(upbeat music) >> Every company needs great salespeople, it's one of the most lucrative professions out there. And there's plenty of wisdom and knowledge that's been gathered over the years about selling. We've heard it all, famous quotes from the greatest salespeople of our time, like Zig Ziglar and Jeffrey Gitomer, and Dale Carnegie and Jack Welch, and many others. Things like, "Each of us has only 24 hours in a day, "it's all about how we use our time." And, "You don't have to be great to start, "but you have to start to be great." And then I love this one, "People hate to be sold, but they love to buy." "There are no traffic jams on the extra mile, "make change before you have to." And the all time classic, "Put that coffee down. "Coffee is for closers." Thousands of pieces of sales advice are readily available in books, videos, on blogs and in podcasts, and many of these are free of charge. So why would entrepreneurs start a company to train salespeople? And how is it that sharp investors are pouring millions of dollars into this space? Hello everyone, and welcome to this Cube Video Exclusive, my name is Dave Vellante, and today we welcome Paul Fifield who's the co-founder and CEO of Sales Impact Academy who's going to answer these questions and share some exciting news on the startups. Paul, welcome to "The Cube" good to see you again. >> Yeah, good to see you again, Dave, great to be here. >> Hey, so before we get into the hard news, tell us a little bit about the Sales Impact Academy, why'd you start the company, maybe some of the fundamentals of this market, your total available market, who you're targeting, you know, what's the premise behind the company? >> Yeah sure. So I mean, I started the company, it was actually pretty organic in the way it began. I had a 10 year career as a CRO and it was, you know, had a couple of great hits with two companies, but it was a real struggle to basically, you know, operate as a CRO and learn your craft at the same time. And so when I left my last company, I kind of got out there, I wanted to kind of give back a little bit and I started doing some voluntary teaching in and around London, and I actually, one of the companies I started was in New York so I got schooled very much on a sort of US approach to how you build a modern you know, go to market and sales operation. Started going out there, doing some teaching, realized that so many people just didn't have a clue about how to build a scalable and predictable revenue function, and I kind of felt sorry for them. So I literally started doing some, you know, online classes myself, got my co-founder Alex to put curriculum together as well and we literally started just doing online classes, very live, very organic, just a Google Drive and some decks, and it really just blew up from there. >> That's amazing. I mean, so you've my, you know, tongue and cheek up front, but people might wonder, why do you need a platform 'cause there's so much free information out there? Is it to organize, is it a discipline thing? Explain that. >> Well, I think the way I sort of see this is that is that the lack of structured learning and education is actually one of the greatest educational travesties, I think, of the last 50 years, okay. Now sales and go to market is a huge global profession, right? Half the world's companies are B2B, so roughly that's a proxy for half the world's GDP, right? Which is $40 trillion of GDP. Now that 40 trillion rests on kind of the success of the growth and the sales functions of all those companies. Yet in its infinite wisdom, the global education system literally just ignored sales and go to market as a profession. Some universities are kind of catching up, but it's really too little too late. So what I sort of say to people, you imagine this Dave, right. You imagine if the way that law worked as a profession let's say, is that there's no law school, there's no law training, there's no even in work professional continuous professional development in law. The way that it works is you leave university, join a company, start practicing law and just use like YouTube just to maybe like, you know, where you're struggling, just use YouTube to like work out what's going on. The legal profession would be in absolute chaos. And that's what's happened in the sales and go to market profession, okay. What this profession desperately desperately needs is structured learning, good pedagogy, good well designed course and curriculum. And here's the other thing, right? Is the sort of paradox of infinite information is that just because all the information is out there, right, doesn't mean it's actually a good learning experience. Like, where do you find it? What's good? What's not good? And also the other thing I'd point out is that there is this kind of myth that all the information is out there on the internet. But actually what we do, and we'll come into it in a second is, the people teaching on our platform are the elite people from the industry. They haven't got time to do blog posts and just explain to people how they operate. They're going from company to company working at like, you know, working at these kind of elite companies. And they're the people that teach, and that information is not readily available and freely out there on the internet. >> Yeah, real opportunity, you made some great points there. I think business schools are finally starting to teach a little bit about public speaking and presenting, but nobody's teaching us how to sell. As Earl Nightingale says, "To some degree we're all salespeople, "selling our family on living the good life" or whatever. What movie we want to see tonight. But okay, let's get to the hard news. You got fresh funding of 22 million, tell us about that, congratulations. You know, the investors, what else can you share with us? >> Sure. Well, I mean, obviously, you know, immensely proud. We started from very sort of humble beginnings, as I said, we've now scaled very rapidly, we're a subscription business, we're a SaaS business. We'll come onto some of the growth metrics shortly, but just in a couple of years, you know, the last year which ended January, we grew 500% from year one, we're now well over 125 people, and I'm very, very, very honored, flattered, humbled that MIT, obviously one of those prestigious universities in the world, has taken a direct investment by their endowment fund, HubSpot Ventures. Another Boston great has also taken a direct investment as well. They actually began as a customer and loved what we were doing so much that they then decided to make an investment. Stage 2 Capital who invested in our seed round pretty much tripled down, played a huge role in helping us assemble MIT and HubSpot ventures as investors, and they continue to be an incredible VC giving us amazing, amazing support that their LP network of go to market leaders is second to none. And then Emerge Education, who is our pre-seed investor, they're actually based in London, also joined this round as well. >> Great, well actually, let's jump ahead. Let's talk about the metrics. I mean, if Stage Two is involved, they're hardcore. What can you share with us about, you know, everybody's chasing AR and NR and the like, what can you share with us? >> They are both pretty important. Well, I think from a headcount perspective, so as I mentioned our fiscal ends at the end of January, each year. We've gone from 25 to over 125 employees in that time. We've gone from 82 to 260 customers also in that time. And customers now include HubSpot, Gong, Klaviyo, GitHub, GT, Six Cents, so some really sort of major SaaS companies in the space. Our revenue's grown significantly with 5X. So 500% increase in revenue year over year, which is pretty fast, very proud of that. Our learning community has gone from over 3000 people to almost 15,000 professionals, and that makes us comfortably, the largest go to market learning community in the world. >> How did you decide when to scale? What were the sort of signals that said to you, "Okay, we're ready, "we have product market fit, "we can now scale the go to market." What were the signals there, Paul? >> Yeah. Well, I mean, I think for a very small team to achieve that level of growth in customers, to be kind of honest with you, like it's the pull that we're getting from the market. And I think the thing that has surprised me the most, perhaps in the last 12 months, is the pull we're getting from the enterprise. We're you know, I can't really announce, we've actually got a huge pilot with one of the largest companies actually in the world which is going fantastically well, our pipeline for enterprise customers is absolutely huge. But as you can imagine, if you've got distributed teams all over the world, we're living and working in this kind of hybrid world, how on earth do you kind of upscale all those people, right, that are, like I say, that are so distributed. It's impossible. Like in work, in the office delivery of training is pretty much dead, right? And so we sort of fill this really big pain, we solved this really, really big pain of how to effectively upskill people through this kind of live curriculum and this live teaching approach that we have. So I think for me, it's the pull that we're getting from the market really meant that you know, we have to double down. There is such a massive TAM, it is absolutely ridiculous. I mean, I think there are 20 million people just in sales and go to market in tech alone, right. And I mentioned to you earlier, half the world's companies effectively, you know, are B2B and therefore represent, you know, at its largest scope, our TAM. >> Excellent, thank you for that. Tell us more about the product and the platform. How's it work if I'm a customer, what type of investment do I have to make both financially? And what's my time commitment? How do you structure that? >> So the model is basically on a seat model. So roughly speaking, every seat's about a thousand dollars per year per rep. The lift is light. So we've got a very low onboarding, it's not a highly complex technical product, right? We've got a vast curriculum of learning that covers learning for, you know, SDRs, and the AEs, and CS reps, and leadership management training. We're developing curriculum for technical pre-sales, we're developing curriculum for revenue operations. And so it's very, very simple. We basically, it's a seat model, people literally just send us the seats and the details, we get people up and running in the platform, they start then enrolling and we have a customer success team that then plots out learning journeys and learning pathways for all of our customers. And actually what's starting to happen now, which is very, very exciting is that, you know, we're actually a key part of people's career development pathway. So to go from you know, SDR1 let's say to SDR2, you have to complete these three courses with Sales Impact Academy, and let's say, get 75% in your exam and it becomes a very powerful and simple way of developing career pathway. >> Yeah, so really detailed curriculum. So I was going to say, do I as a sales professional, do I pick and choose the things that are most relevant for me? Or are people actually going through a journey in career progression, or maybe both? >> Yeah, it's a mixture of both. We tend to see now, we're sort of starting to standardize, but really we're developing enough curriculum that over, let's say a 15 year period, you could start with us as an SDR and then end as a chief revenue officer, you know, running the entire function. This is the other thing about the crazy world of go to market. Very often, people are put into roles and it's sink or swim. There's no real learning that happens, there's no real development that happens before people take these big steps. And what this platform does so beautifully is is it equips people with the right skills and knowledge before they take that next step in their profession and in their career. And it just dramatically improves their chances of succeeding. >> Who are the trainers? Who's leading the classes, how do you find these guys, how do you structure? What are the content, you know, vectors, where's all that come from? >> Yeah. So the sort of secret source of what we do, beyond just the live instruction, beyond the significant amount of peer to peer learning that goes on, is that we go and source the absolute most elite people in go to market to teach, okay. Now I mentioned to you before, you've got these people that are going from like job to job at the very like the sort of peak of their careers, working for these incredible companies, it's that knowledge that we want to get access to, right. And so Stage 2 Capital is an incredible resource. The interesting thing about Stage 2 Capital as you know Dave, you know, run by Mark Roberge, who was on when we spoke last year and also Jay Po is all the LPs of Stage 2 Capital represent 3 to 400 of the most elite go to market professionals in the world. So, you know, about seven or eight of those are now on an advisory board. And so we have access to this incredible pool of talent. And so we know by consulting these amazing people who are the best people in certain aspects of go to market. We reach out to them and very often they're at a stage in their career where they're really kind of willing to give back, of course there are commercials around it as well, and there's lots of other benefits that we provide our teachers and our faculty, and what we call our coaches. But yeah, we source the very, very best people in the world to teach. >> Now, how does it work as a user of your service? Is it all on demand? Do you do live content or a combination? >> Yeah look, one of the big differentiators is this is a live delivery of learning, okay. Most learning online is typically done on demand, self-directed, and there's a ton of research. There's a great blog post on Andrew's recent site. A short time ago, which is talking about how the completion rates of on demand learning are somewhere between 3 and 6%. That is like, that's awful. >> Terrible. >> I was like why bother? However, we're seeing through that live instruction. So we teach two, one hour classes a week, that's it. We're upskilling very busy people, they're stressed, they've got targets. We have to be very, very cognizant of that. So we teach two, one hour classes a week. Typically, you know, Monday and a Wednesday, or a Tuesday and a Thursday. And that pace of learning is about right, it's kind of how humans learn as well. You know, short bursts of information, and then put that learning and those skills that you've acquired in class literally to work minutes after the class finishes. And so through that, and it sits in your calendar like a meeting, it doesn't feel overwhelming, you're learning together as a team as well. And all that combined, we see completion rates often in excess of 80% for our courses. >> Okay, so they block that time out- >> In the calendar, yeah. >> And they make an investment. Go ahead, please. >> Yeah yeah, exactly, sorry Dave. Yeah, yeah, exactly. So like, you know, we have course lengths. So one of our shorter courses are like four hours long over two weeks. And again, it's just literally in the calendar. We also teach what we call The Magic Learning Hour. And the magic learning hour is this one specific hour in the day that enables teams all over the western hemisphere to join the same class. And that magic learning hour is eight o'clock Pacific 11 o'clock Eastern, >> 4: 00 PM over in the UK, and 5:00 PM in the rest of Europe. And that one time in the day means that these enterprises have got teams all over the western hemisphere joining that class, learning together as a team, plus it's in the calendar and it's that approach is why we're seeing such high engagement and completion. >> That's very cool, the time zone thing. Now who's the target buyer? Are you selling only to sales teams? Can I as an individual purchase your service? >> Yeah, that's a good question. Currently it's a very much like a B2B motion. As I mentioned earlier on, we're getting an enormous pull from the enterprise, which is very exciting. You know, we have an enterprise segment, we have sort of more of a startup earlier stage segment, and then we have a mid-market segment that we call our sort of strategic, and that's typically and most of like venture backed, fast growth tech companies. So very much at the moment a B2B motion. We're launching our own technology platform in the early summer, and then later on this year we're going to be adding what's called PLG or a product led growth, so individuals can actually sign up to SIA. >> Yeah, I mean, I think you said $1,000 per year per rep, is that right? I mean, that's- >> Yeah. >> That's a small investment for an individual that wants to be part of, you know, this community and grow his or her career. So that's the growth plan? You go down market I would imagine, you talked about the western hemisphere, there's international opportunities maybe, local language. What's the growth plan? >> Yeah, I mean look, we've identified the magic learning hour for the middle east and APAC, which is eight o'clock in the morning in Istanbul, right. Is 5:00 PM in Auckland, it's quite fun trying to work out like what this optimum magic learning hour is. What's incredible is we teach in that time and that opens up the whole of the middle east and the whole of APAC, right, right down to Australia. And so once we're teaching the curriculum in those two slots, that means literally you can have teams in any country in the world, I think apart from Hawaii, you can actually access our live learning products in work time and that's incredibly powerful. So we have so many like axis of growth, we've got single users as I mentioned, but really Dave that's single users we'll be winning from the enterprise and that will represent pipeline that we could then potentially convert as well. And look, you make a very good point. You know, we've seen students are now leaving university with over $100,000 dollars in debt. We've got a massive, massive debt problem here in the US with student debt. You could absolutely sign up to our platform at let's say a hundred bucks a month, right. And probably within six months, gain enough knowledge and skill to walk into a $60,000 a year based salary job as an SDR, that's a huge entry level salary. And you could do that without even going to university. So there could be a time here where we become a really viable alternative to actually even going to university. >> I love it. The cost education going through the roof, it's out of reach for so many people. Paul, congratulations on the progress, the fresh funding. Great to have you back in "The Cube." We'd love to have you back and follow your ascendancy. I think great things ahead for you guys. >> Thank you very much, Dave. >> All right, and thank you for watching. This is Dave Vellante for "The Cube, we'll see you next time. (upbeat music)

(cheery xylophone music) >> Welcome back everybody Jeff Frick here with theCUBE. We're in the Palo Alto studios today to talk really about the customer journey. We're excited to have our guest today who flew in all the way from Istanbul, Turkey which is a very long flight. It's Attila Bayrak he's the Chief Analytics Officer for Akbank, welcome. >> Hi, hello. >> So first of all I hope you get some time to catch up on your sleep before you turn around and fly all the way back. >> Yeah it's a little bit quick to speak about finance and banking, but it's good to be here. >> Well we're glad you made the trip. And so before we jump in, for people that aren't familiar. Give us a little bit about Akbank, and the history of the bank. >> Yeah sure, sure, Akbank is one of the leading private bank in Turkey. And it's almost 70 years old, and we have nearly 14,000 employees and with the 850 branches around 4,000 ATMs and probably half a million merchant point of sales. We can say that we have a good footprint in Turkey. And also we are keen on to be a leading digital bank in Turkey. And just a brief information about Turkey. The Turkish market is quite young. And 50% of the population is under the age 29. >> Jeff: 50% is under the age of 29, okay. >> It's huge and the total population is around 80 million. >> Jeff: Okay. >> So Turkish economy is quite performing very well for the last 10, nine years. So that's why being digital leader is quite a crucial issue for us. So with these numbers we're performing around probably the best or the second in many KPIs. >> Jeff: Okay. >> We can say that we nominated, we are nominated many times as the best bank in Turkey with the bank in Europe from some of the companies. >> Okay and how long have you been there? >> So I've been there in 11 years. >> 11 years, but you said before that you were at some other banks. You've been in the banking industry for a while. >> Yes, yes I've been banking industry for almost 20 years. So I used to work two other competitors of Akbank. >> Okay so I'm curious especially with that large percentage of younger people, how many of those people ever come into a branch or go to an ATM? As opposed to using their phone. >> So they should prefer doing business in phone because it's quicker, faster, and easy. And the experience is quite much more under control in the phone. And we have, we can say that we have 80, 85% of younger people preferring the digital business rather than the classical ways. >> It's just fascinating to me, especially in banking, 'cause in banking you know, it was that trusted facility on the corner right in every town that you knew was stable, and it was always there, and you went into the branch, and you knew some of the people that worked there. And now almost the entire experience between the bank and its customers is a digital interaction, especially for the young people. They've never been to a branch. They don't hardly ever go to an ATM, in fact the whole concept of cash is kind of funny to them. You know it's a very different world. So digital transformation in banking is so so important. >> Yes they're going in hand in hand. You know the millennials are living in the digital world. And after the millennials they born in the digital world. So it's always that, the business are transformed itself into the digital way, and to deliver the products and needs in the way of doing things with the digital processes. >> So as Chief Analytics Officer, with that move in the millennials, of course there's always regulation and other things that are driving you know your KPIs, but how has that migration to younger people interacting in a digital way, impacted your job and what you measure what you have to do every day. >> They directly impacted my job. (laughing) I used to lead the customer relationship management initiative for 10 years which covers the sales and marketing automation, and the analytics and the design of the processes in the sales. A year ago, one and a half year ago, we transformed the role into the analytics office, and we are keen on to the deep dive in the customer behave, and define what are the needs of the customer, and how is evolving in the digital era. And we are trying to position the bank's products and the communication skills in the digital world with the customers. So it is similar in the old days in the subjects, but it's really different in details. So the story begins to understand the customer, and then segmenting the customer, for sure for probably more than 30, 50 years. But in the digital world, the footprint of the customer and the digital footprint is quite diversifying the thoughts in the corporate side. So we have around 50 million customers, and 90% is a retail one in the new ages. So we need to optimize the banking let's say, the cost structure of the bank, and for sure the digital business gives us the enablement of the optimizing the customer service. >> Right, right. >> So the segmenting the customers, not for the value basis, the behavioral and the other perspectives, and creating a very well defined segments is the initial step. And we are redefining ourselves in serving in this era. >> So I'm just curious, you know 20 years ago, I won't go back to 30, but 20 years ago how many segments did you use to segment your customers? I mean how many kind of classes and how has that changed today? >> Well 20 years ago we have three to five segments. >> Jeff: Three to five segments, that's what I thought. >> So it's like the big ones and the small ones. And if you have the analytic capability you have the mid ones. >> Jeff: Right, right. >> For nowadays we have 80, 85 different perspectives for the customers. So we created that platform to enhance these segmentation capability to serve our specified problems of the bank. I mean problems with the missions of the marketing-- >> Right. >> Let's say so we are considering now the life stage, the life style, and some spending behaviors, and some investment behaviors, some credit risk behaviors also as well. And the potentials of the economic size. >> Jeff: Right. >> And we can say that now we have more than hundreds, but the optimal point of the segmentation is so there is no meaning to create some segments that you do not take some actions-- >> Right, right. >> The action ability of the segment is quite coming forward in this topic. So we created the platform to enhance the capability, to create dynamic segments and dynamic targets to each marketing event. >> Right, and I was gonna say and hand in hand with that, and you just mentioned a bunch of different variables, how many variables fed that segmentation before versus how many variables today feed that segmentation analysis. >> So it increases probably hundred times. So we used to I don't know analyze couple of hundreds of dimensions and variables in older days. It's more than 10,000 today. >> More than 10,000 variables to segment into hundreds of classifications of customers? >> Yeah why not. >> Wow, well there's a good opportunity for an analytics executive. (laughing) So how are you addressing that challenge? So obviously you're here as a Datameer customer. How did you do it in the past? What were the things you couldn't do? And what forced you to go with kind of a new platform and a new approach? >> So we can say that we have a quite well defined analytic architecture in the Akbank. And we are using different types of technologies in different types of solution areas. Datameer is positioned in the measuring of our marketing campaigns. And as we mentioned we have more than millions of customers and we have quite, we can say that in a given period of time we have more than hundreds of campaigns. So we need to speed up the measurement of the campaigns and the results in a business perspective. And once we come across with the Datameer and the capabilities of the technologies much more related with the Hadoop structure and integration of different data sources in one place. So we think that we can optimize our ETL type of measurement data load technologies transformed into the Hadoop structure. And it seems it worked. So we reduced the time to transform the data into a single platform from diversified places. And we created easy to use measurement platform to give some feedbacks before the things are happen. >> Right right 'cause there's a lot of elements to it. Just on the data side, there's the ingest as you said, now you have many many variables so you gotta pull from multiple sources, you gotta get it into a single place, you gotta get it into kind of a single format that then you can drive the analytics on it. Then you got to enable more people to have the power. And I'm curious how that piece of your business has evolved where before probably very few people had access to the data, very few people had access to the tools and the training to use them, but to really get the power out of this effort you need to let a lot of people have access to that data, access to the tools to design these hundreds of campaigns. So how has that evolved over time? >> To be frankly speaking, there are thousands of variables are related to the predictive part of the analytics. But the other critical point is so the results are how are things are going on in the business side. So banking let's say culture of Akbank, so we are keen on to put the business value on the front and then think with that mind and design each and every process in that way. So that's an other perspective to get support to change the classical data load and upload and transform the data and analyze the data to see the results. That's the old way. And we were good to be frankly. But we transformed that into a much more dynamic structure. And the knowledge as you mentioned is a critical point in the team. So the easy to use, the usage of easy to use of the technology is quite another critical point to create that type of thing into the place. So at the end of the day, you are measuring hundreds of marketing actions just in a single month. And if there's something happening that doesn't plan, so you need some time to re-think on this issue and redesign it so we think that we are at the door of this stage. We can say that we can use the output of the predictive analytics much more in an efficient way by understanding the results in much more frequently and speedly I'd say. >> Right, right, and would you say this effort has really been offensive in terms of you trying to get ahead of the competition to be aggressive. Or has it been defensive and you know, if you're not playing this game, you're not really in the game anymore. >> So it depends on the prior subject. If it's retention action, it can be defensive. It seems like defensive. But if it's let's say op selection it can be offensive. So there's no chance to choose one of them because we have variety of products and variety of businesses in Turkey that we are operating. And at the end of the day we need to serve each and every action. >> And I think it was very insightful too that you said that you don't do it just for the sake of doing it and because you can do it. That if there's no action that can come from it, or if it's not actionable, what's the point, it's a wasted effort. >> Yeah, sure at the end of the day we are doing banking business. So we are not doing the analytics business. >> Right, right. >> That's the point. >> Yeah exactly. So as you look back kind of, what has been the high level result of this effort if you're reporting to your boss or the board of using this type of approach. And then secondly, where do you go next? We're almost at the end of 2017. What are some of your objectives and kind of priorities for 2018? >> So we are creating, we are now just nowadays, seeing the results of the new system. And we can say that in some actions we've started to increase the results 10 to 15%. >> Jeff: 10 to 15%? >> Yes it's in the result phase. And it gives us some courage to design new use cases. So the new use cases are much more related with the visualizing of the results in real time, these type of things. Basically I can say that we are trying to get everything in real time. And the modeling in real time. Measuring in real time. Visualizing in real time. So we are trying to push each and every action in the analytics to the closer. We do not want to work in the offline phase. >> Yeah it's fascinating to me to think that we used to make decisions based on a sampling of things that happened in the past. Now we want to make decisions on all the data that's happening now. It's a very different approach. >> Yeah. >> Alright, great well Attila thank you for stopping by and sharing your insights. >> It's a pleasure to share. >> Alright absolutely, alright so he's Attila Bayrak, I'm Jeff Frick, you're watching theCUBe. Thanks for watching we'll see you next time. (electronic music)

>> Announcer: Live from Orlando, Florida, it's theCUBE, covering ServiceNow Knowledge17, brought to you by ServiceNow. >> And we're back in Orlando, everybody, this is Dave Vellante with Jeff Frick, CJ Desai is here, he's the Chief Product Officer of ServiceNow, the newly-minted, 150 days in, CJ, great to see you off the keynote, fantastic job. >> Thank you, thank you, thank you. >> Very crisp, I was struck by your story about last October, when you were contacted by ServiceNow, you fired up the platform and started playing around and built an app. >> Yeah! (chuckling) >> And you found it was a good experience. >> It was a great experience, I'll tell you, Dave, from my standpoint, when you join a company that is built on a platform like ServiceNow, you want to make sure that you feel great about the foundational elements, because as always, you can build floors on top of a foundation, only when the foundation is strong. So ServiceNow always, I don't know if you know, but it started out as a platform company, and then they used the service management use case, and went deep in that use case, and then went to Operations Management and other products, as you know, and I just wanted to make sure that, hey, how easy it is, if I'm a customer, or if I'm in the product development organization, to create an app, and having that strong foundational layer, even simple things like, it's the cloud offering, first of all, you have a integrated development environment, you can start creating workflows, UI, all of that is so easy, and there's no headache of figuring out how to deploy the app, because it's right there, so you just publish it and you're done. >> Yeah, it's interesting, one of the first CUBE interviews we did at Knowledge was with Doug Leone, the famous VC, and he told the story of, he saw this, "What am I going to do with this?" And sent Fred away and said, "Build something on top of it," and that's what happened, but. But help our audience understand, CJ, because you talked about Jakarta today. >> Yeah. >> Now, Jakarta is a platform capability, and if we understand it correctly, we were talking about it earlier, the business units have to figure out, "Okay, how do we apply that capability "to our particular needs, and our customer needs," so explain that. >> Yeah, so ultimately, there are two things that happens in the products organization, right? First is, we do release this every six months, twice a year, so every six months, twice a year, and we go by alphabets, and we pick cities, just a fun factoid, we pick cities that go from North America or South America, to Europe, to Asia. So, H released last year, around this time, was Helsinki, after Helsinki was Istanbul, and then we have Jakarta, so are now in Asia, and then next will be Kingston, and the one after that is London, so you go alphabetically, and the reason we pick this city names in alphabets, we support our customers, because it's a multi-instance paradigm, n minus one and n minus two releases, so when you make, name of the cities, customers will have a conversation with me and say, "CJ, we went on Helsinki, we're upgrading to Istanbul, "or we're going to skip Istanbul, "and go straight to Jakarta," for example, so, first of all, that's our naming system that we use, every six months, you will see us talk about a specific release, and you heard from John yesterday, he was very clear in saying, "Listen, "our customers want to hear our roadmap, "they want to know what we are up to," and so we took that customer feedback to heart, and decided, why don't we just tell them what's coming in Jakarta? So Jakarta will be released this summer, and from a planning standpoint, Dave, to answer your question, we figure out first, what do our customers want, and is it in the applications that we talked about, like ITSM or CSM or security or HR, and for those applications to deliver the functionality, what do we need to do in the platform so that the functionality can be delivered? So the requirement process is a complex requirement process, the applications team will give requirements to the platform, customers also sometimes have requirements for the platform on scale, platform will build a functionality, applications team will build the features on top of it, so in Jakarta, which is coming out this summer, we have six new products, you saw some of them, software asset management and others, 30 major features, and that's close, so after Jakarta, we're already in planning for Kingston. After Kingston, I think I'm going to announce it for the first time, will be London, so it's Jakarta, Kingston, London, are the three-- >> Yeah, so when we go to these events, a lot of times, at the keynotes, somebody will make a product announcement and you get a little golf clap, it always happens at ServiceNow Knowledge that you get somebody hooting in the audience, today, the hoot came for software asset management, they were the three high level things you talked about today, performance with UX, and performance, and then the vendor risk management, which is very interesting, we'll talk about that a little bit, and then the software asset management, the guy must've been an Oracle customer hooting and hollering. But so, give us the high level overview. >> Alright, so, here is the thing, right? Our buyer is IT organization, we started with IT. We love our buyer, and CIO, to all the organizations that support CIO, head of infrastructure, the portfolio management team, the business management within IT. And one of the things that we saw, and this is the requirement that we got is, when we talk to CIOs about how to make the IT organization productive, because IT, it's a tough job, man, it's a tough job, things go down, you're like, "Okay, of course, IT," and technology's such an integral part of our life that people are always looking at IT to make sure they deliver great technologies. So, IT budget, and every, debated this all the time, everybody talks about IT budgets, what's happening to IT budgets, how the IT budget is going up or down, are you asked to do more with less, there are so many examples I can use, but as per Gartner, 25% of the IT budget is on software licensing. Then there is hardware and all the other infrastructure and people-related cost. 25%, so if, and as you know, some of the vendors put you through a pretty complex audit process, so why can't we, our chief buyer is IT, why can't we give them a platform, or a product, that allows them to discover how many products you are using by vendor, Microsoft, Oracle, some of you examples you used, for desktop, it's Adobe and others, you use these products, are you really utilizing all the licenses you have, or are you potentially in overage so that you actually have a sense of where you stand with every vendor that you're using that makes up your 25% budget. We talk to financial customers, manufacturing industrial customers, these are billions of dollars of budget, 25% is still a big number, any improvement in that 25% could go a long way, and what CFOs do not like is when CIOs go and tell the CFO, "Hey, we didn't clear this audit, "or potentially these guys may sue us "for a contract violation," so we decided we are going to create a product that helps you get a good posture on what your licensing is, does that make sense? And that's why, you know, I also saw on Twitter, a lot of people love this idea that, hey, can we automate this software as a management process, discover what's being deployed, allow you to reclaim, and at the end, help you save the cost. >> And the other one was the cloud management platform, which again, similar type of situation, especially with all the freemium services, and test dev, and card swiping, that they can get unruly pretty quickly. >> In my last job, as you are aware, I was in infrastructure space, and one of the things in speaking to customers, always realized that hey, IT was not agile enough, we decided, for some customers, we decided to go and use some of the public cloud services, re-enter infrastructure, because IT could not keep up with our demands, and you go and speak to IT, they say there is so much going on that sometimes it's not easy for devops communities, in particular, that you pointed out, so much going on. So, IT felt like they were losing control, developers, whether they're application developers in IT organization or in business units, just wanted agility, and IT felt like if they cannot deliver that level of service, you had the share-to-IT functions going on in the departments, and with cloud, we acquired a company called iTapp about a year ago in April. The first year was all focused on re-platforming, like I said today, I think many times, I'm sure people got sick of listening to me, is, we are going to re-platform every acquisition that we make, and we usually buy technologies in our business so far. And we re-platform it, and now, IT gets the control back, once for, you know, you help the developers, devops people, sure, go and use public cloud, but IT will still have a single pane of glass that allows you to look at your resource mapping, utilization, understanding the cost and the usage, whether you are on public cloud service, or in private cloud service. >> Well, it's huge, because it's very unpredictable, and people often complain, "Oh, I get the cloud bill at the end of the month," but a lot of times, there's not just one cloud bill, it's many, many cloud bills, and what happens, you know, you remember this, in the downturn, a lot of CFOs said, "Go to the public cloud, "eliminate Capax" and then, when we came out of the downturn, lines of business said, "I got to move fast, "and this cloud thing seems to be working for me." IT seems to have really, you know, in previous big picture trends like this, mega trends, IT oftentimes has been sort of pushing back, you saw that with client server. >> Yeah, their security concerns, compliances-- >> And today, they're announcing, okay, we have to embrace cloud, or we're toast. >> And Dave, I'll tell you, there are customers, I mean, some very large customers in regulated industries who tell me that, "CJ, we are now cloud first, "before we decide to do something," I mean, that's a pretty big statement, cloud first, I mean, if you remember 2008, '09, '10, '11, '12, '13, that journey, and how customers were reluctant, and they're like, "I don't know, my data losing from here," and this and that-- >> Well, I got to bring this up, so, I was reading an article on SiliconANGLE, EMC World is going on, Dell EMC World this week, and Michael Dell basically made this statement in his keynote, "If you're a cloud first, "you could be in trouble because of the expanse," and so forth. I don't buy it. I think the other, I love you, Michael, but the value that customers are getting out of going cloud-first, maybe, yeah, maybe the bill at the end of the month is high, but the other residual effects on your business, the speed, the agility, the processes, you're seeing it, aren't you? >> I mean, I'll tell you straight up, there are customers that are asking us, because, you know, again, IT's our key buyer, and key customer, and we appeal to the IT department, and the CIOs, even at the CIO dinner the night before, people are embracing cloud. Now, they are on a journey, some of them have maybe mode few percent of their workload, some of them may have mode a little higher, but they're on some journey, and they're trying to balance when the cost pros out with the cons, or the cons out with the pros, but, can you give us some kind of control plane to manage our cloud resources, understand the usage, understand the billing, which we do for financial management, and tie-in with IT processes, because that resource life cycle, that VMU provision, right, that VMU provision in the cloud, what happens to the life cycle of VM, can you create an incident, can you close it out, that's equally important besides just saying, "Yeah, I'm going to move this particular workload to cloud." So I feel that customers are on this journey of some kind of combination of public and private cloud, and it doesn't have to be zero-sum game, infrastructure continues to grow, I don't feel like, okay, if you do this, that means you do not do private, or if you do private, that doesn't mean-- >> Certainly both, and containers are going to just exacerbate the problem. >> Right, and the demand for compute, store, and networking is not going down any time soon. >> I'll tell you, my role environment, so my team lends cloud infrastructure, so our platforms runs on cloud infrastructure, and you saw some of the elevated numbers, I mean, our growth, we are trying to invest in compute network storage ahead of our growth, so it's not, and we are a cloud service, so I always look at it as, this doesn't have to be zero-sum game, customers are expanding, they want the agility, like you said, the agility, the business is asking, "Can you develop this app faster, "can you give me what I need," is what's driving-- >> It's a topline game for businesses, Jeff, I just want to inject some of those numbers on your cloud, 50,000 instances, 150 million active users, and 10 billion transactions per month. >> Yeah. >> Yeah, but I want to get, it's funny you're talking about Jakarta and London, I remember when we were doing interviews around Dublin, which I guess was a while ago, but I'm curious, 'cause there's this other trade-off, and get your perspective, is in a devops world, in kind of a continuous integration and development world, people want to push code frequently. On the other hand, in an enterprise world, and we've talked to a couple of customers, they can only take it so much, and so you've kind of got this yin and yang, and you want to get stuff out, and there's patches, and this and that, and you're on a relatively aggressive for current enterprise release schedule, on the other hand, the trend is clearly, just keep pumping it out, pumping it out, pumping it out, how do you see that kind of sorting itself out over time with these big enterprise customers? >> I will tell you, from a technology standpoint, there is nothing that prevents us from doing more frequent releases, yes, we have to mature our product release processes, we have to mature our cloud operations and how fast we can churn the code. There is nothing that prevents us, technically, from instead of two releases a year, maybe do four releases, it doesn't! But our customers, and we talk about customers first, listening to customers, you saw John today, I mean, we want to listen to them, and they will tell us, that I was at a large financial institution in Boston two weeks ago, and, your hometown, and they told me that, "I cannot do every six months, "I cannot do every six months, CJ, "we usually skip a release," right? And so we are just listening for specific use cases around service management, the processes, customer-run, same thing with operations management, right now, six months about feels right, every six months, release, we do quarterly patches, where we do not release features in those quarterly patches, and for emerging products, like you saw customer service, they challenge security, the team did a great job, when I look at those releases, is it potentially can we push things fast? Maybe, but right now, I'm okay, based on customer feedback. If customers come and say, "I want every three months," I hope to see what does that mean-- >> Let me run something by you, I told Jeff I've been sharing cabs with practitioners all week, it's great to just have wonderful conversations, and one said to me, "I've asked ServiceNow "if they can give me more granularity in the releases," I said, that doesn't sound trivial, in other words, if I can selectively choose features, is that even technically feasible? >> I mean, this is the isolating the feature, micro-feature development, making sure your schema is abstracted enough, I mean, there are companies in consumer world who do that, and push code out really fast. I would say, right now, one of the requirements I do get is, we're on IT service management, we have been a customer of ServiceNow for a while, but on this other thing, say, customer service, or HR, I want to take the new features, so my IT service management is at, say, Helsinki, but I want to take the HR, like the onboarding you saw, the onboarding, which is in Jakarta. So does that mean I need to upgrade this thing to leverage the HR feature? The answer is yes, because it's all built on single platform. Now, I do not want to do where customers, we give them two instances, and then we do a back-end pipe integration, a connector, so you can be on Helsinki for ITSM, and Jakarta, that-- >> Architecturally-- >> That breaks our model, and I do not want to do that. There are companies who, say, reside in different tenant, and will give you one for, I do not want to do that. >> I wanted to ask you about this too, CJ, because, you have a dogma, you have your own cloud, you see a lot of SaaS companies now saying, okay, you see Workday, a little bit of Salesforce, certainly Infor, putting their applications on AWS, for example. You guys, very proud of your cloud, you have availability, and I think when you show availability numbers, you downplay it, actually, people don't understand this, you're talking about application availability, you're not talking about the server light-- >> No. >> Okay, so you're very dogmatic about your cloud, and this issue here, you won't do something that maybe is going to help one customer but is going to ruin the experience down the road for all, and that dogma, is that a valid, it's not a criticism, it's an observation, and is that a good thing? >> So I would say there are some design principles, or operational principles that we live with, and we are going to stick to them, like we talk about acquisitions and re-platforming, think about, Dave, you have somebody coming in, you acquire a machine learning company, really smart kids, really smart people, machine learning or data sciences, an art more than a science, and looking at prediction accuracies and things like that. Now you tell them, "Welcome to ServiceNow, "here's your badge, you just got onboarded, "it's great what you've built, "we are not going to sell that standalone, "you need to re-platform," which typically takes one year, "Before we can launch your product." That's a tough message. That's a tough message for an engineering team to hear, that now I have to figure out how does this platform work, I mean, if I had a magic bullet, I would tell you, if I can wave the magic wand, I'll say, acquire this technology in machine learning AI, combine that with our organic development, it's a re-platform and I have a toolkit that does this thing, and it is a re-platform, but that's not easy. So on these kind of principles, whether it's re-platforming, how we do the releases, how we look at the cloud, and I want to answer your public cloud question. Right now, as you know, we're active, active, I've seen your interviews in the past here, we're active, active, we have eight pair of data centers, 16 around the world, and we make sure with our multi-instance architecture, the availability of the uptimes are very high for our customers, and when they upgrade, we know, they can pull the upgrade, "I'm going, CJ, "from Helsinki to Istanbul, or Helsinki to Jakarta," and that's available, but, can we potentially look at moving our footprint, and renting infrastructure in a public cloud? I'll never say never, but right now, there is no need for it. >> No, you see it, and there are advantages to having your own cloud. I want to ask about your role as Chief Product Officer. Fred Luddy had that title, we were sort of joking earlier, Fred was a coder, the company brought Frank in for adult supervision, and so you're inheriting that title, but I sense that you're a different type of manager, what do you bring to ServiceNow? >> I'll tell you, first of all, Fred, Frank, and even Dan McGee, who had this role last year, he was here, I saw his interview, he's here today, phenomenal people, I mean, I have interacted with all three of them, Dan McGee helped me transition into my role, Frank hired me, and just great, great guy, and even with Fred, going through this user experience, how do I think about the user experience based on the persona, he's always there to provide input with lots and lots energy and feedback. So let me just tell you for, in less than 30 seconds, what my role is, right? My role is, I help platform team, and the cloud infrastructure team, that's lead by Pat Casey, who is doing CreativeCon tomorrow, I have individual application general managers that you saw some of them today, and I also have the customer support organization, and the user experience teams. So that's my overall responsibility, so it's the responsibility that Fred Luddy had til last October, and Dan McGee had til last December, combined into one. So, it's a big job, and it comes with a lot of responsibilities on behalf of our customers, you talk about high availability number, we help to make sure that we keep our cloud service up and running secure, but at the same time, bringing this innovation in platform and the applications is my job. So, I'd done, fortunately, when I started out of college, makes me sound old, I know, but when I came out of college, I worked for a company that was doing business applications for a long time, eight years there, and I worked in that applications technology team, I worked in the CRM applications, did things for financial applications, and I went on security software, understanding how you protect the applications you write, all the way from OS up to the application stack, and then I worked for a infrastructure company, as you know. So that gave me a really good feel on the entire stack, how do you scale that stack, and be maniacally focused on, what do customers want? I mean, I am very fortunate to have great customer relationships, many companies around the globe, I reach out to them, ask them, tell me what you think, tell me what we are doing well, so customer focus, having done product development for 20-plus years now, and understanding all the way from application stack to the underlying infrastructure, is where I can help-- >> Yeah, it's like a triple threat that you have, the product innovation, the enterprise class, security, and scaling, as you mentioned, very, very important. Alright, CJ, I love having you on theCUBE, you're a great guest, we could continue, but we got to leave it right there. Great to see you again-- >> Thank you, thank you so much, I really appreciate it. >> Alright, keep it right there, everybody, we'll be back with our next guest, this is theCUBE, we're live from Knowledge17, we'll be right back.

>>From the Mandalay convention center in Las Vegas, Nevada. It's the queue at IBM. Insight 2014 here is your host, Dave Vellante. >>Hi, welcome back to IBM insight everybody. This is Dave Volante with John furrier. We're here with the cube. The cube is our live mobile studio. We go out to the events, we extract the signal from the noise. Carla Gentry is here otherwise known as at data nerd. Carla, great to see you. Welcome to the cube. You are a data scientists. Do you have your own company? Um, we were just talking to, uh, to dr Ahmed Bouloud from a university in um, Istanbul and he said, well, it's data science. It really, really isn't a such thing as a data scientist. And so he and I are arguing a little about it. So I said, come back and see Carla, right? You're a data scientist, right? >>Well, you know, right out of college I started with a RJ criminal associates up in Chicago. And um, that that's what we all were a bunch of data nerds in there playing around with terabytes of data before anybody even knew what a terabyte one terabyte was really big. Right? Right back when the terabyte was big data, but a, you know, gleaning insight for a discover financial services. And then, you know, I've worked with consumer packaged goods, the education, I mean it's, it's been a wonderful, wonderful career. And what's so great about this is to be able to walk around and see how much data is a part of more people's lives now than it was 20 years ago. I mean, 20 years ago you couldn't have, you know, gotten thousands of people together talking about data analytics. Well, you know, the interesting thing about what you're saying without you, you CPG education, financial services, John and I talk about this a lot, how the data layer is becoming a transport mechanism to connect the dots across different industries and data scientists. >>You guys don't like to get locked into one little industry niche. Do you you'd like to gather data from all types of different sources? Talk about that. Well, that's the thing. Uh, unfortunately, uh, we get bored very easily because, you know, we like to have our fingers in a lot of different pies. But, you know, you wouldn't want to be necessarily siloed with just one kind of information because curiosity makes you think about everything. Education, risk, you know, I'm that way. I have no walls. You know, I can, I can glean insight from any type of data. If you've got a database, uh, we can jump in with both feet. Is data is data and why is the data more transformative today in this day and age, you know, circa 2014 versus say, when you came out of college, why is it that everybody's talking about data that data is able to, to change industries, transform industries. >>What's different? Well, now the, you know, data can actually give you, you know, an insight into your customer mean, you know, what is your customer buying, you know? Um, so when you go to, you know, run a campaign or something like that, you, you're not shooting in the dark. You know, you're actually, you have a face to your customer. So you know, you can make decisions and it's not just marketing, you know, which is what I started out in, you know, trying to do increase and lift, you know, sales. But now you know, you have risk, you have, you know, data breaches. You have, you know, what keeps CEOs up at night, you know, it's not only the cash flow, you know, it's the mitigated risk that's involved. And when you're looking at your, your data and you're collecting this information that gives you a view into what's really going on so you can sleep at night and have a little bit of comfort mostly, >>well not sleeping at night, it's a couple hours of sleep. The notification when I opened CEO's and CIO's, CFO's, chief data officer, you've seen much more formal roles around data where data is real key asset. And this is awesome because it brings to the forefront the role of data. And so I want to get your perspective on this. You brought into the kind of the, kind of the trajectory of where we've come from, um, and talking about the role of software because really what this highlights here at IBM insight is okay, it's not just data per se, you know, how software that's a key part of it. So it's now also an integral part of the platforms. You have a developer angle, you have the data asset, and now you've got this real time in the moment experience. And IBM is talking about engagement a ton here. And so what's your take on all that? I mean it's, it's exciting. Certainly if you're in the data business. >>Well definitely, I mean, real time data, of course it's very expensive. Um, but it's, it's more attainable now than it ever was. Um, the thing is now is you don't necessarily have to be a data scientist to be able to go and get at your data. I mean, thanks to software tools, you know, like IBM, they give you that benchmark, you know, the, these tools, uh, where you can use BI and things like that. To be able to get a view into your business. And you know, it's not just for, you know, your analytical department anymore. Um, so I think it's what it's done is it's actually made it more attainable now. You know, it was like people looked at data wagon back then, Oh, and it was so scary, you know, but now it's, it's bringing it to the forefront to where we can make decisions. We can want our bitter, our business better. And like I joined forces with a repo software years ago to look at the supply chain. Now when you talk about that, that's what keeps the lights on. But you're only as strong as your weakest link. So when you're working with third parties, you have to make sure that everything is going smoothly. So >>I want to get your take on a couple of things in. He chose SA was on earlier and she's an awesome guest. She's been on many times. She's dynamic and articulate and super smart, brilliant and beautiful. We love talking with her. She said, I asked her what are the top three customer issues? And kind of a double edged question. She said three things, customer experience, operational assets, AKA the supply chain, and then risk security and governance. And then we weaved in context computing and then cognitive. So let's break that down. So customer experience, internet of things is a data play, you know, probes and sensors and machines certainly get that >>analogies. People are things. Yeah, well you know, here's the thing that you think about. Data. Data is a person that record that you have in that database equates to a real live person and you want to, you know, you're not going to be friends with your, your customers, but you want to know more about them so that you can serve them better. Um, you know, for me the biggest thing is, you know, people will go out and spend millions of dollars on a database but not necessarily know what to do with it. So it comes down to what question are you trying to answer? >>Yeah. And the infrastructure piece is interesting because you want to have that agile flexibility, which is kind of a buzz word amongst vendors. Hey, be flexible. But there is meaning behind it. Right. So context computing is relationships across entities. The streaming stuff is very, very interesting to me because now you have streaming data coming off of devices and again brings up the real time piece. So making sense of all this means it puts it in the forefront. >>And what you can do with that data is if you do have a client or a customer and you let them link in socially, like log in through Twitter or LinkedIn or Google, Facebook, now you can append that social data. So now you, you've got an ideal, you know sediment and you know when you're positive you it's first party data. Yeah, exactly. The Holy grail of active data is first party data. Exactly. >>Cause we'd love the crowd chatting and love people. The logging in and, and thanks for, by the way, for hosting the crowd chat with Brian the other day. It was really fantastic conversation. My pleasure. Let's talk about cognitive because this brings a human element of it. And one of the things we've been teasing out of the past couple of shows we've been at around big data is the role of the developer where the developers in the old days from even going back to the mainframe days, cold ball, they were adding in these rooms, almost like almost an image of coders in the back room coding away. But now with the customer experience front and center with mobile infrastructure, the developers are getting closer to the customer experience. And so you're seeing more creativity on the developers side with the use of data. Could you share just observation, anecdotes, things you've been involved in that can tease out where this is going and how people should be thinking about it? >>Oh, do you know 20 years ago if he tried to show someone and graft with, you know, 16 different things at one time going on, they were like, that's messy. Now you can actually find the sweet spot or where everything interacts. So you know, when you're talking to an artist, a digital artist who's working with data and giving that picture, that's exciting for me. And going back when we were talking about cognitive computing, when you're talking about the Watson on ecology, that's exciting. Yeah, that's the highlight of it's almost magic. It's almost like black magic, this Watson stuff and people are really just now getting their arms around that and that is essentially making sense of the data, but that's the thing. See, it's no longer magic now. That's what they thought 20 years ago. Poof. People like me, they kept in a little closet, you know, and then our office and they only came to Moses when they needed something. >>Now we're an integral part and we actually are in the business development meetings and we're a liaison between the it department and the C suite. One of the, one of the things that it's interesting about your role as not only you out in the field doing some great work, you're also an influencer here at the IBM influencer program, so I want to get your take on this balance between organic data and kind of structural data. Organic data means free forming unstructured data and then existing data that comes in that's rigid and structured because of business processes. And I get that is data warehousing business has been around for years, right? It's intelligence, it's all fenced in, all structured. But now you have this new inbound data sources coming in, being ingested by these large systems, data changes the data. So you now have a new dynamic where latency, real time insights, these are the new verbs, right? >>So talk about that role, the balance being organic data and the structure data and what the opportunities are. Well, the wonderful thing about, you know, now that unstructured data was scary way back in the day. So now it's not so scary, you know, now we can actually take this data and make business decisions, but uh, you know, like social data and things like that. When you can add that in a pin that and get to, you know, what we all want is a better view of our customer and to be able to, you know, do better business with them. Like, um, like supply chain management and things like that. I mean you're, you're looking at open people, you know, collecting information from varying sources and this all has to be put together. So I think they mentioned earlier this morning how 80% of it is we're data janitors cleaning up this, that and the other. >>Whereas what we really want to do is, you know, glean the insight from it. But I think, uh, the tools these days are making that much more easier no matter what the source is that we can actually put it all together, what we used to call the merge Burj back in the old days. It takes weeks to do the merge purge and yeah, who all here knows what a DLT is trying to solve this problem for a while with traditional technology 17 years. So let's talk about, you know, the, the promise of BI and the traditional data warehouse 360 degree view of my customer, real time information. And that's what it's about. It's about drilling down predictive analytics, all these promises. Did the data warehouse live up to those promises in your view? Well, initially, maybe not, but you know, things are, it just seems in the last few years that people have had an epiphany of how this is really adding value to their company. >>Now back in the old days, they all knew that, you know, insight is wonderful, but now you can see it visibly showing signs actually making a difference in company so they can keep an eye on everything that's going on. Now, going back to what keeps CFOs, you know, up at night with the risk and stuff, there's still always the risk, but at least now you can get a little better handle on it. And thanks to the age of technology and the data that we have accessible to us today and the tools we have available to us today. It's, it's made a dramatic change. What are the technology catalyst? Is it do? Is it no sequel? Is it, what are the, what are the tools that are sort of the foundation of that change? Well, I think always the, you know, the new tools and making it so that you don't have to go out and learn SQL. >>You don't have to be a programmer, you don't have to, you know, go to college for four years and learn mathematics and engineering to actually be able to work with this data. So thanks to, you know, tools like had it been other tools. I mean you can really sit down and glean insight without having to write one single line of code. So the things we're getting some questions in the crowd chats, um, um, at furry, at data nerd, what are the key things that are messy, scary right now for CEOs and CFOs? So things are becoming less scary. What is the scary things right now? Oh, the scary thing is the breaches. You know, when you hear about target and these big names, you know, people getting access to your, your credit card data. That's, that's scary. So, you know, we've got to really try to lock down that risk, you know, and I know everybody's scrambling scratching their head, figuring out how we're going to keep these breaches from happening again. >>Yeah. Big data solves that. I mean you have big data technology, which is a combination of machine learning, streaming where you're getting massive surges of data coming in to these ingest systems where you can apply some reasoning to it, some cognitive, some insights to look for the patterns and that's where machine learning shines. Um, how do you see that aspect of machine learning and these new tools affecting that kind of analysis? Will I see it opening up a lot of different doors for a lot of different people and making a difference because, uh, you know, everybody knows that data is important, but not a lot of people know how to deal with it, especially when it gets into the zettabytes of data. When you have tools, you know, like the IBM tools that can handle this type of load and be able to, to give you, you know, instantaneous information. >>And, and like what we saw this morning where, uh, like risk, I mean an oil and gas industry, you know, you, you have to worry about, you know, as someone going to get injured on the job and they showed the the center, whereas she walked toward it, it went off. I mean the internet of things, being able to let us know in real time if there's a danger, you know, to personal life or to your database and then predictive to be able to say, well this is what we think is going to happen in the future and to be able to move and act on that. It's a very exciting time. You mentioned IBM, so obviously is a leader in here, >>Jeff Kelly's report shows IBM is the number one big data player. But big part of that is IBM. So big, right? >>Well and you guys were around a long, you've been around a long time. You guys were playing with big data way back before. Big data was big data. So yeah, we guys, us guys, yeah, well social, social data, >>those guys, right? So we're not all right, but so, but, but so you bring up IBM, a lot of people have a perception IBM big, hard to work with, but you're, >>but that's changing. So talk about that change. What I'm excited about is the Watson's analytics. I mean that in itself right there and made me sit up and, you know, get excited about the data world all over again. You know, to be able to excite you about Watson analytics platform? Well, I really like, uh, the, uh, the oncology, uh, Watson, um, they had the, the one for the, uh, not necessarily for the police, but for the, uh, the crimes. I mean, in real time, if you can see that a crime is about to happen and you can prevent it, or if you see someone's health is failing and you're able to step in. And that's why over there, earlier I was talking about IBM cognitive abilities can save lives, you know, so I mean, my, my mom passed away from cancer, so, you know, the, the, um, oncology Watson was very exciting to me, but it's gonna make a difference. And I think the thing is now is that how it's changed is to make them user friendly where you don't have to have a data scientist or an analyst to come in. You know, they talk about how expensive data scientists are. Now the reason I opened my business was to make it affordable to small businesses, you know, so although you know, people look at IBM and think it's scary, I think they're going to see now that the, the direction that they're moving is becoming more user friendly and more available. >>So Carla, I wonder if you could talk about how you engage with clients. So you mentioned small business, right? Cause you have a lot of, a lot of businesses, small midsize companies don't have the resources. Right? Um, so where did they start? Did they start with a call to you and, >>well, uh, most of the time it's a call where, you know, we spent all this money on this database and we still can't get what we want out of it. So it comes down to what question are you trying to answer? I think that's the most important thing because that directly deals with what data that you need. And if you don't have it internally, can we get it externally? You know, can we go through open source, can we get census data? Can we get, you know, work with hospitals and doctors and things like that and use this to be able to feed this information into them to make a difference. >>So what do you do? I mean, are you so CEO calls up small companies, is that got all this data? It's unstructured. I get some social data. I get my customer data trying to make sense out of. I'm trying to figure out, you know, who's >>ready to buy, where I should be, you know, focus my products. Uh, and I got all this, this, this date. I don't know what to do with it, but I know there's some gold in there. I know there's a signal in that data mining, right? So how do I get it? How can you help me? Well, it's gap analysis. First off, I would come in and I would sit down and first of all, I need to see what variables you're collecting. Uh, if you're telling me you you're collecting your name, address and phone number, but you want to do a predictive model, we can't get that. So, um, you know, the question that you want to answer is, is most important? Are you wanting to increase your sales? Are you wanting to get your, to know your customers better, to be able to service them better? >>Like in the healthcare industry, you know, you really want to know what's going on health wise, you know, so, uh, I sat down with them when we do a gap analysis, what are you missing? What do you have? How can we get it? What do you want? Where are you at? Yeah. And here's, here's what you have, here's what you're missing. How do we get at that? And that's oftentimes starts with data sources. Exactly. So then you go get the data sources and then more than what you do, well then we merge it back in. And here's the thing, you have to have that way to connect them. You know, the relational databases will always exist to where you have, you know, client information here and you've got other information over here and you have to always bring that back together. So, um, you know, it's a wonderful time. >>You're a data hacker in a sense, right? Is that fair data nerd in a complimentary way? I mean hacking is about exploration. Yeah, exactly right. So I mean, so you have the skillsets as a data scientist to pull all this data together, analyze it and well, you're going to bring in an external source and then when you bring it externally, you want to make sure that you can match it back up. And now that's the important and without a unique quantify or how do you do that? And that's why when you see databases with all these little arrows and everything pointing to where things belong, I mean we have to be able to pull that in to make decisions. >>Yeah. We were talking with frons yesterday to another influencer. We were talking about this particular point. He was ex P and G back in the day, which is very data-driven. Of course, they're well known for their brand work and certainly on the advertising side, but they're, they're quant jocks over there. They love data. Their data nerds over there, they're kicking out on data. And he used to say that the software would cut off data points that were skewing way outside the median. And so they would essentially throw away what are now exploratory points. So this kind of brings up this long tail distribution concept where, okay, you can get the meat of what you want in the head of the tail and distribution, but out into the long tail is all these skew data points that were once skew standard off the standard deviation that are now doorway. So, you know, we're old enough to know that that movie with Jodie foster with contact where they, they find that little white space, they open it up and there's a, a huge puzzle. That's the kind of things that's happening right now. So exactly >>the same thing. Well, yes, yes. I mean, you know, the thing is, uh, you know, a lot of people don't necessarily have the information that they need. So they're seeking it, you know, when they're going to what Avenue, where, where do I go to get this data? You know, and thanks to open source and things like that. You, you know, we've been able to get more information and bring it together than we've ever been able to do before. And I think people now are more open to analysis where it's not necessarily a dirty word. It doesn't necessarily mean you have to go out and spend $300,000 a year to hire a data scientist. You can sit down, you know, and look at what you have and uh, someone else mentioned that. Take the people that you have that know what's going on with your company. You know, they may not be data scientists, they may not be analytical, but they have insights they have. >>There's more of a cultural issue now around playing with data and an experimental sandbox way where you don't need to have the upfront prove the case. And then pre prefabricated systems you can say, I'm going to do some stuff in jest, for instance, bringing in data sources and play with the data. >>Well, and you mentioned, you know, outliners I mean everything when, when you look graphically at data, you expect everything to fall within this little bubble, this, you know, this thing. But when you see, you know, all these outliners going on for me, usually that means a mistake. Okay. So, and if it's not a mistake, it's something that calls attention. So it's definitely not something you just want to toss aside >>talking about creativity because creativity now becomes, you know, uh, uh, an aspect of the job where you gotta be creative, where it's not just being the math geek or being super analytical and you have to kind of think outside the box or outside the query, if you will, to do the exploration. What's the role of creativity in the new model? >>Well before, I think that we always thought of ourself as just being, you know, matter of fact, you know, just the facts please, you know, but now, you know, you can look at things visually and see, you know, and it is an art form to be able to find that sweet spot in the data. And um, you know, before, you know, years and years and years ago when you would take something like that to a CEO, he would say it was messy, you know, so now you get that creative side where you can actually make things visually attractive. And I think that's important to people too because it's not just data, it's the way you present it. >>It's also the mindset of understanding MSCI is a good start, start with messy and then versus getting the perfect answer. As we were saying, using it with pop-up Jana earlier about, don't try it at the home run right away. Hit a few singles. He's in the baseball metaphor given the world series going on. So totally awesome. Um, but I want to get your final thoughts as we wrap up the segment here on the practitioners out there. What's, what should they do? So there's an approach to the job now, right? So there is a shift and inflection point happening at the same time. What advice would you give to folks out there who say, Oh, I love Carla's interview. I want to do that. I just don't know where to start, what to do. How do I convince management I want to be, I want to get going. What do you, what would you share for advice? >>Well, I'm sure it's the platform. I mean, you know, think about the foundation of a house. Now if you have a strong data foundation, you can build on that. It's just like your house. If you have a weak foundation, your house is going to tumble down. So if you have a strong, you have a strong foundation or with your data and everything is built right now. When I say built right means, what are you trying to do? What are you trying to accomplish? You know, if it's risk, then you need to be, you know, looking at those, those factors. You know, how many people have been hurt? How many of you people been injured? You know, how many people died? You know, I mean, how many breaches do we have? You know, so it starts with the question, what is it that you're trying to accomplish? And then you go from there and collect the right variables. So don't wait, you know, a year later and call a data scientist and going, I've spent, you know, millions of dollars on this. I'm still not getting what I want. So think about an initially in the setup and you know, be involved, involved your analyst, involve your data scientists, make sure that they're in your business meetings because we're the liaisons between it and the Csuite. >>Yeah, and that's the key roles team as a team, that person really is collaborative. We heard from a med earlier pair programming pair, not pay eggs in an accent, pair programming, work in pairs, buddy system. This is really a true team effort. >>Well, I always said, you know, I am a team of data. Scientists can write programs, we can glean insight, but the team part has to come from working with it and working with your C suite. So very much agree. It's definitely a team sport. >>Carla Gentry, owner and data science analytical solutions influencer here at the IBM special presentation and second experience, second screen here in the social media lounge. Really doing a real innovative social business. Again, activated audience, you're an influencer, but also you're really a subject matter expert. Thanks for coming on the cube. Really appreciate and thanks for hosting the crowd. Chat with Brian Fonzo is really good content now. This is the cube. We are live here in Las Vegas. Extracting the ceiling from the noise, getting the data and sharing it with you. I'm John Frey with Dave a lot there. We'll be right back after this short break.

the cube at emc world 2014 is brought to you by emc redefine b.c.e innovating the world's first converged infrastructure solution for private cloud computing brocade say goodbye to the status quo and hello to rokade okay welcome back everyone here live in las vegas for emc world 20 at 2040 i was going to say vmworld because you're a new CEO of vm role here I'm John for a bounder still hanging with Dave vellante my co-host he would Pat Gelsinger cube alumni friend of the cube it's our fifth season we opened up at emc world 2010 in Boston Pat was on the cube then set a great time ever since pad welcome back to the cube just got off the plane from Istanbul how do you feel I feel a little bit yet like that's been a long long day okay we'll get a lot of information out of you did so first time I ask you about the D SSD acquisition I'll see you you known Andy for a while what does that all mean for the industry software at the center of the value proposition is is the hardware and compute going to be this abundant resource that no one ever sees what's your take on all this well i think you know first I think of Andy is like the Rembrandt of hardware design right you know he's just done all the amazing system design work in the industry for many years he's been a friend for many years and just great great respect for him individually obviously d SSD is doing some great work you know I think it's going to prove to be a critical technology in the entire converged infrastructure space and clearly this high-performance flash capacity there's going to be a game changer for what you're able to do in the rack and obviously with bills participation from sa p they see it as a very very critical capability for in-memory environments and some of the data analytics that they want to do so i think this is a a bold move by emc i was a fully supportive of it and i think it's going to yield very very powerful hardware for software to take advantage they bring you in on a deal like that and consult with you is it is it it's about hey Pat we need your advice I saw the board meetings I sit in the M&A meetings and I'm an Oni and so for decades okay yeah so it wasn't just a cursory glance a little bit more than it's been in the works for a while so we've been fine we'll get more information we'll be digging for home sources I'll talk about cloud I've seen last time we're at vmworld we talked about the cloud I said hey is hybrid cloud really going to be the destination you like what are you talking about it's going to be the destination it is the hybrid cloud is the way here at ian's emc world you hear joe tucci up there even using the words AWS disruption amazon is clearly on the radar public cloud is still it is out there as a viable alternative and the words like reinvent which is the conference name for amazon redefine is this conference it's ok to have amazon out there but hybrids cloud is still the deal with containers and what not I mean has a hybrid cloud narrative change for you amplified straight narrow foot pedal to the metal ya know we are absolutely convinced hybrid is the answer and maybe start with a few facts I mean it's always good to ground ourselves in a little bit of data and today on premise is ninety two percent of IT spent so eight percent is in the cloud whereas sales pass so you sort of say wow great and predictions would say by 2020 it's seventy-five percent on-premise the twenty-five percent in the public cloud so you look at that and say boy you know even just from the spin perspective it's going to be hybrid and then you look at facts like security privacy governance s la's liability cost performance all of those things will keep people on premise so it's clearly a hybrid world right where it is the on and off premise and we've clearly seen that as we've laid out this positioning of hybrid the industry is following us we're seeing amazon talk about we're seeing Microsoft talk about or seeing google talk about it all the other big cloud players are saying yo yo VMware got it right hybrid is the answer it seems they all the territory is being claimed now it's like we almost seen in almost not bubble bursts are you seeing box pull there s one obviously their economic of buying customers isn't working so I see that the pullback for they're you're seeing some other companies get massive valuations that aren't publicly traded yeah there's really kind of know really market there and then other companies in the flash marker fusion-io by the memory kind of sub that wasted well below but the container technology so I got to ask you about some of the new stuff that you seeing one valuations and also the new containers we heard da cars pretty hot right now what do you make sense of the containers in particular well on the first of the valuations I mean clearly the Pease of these very high growth you know early stage not money-making companies were just out of control and I have comment on that before at the Wall Street Journal CIO event that they were just way out of range and it's good to see those coming into more reasonable ranges now and I think that will wash through the entire industry because there was this mini bubble of you know just crazy Pease you know and you know with respect to docker and some of the other container technologies that clearly is you know enthusiasm around some of the lightweight stateless mechanisms but what I'll point out is that there have been different container approaches over the last 30 years and the only one that has had sustained architectural influence and investment has been the vm and our effort is continuing to pound the overhead continue to add value security networking management you know all the things that we've been able to build around that's idea of the vm container and of course if people are really you know see lightweight containers is valuable but we'll stick a bunch of them in a vm i mean it's just another management model for a lightweight deployment of stateless apps so John I've been thinking about you know Joe's waves right and we think okay with this next wave that we're in what's different about this way you've laid out a 50 billion dollar tam you just talked about how much of that the public clouds going to get I wonder if we could make an observation to get your feedback on it the economics of cloud they start to look so you've got software economics ninety percent gross margins hardware you know the economics at volume the marginal economics are talking about you know aren't as attractive but they're still good and then services is negative you know but diseconomies of scale if you will it seems like in the cloud that online cloud services are now taking shape the same way software is so at volume you're getting software like economics so the question is how does VMware and VMware you know cloud vcloud hybrid service get to that scale and that volume so that you can participate in that so first of all is it is it a reasonable premise to note and can you get to that scale and how do you get to that scale yeah and you know you'll see a little bit of my keynote tomorrow I'll talk about this a little bit more one is you know we're investing we're growing very rapidly as we expand the number of presences in the u.s. you know second we're very aggressively partnering and we announced their first partnership with savvis you'll see us announce other partnerships like that that we're going to leverage their capital as well right and who invests the most in capital of any industry in the room service providers all right they blow away everybody else so partnering with them the other view of that would be with vGHS is is that we also have our bspp program where you know i'll give some of the stats in the keynote tomorrow but we have an overwhelming right Brett for those vs PP partners that already has us very much at scale as one of the largest clouds not just what we do but through this broad range of partnerships that we form so overall you know we have a very powerful strategy when you add up all of those and given our business model of software and services you know it's very unique and combine that with these statistics I was giving you up on and off-premise and the private cloud you have 40 million VMs 500,000 customers you know we bring a lot to the table once all about a AirWatch so big acquisition the Federation helped a little bit o financing that's absurd yet right so talk about the importance of air watch you know where it fits into the end-user computing strategy and and what gives you excitement about air watch well you know I think one is in the whole end-user computing space you know two years ago people viewed it like VMware had a hobby you know hey we're selling these fear and a you know growing some of this yeah yeah well and you know hiring Sanjay rebuilding the leadership team investing in our end user computing sales force and now the air watch acquisition everybody realizes this ain't a hobby anymore we are taking the space very very seriously and really redefining the industry quite rapidly with the breadth of what we've done with horizon six plus the inorganic move with air watch you know we are here to win in this space and taking share substantially from Citrix and others in the category yo secondly and as part of the whole secular shift not just the cloud but it's the mobile cloud era so it's to redefine and deliver that PC experience but it's also uniquely right to enable the secure managed experience for all the mobile devices as well that's where AirWatch is clearly you know tearing up the track and you know we believe it's separating from the rest of the industry of players as that leader and really gives us the unrivaled portfolio of assets now I talked about the obviously the compute trend is moving to the data center you're seeing the commoditization now the data centers want to do the same way you talk about that publicly so with the software at the software-defined enterprises joe tucci calls we've called the sava define data center how does that change from your standpoint from a focus standpoint because you mentioned you got AirWatch is no longer a hobby you're building a you know business got a tam expansion strategy aggressively investing you have an ecosystem that you've kind of had from your hobby days now you're kind of nurturing it and expanding it what is the focus and from a software-defined perspective what is that focus specifically and how do you keep your troops marching to the cadence of that focus yeah we laid out our three areas for VMware over a year ago we said we're going to do three things software-defined data center virtualized the whole data center second do the hybrid cloud this on and off-premise and then go from the data center to the device pcs and mobile devices you know with what we've done we have all the pieces in place now the acquisitions are all in place the execution and that consistency that we've laid out now for almost a year and a half you know has really resonated both internally to my teams you know to our sales teams through our customers and our partners as well and they get it and you know that consistency has really gotten us more and more momentum we're seeing all of those limits you know really firing on all cylinders at this point so I saw the news that Gould is no longer involved kind of he was kind of cuz he's now the CEO of e mc2 you're the free captain of VMware and the Federation of the ship what is that like for you now and what are you tapping into the Federation what is pure VMware can you kind of square that off in terms of Aussie VMware what are you tap to the Federation what do you have available to you sure sure and you know with the Federation perspective you know we got a lot of benefit from I will say you know the layer that emc provides you know I call up Joe we have a shareholders meeting right yoyo cage oh yeah I'm okay good done shareholders really finish I mean yo some of those things are just elegant definitely right you know we can get things done by John date and at the same time yeah we're accountable to the street for all the financial metrics all the things that you want to be accountable to public shareholders for you know we also get the benefit like you saw an air watch your the cash position we're better aligning ourselves and global accounts were both of us our prep presence so we get the leverage of both sales teams the capacity that we have you're seeing some of the solutions work that we're doing be pivotal assets recently right you know moving things around to you know best position things for the different players as customers or seeing that you know to line those assets between it between us and also very very clearly saying okay you know here are the areas and i'll hit on this in my keynote tomorrow right this is how the vmware assets work with the emc assets and we're going to leverage each other as we go forward but as we say you know the Federation motto is strategically aligned right you know while remain you know loosely coupled so continuing to be able to go partner right with others in the industry to facilitate that flexible ecosystem I want to ask you about Silicon Valley right so obviously you have a great campus VMware means one of the most beautiful campuses in Silicon Valley well done it's fits into the hillside there my favorite areas but as you guys go global Silicon Valley's also going global and there's also kind of like a let's say bubble ish environment out there right now evaluation we just talked about control Silicon Valley's changing what's your take of the currents data Silicon Valley in terms of the innovation I know you're going to be talking with Stanford University and Mark injuries and coming up on a panel has it changed over the past few years and it does it still have that innovation and visit is it bringing it back Alan's of cycles change which you're taken so that well we're going to have a nice campus opening you know beautiful VMware a campus we're gonna have a little party yes I don't know this is the cube invited okay thanks i hope so yes so we're going to be the ribbon cutting ceremony ins and that's going to be great and mark is going to be there john hennessy my thesis advisor now the president of Stanford is going to be there Joe the board so we're gonna have a great event talking about that exact question right and really talking about the future of the valley unquestionably today it remains the hottest bed of innovation anywhere in the world but I think you always look at that and say you know where the recipe is still there as you look to the future and you know competition for labor is intense you know tax rates you know people move out of the valley because of justification and San Francisco big discussion yeah right you know toyota just moved to texas I mean there's always this you know you know do you still have that recipe right nowhere else has even close to the valley and that today race you that in your travels oh absolutely absolutely but every place in the world says I want to be like the valley right every place in the world is saying what do I need to do to create that same recipe you know whether that's bangalore or whether that's beijing or shenzhen right or whether that's a israel or you know many spots in the world well Silicon Valley export that knowledge and is that is that a good thing you know I don't think silicon but you know knowledge ideas right you know this is bubbling cauldron but there's something special about the valley that it's been able to maintain now for you know three decades and it doesn't look like it's coming to an end hey Chuck house is pretty excited about v san are you as excited oh very excited about these why what why you so excited what does it all mean well you know if you're a V admin right which you know is the heart of our customer base you say check find me local disk check provision local disk well I've just done storage right it's powerful it is you know amazingly simple and gives great performance and it redefines the hot edge right for you know via for virtual storage a new tier of storage so we're very excited about it certainly doesn't replace all of storage but it gives a new cheer a new capacity that for a virtual admin is just perfect is that new tier incremental I mean must replace some storage of sexually it's right you know I mean the good news is storage continues to grow right you know it's one of the right the areas of IT that just continues to grow as capacity grows an application demands take and I'm of course there's going to be some trade-offs to the some places and we do see lower capacity lower end of the market test dead some vb i use cases dr use cases where hey people might trade it off versus other all tournaments good news for you MC obviously they're mostly up market right is where their strength is but so we're very excited about be San and really see it as a critical new component of the vmware family and we stream i/o acquisition you made seems to be working out okay you happy about that yeah yeah nothing's been tons of time on extreme I oh these days but you made that that was all a lot of the acquisitions they did at the MC we're doing just fine hey you know and I cheer my team on back there when I meet it was like huh why did that would slip so that's not what the JC we were talking earlier the dream team is now kind of spread thin running their own little ships if you will in the Federation but back when 2010 we started doing the cube it was all kind of under one roof and we kind of said hey you got to get the meat on the bone we talked about in the queue hey the product portfolio is in transition you talk about some of the acquisitions looking back what are you most proud of for the team not just yourself but the group what you guys made some of those calls that might have been on the fence what was some of the highlights you look back and then where you are today well you think about some of the key decisions that we made and you know we did green pump that's now in the center of a pivotal now we did I salon that's performed extremely well we have done the data domain and clearly the whole back up space is performed very well we've also laid some of the seeds for the future right like extreme i/o like Viper were done when I was there so all these things you don't it's done well EMC gained significant share since I joined and they have the tools to really be positioned to help go through this next phase of the transition and obviously under David and his team's a leadership you know the industry remains in transition and that's still affecting EMC and they're having to you know carefully navigate that next phase and I think you've heard a lot from him today we love pulling the sound bites out I have a quote here 430 two days ago from you but I want to don't talk about that now but the quote we had on the cube you said is that if you don't get out from that next wave you'll be driftwood Joe Tucci said today if you don't take an offensive approach with this platform you're going to wither away so let's talk about that getting out in front that next wave in your mind share it the folks out there in your world words why at this point in time so important from an industry perspective you seen in movies before you've seen the massive inflection points you've seen Moore's Law at full tilt you know try to compare where we are today from irrelevance and making sense of the excitement and controversy opportunity yeah well we are as we would say as we're going that you know from client server to mobile cloud right this will be tectonic shifts and write the amount that's going to shift to cloud the amount that's going to shift away from PCs to mobile devices in the industry and all the vendors that have their value propositions tied to a hardware defined approach guess what yeah that's going to be a secular decline where people are going to be competing for a premise based the revenue that way into the mime ironmen that's going to be flat to down right and there's going to be no possibility of growth and you look at what's happened right you know consecutive quarters at IBM for instance boy you know they're feeling the pain right of this transition and the cloud transition it's barely underway right mobile is just scratching the surface yeah you know so these trends are just about to get started you know the analogy I'll give them my keynote tomorrow is 1989 and we're Digital Equipment Corporation and over the next seven years guess what right the entire business is going to shift that guessing always great to have you on the cube just any final parting words about what you're going to work on this week some things you're highlighting customer events us you keynote what do you expect to see here at emc world this week well you know I always see OEMC role is a great place and you know just feel incredibly embraced and our partners at emc and just happy that they give me the opportunity to address the audience here that's always a great joy and it is this period of extraordinary transition and everybody here right as the conference's has to redefine themselves on the other side of these tectonic shifts that are underway and EMC is you know doing that and there you know to all of their partners and customers saying here's what you need to do to go with us event in August right around the corner fat thank you inside of you when he finds one of my closest friends off we love talking with you and we'll see you at your event we're going to be actually attending the ribbon-cutting ceremony I was talking to the folks but getting the cube they're going back and forth but we'll get it done Pat Gessling you inside the cube the CEO VMware friend of the cube would love having you on be right back after this short break Pat glad to see you're like I could see it you