>> Host: Live from San Diego, California, it's the CUBE, covering Cisco Live US 2019. Brought to you by Cisco and its ecosystem partners. >> Hi, welcome back to the CUBE, Lisa Martin with Stu Miniman, covering day one of Cisco Live from sunny San Diego. We're pleased to welcome back a couple of our alumni. To my right Eric Herzog, CMO of IBM Storage. Eric it's always great to have you. >> Great. >> And you fashion choices on the CUBE. >> Always wear a Hawaiian shirt for the CUBE. >> I know, it's a thing. And we've also got Evaristus Mainsah, General Manager of IBM Cloud Private Ecosystem. Evaristus it's great to have you back on the program. >> Thank you very much, delighted to be here. >> So guys here we are, we're in the dove nut zone. Lots of collaboration, lots of conversations day one of Cisco Live. But this events been around for 30 years. Long time, I think Chuck Robins said this morning what also turned 30 this year is Tetris. Anybody a big fan of Tetris? So, so much progress, so much change. I know you've seen a lot of it. Eric lets start with you. The global economy, what are the impacts it's having on IT? >> Well I'd say the number one thing is everyone is recognized the most valuable asset is data. It's not gold, it's not silver, it's not plutonium and it definitely isn't oil, it's all about data. And whether it be a global Fortune 500, a midsize company or Herzogs Bar & Grill, data is your most valuable asset. So at IBM Storage, what we've done is making sure that our focus is on being data-driven. It's all about solutions, it's not about speeds and feeds. Of course, having done this for 35 years I could have whacked poetically on speeds and feeds. And even if you have some speeds and feeds that Stu may not even remember anymore. That said, it's really about data, it's not about storage speeds and feeds. How really storage is that critical foundation for applications, workloads and use cases. And that's what's most important. >> Yeah, so Eric, when they rolled out on stage this morning that 30 year old box with ribbon cable, yeah, that predated a little bit when I was looking at IT. But, I remember when I started in IT, when we talked about security, the main thing was lock the door of the cabinet that everything was in there, because it was kind of self-contained. Security's gone through a few changes in the last you know 20 25 years though. Maybe you could talk a little bit about that kind of security resiliency. Obviously, something that's impacted the network for a long time, something that IBM sees front and center. >> What I think the big deal is what most people think when they think of security, is I got to buy security software. So I got to call up IBM Security or RSA or the Intel Security Division and buy some security software. And while that's great the reality is as many people have written about, in fact Wikibon SiliconANGLE's written about it. Close to 98% of all enterprises, and I mean big enterprises now are going to get to be broken into. And you've seen this all over the news. So the key thing is once they're inside, storage can help you with a cyber resiliency play. And at IBM Storage whether that be data at rest encryption. Whether that be malware or ransomware protection. We put together a whole set of technology that when the bad guys in the house they can't steal the TV. Because we've locked it down. It's almost as if it was in a safe. Maybe it's almost like the cloak in science fiction where you can't even see the Romulan ship, because it's cloaked. Well guess what, that's what IBM storage can do for your data and it is your most valuable asset. So critical to cyber resiliency. >> So helping customers go from reactive to this expectation breach has happened very very frequently every few seconds to being proactive? >> Yeah, I mean. >> Eventually predictive? >> Well what we do is for example with our Spectrum Protect software. When there's a malware or ransomware attack, what happens is they always go after you're secondary data sets first. I know that sounds weird but they go after your backups, your snapshots and your replicas. 'Cause when they attack your primary data, if they've you can just recover from a backup they can't hold you for $10 million of ransom. So our Spectrum Protect software for example, when it sees anomalous activity in backup data sets, sends an email on a warning out to all the admins and says you have weird activity going on, you might want to check it out and that way you would know. Because secondarity is attacked first in a cyber resiliency strategy. >> You know, the other thing we're seeing a lot is just the scope of what's happening in IT. When you talk about things like scale and you talk about you know edge computing and so much change going on. There's got to be AI in there or machine learning to help us because humans alone can't keep up with what's going on here. Tell us a little bit about that Eric. >> So Big data and AI is like the hot topic right now. Cyber resiliency is important 'cause people obviously have been buying security software for a while. So it's more what we do is really an adjunct to that. In the case of Big data and AI, it's a brand new open field. Everyone is looking for solutions in both of those spaces. We have created a complete set of data infrastructure we've called the AI pipeline. It involves not only physical storage arrays but a whole bunch of software. In fact our Spectrum Discover software which allows you to create metadata catalogs about file and object data is being expanded. And we already publicly said this in the second half To include EMC and Netapp and AWS, not just IBM Storage. So it's a critical thing, you've got to make sure the other thing is when you're using AI. Let's say you're going to use AI to run a factory. If the storage goes down, those robots aren't working. So storage is that critical underlying foundation. A in a Big data network load to be able to have this pipeline to get the data. But if you don't have the resiliency, the performance and the availability of the underlying storage everything shuts down if the storage fails. 'Cause the AI software won't run. So that's how we see fitting in to their both the critical foundation also this AI data pipeline with all of our software. >> So before we get in to this Cisco partnership with Evaristus, it's one more question Eric for you. As Chief Marketing Officer, you talk about the customers all of the time. In that example that you just gave about the criticality of storage for AI where are you having conversations within customer organizations. Is it at the level of the storage girls and guys or has it gone up to lines of business to executives. >> Yeah so, from an AI perspective it runs a gamut. It could be sometimes the storage people. Sometimes the infrastructure people. A lot of times it's actually in the line of business or at the data scientist level. On the Big data side it's a little bit more mature so people know they need to do analytics versus AI. And so when you look at it from that perspective on that side it's often the storage guy but it's also the data scientist as well. So that's who we talk to to get things rolling. And it's not, we don't just talk to the storage admin for either of them, because they're both so new and they have such a big impact on the data scientists and the analytic engine committees inside of those giant enterprises. >> I can imagine eventually maybe question for you. Of that conversation elevating it up to the sweet sweet. Because if you can't access the data, if it can't be protected, what good is it? Right, it's really, to say it's the lifeblood is a silly thing, but we say it all the time. But it's critical, it's table stakes. >> Well one of the things that's interesting is I just got my Fortune 500 magazine at home, that had the Fortune 500 list in it. And there was an interesting article on AI and the enterprise. And they did a survey according to Fortune magazine, 50% of the CIO's that are in the Fortune 500 said they're using AI and Big data of some type. So it's sweeping the world. And it started of course in HPC in the academics. But now it's going into all enterprises of all types. >> Alright so we've talked a few years about the Versastack Partnership. But the last year or so we've really been talking about where Hybrid cloud and multi-cloud fit in to this. We talked a little bit at IBM Think. Evaristus we talked at another show about some of the IBM Cloud Private. Give us the update where we are with customers and how that fits, Eric lets start with you and Evaristus just go into the partnership. >> Sure from a storage version perspective, we've been talking about a Hybrid multi-cloud now for several years. And in fact I did a presentation two years ago at Cisco Live on Hybrid cloud using Versastack. Today I gave one on the data driven enterprise and why hybrid multi-cloud is important to use. So that was the 30 minutes presentation I did today. So I think the key thing is we make sure that we A our Hybrid it's not going to all public or all private. And we can move data seamlessly back and forth. And then also multi-cloud. When you look at enterprise shops, they're not just going to use IBM Cloud. I wish they would I'm an IBM shareholder but they're not. They use IBM, they're going to use ABS, they're going to use Amazon and in many cases they're going to use some smaller cloud provider. So we make sure that we can move data around across any multi-cloud of various different providers to accompany. But also Hybrid cloud as well. >> So the status talk to use about you know from a partnership Cisco IBM Cloud Private perspective, what's going on there Evaristus? >> Well Thank you very much. Well IBM and Cisco have been partners for a long long time. And what we are doing now is given the realities, the fact that those clients have found themselves in a multi-cloud environment, >> Hybrid multi-cloud environment. What we can do to help clients so they can develop they can test, they can manage the applications in a consistent manner, whether they are on prime or in the cloud. And there are a couple of initiatives that we are announcing. One of them is that IBM Cloud Private is going to run on Hyperflex, so Cisco's Hyperflex. As well as hyperflex, hyper-conversed infrastructure. What it means is a client who currently has hyperflex can have IBM Cloud Private on it. Which effectively means they have themselves a Private Cloud environment that also connects to other public cloud environments and allows you to really begin to work within a Hybrid cloud environment the way that most clients need to. The second initiative is that we will have ACI pods or V pods, virtual ACI, running in the IBM public cloud. Which basically means that again, Cisco customers, ACI Network customers who currently use the produce on Prime will be able to use exactly you know the same control pane to manage their deployments and to manage their security preferences on Prime as they do in the cloud. And this again surrounding the Public Cloud is running on bare metal on the IBM Cloud. >> Alright, Evaristus can you bring us inside a little bit the applications you know. Eric talked about you know data we know is so important. Really it's the applications that are driving that. It's where we're seeing the most change in customers, as to how they're moving or building new applications. And in Hyber cloud it's one of the biggest questions for customers is what do they do with that application portfolio? >> Yes so what we're seeing is clearly because you know. Clients have now lots of different Public clouds. They also have Private clouds to deal with them. They have lots of applications that are currently that need to move right. We believe 20% of those applications have moved, the remaining 80% are still on Prime. And so the trend that we are really seeing is applications moving to the cloud. And the two ways of doing it you could do this by simply lifting and shifting on VM, you get the contraction benefit of your stack right. So you can some cost impacts. But the really interesting way that you see lots of clients moving is modernizing the applications. Because the real valued driver with infinite cloud is not so much cost as innovation. And when you convert those applications into Microsoft this is the right and let me run them in containers it gives them plenty of flexibility. And wasting lots of clients that want to use IBM Cloud Private as a platform to enable that modernization journey. >> So as every industry is living in this Hybrid multi-cloud world for many reasons. But it sounds like to me is that the IBM Cisco relationship is deepening as a result to enable these organizations that are in these very amorphous environments. You know as we see the explosion of Edge and Mobile, that's what it sounds like to me. Is that this long standing partnership is getting deeper and maybe a stronger foundation. To help customers not just live in this Hybrid multi-cloud world but be successful so that their businesses gain competitive advantage. They can identify new products and services and revenue streams. >> Yeah, I think multi-cloud and Hybrid cloud actually requires partnerships. Because as Eric said later on of course you like everybody to be on the IBM Cloud and it's a great cloud. But we recognize that many clients who have a variety of different plights to deal with. They have a variety of different infrastructures. And that's why when you look at IBM Cloud Private which is you know our offering that really enables that Hybrid cloud. It is designed to managed that. So It is multi-model, so if you want to run it as a VM you can, you want to run your containers, you can run serverless, you can run them bare metal. But also, it supports a range of different infrastructure. So not only does it run on Z, it runs on power, it runs on Spectrum Storage. We announce running now on Hyperflex. It also runs on other peoples Public clouds. It runs on Azure, it runs on Amazon web services, it runs on Google Cloud platform, it runs on the IBM Cloud. And the intent here is to enable clients to basically manage and work with that infrastructure as if it was one. The way that Stu said in the data center where you locked everything up. Well it's not like that anymore. But the most that we can do is to enable clients to treat all of that infrastructure as one. And that's what sort of aim to do with our platforms. >> Alright, I guess last question I'd like to get both of your comments on. Is your advice for customers, you know, customers have that they have a lot of you know existing things that they have to deal with, that they're looking to modernize. What advice do you give them? Where do you start them you know I guess you know one of the things you're starting where they are. But you know what are some of the first steps and recommendations that you have for customers today? >> We have a process that works really well, which is called the IBM Garage. Which is effectively a way that we used to co-create with our clients to solve the immediate problems. So a client for example, who is looking at app modernization but isn't sure where to start, which app. What we do is we get their teams together with our teams line of business together with IT and our teams and we spend a couple of days in a design thinking workshop to identify a minimum viable product. Which is something that solves a problem not big enough that it will take forever, but big enough to matter. Then we get our teams to work side-by-side, we code it, we test it, we deploy it, we'll run it in the IBM Cloud. We manage it, at like in one week sprints. And then you spend another few days at the end of week four or five to do a see retrospective to see whether it solved the problem as you expected. And if it did, you pick the next piece of work to continue your journey. So before you know, five weeks in, you have your first application modernized. Or you have your first cloud negative ready. >> Now from a storage perspective it's a little bit easier. We supported storage on bare metal. We supported storage in all the virtual environments. KVM, OVM, obviously VM we're in Hyper V. And now, we've been supporting containers for over two years. So we say is leave no data behind. If certain data needs to stay on bare metal, that's fine we can support that. But we can also transparently migrate data back and forth between the various tiers of container-based virtualization-based or the old style bare metal. So from our perspective, we help them move data around where they need it. And if they're still running in a hybridized world in this case, containers, virtual and bare metal that's fine. If they just go containers that's fine. If they just go virtual it's fine. So for us, because of what we've been supporting now for several years, we can help them on that journey. And traverse from any one of those three layers, which is where data sits in today's data centers and cloud environments. >> So overall a lot of collaboration, a lot of customer choice. Gentlemen, Thank you for joining Stu and me the program this afternoon, great to have you back. >> Thank you >> Great, Thank you. Glad to be on the CUBE. >> Oooh our pleasure. For Stu Miniman, I am Lisa Martin. You're watching the CUBE, live from day one of our coverage on Cisco Live. Thanks for watching. (energetic music)

>> Live, from San Francisco, it's theCUBE covering IBM Think 2019. Brought to you by IBM. >> Hello everyone, welcome back to theCUBE's live coverage here in San Francisco for IBM Think 2019. I'm John Furrier, Stu Miniman with theCUBE. Stu, it's been a great day. We're on our fourth day of four days of wall to wall coverage. A theme of AI, large scale compute with Cloud and data that's great. Great topics. Got two great guests here. Rohit Badlaney, who's the director of IBM Z As a Service, IBM Systems. Real great to see you. And Nataraj Nagaratnam, Distinguished Engineer and CTO and Director of Cloud Security at IBM and Hybrid Cloud, thanks for joining us. >> Glad to be here. >> So, the subtext to all the big messaging around AI and multi-cloud is that you need power to run this. Horsepower, you need big iron, you need the servers, you need the storage, but software is in the heart of all this. So you guys had some big announcements around capabilities. The Hyper Protect was a big one on the securities side but now you've got Z As a Service. We've seen Linux come on Z. So it's just another network now. It's just network computing is now tied in with cloud. Explain the offering. What's the big news? >> Sure, so two major announcements for us this week. One's around our private cloud capabilities on the platform. So we announced our IBM Cloud Private set of products fully supported on our LinuxOne systems, and what we've also announced is the extensions of those around hyper-secure workloads through a capability called the Secure Services Container, as well as giving our traditional z/OS clients cloud consumption through a capability called the z/OS Cloud Broker. So it's really looking at how do we cloudify the platform for our existing base, as well as clients looking to do digital transformation projects on-premise. How do we help them? >> This has been a key part of this. I want to just drill down this cloudification because we've been talking about how you guys are positioned for growth. All the REORG's are done. >> Sure, yeah >> The table's all set. Products have been modernized, upgraded. Now the path is pretty clear. Kind of like what Microsoft's playbook was. Build the core cloudification. Get your core set of products cloudified. Target your base of customers. Grow that and expand into the modern era. This is a key part of the strategy, right? >> Absolutely right. A key part of our private cloud strategy is targeted to our existing base and moving them forward on their cloud journey, whether they're looking to modernize parts of their application. Can we start first with where they are on-premise is really what we're after. >> Alright, also you have the Hyper Protect. >> Correct. >> What is that announcement? Can you explain Hyper Protect? >> Absolutely. Like Rohit talked about, taking our LinuxOne capabilities, now that enterprise trusts the level of assurance, the level of security that they're dependent on, on-premise and now in private cloud. We are taking that further into the public cloud offering as Hyper Protect services. So these are set of services that leverage the underlyings of security hardening that nobody else has the level of control that you can get and offering that as a service so you don't need to know Z or LinuxOne from a consumption perspective. So I'll take two examples. Hyper Protect Crypto Service is about exposing the level of control. That you can manage they keys. What we call "keep your own keys" because encryption is out there but it's all about key management so we provide that with the highest level of security that LinuxOne servers from us offer. Another example is database as a service, which runs in this Hyper Secure environment. Not only encryption and keys, but leveraging down the line pervasive encryption capabilities so nobody can even get into the box, so to say. >> Okay, so I get the encryption piece. That's solid, great. Internet encryption is always good. Containers, there's been discussions at the CNCF about containers not being part of the security boundaries and putting a VMware around it. Different schools of thought there. How do you guys look at the containerization? Does that fit into Secure Protect? Talk about that dynamic because encryption I get, but are you getting containers? >> Great question because it's about the workload, right? When people are modernizing their apps or building cloud-native apps, it's built on Kubernetes and containers. What we have done, the fantastic work across both the IBM Cloud Private on Z, as well as Hyper Protect, underlying it's all about containers, right? So as we deliver these services and for customers also to build data services as containers or VM's, they can deploy on this environment or consume these as a compute. So fundamentally it's kubernetes everywhere. That's a foundational focus for us. When it can go public, private and multicloud, and we are taking that journey into the most austere environment with a performance and scale of Z and LinuxONE. >> Alright, so Rohit, help bring us up to date. We've been talking about this hybrid and multi-cloud stuff for a number of years, and the idea we've heard for many years is, "I want to have the same stack on both ends. I want encryption all the way down to the chip set." I've heard of companies like Oracle, like IBM say, "We have resources in both. We want to do this." We understand kubernetes is not a magic layer, it takes care of a certain piece you know and we've been digging in that quite a bit. Super important, but there's more than that and there still are differences between what I'm doing in the private cloud and public cloud just naturally. Public cloud, I'm really limited to how many data centers, private cloud, everything's different. Help us understand what's the same, what's different. How do we sort that out in 2019? >> Sure, from a brand perspective we're looking at private cloud in our IBM Cloud Private set of products and standardizing on that from a kubernetes perspective, but also in a public cloud, we're standardizing on kubernetes. The key secret source is our Secure Services Container under there. It's the same technology that we use under our Blockchain Platform. Right, it brings the Z differentiation for hyper-security, lockdown, where you can run the most secure workloads, and we're standardizing that on both public and private cloud. Now, of course, there are key differences, right? We're standardizing on a different set of workloads on-premise. We're focusing on containerizing on-premise. That journey to move for the public cloud, we still need to get there. >> And the container piece is super important. Can you explain the piece around, if I've got multi-cloud going on, Z becomes a critical node on the network because if you have an on-premise base, Z's been very popular, LinuxONE has been really popular, but it's been for the big banks, and it seems like the big, you know, it's big ire, it's IBM, right? But it's not just the mainframe. It's not proprietary software anymore, it's essentially large-scale capability. >> Right. >> So now, when that gets factored into the pool of resources and cloud, how should customers look at Z? How should they look at the equation? Because this seems to me like an interesting vector into adding more head room for you guys, at least on the product side, but for a customer, it's not just a use case for the big banks, or doing big backups, it seems to have more legs now. Can you explain where this fits into the big picture? Because why wouldn't someone want to have a high performant? >> Why don't I use a customer example? I had a great session this morning with Brad Chun from Shuttle Fund, who joined us on stage. They know financial industry. They are building a Fintech capability called Digital Asset Custody Services. It's about how you digitize your asset, how do you tokenize them, how you secure it. So when they look at it from that perspective, they've been partnering with us, it's a classic hybrid workload where they've deployed some of the apps on the private cloud and on-premise with Z/LinuxONE and reaching out to the cloud using the Hyper Protect services. So when they bring this together, built on Blockchain under the covers, they're bringing the capability being agile to the market, the ability for them to innovate and deliver with speed, but with the level of capability. So from that perspective, it's a Fintech, but they are not the largest banks that you may know of, but that's the kind of innovation it enables, even if you don't have quote, unquote a mainframe or a Z. >> This gives you guys more power, and literally, sense of pretty more reach in the market because what containers and now these kubernetes, for example, Ginni Rometty said "kubernetes" twice in her keynote. I'm like, "Oh my God. The CEO of IBM said 'kubernetes' twice." We used to joke about it. Only geeks know about kubernetes. Here she is talking about kubernetes. Containers, kubernetes, and now service missions around the corner give you guys reach into the public cloud to extend the Z capability without foreclosing the benefits of Z. So that seems to be a trend. Who's the target for that? Give me an example of who's the customer or use case? What's the situation that would allow me to take advantage of cloud and extend the capability to Z? >> If you just step back, what we're really trying to do is create a higher shorten zone in our cloud called Hyper Protect. It's targeted to our existing Z base, who want to move on this enterprise out journey, but it's also targeted to clients like Shuttle Fund and DAX that Raj talked about that are building these hyper secure apps in the cloud and want the capabilities of the platform, but wanted more cloud-native style. It's the breadth of moving our existing base to the cloud, but also these new security developers who want to do enterprise development in the cloud. >> Security is key. That's the big drive. >> And that's the beauty of Z. That's what it brings to the table. And to a cloud is the hyper lockdown, the scale, the performance, all those characteristics. >> We know that security is always an on-going journey, but one of the ones that has a lot of people concerned is when we start adding IoT into the mix. It increased the surface area by orders of magnitude. How do those type of applications fit into these offerings? >> Great question. As a matter of fact, I didn't give you the question by the way, but this morning, KONE joined me on stage. >> We actually talked about it on Twitter. (laughs) >> KONE joined us on stage. It's about in the residential workflow, how they're enabling here their integration, access, and identity into that. As an example, they're building on our IoT platform and then they integrate with security services. That's the beauty of this. Rohit talked about developers, right? So when developers build it, our mission is to make it simple for a developer to build secure applications. With security skill shortage, you can't expect every developer to be a security geek, right? So we're making it simple, so that you can kind of connect your IoT to your business process and your back-end application seamlessly in a multi-cloud and hybrid-cloud fashion. That's where both from a cloud native perspective comes in, and building some of these sensitive applications on Hyper Protect or Z/LinuxONE and private cloud enables that end to end. >> I want to get you guys take while you're here because one of the things I've observed here at Think, which is clearly the theme is Cloud AI and developers all kind of coming together. I mean, AI, Amazon's event, AI, AI, AI, in cloud scale, you guys don't have that. But developer angle is really interesting. And you guys have a product called IBM Cloud Private, which seems to be a very big centerpiece of the strategy. What is this product? Why is it important? It seems to be part of all the key innovative parts that we see evolving out of the thing. Can you explain what is the IBM Cloud Private and how does it fit into the puzzle? >> Let me take a pass at it Raj. In a way it is, well, we really see IBM Cloud Private as that key linchpin on-premise. It's a Platform as a Service product on-premise, it's built on kubernetes and darker containers, but what it really brings is that standardized cloud consumption for containerized apps on-premise. We've expanded that, of course, to our Z footprint, and let me give you a use case of clients and how they use it. We're working with a very big, regulated bank that's looking to modernize a massive monolithic piece of WebSphere application server on-premise and break it down into micro-services. They're doing that on IBM Cloud Private. They've containerized big parts of the application on WebSphere on-premise. Now they've not made that journey to the cloud, to the public cloud, but they are using... How do you modernize your existing footprint into a more containerized micro-services one? >> So this is the trend we're seeing, the decomposition of monolithic apps on-premise is step one. Let's get that down, get the culture, and attract the new, younger people who come in, not the older guys like me, mini-computer days. Really make it ready, composable, then they're ready to go to the cloud. This seems to be the steps. Talk about that dynamic, Raj, from a technical perspective. How hard is it to do that? Is it a heavy lift? Is it pretty straight-forward? >> Great question. IBM, we're all about open, right? So when it comes to our cloud strategy open is the centerpiece offered, that's why we have banked on kubernetes and containers as that standardization layer. This way you can move a workflow from private to public, even ICP can be on other cloud vendors as well, not just IBM Cloud. So it's a private cloud that customers can manage, or in the public cloud or IBM kubernetes that we manage for them. Then it's about the app, the containerized app that can be moved around and that's where our announcements about Multicloud Manager, that we made late last year come into play, which helps you seamlessly move and integrate applications that are deployed on communities across private, public or multicloud. So that abstraction venire enables that to happen and that's why the open... >> So it's an operational construct? Not an IBM product, per say, if you think about it that way. So the question I have for you, I know Stu wants to jump in, he's got some questions. I want to get to this new mindset. The world's flipped upside down. The applications and workloads are dictating architecture and programmability to the DevOps, or infrastructure, in this case, Z or cloud. This is changing the game on how the cloud selection is. So we've been having a debate on theCUBE here, publicly, that in some cases it's the best cloud for the job decision, not a procurement, "I need multi-vendor cloud," versus I have a workload that runs best with this cloud. And it might be as if you're running 365, or G Suite as Google, Amazon's got something so it seems to be the trend. Do you agree with that? And certainly, there'll be many clouds. We think that's true, it's already happened. Your thoughts on this workload driving the requirements for the cloud? Whether it's a sole purpose cloud, meaning for the app. >> That's right. I'll start and Rohit will add in as well. That's where this chapter two comes into play, as we call Chapter Two of Cloud because it is about how do you take enterprise applications, the mission-critical complex workloads, and then look for the enablers. How do you make that modernization seamless? How do you make the cloud native seamless? So in that particular journey, is where IBM cloud and our Multicloud and Hybrid Cloud strategy come into play to make that transition happen and provide the set of capabilities that enterprises are looking for to move their critical workloads across private and public in bit much more assurance and performance and scale, and that's where the work that we are doing with Z, LinuxONE set of as an underpinning to embark on the journey to move those critical workloads to their cloud. So you're absolutely right. When they look at which cloud to go, it's about capabilities, the tools, the management orchestration layers that a cloud provider or a cloud vendor provide and it's not only just about IBM Public Cloud, but it's about enabling the enterprises to provide them the choice and then offer. >> So it's not multicloud for multicloud sake, it's multicloud, that's the reality. Workload drives the functionality. >> Absolutely. We see that as well. >> Validated on theCUBE by the gurus of IBM. The cloud for the job is the best solution. >> So I guess to kind of put a bow on this, the journey we're having is talking about distributed architectures, and you know, we're down on the weeds, we've got micro-services architectures, containerization, and we're working at making those things more secure. Obviously, there's still a little bit more work to do there, but what's next is we look forward, what are the challenges customers have. They live in this, you know, heterogeneous multicloud world. What do we have to do as an industry? Where is IBM making sure that they have a leadership position? >> From my perspective, I think really the next big wave of cloud is going to be looking at those enterprise workloads. It's funny, I was just having a conversation with a very big bank in the Netherlands, and they were, of course, a very big Z client, and asking us about the breadth of our cloud strategy and how they can move forward. Really looking at a private cloud strategy helping them modernize, and then looking at which targeted workloads they could move to public cloud is going to be the next frontier. And those 80 percent of workloads that haven't moved. >> An integration is key, and for you guys competitive strategy-wise, you've got a lot of business applications running on IBM's huge customer base. Focus on those. >> Yes. >> And then give them the path to the cloud. The integration piece is where the linchpin is and OSSI secure. >> Enterprise out guys. >> Love encryption, love to follow up more on the secure container thing, I think that's a great topic. We'll follow-up after this show Raj. Thanks for coming on. theCUBE coverage here. I'm John Furrier, Stu Miniman. Live coverage, day four, here live in San Francisco for IBM Think 2019. Stay with us more. Our next guests will be here right after a short break. (upbeat music)

>> [Announcer] 18, brought to you by Red Hat >> Well, welcome back everyone. This is theCUBE's exclusive coverage here in San Francisco, California, for Red Hat Summit 2018. I am John Furrier, co-host of theCUBE with my analyst co-host this week, John Troyer, co-founder of the TechReckoning advisory services. And our next guest is Arvind Krishna, who is the Senior Vice President of Hybrid Cloud at IBM and Director of IBM Research. Welcome back to theCUBE, good to see you. >> Thanks John and John great to meet you guys here. >> You can't get confused here you've got two John's here. Great to have you on because, you guys have been doing some deals with Red Hat, obviously the leader at open storage. You guys are one of them as well contributing to Linuxes well documented in the IBM history books on your role and relationship to Linux so check, check. But you guys are doing a lot of work with cloud, in a way that, frankly, is very specific to IBM but also has a large industry impact, not like the classic cloud. So I want to tie the knot here and put that together. So first I got to ask you, take a minute to talk about why you're here with Red Hat, what's the update with IBM with Red Hat? >> Great John, thanks for giving me the time. I'm going to talk about it in two steps: One, I'm going to talk about a few common tenets between IBM and Red Hat. Then I'll go from there to the specific news. So for the context, we both believe in Linux, I think that easy to state. We both believe in containers, I think that is the next thing to state. We'll come back talk about containers because this is a world, containers are linked to Linux containers are linked to these technologies called Kubernetes. Containers are linked to how you make workloads portable across many different environments, both private and public. Then I go on from there to say, that we both believe in hybrid. Hybrid meaning that people want the ability to run their workload, where ever they want. Be it on a private cloud, be it on a public cloud. And do it without having to rewrite everything as you go across. Okay, so let's establish, those are the market needs. So then you come back and say. And IBM has a great portfolio of Middleware, names like WebSphere and DB2 and I can go on and on. And Red Hat has a great footprint of Linux, in the Enterprise. So now you say, we've got the market need of hybrid. We've got these two thing, which between them are tens of millions, maybe hundreds of millions of end points. How do you make that need get fulfilled by this? And that's what we just announced here. So we announced that IBM Middleware will run containerized on Red Hat containers, on Red Hat Enterprise Linux. In addition, we said IBM Cloud Private, which is the ability to bring all of the IBM Middleware in a sort of a cloud-friendly form. Right you click and you install it, it keep it self up, it doesn't go down, it's elastic in a set of technologies we call IBM Cloud Private, running in turn on Red Hat OpenShift Container service on Red Hat Linux. So now for the first time, if you say I want private, I want public, I want to go here, I want to go there. You have a complete certified stack, that is complete. I think I can say, we're a unique in the industry, in giving you this. >> And this is where, kind of where, the fruit comes off the tree, for you guys. Because, we've been following you guys for years, and everyone's: Where's the cloud strategy? And first of all, it's not, you don't have a cloud strategy you have cloud products. Right, so you have delivered the goods. You got the, so just to replay. The market need we all know is the hybrid cloud, multi-cloud, choice et cetera, et cetera. >> You take Red Hat's footprint, your capabilities, your combined install base, is foundational. >> [Arvind] Right >> So, nothing needs to change. There's no lift and shift, there's no rip and replace, >> you can, it's out there it's foundational. Now on top of it, is where the action is. That where you're kind of getting at, right? >> That's correct, so we can go into somebody running, let's say, a massive online banking application or they're running a reservation system. It's using technologies from us, it's using Linux underneath and today it's all a bunch of piece pods, you have a huge complex stuff it's all hard-wired and rigidly nailed down to the floor in a few places and now you can say: Hey, I'll take the application. I don't have to rewrite the application. I can containerize it, I can put it here. And that same app now begins to work but in a way that's a lot more fluid and elastic. Or my other way: I want to do a bit more work. I want to expose a bit of it up as microservices. I want to insert some IA. You can go do that. You want to fully make it microservices enabled to be able to make it into little components >> and ultimately you can do that. >> So you can take it in sort of bite size chunks and go from one to other, at the pace that you want. >> [John F.] Now that's game changing. >> Yeah, that's what I really like about this announcement. It really brings best of breed together. You know, there is a lot of talk about containers. Legacy and we've been talking about what goes where? And do you have to break everything up? Like you were just saying. But the announcement today, WebSphere, the battle tested huge enterprise scale component, DB2, those things containerized and also in a frame work like with IBM, either with IBM microservices and application development things or others right, that's a huge endorsement for OpenShift as a platform. >> Absolutely, it is and look, we would be remiss if we didn't talk a little bit. I mean we use the word containers and containerized a lot. Yes, you're right. Containers are a really, really important technology but what containers enable is much more than prior attempts such as VM's and all have done. Containers really allow you to say: Hey, I solved the security problem, I solved the patching problem, the restart problem, all those problems that lie around the operations of a typical enterprise, can get solved with containers. VM's solved a lot about isolating the infrastructure but it didn't solve, as John was saying, the top half of the stack. And that's I think the huge power here. >> Yeah, I want to just double click on that because I think the containers thing is instrumental. Because it, first of all, being in the media and loving what we do. We're kind of a new kind of media company but traditional media is been throwing IBM under the bus since saying: Wow old guard and all these things. Here's the thing, you don't have to change anything. You got containers you can essentially wrap it up and then bring a microservice architecture into it. So you can actually leverage at cloud scale. So what interests me is that you can move instantly, >> value proposition wise, pre-existing market, cloudify it, if you will, with operational capabilities. >> Right. >> This is where I like the Cloud Private. So I want to kind of go there for a second. If I have a need to take what I have at IBM, whether it is WebSphere. Now I got developers, I got installed base. I don't have to put a migration plan away. I containerize it. Thank you very much. I do some cloud native stuff but I want to make it private. My use case is very specific, maybe it's confidential, maybe it's like a government region, Whatever. I can create a cloud operations, is that right? I can cloudify it, and run it? >> Absolutely correct, so when you look at Cloud Private, to go down that path, we said Cloud Private allows you to run on your private infrastructure but I want all these abilities you just described John. I want to be able to do microservices. I want to be able to scale up and down. I want to be able to say operations happen automatically. But it gives you all that but in the private without it having to go all the way to the public. If you cared a lot about, your in a regulated industry, you went down government or confidential data. Or you say this data is so sensitive, I don't really, I am not going to take the risk of it being anywhere else. It absolutely gives you that ability to go do that and that is what brought Cloud Private to the market for and then you combine that with OpenShift and now you get the powers of both together. >> See you guys essentially have brought to the table the years of effort with Bluemix, all that good stuff going on, you can bring it in and actually run this in any industry vertical. Pretty much, right? >> Absolutely, so if you look at part what the past has been for the entire industry. It has been a lot about constructing a public cloud. Not just us, but us and our competition. And a public cloud has certain capabilities and it has certain elasticity, it has a global footprint. But it doesn't have a footprint that is in every zip code or in every town or in every city. That's not what happens to a public cloud. So we say. It's a hybrid world meaning that you're going to run some workloads on a public cloud, I'd like to run some workloads on a private and I'd like to have the ability that I don't have to pre decide which is where. And that is what the containers and microservices, the OpenShift that combination all give you to say you don't need to pre decide. You rewrite the workload onto this and then you can decide where it runs. >> Well I was having this conversation with some folks at a recent Amazon Web services conference. Well, if you go to cloud operations, then the on premise is essentially the edge. It's not necessarily. Then the definition of on premise, really doesn't even exist. >> So if you have cloud operations, in a way, what is the data center then? It's just a connected issue. >> That's right, it's the infrastructure which is set up and then, at that point, the Software Manger, at the data center, as opposed to anything else. And that's kind of been the goal that we're all been wanting. >> Sounds like this is visibly at IBM's essentially execution plan from day one. We've been seeing it and connecting the dots. Having the ability to take either pre-existing resources, foundational things like Red Hat or what not in the enterprise. Not throwing it away. Building on top of it and having a new operating model, with software, with elastic scale, horizontally scalable, Synchronous, all these good things. Enabling microservices, with Kubernetes and containers. Now for the first time, >> I can roll out new software development life cycles in a cloud native environment without forgoing legacy infrastructure and investment. >> Absolutely, and one more element. And if you want to insert some cloud service into the environment, be it in private or in public, you can go do that. For example, you want to insert a couple of AI services >> into the middle of your application you could go do that. So the environment allows you to, do what you described and these additionals. >> I want to talk about people for a second. The titles that we haven't mentioned CIO, Business Leader, Business Unit Leaders, how are they looking at >> digital transformation and business transformation in your client bases you go out and talk to them. >> Let's take a hypothetical bank. And every bank today is looking about simple questions. How do I improve my customer experience? And everybody want, when they say customer experience, really do mean digital customer experience to make it very tangible. And what they mean by that is how do I get my end customer engaged with me through an app. The app is probably in a device like this. Some smart phone, we won't say what it is, and so how do you do that? And so they say: Well, all obviously to check your balance. You obviously want to check your credit card. You want to do all those things. The same things we do today. So that application exists, there is not much point in rewriting it. You might do the UI up but it's an app that exists. Then you say but I also want to give you information that's useful to you in the context to what you're doing. I want say, you can get a 10 second loan, not a 30 day loan, but a 10 second loan. I want to make a offer to you in the middle of you browsing credit card. All those are new customergistics, where do you construct those apps? How do you mix and match it? How do you use all the capabilities along with the data you've got to go do that? And what we're trying to now say, here is a platform that you can go, do all that on. Right, that complete lifecycle you mentioned, the development lifecycle but I got to add to it >> the data lifecycle, as well as, here is the versioning, here are my AI models, all those things, built in, into one platform. >> And scales are huge, the new competitive advantage. You guys are enabling that. So I got to ask you a question on multi cloud. Obviously, as people start building out the cloud on PRIM and with Public Cloud and the things you're laying out. I can see that going on for a while, a lot of work being done there. We're seeing that Wikibon had a true Private Cloud report what I thought was truly telling. A lot of growth there, still not going away. Public Cloud's certainly grown in numbers are clear. However, the word multicloud's being kicked around I think it's more of a future stay obviously but people have multiple clouds Will have relationships with multiple clouds. No one's going to have one cloud. It's not a winner take all game. Winner take most but you know you're have multiple clouds. What does multi cloud mean to you guys in your architecture? Is that moving workloads in real time based upon spot pricing indexes or is that just co-locating on clouds and saying I got this app on this cloud, that app on that cloud, control plane it. These are architectural questions. What the hell is multicloud? >> So there's a today, then there is a tomorrow, then there is a long future state, right? So let's take today, let's take IBM. We're on Salesforce, we're on ServiceNow, we're on Workday, we're on SuccessFactors, well all of there are different clouds. We run our own public cloud, we run our own private cloud and we have Judicial Data Center. And we might have some of the other clouds also through apps that we barter we don't even know. Okay, so that's just us. I think everyone of our clients are like this. The multicloud is here today. I begin with that first, simple statement. And I need to connect the data and can connect when thing go where. The next step, I think people, nobody's going to have even one public cloud. Even amongst the big public clouds, most people are going to have two if not more That's today and tomorrow. >> Your channel partners have clouds, by the way, your Global SI's all have clouds, theCUBE is a cloud for crying out load. >> Right, so then you go into the aspirational state and that may be the one you said, where people just spot pricing. But even if I stay back from spot pricing and completely (mumbles) I make. And I'm worrying about network and I'm worrying about radio reach. If I just backup around to but I may decide I have this app, I run it on private, well, but I don't have all the infrastructures I want to burst it today and I, where do I burst it? I got to decide which public and how do I go there? >> And that's a problem of today and we're doing that and that is why I think multicloud is here now. >> Not some point in the future. >> The prime statement there is latency, managing, service level agreements between clouds and so on and so forth. >> Access control on governance, Where does my data go? Because there may be regulatory reasons to decide where the data can flow and all those things. >> Great point about the cloud. I never thought about it that way. It is a good illustration. I would also say that, I see the same arguments in the data base world. Not everyone has DB2, not everyone has Oracle, not everyone has, databases are everywhere, you have databases part of IoT devices now. So like no one makes a decision on the database. Similar with clouds, you see a similar dynamic. It's the glue layer that, interest me. As you, how do you bring them together? So holistically looking at the 20 miles stare in the future, what is the integration strategy long-term? If you look at distributed system or an operating system there has to be an architectural guiding principle for integration, your thoughts. >> This has been a world 30 years in the making. We can say networking, everyone had their own networking standard and the, let's say the '80s probably goes back to the '70s right? You had SNA, you had TCP/IP, you had NetBIO's-- >> DECnet. DECnet. You can on and on and in the end it's TCP/IP that won out as the glue. Others by the way, survived but in packets and then TCP/IP was the glue. Then you can fast forward 15 years beyond that and HTTP became the glue, we call that the internet. Then you can fast forward and you can say, now how do I make applications portable? And I will turn round and tell you that containers on Linux with Kubernetes as orchestration is that glue layer. Now in order to make it so, just like TCP/IP, it wasn't enough to say TCP/IP you needed routing tables, you needed DNS, you needed name repository, you needed all those things. Similarly, you need all those here are called the scatlog and automation, so that's the glue layer that makes all of this work >> This is important, I love this conversation because I have been ranting on theCUBE for years. You nailed it. A new stack is developing and DNS's are old and internet infrastructure, cloud infrastructure at the global scale is seeing things like network effect, okay we see blockchain in token economics, databases, multiple databases, on structure day >> a new plethora of new things are happening that are building on top of say HTTP >> [Arvind] Correct! >> And this is the new opportunity. >> This is the new platform which is emerging and it is going to enable business to operate, as you said, >> at scale, to be very digital, to be very nimble. Application life cycles aren't always going to be months, they're going to come down to days and this is what gets enabled >> So I what you to give your opinion, personal or IBM or whatever perspective because I think you nailed the glue layer on Kubernetes, Docker, this new glue layer that and you made references to, things like HTTP and TCP, which changed the industry landscape, wealth creation, new brands emerged, companies we never heard of emerged out of this and we're all using them today. We expect a new set of brands are going to emerge, new technologies are going to emerge. In your expert opinion, how gigantic is this swarm of new innovation going to be? Just, 'cause you've seen many ways before. In you view, your minds eye, what are you expecting? >> Share your insight into how big of a shift and wave is this going to be and add some color to that. >> I think that if I take a shorter and then a longer term view. in the short term, I think that we said, that this is in the order of $100 billion, that's not just our estimate, I think even Gartner has estimated about the same number. That will be the amount of opportunity for new technologies in what we've been describing. And that is I think short term. If I go longer term, I think as much as a half but at least a fourth of the complete IT market is going to shift round to these technologies. So then the winners of those that make the shift and then by conclusion, the losers are those who don't make the shift fast enough. If half the market moves, that's huge. >> It's interesting we used to look at certain segments going back years just company, oh this company's replatformizing, >> replatforming their op lift and shift and all this stuff. What you're talking about here is so game changing because the industry is replatforming >> That's correct. It's not a company. >>It's an industry! That's right. And I think the internet era of 1995, to put that point, is perhaps the easiest analogy to what is happening. >> Not the emergence of cloud, not the emergence of all that I think that was small steps. >> What we are talking about now is back to the 1995 statement >> [John] Every vertical is upgrading their stack across what from e-commerce to whatever. >> That's right. >> It's completely modernizing. >> Correct. Around cloud. >> What we call digital transformation in a sense, yes >> I'm not a big fan of the word but I understand what you mean. Great insight Arvind, thanks for coming on theCUBE and sharing. We didn't even get to some of the other good stuff. But IBM and Red Hat doing some great stuff obviously foundational, I mean, Red Hat, Tier one, first class citizen in every single enterprise and software environment you know, now OpenSource runs the world. You guys are no stranger to Linux being the first billion dollar investment going back >> so you guys have a heritage there so congratulations on the relationship. >> I mean 18 years ago, if I remember 1999. >> I love the strategy, hybrid cloud here at IBM and Red Hat. This is theCUBE, bringing all the action here in San Francisco. I am John Furrier, John Troyer. More live coverage. Stay with us, here in theCUBE. We'll be right back. (upbeat music)

>> Narrator: Live, from Las Vegas! It's the Cube, covering IBM Think 2018. Brought to you by IBM. >> We're back at IBM Think 2018. This is day three of our wall to wall coverage. My name is Dave Vellante and you're watching the Cube, the leader in live tech coverage. A lot of times in the Cube, we talk about how CIO's understood a while ago, they just can't take their business and put it up into the cloud. Rather, they have to bring the cloud operating model to their data. So that's a topic that we're going to talk about with Dave Linquist, who's here. He's an IBM fellow and Vice President of Private Cloud at IBM and Ajay Apte, who's a Distinguished Engineer of IBM Cloud Private. Gentleman, welcome to the Cube. Good to see you again! >> Good to see you Dave. >> Thank you. >> So, Dave, let's start with you. IBM Cloud Private, you heard my little narrative at the beginning. I think it's consistent with what your philosophy is, but what is IBM Cloud Private? What's it all about? >> Sure. Well why don't we just start with, there's public clouds, private clouds, hybrid clouds and the ability to match your workload requirements with the particular cloud, is very important. And having that consistency between private and public, so you have that flexibility, whether it's security, performance, cross aspects, regulatory, et cetera, is an important part of a multi-cloud strategy. With Private Cloud, in particular, we introduce Private Cloud, the offering is called IBM Cloud Private, last year. And the demand has been through the roof at the enterprises. What we're effectively doing, is bringing cloud-native technologies, right into the enterprise. It's really quite cool. We're bringing Kubernetes and containers into the enterprise, optimizing a lot of the core enterprise middleware, so it runs on this optimized Kubernetes environment and then integrating it with the security and operational systems of the enterprise. >> So as you said, you only recently, really, announced the IBM Cloud Private and you talked about private cloud for years, as did others. But others, maybe, had an offering, but the offering really didn't work. It really wasn't the cloud experience, so what did you guys have to go through... I mean, it's not trivial to get that cloud experience. So maybe Ajay, you can talk about, sort of, how you got there and what you had to do to get there. >> Right. We started with some use cases that we had in mind. So let me talk about three, very core use cases that we started with. The first one is, IBM has an anonymous enterprise grade, production ready, footprint of middleware in our customer's data center. We wanted to bring that footprint to a containerized wall, to a cloud-based operational model. When I say enterprise grade footprint that customers have today, they measure the success of that footprint in terms of KPIs, in terms of resilience, in terms of reliability, in terms of security and compliance, these kind of things. We wanted to bring the same qualities of services to a private cloud model, in a container model That was probably one of the main use cases that we started targeting. On the other side of the spectrum, the cloud-native micro-services based department. This is where most of the developers are interested in today. This is where really high velocity, agility, can be achieved. So that was the second use case that we were targeting. In both those cases, the key also is that customers already have existing tools and practices, those kinds of things, the data center. The idea was to very seamlessly integrate into that set of tools and practices and even people within the data center, while providing the same cloud operational model. And then the third main use case was around integration. By integration, there are various dimensions to integration. There's integration between the footprint that's running on PrIM with the things that are not running in containers. They my be running in DMs or bare metal instances or maybe whole systems running on our main frame, like IBM Z systems, right? And then there will be other services, may be running SAS services in public cloud, so the integration scenario is basically expanded from our legacy footprint all the way into the public cloud SAS connector, so that integration was the third use case for us. So those three use cases, I would say, became the foundation of what we did over last one year. >> So Dave, in thinking about, you know, bringing the cloud-operating model to the data, what should clients expect, in terms of that experience? Is it substantially similar? Identical? Are there huge gaps? What do you tell people? >> Well, that's a good question. What they're going to experience is, when you're using public cloud environments, what you'll see is your developers get rapid access to the content they need to start developing applications. And it fits very well into their agile DevOps life cycles, high iterations. And what you'll see is, operations teams often refer to it as site reliability engineering in a cloud model. They have access to all the efficiencies of cloud for deployment, scale, recovery, maintenance, all those types of pieces. So what a customer will experience is we're bringing those capabilities into the data center, but as Ajay pointed out, we're then able to run a lot of the core transactional data, analytic, messaging workloads right on that environment, so the developers get rapid access to that type of content, what they need. And the operations, can leverage those capabilities on a cloud infrastructure. That's the experience they're going to get, matching up the enterprise requirements with the cloud-native. >> Is the impetus to take that proprietary data, that 80% of data Ginni Rometty talked about that isn't searchable on the public web. Is the impetus to get leverage out of that data, that they don't want to put into the public cloud, or is to modernize their applications and cut their costs? Probably both, but I wonder if you can talk to-- >> There are many higher level, type of scenarios and use cases, so one that Ajay went through is, really modernizing your applications, extending with innovation. But as Ginni talked about, and I think, you probably had sessions earlier on IBM Cloud Private for data, what we're seeing is how we can bring many of the critical data services together, from data science experience and data analytics and data governance and movement and management, into this cloud technology, so that it can be used against the data that's in the data center, within the enterprise to start getting insights into that data and furthering their business. >> Ajay, I wonder if you can take us inside the development process, even the thought process behind how you approach this. The secret sauce, how you approach this challenge, maybe, differently, than historically, you've approached system design? >> Right, so since the whole idea of IBM Cloud Private is around cloud operational model, high velocity, agility, those are the things we are preaching to our customers. The very key principle there is, using those in our development, as well. Our development itself, is built on the same, open source DevOps tool chains, the cloud operational principles, so that we can achieve the exact same velocity, agility, that our customers are expecting to achieve with the kind of offerings that we are trying to make over here. So that's, sort of, the first key principle for us. The second principle, is around production readiness. When we are expecting a customer to run production-ready workloads, we have security, compliance, reliability, these kinds of things, the same principles apply back to the platform that they're going to use for running those workloads, as well. So the first thing is, we are our own customers. We have to apply the same principles to our platform, so that customers can do the same thing. Our platform is, sort of, a layered model, where we have Kubernetes and Cloud Foundry as the containerization model, but we also have a plethora of IBM and non-IBM and open source middleware software, that's running on top of that. And then, we have customer applications running on top of that, so we have to make sure that as we build this platform, all these layers are taken care of, in terms of how we can deliver a production-grade offering end to end. Like, when we talk about Watson Studio, what Ginni mentioned yesterday, running as part of ICP for data, for example, The idea of running that, where it's not just about ICP running a database, it's about what happens to the life cycle of the data and how ICP gets designed to make sure the life cycle of that data can be managed in a containerized model. Those are the kinds of things that became very important for our philosophy. >> Having a little fun, our development team rocks! They are incredible. What our organization has done, it's fully embraced all the agile DevOps capabilities, it's all developed on a cloud environment, we actually use ICP in our development of our IBM Cloud Private. It's weekly iterations, two week sprints, and every quarter, we have a major release. We've done that the last four quarters, we've had a major release come out. It's really been exciting. >> So one of the great things about shows like this, is that you can't walk around without bumping into a customer. So, my question, Dave, is what are they telling you? What's resonating with the customers, in terms of the services that they're consuming? What are they like? What do they want? What are they asking you for? >> So we did what we consider a soft launch in June, where wanted to get some experience and feedback from users and operations. And what we actually did, is opened a open-select channel with our users. So we had tens of thousands of downloads that came with that very first release and we got feedback continually on what they liked from content, how they liked the environment, the whole experience. In the beginning of the fourth quarter, we did a major launch with all the middleware capabilities, that content on the platform, it just took off. Since that time, we have upwards of 150 global accounts picked up IBM Cloud Private and started and going through the deployment, some are even going into production. The thing that resonates with them so quickly, is they have so many existing workloads that they've been trying, to really, bring into this dev transformation, trying to bring into cloud technologies and this creates a journey, a path for them through application modernization and then adding all kinds of innovation with micro-services for refactoring or even adding Watson Artificial Intelligence Services into the environment. >> Ajay, I started off asking you, sort of, where you got the motivation, a good starting point, your answer was outside in. You started with the customers, looked at use cases. Having said that, you're trying to replicate, mimic, to the greatest degree possible, the public cloud experience, so there's a reference model there. So when you think about what's next, do you, sort of, pop over to your public cloud colleagues in the IBM Cloud and have a little bake off and see? Where do you get your motivation going forward, your, sort of, road map ideas. Obviously, the customers, but do you benchmark yourself against public cloud to try to close that gap? How do you approach that? >> Sure, there are multiple dimension. Customers, of course, is one of the important ones. Having a consistent story between IBM Public Cloud and IBM Cloud Private, is an absolute key principle for us. It's not just a requirement, but it's not just about keeping them functionally consistent, keeping them expedience-wise consistent, but making sure that when customers embark on the journey of hybrid deployment, be it, in terms of doing my dev test in public and then moving to IBM Cloud Private for production, or be a bursting scenario, these kind of things. Customers, not only want to run their application seamlessly, they want performance, they want network connectivity, they want secure connectivity, these kind of things. So that becomes another angle, in terms of how we are growing this, we have public, we have private, we can build a seamless hybrid storage today, but how do we evolve that hybrid storage to make sure that we can give them the same qualities of service? Just because you move your application from private to public, if the data stays on private, the performance is going to really impact, it'll suffer. How do you make sure that those kinds of things are taken care of when customers truly build that? So that's the second dimension of how do we really take the customers on the hybrid journey? And the third important one, is that customers, of course, are going to deploy on our cloud, on other clouds, right? They will always have multiple clusters, geographically distributed. How do we manage their entire footprint and give them the right views for deployment, management, accountability, these kinds of things, across that entire real estate, right? What we generally call hybrid cloud management, multi-cloud management. >> And that's a really, fundamental technical challenge, presumably. To create that similar capability, that consistency, maintaining performance. You've got a got of challenges there. Good thing these guys are rock stars! Alright, Dave. We'll give you the last word. If you had to summarize Think 2018 in less than 10 words, what would you say? >> Accelerate your transformation with cloud. That's what I would say. Leverage the technologies across IOT, public, private cloud, AI, block chain, and accelerate the transformation. >> Ajay, Dave, thanks very much for coming to the Cube. Good to see you again. >> Thank you. >> Alright, keep it right there, buddy. We'll be right back with our next guest. You're watching the Cube, we're live from Think 2018. (techno music)

>> Narrator: Live from Las Vegas it's theCUBE. Covering IBM Think 2018. Brought to you by IBM. >> Hello everyone, welcome to theCUBE here at IBM Think 2018. I'm John Furrier. We're on the ground with theCUBE. In theCUBE studio today we have a live audience on break but I had a chance to meet with the Chief Digital Officer of Hybrid Cloud, Janine Snead, who's just appointed. She's here in set on theCUBE. Great to see you at IBM Think. >> Hi, great to see you. Thanks for having me. >> Thanks for coming on. I'm super excited. When I interviewed Bob Lord last year, Chief Digital Officer, you know we love digital on theCUBE so we get really excited. We're like great, that's awesome. Now IBM's got more Chief Digital Officers being appointed >> Janine: That's right. >> You're the first Chief Digital Officer in a business unit. That's awesome, congratulations. >> Thank you. Yeah we're excited about it. We know and we believe that the future is really in the hands of the web. And we know that customers are engaging with us differently. They want much more of a self service. They want to experience the products without always I'll say a person interacting with them. And we know that from a product perspective there's things that we need to do to make our offerings much more digitally consumable. So we're taking this very seriously. And we put an organization in place Digital within Hybrid Cloud, that truly focuses on the time from a customer goes out and actually does a search, all the way through the buyer journey to the time they get to the product. >> John: You know I've been a student of IBM I actually worked at IBM as a co-op back in my early days. IBM has always been on the leading edge of marketing. And you guys are looking at socially you looked at social in an early way, digital in an early way, but now with the cloud you can actually engage customers digitally. So I've got to ask you, you know, how are you going to do that? >> Janine: Yeah >> John: Because you've got to remember websites are now the fabric of all this that's 30 year old tech stack. You've got cloud now, you've got APIs with the synchronous software packages. You've got blockchain. All these new things. So what's the vision as you guys go out and start putting stakes in the ground for a digital strategy. How are you guys doing it, can you share the vision? >> Yeah, I think it starts with using our own technology. So within the Hybrid Cloud organization, we have a lot of software and we're putting that software out on the cloud. We want customers to engage with us digitally through a technical experience. So we're taking our products, putting product demos, we're putting POTs, we're putting even proof of concept secure in the cloud, guided demos where they can come and experience these offerings without ever engaging with us. Now of course once they're ready they can engage with us but this is truly about a low touch, self service way for customers to engage with our products. >> Now a lot of people, and we talk about this all the time, but the general sentiment online now is you have the kind of crazies out there you've seen that on Reddit, fake news, weaponizing content. Then you have the other side of the spectrum where people are like, I don't want to be sold to. I'm discovering, I want to learn. >> Janine: Yes. >> John: I'm in communities. I know you guys address that. I want you to just clarify, because there's a model now where people just want to be ingratiated in. You know, kick the tires. Which by the way, kicking tires right now is much different than it was years ago because you have APIs. You have SARS source code. You have credits for cloud. >> Janine: That's right. >> What is the digital motion there? I mean obviously it's a light touch. >> Yeah >> But is it still an IBM.com? >> It is. So we're still on IBM.com properties. And we're nurturing with the ecosystem and the communities to also go where they are, but bring them back to the IBM.com properties and engage with them when they're ready. You know, we've done the research. We know that 70% of b2b buyers learn about your products and your services without ever talking to you. So we want to be where those users are and eventually that will be back on our property but we also want to find them where they are. >> You know, one of the things we were talking about before you came on camera here, We've been doing theCUBE for seven years or so plus six shows now to one show. But the thought leadership on theCUBE has always been powerful. And that's seemed to be a great way to get into communities. And IBM's got a lot of thought leaders. So I'm sure you have a plan for thought leaders. You have IBM Fellows. You've got R&D. You've got a lot of content opportunities. >> We do. We've got a lot of partners. So here at this conference we've been talking to a lot of our partners who want to be a part of this experience. We've got great solutions and all of our solutions a lot of them are delivered with partners. And so it's working the community. It's working the ecosystem. And it's doing this together with partners to allow them to contribute and allow customers to come and consume solutions. In much of a use case way, of course you can have product by product by products, but how do you essentially deliver solutions based on use cases. >> So I'll ask you a personal question. How did you get here? Was it like hey, I want to do the digital job, was it an itch that you were scratching, did Bob Lord lure you into the job? (Janine laughs) Did he recruit you? I mean -- >> No, it's -- >> How did you get it? >> It's a great question >> Because this is a great opportunity. >> It is. I'm a product person by training. And I spent the last 18 months in sales. And I enjoyed every minute of that and listening and understanding how our sellers want to consume. Short, snackable type of learning and training and watching what was going on with the digital ecosystem I thought it was a great way to really mix my skills that I have within product with what I just learned from my sales role. And I did nine months in marketing. So I felt like it was kind of a mixture. And we have a huge opportunity here. So the opportunity presented itself. >> Sales always has a my favorite sales expression is people love to buy from people that they like. How are you going to make IBM likable digitally? Is there a strategy there? >> Oh, it's simple. (John laughs) It is so dead simple. It's about the user experience. When users come, you have to give them the best experience possible because you never get a second chance to make a good first impression. So I want to basically set the bar. And we're an MVP right now with a lot of the stuff that we're doing out. >> You mean software and tools and stuff? >> Yeah, no, well, our experience right now so when you come and you experience our tools I'm sorry, our demos and our proof of technologies and our tutorials out on our site it's MVP. We're 45 days old. But it's about the user experience. And so we've been serving users here that are coming to try our stuff. >> So the Digital Technical Engagement, that's the DTE? >> Janine: DTE, yep. >> That's the one that's 45 days? >> That's the one that's 45 days old. >> The IBM site's not 45 days old. >> Yeah, yeah. >> But this new program. So take a minute to explain what the DTE, the Digital Technical Engagement program is. What was the guiding principles behind it >> Yeah >> What's some of the deign objectives is there any new cool tech under the covers? Share a little bit of color on that. >> Sure, sure. Happy to. So back in the fourth quarter of last year we took a look and we said, how are customers consuming? How are we engaging? How are we showing up? And what do we need to do to shift to become more agile and lighten the way that we showed up. And so we really gathered a few smart creatives from the CIO's office, from IBM design, from product and from marketing and we said guys, we're going to run an experiment. We want to set up a site off of IBM.com a page off of IBM.com and it's very simple. Keep it so clean. Keep the user experience clean. Take something like IBM Cloud Private. Give me three product demos. Give me one guided demo where in 10 minutes a client can get through IBM Cloud Private without getting stuck and then give them a way to try it for two weeks. Just experiment. Well, in 90 days we've had 10,500 users try that guided demo and our NPS is 56. >> What does NPS mean? - Net Promoter Score >> That's what I figured, okay. >> So it's about experimentation. And so in this world that we're going into we want to experiment. And so from there, what happened, that proved to be successful. We now have an organization of about 60 people within digital technical engagement deep product experts, but we also have a platform team to drive that experience. >> So there's some real value there. I mean, a lot of people look at website and digital technologies as ad tech, you know, and there's a lot of bad press out there now with Facebook where a lot of people are looking at Facebook as content that got weaponized for fake news and the ad tech has a bad track record of fill out a form, they're going to sell me something. How are you going to change that perception? >> That's a great question. So a lot of the folks that we're working with right now say you have to capture user information capture user information. And for me, I don't want to be bothered. So I'm kind of looking at this maybe a little bit too selfishly saying I want to demo without giving you my information. We have our product demos and our guided demos, we don't collect any information from the user. When you are going to reserve our software for two weeks, up to a month, we do collect some information about you. >> John: You got to. >> We have to. >> At some point. >> So we're keeping it very low touch because we know that's how users want to engage. >> You don't want to gate the hell out of it. >> No, we don't want to gate the hell out of it. We want to keep it just, let them explore without being all over them. Right? >> Talk about the new IBM. You know, one of the things that's transforming right now that I'm impressed with is IBM's constantly reinventing themself. I was impressed with Ginni's keynote. The way she talks about data in the middle, blockchain on one side and AI on the other. I call it the innovation sandwich. >> Janine: Yeah >> How are you applying that vision to digital? I mean not yet obviously, you're only at the beginning. >> Right But that vision is pretty solid. And she brought up Moore's Law and Metcalfe's Law. >> That's right. >> Moore's Law is making things faster, smaller, cheaper. >> Right >> Component wise and speed. >> Yes >> Metcalfe's Law is about network effect and the future of digital is either going to be token economics or blockchain with programatic tooling that gives users great experiences. So how do you tie that together? Maybe it's too early to ask, but-- >> No, no. It's simple. I'm a consumer of this stuff. I'm using the cloud. I'm using the IBM Design Thinking because I brought in three designers from Phil Gilbert's group. Right? I'm embedded in the digital organization basically, regardless of where I sit. So we are adopting best practices that come from IBM's big chief digital office. >> So you get to use your own tools, that's one of the things she said. >> Yeah and we'll embed, we'll get there. Right? >> Yeah >> Well actually, we already are doing, we embedded chat. So we've got Watson Chat running on our SPSS statistics page So it's about the cloud, it's about user experience. It's about applying digital practices from Bob Lord's organization and then it's about Watson. >> I was having a great Twitter thread with a bunch of people that were on Twitter just ranting on the weekend a couple weekends ago about digital transformation. Tom Peters actually jumped in, the famous Tom Peters who wrote the books there, a management consultant, about digital transformation. I love digital transformation, it's overused, but it's legit. People are transforming. So the question was, how do you do it successfully? And all the canned answers came out. Well, you need commitment from the top. You've got to have this and that. And I said look, bottom line, if people don't have the expertise, and if they don't know what they're doing, they can't transform. So it begs the question for skills gap. A lot of people are learning, so there's a learning environment. It's not just sales. Proficiency, getting the product buying. There's a community thirst for learning. How is that incorporated in, if any? >> I think I have a little bit of a different hurdle. The people that we're working with are learning. They're out in the communities they're engaging. I think one of the things that we have to continue to do is continue to show the value of digital transformation. Remember, IBM is a big company. I'm not a ten person startup. Right? We're a bigger organization so what we have to do is show why digital is important back in with our product teams. I think for the most part our marketing teams get it. Because you have to make trade offs. Am I going to invest in this feature in the product or am I going to put in something like eCommerce so you can subscribe and buy. >> Priorities. But you're a product person, so it's all about the trade offs. >> Yeah, it's all about the trade offs, right? So the skills are part of it but some of it is just education on why this is so critical. And then the last thing is passion. You have to bring the skills, the education and then that passionate team that really believes that they can get this done. >> Okay so given that, let's go back to some of the comments I made about the people who we were talking about on Twitter >> Janine: Sure >> Commitment from the top. IBM commitment at the top is there? What are they saying, what's the marching orders? >> The marching orders is we got to go and we're not moving fast enough. Speed, speed, speed, right? So we got to move fast. >> So in an interview with Bob Lord, one of the things we talked about was interesting. He's like I like to just get stuff done. I think he might have used another word. Maybe it was off camera he said that. IBM's got a lot of process. How do you take the old IBM process and make it work for you rather than having digital work for the process? >> Yeah >> It's a lot of internal things but no need to give away too much but it's a management challenge. How do you cut through it? >> I think from a process perspective, these are conversations and you have to explain why. If you could go in and explain why you need to do something differently, then people will listen. I'd like to give an example, okay? I had 26 days to get five products out the door. I formed a team January 2nd. By January 26th, I had to be live. Now I worked with my marketing team and I said I will get into your buyer journey, but I have to launch my Digital Technical Engagement site and my products. They understood. So I went live. Now, will I back back into the process? Sure I will. >> John: But you had good alignment. >> But yeah, we have to move fast, right? So it's explaining why and having mature conversations and then people that really believe in digital they'll support you. >> Great conversation. I'm looking forward to chatting more with you. We're at theCUBE. But I want to ask you one final question before we break. What's your objective? What's the roadmap for you, what's your top priorities? Are you hiring? Who're you looking for? What kind of product priorities, what's the sales priorities? What's your to-do list? >> I think let's start with the customer. So the customer priority is to deliver the best experience possible as they engage with IBM digitally. And that's all about the user experience. From a talent perspective, it's all about diversity, inclusion, and people that come with different skills from technology, to growth hacking, to marketing, and to engineering. And some people that think differently. We want people that, no idea is a bad idea, just come and bring great ideas. >> Well, diversity and inclusion, first of all, half of the users are women. And you also have to have an understanding of the use cases. >> Yeah >> It's not just men using software. >> Yeah, that's right. >> It's a huge deal. >> That's right, that's right. >> Alright well, Janine, great to have you on theCUBE. Thanks for spending the time. >> Thank you. >> Congratulations on the new role. Janine Sneed, Chief Digital Officer from IBM Hybrid Cloud. First IBM Chief Digital Officer in a business unit. I also today have Bob Lord and a lot of other folks doing digital but great to see the digital momentum. >> Thank you. >> It's not just a selling apparatus. It's all about value for users. It's theCUBE bringing you the value here at IBM Think 2018. I'm John Furrier, back with more after this short break. (upbeat music)

>> Announcer: Live, from Las Vegas, It's theCUBE, covering IBM Think 2018. Brought to you by IBM. >> We're back at IBM Think 2018 from Mandalay Bay in Las Vegas. My name is Dave Vellante. I'm here with Peter Burris, my co-host. You're watching theCUBE, the leader in live tech coverage. Scott Hebner's here as the Vice President of Marketing for IBM Analytics. Scott, welcome back, good to see you. >> Thank you, glad to be back again. >> So you heard Jenny this morning, a very inspiring speech. I love her talks. She's really good in front of an audience and one-on-one. What were your takeaways, specifically as it relates to your group? >> Well I think the theme of this whole conference is a lot of these technologies over the years that have been purchased separately and are thought of separate, quote-unquote, segments, are really all starting to fuse together. They're becoming different facets of the same challenge that a large majority of our clients have. And that is really this evolution towards a more AI based set of business models, right? There's a stack of things that need to be done to make that successful. You've got to move to the cloud for the agility of it, the economics of it. You got to get more value out of your data, and make your data ready for AI. Then you can start to more effectively train your AI models and allow them to continue to learn and everything. So it all really comes together, and I thought that's what she was framing, of what IBM's trying to do uniquely. >> Yeah, and I think it came across that way. Obviously, this conference is about bringing together all the separate... And your organization is evolving. I mean, when you think about IBM... Go back, Peter, to even the Gerstner days, and he said, "No, we're not going to split up "into a million companies. "We're going to have one face to the customer." And then, obviously, IBM was very successful there. You now had some major changes in the marketplace and you're responding to those. >> Yeah, and I think that's exactly right. We're being very customer-driven. One of the great advantages of IBM is that we have so many customers, right? A mix of new ones, a mix of ones we've had for a long time. We have so many people that engage. If you think about the size of IBM and how many are engaged with customers every single day at all levels, from the very most technical to the people that manage relationships, we learn a lot collectively. With all the new technologies, particularly around digital, net promoter score, all these things, we learn a lot about what they're trying to do. And that's what's driving us to fuse these strategies together into a more wholistic one. And that's what you heard this morning from Jenny. >> So, I also really enjoyed what I heard this morning from Jenny. It takes me reminded me, though, of one of those television shows where people bring in their old family artifacts, and then people price them. I imagine enterprises today literally looking at their data, the 80% that nobody has visibility to, and finding Grandpa's letter from Abraham Lincoln. >> Yeah. >> And using and discovering that this is a source of value that they've never envisioned before. Is that kind of the mentality, the conversation, that we're having today? >> No, that's exactly right. A large, large majority of CEOs have declared their data to be a strategic asset, but only about 10% of them believe their company treats it that way. And it leads to the statistic that you just referenced, which is 80% of data is either unanalyzed, untrusted, or inaccessible. So they're sitting on a gold mine of data, right? It's not just empirical customer records, but it's increasingly IOT and sensor data. It's behavioral data. There's a gold mine there. Step one is how do you take advantage of that and get more value out of it, right? Just in today's world, right? And then it really becomes fundamental to being successful with artificial intelligence. You have to have an information architecture. We kind of say if there's no IA, there's no AI. You have to have that information architecture to be successful, and that's really where we're focused on at this conference today, is getting that data ready for AI. >> So getting the data ready for AI, there's a lot that goes into that. But when you consider the notion of data as an asset, and what we heard from Jenny this morning, it seems as so, in many respects, there's kind of two models happening in the industry. You can see if I got this right. Companies that make money off of your data and companies that aren't going to make money off of your data. >> Right. >> Would you agree... I mean, is that kind of how the split is starting to happen in the industry right now? >> Yeah, no, I think that's right. I mean, I think a large majority of our clients are using their data within their firewall to operate their businesses better, better understand their customers. >> No, I learned something different. Yeah, sorry, I apologize. Companies that are going to make money off their customers' data-- >> Yes. >> And companies that are not going to make money off their customers' data. >> Yeah. >> Right? >> Yeah. What I'm saying is... No, I get the question. Different companies have different business models with what they're going to do with their data. Some see it as an asset to run their business more effectively. Others see it at as a direct asset that they sell and resell and resell, right? What I'm saying is the majority of the customers we deal with are looking at their data as an asset to run their business better. >> And that's the basis for the argument that the incumbency, that we're entering back into the area of the incumbency because of all these rich assets that aren't currently being utilized. Is that right? >> That's right. >> Great. >> It all starts with the fact that the data is fragmented everywhere. Business partner networks across different databases. Step one is to make that data simple and accessible. But once you do that, that's not the end of it because you need to make sure that the data that people are using is trusted. You have to have that trusted analytics foundation. So you got to integrate it, replicate it, catalog it, cleanse it, manage its lifecycle. You need to have one version of the truth, right, that everyone works off of, which is a major problem, by the way. It's the whole notion of governance and that falls into other categories like privacy and all the compliance challenges that customers have. Then from there, you have that foundation where you can start to drive more insights out of it through things like machine learning and pattern recognition. As you start to build those skills around data science, it starts to get you really ready for that next step on that ladder to AI. That's where a lot of these customers are figuring out how do I get on this roadmap to AI. And 85% or so say they're going to get there in the next five years. There's a great study from MIT Sloan that came out last year of 3,000 customers and was very clear. The difference between the pioneers that are having success, and those that aren't, is the pioneers have figured out how to make their data ready for AI. It all really starts there. That's really what we're focused on here at the show. >> Let's talk about that incumbent theme. It was part of Jenny's talk this morning. >> Scott: Yup. >> And you're right, the incumbents, their data exists in silos, even though they're maybe data companies, like a bank. >> Scott: Yeah. >> They're organized, perhaps, around their products. Or a manufacturer might be organized around the bottling plant, as you say. Whereas those companies that are AI driven have data at their core. So it's a challenge for the incumbent. >> Huge. >> How are you helping them close that gap, that AI gap, if you will? >> Right, and that's exactly what I was just saying before, is that the data is incredibly dynamic and growing at exponential rates. Not only through what you just mentioned, but there's acquisitions. There's different business partners that evolve through your networks, your client data, things of that nature. >> Dave: And data sources, yeah. >> Data sources are changing. And then you get into the technical layer of all different types of data, from images to empirical data. And then you get into different databases. It becomes a very heterogenous mess. Step one is to make it simple and accessible. And doing that though big data and being able to view through a single layer all the data as it changes, right? Because if you don't have access to your data, then what are you going to be training your AI algorithms on? And again, from there, you've got to govern it in a way that it's trusted data. This is a huge challenge for customers, because they get different versions of data that tell them different things. Which is the single version of the truth? It's kind of like if you've ever been on a... When you get on a treadmill, your watch says this many steps, your phone says another number of steps, the treadmill says the third number of steps. You're like, how many steps did I really take? They have that challenge every day. When you get that foundation and information architecture together, then you're ready for AI. What this MIT Sloan study showed was that bad data is paralyzing to AI. No matter how sophisticated your algorithmic AI capabilities are, bad data is simply paralyzing. So that's really where it needs to start. To circle back to your point about 80% of data, untrusted, unanalyzed, and inaccessible, that's got to be step one on that ladder to AI. >> So how are we going to use ML, machine learning AI, to help us get our data ready for machine learning AI? >> Well, that's exactly what we're doing in the IBM portfolio of data and analytics products, is we have this theme called Machine Learning Everywhere. So it actually is in almost every part of our platform. Hybrid data management uses machine learning to help do a much quicker assessment of how you bring data together and analyze it and things of that nature. We use it in the governance. In fact, we have a technology prototype that we've been working with some customers on, that will do the work for GDPR, the European Compliance Guidelines, in probably a few days to a week versus months and months and months. 'Cause we will go in and do all the entity associations for all your data. Help you organize it in a way that you can actually manage what to do with the compliance. And then, obviously, machine language is fundamental to just business analytics in general, right, pattern recognition. The traditional analytics tools will help you understand the data as it's presented, based on what you are trying to get out of it. Often, you don't know what you're trying to get out of it. Machine learning gives that data science method of actually uncovering patterns, which you can't really see. >> Peter: Creating models. >> Yeah, creating models and then you add the neuro-networks to it in deep learning. It's really literally a ladder that you're building that when you get to AI, you're going to be a lot more successful because you've built that trusted foundation underneath it. And I think Jenny was touching on that to some degree this morning. That's what we're majoring on, is that that data is really the key element of AI. >> Scott, who are the roles that you see developing this information architecture, getting ready for AI? CDO, CIO, Chief Digital Officer, where do they all fit? >> Yeah, I think it leads under the CDO. And actually both CDOs, the chief digital officer and the chief data officer, and their collection of data engineers, data stewards, things of that nature. 'Cause, again, you got to start by getting that information architecture in place. It also involves sort of a new generation of data developers that are building cloud-based data intensive applications, particularly of event-space data, which is a little bit different that customer data from sensors and all that, where you need that massive ingest speeds. It's those data-driven applications from the cloud that are really starting to incorporate machine learning. So they become really key. Then from there, if you think of it as a collaborative lifecycle, you get into the data scientists that are applying analytics. They're applying a more sophisticated version of mathematical programming and data science. Then there's a new, sort of subset of them, which are the AI developers. It's really from the data engineer right through business analysts. There's a lifecycle of people that are part of that team. They all have to work off a common platform, a common set of trusted data, to be successful. 'Cause you can no longer segment it. >> Is your strategy to build tooling that allows all of those roles to collaborate, maybe not the chief digital and chief data officer, but the data engineer, the data quality engineer, the application developer, the data scientist, right. Is that correct? >> That is absolutely correct and the CDOs. Actually, what we're announcing at the show is a new offer called IBM Cloud Private For Data. >> Dave: Right. >> So if you're familiar with IBM Cloud Private, it's our private, behind the firewall, cloud platform. We're coming out with a new offering that plugs into it. It's based on Coubanettis, so it runs on IBM Cloud Private For Data, and will run on other Coubanettis-based platforms. It is a fully integrated data and analytics platform, where no assembly is required. It will provision in minutes a pre-assembled, customized experience for you, based on what your role is. So if you're the CDO and you're the data scientist, and I'm the data engineer, we're all going to have a different set of requirements of what we want to get out of the data and what we're looking to do. It will pre-provision that for you very, very quickly. And you're all working off a common platform. It's collaborative in nature, with dynamic dashboards so you can see what's going on. It's really taking the building blocks that you need to move up that ladder and integrating to microservices in to a cloud platform that is just lightning fast in terms of, not only its ingest speeds of data but, more importantly, the ability to provision new users. So it's a major step forward in making it so much easier, so much more simple to get more out of your data and to get your data ready for AI. >> So, last question. You have this giant portfolio. We just finished our Big Data report. You guys, IBM, came up number one. Well, that was services, but still, you got a lot of software in there as well. >> Scott: Yes, we do. >> You've been working hard to pull those pieces together so the clients, it's simplify data. >> Scott: Yup. >> Okay, here's where are are, 2018, where do you want to take this thing? >> Well, I think, again, I think step one is this unified experiences. Because, again, we were kind of majoring on this conversation about the desegmentation of how people work in a business, what technology, what data they use. 'Cause with AI, it really does need to come together, right? So we're trying to do the same thing for the users, which is provision-based, almost on-demand, what you need based on what you're looking to do. And I think what's going to change as we go through time is it becomes more and more machine learning based, pattern recognition. It's more automated and customized and personalized, based on what you're trying to do. That's going to allow businesses to move at a much more rapid pace. And, again, I think the overriding theme when you look over a five year horizon is, is your data ready for AI? And that's where we're moving this whole thing. It's about the data. It's about the people and their skills. And it's the ability to move quickly. That's where the linkage with cloud comes in. >> Getting to pervasive AI, but you got to get your data house in order first. >> You got it. >> Scott Hebner, thanks very much for coming on theCUBE. >> Thank you. >> Great to see you again. >> Great meeting you. >> All right, keep right there everybody. We'll be back with our next guest. You're watching theCUBE at IBM Think 2018.