>> from Boston, Massachusetts. It's the queue covering active eo 2019. Data driven you by activity. >> Welcome back to Boston. Everybody watching the Cube, the leader and on the ground tech coverage. My name is David Locke. They still minimus here. John Barrier is also in the house. We're covering the active FIO data driven 19 event. Second year for this conference. It's all about data. It's all about being data driven. Charlie Quanis here. He's the director of data and a I offering management and IBM. Charlie, thanks for coming on The Cube. >> Happy to be here. Thank you. >> So active Theo has had a long history with IBM. Effect with company got started at a time the marketplace took a virtual ization product and allowed them to be be first really and then get heavily into the data virtualization. They since evolved that you guys are doing a lot of partnerships together. We're going to get into that, But talk about your role with an IBM and you know, what is this data and a I offering management thing? >> He absolutely eso data and a I is our business unit within IBN Overall Corporation, our focus and our mission is really about helping our customers drive better business outcomes through data. Leveraging data in the contacts and the pursuit of analytics and artificial intelligence are augmented intelligence. >> So >> a portion of the business that I'm part of his unified governance and integration and you think about data and I as a whole, you could think about it in the context of the latter day. I often times when we talk about data and I we talk about the foundational principles and capabilities that are required to help companies and our customers progress on their journey. They II and it really is about the information architecture that we help them build. That information architectures essentially a foundational prerequisite around that journey to a i. R. Analytics and those layers of the latter day I r. Collecting the data and making sure you haven't easily accessible to the individual's need it organizing the data. That's where the unified governance in Immigration folio comes into play. Building trusted business ready data, high quality with governance around that making shorts available to be used later, thie analyzed layer in terms of leveraging the data for analytics and die and then infuse across the organization, leveraging those models across the organization. So within that context of data and I, we partnered with Active Theo at the end of 2018. >> So before we get into that, I have started dropped. You know, probably Rob Thomas is, and I want a double click on what you just said. Rob Thomas is is famous for saying There is no way I without a training, no, no artificial intelligence without information architecture so sounds good. You talk about governance. That's obviously part of it. But what does that mean? No A without a. >> So it is really about the fundamental prerequisites to be able to have the underlying infrastructure around the data assets that you have. A fundamental tenet is that data is one of your tremendous assets. Any enterprise may have a lot of time, and effort has been spent investing and man hours invested into collecting the data, making sure it's available. But at the same time, it hasn't been freed up to be. A ploy used for downstream purpose is whether it's operational use cases or analytical cases, and the information architecture is really about How do you frame your data strategy so that you have that data available to use and to drive business outcomes later. And those business outcomes, maybe results of insights that are driven out of the way the data but they got could also be part of the data pipeline that goes into feeding things like application development or test data management. And that's one of the areas that were working with that feeling. >> So the information architecture's a framework that you guys essentially publish and communicate to your clients. It doesn't require that you have IBM products plugged in, but of course, you can certainly plug in. IBM products are. If you're smart enough to develop information architect here presumably, and you got to show where your products fit. You're gonna sell more stuff, but it's not a prerequisite. I confuse other tooling if I wanted to go there. The framework is a good >> prerequisite, the products and self of course, now right. But the framework is a good foundational. Construct around how you can think about it so that you can progress along that journey, >> right? You started talking about active fio. You're relationship there. See that created the Info sphere Virtual data pipeline, right? Why did you developed that product or we'll get into it? >> Sure, it's all part of our overall unified covers and integration portfolio. Like I said, that's that organized layer of the latter day I that I was referring to. And it's all about making sure you have clear visibility and knowing what they had assets that you have. So we always talk about in terms of no trust in use. No, the data assets you have. Make sure you understand the data quality in the classification around that data that you have trust the data, understand the lineage, understand how it's been Touch Haussmann, transformed building catalog around that data and then use and make sure it's usable to downstream applications of down street individuals. And the virtual data pipeline offering really helps us on that last category around using and making use of the data, the assets that you have putting it into directly into the hands of the users of that data. So whether they be data scientist and data engineers or application developers and testers. So the virtual data pipeline and the capabilities based on activity sky virtual appliance really help build a snapshot data provide the self service user interface to be able to get into the hands of application developers and testers or data engineers and data scientist. >> And why is that important? Is it because they're actually using the same O. R. O R. Substantially similar data sets across their their their their work stream. Maybe you could explain that it's important >> because the speed at which the applications are being built insights are being driven is requiring that there is a lot more agility and ability to self service into the data that you need. Traditional challenges that we see is you think about preparing to build an application or preparing to build an aye aye model, building it, deploy it and managing it the majority of the time. 80% of the time. Todd spilled front, preparing the data talking, trying to figure out what data you need asking for and waiting for two weeks to two months to try to get access to that data getting. And they're realizing, Oh, I got the wrong data. I need to supplement that. I need to do another iteration of the model going back to try to get more data on. That's you have the area that application developers and data scientists don't necessarily want to be spending their >> time on. >> And so >> we're trying to shrink >> that timeframe. And how do we shrink? That is by providing business users our line of business users, data scientist application developers with the individuals that are actually using the data to provide their own access to it, right To be able to get that snapshot that point in time, access to that point of production data to be able to then infuse it into their development process. They're testing process or the analytic development process >> is we're we're do traditional tooling were just traditional tooling fit in this sort of new world because you remember what the Duke came out. It was like, Oh, that enterprise data warehouses dead. And then you ask customers like What's one of the most important things you're doing in your big data? Play blind and they'd say, Oh, yeah, we need R w. So I could now collect more data for lower costs keep her longer low stuff. But the traditional btw was still critical, but well, you were just describing, you know, building a cube. You guys own Cognos Obviously, that's one of the biggest acquisitions that I'm being made here is a critical component. Um, you talk about data quality, integration, those things. It's all the puzzle fits together in this larger mosaic and help us understand that. Sure >> and well, One of the fundamental things to understand is you have to know what you have right, and the data catalogue is a critical component of that data strategy. Understanding where your enterprise assets sit, they could be structured information that may be a instruction information city and file repositories or e mails, for example. But understanding what you have, understanding how it's been touched, how it's been used, understanding the requirements and limitations around that data understanding. Who are the owners of that data? So building that catalog view of your overall enterprise assets fundamental starting point from a governess standpoint. And then from there, you can allow access to individuals that are interested in understanding and leveraging that date assets that you may have in one pool here challenges data exists across enterprise everywhere. Right silos that may have rose in one particular department that then gets murdered in with another department, and then you have two organization that may not even know what the other individual has. So the challenge is to try to break down those silos, get clarity of the visibility around what assets so that individuals condemned leverage that data for whatever uses they may have, whether it be development or testing or analytics. >> So if I could generalize the problem, Yeah, too much data, not enough value. And I'll talk about value in terms of things that you guys do that I'm inferring. Risk reduction. Correct uh, speed to insights. Andan. Ultimately, lowering costs are increasing revenue. That's kind of what it's all >> the way to talk about business outcomes in terms of increase revenue, decrease costs or reduce risk, right in terms of governance, those air the three things that you want to unlock for your customers and you don't think about governance and creating new revenue streams. We generally don't think about in terms of reducing costs, but you do think about it oftentimes in terms of reducing your risk profile and compliance. But the ability to actually know your data built trust and then use that data really does open up different opportunities to actually build new application new systems of engagement uses a record new applications around analytics and a I that will unlock those different ways that we can market to customers. Cell two customers engage our own employees. >> Yes. So the initial entry into the organism the budget, if you will, is around that risk reduction. Right? Can you stand that? I got all this data and I need to make sure that I'm managing a corner on the edicts of my organization. But you actually seeing we play skeptic, you're really seeing value beyond that risk reduction. I mean, it's been nirvana in the compliance and governance world, not just compliance and governance and, you know, avoiding fees and right getting slapped on the wrist or even something worse? Sure, but we can actually, through the state Equality Initiative and integration, etcetera, etcetera Dr. Other value. You actually seeing that? >> Yes. We are actually, particularly last year with the whole onslaught of GDP are in the European Union, and the implications of GDP are here in the U. S. Or other parts of the world. Really was a pervasive topic on a lot of what we were talking about was specifically that compliance make sure you stay on the right side of the regulation, but the same time investing in that data architecture, information, architecture, investing in the governance programme actually allowed our customers to understand the different components that are touching the individual. Because it's all about individual rights and individual privacy. It's understanding what they're buying, understanding what information we're collecting on them, understanding what permissions and consent that we have, the leverage their information really allowed. Our customers actually delivered that information and for a different purpose. Outside of the whole compliance mindset is compliance is a difficult nut to crack. There's requirements around it, but at the same time, they're our best effort requirements around that as well. So the driver for us is not necessarily just about compliance, But it's about what more can you do with that govern data that you already have? Because you have to meet those compliance department anyway, to be able to flip the script and talk about business value, business impact revenue, and that's everything. >> Now you So you're only about what, six months in correct this part of the partnership? All right, so it's early days, but how's it going and what can we expect going forward? >> Don't. Great. We have a terrific partner partnership with Octavio, Like tippy a virtual Or the IBM virtual data pipeline offering is part of our broader portfolio within unified governance and fits nicely to build out some of the test data management capability that we've already had. Optimal portfolio is part of our capability. Said it's really been focused around test data management building synthetic data, orchestrating test data management as well. And the virtual data pipeline offering actually is a nice compliment to that to build out our the robust portfolio now. >> All right, Charlie. Well, hey, thanks very much for coming in the house. The event >> has been terrific. It's been terrific. It's It's amazing to be surrounded by so many people that are excited about data. We don't get that everywhere. >> They were always excited about, Right, Charlie? Thanks so much. Thank you. Thank you. All right. Keep it right there, buddy. We're back with our next guest. A Valon Day, John. Furry and student Amanda in the house. You're watching the cube Active eo active Fio data driven. 2019. Right back

>> From the Hard Rock Hotel in Las Vegas, it's theCUBE covering HOSHO CON 2018. Brought to you by HOSHO. >> Hello everyone, welcome back to theCUBE special live coverage here in Las Vegas for the first ever, Blockchain Security Conference. Really discussing security as an industry, it's called HOSHO CON, put on by HOSHO. We're here with the Co-Founder and CEO of HOSHO and main supporters of sponsoring this project or event HOSHO CON. We have Yo Sub Kwon, who is the CEO and Co-Founder. Good to see you. >> Good to see you, good to be here. Hey thanks for putting this on. I've interviewed Hartej, your Co-founder, in Toronto the Futures conference. We've had many great conversations on theCUBE. But when we talked about HOSHO CON, this conference, he really wanted to do it as an industry conference. Not as just a HOSHO event. >> (Yo agrees) >> This is really key to you guys culture here at HOSHO your company. >> Yeah. >> Take a minute and explain the event. Why this event? Why the format? And that it is open? >> I mean basically, you know, like we've been to just so many events over the, like I think we've done like 80 events this year, and the topic of conversation is, you know, around investing, it's around ICO's, it's around all these things and security touches all of those and I just feel like, and we all felt it and like the other security companies felt it too, that it just wasn't a topic that was discussed in great enough depth especially given the increasing amounts of hacks and theft and all these problems that relate directly to security. And I just feel like it's really important for us as an industry to discuss, you know, what security practices are good? What should be done? How you should do them? What resources are available to companies to learn more about security? And what resources don't exist and need to be developed? And that needs to be done in a collaborative way. Well congratulations and props to you guys for really sponsoring this and taking the leadership role in the industry but again you guys are humble and it's a good way to do it. Is to have these conversations. So thank you for doing that, appreciate it and thanks for having theCUBE here. We really appreciate it. The question I want to ask you is: I've noticed a trend here, first of all a lot of smart people here, so it's like, it's not a massive, no IPO, ICO pitch competitions, this is really down and dirty security. >> Yeah. >> Okay, black hat, white hat but it's kind of a intercultural vibe it's the community. >> Yeah. >> Coming together. But also two kind of tracks are developing there's the crypto security and then there's cyber security threats coming up. Because you said it's touching on all these points. And you're hearing, even hearing a little bit of IOT and hardware, we had Rivetz on earlier the CEO Steven Sprague so a lot of different solutions and a lot of different opportunities, a lot of different vulnerabilities. Can you explain the landscape of how the players are here, where are they coming from? >> Okay, yeah. >> What's their backgrounds? >> Absolutely I mean there are definitely, a lot of brilliant minds here and that was one of the goals of HOSHO CON is to bring people that are of all different, you know, parts of the industry whether they're, they're layers or they're information security experts or they're, you now, regulators or they're it just, developers bring them all into the same room and to kind of discuss these problems that you know, plague all of us and you know a developer's going to have a much different perspective and solution than a lawyer and but those thing can work together and the problems might still be the same. And so we've been in the industry for just like, even though HOSHO's a young company, the people that are on our team, myself, I've been in, I got into Bitcoin eight years ago, like we just have this network of people that are in the industry, have seen the kind of like cyclic nature of, you know, like a gigantic influx of people come in, these problems arise where, you know, entrepreneurs are like really focused on like growing, getting traction and then they focus less on their security, it goes to the wayside and then these big hacks happen and then the industry kind of smartens up and everything you know starts getting a little bit closer to what seems you know maybe safe or like approachable for a growth trajectory and then another gigantic influx happens and then the same thing. And so what we really need to do is like when that next big influx happens is to have standards in place to have things that an entrepreneur can just turn to and be like: "Okay, this is what I need to do "if I want to be considered credible in this industry "and I want to protect my users and my investors." >> Can you talk about some of the top conversations that are going on here, because I think that's a great point? People want you know legitimacy, they want solutions that work, that are credible and then maintain kind of, I won't say enterprise grade, but commercial grade reliable so that people can focus on building up their companies and or preparing for the growth. What is some of the top conversations? >> A lot of it's just learning about what other people do, like even with like Rivetz, we're putting, they're using the trust executions based on like what's already on billions of devices and you know basically letting people know that that space exists on this hardware and that they can be used for all these different purposes to validate you know data going in. And, you know, there's been conversations around custody. I was on a panel earlier today about custody and basically the way I felt like it left off and the conclusion was that there is a long way to go on custody but it is incredibly crucial. Big institutional players that want to enter the markets and want to put their money into a regulated custodian they're, it's difficult to do so even with registered custodian's existing because the limitations that they have in understanding the technology and being able to provide support for all the different digital assets that exist. >> So we're reporting this morning the SEC herein the US has tightened the noose on the ICO-funded startups. I think the story originated out of Decrypt Media but essentially the SEC, Securities and Exchange Commission, is cracking down and they're going back and saying: "You got to refund some of that money." >> Yeah. >> Because of violations. That's one regulatory thing but there's also, there's software that writes these smart contracts. You guys are in that business. The software is software money, security is critical. How stable is this becoming in your mind? What's the to do items? How should a company who want's to either use the ICO process or and or use token economics to fuel their business model they got to be secure on the business front? >> Yeah. So basically smart contracts were so new when we first got in to it that people just didn't know how to develop securely in them and so there were just critical mistakes being made all over the place. We've seen over the last year a lot of improvement on that front, more libraries are being developed and people are writing consistently more secure contracts. But now what we're seeing is contracts are getting increasingly complex and with additional complexity, because it's software there's room for, you know more problems and I think that it's going to, it's going to be an interesting challenge going forward, there's thing like formal verification I think that has a huge place in the future regarding smart contracts but it's there's a lot of tools that need to be developed that's one of the things that we worked on and we're really excited about is Meadow Suite because that's software that let's you develop smart contracts. We built it intentionally with security analysis in mind and then we made it more full featured to become a development tool for writing smart contracts and developing a protocols. And so I think the more of those type of things that you see come out that bring it more to feature parity to what software developers are used to if they're say building a web application it makes it a lot easier to adhere to good practices and write secure code. >> And also kind a not have to do manual audits? >> Yeah. >> I mean at the end of the day you want to get to some sort of automation. >> Absolutely. >> Framework. >> I mean we've already automated a lot of the things that we do. But and there's still a lot left to do but we know that there is a lot left that can be automated and we hope that eventually the tools are just put into developers hands were they can do most of that work themselves. >> Yo Sub take your CEO hat off from HOSHO for a minute put your industry hat on. >> Okay. >> What are some of the names here that, and conversations, topics that you find interesting personally? >> Okay, I mean. >> (John laughs) >> A lot of people that we brought here are like our friends, we know them right? And so like I was talking to. >> Your kind of celebrities. >> I was talking with like TokenMarket earlier and like, you know, we're partners with them and they really, they're really great guys and like some of the stuff that they are trying to do and you know just listening to what other companies are trying to do with like security tokens that seem to be the thing that really moving forward. And I'm kind of fascinated like, we try to stay agnostic you know like when we're like looking at all these different technologies. But then like someone explains something to you and you're awe man that's really cool. >> Yeah. (both laughs) >> And there's some good minds here. What's the coolest thing you've seen so far? >> Well I've been locked in, I've been locked behind doors in a lot of meetings so far but the, let's see, I think what Unchained Capital is working on is really sweet. They basically, I mean like I think their business model makes a lot of sense. Like basically they hold your crypto's so you maintain exposure to it and then they'll issue you a loan. They can like turn around a loan like in 24 hous, you just hand then a bunch of Bitcoin and then they'll just give you cash and then you can you know you have that cash and then you still maintain exposure through crypto if you pay it all back you get your crypto back. (laughs) >> So it's collateralized crypto? >> Exactly I mean like that makes perfect sense to me. Like you know it's just like as long as you can liquidate that crypto and Bitcoin or Ethereum like those are big enough markets now where you can easily liquidate. Well that's awesome. Thanks for putting on this event and I want to get back to HOSHO. How's business going? You're the CEO, Commander in Chief, what's going on with the company? How's things going? >> Yeah. >> Quick update. >> Well everything's crazy right, like we're moving quickly and the next steps are Asia. We really want to basically penetrate those markets. Only, we don't have as much coverage there as we would like but having spent some time there earlier this year doing some reconnaissance it's a crazy, crazy space over there. There's a lot of action happening, there's a lot of adoption. People are really enthusiastic about it but security almost seems like six months to a year behind North America and Europe as far as what exchanges are requiring, what investors are demanding of their portfolio companies. And so I think that now that they've had such major hacks happen over the last six months they're starting to realize. >> Major hacks talking about 60 Million. I mean I heard numbers up to 300 plus million. >> Yeah. >> I mean these are it's not like five dollars out of your wallet. >> Yeah. >> This is massive. >> Like over a billion dollars has been stolen in some capacity and like it's been pretty crazy yeah, so. >> Where's the big vulnerability? Exchanges, is it the DApps, where's the holes? >> They're all over the place but the biggest numbers definitely come from exchanges. Exchanges just need to be far more responsible and just, I feel like a lot of it is just negligence. They're growing so quickly that they don't pay attention to, you know, putting resources into educating their staff on really simple security practices. You know things like phishing and social engineering, like things that were good security practices still are good security practices. And a lot of those attacks are not even anything like some new exploit of a new technology it's the same kind of thing of like phishing, social engineering, sims swapping, you know, poor user access control, bad passwords. >> I mean the basics. >> Yeah. >> But this is what growth does to you you've point earlier. As more people start feeling growth there's more exposure service area wise. >> Yeah. >> New dynamics are kicking in. >> Well I'm starting to see new exchanges that are popping up that are you know taking security very seriously and the way they're treating it is that is their differentiator but in my mind like security shouldn't be a differentiator. Everybody should. >> (John laughs) >> If you're an exchange and you're holding massive amounts of other people's assets you should take security very seriously. That should just be a default, a standard. >> You have to be differentiating strategy with security it's not, it doesn't make sense. >> Marketing 101 you shouldn't be different, it should be standard. (both laughs) >> I mean if that's the state of the art, this is the problem. This highlights the problem. >> It does yeah. >> Alright so what's, what's the future for this event? How do you guys see this unfolding? Obviously this is the first inaugural event here HOSHO CON, How do you see it evolving? >> I think a lot of conversations should hopefully spur from this and we want to make this a yearly event. So we're definitely going to take a lot of the feedback from people that attended and see what they want, what they really enjoyed, what they really want to talk about. And even I think, a lot, since we're recoding all of the talks we'll be putting them up online at some point and I think it'd be really good to see like what the transition is like next year from like, where we were in some of these problems and addressing those problems you know a year from now. Like I think that will be really exciting. >> You guys are expanding in Europe, HOSHO good job with that. Who's the kind of clientele that you guys have? Is it ICO's? Is it companies? It is enterprise? Who are your target customers? >> So we have a lot of companies that are ICO's for sure. We have more exchanges and protocols joining those ranks. And then we are trying to move into enterprise as well. We made a partnership with Telefónica and developed a partnership with them to be able to sell to more enterprise clients and what they need. >> And what's your value proposition that you guys are offering? >> We are, well, we do smart contract audits, we do penetration testing. Those are things that a lot of companies in this space need. And then also we've been helping with security architecture and cryptocurrency assessments. >> And tooling, tools for development. >> And tooling, yeah we're trying to do our part. I mean we can't and won't do it alone but we try to develop things that, if we develop anything that's useful from a security perspective, we try and make it available for everyone. >> Yo Sub thanks for coming on theCUBE, appreciate your time and congratulations, it's a great event. >> Thank you. >> HOSHO CON sponsored by HOSHO and other's in the industry, it's an industry event, it's not just their company, it's their friends all coming together to solve the major problems with security, making it standard, making it safe and supporting the growth with the community. It's theCUBE covering live here in Vegas. I'm John Furrier stay with us for more CUBE coverage after this short break. (upbeat electronic music)

>> What? Welcome to a special keep conversation here in Palo Alto. Shot for host of the Cube. The Palo Alto Studios here in Palo Alto. Where here With Adam Casella, CEO and co founder of Snap Route and Glenn Sullivan, Cofounder. Snap. Right, guys, Good to see you. Thanks for coming on. So, you guys are a hot startup launching you guys? Former apple engineers, running infrastructure, I would say large scale an apple, >> just a little bit >> global nature. Tell the story. What? How did you guys start the company? We did it all come from the apple. A lot of motivation to see a lot there. You seeing huge trends? You'd probably building your own stuff. What was that? What was the story? >> So, yeah, basically way. We were running a large external stuff at Apple. So think of you know, anything you would use his user, Siri maps, iTunes, icloud, those air, the networks that Adam and I were responsible for keeping up, keeping stable on DH. You know, there was a lot of growth. So this is pretty twenty fifteen. We started snapping on August twenty fifteen, so it's a big growth period for, you know, icloud. Big growth period for iTunes. Lots of users, lots of demand. Sort of lots of building infrastructure in sort of a firefighting mode on DH. One of the things that occurred is that we needed to move to more of, you know, infrastructure kind of building out as you need it for capacity. If you start talking to the folks up the road, you know, with Facebook and Google and Microsoft and all those folks, you realize that you have to kind of build it, and then they will come. You can't really always be reactionary and building these kind of bespoke artisanal networks, right? So him and I had to come at it from both a architectural apology network kind of network engineering, geeky kind of level, and also from an automation orchestration. Visibility standpoint. So we pretty much had to do a Nen tire reimagining of what we were building as we were going to build these new networks to make sure we could could anticipate capacity and deploy things before you know it was necessary. >> Yeah, and make sure that the network is agile, flexible enough to respond to those needs, and change isn't required. >> You mentioned. The surge came around time for twenty, twelve, twenty, thirteen, different exactly apples been around for a while, so they had. They were buying boxes and start racking and stacking for years. So they have applications probably going back a decade, of course. So as Apple started to really, really grow Icloud and the iPhone seven, you still got legacy. So how did you guys constantly reshaped the network without breaking it with some of the things that you guys saw? That was successful because it's kind of a case study of, you know, you know, the next level without breaking >> anything. Yeah, did when migration was interesting, uh, essentially into doing it. She start attacking it for the legacy environments as Iraq. Iraq process, right? You gotta figure out what applications better most easily be able to move and start with the low hanging fruit first so you could start proving out the concept that you're talking about. You try with the hardest aspect or the Horace Apt to move. You're going to get it with a lot of road block. If my you might actually fail potentially and you won't get what you need where you need to go if you took, took some low hanging fruit applications that can easily migrate between, you know, an old environment and new environment. >> It's not dissimilar to environments where things are acquisition heavy, like we've got some friends at some other Silicon Valley companies that are very active. You know, acquisition heavy, right? It's It's a company that's one name on the outside, but it's twenty thirty different Cos on the inside, and what they typically end up doing is they end up treating each one of those as islands of customers, and they build out a core infrastructure, and they treat themselves more like an ice pick. So if you if you Khun, meld your environment where you're more like a service provider and you're different legacy applications and new applications arm or you know customers, then you're going to end up in a better situation and that we did a little bit of that, you know, at Apple, where they have, you know, really, really core service provider, head the type. You know, if a structure with all of these different customers hanging >> off his isolation options there. But also integration, probably smoother. If you think it was a service provider. >> DeMarcus solid right and clear. >> So talk about the nature you got cloud experts. I'll see infrastructure experts. You're really in the The Deep Dev ops movement as it goes kind of multi and agree because he got storage, networking and compute the holy trinity of infrastructure kind. All changing on being reimagined. Storage isn't going away. More data is being stored. Networks need to be programmable on DH, Secure and Computers unlimited. Now it's naming all kinds of innovation. So you're seeing companies, whether it's the department defense with the Jed I contract trying to. You're the best architecture on enterprise that might have a lot of legacy trying to re imagine the question of what to do around multi cloud and data center relationships. What's your perspective on this phenomenon? OK, we have tohave scale, so we have a little bit on Prem or a lot of fun. Prem, We'll have cloud and Amazon maybe cloud over Microsoft, so it's really gonna be multiple clouds. But is it simply the answer of multiple clouds just for the sake of being multi cloud? Or is there a reason for Multi Cloud is reason for one cloud. You sure? Your perspective on the >> sure it's it it's the thought might be that it's kind of most important have one overarching strategy that you adapt to everything, and that's sort of true, right? We'd say, Okay, well, we're going to standardize something like you, Bernetti. So we're gonna have one Cuban, these cluster and that Cubans cluster is going to run in desert. It's got running. Google is going to run in, you know, on Prem and all that. It's actually less important that you have one fabric or one cluster, one unified way to manage things. What's more important is that you standardize on a tool set and you standardize on a methodology. And so you say, Okay, I need to have an orchestration later. Find that's communities. You have a run time environment for my container ization. Sure, that's Dr or whatever other solutions you wantto have. And then you have a P structures that used to program these things. It's much more important that all those things they're standardized that then they're unified, right? You say I have Cooper Natives control, and I'm gonna control it the same way, whether it's a desert, whether it's in Google Cloud or whether or not it's on Prem. That's the more important part. Rather than say, I have one big thing and I try to manage so to your point, >> by having that control point that's standard with all the guys allows for. The micro services camp allows for all these new agile and capabilities. Then it becomes the cloud for the job. Things are exactly Office three sixty five. Why not use Azure? >> Yeah, I mean, that's the whole problem with doing like technology. Pick technology sake. Technology doesn't solve problems. Old is maybe a, you know, piece technologies to peace technology. And I think it's why you look at like, cloud native communities and doctor and and you know why Dr initially had a lot more struggle and widely more successful after you, Seymour, that cloud that have come out there because cloud native put a process around how you could go ahead and ensure these things. We deployed in a way that was easily managed, right? You have C I. D for I want my container. But out there, I have a way to manage it with communities in this particular pipeline and have a way to get it deployed. Without that structure, you're going to be just doing technology for technology sake. >> Yeah, and this is modernizing, too. So it's a great point about the control point. I want to just take it the next level, which is, you know, back when I was breaking into the business, the word multi vendor was a word that everyone tossed around every multi vendor. Why we need choice choices good. While choice down streams always, it was always something. There's an option. More optionality, less of a reality, so obvious is good. No one wants the vendor locking unless you It's affordable and spine, right? So intel chips a lock in, but no one ever cares, processes stuff and moves on. Um, so the notion of multi vendor multi cloud How do you guys think about that? As you look at the architectural changes of a modern compute, modern stories modern network facility, >> I think it's really important. Tio, go back to what you said before about office three sixty five, right? Like why would you run that? Other places other than deserve rights, got all the tools. Lt's. It's really, really critical that you don't allow yourself to get boxed into a corner where you're going to the lowest common denominator across all the platforms, right? So so when you're looking at multi cloud or hybrid cloud solution, use what's best for what you're doing. But make sure that you've got your two or three points that you won't waver on right like communities like AP Integration like whatever service abstraction layers that you want right? Focus on those, but then be flexible to allow yourself to put the workloads where they make sense. And having mobile workloads is the whole point to going into the Qatar having a multi cloud strategy anyway. Workload mobility is key >> workloads and the apse of Super Port. You mentioned earlier about ass moving around, and that's the reality, correct. If that becomes the reality and is the norm than the architecture has to wrap around it, how did you advise and how do you view that of unfolding? Because if data becomes now a very key part of a workload data, considerable clouds late and see comes. And now here you go, backto Leighton Sea and laws of physics. So I just start thinking about the network and the realities of moving things around. What do you guys see as a A so directionally correct path for that? >> Sure. So I kind of see if you look if you break down, OK? You have storage, You have network. You have, You know, applications, right? And I heard something that from a while ago actually agree with that. I says, you know, Dad is the new soil, right? And I look at that, OK, That that is new soil. Then guess what network is the water and the applications air seats. And if you have missing one of those, you're not going to end up with a with a, you know, a growing plants. And so if you don't have the construct of having all these things managed in a way that you could actually keep track of all of them and make them work in chorus, you're going to end up where e Yeah, I could move my application to, you know, from point A to point B. But now it's failed. Haven't they? Don't have connectivity. I don't have storage. Or I can go out there and I have storage and, you know, no connectivity or kind. Give me and, you know, missing one. Those competed on there and you don't end up with a fully functioning you know, environment that allows you >> so. The interplay between stories, networking and compute has to be always tightly managed or controlled to be flexible, to manage whatever situation when I was growing >> and you gotta have the metadata, right, like, you've got to be able to get this stuff out of the network. That's why that's why what we're doing it's not proud is so critical for us is because you need to have the data presented in a way, using the telemetry tools of choice that give you the information to be able to move the workloads appropriately. The network can't be a black box, just like in the in the storage side. This storage stuff can't be a black box, either, right? You have to have the data so that you could place the workload is appropriately >> okay. What's your guy's thesis for a snapper out when you guys started the company? What was the the guiding principle or the core thesis? And what core problem did you solve? So answer the question. Core problem. We solve his blank. What is that? >> So I think the core problem we solve is getting applications deployed faster than they ever have been right And having making, doing, making sure it's not a secure way in an efficient way. Operationally mean those air, basically, what the tenants of what we're trying to solve a what we're going for. And, uh the reason for is that today the network is withholding back the business from being able to employ their applications faster, whether it be in a polo sight, whether it be local on data center or whether being, you know, in the cloud from, you know, their perspective connectivity between their local, on prep stuff on whatever might be in, you know, eight of us is ordered >> Google and enabling that happened in seamlessly so that the network is not in the way or >> yeah. So if you could now see what's happened on the network and now you can have control over that aspect of it, you do it in a way. It's familiar to people who are deploying those applications. They now have that ability to place those work clothes intelligently and making sure that they can have the configuration of activity that they need for those applications. >> Okay, so I say I said, You guys, Hey, I'm solvent. Assault, sold. I love this. What do I do next? How doe I engage with you guys, Do I buy software? So I loaded Bokkelen infrastructure. What's the What's the snap route solution? >> So so the first part of the discussions, we talk about hardware. Obviously, we don't make our own hardware. That's the whole point of this allegation. Is that you by the harbor from somebody else? Andi, you buy the software from us, so there's a lot of times of the initial engagements. There's some education that goes on about this is what this aggregation means, and it's very, very similar to what we saw in the computer world, right? You had your classic, you know, environments where people were buying. You know, big iron from HP and Dell and IBM and Sun and everybody else, right? But now they can get it from, you know, ziti and kwon and sort of micro and and whoever else and they wouldn't They would really think of buying software from those same companies. Maybe some management software, but you're not going to buy your licks version from the same people that you're buying your harbor from. So once we explain and kind of educate on that process and some folks that are already learning this, the big cloud providers already figuring this out, then it's a matter of, you know, here's the software solution and here's howto >> be a threat to civilians getting what? My plugging into my connecting to certain systems, how would I just deploy? It will take me through the use case of installing it. What is it? Connect to >> shirt. So you have your white box top Iraq device or, you know, switching my on there. You load our code on there. We used only to initially deploy the stuff on there on. Then you can go. You can go ahead and load all the containers on. They're using things like helm and pulling it from harbor. Whether that be exciting, if you have locally or internally or you Khun bundling altogether and loaded in one particular image and then you can start, you know, interacting with that cabinet is a P I. To go ahead and sort of computing device. Additionally, we'll make sure this is clear to people who are, you know, networking guys going on. Cooper. Netease. God, what is all this? I never heard of this stuff. We supply a full fledged CIA, lied. It looks and feels just like you want a regular network device toe act as a bridge from what you do, those guys are comfortable with today to where the future is going to be a and it sits on top of that same apia. >> So network as we're comfortable with this correct that's going >> and they get to do stuff using cloud native tools without worrying about, you know, understanding micro services or continue ization. They now have the ability to pull contenders off, put new containers on in a way that they would just normally use. Is he alive? >> I want to get you guys thoughts on a trend that we've been reporting on and kind of coming on the Cube. And I certainly have been a lot from past couple years past year. Particular covering this cloud native since the C in C S Koo coupon was starting, were there when that kind of started. Developers, we know that world develops a scene and agile, blah, blah, blah, All that good stuff. Networking guys used to be the keys, have keys thinking they were gods. You're networking engineer. Oh, yeah, I'm the guy saying No, All the time I'm in charge. Come through me. But now the world's flipped around. Applications need the network to do what it wants yet. Right. So you start to see program ability around networks. Let's go live. We saw the trend. The trend there is definite there. Developer programs growing really, really fast. He started. See networking folks turned into developers. So youjust smart ones do. And the networking concepts around provisioning is that you see service measures on top of you. Burnett. He's hot. So you start to see the network. Parent Policy based this policy based that program ability Automation. It's kind of in the wheelhouse of a network person. Yeah, your guys. Thoughts on the evolution of the developer, The network developer. Is it really? Is it hyped up? Is that and where's ago? So >> we're going back to where we're networking originated from right. Developers started networking. I mean, let's not forget that right. It wasn't done by some guy who says I have a sea lion. I'm going now that work's work. Know someone had to write the code. Someone have deployed out there. But eventually you got to those guys where they went to particular vendors and those systems became or closed. And they weren't able to go ahead and have that open ecosystem that we, you know, has been built on the compute side. So that's kind of, um it does say, or, you know, hindered those particular that industry from growing, right. Never going. She's been hindered by this. We have been able to do an open ecosystem to get that operational innovation in there. So as we've moved on further and now as we get that, you know, those people saying no. Hey, you can't do anything. No, no, no. We have the keys to the castle. We're not gonna let you through here. The devil's guys, we're going when we still need to. The player applications are business still needs to move forward, So we're going to go around. And you could see that with some of the early ESPN solutions going on there says, you know what? I figure like that we just exist. Okay. Tunnel we're going to go over you. That day is coming to an end. But we're not going to go do that long termers air going on here because that efficiency there, the overhead there is really, really high. So as we start going on further, we're good. I have to pull back in tow. When we originally started with networking where you have people will use that open ecosystem and develop things on there and start programming the networks to match what's happened with the applications. So I see it. Something just >> clicked in your thoughts. >> Yes. So the smart network engineers, the guys and girls out there that want to be progressive and, you know, really adapt themselves are going to recognize that their value add isn't in being a SEAL I jockey and cutting and pasting from their playbooks in their method. They're forty eight page method of procedures that they've written for how to upgrade this chassis. Right. Um, your your expertise is an operational, you know, run time. Your your expertise is an operational best practice, right? So you need to just translate that. Lookit communities, looking operators, right, operators, existing communities to bake in operational intelligence and best practices into a bundle deployment, Right? So translate that. Right? So what's the best way to take this device out of service and do an upgrade? It's us step. It's a method of procedures translating that new acumen and his operator to put that in your communities bundle Senate in your image. You're good to go like this is. The translation has happened there. There is an interim step right. You know, our friends over at answerable are friends and puppet, insult and chef and all. They've got different ways to control. You know, traditional see allies using, you know, very, very kind of screen scraping, pushing the commands down and verifying getting output in changing that, it's possible to do it that way. It's just really painful. So what we're saying is, why don't you just do it? Natively use the tool like an operator and then put your intelligence into design operational intelligence layout like do that level instead of, you know, cutting and pasting >> for so developers are it's all developers. Now it's emerged together. Now you have open >> infrastructure is code right? >> Infrastructures code? Yeah, everything >> Israel programmer, I mean, but you can't you can't and I want to make sure it's already clear to include was saying that you can't get away from the guys who run networks and what they've seen experienced that they've had so but they need to now take that to his point and making it something that you actually can develop in code against and actually make into a process that can be done over and over again. Not just words on paper. >> That's what I think they were. Developer angles. So really, it's about translating operational efficiencies into the network into code because to move APS around do kind of dynamic provisioning and containing all the services that are coming online. >> And you can only do that if you've actually taking a look at what how the network operating systems architected and adopt a new approach of doing it because the legacy, ways of doing it don't work here >> and getting an operation from like what you guys were approached. Your strategy and thesis is having OS baked as close to the network as possible for the most flexible on high performance. Nice thing. Secure abstraction, layers, first proxies and >> simple it down >> with that great guys. Thanks. And good luck on eventually keep will be following you. Thanks for the conversation. Thank you for your conversation here in Palo Alto. I'm John for you're talking networking cloud native with snap route. Launching a new operating system for networks for cloud native. I'm John Forget. Thanks for watching.

from the Hard Rock Hotel in Las Vegas it's the cube recovering no joke on 2018 brought to you by Osho okay welcome back everyone we're here live here at hosts show con in Las Vegas the first security conference for blockchain its inaugural event and we're here with Gabriel Shepherd VP of strategy at Global Strike for host show they're the hosts of the event although it's an industry conference for the entire community all coming together Gabriel thanks for coming on and spend the time yeah thanks for having me thanks for you know supporting the event and we appreciate your team coming out and covering what we're trying to build here well we think it's super important now so you guys are doing a great service for the industry and stepping up and put in the event together and so props to you guys thank you this is not a hosts show sales like conference you guys aren't selling anything you're doing the service for the community so props to you guys in the team great stuff and we know this is a kernel of all the smartest people and its really an industry event so it shows in the session so appreciate that yes we think it's important because you know we see a lot of trends the queue has a unique advantage in how we cover hundreds of events and yeah so we get to go we see a horizontal observation space from the industry and when you have formation like this with the community this is important you guys have up leveled the conversation focused the conversation around blockchain where security is the top-level conversation that's it no I feel pitches right so for the folks watch and this is really one of those events where it's not a huge number of people here like the thousands and thousands of other blockchain shows that make money off events this is about community and around getting the conversations and having substantive conversations so great job so for the folks watching the content agenda is super awesome host show con-com you go browse it but give us some color commentary on some of the types of speakers here the diversity yeah I think I think the first thing that we wanted to accomplish was with Hojo Khan was we we wanted to put front and center the conversations that were not taking place at other events there are plenty of platforms and opportunities for companies early-stage companies to go pitch there are other great conference organizers that do events and have their own wheelhouse but what we wanted to do was put together a conference that was focused around a type of conference that we ourselves would want to attend as a cybersecurity firm and you know after traveling the world I mean you know you you and artesia spoke many times and hosho has sponsored quite a few events around the world after attending by the end of 2018 will attended something like a hundred plus events in some capacity and so it was clear to us early on that companies weren't our conferences weren't going to focus on security or at least put them on the main stage where I believed that they should be at least with all the hacks happening so what we wanted to do was bring together thought leadership with respect to security technical leadership with respect to developers and security engineers and we wanted to bridge those two what I mean by that is we wanted thought leadership that could get executives to start the non-technical people so start thinking about security in the larger format and how it's applicable to their company but what we also wanted to do is we wanted to connect these non-technical people with the technical people in an intimate setting where they could learn think about the brain power that we have in this hotel for hosho Khan you've got the minds of Andre Assante innopolis Diego's LDR of RSK Michael berkland of shape-shift josub Kuan of hosho we've got Ron stone from c4 you've got an on Prakash a world-class white hat bug bounty hunter consider what he's top-5 bug bounty hunter for our top top bug bounty hunter for Facebook five years in a row the the level of the calibre of technical talent in this building has the potential to solve problems that Enterprise has been trying to solve individually for years but those conversations don't take place in earnest with the non-technical people and so the idea behind hoshikawa was to bridge those to provide education that's what we're doing things like workshops sure we have keynotes and panels but we also have the ability to teach non-technical people how to enable two-factor authentication how to set up PGP for your email how to set up your hardware wallet these things aren't these conversations are not the bridge is a clearly established we interview people from on the compliance side all the way down to custodial services which again the diversity is not a group think events just giving them more props here because I think you guys did a great job worthy of promotion because you not only bridge the communities together you're bringing people in cross functionally colonizing and the asset test for me is simple the groupthink event is when everyone's kind of rah rah each other I know this conditions we got Andre is saying hey if you put database substitute database for blockchain and it reads well it's not a real revolutionary thing and oh all you custodian services you're screwed I mean so you have perspectives on both side that's right and there's contentious conversation that's right and that to me proves it and as well as the sessions are highly attended or we don't want it we don't want a panel of everybody in agreeance because we know that's not reality i mean that you you bring up the issue of curse of custody a prime example is we had a great talk a four-person panel led by Joe Kelly who's the CEO of Unchained Capital he had a panel with traditional equities custodian Paul pooi from edge wallet Joseph Kwon is the CEO of hosho and there was clear differences of opinion with respect to custody and it got a little contentious but isn't that the point yeah it's to have these conversations in earnest and let's put them out in the public on what's right and what's wrong for the community and let the community to decide the best way forward that's the best is exactly what you want to do I gotta ask you what are the big surprises for you what have you learned what's the big reveal for you that you've super surprised you or are things you expected what were some of the things that went on here yeah I think the biggest surprise to me was the positive feedback that we received you know I understand that we know people maybe looked at how shock on year one and said hosho like they're a cybersecurity firm what are they doing running a conference right but my background is a you know I've produced conferences I have a former employee of South by Southwest I believe a big an experience and so when we started to put this together we thought we knew we would make mistakes and we certainly made mistakes with respect to programming and schedule and just things that we had didn't think about attention to detail but we had plans far in that the mistakes were mitigated that they weren't exposed to the public right there behind the scenes fires that kind like a wedding or a party but no one actually really notices sure we put them out behind the scenes nobody that the our guests don't notice and that was my biggest concern I'm pleasantly surprised at the positive feedback we've yet to get any negative feedback publicly on Twitter telegram anecdotally individually people now they made just being nice to my face but I feel good about what the response that we've got it's been good vibes here so I gotta ask you well sure the DJ's were great last night good experience yeah experience and knowledge and and networking has been a theme to correct I lost him the networking dynamics I saw a lot of people I had I had ran to some people I met for the first time we've had great outreach that with the queue was integrated in people very friendly talked about the networking and that's been going on here yeah I mean this panels are great I'd love to hear from from panels and solo presentations but a lot of work gets done in the hallways and we have a saying in the conference business hallway hustlers right the ones that are hustling in the hallways are those early stage entrepreneurs or trying to close deals trying to figure out how to get in front of the right person serendipitously are at the bar at the same time as somebody they want to meet that is to me conference 101 that is the stuff I grew up on and so we wanted to make sure that we were encouraging those interactions through traffic flow so you'll notice that they're strategically the content rooms are strategically placed so that when you're changing rooms people are forced to cross interact with each other because they're forced to bump into each other and if you look at the programming we purposefully to our demise to be honest year one put a lot of programming that was conflicted with each other we made people make a decision about what talk they wanted to go to because there were two really compelling people at the same time or 10 minutes off yeah and so you had to make a decision vote with your feet you got to vote with your feet and and and from a conference perspective we call that FOMO right we want our guests to FOMO not because we want them to miss a particular talk but because we want them to be so overwhelmed with content and opportunity with networking that they when they walk away they've had a good experience they're fulfilled but they they think I got to go back here too because that thing I missed I'm not gonna miss this yeah we will point out to you guys made a good call on film all the session everything so everything's gonna be online we'll help guys do that yep so the video is gonna be available for everyone to look on demand you also had some good broadcast here we had a couple shows the cubes been here your mobile mention the DJs yeah yeah so good stuff so okay hallway conversations our lobby con as we call it when people hang up a lot on it's always good hallway con so what Gabriel in your mind as you walked around what was some of the hallway culture that you overheard and and that you thought were interesting and what hall would cartridges were you personally involved in the personal conversations I was involved with is why isn't somebody not this station why someone not Gardens but I will tell you i from what I heard from from conference attendees the conversations that I heard taking place were and I hope Jonathan doesn't mind but Jonathan Nelson from hack fund spoke on our main stage and I hope he doesn't mind me speaking out of turn but he came to me said this is one of the best run blockchain conferences I've ever been to and to have somebody like Jonathan say that who has done hundreds of talks and thousands was really meaningful but but what was more important is to talk to him and him feel comfortable enough to sit down with me and just talk generally that's the vibe we want for every attendant we want you to feel comfortable meeting with people in the hallway who you've never met and be vulnerable from a security perspective you know Michael Turpin for example sitting down and talking proactively about being the AT&T hack great these are opportunities for people to really talk about what's happened and be vulnerable and have the opportunity to educate us all how to get better as an industry you know the other thing I want to get your thoughts on is obviously the program's been phenomenal in the content side thank you but community is really important to us we're of a community model to q you guys care about the community aspect of this and as a real event you want to have an ongoing year after year and hopefully it'll get bigger I think it will basically our results we're seeing talk about the community impact because what you're really talking about there is community that's right well I mean Vegas we talk about there's multiple communities right regionally post-show is a Vegas based company we're born here we close I think forty some employees all based here in Las Vegas which is our home so the first thing that we did with respect to community as we created a local local price if you're a Nevada resident we didn't want you to have to invest a significant amount of money to come to something in your own town the second thing we did is we've invited the local Vegas Bitcoin meet up in aetherium meet ups to come and partake and not only participate but contribute to the content and opening day in fact there was so much influx of people from those meetups it wasn't official it wasn't like a program where we had actually a VTEC set up I thought I was gonna be like a meet-up there were so many people that attended we had to on the fly provide AV because we were overwhelmed with the amount of people that showed up so that's a regional community but with respect to the community from blockchain community what we wanted to do is make sure we brought people of all ethnicities all countries we have 26 countries represented in the first blockchain security conference and you had some big-name celebrities here yeah Neil Kittleson Max Keiser you go mama Anan Prakash Yakov Prensky a layer from your side pop popcorn kochenko has some big names yeah I'll see andreas yes here keynoting yeah I'm Michel parkland andreas Diego Zaldivar I mean these lena katina Viren OVA I mean these are big names yeah these big names okay what so so what's your takeaway of you as you know my takeaway is that there's a there's a yearning for this type of event my takeaway is that we're doing something right we have the luxury as hosho and that we're not an events company people think that might be a disadvantage to run a confident you're not a cotton vent company I think it's an advantage yeah because it holds my feet to the fire yeah much closer than an event organiser who doesn't have a company reputation and brand to protect hosho as you know has a good brand in the cybersecurity world with respect to blockchain we don't have the luxury of throwing a poor event giving you a bad experience because that would tarnish house of but also your in the community so you're gonna have direct feedback that's right the other thing too I will say I'm gonna go to a lot of events and there are people who are in the business of doing events and they have a profit motive that's right so they'll know lanyards are all monetize everything is monetized yeah and that sometimes takes away from the community aspect correct and I think you guys did a good job of you know not being profligate on the events you want to yeah a little bit of cash but you didn't / yeah / focus on money-making finding people right for the cash you really needed about the content yeah and the experience for and with the community and I think that's a formula that people want yeah I would like to see the model I would like to see the model changed over time if I'm being honest a majority of crypto conferences today are paid to play so a lot of the content you're getting this sponsored so I'm okay with that but I think it should be delineated between con disclose your disclosure you don't want water down the country but but the conference circuit and crypto is not ready for that it hasn't rest in my opinion hasn't reached that level of maturation yet like I told you I I'm a former South by Southwest guy that like my belief is you create the content and the sponsors will come I don't I don't begrudge conference organizers for for for sponsoring out events because they're really really expensive a cost per attend to manage demand to this hype out there yeah hundreds of dollars per attendee I get it I understand why they do it but what I would like to see is the model change over time whereas as we get more sophisticated as a technology space we should also grow as a vent and conference circuit as well what I mean by that is let's change the model that eventually someday it's free for all attendees to come and those conferences and the costs associated with them are subsidized by companies that want access to the people that are tending them it sounds like an upstream open source project sure how open source became so popular you don't screw with the upstream yep but you have downstream opportunities so if you create a nice upstream model yep that's the cube philosophy as well we totally agree with you and I think you guys are onto something pioneering with the event I think you're motivated to do it the community needs it yeah I think that's ultimately the self governing aspect of it I think you're off to something really good co-creation yeah I'll see we believe in that and the results speak for themselves congratulations thank you so much I appreciate you guys coming here and investing your time and I hope that all our staff has been accommodated and the hard rock is treated you well you guys been great very friendly but I think again you know outside of you guys is a great company and great brand and you guys and speaks for itself and the results this is an important event I agreed because of the timing because of this focus its crypto its crypto revolution its cybersecurity and FinTech all kind of coming together through huge global demand I mean we haven't gotten into IOT and supply chain yeah all the hacks going on with China and these things being reported this is serious business is a lot on the line a lot and you guys having a clear focus on that is really a service business Thank You staff doing it alright our cube coverage here in Las Vegas for host Joe Kahn this is the first conference of its kind where security is front and center it is the conference for security and blockchain bringing the worlds together building the bridges and building the community bridges as well we love that that's our belief as well as the cube coverage here in Vegas tigress more after this short break

live from Las Vegas it's the cube covering IBM think 2018 brought to you by IBM hello everyone welcome back to the cube coverage here at IBM think 2018 in Las Vegas Nevada the Mandalay Bay it's a cubes exclusive covers three days of wall-to-wall interviews thought leaders experts entrepreneurs people making an impact and our next guest artists ani who's the co-founder of hosh io h OS h o de Ojo kayo advisor at the pink sky capital he's a cube alumni a walk in off the streets cuz he lives in Las Vegas but very instrumentals are connected to this community because of his pioneering work in in crypto blockchain and the future of money architects great to see you thanks for coming by thank you for having me it's good to be back on the cube great second time and second time yeah only couple we just saw each other the Bahamas the first security token conference yeah I bike on I I be on IBM's really big on supply chain this is their visitor old school you know generations of providing software for businesses b2b and now blockchains their big thing but blockchains yeah pretty straightforward yeah you know you get efficiencies but they're not talking about token economics because they talk about something execs here they're like well that implies the general public in their world thinks cryptocurrency they think Bitcoin so I want to connect the networks together our network IBM's network your network because the melting pot of this trend is really about blockchain cryptocurrency in the sense of the value around tokens and how tokens can be harnessed to capture the values I want to get your perspective as these worlds collide so I think that IBM is doing a great job by spearheading a blockchain movement and they're very they're focusing on the fortune 500 and the key with Fortune 500 companies right now is that they have rooms full of Java developers Java engineers and aetherium is the protocol right now that is most commonly found the majority of icos and token generation events that have occurred to date have all been on etherium x' network and etherium is the most and they found in blockchain however the etherium blockchain the language to build and launch token generation events on aetherium you have to write in a language called solidity and solidity is a new language and iBM has made a smart move by doing everything in Java and JavaScript similar to a lot of the new block chains that are aiming to compete with aetherium and the key distinction just to kind of put it out there when I get your reaction to and get some commentary around is IBM is not competing with public block chains they're looking at a in a different way they're saying hey you know you can have I guess private blockchains I mean it's not a really a dirty word they because they have a different use case correct I think it's very important especially when it comes to things like healthcare you look at the health care industry healthcare records will not be going on public block chains and so the hyper ledger fabric framework may make sense for things that need to be HIPAA compliant for example so reliability is key so what's their jannat like say hashed crafts got a lot of traction in their performance and their speed they got time stamps that's not a native blockchain yet that's kind of getting some traction IBM's got something similar for those markets that require the reliability the performance and the security so help the audience understand IBM's moves here because IBM's conservative so they don't really want to throw the word cryptocurrency out there because it might be misunderstood but this is gonna end up in token economics how are you explaining what the moves ibm's making to the average person that might not know the inside nuances in baseball for say the crypto market I think what's interesting is that iBM has a more mature focus on this space and you know they have direct ties historically to the fortune 500 companies the way others do not and so they've taken a much more sophisticated and a much much more conservative approach you don't see IBM throwing around the word cryptocurrency and that's a smart move because it's about the cryptography that secures block chains in a decentralized ecosystem and it's that the discussion of just tokens and token sales and leveraging tokens as a currency it's a premature time in this entire industry to be having that discussion so although it's going on it's a distraction for IBM you saying yeah because we but it's more interesting for smart contracts to be written that our functional smart contracts that for the first time ever white collared middlemen are being cut out of the picture in a new trustless decentralized ecosystem so talk about where IBM could take this with token economists obviously do you think that it's all leads to some sort of tokenization is that gonna be where the value capture is gonna be how does IBM get there in your mind I think they get there by having fortune 500 companies launch legitimate decentralized applications on their blockchain and that's just what Java JavaScript it's because most fortune 500 companies already have a plethora of Engineers globally that they can simply have start working on IBM's blockchain whereas you don't see that as a risk for IBM no that's that's IBM's advantage because today if the fortune 500 companies aren't building on aetherium whose blockchain mainly because of the learning curve it takes for a current full stack engineer to become a solidity engineer what's the etherium future now obviously they have they're working on lightning seeing some things going on that area the Lightning is Bitcoin is plasma yeah plasma sorry I got them confused so they got to go through the work this and some real work that's got to get done the theory of childs a big developer community the biggest the biggest so do those merge with the IBM communities downstream at some point or is it okay to be separate and does it matter I think they'll remain separate and in this case I I highly doubt that a theory IBM hyper ledger will go down the route that route stock has gone root stock essentially is the etherium virtual machine sidechain to the Bitcoin blockchain enabling smart contracts on the Bitcoin blockchain for the first time and rootstock is a very interesting project however IBM is its own ecosystem and the way in which they're catering to the fortune 500 is extremely intriguing and from Hojo's perspective we want to be auditing smart contracts that are functional that are written by more sophisticated players in the industry centralized ecosystem our main focus is just security auditing and there's gonna be a lot more smart contracts written by more sophisticated players on IBM's blockchain then possibly the other ones right now we have we have not seen a plethora of Fortune 500 companies by any means launching smart contracts on the theorems blockchain and blue chips banks or whatever as they try to disrupt themselves need to get us to partner governments okay so how about for a minute I just take a second to talk about your business I know we covered this at polycon and the Bahamas but for the sake of the context to IBM yeah talk about what you guys are doing we're specifically in the marketplace of partners would you sit if you were parting with IBM and and your role that you could possibly take with IBM so to take a step back quick host show the word itself hosho and means security in japanese and we started this company eight months ago my co-founder yo Kwon and I and our laser focus is blockchain security and being the global leader within the blockchain security space so as far as we see there's new blockchains being made new protocol tokens being launched as well as new tokens being launched as well as do smart contracts being written that are functional for the entire business and no matter what blockchain a smart contract is written on that smart contract is code that has been written and that code has to be audited by a professional third party and we are that professional third party that there's a line-by-line code review of the smart contract and finds all security vulnerabilities and we've been building proprietary tooling to find vulnerabilities faster and faster and faster we do a gas analysis to make sure that that blockchain is not being clogged we conduct the static analysis to find any hidden functionality within the framework of the smart contract and the last part which is very crucial is that yeah very uniquely qualified full stack engineer with a unique QA mindset and a security background who knows the language in which this is coded which currently most projects that were auditing our aetherium ERC 20 tokens written in solidity someone has to marry the source of truth which in the case of an ICO is a white paper and marry the white paper to the smart contract and make sure is the smart contract doing what the white paper says codify the white paper basically this process of auditing is gonna be ever more crucial within the the business that IBM does with Fortune 500 businesses because when a publicly traded company launches a smart contract for a decentralized application security is the highest priority and abilities is where the hackers could come in just be on a time to market getting those smart contract codes written it was fully baked it's irreversible once the smart contract is launched and millions of dollars are gonna go through this smart contract it's been regular practice in the cybersecurity world to type up code and to have it reviewed by a third party auditor we're simply applying the exact same logic to the blockchain space and it's exciting to see more blockchains by sophisticated players like IBM come to fruition and we're looking forward to actual projects from big players around the world launch on IBM's blockchain and hosho is looking to be a preferred partner of IBM's to do all their security work whether it's smart contract auditing or penetration testing and real quick on penetration testing that's our other core service that we provide and penetration testing is both for websites and for crypto currency exchanges in which we're making sure there's no security vulnerabilities within your website and finding every way possible to penetrate your website or your exchange and every time code is changed you open up the doors to more vulnerabilities and so in the crypto currency exchange space right now we're seeing that new exchanges are being made but sophisticated investors don't know if this is a safe place to trade hundreds of millions of dollars or not yeah and so when you got commerce being John I mean IBM as folk as you mentioned is legit and they're doing a great job by the way props to IBM for doing what they're doing they've been in for multiple years now and they're supporting the Apache project they're putting their their weight behind it but these are real-world examples granted supply chain might be boring to some audiences but not to others I mean you're moving real product around this is commerce with digital fingerprints and code and potentially tokens that's a highly gonna accelerate the payment process I mean the notion of clearing goes away it's instant yes this is a highly accelerated money transfer value capture value Tran for environment you can't take me chances yes and security is primal concern and we're excited that companies like IBM value security and this space is one that the dust has yet to settle and what's gonna help the dust settle within the blockchain ecosystem is more priority on security so what's your take if you are gonna give a talk here we're doing talking here in the cube so it's awesome it's gonna be alive and on-demand as well your advice to people saying you know we got a tokenizer our business I need to start with blockchain I can see some areas to create some efficiencies around some inefficient processes and create new business models I got to get started your thoughts my thoughts are take a step back and first evaluate do you have a business what problem are you solving once your business is actually generating some revenue and you've evaluated why the concept of a blockchain could be interesting for your business then pick a blockchain and stick to it and then when you start building on that block chain you've figured out that a token could actually be leveraged within this decentralized application that you're building then you can start figuring out what the token economics of it would actually be I think what people are doing nowadays is rushing to create a token because of their excitement about the fundraising mechanism that an ICO is and an ICO is democratizing to some extent at least global capital raising and I think that fundraising mechanism is not going anywhere that that fundraising mechanism is here to stay however the majority of ICO projects that we're seeing occurring today I don't think these companies will be around in the next couple of years which shows how immature to some extent the industry actually is whereas maybe the projects that are built and launched on IBM's block chains that they develop maybe they're more sophisticated and will be companies that have gone through a more rigorous process of making sure security was a primary concern and they wrote quality code for quality businesses that are actually leveraging decentralization in the appropriate way not the other way around of we want to raise capital so let's invent a reason to have a token or you have a big case right now in Silicon Valley at least is you have companies that are very serious a and B and decided let's do an icy overseer you see and that that's tricky it's not always the right solution when you're saying is don't confuse the ico crazy fundraising arbitrage and new new model to applying supply chain tokens and blockchain to a durable business agreed and on the same token we have people in the space whether they're investors they're lawyers PR firms exchanges they all need to mitigate their risk by keeping security as a concern for them both in-house and for the companies that they're working with yeah lawyers don't want to be doing lawyer work for a company that will turn out to be a scam coin and someone has to do a security audit of that token the same goes for a PR firm a marketer and in exchange exchanges should not be listing tokens that have not gone through a smart contract audit well it's good to know we got a cube alumni here in the cube to help us with our security audit yeah well the answers the life were in a cube interview so do we got one right here I want to just get into in topic you and I were talking of dinner the other night when we had we saw each other a few nights ago about the problem of picks and shovels and tools and maturity in this new emerging area can you um can you just take a minute to explain what that we were talking about there and I thought you had a good point I mean maturity of the space is not mature it's growing it's embryonic but moving fast and there's need for tools let's unpack that just share your thoughts vision so I think that a lot of people have been more excited to join in an IC o---- a token generation event and do more quick money grabs but to me what's more exciting is the infrastructure that's needed for this industry to actually grow and mature an infrastructure is infamously known as picks and shovels because when the gold rush happened the people who made the real money or the people selling the shovels to the gold diggers and what's included in that is businesses like our own hosho which is selling security audits of smart contracts doing penetration testing bringing maturity and making making things less risky for for everybody in this space so we start we see ourselves as selling picks and shovels on the other hand I'll give you an example Goldman Sachs has a trading desk today it's not 24/7 stock market Oh at 9:00 closes at 5:00 what happens tomorrow when a 24/7 crypto currency trading desk is turned on at Goldman Sachs do the traders that are now 24/7 have the appropriate tools and the governance built into software to manage a team of 24/7 traders at Goldman Sachs today when you have traders trading in the stock market they have a plethora of tools that make them snipers and you have certified market technicians telling hedge funds that this isn't gonna go up two points here in three points they're reading candlesticks in the cryptocurrency space it's like poking a stick you go from being a sniper to having a stick find by Wars like a blind man so companies there's a dozen companies that can be made building the infrastructure for just what I just said the governance with four trading floors this is a really good point and I wanted to bring it up because in these emerging markets these white spaces for tools and technology to help the overall trend grow faster has always been a successful man however you mentioned something about the goldman sachs trading this and that is it literally could be turned down overnight right so that's the problem you can accelerate things too fast and not be prepared that seems Oldman honest I'd know Goldman's done a great job at being very much forward-thinking they've been at every money 20/20 since the beginning of that FinTech conference and they're definitely in this pickle this exercise the analogy is a company can turn on a new model fairly quickly faster than the old days which we're taking months and then now you can do it really on a much shorter timeframe that means they potentially could be exposed if they go too fast yeah this is where the ecosystem has to help yeah I think the bulge bracket banks are treading the water very carefully JPMorgan is doing things they're involved with aetherium Z cash - JPMorgan has a lot going on on this front but these are publicly traded monster banks they're not going to take any risks these are they have a they have stockholders to to answer to they have the US government we have over 150 regulatory arms just regulating the finance industry in the United States and so I think it the American citizen citizen is quick to point fingers to bulge bracket banks and those banks are answering to too many regulatory arms this is one of the downsides of the United States right now in general is the increasingly coercive environment of the government ybm certainly got the blue chip company got the the fortune 500 but they also have a marketplace and that's where they could really kind of change the game feeling in those white spaces yeah IBM's marketplace sounds very exciting and my mind just goes to who's handling the security for everything to do with IBM blockchain we're hoping at Osho arch edge thanks for joining us thanks for sharing your your insight here in the queue with an IBM think conference breaking down all the top news that's really around blockchain at AI would date at the sin of the value proposition all being disrupted by new decentralized technologies blockchain being the beginning and a lot more is happening and certainly we're in and bring it to you on the cube no matter where it is will be there I'm John furrow here and Las Vegas for IBM think coverage we'll be back with more coverage after this short break [Music]