>> live from Boston, Massachusetts. It's the queue covering your red. Have some twenty nineteen brought to you by bread. >> Welcome back to the Cube. Continuing coverage here read. Had some twenty nineteen day three of our three days of covering some nine thousand attendees, great keynotes, great educational sessions and a couple of great guests for you to meddle. And John Walls were joined by Marco Bill Peter, who is the senior vice president of customer experience and engagement at Red Hat. Good to see you, Marco. Thanks for having the job on the keynote stage this morning. And Dr Christoph back, who was the head of infrastructure from Hilty and Christof. Thank you for being here is Well, thankyou. Hailing from from election Stein. And we think you're the first guest alum were to check our database, But But we've set a new record today. So thanks for adding to our having. First off, let's talk about Hilty. I'm sure people don't stay healthy. I've seen them, but this building probably wouldn't be here without you. Have imagined half the city wouldn't be here without you. But just tell folks at home a healthy a little bit about where you fit into the construction. >> Lt was founded in the nineteen forties in principality of a Lichtenstein as and is now today leading supplier for the construction industry. We provide tours, consumables, services and software solutions for professional construction companies. Daddy's from hammer drills, two anchors to calculation software and overall complete services for the industry. That's what hell is doing. >> So you did a very good job this morning on the keynote of painting that picture about about the scope of your work and the necessity of your work, the vitality of it. Because construction projects, as we all know, how very strict deadlines. Sometimes they have unique needs. They have immediate needs emergency needs, and you're in the center of all that. And so your technology is central to your general operation. >> Absolutely yes. I mean, with twenty five thousand or twenty nine thousand employees, twenty five thousand users in our system, basically, everybody's using everyday ASAP or the fast majority of users. We have ten thousand concurrent users every day on our system. That deal with customer requests with orders with quotes, but also, of course, with complaints with repair handling and so on. In >> just a few. Yeah, just >> so Marco, I hear ASAP and, you know, bring me back to when? Oh, well, you know, Lennox was that stuff that sat on little sidelines. We're well past that. You've got so many customers that run their business, you know, mission critical around the globe. Just give give, give us a little bit of background on the partnership with Hilty and Red Hat and Solutions like asap. >> Yes, sure. Yeah. The Department of Hilty goes back to, I think, two thousand seven for me. Personally, I started working with Hilton for another company in ninety three. So I know where the hell did Quite well, actually studied in the same town next to Lichtenstein, Son of the mail. And And it's it's amazing to see the journey kind of two thousand nine going all s ap mission critical on rail and now actually moved to Asa P s for Han. And yes, Hill is one ofthe declines. But it kind of talks that we can handle this mission. Critical applications are mission critical customers and built this good relationship to make sure they have these these courage to actually do this Bold jumps limited The last six months. >> Christoph, you know you've got a broad, you know, roll at the at the company way talked to so many companies on becoming a tech company on becoming a software company. Well, software is critical, but at the end of the day, you know, infrastructure and running your business is core. You know, you're not going to become a fully digital software. You have real stuff in the physical world that lots of people and lots of, you know, physical things that need to go to a little bit about that balance. And now the company has been changing over those last ten years. >> I was excited to be open with you. I was really excited when our executive board a couple of years ago, besides tools, consumables and services also added software into a strategic pillar for Hilty. Um, and while I believe that software will be an interesting pillar for us, well will generate additional revenue, will generate additional sales from early. Also in the consumables and tools and services piece software becomes more and more important when you look at the journey off building a building like this. As you mentioned John, I mean it starts with specifying it starts with the planning on CD, and it ends at the end with with Asset Management. Where are the tours and so on. So it's a complete life cycle through out the building off off throughout the construction of ah building. You >> know, Marco had mentioned that you made this decision to migrate Ohana last year right? Twenty eighteen or or where he might be rated last year? Isn't last year's decision made before that? Talk about that a little bit, if you would please and where Red Hat fit into that? Because that that's that's not a small decision, right? I mean, that's a That's a very calculated and I wouldn't not risky, but it's It's just a big move. Yeah, and so the confidence that you had a CZ well, that red hat was your partner to make that happen. >> Absolutely. I mean, the announcement of SAPI to support Hana as thie only database after twenty twenty five voice one off the factors to push us into that direction, that that was then clear for us that we want to go there. And it was also pretty clear for us that in our size it was not that easy to move in twenty twenty three or something like that in that direction, but that we have to be the first movers to be fully supported by ASAP and >> all >> these Parkins because later on, they will be busy with migrating all the big shots. So Wade took the decision to move first and soon, and that allowed us to be in the focus off all thes attached partners ASAP. But also read had also tell emcee for storage and HP for for servers. That meant that we had confidence that we have full attention from all these providers and partners to help us to migrate. On the other hand, it was clear the the the journey we started in two thousand nine has indicated by Marko that we moved to an open software that we move to commodity hardware. Intel based server hardware was a move that had paid off in the past, and we didn't want to go away from that and move again to a proprietary hardware or software solutions. So it was very clear that we want to do that jointly with red hat on commodity and until based service and That's how we went there, Right? >> So, Christophe, big theme, we hear not only at this show, but almost every show we go to is today customers. It's, you know, the hybrid and multi cloud world I see ASAP at all of the Big Cloud shows that that that we cover well, we're just cloud fit into your over discussion, you know, at your company. And then, you know, we can drill down to the specifics of that sapien red hat. But it's what do you have? A cloud strategy, as it were? >> Oh, yes, you know, we moved fairly soon to Amazon with all our customer facing workload. So when you go to hilton dot com or any of our Web pages, you typically land on a ws powered website because that one gave us the flexibility off operating systems off databases of whatever we needed. That was that was available there with our internal workload. However, So all the software we use Internet eternally toe run the company. We have a world that is split between ASAP, which runs entirely on Red hat, um, and the rest of the workload. Witches to a large degree, windows based workload so there. We decided a few years ago to Movinto Microsoft Azure platform to move the internal workload into Azure as it is mainly Windows based. >> So Marco actually want one a depart from healthy for a second. Just give us a little bit of a broad view. You know, we've talked to you many times. You talked about the stage. You know, the customer experiences a critical piece of red hats mission out there When I talk to customers today, One of the biggest changes they've seen the last few years is I'm managing a lot of stuff that's not in my environment. It's the stuff I'm responsible for it and something goes wrong. I'm absolutely getting a call, but you know, it's not my network. It's not my servers. It's not my piece there, but I have to do all of them, you know, got imagine. That's been a transformation for red Hat in the partnerships, and you're everywhere, so it just gets a little context. Yeah, I >> mean, you described it very well, right? I mean, I think the last two years before, I think it was just like some use cases in the public club. But today. The harder cloud is here, right? And everybody does it right. It's not like just one company from a customer experience to stand behind. Like I mentioned it on the state gets harder. Right? And you gonna have these partnerships, right? One partnership, right. We can talk about the azure. We have people in enrichment, right? Think about it today. And then everything changed with start having on stage here. But we have support people in micro for the last two or three years, right? Same diff ASAP as an example, right? We have people. We actually build a fairly large teeming, involved off to be close of us. Time together. I want to do that speed ASAP. A cloud bead on regular bear closes in general. Yes, That challenges. You mentioned networking, right? It gets tricky, right? And he shifted from, but it's unavoidable, right? It shifted from, like, okay, we own and control the stacked kind of too. Yes, you need to know you're open source after and to have really partnerships. Right? And I think the announcement Microsoft, too have this managed services offering that we do joint. It's That's what we're driving so that we can do this better together with partners. >> Marco is great to hear you that but Christoph, he's not listening. Tell us to reality. You've worked with Red Hat for ten years. You're going to cloud how they doing? How's the ecosystem, the vendors in general? They're all up on stage, holding hands. I mean, it's it's seamless and nobody ever point fingers. I'm sure >> to be very, very honest with you. I mean, I appreciate it last year, hearing that redhead will be offered in Azure. I mean, that was not possible to mention those two company names in one sentence in the past, at least for us as customers, and that that was a bold statement last year that those two parties will suddenly join. That fits very well in our strategy, because we believe internal workload for Hilton should run in in In Azure seeing on last Tuesday, Microsoft and Red Hat shaking hands and movie. Even beyond that one was, for me, them almost the most exciting event here, or the most exciting statement that I saw here during these few days because that reemphasized the close relationship that those two have, and that exactly fits our road map. That's exciting. >> And, you know, we heard that, you know, again from from both CEO Saying customers really kind of brought us together. They made this deal work because we kept hearing that they love us and they love you, and they like us together. So So we got that. We understand that. So? So Marco customers drove that to a certain degree. You've got a customer here who made this big Hana jump, which is you say small guy. You know, I would beg to differ little bit that you had him before the big guys did. But what, like an initiative like that? What is that doing for you? What? Red hat. In terms of carrying that over to other customers. Now, you've learned from one you've seen what they've gone through. What kind of confidence does that give you? What kind of interest does it give you about how to approach this game? >> Absolutely. You know what we learned from give you one example right? If you moved his heart ever closer Christopher Hilty uses systems have twelve terabytes memory. Think about it that fairly large systems and that foot train tried to actually test our softer with that footprint and then even think about the next. Next journey is in if you want to do this in the cloud. What does that mean? If you take a twelve terabyte image and running in a double? Yes. And so that is, since my team also does quality assurance and product security. That's for them as well as in. Okay, we've seen what tilted can do work. How do we actually make this more robust? How do we test you are there? And how do we do that in this journey? It's, I think I'm pretty proud of how we actually learn from these instances, and health is not the only one. It's just one the republic. But yet it's every time. I think that's the only survived is into industry. If you really learn continuously and also applied right. I mean our whole setup involved or we shifted completely and not just from the people. They have theirs. So we have people that do open. Chief. There were people do Lennox and performance, but also from structure. I really be sure that they were set up for success and know what the next they have customers is obviously every casting off. A message we will do will go through a journey license over the next ten years. >> Kristoff obviously being on stage, you know it is good for the company, but coming to Red Hat Summit one. Just give our audience that if they hadn't come to it. Some of the value is, too what you place in some, the activities that have excited you most here this week. >> I mean, one thing is, of course, hearing about latest technologies, new releases, off software, off new possibilities and opportunities for us as customers from Red Hat. But also, it's great to see how on the floor out there other partners customers on DH fingers mingle around the ecosystem that created that was created around open software about, ah, not only operating system, but also about containers about all these those different technologies, which I have an important role for all of us in nineteen the future. >> Sure. Well, good week, that's for sure. Very nice job you get on the Kino stage to both of you and good luck with the partnership on down the road. And again, I would make the difference that way. little guys got in early hilt. He's no small fry in inner world, that's for sure. Thanks for the time, Krystof. Marco. Thank you. Thank you very much. Back with more. We're live here in Boston and we're covering the red hat. Summer twenty nineteen on the

>> Voiceover: From New York, it's theCUBE covering Blockchain Week. Now, here's John Furrier. >> Hello everyone, welcome back, I'm John Furrier here in the ground in New York City, Manhattan, for Blockchain Week New York, also day three of Consensus 2018; it's a huge event, everyone's here in all the action. Philipp Pieper's the CEO and co-founder of... he's with Swarm Funds; now, it's an interesting story, we've interviewed a couple of other companies: Polymath, Securitize, these guys got a unique value proposition. Philip, Swarm Funds, tell about what you guys are doing? >> Sure. >> What's the value proposition, where you guys are at? >> So we are the first security token framework that is live in the market. We launched, actually, end of January, only three months after the ICO, and we focus actually on tokenizing LP positions and funds, and we do that with a unique legal structure, governing structure, and obviously token infrastructure, that actually is meant to become a lingua franca that anyone in the market can collaborate on, so we even invite the previously named companies to actually collaborate with this because it's not a one-person or one organization sellout. >> And you got a shipping product. >> We have a shipping product. We actually have business on it, which means that there's funds that have tokenized on our platform, four of them actually. We have another 50 right now in the pipeline, so the next couple of weeks we're going to see at least nine to maybe 15 that are going to come to the market. >> So, I understand your value proposition. Are you guys operationalizing venture capital or equity partners? Or is it targeting entrepreneurs themselves or both? Who's the customer for you? >> So, on the project side, on the investment opportunity side, it's actually people that have something that they've done in the past that have existing business and where we just become another part of their capital structure. So, when you >> Give me an example. >> When you focus on a fund, so for example, we have a fund called Andra Capital that is a pre-IPO tech fund, so you can buy into a composite of Airbnb, Uber, and other tech companies where they buy secondaries off the market. They're an existing fund, they have existing LP's, they have existing business, and for them to open up to the crypto landscape, both for crypto investors as well as family offices, we're that conduit. >> Yeah. >> So, for them it's no change of legal structures, they can just do this in the existing way, and for us in the crypto community it's an excellent way to democratize access to that, so you can get into these kind of things that normally were only for the privileged investors. >> And so the benefit to them is that they don't have to unwind or mess with a tangled web of deals and LP's, relationships, because it's complicated, the side deals, all kinds of, not side deals, but you know what I'm saying, like one, there's a lot of moving parts, right, so? >> Well, yeah, and even more so, they don't have to put all their chips into this one thing that, you know, we all believe that is going to be big, but who knows whether it's going to pan out? So, you know, if I would approach one of those partners and say, "Well, your entire fund has to be tokenized." That's a pretty big deal with a lot of resistance. In this way, they can just open up a backdoor saying, "Okay, let's test this out, see how it works" and, by the way, they can actually push their existing investors to that direction, too, because it has a liquidity to it. That's the key element that is missing >> Yeah and they don't have to do anything different, so it's really smart. So, I've got to ask you, so, your advice or security token's been a pretty positive reaction from most folks. Hey, finally a security token, there are people are raising money, that's what we're doing, I mean that's what we're doing, no one has product. I mean, we have a product, some people have products, you have products. The thing is that there's very few people that have products so they're basically raising money. So call it what it is, it's a raising money token. Security tokens are now good, but as the entrepreneurs out there, they say, "Well, do I just pledge with my cashflow, or do I put equity against it?" What's your vision on how entrepreneurs should think about what they give up for the tokens, how they securitize it? >> Are you meaning that the entrepreneurs actually come to the space with their entrepreneurial efforts or? >> So, I'm an entrepreneur and I say I want to raise 15 million dollars or 10 million dollars on an issuing a security token and what do I get for that? So the investor wants security. >> Well, the investor wants actually something that is reliable in the most legal way possible, which means that it is something that they can, you know, have confidence that there's something on the other end, that there is a trustful asset that is underlying, that there's a legal stress that they can put this to and if things go sideways, that they have a voice that they can actually govern their ownership with. >> What is that now, what's the standard? Is there a standard evolving around what that is behind the security token? Is it cashflow, is it equity? >> Well, so, in our case we pay attention to actually having a vetting process that actually makes sure that things exist where actually, so this one token being the utilities, sort of like, it's a token to consider us as an AWS for fund operations, so, we incentivize existing players to help vet. We are working with some of the biggest servicing firms and auditing firms to, in the end, actually put the rubber stamp on stuff saying this actually is in existence and it's being, you know, looked at in detail, and the community in the end then can actually say, "We want this, too" or "We don't want this." So, there's multiple hoops that someone has to jump through before they can actually claim to be on a network like Swarm on this SRC-20 token that we have. >> What's interesting, too, is that what I like about your business model is that there's leverage, too, and, as you do things, you don't have to do it again, and, so, everyone has to sort of replicate and provision their company some way, right? So, it's complicated. >> Well, and, by the way, just to extend that also to the fact that there's only, there's one investor graph that is a qualified investor graph that basically anyone can chip in to, and it makes it incredibly easy for a qualified investor to move around on amongst different security tokens, and not just do that, like on a dedicated platform, but we are taking this into existing exchanges. You can even think of a model where this works with a decentralized exchange, where people can confidently actually trade one another and they don't have to requalify with the decentralized exchange, which doesn't have an organization to qualify them. >> It sounds like cloud computing and devops in action. >> Yeah. >> Bringing in some crypto, so you probably bring great service, okay, what else is going on, how much did you raise, how big is the team, what's going on with the company? >> Yeah. >> What's next? What's on the road map? >> So, we actually started thinking this end of 2016, before this whole craziness started, so there's a lot of pen to paper that we had to put in place, so there's a preparation into the ICO that we did in September/October; we were very restrictive, the way that we did it, we had a token liquidator release in order to appeal to some of the more US-focused investors. We raised 5.5 million dollars back then, valued in ether, pretty good. We then actually, the foundation still hold half of the tokens, we just were really cleared to be not a security. In this realm, we clearly separated the security from the utility function and we are off to the races with actually not just being listed on exchanges but also to actually list the security tokens on exchanges with a clear mandate by the token issuers that that's something that they are qualified to do. >> That's awesome. So, Philipp, I'm going to give you a use case, if I'm going to do a token offering, say for theCUBE, hypothetical, wink wink, what do I do? How do I engage with you? Would I use your service? How would I use your service? I'm going to issue tokens, you know, we're building the business, we're building the brand, we're going to open it up. I don't have time to deal with all those details. It's a lot of hassles. Do I do the Cayman Islands, special purpose vehicles, I mean, where is my entity, what's my domicile, what's the law here? Do I use you? I mean, would I use you guys and that would be the service or are you targeting, would I have to go somewhere else? Who do I use? Who would I, how would I use Swarm? >> Well there's two parts to answer that question: one is actually, obviously, we have a lot of institutional organizations on the other end that have their own custom setup, they have existing things, we make it incredibly easy for them to engage with us because we form these SPV's which are, you know, so far we've trialed this in MBVI and Cayman's and Estonia and Lichtenstein, but those entities become shareholders of the underlying assets. So, if someone wants to list something, they go to tokenize.swarm.fund; there's an in-take form that actually allows them to supply their proposals, their proposals get put through different layers of vetting, so we work with... >> From your team? >> Well, first on our team, but we work with external people that vet that, too, and then actually it goes to an auditing firms that actually then say this is something real because before we take it to market, and actually offer it to the broader community, we really want to make sure that this is actually something that has validity to it because, as you know, market can be killed by the first ill leanings of actually something not being real. >> So do you pay for those service or is it paid in tokens? >> It's paid in tokens. Again, the analogy is the AWS, so it's basically, if someone wants to list, there's a gas for a fund listing that has to be paid, and that goes to both investor qualification as well as the auditing process. The same actually applies to the fund operations, so there's gas for fund operations, which goes to the technical nodes, the legal service providers we work with, accounting firms, people that want to do due diligence, like say I receive a nav report and that adds some value through it. >> It's coin-operated, literally. >> Exactly, but if I receive a net asset value report from one of the underlying assets, and I as an investor don't believe it, I can stake to say I want to have KPMG go off and actually validate that this is actually real and it's actually built on standards. >> You're bringing a lot of service providers together, you're also providing some base services, that's cool, what's next, what are you going to do this next year? What's next for you guys the second half of the year? >> I think we're just scratching the surface of what this is going to do. I mean, we're very happy that actually there's a very big focus by the market on actually security tokens, Wall Street is taking it extremely serious and legislators across the world are taking it seriously, so we're very, very fortunate to be in some of those conversations with legislators who want the security tokens base to be compliant with what they're thinking about. I think it's just going to be volume, on both ends, our target is to actually have a hundred thousand active investors engaged. We want to have at least a hundred funds that are live on the platform on the network, and we want to stitch partnerships with whoever wants to participate. That makes this a frictionless ecosystem such that everyone can continue doing their business. >> Well, we need more faster, better products out there. The SEC, you've seen some of the regulatory issues, slowing things down in the US and a lot of action going on outside the United States, so, the sooner the better, right? >> Yeah, but I think the SEC is taking the approach to say, "We're going to regulate the bad actors, but we're urging a self-regulatory position by the industry." And, so, efforts like all the ones that you mentioned and us actually going in the direction to be compliant, not shying away from having security tokens in a legal fashion is the good news because the more we show that the more actually they understand that this is not some kind of evasion strategy in many different directions. >> Yeah, and we need to move faster, cool. Well, great job Philipp, we've got a great job here, Swarm Fund, check it out, they're really making it easier for investors and limited partners, the Big Money, to actually move an encrypto, open up a door, put a toe in the water, and make money, get liquid, thanks for coming on. >> Thanks so much. >> We appreciate it, BlockChain Week New York City, I'm John Furrier, thanks for watching.

>> Narrator: Live from San Juan, Puerto Rico. It's the CUBE, covering Blockchain Unbound. Brought to you by Blockchain Industries. (upbeat Spanish-style music) >> Hey, welcome back everyone. We're here in Puerto Rico for exclusive CUBE coverage, I'm John Furry, you're host. Here, with Blockchain Unbound, this is a global event. From everyone from Silicon Valley, New York, Miami, Russia, Eastern Europe, all over the world, and Puerto Rico coming together, talk about the future of the economy, Blockchain decentralized apps, and more. Our next guest is CUBE alumni, and part of our inaugural crypto currency coverage, from Polycon 18, back to give a command performance, Nithin Eapen Chief Investment Officer at Arcadia Crypto Ventures, good to see you. >> Good to see you too John. >> So, you had a great showing at our first crypto event, PolyCon, great to see you back in the trenches, you're out, hard-working, pounding the pavement, doing deals. What's your analysis here, I mean, you're here networking, you checked out the sessions. What's your take? >> We've met some really good founders, really good projects, so that's the key thing that we are looking for. The main idea as our tagline says, "We back Blockchain's best." We are looking for the best founders. We are looking for the teams, then for the idea. Anything that's decentralized, we are backing them. >> So, network effect has been a big part of the conference I've been having. We talked about security tokens, utility tokens. A lot of interesting things going on here, but there's a backdrop. You've got multiple events going on. You've have Blockchain Unbound, run by Blockchain Industries, great team, which put this event together in five weeks. So, shout out to those guys. >> (laughs) You have Coin Agenda, >> That's coming! going on, another event going next door, which is after this event. And then you have a lot of series of little events, meet-ups, the local community had a great crypto mixer, Puerto Rico, a lot of action. >> Too much action, and it's like at the same time, look at it, TokenFest in San Francisco, another 2,000 people over there, here people are on the waiting list, so much action. >> And that's going on this week, as well. You have anyone going to that event? >> I know, I've got a lot of friends going over there. For me, it made sense, this is closer. I thought I would meet a lot of them. Puerto Rico is better I found, you know? >> A lot of big money here, a lot of smart money. >> A lot of smart money, a lot of big money. >> John: Global? >> Global, and the greatest part of Puerto Rico is, it's bringing this concept like, they have reduced taxes for US people to zero percent for individuals, for the next, until 2036. Now that's a big difference. If you want to change your domicile to Puerto Rico, for your business it's 4% corporate taxes, and individual it's 0% now, that's... >> John: But you got to move here. >> You got to move here, okay. But you don't have to give up your US citizenship. Now, I think what's going to happen right now is they're going to be other states maybe going to compete for this, or other countries are going to compete for the capital to flow, where does capitol flow to? Capital will flow to cheaper places, or lesser taxes. >> So, I got to ask you, I was talking to you earlier this morning, here on the CUBE I said, "There's two killer apps, one of them is money." Money is the killer app. >> No doubt! >> Your reaction to that? >> It is, okay all of our lives, let's say for your son, or my kid, or for me, what my parents, when we went to school, why did they make us go to school or learn, they tell us, "Okay you got to go to college!" Why, they want us to have a better life, they want to have a better car. How do you get them, you want money for them. But in none of those years did somebody teach you, how does money originate? What is money, is it something you should buy the Garmin? So in everything that we go for, unless we're the Buddha or Jesus himself, we do it for money. >> Well you bring up a good point. I mean I have a immigrant background from my family, my wife's family as well. >> Where did you come from? >> Well I'm actually Native American, I mean American. >> Okay But two, three generations back they, Ireland, >> Ireland, okay! French Canadian, a little bit of Armenian in me but that's okay, all kind of blended. I'm in the melting pot, I'm not 1st generation but, in Boston where my parents were from, very much an immigrant town, and they didn't have any money. So if you look at now, what's gone through the financial dot-com bubble, which had some impact, but the financial crisis is 2018, if you look at what's happened since then, the generation of millennials there in more debt. They're not realizing college, it might not be the thing. So we went to school so that we can have a better life than our parents did. Now it's like everyone's realizing that, shit we're screwed. So watching as a path, of freedom. >> It is! A new way to create wealth, capture the value, but in a new way. >> Yes, because you have a chance to be a part of an economy without, a permission of a centralized organization. So, earlier if you wanted to work somewhere, you needed an organization to work. This is making it much easier to be a part of the economy. to contribute, to help people to get help, all this is happening and you don't have to go to school. Maybe school is overrated, our colleges overrated. It is too expensive, you spend 200 thousand dollars on college. What is your ROI, when is your ROI? Maybe some disciplines have it. But this is your chance to.. >> Well, you you know that we love media and our disruptive media at the CUBE is to do things differently, but lets talk about some current events that's been happening. So this week, John Oliver created a video trashing crypto currency, it was actually funny. But it got to the Brock Pierce part, and he really had it out for Brock Pierce. He absolutely destroyed him. >> He did! And since then, he lost his place EOS. They wiped away all his DNA of evidence with the company. This is a comedian, at John Oliver, you're a freaking comedian. What gives him the right to I have that kind of influence on someone's job when he's just telling a joke. There's no actually substance of any facts of any kind at what he's doing, So that's a central authority figure that took an editorial comedic routine, and put it out there, but people think that's news. >> See, >> That's not The power of media, that the power of all the old traditional media, is that they had a bigger reach. I think it's going to change, it is going to be the YouTube's. And it's going to become a decentralized YouTube equivalent, or a decentralized media equivalents. Like, a lot of people have made memes and you know, fun videos that go viral and they'll take things down. The same, John Oliver obviously, he has us laugh. >> He's funny as hell though. He is funny as hell! >> You got to admit, >> He's pretty funny! The bit was really good, >> But end of the day, but he really went after Brock Pierce. Something was going on there, he took him down. >> See the traditional industries or traditional media they want to take down everybody that they don't consider, the birds of a same feather, this is somebody weird, like Trump, they try to take down Trump. They will try to take down anything which doesn't fit their globalist, elitist agenda. End of the day, like Brock Pierce sitting on a billion, and John over with his comedy, who has the bigger laugh? I don't know, if you ask me. >> When you have F U money like Brock Pierce does, I'm sure it rolls off his shoulders. But it does impact the ecosystem a bit. Basically EOS has erased his name in any capacity. So, obviously this impacts to public opinion. So these comedians and news rep, they have an obligation to share the data. Editorializing, I mean I do it all the time, don't get me wrong. >> (laughs) But, there's a point, consensus is part of the algorithm now in these Blockchain and Crypto communities where you have Blockchain as a store, against him. >> Okay! But consensus and transparency is a huge deal. >> Nithin: Yes! >> This is part of the formula. >> I know but see, the whole thing... When John Oliver does something, it's not about consensus. He can do it, okay, it's going to change! It's like this, when Bitcoin came in 2009, the traditionalists were coming up at the story that, "it is fake money, it's not going to go anywhere." Then it became one dollar, they were just laughing at it. Then became 10 dollars, they said it's going to go down. Then it became hundred dollars, they did the same thing. And it's only after long time they will realize, "Oh my God, it's changed." The rock has been pulled under my leg. It's like when Amazon came, all the traditional retail guys said, "Nobody's going to go and buy a book without touching it." Now we have Toys "R" Us that just went bankrupt. There's no more Toys" R" Us, you know, you have to buy your toys pretty much from Amazon at this point. >> Well everything in the model of future will be all contexual so, videos, comedian, news articles, reports, editorial, all will roll into one thing. That's going to be a great thing. >> Yes! >> And media is going to take a lot of, natural language processing, it's going to get transcript link. I think you're already doing it right, you're going to take a transcript of what I speak, you're going to attach the words, you're going to attach it to brands, you can sell that, and that is going to be the future. >> Well lets get some of that intellectual property out of your head and into the camera, and for the audience. What are you hearing in the hallways here, obviously this is a great networking event here. Lot's of agendas, phenomenal, as well as we had over sold almost by double. There's people out in the hallways, it's sold out, so there's a lot of Lobby Con going on. There's a conference within the conference going on. >> Nithin: It is! We call it Lobby Con! >> (laughs) What are you hearing in the hallways, what is some of the cool things that's new to you, that you're discovering? >> So lot of people are now telling me they are very excited about security tokens. They're telling me they're buying security tokens. I asked them, which security tokens? It's not there yet, okay. See, that's where I tend to differ. If security tokens are going to be the big thing, I'm going to be buying it because we are informed. >> John: Buy everything that moves. >> We buy it as it moves, but, security token, my question is, so you're trying to make something that is a utility, now you're going to make it security? So that is equity markets, there is a CC for that. And you're going to fit this in over there, I'm like, I don't know, what are people trying achieve? This is a free market and they're trying to bring it into regulation. >> What's a red flag for you as a, security token implies directly that you're securing something. What are they, >> You're pretty much What are people securing, equity, future cash flows, dividends, what are some of the vehicles you've seen? >> At that time they are pretty much secure, or securing future cash flows as dividends. They're going to give dividends, they're saying if you're a token holder, you're going to get dividends. My question at that time is, then why do you want a token, why can't it be in equity? Oh, you think you can come with their argument that it's more liquid, but equity's a liquid. I don't think it isn't a liquid. But it is a great way to go around and secularize a lot of things. You can have a small business, think of it, you and me we have a small business, let's say we have a partnership We have a small... >> We have a small business, We have a small business, we have a partnership. It's very hard to exit out of a small business. If we can fractionalize the ownership of a business thru tokens, and there might be people are willing to buy, put thousand dollars in, and maybe I can exit at some point. Otherwise there's no exit for me. It's very hard to exit out of a small business. Now then, what's the difference between that and equity? I don't know you know, those lines are blurred but, I'm happy for the fact that something like that will give liquidity to a lot of small business owners. America is a country of small business owners. Across the globe it supports small business owners. If it brings liquidity, okay I'm happy with that. But it's really beating the purpose that we don't want a centralized power controlling us. Because now that you have Google and Facebook that banned crypto-currency ads. Why, Women's Day, all our data, they give us a free access but they hold a lot of our personal data. I'm thinking, the guy who brings in the, a decentralized search or a decentralized social media, I'm going to invest in them. I don't care if their a success or if the success will come later. There are going to be multiple libertarian investors like me that's going to invest in them. >> What I learned was that money is a killer app, and I'll stand by that. I think marketplaces are also the killer app. You ever think, >> Perfectly true! that this conference, that kind of validates where I was thinking was, the people who nailed a business model, that's the critical, critical pacing item. If you screw the business model up, you go sideways. The technology risk isn't as bad as the business model decision risk. So I'm seeing the successful ICOs, or plays, have a lock in on the structural value proposition and to be directionally correct, with an understanding of what the hedge is on the technology. >> Yep! >> So they can manage it. So it's like programmable plumbing. They're recognizing that dynamic. The other thing that I'm learning is that the money flow from other countries is massive. If you want a money launderer from Colombia, it's coming in from Metadine Narcos. It's coming in from Japan, and China. Bitcoin and Blockchain is a money transfer opportunity so, I'm seeing a massive amount of money, flowing in >> Capital is flowing, in massive waves. >> it's flowing in. >> And it's good, and even if these projects fail, it's a good thing because, you had all this money that was stuck somewhere, that flowed in, and as I said, many of those projects are going to fail. Let them fail, because this money has flowed in, you will have a lot of people come and work on these projects, and eventually the correct solution will emerge. >> And new structural dynamics are at play. And new investors are coming in. >> New investors, so many new investors. You know the funny thing John, after we met at Polycon, I think that 99% of the people I meet here are totally new. All the guys we met at Polycon in Bahamas, totally different. I only know very few people that I met over there. So that means a whole set of investors, or common people, who just want to learn about it, totally new. That's really good! And who wins here, the average citizen entrepreneur, the average citizen player that wants to start something whether it's a banking, a service provider of some sort, a entrepreneur, or a new financial instrument or firm, all have greenfield opportunity here. >> Because, see earlier when you wanted to raise money, I was talking to a founder the other day, I asked him, how hard it was for you to raise your first raise, like 10 years ago? He was telling me that he walked the doors across multiple VCs, to kind of scrap in one and a half million dollars. And then he did his second loan after eight years. >> He'd have to crawl on his knees to get that. >> And that too, you won't get the attention, you need to know reference, now you have a chance to go to the world, and monies were, so easy money coming in is a bad thing in a way that most entrepreneurs will feel the investors will lose their money. but that's different, but it at least you have access and you can try to think that you had any in mind earlier. You had no option, they would take a big stake. Now there's no dilution, this is pretty much cloud funding on steroids. You have a chance to go to market, you get the go to market money and see if it works. And if it doesn't work, let's fix it after that. >> Nithin, I got to get your thoughts on building a company, 'cause obviously, you're also not only in this as an investor, you're also doing strategic advisory work for people building the venture architecture and then the actual build up plans for their venture. So you've talked about this in the past, you have a relationship with some protocol guys, you can check with them, there's some good network there. But there's also a dynamic with this industry where the business development aspect of it is really important. People are partnering, >> Very very important. And there's a way to partner and a way not a partner. There's a way to do token economics and there's a way not to do token economics. What is your advice, to companies that have a good thing going on, they have a tail wind at their back, they got wind in their sails, but have to make some hot partnering decisions. Looking for fellows, fellowship in that ecosystem. How do you advise folks in this partnerships and then talk about token economics after? >> So the first thing I would tell founders is to reach out. This community is very very supportive. Like you can reach out to me, you can reach out to other guys, LinkedIn, Facebook, or come to these events, and in the hallways. Say your idea and you need help, because you will need help, you cannot run this alone. You are running a company, you are running your team. Have a good team, that's a first thing. Have a great team, great founders, vision, execution, you need that. The next key thing is, you have to think about marketing and how do you market, you need to get some big names on your board who can reach out to their network and tell them about your idea. And they reach out of the rest for you. >> So networks are super important. >> Super super important, like... >> So advisor, that their advisor selection should be based on their network that they bring to the table. >> Right, so the first advisor selection is the guy who will help you flush out your idea properly as tokens. The next advisor set is a marketing advisor or a technical advisor. The marketing advisers also very important because you need to market the product, get the money in, because end of the day, you need money to build it. You need to pay your employees, whether it's in Bitcoins or in fear, It doesn't matter, one of these is required. So you have these three things, then you need to build strategic partnerships in your business. Say, let's see your a loyalty points guy, like Al is doing, You know Al right? >> Al Burgio, >> From FuZe Chain now doing DigitalBits. Hot deal, hot deal! >> Hot deal, hot deal. >> Look at what Al did, he went out, he got his strategic partnerships with the loyalty guys, now he's got the brand, the strategic partnerships, he's built a product already. The money he needs is only for go to market so that he can push it to multiple companies and get them on the chain. Brilliant idea so, strategic partnerships, advisors, founding team, and then, show the idea to the people. Go out there, let them know that this is what you're doing, why this idea is great, how big is the market, there was a problem that you're solving, what is your solution. Explain yourself frankly and honestly, and I think the community will reward you, to go and find your dream. >> Great point, be honest, ask for help. Again, I can't reiterate my experience of, I'll share, is during the computer revolution, Internet revolution, Web.1.o, and now partnering in the early days when it's forming, can make or break a company. Make or break a company. >> Very True! So, note to that, okay now, token economics. >> Nithin: Sure! >> Sounds easy, but you really got to make sure that you have a good economic framework that matches the value proposition. Talk about what you advise there. >> So last day of the one founder restart to me, ICO is going on for our seventh day into the ICO. He's raised less than 300 thousand dollars. I meet him, and he needs help. After what, seven days into the ICO, all I could tell him is, shut off your ICO, it's not going to raise money. He's like, "Why," and I'm like, he said, "read this paper." I'm like, "There's nothing in this paper "I can put money into." And he's like, "Why is that?" So I asked him, so how many companies has he put his money into, how many points has he bought? Four years, he has not bought a single coin. And he's flustered something by himself. So he's never bought a coin, and he's expecting people to buy coins at his price. So I tell people, either you should notice, you should be an investor yourself. So there are different kinds of investors, there are institutional investors that are funds, family offices, and then are retail investors. If you're not any one of these, or any one of in this group, how do you know what these guys are buying it for? So reach out to them! >> That's where the advisory comes in, Know your customer! >> Know your customer! And not the KYC in a different way, but know 'em from a marketing standpoint. Know how the retail, >> Exactly! purchase is made. >> Because if... >> If you yourself are a buyer, at least you have some idea. If you've never bought a token, and if you're, I had another founder tell me that, my tokens are worth hundred million. I'm like, you don't have a user, you just have a product. You're tokens are worth shite, if you ask me. It's worth zero, I can tell my house is worth hundred million dollars. It's only worth as much as the top buyer. How much is he willing to pay for me? So I told the founder, I'll pay so much for this price because I think, if it's about that, there's a huge risk as the main investor coming in. He doesn't agree! >> So lets talk about some, how rounds are being done now. So one trend that I'm seeing, not, I shouldn't say trend, a few deals I've seen done, but it seems like a trend, I'm trying to get validation on this, Where people are avoiding the public ICO altogether, doing all privates. >> Yes! Basically over subscribed round. Trend, dynamic, real deal, what's your thoughts on reaction to that? >> It's just that the founders are adapting. Because if you go to the public, the moment you're going to the public, what's happening is, there's the SEZ component. Whether it's a utility and they can come after you, so they have made it private. And then they went after, and even further, a lot of the founders that I know, they just stopped accepting money from US entities or US individuals. Well it's a bad deal for a small investor. See the big investors are wealthy investors. They all have an external entity where they can invest into it. What about the small investor who was investing thousand dollars or 5,000 dollars? Now you have pretty much shut out his chance of getting into a great ICO. So the founder is going to raise his money from maybe Korea, Japan, China, and Singapore. He's going to form a company or a foundation in Cayman, or Lichtenstein, or Gibraltar. The small investor is a loser. The large institutional investor has no loss in this process, so, that is the founder adapting because he does not want, >> They want to manage, >> They don't want it to become lawsuits, basically. >> Compliance, audits, SEZ problems, they don't end fencing problems. >> So now let's compare, in contrast, different kind of companies. US based company, wants to raise money in the US, they do accredited. But they want to go outside, say Asia, or an Asia company wants to raise money in the US, what's that dynamic like, what are the issues? >> I think what's going to happen is they going to, some of them are going to register themselves as a security token, some of them are going to do just a reg D for very high net worth individuals. And the common, the the public round, they going to raise it from the China, the Korea, Japan, or is lobbying them. And that's what I think, multiple small countries are going to come into the space, which they know now, they can get the capital flowing into their company, and they going to allow their rules to be lax. They going to let capitol flow through. And then US will have to change, or maybe UK will have to change, whoever is against this will have to change. Capital means money, belt capital, and resource capital, like humans, we tend to move to places that are freer. Why did I move from India to US, or why did your parents or the earlier generation move to US? >> John: For a better life. >> It's a better life, the real better life is, you have the freedom over your property, the fruits of your labor. If the fruits of your labor are taxed at 50% or thirty, the more it goes up, you just don't want to work anymore, or you're going to to search for that place that will tax you less. >> Like Puerto Rico! >> Nithan: Puerto Rico! >> Are you bullish on Puerto Rico? >> I am bullish on Puerto Rico because, these, if they can sustain this, and have the rule of law, means they can protect people's wealth, like from crime and all those things, crime or being kidnapped. These two things happen, I'm telling you, most people will move or some of state will have to change their laws. >> They got to get >> the security up. Nithan, thanks so much for coming on the CUBE. Really appreciate your insight. Thanks for sharing! >> Thank you very much. This is the CUBEs exclusive coverage from Puerto Rico where we're getting on the ground here. Getting all the data from the Blockchain Unbound Conference. Part of restart week. I'm John Furry here, we've got more coverage after this break, thanks for watching! (upbeat electronic music)

(upbeat music) >> Narrator: Live from New Orleans. It's The Cube, covering VeeamON, 2017 brought to you by Veeam. >> Welcome back to New Orleans everybody. This is The Cube, the leader in live tech coverage. I'm Dave Vellante with Stu Miniman. It's our first day of coverage at VeeamON 2017. The first time The Cube has covered VeeamON and it's quite an event. About 3,000 people here and as I say, we're being going two days of coverage talking to executives and partners and of course, the customers, we love the customer segments. Markus Marksteiner is here. He's the CTO of Baloise Group, insurance company out of Switzerland. Markus, welcome to The Cube. Thanks for coming on. >> You're welcome. >> So tell us a little bit about your company, your role and what are some of the things driving IT decisions. >> Okay, so are a life insurance and long life insurance company within Switzerland. We also have a bank in Switzerland which is included. We operate in Europe, in the country of Belgium and Germany and Luxembourg and Lichtenstein. So we are a company with about seven and a half thousand employees. And my role in there, is actually I'm a head of infrastructure and supports so I'm responsible for the data center, the user service center and the workplace environment. I also act as a group CTO because we have centralized all the data centers from the different locations to expose it to our headquarter. >> So financial services tends to be in the cutting edge of technology typically, very competitive industry and fast moving, very IT-oriented. What are some of the drivers in your business today? >> I think in the, especially in the insurance companies, we are, within Switzerland but also in Germany and Europe itself, it's a highly regulated market so. The possibility to, let's go for the public cloud is very limited because of regulation part. So therefore we have to deal with insurance companies within Europe but also within US and China, especially, which are very agile out on the market so. Therefore our business is now changing completely because from the traditional insurance which we have selled years ago, we will have to translate this into the industrialization world so meaning, we have to be more flexible on the market, to have shorter periods of production. And for me, as an IT reseller within the company, means my organization have to be agile as well. So, this is actually the most part we are changing to deal with security, that's the one part. But the other part is the agility. >> Paint a picture of your environment. What's it look like? Applications that you're supporting. What does your infrastructure look like. Your storage. Obviously, your backup, we'll talk about that. >> So we have, within Basel we have two data centers nearby. And we have now set up a third data center outside of Basel for disaster recovery because Basel is located on a earthquake area with a high risk impact so therefore our internal audit is set, it's not that good to have for the complete group data centers located on a earthquake plate so please set up a data center which is at least 100 kilometers away from our location now, so. Within the data centers, typically we have mainframes, we have servers, we have storage, all kinds of flavors. We have some centralization there. We have one with strategy in the infrastructure which a huge partnership with HP. In this area we have from storage part, we're using NetApp and DocuStorage. And as a backup software of course now, since nearly a year now, we are using Veeam for doing the backup of all the virtual machines. In the future, also the physical machines. And also we elevated Veeam because of the data implication into data center three. So this guarantees me to bring up the data at a certain time to get us into three to make the restore and the restart there. >> So you've got, two data centers within a synchronous distance and one is an asynchronous distance. Is that correct? So you have a three data center set up which is essentially is as close to zero data loss as you can get. >> Yeah, exactly. The data center three we are using not only as a cold backup standby data center, we are putting all the non-productive environment to this data center so we have all three data centers up and running and they have on a certain perspective productive level meaning for the developer, of course data center three is absolutely highly critical because they develop in data center three, all the data is there. For the productive part, we have data center one and two which is in Basel which has the availability there, so. We're using both sides and they're all connected together. >> How often do you test recovery in that set up? >> We're trying now to test it twice a year. But we cannot switch the complete data center because we have productive and-- >> Dave: It's too risky. >> It's too risky so we built up a reference model, a reference service where we have included all the environments we need to make it for the auditors visible that our infrastructure in data center three is working in case of an emergency. >> Okay. Let's talk a little bit more about the data protection strategy. So we have a high-level, we understand the data center approach but what about protecting the apps? How do you use Veeam? How did you start with Veeam and where are you now? >> I mean we came from an absolutely traditional data standards so we had a legacy backup system running based on file locks and then we started a certain time with NetApp and using snapshot technologies there. Because we had huge databases which are not able to fulfill the SLA anymore in the recovery mode so we have to switch them to them to NetApp. And then we started with data center three and then we had another problem. How can we replicate these data into data center three in a certain time to get the SLA fulfilled in case of an emergency. And there we made a revelation and Veeam was actually the one who was fulfilling all the requirements and it was easy to deal with them. So we decided, okay, let's try it Veeam. And at a certain time, we thought well, it's not only about data application with Veeam it's also about the complete backup stack, we can replace by this software. So we grow slowly with the possibilities we saw during the implementation phase. We said, okay, we can use this model and this model and then VeeamON came on so we could use the report part also for the sizing of the virtual machines and now on we just backing up almost everything with Veeam, so. >> Can you speak to organizationally, you know, how many people you have managing kind of backup and DR and what that experience has been like? >> In the past we had about three people which were responsible for the complete backup process. But they're very focused on their tooling, they could not tell me if the backup was correct. If the data was backuped correctly. They only say, yeah, my system is running and it's backuping but is it really also consistent. I don't know so we had to ask the engineers. With Veeam now, we switched completely. We do not have any responsible anymore for backup purposes itself. We took this because of the ease of use, the tool, we gave them directly to the engineers of Linux, of Citrix, or of Windows and they are now responsible for their own data. So they can now do the backups itself and they can also assure to me that this, what they do with the backup is correct and it's restartable. Because they have to check each time. >> Yeah, so you're not only operationally more efficient but you actually know that what you have works. >> Markus: Exactly. (laughing) Yeah, yeah. >> Great. I believe it's your first time at the conference. What's the experience been so far? What value have you been getting? What brought you here? >> Actually I came here with the goal to learn more about the Veeam company itself and this was actually during the networking areas and the networking part was very helpful for me to meet directly the management of Veeam to see what is their strategy and it was also in the general session, they have a story to tell and that's what, I was coming in here to get this information and in the sessions, and today also with the talks with Baronov directly and McKay, that's really, there's a spirit in this company. That's what we are looking for. Because we have so many big companies, vendors in our thing, where you do not have the connection to the management directly and for me it's very important because we try really to grow with our business and therefore I need a partner behind where I can rely on them. With Veeam, absolutely the case. >> So you mentioned supporting physical endpoints is something that interest you. Anything else from the announcements that you heard that excites you? Anything not there, that you're looking for in the future, too? >> Yeah, for the future for me it's actually the cloud connection is very important. Because we are still in the high-regulated market but I think also the insurance and the financial sector in Switzerland, there are slightly opening for the cloud services and also for us, it's the Office365 and Amazon web services, they're coming slightly into our organization and to know that there is also a possibility with the same backup software using this in a cloud, this gives me the feeling and also the assurance that I can go to my management and tell them, hey guys, we're choosing the right vendor because we can also use them for the cloud. I do not have to evaluate another product there for fulfilling this requirement. That's good to hear. >> So you sell insurance, your company does. Backup is largely insurance. How do you make the business case, what business benefits have you seen? Can you share with any metrics, maybe they're largely cost cutting. Maybe it's enabling DR. What can you share with us? >> The one thing I can share with you is actually we had a, that's not only based on Veeam by the product, by the backup itself, but it's also based on the Veeam reporter. We had in a branch office in Belgium. We have an issue where we had several active directory controllers running there. And with VeeamON, they reported that there's two controllers broken during the weekend and there's only one active directory controller available. Meaning, if this will also fail, we have to replicate the complete staff to Basel meaning 1500 users have to wait. And they are very aware about these profiles because they are using Citrix in the background. So meaning, we will probably have an issue there for about four to five almost a whole working day where a complete branch could not work. Meaning, there we just rolled up these two active controls with Veeam in a certain time period and then nothing happened. And I mean, counted in money, this would cost us at least a half a million Euro, this outage, if it occurred. >> Markus, in the key note, you know, one of the terms that gets thrown out is digital transformation. We've talked to a lot of financial service companies that, that terms resonate. What does it mean to your organization? How has it impacted your job? >> Yeah, it has a huge impact because our business lines they are now looking for other type of insurance. Meaning, in the past, we just insured the car for one year. So, the experience of the users then, also my kids is actually, I don't want to have a car insurance for a whole year because I'm only driving twice a month, a car. So they would like to have an insurance like insure what you use. >> Stu: As a service? >> As a service. And therefore we have to adapt this into completely other models because with our legacy systems, it's impossible. So what is our business doing? They're going out, looking for startup companies. Bringing them in and the startup companies, they start, typically in a cloud environment. They're very agile. And then when they bring out the product, the first thing is they ask for a connection to the legacy systems, for customer relationship management systems and stuff like this. So I have to really change my organization completely. And so I have to go away from these silos organization parts, into DevOps. And I also have to change my data center because I have to provide these services also as a cloud service, as it is possible in the public cloud, so. Meaning, the digitalization in the business has absolutely direct impact to my organization. >> I'd buy that service. I've got four kids, three driving, two at college. They really only need it a couple of months out of the year. I'll switch insurance companies. Give me a call. (laughing) All right, excellent. Thanks very much for coming on The Cube. Markus, we really appreciate it. >> Thank you. >> You're welcome, all right, keep it right there everybody. Stu and I will be back. Continuous coverage of continuous data protection, continuous content flow. VeeamON 2017. We'll be right back. (upbeat music)