David it's just gonna call in like basically live feel more nos Vegas Nevada execute again it's the 10 covering knowledge 15 brought to you by service now hello everyone welcome to the cube this is our flagship program we go out to the events in the correct the city okla noise I'm John furry the founder silicon they enjoy my coach Dave vellante co-founder Wikibon org and networks I to be in Las Vegas live for three days of wall-to-wall coverage of service now's no 15 knowledge 15 hashtag no 15 go to the crowd chat / no 15 join the conversation our first guest is Frank's lubin president/ceo source now great to see you again thanks for having us thanks much absolutely the keynote was great i mean in the world's changing IT cloud vmware's had an announcement about native apps on the cloud customers are changing business models are changing talk about what you get to do house that you had a big stock drop in the past week and value is that a sentiment of the of the of the Wall Street dynamic products what is it about the business right now with clouds specifically the business model for your customers it's flywheel the SAS models what's what's going on what's your take on all that flying cloud companies and obviously well I ought to got a lot of the high we're one of them you know we're priced to perfection right and that's that's not an easy place to be for for for anybody and you know we're not really focused on that it's this is a marathon every quarter is one mile marker he can't get too excited about you know one versus the other we're really pacing ourselves your building you know an enterprise that's going to be here for for a long time and our focus is not just on modernizing what what people are doing it's focusing on transforming what people are doing and the emphasis that we place on everything as a service structure workflow approaches getting away from message oriented ways of doing things like email is enormous sea change right there is there's over 100 million PDFs out their forms that people have to download and fill out what somebody else then has to scan and reenter right the world is ripe for this type of innovation the technology is here all we need to do is apply it the start okay so I said when I talked yesterday and I said any successful 12 billion dollar valuation company's going to have a day like friday but I've noticed post the financial analyst discussion yesterday things have calmed down a little bit so who knows maybe it's a buying opportunity I wanted to tie it into the TAM expansion that we've seen when you first took this company public everybody looked at it as a very small niche and it took you and Mike scarpelli and others a while to sort of educate Wall Street on the size of the potential and we're now starting to see that come to fruition you guys talk about expanding into the business side and now you're doing it you talk about going into mobile you talk about you know new innovations at the SMB why is it that you're so successful at executing at what you're doing is that the platform is that the people is that the customers I wonder if you could describe that a little bit what's the magic formula are fundamentally a platform company we that was not always well understood even before I joined the company and I talked to Fred Lunney the founder we were very well aware of the opportunity to expand just dramatically beyond the boundaries of the initial application set which was the IGM set of applications it's just how to do that right when you peel away the veneer the rhetoric the nomenclature you know what you see is a workflow an orchestration platform this is so broadly applicable right what these knowledge conferences are all about is to show people what is possible on this platform and you know all we have to do is take the horse to water soda drink and then you know they go on their own right this is a place where people come to get inspired platform and if you seen from some of the examples that we had on stage this morning and people are not tackling crm applications what service now you know why there's really nothing there's really no boundaries in terms of service management for us to tackle workflows and orchestrations like that right so the world is your oyster II and there's really no place that we we can go with this platform all we got to do is empower and energize the audience that you have here and the fact that they show up in such huge numbers as evidence that were we're succeeding at that right good all the events it's the same kind of theme Internet of Things Big Data have paced are changing clouds and innovator what is it about the cloud and your platform and your customers in terms of the business models what is it about the innovation that's going on right without business must change what specifically can you highlight and get some example because you have a lot of customers we were just talking that the cubbies are sending dozens of people here this event it's not just a boondoggle there's some real work getting done so there's a huge transformation see what is it about the business model now that's changing what are you guys doing turn on your platform this conference is called knowledge for a reason people come here to get knowledge right that's right the labs and training and all this kind of stuff but the most important thing to understand about service now what we did with the individuals really lowered the skills profile and the skill demands to be able to access this level of functional and we really did that by an order of magnitude this wasn't just a platform for programmers people that really have procedural programming skills we really took that out of the equation and people have Excel style skills people will understand the rows and columns and data types that's enough to know to be able to go up okay now what happens in that process we empower very large groups of people in our case IT people to basically take control back over this platform you know in Prior generations of this class of software they were always dependent very small we were people that weren't very accessible and very expensive to do thanks for them how they're doing that is what has unleashed explosion creativity let's talk a little bit about your keynote everything as a service was your big theme EAS sort of acronym what is everything is the service number one second question is is there an analogue to vm sprawl is there a potential for server sprawl what do you what are you telling customers about that are they asking you questions but start with what does everything is a service what does that mean everything is what service means taking work work in the sense the repeatable activities things we do over and over again digging it out of the realm of messaging email text phone and putting it into structure workflow we essentially invent that dress as once without best practices really tune and optimize that process and every single time we do that activity we do it exactly the same way and we enforce the business rules the logic upfront stupid enough to thinking like I always is the silly example an organization I lose my security badge or I mangled in the door I need a new on what do I do well you know I Massey Hill I just asked my admin you figure it out okay but everybody else starts roaming the halls like where do i go to go to the front desk maybe you know that thing employees have to have a place to go for their service needs whatever it is HR related facilities related maybe have a parking issue and you should be able to search navigate themselves to a place where they can make a request and then that request is no different than sending a package through fedex or ordering something on amazon information it's now following you you don't have to go and chase it anymore right oh there's a big inversion of how we work i mean we often target service now but we're changing how we work because we're going we're getting away from the structure messaging woman be structure workflow that's what everything is a service is about regard to aquino but so second part of I want to talk about that is my question is there a dark side to that is there a risk of just too many services service sprawl or do you have service for that is there an app for that yeah talk about that logo the obviously during our keynote we actually spoke explicitly to that point because you're concerning your race is legitimate people are saying hey you know DevOps is great you know empowering all these groups to publish their own services that's great but now I'm going to lose control I'm going to lose visibility and we'll lose accountability i'm going to have compliance security problems and so on what we do is you know we actually maintain the transparency the visibility and the control while people are doing things so it doesn't become the Wild West that we've had in Prior generations of software >> Frank talk about what you're seeing in big data honestly you know we didn't cover that space this doesn't seem to be its own little market but certainly medupe to some stuff going on but companies are looking at Big Data certainly in data as it advantaged in some of the things whether it's IT and or an apple agents what's your vision and what is what our customers doing with the day how's the NIT date is great and everyone's the service date is enabler you look at that and how do you find your customs look at it are very transactionally intense but so our systems they're not data rich in the sense that we deal with enormous volumes of data so it's a little bit of a different model and during the keynote what I talked about it's not like they what's hiding your data we can't figure out what's going on the data by structuring the data right what big data tries to do they're trying to figure out what's going on in unstructured data really really hard to do we structure the data so hence it's very very easy for us to analyze the dashboard exactly what's going on but our focus is not so much on big data it's on real time data the real time dimension is something that is going to become huge because people are demanding real-time information is just not interesting to look at data it's 12 24 hours old and because we are sitting on life data the ability to represent it so you can see your business in action right that is insanely exciting for for executives and managers network magic was hot in the old days with the network little but now the way date is got that same kind of paradigm where you have active data passive data and by melding together they can create values that mean we the CIO that we talked to they what you mean by real time today yeah I said look where I want to get you there's one my office just wall-to-wall LED panels and I want to see every every pocket of activity I want to see it executing in real time whether it's good better and different setting threshold seeing exceptions and says I want to be it's like watching the stock market I want to watch my my business that way and that is what we're going to focus on very different from data oceans and data legs and all this kind of stuff we've already structured the data we're not going to have the problem of big data the three of us started our careers without email and it was amazing productivity bump into our lives when we got email but now email is this productivity killer you talked about it in your keynote you guys did a survey is that basically forty percent of a time is spent on admin tasks and employees time I know judge doesn't manage I'll give your calculation i saw was manager with just even you know higher salaries but so how much of that can you actually reduce and what a customer is actually doing around that well it can be reduced by orders of magnitude you can't make it go away I mean people have needs but being able to make those needs fully automated very intuitive very productive it's absolutely possible right I mean 42 days a week almost half time on tasks that have nothing to do or your job is absurd I think this is almost a dirty little secret of business death we have invested in everything except our own internal workplace productivity right we're stuck in the 1980s if not the 1970s and who's going to put on that mantle write it and we're always trying to drive IT to take on that mantle because who else CEOs typically are focused about revenue right image presentation right coo CFO's those are the people that should be driving the internal productivity challenge sorry just that we just haven't made any progress there in decades and the acceleration now is a significant I start guy an email Facebook say I just finally gave my blackberry you mentioned iPhone and your kita he's still using the blackberry I was like that's actually a great scandalous blog post opportunity but are you mentioned iphone in your keynote moment of this is changing the world certainly edge of the network smartphones and we also hear from customers want to be more Apple night so what's your what were you hearing from customers and they say I don't want to be like the 80s and 90s I want to be more like Apple meaning kind of like the iPhone and the innovation that they bring what they brought to that or you guys been using uber as an example or open table as an example that's that modern vibe for the customer what are they trying to get to in an environment what's their outcome what are you hearing customers the first aspect is the series experience itself in other words what does would like to do what you want to get done essentially we're transactional platform we're not a hanging around platform like a social system we twitter has no no point no purpose it's just nice to shoot things out into the ether and help somebody sees it our systems are not like that it's about performing a unit of work something very specific about the beginning it doesn't end and there's things that happen in between the result it's very different that way uber is also a transactional app I want to hail a cab I need a ride opentable is transactional act I want a reservation there's a very specific end point to that unit of work and this is where technology can be incredibly helpful to get you there faster i use the Gulf example you know fewer strokes is better right and as people want they want have grubert a lot and I find that user experience my blowing compared to trying to call or or hail account it's cheaper and it scales incredibly well right but if wherever you are or whenever you are it seems to be there's cars around this quite impressive App Store like model the enterprise has been kicked around for a while is that service cataloging uber shows the real-time aspect of services needs you know demand in real time but in the back-end service catalog that more apples to the apple store at the back end its lights out light speed right in other words it's just like Amazon right everything is the speed of light until I got to pick something off the shelf the real world kicks in and i have to ship something the same thing same thing with fedex I mean the information processing aspect of FedEx is what makes fedex special in fact that they have planes and trucks you know it is not what your user experience focuses on yeah you got minimal exposure to that you are you're on your way to a billion dollars here shortly you've laid out a plan for four billion by the league 2020 correct with the the financial analyst a lot of people say well one of these guys going to make money you have indicated before you you're right now after scale after growth and what if you could address that um we actually were profitable are you sure I mean we were you could make a lot more money if you want to do but you're going for growth I should have clarified that question better you guys can be wildly profitable if you skip down and just reach over office we've always said and by the way you know one of the things that that our business model really focuses on is making sure that the cash equation really work so on a cash flow basis we're doing extraordinarily well because it's a subscription model you know the profitability equation is a little squishy it's more accounting them than economic which is why the focus on cash our investors focus on growth in the next thing to focus is on this cash right and after they get generally accounting representation of our at some point the law of large numbers kicks in and that's really maybe out in the business out a target model yesterday I was we put updated for the financial analyst shows you exactly where the leverage is coming from transparent supplies for peace I want to let's do a great job of that very drill into on the he said amazon amazon does a great job executing and near a great executors and certainly proven that we do successful with the company but they're constantly innovating the new product announcements debía new announcements is that the new competitive advantage scale and stickiness through rapidly iteration of new features is that this is just a one-off outlier with amazon you see no price it be more like that's one of them  you see that with Tesla they've changed the car industry there's constant updates to the cars right a changes of driving experience and that that model of rapid iteration is really the new normal you know back to the real time thing it gets really boring when you get an update every 18 months you think we don't tolerate those kind of time friends anymore and lag is not a good ending our but I you know software gotta ask you a final question I know you getting we're getting a puppy you get very busy schedule thanks to spend the time with us as well I'll see you had a your competitive sailor and following your career right outside sirs now you got a boat for the nuchal hand you mentioned data ocean data legs big big fan of data ocean I want you to share perspective from what you've learned sailing and being successful winning and sailing with how to navigate an idea this as a c-level executive or a CEO CIO or some of the trenches what lessons can sail in your experience is sailing and running service now what would you share with the folks out there as they try to look at their transitional transformation I teach transformation the others there's a lot of analogs if you will between sailing and business because it's this multi-dimensional game that we play you know in sailing it's about technology it's about how great your crew is it's I'll get your boat is it's the weather is what the competition is doing all those things you have in business so people always want to write it yourselves he's like another you know another another brutal contest township and that's that's all true it's very multi-dimensional and finding your high leverage entry point because you know it's very easy to do super business super busy and business and really not move the dial right so understanding where leverage exists what opportunities are that's really the art form I Frank great to have I know you're busy to getting them getting of the big nokia pricing the president/ceo of service now here live in Las Vegas is to Cuba railroad next guest live in three days wall-to-wall coverage here at no.15 join the conversation crowd chef net / no 15 right now