>> Live from Bahrain, it's theCUBE. Covering AWS Summit Bahrain. Brought to you by Amazon Web Services. >> Hello everyone, welcome to theCUBE's exclusive coverage. We are here in Bahrain in the Middle East for exclusive coverage of AWS's new region in the area. I'm John Furrier, cohost of theCUBE. It's our first time in the Middle East, as we go out into the world and expand theCUBE's mission of bringing you the best content, extracting the signal from the noise, meeting new people, connecting with thought leaders, people creating innovation, creating a new cultural shift with cloud computing. It's a societal global phenomenon, it's a change that's going to impact society, culture, economics, and humans. And this is theCUBE coverage, we're going to continue with that we are excited to have Khalid Al Rumaihi who is the CEO of the Bahrain Economic Development Board. He's the man, and responsible with his team for all the success and vision of bringing an Amazon region into the area. Here in Bahrain, Amazon has announced a region that's going to come in. And we expect to see economic revitalization. We expect to see an amplification of culture. Welcome to theCUBE, thank you for joining me. >> Thanks for having me John. >> Thanks for inviting us, and thanks for having us here. Here in the middle of all the action. Teresa Carlson from Amazon had a vision and you aligned with that vision, you guys are like-minded individuals. You saw something special with digital. >> Right. >> And this is not new. It's not like you woke up one morning and said, hey, let's bring Amazon in. Take us through the history of how we got here with Amazon about to launch a region early 2019 in Bahrain. You guys have had a vision, take us through that. >> You know, I started in my position about three years ago. I remember March 2015, a little more than three years ago. And my first week on the job, was joining his highness the crown prince in a meeting with Teresa. And so, in that meeting, that's what kicked it really off. Teresa heard form his highness, who is the chairman of the Bahrain Economic Development board, the vision for the country. We deregulated our telecom sector about 13, 14 years ago. We were the first country to do that in the Middle East. Which meant that we introduced competition on broadband, on mobile. It dropped prices by about 50%. On connectivity in the country. That attracted Amazon. When they looked at the region, they said, here's a government that's allowing true competition and for a data center obviously broadband communication, and the competitiveness of that price is key. And she was also impressed with his royal highness's vision for the country going forward. We want to become a digital economy, we want to transform this economy from an oil-based economy, to one that is based on information. And so we had a common view. And we determined, at that point, that we were going to do everything in our power to translate the conversation we had there to a reality. And here we are, almost three years later, almost to have a region here. >> And you know, people know my rant and rave, I always talk about, data is the new oil, information is the new oil. In that data and information, digital assets are digital. It a life-blood now of society. Citizen are reacting. Everyone's now connected with mobile devices, you're starting to see autonomous vehicles, you're starting to see a cultural blending between the old world, and then digital. And citizens can get new services, there's more efficiencies but there's actually a better opportunity for the citizens. And also in general. How do you guys look at that when you guys have your meetings, and you're looking at the vision of the future, the citizen benefits. Whether it's an entrepreneur or someone who's just living life. >> Well you know, when we had this discussion with Amazon, we decided to do what we call a cloud first policy. And we decided that we were going to move the government work loads to the cloud. We were going to actually, challenge any government institution, why they're not using the cloud. And it's been phenomenal. Now, it's been phenomenal from a cost saving perspective, which we want to pass on to the citizens. So for the citizens, for be for them to be able to get government services on their mobile phone, to pay their electricity bill to do get their license. And the government, if it reduces its cost can pass that on to that citizen. But more importantly, it's going to allow innovation to take place in the government. We're going to be able to have our education data in the Ministry of Education, communicate with our labor data. We're going to be able to do education in a new way. So it is going to unleash innovation in the government and the way it offers its services. We think it's going to do the same for businesses and for startups. >> We didn't get a chance to film it yesterday, but we were part of with Teresa Carlson's team with you and your startup Bahrain. All the entrepreneurs from the community, very vibrant, talking General Keith Alexander was there, knows a thing or two about cyber and then we had an entrepreneur visionary in John Wood, who's been in the business, but he's also a visionary. He made a comment and you reacted to that around the impact of the AWS region coming here. He was almost like, there's a storm of innovation coming and you align with that. You said, you kind of reacted at dinner last night about it. What is your feeling of what this will bring to the region? 'Cause Amazon has proven that when they put a region out, there's unexpected consequences sometimes like things you might not see. What are you expecting for the impact. For AWS? >> I think it's a game changer. I mean, you said data is the new oil. If we think back to the 30s, this country was the first country to discover oil. When, at that time, Texaco and So Cal started a refinery and started extracting oil, all the industries that developed around it refineries, oilfield engineering, oilfield services. You know, I think we're seeing we're going to see that in the new digital economy with data. Amazon coming here is going to do several things. Number one, it's going to unleash this innovation, it's going to reduce latency for people who are storing data looking to retrieve that. It's going to create new jobs, data scientists. We estimate 10,000 jobs are going to come on the back of this, that is going to be for the entire region. And I get it, I emphasize this is going to be a game changer, not just for the kingdom of Bahrain, but for the entire Middle East. We're already seeing startups who are getting educated about what the cloud can do for them, and the scale, the scale that they can reach by going to the cloud early on, we've seen them in the United States. Why can't this region see a unicorn that is able to be a global leader, just by virtue of, going to the cloud and learning from Amazon. And Amazon, AWS shares our passion for the startup community and what this can do for that. >> I want to get to the what's going to attract business to come into Bahrain. But first about what startup impact Amazon has proven and I heard a comment from one of the startups, Amazon Web Services is for big companies. Whoa, whoa, yeah, big companies are using Amazon now, but they won, they were built on the backs of startups. When Amazon first started and startups still use Amazon. It is a dream for a startup, the cost to get a company up off the ground, the speed of innovation with Amazon has proven startups, this is a big opportunity. And so this is going to impact how you set policy and get out of the way entrepreneurs, do you help them? As you look at policy, is that almost a tough decision on your part? 'Cause you guys are used to helping entrepreneurs, very entrepreneur friendly, but almost do you get out of their way, do you help them? What's the strategy for the startups? How do you look at this, because if the acceleration comes in and the training kicks in, you're going to see a renaissance of entrepreneurs, >> Right? >> What do you do, get out of their way, help them out? What's that? >> You got to balance it. I think, you can't coddle them. You can't do everything for the entrepreneur, there's got to be that grit, the resilience, that hunger at the entrepreneur. I was an entrepreneur before I took this role, and I think you've really got to have that fire in your belly. So what we want to do is we want to create an ecosystem, but we don't want to spoon feed them. So what we've done is for instance, we launched a $100 million venture capital fund of funds. And we said, the government shouldn't invest in startups but let's create a fund of funds that will invite venture capitalists to base themselves here, but we're not going to tell these venture capitalist how to invest. So each startup has to pitch itself to these venture capitalists and make sure that there's justification for it. We're going to create, you know, training, we're going to create elements, the regulation. We introduced a bankruptcy law this year, that is going to allow people to fail and to restructure. So we're going to put the policy in place. We're going to allow capital to be there, we're going to look at our training and education. But again, it really is down to the entrepreneur, to, so you've got to mix you've got to balance it. You've got to say, the burden is also on you to think about what's the market opportunity. Here is what the country will do, but then the rest is up to you. And I think, we're going to see our young youth in the region. We're doing this because this region is transforming. This region needs to create jobs. There's about a 100 million jobs you need to create in the Middle East over the next couple years. You're not going to be able to create that in the normal way. So we want people to become employers become entrepreneurs, rather than just employees and looking for a nine to five job. So it's integral to the vision of the region. >> Entrepreneurship is the engine of innovation. All right, let's talk about the region. You know, we're first out here so I'm kind of new, fresh eyes and you see Dubai out there, you got Asia, China and all these in Hong Kong and Singapore. So you guys have a unique opportunity. Dubai is kind of like a New York, it's hustle bustle is built out. You guys have this feeling like a Silicon Valley vibe. >> Right? >> It feels very open, very friendly, so you don't have to compete with each other. And New York does things, Silicon Valley does things. So you have this entrepreneurial culture. The key is a global co-creation a connection. How are you going to attract businesses? Because there is demand in the US for domiciling in places outside the United States. There's been a lot of competition. >> Sure. >> So are you prepared for companies to come here work with you? I know you guys are doing a lot of work. What do you say to the folks out there saying, I need to have a presence. Can I domicile in Bahrain? What's it like? What's the opportunities for me to connect into a growing ecosystem around Bahrain? >> So I'd say first of all, on the region, I mean, just like in Asia, just like in the US, you can have multiple hubs. So you know Bahrain will be a hub alongside a Dubai or a Riyadh or a Kuwait and so forth or a Abu Dhabi. And our niche is, as a small country, we're going to be very agile. One of the reasons why Amazon chose Bahrain is because we have a team Bahrain approach. And I, you know, I came from the private sector, when you're talking to General Electric, you're not talking to one department in General Electric, especially if you're a large customer. The whole company's going to rally around you and bring a solution to you as a customer. We're going to do that as a country. So with Amazon we got all the various ministries and we took a team Bahrain approach and we said we're going to solve through the economic development board, we're going to solve for your problem. Mondelez, which chose to locate their $100 million facility in Bahrain, built a facility about 30 soccer pitches, and they did it within a year and a half. We reclaimed land and had the land ready for them. They called it 'cause they make Oreos, they call it turning ocean to Oreos. >> Yeah. >> And so it's that agility that is going to differentiate us. In terms of niche, we're very interested in FinTech. We think we're going to take a leadership position not only regionally, but globally in FinTech. We have exciting announcements that we're going to make in FinTech. It's a small country, we can be nimble, agile, startup friendly, and kind of innovate. And so we're determined to carve a niche in open banking, in crypto currency exchanges, interesting innovation areas that we think we can excel at. >> Cloud computing certainly is a driver, artificial intelligence, obviously clearly. The fodder for entrepreneurship because it allows you to do things with data at a scale with a cloud engine, talk about FinTech and banking you can't ignore blockchain and crypto currency, which is bubble-ish right now, and then was kind of cleaning itself out, sorting itself out, but when that starts to settle and it becomes legitimate in the sense of a global access to digital money, or software defined money. >> Right. >> And data, that could be an integral part. How do you guys look at that? I know that's something that everyone's talking about. People are looking to do token kind of business models and there's really hasn't been any leadership globally at all on. >> Right. >> This is a place people can domicile, here Malta, here, there and there. So how do you guys look at that market, are you thinking about it, are you kicking the tires, what's happening? >> We're looking at FinTech and saying, really, beyond all the logos and all that. We're looking to reduce the friction for a customer doing the simple things. Looking at aggregating your accounts, understanding how you're spending money, looking at how to transfer money, looking at how to raise capital. If we can look at reducing the friction for people around these challenges, these day to day challenges and use our country as a pilot for doing that. Then imagine the potential that once you illustrate the potential here, you could go replicate it elsewhere. So we're very interested in blockchain. So you talk about crypto currencies, I think the real interesting element is the blockchain opportunity in FinTech and beyond. How can you allow the distributed ledger to have multiple applications. We're going to introduce issuing car licensing by a blockchain. Land, real estate transactions via blockchain. In addition to that, we're looking at open banking and allowing open banking to be prevalent here and allowing entrepreneurs to plug in and get access to that data and innovate around that. So that's how we're thinking about innovation in FinTech. >> Really, thanks for coming on and spending the time. I know you're super busy, and thanks for hosting us with theCUBE as part of the Amazon contingent. I give you the final word for the folks watching out there. What should they know about Bahrain that they might not know about it? And how do they engage with you guys? What are you guys doing? How should someone contact you? How do we engage? And what's the secret sauce of the Bahrain plan? >> Well, first of all, I'm going to plug my institution. It's simple, look at bahrainedb.com. It's on the internet. It's going to give you everything you need about what Bahrain. And what I'd say is, this is a small, but you know in this, in today's world, a global world and interconnected world, small is beautiful. So we're a small, forward thinking country. We're in a region that is about $1.5 trillion in terms of just the Gulf Cooperation Council. And here is a great gateway for tapping into that opportunity. We're about 30 minutes from the kingdom of Saudi Arabia which is doing wonderful things with Vision 2030, and you can be in Bahrain accessing that opportunity. And so I'd invite you to come, look at our website and the Bahrainedb will help you translate that kind of opportunity to a reality. >> Khalid, Chief Executive of Economic Development Board in Bahrain. Bold move congratulations. Bold moves have bold payoffs. Big bet with Amazon. >> Thanks, for having me John. >> Thanks for coming on. It's theCUBE here, we're live in Bahrain here at the Ritz Carlton for AWS summit 2018 here in the Middle East. I'm John Furrier. We'll be back with more coverage after this short break. (upbeat music)

(upbeat techno music) >> Live from Bahrain, it's theCUBE. Covering AWS Summit Bahrain. Brought to you by Amazon Web Services. >> Okay welcome back everyone, we are here in Bahrain for exclusive coverage for AWS Summit, part of Amazon's new region being launched here in the Middle East. I'm John Furrier, your host, we have two great guests from C5 Accelerator in Washington D.C., now kicking it out in Bahrain. Hadyah Fathalla, executive director C5 Accelerate and Eva Dimitriadis, good to see you again. >> Thank you. >> Chief operating officer. >> Great to be here. >> Guys, congratulations. Bahrain, D.C. >> The world. >> The world, it's global. >> Thank you, yeah. >> C5 Global. >> It's great to be here. >> It's an exciting time. I mean, I got to ask you Eva, because we had previously met, talked about interviews in D.C. Smart people that known Amazon, because Teresa and Andy Jassy and Jeff Bezos always say, "We're going to be misunderstood for a while." Come on, that's not true. (laughing) A region in this area is going to explode the entrepreneurial scene. What's your take? >> I think that's absolutely true. As we see today at the Summit, there's just such a growing number of entrepreneurs and people who are excited to embrace digital innovation. Three years ago I think the story would have been different but ever since we set up the accelerator here, which was the first once in Bahrain, we've just seen an explosion of interest and not just from Bahrain but from around the GCC. Even start ups from abroad coming and setting up here as their Middle East practice. >> Talk about C5 for a second. Let's take a minute, to explain what you guys do. I jumped ahead a little bit because I'm excited because I just love the entrepreneurial energy. This is a really important thing happening and you guys are playing a role. Talk about C5 Accelerate, what are you guys doin'? What's your business model? Just take a minute to explain as a set up. >> So I'll let Eva talk maybe more about our global operations but really C5 Accelerate a few years ago, branch the business which was largely an investment business, including innovation business and we built Bahrain's first and one the regions, in fact, first cloud enabled accelerators and Bahrain's very first technology accelerator and we did that in partnership with the Economic Development Board, the labor firm Tamkeen and obviously with AWS. Really we benefited from the first mover advantage and the thinking around that was that as Amazon grows it's geographic footprint there is great opportunity to build on the cloud in places like the Middle East where the ecosystem is nascent and there is an amazing first mover advantage. >> Yeah. >> So when we partnered with the government to build this, we realized as we do that, we also need to contribute to building a healthy ecosystem so we built this first accelerator and we have felt-- >> When was that, by the way? >> 2016. >> Great, thank you. >> Actually September marks our two year. We've since graduated five cohorts. We're gearing up for six and we have 34 start ups under our belt. Our first cohort was an all Bahraini cohort and today we're very proud to say that actually half of the start ups that have graduated from this program that is based out of Bahrain are international start ups. That's what we're doing locally. Maybe Eva can tell you a little bit more about what we're doing on a global scale. >> You know and that's important. I want to make sure you got that out about having a bunch of start ups under your belt because when I went to the start up Bahrain session yesterday I was really, really impressed by two things. One is, just the smart energy, the smart people who like understand entrepreneurship. Either went to school for it or have learned through the scar tissue of trial and tribulations like myself. And then the entrepreneurs were there themselves. >> Mm-hmm. >> And you know a healthy entrepreneurial community when they start bitchin' and moanin', they're all chirping away, they're hungry. There's a hungry appetite for entrepreneurship here and creating but it's not fake entrepreneurship. They're really hungry. They're, where's the cash? Where's the capital? So this is really a positive sign. >> It is and I want to add something really quick before Eva jumps in, I think in the past two years what's great about a small ecosystem and the ability to pivot and build fast is you actually see the impact that you can have as an individual and as a company and as a community really on the landscape. But also regionally we've had great collaborative efforts across the GCC and in the region with partners in Saudi and Kuwait and Egypt and in Jordan so I think there's a lot of momentum that we're riding on now, and I think it's a great time to be building in the tech space. >> Well Eva, before you get to your comments. I just want to follow up on the comment around Saudi and different regions because this is a trend that has been happening for a while in Silicon Valley, as you know. People have been leaving Silicon Valley, because it's cost to live there, but people have been putting engineering teams outside of Silicon Valley. I mean, 20 years ago, you only went outside of Silicon Valley or the US to outsource which is not really product development, it's just coding. Then the trend became real engineering and product development, real chops outside. We just had Abdul on from Saudi and he was talking about his shape of his team, the psychology, the make up of the people, it's just not in Saudi Arabia. It's in China, it's all over the world. As developers are working across the world, this is a really big deal. I mean this is the new dynamic. >> Yep. >> Diverse teams, geo located, no borders, this is going to change the political landscape. It's a cultural shift. >> Definitely, I mean I think it's a while before we have here the same secret sauce that exists in Silicon Valley or that has existed there for the past decade or so. But the emphasis on training and upscaling is huge and as we've heard a number of times today, there are so many incentives to do so for free so you can actually learn to code, you can become a certified AWS coder for free in Bahrain. Which is a phenomenal advantage and step up. I mean, no one would pay me to do that in the UK. I think that, along with a number of other initiatives are really going to leap frog the development here. And in terms of what you talk about, the sort of the landscape and geo location, it goes in so many different directions now. There's no single focus so we had a Swiss company last year come and incorporate in Bahrain, and hire developers here to grow their business. It can go in so many different directions. >> Yeah, the winner take all business model is an old business model and now it's everyone's winning so it's a little bit of flattening of the wealth and the opportunities but the pie is getting bigger. >> Yes. >> I think this is the dynamic that cloud and Amazon continues to demonstrate that the Oracles, for instance, of the world, we got to win it all, lock everyone in and we got to own it. That ethos is not, that dog's not hunting, as they say. This is changing the entrepreneurial landscape and the other thing I observe is the younger generation. Leveling up is very easy to them. It's like a video game, right? Leveling up is AI, blockchain, I think one of your companies I talked to, oh we're doing a blockchain implementation. They will eat up the cloud. >> Mm. >> I mean it's going to be like, pretty fast. >> You mentioned-- >> So I'm expecting some accelerated. >> Definitely. I mean you mentioned hungry but they're also fearless. The entrepreneurs that we work with have that perfect mix of a super smart idea and an understanding of a niche sector of the market but also this resilience and recklessness that you need to embrace the opportunity. And all the scary stuff that comes with it. >> And I think adding to that, I think what's great with Amazon coming to Bahrain, with us working across the globe, it's a cross pollination that happens because whether we like it or not, like Eva said, we are not Silicon Valley yet and maybe we don't aspire to be specifically Silicon Valley and we want to build our own unique ecosystem but the lessons learned from the likes of Silicon Valley and London and Singapore and China and everywhere else in the world. >> Yeah. >> Really helps build, not just the skills required but the grit that could otherwise be absent. >> The grit's key, yeah. >> And it can engender the kind of cultural shift that's necessary so you need, so you can develop these robust and resilient qualities that are necessary for a founder. >> Well, that's a really great point. I moved from the east coast in the US to California with my first start up because that's where the action was and I can tell ya, I've been there 20 years and I've been an entrepreneur doing things ever since. And there's a fallacy of trying to emulate Silicon Valley. Every i dotted, t crossed and trying to take the playbook. There's no direct match, however, there's some consistencies in there. That's grit, creativity, openness, capital markets and community and this is something that you guys kind of have in place. And then adapting that to your culture. Now I will say that my impression here is it feels a little bit Silicon Valley because it's a little bit more open and loose. People like to go fast. Fast and loose is the Silicon Valley way. Dubai's a little bit more like New York to me. So I can feel more, valley-like here. I'm not saying that Dubai's bad, I'm just saying it's different cultures. Bigger, its more ... >> There's definitely a lot of agility here. I think one of the other advantages which leads back into what C5 is as a whole, we're primarily an investment business. We have a venture capital fund based in the UK. What we're really looking for is investible, scalable business models where we're de risking the cost of capital with cloud computing because that is how ultimately these start ups scale. Another benefit that we really see in this market is value for money. If you're a start up in Silicon Valley and you get to the stage that some of our start ups get to when they finish their program, your valuation is pretty much always triple what we would see here, so valuation's a very sensitive subject. Our start ups hate talking about it. We structure our deals with them in a way that generally avoids having a valuation. >> It's very easy to do business here. You just keep on increasing the valuation, all the stars will come dropping to your doorstep. >> It's a nuanced area. >> Yeah. >> But that being said, you can get really good value for money businesses but more importantly you're investing in the teams and the entrepreneurs and there's no shortage of that here. >> Let's talk about the ecosystem here and then let's talk about the women in tech because one of the things that blew me away yesterday was Teresa Carlson held a women breakfast and for the first time I got kicked off a table because they wanted to make room for the workshop. >> Sorry about that. (laughing) >> I'm like, wait a minute. This is not an inclusive environment. Sorry, no, we need the table. Okay, I know, I was happy to tap out. But I wasn't expecting that and the energy and the, just really, again, this event, they had to lock the doors for the keynote so there's really a big interest across the board. Talk about the ecosystem and then the women in tech situation. >> So I think the ecosystem is an interesting question because, I mean, we work very collaboratively. Like I said, even though this initiative largely was kind of envisioned by the government and mainly by the Economic Development Board and I'm sure you got a chance to speak to Khalid Humaidan, he might have given you a bit of an idea of how this started off but really the EBD threw this idea of start up Bahrain to the community and said, "Look, you guys lead on it." And it took a little bit of time for the community to figure out what that really means and what it's going to look like but it really made the community and ourselves also think pragmatically about what we want this ecosystem to look like. So even though it's not as mature, like I said, as other ecosystems further away and especially in the west, it is coming together very nicely because it's coming together as a collaborative effort. You see a very good continuous consultative work between private sector, public sector, the start ups and then the other stakeholders, including ourselves, and academia. We still have a long way to go, I think specially in areas and this is something that I always emphasize, is to shift the culture you really need to start at a much younger age so at schools, at universities. We engage with them and are keen to do more on that front but I think we are laying the foundation for what I hope in the next five, 10 years will be a pretty competitive entrepreneurial and start up-- >> It might be sooner. >> Hopefully sooner. >> Yeah. >> I think we have the right recipe now to build a robust ecosystem. >> Yeah, I can say I can attest to that after what I saw yesterday. Your thoughts? >> Yeah I mean our team in Bahrain is 100% Bahraini. I'm based in London, but Hadyah here leads a phenomenal team who are all Bahraini citizens. Being the island that it is, we know everybody so Hadyah's done an excellent job of engaging with everyone from schools to universities to post grads to public sector, private sector. So really all the stakeholders in the ecosystem are engaged and everyone from the oil and gas industry to the finance sphere are thinking about how innovation can advance their businesses so that they don't get left behind at the train station. >> Yeah. >> It's really top of mind and top of agenda which is a very invigorating scenario. I think, going back to some of the initiatives, from bankruptcy laws to having a fintech bay with the Central Bank of Bahrain, there's just so much, like they're constantly pushing the envelope to make this a friendly environment for entrepreneurs to come and do business. >> And I want to add one thing. There's always this question of, does government have a role to drive innovation and create an ecosystem? >> They do. >> I think Bahrain is a good example for others in the region and even beyond to say actually government does have an important role. >> They do. >> If you look at Bahrain, it's government that has been very flexible and nimble in terms of moving to accommodate. Whether it's the new bankruptcy laws or allowing for the fintech sandbox and a cloud first policy and shaping the start up Bahrain. The government has taken the lead on a lot of these initiatives so it's a good example of how there can be a top down approach to building an entrepreneurial landscape but also where the bottom needs to come and meet the top so I think Bahrain a good example. >> Just to reiterate, my observation is that they know how to get things going and sponsor but they're also listening and self aware and even on theCUBE here, we heard comments like, we'll get out of the way. >> Mm-hmm. >> Now that's the difference between good judgment. >> Mm-hmm. >> You know? And, no, no I funded you, I own you, I mean I've seen that in the public sector or, we're going to fund you as an NGO and then I kind of own you so come to my receptions and be my show horse-- >> Mascot. >> Show all of my people how good I am, donating money. So there's a little bit of a balance between enabling. >> Yep. >> But at the end of the day, this is going to be a fast pace and that's where I think the speed, knowing when to get out of the way and letting the community go. I mean, people like speed here. Cars are driving fast, you got a Formula 1 race track up at 14 months. >> They like speed but sometimes things are surprisingly slow. >> Yes. >> So it's incredible that we are where we are. You asked about women in tech and I think there's something there that we're really proud of. C5 globally, 43% of the start up founders that we've supported through our accelerators are women. In terms of diversity, we're thrilled about that statistic. We'd like it be 50%. >> Yep. >> And I think that the Middle East, we're seeing so much hunger from women entrepreneurs and women who want to learn to code to be founders and we want to do everything in our power to enable that. >> Computer science degrees coming out of the university? >> Absolutely. Hadyah here had this fantastic idea a year ago to found what we call C5 Nebula. I'll let Hadyah talk about why we came up with that name and how it relates to our business but this is now a new stream of our business which really it's a membership platform where all women globally are invited to join and we provide education, upscaling, jogs, connectivity, mentorships and through this network we are allowing a complete globalization of the talent and skills that we have. >> Yeah. >> So you can be a student in D.C. wanting to come and volunteer to work for a company here and we will make that match happen. I think it's a very exciting phase for us and we've seen so much demand for this program. Maybe Hadyah can talk about why we came up with this name? >> Yeah, so like Eva said, we, I'm Bahraini, we've always had, we've been lucky to have been pioneering and have work very closely men and have had really equal opportunity but in industries like tech, globally, women's representation is lower than that of men and there are areas where there's still work to be done. >> A lot of work to be done, yeah. >> So last year, actually, with the first AWS Summit, when Teresa was out here, we figured we do a women in tech breakfast. When we were curating that guest list we couldn't find that many women and we didn't know if wasn't that we didn't know them or that they didn't exist and we realized really we need to put together something to bring all the women together and work more closely so we built Nebula, really to, like Eva said, do three things and a little more. One is the connectivity side of things and then the upscaling but also to raise awareness and appreciation. >> What is Nebula? >> What is? >> What is Nebula? >> So Nebula, scientifically it's an astrological, astronomical phenomenon-- >> But it's your network group, is that what it's called? >> It's a platform. >> Okay. >> So it's actually been officially launched three weeks ago, you can go online and visit it and it's a platform that allows you to become a member of Nebula and gives you access to mentorship, to opportunities to upscale and train but also to raise awareness and appreciation for the amazing opportunities for women in the tech space. >> Is there a URL? >> There is a URL, it's-- >> We've been debating what is is today. (laughing) >> It's www.c5nebula.com. >> Okay, I'll put it up, publish it with the video. >> And what it means, it's the Latin word for cloud and it's where stars are born. >> Yeah. It's also, what's important, is it's a compilation of a bunch of different clouds and electrons and it's a mess, it's a bit of a mess but it's a lot of forces working together and I guess the moral of the story is, we can create stars in the space but we all have to work together and it all has to come together to-- >> And it's powerful when you work together. >> Only 10% of VC funding worldwide goes to women founder companies and 1% of that goes to women of color so there's some staggering statistics there. Globally, this is not a Middle East problem, this is globally a real big area of disparity that we're trying to help address. >> Well you guys know our door's open in California and Boston, and certainly the women in tech, we got a big network, we can merge them into the Nebula connect our networks. >> We would love that. >> We would love that. >> We're open and anything you guys have to share with us we love co-creating with the communities, that's what we do at theCUBE. Thanks for coming on and sharing. >> Thanks for having us. >> Thank you, John. It's been a pleasure. >> You got a great mission. Big supporter. C5 Accelerate, they're the ones on the ground, making things happen, gettin' those sparks of entrepreneurship and helping them capture them into one community, create some energy and some momentum and help people create value and also capture the value, that's what it's all about here. You got Amazon Web Services' region in the Middle East, CUBE coverage continues after this short break. (upbeat techno music)

>> Live from Bahrain, it's theCUBE. Covering AWS Summit Bahrain. Brought to you by Amazon Web Services. >> Hello everyone, welcome back to theCUBE's exclusive coverage live here in Bahrain. This is our exclusive coverage of Amazon's new region we're covering. Part of AWS Summit, first time here in the Middle East for theCUBE. We're excited to be here. Next guest is Tala Fakhro, Executive Director of Market and Strategy Intelligence of Bahrain's Economic Development Board, also known as the EDB. >> That's right! >> Great to see you. Thanks for coming on. >> Thanks for having me. >> I've learned so much and it was great to meet you last night and have a conversation around some of the things you are working on. The Economic Development Board is a big part of this digital first, cloud first strategy. >> That's right. >> And Amazon's at the center of it. They're going to drop a region in here. This is really big news and it's certainly got our attention. And I've learned so much about what's happening in the startup community. >> Yes, we are very-- >> You've got a lot going on. What's the impact of the AWS region mean for Bahrain, the region, and the economic development opportunity? >> We took a look at Bahrain, and we decided we are going to have to transform this economy from an oil dependent one into a digital one. It just, it seemed like the right thing to do. And having Amazon here, attracting Amazon, allows us to plant that flag to say we are serious, we want to do this. And we will do what we need to do. We, we work together as a government. You know Bahrain is unique because we can do we can do things really fast when we want to. We built the Formula One Racetrack in 14 months, which is unheard of. And we did the same for Amazon. We engaged with them at every level. It wasn't just let's talk about this plot of land here, or this fiber optic cable there. We had the government engaged in legislation, and regulation and education. Every part of the government was actively pushing for this transaction. >> And I think that's an important point. I want to just amplify and double down on that and talk about it, because I think culturally, Bahrain, what I learned was this is a culture of fast moving, open, friendly but pragmatic people. >> Absolutely. >> And that's Amazon's ethos. >> Absolutely. >> Scale, move fast, and innovate. >> Absolutely. We, we've been a trading nation all our lives since time immemorial, you know. We're a tiny little country in the middle of the map. We were cross-border trading before we knew what that was called. So this is something not unique to us. It is part of our DNA, and we found a good match with Amazon. They wanted all the same things we wanted and they are genuinely interested in making the ecosystem of the countries in which they install their regions better. And we found that to be very attractive for us. >> So I've got to ask you, as Amazon comes in they're expected to have that, this region up and running in the beginning of 2019. >> That's right. >> Which is just right around the corner, so they're running fast, so congratulations. >> Thank you. >> It's the new Formula One Racetrack for cloud computing. What is driving the demand for cloud computing? Because obviously we've seen the history of what's happened in North America with startups. >> That's right. >> And as Amazon goes around the world, there's a growth engine underneath Amazon. What's driving the demand for cloud computing in the region? >> Well, 96% by some measures of our entire economy are startups or SMEs. So you could imagine that the cost savings that Amazon offers is extremely attractive. In addition, the volatility of oil prices has put a big crunch on the government budget and so they are also attracted to the idea of saving some money on the cloud. And the government is a big employer and a big consumer. So they really drive the economy. >> Yeah. >> So in both, it was a win-win for everybody. We are really interested in making sure that our Startup scene is vibrant and is scalable. And cloud is the way to do that. It allows you to use as much as you need and pay for only what you would consume, so it's great. >> And so, Khalid Al Rumaihi, the CEO of the EDB. >> Yes. >> Who's a very good visionary. He has private sector background, super smart. Really enjoyed that conversation. But one of the things that we talked about was we always say in theCUBE and sometimes debate this, but data is the new oil. >> Absolutely. >> Couldn't be more indicative of an oil region, and you mentioned that in moving off the dependence of oil, or getting into a new market like data, data needs refineries as an economic opportunity. So he mentions, Vintech as a big driver for what could be possible in Bahrain as a core competency. When you do your research and your insight and intelligent analysis of the data of what's going on the macro level, is that consistent of what you are seeing that there's a need for this digital refinery, being a center point of innovation? And if so, what does that mean? What is, how should people understand that Bahrain is a small country in a big region? >> It is a small-- >> How do you differentiate? How do you take a leadership opportunity? >> Well, Bahrain is a small country but it is a small country that's rich in one thing. If it's not rich in oil, it's rich in its people. We are bilingual. Many of us are trilingual. We've always been open and outgoing and we've been willing to make partnerships and friends with other nations and other places. So we think that our human capital is coming together with the hard infrastructure that a region will bring. It makes it a, you know, a real good proposition. And it allows for our students, who are, by the way, already starting to be cloud trained. Over 2500 Bahrainis have signed up for cloud training since the program started six months ago. >> Yeah. >> That's a huge proportion given our population. That's a much faster rate than India or China for example. >> Yeah. >> So this shows you how much, how willing we are. You know coding is the new English. We learned English in the 70's so that we could compete globally. Now we are learning coding to do the same thing. >> And that's super important. Let's talk about the human capital side of it, 'cause I think this is a good point that a lot of people overlook. Everyone's now connected with mobile devices, so connectedness is now common. So coding is the new language. Digital is the new culture. How are you guys looking at transforming some of the day-to-day citizen roles? Because now you have opportunities to serve citizens from a government standpoint and to get enable them to be successful. And one of the things that I noticed at the Startup Bahrain sessions I was attending yesterday was the vibrant entrepreneurs. They're opinionated, which I love. 'Cause that's what entrepreneurs are. They're like, come on, let's move faster. Where's the cash? Where's the capital? So the human capital seems to be a big equation here. What are you guys doing to facilitate that? Where are you guys on the progress bar in your mind? Are people coding at a young age? Has it started? Is it, what's, what's the progress? Can you take us through the plan? >> Well we, as I mentioned, for a cloud computing, specifically we already have programs in place. We also have many other initiatives coming up through Udacity, through Carcera, through others. We are bringing them to Bahrain to have the technical skills added to the human capital skill set that we already have. But I think most importantly, we are making it important. We are making it a forefront of the government agenda. You know, we are making it something that is a requirement. And I think that as we set our national economic strategy for the next four years, human capital is a crucial driver for that and it is going to have it's very own chapter with all the recommendations and all the initiatives that we think need to be done in order to increase, not just our stem cell but also our creativity, our entrepreneurship, >> Yeah. >> And all the things that had made us great in the past. >> You know as I was observing also, talking to your CEO about, I've seen people trying to replicate Silicon Valley trying to manufacture innovation in a way or trying to get a momentum. It's really hard. But what you guys I think have done or have here that's hard to do or hard to replicate or manufacture out of thin air is you guys have actually built a community of people. I see the entrepreneurs. I see the support around them through the EDB. You have money? >> We do. >> And you have growth coming. The other stuff's mechanics. How do you get funded? How to do this? How are you looking at that? When you look at the research and you dig into, and sometimes the best move is just let it develop. Get out of the way and let the entrepreneurs develop. How are you guys letting this develop because I won't say that Bahrain has an identity crisis. I think they have an opportunity to set a new identity. >> Absolutely. >> How do you look at that? And how do you guys see that opportunity? How do you talk about it? >> Well, you can't buy innovation. I think we've proven that enough times, that government is no good at making people innovate. But what we can do is make life easier for those who want to innovate. So what we want to do is pave the way. Allow for the opportunities to be there. And then, you know, then it's every man for himself and the free market will compete. We're a very free market oriented entity and government and so all we're going to do is we're going to get out of the way. But we're going to make sure that the path is as clear as we can make it. We are going to make sure that whatever we can do to help, we will. Whether that's bringing somebody like an Amazon here, to have the people here or the Al Waha Fund which is a venture capital fund to fund, which was just launched and which is already invested in. And three or four independently managed >> Yeah. >> Venture capital funds. We feel like these kinds of things, where we're not directly funding but we are encouraging, motivating, helping, that's the role of the government. >> And I also want to just to say to the folks watching, you guys and give you guys some props, you don't just talk it, you walk it. And I think what I noticed in the sessions yesterday and meeting some of the top policy makers and the entrepreneurs was you guys are actually doing the work. >> Oh, we're trying. >> And Teresa Carlson's success in Washington D.C. with Amazon web services really is a testament that if you do the work, the results will pay off. And when Teresa came to Washington DC, Amazon Cloud Computing was like, whoa it'll never work. It is not secure. You know, now they are winning. They are doing extremely well. I've seen the model. Everyone's emulating and moving towards. You guys are doing the work. I see the check boxes. But there's still some work to do. EKYC, other things. >> Yup. >> So congratulations. >> Thank you very much. >> So the question is, what do you got done and what is to do? And what does that mean for people who want to come either work here or collaborate with Bahrain? 'Cause if you check the boxes you're going to be set up. What's the status? >> Well, the first thing we wanted to do was to make sure that the soft infrastructure was there, so we, as a government passed what we call the digital ecosystem package. So that's data protection. That's electronic transactions laws. There's a new law that's in the process that will allow people who are storing data on Amazon's region in Bahrain to bring their own laws with them. So that there are no issues with conflict of laws. >> On the compliance side? >> Exactly. >> Yeah. >> So you know, it's as if they are storing in Saudi or Kuwait. >> Yeah. >> But they are storing here. So these kinds of things, this was the first step. And we've passed a bunch of those laws and we think that they are very important. In addition, as I mentioned, we have the funding situation. We begin to look at that. We hope that with this-- >> That's a hundred million fund of funds. >> That's a hundred million dollars fund to fund. >> Fund to fund, which means that you are going to enable private sector-- >> Correct. >> And professionals to come in. >> Absolutely. People who know what they're doing, who have done it before, in the region and outside of the region, whether it's Silicon Valley or Dubai. They're going to come here and they're going to look at the Bahraini startups, and that gives us the chance to compete on the world stage and shine. And it also gives us the chance to up our game. Once you see the competition, then you can >> Yeah. >> Fix and adjust and do what you need to do. And that's what we want. We want them. We're not going to help spoonfeed them. >> Yeah. >> We're not going to give them charity. This is, you are going to compete because what we dream is that Bahrain will eventually become a global player, and we think we can do that. That's our vision. That's what we want to do, and that's where we are headed. >> So you guys are competitive? >> We have to be. (John laughing) We're a tie, we are the underdog. >> Yeah. >> But sometimes underdogs win. >> You know as I was saying also observing that, we're our first time here with theCUBE in the region. So I was noticing that, you know, we see a lot of events in Dubai. And Dubai is very blown, built, blown up now and is developed. Bahrain feels like Silicon Valley because New York is different than say, the San Francisco Bay area, Silicon Valley. But they don't have to be each other. New York is New York. Hustle, bustle. Silicon Valley is where innovation is. It feels like you guys have that same kind of-- >> We do. >> Vibe here. >> We do, and a rising tide lifts all ships. Where there's good for the Emirates and Saudi, there's also good for Bahrain. It's a region at the end of the day. We're too small to be a player on our own. But one thing I wanted to touch on, you mentioned, that, you know, with the Silicon Valley. The difference between New York and Silicon Valley is everybody knows everybody in Silicon Valley. So if you are an entrepreneur and you have a good idea, you can easily access the people that you need to access. >> Yeah. >> We think Bahrain has that advantage too. And this is-- >> Yeah. >> Clearly demonstrated in the Amazon transaction because you know at the time when we could, we had everyone from His Royal Highness, the Crown Prince on down. If we needed them, they were a phone call away. >> And people are accessible here. They're open. >> They're open. >> They're very friendly. But it's kind of, I won't say no, it's kind of no nonsense in the sense of people just want, get to the point. Right? But it's not in your face like a East Coast New York kind of thing. >> Well, we're not there yet. (John laughing) Give us time. >> All right, so back to the access to capital concept because I think first of all, we're going to open up our doors >> Yes. >> With theCUBE in Silicon Valley for you guys. So very impressive. Consider that an open invitation. But now you're talking about networks. As you built community outside of Bahrain, what are some of the things that you guys are trying to do? What does the research say to do? Is it, is there regions that you see that you need to connect through? Obviously, you want to build some communications with other groups. What's the data show for you guys? What's the sequence of execution? >> So I think what we need to do is we really need to focus on the partners that we have and enhance that relationship. But also we need to look a little bit deeper. So I think India and China are areas of interest for us as well because they are interested in this part of the world, and we need to improve our relationship with Silicon Valley. Not just giving them money. >> Yeah. >> Because everyone wants to give Silicon valley money. But we want to really learn-- >> Yeah. >> And understand what they have done, why it's worked there, why it doesn't work elsewhere, and apply some of those lessons here. >> And bring some collaborations, certainly. >> Absolutely. >> Well, people are leaving Silicon Valley and I know that most startups and growing companies have engineering teams all over the world so it's a global economy. >> Absolutely. >> Final question for you as we wrap up. What is going to attract, folks you are, or, let me rephrase that. What should companies know about Bahrain if they want to engage with you guys here and work with you, or domicile here and create a group here? >> Well first of all, they should know that they don't need to involve anyone else because they can come in and set up on their own. 100% foreign ownership is something that we have here. Where it's a very liberal economy. It's a great place to live. and that sounds facetious but it's actually really important because talent is the crucial component of every success for these companies. And people like to live here. People enjoy it. I think you'll find a welcoming environment. You'll find an environment where if you have an issue, you can raise it to the highest level very easily. >> Got it. >> And EDB is here to help with that. >> Well Tala, thank you coming on. >> Thank you. >> Tala Fakhro, Executive Director of the Bahrain Economic Development Board, the EDB. They have a website. You can engage them obviously doing great things. This is the calm before the storm. As Amazon Web Services Region gets up and running, we expect to see a lot of growth and unexpected things. >> Yeah. >> Unexpected, unintended consequences. Be careful what you wish for, Right? >> Well. >> I mean, it's coming. >> It's coming and we're waiting. >> Thanks for joining us. >> Thank you so much. >> I'm John Furrier with theCUBE. You can reach me at @furrier on Twitter. Bringing you all the action here in Bahrain for our exclusive coverage of the Amazon's new region in the area here in Bahrain and through the Middle East. Thanks for watching. Stay with us for more live coverage here at the Ritz Carlton for AWS summit in Bahrain 2018. We'll be right back. (bright music)

live from Las Vegas Nevada it's the cute covering knowledge 15 brought to you by service now hey welcome back everyone we are here live for day two of wall-to-wall coverage getting down to the end of the day here live for the cube at servicenow knowledge 15 hashtag no 15 join the conversation on crowd chat / no 15 this is the cube our flagship program out to the events and I strike a super low noise I'm John furrier mykos Dave vellante arnessk as a steve bates principle cio advisory at kpmg he runs the global technology business management practice welcome to the cube thanks for having me good to be here we could probably talk for a now or on just a couple different awesome use cases but the digital transformation is a buzzword being promoted by all the top analysts it certainly chums the water and in the mind of sea level suites are we you know Apple we Apple I want to be like Facebook like Google I want to be like that i want to be i got to be digital everywhere all formats all channels get some all hot and bothered end of the day rubber hits the road you guys are in this business with technology business management tvm yep what is that what is this going on here help explain the dynamic teen those two well one's a buzzword one's kind of a practice what's going on with this trend so let's take a step back and look at the method of how we run IT right the paradigm of traditionally running IT as a utility that quiet silent automated environment where you're trying to push down costs to the lowest possible level right digital transformation is going to blows that out of the water right it's no longer about an access to you know a single set of services that you know you have to go through a function to get right technology has been largely democratized and is accessible to everyone so how do you allow that to be how do you get transparency into what's important right how do I invest in the right things if I can just go by services with my credit card how does the CIO get their hands around with the right things are digital accelerates that so much more right no longer we bound to a data center no longer we bound to just a set of applications you need a way to manage your business of IT that's what tbm is trying to do establishing the tools and processes and credibility to allow you to do that so for all its cloud buffs out there we we've been calling that shadow IT that's the term being kicked around playing in the shadows going behind boss's back putting some stuff up on Amazon getting your hands slap then say wait we should do that across the whole company yeah that's kind of what's happening yeah and it's been a shadow IT isn't necessarily a bad thing right sorry exactly didn't a penalty buckle get back out here and implement this was a company-wide right so it's when you use tv-am as the method to manage your business it's to be able to say I want transparency into what we're using regardless of harden it put some practice and play so take us through some examples of top of your head where you've seen this in action what's the platform architectures look like what are the use cases I mean it's hard to rip and replace oh for sure we're so how do you how do you guys look at that and what is an example yeah so if you could start with the fundamentals which is removing the black box around IT right this is about getting transparency into who's using what in the estate all right so an example of the most of our clients start with is the use case of I have no idea how much we spend on i.t it's shocking i know we all we all are surprised about that even seventy percent is for operations what's the number exactly so that that beginning use case usually doesn't come from just the cio that really is typically coming the CFO and so our engagement as often with a CFO or someone in the finance organization saying i need transparency to understanding what we're consuming who's using it and are we actually spending money on the right thing so they know there's you know what they're spending at the top line or not necessarily because of shadow IT correct okay federer so TC oh there's the entire concept of total cost of ownership no I oh forget it but the Bennett but they know what the IT department is spending they know what's budgeted okay that's a capital budget and then there's this other stuff that goes on the career I don't have a handle on and so when you see that that always increasing cost of IT year over year and over year you can tie that to all wise why is it going up you know no one wants to but that's the old paradigm right what you want to say when you're do something with digital disruption is we want more technology alright we want them we want to actually turn that into our differentiator so how do we use more technology while driving down the cost on things we don't care about how do we how do we do it so that's the use of the original use case is always around transparency what you do with that transparency the actions you take that's interesting that's what's next and that's where you're talking around so if I want to reintroduce an entire way of doing our virtualization structure well I know now how much we spend on it I know who's using it I know what applications and services its links to and I now can make a decision a smart decision prior to investing in this what the value is yeah well it's the second third fourth and fifth thing that you just said yes those are the really hard things I mean relatively easy to find out at least what's being spent and that's hard but what applications are supported what's business processes is recorded what value yes is it bringing to my organization well that's where you guys come in that's the whole point it's this is about a value play and making decisions and on what you're going to invest and linking it to value as opposed to cost cost is a component of value but it's not the interesting part right you're only as good as the day you can get so how about the data impact cuz you know running IT as a business you need the data so that's where you guys can explain that get the data right how does the data get into the system that's something that I'm a little fuzzy on let's let's start with the premise that this entire thing or any ideas a business is built on credibility right and IT typically has very little credibility because they don't have good data or the data that they do have they can't defend right so how we start with it is with a fact-based conversation rings we do a bottoms-up model that will typically pull from in the ServiceNow case we're pulling from a CMD be a hardware asset management software asset management will pull in contracts will pull in to help desk tickets any information that helps inform us on what the IT estate really looks like and who's using those resources the the data is in service now the data is resident so it's a trusted source right for organizations who do not have a trusted source like for those who don't have a configuration management those that aren't using a service now it's incredibly difficult this disparate universe of data that's all garbage and enriched and manual what we do is we come in and we standardize that and we create trusted sources that can be certified and dependable and that's where you start yeah because I I see why you guys are needed because even if you have a cmdb even if you have service now you might know what all your hardware is but you don't know what apps are necessarily running on that hard way you don't know what business processes they support you don't know what your dependencies are you don't know what the users are you don't know the value of those users I mean that's a complicated situation and so how do you resolve that we enter with what we have in our service hierarchy right so you typically find an IT hierarchy that rolls up infrastructure to some level of IT towers that allow us to see well here's kind of what the operating the OS layer is there's maybe some middleware but organizations usually stop at that layer our model comes in and we built a whole stack we start with for the bottom up and the top down at the same time yeah there we go for business capabilities down to business services from business services to IT services and IT services into capabilities all the way down the stack that for us is an architectural blueprint that then you start running your organization off of its service oriented and then you can look at what Apple you look at the application portfolio and sort of chunks or sweets and then you've got granular yeah there's there's so many different slices you can take so let's just say you're at a application portfolio manager their common pretty common role but you want to know let's say one of your use cases and allow no rationalize my application is very common all right so how do i do that i can look at if I find one lens if I wants to look at licensing okay that's fine I can look at duplicate licenses out there but what do I want to see if I what's the ideal infrastructure to ride this upon able to get the whole stack from standardized my platform on the infrastructure to the application application portfolio managers should know that they shouldn't just be the apps layer it should manage the whole stack what if i want to know though the applications that are tied to a service a business service I can't get transparency of that there's no certain there's no technology today that just simply roles that off the show you can't just do an automated audit right exactly that's what that's what we're doing right is we're building that layer that intelligence layer on platforms like service now that allows you to get transparency from a business service which is a language you and I would use as consumers down to a technology service which IT and infrastructure and applications people okay so now everything we talked about is is challenging especially in organizations that don't have a clue which is the vast majority of organization don't have this data you know built and mapped out yep the hardest part still yet is to me if I'm going to make a decision to sunset applications and retire applications and rationalize my portfolio I want to make it on a value-based you know decision so how do you deal with that is you have a scoring methodology or some kind of balanced scorecard or other KPMG secret sauce or tons of KPMG hey no i would say that there's it's built on three things we tried always tie back to existing business metrics so you know don't create new IT metrics to prove value values already been declared by the business by the metrics they run the business by right so never simple stuff revenue exactly profit customer experience wouldn't you know however want to try that we look at time when we're building a portfolio services we're looking to tie those investments those technology investments directly to those metrics all right so you understand that if this portfolio of applications critical fits your CRM system if it is critical to delivering this revenue we are going to prioritize that is business credit and your codifying that as that tribal knowledge are codifying it based upon the people who know the business and then you're you've got a process to say okay now let's put that into the system correct we come in with a framework that we thinks eighty percent correct and that that twenty percent of enrichment that the business done we think that accelerates the process of getting to the value statement as opposed to what is all the linkages between my applications and this is a great business because that's our that's an organic thing it's always change it always in there so you gotta pee well okay so what happens when it changes how do I manage that so you're talking full lifecycle processes that's why this is a de tbm is a framework under which you manage your business so it's less about a service and it's more about almost an operator you gotta cook even you got a partner you're in the books your full forensic it's a full position but if i'ma see I don't say okay Steve I want you to teach me how to fish yep I don't want you to fish for me you're not gonna say no that's exactly so transfer n decision transfer knowledge transfer so there's there's extremely low value for us to continue to come back and do this as a project this isn't a project to not an outsourcing project correct you guys just say here's you been transformed you open your way and have a good business so good time to go grass all I got it I got and so when do you get the call you know man I my rooms around fire finally the second rooms burn like oh heck yeah I mean I'm gonna be proactive works really good right now I want you to come in and do an audit I mean is there a catalyst give me an example oh so pattern you got the name names or just give us a the consistent theme you're seeing well we often house is on fire breach something's going on shadow ID what are the new use cases well we often get called when there's someone standing outside a pile of rubble that used to be their home that is smoldering fortunately it's already dead we'd like okay we'd like to get past that listen I just started a new job my old places burn to the ground no I honestly I think that it comes back to the drivers are an organization is either getting challenged on the value of that of the IT dollar and it's and it is a reactive stance it's CIO is being beat up repeatedly and their credibility is gone see if typically the CFO or the actual consumers so you'll find that you know an enterprise CIO is getting hammered by the business unit CIO soon to which he is selling common backbone services as an example when when the equation comes down to cost that is always the first point the best organizations got past cost a while ago right that's the kind of drain that swamp and there's not a lot you can do there's not a lot of levers so you start talking about value and that's where organisms like it's like corporate kangaroo court yes get warring factions CIO saying no no we're doing our best for peddling as we can is their fault they didn't give us the requirements the CFO's in the middle trying to blow whistles you guys get called in everyone kind of goes to their corner yeah and you figure it out and let's have a fact-based conversation on an emotional conversation but this facts are there but get it set sorted out get the data yeah i hit the facts that that's the hard part is getting actually coming in with a method that de stablished is a fact pattern a base that a model that we can agree on and use a common language you'd be shocked how hard that is for so many organizations because their data is so this pressure point really is market I mean revenues dropping wine or they're not modernize this is now the payback for bad investment decisions yeah you know hey we should have done that or medicine stead of Khalid Saleh dating servers we should have done that and done this you have a client really you know just we discussing us today at one of our breakout sessions of a client who under invested for about ten years in their infrastructure they're paying for those sins now and they but the problem is they don't know how to take the two to three hundred million dollars and refresh money they don't even know where to apply it and and they don't know that they don't it just rip and replace and want to do like for like right they want to take digital disruption as an example I want to say this this is an opportunity for us yeah to remake our land great examples with a guest on open from the beer company on here is fantastic example where 19 years in the business craft beers growing and the winds were perfect they pivoted up a service now and what happened was they got the retail operation odd bistros they have distribution manufacturing so they have now just not just one business in three so they've now grown significantly stone stone brewery so let's use that as an example of the new I TFM application and service now let's say then we're super excited about that about service now entering into the TBM supplier ecosystem in this space that's a big move because service nails that really the only platform that has all of the data that you want resident to it right as a platform you can just feed it and and by putting this analytics layer around this IT financial management portion of it it accelerates you very quickly past transparency and gets you into the interesting conversations or well what would happen if I got into a new line of business let me model back what would happen if I you know shut down this move to this it gives you I chief it puts IT from a basement organization to full-on in control the master the universe because you had Internet of Things there and mobile right you cut every connected device AKA person yep and system so now you can they can do a lot with that I mean really great position yes hold position in the market absolu stevis it's the cio tag cloud of the stuff he or she has to worry about mobile cloud social security service management etc is pretty complicated matter so why should they be focused on technology business management and are they focused enough on T technology business management is it part of their priority list so I think it has to be most of the organizations that are mid size to large scale enterprises this is simply that though the way to have to shift to be able to meet this they don't think of it think of it this way that there's for every other function in an organization there's a management system all right for the finance group there's an ERP systems the marketing and group there's a sale system right there's there's no such system for IT there's no management framework for IT we have lots of principles we have frameworks like I till & Co so and cobit and on and on and on but there's really no management principles there tbm is kind of an international standard that thousands of companies are adopting that allow especially large-scale complex enterprises to make smart actionable decisions by running IT transparently why big organizations versus small organizations adopt this is exactly what the point you made is we have all of these competing priorities GRC and compliance and I mean you go on and on and on what are you going to spend your time on how do you prioritize what is the language of business language of business is financed right so we teach CIOs how to speak the language of business and sounds a little bit rudimentary but it's truly not when you have speak wallet correct speak follow the dollars and that's what we're doing through TV and that's why so many companies have adopted this principle as the right way to run IT as a business but the tech enablement layer underneath it still very nascent just growing service now entry into it is you know just this year so it's going to be it's what's next in our mind so I got to ask the final question your outlook for service now buying opportunity of course bye bye bye doc took a real hammering on Friday and we kind of busted Frank's chops a little bit about that buddy address and we wanted to get that out there but it's a platform that is really well architected for this agile cloud native cloud born the cloud whatever you want to buzz where you want to call it and be enterprise grace interesting how they backed in from enterprise to now agile right so I mean this is really a unique historic use case for you know vendors right I mean usually oh I'm the big startup but I'm going to go the enterprise all right you go consumer then you go enterprise the interesting here there in the enterprise but now with consumerization of IT kind of happening yep interesting model do you see anything else like this out there I think it's unprecedented frankly I think it's a new model that service now is setting the standard for the platform the design principle that service now has had of being a platform first right and being able to be elastic and extend into non-traditional use cases i think is at the core of why there's so much value vendors it's a very easily accessible you system and it allows you to take the importance of of dead equality workflow analytics and link them in a way that is just simple I think Frank's movement built a new boat that is faster and more agile than the big aircraft carriers that are absolutely device absolute software companies I mean monolithic big book upfront licenses I mean yeah and why why wouldn't you as a consumer why wouldn't you want an agile platform that I could start as a rowboat and build an aircraft carrier and then take it back to a rowboat again why wouldn't I want to have that flexibility like uber okay trade rowboat for business growth let's go by the way battleship modern nukes they have machine and I mean so this is the model by you go create time to value yep in the budget so this is disruptive and innovative like Amazon yes but difference but the enterprise grade but it allows you think of it follows the speed of business it follows the nature of the contractions and expansions of it that that's the model I think going for if you're not enterprise-grade you're going to be meet and struggle to keep up with the change of business and again a platform like a service now allows you to scale and contract and expand into areas where you are comfortable right now it aligns with your strategy yeah so its purpose built for the enterprise it's not purpose-built for a function and I think particularly think that's powerful final question because we talk about digital transformation also i'll throw another word buzzword out there social business IBM used to call the web ebusiness no one uses that term anymore ebusiness that's the web that's the internet but they're also tell muscles which is now transcend it to be more okay social media all this stuff you know buzz more PR PR function maybe some buzz but now you're seeing the touchpoints be more business driven workflow driven so rank mentions email sucks you know that kind of thing my kids kind of figured that out already on their own right so you know they don't use email very much so good phone access is consumer so social business real not real similar to the like way IBM used to call ebusiness early on and what's your outlook for this categorical new direction I get I think it's just the next logical step or the evolution you're like they're like all things the speed of these changes are just compounding but gold again back to your your digital disruption your mobile your mobile platform is just now that piece of glass is is now your foundation for everything right and that's that's just simply a fact the the paradigm again of having a very set of elastic technologies that can get any set of glass that you want and you can transact business with that's fine i think the question any much most people are asking is where's the great user experience associated with that and you'll see I kpmg is a great example we we acquired a company that just focuses on the social experience that giri that you're having through this and and that's that's a science right and it's it's not just making pretty web pages like we did back in the dot-com days you know the spinning logo that wasn't not the point it's around what is the science behind me having a great customer experience which creates brand loyalty on this screen versus this screen versus my TV screen and how do I make that consistent I think you're going to see that more and more than science because it John please yesterday after we had our great bit kind of for the folks out there saw it throwing the water having a lot of fun he said I don't believe how holly was making the big movies and then the kids are watching on this screen so his whole point was old school like hey you have art now in the small screen yeah I think that's that's the technology business management angle to this is you got it you've got to be able to shift and make the right decisions steve bates principal and global director of their technology practice and KPMG the transformation is happening thanks for joining spending time and sharing some great insights here on the cube of course we believe everything you're saying as well so great stuff we write back on our next guest kind of grinding down day two of three days of coverage it's the cube we'll be right back after this short break you