>> From the Amazon Meeting Center in Downtown Seattle, it's the theCUBE. Covering, Imagine: A Better World, a global education conference, sponsored by Amazon Web Services. >> Hey welcome back everybody. Jeff Rick here with theCUBE. We're in Downtown Seattle Washington at the AWS Imagine Education Conference. First one they've ever done about 900 registrants. People from over 20 countries are here. Theresa Carlson gave the kickoff and it's a pretty exciting event. We've seen this movie before with Amazon. They get involved in a project, and it grows and grows and grows. So this is all about education. It's about education institutions. It's about students obviously, which are the core of education, and we're really excited to have our next guest. It was a big announcement that happened today. He's Marvin Martinez, the President of East Los Angeles College. Marvin great to see you. >> Thank you, pleasure to be here. >> So you're getting ready to go up on stage. it's a big announcement so tell about what it is. It's called the California Cloud... >> Computing. >> Computing Initiative. >> So this is what we've done. We've been developing for the last year a certificate where students can take a number of classes, which is basically a total of 15 units, and they're able to earn at the end of 15 units, a certificate in cloud computing. And the goal is to get them trained quickly to get them out to work quickly. Eventually we hope that the certificate evolves into a degree program, so then we're hoping that the students come back and they get their associate of our certificate and they're able to get even a better job, which is really the goal of this program is we want to get them started, want to get them excited, get them into an entry-level type of job, then they will know they like it. They're going to come back. They'll get that degree, you know do even better right. >> So let me, I just want to make sure I get this. This is a California Cloud Workforce Project. So it's really about the workforce and giving these kids the skills. So it's funny though Marvin where everybody says technology is taking away jobs. They forget yeah they take away some jobs, but there's new jobs created. >> All the time. >> All the time, there's a ton of openings especially in the engineering field and in the cloud, but so what are some of the cloud skills specifically that that kids are taking to get the certificate? >> Well you know the skills they're taking specifically so they could eventually work with some of the major industries in our area. Obviously from Amazon and other similar industries and similar businesses, and there's many of them. Los Angeles you know quickly is becoming the new Silicon Valley. So a lot of industries are moving. They call us all the time, they call me all the time, and say that you have trained students. We will hire them right now and we'll pay them a good salary. So no doubt it's a motivation for us because that's who we are as community colleges. We are here to serve students. We are here to get them trained, get them up there quickly and respond to the needs of industry, that area. >> So it's a really interesting planning that it's the community colleges that you guys have all come together. I think the number's 19 as part of this. So A, you know that you're doing it as a unified effort. So kids at a broad area can take advantage, and also you're also partnering with individual high schools. Each Community College is partners with an individual high school. So how does that work? How does that kind of come into fruition? >> Well you know, one thing that we want to do is that as we work with high schools, high schools today are also under pressure to ensure that their students are being trained well and that if they just get a high school diploma they can go and work somewhere. But also today high schools are getting smart. They're saying hey how do we work with a local college so that when students graduate, they graduate with a high school diploma and a degree from a college. So and why are they doing that because they know in order to be competitive, a young person needs to have these degrees. Today if you want to be competitive a high school diploma may not be enough. So we notice that motivation there. Secondly we're able to get students on a college campus, get them developed get them, they're mature, get them to take a college-level course and then they're able to go out and obviously and work once they complete this program. So the relationship is a natural one. It's one that high schools are seeking from us, which is great. That has not been the case all the time. Usually we've gone to them, but now they're coming to us and saying we need you help us out. >> The part I like about it too is the kids are smart. And they're like why am I taking philosophy? How am I going to use philosophy in my job, that or why am I taking this or why am I taking that? These are really concrete skills that A, they can go look in the newspaper today or I guess I don't know if they look in newspaper for jobs because couldn't find a newspaper if you threw it at them, but they could go seek the job listings at the Amazon sites and also they are working with this technology, they live in this technology, so it's not something foreign or something new. It's something they experience every day. So it's got to be a pretty easy sell I would imagine. >> It's an easy sell. Young people today are different than the way that we grew up. I grew up at a time where there were no cell phones, there was no bottled water. It was a whole different time. Young people today as you're seeing grow up with these technologies. It's part of the who they are. They more than just embraced it. So they welcome to use it in any way they can. So when we propose programs like these, guess what happens? They enroll en masse and that's because they understand it. They identify with it. Will they be willing to enroll in a Shakespeare class? They might but not as much as a class like this one. So no doubt the population today has changed, so part of my job is to introduce programs on the campus that I know will generate that kind of enrollment and interest. So we know that a program like this will do that and we just need to recognize the fact that the world has changed. Let me just add that we don't do that world's education institutions. As institutions we're some of the most conservative institutions in the history of this country. So for us to change it takes quite a lot. So what's forcing us to change, what was forcing us to change is that enrollment is down and not just in many of our colleges in LA but throughout the country. Enrollment is-- >> In Community colleges generally or colleges in general? Community colleges. >> Community colleges throughout the nation enrollment is down. And enrollment is down for a number of reasons. There's more jobs out there, so students are looking to go out and work, but also enrollment is down because of the curriculum and the courses that we have are just not interesting to them. So I think a program like this will help the campus. A program like this will get more students to come and take advantage of an incredible education that they can get at our campuses. >> I was just curious kind of what were the drivers of enrollment before that have kind of fallen away? Was it a particular type of skill set? Was it just that they don't want it generic anymore? They got to go get a job? I'm just curious if there was something that you had before that was appealing that you have now that's just not appealing anymore? >> Good questions. So the last time our economy was in bad shape when the employment was down. That was back around 2008-2009. Well guess what happened in our campuses? Enrollment was up. So when the economy is in bad shape people come back to school. When the economy is in great shape like it is today where there is a lot of jobs, enrollment is down. So we don't see the economy going down at all in a number of years. >> Anytime soon. >> So we have to develop programs that we think will be of interest to students first. Secondly we have to respond to the needs of the new economy. The new economy is now being dominated by these new technologies. We know about it, young people know about it. So when we develop a program like this and we know that it will generate interest. It will generate enrollment. And in many ways that's what drives the funding for a college. We're funded on the basis of how many people we enroll. So if we don't enroll a lot people, we have less money, so no doubt there's a motivation for us, a motivation for the entire system, to really partner with Amazon. And figure out a way for us to really get students train and to get them, hopefully get them a good job. >> So you segued perfectly. My last question was going to be kind of the role of Amazon in AWS, in terms of being a partner. I mean they obviously you know are thinking about things. Theresa's fantastic. She just talked about being from an education family, but at the same time you know they have their own reasons to do it. They need workers right? They need people to fill these jobs to fulfill Amazon's own growth beyond their ecosystem, their partners and customers etcetera. So what does it mean for you as an educator and part of this consortium of community colleges to have somebody like AWS come in and really help you codevelop and drive these types of new programs? >> Well it means everything. Number one we know that Amazon is a major employer. We know that the jobs that they have available are good-paying jobs. They have a career path and so we know it's a good direction for young people to take. So part of my job as an educator is many ways it's like a parent. You want to take care of your family, you want to take care of the kids and put them in the right path so they have the most success possible. Amazon offers that kind of path. So for us to partner with someone like Amazon is great. Secondly, students know who Amazon is. I don't have to sell them. They know who they are, and they know what Amazon can do and they know that it's a great career path for them. So now that I think it could be a great partnership for us but also it's an opportunity for Amazon to even continue further developing that workforce in Los Angeles in California. >> Alright Marvin, well thank you so much for spending a few minutes and I wish you nothing but the best with this California Cloud Workforce Project. Make sure I get it right? >> It's right. Thank you so much, I appreciate it. >> Thank you, alright he's Marvin, I'm Jeff. You're watching theCUBE. We're in Seattle at the Amazon Imagine Education event. First time ever, keep watching. It's going to grow and grow and grow. Thanks for watching. (electronic music)

>>from around the globe, it's >>the cube >>With digital coverage of IBM think 2021 brought to you by IBM Hello welcome back to the cubes coverage of IBM Think 2021. I'm john for your host of the cube had a great conversation here about cloud data, AI and all things. C X O from KPMG is Vinod Swaminathan who's the strategy head of strategy of Ai data and cloud as well as the C. I. O advisory at KPMG you know thanks for coming on the cube. >>My pleasure jOHn thanks for having me. >>So you guys have an interesting perspective, you sit between the business value being created from technology and the clients trying to put it to work um and KPMG impeccable reputation over the years obviously bringing great business value to clients. You guys do that. Um you're in the middle of the hot stuff cloud data and Ai um Ai is great if you have the data and the architecture do that in cloud scale brings so many new good things to the table. Um how is this playing out right now in your mind because we're here at IBM think where the story is transformed, transformation is the innovation. Innovation does set the table for net new capabilities at scale. This seems to be a common thread here. What's your take on the current situation? >>Well, let me start with the fundamental premise that we're seeing playing out with many of our clients and that is, clients are beginning to connect the different silos within their business to better respond to what their customers are asking for. Um you know, we we tend to work with large enterprises, very well established businesses and we're also fortunate to serve the needs of high growth companies as well. So we're in a very unique position as a trusted advisor to both legacy companies transforming and high growth companies looking to drive the transformation in the industry as well. So there are a few things that we're seeing right the first and foremost is responding quickly and effectively to very rapidly changing customer needs. And I think the pandemic really you know put a spotlight on how fast organizations had to pivot and I have to commend a lot of these organizations and doing a phenomenal job, I would argue, spit band aiding and gluing together a response to what their customers expected. Right? So as I look at post pandemic, we're seeing a lot of clients now looking to take stock of things that they did during the pandemic, how they address customer demand to really smooth them out and streamline as a strategy, how they're going to become more customer driven at KPMG. We call this the connected enterprise where you really work effectively across the front, middle and back office in an enterprise to seamlessly address the client. Right? Anything you do in finance really is driven by what your customers want. It's no longer, hey finance sit in the back office, right. Anything you do in marketing is no longer hey I'm doing it just to address the demand side of the equation, right? It's very integral to connect marketing with fulfillment. Right? So we call this the connected enterprise. So that transformation is only possible if customers and our clients are able to effectively leverage cloud from an architectural perspective. And when I say cloud, what we're seeing, smarter clients of ours start to think about is cloud in its entirety. So it's not just the public cloud, it's the cloud architecture, right? The ability to scale up scale out right scale down, right, irrespective of where all of this sits from an infrastructure perspective. So cloud is very critical for becoming that connected enterprise. Uh The data pieces integral, I think the data business today represents trillions of dollars. I think everybody has bought into the fact that data is the new oil and all of that good stuff that we've heard. Uh but it really is a trillion dollar business and it has some unique challenges. So being connected requires, right? That are that an enterprise become very data driven? I think it's hard to escape ai it's everywhere. To the point where we don't even uh we're not even conscious of ai at work, Right? So I think uh five years ago a I was a novel concept today. It's the expectation of customers who interact with big brands that ai is an integral part of how they are being served. Right, So cloud data ai architecture sort of the ingredients if you will. And then cool technology really starts to bring this connected concept together and post pandemic. We're going to start to see a lot of rationalization uh and big investments and moving forward in this trajectory. >>It's interesting cloud data now you, the way you talk about it makes me think about like just the constant of the old Os I stack right? You have infrastructure and cloud, you have data in the middle layer and then A. I. Is that that wonder area where the upside takes advantage of that data? Um Very cool insight. You know. Thanks for sharing that. The question I have for you put the pandemic I want to get your reaction to some conversations I've had in the industry and they tend to go like this. Um When we come out of the pandemic this is like a C X. O. Talking to Ceo. Or C. I. O. Or C. So when we come out of the pandemic we need a growth strategy, we need to be hidden, we need to be on the upswing, okay, not on the downswing or still trying to figure it out. Um And and that's a cool conversation because there's been to use cases that we've identified companies that had no has had a headwind because of the pandemic, either because of business disruption or the second categories, they've had a tail when they had a business opportunity. So the ones that had a headwind, they would retool, they used the pandemic to retool and the ones that had the tailwind would use the pandemic to either bring net new capabilities or or transform and innovate. So either way that's a successful use case. The ones who didn't do anything aren't going to survive much. We know that, but in those two cases they're not mutually exclusive. That's what the smart money's been doing. The smart teams. What's your advice now that we're in that mode where we're coming around the corner? How do companies get on that uptick? What have you guys advise into clients? What are you hearing and what, what's your reaction to that concept? >>Well, I think every company that is going to be on the survivors list post pandemic actually has digitally transformed, um, you know, even if they don't want to acknowledge it right in a lot of different ways. Um, so I think that's here to stay. Um, what I, and I'll give you a simple example, um, you know, I, I belong to a local club, you know, kitchen shut down, you know, no activities. I was amazed that it took them only four days John four days to actually bring a digital reservation system online through their mobile app. So in the past, the mobile app was simply for me to go look at the directory. But now I can do so many more things. Right? And I was talking to my club CI. All right. I mean, really not a C I. O. But you know, it was uh, it was, it was a staff member who was charged with driving the digital transformation. So there you go >>right to consult you, you know. >>Um, but what he talked to me about was fascinating. And this is what we're going to see, right? So first he said, another was so easy to bring some of those, you know, interactive experience type capabilities online to serve our customer base. It made us think, why the hell didn't we do it before? Alright, so, back to your question, I think post pandemic, we're going to see a lot of companies recognizing that low code, no code, right? Cloud AI capabilities are very much within the reach of the average business user, right? In companies like IBM have done a phenomenal job of demystifying the technology and trying to make it much more accessible for the business user. We're going to see continued momentum, right? And adopting these kinds of simple technologies to transform right business processes, customer interaction, so on and so forth. Right? So we we see that coming out of the pandemic, there's no stopping that. I think the second thing we see is a very firm commitment at the leadership level um that you know, stopping or slowing down these kinds of activities is a non starter at the board level. That's a nonstarter at the management committee level, right? Don't come to me saying we need to slow down things. Come to me saying we need to speed up things, right? But that said, we're seeing rationalization, conversations begin to happen and that starts with the strategy, right, tailwind or headwind, irrespective of which side of the equation you fell right in that, in that dynamic, what we're seeing is clients coming back and saying, all right, we know our strategy needs to be different. Let's make sure that we have a strategy that aligns better with um where our customers want to go, where the industry is headed. And let's acknowledge that there are technological capabilities now, but actually turbocharge the execution of the strategy. Technology is not the strategy, it's still connected enterprise thought, How do I serve my customers whose expectations have dramatically changed coming out of the pandemic? And that's why I gave you the club example. I never want to call anybody to make a reservation anymore. I mean even the local hair salon has a queuing system and a reservation system because you know, that's just the way it is. Right? So there are some simple things that have happened on the customer side of uh, you know, the equation, which is forcing a lot of our clients to start, you know, accelerating their digital investments. Um, you know, rather than decelerating, >>it's interesting. That's great insight. I think just to summarize that, I think you're pointing out is the obvious, hey, it works the indifference of the digital to go the next level and see X. O. S and C I. O. S have had, you know, either politics or blockers or just will it work? And I think with the pandemic necessity is the mother of all inventions. You say, hey, we got to get back on business that the economics and the user experience is more than acceptable. It's actually preferred. I think that club example really highlights that expectation change and I >>think that's an interesting architecture discussion right? And I don't mean that technically I think businesses are starting to think about how are they architected, right. And this is where the connected enterprise concept from KPMG is resonating because now you know, we see our clients no longer thinking about finance, sales, marketing, right? And fulfillment right? That's how the architect of their business. Before now they're realizing that they need to sort of put it on its side. Right, I love the cube analogy, I'm going to borrow it, they're flipping the cube on the side and pulling out a whole new business architecture which by the way is enabled and supported by an underlying technology architecture that's very different. Right? So I think businesses are going to get re architected in technology companies like IBM and Red Hot are going to be right there helping clients go through that re architected along with partners like us, >>the script has been flipped, the cube has been turned and I think this was the revelation. The economics are clear. So I gotta ask you, I mean I've always been I've been joking with IBM the president like it, but I've been saying that, you know, business now is software enabled and the operating systems, distributed computing. As you mentioned, these subsystems are part of this fabric and red hat there and operating systems company. Um, so kind of in a good position with what Marvin's doing. If you think about if you look at squint through and connect the dots, I mean you're looking at an underlying operating system that's open and connected to business, it's not just software apps that run something like an ear piece system, it's an business software model for the entire company completely instrumented. This is what hybrid cloud is. Could you, could you take a few minutes to talk about the relationship that you guys have with IBM on how you guys are working together to bring this hybrid cloud vision to their customers into the market. >>So KPMG and IBM go back about 20 plus years long standing relationship. Um in fact, I kid around with many of my fellow partners here at KPMG that IBM is the only relationship that we did not divest off when we went through our let's flip management consulting off from our accounting business, so on and so forth that everybody went through. Right? So very long standing relationship, you know, we're a trusted partner of IBM but we're very different from a lot of the partners that IBM has were business consultants, right? We don't have, you know, we help clients think through their business first before we get into the technology implementation. So I don't have armies of IBM certified engineers sitting on the bench looking for work to do. It's actually the other way around. Right? So it's been a great marriage when IBM has phenomenal technology in this case, you know, they have been leaders in AI, we've got an AI based relationship now going back five years, um you know, where we consumed Watson proved to ourselves and the world that it can be done very innovatively supporting business transformation. And now we're able to together with IBM effectively have that conversation with clients, right? Because we're client number zero, uh we're big into a hybrid, multi cloud, um you know, we're big red hat customers. Uh you know, we use red hat in our own modernization of several different workloads. So our relationship with IBM is very strong, were a good supplier to them as well, so we help them with their strategy and go to market as well. So an interesting sort of relationship. Um look when we work with clients, we typically tend to, you know, take a trusted advisor role with clients. Our brand speaks to the trust that we're able to bring when we talk to clients. Uh I kid around um you know, when you're going through a transformation, you probably want the town skeptic holding your hand. That's us, right? We're very risk averse. We like working with clients who you know, kind of want that, you know, critical look when they're investing in technology driven transformation. Um you know, some of the things that IBM has done is pretty phenomenal. Right? So for example, I don't see um you know, I don't see a lot of providers out there who give clients the kind of options that IBM gives with their multi cloud capabilities. Right? So show me conversational ai capability that can run on private cloud, that can run on google amazon IBM and a whole bunch of other cloud providers. Right, So I think as IBM invests in that open right philosophy and obviously the Red hat acquisition only further enhances that. Right, um it's a great opportunity for us to be able to take very powerful KPMG value propositions um you know, enabled by this kind of IBM technology. Right, so that's how we tend to go to market. Um one of the solutions were offering with IBM is called the KPMG data mesh. It's built on IBM cloud pack for data, which is enabled by red hats open shift and it's a very innovative solution in the marketplace that fundamentally asked the question to clients, why are you spending inordinate amount of time and resources moving data around in order to become data driven? Uh it just amazes me john how much money is being thrown at, you know, moving data around, particularly as you get into this complex hybrid, multi cloud world. Right. How many times am I going to move data from, you know, a mainframe database into my, you know, cloud repository before I can start doing uh, you know, real higher value work. Right, So KPMG data mesh enabled by the IBM cloud back, the data says, hey, legal data, wherever it is. You know, we can take up to 30 of costs out and really get you on this journey to become data driven without spending the first nine months of every project building a data warehouse or building an expensive data where data lake. Right? Because all of those, frankly our 20th century mindset, right? So if I can leave the data where it is your favorite terminology virtually is the data and really focus on what do I do with the data as opposed to you know, how do I move the data? Right. It really starts to change the mindset around becoming data driven. Right, so that's a great example of a solution where we've married our value proposition to clients around connected and trusted and leveraged IBM technology right? In a hybrid multi cloud >>but no great insight. Love the focus. Hybrid cloud, congratulations on your KPMG mesh solution. Their cloud mesh awesome. Taking advantage of the IBM work and love your perspective on the industry. I think you you called it right. I think that's a great perspective. That's the way we're on big transformation innovation wave. Thanks for coming on the key. Appreciate it. >>Absolutely my pleasure. Thanks for having me have a good day. >>Okay, Cube coverage of IBM think 2021. I'm John for your host of the Cube. Thanks for watching.

>>from around the globe, >>it's the cube with digital coverage of IBM >>Think 2021 brought to you by IBM Hello welcome back to the cubes coverage of IBM Think 2021. I'm john for your host of the cube had a great conversation here about cloud data, AI and all things. C X O from KPMG is Vinod Swaminathan who's the strategy head of strategy of Ai data and cloud as well as the C. I. O advisory at KPMG you know thanks for coming on the cube. >>My pleasure jOHn thanks for having me. >>So you guys have an interesting perspective, you sit between the business value being created from technology and the clients trying to put it to work um and KPMG impeccable reputation over the years obviously bringing great business value to clients. You guys do that. Um you're in the middle of the hot stuff cloud data and Ai um Ai is great if you have the data and the architecture do that in cloud scale brings so many new good things to the table. Um how is this playing out right now in your mind because we're here at IBM think where the story is transformed, transformation is the innovation. Innovation does set the table for net new capabilities at scale. This seems to be a common thread here. What's your take on the current situation? >>Well, let me start with the fundamental premise that we're seeing playing out with many of our clients and that is, clients are beginning to connect the different silos within their business to better respond to what their customers are asking for. Um you know, we we tend to work with large enterprises, very well established businesses and we're also fortunate to serve the needs of high growth companies as well. So we're in a very unique position as a trusted advisor to both legacy companies transforming and high growth companies looking to drive the transformation in the industry as well. So there are a few things that we're seeing right the first and foremost is responding quickly and effectively to very rapidly changing customer needs. And I think the pandemic really, you know put a spotlight on how fast organizations had to pivot and I have to commend a lot of these organizations and doing a phenomenal job, I would argue, spit band aiding and gluing together a response to what their customers expected. Right? So as I look at post pandemic, we're seeing a lot of clients now looking to take stock of things that they did during the pandemic, how they address customer demand to really smooth them out and streamline as a strategy, how they're going to become more customer driven KPMG. We call this the connected enterprise where you really work effectively across the front, middle and back office in an enterprise to seamlessly address the client. Right? Anything you do in finance really is driven by what your customers want. It's no longer, hey finance sit in the back office, right. Anything you do in marketing is no longer hey I'm doing it just to address the demand side of the equation, right? It's very integral to connect marketing with fulfillment. Right? So we call this the connected enterprise. So that transformation is only possible if customers and our clients are able to effectively leverage cloud from an architectural perspective. And when I say cloud, what we're seeing, smarter clients of ours start to think about is cloud in its entirety. So it's not just the public cloud, it's the cloud architecture, right? The ability to scale up scale out right scale down, right, irrespective of where all of this sits from an infrastructure perspective. So cloud is very critical for becoming that connected enterprise. Uh The data pieces integral, I think the data business today represents trillions of dollars. I think everybody has bought into the fact that data is the new oil and all of that good stuff that we've heard. Uh but it really is a trillion dollar business and it has some unique challenges. So being connected requires, right that are that an enterprise become very data driven? I think it's hard to escape ai it's everywhere to the point where we don't even uh we're not even conscious of ai at work, Right? So I think uh five years ago a I was a novel concept today. It's the expectation of customers who interact with big brands that ai is an integral part of how they are being served. Right? So cloud data ai architecture sort of the ingredients if you will. And then cool technology really starts to bring this connected concept together and post pandemic. We're going to start to see a lot of rationalization uh and big investments and moving forward in this trajectory. >>It's interesting cloud data now you, the way you talk about it makes me think about like this the constant of the old Os I stack right? You have infrastructure and cloud, you have data in the middle layer and then A. I is that that wonder area where the upside takes advantage of that data? Um Very cool insight. You know, Thanks for sharing that. The question I have for you put the pandemic I want to get your reaction to some conversations I've had in the industry and they tend to go like this. Um when we come out of the pandemic this is like a C X O. Talking to Ceo. Or C. I. O. Or C. So when we come out of the pandemic we need a growth strategy, we need to be hidden, we need to be on the upswing, okay? Not on the downswing or still trying to figure it out. Um And and that's a cool conversation because there's been to use cases that we've identified companies that had no has had a headwind because of the pandemic either because of business disruption or the second categories, they've had a tail when they had a business opportunity. So the ones that had a headwind, they would retool, they used the pandemic to retool and the ones that had the tailwind would use the pandemic to either bring net new capabilities or or transform and innovate. So either way that's a successful use case. The ones who didn't do anything aren't going to survive much. We know that, but in those two cases they're not mutually exclusive. That's what the smart money's been doing. The smart teams. What's your advice now that we're in that mode where we're coming around the corner? How do companies get on that uptick? What have you guys advise into clients? What are you hearing and what, what's your reaction to that concept? >>Well, I think every company that is going to be on the survivors list post pandemic actually has digitally transformed, um, you know, even if they don't want to acknowledge it right in a lot of different ways. Um, so I think that's here to stay. Um, what I, and I'll give you a simple example, um, you know, I, I belong to a local club, you know, kitchen shut down, you know, no activities. I was amazed that it took them only four days John four days to actually bring a digital reservation system online through their mobile app. So in the past, the mobile app was simply for me to go look at the directory. But now I can do so many more things. Right? And I was talking to my club CI. All right. I mean, really not a C I. O. But you know, it was uh, it was, it was a staff member who was charged with driving the digital transformation. So there you go. >>Good consultant, you, you know, uh >>but what he talked to me about was fascinating. And this is what we're going to see. Right? So first he said, another was so easy to bring some of those, you know, interactive experience type capabilities online to serve our customer base. It made us think, why the hell didn't we do it before. Alright, so, back to your question, I think post pandemic, we're going to see a lot of companies recognizing that low code, no code, right? Cloud AI capabilities are very much within the reach of the average business user, right? In companies like IBM have done a phenomenal job of demystifying the technology and trying to make it much more accessible for the business user. We're going to see continued momentum, right? And adopting these kinds of simple technologies to transform right business processes, customer interaction, so on and so forth. Right? So we we see that coming out of the pandemic, there's no stopping that. I think the second thing we see is a very firm commitment at the leadership level um that you know, stopping or slowing down these kinds of activities is a non starter at the board level. That's a nonstarter at the management committee level, right? Don't come to me saying we need to slow down things, Come to me saying we need to speed up things, right? But that said, we're seeing rationalization, conversations begin to happen and that starts with the strategy, right, tailwind or headwind, irrespective of which side of the equation you fell right in that, in that dynamic, what we're seeing is clients coming back and saying, all right, we know our strategy needs to be different. Let's make sure that we have a strategy that aligns better with um where our customers want to go, where the industry is headed. And let's acknowledge that there are technological capabilities now, but actually turbocharge the execution of the strategy. Technology is not the strategy, it's still connected enterprise thought. How do I serve my customers whose expectations have dramatically changed coming out of the pandemic? And that's why I gave you the club example. I never want to call anybody to make a reservation anymore. I mean, even the local hair salon has a queuing system and a reservation system because you know, that's just the way it is, Right? So there are some simple things that have happened on the customer side of uh, you know, the equation, which is forcing a lot of our clients to start, you know, accelerating their digital investments. Um, you know, rather than decelerating, >>it's interesting. That's great insight. I think just to summarize that, I think you're pointing out is the obvious, hey, it works the indifference of the digital to go the next level and see X O. S and C I O. S have had, you know, either politics or blockers or just will it work? And, and I think with the pandemic necessity is the mother of all inventions. You say, hey, we got to get back on business that the economics and the user experience is more than acceptable. It's actually preferred. I think that club example really highlights that expectation change and I >>think that's an interesting architecture discussion right? And I don't mean that technically I think businesses are starting to think about how are they architect right. And this is where the connected enterprise concept from KPMG is resonating because now you know we see our clients no longer thinking about finance, sales marketing right and fulfillment right? That's how the architect of their business before now they're realizing that they need to sort of put it on its side. Right, I love the cube analogy, I'm going to borrow it, they're flipping the cube on the side and pulling out a whole new business architecture which by the way is enabled and supported by an underlying technology architecture that's very different. Right? So I think businesses are going to get re architected in technology companies like IBM and Red Hot are going to be right there helping clients go through that re architected along with partners like us. >>The script has been flipped and the cube has been turned and I think this was the revelation. The economics are clear. So I gotta ask you, I mean I've always been I've been joking with IBM the president like it, but I've been saying that, you know, business now is software enabled and the operating systems, distributed computing. As you mentioned, these subsystems are part of this fabric and red hat there and operating systems company. Um so kind of in a good position with what Marvin's doing. If you think about if you look at squint through and connect the dots, I mean you're looking at an underlying operating system that's open and connected to business, it's not just software apps that run something like an ear piece system, it's an business software model for the entire company completely instrumented. This is what hybrid cloud is, could you, because you take a few minutes to talk about the relationship that you guys have with IBM on how you guys are working together to bring this hybrid cloud vision to their customers and to the market. >>So KPMG and IBM go back about 20 plus years long standing relationship. Um In fact, I kid around with many of my fellow partners here at KPMG that IBM is the only relationship that we did not divest off when we went through our let's flip management consulting off from our accounting business, so on and so forth that everybody went through, right? So very long standing relationship, you know, we're a trusted partner of IBM well we're very different from a lot of the partners that IBM has were business consultants, right? We don't have, you know, we help clients think through their business first before we get into the technology implementation. So I don't have armies of IBM certified engineers sitting on the bench looking for work to do. It's actually the other way around. Right? So it's been a great marriage when IBM has phenomenal technology in this case. You know, they have been leaders in AI, we've got an AI based relationship now going back five years, um you know, where we consumed Watson proved to ourselves and the world that it can be done very innovatively supporting business transformation. And now we're able to, together with IBM effectively have that conversation with clients, right? Because we're client number zero, uh we're big into a hybrid, multi cloud, um you know, we're big red hat customers. Uh you know, we use red hat in our own modernization of several different workloads. So our relationship with IBM is very strong, were a good supplier to them as well, so we help them with their strategy and go to market as well. So an interesting sort of relationship. Um look, when we work with clients, we typically tend to, you know, take a trusted advisor role uh with clients, our brand speaks to the trust that we're able to bring when we talk to clients. Uh I kid around um you know, when you're going through a transformation, you probably want the town skeptic holding your hand. That's us, right? We're very risk averse. We like working with clients who you know, kind of want that, you know, critical look when they're investing in technology driven transformation. Um you know, some of the things that IBM has done is pretty phenomenal. Right? So for example, I don't see um you know, I I don't see a lot of providers out there who give clients the kind of options that IBM gives with their multi cloud capabilities. Right? So, you know, show me conversational ai capability that can run on private cloud, that can run on google amazon IBM and a whole bunch of other cloud providers. Right? So I think as IBM invests in that open right philosophy and obviously the red hat acquisition only further enhances that, right, um it's a great opportunity for us to be able to take very powerful KPMG value propositions um you know, enabled by this kind of IBM technology, Right? So that's how we tend to go to market. Um one of the solutions were offering with IBM is called the KPMG data mesh. It's built on IBM cloud pack for data, which is enabled by red hats open shift and it's a very innovative solution in the marketplace that fundamentally asked the question to clients, why are you spending inordinate amount of time and resources moving data around in order to become data driven? Uh it just amazes me john how much money is being thrown at, you know, moving data around, particularly as you get into this complex hybrid, multi cloud world. Right. How many times am I going to move data from, you know, a mainframe database into my, you know, cloud repository before I can start doing uh real higher value work. Right, So KPMG data mesh enabled by the IBM cloud packed the data says, hey, legal data, wherever it is. You know, we can take up to 30 of costs out and really get you on this journey to become data driven without spending the first nine months of every project building a data warehouse or building an expensive data where data lake, Right? Because all of those, frankly our 20th century mindset, right? So if I can leave the data where it is, your favorite terminology virtually is the data and really focus on what do I do with the data as opposed to, you know, how do I move the data? Right. It really starts to change the mindset around becoming data driven. Right, so that's a great example of a solution where we've married our value proposition to clients around connected and trusted and leveraged IBM technology. Right? In a hybrid multi cloud one, >>you know, a great insight, love the focus. Hybrid cloud, congratulations on your KPMG mesh solution, their cloud mesh, awesome. Taking advantage of the IBM work and love your perspective on the industry. I think you you called it right? I think that's a great perspective. That's the way we're on big transformation innovation wave. Thanks for coming on the key, appreciate it. >>Absolutely my pleasure. Thanks for having me have a good day. >>Okay, Cube coverage of IBM think 2021. I'm John for your host of the Cube. Thanks for watching. Mhm >>mm.

>>Hi, everyone. Good afternoon. Thank you for joining this session. I feel honored to be invited to speak here today. And I also appreciate entity research Summit members for organ organizing and giving this great opportunity. Please let me give a quick introduction. First, I'm a Takashi from Marvin American population, and I'm leading technology scouting and global ation with digital health companies such as Business Alliance and Strategically Investment in North America. And since we started to focus on this space in 2016 our team is growing. And in order to bring more new technologies and services to Japan market Thesis year, we founded the new service theories for digital health business, especially, uh, in medical diagnosis space in Japan. And today I would like to talk how health care has been transformed for my micro perspective, and I hope you enjoy reasoning it. So what's happened since the US identify the first case in the middle of January, As everyone knows, unfortunately, is the damaged by this pandemic was unequal amongst the people in us. It had more determined tal impact on those who are socially and economically vulnerable because of the long, long lasting structural program off the U. S. Society and the Light Charity about daily case rating elevator country shows. Even in the community, the infection rate off the low income were 4.5 times higher than, uh, those of the high income and due to czar straight off the Corvette, about 14 million people are unemployed. The unique point off the U. S. Is that more than 60% of insurance is tied with employment, so losing a job can mean losing access to health care. And the point point here is that the Corvette did not create healthcare disparity but, uh nearly highlighted the underlying program and necessity off affordable care for all. And when the country had a need to increase the testing capacity and geographic out, treat the pharmacies and retails joined forces with existing stakeholders more than 90% off the U. S Corporation live within five miles off a community pharmacy such as CVS and Walgreen, so they can technically provide the test to everyone in all the community. And they also have a huge workforce memory pharmacist who are eligible to perform the testing scale, and this very made their potential in community based health care. Stand out and about your health has provided on alternative way for people to access to health care. At affordable applies under the unusual setting where social distancing, which required required mhm and people have a fear of infection. So they are afraid to take a public transportacion and visit >>the doctor the same thing supplied to doctor and the chart. Here is a number of total visit cranes by service type after stay at home order was issued across the U. S. By Ali April patient physical visits to doctor's offices or clinics declined by ALAN 70%. On the other hand, that share, or telehealth, accounted for 25% of the total total. Doctor's visit in April, while many states studied to re opening face to face visit is gradually recovering. And overall Tele Health Service did not offset the crime. Physician Physical doctor's visit and telehealth John never fully replace in person care. However, Telehealth has established a new way to provide affordable care, especially to vulnerable people, and I don't explain each player's today. But as an example, the chart shows the significant growth of the tell a dog who is one of the largest badger care and tell his provider, I believe there are three factors off paradox. Success under the pandemic. First, obviously tell Doc could reach >>the job between those patients and doctors. Majority of the patients who needed to see doctors who are those who have underlying health conditions and are high risk for Kelowna, Bilis and Secondary. They showed their business model is highly scalable. In the first quarter of this year, they moved quickly to expand their physical physicians network to increase their capacity and catch up growing demand. To some extent, they also contributed to create flexible job for the doctors who suffered from Lydia's appointment and surgery. They utilized. There are legalism to maximize the efficiency for doctors and doing so, uh, they have university maintained high quality care at affordable applies Yeah, and at the same time, the government recognize the body of about your care and de regulated traditional rules to sum up she m s temporary automated to pay a wide range of tell Her services, including hospital visit and HHS temporarily waived hip hop minorities for telehealth cases and they're changed allowed provider to use communication tools such as facetime and the messenger. During their appointment on August start, the government issued a new executive order to expand tell his services beyond the pandemic. So the government is also moving to support about your health care. So it was a quick review of the health care challenges and somewhat advancement in the pandemic. But as you understand, since those challenges are not caused by the pandemic, problems will stay remain and events off this year will continuously catalyze the transformation. So how was his cherished reshaped and where will we go? The topic from here can be also applied to Japan market. Okay, I believe democratization and decentralization healthcare more important than ever. So what does A. The traditional healthcare was defined in a framework over patient and a doctor. But in the new normal, the range of beneficiaries will be expanded from patient to all citizens, including the country uninsured people. Thanks to the technology evolution, as you can download health management off for free on iTunes stores while the range of the digital health services unable everyone to participate in new health system system. And in this slide, I put three essential element to fully realize democratization and decentralization off health care, health, literacy, data sharing and security, privacy and safety in addition, taken. In addition, technology is put at the bottom as a foundation off three point first. Health stimulus is obviously important because if people don't understand how the system works, what options are available to them or what are the pros and cons of each options? They can not navigate themselves and utilize the service. It can even cause a different disparity. Issue and secondary data must be technically flee to transfer. While it keeps interoperability ease. More options are becoming available to patient. But if data cannot be shared among stakeholders, including patient hospitals in strollers and budget your providers, patient data will be fragmented and people cannot yet continue to care which they benefited under current centralized care system. And this is most challenging part. But the last one is that the security aspect more players will involving decentralized health care outside of conventional healthcare system. So obviously, both the number of healthcare channels and our frequency of data sharing will increase more. It's create ah, higher data about no beauty, and so, under the new health care framework, we needed to ensure patient privacy and safety and also re examine a Scott write lines for sharing patient data and off course. Corbett Wasa Stone Catalyst off this you saved. But what folly. Our drivers in Macro and Micro Perspective from Mark Lowe. The challenges in healthcare system have been widely recognized for decades, and now he's a big pain. The pandemic reminded us all the key values. Misha, our current pain point as I left the church shores. Those are increasing the population, health sustainability for doctors and other social system and value based care for better and more affordable care. And all the elements are co dependent on each other. The light chart explained that providing preventive care and Alan Dimension is the best way threes to meet the key values here. Similarly, the direction of community based care and about your care is in line with thes three values, and they are acting to maximize the number of beneficiaries form. A micro uh, initiative by nonconventional players is a big driver, and both CBS and Walmart are being actively engaged in healthcare healthcare businesses for many years. And CBS has the largest walking clinic called MinuteClinic, Ottawa 1100 locations, and Walmart also has 20 primary clinics. I didn't talk to them. But the most interesting things off their recent innovation, I believe, is that they are adjusted and expanded their focus, from primary care to community health Center to out less to every every customer's needs. And CBS Front to provide affordable preventive health and chronic health monitoring services at 1500 CBS Health have, which they are now setting up and along a similar line would Mark is deploying Walmart Health Center, where, utilizing tech driven solutions, they provide affordable one stop service for core healthcare. They got less, uh, insurance status. For example, more than 40% of the people in U. S visit will not every big, so liberating the huge customer base and physical locations. Both companies being reading decentralization off health care and consumer device company such as Apple and Fitbit also have helped in transform forming healthcare in two ways. First, they are growing the boundaries between traditional healthcare and consumer product after their long development airport available, getting healthcare device and secondary. They acted as the best healthcare educators to consumers and increase people's healthcare awareness because they're taking an important role in the enhancement, health, literacy and healthcare democratization. And based on the story so far, I'd like to touch to business concept which can be applied to both Japan and the US and one expected change. It will be the emergence of data integration plot home while the telehealth. While the healthcare data data volume has increased 15 times for the last seven years and will continuously increase, we have a chance to improve the health care by harnessing the data. So meaning the new system, which unify the each patient data from multiple data sources and create 360 degrees longitudinal view each individual and then it sensitized the unified data to gain additional insights seen from structure data and unable to provide personal lives care. Finally, it's aggregate each individual data and reanalyzed to provide inside for population health. This is one specific model I envision. And, uh, health care will be provided slew online or offline and at the hospital or detail store. In order to amplify the impact of health care. The law off the mediator between health care between hospital and citizen will become more important. They can be a pharmacy toe health stand out about your care providers. They provide wide range of fundamental care and medication instruction and management. They also help individuals to manage their health care data. I will not explain the details today, but Japan has similar challenges in health care, such as increasing healthcare expenditure and lack of doctors and care givers. For example, they people in Japan have physical physician visit more than 20 times a year on average, while those in the U. S. On >>the do full times it sounds a joke, but people say because the artery are healthy, say visit hospitals to see friends. So we need to utilize thes mediators to reduce cost while they maintained social place for citizens in Japan, the government has promoted, uh, usual family, pharmacist and primary doctors and views the community based medical system as a policy. There was division of dispensing fees in Japan this year to ship the core load or pharmacist to the new role as a health management service providers. And so >>I believe we will see the change in those spaces not only in the U. S, but also in Japan, and we went through so unprecedented times. But I believe it's been resulting accelerating our healthcare transformation and creating a new business innovation. And this brings me to the end of my presentation. Thank you for your attention and hope you could find something somehow useful for your business. And if you have any questions >>or comments, please for you feel free to contact me.

>>Hi, everyone. Good afternoon. Thank you for joining this session. I feel honored to be invited to speak here today. And I also appreciate entity research Summit members for organ organizing and giving this great opportunity. Please let me give a quick introduction. First, I'm a Takashi from Marvin American population, and I'm leading technology scouting and global ation with digital health companies such as Business Alliance and Strategically Investment in North America. And since we started to focus on this space in 2016 our team is growing. And in order to bring more new technologies and services to Japan market Thesis year, we founded the new service theories for digital health business, especially, uh, in medical diagnosis space in Japan. And today I would like to talk how health care has been transformed for my micro perspective, and I hope you enjoy reasoning it. So what's happened since the US identify the first case in the middle of January, As everyone knows, unfortunately, is the damaged by this pandemic was unequal amongst the people in us. It had more determined tal impact on those who are socially and economically vulnerable because of the long, long lasting structural program off the U. S. Society and the Light Charity about daily case rating elevator country shows. Even in the community, the infection rate off the low income were 4.5 times higher than, uh, those of the high income and due to czar straight off the Corvette, about 14 million people are unemployed. The unique point off the U. S. Is that more than 60% of insurance is tied with employment, so losing a job can mean losing access to health care. And the point point here is that the Corvette did not create healthcare disparity but, uh nearly highlighted the underlying program and necessity off affordable care for all. And when the country had a need to increase the testing capacity and geographic out, treat the pharmacies and retails joined forces with existing stakeholders more than 90% off the U. S Corporation live within five miles off a community pharmacy such as CVS and Walgreen, so they can technically provide the test to everyone in all the community. And they also have a huge workforce memory pharmacist who are eligible to perform the testing scale, and this very made their potential in community based health care. Stand out and about your health has provided on alternative way for people to access to health care. At affordable applies under the unusual setting where social distancing, which required required mhm and people have a fear of infection. So they are afraid to take a public transportacion and visit >>the doctor the same thing supplied to doctor and the chart. Here is a number of total visit cranes by service type after stay at home order was issued across the U. S. By Ali April patient physical visits to doctor's offices or clinics declined by ALAN 70%. On the other hand, that share, or telehealth, accounted for 25% of the total total. Doctor's >>visit in April, while many states studied to re opening face to face visit is gradually recovering. And overall Tele Health Service did not offset the crime. Physician Physical doctor's visit and telehealth John never fully replace in person care. However, Telehealth has established a new way to provide affordable care, especially to vulnerable people, and I don't explain each player's today. But as an example, the chart shows the significant growth of >>the tell a dog who is one of the largest badger care and tell his provider, I believe there are three factors off paradox. Success under the pandemic. First, obviously tell Doc could reach >>the job between those patients and doctors. Majority of the patients who needed to see doctors who are those who have underlying health conditions and are high risk for Kelowna, Bilis and Secondary. They showed their business model is highly scalable. In the first quarter of this year, they moved quickly to expand their physical physicians network to increase their capacity and catch up growing demand. To some extent, they also contributed to create flexible job for the doctors who suffered from Lydia's appointment and surgery. They utilized. There are legalism to maximize the efficiency for doctors and doing so, uh, they have university maintained high quality care at affordable applies Yeah, and at the same time, the government recognize the body of about your care and de regulated traditional rules to sum up she m s temporary automated to pay a wide range of tell Her services, including hospital visit and HHS temporarily waived hip hop minorities for telehealth cases and they're changed allowed provider to use communication tools such as facetime and the messenger. During their appointment on August start, the government issued a new executive order to expand tell his services beyond the pandemic. So the government is also moving to support about your health care. So it was a quick review of the health care challenges and somewhat advancement in the pandemic. But as you understand, since those challenges are not caused by the pandemic, problems will stay remain and events off this year will continuously catalyze the transformation. So how was his cherished reshaped and where will we go? The topic from here can be also applied to Japan market. Okay, I believe democratization and decentralization healthcare more important than ever. So what does A. The traditional healthcare was defined in a framework over patient and a doctor. But in the new normal, the range of beneficiaries will be expanded from patient to all citizens, including the country uninsured people. Thanks to the technology evolution, as you can download health management off for free on iTunes stores while the range of the digital health services unable everyone to participate in new health system system. And in this slide, I put three essential element to fully realize democratization and decentralization off health care, health, literacy, data sharing and security, privacy and safety in addition, taken. In addition, technology is put at the bottom as a foundation off three point first. Health stimulus is obviously important because if people don't understand how the system works, what options are available to them or what are the pros and cons of each options? They can not navigate themselves and utilize the service. It can even cause a different disparity. Issue and secondary data must be technically flee to transfer. While it keeps interoperability ease. More options are becoming available to patient. But if data cannot be shared among stakeholders, including patient hospitals in strollers and budget your providers, patient data will be fragmented and people cannot yet continue to care which they benefited under current centralized care system. And this is most challenging part. But the last one is that the security aspect more players will involving decentralized health care outside of conventional healthcare system. So obviously, both the number of healthcare channels and our frequency of data sharing will increase more. It's create ah, higher data about no beauty, and so, under the new health care framework, we needed to ensure patient privacy and safety and also re examine a Scott write lines for sharing patient data and off course. Corbett Wasa Stone Catalyst off this you saved. But what folly. Our drivers in Macro and Micro Perspective from Mark Lowe. The challenges in healthcare system have been widely recognized for decades, and now he's a big pain. The pandemic reminded us all the key values. Misha, our current pain point as I left the church shores. Those are increasing the population, health sustainability for doctors and other social system and value based care for better and more affordable care. And all the elements are co dependent on each other. The light chart explained that providing preventive care and Alan Dimension is the best way threes to meet the key values here. Similarly, the direction of community based care and about your care is in line with thes three values, and they are acting to maximize the number of beneficiaries form. A micro uh, initiative by nonconventional players is a big driver, and both CBS and Walmart are being actively engaged in healthcare healthcare businesses for many years. And CBS has the largest walking clinic called MinuteClinic, Ottawa 1100 locations, and Walmart also has 20 primary clinics. I didn't talk to them. But the most interesting things off their recent innovation, I believe, is that they are adjusted and expanded their focus, from primary care to community health Center to out less to every every customer's needs. And CBS Front to provide affordable preventive health and chronic health monitoring services at 1500 CBS Health have, which they are now setting up and along a similar line would Mark is deploying Walmart Health Center, where, utilizing tech driven solutions, they provide affordable one stop service for core healthcare. They got less, uh, insurance status. For example, more than 40% of the people in U. S visit will not every big, so liberating the huge customer base and physical locations. Both companies being reading decentralization off health care and consumer device company such as Apple and Fitbit also have helped in transform forming healthcare in two ways. First, they are growing the boundaries between traditional healthcare and consumer product after their long development airport available, getting healthcare device and secondary. They acted as the best healthcare educators to consumers and increase people's healthcare awareness because they're taking an important role in the enhancement, health, literacy and healthcare democratization. And based on the story so far, I'd like to touch to business concept which can be applied to both Japan and the US and one expected change. It will be the emergence of data integration plot home while the telehealth. While the healthcare data data volume has increased 15 times for the last seven years and will continuously increase, we have a chance to improve the health care by harnessing the data. So meaning the new system, which unify the each patient data from multiple data sources and create 360 degrees longitudinal view each individual and then it sensitized the unified data to gain additional insights seen from structure data and unable to provide personal lives care. Finally, it's aggregate each individual data and reanalyzed to provide inside for population health. This is one specific model I envision. And, uh, health care will be provided slew online or offline and at the hospital or detail store. In order to amplify the impact of health care. The law off the mediator between health care between hospital and citizen will become more important. They can be a pharmacy toe health stand out about your care providers. They provide wide range of fundamental care and medication instruction and management. They also help individuals to manage their health care data. I will not explain the details today, but Japan has similar challenges in health care, such as increasing healthcare expenditure and lack of doctors and care givers. For example, they people in Japan have physical physician visit more than 20 times a year on average, while those in the U. S. On the do full times it sounds a joke, but people say because the artery are healthy, say visit hospitals to see friends. So we need to utilize thes mediators to reduce cost while they maintained social place for citizens in Japan, the government has promoted, uh, usual family, pharmacist and primary doctors and views the community based medical system as a policy. There was division of dispensing fees in Japan this year to ship the core load or pharmacist to the new role as a health management service providers. And so I believe we will see the change in those spaces not only in the U. S, but also in Japan, and we went through so unprecedented times. But I believe it's been resulting accelerating our healthcare transformation and creating a new business innovation. And this brings me to the end of my presentation. Thank you for your attention and hope you could find something somehow useful for your business. And if you have any questions >>or comments, please for you feel free to contact me. Thank you.

>>From the cube studios in Palo Alto in Boston. It's the cube covering IBM thing brought to you by IBM. >>Welcome back. I'm Stu Miniman and we're here with the cubes coverage of IBM. Thank you. 2020. The global experience reaching all of the participants of the event where they are. I'm happy to welcome back one of our cube alumni, Mike Farris, who is the vice president of corporate development and strategy at red hat. Mike, it's great to see you. Likewise too. Happy to be here. All right, so what Mike, uh, you know, lots of things to talk about a few weeks back. Uh, of course the management changes happened. Uh, we're fresh off of a red hat summit. Uh, I, I had a pleasure really talking to a lot of your peers, uh, your new boss, uh, and uh, you know, many of the customers. Uh, but for our, I think audience, right? Bring us up to speed. Uh, you know, back in 2019, it, uh, the, the largest software acquisition ever, uh, completed with IBM buying red hat and there've been some management changes, uh, some people, uh, switching roles. >>And, and you've got a new title, so, uh, bring her audience speed. Sure. Absolutely. So it's, it's been an exciting several, several months as we've gone through this. Of course. Um, we knew things were going to happen, things were announced clearly with Jenny's retirement quite a while ago. Um, but certainly, you know, the Arvin announcement and then as well as having both Jim Whitehurst become president. Okay. Oh, Cormier becoming CEO of red hat. You know, it's been an exciting several months trying to try to go through this and understand, you know, what would change and frankly, what would not change. Um, I'll say from red hats perspective, having been with red hat for coming up, you're on 20 years, uh, not a lot is really changed. We're still focused on our mission of being the owner leading enterprise open source software company, uh, focusing on both taking our, our platforms, both red hat enterprise Linux and now OpenShift a Ford in the market, partnering around middleware components, hardening around our management, uh, as well as our storage elements. >>So, you know, our mission hasn't changed and that's kind of one of the key aspects of this. I'll say that certainly, you know, with Arvind now as CEO of IBM and Jim Whitehurst is president of IBM along with Oh for me or being, you know, CEO of red hat and we've got a really strong leadership group in place at IBM that understands what red hat is, what we mean to the customer and just as importantly what we mean to the open source community. Uh, and, and that type of action and, and, and drive is certainly something that, that we think, you know, that leadership in place will help to ensure that the value we've delivered to customers, frankly from day one back when we launched red hat enterprise Linux or red hat advanced server, frankly, uh, it's something that, that we'll be able to continue to do and drive in the community and with the customers as we move forward. >>Yeah. Mike, it's interesting when we look out, uh, on the, the ecosystems and happening out there, we understand for customers sometimes it might be challenging to say, Hey, I listened to 10 different vendors and they all say the same words. I've got multi hybrid cloud, digital modernization, things like that. Well, with our hat as a, as an analyst firm, we kind of say, okay, everybody does things a little bit different. Do you know if you look at the big cloud players, they are all playing different games. When we looked at the IBM strategy pre acquisition of red hat and red hat, they line up pretty well, you know, red hat. Yeah, very much. At summit it was open hybrid cloud. Uh, when I look at IBM, maybe a little bit more talk of multicloud than hybrid. Well, but hybrid is long bend a piece of it. >>So yeah. Okay. Give us a little bit of the inside, you know, with your strategy hat on it. How much had it been okay. Strong alignment, obviously IBM and red hat decades. Um, but you know, there are some places where, uh, you need to make sure that people understand that, you know, red sat still please markers with all the clouds. And of course IBM has services that span many places, but they also have, you know, products and services that are, uh, it was particular to IBM thing. Absolutely. And I think, you know, it's important to note, and this is well established that, you know, one of the core, uh, justifications and reasons for the acquisition was really around red hats. A physician, not just an open source, but in the hybrid cloud. Um, we've been talking about that for sure many years in fact, before most of the vendor's name has predicted up. >>Um, uh, but just as importantly, I think if you look back at Marvin Krishna's announcements on frankly the day that he was named CEO, uh, you know, he starts talking about things like IBM's focus being hybrid. Yeah. AI. And how did those things come together and who were the participants in that value being delivered? Certainly from red hat's perspective is, as we've said, we've been talking about hybrid and delivering on hybrid for many years now. Now that's being, being pushed as part of the IBM overall message. Um, and so certainly being able to leverage that value and extend it throughout the ecosystem that IBM brings throughout the software that IBM has and their services. You know, certainly we think we've got a, a good opportunity to really take that message broader in the market. Um, you know, with again, with, with both Paul and Jim, president and CEO of red hat working together and we'll be able to take that and leverage that capability throughout all of IBM generally. >>Yeah. I'm glad you brought up the AI piece because one of the things that really struck me, thumb it often we're talking about plot worms and we're talking about infrastructure. And while that is my background, we understand that the reason infrastructure exists is because my Apple, that application and one of the most important piece of applications or data. So, you know, red hat of course has a strong history with hi guys, uh, to applications and data. You, you've got an operating system as you know, one of the core pieces of what you're doing. And when I think about IBM and its strengths, well the first thing I probably think of is services. But the second thing I think of was all of the businesses productivity, uh, the databases, you know, all these applications that IBM has. I read it over the years, uh, wondering if we can just click down one notch and you talk about, uh, you know, hybrid cloud and AI and everything. >>How are IBM and red hat helping customers build all of those new applications go through those transformations, uh, to really be modern enterprises? Yeah, so certainly if you look at red hat's history where we focused very much on building the platforms and again, whether that was red hat, enterprise, Linux open shift or J boss, you know, our focus has been how can we make a standardized platform, it will work across the industry regardless of use case or industry verdict. IBM, you know, has both platforms as well as a lot of investment in capabilities in the higher level value services as well as the specializations. And use of these applications and platforms for specific vertical industries. And a lot of what they've been able to bring to the table with your investments in Watson and AI as well as a lot of their data services has certainly start to come to fruition. >>And when we start taking these two in combination and applying, for example, a focus on developers, developer tools, being able to bring a value to not just uh, the operations folks, but also the developer side and really put a lot of the AI capabilities cross that we're starting to see, you know, accelerated value, accelerated use. And then if you layer that on top of a hybrid approach, you know, we've got a very strong message that crosses everything from, you know, existing applications to net new applications before developing from their DevOps cycle all the way through their operation cycle at the bottom end where they're, they're actually trying to do boy cross multiple platforms, multiple infrastructures, and keep everything consistently managed, secured and operated. And that's, that's really the overall message that we're seeing as we talk about this together with IBM. All right. So, Mike, you touched on some of the products that that red hat, uh, offers in the portfolio. >>Uh, it was, it was a real focus at summit, not really to talk about the announcements, you know, a week before a summit two came out. Yeah. Uh, OpenShift bar dog four wasn't a big w blob. Uh, you know, give us the update on really the red hat portfolio and you know, where are those points? You know, IBM is helping red hat scale. Yeah. So certainly you've touched on some of the big ones, right? Well, OpenShift itself with the four dot. Four release brings a lot of new capabilities, uh, that are being brought forward to those customers. I have a better management, better capabilities and what they can do from monitoring service, et cetera. Um, but certainly also things like what we're doing with OpenShift virtualization, which was another announcement. There were, we're actually doing, you know, bringing a game, changing capability to the market, uh, and enabling customers that have both existing, uh, virtual virtualized environments and also new or, or migrated or transformed a container, native environments and running those on the same platform. >>With the same management infrastructure, we see that as huge to be able to simplify the management capabilities, understand cost and be able to control those environments in a much more consistent way. Uh, secondly, uh, you know, one of the big things that's been happening is really around advanced container management. What we're calling an ACM. Uh, this is, this is a good example of how red hat and IBM have worked together, uh, to bring existing IBM capabilities and what they had called a multi cluster management or MCM and bring those not just into red hat yes. Part of our platforms, but also have red hat take the step of open sourcing that and making it part of the industry standard through open source community. So being able to take that type of value that IBM had matured, take it through red hat into the open source community, but simultaneously deliver it to our customers. >>Yeah. Open shift and make it part of the platform. It's something we really see as, as a huge value add. Mmm. We're also doing a lot more with hyperscalers, especially in the space of OpenShift managed services. Uh, you saw some of those last week and I would encourage everyone to go out and, and look at the Paul Cormier and Scott Guthrie announcements that we did. There was a keynote, a video that you can go review. Uh, but, but certainly, uh, certainly the focus on how do we work with these hyperscalers inclusive of IBM, uh, to make open shift and much more fluid deployment option, have it more, more service oriented, a both on premise and off premise so the customers can actually, uh, work together better in it. Yeah. A red hat I think has always done a really good job of highlighting those partnerships. It's way easy on the outside to talk about the competitive nature of the industry. >>And I remember a few years ago, a red hat made, you know, a strong partnership with AWS. You mentioned, you know, Scott Guthrie from Microsoft. Well, okay. Not Satya Nadella. Okay. Love it last year, but Microsoft long partner. Oh, okay. Of course, with IBM back to the earliest days, uh, and with red hat or, uh, you know, in the much more recent days, uh, there was those partnerships. So critically important. ACM definitely an area, uh, we want to watch it. It was really question we had had, if you look at last year, Microsoft announced Azure, uh, there are lots of solutions announced as to how am I going to manage in this multicloud world. Um, because it's not, my piece is everywhere. It's now I need to manage a lot of things that are out of my control from different vendors and hopefully we learned a lot of the lessons from the multi-vendor era that will be fixed in the multi cloud era. >>Oh, absolutely. And you know, arc was part of our discussion with Scott Guthrie last week or Paul's discussion and you'll see a demo of that. But I would also expect that you'll see more things coming from us markers as well. Right. You know, this is about building a platform, a hybrid platform that works in a multicloud world and being able to describe that in a very consistent way. Manage it. You were at entitled it in a very consistent way of across all the vendors, inclusive of both self and managed services, only one option. And so we're very focused on doing that. Um, IBM, certainly AXA assisting in that, helping grow it. But overall this focus is really about red has perspective about making that hybrid, right? the leading hybrid platform, the leading Coobernetti's. Okay. uh, in the industry. And that's, that's really where starting from with OpenShift. >>All right. So, so Mike, we started out the discussion talking about some of the changes and you know, where red hat stays, red hat and where the company is working together. Obviously the leadership changes. Oh, we're a big piece. Uh, congratulations you, you got, you know, a new role. I've seen quite a few people, uh, with some new titles. Uh, you know, w which is always nice to see. Uh, the, the people that have been working for a long time. The other area where seems from the outside there coordinated effort is around the covert response. So, you know, I've seen the, the public letters from, from Arvin Krishna of course. red hat and Paul Cormier's letter. Well, he is there. Uh, IBM was one of the first companies that we had heard from, uh, that said, Hey, you know, we're not going to RSA conference this year. >>We're moving digital, uh, with the events. So no real focus on them boys. And then of course boarding customers. Yeah. How does that covert response happen? And am I right from the outside that it looks like there, there is a bit of United right attack, this global pandemic response. It is a, you know, I think there's two levels to this. Certainly between red hat and IBM were well coordinated. Um, within, within red hat we have, uh, we have teams that are specifically dedicated to making sure, yeah, our associates and more importantly, uh, our customers and the overall communities are well-served through this. As you said earlier in the interview, uh, certainly we hold back on any significant product announcements at summit, including with some of our partners merely because we wanted to maintain this focus on how can we help everyone through this very unfortunate experience. >>Um, and so, you know, as obviously a lot of us, all of us are sitting at home now globally. Uh, the focus is very much how do we stay connected or we keep the business flowing as much as possible through this and, and, and keep people safe and secure in their environments and make sure that we serve both the customers and the associates. Yes. Awesome away. So there's a lot of sensitivity and we want to make sure that, you know, the industry and the overall world knows, uh, that we're very focused on keeping people healthy and moving forward as we, as we work through this together as a world. Yeah. Well, Mike Ferris, thank you so much for the update. It's been been a pleasure catching up. Great. Thanks dude. Appreciate it. All right. Stay tuned for lots more coverage from IBM. Think 20, 20. The global digital experience. Okay. To a minimum. And thank you. We're watching. Thank you.

from around the globe it's the cube with digital coverage of Red Hat summit 2020 brought to you by Red Hat welcome back this is the cubes coverage of Red Hat summit 2020 I'm Stu minimun and it's our seventh year doing the cube this year of course it is a digital event which means we are reaching all the community members where they are around the globe really excited to bring program first time guests and a first time to redhead summit Vachon Vora he's the chief technology officer of Vodafone idea joining me from Mumbai India bhishan nice to see you take so much for joining us it's a pleasure to be here as >> I'm looking forward to this interaction all right so as I said I've been at Red Hat show for many years the the telecommunications space you know service providers are some of the you know more interesting in the technology space you talk about scale you talk about change you talk about you know software eating the world all of those discussions are ones I've had for many years but you know I think many people know Vodafone may be a vote a fun idea escape for us you know the organisation and of course you've got the CTO at so you know what that means inside your organization sure so what a fun idea is a company that came came to acclaim as a result of a merger about 18 months ago so the number two and number three operators in India which was Vodafone an idea came together to create a telco serving over 300 million subscribers and we've been integrating the the networks over the last 18 months and consolidating and doing one of the largest integration in the world of two networks comprising over 200 thousand sites and carrying you know more than 50 billion MB of traffic per hour per day serving more than 40 million voltaic customers and we have been duplicating the network very very busy with her and we taken down so far almost a hundred thousand base stations which is equivalent to the size of a large operator in us so that's about the carnahan that is about the scale of the the operator that word of an idea is and what we've been busy with for the last day yeah well well Besant of course the reason we're doing this event online is because right now with the global pandemic the vast majority of the population they're at home so you know healthcare of course you know one of the major concerns I actually have done interviews with some of the power and energy companies critically important at this time but you know telecommunications you know what one of the top of the list you know in normal times for what people need but today it's the the only way that we can all connect it so tell us a little bit about do you know what the current situation you know the impact and importance this really highlights of your business yeah so just as the rest of the world India is also in a lockdown and India actually has one of the largest the largest lockdown in the world putting all 1.3 billion people in a lockdown yeah across the entire country so within that context the telecom network is crucial to make sure that the life goes on the essential services are delivered the industry continues to still operate as the best it can and all of that is made possible because of a stable and reliable network that we offer so a huge huge impact on the society always has been but in in this current context it is even more more critical and crucial so what we do is we make sure that we are the invisible layer you talked about health healthcare workers and emergency services well we are the invisible essential service that probably many people don't see but we are the ones who are really helping this country survive this this crisis and so far we have seen 25 30% increase in traffic in a single day in one week we experienced the same amount of traffic growth we would have experienced in the entire year so we we scalability is very very critical in our network and we've been able to keep up with that kind of a growth and continue to serve the communities and in this crucial juncture and all this dude large extent has been made possible because of a large-scale deployment of cloud technologies that we have done over the last 18 months which has really helped us scale up a large lot of our capabilities in the back yeah I'd love if you could explain a little bit more on that it you know challenging times you know I'm curious the amount of people that are using your services probably haven't changed but the demand and how much they're using it as change a lot so cloud obviously gives you scalability but you know are there concerns about what this does the profitability how you maintain things how much of this is a temporary change and how much will this be you know I know in the United States there's a lot of talk about how much work from home will become more of a standard than it had been before this pandemic so you know short term what's the impact on your business and what are you and other telecommunication companies thinking about what long-term impact this will have >> I think that's a very very interesting question I think even for me and my organization what we have been able to do working from home is amazing I never would have thought that it was possible to do as much as we've been able to do just staying young with most of the work for staying at home and that has really I think happened across industries across the entire country I think many organizations have now realized that work from home or work from anywhere which is the other term he's gonna become quite possible and prevalent going forward because people have realized that you can just get you can get just as much productivity out you can get so many things done working from home and it gives so much more personal flexibility to the individuals so I see when I look back at our organizational experience I see our productivity has been actually quite good actually better then haha where probably even in the office days so I think that is definitely one thing that is gonna come out as a global change across all industries I think the second thing that is gonna happen is data analytics I think there is going to be far more analysis of data to understand patterns and understand trends and how to take advantage of that I think of course the immediate application is in the healthcare and the spread of the pandemic but I think this will spur a lot of other analytics I think the third thing is going to do is the adoption of digital as the primary mode digital was already something that most companies are working on as is a top priority but I think going outward is gonna become very evident to people that it is actually essential just talking about my business I can tell you today you know all the stores all the shops every place that we used to check our cell or recharge vouchers are closed so the only place we are able to get any revenue from is our digital channel and on end only place where customers have been able to recharge their prepaid subscriptions etc has all been through digital I think digital we will also become a massive massive requirement so in that context I think telecom will be seen as a critical critical backbone I think to a large extent it has been seen by many in the past is more of an essential commodity but I think many organizations will realise that this is actually a value creator so I think it's a great exciting opportunity for us to take advantage of those new business opportunities that will come and at the same time be a very very important player in the digital economy that every nation around the world is gonna press you know for Sean said it really appreciates some really good commentary there you know we've been talking for years about customers going through their digital transformation it's really about the data and how they leverage that and if you're data-driven then you really have gone through that transformation and you kind of described what we call the new innovation cocktail you're leveraging cloud that there's data you put those all together as to how you drive your company and you can drive innovation oftentimes when we think about what results we're going to get from deploying cloud and using these types of new technologies we think we know what we're gonna get but the reality of how your company is dealing with things today of course you know proves what you were hoping that build for here help us understand you know what we're talking here is part of red hat summit this week you know what's red hats role in this piece and you know how did the reality of rolling this out and then how it has helped you in the current global situation impacted your business sure oh so I would say actually the three words that I used digital cloud and analytics to me they're actually inseparable cuz I do not believe that you can have a digital business that is not based on cloud or that is not good at data analytics I think if you want to really have a successful cloud offering it implies that automatically that you are a digital business and you're gonna do extensive modern data and analytics and build those capabilities I think those are three inseparable terms now speaking specifically about a red head I would say that red head has been a very very critical partner for us right from the beginning 18 months ago when the two companies too came together to create this network we knew that we had to do several things number one was actually to have a completely rationalized structure which was around extracting the synergies from the from the merger but beyond that we needed to build a telco of the future technology company of the future which will let us transform the business and create capabilities that will give us a step ahead a leapfrog ahead of our competition and cloud was a very very essential part of the journey and we knew we needed to build a cloud based on open systems because we did not want to get into a proprietary logins with anybody and we are a very large business we have suffered a sufficiently large scale to really be able to build a very large cloud so we started working with Red Hat about two years ago and it in the last two years we have deployed 80 plus cloud locations distributed cloud locations across the country and these all of these clouds our vision is to orchestrate them as a single cloud our vision is to build a cloud there is a universal cloud actually that is the word there is a word we use when we talk about cloud it's a universal cloud what does that mean that means that cloud will carry not only the traditional telco workloads but it will also carry IT workloads it will also carry lot of the enterprise offerings we have so - for the end-user for our enterprise clients and all of those capabilities out to be accommodated with a platform that is versatile that is scalable and that is gonna give me in enormous amount of flexibility and control as a organization so Red Hat has been a very important part of the journey and on the red head OpenStack cloud today I have a Daffy's working from any major supplier you can think of I have any enemies working from Nokia Ericsson Huawei ziti even some smaller players like Marvin here so we have demonstrated that this is possible we've been able to break the lock in that the traditional naps have had on their cloud offerings which were really more of a virtualized offerings rather than a cloud computer is a truly universal cloud on the back of the technology provided by a red well that's that's fantastic congratulations on that I love the the result of what you're calling Universal Cloud is the promise that we talked about for a number of years you know is that nitty gritty networking piece it was like you know network functions virtualization and if be sitting an open stack and everybody's like well OpenStack am I trying to build a cloud to compete against the public cloud providers it was like no what you said exactly there's services that you want to be able to deliver and it's not just about oh we're getting away from hardware appliances it's you know just like most people today they're used to whatever smart device they're doing I want to be able to turn on channels and access new things that's your now you know reducing that barrier to Vodafone idea to deliver that to your users have I captured that properly that is correct as a matter of fact I'll just give you one proof point my water phone app is the app that we we have for our consumers and that app is currently running on my telco clock what used to be called the telco cloud so on that platform we are running my packet or actually there are about 40 and FB is for virtualized traditional calculations running alongside with an IT application a digital application okay so one of the things I you know I would like to understand there that what you've deployed there over the last couple of years sounds like a significant shift so you know you're talking about apps you're talking more of a developer type of environment bring us inside a little organizationally you know what new skills have new people had to learn has there been new people added to the organization have there been in a restructures what what is this this this whole initiative to get to universal cloud meant for your organization sure so I look after both the network and IT pieces of the part of parts of the company and you know we traditionally were in the past legacy we have had a IT cloud and we have heard indigo cloud what we are now creating is a single universal cloud what either of the two workloads are gonna be facilitated so for that actually the two organization the two parts of the organization need to come together and start to really work as one now it is very important that the telco guys understand the scale and the 99-year the five nines required in a running a network but at the same time IT guys also understand very much what all of the the flexibility that the business requires and the responsiveness required for the for the enterprise so bringing those two talents together I think in infusing that to create a single organization is one of the biggest challenges I think any telco has we also face it that is one aspect of it the second aspect of it is that there just aren't too many cloud experts in the world and we have been struggling with that I think skill shortage is a clear challenge for us now we try to address it using variety of means we of course try to upscale rescale lot of the traditional network core engineers that we have had we also try to use talent available or from consultants and then we also try to use our vendors so one of the concepts we've been working with our vendors is a concept of a resident engineer so we try to actually get them to second some of their engineers to work with us and at the same time we've been now working with both IBM and redhead to create a program to really go out and create a community around us of developers who can really work with this cloud and therefore we will have enough of skills available to leverage all of the potential benefits there are then the platform but can only be unleashed if I have the right skills and right people you touched on a very important issue it is a challenge but we are working our way through it and so far we've been a bit we make good all right well if it's shot I can't let a CTO go without looking a little bit into the future so want to help understand we talked about some of the technologies talked about transformation of what's happening your business what's happening your organization and there's some big waves coming week you know cloud is still in early days 5g of course you know is expected to have massive impact on on everyone's environment for this so what is the winning formula for the the telecoms going forward well I think Phi G is an exciting world we are a 4G network today the Phi G spectrum hasn't been auctioned in India but what we are building today is what I call a 4G plus network which means the lot of the architectural principles of PI G we have already applied in my core networks today and in my transport network in that world I think IOT is gonna play a very very big role and if you want to do things like IOT and if you want to do things like blockchain now I think telco cloud has a huge role to play because we are the telcos are traditionally the only ones in a country anywhere in the world who have experiences experience in operating in very far front powerful places dealing with lot of the infrastructure challenges especially if you're in a developing country you know that you have to work with a poor power availability poor transport etc I do not see any of the big guys the the big cloud players really having those capabilities today I think telcos are gonna play a very big role in enabling that pi g io t work and it is going to be an exciting journey for telcos I think telcos will very soon be called tech companies that is one thing that I strongly believe in I think also many of the things that depend on blockchain will require the kind of cloud that telcos will create because a telco cloud is far more demanding than a traditional IT application in many ways for example latency or for example throughputs now all those things aren't very important in blockchain apple type of applications I think that's another exciting opportunity for telcos really is to get into that and of course there are discussions about smart cities smart government government and because of Kovach kharkova crisis I think many governments are gonna explore new ways of organizing Society's new ways of governing economic activities and the backbone for a lot of those things is gonna be our telecom networks and the cloud distributed clouds to the edge that we create so I think it'll create many many exciting business opportunities as a consequence of some of those technological innovation yeah Shanta I can't remember who said it as they said don't waste a crisis but Vasant Bora CTO of Vodafone idea pleasure talking with you thank you so much for joining us hope you enjoy the Red Hat event as it is distributed this year and definitely look to be able to meet you sometime at a future physical event back when we have those in the future Thank You Stu it's been a pleasure meeting you virtually and look forward to these all right lots more coverage from the cubes Red Hat summit at 20/20 activity I'm Stu minimun and thanks as always for watching [Music]

>> from Cambridge, Massachusetts. It's the Cube covering M. I. T. Chief Data officer and Information Quality Symposium 2019 Brought to you by Silicon Angle Media >> Welcome back to M I. T. Everybody watching the Cube. The leader in live tech coverage we hear a Day two of the M I t chief data officer information Quality Conference Day Volonte with Paul Dillon. Andy Palmer's here. He's the co founder and CEO of Tamer. Good to see again. It's great to see it actually coming out. So I didn't ask this to Mike. I could kind of infirm from someone's dances. But why did you guys start >> Tamer? >> Well, it really started with an academic project that Mike was doing over at M. I. T. And I was over in of artists at the time. Is the chief get officer over there? And what we really found was that there were a lot of companies really suffering from data mastering as the primary bottleneck in their company did used great new tech like the vertical system that we've built and, you know, automated a lot of their warehousing and such. But the real bottleneck was getting lots of data integrated and mastered really, really >> quickly. Yeah, He took us through the sort of problems with obviously the d. W. In terms of scaling master data management and the scanning problems was Was that really the problem that you were trying to solve? >> Yeah, it really was. And when we started, I mean, it was like, seven years ago, eight years ago, now that we started the company and maybe almost 10 when we started working on the academic project, and at that time, people weren't really thinking are worried about that. They were still kind of digesting big data. A zit was called, but I think what Mike and I kind of felt was going on was that people were gonna get over the big data, Um, and the volume of data. And we're going to start worrying about the variety of the data and how to make the data cleaner and more organized. And, uh, I think I think way called that one pretty much right. Maybe >> we're a little >> bit early, but but I think now variety is the big problem >> with the other thing about your big day. Big data's oftentimes associated with Duke, which was a batch and then you sort of saw the shifter real time and spark was gonna fix all that. And so what are you seeing in terms of the trends in terms of how data is being used to drive almost near real time business decisions. >> You know, Mike and I came out really specifically back in 2007 and declared that we thought, uh, Hadoop and H D f s was going to be far less impactful than other people. >> 07 >> Yeah, Yeah. And Mike Mike actually was really aggressive and saying it was gonna be a disaster. And I think we've finally seen that actually play out of it now that the bloom is off the rose, so to speak. And so they're They're these fundamental things that big companies struggle with in terms of their data and, you know, cleaning it up and organizing it and making it, Iike want. Anybody that's worked at one of these big companies can tell you that the data that they get from most of their internal system sucks plain and simple, and so cleaning up that data, turning it into something it's an asset rather than liability is really what what tamers all about? And it's kind of our mission. We're out there to do this and it sort of pails and compare. Do you think about the amount of money that some of these companies have spent on systems like ASAP on you're like, Yeah, but all the data inside of the systems so bad and so, uh, ugly and unuseful like we're gonna fix that problem. >> So you're you're you're special sauce and machine learning. Where are you applying machine learning most most effectively when >> we apply machine learning to probably the least sexy problem on the planet. There are a lot of companies out there that use machine learning and a I t o do predictive algorithms and all kinds of cool stuff. All we do with machine learning is actually use it to clean up data and organize data. Get it ready for people to use a I I I started in the eye industry back in the late 19 eighties on, you know, really, I learned from the sky. Marvin Minsky and Mark Marvin taught me two things. First was garbage in garbage out. There's no algorithm that's worth anything unless you've got great data, and the 2nd 1 is it's always about the human in the machine working together. And I've really been working on those two same principles most of my career, and Tamer really brings both of those together. Our goal is to prepare data so that it can be used analytically inside of these companies, that it's actually high quality and useful. And the way we do that involves bringing together the machine, mostly these advanced machine learning algorithms with humans, subject matter experts inside of these companies that actually know all the ins and outs and all the intricacies of the data inside of their company. >> So say garbage in garbage out. If you don't have good training data course you're not going good ML model. How much how much upfront work is required. G. I know it was one of your customers and how much time is required to put together on ML model that can deal with 20,000,000 records like that? >> Well, you know, the amazing thing that this happened for us in the last five years, especially is that now we've got we've built enough models from scratch inside of these large global 2000 companies that very rarely do we go into a place where there we don't already have a model that's pre built. That they can use is a starting point. And I think that's the same thing that's happening in modeling in general. If you look a great companies like data robot Andi and even in in the Python community ml live that the accessibility of these modeling tools and the models themselves are actually so they're commoditized. And so most of our models and most of the projects we work on, we've already got a model. That's a starting point. We don't really have to start from scratch. >> You mentioned gonna ta I in the eighties Is that is the notion of a I Is it same as it was in the eighties and now we've just got the tooling, the horsepower, the data to take advantage of it is the concept changed? The >> math is all the same, like, you know, absolutely full stop, like there's really no new math. The two things I think that have changed our first. There's a lot more data that's available now, and, you know, uh, neural nets are a great example, right? in Marvin's things that, you know when you look at Google translate and how aggressively they used neural nets, it was the quantity of data that was available that actually made neural nets work. The second thing that that's that's changed is the cheap availability of Compute that Now the largest supercomputer in the world is available to rent by the minute. And so we've got all this data. You've got all this really cheap compute. And then third thing is what you alluded to earlier. The accessibility of all the math that now it's becoming so simple and easy to apply these math techniques, and they're becoming you know, it's It's almost to the point where the average data scientists not the advance With the average data, scientists can do a practice. Aye, aye. Techniques that 20 years ago required five PhDs. >> It's not surprising that Google, with its new neural net technology, all the search data that it has has been so successful. It's a surprise you that that Amazon with Alexa was able to compete so effectively. >> Oh, I think that I would never underestimate Amazon and their ability to, you know, build great tact. They've done some amazing work. One of my favorite Mike and I actually, one of our favorite examples in the last, uh, three years, they took their red shift system, you know, that competed with with Veronica and they they re implemented it and, you know, as a compiled system and it really runs incredibly fast. I mean, that that feat of engineering, what was truly exceptional >> to hear you say that Because it wasn't Red Shift originally Park. So yeah, that's right, Larry Ellison craps all over Red Shift because it's just open source offer that they just took and repackage. But you're saying they did some major engineering to Oh >> my gosh, yeah, It's like Mike and I both way Never. You know, we always compared par, excelled over tika, and, you know, we always knew we were better in a whole bunch of ways. But this this latest rewrite that they've done this compiled version like it's really good. >> So as a guy has been doing a eye for 30 years now, and it's really seeing it come into its own, a lot of a I project seems right now are sort of low hanging fruit is it's small scale stuff where you see a I in five years what kind of projects are going our bar company's gonna be undertaking and what kind of new applications are gonna come out of this? But >> I think we're at the very beginning of this cycle, and actually there's a lot more potential than has been realized. So I think we are in the pick the low hanging fruit kind of a thing. But some of the potential applications of A I are so much more impactful, especially as we modernize core infrastructure in the enterprise. So the enterprise is sort of living with this huge legacy burden. And we always air encouraging a tamer our customers to think of all their existing legacy systems is just dated generating machines and the faster they can get that data into a state where they can start doing state of the art A. I work on top of it, the better. And so really, you know, you gotta put the legacy burden aside and kind of draw this line in the sand so that as you really get, build their muscles on the A. I side that you can take advantage of that with all the data that they're generating every single day. >> Everything about these data repose. He's Enterprise Data Warehouse. You guys built better with MPP technology. Better data warehouses, the master data management stuff, the top down, you know, Enterprise data models, Dupin in big data, none of them really lived up to their promise, you know? Yeah, it's kind of somewhat unfair toe toe like the MPP guys because you said, Hey, we're just gonna run faster. And you did. But you didn't say you're gonna change the world and all that stuff, right? Where's e d? W? Did Do you feel like this next wave is actually gonna live up to the promise? >> I think the next phase is it's very logical. Like, you know, I know you're talking to Chris Lynch here in a minute, and you know what? They're doing it at scale and at scale and tamer. These companies are all in the same general area. That's kind of related to how do you take all this data and actually prepare it and turn it into something that's consumable really quickly and easily for all of these new data consumers in the enterprise and like so that that's the next logical phase in this process. Now, will this phase be the one that finally sort of meets the high expectations that were set 2030 years ago with enterprise data warehousing? I don't know, but we're certainly getting closer >> to I kind of hoped knockers, and we'll have less to do any other cool stuff that you see out there. That was a technology just >> I'm huge. I'm fanatical right now about health care. I think that the opportunity for health care to be transformed with technology is, you know, almost makes everything else look like chump change. What aspect of health care? Well, I think that the most obvious thing is that now, with the consumer sort of in the driver seat in healthcare, that technology companies that come in and provide consumer driven solutions that meet the needs of patients, regardless of how dysfunctional the health care system is, that's killer stuff. We had a great company here in Boston called Pill Pack was a great example of that where they just build something better for consumers, and it was so popular and so, you know, broadly adopted again again. Eventually, Amazon bought it for $1,000,000,000. But those kinds of things and health care Pill pack is just the beginning. There's lots and lots of those kinds of opportunities. >> Well, it's right. Healthcare's ripe for disruption on, and it hasn't been hit with the digital destruction. And neither is financialservices. Really? Certainly, defenses has not yet another. They're high risk industry, so Absolutely takes longer. Well, Andy, thanks so much for making the time. You know, You gotta run. Yeah. Yeah. Thank you. All right, keep it right. Everybody move back with our next guest right after this short break. You're watching the Cube from M I T c B O Q. Right back.

(upbeat pop music) >> From our studios in the heart of Silicon Valley, Palo Alto, California, this is a CubeConversation. >> Hello, everyone welcome to this CUBE Conversation here in Palo Alto, California, I'm John Furrier, co-host of theCUBE. We are here forth Inhi Cho Suh General Manager of IBM Watson, Customer Engagement, Former Cube alumni, I think she's been on dozens of times. Great to see you again. Welcome to our Palo Alto Studios. >> Yeah, great being here, John. >> So, we haven't chatted in awhile. IBM thing just happened, a little bit of a rainy event, here in February. Interesting change over since we last talked, but first give an update on what you're up to these days, what group are you leading, what's new? >> Okay, well first of all, I'm here based in California, which I'm excited about, and I lead our Watson West office, which is our Watson headquarters, here on the west coast, in downtown San Francisco, and we hosted our Think Conference, and at Think I lead with, in IBM, what we call our Watson Customer Engagement Business Unit, which is really the business applications, of how we apply Watson and other disruptive tech to a line of business audiences, both SAS and on premise software, so really excited about the areas of applying AI and machine learning as well as Blockchain to things like supply chain, and logistics, to order management, to next generation of retail. A lot of new, exciting areas. >> Yeah, we've had many conversations over the years from big data to as your career spanned across IBM, and you have a much more horizontal view of things, now. You're horizontally scalable, as we say in the cloud world. What's your observation of the trends these days? Because there's a lot waves. Actually, the waves that you guys announced, was the IBM, Watson NE ware and the cloud private ware. Marvin and I had an amazing conversation that video went viral. This is now getting a big tailwind for IBM. What's your thoughts in general about the overall ecosystem, because you're here in Silicon Valley, you've seen the big waves, you've got another big data world, cloud is here, multi cloud. What's your thoughts on the big mega-trends? >> Yeah, that's a good question. I think the first chapter of cloud, everyone ran to public cloud. When you look at it through the lens of enterprise, though, the hot topic right now in the second chapter is really about not just public cloud, but multi-cloud, hybrid cloud. Meaning, whether it's a private, public, it's about thinking about the applications and the nature of the applications and regardless of where the data sits, what are the implications of actually getting work done? Through, kind of, new container services, new ways of microservices in the development, of how APIs are integrated, and so, the hot topic right now is definitely hybrid cloud, multi cloud. And the work we've done to certify, what we call, IBM cloud private really enables us to not just take any business application to any cloud in our cloud, as well, but actually to enable Watson and Watson based applications also across multi cloud environments. >> So, chapter two, Jenny mentioned that in her key notes, I want to dig into that because we've been talking a lot about multi cloud architecture, and one of the big debates has been, in the industry, oh, don't pick a soul cloud. I've been writing a bunch of content about that at this DOD jedi deal with Amazon and Oracle, fighting for it out there, but that's also happening at the enterprise, but the reality is, everyone has multiple clouds. If you've got a sales force or if you've got this and that and the other thing, you probably have multiple clouds, so it's not so much soul cloud vs. as it is, workloads having a cloud for the right job and that seems to be validated at IBM Think, in talking to the top technical people and in the industry. They all say, pick the right cloud for the job. And we've heard that before in Big Data. Pick the right tool for the job. So, given that, workloads seem to be driving the demand for cloud. Since you're on the app side, how are you seeing that? Because the world's flipped. It used to be infrastructure and software enable the app's capabilities. Now the workloads have infrastructure as code, made with cloud, they're driving the requirements. This is a change over. >> It is a big change and part of, I would say, when people first ran to the cloud, and a lot of the public cloud services were digital SaaS services, where people were wanting to stitch multiple applications across clouds, and that became a challenge, so in this next iteration, that I'm seeing is, really, a couple things. One is, data gravity. So, where does the data actually reside, for the workload that's actually happening? Whether it's the transactions, whether it's customer information, whether it's product information, that's one piece. The second piece is a lot more analytics, right? And the spectrum of analytics running from traditional warehouse capabilities, to more, let's say, larger scale big data projects to full blown advanced algorithms and AI applications, is, people are saying, look, not only do I want to stitch these applications across multiple clouds; I also want to make sure I can actually tap into the data to apply new types of analytics and derive new services and new values out of relationships, understanding of how products are consumed, and so forth. So, for us, when we think about it is, we want to be able to enable that fluid understanding of data across the clouds, as well as protect and be thoughtful about the data privacy rights around it, compliance around GDPR, as well as how we think about the security aspects as well, for the enterprise. >> That is a great point. I think I want to drill down on the data piece, your background on data obviously is going to be key in your job now obviously, it's pretty obvious with Watson, but David Floyd, a wiki bonds research analyst, just posted a taxonomy of hybrid cloud research report that laid out the different kinds of cloud you could have. There's edge clouds, there's all kinds of things from public to edge, so when you look at that, you're thinking, okay, the data plain is the critical nature of the cloud. Now, depending on which cloud architecture for the use case, the workload, whatever, the data plain seems to be this magical opportunity. AI is going to have a big part of that. Can you just talk about how you guys see that evolving? Because, obviously, AI is a killer part of your strategy. This data piece is inter-operating across the clouds. >> Yes. >> Data management governs you're smiling, cause there's a killer answer coming. >> Totally. This is such a great set up. Actually, Ginni even said it in her keynote at Think, which was, you can't have an AI strategy without an information architecture strategy, which is an IA strategy, and information architecture is all about what you said: it's data preparation; understanding the foundation of it, making sure you've got the right governance structure, the integration of it, and then actually how you apply the more advanced analytics on top. So, information architecture and thinking about the data aspects in all kinds of data. Majority of the data actually sits behind, what I would say, the traditional public firewall. So, it sits behind the firewalls of our enterprise clients, like 80 plus percent of it, and then, many of the clients, we actually recently did a study, with about 5,000 senior executives, across many, many thousands of organizations, and 85% of them want to apply AI to improve their customer service, to improve the way they engage their clients and their products and services, so this is a huge opportunity right now for pretty much every organization to think through; kind of their data strategy. Their information architecture strategy, as part of their overall AI strategy. >> So, a question a got on twitter comes up a lot, and, also on my notes here, I wanted to ask you is, how can companies increase transparency trust and mitigate bias in AI? Because this comes up a lot and that's the questions that come in from the community is, Hey, I got my site, my apps running in Germany. I've got users over there, I'm global. I have to manage compliance, I got all this governess now, I'm over my shoulders, kind of a pain in the butt, but also I don't want to have the software be skewed on bias and other things, and then, I also get this whole Facebook dynamic going on, where it's like, I don't trust people holding my data. This is a big, huge issue. >> It is enormous. >> You guys are in the middle of it, what's your thoughts, what's the update, what's the dynamic and what's the solution? >> So, this is a big topic. I think we could do a whole episode just on this topic alone. So, trust and developing trust and transparency in AI should be a fundamental requirement across many, many different types of institutions. So, first of all, the responsibility doesn't sit only with the technology vendors; it's a shared responsibility across government institutions, the consumers, as well as the business leaders, in terms of how they're thinking about it. The more important piece, though, is when you think about the population that's available, that really understands AI, and they're actually coding and developing on it, is that we have to think about the diverse population that's participating in the governance of it, because you don't want just one tribe or one group that's coding and developing the algorithms, or deciding the decision models. >> Like the nerds or the geeks; they're a social aspect, society aspect as well, right? Social science. >> Exactly. I actually just did a recent conversational series with Northwestern Kellogg's business school, around the importance of developing trust and transparency, not only in the algorithms themselves, but the methodology of how you think about culture and value and ethics come into play through different lens, depending on the country you live in, as you kind of referenced, depending on your different values and religious backgrounds. It may because of different institutional and/or policy positions, depending on the nature, and so there has to be a general awareness of this that's thoughtful. Now, why I'm so excited about the work we're doing at IBM is we've actually launched a couple new initiatives. One is, what we call, AI OpenScale, which is really a platform and an opportunity to have the ability to begin to apply AI, see how AI operations and models function in production. We have methodologies in terms of engaging understanding fairness, so there's a 360 degree fairness kit, which is actually available in the open source world, there's a set of tools to understand and train people on recognizing bias, so even just definitions of, what do you mean by bias? It could be things like, group think, it could be, you're just self selecting on certain data sets to reinforce your hypotheses, it could be unconscious levels and it's not just traditionally socially oriented, types of bias. >> It could be data bias, too. It could be data bias, right? >> Totally. Machine generated biases in IOT world, also. >> So, contextual and behavioral biases kind of kick into play here. >> Yeah, but it starts with transparency trust. It also starts with thoughtful governance, it starts with understanding in your position on policy around data privacy, and those things are things that should be educational conversations across the entire industry. >> How far along are we on the progress bar there? I mean, it seems like it's early and we seem to be talking for awhile, but it seems even more early than most people think. Still a lot more work. Your thoughts on where the progress bar is on this whole mash up of tech and social issues around bias and data? Where are we? >> We're really at the early stages, and part of the reason we're at the early stages is I think people have, so far, really applied AI in very simple task oriented applications. The more, what we call, broad AI, meaning multi task work flow applications are starting, and we're also starting seeing in the enterprise. Now, in the enterprise world, you can still have bias, so, for example, when you talked about data bias, one of the simple examples I use is, think about loan approvals. If one of the criteria may be based on gender, you may have a sensitivity around the lack of women owned business leaders, and that could be a scoring algorithm that says, hey, maybe it's a higher risk when in fact, it's not necessarily a higher risk, it's just that the sampling is off, right. So, that would be a detection to say, hey maybe you have sensitivity around that data set, because you actually have an insufficient amount of data. So, part of data detection and understanding biases; where you have sampling of data that's incorrect, where your segmentation could be rethought, where it may just require an additional supervision or like decision making criteria as part of your governance process. >> This is actually a great area for young people to get involved, whether at their universities or curriculum, this kind of seems to be, whether it's political science and/or data science kind of coming together, you kind of have a mash. What's your advice to people watching that might be either in high school, college, or rethinking their career, because this seems to be hot area. >> It is a hot area. I would recommend it for every student at every age, quite frankly and we're at such an early stage that it's not too late to join and you're not too young nor are you too old to actually get in the industry, so that's point one. This is a great time for everyone to get involved. The second piece is, I would just start with online courses that are available, as well as participate in communities and companies like IBM, where we actually make available on a number of our web based applications, that you can actually do some online training and courses to understand the services that we have, to begin to understand the taxonomy and the language, so a very simple set, would be like, learn the language of AI first, and then, as you're learning coding, if you're more technically inclined, there's just a myriad of classes available. >> Final question, before I move on to the topic around inclusion and diversity, machine learning is impacting all verticals. I was just in an interview, talking with Don En-ju-bin-ski, she's got a company where it's neuroscience and machine learning coming together. Machine learning's being impacted all over. We mentioned basic data bias, and machine learning can help there. Machine learning meets blank every vertical, every market, is being impacted machine learning, which will trigger some of the things you're seeing on the app side. Your thoughts, looking at where you've come from in your career at IBM to now, just the evolution of what machine learning has enabled, your thoughts on the impact of machine learning. >> Oh, it's exciting and I'll give you a real simple example, so one of the great things my own team actually did was apply machine learning to, everyone loves the holiday shopping period, right? Between Thanksgiving to New Years, so we actually develop, what we call, Watson Order Optimizer and one of my favorite brands is REI, so the recreational equipment incorporated company, they actually applied our Watson Order Optimizer to optimize in real time. The best place, let's say you want to order a kayak or a T-shirt or a hiking boot, but the best way to create the algorithms to ship from different stores, and shipping from stores, for most retailers, is a high cost variable, because you don't know what the inventory positions are, you don't necessarily know the movement of traffic into that store, you may not even know what the price promotions are, so what was exciting about putting machine learning algorithms to this was, we could actually curate things like shipping and tax information, inventory positions of products in stores, pricing, a movement of goods as part of that calculation. So, this is like a set of business rules that are automatically developed, using Watson, in a way that would be almost impossible for any human to actually come up with all of the possible business roles, right? Because this is such a complex situation, and then you're trying to do it at the peak time, which is, like Black Friday, Cyber Monday Weekend, so we were able to actually apply Watson Machine Learning to create the business roles for when it should be shipped from a warehouse or a particular store. In order to meet the customer requirement, which is the fulfillment of that brand experienced, or the product experienced, so my view is, there are so many different places across the industry, that we could actually apply machine learning to, and my team is really excited about what we've been doing, especially in the next generation of supply chain. >> And it's also causing students to be really attracted to computer science, both men and women. My daughter, who is a senior at Berkeley, is interested in it, so you're starting to see the impact of machine learning is hitting all main stream, which is a good segue to my next question, we've been very passionate, I know it's one of your passions is inclusion and diversity or diversity and inclusion, there's always debates: D before I or I before D? Some say inclusion and diversity or diversity and inclusion. It's all the same thing, there's just a lot of effort going on to bring the tech industry up to par with the reality of the world, and so you have a study out. I've got a copy here. Talk about this study: Women in Leadership and the Priority Paradox. Talk about the study; what was behind it and what were some of the findings? >> Sure, and I'm excited that your daughter, that's a senior in college, is going to be another woman that's entering the workforce, and especially being in tech, so the priority paradox is that we actually looked at over 2,300 organizations, these are some of the top institutions around the world, that are curating and attracting the best talent and skills. Now, when you look at that population, we were surprised to find out that you would think by 2019-2018 that only 18% of those organizations actually had women in senior leadership positions, and what I categorize as senior leading positions, are in the see-swee, as vice presidents, maybe senior executives or senior managers; director level folks. So, that's one piece, which is, wow, given the size and the state where we are in the industry, only 18%: we could do better. Now, why do we believe that? The second piece is, you want the full population of the human capacity to think and creatively solve. Some of the world's biggest complex problems; you don't want a small population of the world trying to do this, so, the second piece of the paradox, which was the most surprising, is that 79% of these companies actually said that formalizing or prioritizing gender, fostering that kind of inclusive culture, was not a business priority, and that they had a harder time actually mapping that gap. Now, in the study, what we actually discovered though, was those companies, that did make it a priority, actually had first mover advantage, and making it a priority is quite simple. It's about understanding how to create that inclusive culture, to allow different perspectives and different experiences to be allowed in the co-creation and development. >> So, first mover advantage, in terms of what? >> Performance, actual business performance, so even though 80% of the organizations that we interviewed actually said that they've not made it a business priority, the 20% that did, we actually saw higher performance in their outcomes, in terms of business performance. >> So, this is actually a business benefit, too. I think your point is, the first mover advantage is saying, those companies that actually brought in the leadership to create that different perspective, had higher performance. >> Absolutely. >> We've talked about this before; one of the things I always say is that, tech is now mainstream, and it's 18% of the target audience of tech isn't the market, it's 50/50 or 51. Some say 51% women/men, so who's building the products for half the audience? So, again, this doesn't make any sense, so this is a good statistic. >> It is, and if you think about the students that are actually graduating out of graduate school, recently, there's actually more women graduating out of grad school than men. When you think about that population that's now entering the workforce, and what's actually happening through the pipeline, I think there's got to be thoughtful focus and programmatic improvements across the industry, around how to develop talent and make sure that different companies and organizations can move. Like you said, problem solve for creating new products that actually serve the world, not just serve certain populations, but also do it in a way that's thoughtful about, kind of, the makeup. >> And the mainstream and prep of tech obviously makes it more attractive, I mean, you're seeing a lot more women thinking about machines, like my daughter, the question is, how do they come in and not lose their footing, mentor-ship? So, what are the priorities that you see the industry needs to do? What are some of the imperatives to keep the pipeline and keep all the mentoring, obviously mentoring is hot, we see the networking built. >> Yeah, mentoring is huge. >> What's your thoughts on the best practices that you've been involved in? >> Some of the best practices we've actually done a number with an IBM, we've done a program called, Tech Re-Entry, so women that have decided to come back into the tech workforce, we actually have a 12 week internship program to do that. Another is a big initiative that we have around P-TECH, which is the next generation of workers aren't just going to have a formal college and or PHD masters type degrees. The next generation, which we're calling, is not necessarily a white collar, blue collar, what we're calling it is, new collar, meaning these are students that are able to combine their equivalent of a high school degree and early college education in one to be kind of, if you think about it, next generation of technical vocational schools, right? That quickly enter the workforce, are able to do jobs in terms of web development, in terms of cloud management, cloud services, it could be next generation of-- >> It's a huge skill gap opportunity, this is a big opportunity for people. >> It is, and we're seeing great adoption. We've seen it on a number of states across the US, this is an effort that we partner with, the states and the governors of each state, because public education has got to be done in a systematic way that you can actually sustain it for many, many years and this is something that we were excited about championing in the state of New York first. >> The ReEntry program and other things, I always tell myself, the technology is so new now you could level up a lot faster than, there's not that linear school kind of mentality, you don't need eight years to learn something. You could literally learn something pretty quickly these days because the gap between you and someone else is so short now, because it's all new skills. >> It's true, it's true. We talk about digital disruption through the lens of businesses, but there's a huge digital disruption through the lens of what you're talking about, which is our individual development and talent, and the ability to learn through so many different channels that's available now, and the focus around micro degrees, micro skills, micro certifications, there's so many ways for everyone to get involved, but I really do encourage everyone across every industry to have some knowledge and basis and understanding of tech, because tech will redefine how services and products are delivered across every category. >> And that's not male or female: that's just everyone. Again, back to technology for good, we can solve technology problems, You guys have been doing it at IBM, solve technology problems, but now the people problem is about getting people empowered, all gender, races, et cetera, the people getting the skills, getting employed, working for clouds, this is an opportunity. >> This is a huge opportunity. I think this is an exciting time. We feel like we're entering this next phase of, what I call, chapter two of cloud, this is chapter two of digital reinvention, of the enterprise, digital reinvention of the individual, actually, and it's an opportunity for every country, every population group to get involved, in so many new and creative ways, and we're at the early foundation stages in terms of both AI development, as well as new capabilities like Blockchain. So, it's an exciting time for everybody. >> Well, that's a whole nother topic. We'll have to bring you back, Inhi. Great to see you, in fact, welcome to Palo Alto. First time in our studio. Let's co-host something together, me and you. We'll do a series: John and Inhi. >> I would love that. That would be fun. I'm excited to be here. >> You can drop by our studio anytime now that you live in Palo Alto, we're neighbors. Inhi Cho Suh here, general manager IBM Watson, customer engagement, friend of theCUBE, here inside our studios, Palo Alto. I'm John Furrier, thanks for watching. (upbeat music)

>>Live from Las Vegas, Nevada. It's the queue at IBM interconnect 2015 brought to you by headline sponsor IBM. >>Hey, welcome back everyone. We are live in Las Vegas. This is the cube Silicon angle's flagship program. We go out to the events and extract the signal from the noise. I'm John furrier with Dave Alante host. Our next guest is Meg Swanson, director of marketing for IBM blue mix and with psyched to have her back on the cube last year we interviewed you one year ago in blue mix got kicked off. It was just a beta. Now it's blowing up huge and all the great success. Welcome back and congratulations. Right. >>Thank you. It's been a, it's been quite a year of Steve Robinson says if we kind of count these and joggers feels a bit like seven and it's been absolutely exciting. So we've in a span of a year, cause when we met at polls we were just at beta, you know we were, we were onboarding developers, getting feedback and now we have over 102 services on the platforms. They're rolling out rapidly and we have the deployment models with public, private and then we announced local at the show and it's just been, it's been tremendous. >>But before we get into some of the details, there's a lot of things to highlight. I want to just say congratulations because we cover a lot of companies you want to win when we meet people and they say they're going to do something and then they do it and do more and over and over achieve on the, on the mission. Cause you guys were very cautious at first you got Bloomix out there and then the wind was your back. The CEO says we need to win cloud. Right? And so you get the little reorg going on. Nancy Pearson was on yesterday, shows a little, a little bit of color on that and now you've got developers, you've got resources at your disposal. So take us through that. What happened? I mean I'll see blue mix hit a nerve obviously right out of the gate the signups were pretty strong, but we didn't hit that tipping point. When did you take us through the tipping point? When did it go? Oh my God, we've got a tiger by the tail. It was when the resources came in, was it before or after? >>It has a bit before that. So it's really your middle of, of last year. So as we, we had incredible adoption early on. So really building Bloomix from an open source perspective, building on cloud Foundry, strong partnerships with cloud Foundry and the team. And then just onboarding service after service. It truly owned reticent and all the different partners that we've had. And then around October was when we brought the Watson services on and we had been steadily growing, you know, the developer following and the babies that was pre yes. And uh, and the teams have always a mix is a platform that we're serving up. Um, you know, the IBM, uh, services plus our third party and open source. So we, even though we asked, we just reorganized, we've been working across the team since day one because we have the internet of things services, which are fantastic. Those are taking off really well. And we have the Watson teams, we have the mobile teams, the DevOps teams. So we're constantly working across and now we're reorganized into the cloud unit, which is fantastic because it just helps accelerate even more so >>you know, any, any agile business that has continuous integration like the cloud internally, you have to kind of think that way. And we're hearing that I internally at IBM does a transformation to be more agile, to go faster, which everyone's saying go fast. Everyone wants you to go fast. The CEOs, they said that yesterday, um, was, it was the tipping point that you had success and you doubled down on it was there, the proof point was Watson says, Hey look it, we can do this. Was that the key enabler? >>Yeah, the tipping point for us was really in the early stages, listening to developer feedback and making sure that we were re architecting and designing the product, that we have an incredible onboarding experience. So it developers where we know from marketing standpoint, we were getting the word out and really focusing on building community. So, you know, a few months into the year we started just very small grassroots meetup groups. Right now we have 71 countries every other week having meetups for their building applications on Bloomix. So for us it was, it was getting that community started and then having the community realize that we were taking their feedback on board and we would get, even on our Twitter handle, we'd get updates saying, Whoa, thanks Bloomix didn't, didn't realize you were listing to a, to the feedback and they, and they would mentioned what they had, you know, tweeted at us as far as um, input and how we'd made the change. And so every other day we're posting, you know, blog posts with updates on how we're working with developers. Just to make it a lot easier. >>Matt, can you talk about your open source strategy and how it's evolved as a company? I mean, IBM was, I think the first large enterprise company to get dive into open source and you went in big billion dollar investment way back when the Linux stories were now, but it's really evolved. Um, you use your, your muscle, your money and your vision and, and your open source of history, you know, in the community. How has it evolved? How is it changing? >>IBM for over 20 years we've been driving and fueling and having engineers really involved in open source community and helping to move that community along lifted up and and really anything that you're doing, especially from a hybrid cloud standpoint, you have to have open standards, you have to build an open architecture, you have to be embracing, you know, all the various open source technologies that are out there. You saw the work that we're doing and you spoke with the Docker team yesterday and, and so from our perspective is there's, there's no other way it is open by design. So all of our teams are very focused on making sure that we're working with the cloud Foundry foundation and getting input from all of the companies that are involved in that foundation. Because together we are going to create, you know, open standards and drive and momentum. Because if you're an independent developer or even if you're a large enterprise acting at the speed of an independent developer like we saw yesterday with city, you've got to be able to move and be portable. And if you're locked into proprietary standards, you're, you're just really, there's, there's nowhere you to go in this new world and this all the integration that you need. >>Okay. But there's another nuance there that I want to explore with you is that in the old days, it used to be you'd have a committee, right? Right. Everybody would maybe pay to get into the committee and they'd set a bunch of standards. Nine times out of 10 or 99 out of a hundred that it would flop. Right. And people, a lot of people said that would happen. For instance, with cloud Foundry, you guys came in and gave it a big lift. They're talking to that way around the open data platform now. So what's the difference? Is it just that there's an open source component to it? Is it that simple? >>Is the community, so, I mean, open source is successful because of the community. Listening to the community and sharing the community has a voice. And then the companies that are involved at, you know, at maybe more of a, you'll see that the table from a leadership perspective with the foundations, it's their, their role and their mission to be listening to the community and bring those forward. If any of those fail and you know, the companies involved aren't listening to the community or the community's not engaged and doesn't feel engaged and they're not innovating the platform, it's not going to work. So that's why we're very focused on building the sense of community, listening to what's out there and then enhancing. So you on the announcement with the Docker around enterprise grade containers, we were very specific with the way we approached that and named that. And you look at your, the secure gateway that needs to be added. You look at, um, the enhancements we've made from cloud Foundry on auto scaling. So really looking at what is the community looking for and then how do we then pay it back. >>So what's the message to developers? I mean, it sounds awesome. It's not easy. What you just described. Just Oh yeah, let's get the community. Well, it's hard to build community. So what's the message to developers? They have a lot of choices, a lot of options, and they spend time in various areas. What's the message to them from IBM, >>from an over an open source standpoint, just to be involved, be committed, be any, there are projects every day within the open source community where you can contribute code and you can be involved. And it's really about being very active and vocal and having, having a seat at the table. So I mean our teams, we're constantly looking through stack overflow in the feedback that we see their feedback on Reddit, feedback on get hub, you know, how, how often is the code being for blood? What kind of adoption metrics are we seeing? So from a developer standpoint, I would say, you know, it's time to lean in and be very involved because I mean not just IBM, but all the companies that we're working with across absolutely listening. And I mean this is such an era for developers where they, they have a seat at, at this big community table. It's not easy, but it's the right thing to do. The >>Docker and the register, this is modern stuff that developers want doctors. The hottest trend, you know, I was talking to dr folks, we interviewed Solomon years or couple of years ago in the cube before they changed their name even it was like, and we're so excited and all of a sudden they're now the bell of the ball. As you say, everyone wants to get married with Docker. Red is also is compelling node. These are cutting edge technologies that are part of the integrated stack. So how do you guys talk about that? In contrast to say Amazon, because Amazon and developers are used to these things. Elastic means stuff. They have auto-scaling. What do you guys have now that's direct, directly competitive with Amazon? >>Well, from a, from an application development standpoint, I see where we've gotten advantage is you look at the history of IBM around dev ops, right? So bringing together development operations in this continuous delivery life cycle and really looking at how are you going to quickly build an application and then that's, that's not the end of it, right? You now have to make sure from a security standpoint or you know, and you've heard from Mark Zonoff yesterday and the team on how are we providing strong security tools where you can do, you know in process application scanning and then you've got to deploy, you've got to auto scale, you've got to bring it back and you've got maybe an issue you've got to remediate and then redeploy. So for us it's really looking at at mobile app development and web development in that developer life cycle. And then in our conversations with our partners, the open source community, it's ensuring that we are helping to accelerate that every step of the way. >>I mean the announcement around API harmony, great example where we've got kind of the era of the impatient developer and we're all of us where you don't want to spend time writing a line of code if it's already been written. You don't want to spend time, you know, creating integration and creating API APIs if they're already out there. What you need are the tools at your fingertips where you can quickly build an application, search all the API APIs that are available and your private API APIs, you know, connect that into your mobile applications so you're to market faster. And then it's about you're enhancing and uh, you know, and, and really bringing different, yeah. >>So what do you say the developer out there that's watching this gives it the profile. Yeah, I'm comfortable. Amazon, I'm not sure I should go on blue mix. Maybe I should, maybe the best move was not to move or maybe they have something I want that I don't know about. So talk about those two scenarios. Cause like they're comfortable, they're like, okay, I, I'm fearful of moving over cause I'm comfortable over here with my tooling. Um, you know, developers are cause you work with them and then there's also the fear of missing out. Like, can I do better on Bloomex? So that's a common theme that we're hearing on developers. So how do you, how do you talk to those specifics? >>Yeah, and we, uh, we have those conversations, uh, quite a bit. And it's really about looking ahead at your strategy and at what point, especially for uh, developers within large enterprises. At what point do you need to connect with the backend systems? At what point do you need to ensure that you've got secure connectors? Our European clients are Latin American clients. They had concerns around data privacy, right? And so how are you sure that even the data centers that it's hosted in, you know, we have 40 data centers within software and growing every day and those are owned by IBM. Those are secured and it's really looking at where are you going to go as you expand your application. And do you have the right partner in place, the right steps along the way that you can, and more importantly, that you're not locked in. Because as much as, I mean, we have a lot of heart for Bloomex and what we're building, we want to ensure that we've built it to be open because we also want to have know low barrier exit. We want to make sure it's a great experience and it's our job to make sure that we've got the right services. The right time. >>So you don't, they don't feel locked in. So lock in is the lock in is a satisfaction >>yeah. Experience. It's not a, Oh I can't move because it's going to be too expensive to, you know. Right. And then there is a sense of, of expense that we're starting to see around the hidden cost of data. And as you may have walked into what you thought was a freemium model with some of the providers that are out there and you're scaling and now you have an ornament amount of data coming in and you're looking to store and provision that we are hearing, I mean the, there are hidden costs there that are also going to opening the door to other players that we've, we've, we know that we understand, uh, what you're gonna be facing down the road. So we've built the, the pricing, the application, the platform to allow for that. Whereas there are other platforms that haven't, because it is, you know, working at that kind of volume and scales a bit bit new to them and having to move that >>data is a problem too. So you mentioned 40 data centers, the more the merrier. I say here's some of the statistics. What's happening? How many services we did a little bit yesterday. Go a little deeper. What's exciting? What are the, the, the proud pieces of the, the platform that you can share with the developers? >>Yeah, it's been the integration. It's high integration between the design teams and in listening to developer feedback and then constantly designing the platform to have an amazing onboarding experience. So we announced yesterday the, uh, the Watson zones and the internet of things zone. And these are really designed to be, uh, a way to onboard into blue mix for developers that give you all the tools and resources and training that you need in order to start using cognitive applications like Watson. Because it is as exciting as the Watson services are, you do have a moment where you sit back and think, how am I going to use the power of Watson in my application? So we're creating these onboarding zones. So that's been huge advancement. Really excited about that. You're gonna see a lot more zones come out from us this year. And then the area of internet of things. So we have our, our IOT services. You had Nigel and Ian on yesterday from silver Hawk and power boat racing with internet things. They're fantastic. >>How about business outcomes? Get to finish the race and when you know the stories to the monitors, so you know if your heart rates going over right, >>that's pretty important data. And uh, so, so what we've seen to the exciting areas are really the zones and then the adoption and growth around internet of things space. And, uh, it's, it's a funny art. Our teams of developers that are out working with clients and out working with startups. If you open up their bags, they're probably gonna find a light bulb, a pebble watch. Um, but to connectors, I'm surprised anybody can get their report security nowadays that's on our team because we have all these demonstrations that we're doing with clients of, you know, imagine if you have, if you're trying to create a smart building for your employees and you have their mobile devices that are sensing and, and pinging the, um, the thermostat system, the lighting system. I'm the office. And as they're driving in and getting in proximity, things start turning on inside the office. So we do downloads with light bulbs and watches and, and really are starting to think through this smarter planet and smarter cities initiative with internet of things. And how are you using Bloomix and the power of cloud to now bring that to life within, uh, within cities and within enterprises? >>Go ahead. What's the developer persona look like these days when you're talking about the startup she talked to you? Think of the hoodies you think about the enterprise guys. So those two worlds coming together, >>they are in, in the fact that a lot of large enterprises are building innovation centers inside of themselves. And so they have, um, whether it's, if they have foundries or innovation centers or groups of developers, they're really looking to harness that, that speed and uh, an innovation that we've seen from, you know, some of the enterprise developers. And then also the big advancement that we've seen is the continual growth of the hackathons. So, you know, we know city we've been partnering with at and T as well on, on creating as many opportunities for their internal developers and external ecosystem of developers to be bringing forward new ideas to them. And then what we, we don't talk about as much publicly are the internal hackathons we do inside of large corporations. So we work with the CIO, his office, we go in 24 hour period and their developers are working on Bloomex within 24 hours. Well, depending on the number of, of it of developers they have, we'll have, you know, 50 75 a hundred mobile apps that are built. And then shark tank style, you know, they pitch the apps to their CIO and we vote on them together, you know, with the company. And then that's the roadmap for, you know, their 2015 plan and what applications they're going to bring tomorrow market. >>So talk about the geekiness of IBM and we were talking about this on the intro about what IBM should be doing, obviously where we're editorializing and pining, but um, it's known as kind of like the big company is slow old IBM, big blue, big iron and you guys are trying to be cool to see the keynotes out here. We may see that, but you guys actually have a geeky kind of community going out with this dev thing, which we've been following the past couple of years. It's pretty cool. Um, IBM is a geek culture. I mean it's got a lot of geeks that IBM, and that's a bad word we heard in New York, but a lot of computer science is um, technical people, very awesome bench of talent and patents. Right? So I'll ask, coming to bear, we're hearing, so share with the folks out there that are watching, what's it like at IBM? It's geeky. Is it? Is it, you said they carry gadgets around, I mean, is that the way people are at IBM? I mean, what's the culture like? Your group is, I think one of the ones that are kind of the edgiest. I think it's definitely not a mall culture. >>This multiple pockets. You've got a conservative customer base, but the average to be good, you gotta be, >>yeah, you gotta be kidding. It's about being authentic. So we're not trying to be anything. We're not. And when you look at me, you met, you know, the teams that I've gone through. We've got Jeff's lawyer and Marvin Goldman running around on our teams and, and we have massive development labs, you know, OBS, developers within, you know, high fund, our, our London facilities. And this is going on every day. So we're not putting on airs. You're not pretending. This is truly what our teams are doing. So we have, you know, Joshua Carr in the UK is constantly with, um, you know, with, with children in schools, showing them how to fly a drone with a banana, right where you do the device connectors. That wasn't because it was a stunt that we were trying to pull. It's just truly what they do. And we're very involved in the STEM initiatives for schools. >>I'm very involved in, you know, our distinguished engineers working through. So, but to attract developers and to get them in gray shade into your platform on board, you're judged by the company kids, they want to see themselves there. Right? So that's, there's a culture of developers now, I don't want to say brogrammers but like in this, the youngest guns are like, they've never loaded Linux on machines. They always say what bloats off where it's all cloud to them. So you're born in the cloud. So that's just a complete cultural shift, right, to talk about you guys have that mojo internally or, yes, it's about, it's about taking what we know inside the company and exposing that to developers and creating that developer to develop our connection. And you mentioned programmers. I mean we have Lauren Schaffer, we have a number of female developers on our teams and we are very much focused on ensuring that we're leading and making sure that we are creating a very balanced on environment of developers and leading in that area of making sure we have a lot of diversity. >>And so it's really about, from a marketing standpoint, it's, you know, you don't market to developers. Yeah, no, your technical chops or what's the market and you make sure that what they're interested in and what thereafter we're going to connect them with an IBM development team or is somebody else in the community through developer works that's working on it as well. And it's that local community. There's local connections headfake developers as we learned that. No, and my team, my marketing team, it's half developers, half data analysts. I mean we are, I mean EDC shifts inside of IBM marketing. I mean it's all data driven. I'm using the entire portfolio SAS portfolio we have with, you know, Unica, Coremetrics and, and then every day giving developers more trends and more technologies to play with your kid in the candy store. They ask you the, um, the question that's on my mind is what was the big learnings over the year that you guys walked away? >>What was magnified this year? Y'all see, you launched it a year ago, you have some growth, right? What's the learnings that was magnified for your team and the whole group? I'd say the speed. Um, so when you talked about, you know, agile development, agile delivery, you look at going from, you know, a few services to 102, you now have to re reinvent the way product development is done inside the company. So it's cloud versus mobile first. And it's really looking at across all the services we have, how long can they be a beta, how long, you know, are we going to do testing? What is the beta to general availability, onboarding for developers and migration path. Because a lot of companies will launch a beta, you're using the beta, you're embedded in it, and then all of a sudden it goes generally available and you have to rip and replace. Like that's horrible. And you know, experience. So we've, the biggest change I've seen is just the agile delivery and the speed at which internally to IBM we're working and learning from our partners that we're onboarding, bringing more and more partners every day. >>We got a break, but I want to ask you one final question. What's the coolest thing that you guys have done with Blumix internally? >>So internally it's been the Watson services and the Watson hackathons. So, uh, we are doing message resonance and sentiment analysis, so you can actually take a memos that are written or uh, or external documentation, run it through message resonance and, and start creating profiles of, of messaging. So it's been a, so you've got traditional writers, you know, geeking out of it and now they're uploading their content into the mobile applications and, uh, and you're then changing the way that, >>yeah, we had, we did a test, Adam sent us a link for the beta with the blue mix and we took all our chats and the social group has an amazing crowd chats, a zillion people on it and it's a huge transcript. I just cut and paste the transcript into the site and it spit out like the top things. And it was like, you know, openness cause it's a, it's a Twitter, Twitter, Twitter chat and they gave it a little, all the sentiment. I was like, wow, this is awesome so we could see where this going. So, um, that's cool. Thanks for coming. Thanks for coming on the cube again. Great to see you. Congratulations and keep us posted and we'll bull up. Keep checking in with you on the progress. This is the cube. We'll be right back live in Las Vegas after this short break.