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Jonathan Seckler, Dell & Cal Al-Dhubaib, Pandata | VMware Explore 2022


 

(gentle music) >> Welcome back to theCUBE's virtual program, covering VMware Explorer, 2022. The first time since 2019 that the VMware ecosystem is gathered in person. But in the post isolation economy, hybrid is the new format, cube plus digital, we call it. And so we're really happy to welcome Cal Al-Dhubaib who's the founder and CEO and AI strategist of Pandata. And Jonathan Seckler back in theCUBE, the senior director of product marketing at Dell Technologies. Guys, great to see you, thanks for coming on. >> Yeah, thanks a lot for having us. >> Yeah, thank you >> Cal, Pandata, cool name, what's it all about? >> Thanks for asking. Really excited to share our story. I'm a data scientist by training and I'm based here in Cleveland, Ohio. And Pandata is a company that helps organizations design and develop machine learning and AI technology. And when I started this here in Cleveland six years ago, I had people react to me with, what? So we help demystify AI and make it practical. And we specifically focus on trustworthy AI. So we work a lot in regulated industries like healthcare. And we help organizations navigate the complexities of building machine learning and AI technology when data's hard to work with, when there's risk on the potential outcomes, or high cost in the consequences. And that's what we do every day. >> Yeah, yeah timing is great given all the focus on privacy and what you're seeing with big tech and public policy, so we're going to get into that. Jonathan, I understand you guys got some hard news. What's your story around AI and AutoML? Share that with us. >> Yeah, thanks. So having the opportunity to speak with Cal today is really important because one of the hardest things that we find that our customers have is making that transition of experimenting with AI to making it really useful in real life. >> What is the tech underneath that? Are we talking VxRail here? Are you're talking servers? What do you got? >> Yeah, absolutely. So the Dell validated design for AI is a reference framework that is based on the optimized set of hardware for a given outcome. That includes it could be VxRail, VMware, vSphere and Nvidia GPUs and Nvidia software to make all of that happen. And for today, what we're working with is H2O.ai's solution to develop automatic machine learning. So take just that one more step to make it easier for customers to bring AI into production. >> Cool. >> So it's a full stack of software that includes automated machine learning, it includes NVIDIA's AI enterprise for deployment and development, and it's all built on an engineering validated set of hardware, including servers and storage and whatever else you need >> AI out of the box, I don't have to worry about cobbling it all together. >> Exactly. >> Cal, I want to come back to this trusted AI notion. A lot of people don't trust AI just by the very nature of it. I think about, okay, well how does it know it's a cat? And then you can never explain, it says black box. And so I'm like, what are they do with my data? And you mentioned healthcare, financial services, the government, they know everything about me. I just had to get a real ID and Massachusetts, I had to give all my data away. I don't trust it. So what is trusted AI? >> Well, so let me take a step back and talk about sobering statistics. There's a lot of different sources that report on this, but anywhere you look, you'll hear somewhere between 80 to 90% of AI projects fail to yield a return. That's pretty scary, that's a disappointing industry. And why is that? AI is hard. Versus traditional software, you're programming rules hard and fast. If I click this button, I expect A, B, C to happen. And we're talking about recognizing and reacting to patterns. It's not, will it be wrong? It's, when it's wrong, how wrong will it be? And what are it cost to accept related to that? So zooming back in on this lens of trustworthy AI, much of the last 10 years the development in AI has looked like this. Let's get the data, let's race to build the warehouses, okay we did that, no problem. Next was race to build the algorithms. Can we build more sophisticated models? Can we work with things like documents and images? And it used to be the exclusive domain of deep tech companies. You'd have to have teams of teams building the software, building the infrastructure, working on very specific components in this pipeline. And now we have this explosion of technologies, very much like what Jonathan was talking about with validated designs. So it removes the complexities of the infrastructure, it removes the complexities of being able to access the right data. And we have a ton of modeling capabilities and tools out there, so we can build a lot of things. Now, this is when we start to encounter risk in machine learning and AI. If you think about the models that are being used to replicate or learn from language like GPT-3 to create new content, it's training data set is everything that's on the internet. And if you haven't been on the internet recently, it's not all good. So how do you go about building technology to recognize specific patterns, pick up patterns that are desirable, and avoid unintended consequences? And no one's immune to this. So the discipline of trustworthy AI is building models that are easier to interrogate, that are useful for humans, and that minimize the risk of unintended consequences. >> I would add too, one of the good things about the Pandata solution is how it tries to enforce fairness and transparency in the models. We've done some studies recently with IDC, where we've tried to compare leaders in AI technology versus those who are just getting started. And I have to say, one of the biggest differences between a leader in AI and the rest of us is often that the leaders have a policy in place to deal with the risks and the ethics of using data through some kind of machine oriented model. And it's a really important part of making AI usable for the masses. >> You certainly hear a lot about, AI ultimately, there's algorithms which are built by humans. Although of course, there's algorithms to build algorithms, we know that today. >> Right, exactly. >> But humans are biased, there's inherent bias, and so this is a big problem. Obviously Dell, you have a giant observation space in terms of customers. But I wonder, Cal, if you can share with us how you're working with your customers at Pandata? What kind of customers are you working with? What are they asking? What problems are they asking you to solve? And how does it manifest itself? >> So when I like to talk about AI and where it's useful, it usually has to do with taking a repetitive task that humans are tasked with, but they're starting to act more like machines than humans. There's not much creativity in the process, it's handling something that's fairly routine, and it ends up being a bottleneck to scaling. And just a year ago even, we'd have to start approaching our clients with conversations around trustworthy AI, and now they're starting to approach us. Really example, this actually just happened earlier today, we're partnering with one of our clients that basically scans medical claims from insurance providers. And what they're trying to do is identify members that qualify for certain government subsidies. And this isn't as straightforward as it seems because there's a lot of complexities in how the rules are implemented, how judges look at these cases. Long story short, we help them build machine learning to identify these patients that qualify. And a question that comes up, and that we're starting to hear from the insurance companies they serve is how do you go about making sure that your decisions are fair and you're not selecting certain groups of individuals over others to get this assistance? And so clients are starting to wise up to that and ask questions. Other things that we've done include identifying potential private health information that's contained in medical images so that you can create curated research data sets. We've helped organizations identify anomalies in cybersecurity logs. And go from an exploration space of billions of eventual events to what are the top 100 that I should look at today? And so it's all about, how do you find these routine processes that humans are bottlenecked from getting to, we're starting to act more like machines and insert a little bit of outer recognition intelligence to get them to spend more time on the creative side. >> Can you talk a little bit more about how? A lot of people talk about augmented AI. AI is amazing. My daughter the other day was, I'm sure as an AI expert, you've seen it, where the machine actually creates standup comedy which it's so hilarious because it is and it isn't. Some of the jokes are actually really funny. Some of them are so funny 'cause they're not funny and they're weird. So it really underscored the gap. And so how do you do it? Is it augmented? Is it you're focusing on the mundane things that you want to take humans out of the loop? Explain how. >> So there's this great Wall Street Journal article by Jennifer Strong that she published I think four years ago now. And she says, "For AI to become more useful, it needs to become more boring." And I really truly believe in that. So you hear about these cutting edge use cases. And there's certainly some room for these generative AI applications inspiring new designs, inspiring new approaches. But the reality is, most successful use cases that we encounter in our business have to do with augmenting human decisions. How do you make arriving at a decision easier? How do you prioritize from millions of options, hundreds of thousands of options down to three or four that a human can then take the last stretch and really consider or think about? So a really cool story, I've been playing around with DALL.E 2. And for those of you who haven't heard, it's this algorithm that can create images from props. And they're just painting I really wish I had bought when I was in Paris a few years ago. And I gave it a description, skyline of the Sacre-Coeur Church in Montmartre with pink and white hues. And it came up with a handful of examples that I can now go take to an artist and say paint me this. So at the end of the day, automation, it's not really, yes, there's certain applications where you really are truly getting to that automated AI in action. But in my experience, most of the use cases have to do with using AI to make humans more effective, more creative, more valuable. >> I'd also add, I think Cal, is that the opportunity to make AI real here is to automate these things and simplify the languages so that can get what we call citizen data scientists out there. I say ordinary, ordinary employees or people who are at the front line of making these decisions, working with the data directly. We've done this with customers who have done this on farms, where the growers are able to use AI to monitor and to manage the yield of crops. I think some of the other examples that you had mentioned just recently Cal I think are great. The other examples is where you can make this technology available to anyone. And maybe that's part of the message of making it boring, it's making it so simple that any of us can use it. >> I love that. John Furrier likes to say that traditionally in IT, we solve complexity with more complexity. So anything that simplifies things is goodness. So how do you use automated machine learning at Pandata? Where does that fit in here? >> So really excited that the connection here through H2O that Jonathan had mentioned earlier. So H2O.ai is one of the leading AutoML platforms. And what's really cool is if you think about the traditional way you would approach machine learning, is you need to have data scientists. These patterns might exist in documents or images or boring old spreadsheets. And the way you'd approach this is, okay, get these expensive data scientists, and 80% of what they do is clean up the data. And I'm yet to encounter a situation where there isn't cleaning data. Now, I'll get through the cleaning up the data step, you actually have to consider, all right, am I working with language? Am I working with financial forecasts? What are the statistical modeling approaches I want to use? And there's a lot of creativity involved in that. And you have to set up a whole experiment, and that takes a lot of time and effort. And then you might test one, two or three models because you know to use those or those are the go to for this type of problem. And you see which one performs best and you iterate from there. The AutoML framework basically allows you to cut through all of that. It can reduce the amount of time you're spending on those steps to 1/10 of the time. You're able to very quickly profile data, understand anomalies, understand what data you want to work with, what data you don't want to work with. And then when it comes to the modeling steps, instead of iterating through three or four AutoML is throwing the whole kitchen sink at it. Anything that's appropriate to the task, maybe you're trying to predict a category or label something, maybe you're trying to predict a value like a financial forecast or even generate test. And it tests all of the models that it has at its disposal that are appropriate to the task and says, here are the top 10. You can use features like let me make this more explainable, let me make the model more accurate. I don't necessarily care about interrogating the results because the risk here is low, I want to a model that predicts things with a higher accuracy. So you can use these dials instead of having to approach it from a development perspective. You can approach it from more of an experimental mindset. So you still need that expertise, you still need to understand what you're looking at, but it makes it really quick. And so you're not spending all that expensive data science time cleaning up data. >> Makes sense. Last question, so Cal, obviously you guys go deep into AI, Jonathan Dell works with every customer on the planet, all sizes, all industries. So what are you hearing and doing with customers that are best practices that you can share for people that want to get into it, that are concerned about AI, they want to simplify it? What would you tell them? Go ahead, Cal. >> Okay, you go first, Cal. >> And Jonathan, you're going to bring us home. >> Sure. >> This sounds good. So as far as where people get scared, I see two sides of it. One, our data's not clean enough, not enough quality, I'm going to stay away from this. So one, I combat that with, you've got to experiment, you got to iterate, And that's the only way your data's going to improve. Two, there's organizations that worry too much about managing the risk. We don't have the data science expertise that can help us uncover potential biases we have. We are now entering a new stage of AI development and machine learning development, And I use those terms interchangeably anymore. I know some folks will differentiate between them. But machine learning is the discipline driving most of the advances. The toolkits that we have at our disposal to quickly profile and manage and mitigate against the risk that data can bring to the table is really giving organizations more comfort, should give organizations more comfort to start to build mission critical applications. The thing that I would encourage organizations to look for, is organizations that put trustworthy AI, ethical AI first as a consideration, not as an afterthought or not as a we're going to sweep this on the carpet. When you're intentional with that, when you bring that up front and you make it a part of your design, it sets you up for success. And we saw this when GDPR changed the IT world a few years ago. Organizations that built for privacy first to begin with, adapting to GDPR was relatively straightforward. Organizations that made that an afterthought or had that as an afterthought, it was a huge lift, a huge cost to adapt and adjust to those changes. >> Great example. All right, John, I said bring us home, put a bow on this. >> Last bit. So I think beyond the mechanics of how to make a AI better and more workable, one of the big challenges with the AI is this concern that you're going to isolate and spend too much effort and dollars on the infrastructure itself. And that's one of the benefits that Dell brings to the table here with validated designs. Is that our AI validated design is built on a VMware vSphere architecture. So your backup, your migration, all of the management and the operational tools that IT is most comfortable with can be used to maintain and develop and deploy artificial intelligence projects without having to create unique infrastructure, unique stacks of hardware, and then which potentially isolates the data, potentially makes things unavailable to the rest of the organization. So when you run it all in a VMware environment, that means you can put it in the cloud, you can put it in your data center. Just really makes it easier for IT to build AI into their everyday process >> Silo busting. All right, guys, thanks Cal, John. I really appreciate you guys coming on theCUBE. >> Yeah, it's been a great time, thanks. >> All right. And thank you for watching theCUBE's coverage of VMware Explorer, 2022. Keep it right there for more action from the show floor with myself, Dave Velante, John Furrier, Lisa Martin and David Nicholson, keep it right there. (gentle music)

Published Date : Aug 30 2022

SUMMARY :

that the VMware ecosystem I had people react to me with, what? given all the focus on privacy So having the opportunity that is based on the I don't have to worry about And then you can never and that minimize the risk And I have to say, one of algorithms to build algorithms, And how does it manifest itself? so that you can create And so how do you do it? that I can now go take to an the opportunity to make AI real here So how do you use automated And it tests all of the models that are best practices that you can share going to bring us home. And that's the only way your All right, John, I said bring And that's one of the benefits I really appreciate you And thank you for watching

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Jonathan Seckler, Dell Technologies & Keith Bradley, Nature Fresh Farms | Dell Technologies 2022


 

thecube presents dell technologies world brought to you by dell good afternoon everyone welcome back to thecube's third day of coverage live from the show floor at dell technologies world 2022 lisa martin here with dave vellante we've been having lots of great conversations the last day and a half one of the things we love to do is really hear from the voice of dell's customers and we're going to do that next please welcome jonathan suckler the senior director of product marketing for dell and keith bradley the vp of i.t at nature fresh farms guys welcome hey great to be here thank you great thank you for letting us be here of course thanks for joining us so jonathan we're going to start with you we've been hearing a lot about we've been talking about ai for decades we've been hearing a lot about ai at the show it's it's so it's pervasive right it's in our refrigerators and our thermostats and our cars and that hockey puck thing that's in the kitchen that plays music when you're cooking right what's going on what is do you think from dell's perspective is fueling the adoption of ai now you know there's it i think that there's this huge interest in ai right now and you and you you're definitely pointed out a lot of the great success stories around ai but the the real benefit of is that you know with with with artificial intelligence applied to a lot of business problems you can solve them in ways that are that are much quicker than you would expect you know and you can solve them in ways you wouldn't have expected uh uh you know then than than you do what's really surprising though is as a as many as many people are interested in in using it and and all of the benefits that come from it though is that we really don't see the adoption being as quick as we would like to right i mean i want to say that like 80 percent of companies out there want to use ai they're testing ai you know they're they're they're planning uh projects around ai applications but when you ask them what's in production it really is still it's an innovator's game like you know companies like like nature fresh farms with uh what they're doing is truly at the tip of the spear what are some of the challenges jonathan that you're seeing from an adoption perspective of 80 say we want to actually be able to leverage this emerging technology in production the challenges are i think the pers it's a perceived challenge issue right i think there's like three big issues that people perceive as being uh barriers to adoption um the first one is pretty obvious it's cost right they they see artificial intelligence you they hear about all of the uh you know specialized hardware and and the software and the new and the people and the talent you've got to acquire to uh as being a barrier to that and they don't see the benefit or they they balance that against the benefit i think there's an issue also with uh complexity right because at the same time that you know you're building these these infrastructures around what you need to do for an artificial intelligence-enabled application there's this expectation that it needs to be separate and different and special and that becomes an issue from a management perspective right uh and i think finally uh it's uh it's change right i mean you you're you're bringing in new talent new new skill sets you're bringing in new technology and i think a lot of companies still today you know look at that as being like well what if if i do this am i really going to see the benefit if i am i stuck going down a path that i that i'm going to change later on and i think that's really the issue uh you know those but they're all perceived issues they're they're in in reality they're really not that true i mean keith has this done that nature fresh farms has done some incredible stuff right with with ai in an area that i i would never have guessed being a ripe for that kind of innovation you know so lisa keith knows that i love you know fresh tomatoes i live in the northeast where it's cold six months a year so we plant our tomatoes at memorial day weekend yeah right and then maybe you're lucky if you get tomatoes late august september and then you're done however you and i met a couple years ago you sent me all these vegetables i think i was popping the tomatoes like candy and then i interviewed you you were live in the giant greenhouse and it's just amazing what you guys have going to jonathan's point you're using ai to really create you know sustainable continuing flow of awesome vegetables tell us more about nature fresh so at nature fresh farms we're a 200 acre greenhouse just shy of 200 acres growing bell peppers and tomatoes and one of the biggest use cases for us in our ai is everything we do we need to be proactive so we need that ai to not be reactive to climate change to what happens to the weather to be proactive so it changes before the plant reacts because every time the plant will doesn't do as great we've lost production from it so we're always using our ai to help increase the yield per square meter inside of our greenhouses so everything from the growth the length the weight of the plant we monitor everything we want to know every aspect of that plant's life it's almost like doing an ekg on a plant 24 by 7 and wanting to know everything out of it how old is is the company nature fresh farms started in 1999 so we're just hitting 23 years now so we started off as a 16 acre little greenhouse our owner kind of got into it saying i think this is going to be new and he was one of the first ones to say i want to be all computers i want to do it culturally this is this was not an upsell or a hard sell for you from the vp of i.t perspective no no he's always been one saying that technology will change the greenhouse industry and that by adding technology the expertise is in the growers and letting technology help them do more because when we first started in the greenhouse industry you'd need a grower for every range so every 16 acre range would need a very senior grower now we have one grower that does 64 or almost 100 acres of greenhouse he'll have junior growers but he's able to do so much more so where do you specifically apply the ai can you talk about that uh so we talk specifically we apply the ai in almost all areas anything from picking the plant to the climate of the plant we'll do all those areas even on the packing line we actually have uh one robot well not a robot story a machine that looks at a box of tomatoes and basically tells us which one doesn't match the proper red because how you see red how you guys see red is slightly different so it'll tell us that this red tomato doesn't match so change out the right one so when it goes down the line into the consumers they're all exactly the same so it looks unified it looks beautiful like that how about that you're sending out red tomatoes yeah yeah that's what we do now what is dell's role in all this so dell's role has helped us grow what we do we started off with power scale and vxrail and stuff like that so everything's hosted on that and they have been a great partner at finding that solution to them i've been able to go to them and say hey i'm running into a storage problem i'm running into a compute problem they've been able to find a validated solution for us to use and to put out there and help us grow and then the next part that was really great that we've really now done is it's scalable as we're growing we've been able to community add more compute and more storage but not have to take things down to do it and that's what we really wanted to do yeah no i i think and i think what you're talking about there is really the one of the big issues that i was talking about earlier which is around complexity and cost right you know one of the answers to doing artificial intelligence in the enterprise is making sure that you can maintain and have an infrastructure that scales that's part of everything else and and to do that you've got to virtualize it and you know with power uh with a dell vxrail and power scale which it's all running vmware uh with with the uh with the containers and the vms on top of that actually managing you know and running those applications it takes a lot of the complexity of of worrying about where you're going to how you're going to manage that infrastructure and who's going to do it who's going to back it up how are you going to how you're going to you know keep costs down so it really really helps i think yeah yep and we just love it because we're able to take that solution make it better and make it do more and more every day and it's it's allowed our growers to see exponential time where they did it years ago it used to be overnight to get results sometimes from our system doing it now we're seeing it in real time and that's where i it really got to that point now where we're being reactive proactive to the to the plant the weather to stuff we know exactly what needs to happen before happens and that makes the plant grow more and that's what we're always aiming to do you know if you don't mind one of the things that i you were telling me about i think is really fascinating so is this idea that you know you need to have a data scientist you need a whole new staff to manage these applications these these technologies but you were talking about your growers are actually yeah they're actually data scientists that way right that's what we like to call them we call them grower scientists right now green sciences data scientists yeah because they've researched this data they know what the plant does and it's it's been a neat transition we talked about that how they went from being out in the greenhouse so much to being in front of the computer now but now with the help of ai they're more able to get back out into the greenhouse to now watch the plants see what's going on and be a part of the growth again and they said it's been great but they're the ones that are looking at these numbers every day every second if it's not remotely from home it's remote on the greenhouse they're launching everything because yeah think about they're watching 64 acres of land and making sure that does everything it needs to do so lisa this is a really good example of sort of distributed data at work right about this whole notion of data mesh where you have domain experts actually own the data you know they know they can bring context to the data it's not somebody who's just oh it's just data i don't really know what to do with it it's somebody who actually knows what it what it means that to me is a future use case that's going to explode yep it's like me i i look at their data and they always tease me because i'll look at it and i'll go yeah i have no idea but it's giving you numbers so are they right or not and it's a it's always a joke in the in the plant that i like ah you don't got question marks so it's working and then i'll go to them and say is this right and then they'll say yep we're on we're getting what we need i love the idea that you know we've we've heard of this term citizens citizen scientists or citizen data scientists and you have a grower data scientist yeah and i think that eliminates you talk again those problems like or challenges i mentioned earlier that kind of eliminates the complexity issue you know the uncertainty issue the fear of change when you've got your own uh teams who are who know what they need to do and they have the data to do it it just changes the game right yeah and the other two we found is i've always believed in it myself if you love what you do yeah you commit so much more to it and our growers they love what they do so their passion just exudes into the data and then it comes right back into the product well the technology is an enabler of their passion really i'm curious keith how the obviously the events of the last two years have been quite challenging how has ai been a facilitator of what seems like a competitive differentiation for your company uh it actually really accelerated it because we really had to invest in it that's when we started the the big journey to the vx rail the power protect data management we really had to invest in and then we heavily invested in the ai we've always had some lingerie in the background and it's always been there and we've been using it for years and years now but it really brought it right to the forefront though we have to do this better and we had to really push everything and as we grew it became more and more apparent that we were taking that road that investment was paying off for us now yeah how do i buy ai from you so you know it's interesting like i said we want to make it easy for for customers to implement an ai solution at dell and it's not so much that you go out and you buy an ai right or something like that what you're doing is is you're you're making your infrastructure ready for the applications that you need to run right and so at dell we have this uh these predefined uh architectures that we call validated designs they're validated uh to work in you know in a co in any a common environment we take the you know we take the guesswork out of uh how to put these systems together uh and in the case of artificial intelligence you know we we validate with our partners like uh uh vmware and like nvidia to make sure that the technologies work together so that they fit into the existing infrastructure they already have and uh you know in a way it's i think of it as virtualized ai but i think even more importantly it's it's ai for for any company it's not not for the not for the special scientists and you know not for the not for the uh the researcher at the university it's it's for you know it's for nature fresh farms with vxrail it's software defined you're able to bring in a gpu you've got the flexibility to do that for example yeah whereas with the traditional you know the old days you wouldn't be able to do that you'd be you'd have a lot of time on your hands and a lot of compute power you spent a lot of money doing what you need to do yeah oh yeah we'd be spending all the time working at it growing it and doing more and it just made our life easier not to manage the life the managed life cycle of the ai systems that we have is so much easier now because it's all predefined it's all it's all ready to go upgrade process all that is built into it yeah so life cycle is much easier from the i.t side so keith talk to talk to those folks in the audience who might have those those perceived challenges or limitations that jonathan was talking about because you're making it sound like this has been such an enabler of a business that's 23 years old we're taking growers who are experts at growing and they're playing and loving playing with data and ai how do you how do you advise folks to really eliminate some of those preconceived challenges that are out there i would say you have to sit there and just dive in you have to actually start to do it but you have to think about not where you the first two steps say where we want to be five steps from now and then say talk to a partner like dell with us and say this is where we want to get to this is and then figure out a way how to get there and committing to that path you can't get frustrated the first few times ai is very flustering sometimes the first few pass don't work and just saying going back to the drawing board each time we'll do it we've had a couple experiments where it didn't work and we didn't get the results we wanted and we had to just say let's change our thought process and how do we optimize this ai and then all of a sudden we started getting the right results but that it's it's like uh falling over the first time you fall over as a child it's gonna hurt but each time he gets a little less each time failure is progress yeah that's right that's right fail fast yeah failure can be a good f word yeah if you but you have to be open-minded yep oh yes every minute every minute you have to be open-minded and you have to you have to think outside the box too and that's the biggest part of things it's just not accepting things and just saying we have to do it but you have to have the culture that will embrace that and it sounds like the growers these are people that are expert and growing how it sounds like it wasn't an uphill battle to get them to come on board and become these citizen growers data scientists well you know it was funny because with the technology it kind of gave them that work-life balance that they didn't have before their life was inside the greenhouse because the plants grow 24 by 7. so now all of a sudden they just kept growing they could they could go home they kept doing their thing they could go home at five o'clock and because of the vdi solutions and stuff like that and the ai that's helping them grow they can kind of turn off and instead of having to come in sunday morning and that the the one joke we used to have is that on sundays if you're in church and there's clouds had come rolling out all the growers would stand up and leave because they had to go to their church they had to go back to their farm now the system does that automatically for them so they're able to get their work life home balance back so it was different for them it was a jump for them anybody that's not used to technology and jumping into it is hard but once they started to see the benefits and what more yield they can get and the home work life balance it was amazing there's no i can't underestimate the work-life balance enough i think it's challenge it's a very challenging thing for people in any industry to achieve we've we've seen that in the last two years with you know do i live at work do i work from home so achieving that is kudos to you and for del for enabling that because that's that's big that that affects everybody guys thank you so much for joining us talking about ai what you're doing at nature fresh the future what's possible yeah and how you buy ai from dell no i think it's great i think you know nature fresh farms is a great euro you've been a great like a great partner for sure but also this great kind of beacon to show people how it can be done and i think it's just a thank you very much we really enjoyed it excellent well thanks for thanks for bringing the beacon on the show we appreciate it we want to thank you for watching for our guests i'm lisa martin for dave vellante i'm lisa martin i should say you're watching thecube day three of our coverage live from the show floor of dell tech world 2022 stick around we'll be right back with our next guest after a short break [Music] you

Published Date : May 4 2022

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Cassie Wang & Jonathan Allen, Microsoft | Coupa Insp!re 2022


 

(upbeat music) >> Hey, welcome back to Las Vegas. Lisa Martin here, covering Coupa Insp!re 2022. theCUBE is really happy to be here at this event. About 2,500 folks are here, which is great to see. I have two guests from Microsoft with me. Please, welcome Jonathan Allen, the director of global network modeling design and planning, and Cassie Wang, senior global network model and design engineer. Guys, thanks so much for joining me today. >> No problem. Thanks Lisa for having us. >> Thank you. >> So let's talk about what's going on at Microsoft, the Microsoft supply chain. Supply chain is a term that's on everyone's lips these days for some interesting reason, but talk to me a little bit about the Microsoft supply chain and how does it scale to meet the needs of business? >> Yeah, Lisa, it's really an interesting design at Microsoft. When you look at all the products we service, from Xbox consoles, controllers, Xbox games, Xbox Live cards, service devices for retail customers, for consumer customers and commercial customers. And then the way we go to market through distributors, retailers, and direct to consumer homes, we have to have a supply chain that actually executes across all the products and customer needs based on seasonality. When you think about our products, Xbox console heavy Christmas, heavy consumer, heavy retail commercial devices for service, heavy quarter ends, heavy periods of time back to school. So, we have to have a supply chain that effectively works across all of our products, all of our customers, and all the differences analogies that we have to manage. >> And do so globally? >> And do so globally. >> So talk to me about the transformation. That's a word that we talk a lot about digital transformation, right? >> Yes. >> Before COVID, now we've seen the acceleration of digital transformation during COVID, we've seen challenges with the supply chain. Talk to me about Microsoft supply chain journey from a digitalization perspective, what you guys have gone through. >> Yeah, absolutely. Data is the key. And I have a philosophy which is around managing a business by facts and figures. And so, when Cassie first came on about a year and a half ago, our focus was on digitizing our supply chain. So how do you take our physical supply chain, digitize it in a way that you have a digital mapping and a duplication of what's happening physically in a digital way across the supply chain. So about every single day, we're grabbing in about 500 gigabytes of data, that then allows us to understand the physical and the virtual world of our supply chain, to understand how it's moving, how it's executing and how it's delivering. As for example, we were able to, when the war began in Ukraine, to understand where our trains were, how they were moving, and if they were continuing to move versus stopping. On the second side, we're leveraging that data now to make decisions about where our supply chain is today, which is really focused in the changing environments that are real time occurring. That's driving opportunities, whether it's about reducing carbon, whether it's driving cost down or whether it's servicing the customers to make real time decisions, while at the same time planning for three to five years out based on our growth, our projections, and making sure we'll have the right infrastructure partner supply chain in place to service with those changes in growth. >> Basically you need a crystal ball? >> Basically. >> Essentially? >> Yes. >> And Cassie, it sounds like from what Jonathan just said, you joined the team during the pandemic? >> Yes. >> So, during a time of massive change? >> Fully remote, yeah. Talk to me a little bit about that and some of the opportunities that you saw in helping the supply chain modernization. >> Yeah, definitely. So when I joined Microsoft, it's great time. And it's all the risks and challenges and dynamic changing environment that's really involved. So we spent a long time, like from the time I joined Microsoft, we spent the time to set up this digital chain of our supply chain. So really to transform what is happening physically to how do we see it digitally. So just to bring the visibility of the supply chain. So the great thing is we are able to leverage the tool from Coupa, the digital transformation and also supply chain design optimization tool to help us really build the digital twin, and also the model for Microsoft device supply chain. >> Now, interesting comment. So when I met Casie, the first time I met her, was in person when I interviewed her. Second time I met her in person was here at Coupa, and I was afraid I wouldn't recognize her. (all laughing) >> Of course, challenges of last year. Talk to me about speaking of challenges, talk to me about some of the challenges that Microsoft saw and said, "We need a partner like Coupa to help us eliminate these challenges. We don't have time. Real time is no longer nice to have. We've got to be able to transform, so we have that visibility in real time." >> Absolutely. When you think about time, time and decisions, overnight, cities get locked down in China, cities get locked down in Europe. And if you wait days or wait hours, that could be the difference between product on a boat, product on a plane, or product not arriving to support your customer needs. >> Right. And then the question is knowing that with that real time, how are you making decisions real time to change, to alternate airports? Making changes on the products you're making to make sure that, I was making this but now I should make this, because I have a risk of getting product to show. >> And you've got to do all that with very limited amount of time. And of course, cause there's the consumer. I mean, we think about the Microsoft on the business side but the consumer side, you mentioned some of the consumer products you don't offend the Xbox, the service consumers. One of the things that was really in short supply during the pandemic and probably still is to some degree, is patience. >> Yes. >> The consumer experience is so critical for a brand. >> Correct. >> And as is the employee experience. >> Yes. >> Talk to me a little bit about, from a supply chain digitization perspective, what was some of the executive sponsorships? Who were some of those executive sponsors that were involved in going, "Yeah, we need to move in this direction with Coupa, and it's got to be now."? >> The real supporter behind that is, my manager, Jeff Davidson, and then his leader, which is Donna Wharton, where they are truly about what are we doing next? How are we going to leverage the tools and the capabilities that are provided by others that allow us to do our job? So let's be clear on, let's use those that are designed to do what they're supposed to do, and then build where we need to. And that was the big difference, the digitization of the data, create the data, create the information so that we could then leverage the tools to create the information, right? And that information is then about bringing the facts, the information and the data forward, to have very fact-based conversations, which is back to manage the business by facts and figures. >> Right. Well, Cassie, one of the things that we've also learned in the last couple years, is that every company is a data company. If they're not a data company they're probably not going to be around. I even think of my grocery store and all that data that they have on me to be able to surface up. What did I buy last time, and I want to buy that again? Talk to me a little bit about why was Coupa the right choice to help facilitate this data strategy so that the visibility and the supply chain and the ability to tweak things on demand is there? >> Yeah. So, the main stuff that we are leveraging from Coupa are the data group and also the supply chain group. So data group enable us to really, for the people who do not have a intensive data manipulation backgrounds, they can use data group very straightfowardly to work on the data so they can build, they can grab the data transactional level and aggregate to the leadership level to see data in different aspects, tell the trends to get the key information. So that's the power of getting the massive data on a level that's like everybody can say, "Oh, wow! This is what it means." And another is definitely leveraging the data to get into a model, which is what we just talked about, the digital twin of our physical supply chain. So, we are able to like make analysis based on very easy design, like sensitive analysis, what-if analysis, to test out what our future supply chain can be. And what is the cost benefits? What is all the impacts on the on the lead times? On the carbons? So, yeah. So that's the power of leveraging the data. >> Speaking of carbons, how is Microsoft working towards being carbon negative, zero waste? What's some of the things that are going on there from a corporate responsibility perspective? >> Yeah, that's a really important one. As known about two years ago, we came out with a pledge to be carbon neutral by 2030. >> 2030. >> And so, the company as a whole is doing massive initiatives from different groups, but specifically in supply chain, we're constantly focusing on cutting our carbon footprint, whether it's the way we're making the products and designing the products, whether it's the way that we're designing our warehouses. So for example, just recently, we launched a Carbon Neutral DC in Europe, which is all solar panel based. We're about to do that as well in one of our US operations. We're working on other things that allow us to think about alternative pallets that eliminate the weight of wood, to a much lighter pallet that has a huge carbon reduction when you think about shipping things via the air and the carbon impact there. So, everything that we work on is really around three things; service, cost and sustainability. And our biggest objective is really taking all three of those objectives and trying to bring them closer to each other so that the decisions aren't as large against each other when you make one versus the other. That's our objective. So, how do we continue to move that ball forward, challenge the paradigms of the old, that we're so accustomed to and really move forward to changing? >> How does Coupa help with that? >> Oh, I can't say that, yeah. >> Yeah, so one of the actual dimensions, Microsoft our goal is to achieve carbon neutral by 2030. So traditionally, the trade off might be between cost and service, right? >> Okay. And now, the carbon is the most important priority. So the trade off, the balance, are between cost, service, time and carbon. So one of the great thing that Coupa can help us is in the network modeling. There is actually objective for lowering the carbon emissions. So that can be the top priority that you wanted to solve through your network modeling like in parallel to cost, to service. So you can just like very straightforwardly put more weight into carbon when you're making your decisions, like that can be a higher penalty cost when you have more carbon emissions. It's like a very straightforward way to translate the carbon goal into some quantifiable goal into the modeling and data. >> Jonathan, I'm curious from a Microsoft strategic partnership perspective, how important is it from Microsoft to partner with companies that have that strong commitment to help facilitate being carbon neutral by 2030, having a strong ESG initiative? >> It's critical. Microsoft for the most part is an outsourced supply chain in which we measure partners across the network. We have our partners run our distribution and centers, we have outsource manufacturing, we have outsourced logistics. And it's important that we're working with them about what their plans are, because they're just simply an extension of the Microsoft supply chain. >> Right. >> Right. They're not not just companies we work with, they're companies we partner with, to think about how can we change the future? What are the alternatives that we can do? How do we think about alternative fuels? How do we think about alternative shipping ways? How do we think about creating density in the network? So one of the biggest things when you really think about optimization is really around creating deensity. How do I create more with less, and make sure I'm taking, for every dollar spent, for every shipment made, I maximize it to its fullest, and leave no waste behind it? That's the goal. And so, partners challenging us is probably the most important piece because they're on the front line. They actually see our shipments, they see our loads, they see the work we're doing and how it's translating to their environment. And it's important that they give us that hard feedback back that allows us know where we're not meeting the bar. >> Got it. Cassie, you guys are giving a presentation in about a couple of hours. Talk to me about some of the things that the audience, like if you had to summarize the top three takeaways that the audience is going to learn from the top, what would they be? >> I think the first is sustainability. So we want everybody to know that this is the key mission for Microsoft. That's one of the priorities for the next eight years for Microsoft to achieve. And the second is just how Coupa can help us achieve that goal. And how do we leverage the the applications, the tools, the cutting edge technologies for us to achieve a sweet balance between sustainability and technology supplychain? >> I think one of the greatest things about conferences like this, is that Coupa is great with that customer centricity, is it the opportunity to hear from the voice of the customer? What challenges you had? Why you chose Coupa? How you resolved them? And that crystal ball that you talked about in terms of where we're going from here. I think that there's so much value. I'm sure in what you're going to share today with the audience. Jonathan, last question for you, for other folks in any industry that are about to embark on, or are in the midst of a supply chain, digital transformation, what's your advice? What recommendations would you give? >> For me, it's really about two things. First and foremost is about creating data. Focus on data, not an answer, not a conversation. What is the information that you require? And then the second piece about that is then how do you make sure you stitch it together? And how you create, whether it's manufacturing data, whether it's purchase order data, whether it's sales order data, whether it's shipment data, whatever it is, making sure that you can stitch end-to-end together, because each individual decision by itself, may be right, but could be wrong, because ultimately, it's about the decision for the whole, not the decision for the one. And then making sure you focus on the cultural change, which is around, it's just not my area, it's just not my thing, it's about the end, it's about the planet, it's about Microsoft, it's about the customer, it's about the future, and making sure you're really really focused on making that change, right? Not my change. >> Right, and Rob Bernstein even alluded to that a little bit this morning in his keynote talking about one of the things that Coupa breaks is silos. >> Yes. >> Organizations that, cause to your point, something might be really good for sales or operations, but not good for marketing or logistics, for example, need to be able to have that visibility across, but also another thing that Coupa is famous for is collaboration. >> Correct. >> Being able to enable that collaboration across lines of business, across teams, across partners. >> Yep. And an important statement of that is, when you think about change, think of it like a stream, right? Streams, they create pathways with persistence. When you believe in something and you're truly behind it, just stay the path, right? There'll be a time and a place, cause sometimes the decisions just aren't now, but they will become. There's a lot of things that, for example, myself and Cassie are constantly working on, that might not be right now, but they will be right in the future. And it takes sometimes, just the right opportunity, the right situation, but the key is making ysure you understand those things so when those opportunities present themselves, you can just step in. >> Yep. Another thing we've learned, I think in the last two years, I'm losing count, is it's not a matter of if, but when. >> Correct. >> And you can apply that general statement to pretty much anything these days. >> Absolutely. >> Guys, thank you so much for joining me talking about Microsoft's transformation of the supply chain, the digital twin that you've created. Have a great time in your session. I'm sure folks are going to learn a lot from you. >> Thank you very much. >> Thank you so much. >> All right, my pleasure. For Jonathan Allen and Cassie Wang, I'm Lisa Martin. You're watching the the CUBE's coverage of Coupa Insp!re 2022 from Las Vegas. Stick around, be right back with my next guest. (upbeat msuic)

Published Date : Apr 6 2022

SUMMARY :

the director of Thanks Lisa for having us. about the Microsoft supply chain and all the differences analogies So talk to me about the transformation. Talk to me about Microsoft Data is the key. and some of the opportunities that you saw And it's all the risks and challenges the first time I met her, talk to me about some of the challenges that could be the difference Making changes on the products One of the things that is so critical for a brand. and it's got to be now."? the digitization of the data, so that the visibility and also the supply chain group. to be carbon neutral so that the decisions aren't as large Yeah, so one of the actual dimensions, So that can be the top priority of the Microsoft supply chain. What are the alternatives that we can do? that the audience, And the second is it the opportunity to hear What is the information that you require? talking about one of the things need to be able to have to enable that collaboration just the right opportunity, is it's not a matter of if, but when. And you can apply of the supply chain, For Jonathan Allen and Cassie Wang,

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Jonathan Rende, PagerDuty | PagerDuty Summit 2021


 

(upbeat music) >> Welcome to theCUBE's coverage of PagerDuty Summit. I'm your host, Natalie Erlich for theCUBE. We're now joined by our guest Jonathan Rende. He is the SVP and General Manager of Products at PagerDuty. Thank you very much for joining the program today. >> That's a pleasure to be here. Thanks for having me, Natalie. Well, Summit 2021, an exciting time for PagerDuty. What are you looking forward to most? >> Well, finally, I'm looking forward to at some point, hopefully, not having to wear my mask in public anymore. I know that's the right thing to do still, and I am doing that, but it seems like things are starting to get back to normal. And because of that, what we're finding is a lot of our customers and clients business practices, especially in certain industries like the hospitality and entertainment, they're coming back as well, and to pre-COVID levels and their same level of usage and everything obviously, that got a little bit dampened during the pandemic. So I'm just looking forward to businesses normal and probably the biggest is talking to my colleagues in three dimensions in person versus two dimensions on a zoom. >> Right. Right. And yeah, I mean, it seems like, unfortunately, not this time we get to see each other in person. But looks like customer service is a big focus at the Summit. Why is it so important right now for companies to provide a seamless customer and digital experience? >> Well, we've learned a lot in the last 12 to 15 months. And one of those is that our historical audiences, developers, ITOps folks who have been on the front lines. And for the, a big part they've been distributed already. Customer service teams have always been on the front lines whenever there's a customer experience problem. And they're no longer working in the office across cubes being able to communicate they're remote now as well. And so with a couple of really interesting things have happened. One with the rise of digital services, the use, the demand on them, heck my own parents are now ordering groceries online, which they never did before. And with the increase with many of our clients and customers, the customer success organizations have to deliver a whole new level of customer experience for that digital experience versus just the brick and mortar in on-premise type of experience. And it's created a whole new set of needs around collaboration, communication. And we've seen that customer service teams are a critical component working with development and IT part of kind of like a three-legged stool that has to work together really well for great customer experience now in the digital age. >> Well, you mentioned this big push for digital and especially in light of the pandemic and what other ways did the pandemic impact customer service? >> So first, like maybe building on what I was just saying, just the collaboration aspect. Most customer service teams have historically that I get an opportunity to work with, they have to work for better, for worse in reactive mode. Cases get opened up, something isn't working, a customer is unhappy, there's a customer satisfaction issue, and so they're pulled in. And those individuals, they're lacking all the contexts that they need, and oftentimes, they're in a world where they have to pull in other individuals. And I think gone are the days where they can pass that customer case off to just another individual and then another individual and another individual, that's incredibly frustrating from a customer business experience. And so this notion of eliminating hand-offs and empowering that individual to be able to reach out to the people that they need and handle that case kind of from beginning to end and communicate directly bidirectionally with engineering teams when they're fixing an issue with electronic shopping cart, digital shopping cart, that's critical. They need to have that flow of information because they're a member of the team so that they can proactively communicate with their clients and give them updates of what's happening. >> Well, last year you announced a customer service solution. What are you announcing this week? >> So a couple of big things, we've recently just made available kind of like a complete in context experience or PagerDuty for customer service app for Zendesk and upcoming with Salesforce. It's really all about an agent, not having to switch out of their help desk, their contact center environment. They can get all the information they need in their world without having to move to other applications. They can instantly know if there's a really important issue in the back office with the systems, with the digital services that they need to be aware of. So we have a whole new set of PagerDuty for customer service products that we've made available. And then also a couple of different options for our customers and how they can consume that. We have a professional version and a business version. And really the difference between the two is if you want your customer service agents to really have full case ownership, to be able to be empowered to do everything, pull in the folks that they want to, they can do that in the business version of our package. >> How and why should DevOps and customer service work together in your opinion? >> So historically, I've always felt that in many times engineering teams will identify because of monitoring and many other technologies that they're using that they'll understand, that there is something that could be customer impacting and they'll work that diligently. Unfortunately, it's been more of a, kind of a stakeholder relationship only with customer service. Yes, they need to know about it. But what we've really worked towards is making sure that customer service is not just the stakeholder, they're an active participant because issues can be identified from customers on the front end or proactively by items issues that are identified in the back office. So being able to be right in the center of the customer world is super, super critical. >> And when you look at the next year and even the next five years, what are you most excited about? >> I think it's really empowering helping our customers, our community, customer service agents on the frontline do more, have more power at their fingertips. I know over and over again, I think, greater value is delivered to customers through those individuals that are contacted not always in the best of times. And there's some amazing statistics out there sets that it takes 10 good experiences to make up for a bad experience if you're a customer. So there's a big impact to this or if there's a particular pricing or product issue that a customer service issue is way more important, way more impactful, will lead somebody to use an alternative service versus the product itself or the pricing of it. It's the service element that's most important. Given all of that, when somebody does in their time of need have a customer service issue, when they do have a positive experience, three quarters of the time, they're super open to sharing that with others. And so if I look at some of that, again, what I'm excited about looking forward is how can we empower those agents to be able from cradle to grave. Take a case that comes in proactively communicate with their customers to provide a great experience to address some of those statistics. And we're really focused on automating that process. It's another truism is that, well, every business wants their customers to exponentially grow. You can't grow your customer service organization exponentially. You can't hire an infinite number of bodies. And so technology plays a really important role in that. And having PagerDuty for customer service as an integrated part of your Salesforce or your Zendesk or your fresh desk implementation will help those teams scale a little quality of life for those agents is important. And we believe that we can really help in that area. Minimize stress disruptions and help them provide better service to their customers. >> Yeah. Well, we touched on a lot of areas in terms of customer service, but another key feature of your role at PagerDuty is in product. So if you could outline some of the key products at PagerDuty and perhaps some insight on what you have in the pipeline. >> Yeah. So outside of just customer service, one of the huge parts of our community are those in ITOps and DevOps. And one of the areas of responsibility I have working with the team that I'm super proud of is what we're doing with what was recently announced last September, our Rundeck acquisitions. So we're announcing something called Runbook actions as a part of the PagerDuty platform. Think of it as a very simple, safe level of automation that every DevOps team can use to better address issues and kind of eliminate a lot of the toil and manual activities when they get pulled into a major event. And so we're releasing this new add on product, very excited about it. It's the first introduction of our Rundeck technology, new as a part of the integrated within the PagerDuty platform. So the reception we've gotten so far in early days has been tremendous and people are really excited, again, to eliminate toil, eliminate a lot of manual activities, allow them to fix items faster when seconds really matter. >> Terrific. Well, really, really appreciate your insights, Jonathan Rende, SVP and General Manager of Products at PagerDuty. Thanks very much for your insights. >> Thank you, Natalie. >> Terrific. And that's all for this session of the PagerDuty Summit. I'm your host Natalie Erlich. Thank you for watching.

Published Date : Jul 9 2021

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Jonathan Rende's PagerDuty Summit Wrap Up | PagerDuty Summit 2020


 

>> Narrator: From around the globe, it's The Cube, with digital coverage of PagerDuty summit 2020. Brought to you by PagerDuty. >> Welcome to the Cube's coverage of PagerDuty Summit 2020, the virtual edition. I'm Lisa Martin and I'm pleased to welcome back to the program Cube alumni, Jonathan Randy, the Senior Vice President of Product at PagerDuty. Jonathan, welcome back. >> Good to be here. Great to be here again, Lisa, thank you. >> Quite the week for you guys, just wrapping up the three day virtual event this year reaching thousands of folks. Lots of news coming out, as we even kind of talked about the other day announcements, you said this was the biggest product release in the company's history, which is amazing to achieve during a pandemic, but AIOps, integration with Microsoft Teams, customer service solution. And we've heard a lot about automation in the keynotes and of course, with respect to the acquisition of Rundeck. Give us a quick little 60 second kind of overview of some of the things that you announced this week at the summit. >> Oh, it's been busy, as you said, and it has been really the biggest set of investments that we've brought all together at one time in the history of the company and so kind of leading the list was everything we're doing around, the category of AIOps. And so there's been a focus on automation, there's been a focus on what we're doing around event intelligence, and many new enhancements and updates to that product that's a part of the PagerDuty platform. We've also applied machine learning to our analytics, which is great with a recommendation engine to help organizations mature and really understand where they are and then, as you mentioned, big announcements around communication and collaboration with zoom, and Microsoft Teams, and even a new product from PagerDuty built on our core platform called PagerDuty for customer service. So it's been incredibly busy. >> And I'm sure lots of great feedback from customers and partners across the globe. You know, one of the things that you and I have already talked about is in the last six months, this explosion and a number of incidents that your customers are having to deal with and how PagerDuty is helping them to respond to those a lot faster. We talked about automation a lot last week, but as we think about the folks on the digital front line, have to be empowered with the information should be able to respond immediately to a customer inquiry, or risk the customer churning, talk to me a little bit about how automation, is this really kind of the next essential for combating that digital stress that the frontline workers are facing? >> Yeah, so automation has always been important to PagerDuty, and there really a couple kinds of automation that are so important. The first of which, and this is what many people know PagerDuty for is what we always refer to as people orchestration, it is automation, but it's automating is really the identification of issues and then engaging responders, these frontline workers on the right issues at the right time to make the right decisions with the right information. And so that's been the type of automation PagerDuty has really been focused on and more recently, we've taken some baby steps in the area of machine automation. We've done some things with custom actions in our web hook technology that we've delivered, but really to address some of the issues that you're referring to for workers on the front lines. We've had integrations with Rundeck, runbook automation vendors before and we have several partners in this area that do what's referred to many times as machine learning, not people orchestration and automation but machine learning. And we really felt it was important to have a world class capability as a part of PagerDuty, because it's one thing to engage individuals. But then if they still have to undergo manual toil, manual work and resolving issues, and much of that can be automated with machine automation. It's just a perfect match and it should be something that I would expect if I was a customer of PagerDuty ultimately to have. >> So PagerDuty has been working with Rundeck for about a year now, so to talk to us about some of the things that you saw from the capabilities, compatibilities rather, perspective, that you guys thought this is going to be a phenomenal addition to what PagerDuty delivers and exceeding our customer expectations. >> Well, this acquisition and the coming together of Rundeck with PagerDuty, we're super excited about, it's the first really major acquisition that PagerDuty has done and it's an extension to PagerDuty in multiple ways and it's an extension to PagerDuty in the use cases. And that customers can use us, you know, with Rundeck and PagerDuty. It's an extension to, as I just mentioned, people orchestration automation with machine automation. It's an extension of value. There's no overlap anyway, anywhere. But it's also, there's a lot of synergies and the coming together of these two organizations in particular as you know working more closely with Rundeck now, is really about their culture. Their culture is very similar to PagerDuty. And more importantly, like, as I've gotten to know, many of their customers, many of their users and there are, we have some of the same customers in the enterprise and mid market, which is really exciting, is that, although many of them are in the ITOps area, and while we have customers in ITOps, as well as in development, they all refer to themselves, those customers have Rundeck today as DevOps. And so they're very much along the same philosophy, as, you know, empowering self service, being able to take action as somebody on the on the front lines, and being able to take that action, not just be notified of it, but complete that work. And so, that notion of, you know, ubiquitous use, self service, empowerment, that's very consistent in Rundeck's culture, and their customers as it is with PagerDuty and our customers and our culture. >> I know both companies are steeped in DevOps and digital transformation, but it's nice to hear about the cultural alignment, because it's a big thing. It's not just a big thing for the two companies coming together, but also for your customers to ensure not just a seamless transition, but they really get to unlock the value of what Rundeck is going to add to PagerDuty's technologies, right? >> Very much so, very much so. In talking to some of their customers, who are our customers as well, it's just been so clear that it's a very similar use in many ways, although it's a different product, meaning a small group will start to use Rundeck and then other teams in the organization see the value of that and it grows virally. PagerDuty works in much the same way. And their product can be used for a lot of different automation uses in an organization from automating a data processing ETL process to provisioning systems for internal development teams. But one use case that really brings us both together is the focus on the incident response process, the incident response lifecycle and that's where we really got excited. And I'm seeing this week that our customers, our mutual customers are excited. Also, this notion of being able to not only identify, but also engage the right teams, prevent issues from happening in the first place, and then automate the diagnosing and the resolving of these issues before then you learn from that. So it's better the next time. So those automation steps in there, the diagnosing, and the the resolution, it's such an important part of the incident process that our customers just need in these times when digital services are more important than ever. >> Right digital services are the new norm. So is Rundeck, sort of a piece that allows PagerDuty to automate 100% of the incident response lifecycle? >> Much more than ever before, yes. So again, I look at it as take people orchestration and automation, add machine automation, the ability to bring down and bring back up a service as a part of a Rundeck set of steps or jobs, like having that together in one solution really does automate all of the incident response and gives the ability to incident to automate more and more of that incident response process. You know, the other key thing too, I was thinking through the other, obviously, throughout this process, in the other day was the synergy between, not only our customers, but our communities. And I always think of communities as a little different than just customers and PagerDuty has a thriving, growing community around it, in addition to our paying customers. One of the things that's in common with Rundeck is they have the same thing. They are an open source product with an enterprise product on top and it's a open source community of 60,000 DevOps professionals that we're bringing together with the PagerDuty community. So very excited about that synergy as well. >> Tell me a little bit about some of the feedback that you've heard from that community as these announcements including Rundeck have been made and this real obvious pivot towards automation. What are some of the things that you've heard that pleased you? >> Yeah, a couple things. From the community, from the customers, from internal teams, both on the Rundeck side of the house and on the PagerDuty side of the house. Sometimes it's just when things are, it's a good match, you don't have to explain it that much. People just see the natural synergy in it, you don't have to spend a lot of time explaining why machine automation and runbook automation is such a natural hand-in glove fit with PagerDuty and what we do today. And I think that's a huge validation. And, that message has been very consistent in what I've heard back. Some other specifics that were exciting to hear is some of our existing customers today who attended summit, who obviously had no background as to the announcement we were going to make with with Rundeck, contacted the Rundeck leadership, who then forwarded that information to me saying how excited they were, as they were attending summit, sitting in the virtual audience during our keynote addresses, as they heard the coming together of Rundeck as a part of PagerDuty, and immediately sent notes to the leadership on Rundeck saying how excited they were about that and how they wanted to expand the use, which then got forwarded to myself which nothing can be better validation. Nothing's more exciting than to see the community really understand what we're doing and see the benefits of it. >> You're right. That's the most public objective validation that the brand, any brand could get. So what would be the next steps, for example, you know, we talked last week about a whole bunch of PagerDuty customers, 13,000 plus great brands, many types of brands, Zoom, Slack, AWS, they were on main stage with you and Jennifer and the team. But if we think about some of those existing customers, what would be the next step for them to start leveraging the value that Rundeck can deliver to their environment? >> So a couple things. First, there's so much that can be automated today, if you think of just like the two big departments that use Rundeck, and PagerDUty, and there are more frontline teams than just these two. But if you think of just Dev and development, and then ITOps as two organizations that are working more closely together than ever before. You know, the real opportunity is for them to really start to shorten the time it takes for them to do so many things in their world on via Rundeck, you know, Rundeck automation and going back to some of the comments, you know, questions you asked me earlier about where some of the synergies they've made it so easy, they being Rundeck, to automate to create what they call jobs, and then make those jobs, you know, everybody be able to run those in a standard way. And then from a compliance standpoint, get the reporting on that, that the use, I think will really not only grow within IT, but for the most part, a lot of the development community, the core DevOps teams out there that use PagerDuty on the dev side, I think that you know, run books have been largely a manual activity for them, manual steps that they do. If I had to guess, the majority of our, you know, partners, community, customers today, who use PagerDuty when they actually get pulled into a real event and they're walking through the steps that they need, whether it's pulling together all the diagnostics information, and then going out in action to solve a major incident, a major event, the majority of that is manual today. And so the fact that we're allowing the equivalent of a big red easy button for those individuals for those teams on the development side, who really have been doing this unassisted today, to automate more of what they're doing, to cut down on the time, to cut down on the toil, to reduce the time that digital services are out in their organization. I think that's a huge opportunity for the larger PagerDuty customer base. >> I was looking at the press release, and with respect to the Rundeck acquisition, and about Rundeck saying and customers have experienced up to 50% reduction in incident response time using Rundeck automated run books. So from a team productivity perspective, that's huge. >> Especially when, you know, minutes are millions of dollars. And we were talking about this the other day that so many casual services are now mission critical, they're critical path for all of us, we need them, both in our professional and in our personal lives. So given that, given what's riding on these services, and how PagerDuty has always been about, you know, behind all of those services, our people and those people have to respond in the most effective efficient way in those really critical important moments, that type of savings, you know, reducing the time that it takes by another 50% on top of that, hopefully our customers will see the value in that Just like we do today. >> Big reduction in digital strategy, which I think we could all use today. Let me ask you one last question. Since this was the fifth PagerDuty summit, but the first virtual, you got to interact, or rather had the chance to impact a lot more customers than our traditional in-person event. But what was your take on having this virtual experience? Did you feel that you were able to really engage those customers as much as you would like to in a digital world? >> I'm really glad you asked. So much of us put so much of our time and effort into this, and I know our customers depend on us to do that. That usually, when you meet in person, you know, as you say, this is our fifth PagerDuty summit, and the other four have all been live, but they've all been in person, that nothing does substitute for the interaction, the live interaction you get, whether it's delivering something on main stage, or interacting one on one, with customers and clients, nothing, I think is a substitute for that. We are where we are and I do believe we're making, you know, obviously the best of it. And it has been great, we've generated probably five times as much content in this event than we do for a normal in person event. So while the the interaction isn't quite what you would expect in a three dimensional versus a two dimensional world, and I think the positive is, there is more content, and all of that content is kind of imminently more shareable than ever before, I personally have gone in to look at some of the track sessions, more in, you know, via zoom than I have in the past when they were recorded, but you know, it was a live event because I was so busy with other things. So I think the downside is some of the real personal interaction, we can still have personal interaction, of course, but it's not quite the same, but the content, the material, and then the reuse of that over time. I see that as being positive. >> Absolutely, I couldn't agree more. Well, congratulations on a very successful event. I imagine you must need a good weekend rest after delivering the most product news and announcements in the history of the company, especially in the last six months. Jonathan, it's been great having you on the program. >> It's always a pleasure, Lisa, thank you so much for having us and I hope you get some rest this weekend too. >> Likewise, I'm looking forward to that. For Jonathan Randy, I'm Lisa Martin. You're watching The Cube. (lighthearted music)

Published Date : Sep 23 2020

SUMMARY :

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Jonathan Rende, PagerDuty | PagerDuty Summit 2020


 

>> Illustrator: From around the globe, it's the cube with digital coverage of PagerDuty summit 2020. Brought to you by pagerduty. >> Welcome to the cubes coverage of PagerDuty Summit 2020, the virtual edition. I'm Lisa Martin, and I'm pleased to welcome the Senior Vice President of Product for PagerDuty. Jonathan Rendy. Jonathan, welcome back to the cube. Thank you, Lisa. It's great to be here. So this is our virtual cube, virtual summit 2020. But one of the things that I know from talking with Jennifer yesterday 6is that this is the opportunity to reach way more people because there's, you know, no travel restrictions and budget and things like that. But one of the things that is quite impressive is that you're going to be in your keynote talking about a lot of changes and enhancements to the products the biggest release in pagerduty's History During COVID-19 really impressive. Talk to us about why this is such an exciting time. >> Well, it's it's exciting for a lot of reasons. And great to be here, although I'm getting so tired of working from home these days. But be that as it may, yeah, we we do have the biggest set of releases and investments and innovation that we're unleashing in the history of the company, which in these times is is no small feat. I want to thank all the teams have done a wonderful job. But we're using our summit event, as you know, to to talk about that to bring that out to discuss and we have some very high profile speakers coming. Joining us at the event. We have Andy Jassy, we have Eric Diwan, Stewart Butterfield and more. So it'll be a fantastic event, for executives and for practitioners alike. So sharing what we're doing new with all of this, these leaders joining us is going to be a great thing. >> One of the things that's become so critical in the last six months is digital services. And I think so many of us don't realize or don't think about the folks under, I don't want to say under the hood, but behind the scenes really, that are critical for you mentioned, the CEOs of AWS and zoom, and Slack, which are all essential. I mean, zoom is a household name, right? My mom even uses zoom, she's 75 that's pretty cool. But all of the criticality under the hood to ensure that these services continue because we're all now even more dependent on them than we ever have been before. >> Yeah, it's really interesting, I was thinking about this the other day, there were so many casual services that we all relied on, you know, pre March pre February, that now have become just mission critical and, and to everything that we do professionally and personally. And to your point, whether you're working out at home with, you know, your peloton, or whether you're in the two dimensional world with zoom all the time, we just expect all these services to be up and running and be available for us. And behind all those services that we expect to be there is a an amazing amount of complexity and dependencies. And behind all those complexity and dependencies our people and and that's a big part of what PagerDuty focuses on which is engaging people on the right issues at the right time. And of course, allowing them not just to be engaged but complete the work work, major issues, unexpected work, unplanned work, and complete all that in when moments and seconds and microseconds matters. So Pedro duty has a unique place in that whole ecosystem of what's considered crucial and critical now. >> We'll we've been hearing the term essential workers for since March right and thinking of them in a traditional sense of doctors and nurses and firemen and obviously grocery workers and, and deliver companies. But looking at it from pages through your lens, it's this the whole like digital frontline, the DevOps folks, the IT folks, the customer support folks who are really on the front lines of helping that brand be protected. Now it's, you know, the fact that everything is real time that now is now more important than ever is never been more important. So talk to us about sort of this switch to this digital default and what that means for operations. >> Yeah, as we were just saying, to your point, it's never been the services have never been more important and more essential to everything that we do. So it just makes perfect sense that all of the individuals who are responsible for building and delivering and supporting those services are essential. Now also and as a part of that we talk a lot about going from what everybody knows as DevOps to digital ops. And while it may sound like a marketing phrase, words matter, and it really means going from being responsive to being proactive and predictive. And that's so important for these individuals. To get ahead of this, we've seen super interesting data, when we look at our platform where there 13,000 customers of how life has changed for all of those customers and those half a million users of our platform today, pre COVID. And now that we're in the middle of this with, again, reflecting how important services are the increased use of those, and then the rise in issues. And what's the great news is that individuals and companies using the platform are actually getting better at addressing them than they were pre COVID. So with the bad news, there's, there's good news, too. >> I agree, there are always silver linings, I was looking at my notes here. And one of the things when PagerDuty evaluated your platform, and as we mentioned over 13,000 customers, during COVID, seeing an increase in traffic and demand for digital services, more than a 38% increase in incidence compared to the prior period. But you also talked about how the big impact that pager duty is helping your customers make and resolving those incidents faster. And I guess maybe sorting through the noise, and a better more automated way. >> Exactly. And a lot of it has to do with what we've been doing. And then another piece is our new releases. And so again, we've looked at our data to your point. And we've seen this over a third rise, in the number of issues, that organizations are running into across the board. And with our new releases, we're able to reduce interruptions by over 65%. So it's great news that again, with with the rising use and the rise in interruptions and people having to context switch from what they're doing to you know, firefight and jump in the middle one and collaborate across organizations that there's light on the horizon, the light at the end of the tunnel, I should say, and then things are going to get better. And our new releases are going to help in a big way. >> Okay, I'm assuming you have a crystal ball, which is great. So I'm going to be looking for some more predictions, but talking to your customers. And you know, I can imagine now there's more noise. You mentioned this switch from DevOps to digital ops and this now this digital default that I know, Jennifer has talked about, and it's this probably going to be one of the things that that shapes the winners and the losers of tomorrow in every industry. But tell me a little bit about how you're helping how you're using, you know, the traditional buzzwords, AI, machine learning, and putting them really effectively to work so that it's now not just a buzzword that companies in any industry should be thinking about, but it's actually machine learning is going to be critical to sorting through this increased volume of data and helping resolve incidents faster to not just, you know, prevent customer churn, but also to make sure that your folks on the digital front lines aren't burned out. >> Well, with the transition that we were talking about before, you know, everybody realizes that they have to be all in now, there's no, we're migrating to the cloud. And there's reasons for that, moving from on prem systems to to the public cloud, in many ways, we've seen that massively accelerate. And with that comes and how the systems are, have to be built and managed and delivered there, you see this increasing complexity. And going back to what we were talking before, individuals are behind all of that complexity. And so it's so important that in our new releases, we really up the bar, we've really raised the game, so to speak on what we're doing to take advantage of our data that we capture. And also this increase in information that's coming in, we refer to it a lot of times as telemetry when you, you know, start to refactor and rebuild your systems in the public cloud, and you have all those dependencies and you have more information, more data flowing to you, which can translate to more interruptions. And very easy, It's very easy for organizations and teams to get overwhelmed by that. And so our new releases, focus on making sense of that we talked about the reduction in interruptions and the reduction in noise. But we've also focused equally, on helping folks with context with information when something goes south, when something is different than what a team expected. How do you fix that once you engage the right people, they're so big part of our releases also been about applying machine learning to add context to speed up fixing and resolving and finding the root cause of these issues in a big way. And we do that through a number of different ways in our in our products, in our PagerDuty platform, event intelligence, and also our analytics, again, to draw these relationships around service dependencies and our analytics, we've included a recommendation engine. So now we can show organizations and teams predict. If you make these changes, you will see these improvements. And this will be your returns and using our data combined with the data that's coming in, That's a big part of what the PagerDuty platform is all about. >> well that analytics piece is, critical as as the machine learning because the volumes of data are getting bigger and bigger and bigger such that it can't be can't depend on just humans. There's something that I'm curious about, too, is with the rise in incidents, how can PagerDuty help customers kind of sort through the noise and maybe Park things that might be able to be resolved on their own without having to escalate? >> It's a great question. And we do it through a couple of ways. One, we've applied machine learning so many times when, when interruptions when issues alerts come in, and they can look different, but they're all related to the same thing. So we're applying machine learning to better group and intelligently organize and group all of those informations into the singular incidents that really matter that you really need to pull teams together on which is important. The next thing we're doing is we're using machine learning to say, Hmm, okay, it looks like these, these issues, these incidents are happening on different services that teams own. And what we're also using the machine learning to do now is to show the dependencies between those services. So we often see situations where you can have a couple of teams in your organization, working on issues that are delivered to them, not knowing that they're related. And in some ways they can be working against each other. So having information to know that one issue is upstream. And the other issue is downstream allows one team to step forward and the other team to step back. And we're using our machine learning for that, to give that additional context and help pinpoint where the issues are. So it's the most effective use of these teams when they come in, Nothing's more frustrating by the way than being interrupted, whether it's the middle of the day or the middle of the night, only to find out that either you're being unproductive or you didn't need to be there in the first place. >> Oh, absolutely, yes. And I'm seeing some stats that people are the folks on the digital front lines are working an average of 10 hours more a week. And so many more of those interruptions are happening and when you'd like to be off on the weekends and the middle of the night. But one of the things that that you took context, absolutely critical, but also collaboration, different teams that need to be to your point, are we working on the same thing, and we don't know, the collaboration now that work is distributed is even more critical than ever? What are some of the things that you're hearing from customers about what PagerDuty is doing to facilitate that collaboration so that things just run much more smoothly, and the demanding consumer on the other end is satisfied? >> Well, to your point, one of the most critical things, since we're talking about not just a technology issue, we're talking about a people issue is communication, and collaborating. And that is so important, not only in general, but in these moments that matter. And so one of the things we've done in the new platform is we're introducing industry firsts, video war rooms, with our partners and customers zoom, as well as Microsoft Teams. And so we're also updating our slack integrations as well. But as we live in this two dimensional world, those responders, those teams that have to come together to fix issues with the single click of a button, now they can participate in those issues, in a video sense, in a video war room, but not just engage in that way. We've also added the ability to manage the issue through zoom through Microsoft Teams as a part of PagerDuty. So individual don't need to context switch from one product to another, they can do everything they need to do from from that world. So a big part of that collaboration and communication is all about the in the moment, you know, teams working together in those forums. But there's another side of communication collaboration in these major events. That's critical as well. And that has to do with what I always think of as the ripple effect. There's there are the teams working the issues. And then there are all the teams adjacent to that, whether they're business stakeholders, whether they're customer service teams, that also need to take action. They may not be fixing the issue, but they have to engage and they have worked to do they have actions they need to take equally, that are different. And so for those other organizations, it's we've increased the scalability of our stakeholder notification into the 10s of thousands. So those folks can keep in touch in tight alignment to what's happening to an issue being fixed, which, again, in today's world, this effect, affects everyone in an organization, not just the teams tasked with addressing the problems. >> Right. And of course, the demanding consumer on the other end isn't considering the fact that the customer support person that they're talking to might not have access to everything they need. And it's critical. It's business critical for any type of organization to understand that, even their customer support folks, and I shouldn't say even those guys and girls are on the digital front lines. And brand reputation hangs on the data that they have the context that they have, and their ability to resolve a customer issue because we were more demanding as consumers before COVID. And now I think even more than other because we're dependent on it. We're dependent on zoom, or dependent on Slack, we're dependent on Amazon and AWS, and so many other digital services. And we don't get what we want as consumers, right, we're going to go I'm going to go find someone else who's going to be able to respond to this in in one second, because I'm only going to give it a half a second. So last question, Jonathan for you so much announced this PagerDuty Summit 2020, unique in that way unique in the virtual asset. But what are some of the things that you see on the horizon, say, the next six months, because I'm pretty sure you have a crystal ball, let's open that up. >> Well, I see a couple of things. And while I never said that I'm Nostradamus, I see a couple of things. And one is that there is a material, seismic shift towards full service ownership. and so teams, and this was happening before as a part of DevOps. But when I was talking previously about moving to digital Ops, we're seeing large organizations have major initiatives around this notion of the frontline teams have to be empowered to work directly on these issues. And we always call that this phrase, full service ownership, which means you build it, you ship it, you own it. And that's both for development and IT organizations. And I think you brought up a really interesting point before, in this trend that I see happening and only accelerating, it's happening because people want to innovate faster. And those individuals, those teams, whether you're, again, in Dev, it Ops, or even in customer service, it's important that you're empowered to do this to help in that innovation. So I see that as the first seismic shift. And actually, as a part of that. The other big part of our announcements is where we're at summit, announcing PagerDuty for customer service. It's a curated product, just for customer service teams, because they're part of that big triangle with Dev and IT teams that they need to be in the loop, they need to be empowered with the same types of tools, they need to be able to act as a, essentially an incident commander, they have cases that come in, and they need to be able to engage the right individuals to provide that customer service to what you were saying before. And they need to have a direct link to everything that's happening in Dev and it so they can be proactive and get ahead of customer cases also. So again, to your question of, like, what do I see? I think that shift is brought on by people being all in, you know, with with their, their cloud migrations and refactoring. And then full service ownership being something that empowering individuals on the front lines, democratizing, you know, decision making and empowering those teams. I see that as the biggest shift happening overall. >> Excellent, Jonathan, thanks for sharing what you are unpacking at summit 20 and the opportunities that had a lot of silver linings. We appreciate your time. >> Thank you, Lisa. It's been a pleasure being here. >> For Jonathan Randy. I'm Lisa Martin. You're watching the cube (upbeat music)

Published Date : Sep 21 2020

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Jonathan Nguyen-Duy, Fortinet | RSAC USA 2020


 

>>Fly from San Francisco. It's the cube covering RSA conference, 2020 San Francisco brought to you by Silicon angle media. >>Welcome back everybody. Jeffrey here with the cube. We're at RSA 2020, downtown San Francisco and Moscone center, 40,000 professionals in the security industries, the biggest security event in the world. I'm pretty sure, certainly the biggest one in the U S we're excited to have somebody who's been running around taking care of these problems and talking to customers for a very long time. It's got a great longterm perspective. We're happy to have him. Jonathan, new wind, the VP global field say-so team for fortunate. Jonathan, great to see you. So you said you've been coming to this show for a long, long time. Love to get kind of your impressions that the human element is the theme. Yeah, well, sheer, you know, I, I think, uh, it's changing. It's uh, the attendance is broken out by very senior people who've been here for, you know, multiple events and then a whole new slew of people are coming into the industry, right. >>And there's a lot of excitement. It's, um, there's a little bit less of a buzz. It just seems it's a little bit less people here this year because of the virus scare. Um, but overall I think that the themes are pretty consistent, which is kind of tragic that the themes are consistent year after year because this suggests that not a lot has changed despite the $130 billion and it works with purity span. You know, absolutely complexity. Uh, everyone is telling me about how to solve complexity, how to do more with less, uh, how to do more with less and fewer people and how to get their arms around this vast volume of data that's being generated. And there's a lot of talk about automation and AI, uh, but much more practical, less buzzwords and more practical solutions. And yet still tons of new vendors, right? Tons of new opportunities. >>You know, I don't know what the final count is on the vendor side, but it's a really large number and you go off into the corners to the EDBD little, little, a little mini boost is still a time of innovation. So I think that people trying to move the ball. So I think when the first show first started, there were less than a less than 500 vendors, I think in the industry back in 2007 I think today we're North of of 5,000 and it's probably 8,000 or about 5,000 vendors in the immediate vicinity here. But just go around the corner and there are dozens of others having their own events and the neighboring hotels and restaurants. It's astounding the number of different point products are still coming into the industry and, and, and that really suggests that we haven't gotten our arms around integrating all of this technology. >>And it's just another level of complexity. So what do you tell your friends on the buy side, right? Who know you and say, say Jonathan, I'm going, I'm going to RSA. How in the heck am I supposed to navigate not only the show specifically, but kind of this vendor landscape and then make sense of it all? I'm telling him to look for vendors that are partners that have a longterm perspective and that do the integration for you. You know, one of the things coming from an operational background, as I talked to other CSOs, like our job is to operate technology. It really isn't about integrating technology. It really isn't about OAA and product. I want to focus my budget and my resources on operating technologies and manage risk. So I look for partners and mentors like, like Fordanet that has a fabric with 258 plus different products and vendors that are already integrated out of the box. >>I'm looking for someone that solves complexity rather than a specific problem or specific threat vector. And I'm really looking for some of that helps me understand and manage risk because that's the object of the exercise in cybersecurity today. It's not about compliance, it's about compliance, it's about security, it's about resilience, but a reasonable level of care in managing risk. Right. And yeah, it's, it's a great topic cause I was thinking that kind of in terms of insurance. Yeah. In terms of, you know, how much do you spend and you can't insure everything to 100% right. So it's going to be some number less than that. Everybody else needs a piece of the pie. But how do you make those kinds of trade offs, investment versus risk? Because you can't absolutely protect everything. It makes no sense. So I think that value of it comes back to the CSO and his or her team. >>It's a very human decision. Uh, there is no prescriptive definition of what reasonable care is. You know, outside of one statement by Kamala Harrison, she was the state's attorney in California here, which is the CIS 20 is the minimum level of reasonable care. And so now we have to understand how do we define what is reasonable, what is the risk appetite or tolerance for a company? And once you identify those things, what are the controls and mitigation measures that you're gonna have in place to mitigate those risks? And then what's left is residual risk. And that's a hard decision. How much will you absorb? How much will you transfer, uh, and how much will you just tolerate? Um, but it's really no longer just about compliance, uh, and it's no longer just about having a security or continuity or resilience about all of those things. At a reasonable level. >>Right. It's interesting as pulling up Winnie Naylor from, from Cisco gave one of the early ketos and she talked about, you know, really this security profession, embracing those pesky people that keep clicking on links because really they're the people that can, that have the data around the specific, um, applications and specific assets that the company has to kinda have that informed decision as to what is it worth to protect and do we need to protect it? Do we need to protect them more? Can we let this thing go a little bit? Yeah. I think the human element is the hardest part, you know, in mind at this conference and its theme, that human element. The hardest part about this job is that it's not just mechanical issues on routing issues and networking issues, but it's about dealing with all types of humans, innocent humans that do strange and bad things unknowingly. >>And then malicious people who do very bad things that by design. And so the research suggests that no matter what we do in security awareness training, some 4% of our employee base will continually fail security awareness tests. Well, we fished actively. And so one of the things that we need to do is use automation and intelligence so that you could comb through all of that data and make a better informed decision about what risks you're going to mitigate, right? And for this 4% that are habitually abusing the system and can't be retrained while you can isolate them, right, and make sure that they're, they're separated and they're not able to, uh, to do things that may harm the organization. Right. The other human element is the people on the security teams, right. And it's a tough resource. There aren't enough of them. And, and, and historically, they'd been the ones that, that integration point between all these different systems and it's a highly stressful job. >>You know, there was a Forbes article that said 17% of all CSOs are functional alcoholics. I mean, I mean, and they met as a 17 for 17%. One of every six CSOs medicates himself or herself with alcohol. And medicate is a very specific term of art. It doesn't mean recreational drinking means you are a functional alcoholic and that tells you about the level of stress and complexity. You know, in this job, our research suggests that the average CSO lifespan is somewhere on the low end of about 12 months on the high end, somewhere about 24. You know, in their role or in their profession, their role and their current job, their current gig, they're not lasting more than than two years. Uh, the sheer complexity and stress of the job and you know, and, and those, of course, 24 months, three of those months are just orientation cause that gives you an idea. >>It's a level of stress and complexity that the average CSO is going to face here. Right. So really begs for a lot more automation, a lot more automation on the defense side. It does, it, it makes for a lot more automation. And how do you help those teams cope with a massive levels of complexity and data that's coming out of these digitized and digitally transformed enterprises, right? And when you think about each person's going to generate three to five terabytes of data per person per day, uh, and that computing is going to change in the next three to five years. Right now 85% of computing and data generated comes from traditional it functions as you move into 5g and edge based computing, the vast majority of data generating computing will be done on the edge. So the level of complexity, the number of technologies and devices that we're going to have to monitor is only going to expand, right? >>Right, right. And the speed of those transactions and the speed of the potential harm. So marry that against the research data says that 99% of the attacks could have been mitigated through simple intermediate controls and that the patches, the signatures were readily available. And so the thing to contemplate as we go into this heightened level of complexity and expansion of our computing environment is we're missing the basics today, right? Right. If 99% of the successful attacks are based upon exploits that are known that the signatures are available in the patches available for then a year, what are we going to do when everything else becomes even more complex, more sophisticated. Yeah. That's funny. That was part of, of of raw heats keynote, uh, to kick off the whole thing is he said, you know, we as security professionals like to focus on the complex, we like to focus on the, the ornate and the, and the super sophisticated attacks on the reality is the vast majority and we're just coming right in the normal side door that they've been coming in all along. >>And one thing I decided during my time at the Verizon data breach investigations report was a 77% of all the breaches were not identified by the security team. They were identified by law enforcement. And so 77, 77% of the case. So let's, so let's say you've got a CIS admin that that goes out and accesses financial information before the earnings call and does insider trading. And it's the sec that calls the FBI. And then it's the FBI that calls you and said, by the way, your CIS admin is going to be charged with insider trading. And that's how they know that there's been a compromise out. And in many cases, what does that tell you? Despite $130 billion of network security spend this year alone, that's seven out of 10 data breaches will be identified by law enforcement and not the security team. Yeah. So that tells you that not the security law enforcement team, either it's the FBI or the sec hires the cl service and it just says that security is so complex that until we find ways like the FORNAS security fabric to automate and to manage complexity in an integrated way, you know, that's the, that's the leading edge indicator that I look for is that at what point do security teams identify more data breaches then law enforcement and the victims and they're way behind at this point? >>I think so, unfortunately. Yes. That's crazy. So, um, but there's a lot more AI now that you guys can use to write on the good guys side. But how does that really square the circle when you're saying so many of it just comes through the simple approaches because of lack of visibility. Uh, SOC teams are overwhelmed by the volume of data. And so the way to address the volume and variety and velocity of data is to use artificial intelligence to use a machine to make human decisions and behavior at machine speed. And so when we launched our 40 AI product offering and the virtual security analysts, you know, the research that we did suggest that is he pivoted a five SOC analysts. And so that's one way of helping SOC teams that are overwhelmed by the volume of data that are understaffed, to use artificial intelligence to distill out from all of that, that data, that useful patterns, and to marry that with our Florida guard intelligence, say, okay, this is the techniques, tactics and procedures most likely associated with this threat vector right now, escalate that to a human to make a decision on whether you want to mitigate that. >>And once you decide to mitigate that, use the automated and integrated capabilities of the fabric to make an efficient and effective, uh, mitigation, uh, of that incident. Right? Yeah. Yeah. That's interesting. You bring up the sec case. We had a conversation earlier today where we were talking about deep fakes. Yeah. If somebody had the use case that, you know, what, if you just had a pretty straight forward, deep fake of some executive from some companies saying something to move the market and you drop that into the, uh, into the social stream three minutes before the close on a Friday, you get a play off the off the margin leverage. Nobody gets to really investigate the thing until the four minutes are over. Markets are closed, right? You get a significant financials damage in a situation like that, not even really directly impacting the company system. Right. >>So you're, you're hitting on the fact that we are more interconnected than ever and that the traditional compensating controls that we would have used to mitigate that type of risk is not, not as effective. And so, you know, that's going to be a challenge moving forward. Everything is going to be more interconnected, accelerated and decisions will be driven by data. So it's all of those things will drive complexity. So maybe next year when we talk again, we'll see it and see that. But I'm a little, one of the reasons I'm, you know, I have a credit freeze personally is that I'm aware of things like, like deep fakes, uh, impersonations moving my identities. So having a credit freeze allows, allows me to know that no one can leverage my credit even if they have my data. Right. Interesting. So thanks. Question. We sit down here a year from now, uh, without the benefit of 20, 20 hindsight. >>Yeah. You know, what do you think the themes are going to be? What, what do you see as kind of this kind of short term move in the market based on some of these factors that you've identified? I think, uh, more automation, more uh, artificial intelligence ways of automating the traditional process was insecurity. The secondarily, I think there's going to be the rising awareness of edge based computing and smart systems, autonomous level five vehicles that are networked and rather than a sensory based awareness, smart homes, smart industrial applications, uh, that computing will be done on the edge increasingly and those industrial applications, that 85% of the data computer will be done there. And that increasingly the cloud will become a repository for, for, uh, for storage and correlation. But the actual computing and actuation will be done on the edge. And so as 5g takes hold, you're going to see tremendous transformations in our society and our economy and how we conduct commerce, how we communicate. >>Uh, and that leads some more complexity. That's why, that's why I'm so focused on helping organizations getting security right now before that next onslaught of complexity hits us. It's coming. It is the five G IOT thing is, is just around the corner. The look at the telcos, there is a very specific reason why they're investing literally hundreds of billions of dollars into five G and the tremendous societal and economic changes that that will bring in infrastructure, communications and security will have to stay pace with that. One of the things that we're going to see moving forward is that the digital infrastructure is only successful only as successful as a security is. And I think we'll, we should see a breakdown in the traditional operational silos in network operations and security operations as Michelle Dennett. He said earlier on the air, if you cannot protect, you should not connect. But unfortunately people are still connecting before they're ready to. Absolutely. Well, hopefully there'll be a little bit more circumspect going forward. We'll try Jonathan, thanks for, uh, for taking a few minutes and sharing your perspective. Really appreciate it. Always a fun time. Alright, Jonathan, I'm Jeff. You're watching the cube where at RSA 2020 from downtown San Francisco. Thanks for watching. We'll see you next time.

Published Date : Feb 28 2020

SUMMARY :

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Bruno Kurtic, Sumo Logic & Jonathan Rende, PagerDuty | PagerDuty Summit 2019


 

>> Announcer: From San Francisco, it's the Cube, covering PagerDuty Summit 2019. Brought to you by PagerDuty. >> Hey, welcome back everybody, Jeff Frick here with the Cube. We're at PagerDuty Summit in downtown San Francisco. It's about a thousand people, fourth year of the show, third year of the Cube this year, happy to be back. Ironically, (laughs) a couple weeks ago we were at Sumo Logic Illuminate down the road by the airport, and we're excited to have somebody from Sumo here to talk about how do these platforms work together. So, returning again is Jonathan Rende SVP products at PagerDuty and joining us is Bruno Kurtic. He is the founding VP of product strategy for Sumo Logic. Bruno great to see you, Jonathan welcome back. >> Thanks, for having us. >> All right so Bruno we were just at your show, now you got to take a little bit easier, probably quite not as many responsibilities. We'll talk a little bit about your relationship between the two companies cause from the outside looking in, looks like there's some redundancies, it looks like two platforms, it looks like where's my single pane of glass but in fact there's a real synergistic opportunity to work together. >> Good question, so they are two platforms but it's entirely synergistic. You know between the two technologies, PagerDuty and Sumo Logics, we sort of helped our customers who run mission critical products and services that serve their customers in fact, number one, get information from their systems and applications to understand what's happening in them and then leverage our two platforms to resolve those issues, make sure those applications are running, that their customers are happy, that they're delivering the services that they are there to deliver to them. >> And I know Jon you got a long list of great companies that you guys work for and you said it's a really key part of the company strategy. >> Yeah the ecosystem that we work with with one of our favorite partners, Sumo Logic, we use Sumo, we're a big customer of Sumo Logic as well and it's really important all of the telemetry, all the machine information that's coming in. Again the part that we play as in that is how do we orchestrate people to get work done when things go south? And how do we get the right people on and give them some information about what they're doing to help triage what they're doing. >> Right. >> So the two work together really, really well. >> So what are the themes at both keynotes? Ramin's keynote as well as Jennifer's is data. And the fact that you guys both have a giant proprietary data set about machine activity and people activity from running these businesses. I was teasing on Twitter an overnight sensation ten years in the making that you can leverage to deliver more value. So, as we look forward, data's been important but, right, now all the hot topic is machine learning and artificial intelligence. How are you now taking this next gen technology and applying it to these giant datasets to offer kind of proprietary insight to your customers. I'll start with you, Bruno. >> Sure, so there's a massive amount of data, right? It's growing at a rate of Moore's Law so there's more data than any human could cope with. And so our task at Sumo's is figuring out what is that data trying to communicate to you? So we spend a lot of effort on machine learning, pattern detection, advanced analytics, to help our customers sort through that massive amount of data to understand whether their services are available, whether they're performing, whether they're secure, whether they are compliant, and we boil that up into a set of insights that we then feed downstream or upstream in this case to PagerDuty to help those people who are responsible for those services do the work to make sure they're restored and working well. >> And I guess to compliment what Bruno is saying, one of the things that we're doing is we're also ingesting a lot data, a lot of machine data from monitoring products and from service desk products, other kind of sources of data because that also informs who needs to get engaged when a system goes down? And then what do they need to do in order to fix it? And so it's all context it's all data and how we can help narrow that down. We had a really interesting statistic this was earlier this year where we were looking at per responder how is this growth of interruptions and alerts, how is that trending? And now compared to just a couple of years ago it's about three times the amount of noise that's coming at them now per responder than three years ago. So, clearly the people on the end of this are getting overwhelmed if we don't do something intelligently (laughs) to make sense of it for them. >> Right. That's interesting cause it's really a lot false positives, (stammers) I don't know if that's the right characterization but certainly too much to prioritize and an overwhelming amount of data for a person to try to filter, so you're really trying to add that intelligence on the front end so hopefully the right problems are getting surfaced and not just this broad (laughs) base of false positives, or minor positives maybe. >> Yeah, it's funny you say false positives because one of the concepts that we have is there are you know, alerts and incidents that need to be managed, but then there are un-actionable alerts and incidents. Things that really shouldn't be bothering you. So you have to walk that fine line between what do you act on that you should take action on and what are the things you shouldn't take action on and kind of ignore? And so we use machine learning to do a lot of that work and filter out the bad noise and bring the important information in. >> Yeah, I wonder if you have any thoughts, Bruno, on how much of that filtration needs to happen (laughs) to kind of quiet down this tsunami that's coming over the transom. >> Well on our terms it's, you know, every one of our customers send us billions of records per day, literally billions. >> Jeff: Billions of records per day? >> Billions of records and so figuring out what matters amongst those billions of records is a hard job. There's a lot of false positives, false negatives that need to be sorted through, before it even gets handed up to the upstream technologies like PagerDuty, right? So, we spend a lot of time doing outlier detection, doing predictive analytics, doing sort of pattern detection, machine learning type of techniques to make sure that the stuff that gets bubbled up has as few false positives and as few false negatives as possible so that the insights that intelligent actions that need to be taken are most appropriate and can be prioritized and handled by a small team of people who own those actions. >> Right, it's funny you say billions and billions. I have a digitalization challenge, I keep throwing out to people and there's yet to be, I've yet to get a great response which has shown me a billion, a billion piece dataset in a visualization that I as a person can look at and comprehend what the heck is going on. Beyond something as simple as you know, half of them on this side and half of them on this side. I mean we're not wired for that way. We're not wired to be able to take in billions of data points. It's just not, it's just not going to happen. >> Just for that context we actually, we analyze a quadrillion records a day. So talk about billions and then you know many more orders of magnitude than that, it's, those are numbers that are hard to comprehend, right? We don't think in those numbers, right? It's really hard to humans to grasp. >> So, so how do we keep up? I mean, how do we keep up? I mean it's kind of a bigger problem, but you know as much as anybody kind of exponential growth of this data. We're barely getting into IOT and industrial IOT and sensors on everything at the house and on our clothes and our shoes. You scared about keeping up? Can we keep up? What do you, you know, kind of, how do you see this crazy trajectory on the data? We have to kind of gate it somehow? >> So from my perspective there is no sense in being scared of it, right? A digital business generates data, we all got data that can't run. So the task is to capture it, analyze it, to understand it and serve up intelligence from it, right? So our task is to keep pace with that growth and build resilient scalable systems with the analytics that are required to understand it, right and so you know we can't shy away from it, so whether we like it or not. >> Here it comes (laughs). >> It's not an easy task but we can't walk away. >> Right right, and then the other just crazy increasing complexity. No, thank you. (laughing) Is on your guy's side, really is the variety. I mean we used to talk about the old big data big three you know variety, and veracity and velocity. You know the interconnectivity of all these systems is also the thing that's growing so exponentially and so when something does break the ability to find what broke amongst this huge potential is really a hard and growing problem. >> Yeah, it is and that's why it's sitting in the middle of an ecosystem of a lot of different products that will give and send off to telemetry that we have to look at. It is really important. You know, it's almost as if the information that we're always looking for on the PagerDuty platform, it has to be items that really are actionable by a person which, you know, if you look at the information that is flowing into Sumo Logic, it's even in some ways very broad. And so it's a wider funnel, we have a narrower funnel of kind of information but they're both very complimentary at each other cause one is that humans need to act on in the moments and the other one is how do I analyze in a broader sense? >> Right. >> Even a bigger range of information so both are so critical as a part of that whole ecosystem. As I was saying, we personally use Sumo Logic as a big part of how do we actually triage actual incidents? We built tons of libraries in the Sumo Logic product so we can make sense of even a broader set of information flowing in from all of our logs in some of those critical moments. So yeah, it's great synergy. >> Good, good, well I'm glad you guys are working on this big data problem cause it's a big hairy one. >> Jon: And it just keeps getting bigger. >> And the customers only benefit right? >> Yeah. >> Well Bruno, Jonathan, thanks again for taking a few minutes. Congratulation on the collaboration. It looks like it's working pretty well. (mumbling in agreement) He's Bruno, he's Jonathan, I'm Jeff and you're watching the Cube. We're at PagerDuty Summit downtown San Francisco. Thanks for watching, we'll see you next time. (rhythmic synth music)

Published Date : Sep 25 2019

SUMMARY :

Brought to you by PagerDuty. here to talk about how do these platforms work together. All right so Bruno we were just at your show, and applications to understand what's happening in them of great companies that you guys work Yeah the ecosystem that we work And the fact that you guys both and we boil that up into a set of insights And I guess to compliment what Bruno is saying, I don't know if that's the right characterization one of the concepts that we have is there are you know, on how much of that filtration needs to happen (laughs) Well on our terms it's, you know, as possible so that the insights that intelligent actions I keep throwing out to people Just for that context we actually, and sensors on everything at the house So the task is to capture it, analyze it, I mean we used to talk about the old big data big three and send off to telemetry that we have to look at. product so we can make sense of even a broader set Good, good, well I'm glad you guys Congratulation on the collaboration.

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Jonathan Rende, PagerDuty | PagerDuty Summit 2019


 

>>from San Francisco. It's the Q covering pager duty. Summit 2019. Brought to you by pager Duty. >>Hey, welcome back. You're ready, Jeff? Rick here with the Cube. We're downtown San Francisco at the historic Western St Francis. A pager. Duty summit. It's the fourth year pager duty Summit, 30 year for the Q. Being here, I think they've about outgrown the venue. So he looked forward to seeing where we go next year. But we're excited to have somebody is at a very busy day. A lot of product announcements leading a lot of this effort. He's Jonathan. Randy, this s V P. Of product for pager duty. Jonathan, great to see you. Thanks for having me. So, congratulations. A lot of Ah lot of product announcements today. >>This is our biggest unveiling of the year. >>What s so I don't want you to pick your favorite baby, but what are some of the highlights? That goddess here today? >>Yes, a couple of big things today and tomorrow, not just today. >>Uh, >>first, we're really focused on applying. It is the buzzword of the sense of the new Millennium machine learning, but we're applying it across our entire portfolio, and we're doing it in a good way, not in a creepy way. We're doing in a good way to help organizations make sense of all the data they're getting. Tell him what's happening and, more importantly, what they could do to get better. And so that's something that we call our intelligence Dashboards is part of our analytics products. That's one big one, right? Right. And as you probably know, being here, pager duty is all about helping teams to be more effective in the moments that matter. And one of the other big announcements we have is intelligent triage. And so what is it way See with There's a lot of great companies here, partners that we're working with and whenever they're working, major issues within their companies were seconds, matter or even microseconds. They could lose millions of dollars that work in real time. They'll find out that there's multiple teams working on the same problems on Lee for one team to find out that somebody's undoing some of things that they're doing. So we focused in a huge way on building context, the visibility so that the teams in see what other issues air related That's what we call intelligent triage. So nobody needs to do double work, >>right? It's funny on the on the A I right in machine learning because they are the hot, hot, hot buzzword. But what I don't think are the hot buzzards, which is where all the excitement is happening, is it's the applied A I it's not Aye aye, for a eyes sake. Or were great. Aye aye company with an aye aye widget that we want to sell you. It's really leveraging a I within your core application space, your core domain expertise to make your abs do better things. And that's really what you guys have embraced. >>Absolutely. It's way have to be so empathetic to our users. Are users carry an unbelievable burden. They are on the front lines when things go down. They have, you know, minutes, seconds to make right decisions, and there's a lot of responsibility with that. So we're using a I in applied way to help them make sense of being overloaded with information, focus them in on the things that can make the biggest positive impact right, So it is applied a I in its purest form and >>the other part I found interesting is really anak knowledge mint that it's not just the people that have to fix the problem that needs to know about the problem, but there's a much larger kind of ecosystem that ecosystem around. That problem, whether it's sales reps executive for certain, is a whole bunch of people that should know, need to know, have value, to know beyond just the really smart person that I've now put on fixing the >>problem. You're bringing up a great point, which is a lot of people know page of duty because of how we help technical teams, developers and office people fix these incidents. When they happen right when a site goes down or when something search isn't working correctly but getting work done. We're taking that in its broadest context. It's beyond technical responders. First we have to service them. They're our core audience. They're why we're here today. But that unit of work getting work done goes beyond them as you're saying. It goes to what we call business responders who I could be working in a customer service team and while that incident is happening, I need that information so that I can ready my communication in case somebody calls up the sports desk and opens up a ticket. I need to know what to tell him right when it's gonna be fixed and how we're addressing their problems. Or I could be the CFO, a stakeholder and just want to know what's the real revenue impact of this outage of this time? So whether I'm taking action or I just need to know these air people outside of the sphere of the technical team and their business responders and stakeholders and we're automating the flow of information all of them so that they don't interrupt the poor responders team so they can focus on their work, >>right? Yeah. Another concept that kind of clarified today is all of your guys partnerships. You know, you've listened on your integration page on the Web site. It's clear. Well, data dog sales for Zenda Sumo AWS service now last CNN, IBM Blue mix. I mean, it's they can't go through the whole list. It's a huge list, but I think confusion in the market or maybe clarification is helpful is, you know, kind of where to those systems play versus your system when that Everyone wants to be a system of record, right? Everybody wants to be the database that has all the all the information. And yet you figured out a way to take your capabilities and augment all these other platforms and really puts you in a nice play across a really wide range of a problem. Sets. >>Yeah, it's it's so core to who we are way like to think of our pager duty platform. I always refer to it as it's a central nervous system, and what does that really mean? We always say it's a central nervous system and pager duty is about people. So all of those vendors, all of those companies, they're all valued partners. Many of them are customers of pager duty as well. They use us to keep their service is up on the monitoring world. But what pager duty is always focused on is ensuring that people two people collaboration to get real work done based on the information coming from those folks. So a lot of those vendors out there they play such an invaluable part of the ecosystem. They let us know they provide all the telemetry in the information in the data way, make sense of it and then engage people Finish that work. So in a way, you know that central nervous system is taking all these impulses just like a really central nervous system. And we're engaging the right people to help them effectively get the right right, and we couldn't do it without them. So the famous 350 plus way couldn't do what we do without them, and they're all here today. You >>didn't think I was going to read the whole hunt 350 >>Hope. That would be a long way >>Hades in desk on. And I know that was part of the new customer service and has been getting, you know, kind of your value kind of closer to the actual customer transaction. It's always in support of the customer transactions. The website's down transaction close, but this actually has taken it to the next level toe. Have a direct contact to the person who's actually engaged with the client to give them or inside is what's going on as being resolved in these type thing with a two way communication pattern. >>Yeah, it's something I'm personally really excited about. Where customer of zendesk as well. So we use end us and they use pager duty. So we get a lot of feedback on what's working, what's not working, which informed us and what we were doing. But there's two big problems in the industry that I've seen over, you know, two plus decades, which is customer service and support teams. They're dealing also on the front lines. Having them communicate and get information from development teams isn't always easy. And so both of us are really interested in kind of breaking down the walls between those organizations. But doing so in a way that's not interrupting those teams when they're doing their work that they have, right, so one, that's what we wanted to accomplish. How can we share information seamlessly automatically? So both teams are in sync, but they're not pestering each other and then to that work that's being done on the development side, when something does go wrong in a devil apps world, now, the customer support agents, the service agents they can get ahead of those cases that are being opened up, so they're not in the dark. They're not being flooded by tons of cases being opened up and they don't know what to say. They ready their communications and push it out because they're insane. >>It's really you think pager duty and notifications were surrounded by all these dashboards and computer stuff, but you made a really instant comment. It's all about the people you guys commissioned. A study called I'm gonna read an unplanned work, the human impact of an always on world and really going after unplanned work. Now it's funny, because everyone always talks about unplanned maintenance and on scheduled maintenance and the impacts on aircraft and the impacts on power generation and aircraft. This is the first time I've ever heard anyone couch it as as unplanned, which is completely disruptive fours on people and their lives, not to mention their service workers. And, according to the study, 2/3 of her pissed off and not too happy the way things are going at work anyway, with what kind of was zenith of that. And that's a really great way to reframe this problem into something much more human. >>The genesis of this all came from the concept that a CZ you'll read a lot we say we're always on. Let's keep it that way. Let's help help everyone. Keep it that way. It's a mantra with pager duty, and it comes from again when I say Genesis, it comes from even within our platform way. Don't have me Windows. We are on 24 7 360 days a year way have to be up when other service's aren't because of that. Whenever we work with organizations or vendors that that we pay for. And they say we have a maintenance window like a maintenance window my partner in crime runs engineering team are meant for. He always says maintenance Windows air for cars, not SAS software like there are no maintenance windows. And what that means as a first step is, if that's the case, there's no maintenance windows you're always on. Then you have to answer this question of how much time are you really spending unplanned work interruptions, right? So we really started taking not the heart. We really started trying to figure out what is the percentage everybody's trying to innovate more. That's planned war, right? Is it? 10% is a 20%. Is it 50%? The best organizations we see our 20 to 25% is unplanned work. We'll >>need 25% for the best organization. >>Yeah, so means not. So best organizations are very different, right? And so way feel that we uniquely can help organizations get way better at cutting down that time so that they can innovate more, Right? They're not firefighting. They're actually innovating and growing their business right. That's a big part of how we help people in these organizations do their job better. >>God, that's before you get in contact. Switching and pressure and disruption and >>way found some amazing statistics in my prior life. Iran Engineering. And it was at a sauce company. And what I found was whenever customers, whenever my top engineers would be put on Call Way, didn't have pager duty at the time, and they would be on call and interrupted on consecutive nights in the middle of the night. First, I would typically hear about when somebody was burned out is when I would see a resignation letter on my desk or somebody way no, after two or three or four successive interruptions in someone's personal life that goes on where they feel they're not being productive. One, they aren't productive at work either, to they're a huge retention risk. So way have that kind of data. We can look at it, and we can help management and organizations help them. And their teams take better care of their teams so that, you know, they're they're being more humane, humane knots, not human off pain, All right. And how you deal with those most expensive precious resource is in your company, which are your people is really important >>when they walk out the door every night, you know? So you gotta take care of him. So they come back the next day. It is? Yes. All right, Jonathan, last question is you as we wait, we're not quite done with some yet, but as we come to the closest on her arm really busy year. The AIPO. You guys have done amazing things, but you kind of flipped the calendar. Look forward. What are some of your kind of priorities as we as >>we move forward? Yeah. So it's been a crazy year. A lot of change and a couple things going forward. One were big partners with Amazon in a W S S O were attending reinvent. That's a big event for the company, but also at this event. As I mentioned before, it's probably our biggest unveiling of new innovations and products for our entire 12,000 plus customers. So for us, it may seem like it's an end. It's really just the beginning, because all of these products and intelligent triage business response, intelligent dashboards, these products that are apart, his capabilities that are part of our analytics and events intelligence on the pager duty, platform way have to keep evolving This we have to keep kind of moving forward because the world is always on and we've got to keep it that way. >>What? Andre just had a great line in his keynote about being scared is the generator of wisdom. But here it is, right here. Fear is the beginning of wisdom. Not necessarily fear, but fear getting caught. Keep moving that we have ahead of the pack. All right, Jonathan, Thanks for taking a few minutes and congratulations. I'm sure tough getting all those new babies out this week, but what a great what a great job. Thank you so much. All right. Pleasure. He's Jonathan. I'm Jeff. You're watching the cube. Where? Pager duty Summit in San Francisco. Thanks for watching. We'll see you next time.

Published Date : Sep 25 2019

SUMMARY :

Brought to you by pager Duty. It's the fourth year pager duty Summit, 30 year for the Q. And one of the other big announcements we have is It's funny on the on the A I right in machine learning because they are the hot, hot, hot buzzword. They are on the front lines smart person that I've now put on fixing the of the technical team and their business responders and stakeholders and we're automating the And yet you figured out a way to take your capabilities and augment all the right right, and we couldn't do it without them. It's always in support of the customer transactions. now, the customer support agents, the service agents they can get ahead of those It's all about the people you guys commissioned. And they say we have a maintenance window like a maintenance window my partner in crime And so way feel that we uniquely can help organizations get way better at God, that's before you get in contact. And how you deal with those most expensive precious So you gotta take care of him. and events intelligence on the pager duty, platform way have to keep evolving This we have Fear is the beginning of wisdom.

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Jonathan Rosenberg, Five9 | Enterprise Connect 2019


 

>> Live from Orlando, Florida It's the Cube covering Enterprise Connect twenty nineteen brought to you by five nine. >> Hello from Orlando and Lisa Martin with Student A Man. We are in the five nine booth at Enterprise Connect. Twenty nineteen. We're excited to welcome back to the cube of one of our alumni, Jonathan Rosenberg, CTO and Head of a Eye of five nine. Jonathan. Thanks so much for joining Stew and me on the program on Day one of this big event. >> My absolute pleasure. I'm super excited to be here and super excited talk about my favorite topic, so love to be >> so. This event is has been around for a long time. Twenty eight twenty nine years evolving from PBX to voice con enterprise Connect. You've been to this event about the last ten years or so, least your perspective, and I know you're new at five a. M. But your perspective on the evolution of not just the contact center but customer experience and really thiss changing landscape of how enterprises and people want to communicate with each other. >> Yeah, well, I mean, it's been funny to sort of watch this through this technology. Evolution that manifested the show and in the market for a long time was about hardware by big, bulky iron and we used to have the petting, the hardware, petting zoos, we call it. You have racks of equipment. You could go look at this >> blinky lights and >> cables, you know. And then it moved to software on. We saw that here and now we're deep into the software is a service, as cloud based delivery models and actually a bunch of ways were coming to the tail end of that into this aye aye era. And that's what's all the hotness, and you see tons of that. Almost everyone's put some kind of a eye logo, our branding on their stuff, and there's there is some real meat to it, but but that sort of this interesting evolution and on its in its infancy in the Contact Center. And that's what's sort of exciting about it. >> So let's dig into that a little bit, because a CZ Lisa mentioned you've worked for a couple of the other companies that have big boost here at the show. We've talked about intelligence back in the call center days. Oh, yeah, but, you know, tell us what's different about the Aye aye data. The center of everything is something that way. Definitely believe in something that we hear all over the industry in the cloud shows an A I and everything. Why is this so exciting? What really brought you five nine and gets you've got a storied career? You know what? Why here? Why now? >> What is the technology is finally ready. I mean, technologies like speech recognition. And we've been the industry has been working on that for decades. And it was only in the last five years or so with the sort of creation of practical deep learning that the tech finally got good enough. And and that was because of new algorithms, New date, you know, massive data sets, great hardware that all made it possible. And so that sort of opened up the avenues. And that's why we're seeing products like Alexa and Cirie take off. Is the tech is finally gotten good enough. But what hasn't happened? Yes, it hasn't shown up in the workplace, and that's sort of what's really exciting to me is to take these technologies that have become so pervasive in the consumer world and use them to really re imagine how a lot of these enterprise products work. That's why I came to five nine came to find time to do that. To do that for five nine to do that for the industry. >> So you had a session this morning. Five surprising reasons why a business should move their contact center to the cloud. And we know cost is not the number one. Talk to us about some of those key imperatives that an enterprise in any industry really needs to be able to take advantage of by moving to cloud >> right, so a cost was a unsurprising reasons. So what I did in my session was I said, all right. Five. Unsurprising. Here's ten. Here's ten obvious reasons. So I went through those and cost is one of them. But I know what's surprising. There's a couple of the big ones. Story, really is that if you go to a truce as player, they have lots of customers, and they can actually aggregate data software capabilities across those customers and do things that are impossible on premise. So the two of them, for example, are better reliability. Often people like what you know. I want to go to the cloud. I'm worried about reliability. Well, if you dig into it. You can see that once the technology is matured, the reliability can be much better than it is on premise. Because of the complexity that you could build. Same with security, often viewed is wait. It's more secure in promise. Actually, if you look at what you can do in the cloud, you can spend a lot more money on security and advertise that cost over multiple customers. And then, of course, there's a I, and that's about getting access to training data, but not just training data from one company, but using it across multiple companies to make the I work better for everybody. So those were three the big ones. >> So when you talk about that kind of learning, how do you make sure that there's proper firewalls is, you know, is five nine going to be able to say, Okay, we can take care of everything. But wait, I don't know what my competitors on this I don't want them getting advantage based on you know what my company have. How do you balance? You know, there's the security issues. There's, you know, personal information issues, and they're, you know, competitive dynamics, which you know, is a talking point in the cloud. These absolutely. I mean, >> so that's a That's a paramount consideration to design of this whole thing. So it starts with a basic level of like, opted, like we're just, you know, we can't do this, and we can't use your data to train a model that shared unless you want it. And generally it's a given get like, Oh, you want access to the shared model, then you you provide training data for it. If you don't, you can use a custom one, but it won't be as accurate. But then you don't show your day. That's your choice. So give the customer the option and give them something in return for their data. And, of course, there's other parts of it, like, Well, you know, almost all the time, people aren't actually like looking at your data, its dues to train. These model's ideally without human in the loop having to do that. And so there's other privacy considerations baked in that it's that makes it feel that gives a customer comfort that they're they're able to do this >> without trust is critical, right? We talk about it stew and ideo and the Cuban every show. But that's really essential because, as we know is consumers, we're more and more and more empowered. These days, there were transacting something through chatter, video or Alexa or we're checking on. The status of a mortgage is something We have so much information. They also are very demanding. You want to have this conversation with a business regardless of the channel, and I want them to know what I'm what my issue is so that it can be addressed and resolved quickly. But I also want to make sure that what you're doing is not, you know, in the issue of privacy that we've all faced recently that it's done in a way where this business can actually foster a trusting relationship with me is like, >> Yeah, so the trust goes on many levels, one of which the most important to us is our customers have to trust us, and that's the only thing that gives trust his time. You know, you have to be invested for a long time, and so we've really focused on building this longtime customer trust with our reliability, with our high touch with our customers, and that gets us That's really just what gives us permission to even start to do these things. The other thing to to touch on what you said is that end users contact the contact center. That's one of the areas were actually there is already in the user expectation that my call is being recorded, that what I say can be used for training purposes. So one of the reasons I got into Contact Center was that the privacy issues are much more readily addressed in the contacts and space and other areas where you might be interested to apply this type of technology. I mean, we're talking about having a eyes that are listening in on calls and analyzing what you say. If I were to do that for a regular phone call between me and my friend like people be totally spooked like there's no expectation that that happens. There is an expectation on the contact center, so that's a great place to build and grow these technologies. >> Yeah, I love that because, right, those of us that have, you know, personal assistant at home there's almost an expectation that they're living listening in a little bit. Everybody's had the weight I was talking about that with someone not even on the phone, and all of a sudden I'm getting ads for that. That's not right. So question I have for you, you hired your first data scientist in the group. And one of things we look at is we now have this, you know, great access to data. One of the biggest challenges is okay, I can get the answers if I know the right questions to ask, What are some of the early areas that you're poking at? Any early use cases that you can share as to, you know, where we where we cease? Um, how did you >> do that? One of the first things we're looking at is what I'm calling cross customer analytics. So analytics is old news. Everyone's had that for a while. But what the cloud does is it gives a provider like us date across multiple customers. Now what we can't do is share one customer state is with another. That's a total nut. It's not what I'm talking about. But aggregates are interesting. So, for example, would be intrigued to know this is my first call resolution rate. How does that compare to similarly sized contact centers in my geography right, And that's something where we can produce an aggregate that has total anonymous ation. So no privacy issues, and it gives a customer this piece of insight that they have never, ever had before. Never, and the only way you could do it with enough privacy. Seven of data to produce a useful AGR ee it, and therefore it can only be done at the larger cloud contact centers and thus five nine, as one of the market leaders were wear having enough data to produce this kind of information. So this was an immediate, frankly fairly low hanging piece of fruit. We've started to dive into no product announcements. It's just just looking at data to see what comes out and see if there's interesting meet there. But it's a kind of insights. I'm really excited about >> it. I love that because people are always like, Oh, wait, I need to measure it. But sometimes numbers alone don't tell me anything. You gotta put that into context for me, right? What are my peers? What? One of my industry. You know, what other stuff do I have there? Otherwise, you know, numbers are just numbers. >> Numbers are just numbers. You don't really know how you're doing. You're like a little island, like, you know, your contact center is doing, but is that good? You have no idea. And we'LL be able to unlock that overtime. So very excited about that. >> Yeah. Sorry, Stuart, You guys have about five billion recorded customer conversations, so you can I can think of the massive amount of competitive advantage that's in there. But you also brought out something that I hadn't considered before. And that is whether I'm, you know, interacting with the business because I haven't issue to resolve with my Internet or something. And you're right. We do have this expectation that the call's going to be recorded, but I never think about it is this is actually something it's gonna help me down the line or the fifty other people that aren't calling in. So I thought your comment on privacy being kind of more advanced in the context of her was was point. It was very interesting and not something that I was aware. >> Yeah, it >> has to be right >> exactly. There's there's an expectation that this is what this conversation is about and and there's lots of tools in place for dealing with today. Already with credit card numbers and phone numbers, which do get communicated between a user and the comics in URGENT there's lots of you know, tak and precedent about how to read, act and extract and again all in the contacts and are nowhere else really does that technology exists. So >> yeah, so Jonathan, take us inside the life of the agent, so we know when we're from call centre to Contact Center. It really brought in the role a little bit when I've got a eye in there is their new skill sets. We need tohave. You know, we always talk about, you know, if if you're doing the same thing you were doing five years ago, chances are you might need to be looking for a new job, because by so fast, so in the context center, you know what, What? What is the life of the agent likely to go through over the next couple of years? >> So this is an interesting debate in the lemon, the industry, and there's sort of two thought camps in this one thought camp is the role of A I is to replace the agent. And this, frankly, is fairly traditional thinking. We use terms like Deflection, right, like we want to deflect the call from an agent means we don't want you to connect to a human being or containment, right? How successful were we keeping the call in the I. V. R. And a customer never got to an agent like these air industry terms, and they were. And people view a I is like helping those things. There's a different camp of which you can tell I'm sort of in, which is like, No, no, no, that's sort of the traditional way of thinking about it. And of course, we're gonna have voice spots and I V R is. But really, the question is, how do we deliver the best customer experience possible? That should actually be the guide post, and what's funny is in this industry we know what the best customer experiences. It's that you pick up the phone, you call the comic center. You didn't wait one second. You went right to an agent. They were an expert. They knew exactly what to do. They fixed their problem in twenty seconds, you were done. That's the best experience. The problem is, is no one can afford to deliver that experience today. Well, that's where technology could help. So for me, the central question is, how do we use a >> eye >> to label us to make it cost effective to deliver that experience all the time and that does have an impact on the agents. And it's going to be through assistance technologies that allow the agents to be guided in their interactions and allowing them to be experts quicker and to learn from the best experts in the contact center and change the way they think about training and access to data knowledge. It's going to be a pretty profound change, but it never takes the human out of the loop people. When you pick up the phone to call that Connick Center, it's because you actually want to talk to a person and that human touch, that empathy that you know, someone just tow, you know, vent at a little bit that matters, and we're nowhere anywhere near having an A. I provide that if ever so that's what's going to change >> humans and machines or Jonathan, Thank you so much for stopping by. The Cuban wedding was with me about what's happening at five nine. Contact Centerist Service and the tremendous advantage that data could bring two organizations. >> My pleasure. Thank >> you. Thank you for watching the Cube. I'm Lisa Martin was stewed Minutemen on the program Today Live from Orlando at Enterprise Connect twenty nineteen stew and I will be right back after a short break.

Published Date : Mar 19 2019

SUMMARY :

covering Enterprise Connect twenty nineteen brought to you by five nine. Thanks so much for joining Stew and me on the program on Day one of this big event. so love to be of not just the contact center but customer experience and really thiss Evolution that manifested the show and you see tons of that. Oh, yeah, but, you know, tell us what's different about that have become so pervasive in the consumer world and use them to really re imagine how a lot of these enterprise key imperatives that an enterprise in any industry really needs to be able to take advantage Because of the complexity that you could build. But wait, I don't know what my competitors on this I don't want them getting advantage based on you to the shared model, then you you provide training data for it. We talk about it stew and ideo and the Cuban every show. The other thing to to touch on what you said is that end users Yeah, I love that because, right, those of us that have, you know, personal assistant at home there's and the only way you could do it with enough privacy. Otherwise, you know, numbers are just numbers. you know, your contact center is doing, but is that good? And that is whether I'm, you know, interacting with the business because I haven't issue to phone numbers, which do get communicated between a user and the comics in URGENT there's lots of you You know, we always talk about, you know, if if you're doing the same thing you were doing five years ago, chances are you It's that you pick up the phone, you call the comic center. to a person and that human touch, that empathy that you know, Contact Centerist Service and the tremendous advantage that data could My pleasure. Thank you for watching the Cube.

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Jonathan King, WWT & Fabio Gori, Cisco | CUBEConversation, March 2019


 

(upbeat funky music) >> From our studios in the heart of Silicon Valley, Palo Alto, California. This is a Cube conversation. >> Hello everyone welcome to this special Cube conversation here in Palo Alto, California. I'm John Furrier. Co-host of the Cube. We got two special expert guests here talking multi-cloud, Jonathan King, Vice President of Strategy, Data Center, and Cloud for WWT. And Fabio Gori, Senior Director Cloud Solution and Marketing at Cisco. Multi-cloud is the topic. Guys are in the throes of it. Jonathan, you're in the front wave of a massive shift. Cisco powers networks for all companies these days, so guys multi-cloud is a reality. It's here. I want to get your thoughts on that, have a conversation. Thanks for joining us. >> Great, glad to be here. >> So multi-cloud is not really been debated. I mean people generally now step back and say multi-cloud is a reality. It's here, people have multiple clouds. Should only have data center on premise. But this idea of multi-cloud and hybrid cloud are somewhat getting mixed up, but multi-cloud is certainly more realistic in the reality sense than anything else. What's your take on multi-cloud, Jonathan? >> So I think we're at a point where there's a growing acceptance of multi-cloud as the architecture of the future. And when you arrive at that point it also means that multi-cloud is the architecture for today. Because if you see your competitors, you see new entrants in your space, moving in a rapid digital pace to meet their business needs, and you're not on the same kind of architecture. The same footing. Then you're going to be left behind. So, used to debate private cloud, hybrid cloud, multi-cloud. The way we see it is that we're in this multi-cloud world. And multi-cloud embraces an end-to-end imperative. How am I getting my apps and my development teams building those apps closer to my business and meeting my needs more rapidly? And then how am I connecting my entire business, my data, my network, all of it, to meet that needs. So multi-cloud architecture's really an imperative. It doesn't mean it's the only thing. There's other elements in terms of having a clear digital strategy. Thinking about how you're going to modernize your infrastructure. Of course, thinking about how you're transforming your security. All four of those elements really comprise a enterprise architecture. Multi-cloud being a core part of it. >> Fabio, Cisco, you guys have seen the waves of innovation, internet, connecting companies together through networking etc. Multi-cloud's a big part of your focus. Certainly at Cisco Live we covered that. What's the definition of multi-cloud now, because I've heard, it's been debunked, but I've heard people say, oh multi-cloud's an application workload moving across multiple clouds. Some say, no, it just means I have two clouds. So what is the definition? Baseline us here. >> So it's interesting because you can go Wikipedia and actually read the definition of multi-cloud, but what I'm really interested in is exactly what Jonathan was saying a moment ago. This is one of those rare cases where what you hear architecture is actually a technology architecture and the business architecture really coincide. People want to use innovation wherever it comes from. And because you can't allow yourself to be just restricted your choice, people want to have choice. Multiple choices. And that's why we're seeing adoption of multiple cloud services. Multiple SaaS solutioning for structure service solutions and the likes. So this is really what multi-cloud means. You're satisfying a business need. And while cloud computing was born, as we know, around 10 years ago, and it probably started with a kind of cost connotation, the speed and agility that you can get out of it now overwhelm the other parameters. And people are ready to spend anything it takes to become faster than their competitor, because that ultimately will really determines your destiny in the marketplace. >> And I want to drill into the tech side and have some specific pointed questions I'd love to ask you. Jonathan, first, talk about the relationship that WWT, World Wide Technology, has with Cisco, and your credibility in multi-cloud. You guys have a unique view First of all you work with Cisco, you guys partner together. A big part of your business. But you guys are in the middle of a lot of the action. Talk about the company. What kind of deals you guys are doing? What visibility do you guys have? Is it a landscape? Give an example of some of the work that you guys do, and then talk about the relationship with Cisco. >> Yeah so, the Cisco is a very strategic partner of ours. They have been for a long time. And we have the benefit of being at scale with Cisco. For repeatable waves of technology roll outs. In repeatable domains of technologies. So, customers come to us and look for our help as a trusted advisor to help them with their architectural decisions. And to help them often with knowledge gaps. So, architecture is a challenge. Especially when you're dealing with rapid change. So you have a pace of change externally. You cover this space. I mean every day, right? We were sitting here there's some kind of new thing going on. And, that change, I mean even companies who know what they're doing, and have deep benches of talent, have architectural challenges. But you take it to an enterprise or a government agency. How are they going to keep up? Well that's really our job and the value we bring is. We are constantly watching, talking to partners, talking to customers. And there's almost no one we're that as closely with as we are with Cisco, in terms of how we're watching trends, looking what's happening. And from a multi-cloud standpoint, in answer to your question there, it's a bit of a thought experiment. So if you define multi-cloud as really just, oh it's just between Amazon, Azure, Google. Multi-cloud is just multi public cloud. We do not see it that way, our clients don't see it that way. Our clients see it as a bigger domain. That multi-cloud includes how you're connecting to SaaS. How you're, there's multiple public clouds, a bigger definition there. But then it's also the edge, the cloud edge, the different edges that are out there are are being deployed in a cloud architecture. Your core data center has a private cloud. All of that we see as multi-cloud. And when you define it that way, you start to look at it. Companies are saying who do I turn to to help me with a multi-cloud architecture? Do I turn to someone that was born in the cloud. Who just really knows AWS. They know it really well. But that's what they know. Or a similar consulting company who's over here. The credibility that we have, we have those capabilities. But we also have depth and breadth, and history, and knowledge, and contracts and relationships. An incredible ecosystem. And important with Cisco, it's not just a one-way relationship. We have an ecosystem around us, collectively, that Cisco benefits because we have that ecosystem. And that's really what companies look for. It puts us in a very unique position because we see this AND world. It's not an OR world. And I think even the investments and movements that the public clouds have made recently. The hybrid offerings that they're bringing, and where Kubernetes is going to enable portability. All these things really are about a multi-cloud world, and we're just excited about where we are. >> It's interesting, there's the first wave, Amazon, I call it the Amazon wave because they really did take out the beach. And then public cloud. It kind of showed the way, the economics and the value creation piece. And you mentioned a few things that point at this next wave. That next big wave I see it is about people and technology. This holistic view around multiple architectures is a systems concept so it's not unproven. And Fabio we've seen this movie before in systems. Operating systems. You need networking. You got to connect things together. So this next wave of thinking about workloads and applications in context to an architecture see to the next narrative that people are starting to talk about. Versus. >> Absolutely >> Public cloud, because the people equation, who's going to run it, who's going to service it, who's the coders, what tools and APIs do I use. People behave in certain ways, and they like their favorite cloud, so it's a whole different ball game. You're thoughts. What's driving all this? >> I would say, look, we could talk about this forever. But I think we're seeing a pretty dramatic shift into an architectural model, right? I mean, if you remember a few years ago, we had networking specialists in the data center, storage specialists and compu-specialists, well guess what, people moved to full-stack type of expertise, right? And now we even have systems that are completely converged. Or hybrid converged. Well, we're seeing the same movie in the cloud. Where we're seeing the rise of cloud architectures, enterprise architectures, which become really determinable of the business. And these people, especially in the companies that are ahead of the game, in terms of cloud adoption and expertise. These guys are issuing the new guidance and guardrails for the entire organization in terms of what governance role you need to take, right? And the other groups actually execute this kind of strategy. This is, some people say this is finally SOA coming alive. The SOA, Service Oriented Architecture. That's exactly what it is without probably some of the kind of propriety underpinnings, or driven by certain market players in the past. This is a true, so if you think about microservices in containers, that's exactly what it is. And also we're seeing a lot of companies that are starting getting even organized by microservices. Which is the ultimate demonstration that the technology architecture and the business architecture are really converged. It's a fairly complicated concept, but in the end it's about really connecting the business to the underlying technology. >> And it's a shift that's happening in front of our eyes. And we're covering a lot of the news. Some notable news that we've been covering lately, the Department of Defense JEDI contract. That's in the public sector and military. CNCF, Amazon re:Invent. Google Nexus coming out. You're starting to see the formation where it's not about the cloud vendor or the cloud supplier anymore, as much as it is about the workload. So, there's been a debate of sole sourcing the cloud, that's certainly, we're seeing that on the DOD side 'cause it's more a military procurement thing. But that's not the right answer anymore, we're seeing that whole, spread the multi-vendor love around. It's not so much like it used to be. It's different now, there's new architecture. So, Jonathan, I want to go back to your multi-cloud architecture because I think the strategic question that I'd like to get to is. It might not be a bad thing to pick a cloud, a sole cloud for workload. But that's not meaning you're going to not use other clouds. This is a whole different thinking. So I can pick Amazon for this workload or pick Azure for that workload and Google for that workload. And holistically connect them all together. Seamlessly, this is not a bad thing. Your thoughts. >> There's a somewhat of a paradox when you talk about multi-cloud architecture and then you talk about moments in time where it makes architectural sense to pick one cloud, right? That particular decision there's issues around people and training and technology, and time to market, and API coverage. So there's all these things that you're trying to get a job done or a mission done and the amount of time that you have to achieve that job or that mission. What path am I going to choose? What engine am I going to put on the plane to get me there? Now that doesn't mean that that's the only engine you're going to put on your fleet. It just means that particular plane is going to have that kind of engine. And then the next time, you got another engine, you got a different kind of plane. You're thinking about how you're doing these things in waves and modules, and you're trying to build your aggregate velocity, 'cause really if you strip it all down. You know earlier we were talking about multi-cloud and people and talent, we're in a distributed computing land rush. And businesses of all sizes, government agencies, companies are trying to figure out how do we, you know. Electricity came along, now cloud has come along, right over the horizon cognification's coming along. How am I as an enterprise getting digitally ready, and getting on a footing to be able to do what I need to do in that domain? And really, it's about velocity and movement, so. Now that means that, that's why architecture is so important, because you have to make, you want a, people talk about one-way doors and two-way doors. So you want stop and think about, am I going through a one-way door or am I going through a two-way door? Meaning, do I have a way to come back? Is this a decision that I'm going to live with? If so how long? Is this a decision I can go through and I can come back? These kinds of approaches let you look across it. So an example would be networking. So networking is a foundation to every multi-cloud strategy. So you have to think, today my network in many enterprises is still a campus branch architecture. Well traffic patterns have changed. Even if you've just done nothing your customers have moved. Like all of a sudden, you know we talk to customers. We work with retailers, we work with all kinds of people, and it is like Global Climate Change. It's like global network change. The scale at which the clouds have arrived have changed the network patterns. So, if you start to look at it, you're saying, well what is a multi-cloud networking strategy? How do I need to rethink, well, guess what, the campus, my headquarters, is no longer the hub it used to be. The hub is now at the cloud edge, where all the other clouds are geographically aggregated. I need to move my network closer to that location. So we do a lot of work with Equinix in that context, right? So they have and have built a business around >> Sort of re-architecture's happening, and it's being driven by value creation, value shifting. >> Yes. >> Moving everything around. >> And that's where from a cloud networking standpoint, you look at that's a discussion where Cisco's so uniquely situated, because they are the networking company. They've been through the generations and they've been through different changes of generations. You know Wi-Fi, didn't used to be Wi-Fi. Now it is, right, it's here. And now we're in this next paradigm, where cloud networking didn't used to be here. Now it is, so. >> What's the new thought process for cloud networking. Because it makes a lot of sense, you have to connect clouds, obviously networking latency, SLAs around moving things around from point a to point b, storing stuff as well. Fabio, what's the equation look like? What's changed? Where do your customers go in this new architecture? >> Well, just building on top of what Jonathan was saying before, first of all the way we architect the networks, enterprise networks were networks in the past. Of course this is coming to an end. We need to rethink them, right? The fact that users now are going to use an enormous amount of software as a service applications that don't sit in your data center, means that constricting all the software in a single place doesn't make any more sense. But there's not just the traffic element. Think about all the intrusion detection and prevention, firewalling capabilities. Because you're moving away from that model, you need to start visualizing also those security functions and distributing them all the way to the edge of the network. In some cases, you need to have them in the cloud as well. We believe that the best way is a fully distributed model. Where you have a choice. Whether you keep it in your data center, or you put into the cloud, or even the to edge of the network. Again, you got to be ready for any kind of scenario. It's interesting how, you know, we're going to distributed computing as you said. But everything else is getting distributed as well. >> Oh yeah. >> Your entire infrastructure needs to follow your application and data. Wherever they go. And that's actually something unprecedented that we're seeing right now. >> And you brought up cloud architecture earlier, Jonathan. You mentioned it briefly. And this comes back to some of that this nuanced point around cloud architecture. The procurement standards aren't driving what you buy, its architectural workload dynamics are now telling procurement how we're buying. So the world shifting from, oh, I'm going to buy these servers. I'm going to buy this gear, the approved vendors. When you think about architecture the way you pointed it out, it's a completely different decision making process. So what's happening is old ways of procuring and buying and consuming technology are now shifting to. Still not going to stand up a cloud with a credit card if I'm doing dev ops, but now you start thinking holistically. The decision making on what that will look like has changed. This is probably impacting the cultural people side as well. What's your thoughts on this dynamic between cloud selection, security, architecture, and procurement? >> The example I normally give is, it's changing but it's also evolving, right? Because you're dealing with patterns that are there, and they're not going to go away, right? Money still has to be paid. Processes have to be followed and respected. The examples that I give would be, I've run large clouds in my past. Different platforms. And one thing you always watch out for when you're running a cloud is capacity. How much money do I have in the bank, so to speak, right? Am I going to have a run on the bank? So if you're running that cloud, either, and this is true if you're a service provider or you have your own private cloud. You're very concerned about you don't want to run out of capacity. Because bad things happen. Even unrecoverable bad things happen. Well in the public cloud, hey, I'm free and clear, I no longer have a capacity management team, I don't need to worry about them anymore. No, no, no no. 'Cause, you know, we just saw some press recently of a company that had a big overage. In cloud, what used to be capacity management is now cost optimization. 'Cause if you don't have it, you're going to have a similarly bad outcome. It's those kinds of things, right? How do you go, and it's those things, right? >> Once a benefit, now it's a challenge. So this could back down to the billion dollar question on the table in the industry is, how do I manage all this? I know how to connect it. Cisco could help me there. I understand multi-cloud, I totally buy into the architecture. I think this is clearly the direction. The management piece is kind of a fuzzy area. Can you guys help unpack cloud management? What are the table stakes? How should people be thinking about it? Because you mentioned security and intrusion detection. Not just moving packets around. We were talking before you came on about Kubernetes. There's all new sets of services moving up the stack, inside this dynamic. How do I manage it all? What single pane of glass is going to do it for me? >> Well, yeah, it's interesting you mentioned there. We've talked a lot about almost like an East West type shift you can think of where, multi-cloud is this thing that goes this way. Well, there's an equally crazy paradigm that's happening in a very fast period of time where it's almost like a North South North shift. Which is, Kubernetes, containers, service meshes. These architectures that are abstracting and lifting everything up. And in some ways, coming underneath as well, at the same time. Because now you've got a return of bare metal. You have these concepts architecturally where the VM is here to stay, it ain't going anywhere. It's still, the tooling around is insanely valuable. But you have now another benefit layer at a container orchestration layer, where there's portability, speed. There's all these benefits that come. And you just look at the stats of how fast containers are growing as a share. You're approaching a billion containers out there right now. And therein lies the challenge. Is that it'd be enough of a difficulty if you were saying I need to go from managing my private cloud, the stuff I have at a cloud edge, edge location, and the stuff I have in multiple public clouds. That's not all we're saying. We're saying also, you have a new tooling and a new set, and it's all software defined, and there's security, network, there's data. It just it's -- >> Complex. >> Exploding, it's complex. So the area that we're working on and want to hear more from Fabio is were innovating with Cisco on, we have great offerings and capabilities around cross cloud and VM orchestration. We're also looking now at that Kubernetes layer. >> Absolutely. >> What's real on that, the complexity he just pointed out is an opportunity at the same time because it just validates the shift that's going on. >> Absolutely. >> Management is an opportunity. >> Jonathan almost went through the entire set of needs. And what you take away from this is that fundamentally you have to instrument this incredibly distributed environment multiple sources and sourcing of this. In fact I love the analogy that you did with the planes, because there's a lot of kind of similarities to a supply chain management kind of business model, right? Where you want to supply different services. But a bottom line is that you're now moving away from what you have. It's a journey. And so this instrumentation, whether it's networking, security, analytics, management, these are actually the four pillars of our company multi-cloud strategy. They need to work across the old and the new. You can't afford to build another silo and maybe leveraging a bunch of open stores like-- >> So a data plane strategy is critical. >> It's, yeah, and it has to-- >> Across the hybrid and multi-cloud. >> East West, North South, and across the old and the new. It sounds very complex, but in reality the-- >> But you could build a taxonomy around this. And we've seen some research come out certainly from Wikiban and others. If it fits into the architecture that seems to be the question. So Jonathan, where does that fit in to the multi-cloud architecture in your opinion? >> So we, there's, you get into different terminology. We think about every company needs a cloud services strategy. So there's a taxonomy of services that we've developed. Where companies have to think about their application services strategy. Their operation strategy, governance strategy, foundation strategy. And this is, it's sort of coming what I teased upon earlier about moving from capacity planning when you own the cloud to cost optimization when you're running the cloud, right? It's the same, but different. And a lot of that difference gets down to services. I am going from a model of running my own product in an information technology modality to now I'm consuming services. So, I used to architect, and design, and build. Now I have to architect and really understand those differences. And so that's our cloud services strategy portfolio. And what we often see is we also have a dev ops portfolio. And we short-hand it, you could call it cloud native, right? Where we're looking at solutions around infrastructures code, around CICD pipelines, around cloud foundation capabilities that connect back-- >> Are they best practices or actually implementation? >> So both, we have content and workshops that we've developed, and then we have. Helping clients on projects very actively. And, you know, that's where it gets back to that architectural gap and knowledge gap. Is companies are looking for, hey, what's the pattern, what are the best practices. And then they don't expect, 'cause there's so many elements that change for a given company. And that change in the market, that there's a shelf-life to this. And it's like fresh produce. >> I love your example of engine in a plane. Do you have it for a single plane or fleet of planes? Does your company have two three big planes. It depends really, I mean, beauty's in the eye of the beholder, here, right? How you build and architect cloud, there's no boilerplate. It really is comes down to figuring it out. >> Where you are. >> So, with that, I want to go to my final point I want to dig into on the people side. So technology shift, business shift, check. You guys did a great job there. Great insight. Comes up every time I have to go to a Cube event and talk about cloud, is the cultural people skills gap problem. One, our company doesn't have the culture and/or we don't have the skill and we don't have the people to run it. So, automation certainly can help there but at the end of the day, if you don't have the people to do this. How do you solve the people problem? How are you guys helping companies? What is some of the state-of-the-art techniques? What's out there? >> So, I'll say a little. I appreciate Fabio's perspective, too. I think for us, really, you know, the old saying, culture eats strategy for breakfast. Culture's more important than ever. Because really, you're now moving to a mode where siloed organizations implementing siloed technology is enormously challenging. You have to move, and that's where dev ops and other patterns come in, where the people who build the app are doing the operations. Storage and networking and compute and apps and the business, they're all talking to each other. So culture really is foundational so that a culture where you're not making boundaries more rigid, you have to get to a point, and there's different ways to do this. I already recommend if people haven't already read the Phoenix Project. Hard to believe but it's an excellent book. And it's a fictional work about tech. It's like a novel about tech. >> I haven't read it yet, I'm going to get that. >> It's awesome. And it really gets you in the mindset of an organization going through change with the net. And it really, I mean I'm a geek, so I like it, but I've had other non-Geeks read it and they like it. But that's the key, it's a-- >> So you really got to set the table and invest in culture, making sure it's >> Culture's foundational. >> appropriately aligned. >> Culture's foundational. And then there's other best practices that always apply, right? So, what is your business vision? What is your mission? What are your values? What are the objectives you're trying to achieve in this space and time relationship? How are you prioritizing? These are all things because then if you have the right build around all that. Then what you drive to is an outcome at a certain point of time. And time's critical. We're in a market that's competing on time. So if you are not hyper aware of time. And what you're doing in a set point of time. And the trade-offs in making changes if your assumptions are wrong. These are all things that are foundational. >> Fabio, I want to get your thoughts. Chuck Robbins talks about solving the tech problems just because a tech company can solve tech problems all day long. He's also behind the people skillset. I've heard him publicly talk about it. But you guys at Cisco have actually had a great transformation with the DevNet Create community, where you harness the culture, and everyone's engaged around cloud, cloud native, and you have a kind of cloud DNA developing out of the core network. Your thoughts and Cisco's view on culture and people solving the problem. Because we need an army of cloud architects out there. There's not enough people. >> So that's true, but we carry an enormous responsibility in the marketplace as a vendor. We have to make things simple, right? There's still, you know, most of the IT infrastructure's still very complex to program and automate and the likes. That's why we're putting an enormous amount of RnD efforts, right? DevNet is like the tip of the spear. It's showing fundamentally our very loyal CCIEs and everybody else there's a better way to do things, right? Where you can actually really automate things together. You can get access to the APIs and simplify your life. You can simplify your life and the life of the business 'cause you can get faster. So making things simple, automating them, I don't know, if you think about, for instance, our cloud management orchestration philosophy. With the cloud center, we have a patent where we can actually model the application at once. And deploying it to wherever you want. We can deploy that application on-prem, on a VM, or like viralize kind of infrastructure. You can put it into AWS, you can put it into Azure, whatever you want. Kubernetes is kind of target on-prem. That is simplicity, right? We have to drive simplicity. And for me, it's all about automation, and sometimes you hear things like, in 10-base architecture and infrastructure all of that means simplicity and security. And that's the complexity of the whole thing for us is trading off, of course some of the complexity, richness, and flexibility. But it's got to be simple. If we don't make it simple, we are actually failing our goals. And that's where we're putting an enormous amount of RnD effort. >> And Jonathan, you guys at WWT have a unique aperture, view of the marketplace. You see a lot of the landscape, knowing what you guys do. Every vendor says they it, but you're really customer focused, so you're in you're digging in with the customers, it's a real value added service. I got to ask you the question with multi-cloud it sounds easy just to connect them all, right? It's like a subnet plug it in the coax, put a hub there. Put some adapter cards on a PC. The old days of connecting things. It just metaphorically seems easy What's the opportunity for connecting multi-cloud? So, as people realize when they wake up tomorrow or today. And they go, hey, you know what, I got lot of multi-cloud around. How do I connect them together? What's the opportunity, what's the opportunity for Cisco. 'Cause that seems to be the first order of business. I can connect things together in the architecture. And then what happens next? What's the opportunity to connect these clouds. >> The opportunity is gigantic. If you look at just the growth of the public clouds themselves. The CAGRs that they're representing. They're growing the rate their growing on very big numbers already. And it often gets overlooked, but Gartner will tell you also that the co-location, that cloud edge space, is also growing at a good CAGR. So you have just more and more going there. All of that needs to be connected. All of it needs to be protected. So networking is not just networking. Networking is security. A critical pillar of any security practice is really understanding and knowing in-depth your network. The introspection of it all. And at the same time, we're moving from a physical world. And we've moved and virtualized, but now the virtualization of the network now with SD-WAN coming, you're moving to a programmable model, where everything needs to be programmed. So it's not humans. So it's almost like every arc. Just in terms of the amount of data, the amount of traffic, that's all growing. Now, it's not just humans, it's machines doing things. And then also it's not just physical connections. It's software. So it's a three dimensional plot and it's growing on every axis. >> It just not in every device, it's software as a device. Software device connections. Service connections. What's Cisco's opportunity? How positioned are they that can do this? Because there's a lot of conversation around edge. Now you just mentioned a few of them, 5G. What's Cisco's opportunity in all this? >> Well I mean I think Cisco's shown recently and then through generations that they have a unique ability to lead and move with the market. And they're demonstrating that now. So, I think the importance of where the network sits, and not just the network, but again there's an adjacency of security. There's an adjacency of orchestration and management. Their global presence, their global operation. The sophistication of their channel business. All those things put them in a really strong place, we feel. >> You mentioned SD-WAN in a previous comment around talking about edge and stuff. If you think about Office 365, when companies roll that out. That basically takes SD-WAN from a little niche industry to all the internet. SD-WAN is basically the internet now. Your old grandfather's SD-WAN was over here, now everything's SD-WAN. That's basically the internet. So talk about the SD-WAN impact in this because with edge, that's super important too. Your thoughts. >> Well, it was back when we were talking about that traffic patterns are changing. So you're moving to no longer really this campus branch closed network. There's still an important need for that, of course. But now you're doing your business where your customers are. On their phone, in their car. Which means you're having to traverse and work and scale in a very different way. It's part where you have to put the network. And then, it's how you have to run and connect the network in your retail store or in these other things. Part of it is doing what we've always done in a better way. And then probably every day, more of it is about doing things in a new way that you couldn't do in the past to achieve a new business objective. >> Well Jonathan, thanks for coming on theCUBE conversation. I'd love to have you back on. Great insight. We could also do remotes. So when you go back to the home branch in St. Louis we can bring you in. >> Tells you Silicon Valley and St. Louis, man. Silicon angle, Silicon Valley, St. Louis. >> Let's do it. And I'll say congratulations on your success with Cisco. Fabio, it's been great to see you. Final word, Fabio, just bring it all together. Multi-cloud, it's here, kind of that's the reality. >> Yeah, I want to go back really to where we started the conversation, right? We can't forget the multicloud is still like a mean to and end. The end is, companies want to become and need to become innovative and fast. And that's actually why all this interest in multicloud. It's a business engine. That's why we're all so excited. Because it's a business issue. It's not so much a brand new technology that probably in two years is going to be out of fashion. My personal prediction, we're going to be talking about multicloud for several years. On the contrary of other trends. >> And just to real quickly bring in what we talked about before we came on camera. This is a CEO issue of companies, not CIO. >> Absolutely. >> This is showing the culture and the urgency, really, in all this. >> That's right. >> Absolutely. Guys, thanks so much for coming on. Great insight. Multi-cloud conversation, fantastic. Jonathan King, Vice President of Strategy, Data Center, and Cloud for WWT. Also Fabio Gori, friend of theCUBE, Senior Director Cloud Solution and Marketing at Cisco. Thanks for coming on. This theCUBE conversation. I'm John Furrier, thanks for watching. (upbeat funky music)

Published Date : Mar 15 2019

SUMMARY :

From our studios in the heart Co-host of the Cube. in the reality sense than anything else. And when you arrive at that point Fabio, Cisco, you guys have seen the waves of innovation, the speed and agility that you can get out of it now Give an example of some of the work that you guys do, And when you define it that way, And you mentioned a few things that point at this next wave. Public cloud, because the people equation, the business to the underlying technology. But that's not the right answer anymore, and the amount of time that you have and it's being driven by value creation, value shifting. you look at that's a discussion where Cisco's you have to connect clouds, or even the to edge of the network. And that's actually something unprecedented the way you pointed it out, How much money do I have in the bank, so to speak, right? So this could back down to the And you just look at the stats of how fast containers are So the area that we're working on is an opportunity at the same time In fact I love the analogy that you did with the planes, East West, North South, and across the old and the new. that seems to be the question. And a lot of that difference gets down to services. And that change in the market, beauty's in the eye of the beholder, here, right? if you don't have the people to do this. and the business, they're all talking to each other. And it really gets you in the mindset And the trade-offs in making changes and you have a kind of cloud DNA developing And deploying it to wherever you want. I got to ask you the question And at the same time, we're moving from a physical world. Now you just mentioned a few of them, 5G. and not just the network, So talk about the SD-WAN impact in this because with edge, And then, it's how you have to run and connect the network I'd love to have you back on. Tells you Silicon Valley and St. Louis, man. Multi-cloud, it's here, kind of that's the reality. and need to become innovative and fast. And just to real quickly bring in This is showing the culture and the urgency, Strategy, Data Center, and Cloud for WWT.

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Jonathan Frappier, vBrownBag | VTUG Winter Warmer 2019


 

>> From Gillette Stadium in Foxboro, Massachusetts, if the queue recovering Vita Winter warmer, twenty nineteen Brought to you by Silicon Angle media. >> Hi. I'm stupid men. And this is the cubes coverage of V tug Winter warmer. Twenty nineteen here. A Gillette Stadium, home of the New England Patriots. Happy to welcome to the program. A community member, Someone I've known for many years at this point. Jonathan Frappe here. Who's with V Brown bag? Thanks so much for joining us from >> Thanks for having me. >> All right, so, you know, I watched this event, and when it started, it was, you know, originally the V mug for New England. And then it became vey tug And one, there's some of the politics stuff which we don't need to go into, but part of it was virtual ization and cloud. And what's the interaction there and what will users have to do? Different. And part of that is jobs. And one of the reasons I really wanted to bring you on is, you know, you started out heavy in that virtual ization base and you've been going through those machinations. So maybe just give our audience a little bit about, you know, your background, some of the things skill sets. You've got lots of acronyms on your on your you know, resume as it is for certification. You've done. So let's start there. >> Sure. So my background. I started this help desk. I did Windows two thousand Active Directory, administration and Exchange Administration all on site and moved into Mohr server administration. And when the empire started to become a thing, I was like, Wow, this is This is a game changer and I need to sort of shift my skill set. I understand the applications of music. I've been supporting him. But virtualization is going to change change That so started to shift there and saw a similar thing with Public Cloud and automation a cz, That same sort of next step beyond infrastructure management. >> All right. And you've had a bunch of certification. The real off a few. You know what? Where are you today? What? What have you added gives a little bit of a timeline. >> My first certification was a plus which come to you seemingly has come around and joined the ranks of posting toe linked in for everybody. So a plus was my first one. EMC PM, CSC on Windows two thousand. Took a little bit of a break in back into it. Bcp five era so four, five years ago. Cem Cem. Other of'em were Certs NSX Cloud see Emma and most recently, the solution's architect associate for a Ws. >> OK, great, in when you look at the kind of virtual ization and cloud, it's not like you thirst, which one day and said, Okay, I no longer need the VM were stuff. I'm going to do the cloud tell us a little bit about you know what led you to start doing the cloud and you know how you you know how your roles that you've had and you know the skill set that you want to have for your career. You know how you look at those. >> So for me, it is about being able to support what my business is doing. And sometimes the right answer's going to be VM, where sometimes it's going to be physical. Sometimes it's going to be containers or public cloud, or, you know, new fancy buzzwords like server lists. And I've always in my career tried to support what where, what application we're delivering to get the business, the information they need. So for me to do that properly, I need to be well versed across all of that infrastructure so that when when it's time to deliver something in public cloud or time to deliver something in the container, I'm ready to go when you do that. >> Yeah. What? What? What's the push and pull for some of the training bin? Is this something that you've seen? You said, like Veum, where you saw it, like, Oh, my gosh, I need to hop on that. You know, I remember back to those early days I remember engineers I worked with that were just like, this thing is amazing. That was like preview motion, even. Yeah, but you know, just what? That that impact we've seen over the last, you know, ten to fifteen years of that growth has there been times where the business is coming said, Hey, can you go learn this? Kaixian orders have been you driving most about yourself. Uh, >> it's it's been both. There are times when the business has come and said, Hey, we would really like to take advantage of virtual ization or public cloud. And it from a technology perspective, there may have been other factors that would impact the ability to do that. So that's why for me. I tried to sort of stay ahead of it when, you know virtual ization was taking off and everything I had was on physical servers. I knew I needed to have the VM where peace in my pocket so that when the business was ready and when other things like compliance, we're ready for it. We could move forward and sort of advanced that same thing with Public Cloud. Now that that's Mohr prevalent and sort of accepted in the industry a lot more cos they're moving in that direction. >> Yeah, and you know, what tips would you give your Pierre if they're a virtual ization person? You know, how are the waters in the cloud world is there are a lot of similarities. Is it? You know, do I have to go relearn and, oh, my gosh, I need to go learn coding for two years before I understand how to do any of this stuff. >> I think it's helpful. Tto learn some level of coding, but do it in an environment that you're comfortable in today. So if you're of'em were admin today, you know there's power, see Ally and be realized orchestrator and and even if you're on via Mars Cloud platform there's there's some basic power shell on bass scripting you could do in the cloud Automation. Get comfortable with the environment, you know. And then as that comfort grows when you move Oh, look, there's power shell commandments for a ws. If that's the route, you go so oh, already understand the format and how I how I glue those things together so you could get comfortable in the environment you're in today and sort of get ready for whatever that next step is. >> Yeah, I've always found I find it interesting. Look at these ecosystems and see where the overlaps and where two things come together. You know, I actually worked with Lennox for about twenty years. So I you know, back when I worked at Emcee the storage company and I supported the Lenox Group and Lennox was kind of this side thing. And then you kind of saw that grow over time and Lennox and virtual ization. We're kind of parallel, but didn't overlap is much. And then when we get to the cloud, it feels like everybody ended up in that space and there were certain skill sets that clinics people had that made it easy to do cloud in certain things that the fertilization people had that made it easy do there. But we're kind of all swimming in the same pools. We see that now in the, you know, core bernetti space. Now I see people I know from all of those communities on, but it's kind of interesting. Curious if you have anything you've seen in kind of the different domains and overlapping careers. >> Yes, you. For me. I think what's help is focusing on how the applications the business uses consumed, what some of the trends are around, how you know whether finance or marketing teams are interacting with those applications. If I know how the application works and what I need to do something to support it, the concepts aren't going to be vastly different. If I know how Exchange's install their sequel servers install, there's some custom application is insult. I could do that across the VM, where environment native US environment and should it supported into Docker by leveraging Cooper Netease. >> All right, so you've mentioned about the time the application, can you? How has it changed your relationship with kind of the application owners as you go from, you know, physical, virtual, the cloud. >> I don't think it should change much. The problem probably the biggest shift that you have is that at some point now, things are out of your control. So when I've got a server sitting in my data center that I can walk down the hallway to if something's not working, I have access to it. If there's an application down in the public cloud, or there's an A Ws outage or any public cloud provider outage, I have to wait. And that sort of I think the thing that I've seen business struggle with the most like, well, it's down, go fix it. It's like, I can't get to it right now, and I'm probably not driving to Virginia, Oregon to go reboot that server for Amazon. >> Whoever absolutely big shift we've seen right is, you know a lot of what I is. It I am managing is now things that aren't in my environment. You know, there was my data centers. My might have had hosted data centers where I'd call somebody up, you know, you know, tell the Rex paper person to reboot the servers or it's right, it's in the public cloud. In which case it's like, OK, what tools. What can I trouble shoot myself? Or is there some, you know, out of that I'm not aware of, you know, is affecting me. Yeah, >> it's Ah, it's a good shift to have for a infrastructure person because we're really getting to the point now. I think the tails, the scales have tipped to focusing more on delivering business value versus delivering infrastructure. The CFO doesn't necessarily think or care that spinning up a new V m faster is cool. They care about getting their application to their team so that they could do their work. So I think taking, you know, going to public cloud or going to other platforms where that's removed it sort of forces you to move to supporting supporting those business applications. >> So I'm curious it every time we have one of these generational shift time. Time is like, Oh, my gosh, I'm going to be out of a job on the server ID men Virtualization is going to get rid of me. I'm a virtual ization Had been cloud's going to get rid of me. This whole server listing will probably just get rid of all the infrastructure people I've read article yesterday was called the Creeping Apocalypse a CZ what they called it. But, you know, you know what you saying is there general fear in your peers or, you know, do you just, you know, dive in and understand it and learn it? If you could stay, you know, up with or a little bit ahead of the curve, you know you're going to keep employed. >> I would say that there's a mix there. Some people, even just a few months ago, some some folks I talked to and they were just sort of breaking into automation and like how they can automate deploying their applications in their legitimate concern, was I won't have a job anymore and sort of the way I looked at that was my job's going to change. I don't spend my entire day administering Windows two thousand active directory boxes any more. So I need Yes, I need to shift that and start thinking about what's next. If I can automate the routine task, you know, deploying an application, patching and application, bringing things up and down when there's some sort of failure than I, uh, I'm going to naturally grow my career in that way by getting rid of the boring stuff. >> Yeah, and I've been here in this argument against automation for decades now, and the question I always put two people is like, Look, if I could give you an extra hour a day or an extra day a week, do you have other projects that you could be doing or things that the business is asking for? That would be better. And I've yet to find somebody that didn't say, Yeah, of course, on DH. What are the things that you're doing that it would be nice to get rid of, You know, other people is like I love the serenity of racking and stacking cabling stuff. And nothing gets people more excited than beautiful cables in Iraq. I thought yesterday I saw people like going off about here's this data center with these beautiful, you know, rack, you know? So with the cable ties and everything, but I'm like, really, you know, there's more value you can add absolutely out there. So >> automate yourself into your next job. It is sort of the way I think I like to think about it. It's not a meeting, >> so let's you know, just look forward a little bit, you know? There's all these waves, you know, Cloud been a decade data was talking to keep downs in this morning on the Cube on we said, you know, when he talks to users, it's their data that super important applications absolutely is what drives, uh, you know, my infrastructure, but it's the data that's the super important piece. So you know, whether it be, you know, you're a I or, you know, you figure various buzz word of the day I ot You know, data is in the center. So what do you looking forward to is? Are there new search or new training that that are exciting? You are areas that you think you're Pierre should be poking out to help try to stay ahead of the curve. >> Yeah, and back to my earlier point about leveraging the thing you know today and how to sort of grow your career. And that next skill set is how I can look at data and make. I understand what's going on around that. So maybe maybe today that's taking some stats from any SX. I hosted an application and correlating that data together on help. You underst Yes. And you know what that means for the applicator action before or use their calls in. And that's going to help you grow into sort of this new realm of like, machine learning and big data. And in analytics, which I think is really the next thing that we're going to need to start doing as Mohr and more of that infrastructure shifted away into surveillance platforms and things that were not worried about How can I understand? How can I take that data? Transform it, use it, correlated together to, you know, help make decisions. >> Alright, on final thing, give us update on our friends at V Brown bag. So, you know, we talked Well, I always say, you know, when we go to V m world, it's like we're there. I'm trying to help kind of balance between the business and the technology. You want to go a little deeper and really geek out and understand some of these things. That's where you know the V brown bag. You know, people are going to be able to dig in with the community in the ecosystem. There was the V and V brown bag for virtual ization. But he brown bags doing much more than just traditional virtualization today. You know what? What? What's on the docket? >> Eso upcoming This year, we're gonna have some episodes around Python so helping add men's get to know Python start to get comfortable with it, Which would be a great language to a automate things that maybe you're doing today in your application, but also to be able to take data and and use Python, too. Manage that data extract value out of that data so that you can help make decisions. So look for the throughout this year and, you know, learn new things. >> All right, Jonathan, from pure pleasure to talk with you on camera after talking to off camera for many years. Thanks so much for joining us. All right. And we appreciate you joining us at this virtual ization and cloud user event. Ve tug Winter warmer. Twenty nineteen on student a minute. Thanks for watching the cue

Published Date : Jan 29 2019

SUMMARY :

Vita Winter warmer, twenty nineteen Brought to you by Silicon Angle media. A Gillette Stadium, home of the New England Patriots. So maybe just give our audience a little bit about, you know, your background, some of the things skill sets. That so started to shift there and saw a similar thing with Public Cloud and automation What have you added gives a little bit of a timeline. My first certification was a plus which come to you seemingly has come around and joined I'm going to do the cloud tell us a little bit about you know what led you to start doing the cloud and you know how I'm ready to go when you do that. That that impact we've seen over the last, you know, ten to fifteen years of that growth has you know virtual ization was taking off and everything I had was on physical servers. Yeah, and you know, what tips would you give your Pierre if they're a virtual ization person? If that's the route, you go so oh, We see that now in the, you know, core bernetti space. how you know whether finance or marketing teams are interacting with those applications. with kind of the application owners as you go from, you know, physical, virtual, The problem probably the biggest shift that you Or is there some, you know, out of that I'm not aware of, you know, is affecting me. So I think taking, you know, going to public cloud or going to But, you know, you know what you saying is there general fear in your peers or, If I can automate the routine task, you know, deploying an application, patching and application, and the question I always put two people is like, Look, if I could give you an extra hour a It is sort of the way I think I like to think about it. so let's you know, just look forward a little bit, you know? Yeah, and back to my earlier point about leveraging the thing you know you know, we talked Well, I always say, you know, when we go to V m world, it's like we're there. this year and, you know, learn new things. All right, Jonathan, from pure pleasure to talk with you on camera after talking to off camera for many years.

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Jonathan Rosenberg, Five9 | CUBEConversation, January 2019


 

>> Hello, and welcome to the special. Keep conversation here in Palo Alto, California John Furrier, Co-Host of the Cube. We're here with Jonathan Rosenberg, CTO chief technology officer and head of AI for Five9. Jonathan. Great. Great to see you. Thanks for coming in. >> Thanks. My pleasure to be here. >> So you've had a stellar career? Certainly. Technical career going way back to Lucent Technologies. Now here at Five9, Cisco along the way. You've been a really technical guru. You've seen the movie before. This's happening. Every wave of innovation, multiple ways you've been on. Now you're on the next wave, which is cloud AI, CTO Five9. Rapidly growing company. Yes, it is. What attracted you to five? >> Yeah, Great question. There's actually a lot of things that brought me to Five9. I think probably the most important thing is that I've got this belief, and I'm very motivated for myself. A least to do technology and innovate and create new things. And this belief that were on the cusp of the next generation of technology in the collaboration industry. And that next generation is going to be powered by artificial intelligence, and one of the ways I sort of talked about this is that if you look at the entire history of collaboration, up til now meetings, telephony, messaging was to figure out, a way to get the bits of data from one person to another person fast enough to have a conversation. That's it. You know, once we got the audio connected, we just moved the audio packets in the video packets and messaging from one place to another. And we didn't actually analyze any of that because we couldn't. We didn't have the technology to do that. But now, with the arrival of artificial intelligence and particular speech recognition, natural language processing, we can apply those technologies to that content and take all this dark data that's been basically thrown away the instant it was received, to process it and do things. And that is going to completely transform every field of collaboration, from meetings to messaging, to telephony. And I believe that so strongly, that is, That's great. That's going to be my next job. I wanna work on that. And it's going to start in the Contact Center because a contact center is the ideal place to do that. It's the tip of the spear for AI in collaboration, >> and it's in a really great area. Disruptive innovation are absolutely so Take us through the impact was one of things I have observed in this industry is you have You know, I don't want to say mainframe clients served to go back to date myself, but there was that wave of client server computer >> mainframes. Cool again. We just called clout. Now, hey, is >> exactly. So you have these structural industry waves take us through the waves of how we got here and what's different now? And why can't the old guard or the older incumbents surviving if you're not out in front that next wave your driftwood. So what? What's What's his ways mean? Why is this important? What has to change to be successful? >> Exactly. So there's been this this whole like you said these waves. So the first wave of telecommunications was like hardware: circuit switching, big iron switches, sitting in telco data centers, you know, And then that era transitioned to software and that was with the arrival voiceover IP and technologies like SIP, and that made it more less expensive. And anyone could do it, and it transformed the industry. The next wave, the third wave were still like halfway through and in some areas, actually, just beginning contact, center was early here, the third wave is cloud, right is now we're moving that software to a totally new delivery vehicle that allows us to deliver innovation and speed. And that wave has now enabled us to start the next wave, which is on ly in its infancy, which is AI right, and the application of machine learning techniques to automate all kinds of aspects of how people communicate in collaborate. >> I think cloud is a great example of Seen a. I, which had been a concept around when I was in computer science. Back in the eighties, there was a guy you know theory, and it's the science of it is not so much change, but computing's available. The data to be analysed for the first time is available. Yeah, you mentioned analyzing the bits writings. There's now a key part. What does it actually mean? Teo. Someone who's has a contact center has a large enterprise. Says, you know what? I got to modernize. How does A I fit them? What is actually going on, >> right? Great question. So a I actually consult lots different problem at the end of the day again, Hey, eyes like this, Let's. It's the biggest buzz word right on. It's in my title. So, like I'm a little guilty, right? >> We'll get a pay raise for, But >> what? It comes down to this, really this Korean machine learning, which is really like a fancy new algorithmic technique for taking a bunch of data and sort of making a decision based on it. So And it turns out, as we've learned that if you have enough data and you can have enough computing and we optimize the algorithms, you could do some amazing things, right? And it's been applied to areas like speech recognition and image recognition and all these kind of things. Self driving cars that are all about decision process is, Do I go left? I go right? Is this Bob? Is this Alice? Did the users say and or did they say or write those air all decision process? Is that these tools economy? What does it mean? The Contact Center? It means everything in the context. And if you look at the conduct center. It's all about decision. Process is, you know, where should this call get routed? What's the right agent to handle the call right now? When the agent gets the call, what kind of things should they be saying? What I do with the call after the call is done, How should the agent use their time? All those things are decision processes and their key to the contact center. So so, aye, aye. And Emily going to transform every aspect of it and, most importantly, analyzing what the person is saying connecting with the customer, allowing the age to >> be more. You know, I think this is really one of the most cutting edge areas of the business. And the technology and throw in CEO was talking about an emotional cognitive recognition around. Yeah, connecting with customers and data certainly is going to be a part of that. But as machine learning continues to get it, Sea legs. Yeah, you seeing kind of two schools of thought? I call it the Berklee School. Hard core mathematics. Throw math at it. And then you've got this other side of a machine learning which is much more learning. Yeah, it's less math. More about adaptive and self learning. One's deterministic one's non deterministic is starting to see these use cases where Yeah, there's a deterministic outcome, right throw machine learning at a great exactly helped humans come curate, create knowledge, create value that you've got a new emerging use case of non deterministic, like machine learning environments where I could be driving my test Look down the road or my company's run the Contact Center. I gotto understand what's gonna happen before it happens. Right? Talkabout this. What's your thoughts on this is This isn't really new, pioneering area. What's your view on >> this? Yeah, so I think it actually straight sort of a key point. I wantto narrow enough from what she said, which is that a lot of these problems still, it's about the combination of man and machine, right? It's that there's things that you know are going to be hard for the machine to predict. So the human in their usage of the product, teaches the machine, and the machine, as it observes, helped the human achieved mastery. And that human part, by the way, is even more important in the conduct centre than anywhere else. At the end of the day, your customer and you call up, you're reaching for human connection. You're calling this. You want to talk, you've got a problem. You need someone to not just give you the answers, but empathize with youto understand you. Right? And if you go back to anything about the best experience you've ever had when you called up for support or get a question answered. He was like it was someone who understood you who's friendly, polite, empathetic, funny. And they knew exactly what they were doing, right? And they solve it for you. So the way I think about that, is that actually the future of the context. Dinner is a combination of human and machine, and the human delivers the heart, and the machine delivers the master. >> And I just noticed your I'm looking at Twitter, right? And you just tweeted this forty minutes to go the future of Contact Center. Nice. A combination of human and machine human delivers heart. The machines lose mastery. I think this is so important because unpacking that words like trust come out True relationship. So you asked about my experiences is when I've gotten what I needed, You know, all ledger, the outcome I wanted. Plus I felt good about right. I trusted it. I trusted the truth. It was. And he's seeing that in media today with fake news. You're seeing it with Digital has kind of almost created, anonymous, non trustworthy its data. There's been no real human. Yeah, packaging. So I think you're I'm hearing you You're on the side of humans and machines, not just machines being the silver bullet. >> Absolutely, absolutely. And again, it goes back to sort of the history of the contact centre has been this desire to, like, just make it cheaper, right? But as the world is changing, and as customer experience is more important than ever before and is now, technology is enabling us to allow agents and human beings to be more effective through this. The symbiotic relationship that we're going to form with each other, like we can actually deliver amazing customer experiences. And that's what really matters. And that idea of trust I want to come back to that word that's like super Central to this entire thing. You know, you have that as a user, you have to trust the brand you have to trust the information you're getting from the agent. You have to trust the product that you're calling them talking about, and that's central to everything that we need to do. In fact, it's a It's a fundamental aspect of our entire business. In fact, if you again think about it for a moment here, we're going to customers who are looking to buy a context, and we're saying, Trust us, we're going to put it in the cloud, We're going to run it, We're going to operate it for you and we're going to deliver a great, highly reliable experience that takes trust to sew one of things that back to your early early question. Why did come two, five, nine? One of the things it has done is build this amazing trust with its customers to its huge, amazing reliability. Up time, a great human process of how we go in work with our customers. It's about building trust in every single >> way. So I want to put in the spot because I know you've seen many ways of innovation. You've seen a lot of different times, but now it's more accelerated. Got cloud computing at a much more accelerated innovation cycle. So as users expect interact with certain kind of environment. Roman talked about this in his interview. CEO Control. So you just want to be served on the channels that they want to be served in. So having a system that they have to go to to get support, They wanted where they are. And so how is the future of the customer interaction? Whether it's support our engagement is going to take place in context to nonlinear discovery, progression, meaning or digging a service themselves in the organic digital space. I honestly want to go to a site per se. How do you see the future evolving around this notion of organic discovery? Talking to their friends, finding things out? Does that impact how Five9 sees the future? >> Yeah, absolutely. And I think it gets back to sort of an old idea of Omni channel. I mean, this is something that the context people been talking about for, like forever, like the last ten years, right? And and its original meeting was just this idea. Oh, you know, you can talk to us via chat, or you can send us an e mail or you can send us a text or you could call us right and we'll work with you on any of those, like you said. Actually, what's more interesting is as customers and users moved between those things, and it actually switches from reactive to proactive right where we actually treat those channels as well. Depending on what the situation is, we're going to gather information from all these different data sources, and then we're going toe, find the right way to reach out to you and allow you to reach out to us in the most official. >> So you see a real change in user expectation experience with relative rule contact? >> Yeah, I mean, I mean, the one thing that technology is delivered is a change in user expectations on how things work. And if you look at the way we as human beings communicate with each other, it's dramatically different today than it was really just just a few years ago. >> So, Johnny, let's look under the hood now in terms of the customer environment, because certainly I've seen Legacy after Legacy sisters being deployed. It's almost like cyber security kind of matches the same kind of trend that in your world, which is throw money at something and build it out. So there's a lot of sprawl of solutions out there and trying to solve these problems. How does the customer deal with that? And they're going forward there on this new wave. They want to be modernized, but they got legacy. They had legacy process, legacy, culture. What's the key technical architecture, How you see them deploying this? What's the steps of the patient and her opinion? >> It will surprise you not one drop when I say it's go to the cloud, all right, and there are real reasons for it and by the way, this is going to be going to be talking about this at Enterprise Connect. So, So tune in Enterprise Connect. I'm going to be talking about this. Um, there's a ton of reasons, five huge ones, actually, about why people need to get to the cloud. And one of them is actually one of the ones we've been talking about here, which is a lot of this. Modernization is rooted in artificial intelligence. It turns out you just cannot do artificial intelligence on promise you cannot. So the traditional gear, which used to be installed and operated by legacy vendors like a VIA, you know, they go in, and Genesis, they go in the install a thing and it works just for one customer at a time. The oly way artificial intelligence works is when it gathers data across multiple customers. So multi tendency and artificial intelligence go hand in hand. And so if you want to take any benefit from the stuff that we've been talking about this conversation, the first step is you gotta take your context int the cloud just to begin building and adding your data on the set and then leverage the technologies and they come out >> So data is the central equation And in all this because good data feed's good machine learning good machine learning feeds Great a. I So data is the heart of this, yes. So data making data in the cloud addressable seems to be a key. Thought Your reaction and what are you guys doing with? >> Absolutely, absolutely. And this is, by the way, another reason why I joined five nine, that I've been speculating here. I said, All right, if Date if ya if the future is about a I miss, I said, That's what I want to do in collaboration. You need data to do that. You actually have to work for a company that has a lot of data. So market leadership matters. And if you go look at the contact center and you go look at all the industry and analyst reports like it made it pretty obvious, like who to go to there is like the leader in cloud Conduct. Sonar with with tons of agents and tons of data is Five9 and ah, and so that's That's why you're so building the data aggregating data. That's one of the first things I'm working on here is how do we increase and utilize the data that we've been gathering for years. >> And and a lot of that we've had this conscious with many customs before about Silas Silas. Kill innovation When it comes to data address ability, your thoughts on that and what customs Khun due to start thinking about breaking down those silent >> exactly so In fact, Silas have been a big part of the history of especially on premise systems. Once in fact, Afghan one silo for inbound contacts and are different for outbound. Different departments, by the way, also had their own different comic centers. And then you had other tools that on the other data, if you don't like a separate tool over there for serum and a different tool over there for WFOR debut Fam and something else for Q M. And all these things were like barely integrated together in the cloud that becomes much more natural. Spring these technologies together and the data can begin to flow from the systems in and out of each other. And that means that we have a much greater access to data and correlated data across these different things that allows us to automate all over the place. So it's this positive reinforcement sile cycle that you only get one year when you've gone to the club. >> The question I want to ask you, it's more customers on pretend I'm a customer for second. I won't ask you, Jonathan, what's the core innovation for me to think about and bring to my organization? If I want to go down the modern monitors you. How do you answer that question? What is the core innovation? Stretch it. I should have Marcy moving through the cloud is one beyond that is itjust cloud. Then what else? What, Juanito? Be preaching internally and organizing my culture >> around. Yeah, great questions. So, I mean, I think the cloud is sort of the enabler of many of these different pieces of innovation. Right? So velocity and speed is one of them. And then setting up and adjusting these things used to be super super hard. Ah, you wanted to add agents seats? Oh, my gosh, enough to go binding hardware and racket stack boxes and whatever. So even simple things like reactive nous, right? That's something that's important to talk about is that many of our customers and our businesses are highly seasonal. Right? We've seen like someone showed me a graph. This was like, Oh, my gosh, it was It was a company that was doing ah, telethon. And they said, Here's how many agents they have over this year. It was like two agents, and then it shut up. It's like five hundred agents of phones. Two days exactly. Drop back down. And I'm like, if you think about a business like that, you could never even do that. And so the so cloud is nice, but the way you talk about it, and as an I t buyer of these technologies, you talk your business owners about reacted nous speed, velocity, right? That's what matters to a business and then customer experience. >> You're one of the things that just to kind of end of second, I want to get your thoughts on. I'm gonna bring kind of industry trend. That's I think, might be a way to kind of talk about some of these core problems on data. Most mainstream people look at Facebook and saying, Well, what a debacle. They used my data. These men against me. I'm not in control of my data. You're seeing that weaponization people saying elections were rigged. So weaponizing data for bad is this content, and this context ends right? An infrastructure that's right, >> that's right. >> But there's also the other side, which is, you actually make it for good. So you started thinking about this people starting to realize Wow, I should be thinking about my data and the infrastructure that I have to create a better outcome. That's right, Your thoughts on that as people start to think about II in terms of the business context, right? How did they get to that moment where they can saying, I don't want anyone weaponizing did against me. I want to use it for good. How did the head of the company comes back to >> trust, by the way, right? Is that you know, on and to some degree that's an uphill battle due to some of these debacles that you just talked about. But Contact Center is a different beast of the whole thing. And interestingly, it's an area where there's already been an assumption by users that when they interact with the contact center, that data is sort of used to improve the experience. I mean, every contacts and the first thing I say, by the way, this call may be recorded for training. Um, honoring purses, Captain, that they are right. It's it's already opt in. There's an assumption that that's exactly how that is being used. So it's This is another reason. By the way, what's a contact center is? It was the tip of the spear because it was a place where there was already permission, where the data is exactly the kind of stuff that had already been subject to analysis and Attock customer expectation that that's actually what was happening. The expectation was there they building action, that data what was missing. So now we're filling in the ability to action on that All that data with artificial intelligence >> and final question. What's your vision going forward? A CTO and aye, aye. What's the vision of Five9? What do what do you see? The twenty miles stair for Five9 within consciousness. We just talked about >> it. So? So it's It's about revolution. I'll be honest. Right on. I tell people like, I'm not like an incremental, steady Eddie CTo like I do things because I want to make big changes. And I believe that the context and R is on the cusp of a massive change. And my boss, Rohan said this and this has been actually central to how I'm thinking about this. The Contact Center in the next five years will be totally different than the twenty five years before that. It's a technologist. I say. Wow, five years like that's not very long in terms of softer development. That's what we were going pretty much rewrite our entire stack over the next five years. And show. What should that start to look like? So for me, it's about how do we completely reimagine every single aspect of the context center to revolutionize the experience by merging together, human and machine and totally new >> and the innovation strategies cloud in a cloud and and and data great job and great to have you on pleasure. Great, great conversation. Quick plug for you guys. Going to be a enterprise, connect to Cuba. Lbi. They're covering the event as well. What you going to talk about that? What? Some of the interactions? What will be the hallway conversations? What's your objective? What's your focus >> exactly? So so I'm going to be having my own session. We're going to be talking about the five reasons that you may not think about to goto context on the cloud. I've hinted already. A James of them. I think we're too well. That's you can you know, A. I is clearly central and I'm going to start to talk about the other four. >> Great, great conversation. A lot of change. Massive change happening. Great innovation Stretch. Great mission here at Five9. Great, great mission around. Changing and reimagine. More change the next five years in the past twenty five years. Again cloud computing eyes doing it will be winners. Will be losers will be following it here on the Cube. Jonathan Rosenberg, CTO ahead of AI at Five9. I'm John Furrier with the Cube. Thanks for watching.

Published Date : Jan 25 2019

SUMMARY :

Co-Host of the Cube. My pleasure to be here. What attracted you to five? is going to be powered by artificial intelligence, and one of the ways I sort of talked about this is that if you look at the entire things I have observed in this industry is you have You know, I don't want to say mainframe clients served to go back to date Now, hey, is So you have these structural industry waves take us through the waves of how So there's been this this whole like you said these waves. Back in the eighties, there was a guy you know theory, and it's the science of it is not so So a I actually consult lots different problem at the end of the day again, What's the right agent to handle the call right now? And the technology and throw in CEO was talking about an emotional cognitive recognition You need someone to not just give you the answers, And you just tweeted this forty minutes to go the future of Contact Center. We're going to operate it for you and we're going to deliver a great, highly reliable experience that takes trust to So having a system that they have to go And I think it gets back to sort of an old idea of Omni channel. And if you look at the way we as human beings communicate with each other, it's dramatically different today than it was What's the key technical architecture, How you see them deploying this? benefit from the stuff that we've been talking about this conversation, the first step is you gotta take your context int the So data making data in the cloud addressable seems to be a key. And if you go look at the contact center and you go look at all the industry And and a lot of that we've had this conscious with many customs before about Silas Silas. So it's this positive reinforcement sile cycle that you only get one year when you've gone What is the core innovation? And so the so cloud is nice, but the way you You're one of the things that just to kind of end of second, I want to get your thoughts on. How did the head of the company comes back to of stuff that had already been subject to analysis and Attock customer expectation What do what do you see? And I believe that the context and R is on the cusp of a massive change. and the innovation strategies cloud in a cloud and and and data great job and great to We're going to be talking about the five reasons that you may not think about More change the next five years in the past twenty five years.

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Jonathan Ballon, Intel | AWS re:Invent 2018


 

>> Live from Las Vegas, it's theCUBE, covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their Ecosystem partners. >> Oh welcome back, to theCUBE. Continuing coverage here from AWS re:Invent, as we start to wind down our coverage here on the second day. We'll be here tomorrow as well, live on theCUBE, bringing you interviews from Hall D at the Sands Expo. Along with Justin Warren, I'm John Walls, and we're joined by Jonathan Ballon, who's the Vice President of the internet of things at Intel. Jonathan, thank you for being with us today. Good to see you, >> Thanks for having me guys. >> All right, interesting announcement today, and last year it was all about DeepLens. This year it's about DeepRacer. Tell us about that. >> What we're really trying to do is make AI accessible to developers and democratize various AI tools. Last year it was about computer vision. The DeepLens camera was a way for developers to very inexpensively get a hold of a camera, the first camera that was a deep-learning enabled, cloud connected camera, so that they could start experimenting and see what they could do with that type of device. This year we took the camera and we put it in a car, and we thought what could they do if we add mobility to the equation, and specifically, wanted to introduce a relatively obscure form of AI called reinforcement learning. Historically this has been an area of AI that hasn't really been accessible to most developers, because they haven't had the compute resources at their disposal, or the scale to do it. And so now, what we've done is we've built a car, and a set of tools that help the car run. >> And it's a little miniature car, right? I mean it's a scale. >> It's 1/118th scale, it's an RC car. It's four-wheel drive, four-wheel steering. It's got GPS, it's got two batteries. One that runs the car itself, one that runs the compute platform and the camera. It's got expansion capabilities. We've got plans for next year of how we can turbo-charge the car. >> I love it. >> Right now it's baby steps, so to speak, and basically giving the developer the chance to write a reinforcement learning model, an algorithm that helps them to determine what is the optimum way that this car can move around a track, but you're not telling the car what the optimum way is, you're letting the car figure it out on their own. And that's really the key to reinforcement learning is you don't need a large dataset to begin with, it's pre-trained. You're actually letting, in this case, a device figure it out for themselves, and this becomes very powerful as a tool, when you think about it being applied to various industries, or various use-cases, where we don't know the answer today, but we can allow vast amounts of computing resources to run a reinforcement model over and over, perhaps millions of times, until they find the optimum solution. >> So how do you, I mean that's a lot of input right? That's a lot, that's a crazy number of variables. So, how do you do that? So, how do you, like in this case, provide a car with all the multiple variables that will come into play. How fast it goes, and which direction it goes, and all that, and on different axes and all those things, to make these own determinations, and how will that then translate to a real specific case in the workplace? >> Well, I mean the obvious parallel is of course autonomous driving. AWS had Formula One on stage today during Andy Jassy's keynote, that's also an Intel customer, and what Formula One does is they have the fastest cars in the world, and they have over 120 sensors on that car that are bringing in over a million pieces of data per second. Being able to process that vast amount of data that quickly, which includes a variety of data, like it's not just, it's also audio data, it's visual data, and being able to use that to inform decisions in close to real time, requires very powerful compute resources, and those resources exist both in the cloud as well as close to the source of the data itself at the edge, in the physical environment. >> So, tell us a bit about the software that's involved here, 'cause people think of Intel, you know that some people don't know about the software heritage that Intel has. It's not just about, the Intel inside isn't just the hardware chips that's there, there's a lot of software that goes into this. So, what's the Intel angle here on the software that powers this kind of distributed learning. >> Absolutely, software is a very important part of any AI architecture, and for us we've a tremendous amount of investment. It's almost perhaps, equal investment in software as we do in hardware. In the case of what we announced today with DeepRacer and AWS, there's some toolkits that allow developers to better harness the compute resources on the car itself. Two things specifically, one is we have a tool called, RL Coach or Reinforcement Learning Coach, that is integrated into SageMaker, AWS' machine learning toolkit, that allows them to access better performance in the cloud of that data that's coming into the, off their model and into their cloud. And then we also have a toolkit called OpenVINO. It's not about drinking wine. >> Oh darn. >> Alright. >> Open means it's an opensource contribution that we made to the industry. Vino, V-I-N-O is Visual Inference and Neural Network Optimization, and this is a powerful tool, because so much of AI is about harnessing compute resources efficiently, and as more and more of the data that we bring into our compute environments is actually taking place in the physical world, it's really important to be able to do that in a cost-effective and power-efficient way. OpenVINO allows developers to actually isolate individual cores or an integrated GPU on a CPU without knowing anything about hardware architecture, and it allows them then to apply different applications, or different algorithms, or inference workloads very efficiently onto that compute architecture, but it's abstracted away from any knowledge of that. So, it's really designed for an application developer, who maybe is working with a data scientist that's built a neural network in a framework like TensorFlow, or Onyx, or Pytorch, any tool that they're already comfortable with, abstract away from the silicon and optimize their model onto this hardware platform, so it performs at orders of magnitude better performance then what you would get from a more traditional GPU approach. >> Yeah, and that kind of decision making about understanding chip architectures to be able to optimize how that works, that's some deep magic really. The amount of understanding that you would need to have to do that as a human is enormous, but as a developer, I don't know anything about chip architectures, so it sounds like the, and it's a thing that we've been hearing over the last couple of days, is these tools allow developers to have essentially superpowers, so you become an augmented intelligence yourself. Rather than just giving everything to an artificial intelligence, these tools actually augment the human intelligence and allow you to do things that you wouldn't otherwise be able to do. >> And that's I think the key to getting mass market adoption of some of these AI implementations. So, for the last four or five years since ImageNet solved the image recognition problem, and now we have greater accuracy from computer models then we do from our own human eyes, really AI was limited to academia, or large IT tech companies, or proof-of-concepts. It didn't really scale into these production environments, but what we've seen over the couple of years is really a democratization of AI by companies like AWS and Intel that are making tools available to developers, so they don't need to know how to code in Python to optimize a compute module, or they don't need to, in many cases, understand the fundamental underlying architectures. They can focus on whatever business problem they're tryin' to solve, or whatever AI use-case it is that they're working on. >> I know you talked about DeepLens last year, and now we've got DeepRacer this year, and you've got the contest going on throughout this coming year with DeepRacer, and we're going to have a big race at the AWS re:Invent 2019. So what's next? I mean, or what are you thinking about conceptually to, I guess build on what you've already started there? >> Well, I can't reveal what next years, >> Well that I understand >> Project will be. >> But generally speaking. >> But what I can tell you, what I can tell you is what's available today in these DeepRacer cars is a level playing field. Everyone's getting the same car and they have essentially the same tool sets, but I've got a couple of pro-tips for your viewers if they want to win some of these AWS Summits that are going to be around the world in 2019. Two pro-tips, one is they can leverage the OpenVINO toolkit to get much higher inference performance from what's already on that car. So, I encourage them to work with OpenVINO. It's integrated into SageMaker, so that they have easy access to it if they're an AWS developer, but also we're going to allow an expansion of, almost an accelerator of the car itself, by being able to plug in an Intel Neural Compute Stick. We just released the second version of this stick. It's a USB form factor. It's got a Movidius Myriad X Vision processing unit inside. This years version is eight times more powerful than last years version, and when they plug it into the car, all of that inference workload, all of those images, and information that's coming off those sensors will be put onto the VPU, allowing all the CPU, and GPU resources to be used for other activities. It's going to allow that car to go at turbo speed. >> To really cook. >> Yeah. (laughing) >> Alright, so now you know, you have no excuse, right? I mean Jonathan has shared the secret sauce, although I still think when you said OpenVINO you got Justin really excited. >> It is vino time. >> It is five o'clock actually. >> Alright, thank you for being with us. >> Thanks for having me guys. >> And good luck with DeepRacer for the coming year. >> Thank you. >> It looks like a really, really fun project. We're back with more, here at AWS re:Invent on theCUBE, live in Las Vegas. (rhythmic digital music)

Published Date : Nov 29 2018

SUMMARY :

Brought to you by Amazon Web Services, Intel, Good to see you, and last year it was all about DeepLens. that hasn't really been accessible to most developers, And it's a little miniature car, right? One that runs the car itself, And that's really the key to reinforcement learning to a real specific case in the workplace? and being able to use that to inform decisions It's not just about, the Intel inside that allows them to access better performance in the cloud and as more and more of the data that we bring Yeah, and that kind of decision making about And that's I think the key to getting mass market adoption I mean, or what are you thinking about conceptually to, so that they have easy access to it I mean Jonathan has shared the secret sauce, on theCUBE, live in Las Vegas.

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Jonathan Weinert, Bosch North America | InterBike 2018


 

(techno music) >> Hey, welcome back everybody, Jeff Frick here with theCUBE. We're in Reno, Nevada at the Reno Convention Center. It's InterBike 2018, I think it's like 20,000 people, haven't got the official count yet, but this is an amazing show, it's all about bicycles. We came because we want to learn more about eBikes, and really, this kind of last mile thing that's goin' on, mobility, and right at the center of the eBike revolution is a company that's been around forever, and that's Bosch, and we're happy to have Jonathan Weinert. He's a sales and marketing manager for the Bosch eBikes. Jonathan, great to see you. >> Great to see you, Jeff. >> So, I don't know if everybody knows, you guys power like half of all the eBikes that are out there. You guys are completely in bed with all these manufacturers with really, the industry leading system. >> Thank you, yes, the Bosch eBike system, you'll find it world wide on about 70 different bike brands throughout the world. Here in North America, we're on about 30 different brands, from Trek to Electra to Cannondale. And they power all types of bikes, so commuter bikes, cargo bikes, fat bikes, mountain bikes, any type of bike that you can think of can use the Bosch eBike system to amplify the rider's power and help you go further, higher, farther, less sweat or sweat it out, whatever you want. >> Right, it's like the magic power. >> Exactly, magic carpet ride. >> The main components are you got the drive unit, which is really the heart of the system. >> Yes. >> The battery obviously to provide the power, then the control unit that's up on top of the handlebars, so you can control it. >> Exactly. >> So we were talking before we turned the cameras on, of kind of the history, you guys have been at this for like nine years, I believe you said? >> Exactly, yeah, we invented this system nine years ago, it was a combination of technology from our automotive business. So an electric power steering motor, married with technology from our power tools business, the lithium iron battery pack. And we also had some sensors, torque sensors and electronics and we put these technologies together, and the engineers back then, what they wanted to do is create something to make cycling still feel like cycling but help you conquer hills. >> Right. >> And go farther and use the bike more. >> Right, it's pretty interesting cause there's a whole lot of data that's feeding that software and the algorithms to make those feedback loops smooth, make 'em feel like bicycling, so it's really you're riding on software. >> Exactly, you're riding on software and we have three sensors that are capturing your input. Torque sensor from the pedals, how fast you're pedaling, and wheel speed. And those three sensor measurements go into the electronics and tell the motor how much extra oomph to give you. >> Right, but you have to be pedaling right? >> You always have to be pedaling, yeah. >> That's one of the data inputs. >> Exactly, these are all pedal assist eBikes, and they only assist you when you pedal, no throttle, and they can assist you up to 20 miles per hour, or 28 miles per hour for our speed system. >> Right, we saw that last night in the gazelle, they had one of the 28 mile an hour bikes. >> Yeah, which is great for people that have long distance commutes or they want to do these huge adventure rides, so yeah, both are great. >> Now, what about the maintenance for these types of systems I mean it looks like a pretty closed system. >> It is totally closed, yeah. >> It's totally closed. >> Yeah, the maintenance, they last a long time, they're warrantied for two years, but if you have a problem with anything, you take it to the dealer, the dealer takes the component off, sends it to Bosch and gives you a new one. You don't have to open anything or solder anything. >> Right, right. >> Yeah, no. It's automotive grade, sort of service and diagnostics. >> Right, so the other thing we're seeing all over the show floor here again is all about the data. There's so much more data available to the riders. We were just at the Garmin booth and I don't know how many different data sets that they can track, in terms of your pedal pressure. >> Yes. >> Whether you're tipping back and forth, whether you're even, and you guys are actually pulling some of that external data back into your systems, right? For a unified experience for the rider. I think you said, a heart rate sensor for instance? >> Exactly, that's the newest feature that we're showcasing at InterBike today, the Kiox display. Which connects man and machine, or woman and machine. You can wear a heart rate monitor and as you're riding, you can see your heart rate on your device. Which is great if you want to train on an e-mountain bike. Sometimes you want to keep your heart rate in a certain range. Sometimes you want to make sure it doesn't go above a certain limit. >> Right. Yeah, so it's our first step into connectivity. Many more connectivity features will follow. >> Right, so I'm just curious from your perspective on the bike industry, cause you sit in kind of this, cat bird seat, since you deal with so many different kinds of bikes. And I was amazed at how much of the mountain bike adoption of the eBikes is happening here. Have you seen within your dealers, kind of this new opportunity to leverage electronics and a motor to kind of reinvigorate the brands, reinvigorate the models, and reinvigorate, you know, many of the, just a wide range of cool form factors that we're seeing all over the floor? >> Yeah, so nine years ago, Bosch coupled with Haibike. Haibike sort of created this segment of e-mountain biking by putting the motor in a unique way into the bike, and since then this e-mountain bike trend has really taken off, it's huge in Europe. You'll see e-mountain bikes all over the ski resorts there. They're allowing families to e-mountain bike together, to bike together, just like they ski together in the winter. So it's reinvigorating ski resorts and we see ski resorts here in the US, also embracing e-mountain bikes. Mammoth Mountain just allowed class one e-mountain bikes on all their bike park trails. So e-mountain biking is really spreading through this resort and other resorts, North Star, right up the road. >> Right and I wonder on the city side, again, lessons we can learn from Europe, cause it seems like the regulations are, you know, they're always a little bit behind the technology in terms of, you know, how are eBikes treated. Are they a bike, are they a motor vehicle? And I know there's some laws but it still seems a little bit confused and cities aren't quite ready to realize that an eBike is better than a car, in terms of so many things happening in the city. Are you guys involved in that, kind of industry consortium and how do you see that evolving? >> So we've been involved with several other bike companies and PeopleForBikes to create a framework, how to regulate eBikes. And we've divided eBikes into three classes. Class one, two and three, pedal assist, throttle, anyway. Setting up this definition of the three classes of eBikes, we've created this eBike law in California and nine other states throughout the country. So now they know how to regulate eBikes and these three classes and they can limit where each class can go on the roads. And with this regulation, we're seeing the eBike adoption in these states really start to pick up, now that they're easier to regulate. >> Right, well Jonathan, really a cool story and it's been really fun to watch Bosch, especially as you guys have gone from your long history in the auto parts world to this new exciting space. So thanks for taking a few minutes and congrats. >> Oh, my pleasure, Jeff, thank you. >> Alright, he's Jonathan, I'm Jeff, you're watching theCUBE, we're at InterBike in Reno, Nevada. Thanks for watching, see you next time. (techno music)

Published Date : Sep 21 2018

SUMMARY :

We're in Reno, Nevada at the Reno Convention Center. So, I don't know if everybody knows, you guys power and help you go further, higher, farther, The main components are you got the drive unit, so you can control it. and the engineers back then, what they wanted to do that's feeding that software and the algorithms and tell the motor how much extra oomph to give you. and they can assist you up to 20 miles per hour, Right, we saw that last night in the gazelle, or they want to do these huge adventure rides, I mean it looks like a pretty closed system. sends it to Bosch and gives you a new one. Yeah, no. Right, so the other thing we're seeing and you guys are actually pulling Sometimes you want to keep your heart rate in a certain range. Yeah, so it's our first step into connectivity. on the bike industry, cause you sit in kind of this, and we see ski resorts here in the US, cause it seems like the regulations are, you know, and PeopleForBikes to create a framework, and it's been really fun to watch Bosch, Thanks for watching, see you next time.

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Jonathan Donaldson, Google Cloud | Red Hat Summit 2018


 

(upbeat electronic music) >> Narrator: Live from San Francisco, it's The Cube, covering Red Hat Summit 2018. Brought to you by Red Hat. >> Hey, welcome back, everyone. We are here live, The Cube in San Francisco, Moscone West for the Red Hat Summit 2018 exclusive coverage. I'm John Furrier, the cohost of The Cube. I'm here with my cohost, John Troyer, who is the co-founder of Tech Reckoning, an advisory and community development firm. Our next guest is Jonathan Donaldson, Technical Director, Office of the CTO, Google Cloud. Former Cube Alumni. Formerly was Intel, been on before, now at Google Cloud for almost two years. Welcome back, good to see you. >> Good to see you too, it's great to be back. >> So, had a great time last week with the Google Cloud folks at KubeCon in Denmark. Kubernetes, rocking the world. Really, when I hear the word de facto standard and abstraction layers, I start to get, my bells go off, let me look at that. Some interesting stuff. You guys have been part of that from the beginning, with the CNCF, Google, Intel, among others. Really created a movement, congratulations. >> Yeah, thank you. It really comes down to the fact that we've been running containers for almost a dozen years. Four billion a week, we launch and collapse. And we know that at some point, as Docker and containers really started to take over the new way of developing things, that everyone is going to run into that scalability wall that we had run into years and years and years ago. And so Craig and the team at Google, again, I wasn't at Google at this time, but they had a really, let's take what we know from internally here and let's take those patterns and let's put them out there for the world to use, and that became Kubernetes. And so I think that's really the massive growth there, is that people are like, "Wow, you've solved a problem, "but not from a science project. "It's actually from something "that's been running for a decade." >> Internally, that's called bore. That's tools that Google used, that their SRE cyber lab engineers used to massively provision manage. And they're all software engineers, so it's not like they're operators. They're all Google engineers. But I want to take a minute, if you can, to explain. 'Cause you're new to Google Cloud. You're in the industry, you've been around, you helped form the CNCF, which is the Cloud Native Foundation. You know cloud, you know tech. Google's changed a lot, and Google Cloud specifically has a narrative of, they're one big cloud and they have an application called Google stuff and enterprises are different. You've been there now for almost a year or more. >> Jonathan: Little over a year, yeah. >> What's Google Cloud like right now? Break the myths down around Google Cloud. What's the current status? I know personally, a lot of cloud DNA is coming in from the industry. They've been hiring, making some great progress. Take a minute to explain the Google Cloud. >> Yeah, so it's really interesting. So again, it comes back from where you started from. So Google itself started from a scale consumer SAS type of business. And so that, they understood really well. And we still understand, obviously, uptime and scalability really, really well. And I would say if you backtrack several years ago, as the enterprise really started to look at public clouds and Google Cloud itself started to spin up, that was probably not, they probably didn't understand exactly all of the things that an enterprise would need. Really, at that point in time, no one cloud understood any of the enterprise specifically. And so what they did is they started hiring in people like myself and others that are in the group that I'm in. They're former CIOs of large enterprise companies or former VPs of engineering, and really our job in the Office of the CTO for Google Cloud is to help with the product teams, to help them build the products that enterprises need to be able to use the public cloud. And then also work with some of those top enterprise customers to help them adopt those technologies. And so I think now that if you look at Google Cloud, they understand enterprise really, really well, certainly from the product and the technology perspective. And I think it's just going to get better. >> I interviewed Jennifer Lynn, I had a one-on-one with her. I didn't publish it, it was more of a briefing. She runs Product Management, all on security side. >> Jonathan: Yeah, she's fantastic. >> So she's checking the boxes. So the table stakes are set for Google. I know you got to do some basic things to catch up to get in the cloud. But also you have partnerships. Google Next is coming up, The Cube will be there. Red Hat's a partner. Talk about that relationship with Red Hat and partners. So you're very partner-centric with Google Cloud. >> Jonathan: We are. >> And that's important in the enterprise, but so what-- >> Well, there tends to be two main ares that we focus on, from what we consider the right way to do cloud. One of them is open source. So having, which again, aligns perfectly with Red Hat, is putting the technologies that we want customers to use and that we think customers should use in open source. Kubernetes is an example, there's Istio and others that we've put out that are examples of those. A lot of the open source projects that we all take for granted today were started from white papers that we had put out at one point in time, explaining how we did those things. Red Hat, from a partner perspective, I think that that follows along. We think that the way that customers are going to consume these technologies, certainly enterprise customers are, through those partners that they know and trust. And so having a good, flourishing ecosystem of partners that surround Google Cloud is absolutely key to what we do. >> And they love multicloud too. >> They love multicloud. >> Can't go wrong with it. >> And we do too. The idea is that we want customers to come to Google Cloud and stay there because they want to stay there, because they like us for who we are and for what we offer them, not because they're locked into a specific service or technology. And things like Kubernetes, things like containers, being open sourced allows them to take their tool chains all the way from their laptop to their own cloud inside their own data center to any cloud provider they want. And we think hopefully they'll naturally gravitate towards us over time. >> One of the things I like about the cloud is that there's a flywheel, if you will, of expertise. Like I look at Amazon, for instance. They're getting a lot of metadata of the kinds of workloads that are on their cloud, so they can learn from that and turn that into an advantage for them, or not, or for their customers, and how they could do that. That's their business decision. Google has a lot of flywheel action going on. A lot of Android devices connected in the Google system. You have a lot of services that you can bring to bear in the cloud. How are you guys looking at, say, from a security standpoint alone, that would be a very valuable service to have. I can tap into all the security goodness of Google around what spear phishing is out there, things of that nature. So are you guys thinking like that, in terms of services for customers? How does that play out? >> So where we, we're very consistent on what we consider is, privacy is number one for our customers, whether they're consumer customers or whether they're enterprise customers. Where we would use data, you had mentioned a lot of things, but where we would use some data across customer bases are typically for security things, so where we would see some sort of security impact or an attack or something like that that started to impact many customers. And we would then aggregate that information. It's not really customer information. It's just like you said, metadata, themes, or trends. >> John Furrier: You're not monetizing it. >> Yeah, we're not monetizing it, but we're actually using it to protect customers. But when a customer actually uses Google Cloud, that instance is their hermetically sealed environment. In fact, I think we just came out recently with even the transparency aspects of it, where it's almost like the two key type of access, for if our engineers have to help the customer with a troubleshooting ticket, that ticket actually has to be opened. That kind of unlocks one door. The customer has to say, "Yes," that unlocks the other door. And then they can go in there and help the customer do things to solve whatever the problem is. And each one of those is transparently and permanently logged. And then the customer can, at any point in time, go in and see those things. So we are taking customer privacy from an enterprise perspective-- >> And you guys are also a whole building from Google proper, like it's a completely different campus. So that's important to note. >> It is. And a lot of it just chains on from Google proper itself. If you understood just how crazy and fanatical they are about keeping things inside and secret and proprietary. Not proprietary, but not allowing that customer data out, even on the consumer side, it would give a whole-- >> Well, you got to amplify that, I understand. But what I also see, a good side of that, which is there's a lot of resources you're bringing to bear or learnings. >> Yeah, absolutely. >> The SRE concept, for instance, is to me, really powerful, because Google had to build that out themselves. This is now a paradigm, we're seeing a cloud scale here, with the Cloud Native market bringing in all-new capabilities at scale. Horizontally scalable, fully synchronous, microservices architecture. This future is a complete game-changer on functionality at the different scale points. So there's no longer the operator's room, provisioning storage here. >> And this is what we've been doing for years and years and years. That's how all of Google itself, that's how search and ads and Gmail and everything runs, in containers all orchestrated by Borg, which is our version of Kubernetes. And so we're really just bringing those leanings into the Google Cloud, or learnings into Google Cloud and to our customers. >> Jonathan, machine learning and AI have been the big topic this week on OpenShift. Obviously that's a big strength of Google Cloud as well. Can you drill down on that story, and talk about what Google Cloud is bringing on, and machine learning on OpenShift in general? Give us a little picture of what's running. >> Yeah, so I think they showed some of the service broker stuff. And I think, did they show some of the Kubeflow stuff, which is taking some machine learning and Kubernetes underneath OpenShift. I think those are very, very interesting for people that want to start getting into using AutoML, which is kind of roll-your-own machine learning, or even the voice or vision APIs to enhance their products. And I think that those are going to be keys. Easing the adoption of those, making them really, really easy to consume, is what's going to drive the significant ramp on using those types of technologies. >> One of the key touchpoints here has been the fact that this stuff is real-world and production-ready. The fact that the enterprise architecture now rolling out apps within days or weeks. One of those things that's now real is ML. And even in the opening keynote, they talked about using a little bit of it to optimize the scheduling and what sessions were in which rooms. As you talk to enterprises, it does seem like this stuff is being baked into real enterprise apps today. Can you talk a little bit about that? >> Sure, so I certainly can't give any specific examples, because what I think what you're saying is that a lot of enterprises or a lot of companies are looking at that like, "Oh, this is our new secret sauce." It always used to be like they had some interesting feature before, that a competitor would have to keep up with or catch up with. But I think they're looking at machine learning as a way to enhance that customer experience, so that it's a much more intimate experience. It feels much more tailored to whomever is using their product. And I think that you're seeing a lot of those types of things that people are starting to bake into their products. We've, again, this is one of these things where we've been using machine learning for almost 10 years inside Google. Things like for Gmail, even in the early days, like spam filtering, something just mundane like that. Or we even used it, turned it on in our data centers, 'cause it does a really good job of lowering the PUE, which is the power efficiency in data centers. And those are very mundane things. But we have a lot of experience with that. And we're exposing that through these products. And we're starting to see people, customers gravitate to grab onto those. Instead of having to hard code something that is a one to many kind of thing, I may get it right or I may have to tweak it over time, but I'm still kind of generalizing what the use cases are that my customers want to see, once they turn on machine learning inside their applications, it feels much more tailored to the customer's use cases. >> Machine learning as a service seems to be a big hot button that's coming out. How are you guys looking at the technical direction from the cloud within the enterprise? 'Cause you have three classes of enterprise. You have the early adopters, the power, front, cutting-edge. Then you have the fast followers, then you have everybody else. The everybody else and fast followers, they know about Kubernetes, some might not even, "What is Kubernetes?" So you have kind of-- >> Jonathan: "What containers?" >> A level of progress where people are. How are you guys looking at addressing those three areas, because you could blow them away with TensorFlow as a service. "Whoa, wowee, I'm just trying to get my storage LUNs "moving to a cloud operation system." There's different parts of this journey. Is there a technical direction that addresses these? What are you guys doing? >> So typically we'll work with those customers to help them chart the path through all those things, and making it easy for them to use and consume. Machine learning is still, unless you are a stats major or you're a math major, a lot of the algorithms and understanding linear algebra and things like that are still very complex topics. But then again, so is networking and BGP and things like OSPF back a few years ago. So technology always evolves, and the thing that you can do is you can just help pull people along the continuum there, by making it easy for them to use and to provide a lot of education. And so we work with customers on all ends of the spectrum. Even if it's just like, "How do I modernize my applications, "or how do I even just put them into the cloud?" We have teams that can help do that or can educate on that. If there are customers that are like, "I really want to go do something special "with maybe refactoring my applications. "I really want to get the Cloud Native experience." We help with that. And those customers that say, "I really want to find out this machine learning thing. "How can I actually make that an impactful portion of my company's portfolio?" We can certainly help with that. And there's no one, and typically you'll find in any large enterprise, because there'll be some people on each one of those camps. >> Yeah, and they'll also want to put their toe in the water here and there. The question I have for you guys is you got a lot of goodness going on. You're not trying to match Amazon speed for speed, feature for feature, you guys are picking your shots. That is core to Google, that's clear. Is there a use case or a set of building blocks that are highly adopted with you guys now, in that as Google gets out there and gets some penetration in the enterprise, what's the use, what are the key things you see with successes for you guys, out of the gate? Is there a basic building? Amazon's got EC2 and S3. What are you guys seeing as the core building blocks of Google Cloud, from a product standpoint, that's getting the most traction today? >> So I think we're seeing the same types of building blocks that the other cloud providers are, I think. Some of the differences is we look at security differently, because of, again, where we grew up. We do things like live migration of virtual machines, if you're using virtual machines, because we've had to do that internally. So I think there are some differences on just even some of the basic block and tackling type of things. But I do think that if you look at just moving to the cloud, in and of itself is not enough. That's a stepping stone. We truly believe that artificial intelligence and machine learning, Cloud Native style of applications, containers, things like service meshes, those things that reduce the operational burdens and improve the rate of new feature introduction, as well as the machine learning things, I think that that's what people tend to come to Google for. And we think that that's a lot of what people are going to stay with us for. >> I overheard a quote I want to get your reaction to. I wrote it down, it says, "I need to get away from VPNs and firewalls. "I need user and application layer security "with un-phishable access, otherwise I'm never safe." So this is kind of a user perspective or customer perspective. Also with cloud there's no perimeters, so you got phishing problems. Spear phishing's one big problem. Security, you mentioned that. And then another quote I had was, "Kubernetes is about running frameworks, "and it's about changing the way "applications are going to be built over time." That's where, I think, SRE and Istio is very interesting, and Kubeflow. This is a modern architecture for-- >> There's even KubeVirt out there, where you can run a VM inside a container, which is actually what we do internally too. So there's a lot of different ways to slice and dice. >> Yeah, how relevant is that, those concepts? Because are you hearing that as well on the customers? 'Cause that's pain point, but also the new modern software development's future way to do things. So there's pain point, I need some aspirin for that. And then I need some growth with the new applications being built and hiring talent. Is that consistent with how you guys see it? >> So which one should I tackle? So you're talking about. >> John Furrier: VPN, do the VPNs first. >> The VPNs first, okay. >> John Furrier: That's my favorite one. >> So one of the most, kind of to give you the backstory, so one of the most interesting things when I came to Google, having come from other large enterprise vendors before this, was there's no VPNs. We don't even have it on our laptop. They have this thing called BeyondCorp, which is essentially now productized as the Identity-Aware Proxy. Which is, it actually takes, we trust no one or nothing with anything. It's not the walled garden style of approach of firewall-type VPN security. What we do is, based upon the resource you're going to request access for, and are you on a trusted machine? So on one that corporate has given you? And do you have two-factor authentication that corporate, not only your, so what you have and what you know. And so they take all of those things into awareness. Is this the laptop that's registered to you? Do you have your two-factor authentication? Have you authenticated to it and it's a trusted platform? Boom, then I can gain access to the resources. But they will also look for things like if all of a sudden you were sitting here and I'm in San Francisco, but something from some country in Asia pops up with my credentials on it, they're going to slam the door shut, going, "There's no way that you can be in two places at one time." And so that's what the Identity-Aware Proxy or BeyondCorp does, kind of in a nutshell. And so we use that everywhere, internally, externally. And so that's one of the ways that we do security differently is without VPNs. And that's actually in front of a lot of the GCP technologies today, that you can actually leverage that. So I would say we take-- >> Just rethinking security. >> It's rethinking security, again, based upon a long history. And not only that, but what we use internally, from our corporate perspective. And now to get to the second question, yeah. >> Istio, Kubeflow, is more of the way software gets run. One quote from one of the ex-Googlers who left Google then went out to another company, she goes, she was blown away, "This is the way you people ship software?" Like she was a fish out of water. She was like, "Oh my god, where's Borg?" "We do Waterfall." So there's a new approach that opens doors between these, and people expect. That's this notion of Kubeflow and orchestration. So that's kind of a modern, it requires training and commitment. That's the upside. Fix the aspirin, so Identity Proxy, cool. Future of software development architecture. >> I think one of the strong things that you're going to see in software development is I think the days of people running it differently in development, and then sandbox and testing, QA, and then in prod, are over. They want to basically have that same experience, no matter where they are. They want to not have to do the crossing your fingers if it, remember, now it gets reddited or you got slash-dotted way back in the past and things would collapse. Those days of people being able to put up with those types of issues are over. And so I think that you're going to continue to see the development and the style of microservices, containers, orchestrated by something that can do auto scaling and healing, like Kubernetes. You're going to see them then start to use that base layer to add new capabilities on top, which is where we see Kubeflow, which is like, hey, how can I go put scalable machine learning on top of containers and on top of Kubernetes? And you even see, like I said, you see people saying, "Well, I don't really want to run "two different data planes and do the inception model. "If I can lay down a base layer "of Kubernetes and containers, then I can run "bare metal workloads against the bare metal. "If I need to launch a virtual machine, "I'll just launch that inside the container." And that's what KubeVirt's doing. So we're seeing a lot of this very interesting stuff pop. >> John Furrier: Yeah, creativity. >> Creativity. >> Great, talk about your role in the Office of the CTO. I know we got a couple of minutes left. I want to get out there, what is the role of the CTO? Bryan Stevens, formerly a Red Hat executive. >> Yeah, Bryan's our CTO. He used to run a big chunk of the engineering for Google Cloud, absolutely. >> And so what is the office's charter? You mentioned some CIOs, former CIOs are in there. Is it the think tank? Is it the command and control ivory tower? What's the role of the office? >> So I think a couple of years ago, Diane Greene and Bryan Stevens and other executives decided if we want to really understand what the enterprise needs from us, from a cloud perspective, we really need to have some people that have walked in those shoes, and they can't just be Diane or can't just be Bryan, who also had a big breadth of experience there. But two people can't do that for every customer for every product. And so they instituted the Office of the CTO. They tapped Will Grannis, again, had been in Boeing before, been in the military, and so tapped him to build this thing. And they went and they looked for people that had experience. Former VPs of Engineering, former CIOs. We have people from GE Oil and Gas, we have people from Boeing, we have people from Pixar. You name it, across each of the different verticals. Healthcare, we have those in the Office of the CTO. And about, probably, I think 25 to 30 of us now. I can't remember the exact numbers. And really, what our day to day life is like is working significantly with the product managers and the engineering teams to help facilitate more and more enterprise-focused engineering into the products. And then working with enterprise customers, kind of the big enterprise customers that we want to see successful, and helping drive their success as they consume Google Cloud. So being the conduit, directly into engineering. >> So in market with customers, big, known customers, getting requirements, helping facilitate product management function as well. >> Yeah, and from an engineering perspective. So we actually sit in the engineering organization. >> John Furrier: Making sure you're making the good bets. >> Jonathan: Yes, exactly. >> Great, well thanks for coming on The Cube. Thanks for sharing the insight. >> Jonathan: Thanks for having me again. >> Great to have you on, great insight, again. Google, always great technology, great enterprise mojo going on right now. Of course, The Cube will be at Google Next this July, so we'll be having live coverage from Google Next here in San Francisco at that time. Thanks for coming on, Jonathan. Really appreciate it, looking forward to more coverage. Stay with us for more of day three, as we start to wrap up our live coverage of Red Hat Summit 2018. We'll be back after this short break. (upbeat electronic music)

Published Date : May 10 2018

SUMMARY :

Brought to you by Red Hat. Technical Director, Office of the CTO, Google Cloud. You guys have been part of that from the beginning, And so Craig and the team at Google, But I want to take a minute, if you can, to explain. is coming in from the industry. And so I think now that if you look at Google Cloud, I interviewed Jennifer Lynn, I had a one-on-one with her. So she's checking the boxes. is putting the technologies that we want customers to use The idea is that we want customers to come to Google Cloud You have a lot of services that you can that started to impact many customers. that ticket actually has to be opened. And you guys are also a whole building from Google proper, And a lot of it just chains on from Google proper itself. Well, you got to amplify that, I understand. The SRE concept, for instance, is to me, really powerful, and to our customers. have been the big topic this week on OpenShift. And I think that those are going to be keys. And even in the opening keynote, And I think that you're seeing So you have kind of-- How are you guys looking at addressing those three areas, and the thing that you can do is you can just help that are highly adopted with you guys now, Some of the differences is we look at security differently, "and it's about changing the way where you can run a VM inside a container, Is that consistent with how you guys see it? So which one should I tackle? So one of the most, kind of to give you the backstory, And now to get to the second question, yeah. "This is the way you people ship software?" Those days of people being able to put up with I want to get out there, what is the role of the CTO? Yeah, Bryan's our CTO. Is it the think tank? and the engineering teams to help facilitate more and more So in market with customers, big, known customers, So we actually sit in the engineering organization. Thanks for sharing the insight. Great to have you on, great insight, again.

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Jonathan Nguyen-Duy, Fortinet | CUBE Conversations Jan 2018


 

(bright orchestral music) >> John: Hello there and welcome to this special cube conversation, I'm John Furrier, here in theCUBE's Palo Alto studio. We're here with Jonathan Nguyen, who's with, formerly Verizon, now with Fortinet. What's your title? >> Jonathan: Vice President of Strategy. >> John: Vice President of Strategy, but you're really, more of a security guru. You, notably, were the author of the Verizon data breach investigative report. Great report >> Jonathan: Thank you. >> John: It really has been the industry standard. Congratulations, great to have you here. >> Jonathan: Thanks, it was a great 16 years at Verizon in the security business, ran that data breach investigations team. So yeah, that was a great honor in my career. >> John: So you call it "strategy" because they don't want you to word cyber security in your title on LinkedIn in case they spearfish you. Is that right? (laughs) >> Jonathan: Yeah, having started my career as a US Foreign Service Officer, as a victim of the OPM data breach, everything about me is out there. I love in the perfect universe about how do you defend your identity when everything about you has been compromised to begin with. >> John: So many stories I had a Cube guest talk about LinkedIn and the tactics involved in spearfishing and the efforts that people go in to attack that critical resource that's inside a perimeter. This is a big problem. This is the problem with cyber warfare and security and crime. >> Jonathan: Yes. >> John: Talk about that dynamic, because this is, I mean, we always talk about the cloud changes, the perimeter, but of course, more than ever this is really critical. >> Jonathan: So, fundamentally as we begin going into digital transformation and notions about where data is today and the nature of computing, so everything has changed and the notion of a traditional perimeter has changed as well. So I'm going to borrow a great analogy from my friend Ed Amoroso and he said Look, let's pretend that this is your traditional enterprise network and all of your assets are in there, and we all agreed that that perimeter firewall is being probed every day by nation-state actors, organized criminal syndicates, hacktivists, anybody. Everyone's probing that environment. It's also dissolving because you've got staffers inside there using shadow IT, so they're opening up that firewall as well. Then, you've got applications and portals that need to be accessed by your stakeholders, your vendors, your customers. And so that traditional wall is gradually eroding, but yet that's where all of our data is, right? And against this environment you've got this group, this unstoppable force, as Ed calls it, these nation-state actors, these organize crime, these hacktivist groups, all highly sophisticated, and we all agree, that with time and effort, they can all penetrate that traditional perimeter. We know that because that's why we hire pin testers and red-teamers to demonstrate how to get into that network and how to protect that. So, if that's the case that we have this force, and they're going to break in eventually, why are we still spending all of our time and effort to defend this traditional perimeter that's highly vulnerable? Well the answer is, of course, that we need to distribute these work loads, into multiple clouds and into multi-hybrid cloud solutions. The challenge has been, well how do you do that with enough control and visibility and detection as you would have in a traditional perimeter, because a lot of folks just simply don't trust that type of deployment. >> John: That's the state of the art, that's the state of the art problem. How to deal with the complexity of IT as with digital transformation as it becomes so complicated and so important at the same time, yet cloud is also on the horizon and it's here. We see the results with Amazon Web Services. We see what Azur's doing and Google, etc., etc. And some companies are building their own cloud, so you have this new model, with cloud computing, data-driven applications, and it's complex, but does that change the security paradigm? How does the complexity play into it? >> Jonathan: Absolutely, so complexity has always been the enemy of security and at Fortinet, what we essentially do is that we help companies understand and manage complexities to manage risk. So complexity is only going to increase, so digital transformation, the widespread adoption of digital technologies to enable exponential and explosive productivity growth, right? Societal-level changes, right? >> John: Right. >> Jonathan: Also massive expand the inter connective nature of our society. More and more introductions. Accelerated cycles across the board. Greater levels of complexity. The challenge is going to be, not about whether you're moving into the cloud. Everyone is going to move into the cloud, that is the basis of computing moving next. So in the Australian government, the US government, all the agencies have a cloud-first migration initiative. It's not about whether. It's not about, it's really about when, so how do you move forward with moving your computing, your workload into the cloud? In many ways, it goes back to fundamentals about risk management. It's about understanding your users and your systems, the criticality, the applications you're associated with, and understanding what can you move into the cloud and what do you keep on prim in a private cloud as it were. >> John: I want to ask you more about global, more about cyber security, but first let's take a step back and set the table. What is the wholistic and the general trend in cyber security today. I mean, what is the, what's going on in the landscape and what are the core problems people are optimizing for? >> Jonathan: Sure. So, across my 20-odd years in cyber, what we've seen consistently has been the acceleration of the volume, the complexity, and the variety of cyber threats. 10 years ago, 2007 or so, there were about 500 threat factors. Today we're north of 5,000. Back in that point, there were maybe 200 vendors, today we're north of 5,000 vendors. There was less than $1 billion of cyber security spent. Today we're north of $80 billion of spend and yet the same challenges pervade. And what's happening now, they're only becoming more accelerated, so in the threat environment, the criminal environment, the nation-state threat actors, they're all becoming more sophisticated. They're all sharing information. They're sharing TTP and they're sharing in a very highly effective marketplace. The dark web cyber crime marketplace is an effective mechanism on sharing information, on matching threat actors to targets. So the frequency, the variety, the intelligence of attacks, automated ransomware attacks, is only going to grow. Across the board, all of us on this side of the fence, our challenge is going to be, how do we effectively address security at speed and scale. And that's the key because you can effect security very well in very discrete systems, networks, facilities, but how do you do it from the IoT Edge, from the home area network, the vehicle area network, the personal area network, to the enterprise network, then to a hybrid cloud. A highly distributed ecosystem and how do you have visibility and scale across that when the interval of detection between the detonation of malware to the point of irrecoverable damage, is in seconds. >> John: So tons of attack vectors, but also I would add to complicate the situation further is the surface area. You mentioned IoT. >> Jonathan: Yeah. >> John: We've seen examples of IoT increasing, more avenues in. >> Jonathan: Yeah. >> John: Okay, so you've got more surface area, more attack vectors with technology. Malware is one. We've seen that and ransomware certainly number one. But it's not just financial gain, it's also, there's terrorism involved. >> Jonathan: Absolutely. >> John: So, it's not just financial services, get the cash and embarrass a company. It's, I want to take down that power plant. >> Jonathan: Sure. >> John: So, is there a common thread, because you can, I mean, every vertical is going to have their own rendering issues, have their own kind of situation contextually. But is there a common thread across the industry that cyber security is run, is there a baseline that you guys are attacking and that problems are being solved on? Can you talk about that? >> Jonathan: Sure. So, at the heart of that is a convergence of operational technologies and information technology. Operational technologies were never designed to be IP enabled. They were air-gapped. Never designed to be integrated and interconnected with information technology systems. The challenge has been, as you said, is that as you go through digital transformation, become more interconnected, how do you understand when a thermostat has gone offline, or a conveyor belt has gone offline, or a furnace is going out of control, how do you understand that the HVAC system for the operating theater, the surgery theater, is operating properly? Now we have this notion of functional safety and you have to marry that with cyber security and so, in many ways, the traditional approaches are still relevant today. Understanding what systems you have, the users that use them, and what's happening in that and to detect those anomalies and mitigate that in a timely fashion. Those themes are still relevant, it's just that they're much, much larger now. >> John: Let's get back to the perimeter erosion issue because... >> Jonathan: Yeah. >> John: One of the things we're seeing on The Cube is digital transformation, it's out there, to kick around the buzzword, it's out there, but it's certainly, it's relevant. People are transforming to a digital business. Peter Burrows had (unintelligible) they talk about this all the time and it's a lot, a lot involves IT, business process, putting data to work, all that good stuff, transforming the business, drive revenue, but security is more coarse. And sometimes it's, we're seeing it being unbundled from IT and reporting directly up to either the board level or C level. So, that being said, how do you solve this? I'm a digital transformation candidate. I'm doing it. I got, my mind's full of security all the time. How do I solve the security problems, cyber security problem? Just prevention, other things? What's the formula? >> Jonathan: Okay, so at the heart of cyber security is risk management. So digital transformation is the use of digital technology to drive exponential productivity gains across the board and it's about data-driven decision making versus intuitive-led human decision making. So, the heart of digital transformation is making sure that the business leaders have the timely information to make decisions in a much more timely fashion. So that you have better business outcomes and better quality of life, safety, if you will. And so the challenge is about how do you actually enable digital transformation and it comes down to trust. And so, again across the pillars of digital transformation and they are first, IoT, these devices that are connected to collect and share information, to make decisions, the sheer volume of data, zetabytes of data that will be generated in a process of these transactions. Then you have ubiquitous access and you're going to have 5G. You have this notion of centralized and distributed computing. How will you enable those decisions to be made across the board? And then, how do you secure all of that? And so, at the heart of this is the ability to have automated, and that's key, automated deep visibility and control across an ecosystem. So you've got to be able to understand, at machine speed, what is happening. >> John: How do I do that? What do I do? Do I buy a box? Do I, is it a mindset? Is it everything? What's the, how do I stop those cyber attacks? >> Jonathan: So, you need a framework of automated devices that are integrated. So a couple of things you're going to need. You're going to need to have the points across this ecosystem where you can detect. So, whether that is a firewall on that IoT Edge or in the Home or there's an internally segmented firewall, across the enterprise network into the hybrid cloud. You're also going to need to have intelligence and by intelligence, I mean you're going to need a partner who has a global infrastructure of telemetry to understand what's happening in real time, in the wild. And once you collect that data, you're going to need to have intelligence analysts, researchers, that can put into context what that data means, because data doesn't become information on its own. You actively have to have someone analyze that. So you have to have a team. At Fortinet, we have hundreds of people who do just that. And once you have the intelligence, you've got to have a way of utilizing it, right? And so, then you've got a way of orchestrating that intelligence into that large framework of integrated devices so you can act. And in order to do that effectively, you have to do that at machine speed and that's what I mean by speed and scale. The big challenge about security is the ability to have deep visibility and control at speed, at machine speed, and at scale from that IoT Edge way across into the cloud. >> John: Scale's interesting, so I want to ask you about the Fortinet. How are you guys at Fortinet solving this problem for customers because you have to, is it, the totality of the offering? Is it some here, technology here and again, you've got 5,000 attack vectors, you mentioned that earlier and you did the defense report at Verizon, your former job. So you kind of know the landscape. What does Fortinet do? What do you guys, how do you solve that problem? >> Jonathan: So, from day one, every CISO has been trying to build the fabric. We didn't call it that, but from my first packet-filtering firewall to my first stateful firewall, then I deployed intrusion-detection systems and when all that generated far more lists than I can manage, I deployed an SEM. And then I went to intrusion prevention and I had to look at logs, and so I went to an SIEM. And when that didn't work, I deployed Sandbox, which was called dynamic malware inspection back in the day. And then when that didn't work, I had to go to analytics. And then I had to bring in third-party technology, third-party intelligence feeds and all along, I hoped I was able to make those firewalls, those defense sensors, that platform integrated with intelligence, work somehow to detect the attack and mitigate that in real time. Now, what we essentially do in the Fortinet security fabric is we reduce that complexity. We bring that level of automa-... >> John: And by the way, your ad hoc, you're reacting in that mode. You're just, ya know, I got to do this. I got to add that to it. So it's almost like sprawling, software sprawl. You're just throwing solutions at the wall. >> Jonathan: Right, and a lot of that time, no one knows if the devices are properly configured. No one has actually done the third party technology integration. No one has actually met the requirements that we'd employ three years ago through requirements today and the requirements three years from now. And so, that's a huge level of complexity and I think at the heart of that complexity, that's reflected in the fact that we're missing the basic elements in security across today. The reason the large data attacks and the data breaches didn't come because of advanced malware. They didn't happen of nation-state threats. These were known vulnerabilities. The patches existed. They weren't patched. In my experience, 80% of all the attacks could be mitigated through simple to intermediate controls. >> John: Deploying the patches. Doing the job. >> Jonathan: Complexity. Patch management sounds easy. It's hard. Some applications, there is no patch available. You can't take things offline. You have to have virtual patches or unintended consequences. And there are a lot of things that don't happen. There's the handoff between the IT team and the security team and it adds complexity. And if you think about this, if our current teams are so overwhelmed that they cannot mitigate known attacks, exploits against known vulnerabilities, how are they going to be able to grapple with the complexity of managing zetabytes of data with an ecosystem that spans around the world, that operates in milliseconds, where now it's not just digital issues. It's health, safety, physical security. How can we trust that a connected vehicle is secure or not. >> John: Talk about the dynamic between machines and humans because you mentioned patches, and this is, you can argue that it's a human mistake, but also you mentioned automation earlier. The balance between automation, using machines and humans, because prevention and risk management seem to be the axis of the practice. It used to be all prevention, now it's a lot more risk management. There's still a human component in here. >> Jonathan: Yeah. >> John: How are you guys talking about that and how is that rendering itself as a value proposition for customers? >> Jonathan: So, humans are the essence, both the challenge, in so many cases we have faulty passwords, we have bad hygiene. That's why security's awareness training is so critical, right? Because humans are part of the problem, on one end. On the other end, within the sock, humans are grappling with huge amounts of data and trying to understand what is malicious, what needs to be mitigated, and then prioritizing that. For us, it's about helping, the complexity, reducing the complexity of that challenge and helping automate those areas that should be automated so the humans can act better and faster, as it were. >> John: We're here with Jonathan Nguyen with Fortinet. I want to ask you about the ecosystem you mentioned that early and also the role of CISO, the Chief Information Security Officer and CIO, essentially the executives in charge of security. Say you have executives in charge of the risk management, don't get hacked, don't get breached, and also the ecosystem partners. So, you have a very interesting environment right not where people are sharing information, you mentioned that earlier as well. So you got the ecosystem of sharing and you have executives in charge of running their businesses effectively and not have security breaches happen. What's happening in... What are they working on? What are the key things that chief security officers are working on with CIOs? What specifics are on their plate and what's the ecosystem doing around that too? >> Jonathan: Sure. So digital transformation dominates all discussions today. And every CISO has two masters. They have a productivity master, which is always the business-side of the house and they have a security master, which is ensuring that reasonable level of security is, in the advent, managing risk, right? And that's the challenge, how do you balance that? So, across the board, CISOs are being challenged to make sure that the applications, the digital transformation initiatives are actually occurring and at the same time, in the advent of a data breach, understanding the risk and managing the risk. How do you tell your board of directors, your governments that you're not only compliant, but that you have handled risk to a reasonable level of assurance? And that means, in my opinion, across my experience, you've got to be able to demonstrate a couple of things: one, you have identified and adopted, with third-party implementation and attestation, a recommended best practices and controls. Second, you've implemented and used best-in-class products and technologies like Fortinet. Products that have gone through clearances, gone through common criteria, where things are properly certified and that's how you demonstrate a reasonable level. It's really about risk management, understanding what level of risk you will tolerate, what level of risk you will mitigate, and what level of risk you're going to transfer. And I think that's the discussion at the board level today. >> John: So more, make people feel comfortable, but also have a partner that can actually do the heavy lifting on new things. 'Cause there's always going to be a new attack vector out there. >> Jonathan: Absolutely. So I think the key to it is understanding what you're really good at and so then one of the questions I ask ever CISO is that when you look at technology, what is it that your organization is really good at? Is it using technology? Is it operationalizing that experience? Or is it really about ensuring that the firewall is integrated with your sim and that the sim works and trying to create your own threat intelligence. And I think that one of the things we do better than anybody else is that we reduce the level of complexity of that, allowing our clients to really focus on providing security, using the best-in-class technologies to do that. >> John: Jonathan, a final question. In 2018, what's your outlook for the year for CISOs and companies with cyber right now? >> Jonathan: I think it's going to be an exciting time. I think, is there going to be a focus back on basics? Because before we take this next evolutionary leap, in terms of cyber and computing and the digital nature of our society, we've got to get the basics done right. And I think the way Fortinet's going, our ability to use the fabric, to help manage risk, and reduce risk, is going to be the path forward. >> John: This is The Cube, bringing you commentary and coverage of cyber security of course, here in our Palo Alto studio. I'm John Furrier, thanks for watching. (orchestral music) The Cube.

Published Date : Jan 24 2018

SUMMARY :

John: Hello there and welcome to this special of the Verizon data breach investigative report. John: It really has been the industry standard. in the security business, John: So you call it "strategy" because they don't I love in the perfect universe about how do you and the efforts that people go in to attack the perimeter, but of course, more than ever and portals that need to be accessed by your stakeholders, does that change the security paradigm? the enemy of security and at Fortinet, So in the Australian government, the US government, What is the wholistic and the general And that's the key because you can effect security to complicate the situation further is the surface area. John: We've seen examples of IoT increasing, John: Okay, so you've got more surface area, John: So, it's not just financial services, get the cash John: So, is there a common thread, because you can, So, at the heart of that is a convergence of operational John: Let's get back to the perimeter erosion issue John: One of the things we're seeing on The Cube is have the timely information to make decisions The big challenge about security is the ability to have John: Scale's interesting, so I want to ask you about the attack and mitigate that in real time. John: And by the way, your ad hoc, you're reacting at the heart of that complexity, that's reflected in the John: Deploying the patches. There's the handoff between the IT team and the John: Talk about the dynamic between Jonathan: So, humans are the essence, both the challenge, that early and also the role of CISO, the Chief And that's the challenge, how do you balance that? also have a partner that can actually do the heavy Or is it really about ensuring that the firewall outlook for the year for CISOs and companies with cyber in terms of cyber and computing and the digital John: This is The Cube, bringing you commentary

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DO NOT MAKE PUBLIC Jonathan Nguyen-Duy, Fortinet | CUBE Conversations


 

(bright music) >> Hello everybody, welcome to this special CUBE Conversation. I'm John Furrier here in theCUBE's Palo Alto studio. We're here with Jonathan Nguyen, who's with, formally Verizon, now with Fortinet. What's your title? >> Vice President of Strategy. >> Vice President of Strategy, but you're really, I would say, more of a security guru. You had, notably, with the author of the Verizon Data Breach Investigative Report. Great report, it really has been interesting. Congratulations, it's great to have you here. >> Thanks, it was great, 16 years at Verizon, in the security business. ran the data breach investigations team, so that was a great honor in my career, yeah. >> John: So, you called strategy, 'cause they didn't want you to use the word cyber security on your title on LinkedIn in case they spearfish you, is that right, no? (laughs) >> Jonathan: You know, having started my career as a US foreign service officer, as a victim of the OPM data breach, everything about me is out there. >> Yeah. (laughs) >> I live in a perfect universe about how do you defend your identity when everything about you's been compromised to begin with? >> Some of these stories, I had a CUBE guest talk about LinkedIn, and attackers involved in spearfishing, and the efforts that people go into to attack that critical resources inside the parameter. This is a big problem. This is the problem with cyber warfare and security, and crime. >> Yes. Talk about that dynamic, 'cause this is, we always talk about the cloud change, the perimeter, of course. >> Sure. >> More than ever, this is really critical. >> Jonathan: Fundamentally, as we begin going into digital transformation and notions about where data is today and the nature of computing, everything has changed, and the notion of a traditional perimeter has changed as well. I'm going to borrow a great analogy from my friend, Ed Amoroso, and he said, "Look, let's pretend "this is your traditional enterprise network, "and all your assets are in there. "And we all agree that that perimeter firewall "is being probed everyday by nation state actors, "organized criminal syndicates, hacktivists, anybody. "Everyone's probing that environment." It's also dissolving because we've got staffers inside there using shadow IT, so they're opening up that firewall as well. Then you've got applications and portals that need to be accessed by your stakeholders, your vendors, your customers. And so that traditional wall is gradually eroding, yet, that's where all of our data is, right? And against this environment, you've got this group, this unstoppable force, as Ed calls it. These nation-state actors, these organized crime, these hacktivist groups, all highly sophisticated. And we all agree, that with time and effort, they can all penetrate that traditional perimeter. We know that because that's why we hire pin testers, and red teamers, to demonstrate how to get into that network and how to protect that. So if that's the case, that we have this force, and they're going to break in eventually, why are we still spending all of our time and effort to defend this traditional perimeter that's highly vulnerable? Well, the answer is, of course, that we need to distribute these workloads, into multiple clouds, into multi hybrid cloud solutions. The challenge has been, well, how do you do that with enough control and visibility and detection as you have with a traditional perimeter, because a lot of folks just simply don't trust that type of deployment. >> That's the state of the, I mean, that's the state of our problem. How to deal with the complexity of IT, with digital transformation, as it becomes so complicated, and so important, at the same time. Yet, cloud is also on the horizon, it's here. We see the results of Amazon Web Services, see what Azure is doing, Google, et cetera, et cetera. And some companies are doing their own cloud. So, you have this new model, cloud computing. Data driven applications. And it's complex, but does that change the security paradigm? How does the complexity play into it? >> Jonathan: Absolutely, so, complexity has always been the enemy of security. And at Fortinet, what we essentially do is that we help companies understand and manage complexity to manage risk. So complexity is only going to increase. So digital transformation, the widespread adoption of digital technology is to enable exponential explosive productivity growth. Societal level changes, right? Also, massively expand the inter-connective nature of our society. More and more connections, accelerated cycles across the board, greater levels of complexity. The challenge is going to be not about whether we're moving to the cloud, everyone is going to move into the cloud, that is the basis of computing moving next. So in the Australian government, the US government, all of the agencies have a cloud-first migration initiative. It's not about whether, it's not about, it's really about when. So how you move forward with moving your computing, your workloads into the cloud? In many ways it goes back to fundamentals about risk management. It's about understanding your users and your systems, the criticality, the applications you're associated with. And understanding what can you move into the cloud, and what do you keep on-prem, in a private cloud, as it were? >> I want to ask you more about global, more about cybersecurity, but first, take a step back and set the table. What is the holistic and the general trend, in cybersecurity today? What's going on in the landscape, and what are the core problems people are optimizing for? >> Sure. >> So, across my 20-odd years in cyber, what we've seen consistently has been the acceleration of the volume, the complexity, and the variety of cyber threats. So, 10 years ago, 2007 or so, there were about 500 threat factors; today, we're north of 5000. Back at that point, there were maybe 200 vendors; today, we're north of 5000 vendors. There was less than a billion dollars of cybersecurity spent; today, we're north of 80 billion dollars spent. And yet, the same challenges pervade. And what's happening now, they're only becoming more accelerated. So in the threat environment, the criminal environment, the nation-state threat actors, they're all becoming more sophisticated. They're all sharing information! (laughs) They're sharing TTP, and they're sharing it on a highly effective marketplace: the dark web cyber crime marketplace is an effective mechanism of sharing information, of matching threat actors to targets. So the frequency, the variety, the intelligence of attacks, automated ransomware attacks, is only going to grow. Across the board, all of us on this side of the fence, our challenge is going to be, how do we effectively address security at speed and scale? And that's the key. Because you can affect security very well, in very discreet systems, networks, facilities. But how do you do it from the IOT edge? From the home area network, the vehicle area network, the personal area network? To the enterprise network, to then, to a hybrid cloud. A highly distributed ecosystem. And how do you have visibility and scale across that, when the interval of detection, between the detonation of malware, to the point of irrecoverable damage, is in seconds. >> So, tons of attack vectors, but, also, I would add, to complicate the situation further is, the service area, you mentioned IOT. We've seen examples of IOT increasing more avenues in. Okay, so you've got more surface area, more attack vectors with technology. Malware, we see that in ransomware, certainly, number one. But it's not just financial gain, there's also this terrorism involved. >> Absolutely. It's not just financial services get the cash, and embarrass the company, it's, I want to take down that power plant. So, is there a common thread? I mean, every vertical is going to have their own, kind of situation, contextually. But is there a common thread across the industries, that cybersecurity, is there a baseline, that you guys are attacking, that problems are being solved? Can you talk about that? >> Sure. >> So, at the heart of that is a convergence of operational technologies and information technology. Operational technologies were never designed to be IP enabled, they were air gapped. Never designed to be integrated and interconnected, with information technology systems. The challenge has been, as you said, is that as you go through digital transformation, become more interconnected, how do you understand when a thermostat has gone offline, or a conveyor belt has gone offline, or a furnace is going out of control? How do you understand that the HVAC system for the operating theater, the surgery theater, is operating properly? Now we have this notion of functional safety, and you have to marry that with cybersecurity. So, in many ways, the traditional approaches are still relevant today. Understanding what systems you have, the users that use them, and what's happening, in that. And detect those anomalies and to mitigate that, in a timely fashion? Those same themes are still relevant. It's just that they're much, much larger now. >> John: Let's get back to the perimeter erosion issue because one of the things that we're seeing on theCUBE is digital transformations out there. And that's, I kicked a lot of buzzwords out there, but certainly, it's relevant. >> Yeah. People are transforming to digital business. Peter Burroughs had research, we keep on top of those all of the time. And it's, a lot involves IT. Business process, putting data to work, all that good stuff, transforming the business, drive revenue. But security is more coarse. And sometimes we're seeing it unbundled from IT, and we're reporting directly to the board level, or CEO level. That being said, how do you solve this? I'm a digital transformation candidate, I'm doing it, and I'm mindful of security all the time. How do I solve the security problem, cyber security problem? Just prevention, other things? What's the formula? >> Okay, so at the heart of cybersecurity is risk management. So digital transformation is the use of digital technologies to drive exponential productivity gains across the board. And it's about data driven decision making, versus intuitive led human decision making. So at the heart of digital transformation is making sure that the business leaders have their timely information to make decisions, in a much more timely fashion, so they have better business outcomes and better quality of life. Safety, if you will. And so the challenge is about, how do you actually enable digital transformation, it comes down to trust. And so, again, across the pillars of digital transformation. And they are, first, IOT. These devices that are connected collect, share information, to make decisions. The sheer volume of data, zettabytes of data, that will be generated in the process of these transactions. Then you have ubiquitous access. And you're going to have five G, you have this notion of centralized and distributed computing. How will you enable those decisions to be made, across the board? And then how do you secure all of that? And so, at the heart of this is the ability to have, automated, that's key, automated deep visibility and control across an ecosystem. So you've got to be able to understand, at machine speed, what is happening. >> John: How do I do that, what do I do? Do I buy a box, is it mindset, is it everything? How do I solve, how do I stop cyber attacks? >> You need a framework of automated devices that are integrated. So, a couple of things you're going to need: you're going to need to have the points, across this ecosystem, where you can detect. And so, whether that is a firewall on that IOT edge, or in the home, or that's an internally segmented firewall, across the enterprise network into the hybrid cloud. You're also going to need to have intelligence, and by intelligence, that means, you're going to need a partner who has a global infrastructure of telemetry, to understand what's happening in real time, in the wild. And once you collect that data, you're going to need to have intelligence analysts, researchers, that can put into context what that data means, because data doesn't come into information on its own, you actively have to have someone to analyze that. So you have to have a team, at Fortinet, we have hundreds of people who do just that. And once you have the intelligence, you've got to have a way of utilizing it, right? And so, then you've got to have a way of orchestrating that intelligence into that large framework of integrated devices, so you can act. And in order to do that, effectively, you have to do that at machine speed. And that's what I mean by speed and scale. The big challenge about security is the ability to have deep visibility, and control, at speed, at machine speed. And at scale, from that IOT edge, way across, into the cloud. >> Scale is interesting, so what I want to ask you about Fortinet, how are you guys, at Fortinet, solving this problem for customers? Because you have to, is it, the totality of the offering, is it, some technology here, and again, you have 5000 attack vectors, you mentioned that earlier, and you did the defense report at Verizon, in your former jobs. You kind of know the landscape. What does Fortinet do, what are you guys, how do you solve that problem? >> So, from day one, every CSO has been trying to build a fabric, we didn't call it that. But from my first packet-filtering firewall, to my first stateful firewall, then I employed intrusion detection systems, and all of that generated far more lists I can manage, and I deployed an SEM. And then I went to intrusion prevention. And I had to look at logs, so I went to an SIEM. And when that didn't work, I deployed sandboxing, which was called dynamic malware inspection, back in the day, and then when that didn't work, I had to go to analytics. And then, I had to bring in third party technology, third party intelligence feats, and all along, I hoped I was able to make those firewalls, and defense sensors, that platform, integrated with intelligence, work somehow to detect the attack, and mitigate that in real time. Now, what we essentially do, in the Fortinet security fabric is, we reduce that complexity. We bring that level of-- >> And by the way. >> John: You're Ed Hoff, you're reacting in that mode, you're just, I got to do this, I got to add that to it. So it's almost like sprawling, software sprawl. You're just throwing solutions at the wall. >> Right, and a lot of that time, no one knows if their vices are properly configured, no one has actually done the third party technology integration. No one has actually met the requirements that were deployed three years ago, there are requirements today, there are requirements three years from now. And so, that's a huge level of complexity, and I think, at the heart of that complexity. That's reflected in the fact that, we're missing the basic elements in security today. The reason, the large data attacks, and the data breaches, didn't come because of advanced malware, they didn't happen off nation-state threats. These were known vulnerabilities, the patches existed, they weren't patched! In my experience, 80% of all the attacks could be mitigated through simple to intermediate controls. >> Deploying the patches, doing the job. >> Complexity. Patch management sounds easy, it's hard. Some applications, there is no patch available. You can't take things offline, you have to have virtual patches, there are unintended consequences. And there are a lot of things that don't happen. There's the handoff between the IT team and the security team, and it adds complexity. And if you think about this, if our current teams are so overwhelmed that they cannot mitigate known attacks, exploits against known vulnerabilities. How are they going to be able to grapple with the complexity of managing zettabytes of data, with an ecosystem that spans around the world, and operates in milliseconds, where, now, it's not just digital issues, it's health, safety, physical security. How can we trust a connected vehicle, is it secure or not? >> Jon, talk about the digital transformation for industries. As we talked earlier about the commonalities of the industries, they all have their own unique use cases, contextually, I mean, oil and gas, financial services, healthcare, EDU, they all have different things. What is the digital transformation objective and agenda and challenges and opportunities for financial services, healthcare, education, and the public sector? >> So, digital transformation has some similar themes, across industry verticals. For financial services, it's about omnichannel customer engagement, it's about owning that customer experience, how will a financial service company be able to reach each connected consumer? Highly personalized way, highly customized services, suited for that customer so that they can interact, at any time, that they desire, on any device, any media they desire, across the entire experience? For when that person first becomes employed, and has a first checking account, to the point that they retire, the notion around digital transformation for financial services. How do we go about, as an FS company, to reach that customer, in an omnidirectional, omnichannel way, and maximize that experience? How do we do that with highly personalized, highly customized service, self-service, if you will, all with security, across massive amounts of data? How do you ensure that that's the challenge? And then you have to do that in a very distributed ecosystem, from the ATM, home, from the vehicle, and as we move into digitally enabled societies, from the connected car, all of those places will have transactions, all of that will have to be the purveyance of financial services companies. So the level of complexity that they're going to have to grapple with is going to be immense. >> John: And the app, too, is basically the teller, 'cause the app is driving everything, too. It brings up, essentially, the argument, not argument, our thesis, your thesis, on the obvious, which is, the perimeter is eroding. It's the app on the phone. (laughs) Okay, healthcare. Healthcare is one of those things that is near and dear to my heart because, I remember back in the days, when I was younger, HIPAA compliance, it created all of these databases. Creating complexity, but also, structured things. So, healthcare is being disrupted, and security is obviously concerned. More ransomware in hospitals, you see, everywhere these days, big, big issue. >> Yeah, so, challenges in healthcare are twofold. On the one hand, their targets are ransomware because that's where money is. They have compliance challenges, but in a very interesting way, based off of the research we've seen, is that healthcare is a lot more kin to the intelligence community than any other. Because it has insider threats. Large amounts, 7 out of 10 healthcare data breaches are the result of insider threat. So, like financial services, and the other verticals in digital transformation, again, it comes to the notion of the connected consumer and the connected citizen. How do you make sure that that person can be touched and served, irrespective of whether they're in the home, or in another healthcare facility, and all of their devices that are IP-enabled are safe and secure, and to monitor that. And to keep that secure, across a large distributed ecosystem, and for a long period of time, as well. >> Education, talk about insider threats probably there, too. Education is a huge vertical with a lot of, sure, students, but also the general EDU market is hot too. >> Jon: And it's incredibly challenging, because the environment ranges from kindergarten, preschool, to high school, to higher levels of education, that are government funded, with classified intelligence, and materials, and research labs. And the educational environment, how do you provide security, confidentiality, and availability, in an ecosystem that was designed for the free flow and access of information, and how do you do that across a highly distributed ecosystem? Again, constant themes of complexity, volumes of data, and personalized and customized services. >> John: And you got to be able to turn those services on fast, and turn them off and on. Okay, finally, my favorite area is the federal, or public sector market, of course, that also includes higher ed, whatnot. But really government and federal. Public sector, seeing govcloud booming. What are some of the challenges with digital transformation in federal? >> So the hard part of federal government is the notion of service to the connected citizen. And that connected citizen now wants to be able to access city hall, their members of Congress, the White House, in a digital way, at any time, on any device, so that they can log their opinion. It is a cacophony of demand from across the board. From state, local, to federal, that every citizen now demands access to services, on any digital media, and, at the same time, for everything from potholes, and snow removal, and trash removal, those are the types of services that are needed. So, government, now, needs to provide services in the digital way, and provide security across that. >> John: In respect to those verticals, especially public sector and education, transparency is critical. You can't hide, the government can't hide. They provide citizens connectivity, and services. There's no more excuses, they have to go faster. This is a big dynamic. >> I think that we all have expectations of what it is to grow up in a digital world. My children have only grown up in a digital world. They expect things to happen at digital speed, at machine speed, they expect a high level of customized services, so that when they go, and interact with a government agency or a vendor, that vendor, that service provider, needs to know his or her preference. And will automate that and deliver those services in an incredible fashion. As I said earlier, when my kids talk about, when they learned about Moses, and heard about Moses coming down from the mountain with tablets, they thought that he was an Apple user. You know, there was no notion of other types of tablets. The connected citizen is a digital citizen, with digital demands and expectations. And our job in cyber is to enable the digital transformation so that all of those things can be delivered, and expectations met. >> Talk about the dynamic between machines and humans, because you mentioned patches, this is, you could argue it's a human mistake. But also, you mentioned automation earlier. Balance between automation, and using machines and humans. Because prevention and risk management seem to be the axis of the practice. It used to be all prevention, now it's a lot more risk management. There's still a human component in here. How are you guys talking about that, and how is that rendering itself, as a value proposition for customers? >> Sure, so it's just, humans are the essence. Both the challenge, in so many cases, we have faulty passwords, we have bad hygiene. That's why security awareness training is so critical, right, because humans are part of the problem, on one end. On the other end, within the sock, humans are grappling with huge amounts of data, and trying to understand what is malicious, what needs to be mitigated, and then prioritizing that. For us, it's about helping reduce the complexity of that challenge, and helping automate those areas that should be automated, so that humans can act better and faster, as it were. >> We have Jonathan Nguyen with Fortinet. I wanted to ask you about the ecosystem, you mentioned that earlier, and also the role of CSOs, chief information security officers, and CIOs, essentially, they're the executives in charge of security. So, you have the executives in charge of the risk management, don't get hacked, don't get breached. And also, the ecosystem partners. So you have a very interesting environment right now where people are sharing information, you mentioned that earlier, as well. So you got the ecosystem of sharing, and you have executives in charge of running their businesses effectively, and not have security breaches happen. What's happening, what are they working on, what are they key things that chief security officers are working on with CIOs, what specifics are on their plate? And what's the ecosystem doing around that, too? >> So digital transformation dominates all discussions today. And every CSO has two masters. They have a productivity master, which is always the business side of the house, and they have a security master. Which is ensuring that reasonable level of security, in the advent, and managing risk, right? And that's the challenge, how do you balance that? So, across the board, CSOs are being challenged to make sure that the applications, those digital transformation initiatives are actually occurring. At the same time, in the advent of a data breach, understanding the risk and managing the risk. How do you tell your board of directors, your governments, that you're not only compliant, but that you have handled risk to a reasonable level of assurance? And that means, in my opinion, across my experience, you've got to be able to demonstrate a couple of things. One, you have identified and adopted, with third party implementation, and attestation, of recommended best practices and controls. Second, you have implemented and used best-in-class products and technology, like Fortinet. Products that have gone through clearances, gone through common criteria, where things are properly certified. And that's how you demonstrate a reasonable level, it's really about risk management. Understanding what level of risk you will tolerate, what level of risk you will mitigate, and what level of risk you're going to transfer. And I think that's the discussion at the board level today. >> So, make people feel comfortable. But also have a partner that can actually do the heavy lifting on new things. 'Cause there's always going to be a new attack vector out there. >> Absolutely, so, I think the key to it is understanding what you're really good at. And so one of the questions that I ask every CSO is that, when you look at technology, what is it that your organization is really good at? Is it using technology, operationalizing that experience? Or is it really about ensuring that that firewall is integrated with your sim, that the sim works in trying to create your own threat intelligence. And I think one of the things that we do better than anybody else is that we reduce the level of complexity, of that allowing our clients to really focus on providing security, using best-in-class technologies to do that. >> John: That's awesome. I want to just kind of go off the board, on a question that's a little bit more societal oriented, but it's mostly here in the US. You're seeing cryptocurrencies booming, blockchain, whatnot, and it is really kind of two vectors there, that conversation, it's attacks and regulation. So the regulatory environment in DC, on the hill, looks at tech companies these days, oh my god, the big bad, Google, Apple, Facebook. And that's kind of today's narrative. But in general, technology can be an innovation opportunity. So around cyber, it's a little bit more relevant. As govcloud becomes much more ingrained in public sector, what is the regulatory environment out there? Is it helping, is it hurting? What's your thoughts? >> Jonathan: I think, on the most part, it's helping, because regulatory and compliance environments typically lag behind technology. And that's been consistent across not just cyber, but just every field of human endeavor. And I think in cryptocurrency we're beginning to see the effects as governments around the world begin to grapple with, what does this mean, if they have no visibility, insight, or control, over a currency, and we're seeing that in East Asia today. We're seeing that in China, we're seeing that in South Korea. It will have implications, I mean, the question you have to ask, with regards to cryptocurrencies is, will governments allow a non-controlled currency to operate in their marketplace? And given that we are a more integrated and digital marketplace, unless it's adopted on a global basis, is it really compelling? Now, blockchain technology is compelling; what is going to be powering that is a different question. I think that regu-- >> And also. >> The profiteering mode of hackers, which, we talked before we came on camera, is a central part of the dynamic. So if you have a flourishing ecosystem of cryptocurrency, aka Bitcoin, you have, now, a clearinghouse for payments. And that's where ransomware is mostly paid off, in Bitcoin. >> Absolutely. So this is an interesting dynamic, I'm just trying to get a read from how that plays into some of these cybersecurity dynamics. >> I think cybersecurity is highly dynamic, as you said. It is move and countermove, active threat adversaries, active marketplaces coming up with new challenges. I think, for us, on this side of the fence, it's really about making sure, getting the fundamentals right first. I often tell people, first, do you really have all of the security controls in place? Do you really know what's operating in your system? Do you understand your users? Have you done the vulnerability scans? Where are you in those basic things, first? I mean, if you do the basics, you'll mitigate, eight, nine, out of 10 attacks. >> John: Well the costs are going up, obviously, we talked about it, global, earlier. The global impact is interesting, and that's not to say cloud is global, but you now have different regional aspects of cryptocurrencies as one example. But yeah, data breach is another, look at GEPR, the penalties involved. (laughs) And certain countries in Europe, it's going to be astronomical. So there seems to be a tax involved here. So the motivations are multifold. >> So, the motivations in cyber crime. Always consistent, whether they're monetary gain, social media gain, or some sort of political gain. And I think the way you address that is that you cannot take down the marketplace, you cannot take down the physical criminals themselves. You're going to have to take away the ability to monetize, or make gains from cyber attacks. And the way I look at it is that, if you make it so complex to actually launch a successful attack, and then, to go beyond that, and monetize what you've gained, or compromised, you effectively take away the root motivation for cyber crime. And that's, it's an interesting thought, because no one talks about that, because at an industry level, do you really have the ability to, what I call, affect the trajectory of cyber crime? That's a very different way to look at it. >> John: And it's interesting, in Jeff's position, he's basically saying, make it more complex, that'll be more effective against cybersecurity, yet, digital transformation is supposed to make it easier. With building blocks in cloud, you can almost argue that if you can make it easy to deploy in cloud, it's inherently complex. So, creating a very easy to use, complex environment, or complex system, seems to be the architecture. >> The essence of cyber, I think, moving forward, is managing complexity. If you can manage complexity then you have taken complexity and made it your advantage. Because now the cyber criminal has to figure out, where is the data? Is it in the traditional data center, that enterprise environment? Is it a multi-cloud environment, if so, which node, and if I'm successful at compromising one node, I can't get to the next node, because the security fabric separated it. >> John: Jon, the final question, 2018, what's your outlook for the year, for CSOs, and companies with cyber, right now? >> I think it's going to be an exciting time. I think, is there going to be a focus back on basics? Because before we take this next evolutionary leap, in terms of cyber, and computing, and the digital nature of our society, we've got to get the basics done right. And I think the way Fortinet is going, our ability to use the fabric, to help manage risk, and reduce risk, is going to be the path forward. >> Jonathan Nguyen, with Fortinet, former author of the Data Breach Investigation Report, which I've been a big fan of, been reading it for years. Super document, congratulations, it must have been fun working on that. >> It was the high point of my career, at this point. >> It really was a great doc, it was the Bible of state of the art, state of the union, for cyber security. This is theCUBE, bringing you commentary and coverage of cybersecurity, of course, here, in our Palo Alto studio. I'm John Furrier, thanks for watching. (bright music)

Published Date : Jan 19 2018

SUMMARY :

I'm John Furrier here in theCUBE's Palo Alto studio. Congratulations, it's great to have you here. ran the data breach investigations team, Jonathan: You know, having started my career This is the problem with cyber warfare the perimeter, of course. So if that's the case, that we have this force, that change the security paradigm? So in the Australian government, the US government, What is the holistic and the To the enterprise network, to then, to a hybrid cloud. the service area, you mentioned IOT. and embarrass the company, it's, So, at the heart of that is a convergence because one of the things that we're seeing I'm doing it, and I'm mindful of security all the time. And so, at the heart of this is the ability to have, is the ability to have deep visibility, You kind of know the landscape. back in the day, and then when that didn't work, So it's almost like sprawling, software sprawl. In my experience, 80% of all the attacks and the security team, and it adds complexity. of the industries, they all have their own unique So the level of complexity that they're going to I remember back in the days, when I was younger, So, like financial services, and the other verticals sure, students, but also the general EDU market is hot too. And the educational environment, What are some of the challenges is the notion of service to the connected citizen. You can't hide, the government can't hide. And our job in cyber is to enable the digital transformation and how is that rendering itself, Sure, so it's just, humans are the essence. And also, the ecosystem partners. And that's the challenge, how do you balance that? do the heavy lifting on new things. And so one of the questions that I ask every CSO is that, but it's mostly here in the US. the question you have to ask, is a central part of the dynamic. So this is an interesting dynamic, all of the security controls in place? And certain countries in Europe, it's going to be astronomical. the ability to monetize, or make gains from cyber attacks. or complex system, seems to be the architecture. Because now the cyber criminal has to figure out, and the digital nature of our society, former author of the Data Breach Investigation Report, of state of the art, state of the union,

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Jonathan Ebinger, BRV | CUBE Conversations Jan 2018


 

(orchestral music) >> Hello everyone. Welcome to the special CUBE conversation here in theCUBE's Palo Alto studio. I'm John Furrier. Where conversation around venture capital, entrepreneurship, crypto currencies, block chain, and more, Jonathan Ebinger our friend with BRV, formerly Blue Run Ventures, but BRV for short, sounds better, welcome to theCUBE. >> Thanks John, looking forward to it. >> Great to see you, we've known each other for a long time and you've been a great investor, your firm has done a lot of great stuff, deals are really famous deals, but also you dig into the companies and you really stand by your portfolio companies, but you've also done a lot of work in China. >> Yes. >> So you have a good landscape of what's going on. What's the, what's going on in China? >> Well China is really expanding in ways which we had not foreseen when we first started investing there almost 15 years ago. We were really active for five to 10 years, investing in companies that initially were considered copycat companies, you can't really use that term anymore. In fact what's happening more and more, you're seeing Chinese ideas coming to the United States. Businesses like We Chat are being copied as fast as they can, you're seeing Snapchat, Messenger and so forth, they're quickly trying to amalgamate as many assets as they can within their viewership much like we're seeing in a lot of the other Chinese analogs over there. It's exciting to see, it's very much an arms race. >> It's been interesting to watch. We were at the Ali Baba Cloud Conference last year, at the end of last year, it's interesting the innovation and entrepreneurial thirst has really changed. If you go back just 10 years ago when you guys were first getting in there, I remember the conversations were what's going on in China, it's very developmental but what's going on 10 years ago, they are dominating the mobile space, they're mobile usage is really much different makeup in how they do startups, the apps. How much of that has influenced some of their success just the demand? >> Always on, location always available, it opens up a whole new level of communication services. The idea of the larger screen format, people used to think in the United States, these large devices coming out of Korea first and then China, we thought these would never play in the United States, now Apple 10, larger screen size, it makes sense, it's mobile first right from the get go for a now billion plus users. >> So BRV, how many active portfolio companies do you guys have and what's the profile that you're looking for for entrepreneurs, what are some of the kind of companies? >> We're about 45 active companies right now. We're putting about, we're putting money in about 10 new companies a year at this point. We have a very disciplined approach of investing in Series A style companies, Series A of course means a lot of different things to people, but generally, we like to put $3 to $5 million to work early on and then follow on. >> How much do take for that, just a third? >> Typical in the 20%-25% range. There's a lot of companies out there that still fit that profile. Of course you're seeing some super sized Series A's that happen, we don't play in those but for the traditional software companies, evaluations are really right in our sweet spot. >> How big is the fund now, just what's the number in terms of capital? >> We're in fund six, we're just over $150 million. >> And you got to save some for follow on rounds. >> Exactly. >> Talk about the changes in venture capital because what's interesting, I had a conversation with Greg Sands with Costanoa Ventures, another great investor, formerly I think the first employee of Netscape I think or the business plan. Great guy, he talked about the dynamics of, you don't need that much cash anymore because if you can get unit economic visibility into what the business is working, you can do so much more with that and I'm calling it the hourglass effect, you get through that visibility, you're in control, you own your own destiny, versus the old Silicon Valley model which seems to be fading away, which is hey, what do you need? $40 million, or here's $100 million. That really limits your exit options and sometimes you can drown in your own capital. Talk about that dynamic. >> You're seeing the $40 million rounds with businesses that are much more capital intensive and that's coming back in vogue now but for the most part, I agree with what Greg's saying and this whole advent of seed funds and super seed funds and angel funds and so forth has been really great for the traditional series A investor. A lot of that early fundamental and foundational work is being done and then when the series A comes, it's more about expansion so we're effectively getting what was a Series B type stage company now we're investing in Series A. We're saying hey, this product works, there's product market fit, let's put dollars to work to really grow the market. >> So you're saying Series B was a kind of prove the business model, shifted down to the A because the cost to get there is lower and hence that's opened up a seed round lower in numbers, so it just shifts down a little bit. >> It really has, it really has and that plays into our sweet spot. We really like working on business models, distribution strategies, things like that. >> And what kind of startups do you want to invest in? What are some of the categories? >> Love financial services, we like health tech, we're doing education, we're really pretty omnivorous when it comes to the sector. What we're looking for is really businesses that are using data, real time data to disrupt the numbers. >> So you're not sector driven, you're disruption oriented. >> That's right. >> Okay let's talk about disruption, my favorite trend. Obviously I love the China dynamic because you're not sure what it is, but it's really doing well so you can't ignore it and they're innovative and they're hustling hard and they've got massive numbers. Block chain, we're super excited about, we love crypto, we think it's the biggest wave coming out there, so a lot of my smart, entrepreneurial friends are jumping on their surfboards literally and jumping out into those waves and there's a lot of action there. At the same time, people are saying, stay away from that crypto thing, it's a scam. Kind of a different perspective, what's your thoughts on that? >> If you look at, you separate the cryptocurrencies from block chain, I think it becomes a lot more clear. Block chain is for real. Tracking provenance on transactions, real estate transactions, multinational transactions, makes a lot of sense, dovetails nicely with security, so there's a real business there. You saw the announcement with IBM and Mersk the other day, what they are taking enterprise level block chain into their whole supply chain. I think that's really important. We have a company in the category called pay stand which is doing the same sort of thing with smaller size businesses, just accelerating the whole process on accounts receivable, taking working capital. >> And they're doing block chain for that? >> Yes block chain is an option, we're not forcing people onto block chain, but the idea of hey, let's give people more cost effective ways to transact, get rid of the paper checks, get rid of the invoicing and just join the modern world, much like you use Venmo if you and I are going to exchange money. >> That's pay stand, that's one of your hot companies. >> Yeah it is, absolutely. >> So are they using block chain or not? >> They are, yes. >> Okay, because it's a physical asset, it's kind of a supply chain thing? >> They use it to track the funds themselves, unlike a credit card where you have to pay a big fee or ACH which you can't really get proof of funds, with their block chain technology, you can be sure that you have the funds available and you get it instantly. >> Let's talk about use cases that you think out there, I'd like you to just weigh in on use cases for block chain that a mainstream person that's not in the tech business would understand, because they say, is it real or not? I agree block chain is legit, what are some use cases that would highlight that? >> I think if you've ever been involved in real estate, bought a home, things like that, just tracking title insurance, you're going all the way back if you live in California, you're going all the way back to pre-statehood days, you have to track the provenance of that land all the way through. You're paying title insurance, title insurance is a business you don't really need if you have accurate provenance tracking through block chain. I think that's one most of us can understand. Obviously bills of weighting with things coming over on ships. That's natural and right now things get held up in port because people are trying to find a clipboard before you can sign off on who, is this bill of weighting actually clean, that stuff can be done automatically with 2D barcodes, block chain usage. >> Certainly with perishable goods too, we learned that with IBM's example. >> Sure. >> Okay let's get into the hot companies you got going on. Name some of the hot investments that you've done. >> Sure, well I talked about pay stand a minute ago, really excited about them, another one we really like is a company called aerobotics. I know you're a fan of autonomous flying. If you think about drones and everyone knows DJI and they're a great company, that's one to one, one person flying one drone, that's not scalable obviously, it scales at one to one. With autonomous flying, you can have a whole army of drones out doing your business, whether they're doing site exploration, checking for chemical spills, looking at traffic and so forth. The company is now operating in three continents, it's just, if you think about what a drone is, effectively it's a flying cell phone. It's a cell phone that goes around, takes pictures, transmits data back, we know something about cell phones at BRV, we've been investing in this category for a long time so when we say aerobotics come along, we said this is just a natural extension of real time data, cellular technology, and location based services. >> You guys don't get a lot of credit as much as you should, in my opinion on that, you guys were very early on the mobile, mobile connectivity side and mobile footprint and device and software. That's playing well into the hottest trend that we see, that's not the sexiest trend, that's IOT. >> Absolutely. >> Because drones are certainly, industrial IOT is a big one. Instrumenting physical plants, equipment, and IOT in general the edge of the network. What's your thoughts on IOT and how would you, how do you see that evolving? It's more than just the edge of the network issue, it's bigger. >> It is, well of course the devices and sensors are important. I think a lot of that's been commoditized. The business that we've been seeing develop and there's a lot of folks, they've moved from analytics of the web to analytics of IOT, so there's a lot of interesting companies coming in the analytic space. We're not playing in that as much, we tend to like to invest in companies that are big enough that you need to have analytics for them. We like companies that have proprietary control of analytics versus necessarily running analytics for company X. >> So you're not poopooing IOT per se, just that from an investment thesis standpoint, it's not on your radar yet. >> That's right, they're either too capital intensive for us as a firm or you're basically managing someone else's data. I want to be in companies that we're managing our own data for a proprietary advantage. >> That's really what I was going to get to next, the role of data driven, so we've lived in dupe world, theCUBE started in 2010 in the offices of Cloud Air actually and people don't know the history and it's been interesting, Hadoop was supposed to save the world, the data, but it really started the data trend, the data driven trend, Mike Olsen, Amar Omadala and the team over there really nailed it but it didn't turn into be just Hadoop, it's everything so we're seeing that now become a bumper sticker, data driven marketer, I'm a data driven executive, I'm a data driven interviewer, all that stuff, what does it actually mean? What does data driven mean to you? >> Data is, there's big data and then there's actionable data obviously people talk about exhaust, the data coming off, we really got started with, as you know, we were investors in Waze, awful lot of data coming out of your cell phone, extracting just the important pieces of it are really what's important. We're investors in a company called Cabbage which looks at every transaction a small business makes to determine their credit worthiness. It's really the science. People talk about data scientists, what do they actually do? What they're actually doing is separating out the wheat from the chaff because it's just a crush of data. I saw your interview with Andy Jazzy to other day from AWS, the amount of data that's being stored, it's almost unfathomable but the important people. >> They have a lot of data. You'd like to invest in them now. >> Exactly, but that's really the thing, it's being able to separate the good data from the bad. >> You look at Amazon, I was talking to Jesse and he didn't really go there because he was kind of on message but when I talked with Swami who runs the AI group over there, we were talking about, I said to him straight up, I'm like, you're running a lot of workloads on your cloud, I'm sure you have data on those workloads. Just the impact of what they could do with that data. This is the virtuous cycle that their business model is made up of, but it's changing the game for what they can become. The thing that we're seeing in the data world is, sometimes the outcome might not be what you think because if you can use the data effectively, it's a competitive advantage, not a department. >> Right and you have to really stay true to your commitment to data. What we've seen happen is when companies, if you've been around for 10 years or so, you start to trust your gut, that's important, but it can also not lead you to see obvious conclusions because the world changes. >> And also committing to data also means from a practitioner's standpoint, investing in the tech, investing in things to be data driven, not just to say it. >> Exactly. >> Okay so what's the future for you guys? What are you looking at next year, what are some of the things you'd like to accomplish for investment opportunities, besides getting all the hot deals, you did Waze, that was an amazing deal, one of my favorite products, how did that go down? How many people passed on Waze? >> I don't know how many people passed, but we were lucky, they wanted to bring us in to the initial syndicate, they wanted to have some folks who understood. >> But it wasn't that obvious though at the beginning. What was the original pitch? >> The initial pitch was that they were going to have folks have the dash devices, the product would sit on your dashboard and they were going to be using it to map Eastern Europe because Eastern Europe was just coming into the Western world and they didn't really have good roads and good maps. We thought, that's interesting but they probably also don't have smartphones, so why don't we come across the Atlantic and let's make this thing work in the US and then from there, the rest took off country by country we were the number one navigation app in I think 150 countries at one point. >> What's the biggest thing that you've learned over the past few years in the industry that's different now I mean obviously there's some context that I'll share which is obviously the big cloud players are becoming bigger, scale's a big thing, you got Google, you got Microsoft and Amazon, you've got Facebook's out there as well. Then you get the political climate. You go to Washington D.C. and New York, Silicon Valley is not really talked highly about these days on the hill in Washington, yet GovCloud is completely changing the game of how the government is going to work with massive innovations and efficiencies, literally overnight, it's almost weird. >> It is and it isn't. If you look at it through a longer term horizon, Silicon Valley is again at the forefront, we're really the first ones with more transparency in the industry, all the different movements which are really important and all the conversations that are happening are important and they're happening here first. I think you're starting to see a ripple effect, you're seeing it going through entertainment, you're going to see it in the government, industry after industry I think is going to start to have to be more open as Silicon Valley has led the way on that. >> That's a great point. Take a minute to describe the folks out there watching that aren't from here, what is Silicon Valley about in your opinion? >> Silicon Valley is, of course it's more than a mindset, but folks who are here are here on purpose. They come here intentionally. There are very few people that I know who were born and raised here, so they're coming here because they want to be part of a shared ethos around success, around success, around shared values and competition so it's a very healthy environment, I came, I used to live in Washington D.C. and I couldn't be happier to be 3000 miles away. >> If you're a technology entrepreneur, this is where all the sports and action is, as I always say, we always love sports analogies. Okay, I got to ask you about the VC situation around ICOs, initial coin offerings are being talked about as an alternative to fundraising, there's some security options on token sales as a utility, the SEC has started to put some guidelines down on what that looks like, but the general sentiment is, it's a new way to raise money and some people are doing private rounds with venture capital and doing token sales through ICOs. You see some hybrids, but for the most part, the hard core I don't want to say right or left wing, is there a wing of the political spectrum, but the hard core ICO guys are like, this is all about disrupting the VC community and you're a VC, so you got to take that a little bit personal but the point is, what do you think about that? Is that talked about? >> I think that's good salesmanship. The VC industry such as it is, you can fit every VC into one section of Stanford stadium. There just aren't that many VCs to really go after. We're a small group of folks. I think that going after maybe disrupting the way folks are raising money through Kickstarter and things like that, that's all great. We're not going to stop it, we're going to embrace it. I think that there's plenty of different ways to raise capital, I have no compunction about those things. >> Do you think it's more of a democratization trend or a new asset class, so you don't see it disrupting the VCs per se, but if it's only a handful of VCs that could fit into Stanford Stadium, for instance, then certainly there's more options, it's a dilution. >> I think you look at it as it's just an alternative financing method, do I take debt, do I take equity, do I take venture, do I take friends and family? It's just one more arrow in the quiver of the entrepreneur, I think you have to be smart about it because thinking that you're going to get the same level of attention from an investor in your ICO that you are going to get from a series A investor who owns 20% of your company, those are two very different value propositions. >> So you see a lot of pitches and sometimes, you have to say no a lot and that's the way the game is, but a lot of times, you want the best deals. But the founders' side of the table, they're looking at the VC, I need money. So that's one of the options, what they really want is a value added partner, so what's your current take on what that means these days? Sometimes it means a firm, sometimes it means a partner, sometimes it means the community. How are you guys looking at BRV as value add versus the worst case scenario which is value subtract, you just want to have that be positive. >> I see that written about venture too. >> I know, some people experienced it. >> I think it helps that we've been around now for almost 20 years, we got started in '98 so you have to look at our body of work and the continuum of investments and founders and CEOs and CTOs that we've invested in. There's hundreds and hundreds of people who have taken money from BRV, and so that's one of the real positives about this current state we're in is that there's so much transparency. The fact that we are, I like to think we're good actors and have been for a long time, that comes out, now through our words but through the words of. >> What would they say about you guys? What would your entrepreneurs say about BRV? >> Aside from using buzzwords like value add, they say, they know their industry, they're not afraid to ask for help, they try to call problems when they see it, things like that. >> You stand by your companies. >> Absolutely. >> Awesome, well what's your favorite trend that you're personally interested in? >> I think you have to go after health care right now. It is just such a big market right now. People have been nibbling all different sides of it right now, there's been folks who are trying to expedite processing, there's actual innovations happening on the medical side, I think there is just, technology is just now starting to get into that, technology has gotten into education. >> How about the startup you guys funded that's related to the health care field. >> Yes, we're in a company called Hello Heart which is really at the confluence of a number of trends. It starts off, what Hello Heart is, it's a personal blood pressure cuff for you as an employee of a big company, more and more companies are starting to self insure. If you're a big enough company, 10,000 plus employees or even fewer, you're going to want to self insure to save money but also, your employees get very much more comfortable with you as an employer, you care about my well being, so it's a very virtuous cycle for the employees. >> So companies themselves insuring their own employees. >> Absolutely. >> They have to be super big, this company. >> This is just one component of a self insured business. You also, of course you still have access to doctors and stuff, I'm not making the pitch for being self insured as a company, I'm just saying that. >> But that's a trend. >> It's absolutely a trend and you're seeing a lot of what I would call point solutions stepping in, whether it's psychiatric, whether it's opioid help, whether it's working on heart conditions, these are all different point solutions which are being amalgamated together to help companies which are self insuring. >> So is Hello Heart for consumers or for business? >> It's sold to businesses but individual employees have it so they can keep track of their blood pressure. >> But I can't buy one if I wanted one? >> Not today, but I'll make sure I can get one to you. >> I need one, get all of our employees instrumented. >> Exactly. >> Drug tested all that stuff going on. People worry about the privacy, that's something I would be concerned with, putting. >> That's taken a really fast pendulum swing. A few years ago, Generation X was privacy, there is no privacy, the default was, location is always on, that's just flipped 180 degrees in the last few years. >> Well Jonathan, thanks for coming into this CUBE conversation, I want to ask you one final question, one thing we're passionate about is women in tech and underserved minorities, obviously Silicon Valley has to do a better job, it's out on the table, and it's working but we're still seeing a lot more work to be done, we're seeing titles not being at the right level, but pay's getting there in some places but titles aren't, some paying still below for women, still a lot more to do, what are you guys doing for the women in tech trend, how are you guys looking at that? Certainly it's a sensitive topic these days, but more importantly, it's one that's super important to society. >> It is, I think like a lot of things that have long term value, it's really about your actions versus your words, so our firm has two out of the five investment professionals are female, one of the last three CEO's we've founded is a female CEO, we have technologists, we have marketing people, we have CEO's that are females it's very much of a cross the board, sex, race and so forth. >> You guys are indiscriminate, a good deal's a good deal. >> Exactly right. >> It's about making money, VC's are in the business of making money, a lot of people don't understand, you guys have a job to do but you do a good job. >> We're in the business of making money but our investors for the most part are not for profits. Large universities, our biggest investor is the Red Cross, so when we do well, the Red Cross does well and the country does well. >> You're mission driven at this point. >> Exactly. >> Is that by design or is that just, your selection? >> We're delighted with our LP's, it's important that we have synergies aside from just finances with our investors. >> That's super well, I appreciate you coming on, I think it's super great that you're tying society benefits into money making and entrepreneurship, great stuff Jonathan Ebinger here on theCUBE, BRV check them out, great VC firm here in Silicon Valley. It's a CUBE conversation, we're talking about startups and entrepreneurship I'm John Furrier, thanks for watching. (dramatic music)

Published Date : Jan 18 2018

SUMMARY :

and more, Jonathan Ebinger our friend with BRV, and you really stand by your portfolio companies, So you have a good landscape of what's going on. in a lot of the other Chinese analogs over there. at the end of last year, it's interesting the innovation The idea of the larger screen format, a lot of different things to people, but generally, but for the traditional software companies, and sometimes you can drown in your own capital. for the traditional series A investor. prove the business model, shifted down to the A and that plays into our sweet spot. that are using data, real time data to disrupt the numbers. but it's really doing well so you can't ignore it We have a company in the category called pay stand people onto block chain, but the idea of hey, that you have the funds available and you get it instantly. of that land all the way through. we learned that with IBM's example. Okay let's get into the hot companies you got going on. and they're a great company, that's one to one, You guys don't get a lot of credit as much as you should, and IOT in general the edge of the network. that you need to have analytics for them. it's not on your radar yet. I want to be in companies that we're managing It's really the science. They have a lot of data. Exactly, but that's really the thing, sometimes the outcome might not be what you think Right and you have to really from a practitioner's standpoint, investing in the tech, to the initial syndicate, they wanted to have What was the original pitch? the product would sit on your dashboard changing the game of how the government is going to work in the industry, all the different movements which Take a minute to describe the folks and I couldn't be happier to be 3000 miles away. but the point is, what do you think about that? There just aren't that many VCs to really go after. or a new asset class, so you don't see it disrupting of the entrepreneur, I think you have to be smart about it So that's one of the options, what they really want and so that's one of the real positives they're not afraid to ask for help, they try I think you have to go after health care right now. How about the startup you guys funded more comfortable with you as an employer, You also, of course you still have access to doctors to help companies which are self insuring. It's sold to businesses but individual employees Drug tested all that stuff going on. that's just flipped 180 degrees in the last few years. still a lot more to do, what are you guys doing for the one of the last three CEO's we've founded you guys have a job to do but you do a good job. and the country does well. it's important that we have synergies That's super well, I appreciate you coming on,

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Jonathan Bryce & Mark Collier, OpenStack Foundation - OpenStack Summit 2017 - #OpenStackSummit


 

>> Announcer: It's The Cube covering OpenStack Summit 2017 brought to you by the OpenStack Foundation, Red Hat, an additional ecosystem of support. >> Welcome back, I'm Stu Miniman joined by my cohost John Troyer. Happy to welcome back to the program the two Keynote emcees for the first two days, Jonathan Bryce who's the executive director and Mark Collier who's the COO of OpenStack Foundation. Both of you, thanks so much for joining us. >> Jonathan: Yeah, thanks for having us back. >> It's great to be on The Cube. >> Thank you for the foundation. Without your guys' support, we couldn't do this. It's our fifth year doing the show. I remember the first year, John Furrier went. They were like, "Hey, OpenStack has arrived. "The Cube's there!" And now, it's part of our regular rotation. I know our community loves it. Community, opensource, big part of the show. I wish we had two hours to tease out all the pieces, but Mark, I got to start with you. You just did a live Q&A with Edward Snowden. Somebody joked, they said the quality and the sound was too good. He was sitting in the backroom somewhere. Can you just tell us, how did this come about and how do you make that work? >> Yeah. I mean, pinch me. Is this real life? I keep asking myself 'cause it seems kind of surreal. Just briefly, I got a lot of people that ask, "How did we get connected with him?" It's kind of a funny story, but basically, several years ago when the whole story came out about somebody from the government, from NSA had leaked these documents, but nobody knew who it was. I was on vacation, it was in the summer. I forget what year, I was on vacation with family. We were in the lobby of this hotel where we were on vacation and I've been following the story with some interest. All of a sudden, I see on the TV screen in the lobby of the hotel, "Breaking news, we're about to reveal "the name of the leaker." I look up and I'm watching it and it says, "Here it is. It's Edward Snowden." The first thing I did is I pull up my phone. I immediately look and see if edwardsnowden.com was available, so I registered it thinking, "Well, this might come in handy." Some person just became the most famous person in the world, possibly. It was available, so I'm like, I'm furiously typing on my phone trying to register the domain. I register the domain edwardsnowden.com. No idea what I would actually do with it, just thinking, "If it's there, "this name is about to become really famous," so I registered it. Didn't do much with it, I just put some Twitter feeds on there, just thought, "We'll see what comes of this." A little while later as things developed, he ended up in Russia. I was contacted by some of his team that said, "We're putting together a legal defense fund. "It'd be great if we could host it at edwardsnowden.com. "Could we buy the domain from you?" I was like, "You can have it, I'll donate it. "I just grabbed it 'cause I figured "this might come in handy someday, "just was an impulse." They said, "Great, thank you. "Edward thanks you, we're going to really use "this domain for his legal defense fund webpage," and all that stuff. Overtime, I occasionally would ping them and say, "Look, the domain's free. You've got it. "I want you to have it, it's not my name. "I don't have any need, I don't have any right to this. "You guys use it, but it would be great "if he could come on the Summit thing that we do." This was three or four years ago. They were like, "Oh yeah, he would love to do it "to thank you for donating the domain," but each time we talked, it was always like, the schedule didn't lineup. I've been literally asking him for six or seven Summits. This was the first time the schedules lined up. I didn't tell anybody 'cause I thought, this is never going to happen, this is a pipe dream. I don't want to promise anything. It was only just a few weeks ago that we found out the schedule's lined up, it's on. Got connected from there. He's obviously an opensource-person, has a lot of passion behind that. We thought this is pretty interesting for our audience, so it worked out. >> All right, so Jonathan. Let's reset for a second here (Jonathan laughs) and step back. One of the things we'd love to see is the foundation is self-aware. There's always that balance when you get into, you don't want to read the press or things like that because they don't understand what we're doing or where we're going or things like that. In your opening Keynote and throughout the show, we called it, it's a little bit of a reset. If you think about where people thought OpenStack was and where it was going three years ago, it was like, the Amazon this or the cheaper VMware or how that is, where it is, where it's going, who's leading, who's involved, winning-and-losing type stuff, you guys did a good job of laying that out, so congrats on that. Take us in a little bit, and what message did you guys want to get out this week? >> Yeah, I think that you're right, we are very self-aware. I think that some of that comes from our role. At the foundation, we are not selling a product. We don't have anything to sell off the back of a truck, so to speak. What we actually really care about is moving the state of the community and the technology we produce forward. The thing that's great about that is we can look at the portfolio of technologies that we have. We can look at the things that are in the market and if we see a shift there, it's not like we have a $500 million dollar line of business that, "Uh-oh, we need to keep milking this cash cow "and turn a blind eye to these changes over here." I think over the last couple of years, I talked about a shift in what private clouds can do now and how they're built and operated. We seen that and we've sort of been teasing that out a little bit at previous Summits whether it's demos with Kubernetes or different integrations with Cloud Foundry and other things like that. What we decided this time is coming out of last year, there was a lot of news. What we saw really picking up is there would be these rumors or misperceptions that somebody would put out there, you know? Not based on fact, not based on reality. We were like, "You know what? "We can't just try to subtly hint at what's going on. "Let's just go out there and actually address "the state of things," and I think what you mentioned is actually what's at the root of a lot of these misconceptions as people look at opensource now. Because so much technology gets developed that way, they look at it and they expect it to be like the old world of IT where you need to have Microsoft versus Linux, and you need to have Oracle versus MySQL. Actually, what we see is just the cloud overall is growing so quickly. Public cloud, everybody believes that's growing. What we see is, private clouds are growing. We see that servers, there are more servers this year than there were last year. There are more virtual machines this year than there were last year. Far more containers this year than last year. All of these technologies are growing, so it's not a zero-sum game where in order for OpenStack to succeed, AWS has to lose. I think that we feel that way and we see that, but we realize that this is... We need to just go at it directly. >> Mark, I've heard good feedback from people when, you know, core, where it is, how it's matured. People like the component piece. They'd be able to take some digital pieces which, my understanding, they could do that before, it's becoming highlighted a bit. We talked about some of the opensource days and Cloud Foundry, Kubernetes. The piece where we've heard some people poking holes in is what big tent we discussed last year. Big tent, we poked a hole, is it dead? How do we reposition that? >> Yeah, that's a great question. I think first of all, one of the things that this just this strange stroke of luck that maybe turned out to be bad luck was, one of the few times when a handful of developers went off and organized something, gave it a random name and the name really stuck. It actually was almost too good of a name. You heard Big Tent and everyone's just rolling off the tongue all the time, "Big Tent, Big Tent, Big Tent," so everyone had to have an opinion about it and was like, "This is a huge change." It really wasn't meant to be a huge change. It wasn't even meant to be broadcast that widely to everyone who's just observing OpenStack. That's just kind of what happens, people talk about it. I do think that we are entering a point now when we're thinking about composable, open infrastructure, yes, you need to have different components. You need to be able to pick them, but we're also getting more serious about what things need to exist in OpenStack. I talked about that a little bit this morning. Not every single thing that we've launched needs to continue to be an OpenStack project. Whether you call it the Big Tent or not, or if you give it different names, the reality is we need to adopt and integrate technologies from other communities. Any opensource community out there is potentially developing something really powerful. >> Jonathan: Did you mention the FCB thing this morning in your, I can't remember if-- >> Yeah I mentioned it briefly. A perfect example of this is a lot of OpenStack services have said, "You know, we need to distributed lock management function "in order to evolve as a service. "Where should we go build it? "How're we going to write it?" Then, this culture of, "Well, hold on. "There are a lot of them out there, they're proven. "What about Etcd?" So the forum, which is the first time we've really had a dedicated space at the Summit for both developers and operators to be in the same room, not just next door to each other. They had a discussion yesterday on this and they said, "Yes, we're going to go forward with Etcd." That's an opensource project, very proven, it solves this particular function, it's not developed inside of OpenStack, but who cares? It's opensource. We can work, we can be friends with anybody who builds great opensource software. Let's not reinvent the wheels. I think that does represent a bit of a shift in the philosophy and culture at OpenStack of not trying to just build every single thing from scratch 'cause that's not the best thing for our users or the market. >> I think the ecosystem message and the landscape message came through really clearly. This is my first OpenStack Summit. I was very curious about what is the shape of OpenStack? Where does it fit in? Talking about the upper layers and Kubernetes and the app layers, and now talking about the overall landscape, right. Why rewrite that something like Etcd write. The whole ecosystem has grown up around OpenStack. During the 70's, the whole foundation has been working on it, all the members. One thing that impressed me, we are post-hype cycle. There are real customers here. There are people building their first clouds right now on OpenStack. Could you talk a little bit about just the community in general, the composition of it and the actual real use cases that we're seeing that happen. >> We had some new companies that spoke here for the first time, GE was one. The U.S. Army Cyber School is another one. We had some companies that came back as well. I think that you hit on a key point which is the maturity of the software. A company like GE, especially in their healthcare division, this is a highly regulated company. It's probably the most regulated company out there when you consider the things they do with aviation, nuclear power, healthcare, finance and all these things. They don't take those decisions lightly at all. I think that is an indicator of that maturity. What we see in the makeup of the community is a broader set of industries than ever before. We had strong representation among IT companies early on and continued with that, but now we have industrial companies. We have manufacturing companies like Volkswagen, BMW, you know, a number of car manufacturers, and defense companies. I think that kind of plays into that. I think the other thing that we've seen... When we talk about the OpenStack community and the platform overall, we think of it as an ecosystem that has three main parts. There's the users, which, that's why we exist. We create software for it to be used. There are the developers who are doing that, and then there's the ecosystem of companies who create commercial products and services. I think that's actually just as important. Right now, at the phase that we're at is how that is also reaching maturity. In the earlier days of OpenStack, I think that we had a lot of startups and we had a lot of activity, but the market didn't know how to consume it. It didn't understand what it was. I think that actually scared off some companies and it made a little bit of it more confusing, but as you get a few years into that, some of those companies succeed. Some of them don't succeed, but what you arrive at is a clear understanding of what the market wants, how the products should shape up. You get companies that stop trying to build it all themselves, kind of along with the not-invented-here, and they partner with people who know how to do opensource or they come up with new delivery models. I think that, actually, just as important is the maturing that we've seen in the commercial ecosystem because that leads to sustainable business models for these companies like Red Hat and Rackspace and others that then drive the development, but it also leads to clear adoption choices for users. >> One of the things that I think came out of last year at the Austin Summit was just where OpenStack fits in in this hybrid world. I think about GE, Rackspace, Red Hat, all of those companies clearly span both sides of it. Back to that winning-and-losing discussion we had at the beginning, it was always public cloud versus the private and the infrastructure piece. We know it's a multi-cloud, hybrid cloud world. How do you see that fitting in the conversations? The other piece on that, I see a large number, it was a 74% of deployment according to your latest survey, are not U.S. which is the inverse of we see such. North America's where we have a lot of public cloud adoption so does that fit in? What dynamics may be mixed up with you, Mark? >> A couple things, I would say that what we're finding is a few years ago, it was like, are we going to do cloud? Okay, now it's yes. Then it was, which app it's going to be? It's going to be as many as we can get. Then it was, are we going to do public or private? Well, we picked one. Now it's, okay, yes to everything. It's going to be cloud, we're going to put as many apps as we can. We're going to do public and private, so what happens next? Now, it's a question of where. Where do you place each workload? Some of them belong in the public cloud, some of them don't. Economics plays a big factor, performance, compliance, all the things that he said. The three C's, capabilities. I think that's the next discussion point that's happening inside of these boardrooms with CTOs and IT leaders at the major companies. How do we get a sophisticated strategy for where to place the workload? In terms of the geographic dynamic, I think one of the things Jonathan hit on yesterday is that it's just the nature of opensource that you never know where it's going to go. You just have no clue. Really, any new technology development, the market's going to go somewhere you could've never predicted like, the crystal ball is dead. It's really roadmaps or almost obsolete. It's like, you need to create a structure for how you respond and adopt to change 'cause you know it's coming. What's happened with OpenStack 'cause it's been used in all these new and different ways, and part of that's geographic. It's used to power cell phone networks in all these different countries. It's being used to fit within regulatory requirements in certain countries in data locality, both for performance and other reasons. I think that's why you see it, it's a big world out there. More than 74% of the world doesn't live in the United States, so I think we're closer to the real percentage out there. >> I want to jump in with one thing that you said that I might disagree with slightly. >> Mark: Okay, let's have a debate. On the right... >> Well, you said that these are the conversations that CTOs and CIOs are having is the strategy about how to do it. I think it's a conversation they should be having... >> Mark: Okay, fair point. >> But I think that what we see is, we see a lot of companies-- >> After they hear this, maybe they'll start talking about the right thing. >> I think that we see that, but we're kind of on the front edge of cloud adoption >> That's a good point. >> in the OpenStack community. >> Mark: I concede your point, sir. >> And I think that one of the issues that we see still is that people are thinking about it too simplistically, almost. As Larry Ellison famously said, "The IT industry is the most "fashion-driven industry out there." I think that right now, there are a lot of companies that they still think that there's some shiny object that's going to fix it all for them. Right now, it might be public cloud or containers. They've heard this word and they think that's... Never happened. Never happened in the history of IT ever before. There has never been at technology that came along and fixed the stuff before it. They all get edited. So, yes. We were talking with a CEO just this week, and it was real interesting to hear his perspective because he said that he actually thinks that the pendulum is going to shift back towards private cloud for people who run any significant amount of software. He goes, "I know that is not a popular viewpoint right now, "and if I said that to most other "technology C-level execs, "they would probably disagree with me and go, "No, cloud first, containers," but I think that just the fundamentals behind it, over the next few years, I don't know if it will shift all the way back. It may, who knows? But that's definitely something that I think is going to change from where the current fab might be. >> We'll have to have you back later to talk about how public is now moving to edge. Edge, of course, lives. >> Yeah. Oh, yes. >> Edge is the new data center, is what they have. I do have one final question before we let you go. That whole new shiny stuff? The last couple years, I'd been hearing, everybody's like, "Containers are going to subsume and take over. "DockerCon will be the new thing. "Oh wait, Kubernetes is just "going to dominate and take it over," and we have CubeCon and the CNCF. There's lots of Linux Foundation shows that do partnerships with what you do in Cloud Foundry Summit and on all these other pieces. What do you see as the future for the OpenStack Summit? Does it get pulled? This is being pulled into pieces, but for the show itself, for the foundation, and how it fits with that whole broad ecosystem of opensource. >> Well, the OpenStack Summit has always had some specific purposes. Again, this gets back to the fact that we are an opensource community and a foundation built to support that opensource community. The primary purposes of the OpenStack Summit are basically to strengthen those three pillars that I talked about earlier, especially on the software angle. Mark mentioned that this time around, we are doing what we call the forum. We used to have the Design Summit here, and we actually split that into two parts: one that's very technical and it's really gets down into implementation details. That's split out into a separate event. It happened in February, it's going to happen in September. What we did here is we set up time where developers and operators can get together and talk about strategic issues. Instead of talking about, "How do we fix this issue on line X of file Y?" they're talking about, "What should we use for distributed storage "and lock management? "Should we do Etcd? Should we do Zoo?" They're having more strategic conversation. That is a very critical piece for our community and for the people who run on it. We do a lot of education here. I think that what we've seen is that the OpenStack Summit is becoming more focused around users and the strategic needs of them as we build out the technology versus what it used to be. It originally started as a hacking event for 75 software developers. That's where I think it's going. Just to address the other point, all of the other opensource projects, a lot of them are here and we go to their events because, again, like we've been saying, it's not a zero-sum game. What we care about is that there are open alternatives and that they work well together. One of the things that I think we've seen and we've seen it proven over and over again with OpenStack is that getting communities together in person, those high-bandwidth interactions are actually really critical to getting work done and making things happen. I think they're all valuable and we're going to continue to participate in all of them. >> Yeah, well, Jonathan Bryce, Mark Collier. Really appreciate you joining us. I'm sure we'll see you at many of those other shows that The Cube will be covering throughout the years. Stay tuned with us, we've got lots more covered here at OpenStack Summit 2017 in Boston. Thanks for watching The Cube. (minimal electronic music)

Published Date : May 9 2017

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Steven Jones, AWS | VMware Explore 2022


 

>>Okay, welcome back to everyone. Cube's live coverage of VMware Explorer, 2022. I'm John fur, host of the cube. Two sets three days of live coverage. Dave Ante's here. Lisa Martin, Dave Nicholson, all host of the cube 12 interviews today, just we're with Rocklin and rolling, getting down to the end of the show. As we wind down and look back and look at the future. We've got Steven Jones. Here's the general manager of the VMware cloud on AWS. He's with Amazon web service. Steven Jones. Welcome to the cube. >>Thanks John. >>Welcome back cube alumni. I've been on many times going back to 2015. Yeah. >>Pleasure to be here. Great >>To see you again. Thanks for coming on. Obviously 10 years at AWS, what a ride is that's been, come on. That's fantastic. Tell me it's been crazy. >>Wow. Learned a lot of stuff along the way, right? I mean, we, we, we knew that there was a lot of opportunity, right? Customers wanting the agility and flexibility of, of the cloud and, and we, we still think it's early days, right? I mean, you'll hear Andy say that animals say that, but it really is. Right. If you look at even just the amount of spend that's being spent on, on clouds, it's in the billions, right. And the amount of, of spend in it is still in the trillion. So there's, there's a long way to go and customers are pushing us hard. Obviously >>It's been interesting a lot going on with VM. We're obviously around with them, obviously changing the strategy with their, their third generation and their narrative. Obviously the Broadcom thing is going on around them. And 10 years at abs, we've been, we've been, this'll be our ninth year, no 10th year at reinvent coming up for us. So, but it's 10 years of everything at Amazon, 10 years of S three, 10 years of C two. So if you look at the, the marks of time, now, the history books are starting to be written about Amazon web services. You know, it's about 10 years of full throttle cube hyperscaler in action. I mean, I'm talking about real growth, like >>Hardcore, for sure. I'll give you just one anecdote. So when I first joined, I think we had maybe two EC two instances back in the day and the maximum amount of memory you could conversion into one of these machines was I think 128 gig of Ram fast forward to today. You literally can get a machine with 24 terabytes of Ram just in insane amounts. Right? My, my son who's a gamer tells me he's got 16 gig in his, in his PC. You need to, he thinks that's a lot. >>Yeah. >>That's >>Excited about that. That's not even on his graphics card. I mean, he's, I know it's coming next. The GPU, I mean, just all >>The it's like, right? >>I mean, all the hardware innovation that you guys have done, I mean, look at every it's changed. Everyone's changed their strategy to copy AWS nitro, Dave ante. And I talk about this all the time, especially with James Hamilton and the team over there, Peter DeSantos, these guys have, are constantly going at the atoms and innovating at the, at the level. I mean that, that's how hardcore it is over there right now. I mean, and the advances on the Silicon graviton performance wise is crazy. I mean, so what does that enabling? So given that's continuing, you guys are continuing to do great work there on the CapEx side, we think that's enabling another set of new net new applications because we're starting to see new things emerge. We saw snowflake come on, customer of AWS refactor, the data warehouse, they call it a data cloud. You're starting to see Goldman Sachs. You see capital one, you see enterprise customers building on top of AWS and building a cloud business without spending the CapEx >>Is exactly right. And Ziggy mentioned graviton. So graviton is one of our fastest growing compute families now. And you know, you mentioned a couple of ISVs and partners of ours who are leaning in heavily on porting their own software. Every event Adam announced that we're working with SAP to, to help them port their HANA cloud, which is a, a database of service offering HANA flagship to graviton as well. So it's, it's definitely changing. >>And I think, you know, one of the, and we're gonna circle back to VMware is kind of a point to this. This conversation is that, is that if you look at the trends, right, okay. VMware really tried hard to do cloud and they had a good shot at it V cloud air, but it just, they didn't have the momentum that you guys had at AWS. We saw a lot, lot of other stragglers try to do cloud. They fell off the road, OpenStack, HP, and the list goes on and on. I don't wanna get into that, but the point is, as you guys become more powerful and you're open, right? So you have open ecosystem, you have people now coming back, taking advantage and refactoring and picking up where they left off. VMware was the one of the first companies that actually said, you know what pat Gelsinger said? And I was there, let's clear up the positioning. Let's go all in with AWS. That's >>Right >>At that time, 2016. >>Yeah. This was new for us, for >>Sure. And then now that's set the standard. Now everybody else is kind of doing it. Where is the VMware cloud relationship right now? How is that going out? State's worked. >>It's working well very well. It's I mean, we're celebrating, I think we made the announcement what, five years ago at this conference. Yeah. 2016. So, I mean, it's, it's been a tremendous ride. The best part are the customers who were coming and adopting and proving to us that our vision back then was the right vision. And, and, and what's been different. I think about this relationship. And it was new for us was that we, we purposely went after a jointly engineered solution. This wasn't a, we've got a, a customer or a partner that's just going to run and build something on us. This is something where we both bring muscle and we actually build a, a joint offering together. Talk about, about the main difference. >>Yeah. And that, and that's been working, but now here at this show, if you look at, if you squint through the multi-cloud thing, which is like just, I think positioning for, you know, what could happen in, in a post broad Broadcom world, the cloud native has traction they're Tansu where, where customers were leaning in. So their enterprise customer is what I call the classic. It, you know, mainstream enterprise, which you guys have been doing a lot of business with. They're now thinking, okay, I'm gonna go on continu, accelerate on, in the public cloud, but I'm gonna have hybrid on premise as well. You guys have that solution. Now they're gonna need cloud native. And we were speculating that VMware is probably not gonna be able to get 'em all of it. And, and that there's a lot more cloud native options as customers want more cloud native. How do you see that piece on Amazon side? Because there's a lot of benefits between the VMware cloud on AWS and the services that you guys have natively in your cloud. So we see customers really taking advantage of the AWS goodness, as well as expanding the cloud side at VMware cloud on AWS. >>Yeah. There's probably two ways I would look at this. Right? So, so one is the combination of VMware cloud on AWS. And then both native services just generally brings more options to customers. And so typically what we're seeing now is customers are just able to move much faster, especially as it comes to data center, evacuations, migrating all their assets, right? So it used to be that, and still some customers they're like, I I've gotta think through my entire portfolio of applications and decide what to refactor. And the only way I can move it to cloud is to actually refactor it into some net new application, more and more. We're actually seeing customers. They've got their assets. A lot of them are still on premises in a VMware state, right. They can move those super quick and then modernize those. And so I think where you'll see VMware and AWS very aligned is on this, this idea of migrate. Now you need to get the benefits of TCO and, and the agility that comes with being in the cloud and then modernize. We took a step further, which is, and I think VMware would agree here too, but all of the, the myriad of services, I think it's 200 plus now AWS native services are for use right alongside any that a customer wants to run in VMware. And so we have examples of customers that are doing just, >>And that's, that's how you guys see the native and, and VMware cloud integrating in. Yeah, that's, that's important because this, I mean, if I always joke about, you know, we've been here 12 years listening in the hallways and stuff, you know, on the bus to the event last night, walking the parties and whatnot, listening in the streets, there's kind of two conversations that rise right to the top. And I wanna get your reaction to this Steven, because this seems to be representative of this demographic here at VMware conference, there's conversations around ransomware and storage and D dub and recovery. It's all, a lot of those happen. Yeah. Clearly a big crowd here that care about, you know, Veeam and NetApp and storage and like making sure stuff's secure and air gapped. And a lot of that kind of, I call nerdy conversations and then the other one is, okay, I gotta get the cloud story. >>Right. So there's kind of the operational security. And then there's like, okay, what's my path to true cloud. I need to get this moving. I need to have better applications. My company is the application now not it serves some sort of back office function. Yeah. It's like, my company is completely using technology as its business. So the app is the business. So that means everything's technology driven, not departmental siloed. So there's a, that's what I call the true cloud conversation. How do you, how do you see that evolving because VMware customers are now going there. And I won't say, I won't say they're behind, but they're certainly going there faster than ever before. >>I think, I think, I mean, it's an interesting con it's an interesting way to put it and I, I would completely agree. I think it's, it's very clear that I think a lot of customer companies are actually being disrupted. Right. And they have to move fast and reinvent themselves. You said the app is now becoming the company. Right. I mean, if, if you look at where not too many years back, there were, you know, big companies like Netflix that were born in the cloud. Right. Airbnb they're disruptors. >>There's, that's the >>App, right? That's the app. Yeah. So I, I would exactly agree. And, and that's who other companies are competing with. And so they have to move quickly. You talked about some, some technology that allows them to do that, right? So this week we announced the general availability of a NetApp on tap solution. It's been available on AWS for some time as a fully managed FSX storage solution. But now customers can actually leverage it with, with VMC. Now, why is that important? Well, there's tens of thousands of customers running VMware. On-premises still, there's thousands of them that are actually using NetApp filers, right? NetApp, NetApp filers, and the same enterprise features like replication. D do you were talking about and Snapp and clone. Those types of things can be done. Now within the V VMware state on AWS, what's even better is they can actually move faster. So consider replicating all this, you know, petabytes and petabytes of data that are in these S from on-premises into AWS, this, this NetApp service, and then connected connecting that up to the BMC option. So it just allows customers much, much. >>You guys, you guys have always been customer focus. Every time I sat down with the Andy jazzy and then last year with Adam, same thing we worked back from, I know it's kind of a canned answer on some of the questions from media, but, but they do really care. I've had those conversations. You guys do work backwards from the customer, actually have documents called working backwards. But one of the things that I observed, we talked about here yesterday on the cube was the observations of reinvent versus say, VM world. Now explore is VM world's ecosystem was very partner-centric in the sense of the partners needed to rely on VMware. And the customers came here for both more of the partners, not so much VMware in the sense there wasn't as much, many, many announcements can compare that to the past, say eight years of reinvent, where there's so much Amazon action going on the partners, I won't say take as a second, has a backseat to Amazon, but the, the attendees go there generally for what's going on with AWS, because there's always new stuff coming out. >>And it's, it's amazing. But this year it starts to see that there's an overlap or, or change between like the VMware ecosystem. And now Amazon there's, a lot of our interviews are like, they're on both ecosystems. They're at Amazon's show they're here. So you start to see what I call the naturalization of partners. You guys are continuing to grow, and you'll probably still have thousands of announcements at the event this year, as you always do, but the partners are much more part of the AWS equation, not just we're leasing all these new services and, and oh, for sure. Look at us, look at Amazon. We're growing. Cause you guys were building out and look, the growth has been great. But now as you guys get to this next level, the partners are integral to the ecosystem. How do you look at that? How has Amazon thinking about that? I know there's been some, some, a lot of active reorgs around AWS around solving this problem or no solve the problem, addressing the need and this next level of growth. What's your reaction to >>That? Well, I mean, it's, it's a, it's a good point. So I have to be honest with you, John. I, I, I spent eight of my 10 years so far at AWS within the partner organization. So partners are very near and dear to my heart. We've got tens of thousands of partners and you are you're right. You're starting to see some overlap now between the VMware partner ecosystem and what we've built now in AWS and partners are big >>By the way, you sell out every reinvent. So it's, you have a lot of partners. I'm not suggesting that you, that there's no partner network there, but >>Partners are critical. I mean, absolutely naturally we want a relationship with a customer, but in order to scale the way we need to do to meet the, the needs of customers, we need partners. Right. We, we can't, we can't interact with every single customer as much as we would like to. Right. And so partners have long built teams and expertise that, that caters to even niche workloads or opportunity areas. And, and we love partners >>For that. Yeah. I know you guys do. And also we'll point out just to kind of give props to you guys on the partner side, you don't, you keep that top of the stack open on Amazon. You've done some stuff for end to end where customers want all Amazon, but for the most part, you let competition come in, even on, so you guys are definitely partner friendly. I'm just observing more the maturization of partners within the reinvent ecosystem, cuz we're there every year. I mean, it's, I mean, first of all, they're all buzzing. I mean, it's not like there's no action. There's a lot of customers there it's sold out as big numbers, but it just seems that the partners are much more integrated into the value proposition of at a AWS because of the, the rising tide and, and now their enablement, cuz now they're part of the, of the value proposition. Even more than ever before >>They, they really are. And they, and they're building a lot of capabilities and services on us. And so their customers are our customers. And like you say, it's rising tide, right. We, we all do better together. >>Okay. So let's talk about the VMware cloud here. What's the update here in terms of the show, what's your, what's your main focus cuz a lot of people here are doing, doing sessions. What's been some of the con content that you guys are producing here. >>Yeah. So the best part obviously is a always the customer conversations to partner conversations. So a, a lot of, a lot of sessions there, we did keynote yesterday in Ryan and I, where we talked about a number of announcements that are, I think pretty material now to the offering a joint announcement with NetApp yesterday as well around the storage solution I was talking about. And then some, some really good technical deep dives on how the offering works. Customers are still interested in like how, how do I take what I've got on premises and easily move into AWS and technology like HSX H CX solution with VMware makes it really easy without having to re IP applications. I mean, you know, it is super difficult sometimes to, to move an application. If you've got figure out where all the firewall rules are and re iPing those, those things source. But yeah, it's, it's been fantastic. >>A lot of migrations to the cloud too. A lot of cloud action, new cloud action. You guys have probably seen an uptake on services right on the native side. >>Yes. Yes. For sure. So maybe I just outlined some of the, some of the assets we made this week. So absolutely >>Go ahead. >>We, we announced a new instance family as a, a major workhorse underneath the VMware cloud offering called I, I, you mentioned nitro earlier, this is on, based on our latest generation of nitro, which allows us to offer as you know, bare metal instances, which is, which is what VMware actually VMware was our first partnership and customer that I would say actually drove us to really get Nira done and out the door. And we've continued to iterate on that. And so this I four, I instance, it's based on the, the latest Intel isolate processor with more than double the Ram double the compute, a whopping 75 gigabytes per second network. So it's a real powerhouse. The cool thing is that with the, with the NetApp storage solution that we, we discussed, we're now disaggregating the need to provision, compute and storage at the same time. It used to be, if you wanted to add more storage to your VSAN array, that was on a V VMware cloud. Yeah. You'd add another note. You might not need more compute for memory. You'd have to add another note. And so now customers can simply start adding chunks of storage. And so this opens up customers. I had a customer come to me yesterday and said, there's no reason for us not to move. Now. We were waiting for something that like this, that allowed us to move our data heavy workloads yeah. Into VMware cloud. It's >>Like, it's like the, the alignment. You mentioned alignment earlier. You know, I would say that VMware customers are lined up now almost perfectly with the hybrid story that's that's seamless or somewhat seems it's never truly seamless. But if you look at like what Deepak's doing with Kubernetes and open source, you, you guys have that there talking that big here, you got vs a eight vSphere, eight out it's all cloud native. So that's lined up with what you guys are doing on your services and the horsepower. They have their stuff, you have yours that works better together. So it seems like it's more lined up than ever before. What's your take on that? Do you agree? And, and if so, what folks watching here that are VMware customers, what's, what's the motivation now to go faster? >>Look, it is, it is absolutely lined up. We are, as, as I mentioned earlier, we are jointly engineering and developing this thing together. And so that includes not just the nuts and bolts underneath, but kind of the vision of where it's going. And so we're, we're collectively bringing in customer feedback. >>What is that vision real quick? >>So that vision has to actually help an under help meet even the most demanding customer workloads. Okay. So you've got customer workloads that are still locked in on premises. And why is that? Well, it used to be, there was big for data and migration, right? And the speed. And so we continue to iterate this and that again is a joint thing. Instead of say, VMware, just building on AWS, it really is a, a tight partnership. >>Yeah. The lift and shift is a, an easy thing to do. And, and, and by the way, that could be a hassle too. But I hear most people say the reason holding us back on the workloads is it's just a lot of work, a hassle making it easier is what they want. And you guys are doing that. >>We are doing that. Absolutely. And by the way, we've got not just engineering teams, but we've got customer support teams on both sides working together. We also have flexible commercial options, right? If a customer wants to buy from AWS because they've negotiated some kind of deal with us, they can do that. They wanna buy from VMware for a similar reason. They could buy from VMware. So are >>They in the marketplace? >>They are in the market. There, there are some things in the marketplace. So you talked about Tansu, there's a Tansu offering in the marketplace. So yes. Customers can >>Contract. Yeah. Marketplaces. I'm telling you that's very disruptive. I'm Billy bullish on the market AIOS marketplace. I think that's gonna be a transformative way. People have what they procure and fully agree, deploy and how, and channel relationships are gonna shift. I think that's gonna be a disruptive enabler to the partner equation and, and we haven't even seen it yet. We're gonna be up there in September for their inaugural event. I think it's a small group, but we're gonna be documenting that. So even final question for you, what's next for you? What's on the agenda. You got reinvent right around the corner. Your P ones are done. Right? I know. Assuming all that, I turn that general joke. That's an internal Amazon joke. FYI. You've got your plan. What's next for the world. Obviously they're gonna go this, take this, explore global. No matter what happens with Broadcom, this is gonna be a growth wave with hybrid. What's next for you and your team with AWS and VMware's relationship? >>Yeah. So both of us are hyper focused on adding additional options, both from a, an instance compute perspective. You know, VMware announced some, some, some additional offerings that we've got. We've got a fully complete, like, so they're, they announce things like VMware flex compute V VMware flex storage. You mentioned earlier, there was a conversation around ransomware. There's a new ransomware based offering. So we're hyper focused on rounding out, continuing to round out the offering and giving customers even more choice >>Real quick. Jonathan made me think about the ransomware we were at reinforce Steven Schmidtz now the CSO. Now you got a CSO. AJ's the CSO. You got a whole focus, huge emphasis on security right now. I know you always have, but now it's much more public. It's PO more positive, I think, than some of the other events I've been to. It's been more Lum and doom. What's the security tie in here with VMware. Can you share a little bit real quick on the security piece update around this relationship? >>Yeah, you bet. So as you know, security for us is job zero. Like you don't have anything of security. And so what are the things that, that we're excited about specifically with VMware is, is the latest offering that, that we put together and it's called this, this ransomware offering. And it's, it's a little bit different than other ransomware. I mean, a lot of people have ransomware offerings today, just >>Air gap. >>Right, right, right. Exactly. No, that's easy. No, this one is different. So on the back end, so within VMC, there's this, this option where CU we can be to be taking iterative snapshots of a customer environment. Now, if an event were to occur, right. And a customer is like, I have to know if I'm compromised, we can actually spin up super easy. This is cloud. Remember? Yeah. We can spin up a, a copy of this environment, throw a switch, pick a snapshot with NSX. So VMware NSX firewall it off and then use some custom tooling from VMware to actually see if it's been compromised or not. And then iterate through that until you actually know you're clean. And that's different than just tools that do maybe a >>Little bit of scam. We had Tom gills on yesterday and, and one of the things Dave ante had to leave is taking the sun to college is last one in the house and B nester now, but Tom Gill was on. We were talking about how good their security story is ware. And they really weren't showboating it as much as they could have here. I thought they could have done a better job, but this is an example of kind of them really leaning in with you guys. That's the key part of the relationship. >>Yeah, it really is. And I think this is something is materially different than what you can get elsewhere. And it's exciting for, >>Okay. Now the, the real question I want to know is what's your plans for AWS reinvent the blockbuster end of the year, Amazon surf show that gets bigger and bigger. I know it's still hybrid now, but it's looking be hybrid, but people are back in person last year. You guys were the first event really come back and still had massive numbers. AWS summit, New York at 19,000. I heard last week in Chicago, big numbers. So we're expecting reinvent to be pretty large this year. What are you, what are you gonna do there? What's your role there? >>We are expecting, well, I'll be there. I cover multiple businesses. Obviously. We're, we're planning on some additional announcements, obviously in the VMware space as well. And one of the other businesses I run is around SAP. And you should look for some things there as well. Yeah. Really looking forward to reinvent, except for the fact that it's right after Thanksgiving. But I think it >>Always ruins my, I always get an article out. I like, why are you we're having, we're having Thanksgiving dinner. I gotta write this article. It's gotta get Adam, Adam. Leski exclusive. We, every year we do a, a CEO sit down with Andy was the CEO and then now Adam. But yeah, it's a great event to me. I think it sets the tone. And it's gonna be very interesting to see the big clouds are coming to the big cloud. You guys, and you guys are now called hyperscalers. Now, multiple words. It's interesting. You guys are providing the CapEx goodness for everybody else now. And that relationship seems to be the new, the new industry standard of you guys provide the enablement and then everyone you get paid, cuz it's a service. A whole nother level of cloud is emerging in the partner network, GSI other companies. Yeah. >>Yeah. I mean we're really scaling. I mean we continue to iterate and release regions at a fast clip. We just announced support for VMware in Hong Kong. Yeah. So now we're up to 21 regions for this service, >>The sovereign clouds right around the corner. Let's we'll talk about that soon. Steven. Thanks for coming. I know you gotta go. Thank you for your valuable time. Coming in. Put Steven Jones. Who's the general manager of the VMware cloud on AWS business. Four AWS here inside the cube day. Three of cube coverage. I'm John furrier. Thanks for watching. We'll be right back.

Published Date : Sep 1 2022

SUMMARY :

Lisa Martin, Dave Nicholson, all host of the cube 12 interviews today, just we're with Rocklin and rolling, I've been on many times going back to 2015. Pleasure to be here. To see you again. And the amount of, of So if you look at the, the marks of time, now, the history books are starting to be written about Amazon EC two instances back in the day and the maximum amount of memory you could conversion I mean, he's, I know it's coming next. I mean, all the hardware innovation that you guys have done, I mean, look at every it's changed. And you know, you mentioned a couple of ISVs and partners of ours who are leaning in And I think, you know, one of the, and we're gonna circle back to VMware is kind of a point to this. Where is the VMware The best part are the customers who were coming and adopting and proving lot of benefits between the VMware cloud on AWS and the services that you guys have natively in your cloud. And the only way I can move it to cloud is to actually refactor it into some net new application, And that's, that's how you guys see the native and, and VMware cloud integrating in. So the app is the business. I mean, if, if you look at where not And so they have to move quickly. And the customers came here for both more of the partners, So you start to see what I call the naturalization of partners. So I have to be honest with you, John. By the way, you sell out every reinvent. I mean, absolutely naturally we want a relationship Amazon, but for the most part, you let competition come in, even on, so you guys are definitely partner And like you say, it's rising tide, right. content that you guys are producing here. you know, it is super difficult sometimes to, to move an application. A lot of migrations to the cloud too. So maybe I just outlined some of the, some of the assets we made this week. the latest Intel isolate processor with more than double the Ram double So that's lined up with what you guys are doing on your services and the horsepower. And so that And the speed. And you guys are doing that. And by the way, we've got not just engineering teams, but we've got customer So you talked about Tansu, there's a Tansu offering in I think that's gonna be a disruptive enabler to the So we're hyper focused on rounding out, continuing to round out the offering I know you always have, but now it's much more public. So as you know, security for us is job zero. And a customer is like, I have to know if I'm compromised, we can actually spin up super easy. but this is an example of kind of them really leaning in with you guys. And I think this is something is materially different than what the blockbuster end of the year, Amazon surf show that And one of the other businesses I run is around SAP. And that relationship seems to be the new, the new industry standard of you guys I mean we continue to iterate and release regions at I know you gotta go.

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(upbeat music) >> Hey everyone. Welcome to theCUBE's coverage of PagerDuty Summit '22. I'm Lisa Martin. I'm here with one of our alumni. Jonathan Rendy joins me, the SVP of products at PagerDuty. Jonathan, great to have you on the program. >> It's wonderful to be here. Thank you, Lisa. >> Lisa: It's great to be back at PagerDuty Summit. So much news this morning. So much buzz and excitement. Talk to me about some of the things that you're most excited about as we are in such a massively different work environment these days. >> Yeah, so much has been going on and we've been innovating in so many areas. I think you heard in the keynote this morning, automation is such a foundational part of PagerDuty now, and that comes to us via the Rundeck acquisition from a couple of years ago. And we've also extended PagerDuty to new audiences. So we've been a big part of the back office for a long time with SREs and developers and ITOps, and we've really come to realize that the front office is so important, and one of the leading departments there that we can make an impact and extend into with our solution is customer service. >> Lisa: Customer service is absolutely critical these days as we all know. One of the things that was in very short supply the last couple of years is patience. Patience when you're a consumer, patience when you're a business person. And so the voice of the customer, being able to get things escalated quickly and resolved quickly, to those customer service folks is critical for any organization. Without that, people easily go to Twitter or Reddit and escalate problems publicly, and suddenly that becomes a brand reputation problem for the organization. >> Yeah, you're spot on. I mean expectations are at an all time high. People's tolerance is at an all time low. And that gets translated, I always think, to the front door of the organization when there is something that doesn't go right, and that's typically the poor customer service agents who have to deal with that kind of feedback and open up cases and deal with it. And, you know, unfortunately they're not armed a lot of times with the information that could help them not only be better reactive but be better proactive and have information to actually turn what could be a bad experience into a really good one. >> Lisa: You mentioned something really interesting. Jonathan had a great fireside chat this morning that I was able to watch. And you said it takes, for every negative experience that a customer or consumer has, it takes seven additional positive experiences to turn them back around. And I thought, wow, do we even have the patience or the tolerance to your point, to give a business seven more options to turn our experience around? >> Yeah, it's tough. And it's very, very hard for a lot of organizations and nobody's exempt from it. The connection between the front office and the back office, there is no real gold standard for that. And so, is there a path forward? Is there a way forward? We believe there is and we believe there's a way to help, but teams really need to focus on getting information to those folks so that these very negative kind of situations can become a customer satisfaction, can become something where a customer feels like, "Wow, I didn't expect that." There was another statistic that we heard about the other day, which is, you know, greater than 50% of issues are often identified from customers, not from the monitoring products. So, you know, whether it's 50, or 40, or 30, it doesn't really matter. The customer is a signal and it's so important to be attentive to that signal. >> Lisa: What are some, well... you'd rather have that found out before the customer even notices. Talk to me about some of the things that PagerDuty just announced that are going to help not just the front office, back office kind of blurred lines there, but also to ensure that the incident response is smarter, it's faster, and it's being able to detect things before the customer even notices. >> Yeah, so the trick, the $64,000 question, however you want to phrase it or characterize it, is all about getting teams ahead of problems. And while I think it's unrealistic to ever, like every single customer, get ahead of any issue that any customer could see, it's so important that the first customer that comes in with an issue becomes near to the last customer that comes in with an issue, meaning that one, everybody knows about that and they know how it's related to existing issues. That's important so that other customers can be preemptively explained, but then given what PagerDuty's always done, sometimes we know about issues on the back end that may be impacting customers that they don't know about yet. So a shopping cart may not be working correctly, but before somebody hits it, if the customer service team knows about that right away, they can proactively get ready for communication to their customers to let them know, "Hey, there might be an issue here. We know about it, we're working on it. Please stay tuned", or direct them to something else that can help them. >> I can imagine that goes a long way to CSAT scores NPS scores, brand reputation, reducing churn. >> Jonathan: Oh, big time, big time, whether it's CSAT or NPS, you know, everybody is familiar on that big shopping day of the year, of getting that big sale, going to, wanting to order that, and then either not being able to complete the order or having to wait too long for it to be delivered. And then you end up having to go to a brick and mortar outlet to buy it there anyway. So there's so many opportunities and those situations will happen, outages will occur, it's just a matter of when. Those can be avoided in those bad situations via the use of other discounts, coupons, other customer satisfaction areas. You can turn those bad experiences into really good ones. >> Definitely. And I think we all have that expectation that that's going to happen, when outages do happen, 'cause to your point, those are the things that it's not, "Is it going to happen?" It's when, and how quickly can we recover from that so we minimize the impact on everybody else? Couple of the things that you announced this morning, Incident Objects and Service Cloud, talk to me about what that is. It looks like a deeper partnership integration with Salesforce. What are some of the benefits that your customers can expect? >> Jonathan: Yeah, so we have several partners in the front office, and one of the biggest known to the world is Salesforce. And so we've been working with the Service Cloud team there for going on a couple of years now, better integrating our platform into what they're doing. And we've actually built an app that runs inside of Service Cloud. So a customer service agent doesn't need to swivel chair around and look at other products in order to understand what's going on in the back office, it's all built into their experience. That's one, number one. Number two, we've upped that relationship and invested more where Service Cloud, Salesforce has come out with a new incident capability. And so we're integrating directly to that so we can sync up with that system of record from PagerDuty. So wherever the issues are found, whether it's in distributed DevOps teams, or whether it's in a central team, or whether it's a case agent working on the front end, everything will be kept in sync. So we're really excited about that bidirectional integration >> That bidirectional sync is critical. We have, you know, one of the biggest challenges, we've been talking about it since we were back at HP days back in the day, Jonathan, silos, right? That's one of the biggest challenges, is there's still silos between teams and systems, which impacts, you know, time to identify an incident, time to repair that incident, and then of course let alone repair the relationship with the customer on the other end. >> Jonathan: Yeah, yeah, and there's some great examples, working with our own customers, that we run into where when we can make that golden connection between the front office and the back office and sync up customer cases with incidents, magic starts to happen. So we've seen situations where the back office team working on an incident doesn't realize that the issue is customer impacting. They don't realize that there were three, and then four, and then five case tickets opened up, that it's really impacting customers. And when they see that rise in customer impact, they change the priority. They get other people involved. The urgency changes on that issue. Imagine working in a world where that visibility doesn't exist, people continue to work at their own pace and who suffers? The customer, the customer experience. >> Lisa: Without that visibility, so much can suffer. And quickly, we also have this expectation, I mentioned one of the things that was in short supply in the pandemic as patience and tolerance, but another thing is we expect things in real time, realtime access to data, realtime access to the customer, to a product or service, is no longer a nice to have, it is business critical for organizations in every industry. >> Yeah. Yep. And you know, customer service is such a obviously service-centered activity, that it can be, you know, death by a thousand paper cuts to a customer experience. And to the point that you're raising, nobody likes to contact finally someone as an agent, and then get passed to another agent, who gets passed to another agent, and have to repeat the problem that you're having so many times. What if we could capture all that context together. What if we could empower that agent to be able to manage that case from beginning to end more effectively? Like what would the reflection be on the customers who are calling in? They would feel taken care of. They would feel like they were heard. They wouldn't feel ignored, so to speak. So all of that is a part of our solution that we're partnering not only with Salesforce, but also with Zendesk and others to deliver. >> Talk about the automation in CS Ops and some of the main benefits. Obviously, you mentioned this a minute ago, but the ability to empower those agents to have that context is night and day compared to, you know, the solutions from back in the day. >> Jonathan: Yeah. Automation is so fundamental and foundational to everything we do at PagerDuty and if you look at all the audiences that make use of PagerDuty today, whether it's developers, whether it's IT operations and now customer service agents, it's no surprise that, you know, everyone has to do more with less, everyone's working in a more siloed, disconnected manner. So the amount of potential toil, potential manual steps, having to open up a system to get the status of something and then pivot over to my other system, or do research, or ask a customer multiple times when it could automatically be captured what their problem is, what the environment is, and all that information from an agent could be automatically inserted into the case. How valuable is that? Not only for the case, but then the teams on the back end, that helps them diagnose and fix those problems. So the amount of automation that we've built and now just announced and made available as a part of Customer Service Ops just like in DevOps with our automation actions, really important to automating some of those manual toil steps for those agents where, again, 50, 60% of their time is spent doing manual activities. We can get rid of that. We can empower them to do more, to do more with less. >> To do more with less and do more faster and it makes such a huge difference there. Talk a little bit about the DevOps-CS Ops relationship. You know, one of the things that's kind of ironic is here we are in 2022, we have so many tools to collaborate and connect, yet there's still so many silos, and that can either break trust between a customer and a vendor or a solution provider, or it can really facilitate trust. And that was a big theme of the keynote this morning is that trust. But talk about the trust that is you, PagerDuty, really thinks essential between the DevOps folks and the CS Ops folks. >> Yeah. It's critical, as I kind of mentioned before, there really isn't a golden path, a golden connection, a standard that's been set between CS, the customer service organizations and the back office. And how I like to characterize it and what I've seen over the years working with customers is frequently it's almost like when I was a little kid I lived nearby a semi-pro baseball team and I could never get tickets and I would ride my bike to the back of the fence and I would look at the game through a little knot hole in the fence and I'd be like, "Man that would be so great to be in there" Well, that's essentially customer service, sitting there looking at the game happening, constantly trying to interrupt the teams and saying, "Hey, what about us?" And so, by making that a seamless connection, by making customer service a part of the solution, a part of the team in a non impactful, intrusive way, everybody gets what they need, no one's interrupted, and now those customer service agents, they're sitting in the stands. They're not looking through the little knot hole at the back of the center field. >> Lisa: Well you got to tell us, did you ever get tickets? Can you go to pro games now? >> No. No. >> Aww >> Still waiting. >> Oh man. Talk to me, last question here, I asked you before we started filming if you had a crystal ball or a Magic 8-Ball, so next time at least bring me a Magic 8-Ball. What are some of the predictions that you have as you see where we are in... now half of calendar '22 almost gone, the announcements coming from PagerDuty today, this synergy is between PagerDuty, its, what, 21,000 plus customers, your partners, What are some of the things that you're excited about that are coming? >> Jonathan: So a couple things. One is I really think the first example, we talk about the Operations Cloud, what PagerDuty is. And to me, what it really is, is it's not just the DevOps audiences and the ITOps and the SRE teams in the back offices that have to deal with interrupted realtime work, but it's other parts of the organization as well that have to get proactive versus reactive. And the first of those, the first step that kind of personifies the Operations Cloud outside of that back office is customer service. But there will be more, there will be more, whether it's security or other teams. So it's the audiences that can participate and engage in realtime work, that's one. And then I think in the area of customer service and Customer Service Operations, where we are, what we've been doing and what we've been so focused on is making sure that those agents can start to get proactive and start to get to the next step. But wouldn't it be amazing if we could help them, proactively, in a targeted way, talk to their customers and provide that as an automated part of the process. Today that's very manual, so we can empower them with information, but a lot of their communication with their customers is manual. What if we could automate that? And that's our plans, and that's what I'm really excited about doing. >> Can you imagine the trust built between an empowered, proactive CS agent and a customer on the other end. The sky is the limit on that one. >> If I'm a platinum customer or I'm a silver customer, I'm paying for a certain level of customer service. How great would it be if based on the extra that I'm paying, I'm actually getting that service proactively and I'm hearing about issues long before I see them. That to me is building trust. >> Lisa: Absolutely. Jonathan, thank you so much for joining me on theCUBE today. Great to see you back in person. Great to hear some of the things coming down the road for PagerDuty, and we're excited to see your predictions come true. Thanks for your time. >> Likewise, Lisa. Thank you very much. >> My pleasure. For Jonathan Rendy. I'm Lisa Martin covering theCUBE on the ground at PagerDuty summit '22. Stick around, I'll be right back with my next guest. (upbeat music)

Published Date : Jun 9 2022

SUMMARY :

Jonathan Rendy joins me, the Thank you, Lisa. Talk to me about some of the things and that comes to us via And so the voice of the customer, and have information to actually turn or the tolerance to your point, and it's so important to be that are going to help it's so important that the I can imagine that goes for it to be delivered. that that's going to happen, and one of the biggest of the biggest challenges, doesn't realize that the I mentioned one of the things and have to repeat the but the ability to empower those agents and then pivot over to my other system, and the CS Ops folks. and I'd be like, "Man that would What are some of the things that have to deal with and a customer on the other end. on the extra that I'm paying, Great to see you back in person. back with my next guest.

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Jonathon Rende, PagerDuty | PagerDuty 2022


 

(upbeat music) >> Hey everyone. Welcome to theCUBE's coverage of PagerDuty Summit '22. I'm Lisa Martin. I'm here with one of our alumni. Jonathan Rendy joins me, the SVP of products at PagerDuty. Jonathan, great to have you on the program. >> It's wonderful to be here. Thank you, Lisa. >> Lisa: It's great to be back at PagerDuty Summit. So much news this morning. So much buzz and excitement. Talk to me about some of the things that you're most excited about as we are in such a massively different work environment these days. >> Yeah, so much has been going on and we've been innovating in so many areas. I think you heard in the keynote this morning, automation is such a foundational part of PagerDuty now, and that comes to us via the Rundeck acquisition from a couple of years ago. And we've also extended PagerDuty to new audiences. So we've been a big part of the back office for a long time with SREs and developers and ITOps, and we've really come to realize that the front office is so important, and one of the leading departments there that we can make an impact and extend into with our solution is customer service. >> Lisa: Customer service is absolutely critical these days as we all know. One of the things that was in very short supply the last couple of years is patience. Patience when you're a consumer, patience when you're a business person. And so the voice of the customer, being able to get things escalated quickly and resolved quickly, to those customer service folks is critical for any organization. Without that, people easily go to Twitter or Reddit and escalate problems publicly, and suddenly that becomes a brand reputation problem for the organization. >> Yeah, you're spot on. I mean expectations are at an all time high. People's tolerance is at an all time low. And that gets translated, I always think, to the front door of the organization when there is something that doesn't go right, and that's typically the poor customer service agents who have to deal with that kind of feedback and open up cases and deal with it. And, you know, unfortunately they're not armed a lot of times with the information that could help them not only be better reactive but be better proactive and have information to actually turn what could be a bad experience into a really good one. >> Lisa: You mentioned something really interesting. Jonathan had a great fireside chat this morning that I was able to watch. And you said it takes, for every negative experience that a customer or consumer has, it takes seven additional positive experiences to turn them back around. And I thought, wow, do we even have the patience or the tolerance to your point, to give a business seven more options to turn our experience around? >> Yeah, it's tough. And it's very, very hard for a lot of organizations and nobody's exempt from it. The connection between the front office and the back office, there is no real gold standard for that. And so, is there a path forward? Is there a way forward? We believe there is and we believe there's a way to help, but teams really need to focus on getting information to those folks so that these very negative kind of situations can become a customer satisfaction, can become something where a customer feels like, "Wow, I didn't expect that." There was another statistic that we heard about the other day, which is, you know, greater than 50% of issues are often identified from customers, not from the monitoring products. So, you know, whether it's 50, or 40, or 30, it doesn't really matter. The customer is a signal and it's so important to be attentive to that signal. >> Lisa: What are some, well... you'd rather have that found out before the customer even notices. Talk to me about some of the things that PagerDuty just announced that are going to help not just the front office, back office kind of blurred lines there, but also to ensure that the incident response is smarter, it's faster, and it's being able to detect things before the customer even notices. >> Yeah, so the trick, the $64,000 question, however you want to phrase it or characterize it, is all about getting teams ahead of problems. And while I think it's unrealistic to ever, like every single customer, get ahead of any issue that any customer could see, it's so important that the first customer that comes in with an issue becomes near to the last customer that comes in with an issue, meaning that one, everybody knows about that and they know how it's related to existing issues. That's important so that other customers can be preemptively explained, but then given what PagerDuty's always done, sometimes we know about issues on the back end that may be impacting customers that they don't know about yet. So a shopping cart may not be working correctly, but before somebody hits it, if the customer service team knows about that right away, they can proactively get ready for communication to their customers to let them know, "Hey, there might be an issue here. We know about it, we're working on it. Please stay tuned", or direct them to something else that can help them. >> I can imagine that goes a long way to CSAT scores NPS scores, brand reputation, reducing churn. >> Jonathan: Oh, big time, big time, whether it's CSAT or NPS, you know, everybody is familiar on that big shopping day of the year, of getting that big sale, going to, wanting to order that, and then either not being able to complete the order or having to wait too long for it to be delivered. And then you end up having to go to a brick and mortar outlet to buy it there anyway. So there's so many opportunities and those situations will happen, outages will occur, it's just a matter of when. Those can be avoided in those bad situations via the use of other discounts, coupons, other customer satisfaction areas. You can turn those bad experiences into really good ones. >> Definitely. And I think we all have that expectation that that's going to happen, when outages do happen, 'cause to your point, those are the things that it's not, "Is it going to happen?" It's when, and how quickly can we recover from that so we minimize the impact on everybody else? Couple of the things that you announced this morning, Incident Objects and Service Cloud, talk to me about what that is. It looks like a deeper partnership integration with Salesforce. What are some of the benefits that your customers can expect? >> Jonathan: Yeah, so we have several partners in the front office, and one of the biggest known to the world is Salesforce. And so we've been working with the Service Cloud team there for going on a couple of years now, better integrating our platform into what they're doing. And we've actually built an app that runs inside of Service Cloud. So a customer service agent doesn't need to swivel chair around and look at other products in order to understand what's going on in the back office, it's all built into their experience. That's one, number one. Number two, we've upped that relationship and invested more where Service Cloud, Salesforce has come out with a new incident capability. And so we're integrating directly to that so we can sync up with that system of record from PagerDuty. So wherever the issues are found, whether it's in distributed DevOps teams, or whether it's in a central team, or whether it's a case agent working on the front end, everything will be kept in sync. So we're really excited about that bidirectional integration >> That bidirectional sync is critical. We have, you know, one of the biggest challenges, we've been talking about it since we were back at HP days back in the day, Jonathan, silos, right? That's one of the biggest challenges, is there's still silos between teams and systems, which impacts, you know, time to identify an incident, time to repair that incident, and then of course let alone repair the relationship with the customer on the other end. >> Jonathan: Yeah, yeah, and there's some great examples, working with our own customers, that we run into where when we can make that golden connection between the front office and the back office and sync up customer cases with incidents, magic starts to happen. So we've seen situations where the back office team working on an incident doesn't realize that the issue is customer impacting. They don't realize that there were three, and then four, and then five case tickets opened up, that it's really impacting customers. And when they see that rise in customer impact, they change the priority. They get other people involved. The urgency changes on that issue. Imagine working in a world where that visibility doesn't exist, people continue to work at their own pace and who suffers? The customer, the customer experience. >> Lisa: Without that visibility, so much can suffer. And quickly, we also have this expectation, I mentioned one of the things that was in short supply in the pandemic as patience and tolerance, but another thing is we expect things in real time, realtime access to data, realtime access to the customer, to a product or service, is no longer a nice to have, it is business critical for organizations in every industry. >> Yeah. Yep. And you know, customer service is such a obviously service-centered activity, that it can be, you know, death by a thousand paper cuts to a customer experience. And to the point that you're raising, nobody likes to contact finally someone as an agent, and then get passed to another agent, who gets passed to another agent, and have to repeat the problem that you're having so many times. What if we could capture all that context together. What if we could empower that agent to be able to manage that case from beginning to end more effectively? Like what would the reflection be on the customers who are calling in? They would feel taken care of. They would feel like they were heard. They wouldn't feel ignored, so to speak. So all of that is a part of our solution that we're partnering not only with Salesforce, but also with Zendesk and others to deliver. >> Talk about the automation in CS Ops and some of the main benefits. Obviously, you mentioned this a minute ago, but the ability to empower those agents to have that context is night and day compared to, you know, the solutions from back in the day. >> Jonathan: Yeah. Automation is so fundamental and foundational to everything we do at PagerDuty and if you look at all the audiences that make use of PagerDuty today, whether it's developers, whether it's IT operations and now customer service agents, it's no surprise that, you know, everyone has to do more with less, everyone's working in a more siloed, disconnected manner. So the amount of potential toil, potential manual steps, having to open up a system to get the status of something and then pivot over to my other system, or do research, or ask a customer multiple times when it could automatically be captured what their problem is, what the environment is, and all that information from an agent could be automatically inserted into the case. How valuable is that? Not only for the case, but then the teams on the back end, that helps them diagnose and fix those problems. So the amount of automation that we've built and now just announced and made available as a part of Customer Service Ops just like in DevOps with our automation actions, really important to automating some of those manual toil steps for those agents where, again, 50, 60% of their time is spent doing manual activities. We can get rid of that. We can empower them to do more, to do more with less. >> To do more with less and do more faster and it makes such a huge difference there. Talk a little bit about the DevOps-CS Ops relationship. You know, one of the things that's kind of ironic is here we are in 2022, we have so many tools to collaborate and connect, yet there's still so many silos, and that can either break trust between a customer and a vendor or a solution provider, or it can really facilitate trust. And that was a big theme of the keynote this morning is that trust. But talk about the trust that is you, PagerDuty, really thinks essential between the DevOps folks and the CS Ops folks. >> Yeah. It's critical, as I kind of mentioned before, there really isn't a golden path, a golden connection, a standard that's been set between CS, the customer service organizations and the back office. And how I like to characterize it and what I've seen over the years working with customers is frequently it's almost like when I was a little kid I lived nearby a semi-pro baseball team and I could never get tickets and I would ride my bike to the back of the fence and I would look at the game through a little knot hole in the fence and I'd be like, "Man that would be so great to be in there" Well, that's essentially customer service, sitting there looking at the game happening, constantly trying to interrupt the teams and saying, "Hey, what about us?" And so, by making that a seamless connection, by making customer service a part of the solution, a part of the team in a non impactful, intrusive way, everybody gets what they need, no one's interrupted, and now those customer service agents, they're sitting in the stands. They're not looking through the little knot hole at the back of the center field. >> Lisa: Well you got to tell us, did you ever get tickets? Can you go to pro games now? >> No. No. >> Aww >> Still waiting. >> Oh man. Talk to me, last question here, I asked you before we started filming if you had a crystal ball or a Magic 8-Ball, so next time at least bring me a Magic 8-Ball. What are some of the predictions that you have as you see where we are in... now half of calendar '22 almost gone, the announcements coming from PagerDuty today, this synergy is between PagerDuty, its, what, 21,000 plus customers, your partners, What are some of the things that you're excited about that are coming? >> Jonathan: So a couple things. One is I really think the first example, we talk about the Operations Cloud, what PagerDuty is. And to me, what it really is, is it's not just the DevOps audiences and the ITOps and the SRE teams in the back offices that have to deal with interrupted realtime work, but it's other parts of the organization as well that have to get proactive versus reactive. And the first of those, the first step that kind of personifies the Operations Cloud outside of that back office is customer service. But there will be more, there will be more, whether it's security or other teams. So it's the audiences that can participate and engage in realtime work, that's one. And then I think in the area of customer service and Customer Service Operations, where we are, what we've been doing and what we've been so focused on is making sure that those agents can start to get proactive and start to get to the next step. But wouldn't it be amazing if we could help them, proactively, in a targeted way, talk to their customers and provide that as an automated part of the process. Today that's very manual, so we can empower them with information, but a lot of their communication with their customers is manual. What if we could automate that? And that's our plans, and that's what I'm really excited about doing. >> Can you imagine the trust built between an empowered, proactive CS agent and a customer on the other end. The sky is the limit on that one. >> If I'm a platinum customer or I'm a silver customer, I'm paying for a certain level of customer service. How great would it be if based on the extra that I'm paying, I'm actually getting that service proactively and I'm hearing about issues long before I see them. That to me is building trust. >> Lisa: Absolutely. Jonathan, thank you so much for joining me on theCUBE today. Great to see you back in person. Great to hear some of the things coming down the road for PagerDuty, and we're excited to see your predictions come true. Thanks for your time. >> Likewise, Lisa. Thank you very much. >> My pleasure. For Jonathan Rendy. I'm Lisa Martin covering theCUBE on the ground at PagerDuty summit '22. Stick around, I'll be right back with my next guest. (upbeat music)

Published Date : Jun 8 2022

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Jonathan Rendy joins me, the Thank you, Lisa. Talk to me about some of the things and that comes to us via And so the voice of the customer, and have information to actually turn or the tolerance to your point, and it's so important to be that are going to help it's so important that the I can imagine that goes for it to be delivered. that that's going to happen, and one of the biggest of the biggest challenges, doesn't realize that the I mentioned one of the things and have to repeat the but the ability to empower those agents and then pivot over to my other system, and the CS Ops folks. and I'd be like, "Man that would What are some of the things that have to deal with and a customer on the other end. on the extra that I'm paying, Great to see you back in person. back with my next guest.

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Jonathon Rande Final 2


 

>>Hey everyone. Welcome to the cubes coverage of PagerDuty summit 22. I'm Lisa Martin. I'm here with one of our alumni. Jonathan Ren joins me the SVP of products at PagerDuty. Jonathan. Great to have you on the program. >>It's wonderful to be here. Thank you, Lisa. >>It's great to be back at PagerDuty summit. So much news this morning. So much buzz and excitement. Talk to me about some of the things that you are most excited about as we are in such a massively different work environment these days. >>Yeah, so much has been going on and we've been innovating in so many areas. Uh, I think you heard in the keynote this morning, automation is such a foundational part of PagerDuty now, and that comes to us via the Rundeck acquisition from a couple of years ago. And we've also extended a PagerDuty to new audiences. So we've been a big part of the back office for a long time with SREs and developers and it ops. And we've really come to realize that, you know, the front office is so important. And one of the, the leading departments there that we can make an impact and extend into with our solution is customer service. >>Customer service is absolutely critical these days, as we all know, one of the things that was in very short supply the last couple of years is patients patients when you're a consumer patients, when you're a business person. And so the, the, the voice of the customer being able to get things escalated quickly and resolve quickly to those customer service folks is critical for any organization without that people easily go to Twitter or Reddit and escalate problems publicly. And suddenly that becomes a brand reputation problem for the organization. >>Yeah, you you're you're spot on, I mean, expectations are at an all time high people's tolerance is at an all time low and that gets translated. I always think to the front door of the organization when there is something that doesn't go right, and that's typically the poor customer service agents who have to deal with that kind of feedback and open up cases and deal with it. And, you know, unfortunately they're not armed a lot of times with the information that could help them not only be better reactive, but be better proactive and have information to actually turn what could be a bad experience into a really good one. >>You mentioned something really interesting. Jonathan had a great fireside chat this morning that I was able to watch. And you said it takes for every negative experience that a customer or consumer has. It takes seven additional positive experiences to turn them back around. And I thought, wow, do we even have the patience or the tolerance to your point to give a business seven more options to turn our experience around? >>Yeah, it's tough. And it's it, it's very, very hard for a lot of organizations and nobody's exempt from it. Um, the connection between the front office and the back office, there is no real gold standard for that. And, and, and so like, is there, is there a path forward? Is there a way forward? We believe there is, and we believe there's a way to help, but teams really need to focus on getting information to those folks so that these very negative kind of situations can become a customer satisfaction, can become something where a customer feels like, wow, I didn't expect that. Um, there was another statistic that, uh, we, we heard about the other day, which is, you know, greater than 50% of issues are often identified from customers, not from the monitoring products. So, you know, whether it's 50 or 40 or 30, it doesn't really matter. The customer is a signal and it's so important to be attentive to that signal. >>What are some of the, well, the, the LA you'd rather have that found out before the customer even notices? Talk to me about some of the things that PagerDuty just announced that are gonna help, not just the front office back office kind of blurred, um, blurred lines there, but also to ensure that the incident response is smarter, it's faster and it's being able to detect things before the customer even notices. >>Yeah. So the, the trick, the, the $64,000 question, however you want to phrase it or characterize it is all about getting teams ahead of problems. And while I think it's unrealistic to ever like every single customer get ahead of any issue that any customer could see, it's so important that the first customer that comes in with an issue becomes near to the last customer that comes in with an issue, meaning that one, everybody knows about that, and they know how it's related to existing issues. That's important so that other customers can be preemptively explained, but then given what PagerDuty's always done, sometimes we know about issues on the back end that may be impacting customers that they don't know about yet. So a shopping cart may not be working correctly, but before somebody hits it, if the customer service team knows about that right away, they can proactively get ready for communication to their customers to let them know, Hey, there might be an issue here we know about it, we're working on it. Please stay tuned or direct them to something else that can help them. >>I can imagine that goes a long way to, um, CSAT scores, NPS scores, brand reputation, reducing churn, >>Oh, big time, big time, whether it's CSAT or NPS. You know, everybody is familiar on that big shopping day of the year of getting that big sale, going to wanting to order that. And then either not being able to complete the order or having to wait too long for it to be delivered. And then you end up having to go to a brick and mortar, uh, outlet to buy it there anyway. So there's so many opportunities and those situations will happen. Outages will occur. It's just a matter of when those can be avoided in those bad situations, via the use of other discounts, coupons, other Jo you know, uh, customer satisfaction areas. You can turn those bad experiences into really good ones. >>Definitely. And I think we all, we all have that expectation that that's gonna happen when things do when outages do happen, cuz to your point that's, those are the things that's not, is it gonna happen? It's when and how quickly can we recover from that? So it's, we minimize the impact on everybody else. Couple the things that you announced this morning, incident objects and service cloud. Talk to me about what that is. It looks like a deeper partnership integration with Salesforce. What are some of the benefits that your customers can expect? >>Yeah, so we have several partners in the front office and one of, one of the biggest, uh, known to the world is Salesforce. And so we've been working with the service cloud team there for going on a couple of years now, uh, better integrating our platform into what they're doing. And we've actually built an app that runs inside of service cloud. So a customer service agent doesn't need to swivel chair around and look at other products in order to understand what's going on in the back office, it's all built into their experience. That's one number one, number two, uh, we've upped that relationship and invested more where service cloud Salesforce has come out with a new incident capability. And so we're integrating directly to that. So we can sync up with that system of record from PagerDuty. So wherever the issues are found, whether it's in distributed DevOps teams or whether it's in a central team or whether it's a case agent working on the front end, everything will be kept in sync. So we're really excited about that. Bidirectional direct, uh, integration >>That bidirectional sync is critical. We have, you know, one of the biggest challenges we've been talking about it since we were back at HP days back in the day, Jonathan silos, right? That's one of the biggest challenges is there's still silos between teams and systems, which impacts, you know, time to identify an incident, time to repair that incident. And then of course, let alone repair the relationship with the customer on the other end. >>Yeah. Yeah. And there's some great examples working with our own customers that we run into where when we can make that golden connection between the front office and the back office and sync up customer cases with incidents magic starts to happen. So, uh, we've seen situations where the back office team working on an incident, uh, doesn't realize that the issue is customer impacting. They don't realize that there were three and then four, and then five case tickets opened up that it's really impacting customers. And when they see that rise in customer impact, they change the priority. They get other people involved. The urgency changes on that issue. Imagine working in a world where that visibility doesn't exist, people continue to work at their own pace and who suffers the customer, the customer experience >>Without that visibility so much can suffer. And, and quickly, we also had this expectation. I, I mentioned one of the things that was in short supply in the pandemic as patients and tolerance. But another thing is we expect things in real time, real time, access to data, real time access to the customer to a product or service is no longer a nice to have it is business critical for organizations in every industry. >>Yeah. Yep. And you know, the customer service is such a obviously service centered activity that it can be, you know, death by a thousand paper cuts to a customer experience. And to the point that you're raising, nobody likes to contact finally, someone in as an agent and then get passed to another agent who gets passed to another agent and have to repeat the problem that you're having so many times what if we could capture all that context together. What if we could empower that agent to be able to manage that case from beginning to end more effectively? Like what would the reflection be on the customers who are calling in, they would feel taken care of. They would feel like they were heard. Yeah. They wouldn't feel ignored, so to speak. So all of that is a part of our solution that we're partnering, not only with Salesforce, but also with Zendesk and others to deliver, >>Talk about the automation in CSOPs and some of the main benefits. Obviously you mentioned this a minute ago, but the ability to empower those agents to have that context is night and day compared to, you know, the solutions from back in the >>Day. Yeah. Automation is so fundamental and foundational to everything we do at PagerDuty. And if you look at all the audiences that make use of PagerDuty today, whether it's developers, whether it's, uh, it operations and now customer service agents, it's no surprise that, you know, everyone has to do more with less everyone's working in a more siloed, disconnected manner. So the amount of potential toil, potential manual steps, uh, having to open up a system to get the status of something and then pivot over to my other system or do research or ask a customer multiple times when it could automatically be captured, what their problem is, what the environment is. And all that information from an agent could be automatically inserted into the case. How valuable is that? Not only for the case, but then the teams on the back end that that helps them diagnose and fix those problems. So the amount of automation that we've built and now just announced and made available as a part of customer service ops, just like in DevOps with our automation actions, really important to automating some of those manual toil steps for those agents where again, um, 50, 60% of their time is spent doing manual activities. We can get rid of that. We can empower them to do more, to do more with less, >>To do more with less and, and do more faster and make such a huge difference there. Talk a little bit about the, the DevOps CS ops relationship. You know, one of the, one of the things that's kind of ironic is here we are in, in 2022, we have so many tools to collaborate and connect yet. There's still so many silos and that can either break trust between a customer and a, and a vendor or a solution provider, or it can really facilitate trust. And that was a big theme of, uh, the keynote this morning is that trust. But talk about the trust that is you PagerDuty really things essential between the DevOps folks and the CS ops folks. >>Yeah. It's, it's, it's critical. As I kind of mentioned before, there really isn't a golden path, a golden connection, uh, a standard that's been set between CS, the customer service organizations and the back office and how I like to characterize it. And what I've seen over the years, working with customers is frequently. It's, it's almost like when I was a little kid, I lived nearby a, um, a semi-pro baseball team and I could never get tickets and I would ride my bike to the back of the fence. And I would look at the game through a little knot hole in the fence and I'd be like, man, that would be so great to be in there. That's essentially customer service sitting there looking at the game happening constantly, like trying to interrupt the teams and saying, Hey, what about us? Like, and so by making that a seamless connection by making customer service a part of the solution, a part of the team in a non impactful intrusive way, everybody gets what they need. No one's interrupted. And now those customer service agents they're sitting in the stands. They're not looking through the little knothole at the back of the center field. >>Well, you gotta tell, did you ever get tickets? Can you go to pro games now? >>Uh, no. No. Oh, still waiting. >>Oh man. Talk to me last question here. I asked you before we, we started filming if you had a crystal ball or, or a magic eight ball. So next time at least bring me a magic eight ball. What are some of the predictions that you have is as you see where we are in now, half of calendar, 22, almost gone. The announcements coming from PagerDuty today, the synergy is between PagerDuty. It's what 21,000 plus customers, your partners. What are some of the things that you're excited about that are coming? >>So a couple things. One is, I, I really think the first example we talk about the operations cloud, what PagerDuty is. And to me, what it really is, is it's not just the DevOps audiences and the it ops and the SRE teams in the back office back offices that have to deal with interrupted, um, real time work, but it's other parts of the organization as well, um, that have to get proactive versus reactive. And the first of those that the, the first step that kind of personifies the operations cloud outside of that back office is customer service. But there will be more, there will be more whether it's security or other teams. So it's the audiences that can participate and engage in like real time work. That's one. And then I think in the area of customer service and customer service operations, where we are, what we've been doing and what we've been so focused on is making sure that those agents can start to get proactive and start to get to the next step. But wouldn't it be amazing if we could help them proactively in a targeted way, talk to their customers, uh, and provide that as an automated part of the process today, that's very manual so we can empower them with information, but a lot of their communication with their customers is manual. What if we could automate that? And that's our plans, and that's what I'm really excited about >>Doing. Can you imagine that the trust built between an empowered, proactive CS agent and a customer on the other end that there's the sky is the limit on that one? >>Uh, if I'm a platinum customer or I'm a silver customer on paying for a certain level of customer service, how great would it be if based on the extra that I'm paying, I'm actually getting that service right. Proactively and I'm hearing about issues long before I see them. That to me is building trust. >>Absolutely. Jonathan, thank you so much for joining me on the cube today. Great to see you back in person. Great to hear some of the things coming down the road for PagerDuty, and we're excited to, to see your predictions come true. <laugh> thanks for your time. >>Likewise, Lisa, thank you very much. >>My pleasure for Jonathan Ren. I'm Lisa Martin covering the cube on the ground at PagerDuty summit 22, stick around of your rack back with my next guest.

Published Date : Jun 8 2022

SUMMARY :

Great to have you on the program. It's wonderful to be here. Talk to me about some of the things that you are most excited about as we are in such a massively and that comes to us via the Rundeck acquisition from a couple of years ago. And suddenly that becomes a brand reputation problem for the organization. I always think to the front door of the organization when there is something that doesn't go right, And you said it takes for every negative experience that a customer or consumer has. to be attentive to that signal. Talk to me about some of the things that PagerDuty just announced that are gonna help, and they know how it's related to existing issues. And then either not being able to complete the order or Couple the things that you announced this morning, incident objects and service cloud. So a customer service agent doesn't need to swivel chair around and look at other products And then of course, let alone repair the relationship with the customer on the other end. And when they see that rise in customer impact, they change the priority. access to data, real time access to the customer to a product or service is no And to the point that you're raising, and day compared to, you know, the solutions from back in the We can empower them to do more, to do more with less, But talk about the trust that is you PagerDuty the customer service organizations and the back office and how I like to characterize it. What are some of the things that you're excited about that are coming? teams in the back office back offices that have to deal with interrupted, agent and a customer on the other end that there's the sky is the limit on that one? That to me is building trust. Great to see you back in person. I'm Lisa Martin covering the cube on the ground at PagerDuty

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Breaking Analysis: How Cisco can win cloud's 'Game of Thrones'


 

>> From theCUBE Studios in Palo Alto and Boston, bringing you data-driven insights from theCUBE in ETR. This is "Breaking Analysis" with Dave Vellante. >> Cisco is a company at the crossroads. It's transitioning from a high margin hardware business to a software subscription-based model, which also should be high margin through both organic moves and targeted acquisitions. It's doing so in the context of massive macro shifts to digital in the cloud. We believe Cisco's dominant position in networking combined with a large market opportunity and a strong track record of earning customer trust, put the company in a good position to capitalize on cloud momentum. However, there are clear challenges ahead for Cisco, not the least of which is the growing complexity of its portfolio, a large legacy business, and the mandate to maintain its higher profitability profile as it transitions into a new business model. Hello and welcome to this week's Wiki-bond cube insights powered by ETR. In this breaking analysis, we welcome in Zeus Kerravala, who's the founder and principal analyst at ZK Research, long time Cisco watcher who together with me crafted the premise of today's session. Zeus, great to see you welcome to the program. >> Thanks Dave. It's always a pleasure to be with you guys. >> Okay, here's what we're going to talk about today, set the agenda. The catalyst for this session, Zeus and I attended Cisco's financial analyst day. We received a day and a half of firehose presentations, drill downs, interactions, Q and A with Cisco execs and one key customer. So we're going to share our takeaways from these sessions and add our additional thoughts. Now, in particular, we're going to talk about Cisco's TAM, its transformation to a subscription-based model, and how we see that evolving. As always, we're going to bring in some ETR spending data for context and get Zeus' take on what that tells us. And we'll end with a summary of Cisco's cloud strategy and outlook for how it could win in the cloud. So let's talk about Cisco's sort of structure and TAM opportunities. First, Zeus, Cisco has four main lines of business where it's organized it's executives around sort of four product areas. And it's got a large service component as well. Network equipment, SP routing, data center, collaboration that security, and as I say services, that's not necessarily how it's going to market, but that's kind of the way it organizes its ELT, its executive leadership team. >> Yeah, the in fact, the ELT has been organized around those products, as you said. It used to report to the street three product segments, infrastructure platforms, which was by far the biggest, it was all their networking equipment, then applications, and then security. Now it's moved to five new segments, secure agile networks, hybrid work, end to end security, internet for the future and optimized app experiences. And I think what Cisco's trying to do is align their, the way they report along the lines of the way customers buy. 'Cause I think before, you know, they had a very simplistic model before. It was just infrastructure, apps, and security. The ELT is organized around product roadmap and the product innovation, but that's not necessarily the way customers purchase things and so, purchase things so I think they've tried to change things a little bit there. When you look at those segments though, you know, by, it's interesting. They're all big, right? So, by far the biggest distilled networking, which is almost a hundred billion dollar TAM as they reported and they have it growing a about a 9% CAGR as reported by other analyst firms. And when you think about how mature networking is Dave, the fact that that's still growing at high single digit CAGR is still pretty remarkable. So I think that's one of those things that, you know, watchers of Cisco historically have been calling for the network to be commoditized for decades. For as long as I've been watching Cisco, we've been, people have been waiting for the network to be commoditized. My thesis has always been, if you can drive enough innovation into things, you can stave off commoditization and that's what they've done. But that's really the anchor for them to sell all their other products, some of which are higher margin, some which are a little bit sore, but they're all good high margin businesses to your point. >> Awesome. We're going to dig into that. So, so they flattened the organization when Geckler left. You've got Todd Nightingale, Jonathan Davidson, Liz Centoni, and Jeetu Patel who we heard from and we'll make some comments on what we heard from them. One of the big takeaways at the financial analysts meeting was on the TAM, as you just mentioned. Liz Centoni who also is heavily involved in strategy and the CFO Scott Herren, showed this slide, which speaks to the company's TAM and the organizational structure that you were just talking about. So the big message was that Cisco has got a large and growing market, you know, no shortage of available market. Somewhere between eight and 900 billion, depending on which of the slides you pull out of the deck. And ironically Zeus, when you look at the current markets number here on the right hand side of this slide, 260 billion, it just about matches the company's market cap. Maybe an interesting coincidence, but at any rate, what was your takeaway from this data? >> Well, I think, you know, the big takeaway from the data is there's still a lot of room ahead for Cisco to grow, right? Again, this is a, it's a company that I think most people would put in the camp of legacy IT vendor, just because of how long they've been around. But they have done a very good job of staving off innovation. And part of that is just these markets that they play in continue to grow and they continue to have challenges that they can solve. I think one of the things Cisco has done though, since the arrival of Chuck Robbins, is they don't fight these trends anymore, Dave. I know prior to Chuck's arrival, they really fought the tide of software defined networking and you know, trends like that, and even cloud to some extent. And I remember one of the first meetings I had with Chuck, I asked him about that and he said that Cisco will never do that again. That under his watch, if customers are going through a market transition, Cisco wants to lead them through it, not try and hold them back. And I think for that reason, they're able to look at, all of those trends and try and take a leadership position in them, even though you might look at some of those and feel that some of them might be detrimental to Cisco's business in the short term. So something like software defined WANs, which you would throw into secure agile networks, certainly doesn't, may not carry the same kind of RPOs and margins with it that their traditional routers did, but ultimately customers are going to buy it and Cisco would like to be the ones to sell it to them. >> You know, you bring up a great point. This industry is littered, there's a graveyard of executives who fought the trend. Many people, some people remember Ken Olson of Digital Equipment Corporation. "Unix is snake oil," is what he said. IBM mainframe guys said, "PCs are a toy." And of course the history, they were the wrong side of history. The other big takeaway was the shift to software in subscription. They really made a big point of this. Here's a chart Cisco showed a couple of times to make the point that it's one of the largest software companies in the world. You know, in the top 10. They also made the point that Chuck Robbins, when he joined in 2015, and since that time, it's nearly 4x'ed it's subscription software revenue, and roughly doubled its software sales. And it now has an RPO, remaining performance obligations, that exceeds 30 billion. And it's committing to grow its subscription business in the forward-looking statements by 15 to 17% CAGR through 25, which would imply about a doubling of these, the blue lines. Zeus, it's unclear if that forward-looking forecast is just software. I presume it includes some services, but as Herren pointed out, over time, these services will be bundled into the product revenue, same way SAS companies do it. But the point is Cisco is committed, like many of their peers, to moving to an ARR model. But please, share your thoughts on Cisco's move to software subscriptions and how you see the future of consumption-based pricing. >> Yeah, this has been a big shift for Cisco, obviously. It's one that's highly disruptive. It's one that I know gave their partners a lot of angst for a long time because when you sell things upfront, you get a big check for selling that, right? And when you sell things in a subscription model, you get a much smaller check for a number of months over the period of the contract. It also changes the way you deal with the customer. When you sell a one-time product, you basically wipe your hands. You come back in three or four years and say, "it's time to upgrade." When you sell a subscription, now, the one thing that I've tried to talk to Cisco and its partners about is customers don't renew things they don't use. And so it becomes incumbent on the partner, it becomes incumbent upon Cisco to make sure that things that the customer is subscribing to, that they do use. And so Cisco's had to create a customer success organization. They've had to help their partners create those customer success organizations. So it's really changed the model. And Cisco not only made the shift, they've done it faster than they actually had originally forecast. So during the financial analyst day, they actually touted their execution on software, noting that it hit it's 30% revenue as percent of total target well before it was supposed to, it's actually exceeded its targets. And now it's looking to increase that to, it actually raised its guidance in this area a little bit by a few percentage points, looking out over the next few years. And so it's moved to the subscription model, Dave, the thing that you brought up, which I do see as somewhat of a challenge is the shift to consumption-based pricing. So subscription is one thing in that I write you a check every month for the same amount. When I go to the consumption-based pricing, that's easy to do for cloud services, things like WebEx or Duo or, you know, CloudLock, some of the security products. That that shift should be relatively simple. If customers want to buy it that way. It's unclear as to how you do that when you're selling on-prem equipment with the software add-on to it because in that case, you have to put metering technology in to understand how much they're using. You have to have a minimum baseline to start with. They've done it in some respects. The old HCS product that they sold, the Telcos, actually was sold with a minimum commit and then they tacked on a utilization on top of that. So maybe they move into that kind of model. But I know it's something that they've, they get asked about a lot. I know they're still thinking about it, but it's something that I believe is coming and it's going to come pretty fast. >> I want to pick up on that because I think, you know, they made the point that we're one of the top 10 software companies in the world. It's very difficult for hardware companies to make the transition to software. You know, HP couldn't do it. >> Well, no one's done it. >> Well, IBM has kind of done it, but they really struggle. It's kind of this mishmash of tooling and software products that aren't really well-integrated. But, I would say this, everybody now, Cisco, Dell, HPE with GreenLake, Lenovo, pretty much all the traditional hardware players are trying to move to an as a service model or at least for a portion of their business. HPE's all in, Dell transitioning. And for the most part, I would make the following observation. And I'd love to get your thoughts on this. They're pretty much following a SAS like model, which in my view is outdated and kind of flawed from a customer standpoint. All these guys say, "Hey, we're doing this because "this is what the customers want." I think the cloud is really a true consumption based model. And if you look at modern SAS companies, a lot of the startups, they're moving to a consumption based model. You see that with Snowflake, you see that with Stripe. Now they will offer incentives. But most of the traditional enterprise players, they're saying, "Okay, pay us upfront, "commit to some base level. "If you go over it, you know, "we'll charge you for it. "If you go under it, you're still going to pay "for that base level." So it's not true consumption base. It's not really necessarily the customer's best interest. So that's, I think there's some learnings there that are going to have to play out. >> Yeah, the reason customers are shying away from that SAS type model, I think during the pandemic, the one thing we learned, Dave, is that the business will ebb and flow greatly from month to month sometimes. And I was talking with somebody that worked for one of the big hotel chains, and she was telling me that what their CRM providers, she wouldn't tell me who it was, except said it rhymed with Shmalesforce, that their utilization of it went from, you know, from a nice steady level to spiking really high when customers started calling in to cancel hotel rooms. And then it dropped down to almost nothing as we went through that period of stay at home. And now it's risen back up. And so for her, she wanted to move to a consumption-based model because what happens otherwise is you wind up buying for peak utilization, your software subscriptions go largely underutilized the majority of the year, and you wind up paying, you know, a lot more than you need to. If you go to more of a true consumption model, it's harder to model out from a financial perspective 'cause there's a lot of ebbs and flows in the business, but over a longer period of time, it's more cost-effective, right? And so the, again, what the pandemic taught us was we don't really know what we're going to need from a consumption standpoint, you know, nevermind a year from now, maybe even six months from now. And consumption just creates a lot more flexibility and agility. You can scale up, you can scale down. You can bring in users, you can take out users, you can add consultants, things like that. And it just, it's much more aligned with the way businesses are run today. >> Yeah, churn is a silent killer of a software company. And so there's retention is the key here. So again, I think there's lots of learning. Let's put Cisco into context with some of its peers. So this chart we developed compares five companies to Cisco. Core Dell, meaning Dell, without VMware. VMware, HPE, IBM, we've put an AWS, and then Cisco as, IBM, AWS and Cisco is the integrated plays. So the chart shows the latest quarterly revenue multiplied by four to get a run rate, a three-year growth outlook, gross margin percentage, market cap, and revenue multiple. And the key points here are that one, Cisco has got a pretty awesome business model. It's got 60% gross margin, strong operating margins, not shown here, but in the mid twenties, 25%. It's got a higher growth rate than most of its peers. And as such, a much better, multiple than say, for instance, Core Dell gets 33 cents on the revenue dollar. HPE is double that. IBM's below two X. Cisco's revenue multiple rivals VMware, which is a pure software company. Now in a large part that's because VMware stock took a hit recently, but still the point is obvious. Cisco's got a great business. Now for context, we've added AWS, which blows away any company on this chart. We've inferred a market cap of nearly 600 billion, which frankly is conservative at a 10 X revenue multiple given it's inferred margins and growth rate. Now Zeus, if AWS were a separate company, it could have a market cap that approached 800 billion in my view. But what does this data tell you? >> Well, it just tells me that Cisco continues to be a very well-run company that has staved off commoditization, despite the calling for it for years. And I think the big lesson, and I've talked to financial analysts about this over the years, is that if, I don't really believe anything in this world is a commodity, Dave. I think even when Cisco went to the server market, if you remember back then, they created a new way of handling memory management. They were getting well above average margins for service, albeit less than Cisco's network margins, but still above average for server margins. And so I think if you can continue to innovate, you will see the margin stay where they are. You will see customers continue to buy and refresh. And I think one of the challenges Cisco's had in the past, and this is where the subscription business will help, is getting customers to stay with the latest and greatest. Prior to this refresh of network equipment, some of the stuff that I've seen in the fields, 10, 15 years old, once you move to that sell me a box and then tack on the subscription revenue that you pay month by month, you do drive more consistent refresh. Think about the way you just handle your own mobile phone. If you had to go pay, you know, a thousand dollars every three years, you might not do it at that three-year cycle. If you pay 40 bucks a month, every time there's a new phone, you're going to take it, right? So I think Cisco is able to drive greater, better refresh, keep their customers current, keep the features in there. And we've seen that with a lot of the new products. The new Cat 9,000, some of the new service provider products, the new wifi products, they've all done very well. In fact, they've all outpaced their previous generation products as far as growth rate goes. And so I think that is a testament to the way they've run the business. But I do think when people bucket Cisco in with HP and Dell, and I understand why they do, their businesses were similar at one time, it's really not a true comparison anymore. I think Cisco has completely changed their business and they're not trying to commoditize markets, they're trying to drive innovation and keep the margins up, where I think HP and Dell tend to really compete on price versus innovation. >> Well, and we are going to get to this point about the tailwinds and headwinds and cloud, and how Cisco to do it. But, to your point about, you know, the cell phone analogy. To the extent that Cisco can make that seamless for customers could hide that underlying complexity, that's going to be critical for the cloud. Now, but before we get there, I want to talk about one of the reasons why Cisco such a high multiple, and has been able to preserve its margins, to your point, not being commoditized. And it's been able to grow both organically, but also has a strong history of M and A. It's this chart shows a dominant position in core networking. So this shows, so ETR data within the Fortune 500. It plots companies in the ETR taxonomy in two dimensions, net score on the vertical axis, which is a measure of spending velocity, and market share on the horizontal axis, which is a measure of presence in the survey. It's not like IDC market share, it's mentioned market share if you will. The point is Cisco is far and away the most pervasive player in the market, it's generally held its dominant position. Although, it's been under pressure in the last few years in core networking, but it retains or maintains a very respectable net score and consistently performs well for such a large company. Zeus, anything you'd add with respect to Cisco's core networking business? >> Yeah, it's maintained a dominant network position historically. I think part of because it drives good products, but also because the competitive landscape, historically has been pretty weak, right? We saw companies like 3Com and Nortel who aren't around anymore. It'll be interesting to see moving forward now that companies like VMware are involved in networking. AWS is interested in networking. Arista is a much stronger company. You know, Juniper bought Mist and is in better position. Even Extreme Networks who most people thought was dead a few years ago has made a number of acquisitions and is now a billion dollar company. So while Cisco has done a great job of execution, they've done a great job on the innovation side, their competitive landscape, looking out over the next five years, I think is going to be more difficult than it has been over the previous five years. And largely, Dave, I think that's good for Cisco. I think whenever Cisco's pressed a little bit from competition, they tend to step on the innovation gas a little bit more. And I look back and even just the transition when VMware bought Nicira, that got Cisco's SDN business into gear, like nothing else could have, right? So competition for that company, they always seem to respond well to it. >> So, let's break down Cisco's net score a little bit. Explain why the company has been able to hold its spending momentum despite its large size. This will give you a little insight to the survey. So this chart shows the granular components of net score. The lime green is new adoptions to Cisco. The forest green is spending more than 6%. The gray is flat plus or minus 5%. The pink is spending drops by more than 5%. And the red is we're chucking the platform, we're getting off. And Cisco's overall net score here is 25%, which for a company of its size speaks to the relationships that it has with customers. It's of course got a fat middle in the gray area, like all sort of large established companies. But very low defections as well, it's got low new adoptions. But very respectable. So that is background, Zeus. Let's look at spending momentum over time across Cisco's portfolio. So this chart shows Cisco's net score by that methodology within the ETR taxonomy for Cisco over three survey periods. And what jumps out is Meraki on the left, very strong. Virtualization business, its core networking, analytics and security, all showing upward momentum. AppD is a little bit concerning, but that could be related to Cisco's sort of pivot to full stack observability. So maybe AppD is being bundled there. Although some practitioners have cited to us some concerns in that space. And then WebEx at the end of the chart, it's showing some relative strength, but not that high. Zeus, maybe you could comment on Meraki and any other takeaways across the portfolio. >> Yeah, Meraki has proven to be an excellent acquisition for Cisco. In fact, you might, I think it's arguable to say it's its best acquisition in history going all the way back to camp Kalpana and Grand Junction, the ones that brought up catalyst switches. So, in fact, I think Meraki's revenue might be larger than security now. So, that shows you the momentum it has. I think one of the lessons it brought to Cisco was that simpler is better, sometimes. I think when they first bought Meraki, the way Meraki's deployed, it's very easy to set up. There's a lot of engineering work though that goes into making a product simple to use. And I think a lot of Cisco engineers historically looked at Meraki as, that's a little bit of a toy. It's meant for small businesses, things like that, but it's not for enterprise. But, Rocky's done a nice job of expanding the portfolio, of leveraging the cloud for analytics and showing you a lot of things that you wouldn't necessarily get from traditional networking equipment. And one of the things that I was really delighted to see was when they put Todd Nightingale in charge of all the networking business, because that showed to me that Chuck Robbins understood that the things Meraki were doing were right and they infuse a little bit of Meraki into the rest of the company. You know, that's certainly a good thing. The other areas that you showed on the chart, not really a surprise, Dave. When you think of the shift hybrid work and you think of the, some of the other transitions going on, I think you would expect to see the server business in decline, the storage business, you know, maybe in a little bit of decline, just because people aren't building out data centers. Where the other ones are related more to hybrid working, hybrid cloud, things like that. So it is what you would expect. The WebEx one was interesting too, because it did show somewhat of a dip and then a rise. And I think that's indicative of what we've seen in the collaboration space since the pandemic came about. Companies like Zoom and RingCentral really got a lot of the headlines. Again, when you, the comment I made on competition, Cisco got caught a little bit flat-footed, they've caught up in features and now they really stepped on the gas there. Chuck joked that he gave the WebEx team a bit of a blank check to go do what it had to do. And I don't think that was a joke. I think he actually did that because they've added more features into WebEx in the last year then I think they did the previous five years before that. >> Well, let's just drill into video conferencing real quick here, if we could. Here's that two dimensional view, again, showing net score against market share or pervasiveness of mentions, and you can see Microsoft Teams in the upper right. I mean, it's off the chart, literally. Zoom's well ahead of Cisco in terms of, you know, mentions presence. And that could be a spate of freemium, you know, but it's basically a three horse race in this game. And Cisco, I don't think is trying to take Zoom head on, rather it seems to be making WebEx a core part of its broader collaboration agenda. But Zeus, maybe you could comment. >> Well, it's all coming together, right? So, it's hard to decouple calling from video from meetings. All of the vendors, including Teams, are going after the hybrid work experience. And if you believe the future is hybrid and not just work from home, then Cisco does have a pretty interesting advantage because it's the only one that makes its own end points, where Teams and Zoom doesn't. And so that end to end experience it can deliver. The Microsoft Teams one's interesting because that product, frankly, when you talk to users, it doesn't have a great user score, like as far as user satisfaction goes, but the one thing Microsoft has done a very good job of is bundling it in to the Office365 licenses, making it very easy for IT to deploy. Zoom is a little bit in the middle where they've appealed to the users. They've done a better job of appealing to IT, but there is a, there is a battleground now going on where video's not just video. It includes calling, includes meetings, includes room systems now, and I think this hybrid work friend is going to change the way we think about these meeting tools. >> Now we'd be remiss if we didn't spend a moment talking about security as a key part of Cisco's business. And we have a graphic on this same kind of X, Y. And it's been, we've seen several quarters of growth. Although, the last quarter security growth was in the low single digits, but Cisco is a major player in security. And this X, Y graph shows, they've got both a large presence and a solid spending momentum. Not nearly as much momentum as Okta or Zscaler or a CrowdStrike and some of the smaller companies, but they're, these guys are on a rocket ship, but others that we featured in these episodes, but much more than respectable for Cisco. And security is critical to the strategy. It's a big part of the subscriber base. And the last thing, Zeus, I'll say about Cisco made the point in analyst day, that this market is crowded. You can see that in this chart. And their goal is to simplify this picture and make it easier for customers to secure their data and apps. But that's not easy, Zeus. What are your thoughts on Cisco's security opportunities? >> Yeah, I've been waiting for Cisco go to break up in security a little more than it has. I do think, I was talking with a CSO the other day, Dave, that said to me he's starting to understand that you don't have to have best of breed everywhere to have best in class threat protection. In fact, there's a lot of buyers now will tell you that if you try and have best of breed everywhere, it actually creates a negative when it comes to threat protection because keeping all the policies and things up to date is very, very difficult. And so the industry is moving more to a platform model, right? Now, the challenge for Cisco is how do you get that, the customer to think of the network as part of the platform? Because while the platform model, I think, is starting to gain traction, FloridaNet, Palo Alto, even McAfee, companies like that also have their own version of a security platform. And if you look at the financial performance of companies like FloridaNet and Palo Alto over the past, you know, over the past couple of years, they've been through the roof, right? And so I think an interesting and unique challenge for Cisco is can they convince the security buyer that the network is as important a part of that platform as any other component? If they can do that, I think they can break away from the pack. If not, then they'll stay mixed in with those, you know, Palo, FloridaNet, Checkpoint, and, you know, and Cisco, in that mix. But I do think that may present their single biggest needle moving opportunity just because of how big the security TAM is, and the fact that there is no de facto leader in security today. If they could gain the same kind of position in security as they have a networking, who, I mean, that would move the needle like no other market would. >> Yeah, it's really interesting that they're coming at security, obviously from a position of networking strength. You've got, to your point, you've got best of breed, Okta in identity, you got CrowdStrike in endpoint, Zscaler in cloud security. They're all growing like crazy. And you got Cisco and you know, Palo Alto, CSOs tell us they want to work with Palo Alto because they're the thought leader and they're obviously a major player here. You mentioned FloridaNet, there's a zillion others. We could talk all day about security. But let's bring it back to cloud. We've talked about a number of the piece in Cisco's portfolio, and we haven't really spent any time on full stack observability, which is a big push for Cisco with AppD, Intersight and the ThousandEyes acquisition. And that plays into this equation. But my take, Zeus, is Cisco has a number of cloud knobs that it can turn, it sells core networking equipment to hyperscalers. It can be the abstraction layer to connect on-prem to the cloud and hybrid and across clouds. And it's in a good position with Telcos too, to go after the 5G. But let's use this chart to talk about Cisco's cloud prospects. It's an ETR cut of the cloud customer spending. So we cut it by cloud customers. And they're are, I don't know, 800 or so in the survey. And then looking at various companies performance within that cut. So these are companies that compete, or in the case of HashiCorp, partner with Cisco at some level. Let me just set this up and get your take. So the insert on the chart by the way shows the raw data that positions each dot, the net score and the shared n, i.e. the number of accounts in the survey that responded. The key points, first of all, Azure and AWS, dominant players in cloud. GCP is a distant third. We've reported on that a lot. Not only are these two companies big, they have spending momentum on their platforms. They're growing, they are on that flywheel. Second point, VMware and Cisco are very prominent. They have huge customer bases. And while they're often on a collision course, there's lots of room in cloud for multiple players. When we plotted some other Cisco properties like AppD and Meraki, which as we said, is strong. And then for context, we've placed Dell, HPE, Aruba, IBM and Oracle. And also VMware cloud and AWS, which is notable on its elevation. And as I say, we've added HashiCorp because they're critical partner of Cisco and it's a multi-cloud play. Okay, Zeus, there's the setup. What does Cisco have to do to make the cloud a tailwind? Let's talk about strategy, tailwinds, headwinds, competition, and bottom line it for us. >> Yeah, well, I do think, well, I talked about security being the biggest needle mover for Cisco, I think its biggest challenge is convincing Wall Street in particular, that the cloud is a tailwind. I think if you look at the companies with the really high multiples to their stock, Dave, they're all ones where they're viewed as, they go along with the cloud ride, Right? So the, if you can associate yourself with the cloud and then people believe that the cloud is going to, more cloud equals more business, that obviously creates a better multiple because the cloud has almost infinite potential ahead of it. Now with respect to Cisco, I do think cloud has presented somewhat of a double-edged sword for Cisco. I don't believe the current consumption model for cloud is really a tailwind for Cisco, not really a headwind, but it doesn't really change Cisco's business. But I do think the very definition of cloud is changing before our eyes, Dave. And it's shifting away from centralized clouds. If you think of the way customers bought cloud before, it might have used AWS, it might've used Azure, but it really, that's not really multi-cloud, it's just multiple clouds in which I put things in these centralized resources. It's shifting more to this concept of distributed cloud in which a single application can be built using resources from your private cloud, for AWS, from Azure, from Edge locations, all the cloud providers have built their portfolios to support this concept of distributed cloud and what becomes important there, is a highly agile dynamic network. And in that case with distributed cloud, that is a tailwind for Cisco because now the network is that resource that ties all those distributed cloud components together. Now the network itself has to change. It needs to become a lot more agile and microservices and container friendly itself so I can spin up resources and, you know, in an Edge location, as fast as I can on-prem and things like that. But I do think it creates another wave of innovation and networking, and in that case, I think it does act as a tailwind for Cisco, aside from just the work it's done with the web scalers, you know, those types of companies. So, but I do think that Cisco needs to rethink its delivery model on network services somewhat to take advantage of that. >> At the analyst meeting, Cisco made the point that it does sell to the hyperscalers. It talked about the top six hyperscalers. You know, you had mentioned to me, maybe IBM and Oracle were in there. I always talk about four hyperscalers and only four, but that's fine. Here's my question. Practitioners have told me, buyers have told me, the more money and more workloads I put in the cloud, the less I spend with Cisco. Now, even though that might be Cisco gear powering those clouds, do you see that as a potential threat in that they don't own that relationship anymore and value will confer to the cloud players? >> Yeah, that's, I've heard that too. And I don't, I believe that's true when it comes to general purpose compute. You're probably not buying as many UCS servers and things like that because you are putting them in the cloud. But I do think you do need a refresh the network. I think the network becomes a very important role, plays a very important role there. The variant, the really interesting trend will be, what is your WAM look like? Do you have thousands of workers scattered all over the place, or do you just have a few centralized locations? So I think also, you know, Cisco will wind up providing connectivity within the cloud. If you think of the transition we've seen in other industries, Dave, as far as cloud goes, you think of, you know, F5, a company like that. People thought that AWS would commoditize F5's business because AWS provides their own load balancers, right? But what AWS provides is a very basic, very basic functionality and then use F5's virtual edition or a cloud edition for a lot of the advanced capabilities. And I think you'll see the same thing with the cloud that customers will start buying versions of Cisco that go in the cloud to drive a lot of those advanced capabilities that only Cisco delivers. And so I think you wind up buying more Cisco over time, although the per unit price of what you buy might be a little bit lower. If that makes sense here. >> It does, I think it makes a lot of sense and that fits into the cloud model. You know, you bring up a good point, the conversation with the customer was Rakuten. And that individual was essentially sharing with us, somebody was asking, one of the analysts was asking, "Well, what about the cloud guys? "Aren't they going to really threaten the whole Telco "industry and disrupt it?" And his point was, "Look at, this stuff is not trivial." So to your point, you know, maybe they'll provide some basic functionality. Kind of like they do in a lot of different areas. Data protection is another good example. Security is another good example. Where there's plenty of room for partners, competitors, of on-prem players to add value. And I've always said, "Look, the opportunity "is the cloud players spend 100 billion dollars a year "on CapEx." It's a gift to companies like Cisco who can build an abstraction layer that connects on-prem, cloud for hybrid, across clouds, out to the edge, and really be that layer that is that layer that takes advantage of cloud native, but also delivers that experience, I don't want to use the word seamlessly, but that experience across those clouds as the cloud expands. And that's fundamentally Cisco's cloud strategy, isn't it? >> Oh yeah. And I think people have underestimated over the years, how hard it is to build good networking products. Anybody can go get some silicon and build a product to connect two things together. The question is, can you do it at scale? Can you do it securely? And lots of companies have tried to commoditize networking, you know, White Boxes was looked at as the existential threat to Cisco. Huawei was looked at as the big threat to Cisco. And all of those have kind of come and gone because building high quality network equipment that scales is tough. And it's tougher than most people realize. And your other point on the cloud providers as well, they will provide a basic level of functionality. You know, AWS network equipment doesn't work in Azure. And Azure stuff doesn't work in Google, and Google doesn't work in AWS. And so you do need a third party to come in and act as almost the cloud middleware that can connect all those things together with a consistent set of policies. And that's what Cisco does really well. They did that, you know back when they were founded with routing protocols and you can think this is just an extension of what they're doing just up at the cloud layer. >> Excellent. Okay, Zeus, we're going to leave it there. Thanks to my guest today, Zeus Kerravala. Great analysis as always. Would love to have you back. Check out ZKresearch.com to reach him. Thank you again. >> Thank you, Dave. >> Now, remember I publish each week on Wikibond.com and siliconangle.com. All these episodes are available as podcasts, just search "Braking Analysis" podcast, and you can connect on Twitter at DVallante or email me David.Vallante@siliconangle.com. Thanks for the comments on LinkedIn. Check out etr.plus for all the survey action. This is Dave Vallante for theCUBE insights powered by ETR. Be well and we'll see you next time. (light music)

Published Date : Sep 18 2021

SUMMARY :

bringing you data-driven and the mandate to maintain to be with you guys. but that's kind of the for the network to be One of the big takeaways at the ones to sell it to them. And of course the history, is the shift to consumption-based pricing. companies in the world. a lot of the startups, they're moving Dave, is that the business And the key points here are that one, Think about the way you just of the reasons why Cisco I think is going to be more And the red is we're that the things Meraki I mean, it's off the chart, literally. And so that end to end And the last thing, Zeus, the customer to think It's an ETR cut of the Now the network itself has to change. that it does sell to the hyperscalers. that go in the cloud to and that fits into the cloud model. as the existential threat to Cisco. Would love to have you back. Thanks for the comments on LinkedIn.

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