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

(pulsating music) >> Live from Fisherman's Wharf in San Francisco, it's theCUBE! Covering IBM Chief Data Officer Strategy Summit, Spring 2017. Brought to you by IBM. >> Hey, welcome back everybody. Jeff Frick here with theCUBE. We're at Fisherman's Wharf in San Francisco at the IBM Chief Data Officer Strategy Summit, Spring 2017. It's a mouthful, it's a great event, and it's one of many CDO summits that IBM's putting in around the country, and soon around the world. So check it out. We're happy to be here and really talk to some of the thought leaders about getting into the nitty gritty detail of strategy and execution. So we're excited to be joined by our next guest, Rebecca Shockley. She's an Analytics Global Research Leader for the IBM Institute for Business Value. Welcome, Rebecca. I didn't know about the IBM Institute for Business Value. >> Thank you. >> Absolutely. And Priya V. She said Priya V's good, so you can see the whole name on the bottom, but Priya V. is the CTO of Cognitive/IOT/Watson Health at IBM. Welcome, Priya. >> Thank you. >> So first off, just impressions of the conference? It's been going on all day today. You've got 170 or some-odd CDO's here sharing best practices, listening to the sessions. Any surprising takeaways coming out of any of the sessions you've been at so far? >> On a daily basis I live and breathe data. That's what I help our customers to get better at it, and today is the day where we get to talk about how can we adopt something which is emerging in that space? We talk about data governance, what we need to look at in that space, and cognitive as being the fabric that we are integrating into this data governance actually. It's a great day, and I'm happy to talk to over, like you said, 170 CDO's representing different verticals. >> Excellent. And Rebecca, you do a lot of core research that feeds a lot of the statistics that we've seen on the keynote slides, this and that. And one of the interesting things we talked about off air, was really you guys are coming up with a playbook which is really to help CDO's basically execute and be successful CDO's. Can you tell us about the playbook? >> Well, the playbook was born out of a Gartner statistic that came out I guess two or three years ago that said by 2016 you'll have 90% of organizations will have a CDO and 50% of them will fail. And we didn't think that was very optimistic. >> Jeff: 90% will have them and 50% will fail? >> Yes, and so I can tell you that based on our survey of 6,000 global executives last fall, the number is at 41% in 2016. And I'm hoping that the playbook kept them from being a failure. So what we did with the playbook is basically laid out the six key questions that an organization needs to think about as they're either putting in a CDO office or revamping their CDO offices. Because Gartner wasn't completely unfounded in thinking a lot of CDO offices weren't doing well when they made that prediction. Because it is very difficult to put in place, mostly because of culture change, right? It's a very different kind of way to think. So, but we're certainly not seeing the turnover we were in the early years of CDO's or hopefully the failure rate that Gartner predicted. >> So what are the top two or three of those six that they need to be thinking about? >> So they need to think about their objectives. And one of the things that we found was that when we look at CDO's, there's three different categories that you can really put them in. A data integrator, so is the CDO primarily focused on getting the data together, getting the quality of the data, really bringing the organization up to speed. The next thing that most organizations look at is being a business optimizer. So can they use that data to optimize their internal processes or their external relationships? And then the third category is market innovator. Can they use that data to really innovate, bring in new business models, new data monetization strategies, things like that. The biggest problem we found is that CDO's that we surveyed, and we surveyed 800 CDO's, we're seeing that they're being assessed on all three of those things, and it's hard to do all three at once, largely because if you're still having to focus on getting your data in a place where you can start doing real science against it you're probably not going to be full-time market innovator either. You can't be full-time in two different places. That's not to say as a data integrator you can't bring in data scientists, do some skunk works on some of the early work, find... and we've seen organizations really, like Bank Itau down in Brazil, really in that early stages still come up with some very innovative things to do, but that's more of a one-off, right. If you're being judged on all three of those, that I think is where the failure rate comes in. >> But it sounds like those are kind of sequential, but you can't operate them sequentially cause in theory you never finish the first phase, right? >> You never finish, you're always keeping up with the data. But for some organizations, they really need to, they're still operating with very dirty, very siloed data that you really can't bring together for analytics. Now once you're able to look at that data, you can be doing the other two, optimizing and innovating, at the same time. But your primary focus has to be on getting the data straight. Once you've got a functioning data ecosystem, then the level of attention that you have to put there is going to go down, and you can start working on, focusing on innovation and optimization more as your full-time role. But no, data integrator never goes away completely. >> And cleanser. Then, that's a great strategy. Then, as you said, then the rubber's got to hit the road. And Priya, that's where you play in, the execution point. Like you say, you like to get your hands dirty with the CDO's. So what are you seeing from your point of view? In terms of actually executing, finding early wins, easy paths to success, you know, how to get those early wins basically, right? To validate what you're doing. That's right. Like you said, it's become a universal fact that data governance and things, everything around consolidating data and the value of insights we get off it, that's been established fact. Now CDO's and the rest of the organization, the CIO's and the CTO's, have this mandate to start executing on them. And how do we go about it? That's part of my job at IBM as well. As a CTO, I work with our customers to identify where are the dominant business value? Where are those things which is completely data-driven? Maybe it is cognitive forecasting, or your business requirement could be how can I maximize 40% of my service channel? Which in the end of the day could be a cognitive-enabled data-driven virtual assistant, which is automating and bringing a TCO of huge incredible value. Those are some of the key execution elements we are trying to bring. But like we said, yes, we have to bring in the data, we have to hire the right talent, and we have to have a strategy. All those great things happen. But I always start with a problem, a problem which actually anchors everything together. A problem is a business problem which demonstrates key business values, so we actually know what we are trying to solve, and work backwards in terms of what is the data element to it, what are the technologies and toolkits that we can put on top of it, and who are the right people that we can involve in parallel with the strategy that we have already established. So that's the way we've been going about. We have seen phenomenal successes, huge results, which has been transformative in nature and not just these 170 CDO's. I mean, we want to make sure every one of our customers is able to take advantage of that. >> But it's not just the CDO, it's the entire business. So the IBM Institute on Business Value looks at an enormous amount of research, or does an enormous amount of research and looks at a lot of different issues. So for example, your CDO report is phenomenal, I think you do one for the CMO, a number of different chief officers. How are other functions or other roles within business starting to acculturate to this notion of data as a driver of new behaviors? And then we can talk about, what are some of those new behaviors? The degree to which the leadership is ready to drive that? >> I think the executive suite is really starting to embrace data much more than it has in the past. Primarily because of the digitization of everything, right. Before, the amount of data that you had was somewhat limited. Often it was internal data, and the quality was suspect. As we started digitizing all the business processes and being able to bring in an enormous amount of external data, I think organizationally executives are getting much more comfortable with the ability to use that data to further their goals within the organization. >> So in general, the chief groups are starting to look at data as a way of doing things differently. >> Absolutely. >> And how is that translating into then doing things differently? >> Yeah, so I was just at the session where we talked about how organizations and business units are even coming together because of data governance and the data itself. Because they are having federated units where a certain part of business is enabled and having new insights because we are actually doing these things. And new businesses like monetizing data is something which is happening now. Data as a service. Actually having data as a platform where people can build new applications. I mean the whole new segment of people as data engineers, full stack developers, and data scientists actually. I mean, they are incubated and they end up building lots of new applications which has never been part of a typical business unit. So these are the cultural and the business changes we are starting to see in many organizations actually. Some of them are leading the way because they just did it without knowing actually that's the way they should be doing it. But that's how it influences many organizations. >> I think you were looking for kind of an example as well, so in the keynote this morning one of the gentlemen was talking about working with their CFO, their risk and compliance office, and were able to take the ability to identify a threat within their ecosystem from two days down to three milliseconds. So that's what can happen once you really start being able to utilize the data that's available to an organization much more effectively, is that kind of quantum leap change in being able to understand what's happening in the marketplace, bing able to understand what's happening with consumers or customers or clients, whichever flavor you have, and we see that throughout the organization. So it's not just the CFO, but the CMO, and being able to do much more targeted, much more focused on the consumer side or the client customer side, that's better for me, right. And the marketing teams are seeing 30, 40% increase in their ability to execute campaigns because they're more data-driven now. >> So has the bit flipped where the business units are now coming to the CDO's office and pounding on the door, saying "I need my team"? As opposed to trying to coerce that you no longer use intuition? >> So it depends upon where you are, where the company is. Because what we call that is the snowball effect. It's one of the reasons you have to have the governance in place and get things going kind of in parallel. Because what we see is that most organizations go in skeptically. They're used to running on their gut instinct. That's how they got their jobs mostly, right? They had good instincts, they made good decisions, they got promoted. And so making that transition to being a data-driven organization can be very difficult. What we find though, is that once one section, one segment, one flavor, one good campaign happens, as soon as those results start to mount up in the organization, you start to see a snowball effect. And what I was hearing particularly last year when I was talking to CDO's was that it had taken them so long to get started, but now they had so much demand coming from the business that they want to look at this, and they want to look at that, and they want to look at the other thing, because once you have results, everybody else in the organization wants those same kind of results. >> Just to add to that, data is not anymore viewed as a commodity. If you have seen valuable organizations who know what their asset is, it's not just a commodity. So the parity of... >> Peter: Or even a liability is what it used to be, right? >> Exactly. >> Peter: It's expensive to hold it and store it, and keep track of it. >> Exactly. So the parity of this is very different right now. So people are talking about, how can I take advantage of the intelligence? So business units, they don't come and pound the door rather they are trying to see what data that I can have, or what intelligence that I can have to make my business different shade, or I can value add something more. That's a type of... So I feel based on the experiences that we work with our customers, it's bringing organizations together. And for certain times, yes sometimes the smartness and the best practices come in place that how we can avoid some of the common mistakes that we do, in terms of replicating 800 times or not knowing who else is using. So some of the tools and techniques help us to master those things. It is bringing organizations and leveraging the intelligence that what you find might be useful to her, and what she finds might be useful. Or what we all don't know, that we go figure it out where we can get it. >> So what's the next step in the journey to increase the democratization of the utilization of that data? Because obviously Chief Data Officers, there aren't that many of them, their teams are relatively small. >> Well, 41% of businesses, so there's a large number of them out there. >> Yeah, but these are huge companies with a whole bunch of business units that have tremendous opportunity to optimize around things that they haven't done yet. So how do we continue to kind of move this democratization of both the access and the tools and the utilization of the insights that they're all sitting on? >> I have some bolder expectations on this, because data and the way in which data becomes an asset, not anymore a liability, actually folds up many of the layers of applications that we have. I used to come from an enterprise background in the past. We had layers of application programming which just used data as one single layer. In terms of opportunities for this, there is a lot more deserving silos and deserving layers of IT in a typical organization. When we build data-driven applications, this is all going to change. It's fascinating. This role is in the front and center of everything actually, around data-driven. And you also heard enough about cognitive computing these days, because it is the key ingredient for cognitive computing. We talked about full ease of cognitive computing. It has to start first learning, and data is the first step in terms of learning. And then it goes into process re-engineering, and then you reinvent things and you disrupt things and you bring new experiences or humanize your solution. So it's on a great trajectory. It's going tochange the way we do things. It's going to give new and unexpected things both from a consumer point and from an enterprise point as well. It'll bring effects like consumerization of enterprises and what-not. So I have bolder and broader expectations out of this fascinating data world. >> I think one of the things that made people hesitant before was an unfamiliarity with thinking about using data, say a CSR on the front line using data instead of the scripts he or she had been given, or their own experience. And I think what we're seeing now is A, everybody's personal life is much more digital than it was before, therefore everybody's somewhat more comfortable with interacting. And B, once you start to see those results and they realize that they can move from having to crunch numbers and do all the background work once we can automate that through robotic process automation or cognitive process automation, and let them focus on the more interesting, higher value parts of their job, we've seen that greatly impact the culture change. The culture change question comes whether people are thinking they're going to lose their job because of the data, or whether it's going to let them do more interesting things with their jobs. And I think hopefully we're getting past that "it's me or it" stage, into the, how can I use data to augment the work that I'm doing, and get more personal satisfaction, if not business satisfaction, out of the work that I'm doing. Hopefully getting rid of some of the mundane. >> I think there's also going to be a lot of software that's created that's going to be created in different ways and have different impacts. The reality is, we're creating data incredibly fast. We know that is has enormous value. People are not going to change that rapidly. New types of algorithms are coming on, but many of the algorithms are algorithms we've had for years, so in many respects it's how we render all of that in some of the new software that's not driven by process but driven by data. >> And the beauty of it is this software will be invisible. It will be self-healing, regeneratable software. >> Invisible to some, but very very highly visible to others. I think that's one of the big challenges that IT organizations face, and businesses face. Is how do they think through that new software? So you talked about today, or historically, you talked about your application stack, where you have stacks which would have some little view of the data, and in many respects we need to free that data up, remove it out of the application so we can do new things with it. So how is that process going to either be facilitated, or impeded by the fact that in so many organizations, data is regarded as a commodity, something that's disposable. Do we need to become more explicit in articulating or talking about what it means to think of data as an asset, as something that's valuable? What do you think? >> Yeah, so in the typical application world, when we start, if you really look at it, data comes at the very end of it. Because people start designing what is going to be their mockups, where are they going to integrate with what sources, am I talking to the bank as an API, et cetera. So the data representation comes at the very end. In the current generation of applications, the cognitive applications that we are building, first we start with the data. We understand what are we working on, and we start applying, taking advantage of machines and all these algorithms which existed like you said, many many decades ago. And we take advantage of machines to automate them to get the intelligence, and then we write applications. So you see the order has changed actually. It's a complete reversal. Yes we had typical three-tier, four-tier architecture. But the order of how we perceive and understand the problem is different. But we are very confident. We are trying to maximize 40% of your sales. We are trying to create digital connected dashboards for your CFO where the entire board can make decisions on the fly. So we know the business outcome, but we are starting with the data. So the fundamental change in how software is built, and all these modules of software which you are talking about, why I mentioned invisible, is some are generatable. The AI and cognitive is advanced in such a way that some are generatable. If it understands the data underlying, it can generate what it should do with the data. That's what we are teaching. That's what ontology and all this is about. So that's why I said it's limitless, it's pretty bold, and it's going to change the way we have done things in the past. And like she said, it's only going to complement humans, because we are always better decision-makers, but we need so much of cognitive capability to aid and supplement our decision-making. So that's going to be the way that we run our businesses. >> All right. Priya's painting a pretty picture. I like it. You know, some people see only the dark side. That's clearly the bright side. That's a terrific story, so thank you. So Priya and Rebecca, thanks for taking a few minutes. Hope you enjoy the rest of the show, surrounded by all this big brain power. And I appreciate you stopping by. >> Thanks so much. >> Thank you. >> All right. Jeff Frick and Peter Burris. You're watching theCUBE from the IBM Chief Data Officers Summit, Spring 2017. We'll be right back after this short break. Thanks for watching. (drums pound) (hands clap rhythmically) >> [Computerized Voice] You really crushed it. (quiet synthesizer music) >> My name is Dave Vellante, and I'm a long-time industry analyst. I was at IDC for a number of years and ran the company's largest and most profitable business. I focused on a lot of areas, infrastructure, software, organizations, the CIO community. Cut my teeth there.