[Electronic Music] >> Announcer: Live from San Francisco, it's theCUBE. Covering DevNet Create 2017. Brought to you by Cisco. Hello everyone. Welcome to this special presentation of theCUBE here in San Francisco, live for two days of wall-to-wall coverage for Cisco Systems inaugural developer event, called DevNet Create. The hashtag is #DevNetCreate. This is a new opportunity for Cisco, a new event. Again, inaugural event. Peter, I'd love to go through all the first-time events, because you never know if it's going to be the last event. Inaugural event, but really Cisco has a very successful DevNet developer program, all Cisco. This is a new effort to go out and talk to cloud developers in the DevOps community. This is SiliconANGLE's two days of coverage of Cisco's foray into the DevOps world. Really bringing app dynamics and all their great stuff above top of the stack together. I'm John Furrier with my co-host Peter Burris. The next two days, live coverage. Peter, big story here is that Cisco is moving up the stack, because they are the leader in networking. They have been for years. We've been joking on theCUBE for many months now, plumbers are turning into machinists. Machinists are being automated away by machines. The value of the network for infrastructure and code becomes super paramount now that automation is starting to happen at the application layer, where data is being used for value purposes to create new experiences for users. I think this is an important story. Here, for Cisco Systems as they move out of the network guys, plumbers, network box guys, who have been incumbent data center presence, as well as powering the biggest, and basically the internet. This is a big story. What is your analysis? What's your take? What's your view of Cisco's DevNet Create opportunity? >> Well, I think there's three things we should be looking for over the next couple of days, John. The first one is the very, very big strategic picture is that the world wants to better understand how to program the internet. Now, if you think about it from a computer science standpoint, the internet is still a computer. And we're still trying to find those ways where we can apply any process, any data, any time, any person, anywhere. Now, there are some physical limitations of being able to do that, but the basic model for how we're going to do internet scale computing still isn't obvious. It still isn't clear. In many respects, the cloud is an approximate to that, and we'll get there, and Cisco's going to have a major role to play. On a tactical level, one of the reasons why Cisco has been so successful and remains so successful in the networking space is because of this enormous body of experts that are still using the Cisco Command Line Interface to set up routers, to do configuration of the network, to do an enormous amount of work down in the lower levels inside the pipes. Now, that group also has to be modernized along with the technology. And Cisco wants to bring those people along. And having them become full members in this whole DevOps transition is going to be really crucial, not only to them and their businesses, but also Cisco. And I think you mentioned the third one. On a very practical, reality level, Cisco needs to bring AppDynamics out to a position of, I don't want to say primacy, but certainly importance within the overall Cisco ecosystem. And so this show is going to be one of the ways to make progress on that. >> And Peter, I got to say, the research that you're doing at wikibon.com, for the folks watching, go to wikibon.com. Peter's been leading the research team there and really has some amazing research. Key stakes in the grounds of the two big waves that are happening: cloud computing, aka DevOps and other things, and the role of data, data science, whatever you want to call it. Data in cloud. Peter, the wave that's hitting, it's musical chairs. And the music stops and you're a big player like Cisco, and you don't have a play in cloud or data, you're screwed. And so it's clear to me that with the AppDynamics acquisition of Cisco, again, a foray into establishing the relationship between applications and code of the network really gives them a unique opportunity to add a lot of value and have a big seat at the table of those next two waves. >> Yeah, I think you're absolutely right, John. In fact, the research we're doing is very very compelling and starts to point to the idea that we used to have hardware as infrastructure, now we're doing, or hardware-defined infrastructure, and now everyone's in this grip of software-defined infrastructure, which is really important and will be here for quite some time. But as you start thinking about the real asset that's going to dictate how digital business works, how businesses get reconfigured, how they re-institutionalize the work that they need to do, and how infrastructure ultimately gets deployed, in many respects, it's time to start thinking in terms of data-defined infrastructure. And it's a term that we're starting to play with inside Wikibon to see how far that actually goes. But I think it's got a lot of prescriptive potency to it. That the idea is, increasingly, your digital business is going to be function of where your data is, what you can do with it, how fast, all those other things. And this notion of data as the asset that ultimately guides and shapes the characteristics of what customers want and what businesses can do is going to be come increasingly important. And this conference and the people here are absolutely part of that change. >> The reason why I like this event and why I'm here and why we're doing this small little event is that I think this is a tell sign, a canary in the coal mine of what's coming on this big wave. And I'll give you an example. I watched Cisco dominate the internet generation because they connected the networks together. They moved and created great value in connecting offices and then ultimately, inner networking, the rest is history. We are now in the next seminal moment of internet scale going cloud and data. So to me, there are two main storylines that I'm watching and I want to get your reaction to on this. One is customer-facing digital transformation. Every customer is trying to figure out how to transform, and Cisco is no- >> Peter: Every business. >> Every business is trying to figure out or Cisco's customers or potential customers have to transform and be a better business. Look no further than the Ford CEO being fired after less than five years on the job. How the hell can you transform a company in four years? You can't. Pressure, stocks down from 39%, he's ousted by Wall Street. Now, this is the pressure of the real world. Two, the notion of cloud computing and machine learning and AI, the application-specific goodness of DevOps infrastructure and code is bringing up the issue of automation. Jobs going away. So, two major threads: growth, with digital transformation or Cisco's customers. And two, the fear that what will cloud do for my job? It's the number one question asked in our crowd chats, in our conversations on theCUBE is, hey look, there's a fire going on around us. Machines are going to take over our jobs. There's going to be a further gap between the haves and have-nots. As Sarbjeet Johal just mentioned on Twitter, as I tweeted to Jas I think, but it's come up on all the crowd chats. Jobs going away as an impact, personally I think they're going to shift but that's my opinion. Your reaction. Digital transformation and automation, machine learning, these things automating away jobs. >> Well, let's start with the second one because in many respects, it's the practical test of what happens with that first question about digital transformation. First off, I agree with you. I think we'll see tasks go away and jobs reconfigure. And a better way of thinking about this is businesses have historically institutionalized the work that they perform around the assets that they regard as most important. In a very practical sense within IT, you can track the history of IT by watching how CIOs and businesses configure the work of people within IT around the assets that the businesses regard as most valuable. When a mainframe costs 50 or 70 million dollars, not surprisingly, that's what you configure around. As you move into the client-server domain, it became the PCs and the applications. >> John: And the data center. >> And the data center. Now we're moving to datas and assets and work will get re-institutionalized that as well. But data has some very specific and interesting characteristics as an asset that maybe we'll get into. But I think what it really points up is not that we're going to see people suddenly being thrown out of work. If you got knowledge and you can apply that knowledge and you can work with other people, the world is going to continue to find a place for you to make money and to add some value. So, that's not to say that this notion of being thrown out of work isn't important, is not going to have a major implication. But more likely, what we're going to see is data as an asset is going to force a rethinking of how we institutionalize work, which is going to force a rethinking of what tasks do and do not create value and what we can automate, and that's going to give people an opportunity to learn or not, and if they don't learn, yeah, maybe you are out on your own. >> We're old enough with our gray hairs to say that we've seen some waves before, and I broke into the business with a computer science degree in the late 80s. So I was on the back end of that punch card and mainframe generation. I watched people clutch on to the mainframe and the jobs just did go, they went away. And there were a few people who did maintenance and they kept their jobs and it become a political football, and people got laid off, but they got shifted. They got shifted. They got shifted to the minicomputer and then the data center. So, the same exact thing's happening and this is why I like this show. Because Cisco has to move from those plumbers, the networking guys, the guys who were the A-1 resource. Networks were the kingpins of the enterprise. They ran the show. They ran the networks. Tier 1 personnel now being commoditized. And my advice to my friends in the networking business, and this is why the show exists, you got to shift your shills to the next value proposition. That's data. By the way, it's still the internet, so I think they're going to be in good shape. If you're a networking guy, you got to go to the next network effect. That's not necessarily boxes. It's still packets. It's still policy. It's still good work. >> It's still security. So let's think about what you just said, John. That you move from a world where I perform the tasks on a particular set of Cisco boxes, to I am responsible for insuring that distributed data works. That's not subtle. I mean, it's major transformation but we are going to have an enormous need for people that can handle and deal with distributed data. I'm going to come back to something you said earlier. And that was the minicomputer revolution. You know, I've been around for a long time too. I came in just before you. What killed the minicomputer was not the microprocessor. People could easily put microprocessors into minicomputers. What killed the minicomputer was that digital had their own proprietary network. IBM had SNA down at the System/36 AS 100, et cetera. You had Prime and DG. Everybody had their own propriety network to handle what they did from a business standpoint, from a business value standpoint within the businesses. What killed the minicomputer world was TCP/IP and this company, Cisco. >> John: Yep. >> Now the question is, >> John: 3Com was involved in that so let's not-- >> What's that? 3Com was involved. >> Peter: Oh, 3Com, absolutely. >> 3Com and Cisco, the internetworking class. >> But it was this company in particular that said, "We're going to flatten all those networks, put them into TCP/IP. Here's the routers." 3Com and Banyon and a whole bunch of others were very important. Coming back to this show at this moment right now, we also see on the horizon a focus on cloud and not data. A focus on your supplier and their wants and needs and not data is going to lead to a world where intercloud connectivity and computing is going to be a major challenge. >> John: That's ironic. Intercloud is ironic because I talked to Lou Tucker 3 years ago, OpenStack Cisco CTO, and internetworking, parallel to interclouding. Now, Cisco-- >> Peter: It's even worse. It's more complex. >> Cisco canceled the interclouding initiative but if you look at where this is going, to that point, it's semantics. Multicloud is the hottest trend right now because hybrid IT, hybrid cloud is the gateway to true multicloud. And I think you're doing a lot of research on that. But let's talk about that. With TCP/IP did for internetworking, you could argue that data and cloud does for multicloud. >> Well I would say that somebody, the data becomes the determinant. The data becomes the most interesting thing to worry about. And then the question is, who's going to do that? Are Amazon and Microsoft and Google going to get together and say here's a set of cloud standards that will ensure that you have seamless end-to-end computing? Maybe? Probably not. Will OpenStack emerge out of RedHat as kind of the universal, well, it's not happening. Will Oracle be successful at saying, "Oh no, forget all that stuff. Bring it all inside oracle."? Probably not. >> John: Here's a question. Go ahead. >> This notion of end-to-end is going to be really crucial to a business, really crucial to architects, and really crucial to development. And how you handle that end-to-end is something that has to start emerging. The answers to those questions have to start emerging out of conferences like this. >> And Cisco certainly has to make this move now. Otherwise, they'll be driftwood if they don't get out >> Peter: That's right. in front of that next wave and ride this wave. But here's what's interesting. They call this the IOT Cloud Developer Conference, where application meets infrastructure. Kind of clever wording but very specific in the wording. And I want to unpack that and get your reaction. AppDynamics coalescing with Cisco's network knowledge, Okay? Because some people are like, "Oh, networking guys, how could they be DevOps guys? They're just configuring networks. They're not relevant." Here's the issue. IOT is a network issue. So you do a lot of IOT research. So, IOT, I would still classify as in that network pool of talent and domain expertise. Now, AppDynamics, which Cisco had acquired, brings the application stack to the table. So, you got the collision between AppDynamics and classic Cisco DNA into a melting pot. (laughs) This is a huge opportunity. And I wanted to get your reaction. How important is IOT, and how important is the AppDynamics component for this new vision of Cisco? >> IOT is essential. AppDynamics, they have to make it important, and that's on Cisco to make it important quite frankly. And again, that's one of the things that the show has to do. But you know it's interesting, John, as you mention that, let's unpack it even a little bit further. You said it's a networking issue and you're right. Network's clearly part of the component. I mentioned earlier, it's a distributed data issue, where the networks is a major impact on that. We might even say it's a distributed application issue. The point is, we are still in the midst of creating the language that we're going to use to describe how to approach and solve these problems. That hasn't been done yet. I mean, people say, oh yeah. Let's talk about blockchain and security. Or let's talk data gravity, or all these other concepts we're throwing around out there. We need more precision. We need more conventional agreement, consensus. There's a lot of work that this industry has to do to really address the challenges that Cisco and the people at this conference face as they try, not only to ensure their relevance looking forward, but very importantly, to solve these extremely complex problems of how we're going to dramatically expand the distribution of function and the distribution of data while at the same time increase things like near real-time. I like to say for example, John. I like to say that the edge is not a place. The edge is a time. That at the end of the day, what's most important is can you process something in the time envelope required and the place is just a way of measuring that. These are all major challenges that Wikibon research is focused on, but also folks at this conference are going to have to address if we're going to solve that next generation of business opportunities. >> That's Peter Burris, head of research at SiliconANGLE media and also general manager of Wikibon.com. Check out the research. A lot of great stuff going on. Digital transformation. The valuation of data and certainly cloud computing and the infrastructure and the impact for customers. Check it out at wikibon.com. I'm John Furrier and we're about to kick off two days of wall-to-wall coverage with Cisco as they put their foot in the water in the cloud DevOps developer community for IOT and applications. It's where applications meets infrastructure. Infrastructure is code. We'll be right back more coverage. Stay with us for two days at Cisco DevNet Create. [Electronic Music]

>> Announcer: Live from Las Vegas, it's The Cube, covering Oracle Modern Customer Experience 2017, brought to you by Oracle. (dynamic music) >> John: Hey, welcome back everyone, we're here live. Day two coverage of Oracle's Modern CX Modern Customer Experience #ModernCX. Also check out all the great coverage here on The Cube, but also on the web, a lot of great stories and one of the people behind all that is Des Cahill, who's joining Peter Burris and myself. Kicking off day two, Des, great to see you, Head of Customer Experience Evangelist, involved in a lot of the formation and really the simplification of the messaging across Cloud, so it's really one story. >> Yeah, absolutely, so John, Peter, great to be here. You know, I think the real story is about our customers and businesses that are going through transformation. So everything that we're doing at Oracle, in our CX organizations, helping these organizations make their digital business transformation and the reason they're going through this transformative process is to meet the demands of their customers. I'd say it's the era of the empowered customer. They're empowered by social, mobile, Cloud technologies and all of us in our daily lives can relate to the fact that over the last five, 10 years, the way that we buy, our journey as we buy products, as we do research, is completely different, than it used to be, right. >> Talk about the evolution, talk about the evolution of what's happening this week, because I think this is kind of a mark in time, at least from our observation, covering Oracle, this is our eighth year and certainly second year with the modern marketing experience now, >> Des: Yeah. >> the modern customer experience, where the feedback in the floor, and this is noteworthy, is that the quality is great, people at the booth are highly qualified, but it's simple. It's one fabric of messaging, one fabric of product. It feels like a platform, >> Yeah. >> and is that by design (laughs) or is that kind of the next step in the evolution of, >> Des: Yeah, John. >> Marketing Cloud meets Real Cloud and? >> Yeah, yeah, so absolutely John. I mean that, that is by design and again, to support our customers and their needs on this digital business transformation journey, it starts obviously with fantastic marketing, we've just got fantastic capabilities within our Marketing Cloud, but then that extends to Sales Cloud. If you generate leads in marketing and you're not handing them over to sales effectively or of a good sales automation engine and that goes on to commerce, CPQ, social, and service. And all of this, if we bring this back down to again, this notion of the empowered customer, if you're not providing those customers with connected experiences across marketing, sales, service, commerce, you're not... you're going to, you might lose those customers. I mean, we expect connected experiences across our whole journey. If I'm calling my cell phone provider, 'cause I got a problem, I don't, and I don't want to call one person, get transferred to another person and then go to the website to chat with someone, have a disconnected experience. I want them to, when I call, I want them to understand my history, my status as a customer, I'm spending 500 dollars a month on them, the problems I've had before. I want them to have context and to know me in that moment and as Mark Hertz says, it's like a moment of truth with my cell phone provider. Are they going to delight me and turn me into a customer advocate, or am I going to leave and go to another cell phone provider? >> Well let's talk just for a second, and I want to get your comments on this and how it relates specifically to what we're saying here. Digital has two enormous impacts. One, as you said, that a customer can take their research activities with them, on their cell phone. >> Yeah. They have learned, because of commerce and electronic commerce, they've learn to expect and demand a certain style of engagement >> Des: Right. >> and that's not going to change, so if you are not doing those things-- >> We like to say Amazon is the new benchmark, either B to C or B to B, it doesn't matter, right. >> It is a benchmark, at least on the commerce side, so it's, so that's one change, is that customers are empowered. The second big change though, is that increasingly, digital allows people to render products more as services and that's in many respects, what the Cloud's all about. >> Des: Right. >> How do you take an asset, that is a machine and render it as a service to someone? Well now we can actually use digital technologies to render things more as services. The combination of those two things are incredibly powerful, because customers, who now have the power to evaluate and change decisions all the time are now constantly making decisions, because it's a pay-as-you-go service world now. >> Des: Right. >> So how do those two things come together and inform the role, that marketing is going to play inside a business, 'cause increasingly, it seems to us that marketing is going to have to own that continuous, ongoing engagement and deliver that consistent value, so a customer does not leave, 'cause you have more opportunities to leave now. >> Well, I, so I think that's a good observation, Peter. I do think that marketers can play, and do play, a leading role in being the advocate for the customer within the brand, within the company and as a marketer myself, I think about not just the marketing function, but I think about, well, what is the experience, that that lead or that prospect going to have when I hand over to sales? And what is the experience that they are going to have, when I hand them over to service? And in my past roles as a CMO, the challenge I always faced was that I couldn't get information out of the sales automation system or out of the service automation system, so as a marketer, I couldn't optimize my marketing mix and I didn't have visibility on which opportunities I passed, which leads I passed over turned into the best opportunities, turned into the best deals, turned into the customers, that were most loyal, that got cross-sold and up-sold and were the happiest. So I think, going back to Oracle's strategy in all of this, it's about having a connected, end-to-end suite of Cloud applications, so that there's a consistent set of data, that is enabling these consistent, personalized, and immediate experiences. >> I think that's interesting and I want to just validate that, because I think, that is to me, the big sign that I think you guys are on the right track and executing and by the way, some of the things you're talking about used to be the holy grail, they're actually real now. >> Des: Right. >> The dynamic is the silos are a symptom of a digital-analog relationship. >> Des: Right. >> So when you have all digital, the moment of truth starts here, it's all digital. So in that paradigm, end-to-end wins. And at Mobile World Congress this year, one of the main themes when they talk about 5G, and all these things, that were going on, was you know, autonomous vehicles, (laughs) media entertainment, smart cities, a smart home, you know, talk to things. To your point, that's an end-to-end, so the entire world wants-- >> Des: Throw IoT in there. >> Throw IoT, >> Right. >> So again, these digital connections are all connected, so therefore, it is essentially an end-to-end opportunity. So whoever can optimize that end-to-end, while being open, while having access to the data, >> Des: Right. >> will be the winning formula. >> Des: Right. >> And that is something that we see and you obviously have that. >> And then the other piece is how do you actualize that data? Right, and I know you spoke with Jack Berkowitz about adaptive intelligent apps, it's, we're taking approach to artificial intelligence of saying, how can we bring to bear the power of machine learning, dynamic decision science, so that all this data, that's being collected and enabled by all these digital touch points, these digital signals, how do you take that data and how do you actualize that, 'cause the reality is, 80% of data that's collected today is dark, it's untouched, it's just collected, right. >> Well, here is the hard question for you, you know I am going to ask this, so I am going to ask it, here's the hard question. >> Des: Yeah. >> It really comes down to the data, and if you don't, you, connected networks and all that good stuff is great fabric, end-to-end. >> Des: Absolutely, yeah. >> This is certainly the future, it's the new normal, it's coming fast. >> Right. >> But at the end of the day, the conversation we've been having here is about the data. >> Des: Yes. >> What is your position with Oracle on connecting that data, 'cause that ultimately is what needs to flow. >> Des: Right. >> How does that work? Can you just take a minute to >> Sure, sure. >> to address that, how the data flows? >> Yeah, I think it starts with our end-to-end connected applications, that are able, that are connected with each other natively and are sharing that same data set. We obviously recognize that customers have mixed environments, so in those cases, we can certainly use our technologies to connect to their existing data stores, to synchronize with their existing systems, so it all starts with the cleanliness and quality of that baseline customer data. The second piece I'd say, is that we've made a lot of investments over the last five years in Oracle Data Cloud and Oracle Data Cloud is a set of anonymized, third party data. We've got 5 billion consumer IDs, we've got a billion business IDs. We've got a tremendous amount of data sources. We just announced a recent acquisition of a company called Moat, last week at our Oracle Data Cloud Summit in New York City. So we've made a tremendous investment in third party data, that can augment anonymized third party data, that can augment first party data, to allow people to have not just a connected view of the customer, but more of a comprehensive view and understanding of their customers, so that they can better talk to them and get them better experiences. >> That's the key there, that we're hearing with this intelligent, adaptive intelligent app kind of environment, >> Yeah, yeah. >> where machine learning. The third party data integrating within the first party data, that seems to be the key. Is that right, >> Absolutely. >> did I get that right? >> Yeah, well I would say there's a number of points, so I would say that, that, you know, you can think of the Oracle Data Cloud combining with the BlueKai DMP and being a great ad-tech business for us and a great solution for digital marketers in and of itself. What we've done with adaptive intelligent apps is that we've combined that third party data with decision science machine learning AI and we've coupled that with the Oracle Cloud infrastructure and the scale and power of that. So we're able to deliver real-time, adaptive learning and dynamic offers and content at 130 millisecond clips. So this is real-time interaction, so we are getting signals every time someone clicks, it's not a batch mode, one-off kind of thing. The third piece is that we have designed these, designed these apps to just embed natively, to plug into our existing CX applications. So if you're a marketer, you're a service professional, you're a sales professional, you can get value out of this day one. You've got a tremendous data set. You've got real-time, adaptive artificial intelligence and it plugs right into your existing apps. It's a win-win. Take your first party data, take your third party data, combine it together, put some decision science on there, some high bandwidth, incredible scale infrastructure and you're getting, you're starting to get to one-to-one marketing. You're freeing your marketing teams from being data analysts and segmenting and trying to get insight and you're letting the machine do that work and you're freeing up, you're freeing up your human capital to be thinking about higher-level tasks, about offers and merchandising and creative and campaigns and channels. >> Well, the way we think about it, Des, and I'll test you on this, is we think ultimately the machines are going to offer options. So they're going to do triage on a lot of this data >> Des: Right, right. >> and offer options to human decision-makers. Some of the discretions, we see three levels of interaction, >> Des: Yeah. >> Automated interaction, which, quite frankly, we're doing a lot of that today in finance systems. >> Des: Yes. >> But then we get to autonomous vehicles, highly deterministic networks, highly deterministic behaviors, >> Des: Right. >> that's what's going to be required in autonomy. No uncertainty. Where we have environmental uncertainty, i.e. that temperature's going to change or I, some IoT things are going to change, that's where we see the idea of turning the data and actuating it in the context of that environmental uncertainty. >> Des: Right. >> We think that this is all going to have an impact on the human side, what we call systems of augmentation, >> Des: Right. >> where the system's going to provide options to a human decision-maker, the discretion stays with the human decision-maker, culpability stays with the human decision-maker, >> Des: Right. >> but the quality of the options determine the value of the systems. >> So the augmentation is-- >> The augmentation's great. >> So let me give you a great example of that with AIA. So, take for example, you're a pro photographer and you got a big shoot the next day and your camera, your main camera you bought three months ago, it breaks. And you buy all your stuff at photog.com and you call 'em up and what could happen today? "Hi, what's your account number? "Who are you? "Wait, let me look you up, OK. "I'm sorry, I'm not authorized to get you a return." You know, boom, and the person's like, "I'm never going to buy from them again." Right, it's that moment of truth. Contrast that with a, 'cause the person making that decision, if it was the CEO getting that call, the CEO would be like, "We're going to get you a camera immediately." But that person that they're talking to is five levels down in a call center, Bismarck, North Dakota. If that person had AI, adaptive intelligent apps helping them out, then the AI would do the work in the background of analyzing the customer's lifetime value, their social reach, so their indirect lifetime value. It would look at their customer health, how many other services issues, that they have. It would look at, are there any warranty issues or known service failure issues on that camera and then it would look at a list of stores, that were within a five mile radius of that customer, that had those cameras in stock. And it would authorize an immediate pickup and you're on your way. It would just inform that person and enable them to make that decision. >> Even more than that, and this is a crucially important point, that we think people don't get when they talk about a lot of this stuff. These systems have to deliver not only data, but also authority. >> Exactly. The authority has to flow with the data. >> Des: Right. >> That's one of the advantages-- >> On both sides, by the way, on the identity and-- >> On both sides. >> And I think that employee wants that empowerment. >> Absolutely. >> No one wants to take a call and not make the customer happy, right. >> Peter: Absolutely, >> Yeah. >> because that's a challenge with some of the bolt-on approaches to some of these big applications, is that, yeah, >> Exactly. >> you can deliver a result, but then how is the result >> How is it manifested? >> integrated into the process >> Right. >> that defines and affords authority to actually make the decision? >> OK, so let's see, where are we on the progress bar then. because we had a great interview yesterday with the CMO from Time Warner. >> Yeah. >> OK, Kristen O'Hara, she was amazing. But basically, there was no old way of doing data, they were Time Warner, (laughs) they're old school media and they set up a project, you guys came in, Oracle came in, and essentially got them up and running, and it's changed their business practice overnight. >> Des: Right, right. >> So, and the other thing we heard yesterday was a lot of the stuff that was holy grail-like capabilities is actually being delivered. So give us a slice-and-dice what's shipping today, that's, that's hot and where's the work area that's road-mapped for Oracle? >> Sure, well-- >> And were you guys helping customers? >> Sure, I'll talk about a couple of examples, where we're helping customers. So, Denon and Marantz, high end audio company, brand's been around 100 years. The way music is delivered, is consumed, has changed radically in the last 20 years, changed radically in the last 10 years, changed even more radically in the last five years, so they've had to change their business model to keep up with that. They are embedding Oracle IoT Cloud into every product they sell, except their headphones, so all their speakers, all their AV receivers and they are using IoT data and Oracle Service Cloud to inform, not only service issues, like for example, they are, they're detecting failures pro-actively and they're shipping out new speakers, before they fail or they're pushing firmware to fix the problem, before it happens. They're not only using it to inform their service, they're using it to inform their R&D and their sales and marketing. Great example, they ship wireless speakers, HEOS wireless speakers, highly recommend 'em, I bought 'em for my kids for Christmas, they're the bomb. But customers were starting to... They were getting a lot of failures in these wireless speakers. They looked up the customer data, then they looked up the IoT data. They found that 80% of the speaker failures, the products were labeled Bathroom as location in the configuration of their home network setup and what they realized was that customers were listening to music in the bathroom, which is a use case they never thought of and the speakers weren't made to be water or humidity-proof, so they went to the R&D department, 14 months later, they ship a line of waterproof HEOS speakers. The second thing is they found people, who were labeling their speakers, Patio, they were using it on the patio, they didn't even have a rechargeable battery on it, so they came out with a line with a rechargeable battery on it. So they're not only using IoT data, for a machine maintenance function, >> John: 'cause they were behaving-- >> they're using IoT data to inform, inform R&D and they're also doing incredible marketing and sales activities. We had Don Freeman, the CMO of Denon on the main stage yesterday, talking about this great, great stuff they're doing. >> And what's the coolest thing this week, that you're looking at, you're proud of or excited about? >> I'm excited about a lot of stuff, John. This week is realized, you alluded to this week has been really, really fun, really great, a lot of buzz, obviously a lot of buzz around adaptive, intelligent apps and we've talked about that. But I would say also beyond a doubt, that intelligent apps for CX, we've introduced some great things in our Service Cloud, the capability to have a video chat, so Pella Windows was also on one of our panels today and they were talking about the ability for, to solve a service issue, the ability to show a video of what's going on, just increases the speed with which something can be diagnosed so much faster. We're integrating on the Service Cloud, we're integrating with WeChat and we're integrating with Facebook Messenger. Now, why would you do that? Well again, it comes back to this era of the empowered consumer. It's not enough that a company just has a website or an 0800 number that you can go to for support. Consumers are spending more time in social messaging apps, than they are on social messaging sites, so if the consumer wants to be served on Facebook Messenger, 'cause they spend their time on it, the brand has to meet them there. >> John: Yeah. >> The third thing would be the ability for the Marketing Cloud and Service and Sales Cloud, we've got chat bots, voice-driven, text-driven, AI-driven, so mobile assistant for the sales professionals, so you can input data on the road, "Hey, open an account, here's the data "for the transaction here what's going on." >> John: Yeah. >> Incredible, incredible stuff going on all over the stack. >> I think the thing, that excites me, is I look at the videos from last year and the theme was, "Man, you guys have "all these awesome acquisitions," >> Des: Right. >> "But you have this opportunity with the data," and you guys knew that and you guys tightened that together and doubled down on the data >> Des: Yeah, with banking, yeah-- >> and so I thought that was a great job and I like the messenging's clean, I think but more importantly is that in any sea change, you know, we joke about this, as we're kind of like historians and we've seen a lot of waves, >> Des: Right, for sure. >> and all these major waves, when the user's expectations shift, that's the opportunity. I think what you guys nailed here is that, and Peter alluded to it as well, is that the users are expecting things differently, completely differently. >> Let me share a stat with you. 50% of the companies that were in the Fortune 500 in the year 2000, are either out of business, acquired, gone, 50% and those companies, >> Dab or die. >> Blockbuster, Borders, did they stay relevant? >> John: Yeah. I think changing business practice based on data is what's happening, it's awesome. Des Cahill, here on The Cube. More live coverage, day two of Modern CX, Modern Customer Experience, #ModernCX. This is The Cube, I'm John Furrier with Peter Burris, we'll be right back. (dynamic music)

>> Narrator: The Cube presents On The Ground. (techno music) >> Hello and welcome, I'm Peter Burris With SilconANGLE Media Wikibon, and we're here today doing an on the ground, very important on the ground at Oracle's headquarters. This segment we're talking to Bhagat Nainani who is the group vice president of product development in Oracle's IOT organization. Welcome to The Cube. >> Thank you Peter. >> Now we've got a lot to talk about and because IOT is obviously at the fore front of many people's minds. It's one of the major initiatives happening in business, although a lot business people tell us that when somebody starts throwing IOT concepts at them they're not quite sure exactly what the parameters or what it means. So let's start here. A lot of hype about IOT, what does it mean to Oracle and Oracle's customers. >> Yes so there is definitely a lot of buzz about IOT and it is effecting a lot of industries whether it be manufacturing, transportation, home automation, fleet management, and we expect around 50 billion devices to be connected in the next two to three years and even the devices already connected to the edge and reading over 5 zettabytes of data and very little of that is actually-- >> Peter: Zettabytes. >> Exactly. >> So zettabytes is, megabytes, gigabytes, terabytes. >> Exabytes, then zettabytes. >> Lot of data. >> Lot of data and very little of that is being actually used. And if you look at top any analyst, it's they project somewhere between a one to five trillion dollar market right. But you know numbers aside, there is real business value here. I mean some companies are looking at IOT to improve operational efficiencies. Others want to use IOT to improve the customer experience or create new business models and new revenue streams. So there are clear opportunities here and that's what's affecting a lot of these organizations to the IOT. >> Now as a company tries to do something as complex as introducing a business model, they're going to need a lot of new technology as well as a lot of new good ideas. So what is Oracle's approach to engaging customers in this market place? >> So if many of our customers are going through these digital transformation or industry for all initiatives if you will. And there's some common factors in which in when it comes to IOT. Things like machine safety, productive, productive maintenance. Production reliability, worker productivity. Supply chain optimization. And all of these need extensions to existing applications or new types of applications. So Oracle's approach to IOT is to provide IOT enabled smart applications for things like manufacturing, fleet management, asset monitoring, equipment prognostics things like that. >> But that's much more than Oracle is currently providing right now. >> Exactly. >> So tell us a little bit about how this IOT ecosystem which is very broad, very complex, touches a lot of different parts of business, is embracing Oracle and how Oracle's trying to set up this appropriate partnerships so that customers can in fact get a complete solution. >> Sure, so, if you look at companies embarking on a journey to IOT, we see them go through sort of multiple phases. They start with just connecting their assets. You know so they have assets sitting on the field not connected to the business systems. They start connecting them so that they can get real time visibility for the assets and they can react more quickly to any problems that occur. So now they've reduced the time to react to any issues. That gives them sort of immediate ROI. But soon after they want to move to more of a proactive monitoring. So they're collecting information from all these assets and they want to do predictive analytics, and reduce unplanned down time and predict failures before they actually happen. Once they do that, then they want to transition to using IOT data into their core business processes. Whether it be back office, supply chain processes, ERP processes, or customer facing processes like CRM. Where they start to use IOT data to provide differentiated experiences. And the IOT offerings that we provide essentially help them go through this journey from connected assets all the way to service excellence. >> So when we're talking about connected assets, we're talking about the machinery, as well as the other resources at least that are either handling or running operations but also handling customer engagement. Now this suggests that there is going to be an intimate relationship between the technologies that are collecting all this data, sensing all this data, transmitting all this data, and the systems that are actually responsible for turning these feeds into something that is recognizable by the business as capable of generating a decision. Tell us a little bit about the relationship as you see it between IOT and big data. >> So recently we released an IOT Cloud service and the main difference in our approach to IOT versus many of the other vendors is we look at it from the applications out, as you said from the business out. We want to take the insides from these devices that data coming and make that actionable within your enterprise business processes all right. So the goal of IOT Cloud service is to actually bridge this gap between the operational technology and the IT world. And we do this be providing out of the box applications as well as platform components. I talked about applications like asset monitoring earlier. So there we have a out of the box app that helps you answer questions like how are my assets being used, where they're held. Do they need to be serviced. You look at it monitoring it's about how are my systems doing on the factory floor. Collect data from them constantly so that I can decide which ones to service in the next maintenance window right. Now I'm collecting all this data. This has to be backed by sort of platform components and the platform components fall in sort of this three broad categories right. Connect, analyze, integrate. So the connect part is where you bring the device, on board the devices. And provide bi-directional connectivity to them. So we have this concept called device virtualization which really simplifies how you interact with these devices. And provides a softer representation of those devices in the Cloud so now any application interacting with it doesn't need to know the gateways and the protocols that are used. On the analyze side there are two types of analysis. There is real time analysis which is done on the event stream. And then there's big data analysis that's done where you combine the real time stream along with contextual data sitting in your data lakes or your ERP systems. And then you apply predictive algorithms on top of it. We have a bunch of capabilities here. We provide business user friendly interfaces to model these event crossing functions. And we also provide built in algorithms using our big data services for things like equipment efficiency, remaining useful life, things like that. Right so, big data and IOT are quite related. If you look at the big data techniques like Spark, Hadoop, or some of these services, the type of data they all put it on, data with high velocity, high volume, high variety, IOT data has all the same characteristics of big data right. Now once you've analyzed this data, you also want to integrate it with your back end systems and that's where we provide out of the box connectivity with our SaaS apps as well as our E-business suite and our JD Edwards applications which are commonly used by our enterprise customers. You have the connectivity piece, you have the analytics, and you have the integration. You use these capabilities along with some of our other PaaS services like our business intentions Cloud service or our mobile Cloud source ability or IOT application. >> So you mentioned that these tools are easy to use. You also mentioned the distinction between IT and OT. This combination of IOT and big data analytics is touching a lot of different parts of the business. You have to be able to talk to operational technology people, IT people, you have to be able to talk to developers, you have to be increasingly be able to talk to business people. Historically, this all comes together when developers are engaged to create value out of all these piece parts. Talk a little bit about how Oracle is bringing greater sport to that developer community to bring this all together and turn it into value for a corporation. >> Sure so let's take an example here. Let's take the manufacturing example and then we'll I'll talk about manufacturing and then talk about some of the challenges there and how we enable that. You know we follow it up with community. In manufacturing world when you're doing these IOT kind of solutions, there's a common analysis done called a five M analysis. Man, machine, method, material, measurements. Now if you look at man, method, materials, all of this information is sitting in your ERP system or your databases. Where you have who operated on this system, what training did they receive, what techniques did they use, what raw material was used, who was the supplier. You look at machine and measurements, this is raw data coming from the equipment IOT data and measurements around the tests that were done on the system. You need to combine both of these to create a real predictable analytics solution for manufacturing right. Now today a lot of this has to be done using sophisticated sort of data scientists and you need sophisticated developers who can operate on these various big data components, whether it be Spark, Kafka, Cassandra, all of these. What we are doing at Oracle is trying to provide sort of tools and frame works that abstract away some of that and are targeted towards the citizen developer or the business users. So you don't need to have sophisticated data scientists. Right, we have tools such as big data discovery, big data prep, and other tools such as Apache learning which make it easy to build these kind of models. Now if you are a developer who wants to write all of this from scratch, you will then when you're dealing with different types of structure and unstructured store, you need an abstraction layer that simplifies how you interact with this, how you query it. And so we are providing sequel like interfaces that they're already familiar with. So whether it's a structured store or unstructured store and well, it doesn't matter which native query interface I suppose. You provide a standardized list so that they easily operate on that data. Now even that takes a long time to build an IOT solution so that's where our out of the box applications come in and by providing these out of the box applications for specific use cases around asset monitoring, equipment prognostics, supply chain, we are really trying to reduce the time it takes for you to deploy an IOT solution because these applications already have those built in algorithms. All we are doing is configuring them, providing some parameters, but you don't need to write the algorithm. You take your industrial gateways, connect the devices, and you're ready to go. >> So do you think that there's going to be new applications utilizing some of these new methods or models, or is it going to be just an extension of a lot of the traditional, more operational, financial oriented applications that are already in place. >> It's a combination. So when it comes to things like you know existing maintenance applications, or existing service applications, the interfaces of them used to be you know manual where someone would get a call and they would enter an order into a system or a work order. With IOT those are being extended to have new channels. So for example in our service Cloud, we have added a new channel with IOTs so now the equipment itself reports a problem and when the service technician gets a work order, they already know which part has gone bad. So the whole manual step is taken away. There are other areas where companies are trying to transition to this product as a service model, right. And so those need new ways of monetizing, new types of application for your capture and utilization. There you will need some new application. So it is a combination of the two. >> Now you mentioned earlier the five M model. Man, materials, machines. >> Method. >> Measurement. And method. Just to give you to date myself, the first class on technology I took talked about the four M plus I model. Men, materials, machines, money, and information. So didn't have method. But let's come back to at least what we think at Wikibon, SiliconANGLE, is still the most important piece, men. Or people, the individuals. We're talking about the, we're talking about IOT here, but presumably we're going to also start bringing in those crucial interfaces so that people become a more engaged feature of how these loops are working. Between sensing, and analyzing and printing models, and enacting something in the market place. Tell us a little bit about how Oracle sees the role that people are going to play in these transitions that we're talking about. >> So if you look at the service industry people right. I mean this I give you the example of automatically creating a work order. But with IOT enabled devices, it is transitioning to more of a self service, model or assisted service model where now people have much more information available to them at their fingertips when they are actually looking at problems. Whether it be some part that has failed or a customer has reported an issue, now you can interact with these devices remotely and so now you have significant reduced the time to actually act on any problems and overall improve the customer experience. There is the people part in sort of creating those models and providing sort of information to enrich those models because you know a data scientist can get all the information from the devices and create the models, but you also need the experts who know you know how these systems are supposed to behave. How they were designed, how they behave under certain environment conditions. You take that into account along with the real data that you're getting and that way you can predict how this particular equipment will behave in the field right. >> So Oracle open world is just around the corner. One quick idea. What are you looking for from an Oracle IOT perspective. >> From an Oracle IOT perspective, one of the things we were really looking forward to is the applications that you know we are launching as well as many other applications within Oracle who have now embedded IOT within their offering. So to make those applications smarter and you hear a lot about that at open world. >> And that is one of their key tests of adoption is how fast that happens. Bhagat Nainani thank you very much for being here. Group vice president for IOT product development at Oracle. Again, Peter Burris from The Cube. Thank you very much. >> Baghat: Thank you Peter. (techno music)