>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020 sponsored by Intel and AWS. Yeah, okay. Welcome back to the cubes. Live coverage here. Reinvent 2020 for a W s amazing content happening here within across the industry on digital transformation and more, more important than ever in the public sector has been mawr impacted by anyone during the cove and pandemic. And we're here remotely with the Cube Virtual because of the pandemic. Got a great guest, Kim, a jurist. She's the leader on the U. S. Education, state and local government for a W s public sector Kim, great to see you. Thanks for coming on. Remotely, at least we get to have a remote interview. >>Well, thank you for taking the time. This is This is our world these days, so it's good to be able to connect. >>Well, thanks for coming on. We're doing some specialty programming around public sector, mainly because it's such an important area. Uh, Andy Jassy Esquina, which is for the best conference at large at reinvent talks broadly, but I think it highlights what's going on in your world and that is this facing the truth. Um, this digital transformation has been forced upon us. It's accelerated and it's get busy, busy building or get busy figuring out how it might unwind and mawr education virtual remote if we >>didn't >>have video conference, and this could have been a disaster even further, but certainly has impacted everybody in the government education. How is it impacting share with us? What's going on? >>You know, I think that difficult partisans. When we turned on the news early days there in Cove it it was clear that students weren't learning and citizens couldn't get in contact with their government to ask for support. Um, I would say it was that moment in time where the technical debt that whether your state, local or education, you had to quickly realized that you need to connect with your students and your citizens. But I take a look at how quickly they were able to turn across the US Many of them realized what usually took years, literally turned into innovating overnight to support students as well as those filing for on unemployment claims. And I think that's what we heard a lot of, and those were some of the opportunities that Amazon really took, uh, to our customers said, Hey, we can help you solve these problems with great services such as connect >>you know, Connect came up in the keynote multiple times, and he really spend time on that as a as a disruption slash enabler for value. Can you share how cloud has scaled up some of your customers? I know connects, been pretty prominent in the public sector for Covic support and really has changed in saves lives in many cases. Can you share an example of how it's worked out? >>Absolutely. I mean, Rhode Island is is a great example. They use Amazon connect. They helped the state literally address this massive surgeon of unemployment insurance applications due to Cova 19. But literally the call times and the vines were cut down in What they were able to do is answer the call, not just have it be on a fast busy or a disconnect. Whether it was Department of Labor at Rhode Island, whether it was the state of Kentucky or the state of West Virginia, all those authorities use had to deal with that surge, and they were able to do it successfully and literally, in some cases, overnight to support citizens. That's how quickly they were able to innovate and hit those call centers, Um, effectively. But it's not just about the call center, because keep in mind they would go into those call centers with connect. They were able to actually take those calls from home, and we saw that in education as well. Take a look at L. A unified school district. What they had to do to quickly transition from in person training to supporting these students remotely. They had to do it overnight, and they use connect their asses well, not only to support the students, the teachers or the staff, but they took that opportunity to really continue educating and continue serving. >>You know, one of the things I was talking anti about in my one on one interview before reinvent was necessity is the mother of all invention in these days, and I think that came from a quote from one of your customers, like interviewed when asked, You know how the innovation strategy come about, and that's what they said. They said we needed it really bad, and we had to move quickly and then Andy said in his keynote that everything is on full display right now, meaning that the pandemic is forced one and you can see who's winning and who's not based on where they are in the cloud journey. So have to ask you leaderships a big part of this. What is the trend that you're seeing within your world because, you know, government not known for moving fast. And this is a speed game at this point. Healthcare. A big part of that. You got education. Government. What's >>the >>leadership mindset on innovating right now? And can you share because, yeah, you got some easy, you know, examples. Now the point is, hey, way have connect with people were like productivity opportunity that's now the new normal. So even in life does come back. There's new new things that have been discovered. Is that resonating with your your customers? And can you share the leadership mindset? >>Absolutely. So make no mistake. It was never a question of if it was a question of when the pandemic clearly is accelerating it. But, you know, we've been working with over 6500 government agencies and collaborating with them to really focus on some of their mission critical, um called based services. So and this is the new normal. They recognize it. And it's the foundation that during the pandemic that it's been said to say, Hey, we're going to push and we're gonna push quicker because they were actually able to demonstrate that they could do it. I'll give you an example. It's It's a heartbreaking one from my perspective. Being a mom, um, l. A. County Department of Child and Family Services, They operated their analog child protection hotline. Now the numbers are are unfortunate and staggering. But when you took a look at the peak before the pandemic, the call center received as many as 21,000 reports of child abuse and neglect in a month. During those pick times, up to 100 staff members would log in and literally take 120 back to back calls per hour. Now, when you think about that legacy environment with Amazon connect, they were able to continue the service, continue the support to help these Children and available 24 7, and they were able to do it from their homes. So e mean it gives me chills, just thinking about three unfortunate situations. But they were able to quickly move and and continue to support. Yeah, >>and the thing to I want to just bring up also had a customer I interviewed from Canada. I think they were partner with a censure. They had unemployment checks, they couldn't get out, and entitlement things that were literally checks and connect stood up that in like, record time. He was convinced. He's like he was kind of Amazon fan, but he was kind of still out of Amazon. He was like, I'm convinced we're gonna use Amazon going forward. It was a tipping point for him. There's a lot of these tipping points going on right now. This has been a big theme of this reinvent so far. Yeah, cloud transition, two full cloud value. This is the new normal What? What what what can clients get when they have budget or trying to get budget when they say the benefit? The clouds are what? >>Well, I mean again, use another use case. I'll go back to another example in L. A county. So when you think about l. A county itself, um, I won't give you the exact numbers because I don't know him off the top, but approximately 10 million residents and employs over 100,000 staff again. Look at the cost savings that they saw. So, you know, technical data is a problem. Being able to invest is a challenge because of budgets, but they were able to save 60% in one year from there on prem environment and licensing costs. But the cost is one piece. If you could take 17% fewer calls and you're solving those challenges by using a i N M l. Through the technology of what they were gathering through those calls, it made a huge impact and improved their service to their citizens. So you know it. The cost savings air there. And there are so many examples that states air, recognizing that they need to move quicker because they could take advantage of those costs, especially with some of the budget challenges we're going to see across the U. S. >>And the machine learning examples are off the charts. So, Kim, I gotta ask, you going forward now in reinvent what's the big focus for you and your teams and your customers because you guys are very customer focused. You're working backers from the customers. We hear that on and on what is going on in your customer base? One of the priorities, >>um, priorities for us will always remain on the mission to which our customers are focusing on. If we think about education, the question is, how are they re imagining the the delivery and the success in this new world that we're dealing with? So we'll continue to work and innovate with our partners and with amazing All right, a text that are in our business take a look at blackboard, right? They were able to scale 50 times their normal capacity globally, literally within 24 hours they're looking at How do they continue to innovate to serve? We're gonna work with K through 12 through academic medical centers and research, because when you think about what we need is we need to find that vaccine we need to find the ability to treat and serve. We're focused on those missions with the states, the research and the education teams. >>It's been unusual year learning is changing remote learning, remote work, the workforce, the workplace, the workloads. They're all changing. Onda clouds a big part of it. Um, final question for you. What's the take away for reinvent this year means different. You mentioned some of those highlights. What's the big take away for your audience? >>I think for state local education is it's available. It's now, and they have to serve their students and citizens quit. Um, what they've been able to do in the cloud again? A zay said at the start of the interview. They can now do overnight within minutes and hours and and support their citizens. And they have to do it quickly. So, >>uh, coyote to coyote goodness for the state and local governments to >>absolutely it's going to continue. And I think the important part is focused on the opportunity of innovating and supporting the mission >>Can Great to see you. Thanks for the insight. Thanks for the update. Appreciate it. We'll be following it. A lot of great successes. You guys have been having the Cuban involved in a bunch of them and we'll continue to follow the transformation. Thanks for coming on. >>Thank you. Enjoy Sena. >>Okay. This is the Cube Virtual. I'm John for your host. Thanks for watching more coverage. Walter Wall reinvent 2020 Virtual. Thanks for watching. Yeah,

one thing i'd point out is well flashblade one of our products is scale out flasharray our first product is not scale out um you know scale out isn't a capability for a customer it's an architecture in how you build the product uh you know when i scale out i have more complicated software i have more components more components lead to more failures right if i have a piece of memory and it's going to fail at a certain annual failure rate and i have 10 pieces of memory i'm going to fail at 10 times that same rate so scale out introduces complexity it introduces more components and then you have to say what do you get from it so if our customers needed a lot more performance than we're delivering if they needed a lot more scale than we're delivering in the flash array product we then react to that and go build scale out where the flash array sells we don't see that as a major market need it's more of a niche where flashblade sells then there is much more of a need for that and that's why flashblade would scale out from day one the tam expansion really is following where solid state takes us you know we've gone from um a world that was where believe it or not most computers still had mechanical systems operating them it's sort of like having a mechanical calculator rather than an electronic calculator right we had mechanical disks in our computers literally spinning rust right and it's only been in the last decade where a semiconductor you know where solid state has taken uh the place of that called flash right well as that continues to get less expensive we now can bring not only flash performance into disk economics but more importantly now we can finally have modern software that is driving the need for having greater flexibility with our data as data grows it now we say it has gravity that is it gets heavy it gets hard to manage hard hard to move uh between different environments and now a lot of infrastructure operators are spending much more time managing their data managing the storage systems for their data than they are managing anything else in the data center environment we want to eliminate all that we want to automate all of that you know on the theme of decades two decades ago every application had its own individual communication stack there were dozens of different protocols and a dozen different networks in every company one decade ago ago every application had its own um custom hardware stack and and custom operating systems stack well today there's one network it's called the internet uh today everything every application every server is virtualized allowing mobility and yet storage is still static we we want this decade a bit to be about making storage and data dynamic and really responsive to the needs of the application environment sure so it's a it's a deep relationship that's only getting deeper and it's really at all levels it starts with the executive alignment you think about charlie giancarlo from cisco we've got a lot of just common cross-pollination there but now it extends certainly the field level tom and i are doing a lot of planning together in terms of having our teams go after common use cases but now it extends to engineering as well we had a ucs director plug-in that we've had for some time now uh but but pure is now first in terms of having integration into cisco intersight so we are first and only to have storage integration at the cisco intersight so that cisco and pure customers can really manage their uh environment from from one console so a lot of simplicity uh the single sas interface for managing everything tom why pure why first with that well you know nathan he articulated it well you can look at the executive level we talked about charlie but even you know all of our cisco executives but also to the engineering this the we started really strong uh with the field sales teams but even if you look at the little things that our customers notice but a lot of people may not like the internal development of validated design guides use cases we churn them out um with pure as uh you know our top ecosystem partner more than anybody and there's a lot of work being done our customers see that and it's really helped drive you know our go to market together it's really a very strong strategy and what is the type of data that's going to be the best fit for it there are a lot of common patterns for consumption in a.i uh speech recognition image recognition places where you have a lot of unstructured data or it's unstructured to a computer it's not unstructured to you when you look at a picture you see a lot of things in it that a computer can't see right because you recognize what the patterns are and the whole point about ai is it's going to help us get structure out of these unstructured data sets so the computer can recognize more things you know the speech and emotions that that we as humans just take for granted it's about having computers being able to process and respond to that in a way that they're not really capable of doing today absolutely absolutely yeah no i mean i think it's been a really exciting conference for us so far like you said a lot of payload coming out um you know as far as the building the bridge of the hybrid cloud this has been you know we this has been i would say a long time coming right we've been working down this path for uh for a couple years we started by bringing some of the cloud-like capabilities that customers really wanted and were able to achieve into the cloud back into the data center right so you saw us do this in terms of making our on-prem products easier to manage easier to use easier to automate you know but what working with customers over the last couple of years you know we realized is that as the cloud hype kind of subsided and people were taking a more measured view of where the cloud fits into their strategies what tools it brings you know we realized that we could add value in the in the public cloud environment the same types of enterprise capabilities the same type of features rich data services uh feature sets things like that that we do on premise in the cloud and so what we're looking to achieve is actually quite simple all right we want to give customers the choice whether whether customers want to run on premise or in the cloud that's just a choice of we wanted to we wanted to make an environmental choice we don't want to we don't want to put customers in a position where they have to make that choice and feel trapped in one location or another because of lack of features lack of capabilities um you know or or economics and so the way that we do that is by building the same types of capabilities that we do on-prem in the cloud giving customers the freedom and flexibility to be agile sure well we're a two-year-old uh startup uh headquartered out of bellevue washington and we really focus on two primary uh businesses we have a blockchain business and we have an ai business uh in blockchain we are one of the largest blockchain cryptocurrency hosting companies in north america uh we've got uh you know facilities uh uh four facilities in north carolina south carolina georgia and kentucky and you know really the the business there is helping companies to be able to take advantage of blockchain and then position them for uh the future you know um and then on the ai side of our business uh really you know we we operate that in two ways one is we can also co-locate and host people uh just like we do on the blockchain side but primarily we're focused on uh creating a public cloud focused on gpu-centric computing and artificial intelligence and we're there to help you know really usher in the new age of ai how does pure actually take that word simple from a marketing concept into reality for your customers yeah you know i i think i think simple is um the most underappreciated but biggest differentiator that pure has um i was recalling for someone you talked to cause earlier today i had a conversation about three weeks into the existence of pure excuse me with cause and we were just debating i mean this is before we wrote any code at all about what would be pure's long-term differentiator and i was kind of like i will be you know the flash people or high performance or whatever he's like no no we're going to be simple we are going to deliver a culture that drives some plus into our products and that will be game changing and i thought he was a little crazy at the time um but he's absolutely turned out to be right and if you if you look over the years that started with just an appliance experience a tent card install you know just a really easy environment but that's manifested itself into every product we create and it's really hard to reverse engineer that you know it's an engineering discipline thing that you have to build in the dna of the company so how do you see the partnership with splunk just in terms of supporting that tam expansion the next 10 years so analytics particularly log analytics have really taken off for us in the last year as we put more focus on it um we want to double down on our investments as we go through the end of this year and in the next year with with a focus on splunk um as well as other alliances um we think we are in a unique position because the uh rollout of smart store right customers are always on a different scale in terms of when they want to adopt a new architecture right it is a significant uh decision that they have to make and so we believe between the combination of flash array for the hot tier and flashblade for the cold is a nice way for customers with classic splunk architecture to modernize their platform leverage the benefits of data reduction to drive down some of the cost leverage the benefits of flash to increase the rate at which they can ask questions and get answers is a nice stepping stone and when customers are ready because flashblade is one of the few storage platforms in the market that is scale out bandwidth optimized for both nfs and object they can go through a rolling non-disruptive upgrade to smart store have you know investment protection and and if they can't repurpose that flash rate they can use pure as a service to have the flash raise the hots here today and drop it back off to us when they're done

>> Announcer: From Austin, Texas, it's theCUBE Covering Pure Storage Accelerate 2019. Brought to you by Pure Storage. >> Welcome back to theCUBE, Lisa Martin live on the Pure Accelerate floor in Austin, Texas. Dave Vellante is joining me and we're pleased to welcome a couple of guests from Core Scientific for the first time to theCUBE. We have Jim Benedetto, Chief Data Officer and John Curran, the SVP of Business Development. Gentlemen, welcome to theCUBE. >> Both: Thank you. >> Pleasure to be here. >> So John, we're going to start with you. Give our audience an overview of who Core Scientific is, what you guys do, what you deliver. >> Sure, well, we're a two year old start up. Headquartered out of Bellevue, Washington and we really focus on two primary businesses. We have a blockchain business and we have an AI business. In blockchain, we are one of the largest blockchain cryptocurrency hosting companies in North America. We've got facilities, four facilities in North Carolina, South Carolina, Georgia, and Kentucky. And really the business there is helping companies to be able to take advantage of blockchain and then position them for the future, you know. And then on the AI side of our business, really we operate that in two ways. One is we can also co-locate and host people, just like we do on the blockchain side. But primarily, we're focused on creating a public cloud focused on GPU centric computing and artificial intelligence and we're there to help really usher in the new age of AI. >> So you guys you founded, you said two years ago. >> Yes. >> From what I can tell you haven't raised a ton of dough. Is that true or are you guys quiet about that? >> John: We're very well capitalized. >> Okay, so it hasn't hit crunch base yet. >> Yeah, no. So we're a very well capitalized company. We've got, you know, to give you-- >> 'Cause what you do is not cheap. >> No, no, we've got about 675 megawatts of power under contract so each one of our facilities is about 50 megawatts plus in size. So no, it's not cheap. They're large installations and large build outs. >> And to even give you a comparison, a standard data center is about five to 10 megawatts. We won't even look at a facility or a plot of land unless we can supply at least 50 megawatts of power. >> So I was going to ask you kind of describe what's different between sort of blockchain hosting at conventional data bases or data centers. You kind of just did, but are there other sort of technical factors that you guys consider? >> Absolutely. We custom build our own data centers from the ground up. We've got patent pending technology, and if you look at virtually every data center in the world today, it's built with one thing at it's core and that's the CPU. The CPU is fundamentally different than the GPU and if you try to retrofit CPU based data centers for GPUs you're not going to fully maximize the performance and the capabilities of the GPU. So we build from the ground up data centers focused with the GPU at the center and not the CPU at the center. >> And is center in quotes because I mean, you have all this alternative processing, GPUs in particular that are popping up all over the place. As opposed to traditional CPU, which is, okay, just jam as much as I can on the real estate as possible, is that a factor? >> Well there's also a lot, the GPU at the center but there's also a lot of supporting infrastructure. So you got to look at first off the power density is very, very different. GPU, they require significantly a lot more power than CPUs do and then also just from a fluid dynamic prospective, it's very, the heating and cooling of them is again fundamentally different. You're not looking at standard hot, cold aisles and raised floors. But the overall goal also is to be able to provide a supporting infrastructure, which is from an AI ready design, is the interconnected networking and also the incredibly fast storage behind it. Because the name of the game with GPUs is different than with CPUs. With GPUs, the one thing you want to do is you want to get as much data into the GPU as fast as possible. Because compute will very rarely be your limiting factor with the GPU so the supporting infrastructure is significantly more important than it is when you're dealing with CPUs. >> So the standard narrative is, well, I don't know about cryptocurrency but the underlying technology of blockchain has a lot of potential. I personally think they're very much related and I wonder if you guys can comment on that. You started during the real, sort of the latest, most recent sort of big uptick, I know it's bounced back in cryptocurrency and so must you must've had a lot of activity in really, in your early days. And then maybe the crypto winter affected you, maybe it didn't. Some of those companies were so well capitalized, it was kind of their time to innovate, right? And yeah, there were some bad actors but that's really not the core of it. So I wonder what you guys have seen in the blockchain market. We'll get to AI and Pure and all that other stuff but this is a great topic, so I wonder if you could comment. >> So you know, yes, there's certainly classicality in the blockchain market, right? I think one of the key things is being well capitalized allows you to invest through the down turns to position to come out stronger as the market came out and you know, we've certainly seen that. Our growth in blockchain continues to really be substantial. And you know, we're making all the right strategic investments, right? Whether it's blockchain or AI, because you have such significant power requirements you know, you got to be very strategic about where you put the facilities. You're looking for facilities that have large sustained power capabilities, green. You know we've seen carbon taxes come in, that'll adversely affect folks. We want to make sure we're positioned for long term in terms of the capabilities. And then some geo political uncertainty is certainly affected, you know. The blockchain side of the business and it's driven more business to North America which has been fantastic for us. >> To me you're hosting innovation, you're talking blockchain and AI and like you're saying include crypto in there, you have some cryptocurrency guys, right? >> We do blockchain or cryptocurrency mining for ourselves as well. >> For yourselves, okay. But so my take on it is a whole new internet is being built and the crypto craze actually has funded a lot of that innovation. New protocol, when's the last time, the protocols of the internet, SMTP, HTDP, they're all government funded or education funded, academic institutions and the big internet companies sort of co-opted them. So you had a dirt of innovation, that's now come back. And you guys are hosting that innovation, that's kind of how I look at it. And I feel like we've seated the base and there's going to be this massive explosion of innovation, both in blockchain, crypto, AI automation and you're in the heart of it. >> Yeah I agree, I think cryptocurrencies or digital currencies are really just the first successful experiment of the blockchain and I agree with you, I think that is is as revolutionary and is going to change as many industries as the internet did and we're still very in a nascent stage of the technology but at Core, we're working to position ourselves to really be the underlying platform, almost like the alchemy of the early days of the internet. The underlying platform and the plumbing for both blockchain and AI applications. >> Right, whether it's smart contracts, like I say, new innovation, AI, it's all powering next generation of distributed apps. Really okay, so, sorry, I love this topic. >> I know you do. (laughs) >> Okay so where do these guys fit in? >> John: So do we. >> I mean, it's just so exciting. I think it's misunderstood. I mean the people who are into it are believers. I mean like myself, I really believe in a value store, I believe in smart contracts, immutability, you know, and I believe in responsibility too and that other good stuff but so. >> Innovation in private blockchain is just starting. If you look at it, I think there's going to be multiple waves in the blockchain side and we want to be there to make sure that we're helping power and position folks from both an infrastructure as well as a software perspective. >> Every financial institution, you got VMware doing stuff, Libra, I love Libra even though it's getting a lot of criticism, it just shined a light on the whole topic but bring us back to sort of commercial mainstream, what are you guys doing here, what's going on with Pure? >> So we have built, we're the first AI ready certified data center and we've actually partnered very closely with Pure and INVIDIA. As we went through the selection process of what type of storage we're going to be using to back our GPUs, we went through a variety of different evaluation criteria and Pure came out ahead and we've decided that we're going with Pure and we, again, for me it boils down to one thing as a Chief Data Officer is how much data can I get into those GPUs as fast as possible? And what you see is if you look at a existing, current Cloud providers, you'll see that their retro fitting CPU based centers for GPUs and you see a lot of problems with that where the storage that they provide is not fast enough to drive quote unquote warm or cold data into the GPUs so people end up adding more and more GPUs, it's actually just increased GPU memory when they're usually running around a couple percents, like one or two percent, five percent compute but you have to add more just for the memory because the storage is so slow. >> So you, how Jim you were saying before when we were chatting earlier, that you have had 20 years of experience looking at different storage vendors, working with them, what were some of the criteria, you talked about the speed and the performance, but in terms of, you also mentioned John that green was, is an important component of the way that you build data centers, where was Pure's vision on sustainability, ever green, where was that a factor in the decision to go with Pure? >> If you look at Pure's power density requirements and things like that, I think it's important. One thing that also, and this does apply from the sustainability perspective, where a lot of other storage vendors say that they're horizontally scalable forever but they're actually running different heads and in a variety of different ways. Pure is the only storage vendor that I've ever come across that is truly horizontally scalable. And when you start to try to build stuff like that you get into all the different things of super computing where you got, you know, split brain scenarios and fencing and it's very complex but their ability to scale horizontally with just, not even disc, but just the storage is something that was really important to us. >> I think the other thing that's certainly interesting for our customers is you're looking at important workloads that they're driving out and so the ability to do in place upgrades, business continuity, right, to make sure that we're able to deliver them technology that doesn't disrupt their business when their business needs the results, it's critically important so Pure is a great choice for us from that perspective and the innovations they're driving on that side of the business has really been helpful. >> I read a stat on the Pure website where users of Core Scientific infrastructure are seeing performance improvements of up to 800%. Are you delighting the heck out of data scientists now? >> Yeah, I mean. >> Are those the primary users? >> That is, it again references what we see with people using GPUs in the public Cloud. Again, going back to the thing that I keep hammering on, driving data into that GPU. We had one customer that had somewhere 14 or 15 GPUs running an analytics application in the public Cloud and we told them keep all your CPU compute in one of the largest Cloud providers but move just your GPU compute to us and they went from 14 or 15 GPUs down to two. GV-100 and a DGX-1 and backed by Pure Storage with Arista and from 14 GPUs to two GPUs, they saw an 800% in performance. >> Wow. >> And there's a really important additional part to that, let's say if I'm running a dashboard or running a query and a .5 second query gets an 800% increase in performance, how much do I really care? Now if I'm the guy running a 100 queries every single day, I probably do but it's not just that, it's the fact that it allows, it doesn't just speed up things, it allows you to look at data you were never able to look at before. So it's not just that they have an 800% performance increase, it's that instead of having tables with 100s of millions of rows, they now can have tables with billions of rows. So data that was previously not looked at before, data that was previously not turned into the actionable information to help drive their business, is now, they're now getting visibility into data they didn't have access to before. >> So you're a CDO that, it sounds like you have technical chops. >> Yeah, I'm a tech nerd at heart. >> It's kind rare actually for a CDO, I've interviewed a lot of CDOs and most of them are kind of come from a data quality background or a governance and compliance world, they don't dress like you (laughs) They dress like I do. (laughs) Even quite a bit better. But the reason I ask that, it sounds like you're a different type of CDO, like even a business like yours, I almost think you're a data scientist. So describe your role. >> I've actually held, I was with the company from the beginning so I've held quite a few roles actually. I think this might be my third title at this point. >> Okay. >> But in general, I'm a very technical person. I'm hands on, I love technology. I've held CTO titles in the past as well. >> Dave: Right. >> But I kind of, I've always been very interested in data and interested in storage because that's where data lives and it's a great fit for me. >> So I've always been interested in this because you know the narrative is that CDOs shouldn't be technical, they should be business and I get all that but the flip side of that is when you talk to CDOs about AI projects, which is you know, not digital transformation but specifically AI projects, they're not, most CDOs in healthcare, financial services, even government, they're not intimately involved, they're kind of like yeah, Chief Data Officer, we'll let you know when we have a data quality problem and I don't think that's right. I mean the CDO should be intimately involved. >> I agree. >> In those AI projects. >> I think a lot of times if you ask them, you ask, a lot of people, they'll say are you interested in deploying AI in your organization? And the answer is 100% yes and then the next follow up question is what would you like to do with it? And most of the time the answer is we don't know. I don't know. So what I have found is I go into organizations, I don't ask if people want to use AI, I ask what are your problems and I think what problems are you facing, what KPIs are you trying to optimize for and there are some of those problems, there are some problems on that list that might not be able to be helped by AI but usually there are problems on that list that can be helped by AI with the right data and the right place. >> So my translation of what you're asking is how can you make more money? (laughs) >> That what it comes down to. >> That's what you're asking, how can you cut costs or raise revenue, that's really ultimately what you're getting to. >> Data. >> Find new customers. I think the other interesting thing about our partnership with Pure and especially with regards to AIRE, AIRE's is an exciting technology but for a lot of companies is they're looking to get started in AI, there's almost this moment of pause, of how do I get started and then if I look at some of the greatest technology out there, it's like, okay, well now I have to retrofit my data center to get it in there, right. There's a bunch of technical barriers that slow down the progression and what we've been able to do with AIRE and the Cloud is really to be able to help people jumpstart, to get started right away. So rather than you know, let me think for six months or 12 months or 18 months on what would I analyze, start analyzing, get started and you can do it on a very cost effective outback's model as opposed to a capital intensive CAMP-X model. >> Alright, so I got to ask you. >> Yeah. >> And Pure will be pissed off I'm asking this question because you're talking about AIRE as a, it's real and I want some color on that but I felt like when the first announcement came out with Invida, it was rushed so that Pure could have another first. (laughs) Ink was drying, like we beat the competition but the way you're talking is AIRE is real, you're using it, it's a tangible solution. It's a value to your business. >> It's a core solution in our facility. >> Dave: It's a year ago. >> It's a core thing that we go to market with and it's something that you know, we're seeing customer demand to go out and really start to drive some business value. So you know, absolutely. >> A core component of helping them jumpstart that AI. Well you guys just, I think an hour or so ago, announced your new partnership level with Pure. John, take us away as we wrap here with the news please. >> Yeah, so well we're really excited. We're one of a handful of elite level MSP partners for Pure. I think there's only a few of us in the world so that's something and we're really the one who is focused on bringing ARIE to the Cloud and so it's a unique partnership. It's a deep partnership and it allows us to really coordinate our technical teams, our sales teams, you know, and be able to bring this technology across the industry and so we're excited, it's just the start but it's a great start and we're looking forward to nothing but upside from here. >> Fantastic, you'll have to come back guys and talk to us about a customer's who's done a jumpstart with ARIE and just taking the world by storm. So we thank you both for stopping by theCUBE. >> Absolutely, we'll love to do that. >> Lisa: Alright John, Jim, thank you so much for your time. >> Thank you. >> Absolutely. >> John: Really appreciate it. >> For Dave Vellante, I'm Lisa Martin, you're watching theCUBE from Pure Accelerate 2019. (upbeat techno music)

>> Produced from the Cube studios. This's strong by science, in depth conversations about science based training, sports performance and all things health and wellness. Here's your hose, Max Marzo. I'm with >> the one and only Cory Slush Inger Cory is the director of men's sorry, director of performance from men's basketball at Stanford University. Good friend of mine, extremely passionate human. And for those you don't know former college basketball Hooper Corey really happened. Happy on a day to thank you for being here. >> No, man, it's an absolute pleasure. Me, Max. It's It's kind of crazy how our relationship has evolved throughout the years. Ah, start with Diem. You know, that's how it usually goes, the way your T shirt and he's got hair. So I wish I was that God, like I got it down here, but I got it out talk. So don't worry, Max. I'm going to make you a T shirt and I'm sending Teo. You said >> make a T shirt. I >> will wear >> until you plant cast with you again. >> Be careful with the pick. Might be >> way careful with that. Wait. Speaking of that, Corey, I mean, before we went on air here, you have a little story about your beard. And not to say you're only known for the beard, but the beer definitely is a staple in the slashing. Your appearance give me back for that. I want to hear it, and they will dive into some of the science. >> Yeah, man. So as far as the beard, I mean, it started at you. Maybe we're on a Spanish tour went overseas, and I did. One of those crazy handlebar mustache is right. I mean, it was gnarly, but being overseas just didn't shave, right? I mean, we're there for almost a week and a half, and I just started growing out the stubble. And then people are like, keep it going. And so I kept going and we were winning a lot of games. And then we end up winning a championship. And so it became like the tournament beard or became like the season beard. And so I just kept rolling it from there, and yeah, that's that's kind of where the beard is stated for now. And then when I realized, like if I could, it almost looks like a cancer patient. So I needed a key because he's blond eyebrows, man from five feet away. It looks like I'm ball period like I can't grow here. So, yeah, that's where the beard states is at this point. >> Well, Iet's fifty. I'm getting mine going. I'm not going to your caliber. I keep it trimmed, but it makes me feel like I'm a scientist or something. If I have a beard, makes you more intelligent, but getting off the topic here. When it comes to developing anybody, people say, you know, athletes, athletes, athletes athletes are what zero point zero zero one percent of population when it comes to developing anybody at all. We got talking about the bass aspects of human movement human development. You have an interesting take on this, and I don't want to spoil it for the listeners. I'd rather have you say it first, cause I'll just bastardized and screw it up. You're going to take on developing anybody regardless if they're an athlete or just general population, >> right? I mean, if you look through human evolution one or two things that we used to do, I used to farm. We used to kill things with our hands. We used to climb, you know, we used to throw things, you know? I mean, look at the the early Olympics, right? I mean, that's basically what the events wass. He wrestled someone. You ran faster than someone. You ran further than someone, and you threw some things. I and basically that's what human capacity is. So my goal before we actually trained them to be better athletes, is to make them better humans first, because if I can express their ability to be a better human, then they will be able to express their ability to be a better athlete. >> Joshua and with those movements, selections. If you have unique choice food people who don't follow up Instagram better weigh on your instagram handle at the end. But the selections of exercises you pick, it's not traditional a sense. Let's load a bar up. Let's do a hand claim you really take ownership of different shaped objects for that way, whether it be a yoke, whether it be a kettle bell, how do you come up with the most movements? Elections? What goes into that decision making? And for any individual out there, whether they are fast ball player who's seven one or a guy who's five eight, how do you decide which of those implements are best fitted for you? >> Well, everything that shaped the way I believe is one hundred ten percent based off my environment. And look, I played college basketball. Don't look at my stats. I was not that good, but I trained in or I've played with, and now for ten years I've trained that basketball athletic population, so you can imagine with me. Okay, I'm five foot ten. Very average, at best, especially with my links, man. Now imagine six foot six, but a seven foot two weeks man and all those things that I was good at, clean snatched jerk. You know, I was a purist in the beginning. I mean, of course I was right. I was just learning what strength iss How to be strong. Now, I'm trying to imagine further. Like, how do I have impact? How do I have quote unquote transfer? What? I'm trying to load these freaks. I mean, these guys are not normal human beings, right? They got seven foot two wings fans and short torso, so their levers are crazy. So now I'm asking them to do the same things that got me strong. Being at five. Ten, it just doesn't make much sense to me now, Not saying they don't have the capacity to do it mean help. Be honest with you. Some of my best weightlifters actually been seven foot tall, But that being said, if there's a way I can load them, that makes a lot more sense. That's easy to teach. I could do it often, and it's right in their comfort zone now, not comfort as in like we're not training hard, but like in their center of mass, where they can actually manipulate loads heavy loads at that with decent speeds. Then, yeah, I'm going to do that. So, for instance, we look at a bar bell, clean snatches all good. Why can't we do the same intent with a trap door? I mean, we could still pull. We could still triple extend and then we can still catch in that power position. The only thing that changes is the complexity of the movement. Now I'm not manipulating myself around a straight bar bell. It's in my centre of mass. And now I, Khun Express quote unquote force. Ah, lot more efficient, Effective. So now I can load it more loaded faster and do less teaching. Yeah, I do that. That makes a lot of things So that's really what it came from. And then to be honest with you, But how do you experience that light? How do you know a seven foot feels like? How do you know? And so you know, I've dabbled town some ways too. Open up my consciousness, if you will, to allow me to feel that ord, allow the imagination, my creativity to tryto understand what that could feel like. And then, of course, obviously feedback from my athletes. But I mean, why you always see, like the old school dues were just like, Oh, this is weak. This is squad. We we box what we what do we do? Whatever to get strong. But it's like, you know, it makes sense. If you're five foot six, it doesn't make much sense if your seven foot tall so you've got a truly find ways to experience it yourself. And now by the means that you do that probably not going to talk about on this podcast. But the way I did it work. >> Yeah, well, we'll refrain from diving that specific. I'd appreciate it on because to each his own one of the things you mentioned like talking about Hooper's I played basketball. I played your Batch three point shooter. Anyone's listening, too, By the way, when my feet are set, I'm not. I'm not an athlete, but I could shoot the shit out of basketball. I'LL be very blunt with you. I've >> been on the receiving end of that on one of our own game. You don't have to talk when you busted my ask way >> down to like. A lot of basketball players are bad movers, and what I mean by that it's their very good when you put a ball in their hands. That is something you talked about, too. But when you get them in a dance room right there, a lot different than football players and I mean by that is you don't see a bad end zone celebration, right? Want touchdown dances look really good, Odell Beckham being very soon and a lot of it's because those patterns are done without a ball in their hand. This is my opinion and they're very primal and natural with a minute and basketball everything's doing the ball in their hand and then when they start to move, especially because they're developing this, you starts. We're like a third rate. Now they have to only play basketball. And typically you don't play football and basketball, especially football. The high level, because you know you prepping for the basketball season itself. >> You get that deal in Scotland. Shit, bro, >> You have to play basketball for every waking hour the next fifteen years to get there. I'm kidding, but I'm thinking about my head is we're not exposed to those different movement. Parents were stuck in this ninety foot unless you're how light is forty six feet, something like that with court that really constrains how we move. And then you put someone in a waiting room where all the son of dealing with external loads and very unique movement patterns you get guys who just looked walking and I think you talked about this on different podcast, but I want to get into a little bit. Here was, I think so. That stems from our coaching of a young athletes and our physical education that we no longer does. Have we used to have back in the day and how that's really affecting athletes as they get older. >> I couldn't agree more. I mean, I get these quote unquote specialized athletes. And to be honest with you, I don't have athletes like I have guys who have a basketball in their hand. They got really long levers and they have some skill, right? They have some skill to be able to go from point A to point B and put on orange round ball into a cellar. That's that's so happen to be ten foot off the ground. That's what I have. I don't have a true athlete who can pick things up off the floor who could sit down on the floor and stand up, who can throw things who can sprint, who could jump onto things. I mean, some of the best vertical jumps that you see in basketball are not even close to what you would see in football and track and field. When you think this is a sport with the high flyers counter movement, jump hands on hips averages that I've seen on teams eighteen inches and everybody is like Oh, that's terrible But that's a true counter movement jump with long levers. So now if we add some momentum to that and add a seven foot two wingspan and then all of a sudden their elbows above the ramp. Right? So that's the difference we get. We see this a NRI or this false thought, or this false vision of what athleticism is because they're so long. But in reality. And then you put a bunch of cornerbacks out there that would be really special to see, because these are guys that are like five foot ten and the most explosive fast dude you've ever seen. There's don't have the skill to play basketball. So you know, with the way we are, physical education is set up now, obviously has been chopped in half, half, half so no more education. Physical education is what we get to. They only play one sport. They sit in chairs that they're not really made to be. They live in this wart western society where every chair they sit in Is that it? His ninety, which for them is more like this, right? And then they get up and down on these beds that their feet are hanging off of. So I don't know what sleep looks like for that. And if you saw my guys get on an airplane, a commercial airplane, you would be cringing the entire time because they're literally bundled up like this. And so not on ly. Are we trying to correct childhood development? I'm trying to correct what they deal with on a daily basis. Just walking the class. We watching my guys duck through door frames constantly. It is like some some of them are guards and they're ducking through frames. And you're just like I don't know how you've made it this far without knocking yourself out. So there's so many that it's really all about the environment and her. When I've trained my athletes, it's all about giving them the environment they have never had. So that's why we utilize the resting room. The gymnastics room. It's soft had so they know, so they don't necessarily fear the ground. They don't fear their interactions gravity. So now I'm giving them the ability to learn how to change levels. You know, little guys. So I don't see six foot ten guys wrestling, right? So I have an opportunity. Now they learn how to interact and change levels, and then even more so you put somebody with them. So now we're like pushing and pulling, just like you see in football. So now they know where they put their feet. So now we're not stepping on feet constantly looking. I mean, God, Hey, these guys are like because sixteen seventeen shoes like, of course, I'm going to step on each other's speed. But if they have that awareness in that sense of where other people are, then maybe they don't make that misstep. Or maybe they get their self out of harm's way and then even more so just learning how to fall. They learn how to fall properly from standing toe floor transitions. Then, when they jumped through the air at forty two inch words, whatever you see, that's make believe for you. Switch vertical right word, but and then they get hit in the air, and now they've got to figure out the most effective way. Not the break there. Nash. Well, most of the guys are going to do everything they can to stay on their feet. Well, that's where you want to get blown out, right? So now if I can give them a tumbling strategy, so now that they can interact with the floor a lot more smoother, athletic, well, then maybe they have a chance to not get hurt and be be back in the action, right? So it's performance enhancing as well as injury mitigation. >> I >> know that. I mean, I don't know where to begin. I have about nine comments off that. First. I love the idea of talking about how these guys are living in a world built for some one, five, ten. I'm six two and Kelsey, my girlfriend. But, hey, can you reach above and grab the top? Can apostle whatever I'm like? Yeah, Okay. But you look at a guy until you actually play hoops. I think, and really appreciate how big these dudes are. You play. It's a guy who's seven one. You look at him and go, Oh, my gosh, like that's at a different human. And then you know his shoe size next to you and you shake his hand and you get to the other side of his hand. You start to understand, like, who we dealing with here, right? You look at these, you know the body needs to heal when it goes into a stress or whatever, and we're putting these guys in positions that the body would not otherwise deem for recovery right now, like this call. Time out. Is that the funniest thing? MBA timeouts. Aside from LeBron James, that's got the nine foot chair right? These guys come out and these will stools that are too small for meaning, and >> so they're not really >> rusting. And you got a dude who's trying to recover his heart rate, but really the whole time, he's in a hip flexion. He's never been in the past, you know, thirty years, right? And if you're thinking about really taking care of an athlete, we spend so much time in the weight room and all this great stuff we can do. So Muchmore. If we had a liberty, too, I use we usually more like you, um, to you, then develop an environment that conducive to them. I know University. Kentucky did that. If you look at their dorm rooms, they had ESPN going on two years ago when they built at the new facility. For the basketball players, the sinks were higher, the magical tired, they were longer. And if you ever wash a guy who's seven foot dragging on the water fountain, I mean the amount of spinal flexion he has to go under. It's ridiculous. The guy's curling up in a C. And I mean, that's crazy to think about because the whole time on the way we were talking about how do we get these guys in a position that they can function successfully? And right now it's like optimally because obviously would have been something we did fifteen years ago to get in a position, right? But how do we get them to be successful? So I pose the question to your court. I'm gonna give you the keys to the castle. The kingdom. Okay, Philip, um, maybe not the whole environment. But there's three things you like to change the outside of the weight room that you had the crystal ball and you could go either back in time more just socially. Okay. I want to change his guys. You know, the size of his car. You know that the chair he sits and we're three things that you pick and dio >> number one. I would get them involved and dance or martial arts as their first sport. That would be probably number one so or gymnastics something. I don't care how tall you are like Who cares if you're not trying Win a gold medal at three, Right? Is just learning how to do those things right? Understanding your body number two. I would change how physical education is and in western society, um, and then number three. Let's give you something actual physical number three. If I could make what? I >> got some for you. Well, you're thinking, OK, I got you want to think your third for me? Basketball players eat horribly. You're so single, teacher. Yeah, basketball players, at least by team. And I will make this universal blanket statement. They just don't like to eat for some reason. Right? Who for? Three hours and drinking game and call it good. And I don't get it like I have a fat ass. My play. I gained weight in season. Really? Team he'll know what a food I take over which you're pulling their postgame meals. And that's when they remove the snack girl. Remember the snack role when, uh, >> you know, you have todo I had Taco Bell, bro. Like we won. We got talking about, you know? So I asked the level Appalachia, which we suck. >> I think I'm going to go a little. Can't you apologize? We're going to go play and that's a D three hoops. That's finest. We're rolling to a game. It's up north took a four hour drive and we stopped at the rude crib an hour and a half before taking a corner booth buffet of ribs. They got a bunch of island boys here. The rib crib you bring up platters were basically, you know, and capacity. And when they get like five points because our center had to pull out the throat at halftime. >> Yeah, it is. Did you ever have to drive the team ban? Because I have ways in the backseat in the bag who thought that was, like level once again, level athlete, that unreal. But I would say that the third thing Don't be wrong. Yes, food. But if there's a way, I mean, if there's a truly economical way across the board to just look, it got health, we could do that, don't care. But I can change your environment that could change your internal environment and will, And the number one is if I can just poof your gut and I can look at everything, then that will be the number one, because just a little moving world. But I don't know how you're absorbing it. I don't know what's going on. And then you wantto talk about these kids that you know, a phD or these kids that are super restless. Well, I think it starts with the gut, because if you're got health sucks, so does this. So that would be the third thing. >> No, that's crazy That way. May I have a little bit of experience is our company. I don't deal with the actual read now that the things I've learned and seeing the idea of taking that integrated approach. So hey, let's actually look at your stomach. Yes, you have to collect your poop three times a day, and I'm sorry. If you're going to do that, you can start to look at what you produced and way of excreting and whether or not you're absorbing what you need to absorb. And we start looking at injuries and no tendon, health and muscle tissue, everything as a holistic approach. What? We gotta look at the internal environment if any of our environments messed up inside and we're trying to impose a stressor on the body. But we have no idea what the internal systems like, and you have certain deficiencies or certain aspects that your lack and these were certain areas where it again people go, Oh, that's not scientific. There's no study. Well, unfortunately, if you understand complex systems and their dynamic interactions and not to get too detail, I'Ll explain it as simple as I can. But what happens is we have an outcome like a strange angle, and we say, Oh, and go weak angle get hurt, right? Well, kind of grooming. Or maybe it's ankle week. That's a risk factor. Athlete didn't sleep enough the past three nights. Risk factor Athlete had some sort of physical contact during the game. That critter there system risk factor athlete. Nutritionally, it wasn't recovering from previous workouts and games. Risk factors so happens of all these risk factors, and that's just a very there's no all the risk factors. A lot involved, all but these risk factors come about and then we have the probabilistic nature of something toe happen. So oh, how likely is it that something bad will go wrong and we see the last straw on the camel's back sprain an ankle and we go a week. But maybe it's didn't sleep enough Ankle week. All this other stuff and that ankle sprain. For people interested in complex systems, it's called an emergent pattern. So there's a common pattern that occurs when you have things go wrong. So if the money C l it's like, Oh, gluten medias is weak knee Val Agus. All right, you're a muscular control all these things that go into and nothing can pinpoint it. So if we're including these bomber, you know about mechanical factors and Eve Alvis, why aren't we including some internal factors like gut health Or, you know, the blood wood for the micro nutrient efficient season? Yes, I know I'm not versed enough to speak on micronutrient deficiencies and our interactions off, you know, health and whatnot. But something as simple as college in environments haven't adequate vitamin C for, you know, ten and healing instead of, you know, repair is obviously a factor. And so when we start looking the bottom, we gotta look at the big picture. It's not just how your knee bends. It's not how you shoot a jump shot. It's not how you land every time. >> Where are you? Our body is so much more resilient and durable than you. Give it credit for me. We've survived as a species. We're a very long time. You're very harsh conditions and you're going to tell me it's that one jump that got you one job. One job is the one that Oh, that needs a little dalliance. That's the one that got you. I mean, if you super slow mo A lot of these great expressions of physical capacity in sport it was you would be like, Oh, my God, they're neither this there that But in reality, like that's I'm close to the reason why they like break or don't Break. And Jordan shallow, brilliant dude, He gave me this metaphor. He was saying to Philip, a pond, Well, it's like this fungus that will Philip a pond and it doubles its size every day. So if it starts off it like, you know, point two, then the next day be point for and he asked me, he's like, Okay, if it's going to Philip in thirty days, Philip, the whole pond, What's the day? It's half full. Then I thought for a second it took me a lot longer than I should have thought about it. But he's like, but he an injection goes day twenty nine. I >> don't want an answer, by the way. >> Yeah, was like Day twenty nine I. That's why I look at the human body like that is literally the last thing and then pull. And so it's all these. We could have had all these interventions from day to today twenty eight or day twenty nine. Even the notes that one just last. Ah, strong. The camel's back to just there goes, you know, And that's what's great about being in the collegiate setting. And being a Stanford is we have a lot of safety nets for our safety, and that's if you will. So we try to have as many quote unquote KP eyes and objective measurements to give us an idea of what could possibly happen. But in reality, it's still the dynamic environment, so I don't understand. Like I can't account for school. I can't account for their sleep. I mean, we could through, like, grouper or or whatever, but it's not realistic and thine and are setting and in their gut hell's like way picking up poop. Three times a day. They were not drawn blood once. We're not doing these things. So unless we're doing that, then you're just trying to create most resilient, durable human beings so they can withstand the stressors some more than others. But hopefully have a successful season. >> No, that's like I hate to break it to people. We don't know what we're doing. We're doing our best. I think chase Wells with him. A Stanford. Get a great line, he said. We can't guarantee success. We can almost guarantee you're not guaranteed to fail. And what I mean by that is that you can't always KP eyes and really, we're looking at. If you jump nine inches, we're probably not going to be very good basketball unless you're seven. No, right. And so we're looking at the human system as a means of understanding what is going on really lagged behind in regards to your performance assessment and what might be hindering you in regards to launch into no tracking? Can I get a little bit of data? A lot? The way explain it is kind of like I don't ask my girlfriend Kelsey, how she's doing. Once a week, you know. I asked her every day and why I asked that every day is to realize, you know, all my clothes that I left out pissing her off. You know, I did. I forget that we're supposed to go on a date last night. You know, I might not have forgot a wallet last night. We went to dinner from now on, Accent, all supposed to buy. But that's a true story. WeII >> brought up. I mean, that's the most important thing is you gotta have feedback daily, right? And wait here. It's really simple. We take a controlled environment, do some things in it before they go into a dynamic environment, which is basketball games of basketball practice. So what we do is we call that microdot. It's our way of training. Every day, in some form or fashion, these individuals come into their work, their human capacity, a Siri's, if you will. Then after that, they go into their B series, which is complex. This is really what I know what's going on. I don't get me wrong when they walk in to get their weight, are joking or making eye contact and get that handshake. How firm is that handshake thes air, All the quantitative things that I'm trying to pick up as they're coming through the door. Then you watch them say We're hitting clean, complex and they're going through the motions and their consulate changing grip or or the pool isn't looking too good, and any sharp today will boom. That's my control Now. It's not the most objective feedback, but at least it's a constant. And so that's my way of having once against safety nets from a safety nets and then weekly or depending on how many games we have that we do, our force plate jumps. So once again, another safety net, and then we have our connects on day. So our GPS data that they do on the practice gym once again any one of those in isolation doesn't tell me much. But if I have a bunch of them, then I can at least paint a better picture from quantitative qualitative, and then I can go and knit. Pick what I think they're intervention may need to be, and so it's not going to be perfect, not even close, but as long as you have a constant and yours is beautiful. Like you said, Just something simple. You get daily. Hey, how are you doing? And you know how they express that. I'm doing good. I'm doing good. I'm cool. I'm great. Like, you know, what there was in flux is are like, you know what? They're how they're truly feeling. Just based off that one question alone. But once again, if you can set up your system or your program or whatever toe have safety nets for your safety nets, then I think you can You can catch a >> lot of those along the way. >> Yeah. No, that makes sense. It's how you provide context to a situation. And the more information that we can apply that we didn't classifier more to a system like jumping is, you know, your lower body strength and your verbal expressions, your most emotional state on DH, maybe even sweep or other things that go into that, the more we could understand what's actually happening to the person. So I was kind of really bad for a second. You said some of micro dose in and term overdose. You refer into training a little bit often. Yep. And Corey is well known for this and for those at home listening, I'm going to my best to explain it. Short weeks. I got a question off of it. If you know, explains it will stay here for another hour and a half because great to listen to. But I want Teo a little bit of a different direction off of athletics about it. Firstly, micro doses the idea that we're applying a moderate level toe, low level stressor consistently, and that adaptation occurs from the aggravation off those dresses over a period of time. So we're never going to Hi, we're never going to low. And the idea is that training in the weight room is only one small piece of your life. They even programmed High Day, and you don't sleep that night or you have emotional stressor for your case, your practice. Then all of a sudden, that high, big, magnified and starts spilling over the bar and becomes too much the idea of micro dozing, especially a non controlled external environment where it's called life, and we're trying to apply enough that you can handle. If someone's feeling good, then they can push a little bit that they themselves. Now My question for you, Cory, is I love an athletic sense. I also see it being very applicable to anyone out there general population and especially in terms of I got two things. Us too. In terms of one, someone learned a movement. You get a chance to do it often and daily and someone who wants to learn how to be in the weight room. And secondly, because there are, let's say we do it eight out of ten days. If you only miss one day, you're only missing ten percent of your entire workout, right? So instead of doing looking at this whole one workout one day, you look at like a ten day period. If you got eight days of pick from and you just can't do one, you only missed ten percent versus if you only had five days of pick one and you miss one, you missed twenty percent, right? And so now we have the ability to be more flexible in our environment. So how does that fit in like a general population? If it was my dad or my girlfriend trying to learn howto use some of this micro dose in the weight room. How do you plan? >> So one hundred percent with micro dozing. The reason why it came about was it was a solution to a problem. My problem is I don't have enough exposure to my guys. So how do I create more training frequency? And now we got rid of warm up something that was just kind of getting them ready for practice. That kind of don't care about it. The coach hated seen me do it. I personally hated doing it. So now it was a solution. What it turned into was motor learning. Now you want to learn how to train, will do it all the time. So that's where complex comes in. It's the value of orcs work, right? So basically, you take a bar bill and you do every movement that you would do in a weight room, in some sense, in one set, so you'd hinge You do a hip flexion. You do a press, do a pool. If I break down each one of those into isolation, it would look like already else Squad, Polish, military, press or row, those air all movements that you would do and if you separated each exercise in an isolation you would go more resistance on, just like you would see in general fitness, right? Like we're going to do three sets of ten on bench press or three sets a tent on back squad. Well, that's great. How about we just put it all in one and now we have more exposure. So now I'm learning how to do the movements, and then you can't tell me that doing one thing once a week is actually going to make you learn the movement. So now you learn those little small video sequences that you see with thirty year experience power lifters who truly understand, like, move from body, this foot stance, or this is how I start to hinge here within my squat X degree. And that's how they perfected is because they have so much exposure to it. So we're doing the same thing. We're just trying to create exposure at lower thresholds and and in doing it often now as faras general population, what's the number one concern? But I don't have enough time. Oh, really? You don't have a thirty minute today, twenty to thirty minutes a day to not kind ofwork. Now. Every day I call B s. I say You just don't want to train. So that's where my producing to me is beautiful in the general population is because it's living the way you start your day. It's lunch, or it's when you get off work. Perfect. You can pick any of those three slots twenty, thirty minutes. You can eat and shower and get backto work or before work. So you can't tell me that everybody doesn't have that situation. So now, creating training frequency, you're getting enough volume throughout the week. Now we have on and then most importantly, like you brought up if I just had to miss that one day, it's ten percent of my training like it's not well, only train twice a week, So fifty percent of my training is gone. So that's where I think it's beautiful. And that's where he could work from general population to the most elite athletes in the world and the reason why I say the most elite athletes in the world because I just so happen to train to of So I do it with all these populations

>> From the Amazon meeting Center in downtown Seattle, it's theCUBE, covering IMAGINE: A Better World, a global education conference sponsored by Amazon Web Services. >> Hey, welcome back everybody, Jeff Frick here with theCUBE. We're in Seattle, Washington at the first ever AWS IMAGINE education conference. I think they said there was 900 registrants. Teresa Carlson did the key note, just finished, really fantastic. 900 people, it's funny, she equated it to AWS Public Sector which, seven years ago, had 50 people. And this year it had, I think, 15,000 people. So I think we'll see a similar growth here. Really, application of all the things that AWS does for education specifically, and there's all the cost saving and shutting down data centers and all that kind of stuff. But much more importantly is educating the workforce and getting a new class of kids and educators involved in cloud computing 'cause, let's face it, it's the dominant paradigm going forward. I don't think there's much question about that. So we're excited to be here, talk to some of the great people, all educators. And our first guest is Dr. David Dimmett. He's the SVP and Chief Engagement Officer at Project Lead the Way. David, great to see you. >> Yeah, great, thanks for having us here. So we're excited to be here as part of this first ever education conference that AWS is hosting. So great event, lots of fantastic energy, excited to present later today on diversity inclusion and computer science education, a space where we're doing a lot of really great work. And want to share, and also here to learn. >> Great, so give us the overview on Project Lead the Way. >> Sure, so Project Lead the Way, we are a 20-year-old national nonprofit. We were started in upstate New York, and we're working today with over three million students in pre-K all the way through 12th grade in high school. And we work with them in computer science education, biomedical science engineering; our job is to inspire kids. We want them to have access to a lifetime of opportunity. We know these skills are essential. Students who have these skills have opportunities, have doors open to them. Students without these skills really, today, face a lifetime of consequences. >> Right, so how do you get the skills into the education? It's such a frustration, and typical K through 12 education, computer science has not been part of the standard curriculum. There's the math track, which you take trig and calc, and there's the science track with bio and physics and chem, but computer science really hasn't done a great job of weaseling its way into the standard curriculum that everybody takes. So how do you get this curriculum in? How do you get the education to the kids? >> Sure, and we're seeing some movement in this area, which is really exciting. AWS has been a big part of that. But what we look at, we for the last 20 years have really put an emphasis on testing students primarily in those subjects that are easy to test, so core academic content; we definitely need students to have knowledge in those areas. What's been missing for a long time is the connection to that core academic knowledge to real-world problem solving. And that's where kids come in to a Project Lead the Way classroom and get excited. So we're starting with them early as pre-K, working all the way through, and it's, like I said, all those career pathways. But they're applying what they're learning in their algebra class, they're applying what they're learning in their physics class. And we know the research indicates that students decide really early if they like or are good at math or science. And gone are the days where it's okay to just brush off those content areas. We need to rethink the way kids get excited and inspired at an early age. >> So do you pull them, then, into a separate classroom experience outside of their everyday at school? How does the mechanics actually work? >> Right, so we're working with about 14,000 programs all across the country this year, all 50 states. And there are a variety of implementation models. In the early grades, in pre-K through five, a lot of times that's integrating into the homeroom or into the primary classroom. So we're training teachers all across buildings in a lot of elementary schools all across the country. When you work your way into middle school and high school, students rotate through, sometimes as an elective. But increasingly we're seeing schools require those courses because it exposes students to some of the careers that they may not understand and opportunities that they don't know exist. >> Right, it's so funny, right? 'Cause technology, over and over and over again, back to the Luddites, right, destroys certain industries, creates new industries, right? You don't want to be the guy making buggy whips anymore; it's probably not a great industry. But there didn't use to be web developers. There didn't use to be integration specialists. There didn't use to be SEO people. So there's a whole new class of applications that continue to be created with each of these huge information technology transformations. >> Yeah, it really is, and we have an increasing gap, really, unfortunately, in equality of opportunity. Increasingly today, we see students who have access to these opportunities in their pre-K, 12 experiences. Those students have a chance to go on to all kinds of careers, whether it's AWS, Verizon, Toyota, Lockheed Martin, you can go down the list. Companies are recruiting students that have these skills. Students who happen to not get exposed to these opportunities early really struggle to catch up later in life or later in their education system. So we really look at a variety of on-ramps for students. We work in the school day primarily. We also support a lot of work outside the school day. One of the key things that we do is we help teachers gain confidence in these areas. We were talking earlier about the skills gap that exists for adults in getting into some of these careers; same thing exists for teachers. We have teacher shortages all across the country. And what we're really looking to do is inspire not just students but the teachers who teach them. We'll train over 10,000 teachers this summer and get them ready to go in and inspire and prepare their students. >> It's really interesting, especially you get smarter kids once they're in high school and college. And they're looking for that connection. "Come on, Dad, what am I taking in chemistry? "I'm not going to be a doctor, "I'm not going to be a chemical scientist. "How does it relate to what I'm going to do "or philosophy or whatever." But these types of skills are really, really cogent. And not to mention that, but the kids are interacting with these types of applications all the day. So the connection between what I'm doing at school versus what I might be doing when I get out of school has got to be so much tighter than when you take a philosophy class or an American lit class. >> Yeah, we're rolling out, and with AWS's support. AWS has provided us with subject matter experts with a lot of the technological tools to help us deliver a brand new cybersecurity course this year all across the country. We're really excited about that. And you look at what's happening in terms of the cybersecurity threats that our country faces, that other countries face. It's both an economic issue but also a national security issue. And we just don't have the skilled workforce to be effective in those areas. We're inspiring kids, through AWS's help, to get excited and not just get excited but to have the skills to go out and be successful. So what I love, too, is a lot of the advances that we anticipate in healthcare are not going to be necessarily biomedical advancements. They will be, but they'll also be technological advances. We've worked with Cerner to train teachers in our computer science courses; they're one of the world's largest medical records companies. How do we provide data and information, big data, to medical providers, so that they can provide the best targeted treatment to their students? And so one of the things that we thrive on in our work is the connection to business and industry. And we want to provide that talent, that workforce, of the future. >> Right, so let me just drill in on that a little bit in terms of the role. You said you've been around for 20 years, your foundation. The role of private companies in general, and AWS specifically in helping on some of these really big problems, these really big efforts. 'Cause we know the public school systems never have enough money, getting pulled in a ton of different directions. So what kind of impact does somebody like AWS coming in help you complete your mission? >> Right, so AWS, AWS Educate have provided us with a variety of supports, and they're really helping us do a lot of really great work for students all across the country. A couple of specific examples. I mentioned subject matter experts. Having AWS come in and help us not just with this cybersecurity course but also how do we infuse into our other computer science coursework cloud career skilled development? And so we're doing that now with AWS's support. And Ken Eisner and his team have really helped us for the last couple of years; it's a great partnership. Additionally, providing us with the infrastructure, the applications, the AWS ecosystem of supports are helping us do a variety of things to secure student data, to also drive down cost to schools. All of those things together provide a great opportunity to the students that we're serving, three million plus, all across the country. >> Three million plus, that's great. So there's a real specific program that I want to give you a chance to talk about, the Kentucky Cloud Careers Pathways. That's kind of an example; give us a little bit more color. And we talked before, I got a lot of family in Kentucky, so it touched me a little bit. And, of course, Teresa's from there as well. >> So Kentucky is one of our strongest states for Project Lead the Way and has been for a lot of years. The governor and his cabinet have really done a lot of work to advance career opportunities, workforce development, economic development. And what we have and what we announced last year in Kentucky is the Cloud Career Pathway program. And that is a partnership between AWS; Project Lead the Way; the community college system in Kentucky; the governor's economic, labor, development, education departments; all of us working together to get kids exposed to cloud careers early in their education experience. And we've started training teachers to that end this year. We think it's going to be a real model for the country. >> David, I think you said it in every one of your answers, adding the "and the teachers, too." Such an important part, right? Such a key enabler to make this thing actually go. It can't just be about the kids. >> Absolutely, teachers are the bedrock of what we do in education. I say that as a lifelong educator. We've got a lot of work to do, and teachers are under attack in some places. And you've seen this last year, the work that's happened to put teachers in a position to be successful. And we've got a lot of work to do there. But our job, we want to go out and inspire the country's best teachers to go in and work in some of the most difficult work situations that exist in our country and inspire kids and with limited resources. And teachers are pouring their hearts out to do that. We think we've got a great opportunity, but we trained 10,000 plus teachers this year alone. And we see those teachers gain confidence. They go back to their classrooms, they're excited, and they know more about the opportunities that exist for their students. And I say that as a lifelong educator. In fact, my wife and I met 20 years ago as first-year teachers, so that, to me, is really core to what we do. >> Well, I see the passion in your eyes. So thank you for following up on this mission and doing good work and spending a few minutes with us on theCUBE. >> Yeah, that's great, thanks Jeff. >> All right, he's David, I'm Jeff. You're watching theCUBE from AWS IMAGINE Educate. Thanks for watching. (electronic music)

(techno music) >> Live, from Washington DC, it's theCUBE. Covering AWS Public Sector Summit, 2018. Brought to you by Amazon Web Services and its ecosystem partners. >> Okay, welcome back, everyone, this is the live CUBE coverage here in Washington DC for AWS Public Sector Summit 2018. This is the, kind of like the reinvent for Public Sector. I'm John Furrier, f my co-host Stu Miniman, our next guest is Hardik Bhatt, Smart Cities Vertical Lead for Amazon Web Services, been a former CIO, knows the state and local governments cold. This is a very key area around Internet of Things and technology with cloud, because smart cities have to do not only technology roll outs for some of the new capabilities, but all manage some of the societal changes, like self-driving cars and a variety of other things, from instrumenting sensors and traffic lights and video cam ... I mean, this is a little, just a little ... Welcome to theCUBE. >> Thank you very much, John. Good to see you, Stu, good morning. Looking forward to having a great conversation. >> So, smart cities obviously is really hot, but we love it, because it brings life, and work, life, and play together, because we all live in towns, and we live in cities, and the cities provide services to the residents, transportation, sidewalks, and things that we take for granted in the analog world. Now there's a whole digital set of services coming big time. So, are they prepared? (laughs) It used to be buy a mainframe, then move it to a minicomputer, get a Local Area Network, buy some PCs, buy some network tablets, now the cloud's here. What's your assessment of the smart cities landscape for state and local governments? Because it really is something that's on the front burner, in terms of figuring it out. What's the architecture? Lot of questions. What's your, what's the state of the union, if you will, for-- >> You know it has been, like, how the governments have been for many years, right? Governments exist so that they can provide better services, they can provide better quality of life, they can create an environment where businesses thrive, jobs can be created, education can be given, and you can build a workforce and talent, et cetera. And smart cities is just, I'd say, a trend where, you know, you're using multitudes of technology to kind of help the government get its mission accomplished in a smoother, faster, better, cheaper manner. And a lot of times, I've seen, because how smart cities movement started a decade ago, we kind of compare smart cities with the Internet of Things or the sensors, but smart cities is much more than just the IoT, or the Internet of Things, I mean if you're talking about creating a new stream of data that is real-time, whether coming in from sensors, coming from video, you already as a government, I used to be a CIO for the City of Chicago, we used petabytes of data that was already sitting in my data center, and then there's also this whole third-party data. So smart cities is a lot about how do you as a city are aggregating this different sources of data and then making some action from it, so that ultimately, going back to the city's priorities, you are giving better public safety, or you're providing better public health, or you're providing better education or you're providing, better providing government services. So that's what we are seeing. Our customers are, when we say smart cities, they jump right into, "What problems are you solving?" And that, to me, is the core for Amazon, core for Amazon Web Services. We want to know our customers' problems and then work backwards to solve them. >> What are some of the problems right now that are low-hanging fruit? Because obviously it's an evolution. You set the architecture up, but ultimately governments would love to have some revenue coming in from businesses. You mention that. Education is certainly there. What are some of the challenges there? Is it pre-existing stuff, or is it new opportunities? What are some of the trends you're seeing for use cases? It is actually both pre-existing stuff that they are trying to solve, as well the new stuff, the new opportunities that are getting created, because the technology is much different than what it used to be 10 years ago. The cloud, especially, is creating a lot more new opportunities, because of the nimbleness it brings, the agility it brings. So, in transportation side, we are seeing on one hand, multiple departments, multi-jurisdictional, so state transportation department, as well as a local transportation department, working together to create kind of a virtual information sharing environment or a virtual command center, so that they can detect an accident, a traffic incident, much quicker and respond to that, because now they can aggregate this data. And they're also now adding to that some public safety information. So whether it is a police department, fire department, EMS, so that they can address that incident quickly and then not only clear the traffic and clear the congestion, or reduce the congestion time, but they can also address the, any public safety issue that may have arisen out of that incident that has happened. So, the Department of Transportation, the USDOT, through the Federal Highway Administration, has been giving out $60 million worth of grants to six to ten recipients. The grant, this year's grant period, just closed on Monday, and we worked with multiple customers who are looking to kind of respond to that. So on one hand, it is that. So this is an age-old problem, but new technology can help you solve that. On the other hand, another customer that we worked with is looking for on-demand micro-transit solutions. As you can see, all the ride-sharing applications are making easier to jump in a car and move to one place to the other. It is causing a dip in transit ridership. So the public transit agents, they are looking for solutions to that. So they are looking at, "Can we build an on-demand microtransit "so you can pool your friends and jump into a transit van, as opposed to a private car?" And then you can go from point A to point B in a much more affordable manner. So they are looking at that. On the public health side, you know, we have the DC Benefits Exchange, Health Benefits Exchange, is on AWS, and they have seen significant savings. They have seen $1.8 million of annual savings because they are using cloud and cloud services. On the other hand, you have State of Georgia, which is using Alexa. So they have built Alexa Skills where you can ask, as a resident of State of Georgia getting SNAP benefit, the Supplemental Nutritional Assistance, the food-stamp program, you can say, "Alexa, what's my SNAP balance?" So based on the answer then, based on the balance you know, you can plan your, you know, where you're going to use that money. So we are seeing large volume of data now coming on the cloud where the governments are looking to move kind of the needle. We are also seeing this nimble, quick solutions that can start going out. And we are seeing a lot of driver behind the innovation is our City on a Cloud challenge. So we have seen the City on a Cloud winners, since last so many years, are kind of the ones who are driving innovation and they're also driving a lot of collaboration. So I can, there are three trends that I can jump into as we kind of talk more. >> Yeah, it's interesting. I think back a decade ago, when you talk smarter cities, you'd see this video, and it would look like something out of a science fiction. It's like, you know, "Oh, the flying taxi'll come, "and it will get you and everything." But what I, the stories I have when I talk to CIOs in cities and the like, it's usually more about, it's about data. It's about the underlying data, and maybe it's a mobile app, maybe it's a thing like Alexa Skills. So help us understand a little bit, what does the average citizen, what do they see? How does their, you know, greater transparency and sharing of information and collaboration between what the agencies are doing and, you know, the citizenship. >> I think that's a great question. I mean that is what, as a former CIO, I always had to balance between, what I do creates internal government efficiency, but the citizens don't feel it, don't see it, they don't, it doesn't get in the news media. And on the other hand, I also have to, to my governor, to my mayor, to the agency directors, have to give them visible wins. So, I'll give you an example, so City of Chicago, back in the day, in 2010 when I was the CIO. We did a contract with our AWS, currently AWS Partner Socrata, to open up the data. So that was kind of the beginning of the Open Data Movement, and eventually, I left the city, I went work for Cisco, and the city government continued to kind of build on top of Socrata. And they build what they called the Windy Grid, which is basically bringing all of their various sets of data, so 311, code violations, inspections, crime, traffic, and they built an internal data analytics engine. So now, agencies can use that data. And now, what they did, two years ago, they were one of the City on a Cloud Challenge winners, and they, Uturn Data Solutions is our partner that was the winner of that, and they built Chicago Open Grid. So they basically opened that up on a map-based platform. So now as a citizen of Chicago, I can go on Chicago Open Grid, and I can see which restaurants in, surrounding my area, have failed inspections. Have they failed inspection because of a mice infestation, or was it something very minor, so I can decide whether I want to go to that restaurant or not. I can also look at the crime patterns in my area, I can look at the property values, I can look at the education kind of quality in the schools in my neighborhood. So, we have seen kind of now, and it's all on AWS cloud. >> This open data is interesting to me. Let's take that to another level. That's just the user side of it, there's also a delivery value. I saw use cases in Chicago around Health and Human Services, around being more efficient with either vaccines, or delivery of services based on demographics and other profile, all because of open data. So this brings up a question that comes up a lot, and we're seeing here is a trend, is Amazon Web Services public sector has been really good. Teresa Carlson has done an amazing job leaning on partners to be successful. Meaning it's a collaboration. What's that like in the state and local government? What's the partner landscape look like? What are the benefits for partners to work with AWS? Because it seems obvious to me, it might not be obvious to them. But if they have an innovative idea, whether it's to innovate something on the edge of the network in their business, they can do it, and they can scale with Amazon. What is the real benefits of partnering with AWS? >> You hit a key point on there. Teresa has done a fantastic job in customer management as well as building our partners. Similarly, we have a great leader within the state and local government, Kim Majerus. She leads all of our state and local government business. And her focus is exactly like Teresa: How can we help the customers, and also how can we enable partners to help customers? So I'll give you and example. The City of Louisville in Kentucky. They were a City on a Cloud winner, and they, basically what they're building with a partner of ours, Slingshot, they (laughs) get, I was, I used to be in Traffic Management Authority, back in my days, and we used to do traffic studies. So, basically, they send an intern out with clicker or have those black strips to count the number of cars, and based on that, we can plan whether we want to increase the signal timing on this approach, or we can plan the detours if we close the street, what's the, and it's all manual. It used to take, cost us anywhere from 10 to 50 thousand dollars, every traffic study. So what Louisville did with Slingshot is they got the free Waze data that they get gives all of the raw traffic information. Slingshot brought that on to a AWS platform, and now they are building a traffic analysis tool, which now you can do like a snap of a finger, get the analysis and you can manage the signal-approach timing. The cool thing about this is, they're building it in open source code. And the code's available on GitHub, and I was talking to the Chief Data Officer of Louisville, who's actually going to be speaking at this event later today. 12 other cities have already looked into this. They've started to download the code, and they are starting to use it. So, collaboration through partners also enables collaboration amongst all of our customers. >> And also, I'd just point out, that's a great example, love that, and that's new for me to hear that. But also, to me the observation is, it's new data. So being able to be responsive, to look at that opportunity. Now, it used to be in the old world, and I'm sure you can attest to this, being a CIO back in the day, is okay, just say there's new data available, you have to provision IT. >> Oh my God, yeah. >> I mean, what, old way, new way. I mean, compare and contrast the time it would take to do that with what you can do today. >> It's a big, huge difference. I'll tell you as the CIO for the State of Illinois, when I started in early 2015, in my first performance management session, I asked my Infrastructure Management Team to give me the average days it takes to build a server, 49 days. I mean, you're talking seven weeks or maybe, if you talk, 10 business weeks. It's not acceptable. I mean the way the pace of innovation is going, with AWS on cloud, you are talking about minutes you can spin up that server. And that's what we are seeing, a significant change, and that's why Louisville-- >> And I think you got to think it's even worse when you think about integration, personnel requirements, the meetings that have to get involved. It's a nightmare. Okay, so obviously cloud, we know cloud, we love cloud, we use cloud ourselves. So I got to ask you this could, City in a Cloud program, which we've covered in the past, so last year had some really powerful winners. This has been a very successful program. You're involved in it, you have unique insights, you've been on both sides of the table. How is that going? How is it inspiring other cities? What's the camaraderie like? What's the peer review? Is there a peer, is there a network building? How is that spreading? >> That is actually enabling collaboration in a significant manner. Because, you know, you are openly telling what you want to do, and then you are doing that. Everybody is watching you. Like Louisville is a perfect example where they built this, they're building this, and they're going to share it through open source code to all the cities. 12 is just the beginning. I'd not be surprised if there are 120 cities that are going to do this. Because who doesn't want to save two hundred, three hundred thousand dollars a year? And also lots of time to do the traffic studies. Same thing we have seen with, as Virginia Beach is building their Early Flood Warning System. There are other cities who are looking into, like how do we, New Orleans? And others are looking at, "How do we take what Virginia Beach has built? "And how can we use it for us?" And yesterday, they announced this year of the winners that includes Las Vegas, that includes LA Information Technology Department, that includes the City of Philadelphia, and I've been in conversations with all of the CIOs, CDOs, and the leaders of these agencies. The other thing, John, I have seen is, there's a phenomenal leadership that's out there right now in the cities and states that they want to innovate, they want to collaborate, and they want to kind of make a big difference. >> Hold on, hold on, so one more question, this is a really good question, want to get, follow-up on that. But this, what you're talking about to me signifies really the big trend going on right now in this modern era. You've got large cloud scale. You have open source, open sharing, and collaboration happening. This is the new network effect. This is the flywheel. This is uniquely different. This kind of categorizes cloud. And this wasn't available when IT systems and processes were built, 20, 30 years ago. I mean, this is the big shift, you, I mean do you agree? >> Absolutely, this is the big shift, the availability of the cloud, the ubiquitous nature of mobile platform that people have. The newer way of, like, the natural language processing, use of Alexa is becoming so prevalent in government. I mean, in City of Chicago, 50% of the 311 calls that we used to get in 2010, 3 1/2 million of those were informational in nature. If I could offload that on to my Alexa Skills, I can free up my workforce, the 311 call-takers, to do much better, higher-level, you know, call-taking, as opposed to this. So you're absolutely right. I've seen the trends we are seeing is, there is lots of collaboration going on between the governments and partners. I'm also seeing the governments are going at modernization from different points based on their pain points. And I'm also seeing a definite acceleration in modernization. Government, because the technology, AWS, the cloud, our services that we are seeing. And the pace of innovation that AWS brings is also enabling the acceleration in governments. >> Yeah, to help put a point on the, on the conversation here, there's been for years discussion about, "Well, what is the changing role of the CIO?" You've sat on that side of the table, you know, worked with lots of COs, what do you see is the role of the future for the CIO when, specifically when you talk state and local governments? >> I would say CIO is the kind of has to be an enabler of government services. Because if I go back to my city days and working with a mayor, or my state days, working with a governor, at the end of the day, the governor or the mayor is looking at creating better quality of life, providing better health, better education, better safety, et cetera. And CIO is kind of the key partner in that metrics to enable what the governor, what the mayor, the agency directors want to do. And because now data enables the CIO to kind of quickly give solutions, or AI services, Alexa and Polly and Rekog ... All of these things give you, give me as a CIO, ability to provide quick wins to the mayor, to the governor, and also very visible wins. We are seeing that, you know, CIO is becoming a uniquely positioned individual and leader to kind of enable the government. >> All right, thanks so much for comin' on theCUBE. Love the insight, love to follow up. You bring a great perspective and great insight and Amazon's lucky to have you on the team. Lot of great stuff goin' on in the cities and local governments. It's a good opportunity for you guys. Thanks for coming on, appreciate it. >> Thank you very much. >> It's theCUBE live here in Washington DC for AWS, Amazon Web Services Public Sector Summit, I'm John Furrier, Stu Miniman, again second year of live coverage. It's a packed house, a lot of great cloud action. Again, the game has changed. It's a whole new world, cloud scale, open source, collaboration, mobile, all this new data's here. This is the opportunity, this is what theCUBE's doing. We're doin' our part, sharing the data with you. Stay with us, more coverage from day two, here in Washington, after this short break. (techno music)

>> Live from San Jose in the heart of Silicon Valley, it's theCUBE, covering DataWorks Summit 2018, brought to you by Hortonworks. >> Welcome back to theCUBE's live coverage of DataWorks here in San Jose, California. I'm your host, Rebecca Knight, along with my co-host, James Kobielus. We have with us Eric Herzog. He is the Chief Marketing Officer and VP of Global Channels at the IBM Storage Division. Thanks so much for coming on theCUBE once again, Eric. >> Well, thank you. We always love to be on theCUBE and talk to all of theCUBE analysts about various topics, data, storage, multi-cloud, all the works. >> And before the cameras were rolling, we were talking about how you might be the biggest CUBE alum in the sense of you've been on theCUBE more times than anyone else. >> I know I'm in the top five, but I may be number one, I have to check with Dave Vellante and crew and see. >> Exactly and often wearing a Hawaiian shirt. >> Yes. >> Yes, I was on theCUBE last week from CISCO Live. I was not wearing a Hawaiian shirt. And Stu and John gave me a hard time about why was not I wearing a Hawaiian shirt? So I make sure I showed up to the DataWorks show- >> Stu, Dave, get a load. >> You're in California with a tan, so it fits, it's good. >> So we were talking a little bit before the cameras were rolling and you were saying one of the points that is sort of central to your professional life is it's not just about the storage, it's about the data. So riff on that a little bit. >> Sure, so at IBM we believe everything is data driven and in fact we would argue that data is more valuable than oil or diamonds or plutonium or platinum or silver to anything else. It is the most viable asset, whether you be a global Fortune 500, whether you be a midsize company or whether you be Herzogs Bar and Grill. So data is what you use with your suppliers, with your customers, with your partners. Literally everything around your company is really built around the data so most effectively managing it and make sure, A, it's always performant because when it's not performant they go away. As you probably know, Google did a survey that one, two, after one, two they go off your website, they click somewhere else so has to be performant. Obviously in today's 365, 7 by 24 company it needs to always be resilient and reliable and it always needs to be available, otherwise if the storage goes down, guess what? Your AI doesn't work, your Cloud doesn't work, whatever workload, if you're more traditional, your Oracle, Sequel, you know SAP, none of those workloads work if you don't have a solid storage foundation underneath your data driven enterprise. >> So with that ethos in mind, talk about the products that you are launching, that you newly launched and also your product roadmap going forward. >> Sure, so for us everything really is that storage is this critical foundation for the data driven, multi Cloud enterprise. And as I've said before on theCube, all of our storage software's now Cloud-ified so if you need to automatically tier out to IBM Cloud or Amazon or Azure, we automatically will move the data placement around from one premise out to a Cloud and for certain customers who may be multi Cloud, in this case using multiple private Cloud providers, which happens due to either legal reasons or procurement reasons or geographic reasons for the larger enterprises, we can handle that as well. That's part of it, second thing is we just announced earlier today an artificial intelligence, an AI reference architecture, that incorporates a full stack from the very bottom, both servers and storage, all the way up through the top layer, then the applications on top, so we just launched that today. >> AI for storage management or AI for run a range of applications? >> Regular AI, artificial intelligence from an application perspective. So we announced that reference architecture today. Basically think of the reference architecture as your recipe, your blueprint, of how to put it all together. Some of the components are from IBM, such as Spectrum Scale and Spectrum Computing from my division, our servers from our Cloud division. Some are opensource, Tensor, Caffe, things like that. Basic gives you what the stack needs to be, and what you need to do in various AI workloads, applications and use cases. >> I believe you have distributed deep learning as an IBM capability, that's part of that stack, is that correct? >> That is part of the stack, it's like in the middle of the stack. >> Is it, correct me if I'm wrong, that's containerization of AI functionality? >> Right. >> For distributed deployment? >> Right. >> In an orchestrated Kubernetes fabric, is that correct? >> Yeah, so when you look at it from an IBM perspective, while we clearly support the virtualized world, the VM wares, the hyper V's, the KVMs and the OVMs, and we will continue to do that, we're also heavily invested in the container environment. For example, one of our other divisions, the IBM Cloud Private division, has announced a solution that's all about private Clouds, you can either get it hosted at IBM or literally buy our stack- >> Rob Thomas in fact demoed it this morning, here. >> Right, exactly. And you could create- >> At DataWorks. >> Private Cloud initiative, and there are companies that, whether it be for security purposes or whether it be for legal reasons or other reasons, don't want to use public Cloud providers, be it IBM, Amazon, Azure, Google or any of the big public Cloud providers, they want a private Cloud and IBM either A, will host it or B, with IBM Cloud Private. All of that infrastructure is built around a containerized environment. We support the older world, the virtualized world, and the newer world, the container world. In fact, our storage, allows you to have persistent storage in a container's environment, Dockers and Kubernetes, and that works on all of our block storage and that's a freebie, by the way, we don't charge for that. >> You've worked in the data storage industry for a long time, can you talk a little bit about how the marketing message has changed and evolved since you first began in this industry and in terms of what customers want to hear and what assuages their fears? >> Sure, so nobody cares about speeds and feeds, okay? Except me, because I've been doing storage for 32 years. >> And him, he might care. (laughs) >> But when you look at it, the decision makers today, the CIOs, in 32 years, including seven start ups, IBM and EMC, I've never, ever, ever, met a CIO who used to be a storage guy, ever. So, they don't care. They know that they need storage and the other infrastructure, including servers and networking, but think about it, when the app is slow, who do they blame? Usually they blame the storage guy first, secondarily they blame the server guy, thirdly they blame the networking guy. They never look to see that their code stack is improperly done. Really what you have to do is talk applications, workloads and use cases which is what the AI reference architecture does. What my team does in non AI workloads, it's all about, again, data driven, multi Cloud infrastructure. They want to know how you're going to make a new workload fast AI. How you're going to make their Cloud resilient whether it's private or hybrid. In fact, IBM storage sells a ton of technology to large public Cloud providers that do not have the initials IBM. We sell gobs of storage to other public Cloud providers, both big, medium and small. It's really all about the applications, workloads and use cases, and that's what gets people excited. You basically need a position, just like I talked about with the AI foundations, storage is the critical foundation. We happen to be, knocking on wood, let's hope there's no earthquake, since I've lived here my whole life, and I've been in earthquakes, I was in the '89 quake. Literally fell down a bunch of stairs in the '89 quake. If there's an earthquake as great as IBM storage is, or any other storage or servers, it's crushed. Boom, you're done! Okay, well you need to make sure that your infrastructure, really your data, is covered by the right infrastructure and that it's always resilient, it's always performing and is always available. And that's what IBM drives is about, that's the message, not about how many gigabytes per second in bandwidth or what's the- Not that we can't spew that stuff when we talk to the right person but in general people don't care about it. What they want to know is, "Oh that SAP workload took 30 hours and now it takes 30 minutes?" We have public references that will say that. "Oh, you mean I can use eight to ten times less storage for the same money?" Yes, and we have public references that will say that. So that's what it's really about, so storage is really more from really a speeds and feeds Nuremberger sort of thing, and now all the Nurembergers are doing AI and Caffe and TensorFlow and all of that, they're all hackers, right? It used to be storage guys who used to do that and to a lesser extent server guys and definitely networking guys. That's all shifted to the software side so you got to talk the languages. What can we do with Hortonworks? By the way we were named in Q1 of 2018 as the Hortonworks infrastructure partner of the year. We work with Hortonworks all time, at all levels, whether it be with our channel partners, whether it be with our direct end users, however the customer wants to consume, we work with Hortonworks very closely and other providers as well in that big data analytics and the AI infrastructure world, that's what we do. >> So the containerizations side of the IBM AI stack, then the containerization capabilities in Hortonworks Data Platform 3.0, can you give us a sense for how you plan to, or do you plan at IBM, to work with Hortonworks to bring these capabilities, your reference architecture, into more, or bring their environment for that matter, into more of an alignment with what you're offering? >> So we haven't an exact decision of how we're going to do it, but we interface with Hortonworks on a continual basis. >> Yeah. >> We're working to figure out what's the right solution, whether that be an integrated solution of some type, whether that be something that we do through an adjunct to our reference architecture or some reference architecture that they have but we always make sure, again, we are their partner of the year for infrastructure named in Q1, and that's because we work very tightly with Hortonworks and make sure that what we do ties out with them, hits the right applications, workloads and use cases, the big data world, the analytic world and the AI world so that we're tied off, you know, together to make sure that we deliver the right solutions to the end user because that's what matters most is what gets the end users fired up, not what gets Hortonworks or IBM fired up, it's what gets the end users fired up. >> When you're trying to get into the head space of the CIO, and get your message out there, I mean what is it, what would you say is it that keeps them up at night? What are their biggest pain points and then how do you come in and solve them? >> I'd say the number one pain point for most CIOs is application delivery, okay? Whether that be to the line of business, put it this way, let's take an old workload, okay? Let's take that SAP example, that CIO was under pressure because they were trying, in this case it was a giant retailer who was shipping stuff every night, all over the world. Well guess what? The green undershirts in the wrong size, went to Paducah, Kentucky and then one of the other stores, in Singapore, which needed those green shirts, they ended up with shoes and the reason is, they couldn't run that SAP workload in a couple hours. Now they run it in 30 minutes. It used to take 30 hours. So since they're shipping every night, you're basically missing a cycle, essentially and you're not delivering the right thing from a retail infrastructure perspective to each of their nodes, if you will, to their retail locations. So they care about what do they need to do to deliver to the business the right applications, workloads and use cases on the right timeframe and they can't go down, people get fired for that at the CIO level, right? If something goes down, the CIO is gone and obviously for certain companies that are more in the modern mode, okay? People who are delivering stuff and their primary transactional vehicle is the internet, not retail, not through partners, not through people like IBM, but their primary transactional vehicle is a website, if that website is not resilient, performant and always reliable, then guess what? They are shut down and they're not selling anything to anybody, which is to true if you're Nordstroms, right? Someone can always go into the store and buy something, right, and figure it out? Almost all old retailers have not only a connection to core but they literally have a server and storage in every retail location so if the core goes down, guess what, they can transact. In the era of the internet, you don't do that anymore. Right? If you're shipping only on the internet, you're shipping on the internet so whether it be a new workload, okay? An old workload if you're doing the whole IOT thing. For example, I know a company that I was working with, it's a giant, private mining company. They have those giant, like three story dump trucks you see on the Discovery Channel. Those things cost them a hundred million dollars, so they have five thousand sensors on every dump truck. It's a fricking dump truck but guess what, they got five thousand sensors on there so they can monitor and make sure they take proactive action because if that goes down, whether these be diamond mines or these be Uranium mines or whatever it is, it costs them hundreds of millions of dollars to have a thing go down. That's, if you will, trying to take it out of the traditional, high tech area, which we all talk about, whether it be Apple or Google, or IBM, okay great, now let's put it to some other workload. In this case, this is the use of IOT, in a big data analytics environment with AI based infrastructure, to manage dump trucks. >> I think you're talking about what's called, "digital twins" in a networked environment for materials management, supply chain management and so forth. Are those requirements growing in terms of industrial IOT requirements of that sort and how does that effect the amount of data that needs to be stored, the sophistication of the AI and the stream competing that needs to be provisioned? Can you talk to that? >> The amount of data is growing exponentially. It's growing at yottabytes and zettabytes a year now, not at just exabytes anymore. In fact, everybody on their iPhone or their laptop, I've got a 10GB phone, okay? My laptop, which happens to be a Power Book, is two terabytes of flash, on a laptop. So just imagine how much data's being generated if you're doing in a giant factory, whether you be in the warehouse space, whether you be in healthcare, whether you be in government, whether you be in the financial sector and now all those additional regulations, such as GDPR in Europe and other regulations across the world about what you have to do with your healthcare data, what you have to do with your finance data, the amount of data being stored. And then on top of it, quite honestly, from an AI big data analytics perspective, the more data you have, the more valuable it is, the more you can mine it or the more oil, it's as if the world was just oil, forget the pollution side, let's assume oil didn't cause pollution. Okay, great, then guess what? You would be using oil everywhere and you wouldn't be using solar, you'd be using oil and by the way you need more and more and more, and how much oil you have and how you control that would be the power. That right now is the power of data and if anything it's getting more and more and more. So again, you always have to be able to be resilient with that data, you always have to interact with things, like we do with Hortonworks or other application workloads. Our AI reference architecture is another perfect example of the things you need to do to provide, you know, at the base infrastructure, the right foundation. If you have the wrong foundation to a building, it falls over. Whether it be your house, a hotel, this convention center, if it had the wrong foundation, it falls over. >> Actually to follow the oil analogy just a little bit further, the more of this data you have, the more PII there is and it usually, and the more the workloads need to scale up, especially for things like data masking. >> Right. >> When you have compliance requirements like GDPR, so you want to process the data but you need to mask it first, therefore you need clusters that conceivably are optimized for high volume, highly scalable masking in real time, to drive the downstream app, to feed the downstream applications and to feed the data scientist, you know, data lakes, whatever, and so forth and so on? >> That's why you need things like Incredible Compute which IBM offers with the Power Platform. And why you need storage that, again, can scale up. >> Yeah. >> Can get as big as you need it to be, for example in our reference architecture, we use both what we call Spectrum Scale, which is a big data analytics workload performance engine, it has multiple threaded, multi tasking. In fact one of the largest banks in the world, if you happen to bank with them, your credit card fraud is being done on our stuff, okay? But at the same time we have what's called IBM Cloud Object Storage which is an object store, you want to take every one of those searches for fraud and when they find out that no one stole my MasterCard or the Visa, you still want to put it in there because then you mine it later and see patterns of how people are trying to steal stuff because it's all being done digitally anyway. You want to be able to do that. So you A, want to handle it very quickly and resiliently but then you want to be able to mine it later, as you said, mining the data. >> Or do high value anomaly detection in the moment to be able to tag the more anomalous data that you can then sift through later or maybe in the moment for realtime litigation. >> Well that's highly compute intensive, it's AI intensive and it's highly storage intensive on a performance side and then what happens is you store it all for, lets say, further analysis so you can tell people, "When you get your Am Ex card, do this and they won't steal it." Well the only way to do that, is you use AI on this ocean of data, where you're analyzing all this fraud that has happened, to look at patterns and then you tell me, as a consumer, what to do. Whether it be in the financial business, in this case the credit card business, healthcare, government, manufacturing. One of our resellers actually developed an AI based tool that can scan boxes and cans for faults on an assembly line and actually have sold it to a beer company and to a soda company that instead of people looking at the cans, like you see on the Food Channel, to pull it off, guess what? It's all automatically done. There's no people pulling the can off, "Oh, that can is damaged" and they're looking at it and by the way, sometimes they slip through. Now, using cameras and this AI based infrastructure from IBM, with our storage underneath the hood, they're able to do this. >> Great. Well Eric thank you so much for coming on theCUBE. It's always been a lot of fun talking to you. >> Great, well thank you very much. We love being on theCUBE and appreciate it and hope everyone enjoys the DataWorks conference. >> We will have more from DataWorks just after this. (techno beat music)

(upbeat electronic music) >> Announcer: Live from Vancouver, Canada, it's theCUBE, covering OpenStack Summit North America 2018. Brought to you by Red Hat, the OpenStack Foundation, and its ecosystem partners. >> Welcome back to The Cube's coverage of OpenStack Summit 2018 in Vancouver. I'm Stu Miniman with my co-host John Troyer. Happy to welcome back a company we've spoken to a few times at events, Paddy Power Betfair. First time guest coming to us from across the pond, Dave Buckley who is the automation engineer with Paddy Power Betfair, thanks for joining us. >> Thank you for having me. >> Alright, so first of all, you've been to a couple summits and we've talked to Paddy Power about OpenStack. Before we get into your specific implementation, tell us about your experience here this week and any compare, contrast to previous years. >> Yeah so I'm very lucky, I got to come to the previous two summits in North America. I guess what I've enjoyed this week, it's kind of a slight tilt towards, it's away from being purely OpenStack, kind of towards this open infrastructure kind of thing, 'cause like I said, especially last year in Boston, Q and NEs was becoming a big thing. Yeah, and kind of, the OpenStack Foundation becoming kind of more, not that it wasn't before, but more community-based and being part of the ecosystem. So, yeah, I think it's been quite interesting seeing that. >> Not to put words in your mouth but, it was even, the last year or two, it's more aware of some of the complimentary things and adding pieces. You know, we had, one of the interviews we did this week was person who's the SIC lead for the Kubernetes stuff, that sits under another Foundation, things like that. Yeah, exactly. It's been quite interesting this week, I guess, sort the Kata Container project, which wasn't something I'd been aware of before Monday morning basically. I remember we were sitting in the keynotes, and they were like, you can have this container-like thing which has all the speed of a container, but it's as secure as a BM. And you're thinking, how, how is that even possible? So I've really enjoyed, I got to go to one of the sessions yesterday, one of the technical introductions on that. >> Yeah, I always love, there's certain things where, okay, this is what I'm going to do with my schedule, and turns into, this got announced, or I didn't know about this, and you knew, blow up my schedule, let me change everything else. Yeah, exactly, I think you always, you can't, you have to be flexible, right? Adaptable, and as the week goes on you just go to what you think is interesting. >> John: So Dave, you and your company have been working with OpenStack for quite a while. >> Dave: Yeah. >> And you obviously run a system that needs to be stable. Right, needs to, you take care of betting and people's money. >> Dave: Exactly. >> So that needs to be solid. But I understand you recently went though an upgrade and have some experiences talking about that? Can you talk a little bit about where you are with your OpenStack implementation and that sort of migration? >> Sure. So, I guess it's about three years ago, it was Betfair at the time, so this was before the merger of the two companies. So Betfair started using OpenStack, and I think it was actually the last time the summit was here, in Vancouver. So a couple of my colleagues who were kind of the technical leads at the time. Steve Armstrong and Steve Perera, they flew out here, to kind of get a feel for OpenStack, what it was, talk to people who'd had experiences with it. I actually think that conference back then was very informative of what the platform today now looks like. So some of the conversations they had there with people like New Age Networks and Arista, which we used for the switching, but conversations they had there kind of ended up being now what we're using in production. I guess over the past couple of years, so the big thing that happened obviously was this merger between Paddy Power and Betfair, following that they had an exercise which they called the single customer platform, which is annoyingly, for a sys-admin guy, kind of like me, they, it's always been abbreviated to SCP, but you have to ignore that. So that was to kind of consolidate and integrate the Paddy Power and Betfair co-bases and put it on a single platform, which was our OpenStack and Nuage platform. So that kind of completed in January this year, so that's live, so basically the Paddy Power sports book has an entirely new website, all running on OpenStack. A lot quicker and more efficient then the previous version. So that's been a real success. And as part of that, I should say that stability is really vital, so kind of in our business. If the site is down we don't make any money, and if it happens during a big sporting event you have a big problem. >> Do you have a metric around that? What a minute or an hour of down time would be? >> So I guess it always depends, so the nature of our traffic is very spikey. So obviously when you have a big, it's on a Saturday in Europe, the football, soccer, maybe I should say, is like a very big deal. >> We have a global audience, football's okay. >> I'll stick with football then. >> We were all watching the royal wedding. >> I don't want to talk about that. The football, if you, we just get peak traffic on that day. And, even within the year, there's a thing called the Grand National, which is a big event in the UK, big horse racing, I guess like the Kentucky Derby. It's kind of when we get our maximum traffic in the year. Yeah, you always need to be prepared for that. So one of the things as you mentioned, we kind of look into upgrade OpenStack from Kilo to Newton. So we've been on Kilo from the start. We're using Red Hat's distribution of OpenStack, so what Red Hat offer is this, they have like every three releases I think it is? They have this long release life-cycle. So that's kind of the reason we're going to Newton, cause we have kind of the, then the support will go to 2021. [Stu] - But if I remember, it's Red Hat the OpenStack Platform 10. >> Dave: Yeah. >> And 13 is going to be queened as their next one that's going to be released. >> Exactly, so I think they just announced that this week, right? So I think at some point in the next year or two we'd be going to queens. >> How do you determine when you make that jump and anything around the upgrade process, you know, good and bad that you could share. >> Dave: Yeah, so I guess going from, we were overdue an upgrade in this case, Kilos, you know, pretty old now. What we're lucky that we can do is because we have Nuage, it's like an external SDM provider, so the entire data plane is controlled by Nuage, and you can kind of plug as many OpenStacks as you like really into Nuage, and you offload all the networking to Nuage. So what's that's allowed us to do is basically we'd have had a lot of trouble if we'd had to do an in place upgrade, so I've actually been to one of the groups this week, quite a lot of people were talking about upgrades and just like all the nightmares it's caused. I know it's getting better as like the releases come out, but what we were able to do is kind of building new, an entirely new OpenStack cloud on the side of, so we've kind of turned it kind of an immutable OpenStack, so your OSB 7 cloud is there, we built this new OSB 10. But they're both circ into the same networking, so the same Nuage SDN. And the way our developers deploy their applications, I guess you want to see this in more detail, we've done presentations at these summits in the past, but kind of in short, every deployment we do immutable deployments as well, so for every deployment we'll create a new subnet within Nuage, and kind of do rolling update of your VMs that are on that new subnet into like a VIP which is kind of where the constant is, so all the traffic's come in to that VIP then you just flip things in and out below it when you do a deployment, so what that basically means is from a developers point of view, when they're migrating from OSB 7 to OSB 10 they'll essentially spin up new networks and new VMs in OSB 10 and that deployment pipeline will kind of just seamlessly, everything else will stay the same because the networking doesn't change. So we don't have to have any downtime on the data plane or the control plane. Which is really beneficial for us 'cause the way, I guess this is I'll just describe the way developers do deployments like we rely heavily on the OpenStack API being available. You pay a cost in that you, so you need extra hardware to do that I guess, but yeah we found it is something that's worked for us. >> John: Anything else with the networking and specifically that you all are running, the load balancing or resiliency that you need to have for your apps? >> Dave: Yeah so one of the things was, so it's kind of another problem there were trying to solve with this whole project, this new OpenStack platform is that historically Betfair, as it was at the time, had always run out of a single data-center. But we had another site, but it was mainly kind of a development environments right in there. So the company thought why don't we just have, we should just have both DCs for resiliency, try and run things in like an active-active configuration. Which is fine for external customer facing applications where we've had an external load balance server that can point traffic between the two DCs. But then the question is what do you do with internal apps? So this is what led us to use Avi Networks, which is kind of a cloud native load balancing technology, so we've been using to provide like GSLB internal laps, so basically we'll load balance traffic between the two data-centers so it gets deployed within your OpenStack environment, has a really neat integration with Nuage, the Nuage SDN layer, and will resolve you to whichever data-center is appropriate at that time. So if you have a full data-center outtage, you should be able to go "Okay, point stuff over there". >> John: So it makes you and the networking team or the IT team into the heroes not the villains, you're usually the people saying "No" or "We can't do that". >> I guess so, I guess so yeah you're probably right. It's cool technology though. I guess that we're very lucky and that we're given the opportunity by the people at the company to experiment with new things, so even though we're about stability but we're also about trying to push things forward in terms of what technology to use. >> Stu: Dave I'm curious how kind of the hybrid or multi-cloud type of environments fit into what you're doing today, give us the update there. >> Dave: Yeah so that's something very in our radar at the moment I guess it's, yeah it's what everybody's doing, looking to how you can have this hybrid cloud model. So I think, going back three years again, at that time, being like an online betting company, it's a highly regulated business and only at that point it was really possible to kind of put some of this stuff into the public cloud, it seems like things have come a long way, so it's something we're looking at at the moment, we're evaluating different solutions, different vendors like the Googles, AWSs, and seeing or even like some OpenStack public clouds and seeing maybe how could we migrate some workloads out into the public cloud, how do we want to that, to give us more resiliency, and also as I was saying about our spiky traffic, it just makes a lot of sense to be able to say burst out into whichever public cloud vendor on a Saturday when the football's on to deal with that peak load. So it's something we're very much looking at at the moment. But yeah no formal decisions as of yet. Unless they've done something while I've been away. >> John: With containers here at the show, lots of different threads right? Containers, Edge, the OpenDev track, things like that. Anything else, we've talked about Kata, anything else that came up that was interesting here that you just watch Kubernetes and container track as well? >> Dave: So I guess in terms of containers it's, sitting in the Keynotes on Monday you would, if you weren't watching if you were just listening, you probably wouldn't know you were at an OpenStack Summit right since there's as much Kubernetes container stuff as there is OpenStack. It's interesting so we've kind of been doing... Again, similar to the public cloud conversation, it's something that's very relevant to us at the moment, we've done kind of a few proof-of-concept ideas, evaluating different solutions, so we have like running a Cube cluster ourself, obviously we have a strong relationship with Red Hat that we've kind of explored to using OpenShift maybe, and then come the networking layer you can integrate with Nuage which would be really cool for us so it'll allow us to do kind of the all the networking, access control mechanisms as we do for our virtual machines. And again this is also something in the whole public cloud conversation is well if wanted to containers in the public cloud as well like you have all the different offerings, would we want to run our own, in like an AWS or something? Or maybe go to someone like Google where you have that supported self-service model I suppose. But yeah at the moment it's kind of at those stages so I think Steve did a presentation on the Kubernetes stuff like a PCO we done at the last Summit. But yeah still at the moment still want to make some firm decisions about which direction we're going to go but a lot of the developers a very keen for this and obviously for guys like us we all know the value of it so I think at the moment because we had that focus on stability we should now have a period of time where we're able to kind of look at all this stuff a bit more, hopefully get some container solutions into production which would be awesome. >> Stu: Dave Buckley we really appreciate you giving us the update, love to be able to do some of those longitudinal case studies as to where you've been where you're going, what you're thinking about. Be sure to check out thecube.net, you can actually search for Patty Power Betfair, see some of those previous interviews from Dave's peers. Loads more interviews there as well as all the shows we're going to be at in the future where hope you come by and say "Hi". For John Troyer I'm Stu Miniman, thanks so much for watching theCUBE. >> (electro-dance music) >> (soft piano)

>> Announcer: From New York, it's The Cube, covering Blockchain Week. Now, here's John Furrier. >> Hello everyone and welcome back, I'm John Furrier, co-host of The Cube. We're here on the ground, in the middle of all the action. Consensus 2018, I'm here with Andrew Prell, with Convergence. Cube alumni, we met in Puerto Rico, industry legend, veteran, been around, welcome back. >> Thank you, like to be here. >> So Convergence, you guys got a unique opportunity, we did a deep dive on YouTube, check Andrew Prell, Convergence, youtube.com/siliconangle, great video to watch from Puerto Rico. Quickly, one minute, explain what you guys do, and then we'll get into the new hot news. >> All right, so we're reimagining the whole video game space. We marry the consumer game industry to the out of home entertainment industry, into one operating layer, where all devices get to play against each other, in the same game space. Then we put our virtual currency on the Blockchain, to eliminate all the fraud and theft that happens when people try to convert their digital assets to actual cash. >> Okay, so what's the news real quick? Give us the update, what's going on, what's the update? >> Well see the update, we had initially named our token, back in September of 2014, while we're building everything out. We had named it Nano. Raiblocks, put it out on the Blockchain, just what a month ago, month and a half ago, as Nano, so we had to rename the token. So we announced, and we've already burnt them, put them on the Blockchain, they're in our wallets right now, on May the fourth, we announced our new token, as the Droid coin. So May the fourth be with you. (laughter) These are the Droids your looking for. So we have the Droid coin now in twenty different wallets ready to start deploying them as our white paper states. >> And you get the big momentum going on. Team updates, any new personnel, what's going on, what's the progress? >> Well the personnel actually, we just had a major event, called run for the unicorns, we had it in Louisville, Kentucky, derby week. And we took all the VIP's and press and that to the derby at the end of the week. It was a really great event. There's when we rolled out the coin, we had the team up on day two talking through all of it. It was really an awesome event then, we're now here at Consensus talking with Ledger. What they're doing right now really works well with our investment funds. 'Cause we did the, we talked last about the virtuous circle of a token based investment fund, and where we're breaking up ten funds allowing the VC's to have nine of them, and go up against the DOW on the Blockchain. Well the vault that the Ledger has, we're starting to walk through with them because we'll bring it to it's limits and it really seems like something awesome for, you know, just the whole Blockchain industry in general, in having that security at a industrial level or a institutional investor level. >> Andrew I would literally appreciate you coming back on. Real quick, what are you learning here at the show? What are doing, any business deals? Let's get the update on the ground here for you. >> On the ground here for me, we're actually have several major deals in the works that we're trying to close right now. If all goes well, by the end of this week, if not next, we will be done closing our funding rounds, period. And then from that point on, the only way you'll be able to get our tokens is to buy them from some of the startups that we're investing in, so. >> Great model. Check out our YouTube video with Andrew, deep dive, changing the gaming industry a whole nother level, really innovative solution and business model. And the tech underneath is all cutting edge. Andrew thanks for coming on The Cube again, giving us a quick update, I'm John Furrier here on the ground at Consensus 2018, in Manhattan at the Hilton Midtown for Blockchain week, New York City. >> But did we tell them where they can find our stuff? >> Go get, give the URL plug. >> Yeah, ico.silicanexus.com and fund.silicanexus.com that's where you can find all of our information on everything we're doing. >> All right, good luck with the progress, we'll be right back with more coverage after this break. >> Thank you.

>> Narrator: From New York, it's the CUBE. Covering Blockchain Week. Now here's John Furrier. >> Hello everyone, welcome back. This is the CUBE here in New York City on the ground for Consensus 2018. Part of Blockchain Week New York City. I'm John Furrier your cohost of the CUBE and Enrique Rodriguez is here with me. He's a blockchain guru and he's part of the Crypto Consulting Group. Welcome to the CUBE. >> Nice to be here. Thanks for having me. >> So love that big coin little thing there. >> Yeah. >> Come on are you holding som bitcoin right now? >> Yeah yeah. >> So tell me about your project says in the hallways here and checking in on what's going on. You're working with Andrew Prell the alumni. >> Yeah. So. >> On a cool project, so explain what that is. >> So the project with Andre or what we do? >> What you guys do first. >> Yeah so essentially you know there's a big problem right now with people trying to get into the space. There's a lot of pitfalls new comers fall victim to and there's not a lot of education out there. It's really fragmented across the internet. So what we're really trying to do is provide you know really great resources to people that are looking to get into the space. We essentially want to be the on ramp for people looking to get into the crypto space. >> Where you located? >> Louisville, Kentucky. Yeah so it's a different location. I think that's why we stand out quite a bit cause we're trying to bring such a new and disruptive technology to a place that's not so on the leading edge of technology sometimes. >> And you know it's cool about it too is I live in Silicon Valley. It's good to be the epicenter, everyone's got to go to Silicon Valley. The blockchain phenomenon and crypto in general is a global thing. >> It is. >> It is not one place. You can be anywhere. >> Absolutely. >> What are you doing, what are you working on with people? What are some of the things that your projects attacking. >> Yeah so right now we're really working on our educational events. We're really putting together just great content for people to come and join us and really just learn about the tech. We're also working with Andrew Prell from Silica Nexus project. He's having ICO soon and one of the things we're doing for them is really auditing the accounts that they have their tokens in. So they have in their tokenomics they have funds set aside for the team, for the advisors. All these different things and they also have ten investment funds that they're going to be using to essentially get more developers to develop on their project. So we'll be auditing those transactions that they send out just to ensure the transparency and that people know the investors that are putting their money into this project. Know where those funds are going. >> So basically it's an audit trail but it's not code review. So when you do smart contracts, there's one aspect which is code review. >> Yeah. >> And the other side of this, the coin so to speak is the transactional efficiency and affectiveness. >> Yeah no absolutely so if out of this wallet they send ten thousand droids to this developer or this project. We are essentially going to be putting together reports for that. So it's all about auditing and the transparency available. >> So you're automating his system end to end so he can manage it. >> Absolutely. >> Cause alternative is what? What's his alternative. Andrew's in particular. >> Yeah I think he went to the big four and they really didn't know. I guess display enough knowledge about the blockchain, the blockchain explorers and all those things and really came at a high price and so instead of do it themselves. It's something that we do on a regular basis. You know blockchain exploring, just looking up transaction. Second nature to us so I mean it's really good fit and it's an industry first. So really could be a break through for ICOs to come so we're hoping it works out well. >> Enrique how did you get here? What's your journey and tell your story. >> It has been awhile so. So I'm 23 years old, around the age of 20 I started hearing about bitcoin and blockchain. I worked at UPS in the international department in Louisville which if you're not familiar. We have the world port, the biggest automated hub in the world but we were having a lot of problems with the supply chain. You know packages going missing, invoices being fraudulent. A lot of manual paperwork. So really just looking into some of these problems and trying to find a solution. Stumbled into blockchain and really went down the rabbit hole and haven't came up since. I started telling people about it, meeting with people. >> So you became an enthusiast, evangelist. >> Yeah and so I mean it's really grown from me meeting people in restaurants, coffee shops and now we have office. We have eight consultants working with us and really trying to make a national network of people that can just educate. You know investors and individuals on the technology. >> Are you happy you made the move? >> Oh so happy, you know I work for myself now. It's really the happiest I've ever been. I'm passionate about something that could potentially change the world. And so I love the space I'm in. Just being here with so many like minded individuals you know from so many different backgrounds. It really is a beautiful thing that CoinDesk was able to put together here. >> And it's also cool, a lot of new people are coming in. Both old and young. I mean old guys like me and so Dan Bates on just before. We're kindred spirits, we're the old dogs. He's doing real business but the young guns are making it happen too. >> Absolutely. >> So it's not about ageism. Lot of us old system guys know this is all one big operating system. >> Even with our clients, we have people as young as 15 coming in like hey how do I figure this out and 85 people that don't even have email set up. You know want to get involved in this space. I mean we have a wide spectrum of people. >> If you got an AOL account we're ignoring you. Although I just try to turn my on that instead have the throwback. >> That's what it is. >> I got to ask you because one of the things I've really been apart of in my whole life in computer science is open source. Even when I was renegade back in the old days now it's tier one. Open source, cloud computing, has really and open source particular. Really built the idea of a community. >> Absolutely. >> The blockchain community is very small still young tight knit and growing. So as people come in, what's your advice to people entering the community. How thy should align, what should they do? >> Yeah this is something that we have to deal with a lot and so whenever because a lot of the headlines that go around. You know the bitcoin bubble all the crazy gains the lambos. People come in with this mindset that it's a get rick quick thing. You know they want to dump money into the newest ICO or the next big bitcoin and well you really have to educate them on is that this is a long term play. We're still very early in this space. Never invest anything that you're not willing to lose and so a lot of these. We call them the commandments actually just in a podcast episode on them. So there's a lot of just base level things that we try and enlighten our newcomers in. It's been a really great because a lot of people whenever they learn about this technology under the surface. It's just enlightening and so it's been great the community grows. >> A lot of businesses are growing into the community. A lot of people are joining the community but also a big trend is that big business and small medium sized businesses are looking at as an opportunity. So I got to ask you the question right which is I see a lot of people out there that are passing themselves off as code gurus because they bought bitcoin in 2013. >> Oh absolutely. >> They don't, but they haven't actually built anything. >> Yeah. >> So a lot of people are hiring fraudsters. So I'm not saying, there's nothing wrong with trading bitcoin and being involved in the currency. >> Absolutely. >> But the difference between someone who buys currency and builds the next generation with the community. How does someone vet that person? How does some a business owner how do you figure out the pretenders from the players? >> Yeah I think it's really about getting to know the person that you're talking to about this. Seeing how transparent they are, their ideologies, why they're in this space. Why they bought bitcoin a lot of these fundamental questions that you could tell a lot about a person from their answers. Because we've come across that a lot. Whenever reason I started this company is because you know over the past three years or so it's been a lot of trail and error really trying to figure this stuff out. >> I always ask too, what have you built. >> Yeah no absolutely and so we're currently actually in the beta version of a platform that we want to build that's essentially going to allow us to connect these consultants as well as a portfolio tracker but. >> I got to ask you the question. What's the coolest thing you've done? >> The coolest thing I've done, probably getting my pilots license a month after my drivers license in high school. Just in general you'll be able to leave school and go fly planes. All of my best friends were in a class. You know it was really, it was amazing. >> Surreal, Enrique great chatting with you. >> You as well. >> Awesome voice. So glad to have you on the CUBE and good luck with your venture with Andrew Prell. That's cool project and on the things you work on. Best success to you. Enrique Rodriguez here on the CUBE breaking it down. Lot of new action going on, lot of great voices. Lot of talent coming into the community of course it is a community. It's tight knit, it's early growing super fast and as the crypto action. This is the CUBE bringing it all to you. I'm John Furrier we're watching after this short break. We'll be right back.

>> Announcer: Live from Chicago, Illinois. It's theCUBE. Covering VeeamON 2018. Brought to you by, Veeam. >> We're back at VeeamON 2018 in Chicago. You're watching theCUBE, the leader in live tech coverage. My name is Dave Vellante with Stu Miniman. Paul Madison is here he's the vice president of global cloud business at Veeam. Cloud, is where all the action is. Paul, thanks for coming back on theCUBE. >> No, Dave good to see you again, Stu good to see you. >> So you guys have made, you know, a major push obviously into the Cloud. We talked about, with Peter, that you know Veeam used to be product company. Now you're a platform company. Platforms beat products as we know and Cloud is a key part of that. It's a distribution channel, it's a technology, it's a disruptive force. What's your take on what's happening in Cloud? >> So, we're loving what's going on in the Cloud market space. I think, and I've talked with you guys about this before, the pace of innovation that's happening is absolutely remarkable. And it's all about delivering value for the customer. I heard Danny talk about business outcomes in the Cloud. We see this again and again, the Cloud is emerging as the platform or series of platforms that customers can drive innovation, can drive business agility. And we're excited about that because as the customers are moving there now we are evolving our platform to allow them to know that no matter what infrastructure, what platform they use they've got an answer in Veeam. Right? From a data protection, intelligent data management perspective... Veeam's got an answer. So, we see incredible market opportunity, we see accelerate in innovation and we see our platform evolving to take advantage of all that. >> So as the head of Cloud at Veeam, how does it work? Do you have product requirements, obviously you've got channel relationships to get building how do you spend your time architecting, I mean, how did you architect sort of the Cloud plan for Veeam? >> Yeah, it's still a work in process obviously. We are constantly evolving it as the market changes, we have to continue to evolve our strategy. But I have a lot of internal partners, you know, I partner really closely with Danny's organization from a product strategy. I partner very closely with Anton Gostev on product management, I partner really closely with Carey Stanton on our alliance partners. Because as you can imagine all of them are moving towards the Cloud or have a Cloud strategy. I work with people on pricing, licensing, sales, and marketing. And it's just this great, wonderful ecosystem that we have internally. Where we assess where we want to be, we assess where the platform has to go and we try to evolve all those things together. It's not trivial, there's a lot of work. Especially as we transition from a product company, to a platform company, to a solution company. But those are the kinds of problems that we like to solve, that's exciting stuff for us. >> Paul, wonder if you could speak a little bit to that partner ecosystem. So, you know, we went through years of public cloud is the enemy or public cloud said everything is going here to, you know, the Cloud service providers. And even the traditional vars and integrators, many of them worked with Microsoft for years. Lots of them now working with Amazon in some way or another. >> Paul: Right. >> Walk through a little bit that dynamic of what you are seeing, of course you play it across all of them so you've got a great vantage point. >> Yeah, sure. It's a great question, and it has, Stu, it's evolved in the last I'd say 18 to 24 months. It used to be, when I first started at Veeam, I went to a partner conference and I was six weeks into my tenure at Veeam and I came from Microsoft Azure And the looks on the peoples faces was, oh my God, you know, Veeam is going 100% asual. As the Azure guy here public cloud was bad, right? And so it lit people up and I tried to, and continue to rapidly assure them, no, that's not the enemy, that's not where we're going. We see an evolution now where we do see some Cloud service providers saying, we have to understand that customers want to go there, so I need to be a part of that market. That's why we're making the choices that we're making in terms of how we engineer the platform is that it's about customers having choice. And so, it's not the easiest dynamic to manage, as you might be aware of. But there is value, you see firms that will, now are starting to say, okay I can differentiate based on maybe a vertical orientation that I have. I'm going to specialize by going after the enterprise or by going after health care, financial services. And they're saying alright, those big players are here to stay. I better, I should figure out how to get along with them and how I can add value on top of them. Because from my perspective, and those big hyper scale or public clouds. Sometimes I call them a canvas, you can paint on them. But cloud and service providers can really help bring another level of intimacy to those platforms for their customer and drive value for their customer. So co-opting those large platforms is a good strategy. >> Yeah, alright, so Microsoft background. One of the things that caught our eye is, I believe, it was 2500 downloads already of the Veeam solution. >> Yes. >> For Azure. >> Yes. >> Broad reduction and betaWS, give some color on what's happening with public now. >> Yeah, sure, so we are super excited about what's happening with our Cloud partners. We've had tremendous growth in our VCSP business. We have over 19,000 of them now, globally, which is a huge ecosystem of partners. We've seen 58% year over year growth there. Fantastic growth in the number of machines that are protected by Veeam and Veeam powered services. The AWS marketplace has been, the AWS market is one that we've now, you know, jumped into with our acquisition of N2WS. We've seen terrific, I don't know if you're talking with Ezra or anybody from the N2W side. But they've seen 153% year over year growth since coming on board with Veeam. We have Office365 now, Danny talked a little bit about the new version of that, that we're in private beta of right now. That market is taking off tremendously. We've seen 29,000 downloads of that, 29,000 different customers that have downloaded that. We're currently protecting around three million mailboxes of Office365, so there's just a lot that's, our work with the IBM Cloud, is terrific. They are here, they're our sponsor. Great things going on there, 1,000% growth in the VM's that are deployed using it, on the IBM Cloud. Now their resiliency services practice is building up around Veeam. So there's just this tremendous momentum across all the dynamics of our Cloud business right now. >> Well, customers have to place bets. We love sports analogies in theCUBE. Kentucky Derby just went down, we have the Preakness coming up. And customers I feel like they're placing bets on what's called the under card, right. You've got the big race is the Kentucky Derby, well there's a bunch of races leading up to that, they call that the under card. People warm up, they make little bets here, little bets there. But then when it comes to the big race that's when they put down their big money. And I feel like the Cloud bets have largely been on the under card to date. When you talk to customers, well first of all do you agree with that, and are they asking you, okay, you know, which Cloud should I use where? What bets should I place? Having, you know, run the Azure group, you've got a perspective on this. What do you see customers doing and how do you advise them? >> Yeah, so, that's a great question, what we... So let me take you back a little bit. We did see early on customers that sort of nibbled around the edges, around the under card, and made small bets on it and then for whatever reason made the decision to dive in big. And I think a number of them that didn't work out quite well because as they were going through the under card and managing through that they didn't learn as much as they needed to or the platforms evolved so that they ended up saying, wait a minute, hold on, we maybe shouldn't have made that bet. Alright? So, customers now are, I think they're taking a little more of a smart approach towards it because they realize that, hey, going 100% in with one provider is going to be a challenge, right? They are worried about the old vendor lock in and portability across clouds. We obviously will talk to customers about multi-cloud world, 81% that we surveyed said, I'm not going to have a single Cloud provider. I'm going to try to figure out which work loads to put where. And we're going to continue to help advise them and help figure out how they do that. How those different cloud infrastructures factor into their data protection and availability strategies. >> Yeah, so when you get to the database, the middleware on up and you take that approach. Then, obviously there's substantial skillsets that you're going to need whether you're using, you know, Amazon's databases or Oracle's or IBM's, et cetera. At the infrastructure level, however, and I think this is part of your strategy, you can potentially standardize, you know, you guys want to be the standard for the data protection platform. But you've got to earn their trust and the right to do that. >> Paul: Absolutely. >> But if we're understanding that right, that is the strategy, right? To sort of take that stress away from them, let them worry about which database, which SaaS application. But from an infrastructure stand point, you can rely on Veeam to be that data protection platform. >> That's exactly right. And I think when you were talking with Danny earlier is any app, any data, any cloud. Regardless of where you want to go, bet on us, we've got the answer for you. >> Okay so then follow-up question. Why you guys? You've got system vendors, you've got storage vendors, you know, to a certain extent you got quasi security players. Big established companies, start-ups. Why Veeam? >> Well, I think because of a couple of reasons. First of all the platform is extensive and continuing to grow. And we, I'm thrilled that we are, you know, we've got the platform elements of it. I think you said earlier, platforms always trump products. I'm a firm believer in that. I love platforms. I think the second reason is we're a partner driven and customer driven organization. I know that sort of, that can sound like sort of mom and apple pie but the reality is we are 100% channel focused. We don't compete with those channel partners, we don't compete with cloud service providers. We can enable all of them. And so you've got a great platform, with a great organization that knows how to partner and wants to partner. Those two things come together and make us a great choice. >> How do you, I haven't asked anybody this, I wonder if you'll give us your perspective. Because you're pure channel, how do you, and at the same time customer driven, how do you get that feedback? Obviously you go in with channel partners but how do you ensure that you're getting the high fidelity feedback from the customers? >> So, get with the customer. (laughing) You know, we're 100% channel driven but we are arm in arm with our channel partners. It's not, you know, in some areas of the business, yes there's a lot that goes on that Veeam folks don't get involved with. But when it matters, when it counts, we're arm in arm with our channel partners. We go and visit together, we spend that time, we invest that time. We do partner advisory councils, we do customer advisory boards. You know, we're not... It's not diffused through the channels, I guess is what I want to say. It's very much a true partnership where we are engaged fully. >> Okay, let's get into it. You're a Philly fan, your boss is a Patriots fan. >> Paul: I've heard that, yes. >> You got, I mean. Listen, as a long time Philly fan it's like one of the best feelings in the world when your team wins the Super Bowl. First of all, having your team in the Super Bowl for two weeks having that hype lead up is just the greatest thing in the world, even though you just can't wait for kick-off. But I got to say congratulations. >> Thank you. >> I know you've got to feel good about that. >> Thank you, we feel great about it. It took us a couple of days to catch our breath after the game and quite frankly even during the game. Hey, listen, Tom Brady, two minutes ago has the ball, we were all getting ready to leave the party because we said, hey, we've seen this movie before, we know what's going to happen. Go down the field, touchdown. We're out. >> You can't watch. >> Can't watch it, can't watch it. I really didn't watch the last 30 seconds of the game 'cause I just had my (laughs). No we were super happy about it, I will be honest and say it's been a source of on-going rivalry inside of Veeam. Because we have quite the Boston contingent. But, we've got the trophy. >> Well, pretty amazing that, well 'cause Philly had the really outstanding defense >> Yeah. >> Which everybody tries to predict before the game, right, and then Brady shreds the Philly defense. Who would have known that Nick Fowles is going to score every single time he had the ball except the one fluke interception. >> Paul: Yeah. >> It was really an unbelievable game. I mean, as a Pats fan, we were heartbroken, but wow what a game. >> We loved it and, honestly, the guys have been great about it and almost, I don't know if Peter falls in this category, but almost everyone has said, yeah well Philly was the better team. We lost a great game to a better team, there's been no, oh well, one of our guys tried to say, hey, that whole Philly special play should have been called an illegal formation. But then I gave him a list of all the violations that the Patriots have had in the past five years and he's like, okay. >> Yeah you don't want to sound like the raving fan, right? You know, calling the ineligible, eligible. >> Paul: Right. >> Look, Brady, they made that great call. Brady couldn't make the catch, he couldn't make the catch. Nick Fowles made the catch. Okay then when it came down to execution they stared, you know, into the abyss and they didn't blink. I mean, ya got to give em' credit. And Villanova, I mean, that was awesome. >> They were just a machine. >> Sixers, what happened? Big favorite. I think young team. >> Young team, look, they're going to be good for a while. >> Dave: Should be a good rivalry. >> I think Ben Simmons, you know, he's going to come up. Joel Embiid is an absolute beast but I got to hand it to your team and your coach, I mean, I think in some ways we got out-coached a little bit. >> Dave: When Larry Bird came up and Dr. J was, you know, didn't want to relinquish that mantle. That was some of the best rivalries in the early 80's. With the Sixers and the Celtics so hopefully that will get better. >> Paul: Hopefully we'll get that going again. That'll be awesome. >> We love talking sports and we love talking sports with guys in tech that love sports. Paul, thanks very much for coming back. >> Hey, my pleasure man, thanks for having me, really appreciate it, thanks, guys. >> Alright, keep it right there, everybody, we'll be right back with our next guest right after this short break.

>> Announcer: Live from San Juan, Puerto Rico, it's the Cube, covering blockchain unbound. Brought to you by Blockchain Industries. (upbeat Cuban music) >> Hello there, and welcome back to our exclusive coverage. This is the Cube's coverage in Puerto Rico for Blockchain Unbound. We start week of variety of activities here on the island around blockchain, cryptocurrency, the decentralized internet, the future of work, the future of play, the future of society, all here, happening. My next guest is an entrepreneur. Steve Steward is the CEO and co-founder of that's V-E-Z-T. Really changing the game around music, relationship to fans, and using blockchain and tokens to enable that. Welcome to The Cube. >> Thank you so much John, it's great to be here. >> Thanks for coming on, so first talk a little bit about what your value proposition, what you guys are doing. Obviously, people who ever downloaded iTunes, and then said, "This sucks, let's go to Spotify." Now are going, "Hey, I'm on Instagram. "I have access to my artist directly." The internet is a response vehicle; one on one. Tell them about your opportunity. >> There's two value props. One for the consumer, right? So, if you're an artist fan, and you love a song. You love an artist. You want to be involved with that artist on a one to one basis, there's no way to do that right now. You can follow somebody on Twitter, you can like their YouTube, that doesn't connect you with them. Our platform let's you buy in, and by buy in I mean ownership. You own a piece of the IP with that artist in their song, so it's on a song by song basis. But if Ariana Grande's my favorite artist, I want to buy a little slice of her song for $10 or $100, I now have the opportunity to put that out there, and I can share in that royalty stream with her. And she and I will connect on a level. If she wants to take my information and send other things to me like concert tickets or backstage passes, that's possible now. So the value prop for the fan, is connection with the artist and ability to say, "I own a piece of that royalty stream. "I own a piece of that song." And on the artist side the value prop is, "I now get to actually share directly with my fans, "build that community directly. "There's no gate keeper like a label "or publishing company in the middle, "and I have the ability to reach out "and monetize directly based on demand and merit. "Then take that and do whatever I want "and build up my brand." >> So this is a great example where artists that have direct relationships, might be undervalued. Also, in a way there doing their own mini ICO, so to speak, with their fans by sharing in the future value of the success with the people that got 'em there. >> They are, we call it an ISO, Initial Song Offering. So just like a ticket on sale, it allows an artist to pick a time and date and say, "At noon on Thursday, I'm putting out 5% of my song "to raise $10,000." They pick the pricing, they pick the amount they want to put up, we admin the actual royalty stream for those people that put money into it, and the artist keeps the rest of it. >> I've seen a lot of pitches, I've seen a lot of stuff online, "Oh yeah, we're going to revolutionize "the new music industry, were going to use tokens." I've seen I feel pitches, but again, if you look at the smart money investors, they're looking at deals and saying, "Is there a network effect? "Is there a protocol of some sort in there?" Obviously you've identified a relationship that has tokenization or token economics built into the business model. Take a minute to explain that key tokenization. Why you're business is set for token economics? Why you, over someone else? >> So my backgrounds in the music business, I used to manage a band called Stone Temple Pilots for 20 years. Actually for 10 years, from 1990 to 2000. I had 20 other artist in that meantime. I understand the pain points from an artists perspective. I also know where the value is in the industry. It's in the publishing. Most of these entertainment businesses, the IP is where the real value is. Film, books, T.V., music, it's all in the underlying content. Not the distribution, not how many times I've downloaded it, but the actual ownership of the content. What we want to do, is put that in a basis so the artist can now take that on a fractional basis. We can use a tokenized product to let the fans buy in. The blockchain helps us track those rights, keep them secure, make them transparent, and allow the ownership to be shared between thousands or hundreds of thousands of people. >> And this also helps build community. I want to get your thoughts on something. I held a panel on Sundance this year, Sundance Film Festival, called The New Creative. What you're seeing emerging is a new artist. The new artists are digital native, their fan base is direct. Things we just talked about. But they're undervalued, because the gatekeepers, either the studios and or labels in your instance, are controlling distribution and they're also controlling the activities. So we all know what Apple's done with some of their artists, and artists have to go on the road and do all this work. Well digital changes all that, so from your perspective as a industry guru in music, how has digital changed that dynamic? And talk about this new artist breed, this new young upcoming digital generation of artists. >> There's two things. First, internet really hasn't delivered what it said it was going to the music community, right? When you had Napster come out, it's great for the fan base. The artist and the creators actually lost out. Music got valued from here to here. It went almost to zero. People were sharing files for free, so at some point we thought-- >> Regulatory tried to solve that legal-- >> Tried and tried, but once you build a generation on free, it's hard to change that. On the fan side it was great. There was a lot more distribution. On the artist and creator side, it wasn't so great. What we're trying to do is bring value back to that. We're going to use digital in a way that lets people share what they believe in, without these gatekeepers like you said; fully demand based. If I'm the small artist who plays banjo in Kentucky, but I've got a 100,000 fans who really love me, and they can show that by buying in, forget the labels. Forget the publishers. Forget the brands. I now have a direct connection. I'm earning a living directly from my fan base, which is how it should be. >> Kind of like we do open source content. We were talking about our business, you are enabling people to self-identify with the artist, letting the artist be open to that, make that handshake or if you will, digital handshake, and have a relationship beyond just being a fan. >> Most of the labels, in fact all the labels: Spotify, YouTube, Pandora. None of those platforms let the artist share directly with the consumer, right? If I say, "Look, I've got 20,000 streams today, "can you tell me who they were, no. "Can you show me where the downloads are, no." Why aren't they letting those people connect. The artist has a natural connection with their fans. >> That's because the tech platforms are optimized for a different business model. Look at Facebook, they're living in their own problem. Their success is almost killing them. They have this centralized data optimization for the wrong incentive. They're optimizing data for advertising, not user experience. In this case, you're saying, "Hey, lets use the infrastructure and crypto "to optimize the fan relationship and expand it." >> The reason artists get on stage, the reason they write a song, is to connect with people, right? We've disembodied that connection to the point where they're out there in the ether and the fans are over here. They're like, "How do we get together?" If we can bring that back, there's a very powerful connection there that we can take advantage of and let people actually make money from their craft. >> Well Steve, great to have you on The Cube because one, you have domain expertise, you're business model solid, and we've been saying yesterday and on The Cube that it's a reverse of the old stack model. The top of the stack is the business model. You nail the business model, the underlying plumbing will sort itself out. With that in mind, how are you guys looking at the plumbing? What are you doing here in Puerto Rico? Are you raising money? Are you doing an ICO? Take a little bit to explain your relationship to the plumbing under the hood, in the blockchain, crypto world. And then what you guys are doing here in Puerto Rico. >> We started building our platform the traditional way. We took traditional VC funding about a year ago. As we were building the platform, we understood the importance of a blockchain, some type of decentralized ledger that allows people to look transparently under the ownership stack. As we were building that, one of our engineers said, "hey, have you guys heard of an ICO?" we had no idea what this was. It was about a year ago. Got educated very quickly, dove deep on it, and realized there's an opportunity, not really for the fact that it's crypto, but to actually capitalize the company in a meaningful way. We want to scale this very quickly. We've got strategic partners in Asia, other parts of the world, that we need to grow very quickly into. We realized it was an opportunity to have. We did a raise close of December 1st; oron exchanges. >> An equity raise or a token raise? >> The token raise. We did a U.S. based PPM SAFT. >> So a security token. >> It's a utility token, but we followed a process that our legal advisors advised us. In the U.S., keep it as a PPM SAFT. If it's offshore, it's offshore. >> So accredited investors? >> Accredited investors only, small cap, try to keep it reasonable, because we don't need 100 billion dollars to build this platform right now. We're looking to get this in a traditional business sense, so we're building a real platform with a real team. We took advantage of that. We got listed on an exchange January 12th. At this point, we're head down in product. We're looking to launch this in 45 days at Coachella. We had an event two nights ago at South by Southwest. We came up here from Austin, so we're going back to California tomorrow. >> John: You're on a plane. >> Yeah, we're on a roadshow. We've got artist brand partners now. We're signing people, two or three artists a week that come in. We've got publishing catalogs that are coming on board realizing that there's a B to be played, because publishers only monetize the top two or 3% of their catalogs. The other 98% get no love. If they can put that on a retail platform like us, and allow consumers to buy directly into it, it's a whole windfall for them. >> Everyone's a media company these days. We've been saying it, and that's the new media model. You got a great formula, good luck. We'd love to keep in touch. >> Absolutely. >> What are you guys looking to do next six months as you get the product out the door? Ecosystem, you got to recruit more artists? What's the plan? >> My goal is 100,000 songs in the platform by the end of summer. Like I said, we're doing a lot of brand activations at music festivals. We see people, you know, exponential growth. Each song comes with an artist fan base. This builds into it. We're also supporting producers, co-writers, performers, the other guys that aren't on the stage. We realize this platforms for them, because the own live ownership in these songs, but have never had a way to monetize it. We're growing this very quickly. >> Steve Steward, CEO/co-founder of that's V-E-Z-T. Check 'em out. If you like music, this is a great way to actually take part in being a fan and owner of the actual property; great business model. We'll keep in touch. Thanks for sharing on The Cube. More live coverage here on The Cube, bringing you all the action, and extracting the signal from the noise. I'm John Furrier, thanks for watching. We'll be right back with more coverage after this break. >> Thanks guys, thanks John. (electronic instrumental music)

>> From Washington D.C.. It CUBE conversations with John Furrier. >> Welcome to this special exclusive CUBE conversation I'm joined for a year. The heart of the Amazon Web Services headquarters in Arlington Virginia the heart of Washington D.C.. I'm here with Teresa Carlson who is the chief of the Amazon Web Services Public Sector team. >> Great to see you again welcome to Washington D.C. John. >> A lot of action, having the CUBE on the ground all day yesterday. We've got interviews all day this afternoon, really getting the top stories and the big story is the the cloud computing impact to government. You've been leading the team in the public sector worldwide for Amazon Web Services really had great success since the CIA deal four years ago, which was a watershed moment to this gestation period of Amazon filtrating into all the different systems of the government, and worldwide. Congratulations. >> Thank you. It's been a great seven and a half years. It's gone by so fast. I still feel like every day is day one. >> One of the things that I'm the most impressed with you, and I want to get your take on it is: you've been very passionate about the mission of the public sector from nonprofits, education, inclusion and diversity, Women in Tech-- a variety of things-- as almost a higher level mission. But Amazon has been a real enabler for the change as well. So what is your official role now at Amazon. It's now Global has been. How has it changed over the past few years. >> Well in the early days, even though when I started here anyhow I always agreed it was worldwide that what ended up happening was the fact that it went from really just focused focusing on the U.S. to actually focusing on worldwide because if we didn't really win business here in the U.S. it was going to be hard to win business worldwide. >> You were the most powerful women in Washington D.C. as voted recently one of the magazine's. You've been doing great work here in D.C., but also globally. But one of the things that you're doing I want to explore with you is you're changing the game not just with technology and government, but in society entrepreneurship that you're enabling. You've kind of cracked the code on this formula with the work with Amazon where there's now the silos are being broken down and the blurring lines between the different sectors are all cross pollinating we're seeing that with entrepreneurship, nonprofits, education; what's going on there what's your view on this? >> Well when you're really going to drive change globally and when you're doing such a transformational change and shift with technology you can't just look at it as a shift of technology. It's got to be a shift to the sectors of what's happening. And also you can't just educate one group you have to go in and educate the society and have real societal change. Everything from ensuring that the community colleges have the right kind of programs for computer science that K through 12 that they have access, because if you miss one group you're going to miss a whole generation of something. >> The realities are there's millions of jobs worldwide that are needed for cloud computing and a variety of roles including new ones for AI and machine learning which we almost have no know individuals that are as qualified as we want them. So to drive real change you have to start at the policy level and ensure policy makers and regulators around the world are aware of what they need to put in place, so that these tools and technologies are enabled that they're promoting and budgeting for things like educational programs and they're very focused on not just old-tech companies but actual new-tech companies that are driving forward to start apps entrepreneurs and social engineers I'll call them. And that's really where we are trying to drive toward social change or societal change starting at the policy in going all the way down to education on diversity issues around the world. >> One of the things that you guys have done here in Washington has been as successful as you've done the hard work you put the time in. You paid your dues. Did the the brute force work you need to do with security and cloud. Now it's up and running is successful. Now you have a elevated responsibility with the cloud to enable wealth creation value creation change in society. So you're steward of a change agent at the same time you have to create value across those sectors. What does that responsibility mean to you and how are you leaving the team to continue to up the bar on the innovation in that area? >> Well it does mean a lot to me and it is super important because if you again get one element wrong it's almost like you misstep something. So we are we are like my entire team is really gritty, like we every day. We're sort of challenging each other. Do we have it right? The whole concept of the ability to dive and really understand your customers and what they need to do. That example of that would be is we really have sort of a model we developed as a team for going in and creating digital innovation or digital footprints for countries. So if you think about this if you walk into a country and they have zero idea how to become a digital nation you have to through her influence and your experience really educate them on what are the elements and again that goes through everything through. How did they set up policies. How do they have acquisition vehicles. How are their regulators working everything through the financial regulators telecommunication providers through the educational systems of how you operate within. Not only that but the entrepreneurs. How do they actually set up a group teach and train them. Sometimes in societies that really have not had zero training in entrepreneurship. You know you think about the United States I could call you up and say hey I have a question about something I'm doing in media. Can you like give me some suggestions. You would help me if you go to countries like that. They don't have the same network. We even have here. So really establishing helping them establish what is their blueprint. >> And I will tell you it's working. And the reason I think it's worth working is because we go in very humbly, we begin to we're very patient, we have a long term view and what we're doing and we really demonstrate for them and not just demonstrate that help them ensure that they're getting there and that's the customer obsession side of us. >> And the old way the old competitive landscape used to be a price on our product performance is the best. Therefore you should buy it right and make as much money as possible and provide some customer support and some maintenance. Okay. Now you guys have hit the form. That's just one element of a successful formula. Mission driven but also ecosystem and community. >> That's right. >> Talk about the dynamic between those three things having the mission the right price performance and also community and how is that formula work for you guys and how do you make that successful. > Yeah well so here's the really interesting fact: when we decide to go in and build in the region we can. The realities are we could go anywhere in the world and build region but will that region be successful. And there's many elements to that being a success. And one of the things as an example is price. So in order to have a region that is priced in in a manner that individuals can buy for cloud computing you've got to ensure that the elements that you need to build that region are in place. So you've got to think about things like utilities, power, water, land, networking, telecommunications, and then education, are the people there that can actually respond and take the jobs that are required. So you have to look at each and every element and go in and really make those changes. And an example that I'll share is telecommunication providers around the world were the most advanced in the world in the United States in telecommunications. But if you go to other parts of the world there's a there's a monopoly or duopoly and their prices are generally outrageous. And for a company like ours of course we're a big networking company and if you go in and if a customer pays a hundred percent more than they would pay in a region that was right next door they're probably not going to want to use that cloud. So when I say that we're going in and driving real change we really feel like it's our obligation to go in and ensure that we put all the pieces and parts in place with that country and those officials to ensure that they understand. And then that added element if we're going to do that to telecommunications provider that may be part of their revenues for government or it's all they know then we need to teach them how they set up new business models because there are fantastic business models for telecommunication providers with cloud computing managed service offerings they can do a lot more mobility, gaming there's so much stuff that many of them have been so used to an old business model. We really have to help them transform in order for that entire community and region to be successful. >> Would it be safe to say that you guys are enabling value creation and that you guys are allowing others to take advantage of that it's not just your profit you're enabling them to profit and or how they see that it could be for social good but also could be for making more money? You can't lose by helping people make more money or to achieve their objective. >> We love that. Will that any if you think about Amazon Web Services, our you know where we started was with startups and entrepreneurs the ones that led us first were the developers and engineers right. They came in and they start using AWS and then those developers and engineers turned into small companies and start ups and large companies and so we really have a soft spot for entrepreneurs and startups. So you know we talk about all the time in all parts of our business that we really need to be focused on those young entrepreneurs that are creating value in wealth. And if you do that you really see you want to change it even if you can back to the United States, you're starting to see in small communities. I'm from Kentucky we have agri-entrepreneurs. We have individuals that are looking at new farming techniques. They're taking health care startups in Kentucky. I mean it's great because you don't need to be in Silicon Valley anymore to have a startup and do really great work. >> You're a disruptive enabler you're changing your force of nature. You're one of the most powerful people in Washington. You're from a small town where this make you feel. I mean sometimes you pinch yourself. >> I'm very humbled. I'm super humbled. I know my parents were both teachers my dad was a high school basketball coach love coaching I'm a huge Kentucky basketball fan but you know humble I feel blessed every day that I get to do this role and that I've been able to work for such an amazing company who believes in this because you know Andy Jassy and myself always said, from day one the first day I met him, I was like wow he is gonna be such a champion of this because we talked about paving the way for disruptive innovation and making the world a better place and in order to do that there's multiple aspects of those things. And again the technology is that is that bridge builder. It really helps take the divided and pull it together but it's got to be all these other elements that really make it work completely. >> With this power you have in, and you're too humble to say that, but that that's true comes great responsibility. How are you using this opportunity to go to the next level at a higher level not just help them as other achieve their business objectives within D.C. you do involve them some things. What's your mission on that level. You go to a higher level. What is that and what are you doing with this opportunity that you have. >> Well it's really about helping drive social entrepreneurship. And then I would say the second one is diversity and ensuring that we are really getting more women in tech and a more diverse work environment for tech. And I'll just start on the social entrepreneurship side. It really interacts nicely with all of our goals. The thing that's really change about social entrepreneurship in the early days people thought of that just as a not for profit come of it. People were like that's not so cool. Well today social entrepreneurship is cool. Many young men and women if you talk to them they want to be involved in something they want like many but they want to be involved in something that's really doing good things. And we've sort of again been able to bridge how we're doing things that eight of us through social entrepreneurship. So an example we talked about Bahrain a little bit we have a scale in Bahrain where we take these groups in that we have also one here in Washington D.C. at the U.S. Institute of Peace for Peace tech which we're looking at technologies that helped push down correction and improve peace around the world. And then we have Halcyon House which we support and Halcyon is just as beautiful Georgetown has such a lovely place that Dr Satsha Kuno started where, we support but it's all social entrepreneurs that live there for five and residency and their health. Thirty seven the most amazing are in Washington become social entrepreneurs and they have technology enablement legal enable a venture capital access and that's good. >> And then the last one that we've done is called Cal Polytech we're with the president there President Armstrong he's another gentleman from Kentucky. We started there he left what we were doing and he said I want to go all in on that. Yes. And I want to start in innovations in hardware right here on campus where we can bring our talented students. We can also merge with community and Sabriel government issues. So they're they're doing areas of justice and public safety. They're looking at health care issues. They're looking at their looking and also child exploitation issues and they're bringing all those things together to try to solve real problems. And we're helping. So it's really How about the women in tech. You're involved in. So you are women tech leader again most powerful women DC powerful people in DC. >> Well women in tech is such an important issue because again we're a fairly significant part of the population and pretty underrepresented in tech. And one of the things that we've done we started a program at AWS yes called we power tech where it's really about diversity and overall but we go out into communities we work with the schools. We have coding days on campuses. We have started in clubs. We have empowerment days where we teach women how to you, how do you interview. How do you understand the roles in tech. We do serve early. What is Cloud and how do you get involved with cloud and you would talk about other jobs. You know I've had this conversation before about tech is great in the coding part but also there's so many other jobs in tech like and to finance its operations its sales you know PR marketing and your you have to be pretty talented in tech to do any of that. It's not again I'll say for the faint heart. So we are making progress but we still have a long way to go and take a superfund. >> What's your secret of success. >> I think I learned very early on how to operate in a very diverse world. My dad was a basketball coach during my time growing and I had a lot of young men basketball players our home. We were always kicking and I had to stand toe to toe with them all the time in every aspect. I could not you know I just really I was like you know I'm going to win this argument. So the court and >> >> I don't want delays for sure but I really once I guess once I set my mind to something I really believe in it. There's passion in me. I just keep going. I don't know. That is not the right answer. How do we get there blockers are just something that can be removed in my mind and I think Amazon is the kind of culture that you know obviously the way the whole company has been created and how it's driven nothing has gotten in the way. You just sort of learn from those things and if you if you say every day we may not have gotten to where we want to be today but we learned from that from the failure that we had today in that experience and you take that in each day you sort of evolve until OK. Now we learn from that suggest and I and the other thing I tell my team because we're said to Yang Campany you don't really know what you know so don't get tied to the ways that you're doing things because we need to adjust very quickly. So I so I try to promote a an environment where we don't we've made progress. We don't know the right answer every day and we need to constantly be looking at do we get that right and how do we adjust so you know getting that agility in your business has a lot of the hiring that we do today. There's so many that we bring in that are from sort of an old school mindset because these companies did not grow as fast as we're grown and we are in a hyper growth mode. And when you're in a hyper growth mode you have to constantly look for leaders that can scale. And so that's the other sort of thing. >> So the place that can you hang with it. I've seen people you know where they sort of hit a wall and they come back but you really have to constantly say you know this is strapon. You're probably not going to have the same experience ever again. >> Here's some oxygen for some people that are not really oriented so culturally you feel that you're a good fit for Amazon given your personality. That's a key and >> I love it. I mean I love it because of the pace I love it because it change we're driving and the other thing after years of working in tech it's so fun to see your customers be successful. I mean I can't that high seeing customers actually drive results in young entrepreneurs be able to create a company. I had a young girl in Brazil I was in Brazil at the embassy and we had a we had a actually a women's panel and she Saanich like 23 years old and we got to talking and she said I just she said I created my first gaming video at 16 and sold it at 18 percent millions and she was like in her third company. She said all built on a yes. And that is like so cool. >> Like those stories you're just like wow and wouldn't be possible if you went through the old gatekeeper's other ways. >> Well I mean you know I was part of all that. I mean you spent so much of your many on just building out the tech the servers and you know in the early days entrepreneurs. >> So in each of their early capital on that. And now I think that's why you know private equity and venture pathless we are involved with them so much because they see the value that cloud computing can have in their portfolio as trying to value their image. And then the entrepreneurs you'll see seven they'll have to have Mini's going at once you know what it's like it's a good thing because that cost of creating a business is a lot less they can focus on their real talent not just buying servers and stacking them. >> Final question for you talk about the impact that you've had with either the U.S. public sector here in town your event that you started the public sector summit early days conference room in a hotel ballroom or hotel where she was at the major convergence center. It's looks like reinvent. So you had an impact. And this year probably going to be bigger. That is an indicator that something is going right there. >> Well I'm very proud of my team for helping us build this thing out that it was early days. I do think we I say up until this thing we had maybe 50 50 people. And I think last year we had about eight or nine thousand and growing and it is likely that we'll reinvent we have in over a two day period will be June 20th and 21st this year. Please can we have you back. We will be there. But we're doing something a little bit unique this year we're going to have a Space Day on the 19th. And what you know obviously eight of us Amazon we really like space has a leg like you know the cars. Yeah like SpaceX blew out like a comfortable space safe space in the clouds and way beyond that. >> And this is a really interesting area because you know space I remember as a young girl you know sing sing you know the first whole videos of walking on the moon and it makes you feel so good. You know that science and technology emerging that there's a lot of that that needs to be updated and modernized now. And we work with a lot of partners now you know like Lockheed Martin and Raytheon groups that are building tools Blue Origin Space X Nassa Air Force has been a huge robotic surgery of robotics and software involved in machine learning. I mean you think about ground stations and if you think about ground and satellite stations a lot of that is very outdated technology and that's where cloud computing and the new tools that you know that we are driving in our age on machine learning space are really going to help as well as that storage and compete and do more things at the edge with that. So so that's going to be a really fun day and we're going to have folks from all of them helping the public and the public. So it's like a precursor day to our two hour meeting and then all our public sector many re reinvent. So we're we're really excited about that. And it's something new we're going to try this year and see what kind of momentum that we want to add that we have a lot of requests with. Let's just do it. >> What's your goals. Next couple of months. See you at Public Sector Summit your event in June. Q I'll be there. What's what's on your radar. I'll have. >> A big agenda for global traveling. I'm going to be in Australia Singapore Argentina. I've got a couple of trips to Canada. I'm going to be doing very shortly here in London. I'm going to be doing a girls and tech conference and I have went out to San Francisco for the keynoting that so I have a big agenda this year of travel so get myself all geared up for my year on the road. But it's going to be fun. We have a lot of great things going on this year worldwide public sector. >> Congratulations on your success. Thanks for spending that time. Thank you Don. It's good conversation here in Washington D.C. We're in Arlington Virginia. Amazon Web Services headquarters here in Washington. Thanks for watching.

>> Hey welcome back everybody. Jeff Frick here with theCUBE One of our favorite things to do is go out and visit a lot of the cool innovation companies that are all around us here in Silicon Valley. It's a real blessing to be here. We can do it. And so we're really excited to come here today to Nightscope. They are doing so many interesting things that combine software hardware autonomous vehicles, artificial intelligence security a lot of the topics that we talked about all the time sometimes in the general terms. And here it's real. You can feel it. You can touch it. Don't try to not get over, it way too much. But we're excited to be here. We've got the founder he's the chairman and CEO William Santana Li of Knightscope. Great to see you William. >> Welcome a night scope headquarters. Good to have you here. >> Well first off congratulations on the recently announced funding that's good. >> Thank you. It's our fourth round of funding. So we're using that capital to scale across the country. We're now holding contracts in about 14 states and the companies are now starting to accelerate our growth. So we're pretty excited about that. >> So nothing do the whole history but kind of where you come kind of when did you start when did the first one get deployed. And now you're about ready to launch your fourth model. >> Sure, the company started April of 2013. When we started basically we got the first initial round of comments from all sorts of interesting folks.... Bill, you're out of your mind; This will never work; Security is not an investment thesis; You'll need 50 million dollars to build the first one; Oh and by the way it's too complicated; It's hardware and software you should pick one. And like most good entrepreneurs we ignored everyone and just did what we said we were going to do. So we deployed in the real world. Let's see, May 2015 was the first one that actually was out, operating 24/7, and that seems like so long ago but also just recently as well. >> But you really had bitten off a huge chunk of challenges, right, because you have the hardware piece and they're not only hardware, like a computer, but it's a vehicle goes outside it's in the weather. You've got the software piece, you've got the sensors piece, you've got the monitoring. So you did did bite off quite a chunk, and then you're really delivering it as a solution. So you know you're putting all these things together very much like the first iPhone. >> Yes, probably two comments: one, clients don't care about all that they just want their problem fixed. And so whatever it's going to take to fix that problem; in their particular cases it's crime. And second, I'm going X Ford Motor Company executive, spent 10 years in Detroit a little bit fluent in say large scale hardware outdoors. And for me these are lot easier than building a car. Let's put it that way. >> That's right, no people no glass No. No airbags. Things out. OK. But it begs the question how did you get to the design. Cause they're very distinctive. You know they do look like R2D2, some of the mid tier ones, you've got the stationary and this really cool Jeep-looking one back here. How did you come up with designs what were some of your initial thoughts >> Well first of all we design we engineer we build we deploy we support everything start to in-house. So maybe a little background we have a challenge similar to a law enforcement officer or a law enforcement officer and it's a command respect and authority. Shiny shoes stand up straight. But you cannot scare grandma you cannot scare the child. These are not military products so you need to be able to operate within society. So we spent maybe way too much time worrying about every little font every radius every surface color treatment everything else because part of it is putting that physical presence there to deter negative behavior. But at the same time it needs to be inviting enough to be accepted by society so that when and may are 15 when we first put the one out we were worried like what's going to happen are people going to go nuts or or what we didn't expect and ended up happening was a massive amount of robot selfies everyone's wanting to take a picture with the robot. So maybe put it a different way if you showed up today and the machines patrolling outside were painted black with red LEDs glowing with an ominous sound moving ten times faster than they probably wouldn't be sitting here talking. All right >> Exactly. I was scared by the white one when I pulled this afternoon. >> But we need to provide again that genetical presence and the turns it needs to be accepted by society. >> The next thing I think it's really interesting is the business model and I'm sure when you talk to your investors after they told you you were crazy for doing software to create a system then fracturing they probably said you know what's the business model how are you going to support these things how expensive are they going to be for a capital investment point of view. How about maintenance and ongoing upgrades. But you said forget that we're going to go as a service. So if you could tell us a little bit about that decision and how that's impacted your customer relationships. >> So we offer our technology and machine as a service business model so that gives you the machine the data transfer data storage analysis user interface. All the hardware software upgrades all the maintenance service everything one throat to choke were responsible. So one of the things we want to do for our clients is we don't want you setting up the robot robot maintenance service division right. We need. They're already busy. We've got plenty on their plate. All the security officers and our staffs. So we need to be able to empower them and not add more workload to them. So from a service standpoint that works well too. We're at the bleeding cutting edge of technology. If we were to offer it on our purchase type of arrangement let's just say I spent a lot of time in Detroit we could barely cover our cost of capital selling hardware. And that's probably not a good business model to go after long term. So if we can provide a lot more value to the client and then also retain the authority over the assets and be able to upgrade it. And as most technology around here in Silicon Valley it's better and better and better and better as Mercedes mentioned we dropped the software every two weeks on new hardware 3 6 9 months. So the clients continue to get improved technology and then from a security standpoint we want to make sure given the nature of the product that all the assets are under our control. >> It's interesting too I think that I think something that's not spoken about enough is when you have a services relationship with your client and I assume it's a monthly or a quarterly or whatever you structure your payment system. It forces you to maintain a great relationship. It forces you to continue to deliver value when they are you know writing about the feedback loop is the feedback loop is really important. >> So we signed one to three year long contracts and we had quarterly business reviews with our clients and we get to learn real time and we get real time input. So yeah after the transaction the contract signed that's when the work begins. When we get to celebrate we get to celebrate when our clients win. >> Right. So don't tell me the secret sauce or you can't tell me but I'm just curious as to where some of the real significant challenges are that people maybe don't appreciate is that the integration of these various sensors is the way that it moves. I mean what are some of the real things that make a nightscope autonomous security robot special. >> So as an ex auto executive I think self driving technology is going to turn the world completely upside down and I'm really excited to see all the massive amount our India efforts small medium large and extra large that have been going on. However we're the only company in the world that's actually scaling autonomous technology in the real world with real clients doing real work. It's easy to go build prototypes but you want machines running 24/7 in the rain. Cats dogs people cars trucks goats and sheep. And I don't know what else we've seen. That's a whole other level of engineering and fortunately we've been able to operate in that manner for a very long time depending on who you believe. Autonomous are self driving vehicles require a fail over a human one meaning 30 to 70 percent of the times the algorithms fail someone needs to take over. Despite what some people think there there is nobody in their right. >> And so we've got to we've got to be right 100 percent of the hype right. >> And 24/7 and you got to do a good enough job that it is going to pay you for it. Right. And that requires a different level of scale and a different level of discipline. >> Another question in terms of customer adoption. Well first to back up what you just said. I mean that's part of the benefit of your services model right is that you're getting feedback you get these things feel like he said as you've shipped them to heat and snow and this and that you know you're learning all the time so you actually benefit from that relationship too as opposed to just selling them something. I'm curious from the customer adoption point of view. What was the biggest hurdle that people just didn't either didn't buy it didn't expect it. I got great security guards before Mercedes told me that they'd turn over 300 cent a year. But you know clearly it's a new technology it's something new something different I would imagine there was all kind of interesting challenges to overcome. >> One is just a fundamental structure of our country. Most people don't realize that may be different than the Department of Defense. DoD has a 600 billion dollar budget. There is one person in charge. There's a massive industrial complex to build your new favorite submarine, jet fighter or what have you and they give the troops every level capability you might ever imagine and I'm fine with that. What I have a problem with is we have 2 million law enforcement professionals and security guards that get up every morning on our own soil and won't take a bullet for you and your family. And the level of technology that we provide to them as a country is certainly beneath the dignity of this nation. >> And so what I expect to happen is for us to give them the right set of tools for them to do their jobs much more effectively. The Department of Justice and Homeland Security have no federal jurisdiction over the 19000 law enforcement agencies and 8000 private security firms. There's literally no one in charge and there's basically been no innovation and space so when you ask me how you're going to get this into a clients hands. Well we basically took the thing that was on the movie screen and is now operating autonomously on your premises. Right. And that takes a little bit of gall to do that right. >> Probably the best way is showing how you can do as many videoconferences and calls and what have you but also bringing a machine to their premises and instead of having a discussion with just the chief security officer or the director of physical security or whatever it's like hey the robots here and 50 people come streaming downstairs and it's purchasing it's legal it's finance it's the CFO it's everybody who has a stake somehow of this new massive device patrolling their campus. So you get that by in that way and then now that we've got a track record of crime fighting becomes a little bit easier. >> So we've had in some cases of criminal incidents where a client is experiencing one to two vehicle thefts assaults battery you name it on the premises. We put the machine there and for the last year it's all gone down to zero. As was a Mercedes and mentioned earlier and that makes a big impact. Now when the staff says or the guards this area is so crime ridden I won't even patrol. Now this machines come here and actually made the environment that much safer. They're going to renew that contract. Right. And so the adoption starts getting stronger. Just from our own winds. And so we've now been in service and long enough they're starting to get renewals and renewals are based on merit. We had five break ins or negative things happen a month. Now it's gone down to 2 to 1 0. That makes a huge difference and it's extremely cost effective. >> Now what happens I just want to say it is a really rough neighborhood and your and your machine is patrolling in the parking lot. Certainly some bad guys must come up NATO with a baseball bat or something. I mean there's got to be a tough kind of initial reaction of some of these rough neighborhoods. I mean how do they respond. >> So you want to think of this as two different things. One these are tools for the guards to use. So majority of the clients are looking at this as adding additional capability a force multiplier to get really smart eyes and ears for the security guards to cover more ground and be able to do their jobs again more much more effectively in some cases the physical presence deters a lot of the behavior. So simply if I put a marked law enforcement vehicle in front of your home or your office right. Criminal behavior changes right. Most of these guys, and they're mostly guys, are literally just trying to get away with something and looking for the path of least resistance least resistance right. You walk up like you did today. You pull into a parking lot. I have no idea what this thing does. I don't know what it's recording like. I'll go. All right. And that's exactly what happens. And so clients get to see that that there is a net positive brand enhancing effect. So manufacturing plant a puts one in Kentucky is like hey this is kind of working. Let me call my sister plant in Mississippi. Right. And let's put one there you know mall a in San Jose decides you know this is actually working really well. These guys have helped us a lot. In one case for a different client we were able to have a law enforcement agency and issuing an arrest warrant for a sexual predator. Right. That's a huge win for us to be able to do that or there was a someone that showed up with a shotgun to basically steal someone's car. We captured all the video and everything else that nothing above 12 stories looking at the top of your head is going to be very helpful in doing gave the evidence to law enforcement. The guy was caught before he crossed the state state line. We helped the security guard apprehend thief in a retail environment. The list goes on and on and on. So you start having those kinds of wins. The next mall calls up and says Hey I heard things went really well here. How can we get a couple over here. Right. And that's that's where we are now are starting to really accelerate the growth of the company. So I would be remiss if I didn't ask the obligatory security question terms of getting act so. >> High tact everyone who wants to hack the machine they can't get a home. A little bit that kind of how's the communications work. Do they work autonomously. Do they work in teams. And you know clearly someone's going to sit outside with the laptop and on their second trip back to the parking lot. I'm going to crack this code. >> So we try to do a few things one because we don't sell these things outright. They're always in our control. Just as a basic advantage there. Second we change it often. So that gives us another advantage. Third the teams working on hardening a lot of the stuff making making sure stuff's encrypted encrypted and we only transfer a certain amount though we really need or don't need type of things and then we hire white hack a white hat hackers to try to hack the system and we make the changes accordingly. Everything as you know is hackable but we try to do our job as best possible to make these systems as secure as possible. >> So for the not-hacker, at the mall deployment, I mean how should people interact with these things how do people interact with these things in an environment where it's not necessarily the security guard who is trained and knows exactly what the capabilities are but just kind of in the wild weather be in a parking lot or at the mall I think is a bunch of stuff. >> First it's a kid magnet right. So parents can now explain in the real world why you should probably be studying math and science and yes which is an engineering is a really good thing. Second we're about to release in production a concierge's feature that allows a two way dialogue between the human and the machine. So you know walls closing in 30 minutes or where is Macy's or you know what jeans are on sale today. That sort of thing. You can also do that for authentication at a entrance for manufacturing facility. So let's say there's a K1 stationed at the entrance for a manufacturing plant of transmission parts 18 wheeler shows up at 3:00 in the morning. Compress the intercom button to a dialogue get authenticated. We have the plates we've got all the other signatures that we need. Digital or otherwise to allow that that truck in. All right. So there's all kinds of opportunities again to give the guards much more capability. So go back to the math. You have 2 million guards and officers trying to secure 300 million people across 50 states. I don't care what math you're going to come up with. It doesn't work. And by the way the population keeps growing and that taxpayers can't afford funding this stuff. You need something that's going to be the game changer in this is that game changer. Crime has a trillion dollar negative economic impact on the U.S. every single year. It's a hidden tax we all pay in blood tears and treasure and somehow society has found it acceptable that at these levels it's OK. And I don't know about you but I'm sick and tired of waking up every morning looking on my news feed to find some horrific thing happened again. And what do our political leaders do. We extend our thoughts and prayers. Hey listen buddy. No amount of thoughts and prayers are going to fix this problem. I've got a team of very dedicated engineers and patriots here working on trying to actually fix the problem so we have the honor and privilege to be able to do that every single day here in Silicon Valley. >> Well the the passion comes through Bill and clearly it's a very important mission and congrats on the new funding and I can't wait to see you deployed. >> Appreciate it. >> All right. He's Bill, I'm Jeff. We're at Nightscope. Check it in Mt. View, Thanks for watching. We'll catch you next time.