(upbeat music) >> Welcome to theCUBE's coverage of VMworld 2021. I'm Lisa Martin. I've got a CUBE alum with me next. Ajay Patel is here, the SVP and GM of Modern Apps and Management at VMware. Ajay, welcome back to the program, it's great to see you. >> Well thank you for having me. It's always great to be here. >> Glad that you're doing well. I want to dig into your role as SVP and GM with Modern Apps and Management. Talk to me about some of the dynamics of your role and then we'll get into the vision and the strategy that VMware has. >> Makes sense. VMware has created a business group called Modern Apps and Management, with the single mission of helping our customers accelerate their digital transformation through software. And we're finding them leveraging both the edge and the multiple clouds they deploy on. So our mission here is helping, them be the cloud diagnostic manager for application development and management through our portfolio of Tazu and VRealize solutions allowing customers to both build and operate applications at speed across these edge data center and cloud deployments And the big thing we hear is all the day two challenges, right of managing costs, risks, security, performance. That's really the essence of what the business group is about. How do we speed idea to production and allow you to operate at scale. >> When we think of speed, we can't help, but think of the acceleration that we've seen in the last 18 months, businesses transforming digitally to first survive the dynamics of the market. But talk to me about how the, the pandemic has influenced catalyzed VMware's vision here. >> You can see in every industry, this need for speed has really accelerated. What used to be weeks and months of planning and execution has materialized into getting something out in production in days. One of great example I can remember is one of my financial services customer that was responsible for getting all the COVID payments out to the small businesses and being able to get that application from idea to production matter of 10 days, it was just truly impressive to see the teams come together, to come up with the idea, put the software together and getting production so that we could start delivering the financial funds the companies needed, to keep them viable. So great social impact and great results in matter of days. >> And again, that acceleration that we've seen there, there's been a lot of silver linings, I think, but I want to get in next to some of the industry trends that are influencing app modernization. What are you seeing in the customer environment? What are some of those key trends that are driving adoption? >> I mean, this move to cloud is here to stay and most of customers have a cloud first strategy, and we rebranded this from VMware the cloud smart strategy, but it's not just about one particular flavor of cloud. We're putting the best workload on the best cloud. But the reality is when I speak to many of the customers is they're way behind on the bar of digital plats. And it's, that's because the simple idea of, you know, lift and shift or completely rewrite. So there's no one fits all and they're struggling with hardware capability, their the development teams, their IT assets, the applications are modernized across these three things. So we see modernization kind of fall in three categories, infrastructure modernization, the practice of development or devops modernization, and the application transform itself. And we are starting to find out that customers are struggling with all three. Well, they want to leverage the best of cloud. They just don't have the skills or the expertise to do that effectively. >> And how does VMware help address that skills gap. >> Yeah, so the way we've looked at it is we put a lot of effort around education. So on the everyone knows containers and Kubernetes is the future. They're looking to build these modern microservices, architectures and applications. A lot of investment in just kind of putting the effort to help customers learn these new tools, techniques, and create best practices. So theCUBE academy and the effort and the investment putting in just enabling the ecosystem now with the skills and capabilities is one big effort that VMware is putting. But more importantly, on the product side, we're delivering solutions that help customers both build design, deliver and operate these applications on Kubernetes across the cloud of choice. I'm most excited about our announcement around this product. We're just launching called Tanzu application platform. It is what we call an application aware platform. It's about making it easy for developers to take the ideas and get into production. It kind of bridging that gap that exists between development and operations. We hear a lot about dev ops, as you know, how do you bring that to life? How do you make that real? That's what Tanzu application platform is about. >> I'm curious of your customer conversations, how they've changed in the last year or so in terms of, app modernization, things like security being board level conversations, are you noticing that that is rising up the chain that app modernization is now a business critical initiative for our businesses? >> So it's what I'm finding is it's the means. It's not that if you think about the board level conversations about digital transformation you know, I'm a financial services company. I need to provide mobile FinTech. I'm competing with this new age application and you're delivering the same service that they offered digitally now, right. Like from a retail bank. I can't go to the store, the retail branch anymore, right. I need to provide the same capability for payments processing all online through my mobile phone. So it's really the digitalization of the traditional processes that we're finding most exciting. In order to do that, we're finding that no applications are in cloud right. They had to take the existing financial applications and put a mobile frontend to it, or put some new business logic or drive some transformation there. So it's really a transformation around existing application to deliver a business outcome. And we're focusing it through our Tanzu lab services, our capabilities of Tanzu application platform, all the way to the operations and management of getting these products in production or these applications in production. So it's the full life cycle from idea to production is what customers are looking for. They're looking to compress the cycle time as you and I spoke about, through this agility they're looking for. >> Right, definitely a compressed cycle time. Talk to me about some of the other announcements that are being made at VMworld with respect to Tanzu and helping customers on the app modernization front, and that aligned to the vision and mission that you talked about. >> Wonderful, I would say they're kind of, I put them in three buckets. One is what are we doing to help developers get access to the new technology. Back to the skills learning part of it, most excited about Tanzu of community edition and Tanzu mission control starter pack. This is really about getting Kubernetes stood up in your favorite deployment of choice and get started building your application very quickly. We're also announcing Tanzu application platform that I spoke about, we're going to beta 2 for that platform, which makes it really easy for developers to get access to Kubernetes capability. It makes development easy. We're also announcing marketplace enhancements, allowing us to take the best of breed IC solutions and making them available to help you build applications faster. So one set of announcements around building applications, delivering value, getting them down to market very quickly. On the management side, we're really excited about the broad portfolio management we've assembled. We're probably in the customer's a way to build a cloud operating model. And in the cloud operating model, it's about how do I do VMs and containers? How do I provide a consistent management control plane so I can deliver applications on the cloud of my choice? How do I provide intrinsic observability, intrinsic security so I can operate at scale. So this combination of development tooling, platform operations, and day two operations, along with enhancements in our cost management solution with CloudHealth or being able to take our universal capabilities for consumption, driving insight and observity that really makes it a powerful story for customers, either on the build or develop or deploy side of the equation. >> You mentioned a couple of things are interesting. Consistency being key from a management perspective, especially given this accelerated time in which we're living, but also you mentioned security. We've seen so much movement on the security front in the last year and a half with the massive rise in ransomware attacks, ransomware now becoming a household word. Talk to me about the security factor and how you're helping customers from a risk mitigation perspective, because now it's not, if we get attacked, it's when. >> And I think it's really starts with, we have this notion of a secure software supply chain. We think of software as a production factory from idea to production. And if you don't start with known good hard attacks to start with, trying to wire in security after attack is just too difficult. So we started with secure content, curated images content catalogs that customers are setting up as best practices. We started with application accelerators. These are best practice that codifies with the right guard rails in place. And then we automate that supply chain so that you have checks in every process, every step of the way, whether it's in the build process and the deploy process or in runtime production. And you had to do this at the application layer because there is no kind of firewall or edge you can protect the application is highly distributed. So things like application security and API security, another area we announced a new offering at VM world around API security, but everything starts with an API endpoint when you have a security. So security is kind of woven in into the design build, deploy and in the runtime operation. And we're kind of wire this in intrinsically to the platform with best of breed security partners now extending in evolving their solution on top of us. >> What's been some of the customer feedback from some of the new technologies that you announced. I'm curious, I imagine knowing how VMware is very customer centric, customers were essential in the development and iteration of the technologies, but just give me some of the idea on customer feedback of this direction that you're going. >> Yeah, there's a great, exciting example where we're working with the army to create a software factory. you would've never imagined right, The US army being a software digital enterprise, we're partnering with what we call the US army futures command in a joint effort to help them build the first ever software development factory where army personnel are actually becoming true cloud native developers, where you're putting the soldiers to do cloud native development, everything in the terms of practice of building software, but also using the Tanzu portfolio in delivering best-in-class capability. This is going to rival some of the top tech companies in Silicon valley. This is a five-year prototype project in which we're picking cohorts of soldiers, making them software developers and helping them build great capability through both combination of classroom based training, but also strong technical foundation and expertise provided by our lab. So this is an example where, you know, the industry is working with the customer to co-innovate, how we build software, but also driving the expertise of these personnel hierarchs. As a soldier, you know, what you need, what if you could start delivering solutions for rest of your members in a productive way. So very exciting, It's an example where we've leapfrogging and delivering the kind of the Silicon valley type innovation to our standard practice. It's traditionally been a procurement driven model. We're trying to speed that and drive it into a more agile delivery factory concept as well. So one of the most exciting projects that I've run into the last six months. >> The army software factory, I love that my dad was an army medic and combat medic in Vietnam. And I'm sure probably wouldn't have been apt to become a software developer. But tell me a little bit about, it's a very cool project and so essential. Talk to me a little bit about the impetus of the army software factory. How did that come about? >> You know, this came back with strong sponsorship from the top. I had an opportunity to be at the opening of the campus in partnership with the local Austin college. And as General Milley and team spoke about it, they just said the next battleground is going to be a digital backup power hub. It's something we're going to have to put our troops in place and have modernized, not just the army, but modernize the way we deliver it through software. It's it speaks so much to the digital transformation we're talking about right. At the very heart of it is about using software to enable whether it's medics, whether it's supplies, either in a real time intelligence on the battlefield to know what's happening. And we're starting to see user technology is going to drive dramatically hopefully the next war, we don't have to fight it more of a defensive mode, but that capability alone is going to be significant. So it's really exciting to see how technology has become pervasive in all aspects, in every format including the US army. And this partnership is a great example of thought leadership from the army command to deliver software as the innovation factory, for the army itself. >> Right, and for the army to rival Silicon valley tech companies, that's pretty impressive. >> Pretty ambitious right. In partnership with one of the local colleges. So that's also starting to show in terms of how to bring new talent out, that shortage of skills we talked about. It's a critical way to kind of invest in the future in our people, right? As we, as we build out this capability. >> That's excellent that investment in the future and helping fill those skills gaps across industries is so needed. Talk to me about some of the things that you're excited about this year's VMworld is again virtual, but what are some of the things that you think are really fantastic for customers and prospects to learn? >> I think as Raghu said, we're in the third act of VM-ware, but more interestingly, but the third act of where the cloud is, the cloud has matured cloud 2.0 was really about shifting and using a public cloud for the IS capabilities. Cloud 3.0 is about to use the cloud of choice for the best application. We are going to increasingly see this distributed nature of application. I asked most customers, where does your application run? It's hard to answer that, right? It's on your mobile device, it's in your storefront, it's in your data center, it's in a particular cloud. And so an application is a collection of services. So what I'm most excited about is all business capables being published as an API, had an opportunity to be part of a company called Sonos and then Apogee. And we talked about API management years ago. I see increasingly this need for being able to expose a business capability as an API, being able to compose these new applications rapidly, being able to secure them, being able to observe what's going on in production and then adjust and automate, you can scale up scale down or deploy the application where it's most needed in minutes. That's a dynamic future that we see, and we're excited that VM was right at the heart of it. Where that in our cloud agnostic software player, that can help you, whether it's your development challenges, your deployment challenges, or your management challenges, in the future of multi-cloud, that's what I'm most excited about, we're set up to help our customers on this cloud journey, regardless of where they're going and what solution they're looking to build. >> Ajay, what are some of the key business outcomes that the cloud is going to deliver across industries as things progress forward? >> I think we're finding the consistent message I hear from our customers is leverage the power of cloud to transform my business. So it's about business outcomes. It's less about technology. It's what outcomes we're driving. Second it's about speed and agility. How do I respond, adjust kind of dynamic contiuness. How do I innovate continuously? How do I adjust to what the business needs? And third thing we're seeing more and more is I need to be able to management costs and I get some predictability and able to optimize how I run my business. what they're finding with the cloud is the costs are running out of control, they need a way, a better way of knowing the value that they're getting and using the best cloud for the right technology. Whether may be a private cloud in some cases, a public cloud or an edge cloud. So they want to able to going to select and move and have that portability. Being able to make those choices optimization is something they're demanding from us. And so we're most excited about this need to have a flexible infrastructure and a cloud agnostic infrastructure that helps them deliver these kinds of business outcomes. >> You mentioned a couple of customer examples and financial services. You mentioned the army software factory. In terms of looking at where we are in 2021. Are there any industries in particular, maybe essential services that you think are really prime targets for the technologies, the new announcements that you're making at VM world. >> You know, what we are trying to see is this is a broad change that's happening. If you're in retail, you know, you're kind of running a hybrid world of digital and physical. So we're seeing this blending of physical and digital reality coming together. You know, FedEx is a great customer of ours and you see them as spoken as example of it, you know, they're continue to both drive operational change in terms of being delivering the packages to you on time at a lower cost, but on the other side, they're also competing with their primary partners and retailers and in some cases, right, from a distribution perspective for Amazon, with Amazon prime. So in every industry, you're starting to see the lines are blurring between traditional partners and competitors. And in doing so, they're looking for a way to innovate, innovate at speed and leverage technology. So I don't think there is a specific industry that's not being disrupted whether it's FinTech, whether it's retail, whether it's transportation logistics, or healthcare telemedicine, right? The way you do pharmaceutical, how you deliver medicine, it's all changing. It's all being driven by data. And so we see a broad application of our technology, but financial services, healthcare, telco, government tend to be a kind of traditional industries that are with us but I think the reaches are pretty broad. >> Yeah, it is all changing. Everything is becoming more and more data-driven and many businesses are becoming data companies or if they're not, they need to otherwise their competition, as you mentioned, is going to be right in the rear view mirror, ready to take their place. But that's something that we see that isn't being talked about. I don't think enough, as some of the great innovations coming as a result of the situation that we're in. We're seeing big transformations in industries where we're all benefiting. I think we need to get that, that word out there a little bit more so we can start showing more of those silver linings. >> Sure. And I think what's happening here is it's about connecting the people to the services at the end of the day, these applications are means for delivering value. And so how do we connect us as consumers or us employees or us as partners to the business to the operator with both digitally and in a physical way. And we bring that in a seamless experience. So we're seeing more and more experience matters, you know, service quality and delivery matter. It's less about the technologies back again to the outcomes. And so very much focused in building that the platform that our customers can use to leverage the best of the cloud, the best of their people, the best of the innovation they have within the organization. >> You're right. It's all about outcomes. Ajay, thank you for joining me today, talking about some of the new things that the mission of your organization, the vision, some of the new products and technologies that are being announced at VM world, we appreciate your time and hopefully next year we'll see you in person. >> Thank you again and look forward to the next VMWorld in person. >> Likewise for Ajay Patel. You're very welcome for Ajay Patel. I'm Lisa Martin, and you're watching theCUBEs coverage of VMWorld of 2021. (soft music)

(upbeat music) >> This is Dave Vellante, and I'd like to welcome you back to The Cube's coverage of Couchbase ConnectONLINE, where the theme of this event is Modernize Now. And one of the big announcements is Capella, which of course, as you all undoubtedly know, is the brightest star in the constellation Auriga, which is Latin for Charioteer. Yup, you can find that in the constellation, that constellation in the night sky in late Feb, early March, in the Northern hemisphere. So with that little tidbit, I'd like to welcome in Scott Anderson to The Cube, who's the Senior Vice President of Product Management and Business Operations at Couchbase. Scott, welcome. Good to see you. >> Thank you very much. Thanks for having me. >> Yeah, it's our pleasure. So, you've launched Couchbase Capella. If I understand correctly, it's built on Couchbase server 7, which you launched just a few months ago in the middle of the Summer. Can you give us an overview of Capella? >> Yeah, absolutely. So Couchbase Capella, is our fully managed databases service for enterprise applications. One of the goals of launching Capella and our database as a service offering that we just announced today is, about increasing the accessibility of Couchbase. So, it's about making it easy for a Developer or an Enterprise to get up and running in just a few clicks and a couple of minutes. And about making it more affordable and accessible through the development phase, through the test phase, the production phase. So really it's about ease of use, having the right offerings aligned to the phase of development that a customer's in, and eventually into the production of their enterprise application, leveraging Capella and Couchbase Server 7. >> So let me ask you, I went pretty deep with Ravi on the, the technical side, and I want to understand, what makes Capella different from some of the competitive offerings? Is it the, sort of the fundamentals that I learned from Ravi about how you guysbhave really done a awesome focus on SQL. But been able to maintain acid compliance, deal with distributed architectural challenges, and then bringing that over to database as a service? Is that the fundamental? What are some of the other differentiators? >> Yeah, that, that is the fundamental. We have an amazing platform that Ravi and our core engineering team have built. And we've talked about that, and I think Ravi mentioned that, the ease of SQL and applying that to a documented oriented database. and combining some of those capabilities with the ease of use. The ability that you can get up and running, signing up for our free trial. Couple of minutes later, you've got a database endpoint that is fully managed by Couchbase. And so we're doing the monitoring. We're doing alerting. We have calls to action based off what events are occurring within the database environment, ensuring it's always available, as well as doing kind of some of the mundane tasks of backup and recovery, scaling the environment upgrades and so forth. So it's really about ease of use making it, leveraging our incredibly robust broad platform, and then making that in different consumable model for our customers and developers and getting started really easily. The other thing that we've done, is really leveraged the best practices over the last 10 or 11 years, if some of the largest enterprises in the world using Couchbase for the mission critical applications. So we've codified those best practices. And that's how we keep that service high performant, always on, highly available. And that's one of the core value propositions that we're able to bring with Capella. It's really that management capability, global visibility of your clusters, coupled with what we believe is the best, no SQL database in the marketplace today. >> What about, what about costs total cost of ownership as you scale, a lot of times when you scale out and you get diseconomies of scale, it's kind of like, you know, you get that negative curve. What are you seeing? >> Yeah, we've done third party benchmark studies, which have proven out how we were able to linearly scale the environment and continue on that curve, as you add nodes, you're getting that incremental performance that you would expect. The other thing that we do that's really unique within in Couchbase is, our multi-dimensional scaling. And this allows you to place our services, things like data index query, full-text search, indexes and analytics. You can co-locate those on single nodes within the cluster, or you can have dedicated nodes for each one of those services. The reason that is important is, you get work-life isolation for those specific services within our cluster. The other thing that you can do is, you can match the compute infrastructure to the needs of each one of those services. So some services like query are much more core compute intensive, and that allows you to have a specific instance type that is optimized for that, reducing your cost. Indexes, where do you want very fast performance? You may want to have a higher amount of memory relative to the number, of course. So that ability to mix and match the infrastructure within the existing cluster, allows us to lower overall costs. That coupled with our blazing fast performance with our in-memory architecture, allows people to get incredible performance at scale. What we've proven out in the study that I mentioned earlier is we have that linear scalability, and you're able to do more for less, at the end of the day. You're getting more operations per second, per dollar, if you want to use that as a metric data. >> Thank you for that. What do customers need to think about when they want to get started with Capella? How difficult is it for people to jump in? >> It is incredibly simple. It's as simple as going to couchbase.com Clicking on start your free trial. You go into that free trial. You provide a minimal set of information for us, and it's literally a few clicks and you're going to have a database endpoint within three minutes. And that's really been a foundation of, of what we've been focused on over the last six to nine months is removing any friction we can in the process. Cause our goal is to give a firm a tremendous user experience and get people up and running as quickly as possible. So we're really, really proud of that. And then from a paid offering perspective, we have a number of offerings which are really aligned to the needs of each customer. Some individuals who want a larger cluster and they want to be able to pay for that, we've optimized service levels around that, in terms of level of support and the features that we think are appropriate for a dev cycle, a test cycle, and then inner production. And lastly, we'll be announcing a number of promotional starter pack bundles. Really trying to couple the overall service that we have with Capella, with some of our expertise. So helping new users get up and running in terms of things like index definitions, what's the best way to do document design and schema within Couchbase. Our end goal, is to match these services and bundles with the life cycle of application development. So in my development phase, what's the offering for me, as I move for production readiness, what services capabilities I need and then production and the ongoing, if I expand my use. So we've been really focused on how do we get people up and running as quickly as possible and how do we get them to production as quickly as possible at the lowest total cost. >> That's nice. That's a nice accelerant for, for customers. So as you heard upfront, I did a little research about the name, Capella. How did you choose it and why? >> Well, one thing I learned early in my career is naming is not a strong suit of mine. I leave that to John our Chief Marketing Officer in the overall team. We all have opinions, but I trust John. And we went through, I think it was over 60 names, seven rounds of debate to come up with Capella. But we wanted a name of strength. We liked the alliteration, Couchbase and Capella together. One of the little facts may have tipped it over is, I believe in Latin, it means little goats. So we kind of played, I'm from the bay area. So I was thinking to Jerry Rice, goat, greatest of all times. So that was nice play on that also. But I leave it to them and really happy with the overall name, love the, literation, love some of the hidden meanings within that. And we're really, really excited about getting it going. So you wouldn't want me to pick the name. I get a vote, but I would say my overall influence is a little bit lower than where John's is and, and Matt Cain, who I know you spoke with previously. >> I love it. Jerry Rice definitely is the little goat. I'm from New England. So of course, we think Tom Brady is the big goat. >> I know, I grew up in that Joe Montana era. So maybe you can take that offline after this interview, we're going to have around debate, but I guess a Superbowl trophies are the ultimate measure at the end of the day. >> Oh wait, I got a little stat for you. So, so Capella is also one of the 88 modern constellations as adopted by the international astronomical union. I.e not one of the ancient constellations. Pretty clever, right? >> Yeah, exactly. >> Scott, it's great to have you on the cube. Thanks so much, really appreciate it. >> Thank you so much. I really appreciate it All right. Thank you for watching. Our pleasure. Thank you for watching The Cubes coverage of Couchbase Connect 2021. Keep it right there for more great content. (upbeat music)

(upbeat music) >> This is Dave Vellante, and I'd like to welcome you back to The Cube's coverage of Couchbase ConnectONLINE, where the theme of this event is Modernize Now. And one of the big announcements is Capella, which of course, as you all undoubtedly know, is the brightest star in the constellation Auriga, which is Latin for Charioteer. Yup, you can find that in the constellation, that constellation in the night sky in late Feb, early March, in the Northern hemisphere. So with that little tidbit, I'd like to welcome in Scott Anderson to The Cube, who's the Senior Vice President of Product Management and Business Operations at Couchbase. Scott, welcome. Good to see you. >> Thank you very much. Thanks for having me. >> Yeah, it's our pleasure. So, you've launched Couchbase Capella. If I understand correctly, it's built on Couchbase server 7, which you launched just a few months ago in the middle of the Summer. Can you give us an overview of Capella? >> Yeah, absolutely. So Couchbase Capella, is our fully managed databases service for enterprise applications. One of the goals of launching Capella and our database as a service offering that we just announced today is, about increasing the accessibility of Couchbase. So, it's about making it easy for a Developer or an Enterprise to get up and running in just a few clicks and a couple of minutes. And about making it more affordable and accessible through the development phase, through the test phase, the production phase. So really it's about ease of use, having the right offerings aligned to the phase of development that a customer's in, and eventually into the production of their enterprise application, leveraging Capella and Couchbase Server 7. >> So let me ask you, I went pretty deep with Ravi on the, the technical side, and I want to understand, what makes Capella different from some of the competitive offerings? Is it the, sort of the fundamentals that I learned from Ravi about how you guysbhave really done a awesome focus on SQL. But been able to maintain acid compliance, deal with distributed architectural challenges, and then bringing that over to database as a service? Is that the fundamental? What are some of the other differentiators? >> Yeah, that, that is the fundamental. We have an amazing platform that Ravi and our core engineering team have built. And we've talked about that, and I think Ravi mentioned that, the ease of SQL and applying that to a documented oriented database. and combining some of those capabilities with the ease of use. The ability that you can get up and running, signing up for our free trial. Couple of minutes later, you've got a database endpoint that is fully managed by Couchbase. And so we're doing the monitoring. We're doing alerting. We have calls to action based off what events are occurring within the database environment, ensuring it's always available, as well as doing kind of some of the mundane tasks of backup and recovery, scaling the environment upgrades and so forth. So it's really about ease of use making it, leveraging our incredibly robust broad platform, and then making that in different consumable model for our customers and developers and getting started really easily. The other thing that we've done, is really leveraged the best practices over the last 10 or 11 years, if some of the largest enterprises in the world using Couchbase for the mission critical applications. So we've codified those best practices. And that's how we keep that service high performant, always on, highly available. And that's one of the core value propositions that we're able to bring with Capella. It's really that management capability, global visibility of your clusters, coupled with what we believe is the best, no SQL database in the marketplace today. >> What about, what about costs total cost of ownership as you scale, a lot of times when you scale out and you get diseconomies of scale, it's kind of like, you know, you get that negative curve. What are you seeing? >> Yeah, we've done third party benchmark studies, which have proven out how we were able to linearly scale the environment and continue on that curve, as you add nodes, you're getting that incremental performance that you would expect. The other thing that we do that's really unique within in Couchbase is, our multi-dimensional scaling. And this allows you to place our services, things like data index query, full-text search, indexes and analytics. You can co-locate those on single nodes within the cluster, or you can have dedicated nodes for each one of those services. The reason that is important is, you get work-life isolation for those specific services within our cluster. The other thing that you can do is, you can match the compute infrastructure to the needs of each one of those services. So some services like query are much more core compute intensive, and that allows you to have a specific instance type that is optimized for that, reducing your cost. Indexes, where do you want very fast performance? You may want to have a higher amount of memory relative to the number, of course. So that ability to mix and match the infrastructure within the existing cluster, allows us to lower overall costs. That coupled with our blazing fast performance with our in-memory architecture, allows people to get incredible performance at scale. What we've proven out in the study that I mentioned earlier is we have that linear scalability, and you're able to do more for less, at the end of the day. You're getting more operations per second, per dollar, if you want to use that as a metric data. >> Thank you for that. What do customers need to think about when they want to get started with Capella? How difficult is it for people to jump in? >> It is incredibly simple. It's as simple as going to couchbase.com Clicking on start your free trial. You go into that free trial. You provide a minimal set of information for us, and it's literally a few clicks and you're going to have a database endpoint within three minutes. And that's really been a foundation of, of what we've been focused on over the last six to nine months is removing any friction we can in the process. Cause our goal is to give a firm a tremendous user experience and get people up and running as quickly as possible. So we're really, really proud of that. And then from a paid offering perspective, we have a number of offerings which are really aligned to the needs of each customer. Some individuals who want a larger cluster and they want to be able to pay for that, we've optimized service levels around that, in terms of level of support and the features that we think are appropriate for a dev cycle, a test cycle, and then inner production. And lastly, we'll be announcing a number of promotional starter pack bundles. Really trying to couple the overall service that we have with Capella, with some of our expertise. So helping new users get up and running in terms of things like index definitions, what's the best way to do document design and schema within Couchbase. Our end goal, is to match these services and bundles with the life cycle of application development. So in my development phase, what's the offering for me, as I move for production readiness, what services capabilities I need and then production and the ongoing, if I expand my use. So we've been really focused on how do we get people up and running as quickly as possible and how do we get them to production as quickly as possible at the lowest total cost. >> That's nice. That's a nice accelerant for, for customers. So as you heard upfront, I did a little research about the name, Capella. How did you choose it and why? >> Well, one thing I learned early in my career is naming is not a strong suit of mine. I leave that to John our Chief Marketing Officer in the overall team. We all have opinions, but I trust John. And we went through, I think it was over 60 names, seven rounds of debate to come up with Capella. But we wanted a name of strength. We liked the alliteration, Couchbase and Capella together. One of the little facts may have tipped it over is, I believe in Latin, it means little goats. So we kind of played, I'm from the bay area. So I was thinking to Jerry Rice, goat, greatest of all times. So that was nice play on that also. But I leave it to them and really happy with the overall name, love the, literation, love some of the hidden meanings within that. And we're really, really excited about getting it going. So you wouldn't want me to pick the name. I get a vote, but I would say my overall influence is a little bit lower than where John's is and, and Matt Cain, who I know you spoke with previously. >> I love it. Jerry Rice definitely is the little goat. I'm from New England. So of course, we think Tom Brady is the big goat. >> I know, I grew up in that Joe Montana era. So maybe you can take that offline after this interview, we're going to have around debate, but I guess a Superbowl trophies are the ultimate measure at the end of the day. >> Oh wait, I got a little stat for you. So, so Capella is also one of the 88 modern constellations as adopted by the international astronomical union. I.e not one of the ancient constellations. Pretty clever, right? >> Yeah, exactly. >> Scott, it's great to have you on the cube. Thanks so much, really appreciate it. >> Thank you so much. I really appreciate it All right. Thank you for watching. Our pleasure. Thank you for watching The Cubes coverage of Couchbase Connect 2021. Keep it right there for more great content. (upbeat music)

>> Narrator: From theCUBE studios in Palo Alto in Boston, connecting with thought leaders all around the world. This is a CUBE conversation. >> As you know by now, Jeff Bezos, CEO of Amazon, is stepping aside from his CEO role and AWS CEO, Andy Jassy, is being promoted to head all of Amazon. Bezos, of course, is going to remain executive chairman. Now, 15 years ago, next month, Amazon launched it's simple storage service, which was the first modern cloud offering. And the man who wrote the business plan for AWS, was Andy Jassy, and he's navigated the meteoric rise and disruption that has seen AWS grow into a $45 billion company that draws off the vast majority of Amazon's operating profits. No one in the media has covered Jassy more intimately and closely than John Furrier, the founder of SiliconANGLE. And John joins us today to help us understand on theCUBE this move and what we can expect from Jassy in his new role, and importantly what it means for AWS. John, thanks for taking the time to speak with us. >> Hey, great day. Great to see you as always, we've done a lot of interviews together over the years and we're on our 11th year with theCUBE and SiliconANGLE. But I got to be excited too, that we're simulcasters on Clubhouse, which is kind of cool. Love Clubhouse but not since the, in December. It's awesome. It's like Cube radio. It's like, so this is a Cube talk. So we opened up a Clubhouse room while we're filming this. We'll do more live hits in studio and syndicate the Clubhouse and then take questions after. This is a huge digital transformation moment. I'm part of the digital transformation club on Clubhouse which has almost 5,000 followers at the moment and also has like 500 members. So if you're not on Clubhouse, yet, if you have an iPhone go check it out and join the digital transformation club. Android users you'll have to wait until that app is done but it's really a great club. And Jeremiah Owyang is also doing a lot of stuff on digital transformation. >> Or you can just buy an iPhone and get in. >> Yeah, that's what people are doing. I can see all the influences are on there but to me, the digital transformation, it's always been kind of a cliche, the consumerization of IT, information technology. This has been the boring world of the enterprise over the past, 20 years ago. Enterprise right now is super hot because there's no distinction between enterprise and society. And that's clearly the, because of the rise of cloud computing and the rise of Amazon Web Services which was a side project at AWS, at Amazon that Andy Jassy did. And it wasn't really pleasant at the beginning. It was failed. It failed a lot and it wasn't as successful as people thought in the early days. And I have a lot of stories with Andy that he told me a lot of the inside baseball and we'll share that here today. But we started covering Amazon since the beginning. I was as an entrepreneur. I used it when it came out and a huge fan of them as a company because they just got a superior product and they have always had been but it was very misunderstood from the beginning. And now everyone's calling it the most important thing. And Andy now is becoming Andy Jassy, the most important executive in the world. >> So let's get it to the, I mean, look at, you said to me over holidays, you thought this might have something like this could happen. And you said, Jassy is probably in line to get this. So, tell us, what can you tell us about Jassy? Why is he qualified for this job? What do you think he brings to the table? >> Well, the thing that I know about Amazon everyone's been following the Amazon news is, Jeff Bezos has a lot of personal turmoil. They had his marriage fail. They had some issues with the smear campaigns and all this stuff going on, the run-ins with Donald Trump, he bought the Washington post. He's got a lot of other endeavors outside of Amazon cause he's the second richest man in the world competing with Elon Musk at Space X versus Blue Origin. So the guy's a billionaire. So Amazon is his baby and he's been running it as best he could. He's got an executive team committee they called the S team. He's been grooming people in the company and that's just been his mode. And the rise of AWS and the business performance that we've been documenting on SiliconANGLE and theCUBE, it's just been absolutely changing the game on Amazon as a company. So clearly Amazon Web Services become a driving force of the new Amazon that's emerging. And obviously they've got all their retail business and they got the gaming challenges and they got the studios and the other diversified stuff. So Jassy is just, he's just one of those guys. He's just been an Amazonian from day one. He came out of Harvard business school, drove across the country, very similar story to Jeff Bezos. He did that in 1997 and him and Jeff had been collaborating and Jeff tapped him to be his shadow, they call it, which is basically technical assistance and an heir apparent and groomed him. And then that's how it is. Jassy is not a climber as they call it in corporate America. He's not a person who is looking for a political gain. He's not a territory taker, but he's a micromanager. He loves details and he likes to create customer value. And that's his focus. So he's not a grandstander. In fact, he's been very low profile. Early days when we started meeting with him, he wouldn't meet with press regularly because they weren't writing the right stories. And everyone is, he didn't know he was misunderstood. So that's classic Amazon. >> So, he gave us the time, I think it was 2014 or 15 and he told us a story back then, John, you might want to share it as to how AWS got started. Why, what was the main spring Amazon's tech wasn't working that great? And Bezos said to Jassy, going to go figure out why and maybe explain how AWS was born. >> Yeah, we had, in fact, we were the first ones to get access to do his first public profile. If you go to the Google and search Andy Jassy, the trillion dollar baby, we had a post, we put out the story of AWS, Andy Jassy's trillion dollar baby. This was in early, this was January 2015, six years ago. And, we back then, we posited that this would be a trillion dollar total addressable market. Okay, people thought we were crazy but we wrote a story and he gave us a very intimate access. We did a full drill down on him and the person, the story of Amazon and that laid out essentially the beginning of the rise of AWS and Andy Jassy. So that's a good story to check out but really the key here is, is that he's always been relentless and competitive on creating value in what they call raising the bar outside Amazon. That's a term that they use. They also have another leadership principle called working backwards, which is like, go to the customer and work backwards from the customer in a very Steve Job's kind of way. And that's been kind of Jobs mentality as well at Apple that made them successful work backwards from the customer and make things easier. And that was Apple. Amazon, their philosophy was work backwards from the customer and Jassy specifically would say it many times and eliminate the undifferentiated heavy lifting. That was a key principle of what they were doing. So that was a key thesis of their entire business model. And that's the Amazonian way. Faster, cheaper, ship it faster, make it less expensive and higher value. While when you apply the Amazon shipping concept to cloud computing, it was completely disrupted. They were shipping code and services faster and that became their innovation strategy. More announcements every year, they out announced their competition by huge margin. They introduced new services faster and they're less expensive some say, but in the aggregate, they make more money but that's kind of a key thing. >> Well, when you, I was been listening to the TV today and there was a debate on whether or not, this support tends that they'll actually split the company into two. To me, I think it's just the opposite. I think it's less likely. I mean, if you think about Amazon getting into grocery or healthcare, eventually financial services or other industries and the IOT opportunity to me, what they do, John, is they bring in together the cloud, data and AI and they go attack these new industries. I would think Jassy of all people would want to keep this thing together now whether or not the government allows them to do that. But what are your thoughts? I mean, you've asked Andy this before in your personal interviews about splitting the company. What are your thoughts? >> Well, Jon Fortt at CNBC always asked the same question every year. It's almost like the standard question. I kind of laugh and I ask it now too because I liked Jon Fortt. I think he's an awesome dude. And I'll, it's just a tongue in cheek, Jassy. He won't answer the question. Amazon, Bezos and Jassy have one thing in common. They're really good at not answering questions. So if you ask the same question. They'll just say, nothing's ever, never say never, that's his classic answer to everything. Never say never. And he's always said that to you. (chuckles) Some say, he's, flip-flopped on things but he's really customer driven. For example, he said at one point, no one should ever build a data center. Okay, that was a principle. And then they come out and they have now a hybrid strategy. And I called them out on that and said, hey, what, are you flip-flopping? You said at some point, no one should have a data center. He's like, well, we looked at it differently and what we meant was is that, it should all be cloud native. Okay. So that's kind of revision, but he's cool with that. He says, hey, we'll revise based on what customers are doing. VMware working with Amazon that no one ever thought that would happen. Okay. So, VMware has some techies, Raghu, for instance, over there, super top notch. He worked with Jassy, directly in his team Sanjay Poonen when they went to business school together, they cut a deal. And now Amazon essentially saved VMware, in my opinion. And Pat Gelsinger drove that deal. Now, Pat Gelsinger, CEO, Intel, and Pat told me that directly in candid conversation off theCUBE, he said, hey, we have to make a decision either we're going to be in cloud or we're not going to be in cloud, we will partner. And I'll see, he was Intel. He understood the Intel inside mentality. So that's good for VMware. So Jassy does these kinds of deals. He's not afraid he's got a good stomach for business and a relentless competitor. >> So, how do you think as you mentioned Jassy is a micromanager. He gets deep into the technology. Anybody who's seen his two hour, three hour keynotes. No, he has a really fine grasp of the technology across the entire stack. How do you think John, he will approach things like antitrust, the big tech lash of the unionization of the workforce at Amazon? How do you think Jassy will approach that? >> Well, I think one of the things that emerges Jassy, first of all, he's a huge sports fan. And many people don't know that but he's also progressive person. He's very progressive politically. He's been on the record and off the record saying things like, obviously, literacy has been big on, he's been on basically unrepresented minorities, pushing for that, and certainly cloud computing in tech, women in tech, he's been a big proponent. He's been a big supporter of Teresa Carlson. Who's been rising star at Amazon. People don't know who Teresa Carlson is and they should check out her. She's become one of the biggest leaders inside Amazon she's turned around public sector from the beginning. She ran that business, she's a global star. He's been a great leader and he's been getting, forget he's a micromanager, he's on top of the details. I mean, the word is, and nothing gets approved without Andy, Andy seeing it. But he's been progressive. He's been an Amazon original as they call it internally. He's progressive, he's got the business acumen but he's perfect for this pragmatic conversation that needs to happen. And again, because he's so technically strong having a CEO that's that proficient is going to give Amazon an advantage when they have to go in and change how DC works, for instance, or how the government geopolitical landscape works, because Amazon is now a global company with regions all over the place. So, I think he's pragmatic, he's open to listening and changing. I think that's a huge quality >> Well, when you think of this, just to set the context here for those who may not know, I mean, Amazon started as I said back in 2006 in March with simple storage service that later that year they announced EC2 which is their compute platform. And that was the majority of their business, is still a very large portion of their business but Amazon, our estimates are that in 2020, Amazon did 45 billion, 45.4 billion in revenue. That's actually an Amazon reported number. And just to give you a context, Azure about 26 billion GCP, Google about 6 billion. So you're talking about an industry that Amazon created. That's now $78 billion and Amazon at 45 billion. John they're growing at 30% annually. So it's just a massive growth engine. And then another story Jassy told us, is they, he and Jeff and the team talked early on about whether or not they should just sort of do an experiment, do a little POC, dip their toe in and they decided to go for it. Let's go big or go home as Michael Dell has said to us many times, I mean, pretty astounding. >> Yeah. One of the things about Jassy that people should know about, I think there's some compelling relative to the newest ascension to the CEO of Amazon, is that he's not afraid to do new things. For instance, I'll give you an example. The Amazon Web Services re-invent their annual conference grew to being thousands and thousands of people. And they would have a traditional after party. They called a replay, they'd have a band like every tech conference and their conference became so big that essentially, it was like setting up a live concert. So they were spending millions of dollars to set up basically a one night concert and they'd bring in great, great artists. So he said, hey, what's been all this cash? Why don't we just have a festival? So they did a thing called Intersect. They got LA involved from creatives and they basically built a weekend festival in the back end of re-invent. This was when real life was, before COVID and they turned into an opportunity because that's the way they think. They like to look at the resources, hey, we're already all in on this, why don't we just keep it for the weekend and charge some tickets and have a good time. He's not afraid to take chances on the product side. He'll go in and take a chance on a new market. That comes from directly from Bezos. They try stuff. They don't mind failing but they put a tight leash on measurement. They work backwards from the customer and they are not afraid to take chances. So, that's going to board well for him as he tries to figure out how Amazon navigates the contention on the political side when they get challenged for their dominance. And I think he's going to have to apply that pragmatic experimentation to new business models. >> So John I want you to take on AWS. I mean, despite the large numbers, I talked about 30% growth, Azure is growing at over 50% a year, GCP at 83%. So despite the large numbers and big growth the growth rates are slowing. Everybody knows that, we've reported it extensively. So the incoming CEO of Amazon Web Services has a TAM expansion challenge. And at some point they've got to decide, okay, how do we keep this growth engine? So, do you have any thoughts as to who might be the next CEO and what are some of their challenges as you see it? >> Well, Amazon is a real product centric company. So it's going to be very interesting to see who they go with here. Obviously they've been grooming a lot of people. There's been some turnover. You had some really strong executives recently leave, Jeff Wilkes, who was the CEO of the retail business. He retired a couple of months ago, formerly announced I think recently, he was probably in line. You had Mike Clayville, is now the chief revenue officer of Stripe. He ran all commercial business, Teresa Carlson stepped up to his role as well as running public sector. Again, she got more power. You have Matt Garman who ran the EC2 business, Stanford grad, great guy, super strong on the product side. He's now running all commercial sales and marketing. And he's also on the, was on Bezos' S team, that's the executive kind of team. Peter DeSantis is also on that S team. He runs all infrastructure. He took over for James Hamilton, who was the genius behind all the data center work that they've done and all the chip design stuff that they've innovated on. So there's so much technical innovation going on. I think you still going to see a leadership probably come from, I would say Matt Garman, in my opinion is the lead dog at this point, he's the lead horse. You could have an outside person come in depending upon how, who might be available. And that would probably come from an Andy Jassy network because he's a real fierce competitor but he's also a loyalist and he likes trust. So if someone comes in from the outside, it's going to be someone maybe he trusts. And then the other wildcards are like Teresa Carlson. Like I said, she is a great woman in tech who's done amazing work. I've profiled her many times. We've interviewed her many times. She took that public sector business with Amazon and changed the game completely. Outside the Jedi contract, she was in competitive for, had the big Trump showdown with the Jedi, with the department of defense. Had the CIA cloud. Amazon set the standard on public sector and that's directly the result of Teresa Carlson. But she's in the field, she's not a product person, she's kind of running that group. So Amazon has that product field kind of structure. So we'll see how they handle that. But those are the top three I think are going to be in line. >> So the obvious question that people always ask and it is a big change like this is, okay, in this case, what is Jassy going to bring in? And what's going to change? Maybe the flip side question is somewhat more interesting. What's not going to change in your view? Jassy has been there since nearly the beginning. What are some of the fundamental tenets that he's, that are fossilized, that won't change, do you think? >> I think he's, I think what's not going to change is Amazon, is going to continue to grow and develop their platform business and enable more SaaS players. That's a little bit different than what Microsoft's doing. They're more SaaS oriented, Office 365 is becoming their biggest application in terms of revenue on Microsoft side. So Amazon is going to still have to compete and enable more ecosystem partners. I think what's not going to change is that Bezos is still going to be in charge because executive chairman is just a code word for "not an active CEO." So in the corporate governance world when you have an executive chairman, that's essentially the person still in charge. And so he'll be in charge, will still be the boss of Andy Jassy and Jassy will be running all of Amazon. So I think that's going to be a little bit the same, but Jassy is going to be more in charge. I think you'll see a team change over, whether you're going to see some new management come in, Andy's management team will expand, I think Amazon will stay the same, Amazon Web Services. >> So John, last night, I was just making some notes about notable transitions in the history of the tech business, Gerstner to Palmisano, Gates to Ballmer, and then Ballmer to Nadella. One that you were close to, David Packard to John Young and then John Young to Lew Platt at the old company. Ellison to Safra and Mark, Jobs to Cook. We talked about Larry Page to Sundar Pichai. So how do you see this? And you've talked to, I remember when you interviewed John Chambers, he said, there is no rite of passage, East coast mini-computer companies, Edson de Castro, Ken Olsen, An Wang. These were executives who wouldn't let go. So it's of interesting to juxtapose that with the modern day executive. How do you see this fitting in to some of those epic transitions that I just mentioned? >> I think a lot of people are surprised at Jeff Bezos', even stepping down. I think he's just been such the face of Amazon. I think some of the poll numbers that people are doing on Twitter, people don't think it's going to make a big difference because he's kind of been that, leader hand on the wheel, but it's been its own ship now, kind of. And so depending on who's at the helm, it will be different. I think the Amazon choice of Andy wasn't obvious. And I think a lot of people were asking the question who was Andy Jassy and that's why we're doing this. And we're going to be doing more features on the Andy Jassy. We got a tons, tons of content that we've we've had shipped, original content with them. We'll share more of those key soundbites and who he is. I think a lot of people scratching their head like, why Andy Jassy? It's not obvious to the outsiders who don't know cloud computing. If you're in the competing business, in the digital transformation side, everyone knows about Amazon Web Services. Has been the most successful company, in my opinion, since I could remember at many levels just the way they've completely dominated the business and how they change others to be dominant. So, I mean, they've made Microsoft change, it made Google change and even then he's a leader that accepts conversations. Other companies, their CEOs hide behind their PR wall and they don't talk to people. They won't come on Clubhouse. They won't talk to the press. They hide behind their PR and they feed them, the media. Jassy is not afraid to talk to reporters. He's not afraid to talk to people, but he doesn't like people who don't know what they're talking about. So he doesn't suffer fools. So, you got to have your shit together to talk to Jassy. That's really the way it is. And that's, and he'll give you mind share, like he'll answer any question except for the ones that are too tough for him to answer. Like, are you, is facial recognition bad or good? Are you going to spin out AWS? I mean these are the hard questions and he's got a great team. He's got Jay Carney, former Obama press secretary working for him. He's been a great leader. So I'm really bullish on, is a good choice. >> We're going to jump into the Clubhouse here and open it up shortly. John, the last question for you is competition. Amazon as a company and even Jassy specifically I always talk about how they don't really focus on the competition, they focus on the customer but we know that just observing these folks Bezos is very competitive individual. Jassy, I mean, you know him better than I, very competitive individual. So, and he's, Jassy has been known to call out Oracle. Of course it was in response to Larry Ellison's jabs at Amazon regarding database. But, but how do you see that? Do you see that changing at all? I mean, will Amazon get more publicly competitive or they stick to their knitting, you think? >> You know this is going to sound kind of a weird analogy. And I know there's a lot of hero worshiping on Elon Musk but Elon Musk and Andy Jassy have a lot of similarities in the sense of their brilliance. They got both a brilliant people, different kinds of backgrounds. Obviously, they're running different things. They both are builders, right? If you were listening to Elon Musk on Clubhouse the other night, what was really striking was not only the magic of how it was all orchestrated and what he did and how he interviewed Robin Hood. He basically is about building stuff. And he was asked questions like, what advice do you give startups? He's like, if you need advice you shouldn't be doing startups. That's the kind of mentality that Jassy has, which is, it's not easy. It's not for the faint of heart, but Elon Musk is a builder. Jassy builds, he likes to build stuff, right? And so you look at all the things that he's done with AWS, it's been about enabling people to be successful with the tools that they need, adding more services, creating things that are lower price point. If you're an entrepreneur and you're over the age of 30, you know about AWS because you know what, it's cheaper to start a business on Amazon Web Services than buying servers and everyone knows that. If you're under the age of 25, you might not know 50 grand to a hundred thousand just to start something. Today you get your credit card down, you're up and running and you can get Clubhouses up and running all day long. So the next Clubhouse will be on Amazon or a cloud technology. And that's because of Andy Jassy right? So this is a significant executive and he continue, will bring that mindset of building. So, I think the digital transformation, we're in the digital engine club, we're going to see a complete revolution of a new generation. And I think having a new leader like Andy Jassy will enable in my opinion next generation talent, whether that's media and technology convergence, media technology and art convergence and the fact that he digs music, he digs sports, he digs tech, he digs media, it's going to be very interesting to see, I think he's well-poised to be, and he's soft-spoken, he doesn't want the glamorous press. He doesn't want the puff pieces. He just wants to do what he does and he puts his game do the talking. >> Talking about advice at startups. Just a quick aside. I remember, John, you and I when we were interviewing Scott McNealy former CEO of Sun Microsystems. And you asked him advice for startups. He said, move out of California. It's kind of tongue in cheek. I heard this morning that there's a proposal to tax the multi-billionaires of 1% annually not just the one-time tax. And so Jeff Bezos of course, has a ranch in Texas, no tax there, but places all over. >> You see I don't know. >> But I don't see Amazon leaving Seattle anytime soon, nor Jassy. >> Jeremiah Owyang did a Clubhouse on California. And the basic sentiment is that, it's California is not going away. I mean, come on. People got to just get real. I think it's a fad. Yeah. This has benefits with remote working, no doubt, but people will stay here in California, the network affects beautiful. I think Silicon Valley is going to continue to be relevant. It's just going to syndicate differently. And I think other hubs like Seattle and around the world will be integrated through remote work and I think it's going to be much more of a democratizing effect, not a win lose. So that to me is a huge shift. And look at Amazon, look at Amazon and Microsoft. It's the cloud cities, so people call Seattle. You've got Google down here and they're making waves but still, all good stuff. >> Well John, thanks so much. Let's let's wrap and let's jump into the Clubhouse and hear from others. Thanks so much for coming on, back on theCUBE. And many times we, you and I've done this really. It was a pleasure having you. Thanks for your perspectives. And thank you for watching everybody, this is Dave Vellante for theCUBE. We'll see you next time. (soft ambient music)

>>from around the globe. It's the Cube with digital coverage of AWS reinvent 2020. Special coverage sponsored by A. W s Global Partner Network. Welcome back to the cubes Coverage Cube. Virtual coverage of AWS reinvent 2020. We're not in person this year. We have to do the all the Cube interviews remote. But we've got two great guests from the Amazon Web Services Partner Network A W s a p N. Craig Wicks, senior manager of AWS Satisfactory. Todd Golden, Principal Cloud Architect, Global SAS Tech Lead Gentlemen, Thanks for joining the Cube. Appreciate it. >>Thanks, John. >>Um, first of all, I want to get in Craig with you and just take them in to explain what is the satisfactory. Because this is a unique and growing team within AWS. Um, we've been saying it for years, but the moves to the cloud houses has been obvious is mainstream. But your team, your role is doing some interesting things. Explain. What is the satisfactory? What do you guys do? >>Yeah, Thanks, John. Really delighted to be here today. Yeah, the satisfactory. Maybe for those that may be somewhat disappointing. There's no factory, no sort of easy button for SAS. There's no templates. There's no machinery. We wish we had it. But we're really a global team of subject matter. Experts in SAS that really help AWS partners transform their business right both business and technical to the Saas model and help them do that faster with greater confidence and all the best practices that our team has learned over the years. >>And Todd, your solution architect. So you're the partner. You have to help your customers get their, um, you know, being a solution architect really is like the mechanic of the business. You gotta lay out the engine of innovation and this is what clients are trying to strive for. Can you take him and explain how your role is involved in this? Obviously, SAS is not. It makes sense on paper, but making it happen is not trivial. What do you What do you what? Your role. >>Yeah, so I'm very much, in fact, connected to Craig. We're all part of the same organization, and we're sort of very much deeply involved with these organizations. We get very much, um, embedded with these these partners that we work with and really helped them through sort of the nuts and bolts of what it means to transform an application thio multi tenant sort of SAS models. That means helping them figure out how to map that two different AWS services. It means helping them figure out how to realize the sort of the business objective objectives of transforming to sass. But really, our goal is to sort of just get into the weeds with them, figure out their specific domain because there's no one size fits all. Versace figure out how that really connects toe, where they're at in their trajectory, in terms of where they're trying to get to end of the journey is a business and then find that alignment with a W S services. So there's sort of that trifecta of lining all those bits up and sort of formulating, Ah, technical strategy that really brings all those pieces together for them. >>Craig, I want to get your thoughts on the trends, and Todd, you can weigh in to want to get your reaction. Over the weekend, I was picking some folks on on the Internet, linked in and whatnot from eight years ago when that we did our first cube at reinvent with second year of reinvent, and nobody was there in the industry press, wasn't there were the first I think press to be there. Um and a lot of people have either moved on to big positions or companies have gone public. I bought me. Major things have happened in 2013 clouds certainly rose there. SAS became the business model. Everyone kind of knows that. But the dynamics today are different when you think about the on premises and you got the edge. A big part of the themes this week in the next couple weeks as we unfold here reinvent. This >>is >>different, but the same Can you share? What is the trend that people are riding on? What's the What's the wind of innovation? >>Yeah, and certainly I would say, First of all, just personally, I've been in SAS for some time. It was involved early on, in sort of, ah, model. We called the application service provider model, which was sort of a predecessor assassin, you know, the gray hairs out to remember that one. But, uh, you know, I think first of all, I would say SAS is everywhere and people wanted to be everywhere And so there's just We just see insatiable demand for sass from from customers out there, right? And I think the challenge problem we see is that organizations that we work with just can't transition fast enough, right? The rial technical challenges that air in front of them in terms of how they build an architect, Assaf solution and but most importantly, the business model that sort of underpins. That is a huge transformation for companies that they're going through. And that's one of the things that we just see. You know, Justin, my time in satisfactory native us. The range of organizations we worked with has just changed. So, you know, early on we're working with companies and infrastructure around security and storage and those areas, and the last few years it's just expanded to all sorts of industries, from public sector oil and gas. Um, sort of financial services. You know, everyone really wants to build this model, and that's really, you know, born around the customer demand they're seeing for South. >>That's interesting. You mention challenge. I wanna get your thoughts. You mentioned a SP application service provided you remember those days, you know, vividly, mainly a tech thing, but it's really a consumption model around delivery of software and services. And, you know, Web services came on in 2000. The rest is history. We've got Amazon Web services, but now, as you get more vertically expanded oil and gas and go mainstream. But what >>are some >>of the challenges? Because as people get smarter, it's not just about self service or buy as you go. It's a business model you mentioned. Is it a managed services itself? Services has been embedded into the application. Can you share some of the new things that are emerging on the business model side that people should pay attention to? What, some of those challenges? Yeah, I >>think one of the first things is just a fundamentally are operating service, right? So that changes the dynamics to everything, for in terms of how you engage with customers to how you deliver. You know, the kind of simple thing E I often tell people is you know who's answering the pager now. If someone goes, if something goes wrong, it's not your customer. That's you right, and you have to manage and sustain that service and and really continue Thio provide innovation and value to customers. Right? That's one of the challenges we see is is organizations are now on a treadmill in terms of innovation where customers expect something from South model and you really have to deliver on that. And then one of the final points I would say is it really transforms how you think about going to market right sales and marketing your fundamentally transformed. And, um, you know, traditional ways of really selling software and technology. Um, largely go away and go away and some good ways. And SAS, where you can really put customers in experience right and have them evaluate your technology in a manner where they can have a trial experience, right in a way, toe really introduce them to technology very slowly. And then, um, they grow over time, right? As they see value in that software, which is very aligned, how we think about, you know, a AWS our own technology. >>Okay, Todd, I gotta ask you out. So you want to drive that car? The SAS car, What's under the hood with the right tires? What's the conditions? And it's a technical issues here. If I'm a customer, I'm in a PM, partner. Okay, I'm in there. I got a traditional business pandemic hits or just my business models forcing me. What's your advice? What have I got to do? What's the playbook on the technical side? How doe I go to the next level? >>Well, uh, you know, we're obviously gonna ask a lot of questions and probably the answer to that, sadly, like most technical people will say to you is it depends which is never the answer anybody wants to hear. But so we're definitely gonna ask a lot of questions you about, like where you're at. What are the immediate sort of pressures in your business? This is where the technical team people on our team tended wearing a little bit of a business hat here where we want to know before we sort of guide you down any one particular technical path, like water. Sort of the key sort of dimensions of getting you to a SAS till every model, but but probably as a theme generally were saying to people is, Let's look at how we can get you there incrementally. Let's get you into a SAS model as fast as we possibly can. So we have a lot of different sort of patterns and strategies will use that air about sort of incremental adoption of SAS, which are how can I sort of lift my existing environment, move it into a SAS model, present a SAS offering to the business, Let me operate and run, get the metrics and analytics, get the sort of operational efficiency and the Dev ops goodness of sass, and then sort of move after that into the insides of that sass application. And think about now, how can I begin to move that two more modern constructs? How can I move that into containers? Potentially? Or how can I begin to adopt server list technologies? How can I apply? I am another constructs to achieve Tenet isolation. Eso We're really just trying to put them in a position where they can sort of incrementally modernize their applications while still realizing the benefits of getting to market on a saas model. >>So you're saying that the the playbook is come in low hanging fruit is used existing core building blocks, you see two s three dynamo whatever and then hit the higher level services as you get more experience Or is there a certain recipe that you see working for customers? >>So it's it's probably less about that. It's probably It's not about necessarily where you're out in the service continuum and which services you're using. Um, well, we're gonna move you to a set of services that are probably a good set of services that are that way to move your monolith in most effectively into a saas model as a beginning point that could land you in to that could land you in containers. The more important thing we're going to do here is we're going to surround the that sort of experience with all the other moving parts that you have tow have billing metrics. We're gonna We're gonna build in on boarding so that you could get frictionless on boarding. Those are all gonna be net new things you have to build. We're probably gonna change your identity model and connect that up with cognito or one of our partners solutions eso for us. It's it's sort of grabbing your existing environment. Can we move it over effectively, maybe modernize it a little bit along the way, but more importantly, build all those horizontal concepts in leveraging the right AWS services for you, uh, to bring that to life. >>That's actually smart, aleck. The way you described it that way, it's almost as if it's the core tenant of what Amazon stood for. You standing up fast and you get value, right? So what you're saying is, whatever it takes is a variety of tools to stand it up. I mean, this is interesting, Craig, and talk if you can comment on this because one of the things that we've been reporting on, I've done probably a dozen interviews specifically around companies that have moved to the cloud early, proactively kind of in this way, not in a major radical way. But, you know, operationally they have been transforming, you know, piece by piece. How Todd you laid it out and then pandemic it. And they've had successfully position themselves to take advantage of the forcing function of necessity of dealing with, you know, remote work and all these things that just clobbered him so and again. They were on the wave at the right time. Kind of because they had to because they did the right work. This >>is a >>factor. This is gonna tell sign. Can you guys share your reaction? What you've seen with satisfactory because this >>is the >>benefit of moving to the club. Being positioned needs pandemic today. Tomorrow, its edge. What's after that? Right space. I mean, there's a lot of things. This is kind of the playbook. What's your reaction to that? Correct. >>Yeah. I certainly see, you know, organizations that we work with that have really delivering the SAS model, being more agile, right. The ability to sort of flex resource is and change the way they sell and work with customers and find ways to, um, sort of delivered to them. Um, that don't require, um, some of the things that we're really maybe some of the things that are holding them back from traditional software in terms of how fast they deliver new features and services and, you know, changing to sort of market and world dynamics very quickly. Right is a big part of that. And, you know, one of the things we talked about in the SAS model is really not just getting to sass, but being to deliver in that model, right? And dr Innovations to customers very quickly. Um, s O that you really getting sort of securing, you know, sort of them is the loyal customers and sort of a lifetime customer. Hopefully, um, you know, that's a big part of status. >>Yeah. And there's two types of organizations that you guys have been successful with. The startup, obviously, you know, category creators or disruptors will come in, you know, come in with a nap. Born in the cloud, kick some ass you've seen that movie happens all the time still going on. And then you got the existing organizations that have to stay in that innovation wave and not get crushed by the by the change can you guys share how the factories working? The satisfactory from a mix of of clients is Atmore establishes its startups in between. Give us a taste of What's the makeup? >>Yeah, it's range just to give you a range of some of the companies worked with from kind of legacy technology companies or companies that have been around in some time, like BMC, you know, f five alfresco we've all worked with over the past few years, and they've launched products with our team on a W s. You know, to kind of start ups like Matile. Ian. You know, Cloud zero. Cokie City, which just launched a data management service announced here at Reinvent um, two very kind of specific industry players. I think this is a trend we've seen most recently where, you know, we work with organizations like NASDAQ. I based tea in the aerospace, you know, area Emerson in oil and gas. We've seen in a number of oil and gas companies really come to us based on sort of dynamics, their industry and the constraints the customers are in in terms of how they could deliver the value they provide, >>is there. Is there a key thing that's popping out of all these deals that kind of has a is a tale sign of pattern or, um, a specific thing That's obvious on then, when you look at the data, when you zoom out, >>Yeah, I think one thing I would just say people underestimate the transformation. They have to go through continually. And we still have organizations that come to us, and maybe they come to Todd or others, and they're really they're envisioning This is a technical transformation, right? And they sort of want to talk all about the application and and sort of the new architecture er they they want to move to. But we really see theon pertinent A line business and technology around sass is a model, and that's really fundamental to getting it right. And so, you know, often we see organizations that really have unrealistic launch dates, you know, which is pretty common in software and services these days, but particularly a staff model. We just see that, you know, they underestimate the work in front of them and kind of what they need to bring with that >>Todd real quick for it against the announcements which are cool. Um, technical things that pop out of these organizations is there, Uh, the cream kind of rises to the top. When you look at the value proposition, what do they focused on? Technically, >>um, you know, it's interesting because to me, ah, lot of the focus tends to be more on the things that would surprise you. Like a lot of people are wanna sort of think about how to design the ins Thea click ation on the business logic of their application and take advantage of this scale on the sizing of AWS and those things, they're still all true. But but really an assassin organization with a really successful SAS organizations will see ah, lot more shift to the agility and the operational efficiency, right? So really good organizations will say we're going to invest in all the metrics and all the land analytics, all the tooling that lets us really have our finger on the pulse of what our customers are doing. And then they'll derive all their tech and their business strategy based on this really data driven experience. And I see that as the trend and the thing we certainly advocate a ton inside of the satisfactory is don't under invest in that data because that data is really especially in a multi 10 environment where everybody's running in this sort of shared environment. That data is essential to understanding how to morph your business, how to innovate, understand how your cost profile is really evolving. And so I see the really strong organizations building lots of the sort of foundational bits here, even ahead sometimes of building features and functions into their own products. >>It's not only moving fast and deploying tech is moving fast on the business model innovation as well. You're basically saying, Don't overplay your hand and try toe lock in the business model logic because it's gonna change with the data that what you're saying. >>Yeah, they're playing for for the innovation. They're playing for the agility they're playing for new markets, new segments that may evolve. And so they're really trying to put themselves in the position of being able to pivot and move. And they're really taking pride in the fact that their technology lets them do that. >>You know, that's not that's a business model That's not for the faint of heart. You know, when you have a market that has a lot of competitiveness to it and certainly was seeing the sea change happening over this year in the past few years, with cloud completely changing the playing field, winners and losers air emerging. And that's I think, this key it's you know, as I said in The Godfather, you know, you need a wartime conciliatory for these kind of times, and this is kind of what we're seeing, and I think that's a great point. Todd. Good stuff there. Um Okay. So announcements. You guys had some things on stage. Talked about Craig. You guys launching some new stuff? New programs? >>Yeah, absolutely mhm. Yeah, John, I guess our model is really to learn from a range of partners and experiences we have and then, you know, build tools and approaches to help everyone go faster, right? Because we certainly can't work with thousands organizations. And one of things that our team has had the opportunity over the last few years is published ton of articles, Blog's white papers, you know, very specific approaches to building SAS solutions. If you search Todd Golding out there on YouTube or anything, you'll find a bunch of things. But we wanted to bring on the altogether. And so we've created Central directory called Satisfactory Insights. Hug. And there's a right now over 70 unique pieces of content that our team is produced and curated. Whether you're starting on your staff journey right, you need socks one on one and business planning to level 400 right? 10 10 in isolation from Todd Golding, right. That's all there and available to you on the satisfactory program page. >>What? Some of the interesting things that came out of that that data from the insights you can share. >>Yeah, a couple things that we have we published most recently I would point to are really interesting. We just recently published a five case study where we go deeper in terms of their transformation. To really understand what was, you know, behind the scenes and that, um, we also published a white paper called the SAS Journey Framework, where for the first time, our team really broke down the journey. And what are the steps required? And what are some of the key questions you need to ask Onda Final piece I'd point to for people that Todd talks to is, we have, ah, white paper on SAS tended isolation strategies where we really go deep on on that particular challenge and what's there and that's also published and available on our satisfactory inside sub. Could you >>just define what is that mean tenant isolation strategies? What does that >>go to Todd with that for sure? >>Let's get that on the record. What is the definition of SAS tenant isolation? >>Sure, sure. So, you know, I think I've been in the room and with a lot of people that reinvent and basically have been in Chuck talks and said, You know what's tended isolation to you, and a lot of people will say Oh, that's authentication. Essentially, somebody got into the system. So now I know my system is isolated, but and a multi tenant environment right where we're running all this. These resource is in this data all co mingled from all of these different tenants. Um, it would be a huge blow to the business if one tenant somehow inadvertently exposed the resource or exposed to the resource is of another tenant. And so, fundamentally 10 of isolation is all of these techniques and strategies and architectural patterns that you use to ensure that one tenant can inadvertently get access to the resource is of another tenant s. So it's a sort of a layer of protection and security that goes beyond just the authentication and authorization schemes that you'll typically see in a cess architectures. >>So that's basically like having your own room lock and key doorway not just getting in, but no one can access your your stuff. >>Yeah, so it's a whole set of measures you could imagine. Identity and access management and other policies sort of defining tenant boundaries and saying, as each tenant is trying to access a resource or trying toe, interact with the system in some way, you've put these extra walls up to ensure that you can't cross those boundaries. >>Todd, I want to get your thoughts on this. Well, architected sas lens piece. What is this all about? >>Well, um, a WS has had for a long time the sort of the well architected framework, which has been a really great set of sort of guiding principles and best practices around how to design an architect solutions on top of AWS. And certainly SAS providers have been using that all along the way to sort of ask foundational questions of their architecture. Er But there's always been this layer of additional sort of SAS considerations that have set on top of that are that air SAS specific architectural patterns. And so what we've done is we've used this mechanism called the well architected lens that lets us essentially take our SAS architectural principles and extend the well architected framework and introduce all these concepts into the SAS and to the architecture pillars that really ask the hard SAS architecture questions so security operations reliability all the sort of classic pillars that are part of the well architected framework now have a SAS specific context added to them. Thio to really go after those areas that are unique to sass providers. And this really gives developers, architects, consultants the ability to sit down and look at a SAS application and evaluate its alignment with these best practices. And so far we can really positive response. Thio the content. >>Great job, guys doing great work. Finally, there's something new that you guys are announcing today to make life easier. Preview building SAS on a bus. What's that? What's that about? >>Sure. Eso You know you can imagine. We've been working with thes SAS providers for a number of years now, and as we've worked with them, we've seen a number of different themes emerge on and and we've run into this pattern That's pretty common where we'll see these, uh, these customers that have a classic sort of installed software model. They're installing it on premises or in the cloud, but basically each customer's sort of has their own version of the product. They have one off versions. They have their potentially have customization that are different. And while this works for some time for these businesses, what they find is they sort of run into this operational efficiency and cost wall. Whereas they're trying to grow their businesses, they they just really can't. They can't sort of keep up based on the way that they're running their current systems, and this is sort of a natural draw to move them to sass. But the other pattern that we've seen here is that these organizations are sometimes not in a position where they have the luxury of sort of going away and just saying, Hey, I'll rewrite my system or modernize it and make all of these changes. There could be any number of factors competitive pressures, market realities, cost that just make that too much of, ah, difficult process for them to be able to just take the application and rewrite it. And so what we did is sort of try to acknowledge that and say, What could we do to give you, ah, more prescriptive solution of this, the sort of turn key, easy button, if you will to say, Take my existing monolithic application that I deliver in this classic way and plug it into an existing pre built framework. An environment that is essentially includes all these foundational bits of assassin Vyron mint. And let me just take my monolith, move it into that environment and begin toe offer a SAS product to to the universe. And so what we've done is we've printed something and were introduced. We've introduced this thing called a W s SAS boost So a W s ass boost. It's not on a W s service. It is an open source reference environment. So you essentially download it. You install it into your own A W s account. And then this installs all these building blocks of sass that we've talked about. And it gives you all this sort of prescriptive ability to say, How can I now take my existing monolithic environment lifted into this experience and begin toe offer that to the market as a sash products. So it has, you know, it has billing. It has metrics and analytics. All the things we've been kind of talked about here they're all baked into that from the ground up on. We've also offered this an open source model. So our hope here is that this is really just the starting point of this solution, which, which will solve one business case. But our hope is that essentially the open source community will lean in with us, help us figure out how to evolve and make this into something that addresses a broader set of needs. >>Well, I love the SAS boost. Firstly, I wanna take the energy drink business there. Right there. It sounds like an energy drink. Give me some of that sass boost by that at 7. 11. Craig, I wanna get the final word with you. You've been the SAS business for over 20 years. You've seen this movie before. There are a lot of people who know the SAS business, and some people are learning it. You guys are helping people get there. It's different, though. Now what's different today? Because it's it's It's not just your grandfather's sass. As the expression goes, it's different. It's new dynamics. What is, uh, the most important thing people should pay attention to Whether they have a SAS legacy kind of mindset or they're new to the game. Take us >>home. Yeah, I >>think certainly, you know, getting disaster is not the end of the journey. You know, we see really successful fast provider. Just continue to differentiate, right? And then one of the things that I think we've seen successful SAT providers do is really take advantage of AWS services to go faster. Right? And that's really key, I think in this model is to really find a way to accelerate your business and deliver value faster. Andi just sort of keep that differentiation innovation there. Um, but I would just say now that there's more information out there available than ever, you know, and not only from from our team, but from a host of people that really are our SAS experts and follow the space. And so lots of resources available. Everyone >>All right, gentlemen, Thanks for coming on. Great insight. Great segment on getting to sass, sass boost Just the landscape. You guys are helping customers get there, and that's really the top priority. It's necessity is the mother of all invention during this pandemic. More than ever, uh, keeping business model going and establishing new ones. So thanks for coming on. >>Thanks for having us, John. >>Okay, It's the cubes. Virtual coverage. We are a SAS business. Now we're virtual bringing you remote. Uh, SAS Cube and, uh, more coverage with reinvent next few weeks. Thanks for watching. Okay, yeah.

>> Narrator: From around the globe it's "TheCUBE" presenting accelerating automation with DevNet brought to you by Cisco. >> Hello and welcome back to theCUBE's coverage theCUBE virtual's coverage of DevNet Create Virtual, we're not face to face, theCUBE's been there with DevNet and DevNet Create, since the beginning DevNet Create was really a part of the DevNet community looking out at the external market outside of Cisco which essentially is the cloud native world which is going mainstream. We've got a great guest here who's been on theCUBE many times, we've been talking to them, recently acquired by Cisco ThousandEyes we have Joe Vaccaro with us Vice President of Product. Joe, welcome to theCUBE. Thanks for coming on. >> Great and thanks for having me. >> You have the keys to the kingdom you're the Vice President of the Product which means you get to look inside and you get to look outside figure it all out make everything run on ThousandEyes, You guys have been running common language across multiple layers of network intelligence, external services. This is the heart of what we're seeing in innovation with multi-cloud microservices, cloud-native. This is really a hard area, it's converging multiple theaters and technology, a super important I want to get into that with you but first ThousandEyes is recently acquired by Cisco big acquisition, super important. The new CEO of Cisco, very clear API everything we're seeing that come out. That's a big theme at DevNet Create. The ecosystem of Cisco is going outside their own their walls, outside of the Cisco network operators, network engineers. We're talking to developers, talking programmability. This is the big theme. What's it like at Cisco? Tell us as the COVID hits you get acquired by Cisco. Tell us what's happening. >> Yeah, surely been an exciting six months for a ThousandEyes and the entire team and our customers as we all kind of shifted to the new normal of working from home. And I think that change alone really kind of amplified even some of the fundamental beliefs that we have as a company that you know cloud is becoming the new data center or customers that internet has become the new network and the new enterprise network backbone. And SaaS has really become the new application stack. And as you think about these last six months those fundamental truths have never been more evident as we rely upon the cloud to be able to work as we rely upon our own home networks and the internet in order to be productive. And as we access more sized applications on a daily basis. And as you think about those fundamental truths what's common across all of them is that you rely upon them now more than ever not only to run your business but to enable your employees to be productive but you don't own them. And if you don't own them then you lack the ability in a traditional way to be able to understand that digital experience. And I think that's ultimately what ThousandEyes is trying to solve for. And I think it's really being amplified in really these last six months. >> Talk about the COVID dynamic because I think it highlighted and certainly accelerated digital transformation, but specifically exposes opportunities, challenges, weaknesses. I've talked to many CXOs, CSOs, chief security is huge. Talk track we'll get to in a second. But it exposes what's worth doubling down on what to abandon from a project standpoint as people start to look at their priorities and on hey, we going to have a connected experience. We going to have security. People are working at home. No one has VPNs at home VPNs are passe, maybe it's SD-WAN maybe it's something else, they're on a backbone, they're connecting to the internet. A lot of different diversity in connections. At the same time, you got a ton of modern apps running for these networks. This is a huge issue, COVID is exposed us at scale. What's your view on this? And what is ThousandEyes thinking about this? >> If you think about the kind of legacy application delivery it went from largely users internet office connected over say a dedicated corporate network largely to traditional say internal hosted applications. And that was a fairly simple connectivity bath. And as you mentioned, we've seen amplifications in terms of the diversity from the users. So users are not in the office. Now they're connected in distributed disparate locations that are dynamically changing. And you think that how they're getting to that application they're going across a really complex service chain of different network services that are working together across as public internet backbone will totally to land them on an application. And then those applications themselves are becoming now as you mentioned distributed largely based upon a microservices architecture and increasing their own dependence upon third party sample size applications to fulfill say key functions of that application. Those three things together, ultimately are creating that level of complex service chain. It really makes it difficult to understand the digital experience and ultimately the IT organization is really chartered with not just delivering the infrastructure but delivering the right experience. And yet then have a way to be able to see to gain that visibility that experience to measure it and understand and to provide that intelligence and then ultimately to act on it to be able to ensure that your employees as well as your customers are getting the right overall approach to being able to elaborate those assets. >> It's funny you know I was getting to some of these high scale environments a lot of these concepts are converging. We had terms like automation, self healing networks. You mentioned microservices earlier, you earlier mentioned the clouds of the new data center or when's the new land. Have you ever look at it, it's a whole different architecture. So I want to get your thoughts on the automation piece of networking and internet outages for instance. Because there's so many outages going up and down it is like catching looking for a needle in a haystack, right? So we've had this conversation with you guys on theCUBE before. How does automation occur when you guys look at those kinds of things? What's important to look at? Can you comment on and react to the internet outages and how you find resolve those? >> Yeah, it was really great and as you mentioned automation really in a place that a key when you think about the just a broad problem that IT is trying to drive you know from our lens we look at it in really three ways. First off is you have to be able to gain the level of visibility from where it matters and be able to test and be able to provide that level of active measurements across the type of ways you want to be able to inspect the network. But then also from the right vantage points you want to inspect them. But what we talked about RightSide Data alone doesn't solve that problem as you mentioned that needle in the haystack. Data just provides the raw metrics that are streaming across the screen you have to then enable that data to provide meeting. You need to enable that data to become intelligent. And that intelligence comes through the automation of being able to process that data very quickly to allow you to be able to see the unseen. To allow you to be able to quickly understand the issues that are happening across this digital supply chain to identify issues that are even happening outside of your own control across the public internet. And then the last step of automation really comes in the form of the action, right? How do you enable that intelligence to be put to use? How do you enable that intelligence to then drive across the rest of your IT workflow as well as to be able to be used as a signaling engine to be able to then make the fundamental changes back the network fabric whether that is dressing your modifying your BGP peering that we see happen within our customers using ThousandEyes data built around major internet outages that we've seen over the past six months or to be able to then use that data to be able to optimize the ultimate experience that they're delivering to both our customers as well as our employees. >> Classic policy-based activities taken to a whole another level. I going to get your thoughts on the employees working at home. Okay, because most IT people like Oh yeah, we're going to forecast in cases of disruption or a hurricane or a flood or hurricane sandy but now with COVID everyone's working at home. So who would have forecasted a hundred percent work from home which puts a lot of pressure on everything. So I got to ask you now that employees are working at home how do you tie network visibility to the actual user experience? >> Yeah, that's a great question. As you we saw within our own customer base when COVID hit and we saw this rise of work from home IT teams were really scrambling and said, okay I have to light up this say VPN infrastructure or I need to now be able to support my users in a work from home situation where I don't control the corporate network. In essence now you have essentially thousands. Every employee is acting across their own corporate network. And people were then using ThousandEyes in different ways to be able to monitor their CPP and infrastructure across back into the corporate network as well as in using our ThousandEyes end point agents that runs on a local user's laptop or machine in their home to help you to be able to gain that visibility down to that last mile of connectivity. Because when a user calls up support and says I'm having trouble say accessing my application whether that's Salesforce or something else what ultimately might be causing that issue might not necessarily be a Salesforce issue, right? It could be the device in the device performance in terms of CPU memory utilization. It could be the WiFi and the signal quality within your WiFi network. It could be your access point. It could be your local home router. It can be your local ISP. It could be the path that you're taking ultimately to your corporate network or that application. There's so many places that can go wrong that are now difficult to be able to see unless you have the ability to see comprehensively from the user to the application and to be able to understand that full end to end path. >> IT teams have also been disrupted. They've been on offsite prop off property as well but you've got the Cloud. How has your technology help the IT teams? Can you give some examples there? >> Yeah great way is how people use ThousandEyes as part of that data sharing ecosystem again that notion of how do you go from visibility to intelligence action. And where in the past you might be able as an IT administrator to walk over to their network team say hey, can you take a look at what I'm seeing? Now that's no longer available. So how do you be able to work efficiently as an IT organization? We think a ThousandEyes and how our customers are using a ThousandEyes becomes a common operating language. It allows them to be able to analyze across from the application down into the underlying infrastructure through those different layers of the network. What's happening and where do you need to focus your attention? And then furthermore within ThousandEyes in terms of enabling that data sharing ecosystem leveraging our share link capability really gives them the ability to say you know what here's what I'm seeing and be able to send that to anybody within the IT organization. But it goes even further and many times in recent times as well as over the course of people using ThousandEyes. They take those share links that actually send them to their external providers. Because they're not just looking to resolve issues within their own IT organization they're having worked collaboratively with the different ESPs that they're pairing with, with their cloud providers that they're leveraging or the SaaS applications that are part of that core dependency of how they deliver their experience. >> So I got to ask you the question what you think about levels of visibility and making the lives easier for IT teams, you see a lot of benefits with ThousandEyes. You pointed out a few of them. So I got to ask you the question. So if I'm an IT person in the trenches are you guys have an aspirin or a vitamin or both? Can you give an example because there's a lot of pain point out there. So yeah, give me a couple Advils and aspirins but also >> Yeah. you're an enabler too. The new things are evolving. You pointed out some use case. Talk about the difference between where you're helping people pain points and also enabling them be successful for IT teams. >> Yeah, that's a great analogy you're thinking like you said, it definitely sits on both sides of that spectrum ThousandEyes is the trusted tool the source of truth for IT organizations when issues are happening as their alarm bells are ringing as they are generating the different on call to be able to jump into a war room situation. ThousandEyes is that trusted source of truth that allow them to focus to be able to resolve that issue in the heat of the moment. But ThousandEyes is also when you think about baselining your experience what's important is not understanding that experience at that moment in time but also how that's deviated over time. And so by leveraging ThousandEyes on a continuous basis it gives you that ability to see the history of that experience to understand how your network is changing cause as you mentioned networks are constantly evolving, right? The internet itself is constantly changing. It's an organic system and you need to be able to understand not only what are the metrics that are moving out of your bounds but then what is potentially the cause of that as a network has evolved. And then furthermore you can be begin to use that as you mentioned in terms of your vitamin type of an analogy you'd be able to understand the health of your system over time on a baseline basis so that you can begin to be able to ensure its success in a great way to really kind of bring that to light as people using say ThousandEyes as part of say SD-WAN roll out. Where you're looking to say benchmark and again confidence as you look to scale out either benchmarking different ISP within that I feel like connectivity where as you look to ensure a level of success with a single branch to give you that competence to then scale out to the rest of your organization. >> That's great insights classic financial model ROI you got baseline and upside, right? You got handle the baseline as you pointed out and the upside music experience connectivity, application performance which drives revenue, etc. So great point great insight Joe, thank you so much for that insight. It's got a final question for you I want to just riff a little bit with you on the industry. A lot of us have been having debates about automation. Who doesn't love automation. Automation is awesome, right? Automate things, but as the trend starts going on as everything is a service or SaaS as it's called certainly Cisco is going down that road. Talk about your view about the difference between automation and everything is a service. Because at the end of the day everything will be a service but without automation you really can't have services, right? So, automation, automation, automation great drum to bang all day long but then also you've got the same business side saying as a service pushing that into the products. Means it's not trivial. Talk about how you look at automation and everything as service and the relationship and interplay between those two concepts. >> Yeah, ultimately I think about in terms of what is the problem that the business is trying to solve and ultimately, what is the deal that they're trying to face? And in many ways right, they're being exploded with increase of data they need to be able to not only process and gather but then be able to then make use of. Then from that as we mentioned once you've processed that data and you still gather the insights from it you need to be able to then act on that data. And automation plays a key role of allowing you to be able to then put that through your workflow. Because again, as that IT experience becomes even more complex as more, more services get put into that digital supply chain. As you adopt say increased complexity within your infrastructure by moving to a multicloud architecture where you look to increase the number of say network services that you're leveraging across that digital experience. Ultimately you need with the level of automation you'd be able to see outside of your own vantage point. You need to be able to look at the problem from as a broad of a way as possible. And data and automation allows you to be able to do what is fundamentally difficult to do from a very narrow point of view in terms of the visibility you gather intelligence you generate and then ultimately how do you act on that data as quick as possible to be able to provide the value of what you're looking to solve. >> Its like a feature (laughs). It's under the hood. The feature of everything comes to the surface is automation, data, machine learning all the goodness in the software. That's really kind of what we're talking about here, isn't it? >> Hmm. >> Final question for you as we wrap up DevNet Create really again is going beyond Cisco's DevNet community going into the industry ecosystem where developers are there. These are folks that want infrastructure as code. They want network as code. So network programmability, huge topic. We've been having that conversation with Cisco and others throughout the industry for the past three years. What's your message to developers out there that are watching this who say hey, I just want to develop code. Like I want you know, you guys got that. That was nice thanks so much. You take care of that I just want to write code. What's your message to those folks out there who want to tap some of these new services these new automation, these new capabilities what's your message? >> Ultimately I think when you look at ThousandEyes from a product perspective we try to build our product in an API first model to allow you to be able to then shift left of how you think about that overall experience and from a developer standpoint what I'd say is that, while you're developing in your silo you're going to be part of a larger ultimate system. And your experience you deliver within your application is now going to be dependent upon not only the infrastructure it's running upon but the network its connected to and then ultimately the user and the sense of that user. If I leveraging a ThousandEyes and being able to then integrate ThousandEyes into how you think closely on that experience that's going to help ensure that ultimately the application experience that the developers looking to deliver meets that objective. And I think what I would say is while you need to focus on your role as a developer having the understanding of how you fit into the larger ecosystem and what the reality of how your users will access that application is critical. >> Awesome Joe, thank you so much again. Trust is everything letting people understand that what's going on underneath is going to be viable and capable. You guys got a great product and congratulations on the acquisition that Cisco made of your company. And we've been following you guys for a long time and a great technology chops, great market traction. Congratulations to everyone at ThousandEyes. Thanks for coming on sharing. >> I appreciate it thanks for having me. >> Joe Vaccaro vice president of Product here with ThousandEyes is now part of Cisco. I'm John Furrier host of theCUBE Virtual for DevNet Create Virtual. Thanks for watching. (upbeat music)

>> Narrator: From theCUBE Studios in Palo Alto, in Boston, connecting with thought leaders all around the world, this is a CUBE conversation. >> Hey, welcome back, everybody. Jeff Frick here with theCUBE. We're in our Palo Alto Studios today, talking about a pretty interesting topic. You probably haven't heard of it, but you're going to know a lot of the attributes and it's going to sound very familiar. And that's BizOps, the concept of BizOps. We've heard about DevOps and DevSecOps and a whole bunch of ops, but BizOps is really a new twist and a new way to think about this. And we're excited to have the woman who actually wrote the book on the topic. She's Laureen Knudsen. She's a Chief Transformation Officer from Broadcom. She's also the co-author of the "Modern Business Management: Creating a Built-to-Change Organization", and a founding member of the BizOps Coalition. Laureen, great to see you. >> Great to be here. Thanks so much for having me. >> Absolutely. For people that aren't familiar with BizOps, give us kind of the quick high level. What is BizOps? >> BizOps is a new way of doing business. Just like Agile changed engineering and DevOps changed how we put things into production, BizOps is changing from soup to nuts. So from concept to cash or strategy to execution, right. There's a lot of... This has been talked about for a few years now, but this is formalizing that structure. So what do you need to do to truly have your strategy linked to your customer base? And so it's creating that umbrella over all of these other ops processes that brings it all together to tie the top to the bottom. >> Right. So, DevOps, right, fundamentally changed, the way the software gets developed. There used to be waterfall, it used to be data market's development document and then a product requirements document, then you put together a plan and you code it for six months or nine months, threw it over the Wall operations, and then hopefully they delivered. That doesn't happen anymore. And that was really set forth about 20 years ago when this kind of revolution happened on the software side. So what's been happening on the business side, and why now do they need their own ops to be pulled into this process? >> Well, sort of in the same way that things happened in the late 1990s, where certain organizations started to realize that that wasn't the most efficient way to create software and came together and created the Agile Manifesto. We've realized that there's certain things in doing business that make us much more effective and efficient. Things like bringing a data stream from the top to the bottom so every level of the organization has the data they need to run their business. Having that trust run throughout the organization, having that communication and that transparency from the strategy to the execution. You know, the global economy is just in dire straits right now, and the world is moving faster than ever. And so being able to respond to that change is vital at all levels of the organization. >> So you wrote the book years ago, I'm sure you've speaking to ton of business leaders, you know, as an author of the book, what were the biggest inhibitors to kind of the adoption of these ops and there must have been something, because why then did you found this coalition? What was the, you know, kind of the founding principle behind the coalition? >> Well, a bunch of industry leaders have come together to realize that in the same way that development needed to change in the early 2000s, really business needs to change today. And to your point, we've been talking about this for a while. Different companies are doing it better than others. And the ones that are doing this well are really heads and tails succeeding above the others. So, it's not easy though. It's not easy to change an entire organization and to change the way you do business. So, the coalition is bringing together some principles and values. We've come together to talk about how we're doing business differently and what actually works. And the main things you need to focus on in order to ensure success. >> Right. But you did it loud and proud with this declarative manifesto and then an event, actually, later this month that you're going to have to really unveil the manifesto, October 15th. I think it's 9:00, or excuse me, >> 11: 00 AM Eastern, 8:00 AM Pacific. Manifesto, right? Just the word manifesto, elicits all types of, kind of emotional response and really strong declarative statement of purpose and mission. So, why the manifesto and what's really the key pieces of the manifesto? >> You know, you need the principles that go along to help you change people, process and technology. And a lot of folks are focusing only on the technology and the data that comes from that technology and all that is key and vital to the way that you run your business differently. It's not the only piece. And so we need to focus on how do we get to bring the people along with us, how do we change our processes to be more efficient and effective. And the four values and the principles that we've created as this coalition, really help companies to do that more easily and to know they're on the right track, in the same way that the Agile principles and the values that brought out in the Agile Manifesto did. >> Right. So, I have a preview version here of the values. And I think it is really important for people to stay kind of fundamental values. 'Cause then everything builds from that and if there's ever a question, you can go back to the values as of a reference point. But just to read a few of, you know, business outcomes over individual projects, trust and collaboration over siloed teams and organizations, data-driven decisions over opinions and judgment calls, and finally, learn responded pivot over following a documented plan. And that seems so, right, so simple and so foundational and so fundamental to the way business works today. But the fact that you have to put this coalition together, and the fact that you're publishing this manifesto, tells me that the adoption really isn't where it should be. And this is really a new way to try to drive the adoption of these values. >> Absolutely. I mean, everybody seems to understand that they need to focus on their customers and that they need to focus on outcomes, but you can't just take something, you know, once you have work in progress and say, well, what's the value of this one piece of work. You have to have started at the beginning to come with the right outcome you're trying to meet, and then ensure that you're doing that all along the path to creating that and to bringing that to your customer base. It's focusing on your customers and creating the trust with your customers as well as through your organization. The data is really vital. Being able to run our businesses on real data and know the reality of the situation rather than at status reports that were created by people saying, yeah, I'm done, but there's no definition of done, right? It's fundamentally changing how we do business, which sounds easy. But as we know because of the Agile transformations that we've done and DevOps transformations that we've done, it's not as easy as it sounds. >> Right. So, why not just try to include more of the business people in the DevOps process? Why the strategy to have BizOps as kind of a standalone activity and again, to have the coalition and manifesto, that means it's super important. Can't the business people participate in the DevOps, or why has that not really been effective? >> It's really a different part of the business. And BizOps is a framework that pulls together all of these other operational pieces. So, security, operations, you know, how do you get something from engineering out to your customers, really were DevOps focuses, right? So, that's great. But running your business includes a lot more than your IT organization or your engineering teams. So this really expands out and brings in all of the rest of the business for how you sell software, how you plan, how you fund your teams, how you look at the work from that high strategic level and ensuring that you create that solid pipeline of data so that you truly know the status of any strategy in your organization. I was working with one group who had really good strategies and they had really good execution and they found that they spent over $100 million annually rolling up that data to try and understand the true status of their strategies. So companies are spending and are being very inefficient in, you know, they're spending millions of dollars on trying to do this link where if you just fundamentally change the way you do business a little bit, day to day, you can have that as a natural outcome of your processes. >> Right. 'Cause you've talked about on some of this stuff about using it as a way to do prioritization and to make sure you're not spending money places that you shouldn't. Another thing that strikes me as I go through the principles are, again, things that in 2020 should not be new information, you know, frequent changes, which was not part of the old paradigm. Trust and transparency. And I think you even tied it back into one of the articles I saw, tying trust and transparency really back to employee engagement, which then drives profitability and productivity. So I wonder if you can talk about the role of trust and in your conversations with people, as you've been kind of developing this idea over the years since the book, getting leaders to, you know, to trust their people, to do what that needs to be done rather than managing tasks, you know, manage the outcome, not manage tasks. >> Right. This is really important. Having trust in your organizations, especially today when everyone's remote, right? And in almost every company in the globe right now, most of their employees are working from their houses. You can't really do command and control well when no one is sitting in your building with you. So being able to have that trust to truly trust in your employees, you know, we spend a lot of money on all of these technical folks that we hire, and then we put people in place to try and direct them what to do on a daily basis. And so having... Building that trust within your organization, and it goes both ways, right? Employees need to trust the leadership, leadership needs to trust the employees, but it's not just from the top level to the end level, right? To the team level. It's actually every level in the middle. So this is truly pulling the pieces of work that we've done over the past few years through the entire organization. It's getting rid of what we call that frozen middle, of middle management and making sure that trust is aligned in there as well. And that the communication and transparency is working through that part of the organization. >> Right. Another principle I want to highlight is talking about the role of machine learning and artificial intelligence. Clearly, we all know, right, data's exploding, et cetera, et cetera, and we want to get the data driven decisions. But what this really calls out is that there's probably more data, both in terms of frequency and complexity, than people can really sift through, in terms of finding what they should be working on and what's important and what's not, you know, the classic separating the signal from the noise. I wonder if you can speak to a little bit about the role of machine learning and artificial intelligence, as an enhancer to productivity in this BizOps world versus a threat to people's jobs. >> Absolutely. I mean, like I said already that there's some companies spending $100 million rolling up data on things that computers can do today, even without machine learning and an AI. But when we put that into place, it really doesn't replace people any more than DevOps removed people from the organization. We automated a lot in testing yet we still have test organizations. It's just a different focus and a way of doing business. And this is no different. I'm seeing a lot of companies though start to try and throw all of their data together. And I've recently started saying that they're creating data land fields when they're attempting to create data lakes. And so you really need to understand your data that you're collecting and why you're collecting it and what outcomes you're trying to get from that data so that you can understand your business and you're not just creating, to your point, more noise. >> Right. So let's shift gears a little bit and talk about the event that's coming up on the 15th, about, you know, kind of, what is the role of the coalition? How should people get involved, what's membership all about, and then what can they expect to happen on the 15th? >> We have 10 industry leaders that have come together to author the BizOps Manifesto. And it's everyone from influencers, transformation experts, CEOs of a lot of companies or of organizations. We have people like Evan Leybourn of the Business Agility Institute and Sally Elatta from AgilityHealth, who have come to help author this and are really transformational leaders across the globe. And to get involved, you can go to bizopsmanifesto.org. and you can sign the manifesto. You can align to that if, you know, if you want to bring this into your own organization, we're happy to help work with that as well. So it's a group of industry leaders who are here to help the globe get more efficient and effective in how they do business. >> It's really interesting, right. It's not really an open source project, but it is kind of a co-opetition in terms of, you know, you're reaching out to lots of different companies and lots of different leaders to participate. They may or may not be competitive, but really this is more kind of an industry, kind of productivity thing, if you will, to bring all these people together at the coalition. Would that be accurate? >> It is accurate, but we're also looking to have competitors. I mean, we've... Competitors is an interesting thing today because there's no company just uses one company software, for example, to automate all of their pieces, right? There's all of these products that have to come together and share data today in the same way that we needed to share, you know, access to software. In the past, integrations were really difficult and now, you know, everyone's got open APIs. It's a very similar thing with data today. And so we are working with our competitors and we're working with, you know, like you said, industry leaders. We have Mik Kersten from Tasktop as part of this as well. We're looking at how we can benefit the companies of the world today, much more efficiently and effectively than we have in the past. So it is a group of people who compete with each other, maybe on a daily basis, but also have the same customers and have the need to help companies today, especially in this economy with the pandemic, right. There's a lot of companies in dire straits right now and we all need to come together as business leaders to help those companies get through this time. And anything that we can do to do that is going to benefit us all in the long run. >> Right. You know, it is really interesting co-opetition, is like you say, most companies have everybody's, you know, a lot of different products and people compete as well as having API connections and having all kinds of interesting relationships. So the lines are not so clean, like they used to be. And as we've seen with DevOps, you know, significant delta in the productivity and the responsiveness and the way software is delivered. So, sounds super exciting. We'll look forward to the event on the 15th. I give you the last word. What are you looking most forward to for the big launch in a couple of weeks? >> I'm really excited for people to give us their feedback on what they think and how this benefits them. And I'm excited to help our customers and help the, you know, the big companies of the world get through these next 18 months. I think we're all in for a bit more of a struggled time, you know, at a difficult time, and anything that we can all do to work together. So I'm looking forward to working with other industry leaders on this as well, and to the benefit of, you know, the global economy. >> Right. Well, great. Well, Laureen, thank you for giving us the one on one on BizOps. Really appreciate it. And best of luck to you and good luck to you and the team on the 15th. >> Thanks so much. >> Alrighty. Thank you. All right, she's Laureen, I'm Jeff. You're watching theCUBE. Thanks for watching. We'll see you next time. (upbeat music begins)

from Chicago it's the cube covering Oracle transformation day 2020 not to you by Oracle consulting hello everyone and welcome to this cube special presentation where we're covering the rebirth of Oracle consulting so this is a digital event where we're going around and identifying subject matter experts in different locations we're currently here in Chicago and I'm here with Stephanie trunzo who's the head of transformation and offerings at Oracle consulting is definitely great to see you again yeah you too so Oracle consulting you know you guys have been quiet lately where you good yeah well we were quiet because I wasn't here yet okay make a noise yeah exactly here to make some noise so I love the way you said rebirth I think it's really accurate work will consulting has been around for quite some time but as you said maybe not high on the radar and one of the things that we're learning and one of the reasons I'm here in this transformation role is to help us transform ourselves to better match the transformation that our clients are going through so that rebirth which kind of makes me the the mother I guess over our consulting organization here is helping match our offerings to the kind of language that our clients are now using which is really outcome driven mm-hmm so was there an internal transformation or is there an internal transformation taking place as well and then just sort of pointed to the marketplace maybe you could describe that absolutely yeah so we are undergoing our own transformation at the same time that we're helping our clients undergo their transformation and so for us what that looks like it is things like a traditional services organization which is kind of what Oracle consulting had been in the past was looking at the expertise that was necessary to drive clients business forward but delivering it in what I would call a pretty traditional way time and materials based kinds of contracting determining the skills that were necessary in and conversing with clients and feature function kinds of discussions and our transformation is now about rebuilding the organization around offerings and those offerings are things that we're doing to match the way that our clients are consuming let's say cloud technology so if you might purchase natural language processing service from a cloud platform we want to also make sure that we're matching the humans to those technology services and enabling our clients to buy from us in a very similar way so let's drill into this a little bit because I want to explain to people so you talked about outcome driven yeah and it used to be sort of a t and M model which was staff augmentation hey just just keep paying us and you know if we capture the flag great if not well too bad so now you're sort of starting at the outcome and that's kind of working back right from there exactly right okay so you know clients people are transforming their businesses they have goals those goals are to serve their own clients differently to think about how to gain efficiencies within their organization the change management that comes with it maybe it's to open up new revenue streams those are the outcomes that they're looking to achieve they're not looking to say I need three database administrators for four months that's not an outcome right and so we're thinking about how do we better shape our language our organizational body posture to be the kind of force that can help them accelerate their own disruptions and their own transformations instead of as you said kind of here's a couple people for a couple months but here's the outcome we're gonna help you achieve now you're also bringing in some some new blood I mean obviously Oracle a large organization a lot of DNA there but yourself you came from IBM you got people coming in from AWS you got folks from Accenture and all over the place so I described that and how that's affecting the culture of Oracle consulting and again I think it's really a miracle how much our own transformation mirrors what's going on in our clients businesses there's an influx of talent that is necessary to change the way that you think and I believe that one of the reasons I myself came to join Oracle consulting was I was excited about this new adventure so when you're working in a certain style in a certain way in a certain team for some amount of time you can maybe forget to get introspective and forget to look at what's right in front of you and the changes you need to make so bringing in new talent from outside is as much a part of our transformation as the way that we're shaping our offering is bringing in those new ideas bringing in people who have you know been there done it in other experiences so that they can infuse our thinking with some of what's going on in the market around us how would you summarize the mission Oracle consulting the mission of Oracle consulting is extremely simple it's dead simple its help our clients succeed on Oracle cloud technology period ok now part of that success comes with partners absolutely talk a little bit about the ecosystem and how that's evolving and what your vision is to how that you know transforms I'm a huge ecosystem proponent I love partnerships I think it's a really important thing to build a healthy strong channel and so while we're transforming our own consulting organization we're also looking at our partner ecosystem to find where we can identify strategic partners so there's always multiple partners in our Oracle channel that we work with to be able to deliver broader solutions to our clients because they may have capabilities we don't and vice versa but when you can find sort of the Venn diagram where your strengths and their strengths together give us a broader solution for the client those are the special ones and so to name a couple we have a great partnership with Deloitte we had just announced that actually fairly recently we also have a partnership with M logica is another one of our strategic partners and so they are bringing to the table some stories where we don't play and then we're able to extend that story for our clients so that we can get to those outcomes that we were talking about where do you leave off and where do the partners pick up what's the sort of swim lane if you will yep so it depends on every partnership is a little bit different when we are helping with what I call our cloud evolution framework and is kind of a journey of how do you get to cloud and there's lots of different components to it our partners play in different parts of that cloud evolution journey so as an example Deloitte is a fantastic example our partnership with Deloitte when we're helping our clients modernize move workloads to the cloud Deloitte can help them continue to maintain and optimize that after we finish the first wave of modern is so that's one example with em Logica we have a different pattern where M logica is helping with takeouts of different technologies on the front end and then we are going to pick up and help with the innovation piece after the takeout is over so you really replay that tell me if I gotta share you're really the the tech deep technology expertise whereas some of your partners not only they have technology expertise but they can help with business transformations and sort of other organizational changes is that is that right that's absolutely true we have the deep technology experience the Oracle expertise but we also are able to help build an kind of umbrella plan around our cloud evolution framework and then pull in the partners to their strengths and it also really helps us when we're in an ecosystem discussion to make sure that we're understanding how we are also benefiting the partner there's always got to be a win-win right so it's not just about how do we fit in and play but that we're growing their business because by growing our partners businesses we're growing overall our Oracle story of course Oracle's known as a product company is sell software products that's how you generate most of your revenue so and you've got your cloud you've got you know things like cloud a customer and you know Exadata that's really driving you got the Oracle database certainly a huge application portfolio how is Oracle consulting aligning with the products yeah that's a great question so as a product company our goal is still to help our clients achieve their goals right and so consulting is looking at our Oracle products that to make sure that we are always the deepest and the best at understanding so we can help leverage that technology to its fullest capacity for our clients it's not just good enough to buy a tool you have to know how to use it right and so our objective is to align with Oracle products make sure we know what's going to be hot off the press that we're driving from our client experiences back into the product sets as well so we're informing our product development of what's really happening out in the world with our clients implementations my last question step is how are you gonna define success when you look back you know a couple years from now what will success look like to you yeah that's a great question success to me will look like being the go-to for any solution that is an Oracle driven answer to our clients that Oracle consulting is driving consumption in a way that is extremely valuable to the client because in the end cloud consumption technology consumption by in and of itself is not very interesting it's when we're telling stories that are our clients stories on stages because we've helped them achieve new business outcomes things that weren't possible for them before well it's great to have you thank you so much for coming on and it's good to have you at the helm sort of bring credibility to Oracle consulting and we'll be watching so thank you awesome thank you all right and thank you for watching we'll be right back with our next guest right after this short break you watching the cube

>> From San Francisco, It's theCUBE. Covering Sumo Logic Illuminate 2018. Now here's Jeff Frick. >> Hey welcome back everybody. Jeff Frick here with theCUBE. We are at Sumo Logic Illuminate 2018: about 600 people. I think its three times as big as it was last year here at the Hyatt San Francisco Airport in Burlingame, and on of the big topics of today is the release of this new report. It's called The State of Modern Applications in DevOps Security, and to talk all about it and the results and kind of the process we are excited to have Kalyan Ramanathan, excuse me, VP of Product Marketing at Sumo Logic. Welcome. >> Thank you, Jeff. >> So you've been doing this report for a while, correct? >> Yeah, exactly, I think this is the third version of this report, and from what we know the first and only report that looks at how, you know, leading edge customers actually build, run, manage, and secure their applications in public cloud environments. >> Right, so just a little history for people that aren't familiar: Sumo launched in the cloud natively, right, and I think you guys launched on AWS. >> Absolutely. >> Way back when, I think, one of our very first AWS shows we went to in 2013, Summit San Francisco, I remember it well, we had you guys on, and so you guys have really grown along with AWS, but obviously you have expanded well beyond just simply inside of AWS. >> That's right. So, the company was founded in 2010, and we were one of the first big data services to run on AWS. I think our founders, you know, ran into one of the AWS architects who describe this new thing called a cloud, and they were completely smitten by it. They thought that this was the next new wave of how services are going to be delivered, so it just made a lot of sense to build this machine data analytics platform, that we were building, or that we were planning to build on AWS. >> Right. >> The scalability, the agility, the, ya know, the flexibility that AWS offered was exactly what our platform needed, and so this was a marriage made in heaven. But we can support applications that run just about anywhere. We obviously support applications running on AWS extremely well; that's our DNA. We get those applications, because we build and run those applications ourselves, but we also support Azure. We support GCP. We support hybrid environments. Many of our customers, ya know, are either, ya know, built in the cloud, and they know only cloud, but a few of them are also making the transition to the cloud, are migrating their applications to the cloud, and you know, we believe that we live in an age where flexibility is extremely important, and we support our customers where ever their applications are today. >> Right, so let's look at some of the findings, so. >> Absolutely. >> Just from a process point of view, you interviewed your customer data base, right? Your, your numbers here? >> Yeah, yeah, I think, yeah. We looked at our 16 hundred customers. >> Sixteen hundred customers, okay. >> And an important point to make out here is that we don't interview our customers. What we do is to, essentially, collect data from our customers, which is what we do when we are doing machine data analytics, we anonymize those data, and we represent as to what is happening in terms of these applications. How do our customers build these applications, you know, manage them, and secure them? >> Right. >> So this is not a >> It's the real data, though. >> It's real data. >> This is not, this is not what they think they know, and they're going to answer the survey. >> Absolutely. Exactly. Right. >> And all the survey biases that can come up. >> You are very right, I mean, you know, that's what makes this report unique, right? >> Right, right. >> It's the first report where we're actually reflecting what customers actually do. It's not a survey. It's not an aggregation of, you know, data from ten other sources. This is as close to truth as you can get in terms of running and building and securing applications. >> Right. >> In the cloud environment. >> So, I was happy to see that the data supports a number of the hypotheses that we derive at a lot of the shows. >> Absolutely. >> That we go through. You know, right of the top: Docker and the adoption of Kubernetes in orchestration is growing rapidly. >> Absolutely, I mean, ya know, everywhere you go you hear containers: container this, container that, so, ya know, we see a similar adoption. Docker has grown from 14 percent to about 28 percent in this, as we see in this report, but what's interesting is also the growth of Kubernetes and orchestration, right? If you were to ask anyone, even in this conference, you know, about orchestration, let's say two or three years ago, and even the word Kubernetes, ya know, I'm sure you'd have gotten blank stares. >> Right, right. >> Here we are, two years into Kubernetes becoming, you know, somewhat mainstream, and we are already starting to see 30 per cent adoption of orchestration within AWS, and out of that 30 per cent, we almost see fifteen per cent of those folks using Kubernetes as a native technology. AWS has just announced their own Kubernetes service. I am sure if, when we have this conversation next year, >> Right. >> Kubernetes, you know, will become a household name. You will see 30 per cent adoption of Kubernetes alone, >> Right. >> Ya know, in a report of this kind. >> Well it's funny: when we were at VMworld a couple weeks ago, and Kubernetes was both in Pat's, Pat Gelsinger's keynote. >> Uh-huh. >> As well as Sonjay's, you know, so it's just, it really shows how fast in this type of a world a new technology adoption can just be put into place. >> Yeah, I mean, if you bring the right capabilities, if you have the right support, which is what Kubernetes does, and, obviously, if you have the right backing, you know, in the form of Google, obviously, incubating this project and then, you know, promoting it as an open source standard, and everybody is now falling behind it. Ya know, we support it. We hear it from our customers, and, you know, the data also bears this out. >> Right, so what about on the database side? What did you find on the database side? >> Yeah, I mean, the database results are always interesting for us, right? You know, I think the most important thing that we learned is that, you know, as customers are building apps in their public cloud environments, they really have a choice, ya know? If you were to build an on-prem, you know, application, once upon a time, I mean, you are usually stuck with Oracle or, ya know, MySQL or SQL Silver or some of those standard database fares everyone has heard about. >> Right. >> But when you, now, go to the cloud, when you migrate to the cloud, or when you are, you know, incubating your applications in the cloud to begin with, you want to re-think your database layer. This is the core layer that powers your application, and there are lots more, ya know, opportunities to, and options out there. >> Right. >> So, what we are seeing is, one, the growth of no-SQL databases: they are way more scalable, ya know, they handle big data way better that, ya know, traditional SQL databases, so we're definitely seeing a growth of that, of no-SQL databases. >> Right. >> What's also interesting is that, ya know, is customers have the choice. They are looking at other forms of databases. Ya know, I could look at Redis, I could look at MongoDB, I could look at Posgres, and, right, I'm not stuck going back to, ya know, our favorite Oracle or SQL Silver anymore. >> Right. What strikes me is that the definition of the requirement has been flipped upside-down. Before it was, "What infrastructure do we have? What's available that IT can deliver to me? What do we have licenses for, and what can I build on top of?" Now the application has taken center stage, so now it's "This is what I want to do with my application. What is it that I need underneath the covers to deliver that capability?" So it really flipped the whole thing on its head. >> Ya know, this also goes back to that, you know, sort of the democratization of decisions where, you know, developers, now, can make these choices. You know, once upon a time, right, I mean, someone, a muckity-muck in your organization says Oracle is the way to go, and everybody follows suite, follows suit. That's not the case any more, right? >> Right. >> I mean, the engineer, they're a developer who is building their application, especially in the microservices world, they can make choices in terms of what is a data server that they may choose to build into that microservcie? And that doesn't have to be Oracle every time. It doesn't have to be SQL Silver every time. You know, if Redis makes sense, if MongoDB makes sense, let's go build that into our into our platform. >> Right, so, another one, you know, serverless is all the hot buzz, and clearly that is supported here with some of the data around Lambda adoption. >> Yeah, I mean, Lambda growth, you know, continues to astound us. We are seeing Lambda grow from twelve per cent two years ago, which is when we did our first report, to now, you know, almost 30 per cent, you know? So, imagine that, right: one in three enterprises today are using Lambda, and this is a technology that is very easy to use, but architecture-wise, you need to re-think how you are putting your applications together with Lambda, and we are starting to see, you know, some wide-spread Lambda adoption, you know, within enterprises. >> Right, but isn't that the ultimate goal, I mean, as we get closer and closer to, you know, atomic versions of store, compute, & networking, I mean, shouldn't it all, ultimately, get there. >> Yeah. >> I mean, there's requirements, and, you know, there's reality I don't deal, you know, luckily I don't have to go turn the stuff on and run it, but, you know, that is the vision, right? Atomic units of compute, atomic units of store, atomic units of network. >> Yeah, I mean, look, serverless is the ultimate Nirvana when it comes to the cloud, right? I mean, the notion of the cloud is that, you know, I have an application. It needs to run. I don't worry about the infrastructure, and to a certain extent, I don't even worry about the management. So, serverless and Lambda is the manifestation of that. >> Right. >> Right, and what we are starting to see is that many customers are, at least dabbling with Lambda. Now, I won't say that customers are building their core application with Lambda yet, because that requires a re-think of their application itself, but what we are starting to see is that Lambda is used in DevOps, Lambda is used in integration, Lambda is a glue-ware that sort of ties all of these applications together. >> Right. >> In fact, you know, this report that we put together, a lot of it has actually been put together on the back of Lambda. We use Lambda extensively to collect this kind of data, and create a report of this kind. >> (chuckles) That's great! Another piece I wanted to make sure that we talked about is really, kind of, the break-down of the clouds. >> Uh-huh. >> Obviously you guys have a huge percentage of your business is, you know, you ask customers, you guys were born in AWS. >> That's right. >> That seems pretty logical, but what's interesting is a lot of multi-cloud, so, you know, I don't know if you distinguish between multi-cloud, hyper-cloud, but at the end of the day, as I think Ramin talked about in the keynote, right, there's going to be different places for different workloads. >> Absolutely. You know, look, as you rightfully pointed out, we are born in AWS, so we have an affinity to AWS, and so AWS customers also have an affinity to Sumo Logic, so it's not wonder that a big swath of our customers are built in AWS. Now, having said that, what we are also seeing is actually an acceleration of our customers, you know, adopting more and more AWS. I mean, they are the leaders in the space. I mean, I think nobody can, nobody can question that statistics. What is interesting, though, is that we are starting to see increased adoption of multi-cloud. We saw about five per cent of our customers dabble in multi-cloud last year. We are at close to ten per cent this year. We are also seeing increased adoption of Azure. We had a, you know, about five per cent of our customers use Azure last year. We are starting to see almost, I should say about eight per cent of our customers used Azure last year. We saw, we're seeing about fifteen per cent of our customers use Azure this year. >> Right, right. >> Right, so Azure is a, you know, has definitely become a very credible second cloud alternative for many of our customers. >> Sure. >> Now, we do see interest in GCP. It's not translated into lots of GCP adoption in production environments yet, but we're definitely seeing that increased interest, and I'm sure, you know, when we put this report together next year, you'll see some very credible and statistically relevant GCP data in this report. >> Right, right, so, Kalyan, there's a lot here, and we could go on for (chuckles) and on and on. So, people can go to the website. They can download the report, but... It's so great, but what I like most about this report is you lay out the facts, right, you lay out your findings, people can question your data source or this or that, but you lay out your methodology, but then you have very specific instructions for the IT buyer about what they should consider, and I think that is so powerful, because I think from the position of an IT purchaser today, >> Right. >> They've got to just be getting creamed with, you know, like, with things we're talkin' about, like, with serverless and Lambda and security and DevOps and >> Right. >> And the pace of change for them keeps going faster, so where do they even begin when they're doin' this kind of analysis? It's not just putting it out for an RFP anymore, right? >> Yeah, I mean, that was the intent of this report, right? I mean, at the, you know, when we started this report our goal was to provide accurate, real-time information about, you know, where are these modern apps in the public cloud going? You know, our leading-edge customers, like Airbnb and the Twitters and the Salesforce and the Adobes, know how to do this well, but there is a huge swath of our community that is, in some sense, perplexed, right? I mean, they see this cloud adoption happening. They see this cloud wave coming. They have cut their teeth on, you know, data centers and applications in the data center. How do I make that transition to the cloud? How do I, you know, follow these cloud-first companies and learn from these companies? And, so, what we wanted to do was to collect this data, anonymously surface this data, and provide, you know, this insight to this community so that they can, you know, in some sense emulate, you know, these leading-edge companies and learn how to architect, build, run and secure their apps. >> Right, right, and I love this little, you know, kind of, the new stack, if you will, the architecture set-up. >> Right. >> Cake chart that you've done in the past. All right, great! So, a lot of, ton of information. I'll give you the last word as we're here at Illuminate, triple last year's numbers. A little bit about where you guys are goin' next. What's, kind of, top of your mind? >> You know, look, you know, Sumo Logic, as a company, you know, we are doing exceptionally well in this machine data analytics space. We are the only cloud-native machine data analytics vendor. We are where the market is going, right? We understand cloud; the apps are going to the cloud. We know how to manage these apps exceptionally well, but more importantly, you know, we think that it's also important and it behooves us to make sure that we take our developer community, our ops community, our security community along with us, and that's the intent of this report. >> Right. >> It's to not sell product, though we do want to sell it eventually. >> Yeah. >> But it's to provide you guys, actually I should say, provide the community with the right kinds of information so that, you know, they can do their jobs better. >> Right, right. >> That's the goal of Sumo Logic. It's all about, you know, empowering the people who power these modern apps, which is actually the theme of this event itself. >> Well, very good. Well, we'll leave it there, and thanks for taking a few minutes of your time. >> Thank you very much, Jeff. >> All right, he's Kalyan. I'm Jeff. You're watchin' theCUBE. We're at Sumo Logic Illuminate at San Francisco Hyatt Regency by the airport. See ya next time. (hip music)

>> Live from Las Vegas, it's the CUBE, Covering VMWorld 2018. Brought to you by VM Ware and it's ecosystem partners. >> Hey, welcome back to Las Vegas Mandalay Bay. Lisa Martin with Dave Vellante at VMWorld 2018 Day One. Dave, this has been an awesome day. >> Yeah, jam-packed and almost 1/3 of the way through, 94 guests, I think our biggest show ever. >> I think I'm going to say, I'm going to make up a word and say it's going to get awesomer because we have one of our distinguished alumni, Vaughn Stewart, >> Wow. VP of Technology Alliances and Strategy at Pure Storage, Vaughn, great to have you here. >> Lisa, Dave, thanks for having us back. >> Great to see you again. >> Yes, ditto. >> We had a blast hosting the CUBE at Pure//Accelerate just a couple months ago. >> We got T-shirts. >> But we were sporting our, yeah, in the context of the Bill Graham Civic. I feel too dressed-up actually for talking to Pure Storage. So some great momentum you guys had when we were there a few months ago, great momentum continues, quarterly revenue earnings just announced, 37% year-over-year growth, almost 400 new customers. Gartner, fifth year in a row, you guys are a leader in the Magic Quadrant for Solid-State Arrays, wow! >> Yeah a lot was shared last week with the financial results, right? Couple more just points of color-commentary, if you will. 309 million dollars, 27% of quarter-over-quarter, 35% of penetration of the Fortune 500, roughly 30% of the revenue comes from the cloud providers, say like clouds number eight through 500, on the Magic Quadrant, right, five years in a row being in that upper-right quarter, quadrant. And if you look back on it historically, just the players that have come and gone and their positions have changed and we've kind of been the foundational element in that corner, I think speaks to, how well we know the length of market, on top of all that, right, Pure Storage's first acquisition, right, StorReduce. >> Congratulations. >> For those of you who maybe haven't heard of StorReduce, start-up, their focus is on providing data deduplication across object stores, born in the cloud, Pure software play, I think we're going to continue to leverage that within it's current focus in market area as well as expand our, it's part of our cloud strategy and even maybe bring some of it into the current on-prem product portfolio. Lot's of opportunities available to us with that IP. >> So, you know, when you look back at the sort of, well first of all, flash, Solid-State, upper right. But there's life beyond flash arrays, right. So if you look at some of the early guys, you remember Astec, if that's even how you say it, Fusion, and a lot of people predicted, oh you know, same thing, everybody's going to catch up to Pure, but you guys kept innovating, cloud is now a fly wheel for you guys, you really went hard after it. So I wonder if you could talk about the evolution and sort of phases as you guys see them of the company? >> Yeah so for your audience, I think one way to look at this with a start-up is when your founders have an idea of bringing a product to market, you have to be very laser-focused which means there's trade-offs, right, there's a lot of things that you can't do so that you can bring your technology to bear, your product, you've got to you know be able to gain market share, right. Customers' revenue is kind of like the lifeblood early on. And we've evolved past that, right, there's been the passing on the torch last year with our change in CEO from Scott who moved on to be chairman of the board, bringing in Charlie, and I think we're really at this phase of the beginning of what I call Act II, along the way, flash array which is our flagship and our initial product, has helped customers adopt technologies through different business models, right, the Evergreen Storage play, us introducing non-volatile memory express into all of our products, you know, half of our customer shipments in Q2 were all NVMe, right, so. Allowing customers to adopt technologies in new models that they didn't have before that aren't rip and replacements has been a key to our success beyond the tech. Flash blades often up and running in net new areas of business opportunities for us like AI and ML. And now you get StorReduce, right, this cloud component. I would say that the legacy of Pure, that Act I that Scott built is going to continue to run for the next couple years kind of on auto-pilot. And that's not to be dismissive of the field that's got to go out and execute every, you know, every day, every quarter, but Charlie's vision about what we're going to evolve into, I mean we're really if, to use a baseball analogy because someone was talking Sox before the cameras went on >> Who could that have been? >> Yeah, yeah. (laughs) You know, we're in the beginning of the first inning, you know, StorReduce is just, I think the tip of what we're going to do. We got 1.1 billion in the bank, you know, we've got a little bit of capital to continue to invest in the portfolio. So right now the focus is on still, I think there's two ways to look at this. What I find most enterprise customers want to talk about is how do I merge three modern technologies, right? All-flash, hyper-conversion, and cloud? Give me a strategy that unifies them, not one that divides. And we can have a whole conversation on that. Then there's this whole other segment around analytics and AI which, you heard it here in the keynote this morning with Pat. Focus area, you know for VM Ware, AI is the modern version of what analytics were six years ago. And so this is something that I don't think all the practitioners here are aware of. It comes from a data science or the application side into the infrastructure, and we're trying to help people make a turnkey AI-ready infrastructure through the RE product within video so there's just a lot to talk about. >> And you can see those worlds coming together with, take cloud, take AI, take data, which is what you're all about. >> Yup. >> That's kind of the innovation sandwich of the next 10 years. It ain't Moore's Law anymore, right? It's AI, applying machine intelligence to the data and scaling a cloud. >> You know one of the things that Silicone Angle I think may have been at least the largest analyst firm that I saw jump on this early, was around the notion of bringing your data to the infrastructure. >> Yeah, absolutely. >> And then you guys pushed in, you guys leaned in really hard about three or four years ago on that the world is a hybrid model. It's not one or the other, it's all hybrid. And you even talked about the differences in the type of data sets and it's computational requirements and where it may or may not be placed, as well as you really leaned in on the interop requirements to cross the different silos. >> Yeah, that's right. >> So kudos to your research. >> Yeah, thank you, and we've quantified that. It's actually that whole idea of bringing the compute to the data, for example, wherever it resides. I mean that's a big, big business. If you look at the size of the market of those folks trying to replicate substantially cloud on-prem, it's 30 billion dollar businessing growing very, very rapidly. And you guys play in both sides of that, I mean that's what's impressive, you're not just on-prem, you're not just in cloud, you're hybrid. >> Here's a good example of how cloud evolves. We're really proud of our net promoter score, right. It's 86.6, top 1% of B2B businesses, right. I look at external points of validation whether it's a net promoter score, what an analyst firm ranks you at in their Magic Quadrant or others, as are you delivering to your customers your promise to them, right, you're marketing material. Part of why our score is so high is the product's reliability is there and it delivers. Underpinning that is we've got a predictive analytics technology that helps the arrays achieve greater than Six Nines availability, right? That component, that's Pure One, that was born in the cloud. That was born in AWS, and we talked about this in a session at our Accelerate conference, which is we've got greater than nine petabytes up there. Every time we do a new, we're working a new algorithm for AI to make our product better for our customers, we have to download a year's worth of historical data. That takes 45 days to download in stage. So we're moving it to a hybrid model. And what's it going to allow us to do? It's instantly going to help us reduce our cost and accelerate our AI initiatives by six X. And it's just a bridging of the technologies. Regardless of what you have, you have an all-flash array, you're a cloud provider, you're a hyper-converged. Sometimes your product teams look at the world with like, I got to hammer and that's a nail and what really provides sophisticated outcomes is when you can bridge the technologies based on results. >> Speaking of marketing messaging, some people, some companies like to say they are data-driven, or they will enable their customers to become data-driven. At Accelerate a few months ago, Pure Storage talked about data-centric architecture. Now we all hear data is the lifeblood, data is power, data is currency, it's none of those things unless an organization can harness it and extract the insights and act on them immediately. >> Right. >> Talk to us about the data-centric architecture. What is that, how have you seen that, we'll say, accelerate in momentum in the last few months? >> Great questions, so thank you for bringing that up. I think on the surface, one may look at a data-centric architecture message as being oh, that's what you would expect from a storage vendor to say, right? Sounds like something aligns to your products. And I think there was some inside baseball being shared, if you will, in that message, right? There was some telegraphing going on. Because at the core of the message, what we're trying to say is, your traditional applications tend to be more stove piped and siloed, right? What you see, and I'll take this through two levels, what you see with taking traditional applications or legacy apps and you virtualize them, and now you want this mobility where you can move the application around anywhere, all-flash or on-prem or into the cloud, that's one form of movement. Modern applications are distributed, right? There are a collection of processes, different data sets and the application's much more like a pipeline. And so when you look at data from a view of pipeline, you have to stop thinking about your silo that's wrapped around your one tool that you as a developer may have a responsibility for in the product or the code. >> Your God box, as it were, right. >> You got to figure out how does it work in a pipeline with others, how are you going to ingest data and hand off data? So in a data-centric architecture, we're trying to advocate that there's a value in shared architectures and in addition to this, there's been this whole market that's grown up over the last decade initially around analytics where their architectures were designed around DAS architectures. And you have to look back a little bit to get a understanding of where we are today which was, you go back ten or twelve years ago, it was really easy with the par of intel to bury a disc-based storage rate, no matter what size it was and which vendor put it out. You could saturate the IL bandwidth. Now we're at a day and age today, shared accelerated storage, fast network interconnect with non-viable memory express over fabric whether we're talking ethernet or fiber channel. I now have the latency that's within ten microseconds of direct attach storage. I get all the benefits of shared. And I get some new architectural models that may help me with costs and efficiencies. And so you're starting to see vendors in the software space follow in suit and so, for example, you've got Vertica releasing support for S3 on-prem. You've got VM Ware adding more fuel around VVOLS and interoperability between VVOLS, vSAN, and VM Cloud. There's more partners that have more activity going on that I can't share because they've got announcements coming through the second half of the year but vCloud Air just published in July a new paper on HDFS on remote storage regardless of the protocol so you're seeing all these DAS-centric vendors start to say, alright, our customer-base is telling us they need a shared model. So shared accelerated, flash, NVMe, NVMe over fabric, it's going to fuel new architectures that are more flexible. >> So I want to follow up with that because you're right, the data pipeline is elongating and it's getting quite complex. I mean if you're an AWS customer, which we are actually, if you use kinesics, DynamoDB, EC2, S3, you know Red Shift, etc. Those are all sort of different proprietary APIs. Sometimes you don't know what you should do where until after you get the bill. >> Right. >> Can you help solve that problem for customers and simplify that or are you just a piece of that chain? >> So we have a component within the chain but we're working with our field and our field technologists to help advise customers particularly around what I'd call like a cloud-first strategy. So, if we look outside of storage and you're looking in the cloud developers and it's function as a service, for example. >> Right. >> So we use our own case study, right, Pure One. We got hooked into function as a service within our provider. And what we've found was our ability to use multiple clouds, our ability to go hybrid-cloud, and our ability to actually take our analytics and be able to package it up and deliver it to dark side customers that, there's about a third of our customers that won't allows for their units to phone home, okay? Three-letter acronyms that run in the federal space. Cloud-first meant that we just take that function as a service and instead of making the direct API call put it in a container. Now once you're containerized, I can run it on any cloud. Right, and now again, cross-public cloud, hybrid, into private, and it gives you a lot of flexibility. So we're working on architectures and educational conversations, not just about the data pipeline and how your data has to transform as it goes through these different phases, but also at the higher level, really going to be leaning in on containerization and so the customers can have greater mobility, and again, we'll use our own use-case and evolution of Pure One is the front and center message there. >> I'd love to get your perspective, kind of changing the topic, on the ecosystem evolution. You've observed the VM Ware ecosystem. You remember well, I mean it's just strange that EMC ended up with this asset, right? I mean it's kind of unnatural and all of a sudden, boom, it explodes, and you had this storage company somewhat controlling, you had the storage cartel kind of which, VM Ware wanted to placate, so that was good, that sort of was a bulwark against EMC having too much control. Now you see Del's ownership, you see the AWS relationship. As an ecosystem partner who's now reached escape velocity and beyond, what do you make of all this? >> I think you have to look across Pat's time and before Pat to Diane, right? Diane made it clear, right, when there was acquisitions in play for VM Ware, right, she said, we'll never be owned by a server vendor. And so storage vendor acquires EMC, and for all the blustering of EMC control, there was never anything that was proprietary towards EMC with VM Ware, right. >> Right. >> The focus was on the entire partner ecosystem. That's a good bat, right, let the harbor vendors go battle out for who's got best in class, just deliver the VM software to the market. Allow VM Ware to go innovate on different timeframe than the storage layer. Now that Del is in the ownership seat, you have the same answers from Pat, when he sits down with Charlie it's like, look, we're going to be independent, we're going to be agnostic, we're going to take you as a partner to help us build frameworks. So for example, we're one of the lead design partners on NVMe over fabric, we're doing technology previews with vSphere in the booth. We're the fastest growing VVOL partner. So I know I'm making plugs here but I don't think anything's changed, right. I think VM Ware's business model's been brilliant to not become tied to any hardware partner and focus on what you do better than anyone else which has been delivering virtualization and what I really like about this show, and tell me if you think so, right. AWS was shared last year, right? Containers have been shared at this show for about four years. This year was a focus, right, it was AWS, it was containers, it was automate everything, and then inherently it brings security in as an inherent component of the products, right? These are really bold, strong investments that they've made that are new, right. So you see the evolution of VM Ware, and we're partnering with them on a number of these initiatives and there's nothing to share now. That'll be next year. >> Well and you're right, Vaughn, the picture's getting clearer. I thought Pat's keynote was very good this year, and crisper and more cogent relative to the strategy than last year and previous years. It's really starting to come together. Now what about the AWS piece because that's also a company with whom you have a relationship. So does the VM Ware, AWS partnership, is that a tailwind for you guys? Or is it, hey, we're trying to get the attention of AWS, too. >> So I would say our, so we signed a formal VM Ware alliance relationship this year, and I would say it's progressing well. What we can share with the market right now is minuscule to what we'll be sharing, say later in the year, beginning of next year. But for right now where we're at is, so we're a direct-connect partner, gold-level sponsor for their conference, re:Invent. With VM Ware and AWS and Pure as a three-way alliance and partnership, VM Cloud, VM C, is going to add support for iSCSI, that's a second-half of the year initiative, or fourth-quarter initiative, and we'll be there as a lead development partner supporting that framework when it comes online. It's going to open a lot more flexibility for us and our joint customers about adopting either your own on-prem hardware or running it on the Amazon hardware. Make it fit your business model whichever way you want to roll but make it fully interoperable and move the data and the compute instances seamlessly and non-disruptively. >> Guys. >> It helps to be a hot company. >> I wish we had more time. I'm hearing accelerated momentum and maybe some teasers that Vaughn dropped, >> Yes. That maybe the CUBE needs to be, yeah. >> We'll stay in touch. >> We'll get some more interviews. >> Yeah. >> (Laughs) Vaughn, thanks so much for joining Dave and me and sharing all this exciting news that's going on, and like I said, accelerated momentum, pun intended by the way. >> Thank you, thanks guys. >> Great to see you. >> We want to thank you for watching the CUBE for Dave Vellonte, I'm Lisa Martin with the CUBE at VM World Day One from Las Vegas, stick around, we'll be right back. (funky music) >> Hi, I'm John Walls. I've been with the CUBE for a couple years.

[Music] and y'all know that these [Music] ladies and gentlemen please take your seats and silence your cellphone's our program will begin shortly ladies and gentlemen please welcome Red Hat executive vice president and chief people officer dallisa Alexander an executive vice president and chief marketing officer Tim Layton [Music] hi everyone we're so excited to kick off this afternoon day 2 at the Red Hat summit we've got a stage full of stories about people making amazing contributions with open source well you know dallisa you and I both been coming to this event for a long long time so what keeps you coming back well you know the summit started as a tech conference an amazing tech conference but now it's expanded to be so much more this year I'm really thrilled that we're able to showcase the power of open source going way beyond the data center and beyond the cloud and I'm here also on a secret mission oh yes I'm here to make sure you don't make too many bad dad jokes so there's no such thing as a bad dad they're just dad jokes are supposed to be bad but I promise to keep it to my limit but I do have one okay I may appeal to the geeks in the audience okay so what do you call a serving tray full of empty beer cans yeah we container platform well that is your one just the one that's what I only got a budget of one all right well you know I have to say though in all seriousness I'm with you yeah I've been coming to the summit since its first one and I always love to hear what new directions people are scoring what ideas they're pursuing and the perspectives they bring and this afternoon for example you're gonna hear a host of different perspectives from a lot of voices you wouldn't often see on a technology mainstage in our industry and it's all part of our open source series live and I have to say there's been a lot of good buzz about this session all week and I'm truly honored and inspired to be able to introduce them all later this afternoon I can tell you over the course the last few weeks I've spent time with all of them and every single one of them is brilliant they're an innovator they're fearless and they will restore your faith in the next generation you know I can't wait to see all these stories all of that and we've got some special guests that are surprised in store for us you know one of the things that I love about the people that are coming on the stage today with us is that so many of them teach others how to code and they're also bringing more people that are very different in to our open-source communities helping our community is more innovative and impactful and speaking of innovative and impactful that's the purpose of our open brand project right that's right we're actually in the process of exploring a refresh of our mark and we'd really like your help as well because we're doing this all in the open we've we've been doing it already in the open and so please join us in our feedback zone booth at the summit to tell us what you think now it's probably obvious but I'm big into Red Hat swag I've got the shirt I've got my pen I've got the socks so this is really important to me personally especially that when my 15 year old daughter sees me in my full regalia she calls me adorable okay that joke was fed horrible as you're done it wasn't it wasn't like I got way more well Tim thanks for helping us at this stage for today it's time to get started with our first guest all right I'll be back soon thank you the people I'm about to bring on the stage are making outstanding contributions to open source in new and brave ways they are the winners of the 2018 women and open source Awards the women in open source awards was created to highlight the contributions that women are making to open source and to inspire new generations to join the movement our judges narrowed down the panel a very long list just ten finalists and then the community selected our two winners that were honoring today let's learn a little bit more about them [Music] a lot of people assume because of my work that I must be a programmer engineer when in fact I specifically chose and communications paths for my career but what's fascinating to me is I was able to combine my love of Communications and helping people with technology and interesting ways I'm able to not be bound by the assumptions that everybody has about what the technology can and should be doing and can really ask the question of what if it could be different I always knew I wanted to be in healthcare just because I feel like has the most impact in helping people a lot of what I've been working on is geared towards developing technology and the health space towards developing world one of the coolest things about open-source is bringing people together working with other people to accomplish amazing things there's so many different projects that you could get involved in you don't even have to be the smartest person to be able to make impact when you're actually developing for someone I think it's really important to understand the need when you're pushing innovation forward sometimes the cooler thing is not [Music] for both of us to have kind of a health care focus I think it's cool because so many people don't think about health care as being something that open-source can contribute to it took a while for it to even get to the stage where it is now where people can open-source develop on concepts and health and it's an untapped potential to moving the world for this award is really about highlighting the work of dozens of women and men in this open source community that have made this project possible so I'm excited for more people to kind of turn their open-source interest in healthcare exciting here is just so much [Music] I am so honored to be able to welcome to the stage some brilliant women and opensource first one of our esteemed judges Denise Dumas VP of software engineering at Red Hat she's going to come up and share her insights on the judging process Denise so you've been judging since the very beginning 2015 what does this judge this being a judge represents you what does the award mean to you you know every year it becomes more and more challenging to select the women an opensource winner because every year we get more nominees and the quality of the submissions well there are women involved in so many fabulous projects so the things that I look for are the things that I value an open source initiative using technology to solve real world problems a work ethic that includes sin patches and altruism and I think that you'll see that this year's nominees this year's winners really epitomize those qualities totally agree shall we bring them on let's bring them on let's welcome to the stage Zoe de gay and Dana Lewis [Music] [Applause] [Applause] [Music] alright let's take a seat [Applause] well you both have had an interesting path to open-source zuy you're a biomedical engineering student any of it you have a degree in public relations tell us what led to your involvement and open source yeah so coming to college I was new I was interested in science but I didn't want to be a medical doctor and I didn't want to get involved in wet lab research so through classes I was taking oh that's why I did biomedical engineering and through classes I was taking I found the classroom to be very dry and I didn't know how how can I apply what I'm learning and so I got involved in a lot of entrepreneurship on campus and through one of the projects I was asked to build a front end and I had no idea how to go about doing that and I had some basic rudimentary coding knowledge and what happened was I got and was digging deep and then found an open source library that was basically building a similar thing that I needed and that was where I learned about open source and I went from there now I'm really excited to be able to contribute to many communities and work on a variety of projects amazing contributions Dana tell us about your journey well I come from a non-traditional background but I was diagnosed with type 1 diabetes at the age of 14 and over the next couple years got really frustrated with the limitations of my own diabetes devices but felt like I couldn't change them because that wasn't my job as a patient but it was actually through social media I discovered someone who had solved one of the problems that I had been found having which was getting date off my diabetes device and that's how I learned about open source was when he was willing to share his code with me so when we turned around and made this hybrid closed-loop artificial pancreas system it was a no brainer to make our work open source as well that's right absolutely and we see using the hash tag we are not waiting can you tell us about that yeah so this hash tag was created actually before I even discovered the open source diabetes world but I loved it because it really illustrates exactly the fact that we have this amazing technology in our hands in our pockets and we can solve some of our most common problems so yes you could wait but waiting is now a choice with open source we have the ability to solve some of our hardest problems even problems dealing with life and death that's great so zuy with the vaccine carrier system that you helped to build how were you able to identify the need and where did you build it yes so I think before you even build anything first need to understand what is the problem that you're trying to solve and that really was the case when starting this project I got to collaborate with engineers in Kampala Uganda and travel there and actually interview stakeholders in the medical field medical doctors as well as pharmaceutical companies and from there I really got to understand the health system there as well as what is how do vaccines enter the country and how can we solve this problem and that's how we came up with the solution for an IOT based vaccine carrier tracking system I think it's really important especially today when products might be flashy to also understand what is the need behind it and how do we solve problems with these products yeah yeah it's so interesting how both of you have this interest in health care Dana how do you see open-source playing a role in healthcare but first before you answer that tell us about your shirt so this shirt has the code of my artificial pancreas on it and I love it as an illustration of no thank you I love it as an illustration of how open-source is more than we think it is I've just been blown away by the contributions of people in my open-source communities and I think that that is what we should apply to all of healthcare there's a lot of tools and technologies that are solving real world problems and I think if we take what we know in technology and apply it to healthcare we'll solve a lot of problems more quickly but it really needs to be recognizing everything an open source it's the documentation it's the collaboration it's the problem-solving it's working together to take technologies that we didn't previously think we're applicable and finding new ways to apply it it's a great answer Sooey yeah I think especially where healthcare is related to people and open-source is the right way to collaborate with people all over the world especially in the project I've been working on we're looking at vaccines in Uganda but the same system can be applied in any other country and then you can look at cross countries health systems there and from there it becomes bigger and bigger and I think it's really important for people who have an idea and want to take it further to know that open-source is a way that you could actually take your idea further whether you have a technical background or not so yeah stories are amazing you're just an inspiration for everyone in open-source I want to thank you so much for joining us here today let's give another round of applause to our winners [Applause] [Music] you know the tagline for the award is honor celebrate inspire and I feel like we've been doing that today very very well and I know that so many people have been inspired today especially the next generation who go on to do things we can't even dream of yet [Music] I think collabs important because we need to make sure we get younger children interested in technology so that they understand the value of it but also that there are a lot of powerful women in technology and they can be one of them I hope after this experience maybe we'll get some engineers and some girls working our hot so cool right well we have some special guests convite for the club stage now I'd like to invite Tim back and also introduce Red Hat's own Jamie Chappell along with our collab students please welcome Gabby tenzen Sofia lyric Camila and a Volyn [Applause] you've been waiting for this moment for a while we're so excited hear all about your experiences but Jamie first tell us about collab sure so collab is red hats way of teaching students about the power of open source and collaboration we kicked off a little over a year ago in Boston and that was so successful that we decided to embark on an East Coast tour so in October we made stops at middle schools in New York DC and Raleigh and these amazing people over here are from that tour and this week they have gone from student to teacher so they've hosted two workshops where they have taught Red Hat summit attendees how to turn raspberry pies into digital cameras they assigned a poem song of the open road by Walt Whitman and they've been working at the open source stories booth helping to curate photos for an installation we're excited to finish up tomorrow so amazing and welcome future women in open source we want to know all about your experiences getting involved can you tell us tenzen tell us about something you've learned so during my experience with collab I learned many things but though however the ones that I valued the most were open source and women empowerment I just I was just so fascinated about how woman were creating and inventing things for the development of Technology which was really cool and I also learned about how open source OH was free and how anyone could access it and so I also learned that many people could you know add information to it so that other people could you learn from it and use it as well and during Monday's dinner I got this card saying that the world needed more people like you and I realized through my experience with collab that the world does not only need people like me but also everyone else to create great technology so ladies you know as you were working on your cameras and the coding was there a moment in time that you had an AHA experience and I'm really getting this and I can do this yes there was an aha moment because midway through I kind of figured out well this piece of the camera went this way and this piece of the camera did it go that way and I also figured out different features that were on the camera during the camera build I had to aha moments while I was making my camera the first one was during the process of making my camera where I realized I was doing something wrong and I had to collaborate with my peers in order to troubleshoot and we realize I was doing something wrong multiple times and I had to redo it and redo it but finally I felt accomplished because I finished something I worked hard on and my second aha moment was after I finished building my camera I just stared at it and I was in shock because I built something great and it was so such a nice feeling so we talked a lot about collaboration when we were at the lab tell us about how learning about collaboration in the lab is different than in school so in school collaboration is usually few and far between so when we went to collab it allowed us to develop new skills of creativity and joining our ideas with others to make something bigger and better and also allowed us to practice lots of cooperation an example of this is in my group everybody had a different problem with their pie camera and we had to use our different strengths to like help each other out and everybody ended up assembling and working PI camera great great awesome collaboration in collab and the school is very different because in collab we were more interactive more hands-on and we had to work closer together to achieve our own goals and collaboration isn't just about working together but also combining different ideas from different people to get a product that is so much better than some of its parts so girls one other interesting observation this actually may be for the benefit of the folks in our audience but out here we have represented literally hundreds and hundreds of companies all of whom are going to be actually looking for you to come to work for them after today we get first dibs that's right but um you know if you were to have a chance to speak to these companies and say what is it that they could do to help inspire you know your your friends and peers and get them excited about open source what would you say to them well I'm pretty sure we all have app store and I'm pretty sure we've all downloaded an app on that App Store well instead of us downloading app State well the computer companies or the phone companies they could give us the opportunity to program our own app and we could put it on the App Store great idea absolutely I've got to tell you I have a 15 year old daughter and I think you're all going to be an inspiration to her for the same absolutely so much so I see you brought some cameras why don't we go down and take a picture let's do it [Applause] all right I will play my very proud collab moderator role all right so one two three collab okay one two three [Applause] yeah so we're gonna let leave you and let you tell us more open source stories all right well thank you great job thank you all and enjoy the rest of your time at Summit so appreciate it thanks thank you everyone pretty awesome pretty awesome and I would just like to say they truly are fedorable that's just um so if you would like to learn more as you heard the girls say they're actually Manning our open-source stories booth at the summit you know please come down and say hello the stories you've seen thus far from our women and open-source winners as well as our co-op students are really bringing to life the theme of this year's summit the theme of ideas worth exploring and in that spirit what we'd like to do is explore another one today and that is how open-source concepts thrive and expand in the neverending organic way that they do much like the universe metaphor that you see us using here it's expanding in new perspectives and new ideas with voices beyond their traditional all starting to make open-source much bigger than what it was originally started as fact open-source goes back a long way long before actually the term existed in those early days you know in the early 80s and the like most open-source projects were sort of loosely organized collections of self-interested developers who are really trying to build low-cost more accessible replicas of commercial software yet here we are 2018 the world is completely different the open-source collaborative development model is the font of almost all original new innovation in software and they're driven from communities communities of innovation RedHat of course has been very fortunate to have been able to build an extraordinary company you know whose development model is harnessing these open-source innovations and in turning them into technologies consumable by companies even for their most mission-critical applications the theme for today though is we see open-source this open source style collaboration and innovation moving beyond just software this collaborative community innovation is starting to impact many facets of society and you're starting to see that even with the talks we've had already too and this explosion of community driven innovation you know is again akin to this universe metaphor it expands in all directions in a very organic way so for red hat you know being both beneficiaries of this approach and stewards of the open collaboration model we see it important for us to give voice to this broader view of open source stories now when we say open source in this context of course will meaning much more than just technology it's the style of collaboration the style of interaction it's the application of open source style methods to the innovation process it's all about accelerating innovation and expanding knowledge and this can be applied to a whole range of human endeavors of course in education as we just saw today on stage in agriculture in AI as the open source stories we shared at last year's summit in emerging industries like healthcare as we just saw in manufacturing even the arts all these are areas that are now starting to benefit from collaboration in driving innovation but do we see this potentially applying to almost any area of human endeavor and it expands again organically expanding existing communities with the addition of new voices and new participants catalyzing new communities and new innovations in new areas as we were talking about and even being applied inside organizations so that individual companies and teams can get the same collaborative innovation effects and most profound certainly in my perspective is so the limitless bounds that exist for how this open collaboration can start to impact some of humankind's most fundamental challenges we saw a couple of examples in fact with our women and open-source winners you know that's amazing but it also potentially is just the tip of the iceberg so we think it's important that these ideas you know as they continue to expand our best told through storytelling because it's a way that you can embrace them and find your own inspirations and that's fundamentally the vision behind our open-source stories and it's all about you know building on what's come before you know the term we use often is stay the shoulders are giants for a lot of the young people that you've seen on this stage and you're about to see on this stage you all are those giants you're the reason and an hour appears around the world are the reasons that open-source continues to expand for them you are those giants the other thing is we all particularly in this room those of us have been around open-source we have an open-source story of our own you know how were you introduced the power of open-source how did you engage a community who inspired you to participate those are all interesting elements of our personal open-source stories and in most cases each of them are punctuated by you here my question to the girls on stage an aha moment or aha moments you know that that moment of realization that enlightens you and causes you to think differently and to illustrate I'm going to spend just a few minutes sharing my open-source story for for one fundamental reason I've been in this industry for 38 years I am a living witness to the entire life of open-source going back to the early 80s I've been doing this in the open-source corner of the industry since the beginning if you've listened to Sirhan's command-line heroes podcasts my personal open story will actually be quite familiar with you because my arc is the same as the first several podcast as she talked about I'm sort of a walking history lesson in fact of open source I wound up at most of the defining moments that should have changed how we did this not that I was particularly part of the catalyst I was just there you know sort of like the Forrest Gump of open-source I was at all these historical things but I was never really sure how it went up there but it sure was interesting so with that as a little bit of context I'm just gonna share my aha moment how did I come to be you know a 59 year old in this industry for 38 years totally passionate about not just open source driving software innovation but what open source collaboration can do for Humanity so in my experience I had three aha moments I just like to share with you the first was in the early 80s and it was when I was introduced to the UNIX operating system and by the way if you have a ha moment in the 80s this is what it looks like so 1982 mustache 19 where were you 2018 beard that took a long time to do all right so as I said my first aha moment was about the technology itself in those early days of the 80s I became a product manager and what at the time was digital equipment corporation's workstation group and I was immediately drawn to UNIX I mean certainly these this is the early UNIX workstation so the user interface was cool but what I really loved was the ability to do interactive programming via the shell but by a--basically the command line and because it was my day job to help figure out where we took these technologies I was able to both work and learn and play all from the same platform so that alone was was really cool it was a very accessible platform the other thing that was interesting about UNIX is it was built with networking and and engagement in mind had its own networking stack built in tcp/ip of course and actually built in a set of services for those who've been around for a while think back to things like news groups and email lists those were the first enablers for cross internet collaboration and that was really the the elements that really spoke to me he said AHA to me that you know this technology is accessible and it lets people engage so that was my first aha moment my second aha moment came a little bit later at this point I was an executive actually running Digital Equipment Corporation UNIX systems division and it was at a time where the UNIX wars were raging right all these companies we all compartmentalized Trump those of the community and in the end it became an existential threat to the platform itself and we came to the point where we realized we needed to actually do something we needed to get ahead of this or UNIX would be doomed the particular way we came together was something called cozy but most importantly the the technique we learned was right under our noses and it was in the area of distributed computing distributed client-server computing inherently heterogenous and all these same companies that were fierce competitors at the operating system level were collaborating incredibly well around defining the generation of client-server and distributed computing technologies and it was all being done in open source under actually a BSD license initially and Microsoft was a participant Microsoft joined the open group which was the converged standards body that was driving this and they participated to ensure there was interoperability with Windows and and.net at the time now it's no spoiler alert that UNIX lost right we did but two really important things came out of that that sort of formed the basis of my second aha moment the first is as an industry we were learning how to collaborate right we were leveraging open source licenses we realized that you know these complex technologies are best done together and that was a huge epiphany for the industry at that time and the second of course is that event is what opened the door for Linux to actually solve that problem so my second aha was all about the open collaboration model works now at this point to be perfectly candidates late 1998 well we've been acquired by compacts when I'm doing the basically same role at Compaq and I really had embraced what the potential impact of this was going to be to the industry Linux was gaining traction there were a lot of open source projects emerging in distributed computing in other areas so it was pretty clear to me that the in business impact was going to be significant and and that register for me but there was seem to be a lot more to it that I hadn't really dropped yet and that's when I had my third aha moment and that was about the passion of open-source advocates the people so you know at this time I'm running a big UNIX group but we had a lot of those employees who were incredibly passionate about about Linux and open source they're actively participating so outside of working a lot of things and they were lobbying more and more for the leadership to embrace open source more directly and I have to say their passion was contagious and it eventually spread to me you know they were they were the catalyst for my personal passion and it also led me to rethink what it is we needed to go do and that's a passion that I carry forward to this day the one driven by the people and I'll tell you some interesting things many of those folks that were with us at Compaq at the time have gone on to be icons and leaders in open-source today and many of them actually are involved with with Red Hat so I'll give you a couple of names that some of whom you will know so John and Mad Dog Hall work for me at the time he was the person who wrote the first edition of Linux for dummies he did that on his own time when he was working for us he he coined he was part of the small team that coined the term open source' some other on that team that inspired me Brian Stevens and Tim Burke who wrote the first version to rent out Enterprise Linux actually they did that in Tim Burke's garage and cost Tim's still with Red Hat today two other people you've already seen him on stage today Denise Dumas and Marko bill Peter so it was those people that I was fortunate enough to work with early on who had passion for open-source and much like me they carry it forward to this day so the punchline there is they ultimately convinced us to you know embrace open-source aggressively in our strategy and one of the interesting things that we did as a company we made an equity investment in Red Hat pre-ipo and a little funny sidebar here I had to present this proposal to the compact board on investing in Red Hat which was at that time losing money hand over fist and they said well Tim how you think they're gonna make money selling free software and I said well you know I don't really know but their customers seem to love them and we need to do this and they approve the investment on the spot so you know how high do your faith and now here we are at a three billion dollar run rate of this company pretty extraordinary so from me the third and final ha was the passion of the people in the way it was contagious so so my journey my curiosity led me first to open source and then to Red Hat and it's been you know the devotion of my career for over the last thirty years and you know I think of myself as pretty literate when it comes to open source and software but I'd be the first one to admit I would have never envisioned the extent to which open source style collaboration is now being brought to bear on some of the most interesting challenges in society so the broader realization is that open source and open can really unlock the world's potential when applied in the collaborative innovative way so what about you you know you many of you particular those have been around for a while you probably have an open source story of your own for those that maybe don't or they're new to open source are new to Red Hat your open source story may be a single inspiration away it may happen here at the summit we certainly hope so it's how we build the summit to engage you you may actually find it on this stage when I bring up some of the people who are about to follow me but this is why we tell open-source stories and open source stories live so each of you hopefully has a chance to think about you know your story and how it relates over source so please take advantage of all the things that are here at the summit and and find your inspiration if you if you haven't already so next thing is you know in a spirit of our telling open source stories today we're introducing our new documentary film the science of collective discovery it's really about citizen scientists using open systems to do serious science in their backyards and environmental areas and the like we're going to preview that I'm gonna prove it preview it today and then please come see it tonight later on when we preview the whole video so let's take a look I may not have a technical scientific background but I have one thing that the scientists don't have which is I know my backyard so conventional science happens outside of public view so it's kind of in this black box so most are up in the ivory tower and what's exciting about citizen science is that it brings it out into the open we as an environmental community are engaging with the physical world every day and you need tools to do that we needed to democratize that technology we need to make it lightweight we need to make it low-cost we needed to make it open source so that we could put that technology in the hands of everyday people so they go out and make those measurements where they live and where they breathe when you first hear about an environmental organization you mostly hear about planting trees gardens things like that you don't really think about things that are really going to affect you hey we're the air be more they'd hold it in their hand making sure not to cover the intake or the exhaust I just stand here we look at the world with forensic eyes and then we build what you can't see so the approach that we're really centered on puts humans and real issues at the center of the work and I think that's the really at the core of what open source is social value that underlies all of it it really refers to sort of the rights and responsibilities that anyone on the planet has to participate in making new discoveries so really awesome and a great story and you know please come enjoy the full video so now let's get on with our open stories live speakers you're going to really love the rest of the afternoon we have three keynotes and a demo built in and I can tell you without exaggeration that when you see and hear from the young people we're about to bring forward you know it's truly inspirational and it's gonna restore totally your enthusiasm for the future because you're gonna see some of the future leaders so please enjoy our open source stories live presentation is coming and I'll be back to join you in a little bit thanks very much please welcome code newbie founder Saran yep Eric good afternoon how y'all doing today oh that was pretty weak I think you could do better than that how y'all doing today wonderful much better I'm Saran I am the founder of code newbie we have the most supportive community of programmers and people learning to code this is my very first Red Hat summits I'm super pumped super excited to be here today I'm gonna give you a talk and I'm going to share with you the key to coding progress yes and in order to do that I'm gonna have to tell you a story so two years ago I was sitting in my hotel room and I was preparing for a big talk the next morning and usually the night before I give a big talk I'm super nervous I'm anxious I'm nauseous I'm wondering why I keep doing this to myself all the speakers backstage know exactly what I'm what I'm talking about and the night before my mom knows this so she almost always calls just to check in to see how I'm doing to see how I'm feeling and she called about midnight the night before and she said how are you how are you doing are you ready and I said you know what this time I feel really good I feel confident I think I'm gonna do a great job and the reason was because two months ago I'd already given that talk in fact just a few days prior they had published the video of that talk on YouTube and I got some really really good positive feedback I got feedback from emails and DMS and Twitter and I said man I know people really like this it's gonna be great in fact that video was the most viewed video of that conference and I said to my office said you know what let's see how many people loved my talk and still the good news is that 14 people liked it and a lot more people didn't and I saw this 8 hours before I'm supposed to give that exact same talk and I said mom I gotta call you back do you like how I did that to hang up the phone as if that's how cellphones work yeah and so I looked at this and I said oh my goodness clearly there's a huge disconnect I thought they were really liked they were I thought they were into it and this showed me that something was wrong what do you do what do you do when you're about to give that same talk in 8 hours how do you begin finding out what the problem is so you can fix it I have an idea let's read the comments you got to believe you gotta have some optimism come on I said let's read the comments because I'm sure we'll find some helpful feedback some constructive criticism some insights to help me figure out how to make this talk great so that didn't happen but I did find some really colorful language and some very creative ideas of what I could do with myself now there are some kids in the audience so I will not grace you with these comments but there was this one comment that did a really great job of capturing the sentiment of what everyone else was saying I can only show you the first part because the rest is not very family-friendly but it reads like this how do you talk about coding and not fake societal issues see the thing about that talk is it wasn't just a code talk it was a code and talk is about code and something else that talked touched on code and social justice I talked a lot about how the things that we build the way we build them affect real people and their problems and their struggles and that was absolutely not okay not okay we talk about code and code only not the social justice stuff it also talked about code and diversity yeah I think we all know the diversity is really about lowering the bar it forces us to talk about people and their issues and their problems in their history and we just don't do that okay absolutely inappropriate when it comes to a Tech Talk That Talk touched on code and feelings and feelings are squishy they're messy they're icky and a lot of us feel uncomfortable with feelings feelings have no place in technology no place in code we want to talk about code and code I want you to show me that API and when you show me that new framework that new tool that's gonna solve my problems that's all I care about I want to talk about code and give me some more code with it now I host a podcast called command line heroes it's an original podcast from Red Hat super excited about it if you haven't checked it out and totally should and what I love about this show as we talk about these really important moments and open swords these inflection points moments where we see progress we move forward and what I realized looking back at those episodes is all of those episodes have a code and something let's look at a few of those the first two episodes focused on the history of operating systems as a two-part episode part 1 and part 2 and there's lots of different ways we can talk about operating systems for these two episodes we started by talking about Windows and Mac OS and how these were two very powerful very popular operating systems but a lot of a lot of developers were frustrated with them they were closed you couldn't see inside you can see what it was doing and I the developer want to know what it's doing on my machine so we kind of had a little bit of a war one such developer who was very frustrated said I'm gonna go off and do my own thing my name is Linus this thing is Linux and I'm gonna rally all these other developers all these other people from all over the old to come together and build this new thing with me that is a code and moment in that case it was code and frustration it was a team of developers a world of developers literally old world of developers who said I'm frustrated I'm fed up I want something different and I'm gonna do something about it and what's really beautiful about frustration is it the sign of passion we're frustrated because we care because we care so much we love so deeply then we want to do something better next episode is the agile revolution this one was episode three now the agile revolution is a very very important moment in open-source and technology in general and this was in response to the way that we used to create products we used to give this huge stack of specs all these docs from the higher-ups and we'd take it and we go to our little corner and we lightly code and build and then a year with Pastor here's a pass a few years have passed and we'd finally burst forth with this new product and hope that users liked it and loved it and used it and I know something else will do that today it's okay no judgment now sometimes that worked and a lot of times it didn't but whether or not it actually worked it hurt it was painful these developers not enjoy this process so what happened a dozen developers got together and literally went off into their own and created something called the agile manifesto now this was another code and moment here it's code and anger these developers were so angry that they literally left civilization went off into a mountain to write the agile manifesto and what I love about this example is these developers did not work at the same company we're not on the same team they knew each other from different conferences and such but they really came from different survive and they agreed that they were so angry they were going to literally rewrite the way we created products next as an example DevOps tear down the wall this one is Episode four now this is a bit different because we're not talking about a piece of technology or even the way we code here we're talking about the way we work together the way that we collaborate and here we have our operations folks and our developers and we've created this new kind of weird place thing called DevOps and DevOps is interesting because we've gotten to a point where we have new tools new toys so that our developers can do a lot of the stuff that only the operations folks used to be able to do that thing that took days weeks months to set up I can do it with a slider it's kind of scary I can do it with a few buttons and here we have another code and moment and here that blink is fear for two reasons the operations focus is looking over the developer folks and thinking that was my job I used to be able to do that am I still valuable do I have a place in this future do I need to retrain there's also another fear which is those developers know what they're doing do they understand the security implications they appreciate how hard it is or something to scale and how to do that properly and I'm really interested in excited to see where we go with that where we take that emotion if we look at all of season one of the podcast we see that there's always a code and whether it's a code and frustration a code and anger or a code and fear it always boils down to code and feelings feelings are powerful in almost every single episode we see that that movement forward that progress is tied back to some type of Oshin and for a lot of us this is uncomfortable feelings make us feel weird and a lot of those YouTube commenters definitely do not like this whole feeling stuff don't be like those YouTube commenters there's one thing you take away from this whole talk let it be that don't be like these YouTube commenters feelings are incredibly powerful so the next time that you're working on a project you're having a conversation about a piece of software or a new piece of technology and you start to get it worked up you get angry you get frustrated maybe you get worried you get anxious you get scared I hope you recognize that feeling as a source of energy I hope you take that energy and you help us move forward I would take that to create the next inflection point that next step in the right direction feelings are your superpowers and I hope you use your powers for good thank you so much [Applause] please welcome jewel-box chief technology officer Sara Chipps [Music] Wow there's a lot of you out here how's it going I know there's a lot of you East Coasters here as well and I'm still catching up on that sleep so I hope you guys are having a great experience also my name is Sarah I'm here from New York I have been a software developer for 17 years it's longer than some of the people on stage today I've been alive big thanks to the folks at Red Hat for letting us come and tell you a little bit about jewel box so without further ado I'm gonna do exactly that okay so today we're gonna do a few things first I'm gonna tell you why we built jewel BOTS and why we think it's a really important technology I'm gonna show you some amazing magic and then we're gonna have one of the jewel bus experts come as a special guest and talk to you more about the deep technology behind what we're building so show hands in the audience who here was under 18 years old when they started coding it's hard for me to see you guys yep look around I'd have to say at least 50% of you have your hands up all right keep your hand up if you were under 15 when you started coding I think more hands up just what is it I don't know how that mouth works but awesome okay great yeah a little of I think about half of you half of you have your hands up that's really neat I've done a bunch of informal polls on the internet about this I found that probably about two-thirds of professional coders were under 18 when they started coding I myself was 11 I was a homeschooled kid so a little weird I'm part of the generation and some of you maybe as well is the reason we became coders is because we were lonely not because we made a lot of money so I was 11 this is before the internet was a thing and we had these things called BBS's and you would call up someone else's computer in your town and you would hang out with people and chat with them and play role-playing games with them it didn't have to be your town but if it wasn't your mom would yell at you for a long distance fees and I got really excited about computers and coding because of the community that I found online okay so this is sometimes the most controversial part of this presentation I promised you that they dominate our lives in many ways even if you don't even if you don't even know a 9 to 14 year old girl even if you just see them on the street sometimes they are deciding what you and I do on a regular basis hear me out for a second here so who here knows who this guy is okay you don't have to raise your hands but I think most people know who this guy is right so this guy used to be this guy and then teenage girls were like I think this guy has some talent to him I think that he's got a future and now he's a huge celebrity today what about this guy just got his first Oscar you know just kind of starting out well this guy used to be this guy and I'm proud to tell you that I am one of the many girls that discovered him and decided this guy has a future all right raise your hand if you listen to Taylor Swift just kidding I won't make you do it but awesome that's great so Taylor Swift we listen to Taylor Swift because these girls discovered Taylor Swift it wasn't a 35 year old that was like this Taylor Swift is pretty neat no one cares what we think but even bigger than that these huge unicorns that all of us some of us work for some of us wish we invented these were discovered by young teenage girls no one is checking to see what apps were using they're finding new communities in these thin in these platforms and saying this is how I want to commune with my friends things like Instagram snapchat and musically all start with this demographic and then we get our cues from them if you don't know what musically is I promise you ask your nearest 9 to 14 year old friend if you don't do that you'll hear about it in a few years but this demographic their futures are all at risk everyone here knows how much the field of software development is growing and how important technical literacy is to the future of our youth however just 18% of computer science graduates are girls just 19% of AP computer science test takers and just 15% of Google's tech force identify as female so we decided to do something about that we were inspired by platforms like MySpace and Geocities things like Neopets and minecraft all places where kids find something they love and they're like okay to make this better all I have to do is learn how to code I can totally do that and so we wanted to do that so we talked to 200 girls we went to schools we sat down with them and we were like what makes you tick what are you excited about and what we heard from them over and over again is their friends their friends and their community are pivotal to them and this time in their lives so when we started talking to them about a smart friendship bracelet that's when they started really freaking out so we built Jewel BOTS and Jewel BOTS has an active online community where girls can work together share code that they've built and learn from each other help each other troubleshoot sometimes the way they work is when you are near your friends your bracelets light up the same color and you can use them to send secret messages to each other and you can also code them so you can say things like when all my swimming friends are together in the same room all of our bracelets should go rainbow colors which is really fun you can even build games jewel BOTS started shipping about a year and a half ago about after a lot of work and we are about to ship our 12,000 jewel bot we're in 38 city sorry 38 countries and we're just getting started okay so now it's time for the magic and I have an important question does anyone here want to be my friend pick me all right someone today Gary oh I don't have many friends that's awesome I'm so glad that we'll be friends okay it's awesome so we just need to pair our jewel BA okay okay and in order to do that we're gonna hold the magic button in the middle down for two seconds so one locomotive two locomotive great and then we got a white flashing I'm gonna do yours again I did it wrong locomotive two locomotive it's we're adults we can't do it okay it's a good that are smart alright so now we get to pick our friendship color I'm gonna pick red hat red does that work for you sure okay great so now I just picked a red hat red and my jewel bot is saying alright Tim's jewel bot do you want to be my friend and imageable about it's like I'm thinking about it I think so okay now we're ready okay great so now we're red friends when we're together our bracelets are going to be red and I will send you a secret message when it's time for you to come out and trip and introduce the next guest awesome well thank you so much thank you tailor gun so glad we could be friends and if only people would start following me on Twitter it'd be a great day awesome alright so now you can see the not so technical part of jewel box they use bluetooth to sense when your friends are nearby so they would work in about a 30 meter hundred foot range but to tell you about the actual technology part I'm going to introduce is someone much more qualified than I am so Ellie is one of our jewel box ambassadors she's an amazing YouTube channel that I would please ask you to check out and subscribe she's le G Joel BOTS on YouTube she's an amazing coder and I'm really excited to introduce you today to Ellie Galloway come on out Ellie [Applause] hello my name is le gallais I'm gonna show you how I got coding and then show you some coding in action I first started coding at a6 when my dad helped me code a game soon after I program form a code for Minecraft then my dad had shown me jo bot I keep coding because it helps people for instance for instance you could code auto crack to make it a lot smarter so it can help make people stay run faster but what about something more serious what if you could help answer 911 calls and give alerts before we start I have three main steps to share with you I often use these steps to encoding my jaw bot and continue to use some of these now step one read the instructions and in other words this means for Jabba to memorize the colors and positions a way to memorize these because it's tricky is to remember all the colors and positions you O type will be capital and remember that the positions are either short for north west south west north east and south east step to learn the basic codes when it comes to coding you need to work your way up step 3 discover feel free to discover once you mastered everything now let's get to coding let's use or let's first use combining lights so under void loop I'm going to put LED turn on single s/w and blue and before we make sure that this works we got to put LED LED okay now let's type this again LED dot turn on single now let's do SW green now we have our first sketch so let's explain what this means led LED is a function that to control the LED lights LED turn on single SW blue tells that SW light to turn blue and green flashes so quickly with the blue it creates aqua now let's do another code lets you i'm going to use a more advanced command to make a custom color using RGB let's use a soft pink using 255 105 and 180 now let's type this in the button press function so let's do LED led LED dot set light and now we can do let's do position 3 255 105 and 180 now let's explain what this means the first one stands for the position the three others stand for red green and blue our GPS can only go up to 255 but there are 256 levels but if you count the first one as zero then get 255 so let's first before we move on let's show how this works so this is it before and now let's turn it on to see how our aqua turned out now let's see how our RGB light turned out so we are looking for a soft pink so let's see how it looks think about how much the code you write can help people all around the world these are ideas are just the beginning of opening a new world in technology a fresh start is right around the corner I hope this helped you learn a little bit about coding and even made you want to try it out for yourself thank you [Applause] alright alright alright I need your help for a second guys alright one second really really fascinating we're short on time today is Ellie's 11th birthday and I think we should give her the biggest present that she's gonna get today and it's something none of us have experienced and that is thousands of people saying happy birthday Elliott wants so when I say three can I get a happy birthday Elly one two three happy birthday Elly great job that's the best part of my job okay so those are that's two of us we're just getting started this numbers out Dana would almost shipped 12,000 jewel BOTS and what I'm really excited to tell you about is that 44% of our users don't just play with their jewel bots they code them and they're coding C do you even code C I don't know that you do but we have 8 to 14 year olds coding C for their jewel box we also have hundreds of events where kids come and they learn how to code for the first time here's how you can help we're open source so check out our github get involved our communities online you can see the different features that people's are asking for we're also doing events all over the world a lot of people are hosting them at their companies if you're interested in doing so reach out to us thank you so much for coming and learning about jewel box today enjoy the rest of your summit [Music] ladies and gentlemen please welcome hacker femme au founder Femi who Bois de Kunz [Music] good afternoon red hat summit 2018 i'm femi holiday combs founder of hacker femme Oh I started coding when I was 8 when I was 9 I set up South London raspberry jam through crowdfunding to share my passion for coding with other young people who might not otherwise be exposed to tech since then I've run hundreds of coding and robot workshops across the UK and globally in 2017 I was awarded an inaugural legacy Diana award by their Royal Highnesses Prince William and Prince Harry my service and community we welcome young people who have autism or like me tract syndrome because coding linked me up to a wider community of like-minded people and I'm trying to do the same for those who might also benefit from this I also deliver workshops to corporate companies and public organizations whilst feeding back ideas and resources into my community work we like to cascade our knowledge and experience to other young coders so that they can benefit too we're learning new tech every day we're starting to use github to document and manage our coding projects we've no dread we're using the terminal and beginning to really appreciate Linux as we explore cybersecurity and blockchain it's been quite a journey from South London to the world-famous Tate Modern museum to Bangladesh to this my first trip to the States and soon to China where I hope to translate my microwave workshops into Mandarin on this journey I'm noticed it is increasingly important for young coders to have collaborative and community led initiatives and enterprise and career ready skills so my vision now is to run monthly meetups and in collaboration with business partners help a hundred young disadvantaged people to get jobs in the digital services in fact out of all the lessons I've learned from teaching young coders they all have one thing in common the power of open source and the importance of developing community and today I want to talk about three of those lessons the value of reaching out and collaborating the importance of partnering event price and the ability to self organize and persist which translated into English means having a can-do attitude getting stuff done when you reach out when you show curiosity you realize you're not alone in this diverse community no matter who you are and where you're from from coding with minecraft to meeting other young people with jams I found there are people like me doing things I like doing I get to connect with them that's where open-source comes to the fourth second the open source community is so vast then it crosses continents it's so immersed perspectives that it can take you to amazing places out of space even that's my code running on the International Space Station's Columbus module let's take a lesson and playing was an audio representation for the frequencies recorded in space my team developed Python code to measure and store frequency readings from the space station and that was down linked back to earth to my email box Thomas who's 10 developed an audio file using audacity and importing it back into Python how cool is that Trulli collaboration can take you places you never thought possible because that's how the community works when you throw a dilemma a problem a tip the open source community comes back with answers when you give the community gives back tenfold that's how open source expands but in that vast starscape how do you know what to focus on there are so many problems to solve where do I start your world enterprice enterprise software is very good at solving problems what's the big problem how about helping the next generation be ready for the future I want to do more for the young coding community so I'm developing entrepreneurial business links to get that done this is a way to promote pathways to deal with future business problems whether in FinTech healthcare or supply chains a meeting the skill shortage it is a case for emerging in it's a case for investing in emerging communities and young change enablers throwing a wider net equates to being fully inclusive with a good representation of diversity you know under the shadow of the iconic show back in London there are pockets of deprivation where young people can't even get a job in a supermarket many of them are interested in tech in some way so my goal for the next three years is to encourage young people to become an active part of the coding community with open source we have the keys to unlock the potential for future innovation and technological development with young coders we have the people who have to face these problems working on them now troubleshooting being creative connecting with each other finding a community discovering their strengths along the way for me after running workshops in the community for a number of years when I returned from introducing coding to young street kids in Bangladesh I realized I had skills and experience so I set up my business hacker Famicom my first monetized fehmi's coding boot camp at Rice London Barclays Bank it was a sellout and a few weeks later shows my second I haven't looked back since but it works the opposite way - all the money raised enable me to buy robots for my community events and I was able to cascade my end price knowledge across to other young coders - when you focus on business problems you get active enthusiastic support from enterprise and then you can take on anything the support is great and we have tons of ideas but what does it really take to execute on those ideas to get things done can-do attitudes what open source needs you've seen it all this week we're all explorers ideator z' thinkers and doers open source needs people who can make the ideas happen get out there and see them through like I did setting up Safford and raspberry jam as an inclusive space to collaborate and learn together and that that led to organizing the young coders conference this was about organizing our own two-day event for our partners in industry to show they value young people and wanted to invest in our growth it doesn't stop there oh nice now I'm setting up monthly coding meetups and looking at ways to help other young people to access job opportunities in end price and digital services the underlying ethos remains the same in all I do promoting young people with the desire to explore collaborative problem-solving when coding digital making and building enterprise you fled having the confidence to define our journey and pathways always being inclusive always encouraging innovation and creativity being doers does more than get projects done makes us a pioneering force in the community dreaming and doing is how we will make exponential leaps my generation is standing on the shoulders of giants you the open-source pioneers and the technology you will built so I'd love to hear about your experiences who brought you into the open-source community who taught you as we go to upscale our efforts we encounter difficulties have you and how did you overcome them please do come to talk to me I'll be in the open-source stories booth both today and tomorrow giving workshops or visit the Red Hat page of my website hack Famicom I really value your insights in conclusion I'd like I'd like to ask you to challenge yourself you can do this by supporting young coders find the crowdfunding campaign kick-start their ideas into reality I'm proof that it works it's so awesome to be an active part of the next exponential leap together thank you [Applause] so unbelievable huh you know he reminds me of be at that age not even close and I can tell you I've spent a lot of time with Femi and his mom grace I mean what you see is what you get I mean he's incredibly passionate committed and all that stuff he's doing that long list of things he's doing he's going to do so hopefully today you get a sense of what's coming in the next generation the amazing things that people are doing with collaboration I'd also like to thank in addition to femi I'd like to thank Sauron Sarah and Ellie for equally compelling talks around the open source stories and again as I mentioned before any one of you can have an open source story that can be up here inspiring others and that's really our goal in telling these stories and giving voice to the things that you've seen today absolutely extraordinary things are happening out there and I encourage you to take every advantage you can hear this week and as is our theme for the summit please keep exploring thank you very much [Applause] [Music]

>> narrator: From Las Vegas it's theCUBE covering IBM Think 2018. Brought to you by IBM. >> We're back at IBM Think 2018. My name is Dave Vellante. I'm here with Peter Burris, my co-host, and you're watching theCUBE, the leader in live tech coverage. Our day two of our wall to wall coverage of IBM Think. Madhu Kochar is here. She's the Vice President of Analytics, Product Development at IBM and she's joined by Pat Maqetuka >> Close enough. She's a data officer at Nedbank. Ladies, welcome to theCUBE. You have to say your last name for me. >> Patricia Maqetuka. >> Oh, you didn't click >> I did! >> Do it again. >> Maqetuka. >> Amazing. I wish I could speak that language. Well, welcome. >> Madhu & Pat: Thank you. >> Good to see you again. >> Madhu: Thank you. >> Let's start with IBM Think. New show for you guys you consolidated, you know, six big tent events into one. There's a lot of people, there's too many people, to count I've been joking. 30, 40 thousand people, we're not quite sure, but how's the event going for you? What are clients telling you? >> Yeah, no, I mean, to your point, yes, we brought in all three big pillars together; a lot of folks here. From data and analytics perspective, an amazing, amazing event for us. Highlights from yesterday with Arvind Krishna on our research. What's happening. You know, five for five, that was really inspiring for all of us. You know, looking into the future, and it's not all about technology, was all about how we are here to help protect the world and change the world. So that as a, as a gige, as an engineer, that was just so inspiring. And as I was talking to our clients, they walk away with IBM as really a solution provider and helping, so that was really good. I think today's, Ginni's, keynote was very inspiring, as well. From our clients, we got some of our key clients, you know, Nedbank is here with us, and we've been talking a lot about our future, our strategy. We just announced, Ginni actually announced, our new product, IBM Cloud Private for Data. Everything around data, you know, where we are really bringing the power of data and analytics all together on a private cloud. So that's a huge announcement for us, and we've been talking a lot with our clients and the strategies resonating and particularly, where I come from in terms of the co-ordinance and integration space, this is definitely becoming now the "wow" factor because it helps stitch the entire solutions together and provide, you know, better insights to the data. >> Pat from your perspective, you're coming from Johannesburg so you probably like the fact that there's all IBM in one, so you don't have to come back to three or four conferences every year, but love your perspectives on that, and can you please tell us about Nedbank and your role as Chief Data Officer. >> Nedbank is one of the big five financial banks in South Africa. I've been appointed as the CDO about 18 months ago, so it's a new role in the bank per say. However, we're going through tremendous transformation in the bank and especially our IT eco-system has been transformed because we need to keep up with what is happening in the IT world. >> Are you the banks first Chief Data Officer? >> Definitely yes. I'm the first. >> Okay. So, you're a pioneer. I have to ask you then, so where did you start when you took over as the Chief Data Officer? I mean banking is one of those industries that tends to be more Chief Data Officer oriented, but it's a new role, so where did you start? >> Well we are not necessary new in the data, per say. We have had traditional data warehousing functions in the organization with traditional warehousing or data roles in the organization. However, the Chief Data role was never existent in the bank and actual fact, the bank appointed two new roles 18 months ago. One of them was the Chief Digital Officer, who is my colleague, and myself being appointed as the Chief Data Officer. >> Interesting, okay. I talked to somebody from Northern Trust yesterday and she was the lead data person and she said, "I had to start with a mission. We had to find the mission first and then we looked at the team, and then we evolved into, how we contribute to the business, how we improve data quality, who has access, what skills we needed." Does that seem like a logical progression and did you take a similar path? >> I think every bank will look at it differently or every institution. However, from a Nedbank perspective, we were given the gift by the regulator in bringing the BCBS 239 compliancy into play, so what the bank then did, how do we leverage, not just being compliant, but leveraging the data to create competitive advantage, and to create new sources of revenue. >> Okay. Let's talk about, Madhu we talked about this in New York City, you know, governance, compliance, kind of an evil word to a lot of business people. Although, your contention was "Look, it's reality. You can actually turn it into a positive." So talk about that a little bit and then we can tie it into Nedbank's experiences. >> Yeah, so I firmly believe in, you know, in the past governance 1.0 was all about compliance and regulations, very critical, but that's all we drew. I believe now, it's all about governance 2.0, where it's not just the compliance, but how do I drive insights, you know, so data is so, so critical from that perspective, and driving insights quicker to your businesses, is going to be very important, so as we engage with Nedbank and other clients as well, they are turning that because they are incumbents. They know their data, they've got a lot of data, you know, some of, they know sitting in structure, law structure land, and it's really, really important that they quickly able to assess what's in it, classify it, right, and then quickly deliver the results to the businesses, which they're looking for, so we're, I believe in lieu of governance 2.0, and compliance and regulations are always going to be with us, and we're making, actually, a lot of improvements in our technology, introducing machine learning, how we can do these things faster and quicker. >> So one of the first modern pieces of work that Peter and I did was around data classification and that seems to be, I heard this theme before, it seems to be a component or a benefit of putting governance in place. That you can automate data classification and use it to affect policy, but Pat, from your standpoint, how do you approach governance, what are the business benefits beyond "we have to do this"? >> Like I earlier on alluded to, we took the regulation as a gift and said, "How do we turn this regulation into benefits for the organization?" So in looking at the regulation we then said, "How do we then structure the approach?" So we looked at the two prompts. The first was, the right to win. The right to win meaning that we are able to utilize the right to compete approach from a regulation perspective, to create a platform and a foundation for analytics for our organization. We also created the blueprint for our enterprise data program and in the blueprint, we also came up with key nine principles of what it means to stay true to our data. I.e. you mentioned classification, you mentioned data politic, you mentioned lineage. Those are the key aspects within our principles. The other key principle we also indicated was the issue around duplication. How do we ensure that we describe data once, we ingest it once, but we use it multiple times to answer different questions, and as you are aware, in analytics, the more you mine the data, the more inquisitive you become, so it is, (clears throat) Sorry. It's not been from data to information, information to insight, and eventually insights to foresight, so looking into the future, and now you bring it back into data. >> And also some points that you've made Pat, so the concept is, one of the challenges of using the fuel example, is that governance of fuel, is still governance of a thing. You can apply it here, you can apply it there, you can't apply it to both places. Data's different and you were very, very accurate when you said "We wanted to find it once, we want to ingest it once, we want to use it multiple times". That places a very different set of conditions on the types of governance and in many respects, in the past, other types of assets where there is this sense of scarcity, it is a problem, but one of the things that I'm, and this is a question, is the opportunity, you said the regulatory opportunity, is the opportunity, because data can be shared, should we start treating governance really as a way of thinking about how to generate value out of data, and not a way of writing down the constraints of how we use it. What do you think about that? >> I think you are quite right with that because the more you give the people the opportunity to go and explore, so you unleash empowerment, you unleash freedom for them to go and explore. They will not see governance as a stick like I initially indicated, but they see it as business as usual, so it will come natural. However, it doesn't happen overnight. People need to be matured, organization is to be matured. Now, the first step you have to do is to create those policies, create awareness around the policies, and make sure that the people who are utilizing the data are trained in to what are the do's and the don'ts. We are fully aware that cyber security's one of our biggest threats, so you can also not look at how you create security around your data. People knowing that how I use my data it is an asset of the bank and not an asset of an individual. >> I know you guys have to go across the street, but I wanted to get this in. You're a global analytics global elite client; I want to understand what the relationship is. I mean, IBM, why IBM, maybe make a few comments about your relationship with the company. >> I think we as Nedbank, we are privileged, actually, to be inculcated into this global elite program of IBM. That has helped me in actual, in advancing what we need to do from a data perspective because anytime I can pick up a phone to collaborate with the IBM MaaS, I can pick up the phone whenever I need support, I need guidance. I don't have to struggle alone because they've done it with all the other clients before, so why should I reinvent the wheel, whereas someone else has done it, so let me tap into that, so that that can progress quicker than try it first. >> Alright. Madhu, we'll give you the final word. On Think and your business and your priorities. >> So, Think is amazing, you know, the opportunity to meet with all our clients and coming from product development, talking about our strategy and getting that validation is just good, you know, sharing open road maps with clients like Nedbank and our other global elites, you know. It gives us an opportunity, not just sharing of the road maps, but actually a lot of co-creation, right, to take us into the future, so I'm having a blast. I got to go run over and meet a few other clients, but thank you for having us over here. It's a pleasure. >> You're very welcome and thank you so much for coming on and telling your story, Pat, and Madhu, always a pleasure to see you. >> Thank you. >> Alright, got to get in your high horse and go. Thanks for watching everybody, we'll be right back after this short break. You're watching theCUBE live from IBM Think 2018. We'll be right back. (electronic music)

>> Narrator: Live from Las Vegas, it's the CUBE. Covering AWS re:Invent 2017, presented by AWS, Intel, and our ecosystem of partners. (the CUBE theme music) >> Hey, welcome back everyone. Here live in Las Vegas, the CUBE's coverage of Amazon re:Invent. It's 45,000 people, lot of action. Again, three days of wall-to-wall coverage. This is day two, trying not to lose my voice. I'm here with Justin Warren, my cohost this week, along with Stu Miniman, Keith Townsend, and a variety of other great, great hosts for the CUBE. Doing our share to get that data to you. Our next guest is Kalyan Ramanathan, who's the vice president in product market at SumoLogic, but also the author with a group of people from SumoLogic on a great report that they have out called Modern Applications in the Cloud, and he came and he took some time to come from his meetings to come on the CUBE to talk about it. Because we've been riffing on what is a modern application? What is a modern cloud? You know that Justin and I were talking about this renaissance in software development. Obviously, the cloud wars are happening. The water's being pulled out, that tsunami's coming. It's changing the face of startups, IT, and developers at the heart of the action, a new cultural renaissance. Welcome to the CUBE. >> Thank you very much. >> So, a little editorializing there, an opining. But we believe that we are seeing a C change, a renaissance in software. Because the things that are now possible, the creativity, the power of developers, the end-to-end visibility into services is just like putting a PowerPoint slide together, or LEGO blocks. It's just like, it's so easy, not. But I mean, it could be easy, it's easier. >> Kalyan: Absolutely. >> So modern applications are top of our mind, so everyone wants to be modern. They wanna be hip, they wanna be cool. But there's some serious work getting done right now in the cloud. And there's a shift of greatness coming. What does your report show? Because we wanna dig into it. What the hell is a modern application? Is Oracle a modern application? Do I buy Watson at IBM? I see that on TV a lot. What is a modern application? >> Yeah let me, thank you John. So let me start with a quick introduction about SumoLogic, so that I can set a context about this modern application report. So SumoLogic is a cloud-native machine data analytics service, and what we do is to help our customers manage the operations and security of their mission-critical applications, right? The end goal to our customers is that now they can deliver an application with very good security posture and with exceptionally good customer experience. Now, we've been in AWS for about seven years. We have about 1,600 customers under management today. So what we've been able to do in this modern application report is to fundamentally mine data from our customers in a very anonymous way and give insight into what typically makes up a modern application in the cloud, right? And when we talk about a modern application, and I typically see three characteristics to these modern applications. First and foremost, many of these applications are indeed architected or perhaps I should say even re-architected in public cloud environments like AWS or Azure or Google Cloud Platform. Secondly, many of these applications are built using DevOps and Agile-style practices, so the rate and speed of change in this application is completely off the charts. The third thing that we are starting to see a lot more of is that many of these applications are built using Microservices-style technology, so it's very easy to compose these applications. You can put them together very easily, you can make changes to these applications a lot. So that's our typical definition of a modern application. >> Okay, well, we heard Andrew Jassy, I think, one or two days ago, was talking about if I started AWS again from scratch, today I would be using serverless. So I wouldn't be deploying virtual machines, I wouldn't actually be using a lot of the AWS services that we have today. So what are you seeing in the momentum for how developers are using the different types of stack. We're seeing a lot of growth in NoSQL, we're seeing a lot of growth in serverless functions. If I were starting a modern application today, what would my stack look like? >> Yeah, I mean, that's at the heart of the report that we put together, right? The report actually provides an end-to-end application stack, starting all the way from the infrastructure layer to the applications and even perhaps the management and the security technologies that you may need to manage these modern applications well. So let's start off with the infrastructure layer, right? So what SumoLogic has identified in, anonymously again, mining our customer data is that, you know, on the infrastructure side, Linux rules. As a operating system, goes without saying, Linux is the dominant operating system in AWS and that is to be understood. But here's the other interesting data point. Linux is also getting significant foothold in the Azure world. And that is not commonplace knowledge today, right? I mean, you would expect that Windows is ruling the Azure world, but we are actually starting to see dramatic year over year growth in terms of Linux within the Azure world. Now, let's move up the stack, right? Let's go from the host and the operating system now to the container world. What we are starting to see is dramatic growth in container adoption within AWS. Last year, when we put out the first version of this report, we saw that 18% of our customers are using Docker within AWS. This year, we are seeing that one in four customers are actually using Docker within their environment. >> Node.js, we saw a New Relic kind of report too. They laid out a little bit different instrumentation of it, with what languages. Python and Node.js, certainly Node.js, really awesome for the cloud and you're seeing that continue to be great. How does that gonna fit into Azure, for instance? What are they doing in their clients? So we were talking about Azure, right? So you look at their numbers, right? Azure versus AWS OS adoption. Okay, Linux is moving up because they made that announcement. But people have been looking at Azure and confused by the Azure stack. It's almost like a black box. Here, Amazon lays it out very cleanly. How is the Azure stack piece impacted? >> Yeah I mean, Microsoft, they've historically been a much more of a closed ecosystem. But I think in the Azure world, we are definitely starting to see Microsoft open the kimono, in some sense, and start to adopt, not just opensource technologies, but also technologies that are not very core to the Microsoft stack itself. A lot of our customers who are using us in Azure today, are, as I mentioned, they're using Linux in a fairly significant way. We are also starting to see Azure functions being used in a significant way. In terms of the entire application stack, again, Azure has, while they are behind AWS in terms of the number of services, the richness of the services, we are starting to see them catch up in a very significant way. >> All right, here's a Here's a pointed question for you, it's a tough question, okay? Maybe tough to answer, maybe you know the answer. A lot of people will try to fake it until they make it. And you've heard that term around. You really can't fake being a modern application, so what do you see as ones that aren't making it, in terms of architecture and stacks? Maybe it's Legacy trying to bolt on a little bit of glam front end, Javascript, or Node. Where's the failure, or having one relational database, maybe Oracle and trying to blend that in? Is there a formula that you see that's not working? >> You know, I think the act of just putting on a shim around a Legacy technology and calling that modern, I think what we are starting to see more and more of, is that that can take you so far, but only so far, right? The underlying infrastructure technologies of today, especially containers and you guys heard Andy Jassy talk about Kubernetes today at his keynote. There are such technology advances that are so core to the architecture of the modern app that if you choose not to implement them and if you just put, in some sense, a lipstick on a pig and a tiny little shim on top of a Legacy application, >> Sprinkle a little bit of glitter on things, yeah. >> You're, can you get away with it for a year or so? Absolutely, but then you're talking about, you know, dealing with extreme scalability, high elasticity, security of the kind that is needed for most enterprises. That's where the Legacy technology and just a sprinkling of dust, as you described it, is going to fall apart. >> I love the top two data, two of the three top datas are NoSQL. Interesting you got MySQL, Redis, Mongo and PostgreSQL, and then Cassandra and then Redshift. Redis, really kicking ass at number two. >> Kalyan: Absolutely. That's surprising. I always loved Redis but that's moving up. That's ahead of Mongo. >> Yeah, absolutely. I mean, Redis has a huge following. It's a in-memory database, as you know. It also has a lot of shades of NoSQL. >> John: It's flexible. >> It's very flexible, absolutely. So I mean, the interesting data point in the database analysis that we did was that in the cloud world, NoSQL and SQL are pretty much head-to-head, right? So, I mean the way we think about it is, when you are re-architecting your applications to the cloud, it really gives you the opportunity to step back and say, what do I do with my data store? Does it have to be the Oracle of the past? Can I re-architect it for something that's more optimized for what I'm trying to do now? And that's where, I think NoSQL has really caught on. >> We, you know Justin, we were talking yesterday, and then Andy's keynote. I had one-on-one with him a week ago. It's good, some of my content made it into his keynote, because one of the things I've been banging on we talked about yesterday was, these modern databases, modern apps, could have multiple databases. And you, look at Redis, there's different use cases. DynamoDB is slow on lookups, I might wanna have a queue there. I might wanna tie it with Redis and a little bit of architectural shape. It's a whole new normal, it's not a one trick pony. >> Yeah, and Redis is really popular in the Kubernetes community, I know. So as we see Kubernetes growing, then I expect that the Redis growth will also follow that. >> The question is, this is what I've put, and he put inside his keynote was, the new modern app can have multiple databases. This is gonna have a huge impact. How does that impact this report? What do you see, because now it kinda changes the game? It's not one, I can't just throw MySQL at it, or Mongo. Used to be the old days, LAMP stack and say, okay, Mongo's awesome, I'm gonna build my app, but now I gotta integrate it with another app. >> Yeah, no, absolutely. I mean, we're seeing heterogeneity across the board, right? And that is part of the goal of a report like this, too. Right, I mean, we put this report out mostly focused on cloud architects, DevOps engineers, SRE engineers who are rethinking what it takes to run an application in the cloud, may it be AWS, Azure, et cetera. And we wanted to provide them a roadmap of what are their peers doing in this world. >> Well, we really appreciate you and SumoLogic doing a report. New Relic has one. We love these kind of reports and when they're this good, we like to talk about them. I know you're being really nice and you don't wanna lose customers by pissing off other cloud guys, because you're in Switzerland, you play with all of them. But there's really some interesting data here that points to who's leading and who's not, and then the stacks do matter. The developers are influencing IT decisions now. So knowing the stack, knowing your stack, what works for developers, super important. We're gonna keep track of it. We'll certainly invite you into our powwow out at the studios to do some check-ins on the report. Maybe do a deeper dive, appreciate it. >> Yeah, and all I'll say is this report is available on our website. It's, you know, you don't have to register, you get it. >> John: Free. Yeah, it's free. >> They don't even ask for an email address, which is great. (laughter) So thanks so much for SumoLogic. Thanks for coming on the CUBE and breaking down the report. More live coverage here from Las Vegas, from Amazon re:Invent, I'm John Furrier with Justin Warren. We'll be right back with more after this short break. (the CUBE theme music)

>> Narrator: Live from Las Vegas, it's theCUBE covering AWS re:Invent 2017 presented by AWS, Intel, and our ecosystem of partners. >> Welcome back to AWS re:Invent 2017. I am Lisa Martin with theCUBE, our day two of continuing coverage of this event that has attracted 44,000 people. Keith Townsend is my cohost, and we are very excited to welcome to theCUBE family Simon West, the CMO of Cyxtera. Welcome, Simon. >> Thank you, great to be here. >> Cyxtera, a six-month-old company. Tell us about it, what do you guys do? >> Sure, so as you said we are just six months old. It feels longer than that now, born at the intersection of five simultaneous acquisitions. One part of that was the acquisition of 57 data centers and a global co-location business that was formerly owned and operated by Century Link. Into that we've added the security and analytics capabilities of four modern startup software companies, and the vision is to provide a secure infrastructure solution both within our data centers, but interestingly even though I've got 57 data centers around the world, I want to be location agnostic. We recognize that today's enterprises are running multi-clouds, running hybrid environments, so we extend our security solutions on prem and into public clouds which is why we are here at AWS re:Invent. >> Fantastic. >> One of the big challenges that we hear from the enterprise perspective, hybrid IT is that the control that we have internally are very different from the controls that exist in AWS. How do you guys help even that out? >> You are exactly right, we would go so far as to gently suggest that the core method by which we protect access to infrastructure and applications which is still predicated on a physical perimeter is just fundamentally flawed in a 2017 world where your applications are everywhere, your users are everywhere connecting on a myriad of devices. You can't build a wall around that which doesn't exist. You have also obviously, as you say, you've got that problem of hydrogenous platforms, each with their own method of control. Our flagship product in that area is a product called AppGate SDP. SDP stands for software defined perimeter which is an emerging specification born out of the US government's disarm. Now a number of companies are offering software defined perimeter solutions. The basic premise that we hold is that security should be user centric rather than IP centric. A firewall is still predicated on granting access from one IP block to another IP block. The VPN may capture who is coming in, but once you are in, we give you basically unfettered access to flat corporate internal networks and we track you as an IP address rather than as a user. We think we should get more user centric. The user should be at the center of our policy. We think it should be more like cloud in the way we run security so rather than these hardware-based static central chokepoints, we think security should be real-time, it should be adaptive and intelligent, and it should be as agile as the cloud. You build cloud applications that are capable of spawning multiple copies of themselves, auto scaling up and down, moving from availability zone to availability zone yet our typical network security posture is still highly static. When you have some of the high profile attacks that we have seen over the last few months, our ability to change policy, immediately we recognize a problem. A particular operating system, apps in a particular service pack, is incredibly out of step with how agile the rest of our IT is. So more like cloud in terms of the way it operates, and finally we think, and so does the software defined perimeter spec, we think that access needs to be thought of as conditional rather than just a X, Y, yes or no. Jim has access to sensitive financial systems should be dependent on what operating system Jim is using whether Jim is on a coffee shop Wi-Fi network or on a structured corporate network, the time of day, the day of week, our overall security posture. The way AppGate works is when a user tries to access a system, the policy can ingest any one of these different conditional items. It can interrogate the device the user is using for the right software revisions. You can look at environmental variables. It can even look at internal business systems and check anything it can get to via an API, and only if those conditions are met will it provide access to a specific system, and then it can monitor that real time, so if your context changes, you move from a trusted network to an untested network, we can alter access. We can prime for a one time multifactor authentication or take any other steps the user wants. We offer that in cloud, on premise, integrated into our data centers to provide one central policy mechanism no matter what platform you are running on. In the case of AWS, we integrate with features like security groups, like AMI machine tagging, so you can build policy natively out of those Amazon features as well. >> Talk about that transition to this user based approach. I would imagine that a user can migrate their legacy systems into one of your 56, 57 data centers, and then as they start to expand out to the cloud, they have to change their operating model from they may migrate their traditional big firewall into your data center. What does that migration process look like? Is that an application by application spec, network by network? How do I transition? >> You know, it really varies. It feels a lot like I'm an old cloud guy, so it feels a lot like cloud did in the late 00s, in 2008, 2009. We think the software defined perimeter is going to have that big of an impact, a cloudlike impact on network and application security, but the way in which organizations will choose to implement it is going to vary. One of the things we did very early on was to integrate AppGate as a service into the data centers. If you think about co-location environments, when you bring new gear into a data center, you racket and stack it, the very next thing you do after that is drag a VPN back to the corporate office so you can access it remotely, which we would respectfully suggest is not necessarily the best way to do it in 2017 out of the chute. We've then integrated AppGate so organizations can just avail themselves of that as a service, and instantly have a kind of easy on-ramp. One of the big areas we see, and we've seen with customers here at re:Invent is customers who are moving workloads to cloud, and want to make sure that they can have that same sense of fine-grained access control common to those on premises and off premises environments, whether that's at migration or that's just an extension of an app into cloud environments, so it's kind of all over the place. >> Sorry Simon, what differentiates Cyxtera's approach to the software defined perimeter from your competitors? >> A couple of things, it's extremely robust in terms of one, being able to run in multiple environments, so a native AWS version, versions that run natively in other public cloud environments. Obviously we think the ability to offer it deeply integrated into the data centers is important. It's also capable of granting access to more than just web applications. You've got some solutions out there that are really web proxies and that are built for SAS apps and born on the cloud apps. This is more of a fundamental network platform by which you can gain access to any system or application you choose, and finally was introduced the concept of what we call scriptable entitlements which is the ability to interrogate third-party systems via API, and bring back those results as part of the building policy. An example there is we've got service provider customers who are running large multitenant environments. You then have a technical support organization who needs to support a huge multi thousands of servers environment with multiple customers running in multiple VLANs and typically the way you have to do that is a jam box in the middle and then giving these technical support folks access to that entire backend management network which is a security risk. With AppGate, you can actually integrate into a ticketing system and when John in support asks for access to a customer database server, at runtime, we can find out whether there is a trouble ticket open on that box assigned to that rep, and only then will we grant access. We don't grant level network access. We grant access to that specific application. We call it a segment of one, secure and cryptic connection between the user's device and the application or the applications they have access to but to nothing else. Everything else on the network is literally dark. It cannot be port scanned. It doesn't show up at all, so it's a much narrower sense of control, a much narrower sense of access, and again it's dynamic. If that trouble ticket that shut off, the access goes away automatically. We think the integration into business systems is a critical piece of the puzzle and an area where I think we have innovated with AppGate. >> Let's talk about security in depth. Obviously you guys are putting the software security perimeter around the data center, what we would classify as the data center which is kind of disappearing in a sense, and the edge. You talked about end-user protection. Where do you guys pickup and drop off when it comes to MDM, mobile device management, which is much more important now with mobile, and then laptops, desktops, et cetera, and you mentioned third parties, pieces of data center equipment that's not in your data center, like a wind farm. >> Sure, so you are right. We are absolutely moving to the edge. I think we continue to think that the data center will be as important as it ever was. The more cloud we have, the more data centers it needs to run in. The more public cloud we have the more people want to move some of their machines that might have historically run on prem to cloud data centers with low latency direct connect to public cloud environments. If you look at our data center footprint with regard to the edge, we are not just in the major markets, although in major metropolitan markets I've got half a dozen data centers all linked together, but I'm also in markets started across the country, so I've got half a dozen in New York and New Jersey, half a dozen in DC, half a dozen in the Bay Area, but I'm in Tampa, I'm in Columbus Ohio, I'm in Dallas, I'm in Denver, and so that distribution becomes particularly important as more customers move data to the edge. From a security perspective, again, we think of that data center as the nexus of enterprise at IT and the cloud. The data center is where our conversation about security in terms of access control starts. It's a physical security message of biometrics, and ID checks, and so forth, but there, we think is the missing piece of the puzzle. The principal point of ingress and egress into a data center today is not to the front door, the back door, or the loading dock. It's the massively clustered multicarrier network core, so if you are not providing some level of access control in and out of the network, I'd offer you are not providing a truly secure infrastructure solution. We start there. We are focused mainly at this point with AppGate at controlling the conversation between the user device and the system applications themselves. One of our other acquisitions, a company called Cat Bird has done some innovative work in terms of east/west segmentation in virtual environments, which is notoriously difficult otherwise to see, to stop the spread of how machines can talk to each other in a large virtualized forms as well, and so it's the infrastructure where we principally focus. >> Where are we, or maybe where are you guys in this revolution of information security? Are we at the forefront of massive change? What is Cyxtera's view on that? >> I think we are at the beginnings of a revolution that's about 20 years late. If you can kind of carbon date year zero of modern IT at around 1996, which is the advent of the Internet as a commercial and consumer force, that was the revolution for enterprise IT. That was the moment that we had to move IT outside the four walls of the machine room on the corporate campus. Prior to that, the applications all ran on big beige boxes in one room. The users were largely tethered to them by smaller beige boxes in other rooms, and the notion of perimeter security worked. It was a valid construct. As soon as enterprises had to start thinking about an increasingly global user base, as soon as users started to connect from all over the place, the concept of this perimeter goes away. Over the last 20 years, you've seen revolution after revolution and the way in which we design, provision, deploy, manage and operate our business applications, our development frameworks, and our infrastructure. We've revolutionized for availability. We've revolutionized agility. We've turned IT into a real-time API driven motion, and we've revolutionized for scalability with platforms like AWS just industrializing this real time IT on a global scale, and if you took a systems administrator from '96, and you showed them IT today, I think you have some explaining to do. If you took a security administrator from 1996 and showed him 2017, I think the construct would be familiar. We are still hardware driven in a software defined world. We are still assuming that access is static, that it's never changing, that it's predicated on the users being someplace, the applications being another, and again, in a world of real time IT, a world in which our underlying application footprint changes without any human intervention whatsoever, and I think you see with WannaCry, with NotPetya, with all of these attacks, the commonalities that they have in the terms of the reason they were so devastating is one, they take advantage of lateral spread. They take advantage of riding an authorized access into a corporate network where port scans show up 10,000s of ports where you can rattle the handles, break the locks, and spread like wildfire, and two, in the case of something like WannaCry, days after we realized what the problem was, we were unable to simply alter as an institution, as an industry, or as an enterprise access policy at the press of a button until we could get things patched. We had to sit, and wait, and watch the fires continue to burn, so it's a question of security being insufficiently agile, insufficiently automated and adaptive, and insufficiently software driven. We think that is just starting. I think on the SDP side, we've noticed in the last six months the conversation changing. We've noticed customers who now have SDP mandates internally who are seriously starting to evaluate these technologies. >> Wow, it sounds like Cyxtera is at the beginning of being potentially a great leader in this security revolution. We wish you, Simon, and the entire company the best of luck. We thank you so much for joining us on theCUBE, and we look forward to hearing great things from you guys down the road. >> Much appreciated, thank you both. >> Absolutely, for my cohost, Keith Townsend, I'm Lisa Martin. You are watching theCUBE's continuous coverage of AWS re:Invent 2017. Stick around guys, we will be right back.

(upbeat techno music) >> Announcer: Good morning ladies and gentlemen. This is Lenovo Transform. Please welcome to the stage Lenovo's Rod Lappin. (upbeat instrumental) >> Alright, ladies and gentlemen. Here we go. I was out the back having a chat. A bit faster than I expected. How are you all doing this morning? (crowd cheers) >> Good? How fantastic is it to be in New York City? (crowd applauds) Excellent. So my name's Rod Lappin. I'm with the Data Center Group, obviously. I do basically anything that touches customers from our sales people, our pre-sales engineers, our architects, et cetera, all the way through to our channel partner sales engagement globally. So that's my job, but enough of that, okay? So the weather this morning, absolutely fantastic. Not a cloud in the sky, perfect. A little bit different to how it was yesterday, right? I want to thank all of you because I know a lot of you had a lot of commuting issues getting into New York yesterday with all the storms. We have a lot of people from international and domestic travel caught up in obviously the network, which blows my mind, actually, but we have a lot of people here from Europe, obviously, a lot of analysts and media people here as well as customers who were caught up in circling around the airport apparently for hours. So a big round of applause for our team from Europe. (audience applauds) Thank you for coming. We have some people who commuted a very short distance. For example, our own server general manager, Cameron (mumbles), he's out the back there. Cameron, how long did it take you to get from Raleigh to New York? An hour-and-a-half flight? >> Cameron: 17 hours. >> 17 hours, ladies and gentleman. That's a fantastic distance. I think that's amazing. But I know a lot of us, obviously, in the United States have come a long way with the storms, obviously very tough, but I'm going to call out one individual. Shaneil from Spotless. Where are you Shaneil, you're here somewhere? There he is from Australia. Shaneil how long did it take you to come in from Australia? 25 hour, ladies and gentleman. A big round of applause. That's a pretty big effort. Shaneil actually I want you to stand up, if you don't mind. I've got a seat here right next to my CEO. You've gone the longest distance. How about a big round of applause for Shaneil. We'll put him in my seat, next to YY. Honestly, Shaneil, you're doing me a favor. Okay ladies and gentlemen, we've got a big day today. Obviously, my seat now taken there, fantastic. Obviously New York City, the absolute pinnacle of globalization. I first came to New York in 1996, which was before a lot of people in the room were born, unfortunately for me these days. Was completely in awe. I obviously went to a Yankees game, had no clue what was going on, didn't understand anything to do with baseball. Then I went and saw Patrick Ewing. Some of you would remember Patrick Ewing. Saw the Knicks play basketball. Had no idea what was going on. Obviously, from Australia, and somewhat slightly height challenged, basketball was not my thing but loved it. I really left that game... That was the first game of basketball I'd ever seen. Left that game realizing that effectively the guy throws the ball up at the beginning, someone taps it, that team gets it, they run it, they put it in the basket, then the other team gets it, they put it in the basket, the other team gets it, and that's basically the entire game. So I haven't really progressed from that sort of learning or understanding of basketball since then, but for me, personally, being here in New York, and obviously presenting with all of you guys today, it's really humbling from obviously some of you would have picked my accent, I'm also from Australia. From the north shore of Sydney. To be here is just a fantastic, fantastic event. So welcome ladies and gentlemen to Transform, part of our tech world series globally in our event series and our event season here at Lenovo. So once again, big round of applause. Thank you for coming (audience applauds). Today, basically, is the culmination of what I would classify as a very large journey. Many of you have been with us on that. Customers, partners, media, analysts obviously. We've got quite a lot of our industry analysts in the room. I know Matt Eastwood yesterday was on a train because he sent a Tweet out saying there's 170 people on the WIFI network. He was obviously a bit concerned he was going to get-- Pat Moorhead, he got in at 3:30 this morning, obviously from traveling here as well with some of the challenges with the transportation, so we've got a lot of people in the room that have been giving us advice over the last two years. I think all of our employees are joining us live. All of our partners and customers through the stream. As well as everybody in this packed-out room. We're very very excited about what we're going to be talking to you all today. I want to have a special thanks obviously to our R&D team in Raleigh and around the world. They've also been very very focused on what they've delivered for us today, and it's really important for them to also see the culmination of this great event. And like I mentioned, this is really the feedback. It's not just a Lenovo launch. This is a launch based on the feedback from our partners, our customers, our employees, the analysts. We've been talking to all of you about what we want to be when we grow up from a Data Center Group, and I think you're going to hear some really exciting stuff from some of the speakers today and in the demo and breakout sessions that we have after the event. These last two years, we've really transformed the organization, and that's one of the reasons why that theme is part of our Tech World Series today. We're very very confident in our future, obviously, and where the company's going. It's really important for all of you to understand today and take every single snippet that YY, Kirk, and Christian talk about today in the main session, and then our presenters in the demo sections on what Lenovo's actually doing for its future and how we're positioning the company, obviously, for that future and how the transformation, the digital transformation, is going ahead globally. So, all right, we are now going to step into our Transform event. And I've got a quick agenda statement for you. The very first thing is we're going to hear from YY, our chairman and CEO. He's going to discuss artificial intelligence, the evolution of our society and how Lenovo is clearly positioning itself in the industry. Then, obviously, you're going to hear from Kirk Skaugen, our president of the Data Center Group, our new boss. He's going to talk about how long he's been with the company and the transformation, once again, we're making, very specifically to the Data Center Group and how much of a difference we're making to society and some of our investments. Christian Teismann, our SVP and general manager of our client business is going to talk about the 25 years of ThinkPad. This year is the 25-year anniversary of our ThinkPad product. Easily the most successful brand in our client branch or client branch globally of any vendor. Most successful brand we've had launched, and this afternoon breakout sessions, obviously, with our keynotes, fantastic sessions. Make sure you actually attend all of those after this main arena here. Now, once again, listen, ask questions, and make sure you're giving us feedback. One of the things about Lenovo that we say all the time... There is no room for arrogance in our company. Every single person in this room is a customer, partner, analyst, or an employee. We love your feedback. It's only through your feedback that we continue to improve. And it's really important that through all of the sessions where the Q&As happen, breakouts afterwards, you're giving us feedback on what you want to see from us as an organization as we go forward. All right, so what were you doing 25 years ago? I spoke about ThinkPad being 25 years old, but let me ask you this. I bet you any money that no one here knew that our x86 business is also 25 years old. So, this year, we have both our ThinkPad and our x86 anniversaries for 25 years. Let me tell you. What were you guys doing 25 years ago? There's me, 25 years ago. It's a bit scary, isn't it? It's very svelte and athletic and a lot lighter than I am today. It makes me feel a little bit conscious. And you can see the black and white shot. It shows you that even if you're really really short and you come from the wrong side of the tracks to make some extra cash, you can still do some modeling as long as no one else is in the photo to give anyone any perspective, so very important. I think I might have got one photo shoot out of that, I don't know. I had to do it, I needed the money. Let me show you another couple of photos. Very interesting, how's this guy? How cool does he look? Very svelte and athletic. I think there's no doubt. He looks much much cooler than I do. Okay, so ladies and gentlemen, without further ado, it gives me great honor to obviously introduce our very very first guest to the stage. Ladies and gentlemen, our chairman and CEO, Yuanqing Yang. or as we like to call him, YY. A big round of applause, thank you. (upbeat techno instrumental) >> Good morning everyone. Thank you, Rod, for your introduction. Actually, I didn't think I was younger than you (mumbles). I can't think of another city more fitting to host the Transform event than New York. A city that has transformed from a humble trading post 400 years ago to one of the most vibrant cities in the world today. It is a perfect symbol of transformation of our world. The rapid and the deep transformations that have propelled us from the steam engine to the Internet era in just 200 years. Looking back at 200 years ago, there was only a few companies that operated on a global scale. The total value of the world's economy was around $188 billion U.S. dollars. Today, it is only $180 for each person on earth. Today, there are thousands of independent global companies that compete to sell everything, from corn and crude oil to servers and software. They drive a robust global economy was over $75 trillion or $1,000 per person. Think about it. The global economy has multiplied almost 450 times in just two centuries. What is even more remarkable is that the economy has almost doubled every 15 years since 1950. These are significant transformation for businesses and for the world and our tiny slice of pie. This transformation is the result of the greatest advancement in technology in human history. Not one but three industrial revolutions have happened over the last 200 years. Even though those revolutions created remarkable change, they were just the beginning. Today, we are standing at the beginning of the fourth revolution. This revolution will transform how we work (mumbles) in ways that no one could imagine in the 18th century or even just 18 months ago. You are the people who will lead this revolution. Along with Lenovo, we will redefine IT. IT is no longer just information technology. It's intelligent technology, intelligent transformation. A transformation that is driven by big data called computing and artificial intelligence. Even the transition from PC Internet to mobile Internet is a big leap. Today, we are facing yet another big leap from the mobile Internet to the Smart Internet or intelligent Internet. In this Smart Internet era, Cloud enables devices, such as PCs, Smart phones, Smart speakers, Smart TVs. (mumbles) to provide the content and the services. But the evolution does not stop them. Ultimately, almost everything around us will become Smart, with building computing, storage, and networking capabilities. That's what we call the device plus Cloud transformation. These Smart devices, incorporated with various sensors, will continuously sense our environment and send data about our world to the Cloud. (mumbles) the process of this ever-increasing big data and to support the delivery of Cloud content and services, the data center infrastructure is also transforming to be more agile, flexible, and intelligent. That's what we call the infrastructure plus Cloud transformation. But most importantly, it is the human wisdom, the people learning algorithm vigorously improved by engineers that enables artificial intelligence to learn from big data and make everything around us smarter. With big data collected from Smart devices, computing power of the new infrastructure under the trend artificial intelligence, we can understand the world around us more accurately and make smarter decisions. We can make life better, work easier, and society safer and healthy. Think about what is already possible as we start this transformation. Smart Assistants can help you place orders online with a voice command. Driverless cars can run on the same road as traditional cars. (mumbles) can help troubleshoot customers problems, and the virtual doctors already diagnose basic symptoms. This list goes on and on. Like every revolution before it, intelligent transformation, will fundamentally change the nature of business. Understanding and preparing for that will be the key for the growth and the success of your business. The first industrial revolution made it possible to maximize production. Water and steam power let us go from making things by hand to making them by machine. This transformed how fast things could be produced. It drove the quantity of merchandise made and led to massive increase in trade. With this revolution, business scale expanded, and the number of customers exploded. Fifty years later, the second industrial revolution made it necessary to organize a business like the modern enterprise, electric power, and the telegraph communication made business faster and more complex, challenging businesses to become more efficient and meeting entirely new customer demands. In our own lifetimes, we have witnessed the third industrial revolution, which made it possible to digitize the enterprise. The development of computers and the Internet accelerated business beyond human speed. Now, global businesses have to deal with customers at the end of a cable, not always a handshake. While we are still dealing with the effects of a digitizing business, the fourth revolution is already here. In just the past two or three years, the growth of data and advancement in visual intelligence has been astonishing. The computing power can now process the massive amount of data about your customers, suppliers, partners, competitors, and give you insights you simply could not imagine before. Artificial intelligence can not only tell you what your customers want today but also anticipate what they will need tomorrow. This is not just about making better business decisions or creating better customer relationships. It's about making the world a better place. Ultimately, can we build a new world without diseases, war, and poverty? The power of big data and artificial intelligence may be the revolutionary technology to make that possible. Revolutions don't happen on their own. Every industrial revolution has its leaders, its visionaries, and its heroes. The master transformers of their age. The first industrial revolution was led by mechanics who designed and built power systems, machines, and factories. The heroes of the second industrial revolution were the business managers who designed and built modern organizations. The heroes of the third revolution were the engineers who designed and built the circuits and the source code that digitized our world. The master transformers of the next revolution are actually you. You are the designers and the builders of the networks and the systems. You will bring the benefits of intelligence to every corner of your enterprise and make intelligence the central asset of your business. At Lenovo, data intelligence is embedded into everything we do. How we understand our customer's true needs and develop more desirable products. How we profile our customers and market to them precisely. How we use internal and external data to balance our supply and the demand. And how we train virtual agents to provide more effective sales services. So the decisions you make today about your IT investment will determine the quality of the decisions your enterprise will make tomorrow. So I challenge each of you to seize this opportunity to become a master transformer, to join Lenovo as we work together at the forefront of the fourth industrial revolution, as leaders of the intelligent transformation. (triumphant instrumental) Today, we are launching the largest portfolio in our data center history at Lenovo. We are fully committed to the (mumbles) transformation. Thank you. (audience applauds) >> Thanks YY. All right, ladies and gentlemen. Fantastic, so how about a big round of applause for YY. (audience applauds) Obviously a great speech on the transformation that we at Lenovo are taking as well as obviously wanting to journey with our partners and customers obviously on that same journey. What I heard from him was obviously artificial intelligence, how we're leveraging that integrally as well as externally and for our customers, and the investments we're making in the transformation around IoT machine learning, obviously big data, et cetera, and obviously the Data Center Group, which is one of the key things we've got to be talking about today. So we're on the cusp of that fourth revolution, as YY just mentioned, and Lenovo is definitely leading the way and investing in those parts of the industry and our portfolio to ensure we're complimenting all of our customers and partners on what they want to be, obviously, as part of this new transformation we're seeing globally. Obviously now, ladies and gentlemen, without further ado once again, to tell us more about what's going on today, our announcements, obviously, that all of you will be reading about and seeing in the breakout and the demo sessions with our segment general managers this afternoon is our president of the data center, Mr. Kirk Skaugen. (upbeat instrumental) >> Good morning, and let me add my welcome to Transform. I just crossed my six months here at Lenovo after over 24 years at Intel Corporation, and I can tell you, we've been really busy over the last six months, and I'm more excited and enthusiastic than ever and hope to share some of that with you today. Today's event is called "Transform", and today we're announcing major new transformations in Lenovo, in the data center, but more importantly, we're celebrating the business results that these platforms are going to have on society and with international supercomputing going on in parallel in Frankfurt, some of the amazing scientific discoveries that are going to happen on some of these platforms. Lenovo has gone through some significant transformations in the last two years, since we acquired the IBM x86 business, and that's really positioning us for this next phase of growth, and we'll talk more about that later. Today, we're announcing the largest end-to-end data center portfolio in Lenovo's history, as you heard from YY, and we're really taking the best of the x86 heritage from our IBM acquisition of the x86 server business and combining that with the cost economics that we've delivered from kind of our China heritage. As we've talked to some of the analysts in the room, it's really that best of the east and best of the west is combining together in this announcement today. We're going to be announcing two new brands, building on our position as the number one x86 server vendor in both customer satisfaction and in reliability, and we're also celebrating, next month in July, a very significant milestone, which will we'll be shipping our 20 millionth x86 server into the industry. For us, it's an amazing time, and it's an inflection point to kind of look back, pause, but also share the next phase of Lenovo and the exciting vision for the future. We're also making some declarations on our vision for the future today. Again, international supercomputing's going on, and, as it turns out, we're the fastest growing supercomputer company on earth. We'll talk about that. Our goal today that we're announcing is that we plan in the next several years to become number one in supercomputing, and we're going to put the investments behind that. We're also committing to our customers that we're going to disrupt the status quo and accelerate the pace of innovation, not just in our legacy server solutions, but also in Software-Defined because what we've heard from you is that that lack of legacy, we don't have a huge router business or a huge sand business to protect. It's that lack of legacy that's enabling us to invest and get ahead of the curb on this next transition to Software-Defined. So you're going to see us doing that through building our internal IP, through some significant joint ventures, and also through some merges and acquisitions over the next several quarters. Altogether, we're driving to be the most trusted data center provider in the industry between us and our customers and our suppliers. So a quick summary of what we're going to dive into today, both in my keynote as well as in the breakout sessions. We're in this transformation to the next phase of Lenovo's data center growth. We're closing out our previous transformation. We actually, believe it or not, in the last six months or so, have renegotiated 18,000 contracts in 160 countries. We built out an entire end-to-end organization from development and architecture all the way through sales and support. This next transformation, I think, is really going to excite Lenovo shareholders. We're building the largest data center portfolio in our history. I think when IBM would be up here a couple years ago, we might have two or three servers to announce in time to market with the next Intel platform. Today, we're announcing 14 new servers, seven new storage systems, an expanded set of networking portfolios based on our legacy with Blade Network Technologies and other companies we've acquired. Two new brands that we'll talk about for both data center infrastructure and Software-Defined, a new set of premium premiere services as well as a set of engineered solutions that are going to help our customers get to market faster. We're going to be celebrating our 20 millionth x86 server, and as Rod said, 25 years in x86 server compute, and Christian will be up here talking about 25 years of ThinkPad as well. And then a new end-to-end segmentation model because all of these strategies without execution are kind of meaningless. I hope to give you some confidence in the transformation that Lenovo has gone through as well. So, having observed Lenovo from one of its largest partners, Intel, for more than a couple decades, I thought I'd just start with why we have confidence on the foundation that we're building off of as we move from a PC company into a data center provider in a much more significant way. So Lenovo today is a company of $43 billion in sales. Absolutely astonishing, it puts us at about Fortune 202 as a company, with 52,000 employees around the world. We're supporting and have service personnel, almost a little over 10,000 service personnel that service our servers and data center technologies in over 160 countries that provide onsite service and support. We have seven data center research centers. One of the reasons I came from Intel to Lenovo was that I saw that Lenovo became number one in PCs, not through cost cutting but through innovation. It was Lenovo that was partnering on the next-generation Ultrabooks and two-in-ones and tablets in the modem mods that you saw, but fundamentally, our path to number one in data center is going to be built on innovation. Lastly, we're one of the last companies that's actually building not only our own motherboards at our own motherboard factories, but also with five global data center manufacturing facilities. Today, we build about four devices a second, but we also build over 100 servers per hour, and the cost economics we get, and I just visited our Shenzhen factory, of having everything from screws to microprocessors come up through the elevator on the first floor, go left to build PCs and ThinkPads and go right to build server technology, means we have some of the world's most cost effective solutions so we can compete in things like hyperscale computing. So it's with that that I think we're excited about the foundation that we can build off of on the Data Center Group. Today, as we stated, this event is about transformation, and today, I want to talk about three things we're going to transform. Number one is the customer experience. Number two is the data center and our customer base with Software-Defined infrastructure, and then the third is talk about how we plan to execute flawlessly with a new transformation that we've had internally at Lenovo. So let's dive into it. On customer experience, really, what does it mean to transform customer experience? Industry pundits say that if you're not constantly innovating, you can fall behind. Certainly the technology industry that we're in is transforming at record speed. 42% of business leaders or CIOs say that digital first is their top priority, but less than 50% actually admit that they have a strategy to get there. So people are looking for a partner to keep pace with that innovation and change, and that's really what we're driving to at Lenovo. So today we're announcing a set of plans to take another step function in customer experience, and building off of our number one position. Just recently, Gartner shows Lenovo as the number 24 supply chains of companies over $12 billion. We're up there with Amazon, Coca-Cola, and we've now completely re-architected our supply chain in the Data Center Group from end to end. Today, we can deliver 90% of our SKUs, order to ship in less than seven days. The artificial intelligence that YY mentioned is optimizing our performance even further. In services, as we talked about, we're now in 160 countries, supporting on-site support, 50 different call centers around the world for local language support, and we're today announcing a whole set of new premiere support services that I'll get into in a second. But we're building on what's already better than 90% customer satisfaction in this space. And then in development, for all the engineers out there, we started foundationally for this new set of products, talking about being number one in reliability and the lowest downtime of any x86 server vendor on the planet, and these systems today are architected to basically extend that leadership position. So let me tell you the realities of reliability. This is ITIC, it's a reliability report. 750 CIOs and IT managers from more than 20 countries, so North America, Europe, Asia, Australia, South America, Africa. This isn't anything that's paid for with sponsorship dollars. Lenovo has been number one for four years running on x86 reliability. This is the amount of downtime, four hours or more, in mission-critical environments from the leading x86 providers. You can see relative to our top two competitors that are ahead of us, HP and Dell, you can see from ITIC why we are building foundationally off of this, and why it's foundational to how we're developing these new platforms. In customer satisfaction, we are also rated number one in x86 server customer satisfaction. This year, we're now incentivizing every single Lenovo employee on customer satisfaction and customer experience. It's been a huge mandate from myself and most importantly YY as our CEO. So you may say well what is the basis of this number one in customer satisfaction, and it's not just being number one in one category, it's actually being number one in 21 of the 22 categories that TBR talks about. So whether it's performance, support systems, online product information, parts and availability replacement, Lenovo is number one in 21 of the 22 categories and number one for six consecutive studies going back to Q1 of 2015. So this, again, as we talk about the new product introductions, it's something that we absolutely want to build on, and we're humbled by it, and we want to continue to do better. So let's start now on the new products and talk about how we're going to transform the data center. So today, we are announcing two new product offerings. Think Agile and ThinkSystem. If you think about the 25 years of ThinkPad that Christian's going to talk about, Lenovo has a continuous learning culture. We're fearless innovators, we're risk takers, we continuously learn, but, most importantly, I think we're humble and we have some humility. That when we fail, we can fail fast, we learn, and we improve. That's really what drove ThinkPad to number one. It took about eight years from the acquisition of IBM's x86 PC business before Lenovo became number one, but it was that innovation, that listening and learning, and then improving. As you look at the 25 years of ThinkPad, there were some amazing successes, but there were also some amazing failures along the way, but each and every time we learned and made things better. So this year, as Rod said, we're not just celebrating 25 years of ThinkPad, but we're celebrating 25 years of x86 server development since the original IBM PC servers in 1992. It's a significant day for Lenovo. Today, we're excited to announce two new brands. ThinkSystem and ThinkAgile. It's an important new announcement that we started almost three years ago when we acquired the x86 server business. Why don't we run a video, and we'll show you a little bit about ThinkSystem and ThinkAgile. >> Narrator: The status quo is comfortable. It gets you by, but if you think that's good enough for your data center, think again. If adoption is becoming more complicated when it should be simpler, think again. If others are selling you technology that's best for them, not for you, think again. It's time for answers that win today and tomorrow. Agile, innovative, different. Because different is better. Different embraces change and makes adoption simple. Different designs itself around you. Using 25 years of innovation and design and R&D. Different transforms, it gives you ThinkSystem. World-record performance, most reliable, easy to integrate, scales faster. Different empowers you with ThinkAgile. It redefines the experience, giving you the speed of Cloud and the control of on-premise IT. Responding faster to what your business really needs. Different defines the future. Introducing Lenovo ThinkSystem and ThinkAgile. (exciting and slightly aggressive digital instrumental) >> All right, good stuff, huh? (audience applauds) So it's built off of this 25-year history of us being in the x86 server business, the commitment we established three years ago after acquiring the x86 server business to be and have the most reliable, the most agile, and the most highest-performing data center solutions on the planet. So today we're announcing two brands. ThinkSystem is for the traditional data center infrastructure, and ThinkAgile is our brand for Software-Defined infrastructure. Again, the teams challenge themselves from the start, how do we build off this rich heritage, expanding our position as number one in customer satisfaction, reliability, and one of the world's best supply chains. So let's start and look at the next set of solutions. We have always prided ourself that little things don't mean a lot. Little things mean everything. So today, as we said on the legacy solutions, we have over 30 world-record performance benchmarks on Intel architecture, and more than actually 150 since we started tracking this back in 2001. So it's the little pieces of innovation. It's the fine tuning that we do with our partners like an Intel or a Microsoft, an SAP, VMware, and Nutanix that's enabling us to get these world-record performance benchmarks, and with this next generation of solutions we think we'll continue to certainly do that. So today we're announcing the most comprehensive portfolio ever in our data center history. There's 14 servers, seven storage devices, and five network switches. We're also announcing, which is super important to our customer base, a set of new premiere service options. That's giving you fast access directly to a level two support person. No automated response system involved. You get to pick up the phone and directly talk to a level two support person that's going to have end-to-end ownership of the customer experience for ThinkSystem. With ThinkAgile, that's going to be completely bundled with every ThinkAgile you purchase. In addition, we're having white glove service on site that will actually unbox the product for you and get it up and running. It's an entirely new set of solutions for hybrid Cloud, for big data analytics and database applications around these engineered solutions. These are like 40- to 50-page guides where we fine-tuned the most important applications around virtual desktop infrastructure and those kinds of applications, working side by side with all of our ISP partners. So significantly expanding, not just the hardware but the software solutions that, obviously, you, as our customers, are running. So if you look at ThinkSystem innovation, again, it was designed for the ultimate in flexibility, performance, and reliability. It's a single now-unified brand that combines what used to be the Lenovo Think server and the IBM System x products now into a single brand that spans server, storage, and networking. We're basically future-proofing it for the next-generation data center. It's a significantly simplified portfolio. One of the big pieces that we've heard is that the complexity of our competitors has really been overwhelming to customers. We're building a more flexible, more agile solution set that requires less work, less qualification, and more future proofing. There's a bunch of things in this that you'll see in the demos. Faster time-to-service in terms of the modularity of the systems. 12% faster service equating to almost $50 thousand per hour of reduced downtime. Some new high-density options where we have four nodes and a 2U, twice the density to improve and reduce outbacks and mission-critical workloads. And then in high-performance computing and supercomputing, we're going to spend some time on that here shortly. We're announcing new water-cooled solutions. We have some of the most premiere water-cooled solutions in the world, with more than 25 patents pending now, just in the water-cooled solutions for supercomputing. The performance that we think we're going to see out of these systems is significant. We're building off of that legacy that we have today on the existing Intel solutions. Today, we believe we have more than 50% of SAP HANA installations in the world. In fact, SAP just went public that they're running their internal SAP HANA on Lenovo hardware now. We're seeing a 59% increase in performance on SAP HANA generation on generation. We're seeing 31% lower total cost to ownership. We believe this will continue our position of having the highest level of five-nines in the x86 server industry. And all of these servers will start being available later this summer when the Intel announcements come out. We're also announcing the largest storage portfolio in our history, significantly larger than anything we've done in the past. These are all available today, including some new value class storage offerings. Our network portfolio is expanding now significantly. It was a big surprise when I came to Lenovo, seeing the hundreds of engineers we had from the acquisition of Blade Network Technologies and others with our teams in Romania, Santa Clara, really building out both the embedded portfolio but also the top racks, which is around 10 gig, 25 gig, and 100 gig. Significantly better economics, but all the performance you'd expect from the largest networking companies in the world. Those are also available today. ThinkAgile and Software-Defined, I think the one thing that has kind of overwhelmed me since coming in to Lenovo is we are being embraced by our customers because of our lack of legacy. We're not trying to sell you one more legacy SAN at 65% margins. ThinkAgile really was founded, kind of born free from the shackles of legacy thinking and legacy infrastructure. This is just the beginning of what's going to be an amazing new brand in the transformation to Software-Defined. So, for Lenovo, we're going to invest in our own internal organic IP. I'll foreshadow: There's some significant joint ventures and some mergers and acquisitions that are going to be coming in this space. And so this will be the foundation for our Software-Defined networking and storage, for IoT, and ultimately for the 5G build-out as well. This is all built for data centers of tomorrow that require fluid resources, tightly integrated software and hardware in kind of an appliance, selling at the rack level, and so we'll show you how that is going to take place here in a second. ThinkAgile, we have a few different offerings. One is around hyperconverged storage, Hybrid Cloud, and also Software-Defined storage. So we're really trying to redefine the customer experience. There's two different solutions we're having today. It's a Microsoft Azure solution and a Nutanix solution. These are going to be available both in the appliance space as well as in a full rack solution. We're really simplifying and trying to transform the entire customer experience from how you order it. We've got new capacity planning tools that used to take literally days for us to get the capacity planning done. It's now going down to literally minutes. We've got new order, delivery, deployment, administration service, something we're calling ThinkAgile Advantage, which is the white glove unboxing of the actual solutions on prem. So the whole thing when you hear about it in the breakout sessions about transforming the entire customer experience with both an HX solution and an SX solution. So again, available at the rack level for both Nutanix and for Microsoft Solutions available in just a few months. Many of you in the audience since the Microsoft Airlift event in Seattle have started using these things, and the feedback to date has been fantastic. We appreciate the early customer adoption that we've seen from people in the audience here. So next I want to bring up one of our most important partners, and certainly if you look at all of these solutions, they're based on the next-generation Intel Xeon scalable processor that's going to be announcing very very soon. I want to bring on stage Rupal Shah, who's the corporate vice president and general manager of Global Data Center Sales with Intel, so Rupal, please join me. (upbeat instrumental) So certainly I have long roots at Intel, but why don't you talk about, from Intel's perspective, why Lenovo is an important partner for Lenovo. >> Great, well first of all, thank you very much. I've had the distinct pleasure of not only working with Kirk for many many years, but also working with Lenovo for many years, so it's great to be here. Lenovo is not only a fantastic supplier and leader in the industry for Intel-based servers but also a very active partner in the Intel ecosystem. In the Intel ecosystem, specifically, in our partner programs and in our builder programs around Cloud, around the network, and around storage, I personally have had a long history in working with Lenovo, and I've seen personally that PC transformation that you talked about, Kirk, and I believe, and I know that Intel believes in Lenovo's ability to not only succeed in the data center but to actually lead in the data center. And so today, the ThinkSystem and ThinkAgile announcement is just so incredibly important. It's such a great testament to our two companies working together, and the innovation that we're able to bring to the market, and all of it based on the Intel Xeon scalable processor. >> Excellent, so tell me a little bit about why we've been collaborating, tell me a little bit about why you're excited about ThinkSystem and ThinkAgile, specifically. >> Well, there are a lot of reasons that I'm excited about the innovation, but let me talk about a few. First, both of our companies really stand behind the fact that it's increasingly a hybrid world. Our two companies offer a range of solutions now to customers to be able to address their different workload needs. ThinkSystem really brings the best, right? It brings incredible performance, flexibility in data center deployment, and industry-leading reliability that you've talked about. And, as always, Xeon has a history of being built for the data center specifically. The Intel Xeon scalable processor is really re-architected from the ground up in order to enhance compute, network, and storage data flows so that we can deliver workload optimized performance for both a wide range of traditional workloads and traditional needs but also some emerging new needs in areas like artificial intelligence. Second is when it comes to the next generation of Cloud infrastructure, the new Lenovo ThinkAgile line offers a truly integrated offering to address data center pain points, and so not only are you able to get these pretested solutions, but these pretested solutions are going to get deployed in your infrastructure faster, and they're going to be deployed in a way that's going to meet your specific needs. This is something that is new for both of us, and it's an incredible innovation in the marketplace. I think that it's a great addition to what is already a fantastic portfolio for Lenovo. >> Excellent. >> Finally, there's high-performance computing. In high-performance computing. First of all, congratulations. It's a big week, I think, for both of us. Fantastic work that we've been doing together in high-performance computing and actually bringing the best of the best to our customers, and you're going to hear a whole lot more about that. We obviously have a number of joint innovation centers together between Intel and Lenovo. Tell us about some of the key innovations that you guys are excited about. >> Well, Intel and Lenovo, we do have joint innovation labs around the world, and we have a long and strong history of very tight collaboration. This has brought a big wave of innovation to the marketplace in areas like software-defined infrastructure. Yet another area is working closely on a joint vision that I think our two companies have in artificial intelligence. Intel is very committed to the world of AI, and we're committed in making the investments required in technology development, in training, and also in R&D to be able to deliver end-to-end solutions. So with Intel's comprehensive technology portfolio and Lenovo's development and innovation expertise, it's a great combination in this space. I've already talked a little bit about HPC and so has Kirk, and we're going to hear a little bit more to come, but we're really building the fastest compute solutions for customers that are solving big problems. Finally, we often talk about processors from Intel, but it's not just about the processors. It's way beyond that. It's about engaging at the solution level for our customers, and I'm so excited about the work that we've done together with Lenovo to bring to market products like Intel Omni-Path Architecture, which is really the fabric for high-performance data centers. We've got a great showing this week with Intel Omni-Path Architecture, and I'm so grateful for all the work that we've done to be able to bring true solutions to the marketplace. I am really looking forward to our future collaboration with Lenovo as we have in the past. I want to thank you again for inviting me here today, and congratulations on a fantastic launch. >> Thank you, Rupal, very much, for the long partnership. >> Thank you. (audience applauds) >> Okay, well now let's transition and talk a little bit about how Lenovo is transforming. The first thing we've done when I came on board about six months ago is we've transformed to a truly end-to-end organization. We're looking at the market segments I think as our customers define them, and we've organized into having vice presidents and senior vice presidents in charge of each of these major groups, thinking really end to end, from architecture all the way to end of life and customer support. So the first is hyperscale infrastructure. It's about 20% on the market by 2020. We've hired a new vice president there to run that business. Given we can make money in high-volume desktop PCs, it's really the manufacturing prowess, deep engineering collaboration that's enabling us to sell into Baidu, and to Alibaba, Tencent, as well as the largest Cloud vendors on the West Coast here in the United States. We believe we can make money here by having basically a deep deep engineering engagement with our key customers and building on the PC volume economics that we have within Lenovo. On software-defined infrastructure, again, it's that lack of legacy that I think is propelling us into this space. We're not encumbered by trying to sell one more legacy SAN or router, and that's really what's exciting us here, as we transform from a hardware to a software-based company. On HPC and AI, as we said, we'll talk about this in a second. We're the fastest-growing supercomputing company on earth. We have aspirations to be the largest supercomputing company on earth, with China and the U.S. vying for number one in that position, it puts us in a good position there. We're going to bridge that into artificial intelligence in our upcoming Shanghai Tech World. The entire day is around AI. In fact, YY has committed $1.2 billion to artificial intelligence over the next few years of R&D to help us bridge that. And then on data center infrastructure, is really about moving to a solutions based infrastructure like our position with SAP HANA, where we've gone deep with engineers on site at SAP, SAP running their own infrastructure on Lenovo and building that out beyond just SAP to other solutions in the marketplace. Overall, significantly expanding our services portfolio to maintain our number one customer satisfaction rating. So given ISC, or International Supercomputing, this week in Frankfurt, and a lot of my team are actually over there, I wanted to just show you the transformation we've had at Lenovo for delivering some of the technology to solve some of the most challenging humanitarian problems on earth. Today, we are the fastest-growing supercomputer company on the planet in terms of number of systems on the Top 500 list. We've gone from zero to 92 positions in just a few short years, but IDC also positions Lenovo as the fast-growing supercomputer and HPC company overall at about 17% year on year growth overall, including all of the broad channel, the regional universities and this kind of thing, so this is an exciting place for us. I'm excited today that Sergi has come all the way from Spain to be with us today. It's an exciting time because this week we announce the fastest next-generation Intel supercomputer on the planet at Barcelona Supercomputer. Before I bring Sergi on stage, let's run a video and I'll show you why we're excited about the capabilities of these next-generation supercomputers. Run the video please. >> Narrator: Different creates one of the most powerful supercomputers for the Barcelona Supercomputer Center. A high-performance, high-capacity design to help shape tomorrow's world. Different designs what's best for you, with 25 years of end-to-end expertise delivering large-scale solutions. It integrates easily with technology from industry partners, through deep collaboration with the client to manufacture, test, configure, and install at global scale. Different achieves the impossible. The first of a new series. A more energy-efficient supercomputer yet 10 times more powerful than its predecessor. With over 3,400 Lenovo ThinkSystem servers, each performing over two trillion calculations per second, giving us 11.1 petaflop capacity. Different powers MareNostrum, a supercomputer that will help us better understand cancer, help discover disease-fighting therapies, predict the impact of climate change. MareNostrom 4.0 promises to uncover answers that will help solve humanities greatest challenges. (audience applauds) >> So please help me in welcoming operations director of the Barcelona Supercomputer Center, Sergi Girona. So welcome, and again, congratulations. It's been a big week for both of us. But I think for a long time, if you haven't been to Barcelona, this has been called the world's most beautiful computer because it's in one of the most gorgeous chapels in the world as you can see here. Congratulations, we now are number 13 on the Top500 list and the fastest next-generation Intel computer. >> Thank you very much, and congratulations to you as well. >> So maybe we can just talk a little bit about what you've done over the last few months with us. >> Sure, thank you very much. It is a pleasure for me being invited here to present to you what we've been doing with Lenovo so far and what we are planning to do in the next future. I'm representing here Barcelona Supercomputing Center. I am presenting high-performance computing services to science and industry. How we see these science services has changed the paradigm of science. We are coming from observation. We are coming from observation on the telescopes and the microscopes and the building of infrastructures, but this is not affordable anymore. This is very expensive, so it's not possible, so we need to move to simulations. So we need to understand what's happening in our environment. We need to predict behaviors only going through simulation. So, at BSC, we are devoted to provide services to industry, to science, but also we are doing our own research because we want to understand. At the same time, we are helping and developing the new engineers of the future on the IT, on HPC. So we are having four departments based on different topics. The main and big one is wiling to understand how we are doing the next supercomputers from the programming level to the performance to the EIA, so all these things, but we are having also interest on what about the climate change, what's the air quality that we are having in our cities. What is the precision medicine we need to have. How we can see that the different drugs are better for different individuals, for different humans, and of course we have an energy department, taking care of understanding what's the better optimization for a cold, how we can save energy running simulations on different topics. But, of course, the topic of today is not my research, but it's the systems we are building in Barcelona. So this is what we have been building in Barcelona so far. From left to right, you have the preparation of the facility because this is 160 square meters with 1.4 megabytes, so that means we need new piping, we need new electricity, at the same time in the center we have to install the core services of the system, so the management practices, and then on the right-hand side you have installation of the networking, the Omni-Path by Intel. Because all of the new racks have to be fully integrated and they need to come into operation rapidly. So we start deployment of the system May 15, and we've now been ending and coming in production July first. All the systems, all the (mumbles) systems from Lenovo are coming before being open and available. What we've been installing here in Barcelona is general purpose systems for our general workload of the system with 3,456 nodes. Everyone of those having 48 cores, 96 gigabytes main memory for a total capacity of about 400 terabytes memory. The objective of this is that we want to, all the system, all the processors, to work together for a single execution for running altogether, so this is an example of the platinum processors from Intel having 24 cores each. Of course, for doing this together with all the cores in the same application, we need a high-speed network, so this is Omni-Path, and of course all these cables are connecting all the nodes. Noncontention, working together, cooperating. Of course, this is a bunch of cables. They need to be properly aligned in switches. So here you have the complete presentation. Of course, this is general purpose, but we wanted to invest with our partners. We want to understand what the supercomputers we wanted to install in 2020, (mumbles) Exascale. We want to find out, we are installing as well systems with different capacities with KNH, with power, with ARM processors. We want to leverage our obligations for the future. We want to make sure that in 2020 we are ready to move our users rapidly to the new technologies. Of course, this is in total, giving us a total capacity of 13.7 petaflops that it's 12 times the capacity of the former MareNostrum four years ago. We need to provide the services to our scientists because they are helping to solve problems for humanity. That's the place we are going to go. Last is inviting you to come to Barcelona to see our place and our chapel. Thank you very much (audience applauds). >> Thank you. So now you can all go home to your spouses and significant others and say you have a formal invitation to Barcelona, Spain. So last, I want to talk about what we've done to transform Lenovo. I think we all know the history is nice but without execution, none of this is going to be possible going forward, so we have been very very busy over the last six months to a year of transforming Lenovo's data center organization. First, we moved to a dedicated end-to-end sales and marketing organization. In the past, we had people that were shared between PC and data center, now thousands of sales people around the world are 100% dedicated end to end to our data center clients. We've moved to a fully integrated and dedicated supply chain and procurement organization. A fully dedicated quality organization, 100% dedicated to expanding our data center success. We've moved to a customer-centric segment, again, bringing in significant new leaders from outside the company to look end to end at each of these segments, supercomputing being very very different than small business, being very very different than taking care of, for example, a large retailer or bank. So around hyperscale, software-defined infrastructure, HPC, AI, and supercomputing and data center solutions-led infrastructure. We've built out a whole new set of global channel programs. Last year, or a year passed, we have five different channel programs around the world. We've now got one simplified channel program for dealer registration. I think our channel is very very energized to go out to market with Lenovo technology across the board, and a whole new set of system integrator relationships. You're going to hear from one of them in Christian's discussion, but a whole new set of partnerships to build solutions together with our system integrative partners. And, again, as I mentioned, a brand new leadership team. So look forward to talking about the details of this. There's been a significant amount of transformation internal to Lenovo that's led to the success of this new product introduction today. So in conclusion, I want to talk about the news of the day. We are transforming Lenovo to the next phase of our data center growth. Again, in over 160 countries, closing on that first phase of transformation and moving forward with some unique declarations. We're launching the largest portfolio in our history, not just in servers but in storage and networking, as everything becomes kind of a software personality on top of x86 Compute. We think we're very well positioned with our scale on PCs as well as data center. Two new brands for both data center infrastructure and Software-Defined, without the legacy shackles of our competitors, enabling us to move very very quickly into Software-Defined, and, again, foreshadowing some joint ventures in M&A that are going to be coming up that will further accelerate ourselves there. New premiere support offerings, enabling you to get direct access to level two engineers and white glove unboxing services, which are going to be bundled along with ThinkAgile. And then celebrating the milestone of 25 years in x86 server compute, not just ThinkPads that you'll hear about shortly, but also our 20 million server shipping next month. So we're celebrating that legacy and looking forward to the next phase. And then making sure we have the execution engine to maintain our position and grow it, being number one in customer satisfaction and number one in quality. So, with that, thank you very much. I look forward to seeing you in the breakouts today and talking with many of you, and I'll bring Rod back up to transition us to the next section. Thank you. (audience applauds) >> All right, Kirk, thank you, sir. All right, ladies and gentlemen, what did you think of that? How about a big round of applause for ThinkAgile, ThinkSystems new brands? (audience applauds) And, obviously, with that comes a big round of applause, for Kirk Skaugen, my boss, so we've got to give him a big round of applause, please. I need to stay employed, it's very important. All right, now you just heard from Kirk about some of the new systems, the brands. How about we have a quick look at the video, which shows us the brand new DCG images. >> Narrator: Legacy thinking is dead, stuck in the past, selling the same old stuff, over and over. So then why does it seem like a data center, you know, that thing powering all our little devices and more or less everything interaction today is still stuck in legacy thinking because it's rigid, inflexible, slow, but that's not us. We don't do legacy. We do different. Because different is fearless. Different reduces Cloud deployment from days to hours. Different creates agile technology that others follow. Different is fluid. It uses water-cooling technology to save energy. It co-innovates with some of the best minds in the industry today. Different is better, smarter. Maybe that's why different already holds so many world-record benchmarks in everything. From virtualization to database and application performance or why it's number one in reliability and customer satisfaction. Legacy sells you what they want. Different builds the data center you need without locking you in. Introducing the Data Center Group at Lenovo. Different... Is better. >> All right, ladies and gentlemen, a big round of applause, once again (mumbles) DCG, fantastic. And I'm sure all of you would agree, and Kirk mentioned it a couple of times there. No legacy means a real consultative approach to our customers, and that's something that we really feel is differentiated for ourselves. We are effectively now one of the largest startups in the DCG space, and we are very much ready to disrupt. Now, here in New York City, obviously, the heart of the fashion industry, and much like fashion, as I mentioned earlier, we're different, we're disruptive, we're agile, smarter, and faster. I'd like to say that about myself, but, unfortunately, I can't. But those of you who have observed, you may have noticed that I, too, have transformed. I don't know if anyone saw that. I've transformed from the pinstripe blue, white shirt, red tie look of the, shall we say, our predecessors who owned the x86 business to now a very Lenovo look. No tie and consequently a little bit more chic New York sort of fashion look, shall I say. Nothing more than that. So anyway, a bit of a transformation. It takes a lot to get to this look, by the way. It's a lot of effort. Our next speaker, Christian Teismann, is going to talk a lot about the core business of Lenovo, which really has been, as we've mentioned today, our ThinkPad, 25-year anniversary this year. It's going to be a great celebration inside Lenovo, and as we get through the year and we get closer and closer to the day, you'll see a lot more social and digital work that engages our customers, partners, analysts, et cetera, when we get close to that birthday. Customers just generally are a lot tougher on computers. We know they are. Whether you hang onto it between meetings from the corner of the Notebook, and that's why we have magnesium chassis inside the box or whether you're just dropping it or hypothetically doing anything else like that. We do a lot of robust testing on these products, and that's why it's the number one branded Notebook in the world. So Christian talks a lot about this, but I thought instead of having him talk, I might just do a little impromptu jump back stage and I'll show you exactly what I'm talking about. So follow me for a second. I'm going to jaunt this way. I know a lot of you would have seen, obviously, the front of house here, what we call the front of house. Lots of videos, et cetera, but I don't think many of you would have seen the back of house here, so I'm going to jump through the back here. Hang on one second. You'll see us when we get here. Okay, let's see what's going on back stage right now. You can see one of the team here in the back stage is obviously working on their keyboard. Fantastic, let me tell you, this is one of the key value props of this product, obviously still working, lots of coffee all over it, spill-proof keyboard, one of the key value propositions and why this is the number one laptop brand in the world. Congratulations there, well done for that. Obviously, we test these things. Height, distances, Mil-SPEC approved, once again, fantastic product, pick that up, lovely. Absolutely resistant to any height or drops, once again, in line with our Mil-SPEC. This is Charles, our producer and director back stage for the absolute event. You can see, once again, sand, coincidentally, in Manhattan, who would have thought a snow storm was occurring here, but you can throw sand. We test these things for all of the elements. I've obviously been pretty keen on our development solutions, having lived in Japan for 12 years. We had this originally designed in 1992 by (mumbles), he's still our chief development officer still today, fantastic, congratulations, a sand-enhanced notebook, he'd love that. All right, let's get back out front and on with the show. Watch the coffee. All right, how was that? Not too bad (laughs). It wasn't very impromptu at all, was it? Not at all a set up (giggles). How many people have events and have a bag of sand sitting on the floor right next to a Notebook? I don't know. All right, now it's time, obviously, to introduce our next speaker, ladies and gentlemen, and I hope I didn't steal his thunder, obviously, in my conversations just now that you saw back stage. He's one of my best friends in Lenovo and easily is a great representative of our legendary PC products and solutions that we're putting together for all of our customers right now, and having been an ex-Pat with Lenovo in New York really calls this his second home and is continually fighting with me over the fact that he believes New York has better sushi than Tokyo, let's welcome please, Christian Teismann, our SVP, Commercial Business Segment, and PC Smart Office. Christian Teismann, come on up mate. (audience applauds) >> So Rod thank you very much for this wonderful introduction. I'm not sure how much there is to add to what you have seen already back stage, but I think there is a 25-year of history I will touch a little bit on, but also a very big transformation. But first of all, welcome to New York. As Rod said, it's my second home, but it's also a very important place for the ThinkPad, and I will come back to this later. The ThinkPad is thee industry standard of business computing. It's an industry icon. We are celebrating 25 years this year like no other PC brand has done before. But this story today is not looking back only. It's a story looking forward about the future of PC, and we see a transformation from PCs to personalized computing. I am privileged to lead the commercial PC and Smart device business for Lenovo, but much more important beyond product, I also am responsible for customer experience. And this is what really matters on an ongoing basis. But allow me to stay a little bit longer with our iconic ThinkPad and history of the last 25 years. ThinkPad has always stand for two things, and it always will be. Highest quality in the industry and technology innovation leadership that matters. That matters for you and that matters for your end users. So, now let me step back a little bit in time. As Rod was showing you, as only Rod can do, reliability is a very important part of ThinkPad story. ThinkPads have been used everywhere and done everything. They have survived fires and extreme weather, and they keep surviving your end users. For 25 years, they have been built for real business. ThinkPad also has a legacy of first innovation. There are so many firsts over the last 25 years, we could spend an hour talking about them. But I just want to cover a couple of the most important milestones. First of all, the ThinkPad 1992 has been developed and invented in Japan on the base design of a Bento box. It was designed by the famous industrial designer, Richard Sapper. Did you also know that the ThinkPad was the first commercial Notebook flying into space? In '93, we traveled with the space shuttle the first time. For two decades, ThinkPads were on every single mission. Did you know that the ThinkPad Butterfly, the iconic ThinkPad that opens the keyboard to its size, is the first and only computer showcased in the permanent collection of the Museum of Modern Art, right here in New York City? Ten years later, in 2005, IBM passed the torch to Lenovo, and the story got even better. Over the last 12 years, we sold over 100 million ThinkPads, four times the amount IBM sold in the same time. Many customers were concerned at that time, but since then, the ThinkPad has remained the best business Notebook in the industry, with even better quality, but most important, we kept innovating. In 2012, we unveiled the X1 Carbon. It was the thinnest, lightest, and still most robust business PC in the world. Using advanced composited materials like a Formula One car, for super strengths, X1 Carbon has become our ThinkPad flagship since then. We've added an X1 Carbon Yoga, a 360-degree convertible. An X1 Carbon tablet, a detachable, and many new products to come in the future. Over the last few years, many new firsts have been focused on providing the best end-user experience. The first dual-screen mobile workstation. The first Windows business tablet, and the first business PC with OLED screen technology. History is important, but a massive transformation is on the way. Future success requires us to think beyond the box. Think beyond hardware, think beyond notebooks and desktops, and to think about the future of personalized computing. Now, why is this happening? Well, because the business world is rapidly changing. Looking back on history that YY gave, and the acceleration of innovation and how it changes our everyday life in business and in personal is driving a massive change also to our industry. Most important because you are changing faster than ever before. Human capital is your most important asset. In today's generation, they want to have freedom of choice. They want to have a product that is tailored to their specific needs, every single day, every single minute, when they use it. But also IT is changing. The Cloud, constant connectivity, 5G will change everything. Artificial intelligence is adding things to the capability of an infrastructure that we just are starting to imagine. Let me talk about the workforce first because it's the most important part of what drives this. The millennials will comprise more than half of the world's workforce in 2020, three years from now. Already, one out of three millennials is prioritizing mobile work environment over salary, and for nearly 60% of all new hires in the United States, technology is a very important factor for their job search in terms of the way they work and the way they are empowered. This new generation of new employees has grown up with PCs, with Smart phones, with tablets, with touch, for their personal use and for their occupation use. They want freedom. Second, the workplace is transforming. The video you see here in the background. This is our North America headquarters in Raleigh, where we have a brand new Smart workspace. We have transformed this to attract the new generation of workers. It has fewer traditional workspaces, much more meaning and collaborative spaces, and Lenovo, like many companies, is seeing workspaces getting smaller. An average workspace per employee has decreased by 30% over the last five years. Employees are increasingly mobile, but, if they come to the office, they want to collaborate with their colleagues. The way we collaborate and communicate is changing. Investment in new collaboration technology is exploding. The market of collaboration technology is exceeding the market of personal computing today. It will grow in the future. Conference rooms are being re-imagined from a ratio of 50 employees to one large conference room. Today, we are moving into scenarios of four employees to one conference room, and these are huddle rooms, pioneer spaces. Technology is everywhere. Video, mega-screens, audio, electronic whiteboards. Adaptive technologies are popping up and change the way we work. As YY said earlier, the pace of the revolution is astonishing. So personalized computing will transform the PC we all know. There's a couple of key factors that we are integrating in our next generations of PC as we go forward. The most important trends that we see. First of all, choose your own device. We talked about this new generation of workforce. Employees who are used to choosing their own device. We have to respond and offer devices that are tailored to each end user's needs without adding complexity to how we operate them. PC is a service. Corporations increasingly are looking for on-demand computing in data center as well as in personal computing. Customers want flexibility. A tailored management solution and a services portfolio that completes the lifecycle of the device. Agile IT, even more important, corporations want to run an infrastructure that is agile, instant respond to their end-customer needs, that is self provisioning, self diagnostic, and remote software repair. Artificial intelligence. Think about artificial intelligence for you personally as your personal assistant. A personal assistant which does understand you, your schedule, your travel, your next task, an extension of yourself. We believe the PC will be the center of this mobile device universe. Mobile device synergy. Each of you have two devices or more with you. They need to work together across different operating systems, across different platforms. We believe Lenovo is uniquely positioned as the only company who has a Smart phone business, a PC business, and an infrastructure business to really seamlessly integrate all of these devices for simplicity and for efficiency. Augmented reality. We believe augmented reality will drive significantly productivity improvements in commercial business. The core will be to understand industry-specific solutions. New processes, new business challenges, to improve things like customer service and sales. Security will remain the foundation for personalized computing. Without security, without trust in the device integrity, this will not happen. One of the most important trends, I believe, is that the PC will transform, is always connected, and always on, like a Smart phone. Regardless if it's open, if it's closed, if you carry it, or if you work with it, it always is capable to respond to you and to work with you. 5G is becoming a reality, and the data capacity that will be out there is by far exceeding today's traffic imagination. Finally, Smart Office, delivering flexible and collaborative work environments regardless on where the worker sits, fully integrated and leverages all the technologies we just talked before. These are the main challenges you and all of your CIO and CTO colleagues have to face today. A changing workforce and a new set of technologies that are transforming PC into personalized computing. Let me give you a real example of a challenge. DXC was just formed by merging CSE company and HP's Enterprise services for the largest independent services company in the world. DXC is now a 25 billion IT services leader with more than 170,000 employees. The most important capital. 6,000 clients and eight million managed devices. I'd like to welcome their CIO, who has one of the most challenging workforce transformation in front of him. Erich Windmuller, please give him a round of applause. (audience applauds). >> Thank you Christian. >> Thank you. >> It's my pleasure to be here, thank you. >> So first of all, let me congratulation you to this very special time. By forming a new multi-billion-dollar enterprise, this new venture. I think it has been so far fantastically received by analysts, by the press, by customers, and we are delighted to be one of your strategic partners, and clearly we are collaborating around workforce transformation between our two companies. But let me ask you a couple of more personal questions. So by bringing these two companies together with nearly 200,00 employees, what are the first actions you are taking to make this a success, and what are your biggest challenges? >> Well, first, again, let me thank you for inviting me and for DXC Technology to be a part of this very very special event with Lenovo, so thank you. As many of you might expect, it's been a bit of a challenge over the past several months. My goal was really very simple. It was to make sure that we brought two companies together, and they could operate as one. We need to make sure that could continue to support our clients. We certainly need to make sure we could continue to sell, our sellers could sell. That we could pay our employees, that we could hire people, we could do all the basic foundational things that you might expect a company would want to do, but we really focused on three simple areas. I called it the three Cs. Connectivity, communicate, and collaborate. So we wanted to make sure that we connected our legacy data centers so we could transfer information and communicate back and forth. We certainly wanted to be sure that our employees could communicate via WIFI, whatever locations they may or may not go to. We certainly wanted to, when we talk about communicate, we need to be sure that everyone of our employees could send and receive email as a DXC employee. And that we had a single-enterprise directory and people could communicate, gain access to calendars across each of the two legacy companies, and then collaborate was also key. And so we wanted to be sure, again, that people could communicate across each other, that our legacy employees on either side could get access to many of their legacy systems, and, again, we could collaborate together as a single corporation, so it was challenging, but very very, great opportunity for all of us. And, certainly, you might expect cyber and security was a very very important topic. My chairman challenged me that we had to be at least as good as we were before from a cyber perspective, and when you bring two large companies together like that there's clearly an opportunity in this disruptive world so we wanted to be sure that we had a very very strong cyber security posture, of which Lenovo has been very very helpful in our achieving that. >> Thank you, Erich. So what does DXC consider as their critical solutions and technology for workplace transformation, both internally as well as out on the market? >> So workplace transformation, and, again, I've heard a lot of the same kinds of words that I would espouse... It's all about making our employees productive. It's giving the right tools to do their jobs. I, personally, have been focused, and you know this because Lenovo has been a very very big part of this, in working with our, we call it our My Style Workplace, it's an offering team in developing a solution and driving as much functionality as possible down to the workstation. We want to be able, for me, to avoid and eliminate other ancillary costs, audio video costs, telecommunication cost. The platform that we have, the digitized workstation that Lenovo has provided us, has just got a tremendous amount of capability. We want to streamline those solutions, as well, on top of the modern server. The modern platform, as we call it, internally. I'd like to congratulate Kirk and your team that you guys have successfully... Your hardware has been certified on our modern platform, which is a significant accomplishment between our two companies and our partnership. It was really really foundational. Lenovo is a big part of our digital workstation transformation, and you'll continue to be, so it's very very important, and I want you to know that your tools and your products have done a significant job in helping us bring two large corporations together as one. >> Thank you, Erich. Last question, what is your view on device as a service and hardware utility model? >> This is the easy question, right? So who in the room doesn't like PC or device as a service? This is a tremendous opportunity, I think, for all of us. Our corporation, like many of you in the room, we're all driven by the concept of buying devices in an Opex versus a Capex type of a world and be able to pay as you go. I think this is something that all of us would like to procure, product services and products, if you will, personal products, in this type of a mode, so I am very very eager to work with Lenovo to be sure that we bring forth a very dynamic and constructive device as a service approach. So very eager to do that with Lenovo and bring that forward for DXC Technology. >> Erich, thank you very much. It's a great pleasure to work with you, today and going forward on all sides. I think with your new company and our lineup, I think we have great things to come. Thank you very much. >> My pleasure, great pleasure, thank you very much. >> So, what's next for Lenovo PC? We already have the most comprehensive commercial portfolio in the industry. We have put the end user in the core of our portfolio to finish and going forward. Ultra mobile users, like consultants, analysts, sales and service. Heavy compute users like engineers and designers. Industry users, increasingly more understanding. Industry-specific use cases like education, healthcare, or banking. So, there are a few exciting things we have to announce today. Obviously, we don't have that broad of an announcement like our colleagues from the data center side, but there is one thing that I have that actually... Thank you Rod... Looks like a Bento box, but it's not a ThinkPad. It's a first of it's kind. It's the world's smallest professional workstation. It has the power of a tower in the Bento box. It has the newest Intel core architecture, and it's designed for a wide range of heavy duty workload. Innovation continues, not only in the ThinkPad but also in the desktops and workstations. Second, you hear much about Smart Office and workspace transformation today. I'm excited to announce that we have made a strategic decision to expand our Think portfolio into Smart Office, and we will soon have solutions on the table in conference rooms, working with strategic partners like Intel and like Microsoft. We are focused on a set of devices and a software architecture that, as an IoT architecture, unifies the management of Smart Office. We want to move fast, so our target is that we will have our first product already later this year. More to come. And finally, what gets me most excited is the upcoming 25 anniversary in October. Actually, if you go to Japan, there are many ThinkPad lovers. Actually beyond lovers, enthusiasts, who are collectors. We've been consistently asked in blogs and forums about a special anniversary edition, so let me offer you a first glimpse what we will announce in October, of something we are bring to market later this year. For the anniversary, we will introduce a limited edition product. This will include throwback features from ThinkPad's history as well as the best and most powerful features of the ThinkPad today. But we are not just making incremental adjustments to the Think product line. We are rethinking ThinkPad of the future. Well, here is what I would call a concept card. Maybe a ThinkPad without a hinge. Maybe one you can fold. What do you think? (audience applauds) but this is more than just design or look and feel. It's a new set of advanced materials and new screen technologies. It's how you can speak to it or write on it or how it speaks to you. Always connected, always on, and can communicate on multiple inputs and outputs. It will anticipate your next meeting, your next travel, your next task. And when you put it all together, it's just another part of the story, which we call personalized computing. Thank you very much. (audience applauds) Thank you, sir. >> Good on ya, mate. All right, ladies and gentlemen. We are now at the conclusion of the day, for this session anyway. I'm going to talk a little bit more about our breakouts and our demo rooms next door. But how about the power with no tower, from Christian, huh? Big round of applause. (audience applauds) And what about the concept card, the ThinkPad? Pretty good, huh? I love that as well. I tell you, it was almost like Leonardo DiCaprio was up on stage at one stage. He put that big ThinkPad concept up, and everyone's phones went straight up and took a photo, the whole audience, so let's be very selective on how we distribute that. I'm sure it's already on Twitter. I'll check it out in a second. So once again, ThinkPad brand is a core part of the organization, and together both DCG and PCSD, what we call PCSD, which is our client side of the business and Smart device side of the business, are obviously very very linked in transforming Lenovo for the future. We want to also transform the industry, obviously, and transform the way that all of us do business. Lenovo, if you look at basically a summary of the day, we are highly committed to being a top three data center provider. That is really important for us. We are the largest and fastest growing supercomputing company in the world, and Kirk actually mentioned earlier on, committed to being number one by 2020. So Madhu who is in Frankfurt at the International Supercomputing Convention, if you're watching, congratulations, your targets have gone up. There's no doubt he's going to have a lot of work to do. We're obviously very very committed to disrupting the data center. That's obviously really important for us. As we mentioned, with both the brands, the ThinkSystem, and our ThinkAgile brands now, highly focused on disrupting and ensuring that we do things differently because different is better. Thank you to our customers, our partners, media, analysts, and of course, once again, all of our employees who have been on this journey with us over the last two years that's really culminating today in the launch of all of our new products and our profile and our portfolio. It's really thanks to all of you that once again on your feedback we've been able to get to this day. And now really our journey truly begins in ensuring we are disrupting and enduring that we are bringing more value to our customers without that legacy that Kirk mentioned earlier on is really an advantage for us as we really are that large startup from a company perspective. It's an exciting time to be part of Lenovo. It's an exciting time to be associated with Lenovo, and I hope very much all of you feel that way. So a big round of applause for today, thank you very much. (audience applauds) I need to remind all of you. I don't think I'm going to have too much trouble getting you out there, because I was just looking at Christian on the streaming solutions out in the room out the back there, and there's quite a nice bit of lunch out there as well for those of you who are hungry, so at least there's some good food out there, but I think in reality all of you should be getting up into the demo sessions with our segment general managers because that's really where the rubber hits the road. You've heard from YY, you've heard from Kirk, and you've heard from Christian. All of our general managers and our specialists in our product sets are going to be out there to obviously demonstrate our technology. As we said at the very beginning of this session, this is Transform, obviously the fashion change, hopefully you remember that. Transform, we've all gone through the transformation. It's part of our season of events globally, and our next event obviously is going to be in Tech World in Shanghai on the 20th of July. I hope very much for those of you who are going to attend have a great safe travel over there. We look forward to seeing you. Hope you've had a good morning, and get into the sessions next door so you get to understand the technology. Thank you very much, ladies and gentlemen. (upbeat innovative instrumental)

(soft music) (soft music) >> Narrator: Live from Las Vegas. It's the Cube. Covering Oracle Modern Customer Experience 2017. Brought to you by Oracle. >> Okay welcome back everyone. We're live in Las Vegas. This is the Cube. SiliconAngles flagship program. We got out to the events and extract the (mumbles). Been here two full days of wall to wall coverage. I'm John Furrier. My cohost Peter Burris. Peter really good to see Oracle really move from modern marketing experience, the old show name, to a cleaner broader canvas called Modern CX. Which is modern customer experience. And you startin to see the new management which took the baton from the old management. Kevin Akeroyd. Andrea Ward who did a lot of work. I mean they basically did a ton of acquisitions. We talked last year if you remember. Look they have a data opportunity and we spelled it right out there and said if they can leverage that data horizontally and then offer that vertical specialism with differentiation, they could have their cake and eat it too. Meaning the pillars of solutions in a digital fabric with data. That's what they did. They essentially did it. >> Yeah they did. And it's been, it was a. We came here hoping that that's what we would see and that's what we saw John. Oracle not only has access to a lot of data but a lot of that first person data that really differentiates the business. Information about your finances. Information about your customers. Information about orders. That's really, really crucial data. And it's not easy to get. And if you could build a a strategy for your customers that says let's find ways of bringing in new sources of data. Leveraging that data so that we can actually help you solve and serve your customers better. You got a powerful story. That's a great starting point. >> And one of the things that I would observe here is that this event, the top story was that Mark Hurd came down and talked to the customers in the keynote. And also made a cameo visit to the CMO, some which they had separately. But really kind of basically putting it transparently out there. Look we got all this technology. Why are we spending all of this technology and effort to get a one percent conversion rate on something that happens over here. Let's look at it differently. And I think the big story here is that Oracle puts the arc to the future. Which I think is a very relevant trajectory. Certainly directionally correct using data and then figuring out your process and implementing it. But really looking at it from a people perspective and saying if you can use the data, focus your energies on that data to get new things going. And not rely on the old so much. Make it better but bring in the new. >> I think that's the one thing that we need to see more from Oracle in all honesty. At shows, this show, and shows like this. Is that and we asked the question to a couple quests. What exactly is modern marketing? Technology can allow a company to do the wrong things faster and cheaper. And in some cases that's bad. In marketing that's awful. Because more of the wrong thing amplifies the problem. That's how you take down a brand. You can really annoy the hell out of your customers pretty quickly. >> Well I think you made that point interesting I thought. On that just to reiterate that, validate that, and amplify. Is that if you focus more on serving the business as a marketer versus now it's about the customer. Okay which is why I like the CX and I know you do too. You can create enterprise value through that new way. Versus hey look what team. I'm helping you out with some leads and whatever. Support, content. Marketing now owns the customer relationship. >> Well marketers talk about a persona all the time John. They say what's the persona? It's a stylized type of customer, and now with data we can make it increasingly specific. Which is very, very powerful. I think Oracle needs to do the same thing with the marketing function. What is that marketing function persona that Oracle is, it's self driving to. Driving it's customers to. And trying to lead the industry into. So I would personally like to see a little bit more about what will be the role of marketing in the future. What exactly is the modern. What exactly is modern marketing? What is the road map that Oracle has, not just for delivering the technology, but for that customer transformation that they talk about so much. It's clear that they have an idea. I'd like to see a little bit more public. Cause I think a lot of marketers need to know where they're going to end up. >> I was a bit skeptical coming in here today. I was a little nervous and skeptical. I like the team though, the people here. But I wasn't sure they were going to be able to pull this off as well as they did. I'd give them a solid letter grade of an A on this event. Not an A plus because I think there's some critical analysis that's worth addressing in my opinion. In my opinion Oracle's missing some things. It's not their fault. They're only going as fast as they can. Not to get into your perspective too, but here's my take. They don't know how to deal with video. That came up as technical issue. But Jay -- >> But nobody really does. >> But nobody really does. And that's just again because we're in the video business it jumped out at me. But Jay Baer was on. Who's hosted the CMO Summit. And he's out there too like us. Content is a big thing. And I haven't heard a lot about the content equation in the marketing mix. So if you look at the modern marketing mix, content is data. And content is instrumental as a payload for email marketing. And we're in the content business so we know a lot about the engagement side of it. So I just don't see a lot of the engagement conversations that are happening around content. Don't see that dots connecting. >> And I think you're right. I think you're right John. And part of the reason is, and again I think Oracle needs to do a better job at articulating what this means. From our perspective, it's my perspective but you agree with me. I'll put words in your mouth. Is that marketing has to be a source of value to customers. Well what do customers find valuable? They find information in easily digestible, consumable chunks as they go on their journey. What are those chunks? Those chunks, in fact, are content. So to tie this back and show how crucial this is. At the end of the day, consumers, businesses need to learn about your brand. Need to learn about next best action. All that other stuff. In consumable interesting, valuable chunks. And it ultimately ends up looking like content. So your absolutely right to talk about how this all comes together and show how, that content is the mechanism by which a lot of this value's actually going to be delivered. Is really crucial. >> And now to give the praise sandwich, as we say in positive coaching alliance, two positives and then the critical analysis in the middle. That's the praise sandwich. So to give them some praise around the criticism. I will say that Oracle validates for me, and this is why I think they got a good strategy. That there's no silver bullet in marketing. Okay there's no silver bullet. This product will get you more engagement. This will do that. They do show that data is going to be an instruble part of creating a series of collections of silver bullets. Of bullets if you will. To create that value. And I think that's the key. And then the second praise is, this is kind of nuance in their analysis. But the third party data support, is a big deal in my mind. I want to expand more on that. I want to learn more about it. Because when you have the first party data, which is very valuable, and access to more data sources. That becomes increasingly interesting. So the extensibility for getting content data or other data can come in through third party. I think that opens the door for Oracle to innovate on the area we gave the criticism on. So I think that's a positive trend. I think that's a good outlook on having the ability to get that third party data. >> Yeah but it's also going to be one of the places where Oracle is going to have to compete very, very aggressively with some other leaders who are a little bit more oriented towards content. At least some of their marketing clients are a little bit more content oriented. I'm comfortable Oracle will get there because let's face it. At the end of the day, marketing's always done a pretty good job of created, creative, using data to figure out what creative to use or create is nice. Very important. But what we're really talking about is customer experience. Will the customer get something out of every interaction? And while content's crucial to that the end result is ultimately, is the customer successful? And Oracle is showing a better play for that. So I'll give you, I like the way you did it on the grading. I'll give them a B plus. But I'm not disagreeing with you. I think we saw A talent here. We saw an A minus story. And they're a year in. So there's still some work that needs to be done, but it's clearly -- >> Why you weighted as a B plus >> I give them an A on vector. And where they're going. >> I would agree with that. >> And the feedback that we've gotten from the customers walking the show floor. There's a lot of excitement. A lot of positive energy. The other thing that I would say -- >> Oh the band. I'd give the band, the band was a B minus. (Peter laughs) Yeah that takes it. That's going to kill the curve. >> What was the band last night? >> I don't even remember. We missed the good one, I know that. We had dinner so we came late. It was a good band. It wasn't like, it wasn't like Maroon 5 or One Republic. Or Imagine Dragons or U2. >> Or one of the good ones. Sting. C minus. But the other thing that I think is really important is at least it pertains to modern customer experience. Is that they are, they are absolutely committed to the role the data's going to play. And we talked about that right at the front. But they are demonstrating a deep knowledge of how data and data integration and data flows are really going to impact the way their customers businesses operate. And I think that there were a couple of, I'll give a really high point and one that I want to hear more about in terms of the interviews we had. Great high point was one, we talked a lot about data science and how data science technologies are being productized. And that we heard, for example, that Oracle's commitment to it's marketplace is that they are going to insure that their customers can serve their customer's customers with any request within 130 milliseconds anywhere in the world. That's a very, very powerful statement that you can only really make if you're talking about having an end to end role over, or influence -- >> Like we commented, that's a good point. Like we commented that this end to end architecture is going to be fundamental. If you read the tea leaves and look at other things happening, like at Mobile World Congress. Intel I think is a bellwether on this with 5G. Cause they have to essentially create this overlay for connectivity as well as network transformation to do autonomous vehicles. To do smart cities. To smart homes. All these new technologies. It's an end to end IPR (mumbles). It's connected devices. So they're super smart to have this connected data theme which I think's relevant. But the other one, Ron Corbusier's talked about this evolution. And I find some of these, and I want to get your reaction to this statement. So Ron was kind of like, "oh it's an evolution. "We've seen this movie before." Okay great. But when you talk to Marta Feturichie, who was a customer from Royal Phillips. >> Peter: Great interview. >> She's head of CRM. Now she's doing some other stuff. So okay. What does CRM mean? So if you think evolution. What the customers are doing. Time Warner and Royal. It's interesting. Certain things are becoming critical infrastructure and other things are becoming more dynamic and fluid. So if you believe in evolution, these are layers of innovation. So stuff can be hardened as critical infrastructure, say like email marketing. So I think that what's happening here is you start to see some hardening of some critical infrastructure, aka marketing technology. MarTech (mumbles). Maybe some consolidation. AdTech kind of comes together. Certain things are going to be hardened and platformized. >> Let's take the word hardened and change it cause I know what you mean. Let's say it's codified. Now why is that, why is that little distinction a little bit interesting is because the more codified it gets, the more you can put software on it. The more you can put software on it the more you can automate it. And now we're introducing this whole notion of the adaptive intelligence. Where as we start to see marketing practices and processes become increasingly codified. What works, what doesn't work? What should we do more of? What should we do less of? Where should we be spending out time and innovating? Versus where should we just be doing it because it's a road activity at this point in time. That's where introducing this adaptive intelligence technology becomes really interesting. Because we can have the adaptive technology elements handle that deeply codified stuff where there really is not a lot of room for invention. And give the more interesting ongoing, customer engagement, customer experience -- >> Right on. And I think we should challenge Oracle post event and keep an eye on them on this adaptive intelligence app concept. Because that is something that they should ride to the sunset cause that is just a beautiful positioning. And if they can deliver the goods on that, they say they have it. We'll expand on that. That's going to give them the ability to churn out a ton of apps and leverage the data. But to the codified point you're making, here's my take. One of the things that I hear from customers in marketing all the time is a lot of stuff if oh yeah mobile first all that stuff. But still stuff's web presence based. So you got all these coded URL's. You got campaigns running ten ways from Sunday. DNS is not built to be adaptive and flexible. So it's okay to codify some of those systems. And say, "look we just don't tinker with these anymore." They're locked and loaded. You build on top of it. Codify it. And make that data the enabling technology from that. >> Peter: Without it become new inflexible (mumbles). >> Yeah I can't say, "Hey let's just tweak the hardened infrastructure "to run an AB test on a campaign." Or do something. No, no. You set this codified systems. You harden them. You put software on top of them. And you make it a subsystem that's hardened. And that's kind of what I mean. That's where the market will go because let's face it. The systems aren't that intelligent to handle a lot of marketing. >> Peter: They're still computers. >> They're still computers. People are running around just trying to fix some of this spaghetti code in marketing. And as the marketing department gets more IT power. Hey you own it. They're owning now. Be afraid what you wish for you might get it. So now they own the problem. So I think Oracle on the surfaces side has a huge opportunity to do what they did with Time Warner. Come into the market and saying, "Hey we got that for you." And that's what Hurd's kind of subtle message was on his keynote. Hey we're IT pros, but by the way you don't need to be in the IT business to do this. We fix your problems and roll out this -- >> We're going to talk to you in your language. And your language is modern customer experience. Which is one of the reasons why they've got to be more aggressive. And stating what they mean by that. >> And we have all the data in our data cloud. And all the first party data in our Oracle database. >> Right, right exactly right. >> That system of record becomes the crown jewel. Oracle has a lock spec on the table. You think it's a lock spec? >> Uh no. And that's exactly why I think they need to articulate where this is all going a little bit. They have to be a leader in defining what the future of marketing looks like so they can make it easier for people to move forward. >> Alright putting you on the spot. What do you think a modern marketing looks like? And organization. >> We talked about this and the answer that I gave, and I'll evolve it slightly, cause we had another great guest and I thought about it a little bit more is. A brand continuously and always delivers customer value. Always. And one of the -- >> Kind of cliche-ish. >> Kind of cliche-ish. >> Dig into it. >> But modern marketing is focused on delivering customer value. >> How? >> If they're deliver - well for example when the customer has a moment in a journey of uncertainty. Your brand is first is first to the table with that content that gets them excited. Gets them comfortable. >> Lot of progression. >> Makes them feel ready to move forward. That your, and well I'll make another point in a second. And I would even say that we might even think about a new definition of funnel. At the risk of bringing up that old artifact. Historical funnel went to the sale. Now we can actually start thinking about what's that funnel look like to customer success. >> Well there's two funnel dynamics that are changing. This is important, I think. This is going to be one of those moments where wow the Cube actually unpacked a major trend and I believe it to be true. The vertical funnel has collapsed. And now the success funnel is not >> Peter: It's not baked. >> Not big. It's decimated from this perspective of if the sale is the end game of the funnel, pop out that's over. Your point is kind of like venture funding for starter. That's when the start line begins. So here it's, okay we got a sale. But now we have instrumentation to take it all the way through the life cycle. >> And you know John. That's a great way of thinking about it. That many respects when you, when you introduce a customer to a new solution that has complex business implications that you are jointly together making an investment in something. And you both have to see it through. >> I mean sales guys put investment proposal on the -- >> That's exactly right. And so I think increasingly. So I would say modern marketing, modern marketing comes down to customer success. A prediction I'll make for next year is that this session is called, you know we'll call it the modern marketing modern customer experience show. But the theme is going to be customer success. >> Heres what I'm going to do. Here's what we're going to do this year Peter. We're going to, we will, based upon this conversation which we're riffing in real time as we analyze and summarize the event. We, I will make it my mission. And you're going to work with me on this as a directive. We're going to interview people, we're going to pick people that are truly modern marketing executives. >> Peter: That's great. >> We're going to define a simple algorithm that says this is what we think a modern marketing executive looks like. And we're going to interview them. We're going to do a story on them. And we're going to start to unpack because I think next year. We should be coming here saying, "we actually did our work on this." We figured out that a modern marketing organization and an executive behave and look this way. >> Right I think it's a great idea. So I'll give you one more thought. Cause I know you'll like this one too. Doug Kennedy. The partner. The conversation that we had. >> Very good. >> Talking about clearly a grade A executive. Seven weeks into the job. But that is going to be, you know for this whole thing to succeed he's got a lot of work in front of him. It's going to be very interesting to see how over the course of time this show and other Oracle shows evolve. >> I have a lot of partner experience. You do too. He's got a zillion years under his belt. He's a pro. He did not have any deer in the headlights look for seven weeks on the job. He's been there. He's done that. He knows the industry. He's seen the cycles of change. He's ridden waves of innovation up and down. And I think Oracle has a huge opportunity with his new program. And that is Oracle knows how to make money. Okay Oracle knows how to price things. They know how to execute on the sales side and go to market. And partners relationships are grounded in trust. And profitability. I would say profitability first and trust second. And it's kind of a virtuous circle. >> But John they've got to start getting grown in customer experience right? >> John: Yeah, yep. >> And that's not, it's doable but it's going to be a challenge. >> Well we talk about swim lanes with his interview, and I thought that was interesting. If you look at a center for instance, Deloy, PWC and all the different players. They're picking their swim lanes where their core competency is. And that's what he was basically saying. They're going to look for core competency. Now I think they're not there yet. The major SI's and potential partners. So he's going to have to put the spec out and put the bar there and say this is what we got to do. But you got to make the channel serve the customer. It has to be profitable. And it has to be relevant. And the only dangerous strategy I would say is the co-selling thing is always dicey. >> Especially if one has customer experience as a primary. >> It requires equilibrium in the ecosystem. >> You got it, you got it. >> It isn't there. >> And also it's a multi-partner go to market. It's not just one or two now. >> So he's going to have to really spread the love at the same time have hardened rules. Stick to his knitting on that one. Okay Peter final word. What do you, bottom line the show. Encapsulate the show into a bumper sticker. >> Well we heard Amazon released today. Google released today. Beat their numbers. Two companies that are trying to build an ecosystem from their core of the cloud. And the question is. Is Oracle who has customers with applications and with that first person data. Are they going to be able to cloudify, sorry for using that word, but are they going to be able to gain that trust that this new operating model they're really committed to for the future. Before Amazon and Google can create applications to their platform. Because Oracle has the end to end advantage right now. And in the world where digital's important. Speed's important. The fidelity of the data's important. The customer experience is important. That end to end has a window of opportunity. >> And I would also add two other companies reported, Microsoft and Intel and missed. So you have Amazon and Google. New guard, newer guard. Old guard Intel, Microsoft. Oracle is considered old guard even though they have some modernization going on from CX and the cloud. But Oracle is cloud a hundred percent in the cloud. Their SAP, for instance, is going multi-class. So the wild card in all this is, if the multi-cloud game evolves. >> Think end to end. End to end. Because that has advantages. When you're talking data, one of the things that Jack Brookwood said. He said, "you know why we can hit that 150 millisecond target?" >> Cause you don't have to move the data around. >> Cause sometimes we don't have to move the data around. >> This can be very interesting. And this going to be fun to watch and participate in. Of course the Cube will covering Oracle, well we'll be there again this year. We don't have the exacts specifics on that, but certainly if your interested in checking us out. Were siliconangle.com. Peter's research is at wikibon.com as well as SiliconANGLE on the front page. SiliconAngle.tv has all the videos. And well will be documenting and following the modern marketing experience with people and companies. And documenting that on the Cube and SiliconANGLE. So that's a wrap from day two at Oracle Modern CX. Thanks for watching. (electronic music)