>> Announcer: Live from San Francisco, it's theCUBE. Covering Samsung Developer Conference 2017. Brought to you by Samsung. (futuristic music) >> Okay, welcome back, everyone. Live here in San Francisco, this is theCUBE's exclusive coverage of Samsung Developer Conference, SDC 2017. I'm John Furrier, the co-founder of SiliconANGLE Media, co-host theCube. My next guest is James Stansberry. SVP, Senior Vice President general manager of ARTIK, IoT of Samsung, AR kid, art kid, whatever you want to call it, is the IoT piece key-note presenter today. Thanks for spending the time, thanks for coming on. >> It's my pleasure John. Thanks for having us. >> So we love the IOT story. We covered it heavily across all of our other shows we come to, but now as the edge of the network becomes human, and machines, you guys have the devices, you have the home, you have The SmartThing strategy. Everything's a device, it's everything to everything now. >> Most people think of Samsung as a consumer electronics company. What ARTIK actually is is an enabling platform to enable other devices. So we build and end to end Iot platform, which includes The Cloud. And today we re-branded it The SmartThings Cloud. Down into network devices. Gateways and inodes. So we actually enable not just Samsung products, but we enable other company's products to be connected to the Internet. Almost regardless of the market, not even consumer. >> Thomas Ko was on earlier talking about this open strategy, which is great, and he was very humble. He said look, we're going to be honest and transparent. This is the new Samsung way. We're going to (mumbles) the developers. We're going to be completely open. We're not going to try to lock you into Samsung, although we have some intelligence and tips and what not, which is cool. And I think that's going to play well with the developers. But you introduced something that was pretty compelling on stage, and this is to me, the key observation from theCUBE team, is the security module. Take us through specifically what you announced and what does it mean to the developer community and what is the impact? >> Okay, and before I do that, let me just talk about what's happening to security. We all know about Mirai and WannaCry and these things just keep happening. And in order for us to be able to stop these threats, we have to up the level of security. And what we announced today was an end-to-end security platform that utilizes the hardware that we supply, connected to our Cloud, and overlaying it on top of this hardware Cloud platform and abstracting it in such a way that is easy to implement. But it's and end-to-end security and it contains all the major components you need to be able to secure an IoT network, from basically down network. And I can explain it more it you'd like. >> Yeah, so down network means from the device. >> From The Cloud actually. >> Or from the device through The Cloud. The question that people will ask is, and this is where I'd love to get your explanation on is, they don't want Silos. They want to have the horizontally scalable nature of The Cloud but they want the specialism of the IoT device. Some software. Could be an AR application. That could be a virtual interface into a cell tower or whatever but, being done we see those all the time, but I want a full stat, but I don't want to be locked in. So want to move to something SmartThing over there. How do you guys enable that security end-to-end? >> It's really important. With the security, we don't create any proprietary solutions. As a matter of fact, if you look at we've implemented it, we use third party partners and we use standards. For example, how we do a secure over the air update to an Indo device, we actually use a standard piece of software that's specified by a standard called LW M to M. Most people, embedded designers, will know what this is. We use a public key infrastructure. We use well known code signing capability. >> FPGA, kind of thing? Field-programmable gate arrays? >> No. In terms of the code signing I'm talking about, if I write a piece of code and I want to authenticate that it's the code that I wrote that is on the device a year from now, I'll create a hash, store the hash, when I boot it, I compare that hash and make sure that no one has modified it. By the way, it's a known hack. You're inserting bad, malicious code on a device. That's one of the things you want to avoid. The other thing we use is very standardized encryption. We use TLS. Part of the HTTPS standard. And in that we use very well known encryptography. The other thing we do is we create a hardware root of trust, using a secure element. These are the same devices that are used in Smart cars today. It's not new science, it's just the smart way to do it to actually create a root of trust. >> What would you say if someone who's new to Samsung, maybe watching here today, as he knows the Samsung brand 'cause you guys now are expanding a brand, across the platform and fabric of Samsung, you're seeing it here, in the smart home, kitchen examples, smart Tvs. It's all over the place. There's no doubt what Samsung is. Explain the premise of the IoT strategy and what the goals are, what the objectives, and how does that relate to someones impression of Samsung that they know. >> I'll maybe give some insight inside Samsung. Maybe people don't realize that we really are an IoT company in many ways because inside our factories, we use IoT to run our smart factories. So we actually are a consumer. We set the goal of connecting all of our devices by 2020. The consumer products. So in order to be, IoT is connected devices. What ARTIK does, is actually a platform, that is not necessarily consumer focused but brings IoT to markets like smart factories, commercial buildings, healthcare, home appliances. It's actually multi-faceted. And not just Samsung products. We enable devices that are non-Samsung to create their own ecosystem or connect to our ecosystem. >> So a headline on siliconANGLE.com today is timely for you and I put it in context because it might have a little bit more range on the IoT side but one of our managing engineers, Paul Gillin, writes a story "Who owns the data from the 'internet of things'? "That's about to become a very big deal". So it's kind of provocative. Who owns the IoT data? That's about to become a big deal. I've read the article and what he's basically saying is you've got vehicles our there that connected. You've got smart things everywhere now. >> [James Stansberry] That's a great question. >> And there's also what do you do with the data? Do you move compute to the data? Do you move data across the network? These are physics questions, these are architectural questions, that is the bigger scheme, maybe outside the scope of STC, but lend a point or two to what's happening at the edge. >> So first of all, you have to define that data. (chuckles) Right? There's personally identified data and there's data that's been extracted from that. And I think that you're going to see some regulation around that, especially in Europe. Defining exactly what that is. From a Samsung perspective, I think it's pretty clear. We believe that the consumer owns the data. If we ever use it, it's being done with the consumer's permission. >> John Furrier: That's a very key word. >> Yeah. >> Permission based. >> Oh, of course. And I think that that's where most regulations going to go and I think that's where the industry will generally go. >> That's what we're seeing in Europe. >> And that's personally indentifying. >> Yeah, they're information. But you also have to balance out the openness of data. This is the GPRS kind of debate, right, which is you want to have a strict policy to protect the person's data, at the same time, offer organic ways to provide a great user experience with the data. And you fuel the experience with data, but the protection, it's a hard problem. >> Okay, it's even more complicated because individually some people are more open about the consumption of their data than other people. And what that actually means is the individuals have to start to manage their data. And so what does that mean, everybody has a web portal that says I have, I give this level? I don't know. And so, that's actually one of the unanswered question is how does a consumer manage their own data and other peoples access to it. >> But we think, and our indications were looking at the future, we think this is where Blockchain is relevant. Not so much the bit currency like Bitcoin or Ethereum but Blockchain is an immutable, decentralized, not just distributed, decentralized (mumbles) >> One way to actually keep track of what they're allowing, but at some point they have to specify. (chuckles) And I think there's the trick. >> This is the fun part about tech is it looks a lot of promise, looks good off the tee as they say in golf, but there's off-chain and on-chain dynamics, in terms of mining, Bitcoin. >> In the meantime, I think, people are just going to opt in. >> Yeah. >> That's how they need to get permission. >> Where society is impacting, were seeing this big time with IoT, these are norms that are coming. This is a yet to be written chapter. >> Yeah. We're going to see. You mentioned GPRS and they are going to regulate it. There will be the people who have to manage it. We'll see how that works and we'll probably evolve from that. >> The Y2K problem of our generation because there's consequences to that regulation. >> Yep. It'll probably go as well as Y2K. Which didn't go bad! (chuckles) >> It's going to be disaster. I'll say it, it's going to be a disaster. It puts extra pressure on companies, especially ones that are using Cloud, so I think this would be an example where Samsung's SmartThings Cloud, might be helpful. This is the big security. Do we need a do-over? Probably yes. >> What we will do, is we will do everything we can to secure their data and, again, going back to if they chose to allow us, or to provide the data for someone to use it, then that's up to them. But we will do everything we can to secure it on the device, in the network, and in our Cloud. >> People have things. We're walking around with things like this. That's a device. It's a Samsung, it's a j phone (ahem). I got to get the better phones so I'm working on that today. We'll get the Samsung, great new phones. >> Yeah. >> That's entertainment. That's ecommerce. That's web services kind of rolled into one. That's essentially what The SmartThings is about, pretty much, right? >> It absolutely is. Absolutely is. On the consumer side, I would say. But I would say, IoT is more than just consumer. It's healthcare. It's in hospitals. It's in factories. It's going to be in your car. It's in autonomous vehicles. >> We coined the term here on theCUBE, I think I did, e to e. Everything to everything. >> Yes. >> B to b is boring to boring. Consumer to consumer is old. So you bring them together, it's everything to everything. Exciting to exciting. >> We describe our business model as b to b so I guess I'll take it! I'll own it! >> If you look at b to b marketing, I'm not picturing marketing, (laughs) look at Facebook. Their slogan was move fast, break stuff to move fast, make sure it's secure. Boring is secure. (chuckles) B to b is exciting. You got augmented reality. You got Cloud computing. I mean literally, unlimited potential compute power that's available through Cloud. It's certainly transformative for enterprises, so we think it's going to be pretty exciting. I personally think. I just don't like the b to b thing. But that's us. (laughter) Anything else you'd like to share with the audience here on the event here? Observations, what's your thoughts? >> By the way, I appreciate the opportunity. I think the really important thing here, and maybe Thomas mentioned this, is Samsung's integrating basically five Clouds together. And these are coming from mobile, from digital display, from digital appliances, to SmartThings, to ARTIK. Being a maker of devices, and then having this open ARTIK platform, really, I believe, is going to position Samsung in a very unique way in IoT. Not just for our own products, but for people to interact with our products and create new services. So I'm really excited about it. >> I think the ecosystem opportunity is big too. One of the things we're seeing in The Cloud community here in North America, and starting to see it in China with Alibaba, is hardware configurations are now being dictated by the workload. >> Yeah. >> So what's happening is hardware soft stacks, technology in hardware, are being configured. Storage might be configured differently based upon the legacy requirements, so now you have hardware stacks that haven't been tested at scale. This is a huge issue in enterprise. 'Cause if they have multiple clusters for say a data lag, and then a real time in memory cluster, who tested that? >> Yeah. >> This is where the opportunity on the hardware side is interesting. Any thoughts on that? >> Not necessarily on the data center side. I was actually thinking about on the network side, with compute moving to the edge, what we ended up having to do is we actually created ARTIK zeros. Which are these low compute, single protocol devices for Indo devices like lights. And then when RT357, which are dual processing core, quad-quad processing core, and octa processing core, just because of the variations in the type of computation that has to be done actually in the network because the application for IoT are from extremely low power to extremely high compute. In some cases, we see AI machine learning coming to the edge. That's just totally off the scale to inference (mumbles) >> You put the data center at the edge, at some point >> It's coming. >> It's coming. >> It's the tide. It's going to move up The Cloud, then it's going to come back down. >> No virtual machines, non-volatile memory at the edge, fabrics are going to be out there... Here's theCUBE, bringing you all the data here at SDC 2017 with James Stansberry, who's the Senior Vice President, general manager of Samsung IoT. I'm John Furrier. More cube coverage, after this short break. (futuristic music)