>> Live from San Francisco. It's the cube covering IBM thing twenty nineteen brought to you by IBM. >> Welcome back to Mosconi North here in San Francisco, California. I'm student of my co host, A Volante. We're in day three of four days live. Walter. Wall coverage here at IBM think happened. Welcome back to the program. Talk about one of our favorite topics. Cube alarm. Steve Hill, who's the global head of innovation. That topic I mentioned from KPMG, Steve, welcome back to the program. >> Seems to have made good to see you. >> All right. So, you know, we know that the the only constant in our industry is change. And, you know, it's one of those things. You know, I look at my career, it's like innovation. Is it a buzz word? You know? Has innovation stalled out of the industry? But you know, you're living it. You you're you're swimming in it. Talkinto a lot of people on it. KPMG has lots of tools, so give us the update from from last year. >> Well, I think you know, we talked about several things last year, but innovation was a key theme. And and when I would share with you, is that I think across all industries, innovation as a capability has become more mature and more accepted, still not widely adopted across all industries and all competitors and all kinds of companies. But the reality is, innovation used to be kind of one person's job off in the closet today. I think a lot of organizations or realizing you have to have corporate muscle that is as engaged as in changing the status quo as the production muscle is in maintaining the status quo has >> become a cultural. >> It's become part of culture, and so I think innovation really is part of the evolution of corporate governance as far as I'm >> concerned. What one thing I worry about a little bit is, you know, I see a company like IBM. They have a long history of research that throws off innovation over the years. You know, I grew up, you know, in the backyard of Bell Labs and think about the innovation a drove today, the culture you know, faster, faster, faster and sometimes innovation. He does sit back. I need to be able to think longer, You know? How does how does an innovation culture fit into the ever changing, fast paced you? No need to deliver ninety day shot clock of reality of today. >> Well, I think innovation has to be smart, meaning you have to be able to feed the engines of growth. So your horizon one, if you will, of investments and your attention and efforts have to pay off the short term. But you also can't be strategically stupid and build yourself into an alleyway or to our corner, because you're just too short term thought through. Right? So you need to have a portfolio of what we call Horizon three blended with Horizon one and Horizon two types investment. So your short term, your middle term and your longer term needs are being met. Of course, if you think about it like a portfolio of investments, you're going tohave. Probably a smaller number of investments that air further out, more experimental and a larger proportion of them going to be helping you grow. You could say, almost tactically or sort of adjacent to where you are today, incrementally. But some of those disruptive things that you work on an H three could actually change your industry. Maybe you think about today where we are. Azan Economy intangibles are starting to creep into this notion of value ways we've never seen before. Today, the top five companies in terms of net worth all fundamentally rely on intangibles for their worth. Five years ago, it was one or two, and I would argue that the notion of intangibles, particularly data we'll drive a lot of very transformative types of investments for organizations going forward. So you've got to be careful not to starve a lot of those longer term investments, >> right? And it's almost become bromide. Large companies can innovate, but those five companies just mentioned well alluded to Amazon. Google, etcetera Facebook of Apple, Microsoft there, innovators, right? So absolutely and large companies innovate. >> Yes, clearly, yeah, but you have to have muscle, but it doesn't happen by accident, and you do put discipline and process and rigor and tools and leadership around innovation. But it's a different kind of discipline than you need in the operation, so I'll make him a ratio that makes sense. Maybe ninety five percent production, five percent innovation in an organization. That innovation engine is always challenging that ninety five percent Are you good enough? Are you relevant enough? Are you fast enough? Are you agile enough? You need that in every corporate organization in terms of governance to stay healthy and relevant overtime. >> So it's interesting. You know, I was in a session that Jack Welch talk wants, and he's like, I hear big companies can innovate is like big companies made up of people. People are the things that can innovate absolute. But, you know, I've worked in large organizations. We understand that the fossilization process and the goto market that you have, you know, will often kill, you know, those new flowers that are blooming, what separates the people that can drive innovation on DH? You know, put those positive place and kind of the also rans that, you know get left behind window disruption. >> Well, there's several. There's a couple things that I would highlight of a longer list, one of them we culture. I mean, I think innovation has been part of a culture. People in the institution have value innovation and want to be part of it. And there is, you know, a role that everyone can play. Just because you're in operations, if you will, doesn't mean you ignore change or you ignore the opportunity to improve the status quo. But you still have you get paid to operate what I find that is related to culture that gets a lot of people, you know, slow down or or roadblock is the disconnect between the operating part of the business and the innovative part of the business. If you try, if you build them to separately, what happens is you have a disconnection. And if you innovate the best idea in the world over here. But you can't scale it with production, you lose. So you have to make sure that, as as a leader overall, the entire enterprise you build those connections, rotations, leadership, You know, How do you engage the production, you know, engine into the innovation engine? It's to be very collaborative. It should be seamless. You know, everyone likes to say that, but that word, but relative seamlessness is, is heavy architecture. You've gotto build that, you know, collaboration into your model of of how you innovate >> and >> don't innovate in the vacuum. >> And it comes back to the cultural aspects we're talking about. Do you mentioned the ninety day shot? Clocks were here in the Bay Area. Silicon Valley. The most innovative place in the world. They've lived along the ninety day shot clock forever, and it seems to have not heard that so called short term thinking. Why is that? >> Well, there's so much start up here. I mean, at the end of the day, there is so much churn of new thinking and start up in V C. And there's so much activity that it's almost a microcosm, right? Not every place in the world smells, feels, looks like Silicon Valley, right? And the reason for it is in part because there's just so much innovation in what happens here. And these things change me. If you think about, uh, these unicorns that we have today. Today there's about three hundred ninety one unicorns. Just five years ago, there were one hundred sixty globally on before that. Hardly people didn't know they were hardly recognized. But that's all coming from pockets of innovation like Silicon Valley. So I'd argue that what you have here is an interesting amalgamation of culture being part of a macro environment region that that really rewards innovation and demonstrates that in in market valuations in capital raises, I mean, today one hundred million dollars capital raise is pretty common, especially for unicorns. Five, ten years ago. You never see me. It was very difficult to get a hundred million dollars capital, right? >> You mean you're seeing billion dollar companies do half a billion dollars raises today? I mean, it's >> all day, right? And some of them don't make a profit. Which is I mean, and that's kind of the irony, Which is, Are those companies? What did they get that the rest of us, you know, there was that live on Wall Street right out of in New York. What do we not see? Is that some secret that downstream there will be some massive inflow? Hard to say. I mean, look at Amazon is an example. They've used an intangible to take industries out that they were never in before they started selling books, and they leverage customer behavior data to move into other spaces. And this is kind of the intangible dynamic. And the infection >> data was the fuel for the digital disruption to travel around the world. You see that folks outside of Silicon Valley are really sort of maybe creating new innovation recipes? >> Yes. I think that what you see here is starting to go viral right on DH way that KPMG likes to share a holistic way to look at this for our clients. What is what we call the twenty first century enterprise. So the things that we used to do in the twentieth century to be successful, hire people, build more machines, right? You know, buy more assets, hard, durable assets. Those things don't necessarily give you the recipe for success in the twenty first century. And if you look at that and you think about the intangibles work that's been well written about there's there's all kinds of press on this today. You'll start to realize that the recipe for success in this new century is different, and you can't look at it in a silo to say, Okay, so I've gotta change my department or I've got a I've got to go change, You know, my widgets. What you've got to think is that your entire enterprise and so are construct called the twenty first Century prize. Looks at four things. Actually, it's five, and the fifth one is the technologies to enable change in the other four. And those technologies we talk about here and I have made him think which are, you know, cloud data, smart computers or a blockchain, etcetera. But those four pillars our first customer. How do you think about your customer experience today? How do you rethink your customer experience tomorrow? I think the customer dynamic, whether it's generational or it's technologically driven, change is happening more rapidly today than ever. And looking at that front office and the customer dementia, it is really important. The second is looking at your acid base. The value of your assets are changing, and intangibles are big category of that change. But do your do your hard assets make the difference today and forward. Or all these intangibles. Companies that don't have a date a strategy today are at peril of falling victim to competitors who will use data to come through a flank. And Amazons done that with groceries, right? The third category is as a service capabilities. So if you're growing contracting going into new markets are opening new channels. How do you build that capability to serve that? Well, there's a phenomenon today that we know is, you know, I think, very practised, but usually in functions called as a service by capability on the drink instead of going out and doing big BPO deals. Think about a pea eye's. Think about other kinds of ways of get access to build and scale very fucks Pierre your capabilities and in the last category, which actually is extremely important for any change you make elsewhere is your workforce. Um, culture is part of that, right? And a lot of organizations air bringing on chief culture officers. We and KPMG did the same thing, but that workforce is changing. It's not just people you hire into your four walls today. You've got contingent workforce. You have gig economy, workforce a lot of organizations. They're leveraging platform business models to bring on employees to either help customers with help. Dex needs or build code for problems that they like to solve for free. So when you talk about productivity, which we talked about last year and you start thinking about what's separating the leaders from a practical standpoint from the laggers from practically standpoint, a lot of those attributes of changing customer value of assets as a service growth and workforce are driving growth and productivity for that subset of our community and many injured. >> So when you look at the firm level you're seeing some real productivity gains versus just paying attention to the macro >> Correct, any macro way think proactive is relatively flat, and that's not untrue. It's because the bottom portion the laggards aren't growing. In fact, productivity is in many ways falling off, but the ones that are the frontier of those top ten percent fifteen hundred global clients we've looked at, uh, you know, you see that CD study show that they're actually driving growth and productivity substantially, and the chasm is getting larger. >> So, Steve, Steve, it's curious what this means for competition. I think about if I'm using external workforces in open source communities, you know, Cloud and I, you know, changes in the environment. A supposed toe I used to kind of have my internal innovation. Now I'm out in these communities s O You know, we're here than IBM show. You know, I think back the word Coop petition. I first heard in context of talking about how IBM works with their ecosystem. So how did those dynamics change of competition and innovation in this? You know, the gig. Economy with open source and cloud. May I? Everywhere. >> Big implications. I mean, I I think you know, and this is the funny point you made is nontraditional competitors, because I think most of our clients and ourselves recognized that we haven't incredible amount of nontraditional competitors entering our space in professional services. We have companies that are not overtly going after our space, but are creating capabilities for our clients to do for themselves what we used to do for them. Data collection, for example, is one of those areas where clients used to spend money for consultants coming in to gather data into aggregate data with tools today that's ah, a very short process, and they do it themselves. So that's a disintermediation or on bundling of our business. But every business has these types of competitive non Trish competitive threats, and what we're seeing is that those same principles that we talked about earlier of the twenty first century surprise applies, right? How are they leveraging there the base and how they leveraging their workforce? Are they? Do they have a data strategy to think through? Okay, what happens if somebody else knows more about my customers than I do? Right? What does that do to make those kinds of questions need to be asked an innovation as a capability I think is a good partner and driving that nothing I would say, is that eco systems and you made you mention that word, and I want to pick up on that. I mean, I think eco systems air becoming a force in competitive protection and competitive potential going forward. If you think about a lot of you know, household names relative Teo data, you know Amazon's one of them. They are involved in the back office in the middle ofthis have so many organizations they're in integrated in those supply chains. Value change, I think services firms, and particularly to be thinking about how do they integrate into the supply chains of their customers so that they transcend the boars of, you know, their four walls, those eco systems and IBM was We consider KPMG considers IBM to be part of our ecosystem, right? Um, as well as other technology. >> So they're one of one of the things we're hearing from IBM. Jenny talked about it yesterday, and her keynote was doubling down on trust. Essentially one. Could you be implying that trust is a barrier to ay? Ay adoption is that. Is that true? Is that what your data show? >> We we we see that very much in spades. In fact, um, you know, I I if you think about it quite frankly, our oppa has driven a lot of people to class to class three. Amalgamation czar opportunities. But what's happening is we're seeing a slowdown because the price of some of these initials were big. But trust, culture and trust are big issues. In fact, we just released recently. Aye, Aye. And control framework, which includes methods and tools assessments to help our clients that were working with the city of Amsterdam today on a system for their citizens that helped them have accountability. Make sure there's no bias in their systems. As a I systems learn and importantly, explain ability. Imagine, you know. Ah, newlywed couple going into a bank to get a house note and having the banker sit back and have his Aye, aye, driven. You know, assessment for mortgage applicability. Come up moored. Recommend air saying no. You Ugh. I can't offer you a mortgage because my data shows you guys going to be divorced, right? We don't want to tell it to a newlywed couple, right? So explain ability about why it's doing what it's doing and put it in terms that relate to customer service. I mean, that's a pretty it's a silly example, but it's a true example of the day. There's a lot of there's a lack of explain ability in terms of how a eyes coming up with some of its conclusions. Lockbox, right? So a trusted A I is a big issue. >> All right, Steve, Framework that you just talked about the twenty first century enterprise. Is there a book or their papers? So I just go to the website, Or do I need to be a client? Read more about, >> you know, absolutely. You can go to our website, kpmg dot com and you can get all the della you want on the twenty first century enterprise. It talks to how we connect our customers front to middle toe back offices. How they think about those those pillars, the technologies we can help them with. Make change happen there, etcetera. So I appreciate it that >> we'll check it out that way. Don't be left in the twentieth century. Come on. >> No, you can't use twentieth century answers to solve twenty first century challenges, right? >> Well, Steve, he'll really appreciate giving us the twenty first century update for day. Volante on student will be back with our next guest here. IBM think twenty nineteen. Thanks for watching you.

(techno music) >> Announcer: Live from Las Vegas, it's theCUBE. Covering Dell Technologies World 2018. Brought to you by Dell EMC and its Ecosystem Partners. >> Welcome to Las Vegas everybody. You're watching theCUBE, the leader in live tech coverage. My name is Dave Vellante, and I'm here with Stu Miniman and this is the inaugural Dell Technologies World and Pat Gelsinger's here, he's the- >> Hey, great to be with you today, >> Dave: the CEO of VMware, awesome to see you, >> Oh, thank you. >> Our number one guest of all time, this is our ninth Dell/EMC World and your 900th CUBE interview, But it never gets old Pat. It's really a pleasure to see you. >> Oh it's always fun to be with you guys. Thank you for the chance to spend some time on theCUBE, you've come a long way. >> So, thank you for noticing! So, you were the first, and people are recognizing this, to really sort of call the boom in the data center. We certainly have seen it with cloud, and we saw a little bit with data and big data, and now digital transformation, but well over a year ago, you said, we have tailwinds, it just feels right, so good call. >> Yeah, hey thank you, and you know clearly like the IDCs, Gartners, you know, they began last year, 2% to 3% growth, I said no, I think it's at least 2x that, and we ended of the year almost 6% growth in IT, and everybody's raised their forecast, and I think they're still a little bit conservative, and I think in this period, where technology is becoming more pervasive in everything, every business is becoming a tech business, every area of every business is becoming influenced by tech, and as a result, hey I think we're going to see a long run of tech strength and every company in tech is going to benefit and those that are well-positioned are going to benefit in a big way. >> Yeah, you see, you called it, "tech is breaking out of tech" >> Yep, yep absolutely, right, you know, we're no longer that little IT thing stuck in the back corner making sure your mail runs, it's now everything. You know, back office has become front office, right. You know, every aspect of data becomes mission-critical for the business. As some have called it, you know, data is the new oil, right, in the future. And it really is thrilling to see some of our customers, and Michael had a few on stage this morning doing really pretty cool things. >> Well VMware is on fire. I mean, it's only 10% of Dell's revenue, but it's half, it generates half of its operating cash flow. Obviously we love the software business, of course. Talk about your business, the core is doing really well, you got NSX crankin', vSAN cranking, the cloud now, there's Clarity in cloud, give us the overview of your business and give us the update. >> Sure, and as I say, you know, there's three reasons we're doing well. You know, one is our strategy is resonating with customers, and you know, when you got strategic resonance with customers, you're not in the purchasing department, you're in the business units, the CIO's office. So strategy is resonating well, across what we do for private cloud, what we're doing for public cloud, what we're doing for end user and workforce transformation, our security strategy, every aspect is resonating. You know, second, we're executing well. And I'll say, you know, your good strategy, you're executing it well, and you know, clearly the Dell momentum has helped us. We're ahead of schedules on the synergies that we've laid out, and that's been a powerful accelerant. It was like we're doing well, you know, and you put some turbochargers on, whoa, you know this is going, and then finally as we said, it's a good market, right. And well-positioned tech companies are benefiting from that. So across our product families, you know, NSX, vSAN, and HCI, you know, our cloud management is really performing, the end user computing, you know, all of these seeing, you know 30, 50, 100 percent growth rates. You know, my overall cloud business, you know, VMware is growing in the teens you know, my cloud business is growing in the 30s, and way ahead of the growth rate of the business, so pretty much everything that we've laid out is firing on all cylinders. >> Pat, I think most people understand some of the products of VMware. I think it's, you know, 20 years now, since server virtualization laws You've, you know great momentum with NSX with vSAN, wonder if you could talk a little bit about the digital platform though, you know how does VMware look, you know, for the next five to 10 years, fit into the Vision 2030 like Michael was talking about. >> Yeah, yeah, you know very much, you know, as I say, you know, our objective is to be the essential, ubiquitous, digital infrastructure, right. Where you know, this idea, you know, essential. You know we run this mission critical stuff and increasingly we're seeing businesses put their crown jewels running on VMware. You know, 'cause we ran a lot of the stuff of the past, we'd run your SharePoints, your Outlooks, and so on, but now, they're putting core banking on us, you know, core transactional platform. They just say, you are essential, ubiquitous, our strategy is to move all the way to the edge, and the IOT use cases, into the core networks of our service provider partners, You know, to as I say, build these four clouds, the private cloud, the public cloud, the telco cloud, and the NF or the IOT cloud. All of those on a common infrastructure, that enables applications to build on and leverage all of the above. So you know, we're increasingly ubiquitous, digital infrastructure, meaning that they can build their applications from the past as well as in the future on us. And as we're partnering with Pivotal with our PKS strategy, reaching more to the developer, right, and delivering that infrastructure for the next-generation apps, and of course the dirty secret is, is that almost all of the cool new apps are some ugly combination of new and old. And if we can give a common operational security management and automation environment that transcends their cool new container, and function as a service, but combine it, in a consistent operational and security environment with today's infrastructure, oh, that's like the big easy button for IT. Got it, we could take you to the future, without giving up the past. >> We hear from our, you know, CXOs, in our community, in our audience, they really, they want to get digital right. So my question to you is, what kind of conversations are you having with executives around getting digital right? >> Uh-huh, yeah, and lots of those things are, you know, like just with a big media company, was with a huge Bank, on the phone with a big consumer goods product last week. You know these interactions occurring, you know like you say they want to get it right. And with it we're seeing the conversation shift, because a lot of it used to be, you know best of breed. Oh that looks good, and I'll stitch it together with this, and maybe I'll put it that, and a lot of their bandwidth was being put to putting the pieces together, and we're saying no, right. What you going to do is have robust infrastructure. Increasingly rely on fewer, more strategic vendors. It's my job to put it together, so you can take your investments and put them into the applications and services that really differentiate your business. And this is becoming a sea change in how we work with customers and say, okay, yeah I can't stitch all these pieces together, I can't have a hundred security vendors, I must rely on fewer vendors, in much more strategic ways. And in that, obviously we're benefiting from that enormously and they're expecting us to step up like never before, to be a partner with them, and it really is a thrilling time for us. >> So that simplifies all the complexity on there, and at least in concept. Who's leading this charge? Do you discern any patterns of the guys that are getting it right, versus the guys that are maybe struggling, or maybe complacent, specifically in terms of leadership? >> Yeah, and it's super, super interesting, because I find leaders in every industry, right? You know, you find leaders and laggards in those, I had one customer not a lot, long say, "Hey is that virtualization stuff, can I really rely on it?" It's like, ding dong, you know, you're now the trailing edge of technology, but for every one of those trailers, we're seeing those front end customers, and you saw some of them on stage this morning. Where they're just really going and saying, boy we are now ready to ante in, in a big way. We're seeing that in car companies. We're seeing that in financial services companies. We're seeing that in supply chain companies. And some of those are now really seeing these startups now putting pressure on their business for the first time, and they say no, we got to innovate in a very aggressive way. And for that, you know, the Dell Technologies family, you know all of us coming together, you know with our, each skills and focus areas, but together being able to present that holistic solution that says, that's right, we can lead you on digital transformation, we could change your infrastructure, we can build-in security, we could transform your workplace, we could take you to the multi-cloud future, we got it. >> Pat, there was one of the things that caught my ear, Allison Dew, when she was talking about the Dell Technology Institute, said that, together you're going to become a force for good. I know that's something that's near and dear to your heart, >> Pat: Yeah. >> So, maybe, you talked about the tech, and the security and everything, what about the Dell families as a force for good out there? >> Yeah, and I've described this era, and I've said there's four superpowers. You know, technology superpowers that are bigger than any of us, right. And the four I described, you know, mobile. The ability to reach anyone, over half the planet is now connected. Cloud, the ability to scale as never before. AI, the ability to bring intelligence to everything, and IOT, the ability to bridge to the physical world everywhere. And those four are really reinforcing each other, right? They're accelerating each other, as Michael said, you know, "Today, the fastest day of your life. "Today, the slowest day of the rest of your life, "for tech evolution." And we see them just causing and accelerating each to go, as I mentioned in my talk this week at the Grow Awards in Silicon Valley, in 1986 I was making the 486, a great AI chip, right. It's like, what? 31 years ago? And now it's a success because the superpowers are coming together. The compute is now big enough, the data is now volumous enough, that we can do things never possible before. But with that, technology is neutral. The Gutenberg printing press did the Bible, you know, Luther's Bible, it also prints Playboy. It sort of doesn't care. Technology is neutral. And it's our job as a tech industry to shape technology for good. You know that's our obligation, and increasingly we need to be involved in, and shaping, legislations, policies, laws, to enable tech to be that force for good. >> Pat, you mentioned kind of the speed of change in the industry. You're a public company with you know, a lot of employees, how does, internally, how do you keep up with the pace of change, keep inspiring people, get them working on the next thing? You know, Michael talked about going private was one of the things that would help him restructure and get ready for that, so maybe discuss that dynamic. >> Well, you know and for us, you know, as a software company living in Silicon Valley, we feel it every day, right. I'll tell ya' you know, we see these startups, that are hovering around our people, and our buildings, and they got ideas, you know, so we're synthesizing those ideas. We have our own research effort, our advanced product efforts, we're engaging, you know, and thousands of customer interactions per day. And ultimately, it's my job to create a culture that enables my 8,000 software engineers to go for it every single day, right. Where they are just, you know, they love what we do as a company, they love who we are as a company, our values. And then find ways that we enable our teams to, what I say, innovate in everything. Not just in R and D, but how we sell our products, how we support our customers, you know, how we enable these new use cases. We have to innovate in everything, if we're going to keep pace with this industry, and to some degree, I think it's almost in the water in Silicon Valley, right. You know yeah, you got some crazy master's student coming out of Stanford, and he thinks he's going to start up a company to displace me. It's like, what are you talking about? But we feel that every day, and as we bring those people into our environment, creating that culture that allows everybody to innovate in everything, >> So it's hard to argue that things aren't getting faster, that speed, but speed is an interesting question. When you think about blockchains, and AI, and natural language processing, just digital in general, there's a lot of complexity in terms of adopting those things. So speed versus adoption. What do you see in terms of adoption? >> Yeah, you know in a lot of these things like, you know, you look at a technology like NSX, cool, breakthrough, you know we're five years old now, almost on NSX, right? Since we did the Nicira acquisition as a starting point, 4 1/2 years on NSX, and some of these things need to be sedimented, as I describe it, into the infrastructure. Hardened, you know when you've really proven all of the edge cases. You know, those things don't move every day. >> Dave: Right right, fossilized, Furrier word, >> Yeah, you know there is, you know similarly with vSAN. Boy, these edge use cases, data recovery, pounding on the periphery of failure cases, disk drives, failure modes on flash drives, some of those things need to be sedimented, but as you think about those layers, always it's you know, how do you sediment? How do you standardize? And then expose them as APIs and services to the next layer. And every layer as you go up the stack gets faster and faster right, so as somebody would consume the software-defined data center, they need to be able to do that pretty fast. You know, how can I make, you know VM, we just released 6.7. Which reduced by an order of magnitude the time to launch a VM. You know, increase the, by 20x the amount of V-Center bandwidth, just so I can go faster. Not that I needed to go faster for VMs, I needed to go faster that I can put containers in VMs, and they need much higher speed of operation. So to me, it's this constant standardization, sedimenting, integrating, and then building more and more agile surfaces, as you go higher in the stack, that allows people to build applications where literally they're pushing updates, and seeing their CICD pipeline allow new code releases every day. I'm not changing NSX every day, but I am changing my container environment for that new app literally every day, and the whole stack needs to support that. >> Cloud partnerships, we talked last year at Vmworld, about the clarity that the AWS deal brought, of course you have an arrangement with IBM, you're doing stuff with Kubernetes, so, just talk about your posture with the big cloud players, and how that has affected your business, and where you see it going. >> Yeah, you know, clearly the cloud strategy, the AWS partnership, as I said, more than anything else, when we announced that, people moved their views of VMware. Oh, I get it, VMware isn't part of my private cloud, or part of my past, they're the bridge to the future. And that has been sort of a game-changing perspective where we can truly enable this hybrid cloud experience. Where I could take you and take your existing data centers, I can move them into a range of public cloud partners, AWS, IBM, you know, and be able to operate seamlessly in a truly hybrid way. Oh your data center's getting a little hot, let's move a few workloads out. Oh, it's getting a little bit cool, let's move some workloads back. We can truly do that now, in a seamless, hybrid multi-cloud way, and customers, as they see that, it's not only the most cost-efficient, right, it also allows them to deal with unique business requirements, geo-requirements that they might have, oh, in Europe I have to be on a GDPR cloud in Germany. Okay, we support, we have a right, you know here's our portfolio. Other cases, it's like, oh, I really want to do take advantage of those proprietary services that some of the cloud vendors are doing, you know. You know, maybe in fact that new AI service is something that I could differentiate my business on, but the bulk of my workload, I want to have it on this hybrid platform that truly does give them more freedom and choice over time, while still meeting unique compliance, legal, security, issues, as they've come to know and love from VMware over time. >> So to clarify, is it, are you seeing it as use-case-specific, or is it people wanting to bring that cloud experience on-prem, or is it both? >> It is truly both, because what you've seen, is many people, and if we were talking four years ago, you would've been asking me questions, "oh, you know I just talked to Fred, "and he says everything is going to the cloud" right. And people tried that student body right to the cloud of their existing apps, and it was like, oh crap, right? You know, it's hard to re-platform, to refactor those applications, and when I got there, I got the same app, right. You know, it's like, wow that was a lot of investment to not get much return, right. Now, they look at it and they say, "Oh boy, you know, "I can build some new apps in cool new ways" right, with these cloud native services. I can now have this agile private hybrid cloud environment, and I truly can operationalize across that in a flexible way. And sometimes we have customers that are bringing workloads out of native cloud, and saying, oh that's become too big in my operation role. You know I have different governance requirements. I'm going to bring that one back. Other cases are saying, "Oh, I didn't want to move it to the VMware cloud on Amazon", or you know, IBM, the migration service is really powerful. I want to get out of the data center. Other cases, they look at their cost of capital, and the size and scale they're operating, and says, "Hey, I'm going to keep 80% on-premise forever, "but I never want to be locked in, "that I can't take advantage of that, "should there be a new service." It really is all of the above. And VMware, and our Dell relationship, and our key cloud partners, now 4,100 cloud partners strong, it's really stepping into that, in a pretty unique and powerful way. >> And the key is that operational impact, as Pat is saying. >> So Pat, just one of the challenges we've heard from users we talked to is, if this was supposed to get simpler, virtualizing it, you know, I kept all my old applications. Going the cloud, there's more SKUs of compute in the public cloud than there are, if I was to buy from Dell.com. You know, in management, you know we're making steps, but you know it's heterogeneous, it's always add, nothing ever dies, how do we help customers through this? >> Yeah, and I do think they're, you know we're definitely hearing that from customers. And they're looking to us to make these things simpler. And I think we've now, you know, laid the templates for a truly simpler world. Right, in the security domain, intrinsic security. Build many of the base security capabilities into the platform. Automation, automate across these multiple cloud environments, so you don't care about it, we're taking care of it against your policies. Being able to do that, you know, and have an increasingly autonomous infrastructure that truly is responding and operationalizing those environments, without you having to put personnel and specific investments, right at that fundamental operations level, because it's too big, it's too fast, you can't respond at the pace the business requires. So I feel really good, we have some key innovations, you'll see us announcing. Now, we're going to talk at VMworld right? >> Dave: Oh absolutely. >> Okay, >> I will 100% be there, >> I have some cool announcements in this area, by VMworld as well, specifically, in some of these management automation, we see some of that applying, some new AIML techniques, to be able to help with some of those workload management and policy management areas. So, some really cool things going on to help these problems specifically. >> We've seen, oh we saw blog recently, about you guys working on some blockchain stuff. I know it's early days there, but it's exciting new technology. >> Yeah, and the blockchain stuff is what I'm really, really pretty excited about. We have some algorithmic breakthroughs that right now, you know, blockchain on a log scale basically scales at you know log or super log, right. Which meaning, it's problematic right. Is you get lots of nodes, right, you know the time to resolve those, gets to be exponentially expensive, to be able to resolve. We've come up with some algorithmic breakthroughs that drop that to near linear. And when people look at that, they sort of say, wow, I can make my blockchain environments much larger, much more distributed as a result, so as a result of some of that work we'll be increasingly making blockchain as a primitive. We're not trying to deal with the application level, you know for insurance, for financial, but we can increasingly deliver a primitive infrastructure along with vSphere in the VMware environment, that says yeah, we've taken care of that base issue. We've guaranteed it from a vendor you trusted, and you might remember there was a couple of breaches, of some of the blockchain implementations, so yeah, we hope to take care of some of those hard problems for customers and bring some, a good breakthrough engineering, from VMware to that problem. >> Well, it's great to see companies like VMware and you know enterprise plays, IBM obviously involved, into bringing some credibility to that space, which everybody says "Crypto, oh", they don't walk they run, but there's real potential in the technology. I want to ask you about a Silicon Valley question. >> Pat: Okay. >> Any chance I get, so if I broadly define Silicon Valley, Let's include, you know, Seattle. And we generally don't do that, but that's okay, but I'm going to. >> We'll take this, we'll take 'em in okay. >> it's technology industry, but technology industry seems to have this dual disruption agenda. We've always sort of seen, tech companies own this horizontal stack, you know, and go attack, and cloud, and big data, and disruption, but it seems like, with digital, you're seeing them attack new industries. Whether it's healthcare, or groceries, or media. What do you make of that? Can Silicon Valley, broadly defined, pull off this dual disruption agenda? >> You know I really believe it can, right. In that, I'm, you know, being part of it. I'm a huge optimist on it. I don't think it will be exclusive to Silicon Valley, right. You know, there's a tech community in Boston, that's a bit more focused on healthcare, right. Obviously, the cloud guys coming out of Seattle. You know, Austin, and you know, Texas has increasing, Research Triangle, when you go around the world, you see more places because, you know, in that sense, one of my favorite, you know, cartoons, is a picture of a dog at a terminal. I'm sure it was a Dell terminal, but you know, and the caption reads right, "On the internet, "they don't know you're a dog." Right, you know the point being, hey, when you're on the net, it doesn't matter where you are, right. And it enables innovation, whether that's Afghanistan, whether that's Bangladesh, whether that's Myanmar, you know any of those places, become equal on the net, and it does open up that domain of innovation. So I view it much more as tech is disrupting everything. And that's my theme of, "tech is breaking out of tech". Clearly the hub of that, is Silicon Valley. Right you know, that's the center where you know, every third door is a new startup, as you walk down the street. It really is an incredible experience. But increasingly, you know, that innovative disruptive spirit is breaking out of Silicon Valley, to you know, literally across the world. The Chinese think they might be the number one. You know, Europeans, oh sort of a renaissance in France, you know that we haven't seen for many years, and so on. And I do believe that it will continue to be technology, in this horizontal way you know, but increasingly, and I think you know, Amazon has led the way on this. We're seeing boy, we can disrupt entire industries you know, leveraging that. You know, Tesla in automotive, and Airbnbs. All of these are changing industries in fundamental ways, and I do not see that slowing down at all. You know, I'm thrilled to see like, you know, health care, right. Boy, I have not seen this amount of disruptive technology startups in healthcare, healthcare one of the lowest percentage of spend on IT. Can you imagine that? Right, you know at that level, and boy, we're starting to see that pick up. So industry by industry I think we're just getting started. >> And that's an industry that is really ripe for disruption. >> Pat: Oh my gosh. >> So Pat, we're going to hear about some of this, this afternoon at your keynote, I presume? Maybe show us a little leg there, and we'll wrap. >> Yeah, yeah. >> Dave: Alright, take it home. >> Hey, you know we're, today's keynote, obviously going to talk about the better together aspects, we'll update on vSAN and HCI and our strategy there, some of the cool things we're doing with Dell, and AirWatch Workspace ONE, and the client space. Yeah, we're going to talk about networking. I'm going to lay out our networking strategy, and we're going to give a teaser this afternoon of a broad set of networking announcements that we're doing this week. And hope to really lay out, what we think of, as the virtual cloud network of the future, and how the network is essential to that future. So, we're going to have a little bit of fun there, and you'll see me don the VR headset, right, and hey we're going to go into the virtual, virtual data center today, >> Virtualization inception. >> There we go. >> Well Pat, on a personal note, you've been a great friend of theCUBE, and we really appreciate that, and you've been an awesome guest, we saw you come from Intel with an amazing career, and we just see it going from there. So congratulations on all your personal success, your team success and continued. >> Love you guys, it's always great to be on theCUBE. You guys do a fabulous job, >> Dave: Thank you. >> For live tech coverage, and it really has been a lot of fun, and next year we're going to go party for your 10 year anniversary on theCUBE. >> Dave: That's right. Love it. >> Okay, cool, very good. >> Alright. >> Thank you, thanks so much. >> Good. Thanks. >> Alright, keep it right there everybody. We'll be back with our wall-to-wall coverage of Dell Technologies World. 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on the ground from galvanized San Francisco its excused covering amplified woman's bitch night here's Jeff hey welcome back here ready Jeff Rick here with a cute we're at galvanized a downtown San Francisco at the girls in tech amplify event which is is women's pitch night so I think they have ten entrepreneurs here pitching their company pitching their ideas somebody's gonna walk away with 10,000 bucks some computers and other fun stuff so we're happy to be here share the stories with you because this is where innovation happens and our next guest is Ellen health can hard do I get that right from Stila welcome thank you first I've had your pitch go pretty good yes okay so your project is called still emotion so what is still emotion still emotion is that pocket-sized secure system it's had a little sample here okay so this is what it looked like so it's a smaller device that you put on anything that you wants to be still like a bag or computer or a stroller or on a window and and if something moves that shouldn't you get an instant notification to your phone or to your SmartWatch okay so it's got accelerometers and those types of things in there that it's really all about motions yeah little app onto your phone or whatever exactly okay so so there's a lot of action right now with tile and those types of things how is it different kind of what's the different value propositions well it's as I said it's kind of the opposite instead of like finding your thinks it's not losing them in the first place so it's it's a preventative device rather than it's proactive instead of reactive okay but it does have similar functionality as well so if you forget your bag at the cafe you will you will get a notification when the distance is Williams contact but yeah if you're sitting here with me and your bag walks away the tiles the trackers won't help versus the Stila would tell you directly someone is touching your your bag right so how did you come up with the idea I was actually learning how to program Arduino boards I I was running an hour working at a hardware accelerator and my background is more sorry ated but I'm I'm a geek at heart so I had like this little Arduino board that I that I learned how to code with so I I just I literally I'm so I'm so geeky I have Arduino boards in my purse but yes I do so this is a little computer kind of so we were sitting in like learning this at the cafe and I dropped it on my bike and when I lifted it up it started blinking and I'll say you know what that would be great if it did something else to plate and that's why I came up with the idea and how long ago is that so give a little just about kind of history the company how many people are you kind of where you on yeah and the development phase still prototype well I also had idea because I've done a hundred startup before but it took like four years and I'm kind of I wasn't willing to give it four years so it's like is it possible to I like the idea but I didn't know if I want to commit so much time and effort and money so I was like can I make it in a hundred days it's it possible to start a Harvard company in a hundred days so I kind of challenged myself to do it did you have a regular job while you're doing this a normal job i I worked this Australia consulting because I had to fund myself so I had no money no money no funding no team no nothing yeah and I was like yeah I'm gonna make this little button so I did this and then I literally make prototypes in clay and paint and like I talk to people I I got a team together and I did patent applications and got apps together and did yeah so I went from this to functioning Harvard product in 100 days and then I was like I actually want to do this so I kind of quit my job and and made sure that I went all in and got a team together and some of the basic investors to help me out and then yeah we got going and it took a hundred days to make the first product and then it had taken almost a year to build the company right right this is just the start like this is the first product and they will have a whole line of things that we're doing so we're you know what are you gonna do with the money kind of is it for scaling is it for more licensing what are you gonna yeah we just closed our campaign okay on Friday last week and we are now in the last batch of prototyping so I'm going down to our hardware engineers in Orange County next week to finalize the production before we kind of go into tooling and then after that we're doing final stages of the app and then we're going to send Jen in China where produce and started tooling and manufacturing process so we're shipping and March next year more chips here awesome so great story and you said you've got team members from all over the world five of seven continents you're leveraging a lot of others technology like accelerometers to pull this thing together in such a short period of time yeah well very exciting well good luck to you and I hope get some of that money tonight thank you all right we'll keep an eye and worship people go to get more information about the company yet my still of calm my still at ICON spelled STI ll a all right my STI ll a with my in the front awesome all right Alan well thank you very much thank you all right I'm Jeff Rick we are at the girls of tech amplify pitch night here at galvanize in San Francisco we'll be right back after this short break