>>Okay, welcome back everyone. It's the Cube's coverage of AWS, Amazon re Mars machine learning, automation, robotics, and space. I'm John Prairie host of the cube. We're here for two days, live coverage, and we're getting all the stories and story here is our entrepreneur hot startup making things happen, making more connectivity, go Diana GenZ, founder and CEO of El speed, El or L speed. Welcome to the cube. >>Well, speed represents how fast we can transfer the data. And so an L is a upper electro sort of magnetic phenomena that lives above thunderstorms and it moves very, very fast. It looks like it moves faster than the speed of light. So we play on the speed of elves. >>Well, let's get into it cuz I love the love, the approach you take. And this is consistent with the theme of the show, a lot of industrial change and innovations sometimes recycling old technology to help invent new ones, integrations platforms coming together, little bit more, open, less proprietary. You're in an area where you're gonna solve the bandwidth problem with unique new ways. Yeah. Pick them in to explain what you're working on. What's the project and what's the ambition. >>Yes, exactly. I think we fit really well in that concept of taking something that has a lot of heritage reliability. We are very familiar with this technology. We've used it for more than 50 years. We like it. Um, and the problem with that technology has been that it's very expensive. It's not affordable, not affordable to people like you and me such that that amount of bandwidth can actually be available to us. So what we have done is really focused on advanced materials and manufacturing techniques to make this new technology significantly more affordable. So like, >>And technology is >>So we make power amplifiers that are based on TTS. So TTS are in amplifiers that actually like are currently being operated on the Voyager way back, long time ago. Um, it's a very old technology and we have taken it and really revamped it and looked at it differently. And how can we make it to technology over the future? Um, so we specifically operate in millimeter wave frequencies, um, and at millimeter wave frequencies, we can provide significantly more bandwidth than what you can do at lower frequency. >>Okay. So the folks that aren't wireless say, what does millimeter wave mean? >>Millimeter wave is the amount of frequency that you have sort of in space. So the wavelength of that frequency is a millimeter wave range. So sort of the size of your nail or something like that, thickness of your nail. And so because of that, when you start operating at those frequencies, you can send significantly more information, right? The frequencies that we use today are sort of on a order of, you know, centimeters, you know, 10 centimeters, something like that. So about like this. And so, and that doesn't allow you to send as much data as you can at these higher frequencies. >>So more bandwidth >>Significantly more >>Than so the problem you're solving is taking something that's actually high bandwidth and has long ranges, >>Correct. >>Should bring it to the common price points to be deployed. >>That's >>Right, >>Correct. That's right. So this particular technology allows you to generate enough power so you can send the data over long distances. So if you are on the ground, you can create 40 plus kilometer links or you can send that information straight to space all the way to the geo stations, right? So you actually have enough power, um, to provide that amount of bandwidth. So the, the challenge has been is affordability, which is what we have done is focus specifically is how do you reduce that cost? >>Well, I love anything that gets me more bandwidth, more, no one ever went out of business for providing more bandwidth. Well maybe the app <laugh>, um, than monopolies. Um, talk about how you got here. What was the origination story? Um, you work at slack, not confused with slack as in the messaging application, the Stanford linear accelerator in technically Menlo park. I think >>It is in Menlo park, in Menlo >>Park up Palo. Okay. >>So, so it's right on sand hill road, right? Right. >>Sand hill road next, all the VCs that drive past it all the time, what's it like there? And how was it like, were you guys working on this at slack? Was it like something that you had a lot of interest in? Were you scratching this itch so to >>Speak? So this particular technology has many applications. Um, and so particle accelerators are one of the applications of this technology. So, and, um, right. So some of the users for particle accelerators are of course facilities like slack, where we do some amazing science. Um, but you can take that same particle accelerator. Right. And we use it for cancer treatment. So one technology doesn't just apply to sort of one solution, you know, I'm using in my company for communications, right. And this is how it related to the work that I was doing at slack. So at slack, my focus was on materials and manufacturing of these particular devices. And I really focused on what is fundamental limitation of how much power you can really pack into the size of the device. If you can really shrink the size of the device, you know, what can you do? And that applies whether it's particle accelerators or these millimeter wave amplifiers that I'm working on today. Um, and yes, slack <laugh> without the K yes. Is, is a, uh, particle accelerated laboratory that's operated, uh, by Stanford for the department >>And all the geeks know about it's it's it's folklore certainly in Silicon valley. Yes. And I didn't even know they had the hidden tunnels behind in the >>Mouth. They do, they >>Too kind of >>Stuff up there. I think they're back to having tours. So that's, it's always worth visiting. >>Let me get a little kind of camera crew in there. All right. Let's talk about back to the, back to your opportunity there. Um, how many people do you have working for you? What's the funding status? Where are you in your journey? >>So I hired my first person last June, uh, and we're at 14 people today. Um, we have just did the first close of our seed round. So we had our Pree round last year and we are sort of in the middle of our seed round right now. Um, and the plan is to get to series a sometime next year, depending on sort of performance >>And what we are already. So you're product building mode right now. >>We actually are in product building mode. We have, uh, product delivery scheduled in the next few months, >>You know? So you have customers ordering amplifiers. >>Yes. We actually have customer orders. >>What's the price point you're getting at what's cause that I could see people lining up in this >>Well. So because of our focus on manufacturing, we are also attaching customer interest to volume. So it depends on whether you're buying 10 of them or a thousand of them. So the price point varies <laugh> >>Course. >>So >>Buying bulk, Amazon <laugh> yes. You have a lot of outposts out there potentially. And you got the telecoms edge booming. Yes. Um, they got full blown data centers now at these absolutely. It used to be just, you know, monopoles or, you know, trust towers. >>Well, so this is one of the advantages of having a wireless technology. If you're trying to put a, a location that's remote or even semi remote for you to be able to put a fiber link, that spot is years an enormous amount of investment. So you can get the same amount of data movement if you switch to technology like ours mm-hmm <affirmative> um, and so, yeah, that's a, it's a great application for, um, for millimeter >>Weight. So things are going good. You got orders, you've got product being built. You're gonna get through your seat to soon to have series a >>Next year. Yeah. And so the next step for us is building a factory, uh, which is we are sort of doing a, a planned low rate, initial production, uh, starting probably at the end of this year, trying to scale to sort of tens of units per week. Um, and then after that, trying to get the factory, they'll be able to do sort of 10 times that, uh, but we are gauging that with a customer interest so that we are matching the production to the >>What's what's your current, uh, verticals that are most interested now. >>So our primary application space is communications and back holes specifically. Uh, I think we're very well positioned to enter that market. Um, it sort of the next focus is going to space. So actually being on the space vehicles and, but to do that, we have to go for the space qualifications. So we have a team focusing on how to space >>Qualified. It's all certifications, all kinds of security checks. >>Correct. So that will take a little bit of time. I think the earliest we'll get there is next year. Yeah. Um, and so, but there is a lot of interest and support from sort of current companies, the new space companies to sort of help move technology faster. Yeah. Otherwise you can't get access to something that's new, right. Space qualification >>Takes space. I'm space force, everyone I talk to here and all over the industry on NASA to space force, they want to move faster. They don't wanna be perceived as that old slow antiquated systems. Yes. They want to be cooler and faster, but secure. >>Absolutely >>Security is a huge deal right now. >>And that's one of the advantages that we provide. Right. We are relying on a heritage technology and also because it's millimeter wave, it provides you a certain amount of security, right. Because it's much, much harder to intercept than anything else. Right. >>Well, exciting news. Congratulations. Thank you. Um, if you wanna take a minute to go plug for your startup, you're gonna hire, um, what's status. >>Um, you mean for my new employees? >>Yeah. What are you looking for customers? What kind of customers you looking hire? >>Absolutely >>Put commercial out there from the company. >>Okay. So when it comes to customers, we are looking for people that are willing to move really fast, as fast as we are moving and willing to actually consider something like millimeter wave for their backhoe applications. So starting at K band and all the way to WB frequencies for those that are my customers, they will know exactly what I'm talking about. Yes. And so, and we are bringing a technology that's reliable and bringing their cost down by a factor of 10, meaning something that was half a million before is going to be significantly cheaper today. And you could afford to actually buy >>Thousand faster, cheaper. >>Exactly. That's that's, that's the thing. So when it comes to employees, so we are growing really fast. Um, and we have a very fun team that cares about people. So for example, we spend one hour every week to actually talk about growth and personal development as sort of part of our culture. It's something we're committed to is that you have to love what you do. And so when you come to work, you better be having fun. Yeah. And so we are looking for people that are very techy, but also sort of are human centered and are willing to make the world a better place, which is what sort of El is all about is, you know, making technology useful for people, right. When it comes to communications, right. Making me a, you connected or us connected to the rest of the world as we sit here. >>Yeah. And more empathetic and connected, like just connected emotionally >>Connected in Mo both ways. >>Yeah. Both ways. Exactly physical and emotional and more bandwidth, more connections. Right. >>And you can have that interaction to be significantly higher quality. Right. If you can actually recreate that environment with my >>Day, I work for you. Sounds like a great place. No, <laugh> no. I'll stay with Mike Day job. Thanks Dan. Thanks for coming on the queue. Appreciate >>It. Of course. Thank you for hosting me. >>Okay. We're here at re Mars. All the hot startups are here. Technologists. It's kind of a geeky nerd show and it's really cool because it's about industrial innovation and about space and all the cool things we love at the cube. I'm John for your host. Thanks for watching.

okay we're back here live ending up day one of IBM's information on demand exclusive coverage for SiliconANGLE and Wikibon and constellation research breaking down the day one analysis I'm John furrier and join my co-host E on the cube Dave vellante of course as usual and for this closing wrap up segment of day one we have analyst and founder of constellation research ray Wang former analyst big data guru software heading up the partner pavilion kicking off all the flying around the world your own event this month past month things going great how are you how are you doing we're going to great man there's a lot of energy in q3 q4 we've been watching people look at trying to spend down their budgets and I think people are just like worried that there's going to be nothing in 2014 right so they're just bending down we're seeing these big orders like tonight I've got to fly out to New York to close out a deal and help someone else that's basically it was a big day to deal that's going down this is how crazy it's going on and so it's been like this pretty much like for the last four or five weeks so flows budget flush I just wash this budget lunchtime what are you seeing for the deals out there give us some of the examples of some of the sizes and magnitude is it you know you know how are you up and run to get get some cash into secure what size scopes are you seeing up yeah i mean what we're seeing I mean it's anything from a quarter million into like five million dollar deals some of our platform we sing at all levels the one that's really hot we were talking about this that the tableau conference was the date of is right dative is is still really really hot but on the back end we're saying data quality pop-up we're seeing the integration piece play a role we also saw a little bit of content management but not the traditional content management that's coming in more about the text mining text analytics to kind of drive that I mean I'm not sure what are you guys seeing alone yeah so what we're seeing a lot of energy I've seen the budget flush we're not involved in the deals like you are Dave is but for me what I'm seeing is IT the cloud is being accepted I'll you know those has not talked about publicly is kind of a public secret is amazon is just destroying the value proposition of many folks out there with cloud they're just winning the developers hand over fist and you know i'm not sure pivotal with cloud family even catch up even OpenStack has really got some consume energy around we're following that so it opens stack yet amazon on the public cloud winning everything no money's pouring into the enterprise saying hey we got to build the infrastructure under the hood so you can't have the application edge if you don't have the engine so the 100 x price advantage and that's really a scary thing but I think softlayer gives IBM a shot here yeah we were talking about self leyva so you are seeing more I'm seeing it aight aight figure deals and big data right and it's starting to get up there so softly I'd love to get your take on soft layers we've been having a debate all day Oh softlayer jaws mckenna what do you what's your take you're saying it's a hosting I've been a look at first of all yeah I love putting a huge gap 9 million dollars per lock event data center hosting now if that's a footprint they can shave that and kind of give their customers some comfort I think that's the way i see it i mean just I haven't gone inside the numbers to see where it's going to be where this energy is but like we're software virtualization is going on where everyone's going on with virtualization the data center I'll give them a cloud play I just don't see ya didn't have one before I mean happy cloud I mean whistling private club Wow is their software involved I think it provides them with an option to actually deliver cloud services with a compression ratio on storage and a speed that they need to do to deliver mobile mobile data analytics right there's things that are there that are required so it gives them an option to be playing the cloud well I just saw I mean in the news coverage and the small inspection that we did I did was I just didn't reek of software innovation it's simply a data center large hosting big on you agree they didn't really have a northern wobblin driving him before this was brilliant on your Sun setting their previous all these chairs deal kind of musical chairs me for the music stops get something it was that kind of the deal no I think they are feel more like customers asking for something and they wanted IBM to have it yeah IBM works it's an irr play for IBM they're gonna make money on this team not a tuck under deal 900 million no I know but they'll make money on it that's IBM almost always does with it I'll leave it up to you guys to rip on I was your conference oh thanks hey constellation connecting enterprise was awesome we were at the half moon bay Ritz we had 220 folks that were there senior level individuals one of the shocking things for me was the fact that when we pulled the audience on day one two things happen that I would never imagine first thing as ninety percent of the folks downloaded our mobile app which was like awesome right so the network was with them the knowledge is with them when they leave the event and all the relationships the second thing that really shocked me we knew we had really good ratios but it was seventy-five percent of the audience that was line of business execs and twenty-five percent IT it was like we were we didn't have to preach to the choir it was amazing and the IT folks that were they were very very innovative on that end so it was awesome in that way so a lot like the mix the mix here is much more line of business execs the last week at hadoop world loose you know the t-shirt crowd right a lot of practitioners you know scoop I've flume hey we got the earth animals ever right oh but no this event is actually interesting IBM iod for me is like I didn't realize this when I didn't I looked at numbers when we're doing a partner event yesterday and there are thirteen thousand attendees here that actually makes that the biggest big data and analytics conference bigger than strata bigger than a whole bunch of other ones and so I mean this is pretty much the Nexus of what about open world big data over there but this is a big opera you see world any world cloud big data yeah hey the between no but so IBM's done a fantastic job of really transitioning this conference from sort of an eclectic swix db2 informix right I'm management routine fest right yeah and now it's like what are the business things I mean what are we trying to save around the world are they telling the story effectively it's a hard story to tell you got big data analytics cloud mobile in the middle and you got social business but then you got all this use case they have success stories if customers that creating business outcomes they telling the story effectively is it not enough speeds and fees is it too what's your take the stories are there we've seen like 122 case studies from the business partner side we just haven't seen them percolate out and I think they've got to do a better job evangelizing stories but what's interesting is like there's that remember we talked about this data to decision level there's that data level that was IBM right here's the database here's the structure here's the content management here's the unstructured stuff this is where it sets then there was that information management level which that they started to do which is really about cleaning the data connecting that data connecting to upstream and downstream systems getting into CRM and payroll and then they got to this level about insights which was all the Cognos stuff right so they've been building up the stat from data decisions so they got data information information to insight and then we're getting to this decision-making level which they haven't made a lot of the assets or acquisitions there but that's the predictive analytics that's the cognitive computing you can see how they're wrapping around there I mean there's a lot of vendors to buy there's a lot of opportunity out there's a lot to connect and they've been working on it for a while but I guess I got to ask you how they doing what's your report card from last year this year better better storytelling better messaging I think the stories are getting better but we're seeing them in more deals now right before we'd see a lot more SI p traditional SI p oracle you know kind of competes and a little bit of IBM Cognos now we're seeing them in a lot of end-to-end deals and what we're talking about it's not like I T deals these are line of business folks that say look I really need to change my shopping experience what do you guys have we see other things like you know the fraud examples that any was talking about those are hilarious I mean those are real I see em in every place right I mean even with Obamacare right there's gonna be massive amounts of fraud there any places that people going to want to go in and figure out how to connect or correct those kind of things yeah so so seeing the use cases emerge yeah and in particular me last week in a dupe world it was financial services you're talking risk you talk a marketing you're talking fraud protection to forecasting yep the big three and then underneath that is predicted predictive analytics so you know that's all sort of interesting what's your take on on Amazon these days you know they are crushing it on so many different unbelievable right on more billion this year maybe it's when you build a whole company which is basically on the premise of hey let's get people to offset our cost structure from November 15th to january first I mean it's pretty amazing what you can do it's like everyone's covering for it and even more funny it's like they're doing in the physical world with distribution centers I know if we talked about this before but what's really interesting is they've got last mile delivery UPS FedEx DHL can't cat can't handle their capacity so now the ability from digital to physical goods they've got that and beezus goes out and buys the post so he can make the post for example a national paper overnight again he can do home delivery things that they couldn't do before they can take digital ads bring that back in and so basically what they're doing on the cloud side they're also doing on the physical distribution side amazing isn't it they're almost the pushing towards sunday delivery right US Postal Service go into five day deliveries sort of the different directions amazon I'm Amazon's going to be the postal service by the time they're done we're all going to subsidize it so so I gotta get you take on the the Oracle early statement Larry Ellison said were the iphone for the data center that's his metaphor a couple of couple or global enrolls ago now you got open stack and though we kind of laugh at that but but amazon is like the iPhone you know it's disruptive its new its emerging like Apple was reading out of the ashes with Steve Jobs Oracle I think trying to shoehorn in an iphone positioning but if OpenStack if everyone's open and you got amazon here there is a plausible strategy scenario that says hey these guys can continue to to put the naysayers at the side of the road as they march forward to the enterprise and be the iphone they've turned the data center into an API so so we got the date as their lock in right so this sim lock in Apple has lock in so is that lock in what's your take of that scenario you think it's video in the open ecosystem world they're all false open because a walk-in also applies but but you've been even to this for a long time right and probably one of the things that you're seeing is that it's not about open versus closed it's about ubiquity right Microsoft was a closed evil empire back ten years ago now it's like oh the standard right it's like ok they're harmless Google was like open and now they're the evil empire right it just depends on the perception and the really is ubiquity Amazon's got ubiquity on it so i did is pushing their winning the developers the winning the developers they got the ecosystem they got ubiquity they've got a cost structure I mean I don't know what else could go wrong I think they could get s la's maybe and once that had I don't know what is Amazon's blind spot I mean s la's I think well a lumpy performance no one wants lumpy right they want the big Dayton who's got ever who's got better public as public cloud SL is denied well I think about what he just said us everybody no but here's think that's a public road statement not an amazon said let's crunch big data computation December fifteenth you tell me what this is all I want to know well I think I think an easy move is I mean this day you've got to do that on premise I just I just don't I just don't think that people are forecasting amazon the enterprise properly and you just set out the Washington Post that is a left-field move we can now look back and say okay I said makes sense amazon can continue to commoditize and disrupt and be innovative then shift and having some sort of on prem playing oh then it's over right then and then gets the stir days surrounded the castle but they really don't have a great arm tremblay have no on print but they could they could get one good I think they want to see well think they want to but I think with them what they figured out was let's go build some cool public service get everyone else to subsidize our main offerings right it's basically ultimate shared service everyone's subsidizing Amazon's destruction of their business right so if you're Macy is why the heck are you on amazon right you know if you're competing with them why the heck are you on Amazon you're basically digging your own grave I'm paying them to do it it's amazing I mean that's that's the brilliance of this goes invade they brag about it yeah digging your own brave like it's a you know put the compute power is great okay great but you're subsidizing Amazon's for the you know compute power so r a great shot great to have you here congratulations on your event constellation research awesome successful venues ahead last month top folks in you're doing a great job with your company and the end the day out today in the last word tell the folks what's happening with IBM what do you expect to hear from them tomorrow I know you're going to be another thing you had to fly to but what does IBM what's a trajectory coming out of the show for IBM what's your analysis I think the executives have figured out that the important audience here is really the line of business leaders and to figure out how to do couple things one democratize decision-making the second thing figure out how they can actually make it easy to consume IBM at different entry points and I think the third thing is really how can we focus on improving data visualization graphics I think you'll see something about that ray Wang on the cube cube alumni tech athlete entrepreneur new for his new firm not new anymore it's a couple years on his belt doing a great job but three years old congratulations we'll be back day two tomorrow stay with us here exclusive coverage of IBM information I'm John prairie with Dave vellante this is the cube will see you tomorrow the queue