>> Live from San Francisco, it's theCUBE, covering Google Cloud Next 2018. Brought to you by Google Cloud and its ecosystem partners. >> Hello everyone, welcome back. It's theCUBE here in San Francisco, live coverage of Google Cloud Next 2018. I'm John Furrier, Dave Vellante, our next guest is Ben Evans, who is the director of strategic alliances at Cisco, and Connie Tang, director of product management at Cisco here to talk about the alliance with Google Cloud and the relevance of the partnership around the collab. Welcome to theCUBE, thanks for joining us. >> My pleasure to be here. >> So, we've been covering Cisco for a long time, most recently with theCUBE in Orlando, and DevNet creates huge surge of developer action going on across the Cisco ecosystem, not just network engineering stuff, the normal Cisco greatness, but up the stack with the collaboration side just cloud natives attracting and really giving a lot of energy to the developers and customers at Cisco. So, the partnership with Google is interesting. So, can you guys just share the big news, the Cisco news and how that relates to the Google Cloud. >> Yeah, absolutely, so firstly, Connie and myself have been working on this partnership for quite a while. And, as you'd said, there's multi, kind of, facets to this. There's the developer piece, so the SDKs are announcing around Android and the way that developers can now imbed calling and meeting and messaging inside their specific applications, their vertical applications. And, then there's also native integrations we're getting into around scheduling meetings from calenderings. I can go in and schedule a Webex meeting very easily. It was talked about on stage, 74 percent of, sort of, document collaboration involves some sort of co-collaboration, so it's a very kind of peanut butter and chocolate as you think about Cisco's portfolio of real time communications and meetings and how this is evolving into the team collaboration experience. Together with Google's portfolio in terms of AI and how that fits in to ultimate these work flows and make life easier for users. And, also just how this comes together in a very seamless way to enable this kind of real time collaboration and creation of documents. >> So, take us inside the partnership. How did it start? I mean, it seems like a match made in heaven. You guys aren't trying to create your own infrastructures of service. Google needs an enterprise presence, so obviously Cisco has a huge enterprise presence. But, how did it start and where did it start? >> We actually started engaging with Cisco over a year ago, and different groups start engaging because there's actually customer demand from our corporate enterprise customers wanting better integration of a collab portfolio into various aspects of G Suite. So, we worked with the calendering team because they're coming up with a brand new architecture, and so we're actually one of four front partners who work directly with them providing them feedback in what enterprises what, and then integrating our scheduling capabilities of Webex meetings directly into Google Calender. So that's one piece, and then we also work with the Chromebook group because more and more customers are starting to use and deploy Chromebook, and so they want to have an ability to start Webex meetings and be able to share content and actually join Webex meetings directly on Chromebook. So, there's another effort that went on separately. And then there's a third effort that goes on with the Chrome group where we're leveraging the WebRTC within Chrome, so that people can join Webex meeting directly without having to do download any client. So, they just open the web browser. They can have audio. They can have HD video. They can see the share. They can share content just on Chrome. >> When? >> This is what we've been waiting for with cloud. This is really, I want to expand on this notion of services. >> Yes. >> And service centric view because it has to be clean whether it's an EPI, a message que, or an event. The user experience's got to be integrated very cleanly. >> Yes. >> This is really kind of, the ah-ha moment of when people taste the Cloud, and that's the benefit. Can, because this is really interesting. You've got Webex, you've got G Suite. Two different applications. >> Very different, yes. >> This is the benefit of the services. Can you just explain the importance and why IT and why enterprises want this. >> Enterprises want ease of use. Ease of use, ease of access, and ease of deployment. So, Chrome solves that problem. There's no deployment required, right? It's already there, it's available on every desktop. And, the one simple click to join and schedule a meeting makes it easy to use, so with that combination, end use is adopted really, really quickly. So, we're seeing some of the fastest adoption of web clients based on those kind of ease of use and ease of joining. >> How has the product uptake been? Because if you have a seamless user experience, you're probably getting more customers coming in, integrating in... >> Yes. >> From G Suite and vice versa. They're getting lift. How is that partnership working? Can you share some color around that? >> Yes, as Connie said, we've really seen it's accelerating. One stat I'll share is during March, we were adding around 11 hundred new G Cal integrations every day, so we were seeing customers that were using Webex meeting, they were using G cal, and they wanted those things to work better together. So, integrating those calendars to make it easier to schedule and join meetings. So, yeah, that's 11 hundred a day. It's pretty good uptake considering we weren't really promoting it. It was just there and available to that existing customer base, so. >> What can you guys share to enterprise IT, application developers, or managers who have traditionally lived in a stone pipe world of like, let's build an app, and we'll distribute the app, and you log in, you do all the things, monolithic app. To a world that's services lead are service centric where you still do an app, but you got to think differently around some of the design criteria around integrating in with other apps. What's some of the best practices that you guys have found? Because you've seen the network all the way up to the application stack issues. You've got Kubernetes and all these new things. What are some of the best practices that companies should be developing around? >> So, what I've seen companies most concerned about is applications affecting other applications on the desktop, and hence, breaking some of their services. The web services kind of completely remove that. Because there's a web browser, they don't have to worry about it impacting any of their installed applications. And so, what we find out as IT looks into this mode of deployment, it's not really a deployment, it's an enablement. They actually really advertise it to their end users. They actually rather end users use the web client than to have to install, and they have to test and slow the roll out. >> What do you guys see as, I mean, I'm old enough to remember when Lotus Notes was the state of the art collaboration. (laughs) >> That's real old. Man, that's old. >> I was digging myself. So, now you're talking a lot about integration, simplifying the experience, obviously video has come into play. >> Yes. What do you guys see as the mega trends and maybe give us a little glimpse of the road map as to what we can expect going forward whether it's AI or other data? Where does that all fit in? >> Yeah, I think you nailed it. So, there's this kind of better together, easy join, it's just table stakes right now. The ability for me to easily join a meeting, but where that's really rapidly going is the AI space. So, how can I augment that meeting? Before I join, how do I know about you as individuals, what you care about, what's happening with your company? So, a company acquisition we did recently, you know, fits into that in terms of how do we start surfacing information about the people. If I'm in the meeting, if I want to be able to click on someone and get more context about them. What happened in my previous engagements, what have we previously talked about? How do we surface that up in a timely fashion? And, when again you think about Google Calender and the information it knows about you as an individual, Cisco with the kind of matrix of who you're calling and what meetings have taken place, there's kind of a tantalizing thing there about how you blend that together. So, you surface the information, you automate this kind of, the repetitive, more mundane tasks, and free the people up to focus more on innovation and collaboration relationships. >> And the analytics opportunity is pretty big. >> Yeah, absolutely. >> I mean Diane Green said in her keynote, security is the number one worry, AI is the number one opportunity. By freeing up the mundane tasks, automating that away, the value will shift to up the stack. We were using a metaphor with Jennifer Lynd from Google. You know, when the horse and buggy was, you know, killed by the car, those jobs went away. There was no need for stuff, you know, the horse, the hay, and all that stuff. IT, same thing. Things are shifting, operations are changing. >> Yeah. >> This is fundamental. >> Context is a great example of that. You know, if you look at what's happening in that market, you know, the predictions that they're call flows are going to decrease isn't really happening. What's happening is you're going to multi-channel, and people are doing the more basic stuff online, just fixing issues, but when it becomes complex, when it becomes relationship, it becomes high enough value, then you want the personal interaction, so I think the way personally I look at AI is it will free up computers. They're doing this kind of more repetitive finding patterns, but when it comes to talking to the doctor about, you know, your condition or you're trying to build relationships, there's things that people just naturally do very well. And, plowing through lots of data to find patterns, we don't do great, so. >> It's actually quite amazing when you look at the trends over the last decade or so in terms of collaboration. I mean, it used to be, I was joking about Lotus Notes, but it used to be you'd request people to show up 15 minutes early so you could sort out all the problems. And now today, if you're like a minute late, people are like texting you, "Where are you? Let's go." So, we become so much more productive, and the protocol has changed. So, when you think about how machine intelligence is going to affect productivity going forward, it's potentially massive. >> Yeah, we see massive opportunities. As you know, to really get the benefit from AI, you need some pretty big data sets, so again, just thinking about Webex for a second, six billion minutes a month in meetings. I'm not saying we're going to push all that straight into Google, but when you think about what's tied up in those six billion minutes. >> A lot of video. >> What's been discussed, how easily can I unlock that? How do I get insights from it? How do I train models? It's like, again, the combination of huge data sets. >> AI would be just amazing. You just go, "Hey, I missed that Webex. Give me the highlight reel." >> Yes. >> Exactly. >> That would be great. >> Not only that, but how do you customize that for the individuals? >> Or if I missed the first ten minutes, can I go scroll back? Can I actually review, get the transcription? And, if I need some additional information, can I just pull it up and it shows up, you know, for me within the meeting, right? So, there's just massive opportunities that we're looking at. >> And, the user expectations, the new experience, that's what people are really designing around, what they're expectations should be. >> Yes. >> And they're making that user... Okay, Connie and Ben, I want to get one last question in before we break. Two parts, for each of you. What's the most important story from your perspective here at the show this week that you're talking about and sharing, and what's next for you guys? Ben, we'll start with you. >> So, yeah, my two answers are firstly, the initial kind of integrations we're putting together. People should go check that out because, you know, there's some very compelling use cases that we're fixing there. But, the big item is Cisco and Google working together to really tackle this kind of future of work, and the combination of those two portfolios is going to unlock some really interesting opportunities, and that's what the teams are kind of getting together, working on, defining, and stay tuned to kind of see those phase two, phase three deliverables. >> Future words. Great, Connie, from a product perspective, what's the hottest things that you've been talking about here, most important, and then what's next. >> Yeah, for us, it's really the Google and Cisco coming together in a collaboration space, working together to make it much easier and simpler for customers to deploy and use the products. And, also to explore new opportunities in transcription and AI, leveraging Google Assist right to, and just make it even better in the future. >> Scale up the experience. >> Yes. >> Probably expect some great developer opportunities going on. >> Yes. >> Exploring and reinventing the enterprise. That was Diane Green's theme. She'll be here on theCUBE breaking it down. I'm John Furrier with Dave Vellante. Live coverage, here we have Cisco collaboration inside theCUBE, big relationship, expansion with Google. New product integrations, the value of the services within the cloud. The new model for development and user experience. theCUBE bringing you all the content here on the floor. Stay with us for more live coverage after the short break. (upbeat music)

but cute at servicenow knowledge 14 is sponsored by service now here are your hosts Dave vellante and Jeff trick okay we're back this is Dave vellante with Jeff Frick were here live at moscone south and this is the knowledge 14 conference 6600 people here growing was about 4,000 last year you seen this conference grow and about the same pace as a services service now stop line they're growing at sixty percent plus on pace to do over 600 million in revenue this year on pace to be a billion-dollar company and we have the CFO here Mike Scarpelli cube alum Mike great to see you again thank you so this is amazing I mean Moscone is a great venue of the aria last year's kind of intimate you know and now you're really sort of blowing it out I would expect next year you're going to be in the into the big time of conferences well I got a budget for that Tiffany I'm a budget I know it's going to cost more just like the attendance is going up fifty sixty percent the costs are going up as well too but our partners are really important and our partners offset a lot of those costs will get over eight million in sponsorship revenue to offset that so when we expect next year will see a corresponding increase in the sponsorship revenue as well well it's impressive you have a lot of strong partners particularly the system integrator consultancy types you know we saw I hope it will miss somebody definitely saw sent you there last night we start Ernie young giving a presentation k p.m. ET le is about so cloud sherpas yeah the cloud shippers and so we had them on earlier she have a lot of these facilitators which is a great sign for you and they're realizing okay there's there's money to be made around the ServiceNow ecosystem helping customers implement so that's going to make you really happy no you know one of the things that's really important for us with the system integrators is today they haven't really brought us any deals but they've been very influential in accelerating deals and we think that theme is going to continue and based upon what they're seeing they're able to do in the ServiceNow ecosystem in terms of professional service consulting engagement we think that's going to start to motivate them to now bring us into deals that we were never in before but what they have been able to do as well besides just accelerate is have the deals grow beyond IT and we see that numerous on global 2000 accounts for us and you're not trying to land grab the professional services business that's clear effect when you talk to some of your customers when I've ever last year when your customer scoop is complaining that your your price is real high on the surface of suck which it probably makes you happy because it leaves more room for you for your partners and that's really not a long-term piece of your revenue II think you've said publicly you want to be less than fifteen percent of your business right yes yes we have a little bit of a ongoing debate internally my preference is not to see the professional service organization grow in terms of headcount with the pure implementation people the area that I would like to see it grow is more on the training side unfortunately some of our customers they insist that we are part of the professional service engagement so those are more the ones that we're going to be involved and if a customer is looking for a lower-cost alternative we want to make it fair for our partner so that we're not competing with them so they can come up with a lower price to offer a good quality service is important though that it's not going for the lowest price our partners need to make investment so it can be a quality implementations this is a number of early implementations that were done by partners that were some of our smaller partners where they really didn't meet the the expectations of those customers that we've had to go in and fix some of those engagements so the number one goal for our professional service is to ensure we have happy customers because happy customers renew and buy more which are two of the key drivers for our growth so you keep growing like crazy blew it out last quarter to get a 181 million in Billings revenues up 60-plus percent you're throwing off cash hitting all your metrics of course the stock went down oh there you go not much more you could do but you got to really be pleased with the consistent performance and really predictability it seems of the company yeah no I'm since I've been the CFO company it's going to be coming on three years suit in the summer the one thing that I will say about this business model is it's extremely predictable in terms of the the forecasting and what helps with that is the fact that we have such high renewal rates that really helps because we really since I've been here we've never lost any major accounts I think our renewal rate has been averaging north of ninety-five percent and in terms of our upsells or up sells have been very consistent on average they run about a third of our business every quarter and that was Frank has made comments before too that if we don't sign on another customer we can still grow twenty-five percent per year plus just based upon the upsell business opportunity that we have within our existing installed base of customers that's penetrating accounts deeper more seats more licenses more processes and applications yeah the main grower of our upsells are the main contributor to our upsells within our customers really has been additional seat licenses because many of our customers we still have even fully penetrated IT and as we roll out more applications or make our applications more feature-rich as we talked about as Frank his keynote he talked a little bit today aitee costing we've always had that as an application but that's going to be coming out as a much more feature-rich application it's going to be a lot more usable to some of our customers when that goes live that's going to drive more licenses because many times it's different people with an IT that are the process users behind that and then it's going outside of IT as well with the adoption of people enterprise service management concept that Frank's been talking about that will drive incremental users as well too we do have some additional products such as orchestration discovery with a vast majority of our growth and customers is additional licensing so very consistent performance like I say the stock pull back a little bits interesting you guys worked a Splunk tableau smoking hot stocks of all pullback obviously it's almost like you trade as a groupie even though completely different companies completely different business models you don't compete really at all but so you kind of got to be flattering to be in that yeah obviously but it's I looked at as X this is good in a way this is a healthy you know pull back it's maybe a buying opportunity for people that wanted to get in and there are a lot of folks that I'm sure they're looking at that do you I mean how much attention do you even pay for it i know most CFOs i took a say look we can't control it all we can control is you know what we can control and that's what we focus on but you even look at things like that you order your thoughts on you know and unfortunately there is a little bit of a psychology going on here with some of our employees and they're always asking and my comment to them is the only price that matters is the day you sell and this pullback that we've seen recently this is not uncommon was I expecting it to happen right now you know I don't if I if I could predict those things a lot of different line of business but what I will say history is the best indicator of the future and even a company like salesforce com one of our large investors last week he sent me an email and said you do realize that in the first five years of sales force being a public it had forgot if it was four or five fifty percent pullbacks in the stock price so this this happens it will happen I guarantee it will happen again sometime in the future but not just with us with all the other companies I'd be more concerned if it was we were the only company that traded down and everyone stayed up but we're all trading down we all came back today it's interesting and you kind of burned the shorts last year and they've made some money now but but you know Peter Lynch they don't ever short great companies and it's very hard to too short great companies your timing has to be perfect so and your core business you know like for instance a workday is is fundamentally very profitable or you know it should be right and because you're spending like crazy on sales and marketing you're expanding into into AP you're expanding your total available market and you're still throwing off cash what if you can talk about that a little bit you had said off camera your goal is to really be you know so throw off little cash basically be cash flow breakeven yes yes so you know you can only grow at a certain pace last quarter we added 150 new people into our sales and marketing organization that was the the largest number that we've ever added in one quarter we actually added 273 net new employees in q1 that was the most we've ever added in a quarter and even with all those ads we still had very good positive cash flow so it's pretty hard to add at any faster pace than what we're doing right now and so you know I just I don't see us being cashflow negative anytime in the future right now unless something happened and write it have to be a pretty major catastrophe thing and it's not going to be specific to service now it will be kind of across the board we're all CIOs stop spending and the other thing I learned here I thought maybe I just wasn't paying attention to earlier conference calls but the AP focus a large percentage of the global 2000 is in asia-pacific so you're out nation-building right I won't if he could talk about that sure so in two thousand and from March 31st 2013 till March 31st 2014 we open up in 10 new countries most of those were in asia-pacific there's still more countries we're going to be going into an asia-pacific and why are we going into these countries we're going into these countries because that's where the global 2000 accounts are that is our strategy because we focus on quality of customers not quantity of customers what I mean by quality of quality customers one that can grow over time to be a very large customer and even in 2013 we went into Italy and people said at the time well why are you going into Italy we went to Italy because they have global 2000 have 30-something global 2000 accounts even though the Italian economy wasn't doing well global 2000 customers still spend it's not specific to that country their global we signed to global 2000 counts in Italy last quarter so we have a history of showing that if we go into those countries we will be successful in winning those global 2000 and will continue there are some global 2000 so in geographies where it's going to take some time before we actually have a physical presence such as mainland China we do not have any sales people in mainland China today Russia we did not have any people in Russia today how about Ukraine you know we have no one in Ukraine today good thing about Hitler you get to go visit there that's your country I wanted to talk about the TAM yesterday last year we had I kind of watched it but but I was asking Colombo questions about the team because it was you know very interesting I saw a lot of potential want to try to understand how big it could be you and I talked about you had said its north eight billion of course the the stock took off i think it probably 10 billion from a value standpoint I didn't my own tam of mid year I did a blog post I had it up to 30 billion so I started to understand it was a top down it wasn't a bottom up but you guys are starting to sort of communicate to him a little bit differently you got had the help desk and then beyond that the IT Service Management and then you you've essentially got the operations strike the operations management and even now sort of enterprise and business management so I wonder if you could talk about how you look at the the tam and any attempts that you've made to quantify it sure so there's really four markets we play in that really intersect with one another in the core of our market is the IT Service Management that's kind of our beachhead and how we go into accounts in that market right now when historically when we went public gartner groups of the world they looked at it as a helpdesk replacement market they were saying as a 1.4 to 1.6 billion dollar market what they were missing is there's many other things in that space IT service management such as ppm such as our cmdb such as asset management a lot of these things aren't in your traditional help desk we think based upon the rate at which we've been extracting from the market that somewhere we can afford a six billion dollar market opportunity just IT Service Management and then IT Service Management is a subset of the overall enterprise service management market that Frank has been talking about we talked about in our analyst state we think that is potentially as high as 10x the size of our IT Service Management so that can get you up to say that 40 billion dollar plus and then you as well have the IT operations management space IT Service Management you just have the legacy vendors down there nothing innovative happening down there service relationship a lot of white space a lot of stuff that's being done in email lotus notes microsoft access sharepoint those are the markets were going after there really are no true systems in and that's in that space it's those one-off custom apps IT operations management there is a lot of innovation happening down that in that space it is very crowded with some new vendors as well as the legacy vendors the area that will plan might be the whole 18 billion dollar market at IDC talks about you know it's still early innings but it's at least two billion of that market 24 billion will be going after and then Frank brought up this concept of the whole business analytics as well too we talked about we did our acquisition in mirror 42 in 2013 and the business analytics kind of sits at the top of enterprise service relationship management the market we can go after in there that's a that's a whole market into itself at least as big as the enterprise service management but we're not going after that whole market it's just the business analytics to the extent it relates to enterprise service management so that's at least a couple billion more unfortunately this is what we believe there is no published reports out there and times going to is going to tell it similar to when Salesforce went public no one believed the opportunity in front of it and now look how big that come have a 30 billion dollar plus company valuations are depends on what time of year it is what the markets doing but over the long term you know you can sort of do valuation analysis it in the CFO world is there some kind of thought in terms of the ratio between an organization's tan and it's in its valuation you know I mean these other things raid obviously the leadership etc but but for the top companies there a relationship I personally don't get wrapped up in valuation you know I can't control that I can't control public company multiples the only thing we have control over is running our own business and we're going to stay very focused on running our business and let other we'll take care of the valuation good business you picked a good one yes no I I'm very pleased with this one excellent all right Mike well listen thanks very much for coming on the cube we're up against the clock and I always appreciate you thank you Dave time up alrighty bryce bravely request with our next guest we're live from tony south this is dave vellante with jeff record right back

[Music] [Music] okay we're back after that nice break here from knowledge we're here in Las Vegas at the Aria hotel this is service now's big customer conference about 4,000 folks here mostly customers most of the content at this event comes from customers its practitioners talking to practitioners which is quite rare actually at these conferences I'm Dave Volante everybody thanks for watching with wiki Bond org I'm here with my co-host Jeff Frick this is Silicon angles the cube we go to these events we extract the signal from the noise we love to bring you tech athletes and Fred ludie is here he is a tech athlete he's the founder of ServiceNow he started this platform around 2003 Fred welcome to the cube thank you very much so we really want to hear the story you know but we've been asked to sort of hold that off because we got another segment with you tomorrow but I just I have to ask you I mean seeing how this conference and ServiceNow as an organization has grown you just must be so thrilled in particular with the customer enthusiasm <Fred>  you know fundamentally I've got a personality flaw and I call it a kindergarten mentality I want to see my art on their refrigerator and the only way you can do that is by making somebody happy and so to see these people here with the excitement the enthusiasm and the smiles on their faces really is satisfying that kindergarten mentality cakes oh good stuff we were talking about that earlier Jeff had not seen the cakes before and was was quite amazed today no I think that's an industry-first actually good well be yeah announcements today you know that's if so you guys had some you're gonna transform an organization you got to have mobile I mean the whole world to go on mobile five billion devices and and growing what you guys announced today <Fred> well we announced the ability to run all of our applications on the iPad and you know I think people's reasonable expectations these days are that they should be able to manage anything anywhere anytime using the device that they currently have now I I like to think of an iPad as something that you use when you're pretending to be attending a meeting or when you're pretending to be watching TV with your family and when you are pretending to do that it'd be nice if very efficiently and very effectively you could manage whatever you needed to manage to get your job done and so today what we've announced is the ability to run everything that ServiceNow has on that iPad  <Dave> yeah I mean it seems to mobile is basically a fundamental delivery model and maybe even the main delivery model going forward wouldn't it be I <Fred> I think it will be a main delivery model and it's a it's a user interface that that requires complete rethinking about how you're going to do things you know for the longest time we we looked at screens with 24 by 80s you know these character screens and then we got big pixel monitors and then we got bigger pixeled monitors and we got very accurate Mouse's and everything got small and got hovers you've got you know this massive amount of data and now the form factor is completely shrunk and you're looking at this as my major input device so how am I going to get you know everything I used to do with a mouse where I'm hovering over things to see what they do or I'm touching you know 16 by 16 pixels which you by the way you can't hit with your fingernail how am I going to get all of that stuff how am I gonna be able to work with all that stuff using only my thumb or thumbs so how are you specifically taking advantage of that smaller form factor and you know the feature sets that you see in things like iPad <Fred> well I think it's a matter of rethinking so we're trying to get the user to be to be able to accomplish their task by doing considerably less work and one of the things that our system is actually very comprehensive it's very big and we create in the browser and our first user interface it was really created in 2005 we treat all the elements of the system equally so now what we've done in the in the mobile which I think is very unique it does MySpace I mean Facebook doesn't have this Lincoln doesn't have this we know exactly what you do as a user and we remember those things that you do edit of Li and so we're able to create shortcuts or we're able to remember the system is able to remember what you do and then very quickly present you back with those tasks which are repetitive so we're trying to simultaneously compress the information and reduce the interactions yeah so that doesn't sound trivial it sounds like there's some secret sauce behind that talk about that a little bit <Fred> well it's not trivial and it's a there there is secret sauce but it does it just requires you to rethink and for me you know if you if you read the jobs biography there were a couple of interesting things in their number one when he met dr. land they had both agreed that everything that had been invented was going to be invented had already been invented right the other thing that they that they pretty much agreed on are what job said and a quote that I've used for years is that great artists copy good artists copy and great artists steal and I've been a thief all my life I just I'm gonna admit it right here it's not on camera live and so what we do is we go ahead and take a look at who's doing this great Amazon is doing it great Zappos is doing it great asan is doing it great you know we and we capture those ideas and then what they meant by great artists steal is that you take them and you reformulate them for the task that you're trying to solve for the problem that you're trying to solve and the rich the artist won't they probably the original artist probably won't even recognize that as their work but yet they're they're deeply inspirational to us an artist so do you fancy yourself as a bit of  <Fred> well I think it's interesting  down down the road and you know to I was watching the Bellagio fountains create something like that if you think about the physics and the art that had to go into that to create that beautiful masterpiece you know it's not just a painting right think about the physics that goes on to shoot something seven its water seven hundred feet in the air and then cut it off instantly and have that all choreographed I mean it's phenomenal amount of engineering but it took also a phenomenal amount of art just to make that interesting so that we were we actually stood there in rapt amazement of you know look how all this is choreographed so yes I do in fact I don't think I take exception to the term engineering software engineering I don't think we haven't progressed to the point where this is an engineering this is this is an art this is a craft you know it's something that people practice and we try to get better at it and better at it and better at it but I don't think it's anywhere near an engineering discipline <Jeff> yeah the other interesting from the jobs book that I never really got until I read the book was like the iPod shuffle because when I first saw the iPod shuffle and you can't do anything you can't manage your playlists on it you all you can do is change songs I don't get it and then in reading the book as you just said you know what is what is it you're trying to accomplish with that form factor right and don't just automatically try to replicate what you can do a one form factor to another form factor but really rethink what's that application and it sounds like you're kind of taking advantage of that opportunity as you take the app to the mobile space into the iPad specifically to rethink what is the best use case for that platform you'll see tomorrow the iPad was really  <Fred> that's right and as as the inspirational first step that we're taking toward a totally mobile app and just like the Apple evolution of building all of this note wonderful new capabilities into iOS and then bringing them back into OS X we're going to be doing the same thing so you'll see tomorrow on stage not only in an iPad app but you will see a native iOS app running and you'll see that it does even more things than the iPad app does and much faster it's a wonderful user experience and those those notions will be also coming back into the browser etc the same way that apples been bringing a lot of the capabilities of iOS back onto OS X <Dave> I was talking to an IT practitioner last month at a large grocer and I asked him what's your what's your biggest challenge what excites you the most and he said the same thing he said both of X what's my biggest challenge is embracing all this pressure from my users for mobile and that's what excites me the most because I have a mobile addict I got in it pulls out all those devices so how do you see this announcement within your user base changing you know the lives of IT  prose.    <Fred> well it'll you know technology since the dawn of time has been used really for two things it's been it's been used to streamline make make tasks more efficient and more streamlined and it's been used to create business differentiators and so our our product really is about process and moving process through an organization and so we want to streamline that as much as possible so if I can we do things like change management change management has multiple levels of approval if I can get it to the point where a manager can pull his phone out of his pocket and do five approvals between meetings he's become significantly more efficient right the changes are going to be done in a more timely fashion and the bottom line improves it's as simple as that <Dave> yeah it's interesting we were those of you watching no we were earlier the today broadcasting from sa P sapphire event and if you go to sapphire are you here to to get huge doses of two things one is Hana of course which is there in memory database but the other is mobile he's all you hear and it's interesting to hear you guys talk about the ERP of IT and your si PE they know the poster child for ERP and all their customers are going to mobile whether it's retail manufacturing you know across the supply chain and so it sounds like you've got sort of similar mentality but more focused obviously with it within IT but of course now you're also reaching beyond IT do you see you're a mobile app a push going beyond the IT community <Fred> yeah absolutely you know our underlying all of our applications we have a platform that say it's a forms based workflow platform that's really purpose-built for something that we would characterize as a service service relationship management so pretty much any request response fulfillment type workflow can be handled by our platform and what our customers have done over the years is create different applications that help them streamline that workflow typically that workflow is handled by by people creating a spreadsheet emailing it to somebody else having a TA back perhaps they built a Lotus Notes app but yes everything that that that or I will say that our platform usage has been expanded by our customers sometimes beyond our wildest dreams and and we love it so you talked about you know some of the greatest artists we stole rights of and so now you guys put up this platform I've said a number of times today it's not trivial to it to actually get a CMDB working in the way that you wanted to get it to work so now you've had this platform out for quite some time your successes started to you know you get a lot of press people are starting to see it do you worry sometimes that people gonna say okay I can do that too I'm gonna I'm gonna you know rip it off what gives you confidence that you can stay ahead of those those thieves out there <Fred> well I have great confidence in that you know we have a very broad base of applications that are very deep in functionality but if that's really something that you want to happen yeah because you want some young people with fresh new ideas to try to unseat you because they will come at the come at this from a completely different perspective and a completely different angle and they will do things that you never thought of and so the race is then on are they going to become more relevant than me or am I going to be inspired by their ideas incorporate them into our platform and stay ahead of them see welcome that all right absolutely welcome back yeah we we wouldn't be where we are today if Edison and Bell weren't weren't the jobs and gates of their time I mean they had just and I think jobs and gates as well right they had this great rivalry that really caused technology to move ahead a lot faster than when it was just I be am selling mainframes and so you need those rivalries you need that you need that competition you know I'm I'm watching these young guys from asana it's a great little platform for for tasking and you know they came out of Facebook they have a very Facebook mentality and they have phenomenal ideas and believe me guys from asana I'm watching you those are just that's where great ideas come from >> <Dave> Wow we always like to say we love sports analogies here in the cube and Jeff your kids are into sports well as our mind you always want to see and play that more competitive you know environment it sounds like Fred you have the same philosophy yes very much so yeah excellent all right Fred well listen we really appreciate you coming by now you come back Fred's gonna be back again tomorrow we're gonna go through the story of service now that's why we really didn't touch up on it and in any kind of detail today but to it but but but Fred actually started the company we give him a little preview Fred so you started the company really not to go solve an IT service management problem right you came up with this sort of idea this platform and and then you you that was really the first application that you developed right up a step in for that oh great you see give us a little tidbit we're gonna back >> every day I wake up that's all I really >><Fred> I've been a programmer now for 40 years want to do why do I program because I want somebody to take a look at the technology that I build and say hey that's pretty helpful I like that I can use they're gonna put that in my fridge fridge so the real strategy behind the company was to build some software that somebody wanted that hopefully they would pay me so I could build more software that was the entire strategy and so you know on one hand I love technology and on the other hand it really irritates me when it makes me feel stupid or it makes other people feel stupid so what I wanted to do was to create an enterprise platform that people could use and they would feel empowered they could walk up and use it like they'd walk up and use an ATM like they'd walk up and buy something from Amazon etc so a completely you know consumer eyes thought process and then that was the thought process really in O 3 and no 4 and then what we do really figured out was that a platform is a very hard sale you know it's tough to convince somebody that they should take this it'd be like selling you an Intel processor and telling you can do anything you want right I want to solve a business problem and so we decided to go after the ITSM space first it was a space that was very underserved very lucrative and and growing significantly <Dave> amazing so so join us tomorrow we're gonna Fred back on and we're going to here this story the founding story of ServiceNow and how we got to where we are today so Fred thanks very much for coming on and sharing the news and I'm gonna change it all by tomorrow good all right so so keep it right there I will be up next we've got Douglas Leone coming on which is a partner at Sequoia Capital and and and one of the better-known DC's out in the valley so so keep it right there will be back with Doug just in a minute this is ServiceNow this is the cube this is knowledge right back

okay we're back this is Dave vellante Wikibon org i'm here with jeff Frek we're here at knowledge service now is big customer event we're at the aria hotel a lot of enthusiasm a lot of great stories we're seeing a pattern emerged IT is essentially this collection of disparate processes we have a lot of activity going on spreadsheets people using email to really keep track of what's going on many many systems trying to keep track of inventory assets process these problems incidents changes etc etc and it's just this big web of mess here comes service now a single system of record a cmdb that allows you to essentially tailor your processes to your business as opposed to some kind of technology module or some other kind of software system jason wu yan is here he's the vice president of operations for a cloud sherpas works within the ServiceNow business unit at Cloud Sherpas was a big sponsor of the show Jason welcome to the cube thank you very much so you heard my little intro of guys must be excited big sponsor a lot of a lot of action going on in this this event how do you feel we feel outstanding we're happy to be a part of the the event this is my third knowledge conference and of course as the director of training in service now I like to say there are more people in training at this conference that attended the entire knowledge 11 conference so it's a pretty phenomenal event so how was it progressed over the years this is my first knowledge and so I don't have that history I'd say that you know we leave a long legacy with service now all the way back to some of the very first knowledge conferences that occurred in first knowledge conference we probably could have had a the entire conference in this table right and of course today with almost four thousand attendees it's it's certainly grown tremendously we've got somewhere the neighborhood 1,200 people that have gone through training at this event alone we did a big part of providing that training for on behalf of service now with other partners as well and it's an exciting event there's a large buzz here as I'm sure you've seen there really is yes sir Cloud Sherpas other than a great name you know tell us about the company it's a great it's a great story to tell Gartner likes to turma cloud services brokerage and so first and foremost we're cloud services brokerage we have three strategic partnerships we are a Salesforce a partner we are one of the largest Salesforce partners in the world actually top five from a certification standpoint we're the largest Google Enterprise integrator in the world we're actually Google Google's partner of the year in 2011 and 2012 of course we like to think we're pretty good at servicenow as well a little background on us in the ServiceNow business unit we were the first partner in the United States Forest Service now we are the first partner to achieve preferred status at servicenow and the only partner to achieve that status globally today so how's it work so a customer wants to implement service now or google enterprise or Salesforce you basically are that brokerage layer in between so talk about how that works well we help customers adopt manage and enhance their cloud solutions of course focusing on this particular context service now and we are there from day one we're there to help them bring the platform into their environment we're help there to help them refine their processes and practices and of course ultimately align that to the service now a tool and help them manage that through their life cycle so how do you get ready for this what do you tell customers they need to do I tell customers commonly it's best to start where you're at with any improvement activity and ultimately in an enterprise deployment of software you're going to take that as an opportunity to improve I say start where you're at take the time to understand how you do things today you'd be surprised to see how often customers don't aren't all on the same page as to how they perform incident or what the key processes are underneath that or even what the key performance objectives are for that of course we recommend starting where you're at of course we have requirements workshops opportunities we have a number of I tell practices and other types of areas where we can help elaborate those requirements and better align them to their business needs but first and foremost you need to understand what you want your environment to look like some a requirement standpoint the workflows are key so what are the big obstacles that you see people running into when they try to do implement like this I would say in general taking too big of a bite you know there are over twenty two applications as an example in service now you don't want to start day one with 22 applications it's not because ServiceNow wouldn't be able to handle it ServiceNow can deploy very rapidly you really start simple start where you're mature or start where you have the most profound opportunity to improve and align to better practices get the foundation of the platform in place stabilize that and then move on to your next phase and progressively adopt more and more of the application so it's with the pattern that's emerging here we're hearing from customers people starting with incident problem management change management you know why there why why do we see that pattern emerging I think more across the industry that it tends to be a place where customers have have focused on over time so that tends to be where they're more mature they tend to have a better understanding of maybe what their shortcomings are today in those spaces so they tend to be an easier place to start what percentage of them are displacing some other legacy software versus we've heard about I'm not counting excel in that in that list or lotus notes because we hear a lot about that but I would presume there's other software out there that they're displacing we see a lot of software that gets this place down there of course point solutions where there's a lot of databases and homegrown applications handling change your change approvals or cab boards or those types of things of course it's a good opportunity to consolidate that and of course you know service now is known within the industry is being a pretty proficient solution but there are other solutions and we are offering seen that we're offsetting those as well you have we have the steam of no.2 now do you have any you know favorite examples that you can share with us or what are you some of your customers doing ha we've got a lot of good examples i would say probably most recently we just helped a very large clothing manufacturer an american good american company that had nine support environments globally and they had nine different ways of doing everything and they look use this as an opportunity to consolidate those and get to a single source of record get to a single workflow globally and in that they also transformed and improve their processes and and that was something that they couldn't have accomplished with really any other project or really any other tool in the market they of course chose to go down the path with with service now and you know a short few months later they're implemented across incident problem changed service request Service Catalog a very profound Service Catalog spanning literally hundreds of request items employee self-service portal that's been branded to their to their corporate brands there's been a lot of excitement in their injuries or community because they look like their company when they're when they're asking for support and they get a much more automated and in much more efficient process what was the genesis of that was it again something was breaking they had to change it was it let's just take a step back there's opportunity that we wanted to do this or were the easing service now and some other minor role and said wow you know we can actually use this tool to take advantage and do something transformation and generally what we see is service now it's really the enabler it's the enabler to transition transform now we've seen global sis do this forever that's their big thing we're going to help you consolidate and get your hands around it I think service now gives you the ability to to do that neutral of a partner or neutral of an outsourcing provider you can get your arms around it on your own and again many customers are relatively mature and incident problem and change and so it's a good opportunity for them to find those areas where they can aspire to better practice better process and to implement that into service count tool how was your business involves I mean it's so interesting because the poster child of SAS and Salesforce you guys obviously you know chose well that was 1999 may we are in 2013 it's really taking a long time Google Enterprise okay that's make sense but Google you know big whale I see you know guys like workday you know service now come out why do you think it's taken such a long time for these applications to catch on and and how has cloud sherpas you know progressed over those over that time frame well what i would say is the notion of a cloud services brokerage didn't exist eight to ten years ago right that that aggregation point didn't really exist it was those point solutions were always provided by those point providers or their tightly coupled partners in that space and of course with the emergence of this notion of a brokerage that's helping aggregate and manage and enhance low solutions you know we're seeing a lot of degrees of freedom so you know where we started we started as a firm that was focused on Google that emerged into Salesforce and now is through in a company called Navitus a few earlier or late last year now the ServiceNow practice as well and you know moreover it's it's it's where things are going right the truth is is that end-users and corporations and and whether it's you on your iPhone and for personal use or business use you want those applications available you want to have a solid user experience ServiceNow was really first in this space to be able to offer that in a way that was truly platform neutral that just worked whether it was a smart phone or an iPad or a desktop or laptop of what happened so talk about your strategy clouds share purrs and talk a little bit about how you differentiate well we differentiated in a number of ways but specific in the ServiceNow business unit and III don't think it's it could be said enough the cloud services brokerage is a huge differentiating point for us right having the scale that we do globally having you know several key strategic partners enables us to see areas and aspects of the industry that I don't think other partners can but from a service town business you know perspective I think we have a live a couple a couple differentiating points when is we were one of the first adopters of the platform from a partner perspectives so obviously we have a lot of deep skills in this we've done over 320 implementations of service now to date to have and of course 320 over 320 and through that history we've seen we've seen a lot of heuristics we've seen a lot of customer success stories we've seen a lot of things in the platform that customers are asking for time and time again and we've been able to fit that need both by my IT service management but also by industry as well a great example of that is we've got a number of custom applications that we've developed one of them as is a document management document processing application that a lot of legal firms are using in fact what we found is we built it for one company a few years ago Morrison forest or better known as mofo and now five or six legal firms later they've all asking for that same application and so we're finding that there's also you know real opportunity from an industry perspective to align to some of those point solutions extend the platform and just include those in the solution here's so much today about Big Data and you know it's all about this unstructured mass of information a bring structure to unstructured data maybe lending structured and unstructured some people don't even like those terms because it's all sort of blending how does analytics play into this whole IT Service Management IT automation there's a lot of metrics so they get this automating this forms based process is there a place for that or is is there not right now because everybody's kind of doing their own thing you know ten years ago I t was all about the tnit right it's all about the technology now it's all about the eye it's all about the information a great examples we're seeing a lot of partner solutions emerge in the ServiceNow ecosystem that are trying to better rationalize data there are tools like mere 42 for example which it's whole purpose is to is to bolt onto service now and provide a more comprehensive analytic package and there are many other examples of that as well in truth it's a services lead operation at this point it's not a technology led operation the only way to really ensure that you're delivering any quality of services or support is the quality of data that you provide and that starts with your requirements and those requirements need to bridge the performance measures in those performance there is just being an easy way to be accessible transparent and manageable and of course that's a big part of what service now does so how do you see this cloud brokerage you know space evolving over the next three to five years what's going to change you're going to hear a lot more from Cloud Sherpas in the space in the next three to five years that's for sure you know I think what we're going to find is is that more and more you're going to you're going to see gsis and other types of firms moving to this sort of model right I mean we're only we're going to take a lot of business away from them and and in that process you know it's going to get the right levels of attention you know what what I really think that cloud services brokerage is is it's a firm that is extremely experienced in the platform and the products they sell but more importantly the underlying reason for selling that product in the first place you know services IT services in this case it's a company that's known for being a little bit more nimble than some of those GS is you know getting the proposals out quickly and being effect effective and efficient and not looking to establish this enormous agreement but but a series of agreements that gets a customer to to where they need to go and I think what we're going to see is it is time and time again that the the early adopters in the cloud services brokerage spaces are going to be are going to be growing at rates like our business unit for example are business units currently growing at one hundred and fifty percent it's a tough tough job to keep up with but tools like ServiceNow certainly help us manage that and keep us on track with our own projects your own time carts and our own tasks yeah so you guys are great on the rocket ship with good service now pulling them along are they pulling you along a little bit of both like bikers drafting yeah so hexcel and I Jason we'll listen thanks very much for coming on the cube and sharing the cloud sherpas story will give you the last word here what advice would you give to folks that are you know maybe kicking the tires and mostly thirty percent of the audience here are not ServiceNow customers they're thinking about it what would you tell those guys have a good understanding of where you're at have a good vision of what you want to achieve and don't be afraid to go to the cloud it's not as not as hard as it sounds its clouds not scary just jump right in the water's fine hi Jason thanks very much for coming on really appreciated a good luck with managing that crazy growth and pleasure meeting you thanks very much all right Jeff reckon I'll be back with our next guest keep right here this is the cube we drop it of these events and we're covering the wall-to-wall service now knowledge will be right back from Las Vegas right after this