>> Live from the Walt Disney World Swan and Dolphin Resort in Orlando, Florida, it's theCUBE, covering Splunk .conf2016. Brought to you by Splunk. Now, here are your hosts John Furrier and John Walls. >> And welcome back here on theCUBE. The flagship broadcast of SiliconANGLE TV where we extract a signal from the noise. We're live at conf2016 here in Orlando, Florida on the show floor. A lot of activity, a lot of excitement, a lot of buzz and a really good segment coming up for you here. Along with John Furrier, I'm John Walls and we're joined by two gentlemen from the Herjavec Group, Robert Herjavec. Good to see you, sir. >> Greetings. Thank you for having us. >> The CEO, and Atif Ghauri is Senior VP at Herjavec. Good to see you, sir. >> Yes. >> First off, Robert, congratulations. Newly married, your defense was down for a change. Congratulations on that. (laughter) >> Oh thank you. It was wonderful. It was a great wedding, lots of fun but casual and just a big party. >> Yeah, it was. Looked like, pictures were great. (laughter) People obviously know you from Shark Tank. But the Herjavec Group has been, really, laser focused on cyber security for more than a decade now. Tell us a little bit about, if you would, maybe just paint the broad picture of the group, your focus, and why you drilled down on cyber. >> Yeah, I've been in the security business for about 30 years. I actually helped to bring a product called CheckPoint to Canada firewalls, URL filtering, and that kind of stuff. And we started this company 12 years ago, and our vision was to do managed services. That was our vision. No other customer's vision, but our vision. And we thought we'd do $5 million in sales in our first year and we did $400000. The market just wasn't there. SIEM technology, log aggregation isn't what it is today. I mean, I think at the time, it was enVision. What was it called? >> Yeah, enVision. >> enVision. And then RSA bought them. That was really the first go-to-market SIEM. Then you had ArcSight and Q1. So our initial business became around log aggregation, security, writing parsers. And then over time it grew. It took us five years to get to $6 million in sales, and we'll do about $170 million this year. We went from a Canadian company to really a global entity. We do a lot of business in the States, UK, Australia, everywhere. >> But you're certainly a celebrity. We love havin' you on theCUBE, our little Shark Tank in and of itself. But you're also an entrepreneur, right? And you know the business, you've been in software, you've been in the tech business, so you're a tech athlete, as we say. This world's changing right now. And I'm certain you get a lot of pitches as entertainment meets business. But the fact that the entrepreneurial activity, certainly in the bay area and San Francisco, the Silicon Valley, where I live, and all around the world, is really active. Whether you call the programmer or culture or just the fact that the cloud is allowing people to start companies, you're seeing a surge in entrepreneurship in the enterprise. (laughs) Which is like, was boring in the past, you know? You just mentioned CheckPoint in the old days, but now it's surging. Your thoughts on the entrepreneurial climate? >> I dunno if the enterprise entrepreneurship element is surging. By the way, I'm going to say intrepreneur, just the way I say it. Cuban always makes fun of me. (laughter) We don't say it like that in America! I'm like, screw off! (laughter) >> That's how you say it! >> I want to say it the way I want to say it. >> Well, internal entrepreneurs, right? Is that what you mean by intrepreneurship? >> Well, no. I'm just, it's just the way I say it. >> It's a Canadian thing. >> But business to business enterprise, we've always been in the enterprise business. So we're seeing a lot of growth in that area, a lot of VC money's going into that area, because it's more, you know, you can measure that level of return and you can go and get those customers. But on our show, we're a bubble. We don't do a lot of tech deals like we're talking because it's boring TV. Tech people love tech, consumers love the benefit of tech. You know, no consumer opens up their iPhone and says, oh my gosh, I love the technology behind my iPhone. They just love their iPhone. And our show is really a consumer platform that is-- >> It's on cable TV, so it's got a big audience. So you got to hit the wide swath-- >> We're one of the highest-rated shows on network television. Eight years, three Emmys. You know, it's a big show now. And what we've all learned is, because Mark Cuban and I are tech guys, we used to look for stuff we know. We don't invest in stuff we know any more. We invest in slippers, ugly Christmas sweaters, food products, because if you can tap into that consumer base, you're good to go. >> So bottom line, has it been fun for you? I mean, the show has been great. I mean, obviously the awards have been great. Has it been fun for you? What's it been like, what's the personal feeling on being on the Shark Tank. >> You know, filming is fun, and hanging out is fun, and it's fun to be a celebrity at first. Your head gets really big and you get really good tables at restaurants. There's no sporting venue-- >> People recognize you. >> Yeah. >> You get to be on theCUBE. (laughter) >> I get be on theCUBE. >> Doesn't happen every day. >> You get to go everywhere. But after a while it gets pretty dry. But it really helps our brand. We compete, typically, against IBM, Verizon, and you know, the CEO of IBM, you're not going to see him selling his security. >> Well I know they're doin' a lot, spending a lot of cash on Watson, trying to get that to work, but that's a whole 'nother story. But let's get down and dirty on Splunk. You're here because you're doin' a talk. Give a quick take on what you're talking about, why are you here at .conf for Splunk? >> Yeah, we're doing a talk on data transformation. The world today is about data. And the amount of data points and access points and the internet of things, it's just exponential growth. The stat I always love, and Atif's heard it 1000 times is, there's roughly three billion people on the internet today, and there's roughly six billion or seven billion IP addresses. By 2020, according to the IPV Committee, there'll five, six billion people connected. And hundreds of trillions of IP addresses. >> And the IoT is going to add more surface area to security attacks. I mean, it used to be, the old days, in CheckPoint, the moat, the firewall, backdoor, frontdoor. >> The idea of the perimeter is gone now. There is no such thing as a perimeter any more, because everything you can access. So a lot of work in that area. And all of that comes to data and log aggregation. And what we've seen for years is that the SIEM vendors wanted to provide more analytics. But if you really think about it, the ultimate analytics engine is Splunk. And Splunk now, with their ESM module, is moving more into the security world and really taking away market share. So we're very excited by, we have a great relationship with the Splunk guys, we see nothing but future growth. >> And you're using Splunk and working with it with your customers? >> We do, we've been using Splunk for a while. We have a private cloud. Tell us a little bit about that. >> Yeah, so we eat our own dog food. So not only do we sell Splunk, but we also use it in-house. We've been usin' it for over five years, and it powers our analytics platform, which is a fancy way to say, reduces the noise from all the different clutter from all the IoT, from all the different type of alerts that are comin' in. Companies need a way to filter through all that noise. We use Splunk to solve that problem for us internally, and then, of course, we sell it and we manage it for Global 2000 customers, Fortune 100 companies all over the world. >> Tell us what about the role of data, 'cause data transformation has been a big buzzword it's a holistic message around businesses digitizing and getting digital assets in front of their customers. We have a big research division that does all of this stuff. By the end of the day, you know, the digitization business means you're going to have to go digital all the way. And role of data is not the old data warehousing days, where it's fenced away, pull it in, now you need data moving around, you need organic sharing of data, data's driving policies and new pattern recognitions for security. How do you guys see that evolving? How do you talk to your customers, because in a way, the old stuff can work if you use the data differently. We're seeing a pattern, like, hey, that's an algorithm I used 10 years ago. But now, with new data, that might be workable. What are some of the things that you're seeing now that customers are doing that you talk to that are leveraging data, like Splunk, in a new way? >> Well, that's really where Splunk adds so much value, because a friend of mine is the dean of USC. And he has a great saying, more data is not necessarily more information. And so, the mistake that we see customers making a lot is they're collecting the data, but they're not doing the right things with it. And that's really where Splunk and that level of granularity can add tremendous value, not just from logging, but from analytics and going upstream with it. >> Yeah, and also, to that point, it's just automation. There's too much data >> That's a great point. >> And it's only going to get bigger, right, based on that stat Robert rattled off. Now, we need some machine learning analytics to move it further. And all points aside, machine learning isn't where it needs to be right now. Today in the market, it still has a long way to go. I would call it a work in progress. But however, it's the promise, because there's too much data, and to secure it, to automate behavior, is really what what we're looking for. >> The example I saw is the innovation strategy's comin' to take, and they're growin' with mobility, growin' with cloud, increase the surface area, IoT. But the supervised areas of the enterprise were the doors, right? Lock the doors. And perimeter is now dead. So now you have an unsupervised environment and the enterprise at risk. Once the hackers get in, they're havin' their way. >> The internet is, like, a kindergarten playground where there are no rules and the teacher went home at lunch. (laughter) That is the internet. And kids are throwin' crap. >> And high school. I think it would be high school. Kindergarten through high school! >> And you have different-aged kids in there. >> It's chaos, bedlam! >> Very well said. The internet is chaos, but by nature, that's what we want the internet to be. We don't want to control the chaos because we limit our ability to communicate, and that's really the promise of the internet. It's not the responsibility of the internet to police itself, it's the responsibility of each enterprise. >> So what new things are happening? We're seeing successes. Certainly, we're reporting on companies that are being successful are the ones that are doing reverse of what was once done, or said differently, new ways of doing things. Throwin' out kind of tryin' to do a hybrid legacy approach to security, and seeing the new ways, new things, new better cat and mouse games, better honeypots, intelligent fabrics. What do you guys recommend to your customers and what do you see, in your talk, this digital transformation's definitely a real trend, and security is the catastrophic time bomb that's ticking for all customers. So that's, it dwarfs compliance, risk management, current... >> Well, I dunno if that's necessarily true, that it's a time bomb. You know, the number one driver for security, still, is compliance. We sell stuff people don't really want to buy. Nobody wakes up and the morning and says, yeah, I want to go spend another $5 million on security. They do it, frankly, because they have to. If none of their competitors were spending money on security, I don't think most enterprises would. I mean, whenever you have to do something because it's good to do, you have a limited up cycle. When you do something because there's a compliance reason to do it, or bad things happen to you, you're really going to do it. >> So you think there's consumer pressure, then, to have to do this, otherwise-- >> Interesting stat, the Wall Street Journal did a study and asked 1000 people on a street corner in New York if, for a hamburger, they will give away their social insurance number, their home number, and their name. 72% of people gave out that information freely. >> Better be a good hamburger. (laughs) >> Back to your point, though, I want to get a-- >> So I think consumers have an expectation of security, and how they police that is they simply go to somebody else. So if you're my retailer and you get breached, you know what I'm going to do? I'm going to go next door. But I think that the average consumer's expectation is, security's your responsibility, not mine. >> Okay, so on the B to B side, let's get that. I wanted to push you on something I thought I kind of disagreed with. If compliance, I agree, compliance has been a big part of data governance and data management. >> Yeah, PCI has been the biggest driver in security in the last five years. >> No doubt. However, companies are now sharing data more with other companies. Financial institutions are sharing core data with other financial institutions, which kind of teases out the trend of, I'll give you some of my data to get, to fight the fraud detection market because it's a $1 trillion problem. So as you start to see points of growth where, okay, you start to see people go outside their comfort zone on compliance to share data. So we're tryin' to rationalize that. Your thoughts? I mean, is that an indicator? Do you see that as a trend, or, I mean, obviously locking down the data would be, you know. >> I think it's challenging. I mean, we were at the president's council on security last year at Stanford. And you know, President Obama got up there, made some passionate speech about sharing data. For the goodness of all of us, we need to share more data and be more secure. I got to tell you, you heard that speech and you're like, yeah baby, I'm going to share my data, we're all going to work together. Right after him, Tim Cook got up there (laughter) and said, I will never share my data with anybody in the government! And you heard him, and you're like, I am never sharing my data with anybody. >> Well there's the tension there, right? >> Well, this is a natural-- >> Natural tension between government and enterprise. >> Well, I think there's also a natural tension between enterprises. There's competitive issues, competitor pressures. >> Apple certainly is a great case. They hoard their data. Well, this is the dilemma, right? You want to have good policy, but innovation comes from experimentation. So it's a balancing act between what do you kind of do? How do you balance-- >> Yeah, it's a great time to be in our space. I mean, look at this floor. How many companies are here? Splunk is growing by 30%, the show itself, 30% per year. They're going to outgrow this venue next year and they're going to go, probably, Vegas or somebody. I think that's exciting. But these are all point products. The fastest-growing segment in the computer business is managed services, because the complexity in that world is overwhelming, and it's extremely fragmented. There's no interlinking. >> Talk about your business in there right now. What are you guys currently selling, how many employees do you have, what's the revenues like, what's the product mix? >> Yeah, so we are a global company. So we have 10 offices worldwide and close to 300 employees. We're one of the fastest-growing companies in North America. We sell, our focus is managed security services. We do consulting as well as incident response remediation, but the day-to-day, we want your logs, we want to do monitoring, we want to help with-- >> So you guys come in and do deployments and integration and then actually manage security for customers? >> We do the sexy of gettin' it in, and then we also do the unsexy of managing it day-to-day. >> Atif, nothing unsexy about our work. (laughter) >> It's all sexy, that's what theCUBE show's about. >> It's all sexy! >> That's why theCUBE's a household name. We have celebrities coming on now. Soon we'll be on cable. >> That's right! This will be a primetime show. (laughter) >> Before we know it! >> That's funny, I got approached by a network, I can't tell you who, big network with a big producer to do a cybersecurity show. And so, they approached me and they said, oh, we think it's going to be so hot. It's such a topical thing. So they spent a day with me and our team to watch what we do. There is no cybersecurity show! (laughter) They're like, do you guys do anything besides sit on the computer? >> You have a meeting and you look at the monitor. It's not much of a show. >> Does anybody have a gun?! (laughter) >> It's not great for network TV, I think. >> Build a wall. >> Someone has to die in the end. That has to be network TV. And yeah, but I mean, there's a problem. There's 1.4 million cyber jobs open right now. And that's not even including any data science statistics. So you know, so we're reporting that-- >> I'm sure it's the same thing in data science. >> Same problem. How do you take a high skill that there's not enough talent for, hopefully, computer science education, all that stuff happens, and automate it. So your point about automation. This is the number one problem. How do you guys advise clients what the hell do they do? >> You know, automation's tough. We just had this meeting before we got on here, because in our managed service, it's people-driven. We want to automate it. But there's only a certain amount of automation you can do. You still need that human element. I mean, if you can automate it, somebody can buy a product and they're secure. >> Machine learning isn't where it's supposed to be. Every vendor aside, machine learning's not where it needs to be, but we're getting there. Having succinct automation helps solve the cybersecurity labor shortage problem, because the skill level that you hire at can go lower. So you reduce the learning curve of who you need to hire, and what they do. >> That's a great point. I think the unsupervised machine learning algorithms are going to become so much smarter with the Splunk data, because they are, that's a tough nut to crack because you need to have some sort of knowledge around how to make that algorithm work. The data coming in from Splunk is so awesome, that turns that into an asset. So this is a moving train. This is the bigtime. Okay, go step back for a second, I want to change gears. Robert, I want to get your thoughts, because since you're here and you do a lot of, you know, picking the stocks, if you will, on Shark Tank, in the tech world, our boring tech world that we love, by the way. >> We love it too. >> How do you, as someone who's got a lot of experience in cycles of innovation, look at the changing digital transformation vendor landscape, Splunk, companies like Oracle tryin' to transform, Dell bought EMC, IBM's pivoting, Amazon is booming. How do you look at the new digital enterprise, and how do you look at that from, if you're a customer, an investor, where's the growth stocks, where's the growth companies, what's the growth parameters, what's your thoughts? >> One of the reasons a lot of our industry, why I got into tech was I had no money, my dad worked in a factory, my mom was a receptionist. And the old adage is, to make money, you need money. To get ahead, it's not what you know, it's who you know. I didn't know anybody. And the value of tech is tech transforms every three years. We follow these cycles where we eat our own young and we throw away stuff that doesn't add value. Tech is the great equalizer, 'cause if you don't add value, nobody cares. And you know, when I'm starting out as a guy with a small company, I love that! We're going to kick ass, we're going to add value. Now that we're a little bigger-- >> Well, when you're a young company you can eat someone's lunch, because if they're not paying attention, you can come in and-- >> For sure. It gets harder as you get bigger because now we're the big guys that somebody in their basement's tryin' to take out. But you know, we see tremendous innovation in security. If you look back three years, who were the leaders in the SIEM space? ArcSight, Q1, Nitro to a lesser degree, and enVision. Today, does RSA have a strategy around a SIEM? They have Netwitness, you know, security analytics, which is kind of a SIEM. Q1 is in the throes of the IBM machine, somewhere in their gut, nobody knows. ArcSight, who buys ArcSight anymore? It's so complicated. Who's the leader? Splunk! >> So back to the old classic team. Obviously, you have good people on the management team. Product matters now, in tech, doesn't it? More than ever. Obviously, balance sheet. Okay, let's get back to the data transformation. So you know, data is so critical now, and again, it's more from that data warehouse, which still is around, but to real-time data having value, moving it into different applications. Question is, how do you value data? I mean, you can't put it on the balance sheet. I mean, people value factories. GE said, we have all this investment in machines and assets. They worry about someone getting their data and doing a judo move on them. So data is truly an asset that's flying out of their network. How does companies value data? Can it ever be on the balance sheet? How do you look at that? >> I don't think data, in of itself, has any value. It's the effect of the data that has the value. And it's a very singular, it's what somebody does to it. Whatever the data is worth to you, from a business perspective, it's worth fundamentally more to an outside bad party because they can package that data and sell it to a competitor, a foreign government, all those kind of places. So it's the collection of raw data and applying it to something that has meaning to a third party. >> So it's like thermodynamics, really. Until it's in motion, it's really not worth anything. I mean, that's what you're saying. Data's data until it's put to work. >> Right, I don't think you're ever going to see it on a balance sheet as a hard, core value, because it has to have a transformative value. You have to do something with it. It's the something. >> So pretend you're in Shark Tank and you're a data guy, and you say, boss, I need more budget to do security, I need more budget to expand our presence. And the guy says sorry, I need to see some ROI on that data. Well, I just have a gut feeling that if we move the data around, it's going to be worth something. Oh, I pass. You can't justify the investment. So a lot of that, I mean, I'm oversimplifying it, but that's kind of like a dialogue that we hear in customers. How do you get that-- >> What I always tell CIOs and CCOs, it's challenging to get budget to do a good thing or the right thing. It's easier to get budget to do the necessary thing. And so, necessary is defined by the nature of your business. So if you make widgets and you want to get more budget to protect the widgets, no one cares. No one's sitting around, and like oh, are my widgets safe? They are, to certain degree, and they'll have limited budget for that. But if you go to them and say, you know what, we have a risk that if somebody can attack our widgets, we're going to be down for three days. And being down for three days or three hours has a dollar cost of $5 million. I need an extra $2.5 million to protect that from happening. As a business guy and a CEO, I understand that. >> That's great advice. >> And that's the biggest challenge, still, with security people is, we're technical people. We're not used to talking to business guys. >> It's like house insurance, in a way, or insurance. You invest this to recover that. >> It's a great analogy. You know, I used to race cars, and I had a life insurance premium for key man insurance. And my insurance agent comes along and says, you should buy a bigger policy. I'm like, I don't need a bigger policy. It's so much money, we're okay. And then he says to me, you know, if you die in a racecar, I'm not sure you're covered. (laughter) But if you pay me another $10000 a year in coverage, you're covered. Did I buy it? Absolutely. And it's the same analogy. >> That's very necessary. Personal question for you. So if you're, your dad had a factory, you mentioned. I saw that you mentioned that earlier. If he had a factory today in a modern era of IoT, and you were going to give him a digital transformation consulting project, how would you advise him? Because a lot of people are taking their analog business and kind of digitizing it. Some already have sensors in there. So you see it in manufacturing, and certainly, the industrial aspect of IoT has been a big deal. How would you advise your dad building a factory today? >> Yeah, so I think there's two aspects to it. One is just, you know, everything we've been talking about, data transformation, data analytics, making things better, none of those things are possible unless you're actually collecting the data. It's like, customers come to us and say, you know what, we don't want you to just manage our logs and tell us what's going on, we want higher-level value. And I'm like, no, I get that, but unless you're actually aggregating the logs, none of the upstream stuff matters. So first thing is, you have collect the data. Whether that's sensors, old devices, mechanical devices, and so on. The second part of it is, the minute you open up your factory and open up the mechanical devices and attach them to a PC or anything that's network-based, you're open for risk. And so, we're seeing that now in utilities, we're seeing that with gas companies, oil companies. You know, up until a few years ago, you couldn't physically change the flow of a pipeline, unless there was a physical connection, a mechanical on-off. It was very binary. Today, all those systems are connected to the internet. And it saves companies a lot of money 'cause they can test them and stuff. But they're also open to hackers. >> Bigtime. >> Well gentlemen, we appreciate the time. >> Thank you. >> And who says tech hasn't got a little pizazz, I mean-- (laughter) >> Come on, I was on Dancing with the Stars, that's a lot of pizazz! >> It's been great! >> You guys are exciting, but you are, no! >> Dancing with the Stars, of course! >> All right. >> Thank you very much. >> Well, thanks for bein' in theCUBE Tank, we appreciate that. >> Thank you. >> Don't call us, we'll call you. (laughter) Gentlemen, thank you very much. >> We're booked, maybe we can get you on next time. >> Okay, we're out. >> .conf2016, CUBE coverage continues live from Orlando. (electronic jingle)