has been in the engineering team. I've now moved into the customer experience organization. We're doing a transformation like a customer experience, customer success, transformation for Cisco and so you know, as we think about that. Well, first of all, Cisco's always been customer oriented, But what does this mean in a world of software in world of partners? ecosystems with the products and opportunities we have now. And so, as we're gearing towards this kind of customer success and customer experience model, is that, you know, they're trying to do a transformation, and it's actually very similar to what Dev Net has already done, which is specifically, let's see. So when you engage with a company on new technology, we can say Okay, come here to the DEV Net Zone and learn about the AP eyes, you know. But as you're working with a customer and you say, Hey, you know you're from the customer, let's go on this journey together. Did you know that we have AP eyes? Let's learn about AP eyes. >>And did you know that >>this product performs this function? But it also has AP eyes. So let's teach you about those. Then you learn a different aspect of the product that you might not have thought about before because you're like, Oh, it can be a platform and then you say, Hey, and you know you need to solve automation. This can be used to solve automation, and so then you're like, Oh, I'm thinking about automation, but how do I do it? so you can't have just one product. That's >>that's a progression that depends on what the customer's orientation is, whether environment looks like >>so it >>means, like start to evolve and think about their problem. Actually, their problem is automation. Their problem is not using this product right. They're trying to solve a bigger product and hopefully this is a bigger business problem or an automation problem. And this product is a piece of the puzzle into it. So we want to kind of engage in the full discussion from what is your need, an automation and then work backwards toe like, How can this product help? And so it's kind of like turning things upside down and ensuring the customer uses. And, you know, we understand their business problem. We're helping them solve it. And this is how these products can play a role in helping you achieve that >>in every business is looking at that from the corner office. They all want to drive automation into their business. They're looking at okay, if the economy turns out more automation, whether it's you know, you see an R P. A takeoff is the cloud is supporting that, Yeah, it's a big trend >>is huge, and it's, you know, and actually moving to an automation infrastructure. It's not like buy a new product and you've automated and you're done. It's actually very hard, and it requires an architectural shift. It means, like I'm going to start to build telemetry, analyze data and get insights from it. Well, if you don't have that implemented somewhere, then you need to architect for them. And then once you start building into that and seeing dashboards and then connecting that into other business APS, then you start to go further and further so every step along the way, we want to get them closer to an automation architecture. But that takes work, >>and it's cultural as well as people hear automation. If it well, that's my job and so >>little >>education. And then once they see it, Oh, you mean I could get rid of all these things I don't like to do, and I can do this instead. Then they really lean in and create new value. >>Yeah, So what we're getting at is this, like, really interesting. I'll call it a new technology trend of looking at kind of automation, plus Ai together, right? And so I've been talking about it out here in some places, which is now we've been talking about automation. We've been talking about AI. You look at these together. There's a set of people who are like, Let's think about what automation means. It could mean Oh my gosh, someone's going to take my job away. I don't need people anymore That would be called like autonomous. And there's some things that you do want to make autonomous and work themselves. But then you can also look at kind of assisting humans. Right? So assisting like, what are you trying to do? Roll out configurations across different places and get them set up where we can automate that and you can assist a human? And being able to do it on this next age is augmenting humans. What is there that a person really couldn't do that they can do now in a night? Example of that is, you know, you take a look at threat intelligence and security going around the world. Cisco has products around the world that are looking for security threats. You put those together, you can see a threat before it comes to a customer environment and say, Hey, we found this threat. We better shut it down over in your system to make sure you're blocked and protected from it. You've augmented human capability, you know, using automation and AI. >>You know, one of the things a lot of companies do is they focus on a big wave and they focus on it. They get on that new wave. Cisco's on a lot of different ways. You got I, O. T. And Security, which you were talking about. This kubernetes and Cloud native is like all these collaboration. They're all their own big waves coming. So I have to ask you because you've been so successful, definite and then a great leader in the industry with all your experience. What's your vision as this comes in? Because Cisco is that one of the benefits uniquely positioned with all the complexity, all the opportunities to the Dev ops, like across the board up and down the stack, these waves are coming. It's not just one. You have a focus on kubernetes. You got a focus on security. There's all these different big things that you guys are working on. What's your vision >>on how >>this all plays out >>like so while there's different, there's different things going on kubernetes and cloud. You know, we're doing networking. What's going on in I O. T and Edge Computing and the Future of Cognitive Collaboration and AI and ML, And you know all of this kind of thing a security I don't actually view them as separate. Actually view them is all part of a bigger system, right? They're part of a platform that's trying to solve a bigger problem, >>and the secret is AP ice. So it's actually a >>combination of architecture in AP eyes and how this works is a fabric together and you know there's benefit. Like if you're trying to do security, sure, you can use security products to do security. But why don't you also use network segmentation to do security, like literally segment out pieces of the network and, you know, data and APS that should not be talking to other places and use that for security? So, you know, I kind of view it is all working together towards a bigger architecture because you're using Ap eyes. You can start to put these things together and start to apply policies across these different domains. So this kind of whole new area, another new technology trend, is looking at multi domain opportunities and cross architecture. So that's really key >>in the data that you get out of that as well, right? Data and metadata that you can analyze and then act upon. Yes, Dr. Inside >>multi domain, multi clouds Having >>data models, right? Look at how do you take, you know, so that all these different systems are adding up to a everything you need to create data models that these different applications can kind of pour into >>that used to be locked inside of a box. Sitting in >>these types of application would have its own >>kind of model, But we're really all working towards the bigger thing in software that lets you down in >>the silicon is a great thing to get so looking One coming, Yes, moving from the box of the chip. Yeah, not a bad strategy. >>Super interesting. So, yeah, >>if you look at, you know, where are the bottlenecks in this? And this is where you need to rethink what your business strategy is. And it's just like you down in the optics down at that layer is where the big opportunities are. And if we can differentiate and provide value in that space, then that's what we've done. We >>were riffing the other night in the taxi came in I said, The day of Digital and digital, which is the Internet's all digital. Now the business model is the killer app, and we're just more of a provocative statement like, What are you trying to dio with that? What all this is? What's the purpose of all this? >>Yeah, I >>have a business model that actually works. >>It is, But it is, Yeah, >>and what's interesting about the business model? Also, to think about that? It's not just your own business model. It's again. That's where that's why I called our new group ecosystem success. It's what you do, you know. And there's this whole model of success, meaning you your customer, your supply chain up above you and then how you deliver. But it's east west now, too, right? It's like, How does your innovation work with your partner's innovation? Another area that and how did this all happen together? Like, how do you take trends in security and advances there and, you know, in workforce and people. And as you take a look at, you know, everything that's happening in cloud and then intersect so that we're all successful >>and it's enabled by what you're saying before automation and AI obviously supported by Cloud AP eyes and data across that system that you guys were talking >>about, I think that I think the bumper sticker for Cisco's Cisco connects businesses because that's really what you're doing. >>There we go way >>shut up for the 1st 500 >>Yes, yes, yes. So yes. So some of the big news over here is that well, in this >>world of where the infrastructure becomes programmable. So what Cisco's had a long time is Cisco's sort of certification program. So we have ccn a Cisco Certified Network Associates. Si Si n Pi's CC III is the expert level, and that's been an industry standard for the last 26 years, and people have job roles. They've gotten promotions, they get recognized, their certified for delivering quality, and what we've introduced is the definite certifications. So, in addition to the engineering certifications or the software certifications and Devon, it's kind of growing to the next level. By so far, everybody who's been in here has been into definite because of their hearts and because they knew they had to learn anything. But now we're giving them a certification so they can be recognized as their efforts, and we're expanding Cisco certification to cover it. Now. This represents the move of engineering plus software together in your I T teams and together for your technology teams and the new certifications. The definite set of Cisco Live February 24th the 1st 500 people to earn a definite certification. We're going to call the definite 500. And >>so they want to be the first >>ones who are really stepping forward in this new industrial shift towards combining engineering and software, making the world of the infrastructure talking to business and driving business happen. >>Well, we'd love to be First, get a list of >>thousands of people 500 seats that will take. We'll take the 501st 10,000 in the 1,000,000 I dive >>Heard Susie. Some Cisco VP's want to get into that 500. >>They yes, Gamification. >>Always a good strategy, Susie. Great to watch your successes with folks watching, seeing definitely come from an idea execution and now core to the business model's been quite an evolution. Congratulations. Always success. >>Thank you. And thank you for joining us on this journey. >>So we've been working together on it. >>We've learned a lot. It's been so much fun. We're in the DEV Net zone. I'm John Furrier Dave Vellante with Susie Wee, the chief of the definite team and the big zones gets bigger every year. And the cube's getting big air thanks to you and the team. Appreciate it is to keep more live coverage from Barcelona. Cisco live 2020 after this short break. >>Yeah, yeah, yeah.

>>live from Atlanta, Georgia. It's the Q covering Answerable Fest 2019. Brought to you by Red Hat. >>Welcome back. This is the Cubes Live coverage of anti professed 2019 here in Atlanta. Georgia Instrument in my co host is John Ferrier and happy to welcome to the program the first time guest pile sing. Who's a principal solutions engineer with F five? Of course. Five's a partner of Anti Bowl In the keynote this morning when they were laying out You know how to use all of these pieces? Oh, I need a load balancer. Great. Here. Here's five to the rescue. So tell us a little bit about you know your role inside F five and kind of fights activities here at the show. >>Sure. Sure. Uh, so thank you for the introduction. Yeah, My name is our piloting principal solution. Ngo S O. I work a lot with different alliance partners and answerable being one of them. Of course, s O. I develop technical integrated joint solutions with answerable. You know, we've had a great, great working relationship with the answerable. They've been absolutely wonderful to work with on at this summit. We have various activities We had a workshop at the contributor summit. We had a session yesterday. We have another workshop on Thursday. So we're really busy, you know, the boots being flowing. And so far, it's been an awesome experience. >>The other people of the show here, they really dig into what they're doing. Ah, you know, even on the bus ride to the party last night, people are talking about their configurations at lunchtime. Everybody is talking about it. Bring us inside a little bit, you know? So is the new collections what people are asking you about? Are there other deployment ways? You know, what are some of the things that are bringing people to talk to >>people That kind of talking, you know, on a broad spectrum, you know, there's some people are just starting out with answerable. They just want to know, you know, how do I write a play book with their 500? Get it running? Others are a little more advanced, you know, Let's get into rules, you know? What are we doing with rules? And then now collections is coming on top of mine. You know how you guys doing with collections, So of course we are in lockstep. You know, we have the first collections out. We're gonna bundle playbooks and a lot of work flows and rules that gonna be someone. It's gonna be easy for customers to just download used these work clothes out of the box and get started with that five. But we've had, you know, different use cases, different questions around Day zero deployment was his data management. Bliss is monitoring was back of resource. All sorts of questions >>in one of the things that's come up is, you know, hit the low hanging fruit and then go to the ant, worked close in tow and is more of a kind of the bigger opportunities. But, you know, we've been talking about Dev Ops two for 10 years, and this to me has always been like the area that's been ripe for Dev ops, configuration management, a lot of the plumbing. But now that it's 10 years later starting to see this glue layer, this integration layer come out and the ecosystem of partners is growing very rapidly for answerable. And so there's been a very nice evolution. This is kind of a nice add on to great community great customers for these guys. What's the integration like as you work with answerable? Because as more people come on and share and connect in, what's it take? What are some of the challenges? What some of the things that you guys need to do our partners need to do with danceable, >>Right? So contributing is, you know, it's been a little slow, I would say, because firstly, they got a kind of lawn answerable and they gotta learn. You know what sensible galaxy. How can I walk around it? And then there's the networking piece, right? How do I now make it work with F five? You know, is this role good enough? Should I be contributing or not? So we're working closely with, you know, Ned, ops engineers as well as the world changes to kind of say, you know, whatever you think is a good work, so is good enough to go there. So, you know, get your role uploaded on galaxy and, you know, show us what you're doing. It doesn't have to be the best, but just get it out there so way have a lot of workshops. You know, we also have this training on F. I called Super Netapp, which is kind of targeting that walked in that office. Engineers. So we're trying to educate people so that everybody is on board with with us. >>One of the conversation we've been having a lot this week has been about the collaboration between teams and historically that's been a challenge for networking. It's alright. Networking going to sit in the corner, tell me what you need. Oh, wait, You need those things changes. Nope, I'm not gonna do it for you are, you know. Okay, wait, get me a budget in 12 months and we'll get back to you. So, uh, how are things changing? Are they changing enough in your customers environments? >>That's a good question. So it is changing, but it's changing slowly. There's still a lot of silos like nettles. Guys are doing their stuff there. Watch guys are doing their self. But with automation is it's kind of hang in together because, you know, the network's engineers have their domain expertise, develops have tails. But, you know, we were able to get them in the same room because we don't get five and then we don't automation and and then they connect. They're like, Oh, you guys are doing what we've already done So it's happening, But it's so, but it's definitely drops that develops. You don't think this is >>the chairman? We've been covered. A lot of we've had a lot of events. We've talked about programmable infrastructure. Infrastructures code is kind of in the butt when you start getting into the networking side, because very interesting when you can program things, this is a nice future. Head room for Enterprises As their app start to think about micro service is what you're taking on the program ability of networking. How do you guys see that? What's your view? >>So program ability In the networking space, it's it's catching up like just five. As a company, we started with just rest a P. I called. Now we're going to moving to answerable to F eyes. Also coming out with this AP I call declared a baby I we have this F ai automation tow chain where we're kind of abstracting more and more off how much user needs to know about the device but be able to configure it really easily. So we're definitely moving towards that and I see other other networking when there's also kind off moving towards that program ability for sure. >>Did you have any specific customer stories you might be able to share? Understand. You might not be able to give the name of the company, but it's always helps to illustrate. >>Yeah, sure, definitely. So we had one customer who, you know, they had an older or not told a different load balancer. And they want to know my great order, the Air five. So they had a lot of firewall rules and, you know, a lot of policies that they wanted to move over. So they used to have these maintenance windows and move on application at a time, eh? So they started, came across sensible, started using answerable, and they were able to migrate like 5 to 10 applications for maintenance window. And they will, you know, they loved it. They've been using answerable. They've been great providence. Or what goes into our modules, you know, really helping us guiding us as well as to what they need. So they were a great, you know, customer story. Another customer we had was you know, we get a lot of use cases for if I that we want to be able to change an application or the network without incurring any downtime, you know, fail overs, it could be as simple as as broader Sze between data centers or, you know, something simple. But what this company did want to shift between fellow between data centers, they got into answerable, they were able to do it in minutes was his hours and, you know they loved it. >>I got to ask you about a Zen engineer. You think about the data center cloud we get that that's been around that workings been great, getting better as five G and I o. T Edge kind of comes into the picture how routing and networking works with compute and edge devices start to be an opportunity for these kinds of automation. How do you guys view that's future state of EJ and and as the surface area of the network gets larger and the edges really part of the equation now his need for automation great need for seeing observe abilities. Super hot area with micro service is now you got automation kind of Ah, nice area. Expand on. What's your thoughts on beyond the data center >>so beyond the data center. So f five is indifferent clouds right to donate ws as your g c p It's out there. We also have like you know, we've recently collaborated with not collaborated. You know, engine ex has become a part of their five. So, you know, we're out there on definitely with I od and you know, no one date us and the specific that there is a boom off applications and you know, we wantto not be a hindrance to anyone who's trying to automate applications anywhere. So ah, goal is also at five is everywhere and anywhere and securing abs, making them available >>and securities 200 big driver of automation. >>I'm glad you brought up in genetic. So you know, we've been very familiar seeing Engine X at a lot of the cloud shows how Zenger next kind of changing the conversation you're having with customers. >>So having a lot of conversations with develops engineers about an genetics, you know, some of them are already using it in the day to day activity, and, you know, they don't want to see how a five and engine excite gonna gonna come together And you know what kind of solutions we can offer. So if I were working on that strategy, But you know, definitely that there is a link between us and engine aches, and customers are happy to know that. You know, we're kind of now on the same pot, So if they're in the cloud on from, you know, they can choose which one they want, but they're going to get the same support and backing off. Five. >>Great. We're getting towards the end of answerable fests. Give us what you want. Kind of some of the key takeaways. People tohave about five here at the show. >>Sure. You know, if you haven't started automating at five Invincible. My key takeaways, you know, get started. It's really simple. We have sessions now. We have a workshop on those. They look that up a great resource for us. It's just answerable dot com slash five. We have great resources. Um, are answerable. Models are supported, were certified by that had answerable. So, you know, just dive in and start automating >>pale, saying Thank you so much for the update. Really appreciate it. And congratulations on the progress. >>Thank you so much. >>for John, for your arms to minimum, getting towards the end of two days water wall coverage here. Thanks, as always for watching the Cube.

>> Hey, welcome back already, Jeffrey. Here with the Cube, we are high top San Francisco in the Salesforce Tower in the newest center offices. It's really beautiful and is part of that. They have their San Francisco innovation hubs, so it's five floors of maker's labs and three D printing and all kinds of test facilities and best practices Innovation theater and in this studio, which is really fun to be at. So we're talking about hybrid cloud in the development of cloud and multi cloud. And, you know, we're, you know, continuing on this path. Not only your customers on this path, but everyone's kind of on this path is the same kind of evolved and transformed. We're excited. Have a couple experts in the field. We got Larry Soccer. He's the global managing director of Intelligent Cloud Infrastructure Service's growth and strategy at a center. Very good to see you again. Great to be here. And the Jay Patel. He's the senior vice president and general manager, cloud provider, software business unit, being where enemies of the people are nice. Well, so, uh so first off, how you like the digs appear >> beautiful place and the fact we're part of the innovation team. Thank you for that. It's so let's just >> dive into it. So a lot of crazy stuff happening in the market place a lot of conversations about hybrid cloud, multi cloud, different cloud, public cloud movement of Back and forth from Cloud. Just wanted. Get your perspective a day. You guys have been in the Middle East for a while. Where are we in this kind of evolution? It still kind of feeling themselves out. Is it? We're kind of past the first inning, so now things are settling down. How do you kind of you. Evolution is a great >> question, and I think that was a really nice job of defining the two definitions. What's hybrid worse is multi and simply put hybrid. We look at hybrid as when you have consistent infrastructure. It's the same infrastructure, regardless of location. Multi is when you have disparate infrastructure. We're using them in a collective. So just from a level setting perspective, the taxonomy starting to get standardized industry starting to recognize hybrid is a reality. It's not a step in the long journey. It is an operating model that's gonna be exists for a long time, so it's no longer about location. It's a lot harder. You operate in a multi cloud and a hybrid cloud world and together, right extension BM would have a unique opportunity. Also, the technology provider Accenture, as a top leader in helping customers figure out where best to land their workload in this hybrid multicolored world, because workloads are driving decisions right and one of the year in this hybrid medical world for many years to come. But >> do I need another layer of abstraction? Cause I probably have some stuff that's in hybrid. I probably have some stuff in multi, right, because those were probably not much in >> the way we talked a lot about this, and Larry and I were >> chatting as well about this. And the reality is, the reason you choose a specific cloud is for those native different share capability. Abstraction should be just enough so you can make were close portable, really use the caper berry natively as possible right, and by fact, that we now with being where have a native VM we're running on every major hyper scaler, right? And on. Prem gives you that flexibility. You want off not having to abstract away the goodness off the cloud while having a common and consistent infrastructure. What tapping into the innovations that the public cloud brings. So it is a evolution of what we've been doing together from a private cloud perspective to extend that beyond the data center to really make it operating model. That's independent location, right? >> Solarium cures your perspective. When you work with customers, how do you help them frame this? I mean, I always feel so sorry for corporate CEOs. I mean, they got >> complexities on the doors are already going on >> like crazy that GDP are now, I think, right, The California regs. That'll probably go national. They have so many things to be worried about. They got to keep up on the latest technology. What's happening in containers away. I thought it was Dr Knight. Tell me it's kubernetes. I mean, it's really tough. So how >> do you help them? Kind of. It's got a shot with the foundation. >> I mean, you look at cloud, you look at infrastructure more broadly. I mean, it's there to serve the applications, and it's the applications that really drive business value. So I think the starting point has to be application lead. So we start off. We have are intelligent. Engineering guys are platform guys. You really come in and look And do you know an application modernisation strategy? So they'll do an assessment. You know, most of our clients, given their scale and complexity, usually have from 520,000 applications, very large estates, and they got to start to freak out. Okay, what's my current application's? You know, you're a lot of times I use the six R's methodology, and they say, OK, what is it that I I'm gonna retire. This I'm no longer needed no longer is business value, or I'm gonna, you know, replace this with sass. Well, you know, Yeah, if I move it to sales force, for example, or service now mattress. Ah, and then they're gonna start to look at their their workloads and say OK, you know, I don't need to re factor reform at this, you know, re hosted. You know, when one and things obviously be Emily has done a fantastic job is allowing you to re hosted using their softer to find a data center in the hyper scale er's environments >> that we called it just, you know, my great and then modernized. But >> the modern eyes can't be missed. I think that's where a lot of times you see clients kind of getting the trap Hammer's gonna migrate and then figure it out. You need to start tohave a modernisation strategy and then because that's ultimately going to dictate your multi and your hybrid cloud approaches, is how they're zaps evolve and, you know, they know the dispositions of those abs to figure out How do they get replaced? What data sets need to be adjacent to each other? So >> right, so a j you know, we were there when when Pat was with Andy and talking about, you know, Veum, Where on AWS. And then, you know, Sanjay has shown up, but everybody else's conferences a Google cloud talking about you know, Veum. Where? On Google Cloud. I'm sure there was a Microsoft show I probably missed. You guys were probably there to know it. It's kind of interesting, right from the outside looking in You guys are not a public cloud per se. And yet you've come up with this great strategy to give customers the options to adopt being We're in a public hot. And then now we're seeing where even the public cloud providers are saying here, stick this box in your data center and Frank, this little it's like a little piece of our cloud of floating around in your data center. So talk about the evolution of the strategy is kind of what you guys are thinking about because you know, you're cleared in a leadership position, making a lot of interesting acquisitions. How are you guys see this evolving? And how are you placing your bets? >> You know, that has been always consistent about this. Annie. Any strategy, whether it's any cloud, was any device, you know, any workload if you will, or application. And as we started to think about it, right, one of the big things be focused on was meeting the customer where he's out on its journey. Depending on the customer, let me simply be trying to figure out looking at the data center all the way to how the drive in digital transformation effort in a partner like Accenture, who has the breadth and depth and something, the vertical expertise and the insight. That's what customers looking for. Help me figure out in my journey. First tell me where, Matt, Where am I going and how I make that happen? And what we've done in a clever way, in many ways is we've created the market. We've demonstrated that VM where's the omen? Consistent infrastructure that you can bet on and leverage the benefits of the private or public cloud. And I You know, I often say hybrids a two way street. Now, which is you're bringing Maur more hybrid Cloud service is on Prem. And where is he? On Premise now the edge. I was talking to the centering folks and they were saying the mitral edge. So you're starting to see the workloads, And I think you said almost 40 plus percent off future workers that are gonna be in the central cloud. >> Yeah, actually, is an interesting stat out there. 20 years 2020 to 70% of data will be produced and processed outside the cloud. So I mean, the the edges about, you know, as we were on the tipping point of, you know, I ot finally taking off beyond, you know, smart meters. You know, we're gonna see a huge amount of data proliferate out there. So, I mean, the lines between public and private income literary output you look at, you know, Anthony, you know, as your staff for ages. So you know, And that's where you know, I think I am where strategy is coming to fruition >> sometime. It's great, >> you know, when you have a point of view and you stick with it >> against a conventional wisdom, suddenly end up together and then all of a sudden everyone's falling to hurt and you're like, This is great, but I >> hit on the point about the vertical ization. Every one of our client wth e different industries have very different has there and to the meeting that you know the customer, you know, where they're on their journey. I mean, if you talk to a pharmaceutical, you know, geekspeak compliance. Big private cloud started to dip their toes into public. You know, you go to minds and they're being very aggressive public. So >> every manufacturing with EJ boat back in >> the back, coming to it really varies by industry. >> And that's, you know, that's a very interesting here. Like if you look at all the ot environment. So the manufacturing we started see a lot of end of life of environment. So what's that? Next generation, you know, of control system's gonna run on >> interesting on the edge >> because and you've brought of networking a couple times where we've been talking it, you know, and as as, ah, potential gate right when I was still in the gates. But we're seeing Maura where we're at a cool event Churchill Club, when they had Xilinx micron and arm talking about, you know, shifting Maur that compute and store on these edge devices ti to accommodate, which you said, you know, how much of that stuff can you do at the adverse is putting in. But what I think is interesting is how are you going to manage that? There is a whole different level of management complexity when now you've got this different level of you're looting and security times many, many thousands of these devices all over the place. >> You might have heard >> recent announcements from being where around the carbon black acquisition right that combined with our work space one and the pulse I ot well, >> I'm now >> giving you a management framework with It's what people for things or devices and that consistency. Security on the client tied with the network security with NSX all the way to the data center, security were signed. A look at what we call intrinsic security. How do we bake and securing the platform and start solving these end to end and have a park. My rec center helped design these next generation application architectures are distributed by design. Where >> do you put a fence? You're you could put a fence around your data center, >> but your APP is using service now. Another SAS service is so hard to talk to an application boundary in the sea security model around that. It's a very interesting time. >> You hear a lot of you hear a >> lot about a partnership around softer to find data center on networking with Bello and NSX. But we're actually been spending a lot of time with the i o. T. Team and really looking at and a lot of our vision, the lines. I mean, you actually looked that they've been work similarly, agent technology with Leo where you know, ultimately the edge computing for io ti is gonna have to be containerized because you can need multiple middleware stacks supporting different vertical applications, right? We're actually you know what we're working with with one mind where we started off doing video analytics for predictive, you know, maintenance on tires for tractors, which are really expensive. The shovels, It's after we started pushing the data stream up it with a video stream up into azure. But the network became a bottleneck looking into fidelity. So we gotta process there. They're not looking autonomous vehicles which need eight megabits low laden C band with, you know, sitting at the the edge. Those two applications will need to co exist. And you know why we may have as your edge running, you know, in a container down, you know, doing the video analytics. If Caterpillar chooses, you know, Green Grass or Jasper that's going to co exist. So you see how the whole container ization that were started seeing the data center push out there on the other side of the pulse of the management of the edge is gonna be very difficult. I >> need a whole new frontier, absolutely >> moving forward. And with five g and telco. And they're trying to provide evaluated service is So what does that mean from an infrastructure perspective. Right? Right, Right. When do you stay on the five g radio network? Worse is jumping on the back line. And when do you move data? Where's his process? On the edge. Those all business decisions that need to be doing to some framework. >> You guys were going, >> we could go on. Go on, go. But I want to Don't fall upon your Segway from containers because containers were such an important part of this story and an enabler to the story. And, you know, you guys been aggressive. Move with hefty Oh, we've had Craig McCloskey, honor. He was still at Google and Dan great guys, but it's kind of funny, right? Cause three years ago, everyone's going to Dr Khan, right? I was like that were about shows that was hot show. Now doctors kind of faded and and kubernetes has really taken off. Why, for people that aren't familiar with kubernetes, they probably here to cocktail parties. If they live in the Bay Area, why's containers such an important enabler? And what's so special about Coburn? 80 specifically. >> Do you wanna go >> on the way? Don't talk about my products. I mean, if you >> look at the world is getting much more dynamics on the, you know, particularly you start to get more digitally to couple applications you started. You know, we've gone from a world where a virtual machine might have been up for months or years. Toe, You know, obviously you have containers that are much more dynamic, allowed to scale quickly, and then they need to be orchestrated. That's essential. Kubernetes does is just really starts to orchestrate that. And as we get more distributed workloads, you need to coordinate them. You need to be able to scale up as you need it for performance, etcetera. So kubernetes an incredible technology that allows you really to optimize, you know, the placement of that. So just like the virtual machine changed, how we compute containers now gives us a much more flexible portable. You know that, you know you can run on anything infrastructure, any location, you know, closer to the data, et cetera. To do that. And I >> think the bold movie >> made is, you know, we finally, after working with customers and partners like century, we have a very comprehensive strategy. We announced Project Enzo, a philosophy in world and Project tansy really focused on three aspects of containers. How do you build applications, which is pivotal in that mansion? People's driven around. How do we run these arm? A robust enterprise class run time. And what if you could take every V sphere SX out there and make it a container platform? Now we have half a million customers. 70 million be EMS, all of sudden that run time. We're continue enabling with the Project Pacific Soviets. Year seven becomes a commonplace for running containers, and I am so that debate of'em czar containers done gone well, one place or just spin up containers and resource is. And then the more important part is How do I manage this? You said, becoming more of a platform not just an orchestration technology, but a platform for how do I manage applications where I deploy them where it makes most sense, right? Have decoupled. My application needs from the resource is, and Coburn is becoming the platform that allows me to port of Lee. I'm the old job Web logic guy, right? >> So this is like distributed Rabb logic job on steroids, running across clouds. Pretty exciting for a middle where guy This is the next generation and the way you just said, >> And two, that's the enabling infrastructure that will allow it to roll into future things like devices. Because now you've got that connection >> with the fabric, and that's working. Becomes a key part of one of the key >> things, and this is gonna be the hard part is optimization. So how do we optimize across particularly performance, but even costs? >> You're rewiring secure, exact unavailability, >> Right? So still, I think my all time favorite business book is Clayton Christians. An innovator's dilemma. And in one of the most important lessons in that book is What are you optimizing four. And by rule, you can't optimize for everything equally you have to you have to rank order. But what I find really interesting in this conversation in where we're going in the complexity of the throughput, the complexity of the size of the data sets the complexity of what am I optimizing for now? Just begs for applied a I or this is not This is not a people problem to solve. This is this >> is gonna be all right. So you look at >> that, you know, kind of opportunity to now apply A I over the top of this thing opens up tremendous opportunity. >> Standardize infrastructural auditory allows you to >> get more metrics that allows you to build models to optimize infrastructure over time. >> And humans >> just can't get their head around me because you do have to optimize across multiple mentions. His performances cost, but then that performances gets compute. It's the network, I mean. In fact, the network's always gonna be the bottlenecks. You look at it even with five G, which is an order of magnitude, more bandwidth from throughput, the network will still lag. I mean, you go back to Moore's Law, right? It's Ah, even though it's extended to 24 months, price performance doubles. The amount of data potentially can kick in and you know exponentially grow on. Networks don't keep pays, so that optimization is constantly going to be tuned. And as we get even with increases in network, we have to keep balancing that right. >> But it's also the business >> optimization beyond the infrastructure optimization. For instance, if you're running a big power generation field of a bunch of turbines, right, you may wanna optimize for maintenance because things were running at some steady state. But maybe there's oil crisis or this or that. Suddenly the price, right? You're like, forget the maintenance. Right now we've got you know, we >> got a radio controlled you start about other >> than a dynamic industry. How do I really time change the behavior, right? Right. And more and more policy driven. Where the infrastructure smart enough to react based on the policy change you made. >> That's the world we >> want to get to. And we're far away from that, right? >> Yeah. I mean, I think so. Ultimately, I think the Cuban honeys controller gets an A I overlay and the operators of the future of tuning the Aye aye engines that optimizing, >> right? Right. And then we run into the whole thing, which we've talked about many times in this building with Dr Room, A child re from a center. Then you got the whole ethics overlay on top of the thing. That's a whole different conversation from their day. So before we wrap kind of just want to give you kind of last thoughts. Um, as you know, customers Aaron, all different stages of their journey. Hopefully, most of them are at least at least off the first square, I would imagine on the monopoly board What does you know, kind of just top level things that you would tell people that they really need just to keep always at the top is they're starting to make these considerations, starting to make these investments starting to move workloads around that they should always have kind of top >> of mind. For me, it's very simple. It's really about focused on the business outcome. Leverage the best resource for the right need and design. Architectures are flexible that give you a choice. You're not locked in and look for strategic partners with this technology partners or service's partners that alive you to guide because the complexities too high the number of choices that too high. You need someone with the breath in depth to give you that platform in which you can operate on. So we want to be the digital kind of the ubiquitous platform. From a software perspective, Neck Centuries wants to be that single partner who can help them guide on the journey. So I think that would be my ask. It's not thinking about who are your strategic partners. What is your architecture and the choices you're making that gave you that flexibility to evolve. Because this is a dynamic market. What should make decisions today? I mean, I'll be the one you need >> six months even. Yeah. And And it's And that that dynamic that dynamics is, um is accelerating if you look at it. I mean, we've all seen change in the industry of decades in the industry, but the rate of change now the pace, you know, things are moving so quickly. >> I mean, little >> respond competitive or business or in our industry regulations, right. You have to be prepared for >> Yeah. Well, gentlemen, thanks for taking a few minutes and ah, great conversation. Clearly, you're in a very good space because it's not getting any less complicated in >> Thank you. Thank you. All right. Thanks, Larry. Ajay, I'm Jeff. You're watching the Cube. >> We are top of San Francisco in the Salesforce Tower at the center Innovation hub. Thanks for watching. We'll see next time. Quick

>> from Seattle WASHINGTON. It's the Q covering AWS Imagine brought to you by Amazon Web service is >> Hey, welcome back already. Jeffrey. Here with the Cube. We're in downtown Seattle at the AWS. Imagine e do you conference? It's the second year of the conference, part of the public sector. Kind of a carve out with Andrew Coast Group. Really all about education on an education from K through 12 to higher education, community, college education, retraining of people coming out of the military. It's a huge segment, and we're really excited to have our next guest. He's going to give a keynote later this afternoon on a new pay for that he just published. So we welcome Richard Palmer, the practice leader for public sector for Open Richard, Great to see you. >> Good to be here. >> So tell us it's called reaching for the clouds. >> Yes. Look, what we found is that for many universities are moving into the cloud has proved to be difficult, that there are lots of barriers in the way and they get a part of the way along, and all of a sudden they hit a wall and it takes time. The big number that we keep looking at is only 30% of application workloads or in the cloud at this point. And after 67 years off the public cloud being available, it really suggests that there are various significant barriers. >> So what are some of those driving again? As you said, we were kind of well down this path. So whether it's just legacy stuff that's not worth moving. But I would imagine most of the new workloads are coming in. I mean, they've got to be getting with this program. >> Purchasing sess is an obvious ploy. It gets you right out of all of the problems that you had before. Look, the first thing that that bury that people find is the clouds different. So the skills that you've got in your team, the way that you were finances, your project methodologies everything is different to engage with cloud properly and the way that you design and build applications is different in the cloud. So taking a traditional organization trying to go cloud has everybody involved from the CFO with funding cycles to governance board, which are the most wonderful thing ever in higher education. Great away through to staff skills end the way that start. Think about applications. And if there's one thing in my time in hired that I saw it time and time again, it's the instant legacy problem. So somebody creates something and does it a special way because they know better than the vendor. And we had this infrastructure anyway. So why not reuse it? And they create an orphan that is neither manageable by the vendor nor manageable by the organization requires that individual to remain with the organization. We're well past their expiry date. Let's put it that way because they put things in that just unique to this single installation. And that's the transformation you see in the cloud. It's software as a service. That's it's a native thing. You don't look at how it's hosted. You don't care about anything but using it. But the danger point is in moving to infrastructure service or platforms. The service that you carry over that customization thinking right, which creates if you're like instant legacy, right s so so that that's one of the barriers that we say. >> I'm just curious because you have to really big things, you know, just the whole financing and the way you buy it, the way you budget is completely different than a big capital expenditure that you're appreciating over time. And then, as you said, the skill set. So in the enterprise space, right? Everyone's got big piles of money, and they hired the biggest size right to come help him. They have incident skills. They can bust him in by the many dozens and help them with some of that financial. How is the system integrator or the service is kind of industry evolving an education to help them make this transition. >> So they're there >> two ways and education bigger public sector enterprise has that awful problem that if you provide advice, often you can't provide. Service is we tend to beginning over that a little bit now. But the obvious way is most higher. Education institutions who have moved through that process have engaged a strategic partner to help them to plan right. That's the first piece on dhe there. There are lots of them around, and often they're very good at it, moderately expensive. But the thing that they don't tend to do as well is to find the right partners for the actual transition. So often engineers are trying thio, learn cloud technologies and apply them on and get it right the first time around. And, of course, we all know that in the experimentation you want tohave learn fast and then re learn when you you've come to something that you shouldn't have done. Great. But if engineers thrown into a life production style project, there's no time for that relearn re platform. You learn as you go, right. So having it not so much in a sigh about an implementation partners really important. And luckily, many of the the vendors or their networks are really quite good at doing those mid level implementation projects. Now it's a matter of finding the right one great, but certainly in my home Australian context for almost a LL moves the cloud. There's somebody who's who has done it several times before in education and has a good reputation. So I suspect in the U. S. That's multiplied 10 times. Larger economy is probably 10 times as many people who have done it well before, >> right? So the other piece of I'm curious if this came out right, so there's the cloud as a more efficient way to run to your infrastructure and in all that that means and cost savings. But much more importantly, in some of the things we're doing today is really to enable innovation to enable you to develop stuff faster, whether it's Alexa or some of these other things we're hearing about. I mean, how does that play in people, you know, kind of getting through the pain of getting through this process, because if you don't innovate and we just had just had somebody on before, he said. They're worried about competing with online and really having a good experience for the students on campus. Is that the driver? Is it the cost savings? Is it? How do you How do you see that kind of slicing? >> We've seen several drivers. Mum. That's most common is student success and retention that is ubiquitous in higher education to bring the cost down and to make sure that every intervention that the college or school does is meaningful and produces a positive outcome. So that's kind of the core business. And so things like analytics play into that, and now machine learning more and more the motivator. Yes, this competitive motivator but it actually works. The same for their up there on campus is their online that if you can help every student to be successful, you gain reputation. If you could do it efficiently, you drive down costs, so that's beneficial rate. But then, then you're asking about innovation. That's a step after you've put away pieces together to do core business well, right? And the key elements in doing core business well is shifting from traditional too agile. Because EJ, our projects have benefits on the business side as well as the technical side. One of the most important things is to be able in the edge. I'll space is to be able to interact quickly, and that is just a CZ. Important on the academic side is is on the technical side, because usually the academic or the administration, I don't know what they need until they've actually experienced it. Most times, when you're replacing the system, you ask the people on the front line what they want, and they answer exactly what the last system did, but better so that innovation cycle you do then measure and cycle through is part of the edge. I'll pace and the second part of it is being out to differentiate between what is actually going to make a difference for your students and what is just pure women. You know what we think might be better, but is actually gonna cost cost money, create legacy, move us away from state of practice and actually is gonna bring the benefit so really important to attach riel KP eyes to differentiating practices on get away from customization, which produces no benefit the Third Elements platforms. Once upon a time, we used to build their special systems from the code up way shouldn't do that anymore. We shouldn't be caring about what databases underneath application platforms are faster, more effective and require listen, Herr Skills to maintain a lifetime. So that's that's the third element. >> So one of the things that the Enterprise has been able to benefit from is, you know, we just leave the AARP alone, right? Just a lot of stuff. It's just not worth lifting and shifting. But, you know, it's it's kind of customer interaction applications, and there's a whole kind of class of applications that opened up the opportunity to leverage all this kind of platforms and fast, fast development, et cetera. How is that playing out on the public sector side? Because it before turning the cameras, you talked about just the pain of lift and shift, and you run into all kinds of issues. You don't get that that good, easy win that good fast win are our date. Are they thinking in terms of, you know, setting aside kind of an innovation development team that's working on some of these kind of new age things that that aren't kind of the core systems, that maybe he he don't necessarily want a lift and shift anytime soon? >> I'm a big fan of innovation teams when you're working directly with research. I'm not sure that that's the best model for mainstream innovation. It's much more useful to leverage the folks who are actually working directly with the business people like business analysts, and to shift those into thinking beyond the Monday because the business analyst usually has a very intimate relationship in the nice way with the business partner, and they can engage with what would make life better. What would make things more productive and then to quickly bring resources in behind that idea and a quick, quick proof of concept. But you've hit on another whole issue there that the idea of a ubiquitous engagement layer that both delivers a really high quality online digital student experience but also provides a whole lot of information that can be then analyzed to work out what was the best thing to do with student is really transformative, and we're seeing the best vendors move into that space, even with traditional systems and what they're doing on I'll use a couple student management system vendors is an example, without naming them but their traditional systems, they will either host them for you or you could do it on premises. But their new analysis engagement systems are cloud based, so it doesn't melt away. Your implementation is you can buy New software is a service that gives you really good analytics and a new communications collaboration. Engagement layer, often with Syria, and collaboration tools mixed in in a brand new platform, and that's really transformed it, so it allows you to keep your transactional system in place, but risk in it with the new engagement layer. And if you can clip your university service's into that engagement layer Then you get that 360 degrees view of the student with actually out having to shift major systems, right? And, as you said, that's just money spent to lift and shift the system because there's no strategic benefit except if it will lead you to upgrade for so many universities. They're stuck with an old version of the system, either because they're customized it, or they haven't got the infrastructure to host the new version or whatever it happens to be gay. So there is a strategic benefit to be able to stay with the latest version, particularly as most good vendors are providing new features pretty regularly on the most up to date. And are any doing maintenance releases for the previous version? >> It's pretty interesting that Andrew pulled out of the of the three themes for the show. You know, tomorrow's workforce roll of the melon innovation transformation that Bell got its own its own bullet point because it is such a kind of an underlying infrastructure that drives so much value across lots of applications. And and I just found it interesting that you get kind of to retrain academic institutions in the ways of big data because it's very different than maybe the way that they you grew up thinking about data, the quantity and the way that you deal with it and how much do you have and sampling of old data versus versus all the real time flow. >> So, yes, that the next generation is autonomous and whether it's self driving cars or student advisement, we're seeing the leading edge providers provide in the education space pretty much autonomous student advising there except to the point where you go out of the mainstream. But that rep erred Good advice from bots, basically. But when you get to the real world in autonomous systems, we're going to see a real shift in even the university sector off that interact with people and the environment. If you're doing self driving cars, you're talking sub millisecond responses. So that whole world of I O. T. Plus sensing technology plus Courts Campus all coming together in the next iteration and being paralleled in the service is and maybe even the academic world, that'll probably be a bit slower, but taking the same autonomous kind of thinking and moving beyond just supplementing human human transactions. >> All right, Well, Richard Thank you for taking a few minutes. Good luck on your keynote this afternoon and we'll look forward to dig it into the paper. >> It's been a pleasure. Thank you. >> Alright, He's Richard. I'm Jeff. You're watching the cube. Where? Aws. Imagine CTU in downtown Seattle. Thanks for watching. See you next time.

>> from San Diego, California It's the queue covering Sisqo live US 2019 Tio by Cisco and its ecosystem Barker's >> We'll get back to the Cube. We are live at Cisco Live in San Diego. Study. San Diego. Lisa Martin with David Lantana and David Ayer. Super geeking out here, Susie, we is with us back with us. SPP in CTO of depth that Suzy Welcome back. Thank you. It's great to be back. So this event is massive. Cisco's been doing customer and partner events for 30 years now. What started as networkers? We? No, no, it's just alive. Something else you might not know that's also 30 years old. Dizzy. The movie, The Field of dreams. >> Wow, uh, kind of feels like the field does kind of feel like that that are one >> years yes, on ly five years. This has been so influential in Cisco's transition and transformation. You've got nearly 600,000 members in this community. Definite zone. It's jam packed yesterday today. Expect tomorrow as well? Yes, and you guys made simple, really exciting announcements. Yes, we didn't tell us >> about it, so it's fantastic. >> So basically what happens is the network has gotten very powerful. It has gotten very capable. You know, you can do intelligence machine learning you Khun Dio Intent based networking. So instead of the network just being a pipe, you can actually now use it to connect users devices applications use policy to make sure they're all connected securely. There's all sorts of new things that you could do. But what happens is, while there's all that new capability, it's in order to take advantage of it. It takes more than just providing new products and new technology. So our announcements are basically in two areas and we call it. It's like unleashing the capabilities of the new network and by doing it in to a So won is by bringing software practices to networking. So now that it really is a software based, programmable network with all of these capabilities, we wantto make sure that practice of software comes into a networking, and then the other is in the area of bringing software skills to networking because you need the right skills to be able to also take advantage of that. So if I just jump right into it, so the 1st 1 in terms of bringing software practices to networking. We've announce something that we call definite automation exchange. And so what happens is, you know, of course, our whole community builds networks. And as businesses have grown, their networks have grown right and they've grown and grown business has grown growing, grown right, and then it's become hardest, become unmanageable. So while you say there's all these great new technologies, but these things have grown in their way, so our customers biggest problem is actually network automation like How do I take my network? How do I bring automation to it? There's all the promise of it and definite automation. Exchange is built to basically help our community work towards network automation, so it's a community based developer center. What we say is that we're helping people walk, run and fly with network automation by walking. We're saying, OK, there's all these cool things you could do, but let's take it in three steps like first of all is let's walk. So first, just do a read only thing like get visibility, get insights from your network, and you can be really smart about it because you can use a lot of intelligence predictive modeling. You can figure out what's going on. So that alone is super valuable. >> Get the data. >> Get the data I learn on DH. Then next is an Okay, I'm ready to take action. Like so. Now I've learned I'm ready to take action, apply a network policy, apply a security policy, put controls into your network. That's you know. So, uh, walk, run, And then when you're ready to fly is when you're saying okay, I'm going to get into the full dev ops soup with my network. I'm going to be gathering the insights. I'm going to be pushing in control. I'm now optimizing managing my network as I go. So that's the whole slice it. So the wing fact, we want to go to them the walk, run, fly. >> And if I understand from reading your blood, Great block, by the way, >> Thank you. >> A lot of executives, right? Blog's and it's kind of short of yours is really substantively like, Wow, that was >> really something on. That's No, >> But if I understood a truck that you're gonna prime Sisko was gonna prime the pump A cz? Well, yeah, with a lot of ideas and code on DH. Yes, and then engineers can share. There's if they so choose. >> Exactly. So the key part of automation exchange beyond helping people take thes areas. The question is, how are we going to help them? Right? So what happens is what we've been doing with Definitive. We've been helping people learned to code, you know, in terms of networkers, we've been helping bring software developers into the community. We've been helping them learn to use a pea eye's all the good stuff a developer a good developer program should do. But what are networkers have said is I need help solving use cases. I need help solving the problems that I'm trying to solve, like how to get telemetry and monetary, how to get telemetry and insights from my network. How do I offer a self serve network service out to my, you know, customers line of business developers, you know, howto I automate it scale. And so what happens is there's a you know there's an opportunity or a gap between the products and AP eyes themselves and then solving these use cases so are now opening up a code repository, Definite Automation exchange, where the community can develop software that actually solves those use cases. Francisco is going to curate it. It's just going to be code on Get Hub. We'll make sure that it has the right, you know, licenses that, you know, we do some tests and it's working well with the FBI's, and then we're hoping it's going to become. We're hoping, you know, kind of the industries leading network automation code repository to solve these problems. >> Well, it's this key because big challenge that customers tell us that they have with automation is they got all these bespoke tools. None of them work together. So do you think something like this exchange can help solve that problem? >> It can. I believe it can. So the reason being is that you know, there are tools that people use and everybody's environments a little different. So some might want Teo integrate in and use answerable terra form, you know, tools like that. And so then you need code that'll help integrate into that. Other people are using service now for tickets. So if something happens, integrate into that people are using different types of devices, hopefully mostly Cisco, but they may be other using others as well way can extend code that goes into that. So it really helps to go in different areas. And what's kind of cool is that our there's an amount of code that where people have the same problems, you know, you know, you start doing something. Everyone has to make the first few kind of same things in software. Let's get that into exchange. And so let's share that there's places where partners are gonna want to differentiate. Keep that to yourselves like use that as your differentiated offer on DH. Then there's areas where people want to solve in communities of interest. So we have way have someone who does networking, and he wants to do automation. He does it for power management in the utilities industry. So he wants a community that'll help write code that'll help for that area, you know, So people have different interests, and, you know, we're hoping to help facilitate that. Because Sisko actually has a great community way, have a great community that we've been building over the last 30 years there the network experts there solving the real problems around the world. They work for partners, they work for customers, and we're hoping that this will be a tool to get them to band together and contribute in a software kind of way. >> So is the community begins to understand never automation and elect your pathway of of walk, run fly swatter. Soothe projected business outcomes that that any industry, whether it's utilities or financial services, will be able to glean from network automation. I can imagine how expensive from topics perspective it is all this manual network management. So what? Oh, that's some of the things that you projecting the future that businesses who adopt this eventually are going to be able to re >> Absolutely, I mean, just, you know, very simple. Well, so many, so many things. So, uh, in the in the case of what's a manufacturing, because you're talking about different industries? So there's a whole opportunity of connected manufacturing, right? So how do I get all of those processes connected, digitized and write. Now write things air being pretty much run in their way. But if you can really connect them in, digitize them. Then you can start to glean business insights from them. Right? Should I speed up? How's my supply chain doing where my parts Where's my inventory? Everything. You get all of that connected. That is like a huge business implications on what you can do. >> You have a kitchen, get start getting the fly will effect around all that data. Akeley. So I've always been fascinated that you see definite zone and there's these engineers ccs saying Okay, I want to learn more. I want to learn how to code numbers keep growing and growing and growing. And so you've got new certifications. Now that you're >> out of that was, >> this's huge. You need to talk about that, >> Yes, so that, you >> know, kind of the second part of our thing is like how we're bringing software skills to networking. So to get you know, the most of all this opportunity, you do need software skills. And of course, that's what Definite was originally founded on is really helping people to build those skills. But we've kind of graduated to the next level because we've teamed up with the Learning and Cisco team, which creates Cisco Start ification program. Cisco has, you know, an amazing certification program. So the C C. A is the gold standard and certifications and you know networkers around the world have that C C I status partners have built up. They pay people for that. You know any customer who's deploying now, which they will hire the CCS. So that was founded in 1993. The first see CIA, and that program in the next 26 years has grown to what it is. And what we've done is we've teamed up with them to now add a definite certification. So we're bringing in software skills along with the networking skills so that we have the Cisco certifications, the Cisco definite certifications sitting side by side and you know we believe it. You know, right now the people who you've seen in the definite Zone are the ones who know what's important. They come in there doing it. But they said, I want credit for what I'm doing. Like I get credit, I get a raise, I get bonuses. My job level depends on my networking sort of occasions. I'm doing this on my nights and weekends, but I know it's important. And now, by bringing this into the program, my company can recognise this. I'm recognized as a professional for my skills. It helps in all sorts of ways. >> So go ahead. Please >> think this just sounds way more to me than the next step. In Definite. It sounds like it's a revolution. >> It's a revolution. >> First addition in 26 years, that's bay >> now. I mean, there have been changes in the program, but it's the biggest change in those 26 years. Absolutely. And you know, like we'll see what what happens. But I think it is, Ah, step change in a revolution for the industry because we're recognizing that networking skills are important and software skills are important and critical. And if you want to build a team that can compete, that can really help your companies succeed, you're gonna want both of these skills together in your organization. And I believe that that's goingto help accelerate the industry, because then they can use all of these tools, right? So right now on it department can either hold the company down or accelerate a company to success because the question is, how quickly can you help someone adopt cloud? How can they do multi cloud? How convey innovative software speeds? And now we're here, hopefully catalyzing the network industry to be ableto work at that speed. >> I was joking. You wanna be the department of No or the Department of Go? Let's go. So is being a C C. A prerequisite to the definite certificate is not okay, so is not linear. So you're getting CC eyes obviously lining up to get certified to see him here So you could get kids out of college saying, Okay, I want in. >> Absolutely. And so the way that it works is that, um so actually you could. So what we have with the Cisco certifications for both the definite as well as the original Cisco started Take bath is that there's an associate level, which means you have about a years working experience. You know enough. So see CNN, Cisco Certified Network associate. They know enough about networking so that they can learn the fundamentals of networking and then be effective as part of a team that runs networks. So that's what that certification does for you. Way also now have a definite associate, which is ensuring that you have the software skills that you can also enter a team that's writing software applications or doing automated work flows for a network. And we have to know that all developers are not created equally. So just cause you wrote a mobile app doesn't mean that you can write software for, you know, running operational network. So the definite association is more like you need to be able to securely use AP eyes, right? So there's a lot of things that are within that. And then we have the professional in the expert levels. Um, and we have it on both sides now. Originally, way were thinking that there's the network engineer path. We're going to sprinkle a little software in there, and we'll have the definite path for a software developer, and it would be its own path. But we got feedback as we started presenting to our partners into our customers. And then they're like, No, this cannot be separate people. It's like it needs to come together. And so then we changed our how we thought about it, and we said that there's a set of engineering certifications and there's a set of software certifications. Anybody can get what they want, and you can start to combine them in very interesting ways. >> I could put together my own career, Mosaic. >> Absolutely so if you said, You know what? I am going to be that tick ass networker. And if we have the unicorn of like and I'm goingto you know over time, we're going to offer definite expert in the future. I said, I'm going to be a CC expert in the future. Be a definite expert. That's awesome. But we're not forcing folks to do it, because maybe you're going to be a CC. I get a definite associates so that you can speak the language of software and know what it does. But then you'll sit alongside a developer, and you guys will be able to speak the same language together. And we also make sure that our developers learn a bit about networking. So if you look at that associate, it's kind of 80 20 networking software, the other one's 80 20 software and networking so that they can actually work and talk to each other. >> So looking at these big waves that were writing right now and compute in network with G WiFi six s edge a prize anywhere, how is definite and the certification that you've just unleashed into the world? How is it going to enable not just the community members. Yes, who helped accelerate Companies take advantage of some of these big ways. But how is it going? Helps drive Cisco's evolution? >> And so and you bring up a great distinction, which is as we talk about a new set of applications. And we talked about this that create a definite create when you're there. Is that APP developers? If they understand the capabilities of the network, they can actually write an entirely new set of applications. Because you know, five g y fi six are better. If you understand EJ computing in the opportunity there, you know a networker will install a network that can host apse that makes edge computing riel. So there's another reason for the app developer a community to come together with the networkers. So when we talk about now, how does this help? Cisco is Well, first of all, it takes all of the networkers that are out there, and it insures that they're getting to that next level so that you're really fully using those capabilities and that worked, which can then accelerate business, you know. So it really is. The new capabilities are entirely different. Wayto look at networking that really do Tie and Dr Business On the other is the other part we're talking about is those APP developers that come in and write great applications can come in and now really be connected and actually use that whole network infrastructure and all its capabilities. So that really ties us to more kind of, you know, instead of a networker going in instead of going in and selling network kit and then figuring out the line of business things separately, you Khun, bring those applications into our ecosystem and into our offerings. So it's an integrated offering like here's a connected manufacturing offering that includes what you need to connect as well a CZ third party applications that are great for the manufacturing industry. And now you're looking at selling that whole solution >> and applications that we haven't even thought of a member in Barcelona walking into the i o. T Zone and seeing some programmable device from a police car on a camera. And, yes, some of these guys could just they're going to create things that we definite create, haven't even conceived, so you're creating sort of this new role. To me, it's like D B A You know, CC, it's now this new definite creator in a role that is going to have a lot of influence in the organization because they're driving value right there, going toe, bring people with them. People going to say, Oh, I want that. So now you think you're going to stand in Barcelona? The number of people that you've trained, I don't know, make many tens of thousands. I mean, where we have today with >> hundreds of thousands, wait half 1,000,000 5 100,000 Last year were at six >> 100,000. This was going 100,000 organic new members over the last year. So >> people here over half 1,000,000 now. >> Yeah. Yeah. So unbelievable. Yep, definitely So I know it's great. And just people are interested, right? So people are interested. People are learning, you know? And that's what makes it, you know, interesting to me is people are finding value in it, and they're coming. So s O. I think that, you know, kind of definite in the last five years has been kind of like an experiment, right? So it's just like, is the industry ready? Like do networkers really want to learn about software. What air? That we've been kind of prime ing it. And, you know, by now getting to this next level, you know, just the certifications. What we have learned from all of that is that it's really and that, you know, with the new capabilities in the network, we can really take our community and our bring new people into our community to make that opportunity really into Dr Business from the network. >> Everybody wants the code >> had they dio and some >> people >> are scared. Actually, some people are very scared. >> You mean intimidated, >> intimidated, intimidated. Yes. So there's the set of people who've come in early, right? And they're the ones who you've seen in the definite Zone. But everybody, of course, they start out scared. But then right after they get over that fear, they realize this really is a new future. And so then they start jumping in, and so it's both beer and then opportunity. >> Then they're on strike. That's what it's all about, Yang. And absolutely, I could do this for my business and >> absolutely, I would love to know the end that near future, how many different products and services and Maybe even companies have been created from the definite community for springing all these different Pittsburgh folks together. Imagine the impact >> it is. I mean, like, one really small things. You've been with us at our little definite create conference is we have something there that's called Camp Create, which is where they spend a week hacking, right? So and this It's kind of sometimes our most serious attendees because they're choosing Teo Code for the weak is what you know as well as to attend way. Didn't really add it all up yet. But what we found is there's about 25 to 30 people who attend. Met a bunch of them got promoted in that year. Wow. So in different ways, you know, not in ways that are necessarily connected but in their own ways, like in their company. This person got promoted to this to this one area. This other person, one person was a contractor. They got converted to a, you know, full time employee. So you know, we have to go and do the math on it. But what's amazing is that you know it just you know that bring that fills our hearts. >> It's organic too. Well, Susie, we Thank you so much for joining David. Me on the clean. You're going back with me tomorrow. And some guests. I'm looking forward to that. Excellent. Yes, Absolutely. More, More great stars. >> Your duel Co hosting a >> way. I didn't know that. No way. But I'll turn. I'll be the host is Well, I try something new. Way we're >> gonna have fun. I am looking forward to it. Thank you >> so much. And thank you for being with us in our whole vision of definite from the beginning. So thank you. >> It's been awesome. All right. We want to thank you for watching the Cube for David. Dante. I'm Lisa Martin. We will catch you right back with our last guest from Cisco Live in San Diego.

>> Live from Barcelona, Spain. It's the queue covering Sisqo, Live Europe. Brought to you by Cisco and its ecosystem partners. >> Welcome back, Everyone Live here in Barcelona, Spain's two Cubes Coverage of Sisqo Live Europe. Twenty nineteen. I'm John Foreal echoes David Lock. Our next guest is Liz Santoni, senior vice president general manager of the Eye Okay Group at Cisco, formerly is part of the engineering team Cube Alumni. Great to see you again. Thanks for coming >> on. Great to be here, >> so you're >> just good to see you guys. >> You're in the centre. A lot of news. I ot of the network redefining networking on stage. We heard that talk about your role in the organization of Sisko and the product that you now have and what's going on here. >> So run R I O T business group similar to what we do with the end data center off that it has the engineering team product management team. We build products solutions that includes hardware, software, silicon. Take him out to market. Really an eye. OT It's about, you know, the technology conversation comes second. It's like, What can you deliver in terms of use, case and business outcomes that comes first, and it's more about what technology can enable that. So the conversations we have with customers are around. How can he really solve my kind of real problems? Everything from one a girl, my top line? I want to get closer to my customers because the closer I get to my customers, I know them better. So obviously can turn around and grow my top line. And I want to optimize everything from internal process to external process because just improves my bottom line at the end >> of the day. So you a lot of news happening here around your team. But first talk about redefining networking in context to your part, because edge of the network has always been what is, you know the edge of the network. Now it's extending further. I. O. T. Is one of those things that people are looking at a digit digitization standpoint, turning on Mohr intelligence with the factory floor or other areas. How how are how is I ot changing and what is it today? >> So you gave an example of, you know, digitizing something like a factory floor, right? So let's talk about that. So what customers in the factory floor want to do. They've already automated a number of this factory floors, but what they want to do is get more efficient. They want better eo. They want better quality. They want to bring security all the way down to the plant floor because the more and more you connect things, the more you just expanded your threat surface out pretty significantly so they want to bring security down to the plant floor. Because the's are environments that are not brand new, they have brown feel equipment there, green field equipment. They want to be able to have control of where what device gets in the network. With things like device profiling, they want to be able to do things like create zones so that they could do that with things like network segmentation. So when and if an attack does happen, they can contain the attack as much as possible. All right now what you need in terms ofthe a factory floor, automation, security, to be able to scale tohave that flexibility That's no different than what you have in the Enterprise already. I mean, we've been working with our idea and enterprise customers for years, and, you know, they it's about automation and security. It's about simplicity. Why not extend that out? The talent that it has, the capability that has it really is a connective tissue, that you're extending your network from that carpeted space, or you're clean space into outside of the office or into the non carpeted space. So it's perfect in terms of saying it's about extending the network into the nontraditional space that probably it doesn't go into today. >> Well, right. And it's a new constituency, right? So how are you sort of forging new relationships, new partnerships? What is described, what that's like with operations technology? >> I mean, that Cisco. We have great partnerships with the Tea organisation. I mean, we've got more than eight hundred forty thousand customers and our sales teams are product. Teams do a good job in terms of listening to customers. We're talking more and more to the line of business. We're talking more and more to the operational teams >> because of the end of >> the day. I want to be candid. You know, going to a manufacturing floor. I've never run a plan. Floor right? There are not very many people in the team who conceived in a plant manager before they know they're processes. They're concerned about twenty four seven operation. Hey, I want to be in compliance with the fire marshal, physical safety of my workers. We come in with that. I p knowledge that security knowledge that they need it's a partnership. I mean, people talk about, you know, t convergence. Usually convergence means that somebody's going to lose their job. This is Maura Night, an OT partnership, and most of these digitization efforts usually come in for the CEO level. Laura Chief Digitization Officer. We've got good relationships there already. Second part is Sister has been in this. We're quite some time. Our team's already have relationships at the plant level at the grid level operator level. You know, in the in the oil and gas area what we need to build more and more of that because building more and more that is really understanding. What business problems are they looking to solve? Then we can bring the technology to it. >> Liz, what's that in the Enable Menu? Mission Partnership? That's a good point. People, you know, someone wins, someone loses. The partnership is you're enabling your bringing new capability into the physical world, from wind wind farms to whatever What is the enablement look like? What are some of the things that happen when you guys come into these environments that are being redefined and reimagined? Or for the first time, >> Yeah, I would say, you know, I use what our customers said this morning and what he said was, it has the skills that I >> need, all right. >> They have the eyepiece skills. They have a security seals. These are all the things that I need. I want my guys to focus on kind of business processes around things that they know best. And so we're working with a CZ part of what we're putting this extended enterprise extending in ten based networking to the i o T edge means ight. Hee already knows our tools are capabilities. We're now saying we can extend that Let's go out, figure out what those use cases are together. This is why we're working with the not just the working with our channel partners as well. Who can enable these implementations on i o t implementations work? Well, >> part of >> this is also a constant, you know learning from each other. We learned from the operational teams is that hey, you can start a proof of concept really well, but he can really take it to deployment unless you address things around the complexity, the scale and the security. That's where we can come in and help. >> And you can't just throw your switches and routers over the fence. And so okay, here you go. You have to develop specific solutions for this world, right? And when you talk about that a little bit, absolutely. So >> if you look at the networking industrial networking portfolio that we have, it's built on the same catalysts, itis our wireless, a peace, our firewall. But they're more customized for this non carpeted space, right? You've got to take into consideration that these air not sitting in a controlled environment, so we test them for temperature, for shock, for vibration. But it's also built on the same software. So we're talking about the same software platform. You get the same automation features you get, the same analytics features. It's managed by DNA center. So even though we're customizing the hardware for this environment, the software platform that you get is pretty much the same, so it can come in and manage both those environments. But it also needs an understanding of what, What's the operational team looking to solve for? >> Because I want to ask you about the psychology of the buyer in this market because OT there run stuff that's just turn it on. But in the light ball, make it work. Well, I got to deploy something, so they're kind of expectations might be different. Can you share what the expectations are for the kind of experience that they wanna have with Tech? >> I used a utility is a great example and our customer from energy. I think, explain this really well, this is thing that we learned from our customers, right? I haven't been in a substation. I've been in a data center multiple times, but I haven't been in a substation. So when they're talking about automating substation, we work with customers. We've been doing this over the last ten years. We've been working with that energy team for the last two years. They taught us, really, how they secure and managing these environments. You're not going to find a CC in this environment, So when you want to send somebody out to like sixty thousand substations and you want to check on Hey, do do I still have VPN connectivity? They're not going to be able to troubleshoot it. What we did is based on the customer's ask, put a green light on there and led that shines green. All the technician does is look at it and says it's okay. If not, they called back in terms of trouble shooting it. It was just a simple example of where it's. It's different in terms of how they secure and manage on the talent that they have is different than what's in the space. So you've got to make sure that your products also cover what the operational teams need because you're not dealing with the C. C A. Or the I P experts, >> a classic market fit product market fit for what they're expecting correct led to kick around with green light. I mean, >> you know, everybody goes that such an easy thing inside was >> not that perceptive to us. >> What's the biggest thing you've learned as you move from Cisco Engineering out to the new frontier on the edge here? What? What are the learnings that you've seen actually growing mark early. It's only going to get larger, more complicated, more automation. Morey, I'm or things. What's your learning? What have you seen so far? That's the takeaway. >> So I'll see, you know, be I'm still an Cisco Engineering. The reason we're in Coyote is that a secure and reliable network that it's the foundation of any eye. Ot deployment, right? You can go out and best buy the best sensor by the best application by the best middle where. But if you don't have that foundation that's secure and reliable, those, Iet projects are not going to take off. So it's pretty simple. Everyone's network is thie enabler of their business outcome, and that's why we're in it. So this is really about extending that network out, but at the same time, understanding. What are we looking to solve for, right? So in many cases we worked with third party party hers because some of them know these domains much better than we do. But we know the AIP wear the eye patch and the security experts, and we bring that to the table better than anybody else. >> And over the top, definite showing here for the second year that we've covered it here in definite zone, that when you have that secure network that's programmable really cool things and develop on top of it. That's what great opportunity >> this is. I'm super excited that we now have an i o. T. Definite in. You know, it's part of our entire Cisco. Definite half a million developers. You know, Suzy, we and team done a fabulous job. There's more and more developers going to be starting to develop at the I o. T edge at the edge of the network. Right. So when you look at that is our platforms today with dioxin saw on top of it. Make this a software platform that developers Khun can actually build applications to. It's really about, you know, that we're ready. Highest fees and developers unleashing those applications at the i o. T edge. And with Susie making that, you know, available in terms of the tools, the resource is the sand box that you can get. It's like we expect to see more and more developers building those applications at the >> edge. We gotta talk about your announcements, right? Oh, >> yeah. Exciting set >> of hard news. >> So we launch for things today as part of Extending Ibn or in ten based networking to the I. O. T. S. The first one is we've got three new Cisco validated design. So think of a validated design as enabling our customers to actually accelerate their deployments. So our engineering teams try to mimic a CZ muchas possible a customer's environment. And they do this pre integration, pre testing of our products, third party products and we actually put him out by industry. So we have three new ones out there for manufacturing, for utilities and for mode and mobile assets. That's one. The second one is we're launching two new hardware platforms on next generation catalysts Industrial Ethernet switch. It's got modularity of interfaces, and it's got nine expansion packs. The idea is making as flexible as possible for a customer's deployment, because these boxes might sit in an environment not just for three years, like in a campus, they could sit there for five for seven for ten years. So, as you know, they are adding on giving them that flexibility that concave a bit based system and just change the expansion modules. We also launch on next generation industrial router. Actually, is the industries probably first and only full six capable industrial router, and it's got again flexibility of interfaces. We have lt. We have fiber. We have copper. You want deal? Lt. You can actually slap an expansion pack right on top of it. When five G comes in, you just take the Lt Munch a lot. You put five G, so it's five G ready >> engines on there >> and it's based on Io Exit us sexy. It's managed by DNA center and its edge enabled. So they run dialects. You, Khun, build your applications and load him on so >> you can >> build them. Third >> parties have peace here. >> The definite pieces. That third one is where we now have, you know, and I OT developer center in the definite zone. So with all the tools that are available, it enables developers and IAS peas, too. Actually, we build on top of Io Axe today. In fact, we actually have more than a couple of three examples that are already doing that. And the fourth thing is we depend on a large ecosystem of channel partners, So we've launched an Io ti specialization training program to enable them to actually help our customers implementation go faster. So those are the four things that we brought together. The key thing for us was designing these for scale flexibility and security >> capabilities available today. Is that right? >> Absolutely. In fact, if you go in worshipping in two weeks and you can see them at the innovation showcase, it's actually very cool. >> I was going to mention you brought ecosystem. Glad you brought that. I was gonna ask about how that's developing. I could only imagine new sets of names coming out of the industry in terms of building on these coyotes since his demand for Io ti. It's an emerging market in terms of newness, with a lot of head room. So what's ecosystem look like? Missouri patterns and Aya's vsv ours as they take the shape of the classic ecosystem? Or is it a new set of characters? Or what's the makeup of the >> island's ecosystem, >> I would say is in many ways, if you've been in the eye ot world for sometime, you'll say, You know, it's not like there's a whole new set of characters. Yes, you have more cloud players in there, you You probably have more s eyes in there. But it's been like the distributor's Arvin there. The machine builders thie ot platforms. These folks have been doing this for a long time. It's more around. How do you partner and where do you monetize? We know where you know the value we bring in we rely on. We work very closely with this OT partners machine builders s eyes the cloud partners to go to market and deliver this. You're right. The market's going to evolve because the whole new conversation is around. Data. What do I collect? What do I computer the edge? Where do I go around it to? Should I take it to my own premises? Data centers. Should I take it to the cloud who gets control over the data? How do I make sure that I have control over the data as a customer and I have control over who gets to see it? So I think this will be a revolving conversation. This is something we're enabling with one of our Connecticut platforms, which are not launch. It's already launched in terms of enabling customers to have control over the data and managed to bring >> all the portfolio of Cisco Security Analytics management to the table that puts anything in the world that has power and connectivity to be a device to connect into its system. This is the way it's just I mean, how obvious going Beat commits a huge >> I'm grateful that it's great that you think it's obvious. That's exactly what we're trying to tell our customers. >> How to do is >> about extending >> the way >> we do. It's the playbook, right? Each business has its own unique. There's no general purpose. Coyote is their correct pretty much custom because, um, well, thanks for coming on this. Appreciate it when I ask you one final question. You know, I was really impressed with Karen. Had a great session on wall kind of session yesterday. Impact with women. We interviewed you a Grace offered twenty fifteen. Cisco's doing amazing work. You take a minute to talk about some of the things that Cisco's doing around women in computing. Women in stem. Just great momentum, great success story, great leadership. >> I would say Look at her leadership at Chuck's level, and I think that's a great example in terms of He brings people on, depending on what they can, what they bring to the table, right? They just happened to be a lot of women out there. And the reality is I work for a company that believes in inclusion, whether it's gender race, different experiences, different a different thoughts, different perspective because that's what truly in terms of you can bring in the culture that drives that innovation. I've been sponsoring our women in science and engineering, for I can't remember the last for five years. It's a community that continues to grow, and and the reality is we don't sit in there and talk about, you know, what was me and all the things they're happening. What we talk about is, What are the cool new technologies that are out there? How do I get my hands on him? And yeah, there we talk about some things where women are little reticent and shy to do so. What we learn from other people's experiences, many time the guy's air very interested. So what? You sit them there and talking to said, Trust me, it's not like a whining and moaning section. It's more in terms of where we learned from each other >> years talking and sharing ideas, >> absolute >> innovation and building things. >> And we've got, you know, you look we look around that's a great set of women leaders throughout the company. At every single level at every function. It's ah, it's It's great to be there. We continue to sponsor Grace offer. We have some of the biggest presence at Grace Offer. We do so many other things like connected women within the company. It's just a I would say fabulous place to be. >> You guys do a lot of great things for society. Great company, great leadership. Thank you for doing all that's phenomenal. We love covering it, too. So we'll be affect cloud now today in Silicon Valley. Women in data science at Stanford and among them the >> greatest passion of our things. Straight here. >> Thanks for coming on this. The Cube live coverage here in Barcelona. Francisco Live twenty eighteen back with more. After the short break, I'm jump area with evil Aunt. Be right back