okay we're back here live ending up day one of IBM's information on demand exclusive coverage for SiliconANGLE and Wikibon and constellation research breaking down the day one analysis I'm John furrier and join my co-host E on the cube Dave vellante of course as usual and for this closing wrap up segment of day one we have analyst and founder of constellation research ray Wang former analyst big data guru software heading up the partner pavilion kicking off all the flying around the world your own event this month past month things going great how are you how are you doing we're going to great man there's a lot of energy in q3 q4 we've been watching people look at trying to spend down their budgets and I think people are just like worried that there's going to be nothing in 2014 right so they're just bending down we're seeing these big orders like tonight I've got to fly out to New York to close out a deal and help someone else that's basically it was a big day to deal that's going down this is how crazy it's going on and so it's been like this pretty much like for the last four or five weeks so flows budget flush I just wash this budget lunchtime what are you seeing for the deals out there give us some of the examples of some of the sizes and magnitude is it you know you know how are you up and run to get get some cash into secure what size scopes are you seeing up yeah i mean what we're seeing I mean it's anything from a quarter million into like five million dollar deals some of our platform we sing at all levels the one that's really hot we were talking about this that the tableau conference was the date of is right dative is is still really really hot but on the back end we're saying data quality pop-up we're seeing the integration piece play a role we also saw a little bit of content management but not the traditional content management that's coming in more about the text mining text analytics to kind of drive that I mean I'm not sure what are you guys seeing alone yeah so what we're seeing a lot of energy I've seen the budget flush we're not involved in the deals like you are Dave is but for me what I'm seeing is IT the cloud is being accepted I'll you know those has not talked about publicly is kind of a public secret is amazon is just destroying the value proposition of many folks out there with cloud they're just winning the developers hand over fist and you know i'm not sure pivotal with cloud family even catch up even OpenStack has really got some consume energy around we're following that so it opens stack yet amazon on the public cloud winning everything no money's pouring into the enterprise saying hey we got to build the infrastructure under the hood so you can't have the application edge if you don't have the engine so the 100 x price advantage and that's really a scary thing but I think softlayer gives IBM a shot here yeah we were talking about self leyva so you are seeing more I'm seeing it aight aight figure deals and big data right and it's starting to get up there so softly I'd love to get your take on soft layers we've been having a debate all day Oh softlayer jaws mckenna what do you what's your take you're saying it's a hosting I've been a look at first of all yeah I love putting a huge gap 9 million dollars per lock event data center hosting now if that's a footprint they can shave that and kind of give their customers some comfort I think that's the way i see it i mean just I haven't gone inside the numbers to see where it's going to be where this energy is but like we're software virtualization is going on where everyone's going on with virtualization the data center I'll give them a cloud play I just don't see ya didn't have one before I mean happy cloud I mean whistling private club Wow is their software involved I think it provides them with an option to actually deliver cloud services with a compression ratio on storage and a speed that they need to do to deliver mobile mobile data analytics right there's things that are there that are required so it gives them an option to be playing the cloud well I just saw I mean in the news coverage and the small inspection that we did I did was I just didn't reek of software innovation it's simply a data center large hosting big on you agree they didn't really have a northern wobblin driving him before this was brilliant on your Sun setting their previous all these chairs deal kind of musical chairs me for the music stops get something it was that kind of the deal no I think they are feel more like customers asking for something and they wanted IBM to have it yeah IBM works it's an irr play for IBM they're gonna make money on this team not a tuck under deal 900 million no I know but they'll make money on it that's IBM almost always does with it I'll leave it up to you guys to rip on I was your conference oh thanks hey constellation connecting enterprise was awesome we were at the half moon bay Ritz we had 220 folks that were there senior level individuals one of the shocking things for me was the fact that when we pulled the audience on day one two things happen that I would never imagine first thing as ninety percent of the folks downloaded our mobile app which was like awesome right so the network was with them the knowledge is with them when they leave the event and all the relationships the second thing that really shocked me we knew we had really good ratios but it was seventy-five percent of the audience that was line of business execs and twenty-five percent IT it was like we were we didn't have to preach to the choir it was amazing and the IT folks that were they were very very innovative on that end so it was awesome in that way so a lot like the mix the mix here is much more line of business execs the last week at hadoop world loose you know the t-shirt crowd right a lot of practitioners you know scoop I've flume hey we got the earth animals ever right oh but no this event is actually interesting IBM iod for me is like I didn't realize this when I didn't I looked at numbers when we're doing a partner event yesterday and there are thirteen thousand attendees here that actually makes that the biggest big data and analytics conference bigger than strata bigger than a whole bunch of other ones and so I mean this is pretty much the Nexus of what about open world big data over there but this is a big opera you see world any world cloud big data yeah hey the between no but so IBM's done a fantastic job of really transitioning this conference from sort of an eclectic swix db2 informix right I'm management routine fest right yeah and now it's like what are the business things I mean what are we trying to save around the world are they telling the story effectively it's a hard story to tell you got big data analytics cloud mobile in the middle and you got social business but then you got all this use case they have success stories if customers that creating business outcomes they telling the story effectively is it not enough speeds and fees is it too what's your take the stories are there we've seen like 122 case studies from the business partner side we just haven't seen them percolate out and I think they've got to do a better job evangelizing stories but what's interesting is like there's that remember we talked about this data to decision level there's that data level that was IBM right here's the database here's the structure here's the content management here's the unstructured stuff this is where it sets then there was that information management level which that they started to do which is really about cleaning the data connecting that data connecting to upstream and downstream systems getting into CRM and payroll and then they got to this level about insights which was all the Cognos stuff right so they've been building up the stat from data decisions so they got data information information to insight and then we're getting to this decision-making level which they haven't made a lot of the assets or acquisitions there but that's the predictive analytics that's the cognitive computing you can see how they're wrapping around there I mean there's a lot of vendors to buy there's a lot of opportunity out there's a lot to connect and they've been working on it for a while but I guess I got to ask you how they doing what's your report card from last year this year better better storytelling better messaging I think the stories are getting better but we're seeing them in more deals now right before we'd see a lot more SI p traditional SI p oracle you know kind of competes and a little bit of IBM Cognos now we're seeing them in a lot of end-to-end deals and what we're talking about it's not like I T deals these are line of business folks that say look I really need to change my shopping experience what do you guys have we see other things like you know the fraud examples that any was talking about those are hilarious I mean those are real I see em in every place right I mean even with Obamacare right there's gonna be massive amounts of fraud there any places that people going to want to go in and figure out how to connect or correct those kind of things yeah so so seeing the use cases emerge yeah and in particular me last week in a dupe world it was financial services you're talking risk you talk a marketing you're talking fraud protection to forecasting yep the big three and then underneath that is predicted predictive analytics so you know that's all sort of interesting what's your take on on Amazon these days you know they are crushing it on so many different unbelievable right on more billion this year maybe it's when you build a whole company which is basically on the premise of hey let's get people to offset our cost structure from November 15th to january first I mean it's pretty amazing what you can do it's like everyone's covering for it and even more funny it's like they're doing in the physical world with distribution centers I know if we talked about this before but what's really interesting is they've got last mile delivery UPS FedEx DHL can't cat can't handle their capacity so now the ability from digital to physical goods they've got that and beezus goes out and buys the post so he can make the post for example a national paper overnight again he can do home delivery things that they couldn't do before they can take digital ads bring that back in and so basically what they're doing on the cloud side they're also doing on the physical distribution side amazing isn't it they're almost the pushing towards sunday delivery right US Postal Service go into five day deliveries sort of the different directions amazon I'm Amazon's going to be the postal service by the time they're done we're all going to subsidize it so so I gotta get you take on the the Oracle early statement Larry Ellison said were the iphone for the data center that's his metaphor a couple of couple or global enrolls ago now you got open stack and though we kind of laugh at that but but amazon is like the iPhone you know it's disruptive its new its emerging like Apple was reading out of the ashes with Steve Jobs Oracle I think trying to shoehorn in an iphone positioning but if OpenStack if everyone's open and you got amazon here there is a plausible strategy scenario that says hey these guys can continue to to put the naysayers at the side of the road as they march forward to the enterprise and be the iphone they've turned the data center into an API so so we got the date as their lock in right so this sim lock in Apple has lock in so is that lock in what's your take of that scenario you think it's video in the open ecosystem world they're all false open because a walk-in also applies but but you've been even to this for a long time right and probably one of the things that you're seeing is that it's not about open versus closed it's about ubiquity right Microsoft was a closed evil empire back ten years ago now it's like oh the standard right it's like ok they're harmless Google was like open and now they're the evil empire right it just depends on the perception and the really is ubiquity Amazon's got ubiquity on it so i did is pushing their winning the developers the winning the developers they got the ecosystem they got ubiquity they've got a cost structure I mean I don't know what else could go wrong I think they could get s la's maybe and once that had I don't know what is Amazon's blind spot I mean s la's I think well a lumpy performance no one wants lumpy right they want the big Dayton who's got ever who's got better public as public cloud SL is denied well I think about what he just said us everybody no but here's think that's a public road statement not an amazon said let's crunch big data computation December fifteenth you tell me what this is all I want to know well I think I think an easy move is I mean this day you've got to do that on premise I just I just don't I just don't think that people are forecasting amazon the enterprise properly and you just set out the Washington Post that is a left-field move we can now look back and say okay I said makes sense amazon can continue to commoditize and disrupt and be innovative then shift and having some sort of on prem playing oh then it's over right then and then gets the stir days surrounded the castle but they really don't have a great arm tremblay have no on print but they could they could get one good I think they want to see well think they want to but I think with them what they figured out was let's go build some cool public service get everyone else to subsidize our main offerings right it's basically ultimate shared service everyone's subsidizing Amazon's destruction of their business right so if you're Macy is why the heck are you on amazon right you know if you're competing with them why the heck are you on Amazon you're basically digging your own grave I'm paying them to do it it's amazing I mean that's that's the brilliance of this goes invade they brag about it yeah digging your own brave like it's a you know put the compute power is great okay great but you're subsidizing Amazon's for the you know compute power so r a great shot great to have you here congratulations on your event constellation research awesome successful venues ahead last month top folks in you're doing a great job with your company and the end the day out today in the last word tell the folks what's happening with IBM what do you expect to hear from them tomorrow I know you're going to be another thing you had to fly to but what does IBM what's a trajectory coming out of the show for IBM what's your analysis I think the executives have figured out that the important audience here is really the line of business leaders and to figure out how to do couple things one democratize decision-making the second thing figure out how they can actually make it easy to consume IBM at different entry points and I think the third thing is really how can we focus on improving data visualization graphics I think you'll see something about that ray Wang on the cube cube alumni tech athlete entrepreneur new for his new firm not new anymore it's a couple years on his belt doing a great job but three years old congratulations we'll be back day two tomorrow stay with us here exclusive coverage of IBM information I'm John prairie with Dave vellante this is the cube will see you tomorrow the queue

okay we're back live here inside the cube rounding out day one of exclusive coverage of IBM information on demand I'm John further the founder SiliconANGLE enjoy my co-host Davey lonte we're here in heat you saw who's the vice president I said that speaks that you know I think you always get promoted you've been on the cube so many times you doing so well it's all your reason tatian was so amazing I always liked SVP the cute good things happen that's exactly why i be MVP is a big deal unlike some of the starters where everyone gets EVP all these other titles but welcome back thank you so the storytelling has been phenomenal here although murs a little bit critical some of the presentations earlier from gardner but the stories higher your IBM just from last year take us through what's changed from iod last year to this year the story has gotten tighter yes comprehensive give us the quick okay quick view um okay here's the point of view here's the point of view first you got to invest in a platform which we've all talked about and i will tell you it's not just us saying it i would say other vendors are now copying what we're saying cuz if you went to strata yes which you were there we were there probably heard some of the messages that's right why everybody wants to be a platform okay one two elevated risk uncertainty governance I think privacy privacy security risk this is what people are talking about they want to invest in a more why because you know what the decisions matter they want to make bigger beds they want to do more things around customer experience they want to improve products they want to improve pricing the third area is really a cultural statement like applying analytics in the organization because the people and the skills I would say the culture conversation is happening a lot more this year than it was a year ago not just at IOD but in the industry so I think what you're seeing here at IOD is actually a reflection of what the conversations are happening so our organizations culturally ready for this I mean you guys are going to say yes and everybody comes on says oh yes we're seeing it all over the place but are they really ready it depends I think some are some are absolutely ready some are not and probably the best examples are and it really depends on the industry so I'll give you a few examples so in the government area I think people see the power of applying things like real-time contextual insight leveraging stream computing why because national security matters a lot of fraudulent activity because that's measurable you can drive revenue or savings healthcare people know that a lot of decision-making is being made without a comprehensive view of the analytics and the data now the other area that's interesting is most people like to talk about text analytics unstructured data a lot of social media data but the bulk of the data that's actually being used currently in terms of big data analytics is really transactional data why because that's what's maintained in most operational systems where health systems so you're going to see a lot more data warehouse augmentation use cases leverage you can do on the front end or the back end you're going to see kind of more in terms of comprehensive view of the customer right augmenting like an existing customer loyalty or segmentation data with additional let's say activity data that they're interacting with and that was the usta kind of demo showing social data cell phone metadata is that considered transactional you know it is well call me to record right CDR call detail records well the real time is important to you mentioned the US open just for folks out there was a demo on stage when you guys open data yeah at all the trend sentiment data the social data but that's people's thoughts right so you can see what people are doing now that's big yeah you know what's amazing about that just one second which is what we were doing was we were predicting it based on the past but then we were modifying it based on real time activity and conversation so let's say something hot happened and all of a sudden it was interesting when Brian told me this he was like oh yeah Serena's average Twitter score was like 2,200 twit tweets a day and then if some activity were to happen let's say I don't know she didn't he wrote she had got into a romance or let's say she decided to launch a new product then all of a sudden you'd see an accused spike rate in activity social activity that would then predict how they wanted to operate that environment that's amazing and you know we you know we love daily seen our our crowd spots be finder we have the new crowd chat one and this idea of connecting consumers is loose data it's ephemeral data it's transient data but it's now capture will so people can have a have fun into tennis tournament and then it's over they go back home to work you still have that metadata we do that's very kind of its transient and ephemeral that's value so you know Merv was saying also that your groups doing a lot of value creation let's talk about that for a second business outcomes what do you what's the top conversation when you walk into a customer that says hey you know here's point a point B B's my outcome mm-hmm one of those conversations like I mean what are they what are some of the outcomes you just talked to use case you tell customers but like what did some of the exact you know what I'll tell you one use case so and this was actually in the healthcare hotel you won healthcare use case in one financial services use case both conversations happened actually in the last two weeks so in the healthcare use case there's already let's say a model that's happening for this particular hospital now they have a workflow process typically in a workflow process you you're applying capabilities where you've modeled out your steps right you do a before be before see and you automate this leveraging BPM type capabilities in a data context you don't actually start necessarily with knowing what the workflow is you kind of let the data determine what the workflow should be so in the this was in an ICU arena historically if you wanted to decide who was the healthiest of the patients in the ICU because you had another trauma coming in there was a workflow that said you had to go check the nurses the patient's profile and say who gets kicked out of what bed or moved because they're most likely to be in a healthy state that's a predefined workflow but if you're applying streams for example all the sudden you could have real-time visibility without necessarily a nurse calling a doctor who that calls the local staff who then calls the cleaning crew rate you could actually have a dashboard that says with eighty percent confidence beds2 and ate those patients because of the following conditions could be the ones that you are proactive in and saying oh you know what not only can they be released but we have this degree of confidence around them being because of the days that it's coming obvious information that changes then potentially you know the way your kind of setting your rules and policies around your workflow another example which was really a government use case was think about in government security so in security scenarios and national security state there is you never quite know exactly what people are intended to do other than you know they're intending something bad right and they're intentionally trying not to be found so human trafficking it's an ugly topic but I want to bring it up for a second here what you're doing is you're actually looking at data compositions and and different patterns and resolving entities and based on that that will dictate kind of potentially a whole new flow or a treatment or remediation or activity or savior which is not the predefined workflow it's you're letting the data actually all of a sudden connect to other data points that then you're arriving at the insight to take the action where is completely different I wanna go back to sleep RFI course not healthcare examples yeah so where are we today is that something that's actually being implemented is that something they sort of a proof of concept well that's actually being done at it's being done in a couple different hospitals one of which is actually in hospital in Canada and then we're also leveraging streams in the emory university intensive Timothy Buckman on you did earlier oh yeah the ICU of the future right absolutely brilliant trafficking example brings up you know Ashley that's the underbelly of the world in society but like data condition to Jeff Jonas been on the queue as you know many times and he talks with his puzzle pieces in a way that the data is traveling on a network a network that's distributed essentially that's network computing I mean estate management so look at network management you can look at patterns right so so that's an interesting example so that begs the next question what is the craziest most interesting use case you seen oh my gosh okay now i got i think about oh yes and you can talk about and i can talk about that creates business value or society value oh you know I okay um for you are putting me on the spot the craziest one so 3 we could be great could be g-rated don't you know they go to 2k yeah you know what I participated three weeks ago tiaa-cref actually hosted a fraud summit where it was all investigators like they were doing crime investigation so more than sixty percent of the guys in the room carried weapons because they were Security Intelligence they were pleased they were DA's they repented I was not packing anyway and there was about so 60-plus percent were those right and then only about thirty percent in the room were what i would consider the data scientists in the room like these are the guys are trying to decide which claims are not true or false so forth there were at least like three or four use cases in that discussion that came out they were unbelievable so one is in the fraud area in particular and in crime they're luring the data there what does luring the data they're taking location-based data for geographic region they're putting crime data on top of that right historical like drug rings and even like datasets in miami-dade county the DA told me they were doing things where rather than looking at people that are doing the drugs they they realize people that had possession of a drug typically purchased within a certain location and they had these abandoned properties and were able to identify entire rings based on that another one this is also semi drug-related is in the energy utility space there was in the middle part of the United States houses in Nice urban areas where they were completely torn apart on the interior and build into marijuana houses and so of course they're utilizing high levels of gas and electricity in order to maintain the water fertilization everything else well what happens is it drives peaks in the way that the energy utility looks on a given day pattern so based on that they're able to detect how inappropriate activities are happening and whether it's a single opportunistic type activity whether it's saying this was doing laundry or irrigating the Erie hey we well you know what's interesting about electricity to is especially someone's using electricity but no one's like using any of the gas you're like home but no one's cooking you know something's a little long but it was fascinating i mean really fascinating there were like several other crime scenarios in terms of speed i actually did not know the US Postal Service is like the longest running federal institution that actually tracked like mail fraud and one of the use cases i'm sure jeff has talked about here on the cube is probably a moneygram use case but we talked about that we talked I mean it the stories were unreal because I was spending time with forensic scientists as well as forensic investigators and that's a completely do we're getting we're getting the few minutes need for a platform to handle all this diversity so that's the security risk the governance everything you gotta go cuz your star for the analyst me I can't watch this conversation one final question one of the best yet as we get drugs in there we got other things packing guns guns and drugs you in traffic you know tobacco if you go / news / tobacco well write the knowledge worker all right final question for I know you gotta go this big data applications were you know the guys in the mailroom the guys work for the post office are now unable to actually do this kind of high-level kind of date basically data science yeah if you will or being an analyst so that what I want you to share the folks your vision of the definition of the knowledge worker overused word that's been kicked around for the PC generates but now with handheld with analytical real-time with streaming all this stuff happening at the edge how is it going to change that the knowledge work or the person in the trenches it could be person the cubicle the person on the go the mobile sales person or anyone you know I some people feel threatened when they hear that you're going to apply data and analytics everywhere because you're it implies that you're automating things but that's actually not the value the real value is the insight so that you can double down on the decisions you want to make so if you're more confident you're going to take bigger bets right and decision-making historically has been I think reserved for a very elite few and what we're talking about now is a democratization of that insight and with that comes a lot of empowerment a lot empowerment for everyone and you don't have to be a data scientist be able to be able to make decisions and inform decisions if anything you know actually Tim Buckman I had a good conversation about them as a professional you know what I if I was a physician I'd want to work at the hospital that has the advanced capabilities why because it allows me as a professional physician to then be able to do what I was trained to do not to detect and have to pay attention to all these alarms going off you know I want to work at the institutions and organizations that are investing appropriately because it pushes the caliber of the work I get to do so I think it just changes the dynamics for everyone tim was like a high-priced logistics manager you want to work with people want to work with leaders and now we're in a modern era this new wave is upon us who care and they want to improve and this is about continuing to improve Dave and I always talk about the open source world that those principles are going mainstream to every aspect of business collaboration openness transparency not controlled absolutely absolutely Indy thanks so much for coming in the queue and know you're busy think of your time we are here live in the cube getting all the signal from the noise and some good commentary at the end a one we have one more guest ray way right up next stay tuned right back the queue