>> Voiceover: Live, from Orlando Florida, it's theCUBE, covering ServiceNow Knowledge17, brought to you by ServiceNow. >> Welcome back, this is Day 3 of ServiceNow Knowledge17, and this is theCUBE, the leader in live tech coverage, where we go out to the events and we extract the signal from the noise. My name is Dave Vellante, and my co-host this week has been Jeff Frick. Not only this week, Jeff, but for the last five years, we've been doing ServiceNow Knowledge events, really getting a sense as to what this company is all about, the evolution of the company, the transformation from really early days of IT, help desk, service management, to now just permeating throughout the enterprise. One of the key things, Jeff, that is notable, and that we saw a couple years ago, I think it was three years ago, when they had the first CreatorCon. In fact, actually, in 2013, I think you did a little sidebar, you went out-- >> It was the Hackathon, we went with Allan Leinwand and checked in on the Hackathon. >> The point I want to make is that we work with these events, we come to these events. We see a lot of large company events, And whether it's Oracle or IBM or HPE, even, in the past. Even EMC with its code initative, they are drooling over developers. They can't get enough developer action, and it's like ServiceNow builds this platform, they create, they open it up with this low-code development kit, essentially, throw their glove in the field, and everybody comes to the game. >> Right, right. >> It's just amazing, and so today, Day 3, is about CreatorCon, and it was hosted by Pat Casey, who's the senior vice president of DevOps, and really the closest, I think, to the Fred Luddy DNA. I mean that's really Pat, you know, Fred Luddy's the founder of the company and sort of the icon of ServiceNow, not here, you know? We're entering a new era and it's really underscored culturally by CreatorCon and Pat Casey. You were in there today. What'd you think? >> Was it Fred termed the citizen developer? I can't remember, I'll have to go back and check the tape, because he definitely talked about low code, and I think he may have been the one that said citizen developer. And it's funny, even with CJ Desai, right, when he was thinking about coming over, what was the first thing he did? He downloaded the app, and wanted to create a little app. So everybody here is a developer, and I think, just looking back at some of the interviews yesterday, Donna from Cox Automotive, she built a prototype app. It was her, one business analyst, and an intern to start a whole new perspective, so I think, you know, they're really trying to make everybody a developer. It's a different way to think, and not just the business analyst, then you have to pass it off to development, but using, again, a simple workflow tool, it's still a workflow tool, to let everybody automate processes. And we were just in the CreatorCon. The other piece that really strikes me, and it strikes me every time I look at my phone now, you know, my phone knows I follow the Warriors, and so it just automatically gives me an update. So it's kind of this soft, a push of AI and machine learning into your day-to-day activity without this heavy overlay. And that's really how they do it effectively, and then that's kind of the basis of what they're doing here with integrating the machine learning into the applications to collect the data, build the models, try to take some of the mundane, mind-numbing work off of your plate and get people doing it, real decisions based on the machine giving you better data. >> It's an incredible dynamic to me, Jeff, because it's not like this company has a blank sheet of paper and says, "Okay, let's go after developers." They have this impassioned community of people, and they just keep rolling out new function, and then of course, ServiceNow has some really killer developers, internally, and so they make those people available to inspire and educate other developers, and so, as they say, this platform just permeates throughout the organization. I mean, it's really hard to do platforms. We've seen it so many times, you know, companies saying, "Okay, we're developing a platform," and the platform gets a little traction and it gets bought out, but this company, ServiceNow, really has a foothold here. So 4,500 people at CreatorCon this year, it's up from 2,000 last year, so another example of just super meteoric growth. Pat Casey, I loved, he put up the, you know, he showed a mainframe. It actually looked like a VAX to me, but anyway he put up a mainframe, and then he showed the H-P-U-X, what did he call it, HPUX? And, oh yeah we thought that was better, and then client server, it kind of worked for a while, and then he put up "August of 1995," and of course I was immediately saying, that's Gabe Ryden. >> Right, right. >> And then he showed the NetScape logo, and that really changed the development paradigm. >> Just as a way to, you know, and I'm sure none of us thought of it, it was just kind of web bulletin boards with pictures now, when you saw NetScape back in the day, but really as an application delivery vehicle, when you think of what browsers have become, it's pretty fascinating. I had a friend who was working on Chrome, and they described it as kind of an OS in a browser, and I'm like, who would want an OS in a browser? Well, now we're basically here. It's like the old Sun Ray machine, right? Anytime you log onto your browser, you're basically into everything in your world. Whether it's your phone, your tablet, my computer, your desktop computer. It's pretty fascinating. The other thing that Pat talked about was, you know, these things that we grew up with kind of in our imagination. He talked about flying cars, and then he adjusted it to maybe electronic cars, this vision, and now, you know, electronic cars are here, and Tesla's the highest-selling luxury nameplate out there. But in my old world it was flat TVs. The Jetsons had flat TVs. The concept of a flat TV was completely bizarre, and I remember seeing the first one in Chicago, at the Consumer Electronics show. It was like nine inches, you had to have secret passes to get back to see it, but now look what happened. I can't help but think of a Mar's Law, Dave, and he's Gartner's Trough of Disillusionment. I like a Mar's Law better, which is we overestimate the impact in the short term, but way underestimate the impact in the long term. Look at flat screens now, compared to, well, it didn't even exist now. And that's going to happen in AI, it's going to happen in machine learning, and in a very short period of time, especially with the advances in compute-store, networking, cloud, speed of networks, IOT, it's going to be a phenomenal amount of horsepower driving your interaction with all these various objects. >> Look at even the dot-com, you know, how overhyped that was, when really it was underhyped. >> Jeff: Right, in the long term. >> So, the other thing I loved, we've been talking about data for quite some time, and every time we came to a Knowledge show, we'd say, is there a big data angle here? Eh, well kind of, and it's really now coming into focus what the machine learning and AI and big data angle is, and Pat threw up a really nice infographic. He went back to 1969, he gave some interesting stats that I wasn't aware of. I knew the 2k, the moon landing was done on a computer with 2k of memory, that I knew. What I did not know is that it had two programs: one for docking and one for landing, and there wasn't enough memory on the computer to have both programs, so they had to reprogram the computer after the dock. >> Not even reload, right? They couldn't just put the USB stick into it. >> They had the code, which is kind of cool. So that was 2k, he had an intern download the 1982 census, and it was 182 megabytes. And then the human genome project was 53 gigabytes, which he's right, it wouldn't have fit on your previous iPhone, but it will fit on this one. And then, I didn't know this stat, the spell-checker in all of our phones and the red lines and so forth, the back end of that, that's sitting in the cloud, is four terabytes. So you're seeing this explosion of data. These are just some simple examples. So this company, again, it's not just starting from scratch saying, here's some kind of machine learning tool, apply it. What they're doing is saying, we're going to build this into the platform, take the existing corpus of data that you have, now what is that corpus of data? It's a bunch of incidents, it's a bunch of categories and people and it's going to autocategorize, for example, all these incidents, on an existing corpus of data. That's not how most people are using machine learning today. What many people are talking about is a use case of real time continuous applications and doing machine learning in real time to try to affect an outcome, which means try to get you to buy something, or try to detect fraud, or whatever it is. Some healthcare outcome, even. Although you'd think healthcare could be some more post process, but essentially that's what ServiceNow is doing. They're using a post-process methodology on top of this corpus of data to add instant value that lives inside of the platform. It's very compelling, simple, and practical in my view. >> And that's the part I love the best, Dave, is simple and practical and delivers immediate results. Allen Leinwand, who we'll have on later and we've had on a number of times, made a mention that the other thing that's very different is now the apps are listening in real time, and they're adjusting what they're doing and rejiggering their algorithm based on stuff that's happening in real time. So it's a different way to think about applications. And just a couple of things I wanted to touch on from yesterday, with some of the guests we had, a great reason we love the show is the number of customers we get is so high. And I was just struck by Donna Woodruff from Cox Automotive, how much she understood innately that it's a platform. Yes, she bought some applications, but she really understood the platform component and was able to drive from it. And the other one I just wanted to touch on was Eresh from Vitas Healthcare, and the impact of mobile. All I could think about when he was talking about was delivery service. Where's my truck, I had my fridge fixed the other day, where's the guys he close called me, and then to apply that to something as powerful as the work they're doing around hospice and to enable that nurse to get to one more stop per day. Wow, what an impact, just by getting on mobile. And the funny part, he said, is some of their older nurses, when they saw the mobile device, said, "I'm done, I'm not doing it anymore. I'd rather schlep around 25 pages of case information and then go back and forth to the hub in between every stop." So again it's this combination of all this power, all this coming to bear along the three horses of compute that are now delivering phenomenal transformation to people that are willing to think of things in a slightly different lens. >> Yeah, and when you look at the problems that ServiceNow is solving, they are in the boring but important category. And that's why I think that this company for a long time sort of flew under the radar, and is still misunderstood. I mean, even CJ, who's basically in charge of all the products, when he was first approached by ServiceNow, he's like "Meh, I don't really know." And then he dug into it and said, "Wow." So a lot of people don't understand it. I talked to a lot of people in the software business, software sales, people that just don't understand the power of what this company does, and I would make a prediction, is that like Salesforce before it, and we've been talking about this for years, how these guys are on a collision course, and they'll say "No, no, no" but very clearly, the power of the platform that Salesforce has, for example, and ServiceNow is replicating, in some way is much much different. Because Salesforce has a lot of bulldogs, sorry, we love it, we use it, but my point is, my prediction is that over time this company is going to become a very well-known company because of the impacts that it's having on the business. It's going from boring but important to, you know, fundamental transformation of organizations. And I tell you, CRM, I even put it up there with ERP. I think that what ServiceNow is doing is as big as the ERP trend, potentially bigger when you put in all the IOT stuff and the machine learning capabilities and the like with what is a relatively modern platform. >> Well, we're in an attention game, right? On the consumer side it's about attention. The thing that people have the least amount of anymore is time, so how do you get their attention? Do they spend their time on Facebook, Instagram, Snapchat, watching TV, looking at YouTube videos? Watch your kids. How do they spend those hours of their day? On the work side, what screen are you interacting with in your day? Are you in Salesforce all day? Are you in email all day? Are you in Salesforce all day? Are you in Marketo all day? That's where the competition is going to come. And there's only going to be two or three primary applications in which you engage and get work done, and they're making a hard play to say, "We are the application that we want basically in your face, that you're using to get stuff done all day long." >> One of the things, too, I wonder, you always wonder, is think about blind spots to a company like this. They're on this amazing ascendancy. What could come in and disrupt ServiceNow? And you think about the millenials, there's no question that ServiceNow is on to the new way to work. I call it the new way to work, I don't think they use that term. And the millenials are going to come in, and they don't want to use email. They're going to be much more open to adopting a platform. Now, is that platform going to be something like ServiceNow or is it going to be too boring but important? Are they going to do something more like Facebook? My feeling is this is enterprise, and as we talked about yesterday, is it possible that enterprise could actually begin adopting a lot of these consumer-like interfaces and user experiences and leapfrog in some regards because of the use of AI and the enterprise nature and the security capabilities that a company like this can bring? I don't know, maybe that's a stretch, but the gap between consumer and enterprise has to close. It is closing, and I think it will continue to close. >> I think it's the automation piece, to automate themselves out of their customer base. As more and more things are automated, there's going to be less and less and less people looking at the screen to do fewer tasks in terms of just an in. Blind spots always come where you're not looking, that's what's going to hit them, but certainly as more and more of this mundane stuff can be automated, if they can actually execute their vision so these autocategorization and autorouting and things are getting solved before they get to a customer service agent, happen, then their C-base licenses, but that's why they're trying to find other places to go. Facilities management, HR management, integration on the human connection across multiple applications, and to even these other systems, like we've heard about on the HR side, etc. So, I think that's, as the nature of work changes, what will people be doing with their work, or are they just going to be getting assigned tasks to go execute what the machines can't do? It's going to be interesting to watch it evolve. >> Well, and then coming back to the top of this segment, the developers, and that's really where the innovation occurs. The developer ecosystem here continues to grow. The importance of developers is very well understood. We've seen it previously with companies like Microsoft. We see all the big enterprise companies trying to appeal to the developer community. Certainly Amazon, Google, having great, very strong developer ecosystems, Apple as well, Facebook, and so forth. Enterprise guys continue to struggle, frankly, in that regard, and IBM's done a good job with Bluemix, but it's been a real heavy lift for IBM, HP. We've talked to, from Kadifa to all their software execs, and they just never were able to figure it out. Oracle kind of lost its developer edge, despite the fact that it owns Java now, and it's trying to get that back, whereas, as they say, ServiceNow just says, "Hey, let's have a game," and they throw their glove in the field and boom, everybody shows up. >> Think of the focus of a SaaS software company, or even like an Amazon, AWS, right? Everyone here in the company is working on platforms and derivative products from that platform. They don't have this hardware group, that hardware group, this software group, that software group. It's a single application at the end of the day. Salesforce is a single application at the end of the day, work day, single application at the end of the day. AWS, infrastructure for customers at the end of the day. So I think that gives them a huge advantage in terms of focus, everybody going in the same direction, and ability to execute. >> Everybody talks about platform as a service, and it's really, a lot of people say that whole market's collapsing. It's IaaS+, think Amazon, and it's SaaS-, think Salesforce and ServiceNow. All right, we've got to wrap. Keep it right there, buddy. We'll be back with our next guest at theCUBE, we're live, Day 3 from Knowledge17. We're right back. (upbeat music)

>> Announcer: Live, from Orlando, Florida, it's theCUBE, covering ServiceNow Knowledge17. Brought to you by ServiceNow. >> We're back. This is Dave Vellante with Jeff Frick. Chris Bedi is here, he's the CIO of ServiceNow. Chris, good to see you again. >> Good to see you as well. >> Yeah, so, lot going on this week, obviously. You said you're getting pulled in a million different directions. One of those, of course, is the CIO event, CIO Decisions, it's something you guys host every year. I had the pleasure of attending parts of it last year. Listened to Robert Gates and some other folks, which was great. What's happened this year over there? >> So, CIO Decisions, it's really where we bring together our forward thinking executives. We keep it intimate, about a hundred, because really it's about the dialogue. Us all learning from each other. It really doesn't matter, the industry, I think we're all after the same things, which is driving higher levels of automation, increase the pace of doing business, and innovating at our companies. So we had Andrew McAfee, MIT research scientist, really helping push the boundaries in our imagination on where machine learning and predictive analytics could go. And then we had Daniel Pink talking about his latest book, To Sell is Human. And really as CIOs, we often find ourselves selling new concepts, new business models, new processes, new analytics, new ways of thinking about things. And so, really trying to help, call it exercise, our selling muscle, if you will. Because we have to sell across, up, down, and within our own teams, and that is a big part of the job. Because as we move into this new era, I think the biggest constraint is actually between our own ears. Our inability to imagine a future where machines are making more decisions than humans, platforms are doing more work on behalf of humans. Intellectually, we know we're headed there, but he really helped to bring it home. >> Well, you know, it's interesting, we talk about selling and the CIOs. Typically IT people aren't known as sales people, although a couple years ago I remember at one of the Knowledges, Frank Slootman sort of challenged the CIO to become really more business people, and he predicted that more business people would become CIOs. So, do you consider yourself a sales person? >> I do. Selling people on a vision, a concept, the promise of automation. You know, technology, people fear it, right? You know, when you're automating people's work the fear and the uncertainty endowed, or what I call the organizational anti-bodies, start to come out. So you have to bust through that, and a large part of that is selling people on a promise of a better future. But, it's got to be real. It's got to be tied to real business outcomes with numbers. It can't be just a bunch of PowerPoint slides. >> So we always like to take the messaging from the main tent and then test it with the practitioners, and this year there's this sort of overall theme of working at lightspeed, you and I have talked about this, how does that resonate with CIOs and how do you put meaning behind that? 'Cause, you know, working at lightspeed, it's like, ooh that sounds good, but how do you put meat on that bone? >> So, the way I think about working at lightspeed is three dimensions, velocity, intelligence, and experience. And velocity is how fast is your company operating? I read a study that said 40% of Fortune 500 companies are going to disappear in the next 10 years. That's almost half, right? But I think what's going to separate the winners from the losers is the pace at which they can adapt and transform. And, with every business process being powered by IT platforms, I think CIOs and IT are uniquely positioned to explicitly declare ownership of that metric and drive it forward. So velocity, hugely important. Intelligence. Evolving from the static dashboards we know today, to real time insights delivered in context that actually help the human make decisions. And, BI in analytics as we know it today, needs to evolve into a recommendation engine, 'cause why do we develop BI in analytics? To make decisions, right? So why can't the platform, and it can, is the short answer, with the ability to rapidly correlate variables and recognize complex patterns, give recommendations to the humans, and I would argue, take it a step further, make decisions for the humans. ServiceNow did a study that said 70% of CIOs believe machines will make more accurate decisions than humans, now we just got to get the other 30% there. And then on experience, I think the right experience changes our behavior. I think we in IT need to be in the business of creating insanely great customer and employee experiences. Too often we lead with the goal of cost reduction or efficiency, and I think that's okay, but if we lead with the goal of creating great experiences, the costs and the inefficiencies will naturally drop out. You can't have a great experience and have it be clunky and slow, it's just impossible. >> And it's interesting on the experience because the changing behavior is the hardest part of the whole equation. And I always think back to kind of getting people off an old solution. People used to say, for start ups, you got to be 10x better or 1/10th the cost. 2x, 3x is not enough to get people to make the shift. And so to get the person to engage with the platform as opposed to firing off the text, or firing off an email, or picking up the phone, it's got to be significantly better in terms of the return on their investment. So now they get that positive feedback loop and, ah, this is a much better way to get work done. >> It has to. And we can't, you know, bring down the management hammer and force people to do things. It's just not the way, you know, people work. And very simple example of an experience driving the right behavioral outcome, so ServiceNow is a software company, very important for us to file patents. The process we had was clunky and cumbersome. You know, we're not perfect at ServiceNow either. So we re-imagined that process, made it a mobile first experience built on our platform, of course. But by simply doing that, there was no management edict, you have to, no coercion, if you will, we saw an 83% increase in the number of patent applications filed by the engineers. So the right experience can absolutely give you the right desired economic behavior. >> You talked about 70% of CIOs believe that machines will make better decisions than humans. We also talked about Andrew McAfee, who wrote a book with Eric Brynjolfsson. And in that book, The Second Machine Age, they talked about that the greatest chess player in the world, when the supercomputer beat Garry Kasparov, he actually created this contest and they beat the supercomputer with a combination of man and other supercomputers. So do you see it as machine, sort of, intelligence augmenting human intelligence, or do you actually see it as machines are going to take over most of the decisions. >> So, I actually think they are going to start to take over some basic decision making. The more complex ones, the human brain, plus a machine, is still a more, you know, advanced, right? Where it's better suited to make that decision. But I also think we need to challenge ourselves in what we call a decision. I think a lot of times, what we call a decision, it's not a decision. We're coming to the same conclusion over and over and over again, so if a computer looked at it, it's an algorithm. But in our brains, we think a human has to be involved and touch it. So I think it's a little bit, it'll challenge us to redefine what's actually a decision which is complex and nuanced, versus we're really doing the same thing over and over again. >> Right, and you're saying the algorithm is a pattern that repeats itself and leads to an action that a machine can do. >> Yeah. >> It doesn't require intuition >> And we don't call that a decision anymore. >> Right, right. So, in thinking about you gave us sort of the dimensions of lightspeed, what are some of the new metrics that will emerge as a result of this thinking? >> Yeah, I don't think any of the old metrics go away. I'll talk about a few. You know, in lightspeed, working at lightspeed, we need to start measuring, for one, back on that velocity vector, what is the percentage of processes in your company that have a cycle time of zero, or near zero. Meaning it just happens instantaneously. We can think of loads of examples in our consumer life. Calling a car with Uber, there's no cycle time on that process, right? So looking at what percentage of your processes have a cycle time of zero. How much work are you moving to the machines? What percentage of the work is the platform proactively executing for you? Meaning it just happens. I also think in an IT context of percentage of self healing events, where the service never goes down because it's resilient enough and you have enough automation and intelligence. But there are events, but the infrastructure just heals itself. And I think, you know, IT itself, we've long looked at IT as a percentage of revenue. I think with all of the automation and cost savings and efficiencies we drive throughout the enterprise, we need to be looking at IT as a margin contribution vehicle. And when we change that conversation, and start measuring ourselves in terms of margin, I think it changes the whole investment thesis, in IT. >> So that's interesting. Are you measured on margin contribution? >> We're doing that right now. I don't, if an IT organization is waiting for the CFO or CEO to ask them about their margin contribution, they're playing defense. I think IT needs to proactively measure all of it's contributions and express it in terms of margin. 'Cause that's the language the CEO, and COO, and CFO are talking about, so meet them in a language that they understand better. >> So how do you do, I mean, you certainly can create some kind of conceptual value flow. IT supports this sort of business process and this business process drives this amount of revenue or margin. >> So I stay away from revenue, because I think any time IT stands up and says, we're driving revenue, it's really hard. Because there's so many external and internal factors that contribute to that. So we more focus on automation, in terms of hours saved, expressing and dollarizing that. Hard dollars, that we're able to take out of the organization and then bubbling that into an operating margin number. >> Okay, so you sort of use the income statement below the revenue line to guide you and then you fit into that framework. >> Absolutely. >> When you talk to other CIOs about this, do they say, hey, that sounds really interesting, how do I get started on that, or? >> I think it resonates really well, because, again, IT as percentage of revenue is an incredibly incomplete metric to measure our contribution. With everything going digital, you want to pour more money into technology. I mean, studies have shown, and Andrew McAfee talked about this, over the last 50, 100 years, the companies that have thrived have poured more, disproportionally more, into technology and innovation than their competitors. So, if we only measure the cost side of the equation we're doing ourselves a disservice. >> And so, how do you get started on this path, I mean, let's call this path, sort of, what we generally defined as lightspeed, measured on margin, how do you get started on that? >> First step is the hardest. But, it's declaring that your going to do it. So we've come up with a framework, you know, that maps at a process level, at a department level, and at a company level, where are we on this journey to lightspeed? If lightspeed is the finish line, where are we? And I define three stages, manual, automated, cloud, before you get to lightspeed. And then, using those same three dimensions of velocity, intelligence, and experience, to tell you where you are. And, the very first thing we did was baseline all of our business processes, every single one, and mapped it. But once you have it mapped on that framework then you can say, how do we advance the ball to the next level? And, it's not going to magically happen overnight. This is hard work. It's going to happen one process at a time, right? But pretty soon everything starts to get faster and I think things will start to really accelerate. >> When you think about, sort of, architecting IT, at ServiceNow versus some other company, I mean, you come into ServiceNow as the CIO, everything runs on ServiceNow, that is part of the mandate, right? But that's not the mandate at every company, now increasingly may be coming that way in a lot of companies, but how is your experience at ServiceNow differ from the some of the traditional G2000? >> Probably the unique part about being the CIO at ServiceNow is actually really fun, in that I get to be customer zero in that I implement our products before all of our customers. You know, get to sit down with the product managers, discuss real business problems that all of our customers are facing, and hopefully be their voice inside the four walls of service now, and be the strategic partner to the product organization. Now implementing everything, our goal is to be the best possible implementation of ServiceNow on the planet. And that's not just demonstrated by go lives, it's demonstrated by, again, the economic and business outcomes we're deriving from using the platform. So, that part is fun, challenging, and hard work all at the same time. >> So how's Jakarta lookin'? >> Fantastic. We're super excited about everything that's coming out, whether it's the communities on customer service, or our software asset management. That's been a pain, right, for IT organizations for a long time, which is these inbound software audits, from other companies, and you're responding to them and it's a fire drill. In my mind, our software asset management transforms software audits from a once a year, twice a year event, to always-on monitoring, where you're just fixing it the whole time. And it's not an event anymore. I mean, the intelligence that we're baking into the platform now, super exciting around the machine learning and the predictive analytics concepts, we have more analytics than we had before, I mean there's just so much in there, that's just exciting. We're already using it, I can't wait for our customers to get a hold of it. >> Well, CJ this morning threw out a number of 30-plus percent performance improvement. I had said to myself, your saying that with conviction, that's 'cause you guys got to be running it yourselves. >> Yeah, we are. >> What are you seeing there? >> That's not a trivial number, and I think the product teams have done a great job really digging in and makin' sure our platform operates at lightspeed. >> One of the things that Jeff and I have been talking about this week, and really this is your passion here, is adoption, how do you get people to stop using all these other tools like email, and kind of get them to use the system? >> I think, showing them the promise of what it can bring. I think it's different conversations at different levels. I think, too, an operator, someone who's using the email to manage their work, they're hungry for a different solution. Life, working, and email, and managing your business that way, it's hard, right? To a mid-level manager, I think the conversation is maybe about the experience, how consumers of their service will be happier and more satisfied. At executive level, it gets maybe more into some of the economic outcomes, of doing it. Because implementing our platform, you know, you're going to burn some calories doing it, not a lot. Our time to value is really really quick, but still, it's a project and it's initiative and it's got to have an outcome tied to it. >> You know, Chris, as you're saying that it's always tough to be stuck kind of half way. You know, you're kind of on the tool internally and it's great. >> We don't use the word tool. >> Excuse me, not the tool. The app, the platform, actually. But then you still got external people that are coming at you through text, email, et cetera. I mean, is part of the vision, and maybe it's already there, I'm not as familiar with the parts I should be, in terms of enabling kind of that next layer of engagement with that next layer of people outside the four walls, to get more of them in it as well. Because the half-pregnant stage is almost more difficult because you're going back and forth between the two. >> And our customer service product does a lot of that. If you look at what Abhijit showed today, which is fantastic, Communities is another modality to start to interact with people. Certainly, we have Connect, part of our platform, is a collaboration app within the overall platform, so you can chat, just like you would with any consumer app, in terms of chatting capabilities, and that mobile first experience. We're thinking about other modalities too. Should you be able to talk to ServiceNow, just like you talk to Alexa, and converse with ServiceNow, Farrell touched on this a little bit, through natural language, right? We all know it's coming, and it's there, it's just pushing in that direction. >> How about the security piece? You know, Shawn shared this morning, you guys are well over year in now, and he talked about that infamous number of 200 plus days-- >> Chris: Nine months, yeah. >> Yeah, compressing that. Are you seeing that internally in your own? >> We are. We use Shawn's product, we're a happy customer. The vulnerability management, the security incident response, and very very similar results. And just like the customer who was on stage said, go live in Iterate, and that's exactly what we did. Everyone has a vulnerability management tool, like a Qualys, that's feeding in. Bring in all those Qualys alerts, our platform will help you normalize them and just start to reduce the level of chaos for the SOC and IT operations. Then make it better, then drive the automation, so we're seeing very similar benefits. >> How do you manage the upgrade side, we've been asking a lot of customers this week in the upgrade cycle. Some say, ah, I'll do in minus one just to sort of let the thing bake a little bit. You guys are in plus one. How do you manage that in production, though? >> Sure, so we upgrade before our customers, and that's part of our job, right? To make sure we test it out before our customers. But I'll say something in general about enterprise software upgrades, which is, there is a cost to them and the cost is associated with business risk. You want to make sure you're not going to disrupt your business. There is some level of regression testing you just have to do. Now, strategies I think that would be wise are automating as much of that testing as you can, through a testing framework, which we're helping our customers do now. And I think with some legacy platforms, that was incredibly expensive and hard and you could never quite get there. Us being a modern cloud platform, you can actually get there pretty quickly to the point where the 80, 90% of your regression testing is automated and you're doing that last 10 to 20%. 'Cause at the end of the day, IT needs to make sure the enterprise is up and running, that's job number one. But that's a strategy we employ to make upgrades as painless as possible. >> That's got to be compelling to a lot of the customers that you talk to, that notion of being able to automate the upgrade process. >> For sure, it is. >> You're eliminating a lot of time and they count that as money. >> It is money, and automating regression testing, it's a decision and a strategy but the investment pays off very very quickly. >> Dave: So there's an upfront chunk that you have to do to figure out how to make that work? >> Just like anything worth doing. >> Dave: Yeah, right. >> Right? >> Excellent. What's left for you at the show? >> What's left for me? I love interacting with customers. I got to talk with a lot of CIOs at CIO Decisions. I actually enjoy walking through the partner pavilion and meeting a lot of our partners and seeing some of the innovation that their driving on the platform. And then just non-stop, I get ideas all day from meeting with customers. It's so fun. >> Dave: Chris, thanks very much for coming to theCube. >> Thank you. >> We appreciate seeing you again. >> Chris: Good seeing you. >> Alright, keep it right there everybody. Jeff and I will be back with our next guest. This is theCube, we're live from Knowledge17. We'll be right back.

>> Announcer: Live from Orlando, Florida, it's the Cube. Covering Servicenow, Knowledge 17. Brought to you by Servicenow. >> Welcome back to Orlando everybody this is the Cube the leader in live tech coverage, we go out to the events, we extract the signal from the noise, and we are here for our fifth year at Knowledge this is Knowledge 17, Sean Convery's here he's the general manager of the security business unit at Servicenow, an area that I'm very excited about Shawn. Welcome back to the Cube, it's good to see you again. >> It's great to be here, thanks for having me. >> So let's see you guys launched last year at RSA we talked in depth at Servicenow Knowledge about what you guys were doing. You quoted a stat the other day which I thought was pretty substantial at the financial analyst meeting, 1.1 million job shortfall in cyber. That is huge. That's the problem that you're trying to address. >> Well it's unbelievable, I was- you know we were just doing the keynote earlier this morning and I was recounting, most people in security get in it because they have some, you know desire to save the world right? To to- they watched a movie, they read a book, they're really excited and motivated to come in- >> What's was yours, was it comic book, was it- >> It was, uh, War Games with Matthew Broderick, I was 10 years old which totally dates me, movie came out in '83 so nobody has to look it up. (laughing) And you know I was just, you know blown away by this idea of using technology and being able to change things and the trouble is analysts show up to work and they don't have that experience, and nobody's expected, but they're not even close right? They wind up being told okay here's all this potential phishing email, we'd like you to spend 20 minutes on each one trying to figure out if it actually is phishing. And there's 600 messages. So tell me when you're done and I'll give you the next 600 messages. And so it's not motivating >> Not as sexy as War Games. >> It's not as sexy as War Games exactly. And then the CICO's say, well I can't even afford the people who are well trained. So I hire people right out of school, it takes me six months to train them, they're productive for six months, and then they leave for double their salary. So you wind up with a, sort of a 50 percent productivity rate out of you new hires, and it's just, it's just a recipe for for the past right? You know, we need to think more about how we, how we change things. >> So let's sort of remind our audience in terms of security, you're not building firewalls, you're not, you know competing with a lot of the brand name securities like MacAfee or FireEye, or Palo Alto networks, you're complementing them. Talk about where you fit in the security ecosystem. >> Sure. So if you boil down the entire security market, you can really think about protection and detection as the main two areas, so protection think of a firewall, an antivirus, something that stops something bad, and think of detection as uh, I'm going to flag potentially bad things that I think are bad but I'm not to certain that I want to absolutely stop them. And so what that does is it creates a queue of behavior that needs to be analyzed today by humans, right? So this is where the entire SIM market and everything else was created to aggregate all those alerts. So once you've got the alerts, you know awesome, but you've got to sort of walk thought them and process them. So what Servicenow has focused on is the response category. And visualization, aggregation is nice, but will be much better is to provide folks the mechanism to actually respond to what's happening. Both from a vulnerability standpoint, and from an incidence standpoint. And this is really where Servicenow's expertise shines because we know workflow, we know automation, we know about system of action, right? So that's our pedigree and IT frankly is several years ahead of where the security industry is right now until we can leverage that body of expertise not just with Servicenow, but with now all of our partners to help accelerate the transformation for security team. >> So I got to cut right to the chase. So last year we talked about- and of course every time we get a briefing for instance from a security vendor, where- we're given a stat that is on average it takes 200 sometimes you've seen as high as 300 but let's say 200 days to detect an incident then the answer is so buy our prevention, or our detection solution. >> Yeah. >> I asked you last year and I tweeted out, you know a couple days ago is, has Servicenow affected that? Can you affect- I asked you last year, can you affect that, can you compress that timeframe, you said "we think so." Um what kind of progress have you made? >> Sure so you have to remember about that 200 day stat that that is a industry average across all incidents right? So the Ponemon institute pulls this data together once a year, they survey over 300 companies, and they found that I think it's 206 days is the average right now. And so to identify an- a breach, and then another 75 days to contain it. So together it's nine months, which is a frighteningly long period of time. And so what we wanted to do is measure across all of our productions security operations customers what is their average time to identify and time to contain. So it turns out, it's so small we have to convert it to hours. It's 29 hours to identify, 33 hours to contain, which actually is a 160x improvement in identification, and a 50x improvement in containment. And so we're really excited about that. But you know, frankly, I'm not satisfied. You know, I'm still measuring in hours. Granted we've moved from months to hours, but I want it from hours, to minutes, to seconds, and really, you know we can show how we can do that in minutes today with certain types of attacks. But, there's still the long breaches. >> That's a dramatic reduction, you know I know it's, that 206 whatever it is is an average of averages. >> For sure. >> But the delta between what you're seeing and your customer base is not explainable by, oh well the Servicenow customers just happen to be better at it or lucky year, it's clearly an impact that you're having. >> Well sure, let's be you know as honest as we can be here right? The, you know the people who are adopting security operations are forward thinking security customers so you would expect that they're better, right? And so your- there program should already be more mature than the average program. And if you look across those statistics, like 200 and some days, you know that includes four year long breaches, and it also includes companies that frankly don't pay as much attention to security as they should. But even if you factor all of that out, it's still a massive massive difference. >> So if I looked at the bell curve of your customers versus some of the average in that survey, you'd see, the the shift, the lump would shift way to the left, right? >> Correct. Correct. And, and you know we actually have a customer, Ron Wakely from ANP Financial Services out of Australia, who was just up on stage talking about a 60 percent improvement in his vulnerability and response time. So from identifying the vulnerabilities via Quaales, Rapid 7, Tenable, whoever their scanning vendor is, all the way through IT patching, 60 percent faster, and given that, I think it's something like 80 percent of vulnerabi- or 80 percent of attacks, come from existing vulnerabilities, that's big change. >> So do get- you got to level it when you're measuring things and you change the variable that you're measuring, as opposed to the number, right? That means you're doing a good thing. So to go from, from hours to minutes, is it continuous improvement, or are there some big, you know potential challenges that you can see that if you overcome those challenges, those are going to give you some monumental shifts in the performance. >> I, I think we're ready. I think when we come back next year, the numbers will be even better and this is why, so many of our customers started by saying "I have no process at all, I have manual, you know I'm using spreadsheets, and emails, and notebooks, you know, and trying to manage the security incident when it happens." So let me just get to a system of action, let me get to a common place where I can do all of this investigation. And that's where most of our production customers are so if you look across the ones who gave us the 29 hour and the 33 hour set, that really just getting that benefit from having a place for everybody to work together where we're going, but this is already shipping in our product is the ability to automate the investigation, so back to, back to the, you know, the poor 10 year old who didn't get to save the world, you know, now he gets to say, this entire investigation stage is entirely automated. So if I hand an analyst, for example, an infected server, there's 10 steps they need to do before they even make a decision on anything right? They have to get the network connections, get the running processes, compare them to the processes that should be on the system, look up on a reputation site all the ones that are wrong like all these manual steps. We can automate that entire process so that the analyst gets to make the decision, he's sort of presented the data, here's the report, now decide. The analogy I always use is the, the doctor who's sort of rushing down in an ER show, and somebody hands him an MRI or an X-ray and he's looking at it, you know, through the fluorescent, you know, lights as he's walking and he's like "oh" you know "five millileters of" whatever and "do this" right? >> Right. >> That's the way an analyst wants to work right? They want the data so they can decide. >> I tell you this is the classic way that machines help people do better work right? Which we hear about over and over and over. Let the machines do the machine part, collecting all the shitty boring data, um, and then present you know the data to the person to make the decision. >> Absolutely. >> Probably with recommendations as well right? With some weighted average recommendations >> Yeah and this is where it gets really exciting, because the more we start automating these tasks, you know the human still wants to make the decision but as we grow and grow this industry, one of the benefits of us being in a cloud, is we can start to measure what's happening across all of our customers, so when attack X occurs, this is the behavior that most of our customers follow, so now if you're a new customer, we can just say "in your industry, customers like you tend to do this". >> Right. >> Right? And really excited by what our engineering team is starting to put together. >> Do you have a formal, or at some point maybe down the road a formal process where customers can opt in to an aggregation of, you know we're all in this together we're probably going to share our breach data with one another so that we can start to apply a lot more data across properties to come to better resolutions quicker. >> Well we actually announced today something called trusted security circles. So this is a capability to allow all of our customers to share indicators, so when you're investigating an issue, the indicators are something that are called an indicator of compromise, or an IOC, so we can share those indicators between customers, but we can do that in an anonymous way right? And so you know, the analogy I give you is, what do you do when you lose power in your house? Right? You grab the flashlight, you check the breakers, and then you look out the window, because what are you trying to find out? >> Is anybody else out? >> Is anybody else out exactly. So, you can't do that in security, you're all alone, because if you disclose anything, you risk putting your company further in a bad spot right? Cause now it's reputation damage, somebody discloses the information, so now we've been able to allow people to do this anonymously right so it's automatic. I share something with both of you, you only see that I shared if it's relevant, meaning the service now instance found it in your own environment, and then if all three of us are in a trusted circle, when any one of us shares, we know it was one of the three, but we don't know which one. So the company's protected. >> So just anecdotally when I speak to customers, everybody still is spending more on prevention than on detection. And there's a recognition that that has to shift, and it's starting to. Now you're coming in saying, invest in response. Which, remember from our conversation last year is right on I'm super excited about that because I think the recognition must occur at the board room that you are going to get infiltrated it's the response that is going to determine the quality of your security. And you still have to spend on prevention and detection. But as you go to the market, first of all can you affirm or deny that you're seeing that shift from prevention to detection in spending, is it happening sort of fast enough, and then as you go in and advise people to think about spending on responding, what's their reaction? What are you finding is the, are the headwinds and what's the reception like? >> Sure. So you know to answer your first question about protection to detection, I would say that if you look at the mature protection technologies, right they are continuing to innovate, but certainly what you would expect a firewall to do this year, is somewhat what you expected it to do last year. But the detection category really feels like where there's a lot of innovation, right? So you're seeing you know new capabilities on the endpoint side network side, anomol- you're just seeing all sorts of diff- >> Analytics. >> Analytics, absolutely. And so uh, I do see more spent simply because more of these attacks are too, too nasty to stop, right? You sort of have to detect them and do some more analysis before you can make the decision. To your second question about, you know, what's the reception been when we started talking about response. You know, I haven't had a single meeting with a customer where they haven't said, "wow" like "we need that", right? It was very- I've never had anybody go "Well yeah our program is mature, we're fine, we don't need this." Um, the question is always just where do we start? And so we see, you know vulnerability management as one great place to start incident response is another great place to start. We introduced the third way to start, just today as well. We started shipping this new capability called vendor risk management, which actually acknowledges the the, you know we talked about the perimeter list network what five years ago? Something like that, we're saying oh the perimeter's gone, you know, mobile devices, whatever. But there's another perimeter that's been eroding as well, which is the distinction between a corporate network and your vendors and suppliers. And so your vendors and suppliers become massive sources of potential threat if they're not protected. And so the assessment process, you know, there's telcos who have 50,000 vendors. So you think about the exposure of that many companies and the process to figure out, do they have a strong password policy, right? Do they follow the best practices around network security, those kinds of things, we're allowing you to manage that entire process now. >> So you're obviously hunting within the service now customer-based presumably, right? You want to have somebody to have the platform in order to take advantage of your product. >> Sure. >> Um, could you talk about that dynamic, but also other products that you integrate with. What are you getting from the customers, do I do I have this capability- this is who I use for firewall who I use for detection do you integrate them, I'm sure you're getting that a lot. Maybe talk to that. >> Sure sure. So first off, it's important to share that the Servicenow platform as a whole is very easy to integrate with. There's API's throughout the entire system, you know we can very easily parse even emails, we have a lot of customers that you know have an email generated from an alert system, and we can parse out everything in the email and map it right into a structured workflow, so you can kind of move from unstructured email immediately into now it's in service now. But we have 40 vendors that we directly integrate with today and when I was here about a year ago, I think that number was maybe three or two. And so we're up at 40 now, and that really encompasses a lot of the popular products so we can for example, you know, a common use case, we talked about phishing a little bit right? You know, let me process a potential phishing email, pull out the URL, the subject line, all the things that might indicate bad behavior, let me look them up automatically on these public threat sources like Virus Total or Meta Defender, and then if the answer is they don't think it's bad, I can just close the incident right? If they think it's bad, now I can ask the Palo Alto Firewall, are you already blocking this particular URL, and if the Palo Alto Firewall says "yeah I was already blocking it", again you can close the incident. Only the emails that were known to be bad, and your existing perimeter capabilities didn't stop, did you need to involve people. >> I have to ask you, it goes back to the conversation we had with Robert Gates last year, but I felt like Stuxnet was this milestone, where the, the game just got escalated big time. And it went from sort of harmless, sometimes not harmless, really up the level of risk. Because now others, you know the bad guys really dug into what they could do, and it became pretty substantial. I was asking Gates generally about some future warfare in cyber, and he, this is obviously before the whole Russian hacking, but certainly Snowden and Wikileaks and so fourth was around. And he said, "The United States has to be very careful about how it responds. We have maybe many more capabilities but if we show our hand, others are going to see those weapons, and have access to those weapons, cause it's digital." I wonder as a security expert if you could sort of comment on the state of security, the future of that threat generically, or generally. Where do you see that going? >> Well there's a couple of things that come to mind as you're talking. Uh, one is you're right, Stuxnet was an eye opener I think for a lot of people in the industry that that, that these kinds of vulnerabilities are being used for, you know nation state purposes rather than, you know just sort of, uh random bad behavior. So yeah I would go back to what I said earlier and say that, um, we have to take the noise, the mundane off the table. We have to automate that, you're absolutely right. These sort of nation state attackers, if you're at a Global 2000 organization, right your intellectual property is valuable, the data you have about your employees is valuable, right all this information is going to be sought by competitors, by nation states, you have to be able to focus on those kinds of attacks, which back to my kind of War Games analogy, like that's what these people wanted to do, they wanted to find the needle in the haystack, and instead they're focusing on something more basic. And so I think if we can up the game, that changes things. The second, and really interesting thing for me is this challenge around vulnerability, so you talked about Gates saying that he has to be careful sort of how much he tips his hand. I think it was recently disclosed that the NSA had a stockpile of vulnerabilities that they were not disclosing to weaponize themselves. And that's a really paradoxical question right? You know, do you share it so that everybody can be protected including your own people, right? Imagine Acrobat, you find some problem in Acrobat, like well do you use it to exploit the enemy, or do you use it to protect your own environment? >> It's quite a dilemma. >> You- it's a huge dilemma cause you're assuming either they have it or they don't have the same vulnerability and so I'm fascinated by how that whole plays out. Yeah, it's a little frightening. >> And you know, in the land of defense, you think okay United States, you know biggest defense, spends the most money, has the, you know the most, you know, amazing machines whatever. Um, but in cyber, you know you presume that's the case, but you don't really know, I think of high frequency trading, you know, it was a lit of Russian mathmeticians that actually developed that, so clearly other states have, you know smart people that can you know create, you know, dangerous threats. And it's, it's- >> You only have to live once to, that's kind of the defense game. You got to defend them all, you have to bat 1000 on the defense side, or you know, get it and react, from the other guys side, he can just pow pow pow pow pow, you just got to get through once. >> So this is why your strategy of response is such a winner. >> Well this is where it comes back to risk as well right? At the end of the day you're right, you know a determined adversary you know, sorry to break it to everybody at some point is going to be able to find some way to do some damages. The question is how do you quantify the various risks within your organization? How do you focus your energy from a technology perspective, from a people standpoint, on the things that have the most potential to do your organization harm, and then, you know there's just no way people can stop everything unless you, you know unplug. >> And then there's the business. Then there's the business part of it too right? Cause this is like insurance when do you stop buying more insurance, you know? You could always invest more at what point does the investment no longer justify the cost because there's no simple answer. >> Well this is where, uh you know, we talked to chief information security officers all the time who are struggling with the board of directors conversation. How do I actually have an emotional conversation that's not mired in data on how things are going? And today they often have to fall back on stats like you know we process 5 million alerts per day, or we have, you know x number of vulnerabilities. But with security operations what they can do is say things like well my mean time to identify, you know was 42 hours, and this quarter it's 14 hours, and so the dollars you gave me, here's the impact. You know I have 50 critical vulnerabilities last quarter, this quarter I have 70, but only on my mission critical system, so that indicates future need to fund or reprioritize, right? So suddenly now you've got data where you can actually have a meaningful conversation about where things are from a posture prospective. >> These are the assets that we've, you know quantified the value of, these are the ones that were prioritizing the protection on and here's why we came up with that priority, let's look at that and, you know agree. >> Exactly. You know large organizations, I was talking to the CISO of a fortune ten, 50 I guess and he was sharing that it takes 40 percent of their time in incident response is spent tracking down who owns the IP address. 40 percent. So imagine, you spent 40 percent of a, you know 25 hour response time investigating who owns the asset, and then you find out it's a lab system, or it's a spare. You just wasted 40 percent of your time. But if you can instead know, oh this is your finance reporting infrastructure, okay you super high priority, let's focus in on that. So this is where the business service mapping, the CMDB becomes such a differentiator, when it's in the hands of our customers. >> Super important topic Sean Convery, thanks very much for coming back in the cube and, uh great work. Love it. >> It's great to be here, thanks for having me. >> Alright keep it right there everybody we'll be right back with our next guest, this is the Cube, we're live from Servicenow Knowledge 17 in Orlando. We'll be right back.

>> Announcer: Live from Orlando, Florida, it's The Cube. Covering Service Now Knowledge 17. Brought to you by Service Now. >> we're back, welcome to Orlando, everybody, this is Service Now Knowledge 17, #Know17. I'm Dave Vellante with my cohost, Jeff Frick. Dave Wright is here, he's the chief strategy officer of Service Now and a long time Cube friend. Good to see you again, David. >> Good seeing you again, guys. So off the keynote, we were just talking about intelligent automation and what's new in your world. New way to work is really kind of the broader theme here, people are changing the way they work. So what is intelligent automation and how does it fit in? >> So what we did when we built intelligent automation is we wanted to come at it from a different angle. So we didn't want to build a product and then look for a solution that it'd work with, we wanted to go out and speak to people and see what are the challenges that they faced. So what we did was we came up with kind of four key areas where people wanted to be able to improve or do things differently. We wanted the capability to be able to predict when something was going to happen from an event perspective. We wanted to be able to use machine learning to be able to augment it. So to be able to perhaps order, categorize, or provide severity, or in the case of change, provide risk analysis. We wanted to be able to do that at a machine level rather than use a human triage level. Then people were coming back saying we feel we're doing a good job, but we want to understand if we're doing a good job, so that was the concept of expanding out the benchmarks program to include more and more benchmarks for people to see how they compared against their peers. And the final element was people wanted to set themselves performance targets, but then they wanted to understand when am I going to get to that target. So what we have to do then was augment the whole performance analytics suite to be able to do predictive analytics. So they're kind of the four core areas that sit in the intelligent automation engine. We can go into as much detail as you want around them, but it's pretty interesting. >> So help us understand, 'cause I get a little confused about, you know, when I hear something like a big announcement coming up at Jakarta, platform, but then I see bits and pieces hit the various products. Can you maybe set that up for us and help us understand. >> Yeah, so what'll happen is the benchmarking, the predictive analytics capability, and the ability to do predictive service usage, they will all appear in Jakarta. And then the actual ML side where we can do the auto-categorization, that will appear in the Kingston release. So by the end of the year, everything that's shown will be available. >> And it hits the platform and then the modules take advantage of that, is that correct? >> Yes, so what is happening at the moment is the initial use cases have gone through around IT. So it's IT looking at well how do we process events so that we can get a precursor to a bigger issue and predict the bigger issue. How do we categorize when someone comes in with an IT request or an IT incidence, how do we make sure it goes to the right people and gets the right categorization. And then what'll happen over time is we'll be able to use that for the security module, we'll be able to use it for customer service, for human resources, because it's all, in the same way we said, it's all a different type of service, it's exactly the same process to be able to categorize, to prioritize, to put a severity on something. And then more long term, we can use this technology to look at all kinds of different files on the system. >> And when you say IT first, it's ITSM and ITOM, is that right? >> Yes, ITSM and ITOM. >> Okay, and so good, I like this, this is a very practical example of, generally, AI, as people don't really know what it is. You're going to tell us that something's going to break before it breaks is usually the use case here. >> What we realized is because we can now start to look at time series data and analyze time series data, there's a few things we can do. So the first thing is we can do corelation, so we can start to link events together, so people didn't spend ages just trying to fix the symptoms, they could go right down to the disease and say well, this is what's causing everything else. The other thing we could build in because we could understand what normal looked like is we could build an anomaly detection. So normally, an event says hey, this has got a high CPU, or this switch has gone down. Now we could say this just looks weird. We've got an activity that never normally happens to this level, or it never normally happens at this time of day, or we've never seen this before on a Saturday. And we can actually generate an anomaly alert at that point. Now, the anomaly alert might be a precursor to a traditional alert where you might get. I think the example used in the actual keynote was we get a large number of user threads on a system, that's probably a precursor to high CPU. So once we've started to be able to do that correlation, the more and more examples you get, the more you can start to predict. So you can say as soon as I get that precursor, I have a level of confidence of when we're going to see the next event. So now you get a brand new type of incidence, you'll get an incident for a predicted failure. So the system will say I've seen this, this, and this, I'm 86% confident we've got two hours and we're going to lose this service. So the whole concept of this was how do you work at light speed. And my whole challenge was what happens when you do it before it happens, is that beyond light speed, it was very difficult to try and wrap your mind around it. >> The speed of light is too damn slow. >> Yeah, it's too slow, no one's going to wait for it. >> I did get a tweet back where someone said if you fix everything before it happens, we'll get no budget because everyone will say nothing ever happens. >> If a tree falls and nobody's around. And so there's a risk, sort of risk scoring algorithm in there that helps you say okay, this one is going to fail and you better take advantage of it. >> Yeah, so if you imagine seeing a precursor to something, you look how many times that precursor has caused that event, that allows you to give a degree of probability as to how likely you think it's going to happen. And it might be you decide to set a threshold and say look, if it's below 50%, don't bother doing it. But if it's above 70%, do it. Or if it's a specific type of issue, if it's something around security, and you're above 90% confidence, I want it flagged as a priority one issue. >> Yeah, but if it's my picnic wiki, so can you inject the notion of value in there, I guess the question. >> Dave: Yes, yeah, you can. >> I want to ask you about this categorization piece, even though it's coming down the road with Kingston. That's been a challenge for organizations in so many different use cases. I mean, the one I can think of, you know, is like email archiving and the federal rules of civil procedure, all that stuff when electronic records became admissible. And everybody sort of scrambled to categorize. But it was manual, they were using tags, it just didn't work, it didn't scale. So the answer was always technology to auto-categorize at the point of creation or use. But even then, it was complicated and the math kind of worked but you couldn't apply it. What's changed now and what's the secret sauce behind it? Was that part of the DX Continuum acquisition, maybe you can explain that. >> So we acquired DX Continuum, that gave us eight really bright math Ph.Ds who were data scientists, who could come in, who could look at data in a different way. But I think technology also drove it. So you've got the ability to have the compute power to be able to do the number crunching, but you've got the volume of data as well, I think the more volume of data you get, the more accurate it is. So we found if we're going to train auto-categorization, we need between 50 and 100,000 records to be able to get to a degree of accuracy. And then obviously, we can just keep on doing it again and again and that accuracy gets better and better over time. But even when we ran this out of the box on our system for the very first time before we'd rewritten it on the platform, first time we ran it through, it was 82% accurate straight off. Now, the real interesting thing about when you do something like categorization, it's almost as important what you get right as not guessing when you're going to get it wrong. So we wanted to be be very sure that they system would say I am 100% confident that this is where this is. But if I don't know it, I'm not going to guess. I'm not going to say well, it's 75% confident, so I'm going to say it's this. At that point, you want to say I just don't know. So these, 18%, for example, in this case, I don't know. And then over time, you get to reprocess the things that you don't know, and that percentage gradually goes up. So now, I think in-house, we're running into the 90% region. >> So the math, though, has been around forever. I mean, things like support vector machines and there are other techniques. What is it about this day and age that has allowed us to effectively apply that math and solve this problem? >> So I think what you get now, if you look at the DX Continuum technology used, I think it was five different methodologies for being able to interrogate. And it was neural nets, it was using base, but I think what gives you the big advantage is people have always taken live data and then tried to do this prediction. That's probably the wrong way to do it. If you take historical data and then run it, you just find out which one works. And if this algorithm is working the best for you based on the way you structure your data, then that's the algorithm you focus on. And that's exactly the way predictive analytics works. What we do is we were initially looking, saying okay, well we've got these three different models we can use. We can use projection, we can use seasonal trend lows, we can use AREMA with the auto-regressive moving average type solution. Which one are we going to use? And then we realized we didn't need to guess. What we could do is we could give the system historical data and say which one of these most accurately maps and then use that algorithm for that data set. Because every data set is different, so you might look at one data set where it's really spiky, so you don't want to use projection because if you choose the wrong points, your projection of them is effectively out. So it might be, in that case, you want to use STL and be able to smooth out some of the curves. So you have to, every time you want to do predictive analytics around a specific data set, you need to work out what mathematical model you need to use. >> So the data is then training the models and the models are your models, correct? >> Yes, yeah. >> And now you tell the customer, and I'm sure you do, that this is your data and your data is not going to be shared with anybody outside of your instance. But the model, the gray area between the model and the data, they start to blend together. Is there concern in your customer base about oh, I don't want the model that you train going to my competitors, or is this a different world where they feel as though hey, I want to learn, like, security. What are you seeing there? >> So this is the uniqueness that we, you don't get a generic ML where we look at everyone's instance and train across that. We can only train for your instance. And that's because everyone does things differently. You go to some companies where their highest priority issue is a sev-9, whereas another customer would have sev-1, so you've got people doing different implementations like that. But let's say I tried to do everyone's, and I went through and I said look at this description, this is a networking issue, so I'm going to categorize it as networking. And you haven't got a networking category, you've got networking infrastructure or networking hardware, then it fails. So I have to build a model that's very specific to your instance. So every time we do this, we'll build it for each customer. So it's kind of customized artificial intelligence machine learning models that sit within your instance. >> So my data, your model that you're basically applying for me and only me. Period, the end. >> Yeah, so we do the training on your data and we inject that model, which is your model, back into your instance. >> And now, the benchmarks, you guys have been talking about benchmarks for a while, this is sort of taken it to a new level. So how do you roll that out, how do you charge for it, what's the strategy there? >> So what people do is they effectively subscribe to it. So they're willing to share their data, we're at that point, allowing them, so it's almost a community issue, at this point, everyone is sharing data across the systems. Now, we added another nine benchmarks in the Jakarta release and now I think there's 16 benchmarks. Ive been mainly focused around IT and ITOM, but as we get more and more customers coming on in CSM and more on HR and more on security, we'll be able to start to introduce the whole concept of benchmarking those as well. But the thing you can do now is you don't just see the benchmark and how you perform, we can also use analytics to show how you're trending as well. So you might be better than people of a similar size or people in the same industry, but it might be that you're trending down and you're actually going to start to get close to being worse than them. So the concept here is you can take corrective measures. But also, it gives a lot of power to customers, not just to be able to say I think I'm doing a good job, but to be able to go to senior management and say this is how customers that look like us are currently performing. This is how customers in the finance sector perform. This is how customers with 100,000 people or more perform. And they can see look, we're leading in this, this, and this area, and they can see where they're not leading, and they can actually start to see how they'd address that. Or it might even be that you start to build relationships where they could say to their account manager who are the people who have got this best in performance type thing, could we meet with them, could we exchange with them? The evolution of this will be on the performance analytics side when we start to get to Kingston and beyond will be to be able to do not just the predictive analytics, but to be able to do modeling and to be able to do what-if. And the end goal is we've gotten to the point where we've got predictive, you want to get to the point where you get to prescriptive. Where the system says this is where you are, if you do this, this is where you'll get. >> That's what I was going to ask you, is it intuitive to the client, what they should do, and what role does Service Now play in advising them. And you're saying in the future, the machine is actually going to-- >> Yeah, could be able to say hey, well, if you want to, let's say you want to improve your problem closure rates, you could say well, when you look at other customers, an indicator of this is people have gotten much better first call incident closure. So what you need to do is you need to focus on closing first call incidents because that's going to then have the knock on effect to driving down the way you resolve problems. So we'll be able to get to that, but we'll also be able to allow people to actually model different things. So they could say what happens if I increase this by 10%? What happens if I put another 10 people working on this particular assignment group, what's the effect going to be, and actually start to do those what-if models, and then decide what you're going to do. >> To prioritize the investment to get the numbers down. It's interesting too, 'cause it's a continuous process, as you mentioned, it's this whole do the review once a year, do your KPIs. That's just not the way it works anymore, you don't have time. And to use the integration of the real time streaming data, which is interesting that you said not necessarily always what you want to use first compared to the historical data that's driving the actual business models and the algorithms. >> I think the thing about the whole benchmark concept is it's constantly being updated. So it's not like you take a snapshot and you say okay, we can improve and move here, you see if everyone else is improving at the same time. So there might just be a generic industry trend that everyone is moving in a certain direction. It might be that as we start to see more things coming online from an IOT perspective, I'll be interested to see whether people's CMDBs start to expand. Because I don't know if people have yet established whether IT is going to be responsible for IOT. Because it's using the same protocol for its messaging, how are you going to process those events, how are you going to deal with all that. >> So I guess it's the man versus machine, machines have always replaced humans. But for the first time, it really is happening quickly with cognitive functions. And one of your speakers at the CIO event, Andrew McCafee and his colleague Erik Brynjolfsson have written a book. And in that book, they talked about the middle class getting kind of hollowed out and they theorize that a big part of that is machines replacing them. One of the stats is the median income for U.S. workers has dropped from $55,000 to $50,000 over the last decade. And they posited that cognitive functions are replacing humans, and you see it everywhere. Billboards, the kiosks at airports, et cetera. Should we be alarmed by that? What is your personal opinion here? And I know it's a scary topic for a lot of IT vendors, but it's reality and you're a realist and you're a futurist. What are your thoughts, share them with us. >> People have different views on this. If you look at the view of executives, they see this see this as potentially creating more jobs. If you look at the workforce, I completely agree with you, there's a massive fear that yeah, this is going to take my job away. I think what happens over time is jobs will shift, people will start doing different things. You can go back 150 years and find that 90% of America is working farmland. And you can come now and you can find out they're like 2%. >> Not too many software engineers either back then. >> Not too many. Hard to get that mainframe in the field. What I think you can do is you can not just use AI or machine learning to be able to replace the mundane jobs or the very repetitive jobs, you can actually start to reverse that process. So one of the things we see is initially, when people were talking about concepts like chat bots, it was all about how do you externalize it, how do you have people coming in and being able to interface to a machine. But you can flip that and you can actually have a bot become a virtual assistant. Then what you're doing is you're enabling the person who's dealing with the issue to actually be better than they were. An interesting example is if you look at something like the way people analyze sales prospects. So in the past, people would have a lot of different opportunities they were working on. And the good sales guys would be able to isolate what's going to happen, what's not going to happen. What I can do is can run something like a machine learning algorithm across that and predict which deals are most likely to come in. I then can have a sales guy focusing on those, I've actually improved the skills of that sales guy by using ML and AI to actually get in there. I think a lot of times, you'll be able to move people from a job that was kind of repetitive and dull and be able to augment their skills and perhaps allow them to do a job that they couldn't have done before. So I'm pretty confident just based on the impact that this is going to have from a productivity perspective, where this is going to go from a job perspective. There's a really cool McKinsey report and it talks about the impact of the steam engine on what that drove on productivity and that was a .3% increase in productivity year and year over 50 years. But the prediction around artificial intelligence is it'll produce a productivity increase of 1.4% for the next 50 years. So you're looking at something that people are predicting could be five times as impactful as the industrial revolution. That's pretty significant. >> Next machine age, this is a huge topic. We're out of time, but I would love for you, Dave, to come back to our Silicon Valley studio and maybe talk about this in more depth because it's a really important discussion. >> I'm always around, happy to do it. >> Thanks very much for coming on The Cube it's great to see you again. >> All right, thanks, guys. >> All right, keep it right there, everybody, we're back with our next guest right after this short break. Be right back.

(soft techno music) >> Live from Las Vegas It's The Cube covering Service Now, Knowledge 2018. Brought to you by Service Now. (soft techno music) >> Welcome back to The Cube's live coverage of Service Now, Knowledge '18. I'm your host Rebecca Knight along with my co-host Dave Vellante. We are The Cube, we are the leader in live tech coverage. We are joined now by Alan Marks, he is the Chief Communications Cfficer of Service Now. So thanks so much for coming on the show. >> Thank you, great to be here. >> So the new brand identity of Service Now is we make the world of work, work better for people. >> That's right >> That's your baby, you came up with it so tell us a little bit about your creative process and coming up with that idea and why it works for Service Now. >> Well, it's been a team effort and we think of that identity as our purpose as a company. And as John talked about in his keynote today, purpose is really the center of who you are as a company and what you believe in and what you aspire to do, and I think it's so important in your own life to have a sense of purpose and meaning and I think that's true for companies as well, companies are just collections of people, right? And so as we thought about the next phase of growth for Service Now and how do we build the company awareness and build the brand, we started with, who are we, and why do we exist? And so we did a process where we met with a leadership team we did employee focus groups around the world we met with about a dozen customers to just talk about how do you think about Service Now, what does Service Now mean to you, and that's what lead to our purpose statement of "we make the world of work, work better for people" and really emphasizing people, cause that's something we believe deeply in, that technology should enable people. And what we do is really trying to help people have more meaningful work. Take some of the routine task out of your job so you can focus on things that matter more to you and create more meaningful work for you and create more productivity for your company and your enterprise. >> Dave: I'm always, oh go ahead please. >> Well so, we started with our purpose and then that lead to the brand identity we have a new tagline; Works For You. So, Service Now Works For You, is kind of our version of a Just Do It kind of tagline. >> Dave: (laughs) >> And so we've got our purpose statement we've got a new brand identity, what you see here at Knowledge and we've got a new tagline called, Works For You and you'll see us rolling that out now more. This was the launch of it. We spent the first quarter rolling it out to our employees we did a global tour in eight locations around the world rolling out our purpose to our employees and now this is the first public launch of the new brand. >> I was fascinated by that process. I love that you guys start with wide, big fan of Simon Sinek Google him if you don't know him, his Ted Talk is fantastic and we heard John Donahoe this morning talking about he started with why, so okay, so you do all this research but somehow you have to put that into a creative package the idea of putting the person in the center of the logo and whether it's color scheme or, you know little snippets. How do you come up with that, is that just in your DNA is that really by committee, I mean how does that all work? >> Well we put together a creative team, this is the fun part once you've landed the purpose, this is take out the crayons and let's start decorating something, right? And so when we landed our purpose, and we said well if we're really focused on technology enabling people the former logo of the company was the power button so that was more purely about technology and so we started playing, we had a creative team we put together, we had our in-house creative team we also were using some outside creative support and we started playing with well, how can you change the power button to more reflect people and that's what morphed into the logo today of really using the yellow in the word Now to symbolize people, to symbolize the "you" in "Works For You" instead of the power button as a symbol for the company. >> So you, the last Knowledge, Knowledge '17 you had just started. >> Just started, first week. >> First week on the job, trial by fire here. So tell us a little bit about your first year, reflect on some of the things that might have surprised you during the year, some of your challenges, what would you say? >> Oh it's been wonderful. I say to Pat Waters our Chief Human Resources Officer, every new employee should start the week of Knowledge. It was just such a wonderful way to start, I literally did sign the papers and got on a plane and came to Knowledge '17. And so, to come into the company being able to experience this, and meet our customers and really understand the culture of the company was an extraordinary way to get grounded in the company and understand the, you know, Service Now has just a deep commitment to customers, and listening to our customers, and then responding to their needs. So, given the brand work I've done over the past year that I couldn't think of a better way to start. And then after Knowledge '17, a week or two after that I went down to San Diego and spent an afternoon with Fred Luddy, our founder. And I just said "Fred, tell me your story.", and two hours later Fred was still talking, such a wonderful person, and what struck me in that conversation with Fred is we were spending, really two hours talking about the history of the company and why he founded it, and I realized he was talking mostly about people he wasn't talking about technology and Fred's a product guy. And so it just started to hit me from day one just how focused we are on helping people and helping companies succeed and our customers succeed and that's really what lead to where we are today, and the branding, and so it's an amazing company, amazing culture, and what we're trying to do with this brand the product is well known, we've got deep customer loyalty but the company is not that well known and so as we think about growing the company and reaching other state coders, as we think about expanding our business with existing customers and engaging new customers at the C-suite level, we felt we needed to really elevate the company and that's what this is about. How do we continue to have a strong product brand but elevate the company brand both to drive greater awareness of the company but then also the talent brand piece is important as well and how do we use our brand identity and our purpose to engage the right talent worldwide as we continue to grow and recruit from around the world. >> And that's a big part of why John Donahoe was brought in. I remember I was talking to Frank Slootman, I'm like Frank is so young, he goes look, we found the right guy to take this to the new level. He's been kind of working at it for a while so the timing was perfect. As you do all this research as you talk to customers about their future of work. I mean they're telling you what they need maybe what some of their challenges are, but you guys still have to figure out how to get there. It's almost like Steve Jobs inventing this smart phone, nobody told him no customer told him, this is what we need. >> Alan: Right. >> So you're minds have to put that together, I know it's only a year in, but what are you seeing in terms of your ability to shape the future of work? >> Well I think it starts with the Service Now platform and to me that's the secret sauce. A lot of people have focus, cause people know the ITSM product suite and how the company, the flagship product of the company and a lot of people think of the company in that way but its really the platform itself that can cut across the enterprise and connect different work flows and different work streams particularly work streams are cross-functional areas and the ability to understand that and leverage that with our product suite that really is unlocking the potential of how we can partner with a customer and really drive transformation in the way enterprises operate and drive transformation in how work gets done in a company. >> So with your consumer background, did you like, when you first heard about Service Now say, "really, IT service management?", or did you say "hey, why should the consumer guys have all the fun I want to bring this to the enterprise". >> Exactly, well part of it, this is my first job in the B2B world my background is in consumer, but as John has talked about we really do see the things that we've enjoyed as consumers coming into the workplace. So I really do see a lot of B2C type creative thinking and ideas coming into the workplace to drive this transformation and that's so exciting to take the best of traditional B2B marketing and branding and bring in B2C to help reflect this new wave of technology and how it's changing the way we work and the way we think about work. >> As you're now embarking on this strategy to get Service Now to have wider recognition in the market and you're background in consumer, particularly at Nike, what do you think makes a great brand and what really makes it sort of take hold of customer's imagination. >> That's a great question and I would go back to purpose. I can't say enough about purpose, a company that is clear about who it is and why it exists and what it aspires to achieve in the world, and the impact it aspires to achieve in the world, that's what connects people emotionally, right? You can connect people intellectually but really connect heart and mind, that's the secret sauce. And you said consumer brands, obviously that's what they do right, that's what you have to do. In the B2B world, you see a broader spectrum but that ability to say, how do we take this technology and the more intellectual aspects of our business and really connect it to how you help people and how you enable people and connect it more emotionally. I think that's the (inaudible) NOC, and today, you look at millennial employees today they really do care about what is the purpose, what's the higher value of working for this company vs. that company, and what kind of impact are we going to try to have in the world, and it really does matter. I see it today where you're talking to potential employees and they're asking that question. About if I'm going to join this company, what are the values tell me about the culture of the company. And I think at the end of the day, culture and talent really is what differentiates a company. And strategy is obviously important, but companies that have strong purpose, strong brand, strong identity and that get expressed through strong culture that gets expressed through the kind of people they attract to the company, the kind of talent they have in the company. I think that's what creates great, enduring companies over time. >> So thinking about transparency, I go back to Fred. The self deprecating humor, always, if there's a wart in the software, he talks about it, he's not shy about that. Frank continued that tradition certainly with Wall Street and I'm sure employees, and Mike Scarpelli, very much transparent, John is continuing that tradition. It's obviously worked for Wall Street, you've built trust with investors. How do you take that brand and build trust beyond the investor community, it's a challenge. What are you trying to accomplish there? >> You'll see us marketing more and that's part of what you see here, expressing the brand in a bigger way, you'll start to see us do more marketing at the company level in addition to what we already do at the product level. You'll see us do more marketing directed to talent and being a great place to work. You'll see us expressing this in a variety of ways the kind of culture we create, what we do in the community, the broader impact we have in the world and so I think it's all of those things together and communicating but ultimately you've got to walk the talk, right, it's not just the marketing, you've got to be authentic in what you're doing and have people experience you in an authentic way to really create that sense of trust and engagement over time. And you see we've got that today in our customers. The loyalty we have with our customers the renewal rate the company has with our customers and now we're just trying to continue to build on that and engage other stakeholders as we grow as a company. >> So making work better, okay that's good. The new sort of focus, expanded focus, but what do you want people to say about you, how do you want them to describe you, what are the adjectives you'd like them to use? >> Human, we're "work for people" right, "make work better for people". I think we're a human company, we're an authentic company we're a company that cares, we're a company that really understands technology should help you, it shouldn't be technology for technology's sake, that the end result should be making your life better and we're trying to do that in a work context and I hope that people look at our brand and our identity and how we show up in the world and think that's a copmany I want to be associated with as an employee, as a customer, as an investor, as a partner, as a stakeholder because that's a company that really cares about people and really understand how to apply technology and innovative technology to help people have better lives and in this context, have a better life at work. >> We've been talking a little bit about how you're company is working to attract the best talent, and it's really at a time when the skill sets are changing and we were talking about Fred not being an IT guy, he's a product guy, but you really need the sort of confluence of the two together, you need people who are thinking about the technology but also about the human idea. How hard is it to find the right people or do you just say "we can train them", what's your approach? >> It's always hard to find great talent all over the world it's very competitive, and particularly in technology but I think it gets back again to purpose and culture really being clear about who you are so a potential employee can say "is that a place that I want to work at, when I see the purpose of Service Now, does the resonate for me?". If I'm an engineer, do I want to create product that really is focused on helping people have better work lives and again it really, purpose is the essence of it and I think that really is the center of everything and if you can connect people with your purpose then you will attract the right talent and it'll build on itself through word of mouth and reputation that that's company that I feel attached to and that I want to a part of, and I want to work at.

(exciting, upbeat music) >> (Announcer) Live from Orlando, Florida. It's theCUBE, covering ServiceNow Knowledge '17. Brought to you by ServiceNow. >> We're back. Dave Vellante with Jeff Frick. This is theCube and we're here at ServiceNow Knowledge '17. Stanley Toh is here, he's the Global IT Director at semiconductor manufacturer Broadcom. Stanley, thanks for coming to theCUBE. >> Nice to be here. >> So, semiconductor, hot space right now. Things are going crazy and it's a good market, booming. That's good, it's always good to be in a hot space. But we're here at Knowledge. Maybe talk a little bit about your role, and then we'll get into what you're doing with ServiceNow. >> Sure. You're right. Semiconductor is booming. But we don't do anything sexy. Everything is components that go into your iPhones and stuff like that. They do the sexy stuff. We do the thing that make it work. So, I'm the what we call the Enterprise and User Services Director, so basically anything that touches the end user, from the help desk to collaboration to your PC support desk, everything is under. Basically anything that touches the end user, even onboarding, and then, now with the latest, we actually moved our old customer support portal to even ServiceNow CSM. >> Okay, so what led you to ServiceNow? Maybe take us back, and take us through the before and the after. >> Okay. Broadcom Limited, before we changed our name to Broadcom, we were Avago Technologies. We are very cloud centric. Anything that we can move to the cloud, we moved to the cloud. So we were the first multi-billion dollar company to move to Google, back in 2007. That was 10 years ago. And then we never stopped since. We have Opta, we have Workday. And if you look at it, all this cloud technology works so well with ServiceNow. And ServiceNow is a platform that has all the API and connectors to all these other cloud platforms. So, when we were looking and evaluating, first as just the ITSM replacement, we selected ServiceNow because of the ease of integration. But as we get into ServiceNow, and as we learn ServiceNow, we found that it's not just an ITSM platform. You can use it for HR, for finance, for legal, for facilities. Recently, probably about six months ago, we launched the HR module. And then three weeks ago, we went live with a CSM portal for the external customer. >> When you say you go back to 2007 with Google, you're talking about what, Google Docs? >> Everything. >> Dave: Everything. >> Email, calendar, docs, sites, Drive, but it was unknown. >> Dave: All the productivity stuff. >> Everything. >> Dave: Outsourced stuff. >> They were unknown then, >> Jeff: Right, right, right. >> And it's a risk. >> So what was the conversation to take that risk? Because obviously there was a lot of concern at the enterprise level on some of these cloud services beyond test/dev in the early days. Obviously you made the right bet, it worked out pretty well. (Stanley laughing) But I'm curious, what were the conversations and why did you ultimately decide to make that bet? >> Okay. So 2007 was just after the downturn. >> Jeff: Right. >> So everyone was looking at cost, at supportability. But at the same time, the mobile phone, the smart phone is just exploding in the market. So we want something that is very flexible, very scalable, and very easy to integrate, plus also give you mobility. So that's why we went with Google as the first cloud platform, but then we started adding. So right now, we can basically do everything on your smart phone. We have Opta as our single sign-on. From one portal, I go everywhere. >> Dave: Okay, so that's good. So you talked about some of the criteria for the platform. How has that affected how you do business, how you do IT business? >> See, IT has always been looked upon as a cost center. And we are always slow, legacy system, hard to use, we don't listen to you. (Jeff laughing) >> Dave: What do those guys do? >> You know, why are we paying those guys, right? And then you look at all the consumer stuff. They are sexy, they are mobile, they have pretty pictures. Now all your internal users want the same experience. So, the experience has changed. The old UNIX command key doesn't work anymore. They want something touch, GUI, mobile. They want the feel, the color, you know. >> That might be the best description (Stanley laughing) of the consumerization of IT, Dave, that we've ever had on theCUBE. >> It's really honest. Coming from an IT person, it is, it is honest. And now you've driven ServiceNow into other areas beyond IT. >> Stanley: Yes. >> You mentioned HR. >> HR. We went live six months ago. >> Okay. And these other areas, are you thinking about it, looking at it, or? >> So we are also looking with legal, because they have a lot of legal documents and NDAs and stuff like that. And ServiceNow have a very nice integration to DocuSign and Vox. So we are looking at that. But the latest one, we went live three weeks ago, is the CSM, the customer support management portal. And that one actually replaced one of our legacy system that has a stack of sixteen application running. And we collapsed that, and went live on ServiceNow CSM three weeks ago. >> And what has been, two impacts - the business impact, and, I'm curious, is it the culture impact. You sort of set it up as the attitude. We had fun with it, but it's true. What's the business impact? And what has the cultural impact been? >> The last few years, we have been doing a lot of acquisition. So we have been bringing in a lot of new BU's. Business units. And they want things to move fast, and we want to integrate them into one brand. So speed and agility is key when you do acquisitions. So that's why we are moving into a platform where we can integrate all these new companies easily. We found that in ServiceNow and we can integrate them. So for example, when we acquired Broadcom Corporation, they have 18,000 employees. We onboarded them on day one, and usually when you do an acquisition, they don't give you the employee information until the last minute. Two days, all I need, is to bring them all on, onboarded into my collaboration suite. I only need two days of the information, and on day one, Turn it on, they are live. Their information is in, they have an email account. All their information is in ServiceNow. They call one help desk, they call our help desk, they get all the help and services. So it's fully integrated on day one itself. >> And you guys also own LSI now, right? >> Yes, LSI. >> Emulex? >> Emulex, PLX. >> PLX. >> The latest acquisition is Brocade, which we will close in the summer. And then, the rumored Toshiba NAND business. So, yeah, we are doing a lot of acquisitions. >> Yeah, quite a roll-up there. >> Correct. So as you can see, they are all very different companies. So when they come in, they have different culture. They have different workflow, they have different processes. But if you integrate them into a platform that we are very familiar right now, it's the consumerized look and feel, it's very easy to bring them in. >> And that is the cultural change that has occurred. >> Yes, it's a huge, >> So do people love IT now? >> They still hate IT. (Jeff and Dave laughing) They still say iT is a cost center. But right now, they are coming around. They see that we are bringing value to them. So right now, IT is just not to provide you the basic. IT is to enable the business to be better and more competitive. >> A true partner for the business. >> Yes, correct. >> Stanley, thanks very much for coming to theCUBE. It was great to hear your story, we appreciate it. >> Stanley: Thanks for having me. >> You're welcome. All right, keep it right there, buddy. We'll be back with our next guest. This is theCUBE, we're live from ServiceNow Knowledge '17. We'll be right back. (upbeat music)

>> Announcer: Live from Orlando, Florida, it's theCUBE. Covering ServiceNow Knowledge '17. Brought to you by ServiceNow. >> Welcome back to Orlando, everybody. This is theCUBE, the leader in live tech coverage, and we are covering three days wall to wall coverage of ServiceNow Knowledge 2017. I'm Dave Volante with my co-host Jeff Frick. When we first started doing Knowledge in 2013, you'd walk around the show floor, and the names that you'd see weren't the brand names. Well, Infosys is here and Gaurav Uniyal, who's the industry principal of North America for the practice lead at ITSM for the ServiceNow practice with Infosys, you're seeing the big SIs join the community and really start to add value. Gaurav, welcome to theCUBE, thanks so much. >> Thank you. >> How'd you guys get into this? Like you say, four or five years ago, you guys might have been kicking the can, and now, you're all in. What's the journey been like? >> Sure, sure. We have been a partner with ServiceNow for almost last eight years, and as I look back to the journey, I can categorize the journey into four parts. Initially we saw 2010 to 2012 is basically about ITSM, how do you get the foundation capabilities in? Once that was there, we saw for the next couple of years it was all about how do you integrate services together, the service integration management as a concept. The third wave we saw is where concepts like ITOM, mobility, there's a lot of focus on user experience. And now, here we are in 2017, and as we look at the trends, what we are anticipating for the next two to three years, on a very high level, there are three trends which we believe are going to shape the journey of ServiceNow. First one is AI, obviously, how do you bring in concepts of machine learning, chat bars, predictive analytics, and how would that help organization do things faster, more efficiently, and in a cost-optimizing manner? AI is definitely one. Second trend that we are seeing is now organizations are looking for solutions that are relevant to their business. Solutions which are specific to retail industry, to CBGs, to finance, to healthcare, and so on, so forth. We are seeing a lot of traction there. And third is the natural expansion of ServiceNow into newer areas like obviously CSM, HR and so on, so forth. These are the three trends on the high level that we see, AI, going vertical, and on going horizontal by expanding these capabilities. >> Big factor when you talk to customers is sometimes it's not simple to implement ServiceNow. They need a partner like yours, so where do you start? I mean, when we first started following ServiceNow, a lot of folks weren't adopting CMDB and going too hard on the service catalog. To take advantage of these trends, the AI and other things that you talked about, do they need to be there on the majority curve? I wonder if you could talk about that a little bit. >> Sure, sure. What we see is that obviously there are a set of foundational capabilities that are required. There's definitely a push required from the management to be able to drive the initiator. But more and more we are seeing our clients implementing the solution in a standardized manner. If I look back four or five years back, a lot of customization, everybody have their own processes. But when I talk with clients now, they're looking for something which is ready-made, which can be deployed in a very, very faster manner. >> Gaurav, why Infosys? Talk about what you bring to the table versus maybe some of the other suppliers out there, and what do you consider your sweet spot? >> I think I would, a couple of things. One is Infosys we do a lot of work outside of ServiceNow. We have our practices for cloud, we have practices for HR, and so on, so forth. One thing that have been to our table is the domain expertise. If you're implementing HR, it requires not only ServiceNow skills, but as well as domain skills to be able to configure the processes. That's one differentiator that we have. The second differentiator we have is delivering ServiceNow as a service, so clients are also looking for turnkey projects where one render can bring in the platform, bring in consulting, implementation services, and also be able to manage the platform end-to-end, so that's the second thing. And third thing is basically being ahead of the curve. What we have done, we have invested last, I would say, last eight to 10 months in building a product that we brand as ESM Cafe, Enterprise Service Management Cafe, and it's what we call as a gold image of ServiceNow, and that helps you deploy ServiceNow faster and in efficient manner. >> So, Gaurav, what did you see eight years ago, 'cause clearly ServiceNow isn't where it is today, that gave you guys the confidence to make the investment? >> And before ServiceNow, we used to work with other products as well. What we saw new with ServiceNow was a huge focus on user experience. How do you make it easy for the users, how do you deploy an intuitive solution? And in our view, that has been the key, a focus on user experience, bring simplistic workflows, and be able to drive user behavior. >> Maybe some of those other domains, you mentioned HR, where else do you see Infosys as really strong? >> What we are seeing is ITOM is definitely one area that we are focusing on. HR, CSM, these are two big stack we have. And then, we are also focusing a lot on building vertical solutions. As I said, having specific solutions for retail industry, for our healthcare clients, or manufacturing clients. That has been a focus for us. >> We're out of time, Gaurav, but I'd like to leave you with the last word. Knowledge 2017, what does it mean to you, your customers, and Infosys and your presence here? Give us the bumper sticker. >> So I think, if I have to summarize everything in one word, I will say it's all about diversity. We see so many partners, so many clients, everybody they have their own perspective. But how do you bring in all that diverse experience and gel it together to be able to deliver the experience for the users? >> Great, well, Gaurav, thanks very much for coming on theCUBE, we appreciate it. >> Yep, it has been pleasure. >> Okay, well, keep it right there, everybody. We'll be back with our next guest right after this short break. This is theCUBE, we're live from ServiceNow Knowledge '17. Be right back. (electronic keyboard music)

>> Narrator: Live from Orlando, Florida, it's theCUBE. Covering ServiceNow Knowledge 17, brought to you by ServiceNow. >> Welcome back to Knowledge17 everybody. This is theCUBE, the leader in live tech coverage. My name is Dave Vellante and I'm here with my cohost Jeff Frick. This is our fifth Knowledge, we're doing wall to wall coverage. This is day one, we'll be here for three days giving you all the keynotes, the announcements, talking to practitioners. We're going to talk to one of the leading partners now of ServiceNow. Michael Kollar, is the Senior Vice President and Chief Digital Officer of Vision, Strategy, and Engineering for Atos. Michael, welcome to theCUBE, thanks for coming on. >> Thanks for having me. >> Dave: You got a lot on your plate. >> I do. >> Dave: Talk about that role, I love that title. >> So, essentially what I do for Atos, I own, one, the vision and strategy of how we deliver, develop and deploy our services. And then second, I'm also accountable for how we engineer and build those services and bring 'em to market. >> Dave: Okay, so talk about your relationship with ServiceNow, how did it start, how'd you get into this space? >> So about two, three years ago we started a need to transform our service delivery platforms within Atos from the 196 different tool sets that we had across the global services that we provide to really find a better way to do it. We we're spending a lot of our time picking tools, integrating tools, trying to figure out what's the right tool for every little corner case. And we said to ourselves, "There's got to be a better way to do this." So we started to think about what were the key things we wanted in a ITSM service management platform going forward. And we thought about workflow, integration, orchestration, some of the key things that today are cornerstone to ServiceNow. And it led us down the path to find ServiceNow as our vendor partner of choice for service management and beyond. >> Okay, so how's that business going, what's the reaction been from your customers? And talk a little bit about the strategy. >> So from a business perspective I tell ya the customers love what we're doing. For the first time we're able to adapt at their rate of change and differentiate, or transform our services aligned to how they want to consume it and to align to their business. Typically in the past that was a very difficult process for us since everything was bespoke, we wrote code to do it. Now it's a configuration or an orchestration that we do with ServiceNow. So that part's been great. From an overall journey, I will tell you it's been hard. Given that we have a global customer base that we support in 72 different countries around the world, it's pretty hard to get to a standard platform, so it's taken us a considerable amount of time to get there. But the results have been, I think, extraordinary in the way that we can deliver the service, the revenue that we've created with it, and just the ability we're able to respond to customer needs with. >> So, can you talk, unpack the value flow for our audience? Just help us understand sort of, where ServiceNow adds value, where you guys add value, and then where the customers pick up, and what impact it's having on their business? >> Sure, so first question, where do we provide value? A couple of different areas, so, besides the service management discipline that we provide, we're a managed service provider, so all the platforms that go into running their private cloud and public cloud get built, designed, and deployed by Atos. So that's one of the areas. Second, as it relates to deploying ServiceNow in support of their needs, we have a set of accelerators, technologies, methodologies, and capabilities that we're able to deploy to allow them to consume our services with ServiceNow faster. Nice part about that is we have our own instance that we provide a shared service out of but we've adapted that so that if customers want their own instance of ServiceNow and want to grow and leverage that capability we're able to deploy it in their instance and let them take advantage of it, and then build with it as they want to adapt it or extend it for their enterprise. >> How about the technology integration challenges? You integrated your business and ServiceNow sort of into your business, I guess, what were the technology integration challenges that you faced and others that you're facing? >> So the first challenges we went through was just the complexity of the model that we wanted to support. So for us it wasn't just a single set of services it really is our entire global portfolio. So that is everything from cloud, our digital workplace solution, our large scale analytics, including our security offerings. So we had to integrate a global set of offerings into ServiceNow and the platforms that we use, so Amazon, Azure, Google, and other bespoke technologies, and writing the code to make that happen. >> So one of the big challenges when we talk to IT practitioners is migration from A to B. "We got to get from A to B and we don't want to "spend a billion dollars doing it and we got to do it fast." How did you deal with the migration from the legacy systems to where you are today? >> So we took an approach that we refer to as big box and little box. So the little box allowed us to take our green field services that had been built with ServiceNow and our net new customers that were consuming those services were deployed straight out onto those platforms, the new capability we built with ServiceNow. And what we've done with the legacy customers and our legacy services, as we work through either renewal strategies with our customers or they start to consume new services we migrate them onto the new platform to be able to leverage those services going forward. So it's an evolutionary process it's not a big bang. We have to do it in a very systematic way so we don't compromise the services that they consume from us that they in turn deliver to their internal IT departments or their customers from Atos. >> What are the big asks you're getting from customers and how are you advising them? >> So a big ask we get from customers is, "Can we leverage the IP that you've built "and help us extend that further, faster, with us?" And what we've done there is originally the frameworks we built at Atos we refer to as the Atos technology framework, it was a very proprietary home grown type product that we used to transform our services. What we've done over the last several years is turned that into a product, essentially a application that we can sell to our customers and they can get it from us as a license and support model to help them on their journey. The ask then is that if they aren't happy or say they want to engage other providers from Atos is to allow them to leverage the IP that we've built with them and have those other providers be part of the ecosystem. So aligned to that we've now created the ability for third parties to interact with our customers and leverage the ecosystem and products and services we built on ServiceNow in support of our common customer. >> Nice, now when you were talking off camera you obviously, hybrid cloud's a big topic, a hot topic. Dell EMC World's going on this week, you guys get a, you've won an award at that show. You're here obviously but, so what's going on in hybrid cloud, you know, what are you being recognized for? >> So from a hybrid cloud perspective we're going to announce a private Azure stack appliance in partnership with VC around VxRack and VxRail. One of the other things, when we think about hybrid cloud, what we've done specifically with ServiceNow is integrate our offerings that come from Atos, our private cloud platforms, we refer to as our digital private cloud, that was built in concert with Dell EMC around the Vmware suite of technologies, VCE, and other components of the Dell EMC family. And we stitch all of that together with public cloud providers AWS, Azure, and Google, in a seamless framework with ServiceNow. And that's I think, from us, one of our key value props that we take to customers, is the integration of the private cloud on-prem solutions and what we do in the public space, with ServiceNow as the engine to do that. >> So you see all this stuff coming together don't you? So you're saying ServiceNow is the platform glue to allow you to manage all these disparate systems? >> Oh without a doubt. We look at ServiceNow as the platform of the future for us and our customers. And we look at it, and we really refer to them as being platform businesses going forward. And you need an integrated platform end to end to drive that to, one, the transformation, but two, to be able to manage that end to end service perspective as you think about private public and the SAS model that's out there that our customers want to consume. >> I'll give you the last word on Knowledge17 what's the sort of bumper sticker for you guys? >> So I think the bumper sticker for us is, at least from an Atos perspective, it's the year of the platform. And as we look at what ServiceNow is rolling out being a platform provider, and the partnership that we have with them specifically in the cloud space, to enable a successful outcome of hybrid cloud consumption for our customers. >> Platform trumps products every time so Michael thanks very much for coming to theCUBE and sharing your knowledge, and best of luck. >> Thanks for your time and I appreciate it. >> You're very welcome. And keep it right there everybody we'll be back with out next guest, theCUBE, we're live from Knowledge17. We'll be right back. (bright electronic music)