>> From theCUBE Studios in Palo Alto in Boston, bringing you data-driven insights from theCUBE and ETR. This is Breaking Analysis with Dave Vellante. >> OpenAI The company, and ChatGPT have taken the world by storm. Microsoft reportedly is investing an additional 10 billion dollars into the company. But in our view, while the hype around ChatGPT is justified, we don't believe OpenAI will lock up the market with its first mover advantage. Rather, we believe that success in this market will be directly proportional to the quality and quantity of data that a technology company has at its disposal, and the compute power that it could deploy to run its system. Hello and welcome to this week's Wikibon CUBE insights, powered by ETR. In this Breaking Analysis, we unpack the excitement around ChatGPT, and debate the premise that the company's early entry into the space may not confer winner take all advantage to OpenAI. And to do so, we welcome CUBE collaborator, alum, Sarbjeet Johal, (chuckles) and John Furrier, co-host of the Cube. Great to see you Sarbjeet, John. Really appreciate you guys coming to the program. >> Great to be on. >> Okay, so what is ChatGPT? Well, actually we asked ChatGPT, what is ChatGPT? So here's what it said. ChatGPT is a state-of-the-art language model developed by OpenAI that can generate human-like text. It could be fine tuned for a variety of language tasks, such as conversation, summarization, and language translation. So I asked it, give it to me in 50 words or less. How did it do? Anything to add? >> Yeah, think it did good. It's large language model, like previous models, but it started applying the transformers sort of mechanism to focus on what prompt you have given it to itself. And then also the what answer it gave you in the first, sort of, one sentence or two sentences, and then introspect on itself, like what I have already said to you. And so just work on that. So it it's self sort of focus if you will. It does, the transformers help the large language models to do that. >> So to your point, it's a large language model, and GPT stands for generative pre-trained transformer. >> And if you put the definition back up there again, if you put it back up on the screen, let's see it back up. Okay, it actually missed the large, word large. So one of the problems with ChatGPT, it's not always accurate. It's actually a large language model, and it says state of the art language model. And if you look at Google, Google has dominated AI for many times and they're well known as being the best at this. And apparently Google has their own large language model, LLM, in play and have been holding it back to release because of backlash on the accuracy. Like just in that example you showed is a great point. They got almost right, but they missed the key word. >> You know what's funny about that John, is I had previously asked it in my prompt to give me it in less than a hundred words, and it was too long, I said I was too long for Breaking Analysis, and there it went into the fact that it's a large language model. So it largely, it gave me a really different answer the, for both times. So, but it's still pretty amazing for those of you who haven't played with it yet. And one of the best examples that I saw was Ben Charrington from This Week In ML AI podcast. And I stumbled on this thanks to Brian Gracely, who was listening to one of his Cloudcasts. Basically what Ben did is he took, he prompted ChatGPT to interview ChatGPT, and he simply gave the system the prompts, and then he ran the questions and answers into this avatar builder and sped it up 2X so it didn't sound like a machine. And voila, it was amazing. So John is ChatGPT going to take over as a cube host? >> Well, I was thinking, we get the questions in advance sometimes from PR people. We should actually just plug it in ChatGPT, add it to our notes, and saying, "Is this good enough for you? Let's ask the real question." So I think, you know, I think there's a lot of heavy lifting that gets done. I think the ChatGPT is a phenomenal revolution. I think it highlights the use case. Like that example we showed earlier. It gets most of it right. So it's directionally correct and it feels like it's an answer, but it's not a hundred percent accurate. And I think that's where people are seeing value in it. Writing marketing, copy, brainstorming, guest list, gift list for somebody. Write me some lyrics to a song. Give me a thesis about healthcare policy in the United States. It'll do a bang up job, and then you got to go in and you can massage it. So we're going to do three quarters of the work. That's why plagiarism and schools are kind of freaking out. And that's why Microsoft put 10 billion in, because why wouldn't this be a feature of Word, or the OS to help it do stuff on behalf of the user. So linguistically it's a beautiful thing. You can input a string and get a good answer. It's not a search result. >> And we're going to get your take on on Microsoft and, but it kind of levels the playing- but ChatGPT writes better than I do, Sarbjeet, and I know you have some good examples too. You mentioned the Reed Hastings example. >> Yeah, I was listening to Reed Hastings fireside chat with ChatGPT, and the answers were coming as sort of voice, in the voice format. And it was amazing what, he was having very sort of philosophy kind of talk with the ChatGPT, the longer sentences, like he was going on, like, just like we are talking, he was talking for like almost two minutes and then ChatGPT was answering. It was not one sentence question, and then a lot of answers from ChatGPT and yeah, you're right. I, this is our ability. I've been thinking deep about this since yesterday, we talked about, like, we want to do this segment. The data is fed into the data model. It can be the current data as well, but I think that, like, models like ChatGPT, other companies will have those too. They can, they're democratizing the intelligence, but they're not creating intelligence yet, definitely yet I can say that. They will give you all the finite answers. Like, okay, how do you do this for loop in Java, versus, you know, C sharp, and as a programmer you can do that, in, but they can't tell you that, how to write a new algorithm or write a new search algorithm for you. They cannot create a secretive code for you to- >> Not yet. >> Have competitive advantage. >> Not yet, not yet. >> but you- >> Can Google do that today? >> No one really can. The reasoning side of the data is, we talked about at our Supercloud event, with Zhamak Dehghani who's was CEO of, now of Nextdata. This next wave of data intelligence is going to come from entrepreneurs that are probably cross discipline, computer science and some other discipline. But they're going to be new things, for example, data, metadata, and data. It's hard to do reasoning like a human being, so that needs more data to train itself. So I think the first gen of this training module for the large language model they have is a corpus of text. Lot of that's why blog posts are, but the facts are wrong and sometimes out of context, because that contextual reasoning takes time, it takes intelligence. So machines need to become intelligent, and so therefore they need to be trained. So you're going to start to see, I think, a lot of acceleration on training the data sets. And again, it's only as good as the data you can get. And again, proprietary data sets will be a huge winner. Anyone who's got a large corpus of content, proprietary content like theCUBE or SiliconANGLE as a publisher will benefit from this. Large FinTech companies, anyone with large proprietary data will probably be a big winner on this generative AI wave, because it just, it will eat that up, and turn that back into something better. So I think there's going to be a lot of interesting things to look at here. And certainly productivity's going to be off the charts for vanilla and the internet is going to get swarmed with vanilla content. So if you're in the content business, and you're an original content producer of any kind, you're going to be not vanilla, so you're going to be better. So I think there's so much at play Dave (indistinct). >> I think the playing field has been risen, so we- >> Risen and leveled? >> Yeah, and leveled to certain extent. So it's now like that few people as consumers, as consumers of AI, we will have a advantage and others cannot have that advantage. So it will be democratized. That's, I'm sure about that. But if you take the example of calculator, when the calculator came in, and a lot of people are, "Oh, people can't do math anymore because calculator is there." right? So it's a similar sort of moment, just like a calculator for the next level. But, again- >> I see it more like open source, Sarbjeet, because like if you think about what ChatGPT's doing, you do a query and it comes from somewhere the value of a post from ChatGPT is just a reuse of AI. The original content accent will be come from a human. So if I lay out a paragraph from ChatGPT, did some heavy lifting on some facts, I check the facts, save me about maybe- >> Yeah, it's productive. >> An hour writing, and then I write a killer two, three sentences of, like, sharp original thinking or critical analysis. I then took that body of work, open source content, and then laid something on top of it. >> And Sarbjeet's example is a good one, because like if the calculator kids don't do math as well anymore, the slide rule, remember we had slide rules as kids, remember we first started using Waze, you know, we were this minority and you had an advantage over other drivers. Now Waze is like, you know, social traffic, you know, navigation, everybody had, you know- >> All the back roads are crowded. >> They're car crowded. (group laughs) Exactly. All right, let's, let's move on. What about this notion that futurist Ray Amara put forth and really Amara's Law that we're showing here, it's, the law is we, you know, "We tend to overestimate the effect of technology in the short run and underestimate it in the long run." Is that the case, do you think, with ChatGPT? What do you think Sarbjeet? >> I think that's true actually. There's a lot of, >> We don't debate this. >> There's a lot of awe, like when people see the results from ChatGPT, they say what, what the heck? Like, it can do this? But then if you use it more and more and more, and I ask the set of similar question, not the same question, and it gives you like same answer. It's like reading from the same bucket of text in, the interior read (indistinct) where the ChatGPT, you will see that in some couple of segments. It's very, it sounds so boring that the ChatGPT is coming out the same two sentences every time. So it is kind of good, but it's not as good as people think it is right now. But we will have, go through this, you know, hype sort of cycle and get realistic with it. And then in the long term, I think it's a great thing in the short term, it's not something which will (indistinct) >> What's your counter point? You're saying it's not. >> I, no I think the question was, it's hyped up in the short term and not it's underestimated long term. That's what I think what he said, quote. >> Yes, yeah. That's what he said. >> Okay, I think that's wrong with this, because this is a unique, ChatGPT is a unique kind of impact and it's very generational. People have been comparing it, I have been comparing to the internet, like the web, web browser Mosaic and Netscape, right, Navigator. I mean, I clearly still remember the days seeing Navigator for the first time, wow. And there weren't not many sites you could go to, everyone typed in, you know, cars.com, you know. >> That (indistinct) wasn't that overestimated, the overhyped at the beginning and underestimated. >> No, it was, it was underestimated long run, people thought. >> But that Amara's law. >> That's what is. >> No, they said overestimated? >> Overestimated near term underestimated- overhyped near term, underestimated long term. I got, right I mean? >> Well, I, yeah okay, so I would then agree, okay then- >> We were off the charts about the internet in the early days, and it actually exceeded our expectations. >> Well there were people who were, like, poo-pooing it early on. So when the browser came out, people were like, "Oh, the web's a toy for kids." I mean, in 1995 the web was a joke, right? So '96, you had online populations growing, so you had structural changes going on around the browser, internet population. And then that replaced other things, direct mail, other business activities that were once analog then went to the web, kind of read only as you, as we always talk about. So I think that's a moment where the hype long term, the smart money, and the smart industry experts all get the long term. And in this case, there's more poo-pooing in the short term. "Ah, it's not a big deal, it's just AI." I've heard many people poo-pooing ChatGPT, and a lot of smart people saying, "No this is next gen, this is different and it's only going to get better." So I think people are estimating a big long game on this one. >> So you're saying it's bifurcated. There's those who say- >> Yes. >> Okay, all right, let's get to the heart of the premise, and possibly the debate for today's episode. Will OpenAI's early entry into the market confer sustainable competitive advantage for the company. And if you look at the history of tech, the technology industry, it's kind of littered with first mover failures. Altair, IBM, Tandy, Commodore, they and Apple even, they were really early in the PC game. They took a backseat to Dell who came in the scene years later with a better business model. Netscape, you were just talking about, was all the rage in Silicon Valley, with the first browser, drove up all the housing prices out here. AltaVista was the first search engine to really, you know, index full text. >> Owned by Dell, I mean DEC. >> Owned by Digital. >> Yeah, Digital Equipment >> Compaq bought it. And of course as an aside, Digital, they wanted to showcase their hardware, right? Their super computer stuff. And then so Friendster and MySpace, they came before Facebook. The iPhone certainly wasn't the first mobile device. So lots of failed examples, but there are some recent successes like AWS and cloud. >> You could say smartphone. So I mean. >> Well I know, and you can, we can parse this so we'll debate it. Now Twitter, you could argue, had first mover advantage. You kind of gave me that one John. Bitcoin and crypto clearly had first mover advantage, and sustaining that. Guys, will OpenAI make it to the list on the right with ChatGPT, what do you think? >> I think categorically as a company, it probably won't, but as a category, I think what they're doing will, so OpenAI as a company, they get funding, there's power dynamics involved. Microsoft put a billion dollars in early on, then they just pony it up. Now they're reporting 10 billion more. So, like, if the browsers, Microsoft had competitive advantage over Netscape, and used monopoly power, and convicted by the Department of Justice for killing Netscape with their monopoly, Netscape should have had won that battle, but Microsoft killed it. In this case, Microsoft's not killing it, they're buying into it. So I think the embrace extend Microsoft power here makes OpenAI vulnerable for that one vendor solution. So the AI as a company might not make the list, but the category of what this is, large language model AI, is probably will be on the right hand side. >> Okay, we're going to come back to the government intervention and maybe do some comparisons, but what are your thoughts on this premise here? That, it will basically set- put forth the premise that it, that ChatGPT, its early entry into the market will not confer competitive advantage to >> For OpenAI. >> To Open- Yeah, do you agree with that? >> I agree with that actually. It, because Google has been at it, and they have been holding back, as John said because of the scrutiny from the Fed, right, so- >> And privacy too. >> And the privacy and the accuracy as well. But I think Sam Altman and the company on those guys, right? They have put this in a hasty way out there, you know, because it makes mistakes, and there are a lot of questions around the, sort of, where the content is coming from. You saw that as your example, it just stole the content, and without your permission, you know? >> Yeah. So as quick this aside- >> And it codes on people's behalf and the, those codes are wrong. So there's a lot of, sort of, false information it's putting out there. So it's a very vulnerable thing to do what Sam Altman- >> So even though it'll get better, others will compete. >> So look, just side note, a term which Reid Hoffman used a little bit. Like he said, it's experimental launch, like, you know, it's- >> It's pretty damn good. >> It is clever because according to Sam- >> It's more than clever. It's good. >> It's awesome, if you haven't used it. I mean you write- you read what it writes and you go, "This thing writes so well, it writes so much better than you." >> The human emotion drives that too. I think that's a big thing. But- >> I Want to add one more- >> Make your last point. >> Last one. Okay. So, but he's still holding back. He's conducting quite a few interviews. If you want to get the gist of it, there's an interview with StrictlyVC interview from yesterday with Sam Altman. Listen to that one it's an eye opening what they want- where they want to take it. But my last one I want to make it on this point is that Satya Nadella yesterday did an interview with Wall Street Journal. I think he was doing- >> You were not impressed. >> I was not impressed because he was pushing it too much. So Sam Altman's holding back so there's less backlash. >> Got 10 billion reasons to push. >> I think he's almost- >> Microsoft just laid off 10000 people. Hey ChatGPT, find me a job. You know like. (group laughs) >> He's overselling it to an extent that I think it will backfire on Microsoft. And he's over promising a lot of stuff right now, I think. I don't know why he's very jittery about all these things. And he did the same thing during Ignite as well. So he said, "Oh, this AI will write code for you and this and that." Like you called him out- >> The hyperbole- >> During your- >> from Satya Nadella, he's got a lot of hyperbole. (group talks over each other) >> All right, Let's, go ahead. >> Well, can I weigh in on the whole- >> Yeah, sure. >> Microsoft thing on whether OpenAI, here's the take on this. I think it's more like the browser moment to me, because I could relate to that experience with ChatG, personally, emotionally, when I saw that, and I remember vividly- >> You mean that aha moment (indistinct). >> Like this is obviously the future. Anything else in the old world is dead, website's going to be everywhere. It was just instant dot connection for me. And a lot of other smart people who saw this. Lot of people by the way, didn't see it. Someone said the web's a toy. At the company I was worked for at the time, Hewlett Packard, they like, they could have been in, they had invented HTML, and so like all this stuff was, like, they just passed, the web was just being passed over. But at that time, the browser got better, more websites came on board. So the structural advantage there was online web usage was growing, online user population. So that was growing exponentially with the rise of the Netscape browser. So OpenAI could stay on the right side of your list as durable, if they leverage the category that they're creating, can get the scale. And if they can get the scale, just like Twitter, that failed so many times that they still hung around. So it was a product that was always successful, right? So I mean, it should have- >> You're right, it was terrible, we kept coming back. >> The fail whale, but it still grew. So OpenAI has that moment. They could do it if Microsoft doesn't meddle too much with too much power as a vendor. They could be the Netscape Navigator, without the anti-competitive behavior of somebody else. So to me, they have the pole position. So they have an opportunity. So if not, if they don't execute, then there's opportunity. There's not a lot of barriers to entry, vis-a-vis say the CapEx of say a cloud company like AWS. You can't replicate that, Many have tried, but I think you can replicate OpenAI. >> And we're going to talk about that. Okay, so real quick, I want to bring in some ETR data. This isn't an ETR heavy segment, only because this so new, you know, they haven't coverage yet, but they do cover AI. So basically what we're seeing here is a slide on the vertical axis's net score, which is a measure of spending momentum, and in the horizontal axis's is presence in the dataset. Think of it as, like, market presence. And in the insert right there, you can see how the dots are plotted, the two columns. And so, but the key point here that we want to make, there's a bunch of companies on the left, is he like, you know, DataRobot and C3 AI and some others, but the big whales, Google, AWS, Microsoft, are really dominant in this market. So that's really the key takeaway that, can we- >> I notice IBM is way low. >> Yeah, IBM's low, and actually bring that back up and you, but then you see Oracle who actually is injecting. So I guess that's the other point is, you're not necessarily going to go buy AI, and you know, build your own AI, you're going to, it's going to be there and, it, Salesforce is going to embed it into its platform, the SaaS companies, and you're going to purchase AI. You're not necessarily going to build it. But some companies obviously are. >> I mean to quote IBM's general manager Rob Thomas, "You can't have AI with IA." information architecture and David Flynn- >> You can't Have AI without IA >> without, you can't have AI without IA. You can't have, if you have an Information Architecture, you then can power AI. Yesterday David Flynn, with Hammersmith, was on our Supercloud. He was pointing out that the relationship of storage, where you store things, also impacts the data and stressablity, and Zhamak from Nextdata, she was pointing out that same thing. So the data problem factors into all this too, Dave. >> So you got the big cloud and internet giants, they're all poised to go after this opportunity. Microsoft is investing up to 10 billion. Google's code red, which was, you know, the headline in the New York Times. Of course Apple is there and several alternatives in the market today. Guys like Chinchilla, Bloom, and there's a company Jasper and several others, and then Lena Khan looms large and the government's around the world, EU, US, China, all taking notice before the market really is coalesced around a single player. You know, John, you mentioned Netscape, they kind of really, the US government was way late to that game. It was kind of game over. And Netscape, I remember Barksdale was like, "Eh, we're going to be selling software in the enterprise anyway." and then, pshew, the company just dissipated. So, but it looks like the US government, especially with Lena Khan, they're changing the definition of antitrust and what the cause is to go after people, and they're really much more aggressive. It's only what, two years ago that (indistinct). >> Yeah, the problem I have with the federal oversight is this, they're always like late to the game, and they're slow to catch up. So in other words, they're working on stuff that should have been solved a year and a half, two years ago around some of the social networks hiding behind some of the rules around open web back in the days, and I think- >> But they're like 15 years late to that. >> Yeah, and now they got this new thing on top of it. So like, I just worry about them getting their fingers. >> But there's only two years, you know, OpenAI. >> No, but the thing (indistinct). >> No, they're still fighting other battles. But the problem with government is that they're going to label Big Tech as like a evil thing like Pharma, it's like smoke- >> You know Lena Khan wants to kill Big Tech, there's no question. >> So I think Big Tech is getting a very seriously bad rap. And I think anything that the government does that shades darkness on tech, is politically motivated in most cases. You can almost look at everything, and my 80 20 rule is in play here. 80% of the government activity around tech is bullshit, it's politically motivated, and the 20% is probably relevant, but off the mark and not organized. >> Well market forces have always been the determining factor of success. The governments, you know, have been pretty much failed. I mean you look at IBM's antitrust, that, what did that do? The market ultimately beat them. You look at Microsoft back in the day, right? Windows 95 was peaking, the government came in. But you know, like you said, they missed the web, right, and >> so they were hanging on- >> There's nobody in government >> to Windows. >> that actually knows- >> And so, you, I think you're right. It's market forces that are going to determine this. But Sarbjeet, what do you make of Microsoft's big bet here, you weren't impressed with with Nadella. How do you think, where are they going to apply it? Is this going to be a Hail Mary for Bing, or is it going to be applied elsewhere? What do you think. >> They are saying that they will, sort of, weave this into their products, office products, productivity and also to write code as well, developer productivity as well. That's a big play for them. But coming back to your antitrust sort of comments, right? I believe the, your comment was like, oh, fed was late 10 years or 15 years earlier, but now they're two years. But things are moving very fast now as compared to they used to move. >> So two years is like 10 Years. >> Yeah, two years is like 10 years. Just want to make that point. (Dave laughs) This thing is going like wildfire. Any new tech which comes in that I think they're going against distribution channels. Lina Khan has commented time and again that the marketplace model is that she wants to have some grip on. Cloud marketplaces are a kind of monopolistic kind of way. >> I don't, I don't see this, I don't see a Chat AI. >> You told me it's not Bing, you had an interesting comment. >> No, no. First of all, this is great from Microsoft. If you're Microsoft- >> Why? >> Because Microsoft doesn't have the AI chops that Google has, right? Google is got so much core competency on how they run their search, how they run their backends, their cloud, even though they don't get a lot of cloud market share in the enterprise, they got a kick ass cloud cause they needed one. >> Totally. >> They've invented SRE. I mean Google's development and engineering chops are off the scales, right? Amazon's got some good chops, but Google's got like 10 times more chops than AWS in my opinion. Cloud's a whole different story. Microsoft gets AI, they get a playbook, they get a product they can render into, the not only Bing, productivity software, helping people write papers, PowerPoint, also don't forget the cloud AI can super help. We had this conversation on our Supercloud event, where AI's going to do a lot of the heavy lifting around understanding observability and managing service meshes, to managing microservices, to turning on and off applications, and or maybe writing code in real time. So there's a plethora of use cases for Microsoft to deploy this. combined with their R and D budgets, they can then turbocharge more research, build on it. So I think this gives them a car in the game, Google may have pole position with AI, but this puts Microsoft right in the game, and they already have a lot of stuff going on. But this just, I mean everything gets lifted up. Security, cloud, productivity suite, everything. >> What's under the hood at Google, and why aren't they talking about it? I mean they got to be freaked out about this. No? Or do they have kind of a magic bullet? >> I think they have the, they have the chops definitely. Magic bullet, I don't know where they are, as compared to the ChatGPT 3 or 4 models. Like they, but if you look at the online sort of activity and the videos put out there from Google folks, Google technology folks, that's account you should look at if you are looking there, they have put all these distinctions what ChatGPT 3 has used, they have been talking about for a while as well. So it's not like it's a secret thing that you cannot replicate. As you said earlier, like in the beginning of this segment, that anybody who has more data and the capacity to process that data, which Google has both, I think they will win this. >> Obviously living in Palo Alto where the Google founders are, and Google's headquarters next town over we have- >> We're so close to them. We have inside information on some of the thinking and that hasn't been reported by any outlet yet. And that is, is that, from what I'm hearing from my sources, is Google has it, they don't want to release it for many reasons. One is it might screw up their search monopoly, one, two, they're worried about the accuracy, 'cause Google will get sued. 'Cause a lot of people are jamming on this ChatGPT as, "Oh it does everything for me." when it's clearly not a hundred percent accurate all the time. >> So Lina Kahn is looming, and so Google's like be careful. >> Yeah so Google's just like, this is the third, could be a third rail. >> But the first thing you said is a concern. >> Well no. >> The disruptive (indistinct) >> What they will do is do a Waymo kind of thing, where they spin out a separate company. >> They're doing that. >> The discussions happening, they're going to spin out the separate company and put it over there, and saying, "This is AI, got search over there, don't touch that search, 'cause that's where all the revenue is." (chuckles) >> So, okay, so that's how they deal with the Clay Christensen dilemma. What's the business model here? I mean it's not advertising, right? Is it to charge you for a query? What, how do you make money at this? >> It's a good question, I mean my thinking is, first of all, it's cool to type stuff in and see a paper get written, or write a blog post, or gimme a marketing slogan for this or that or write some code. I think the API side of the business will be critical. And I think Howie Xu, I know you're going to reference some of his comments yesterday on Supercloud, I think this brings a whole 'nother user interface into technology consumption. I think the business model, not yet clear, but it will probably be some sort of either API and developer environment or just a straight up free consumer product, with some sort of freemium backend thing for business. >> And he was saying too, it's natural language is the way in which you're going to interact with these systems. >> I think it's APIs, it's APIs, APIs, APIs, because these people who are cooking up these models, and it takes a lot of compute power to train these and to, for inference as well. Somebody did the analysis on the how many cents a Google search costs to Google, and how many cents the ChatGPT query costs. It's, you know, 100x or something on that. You can take a look at that. >> A 100x on which side? >> You're saying two orders of magnitude more expensive for ChatGPT >> Much more, yeah. >> Than for Google. >> It's very expensive. >> So Google's got the data, they got the infrastructure and they got, you're saying they got the cost (indistinct) >> No actually it's a simple query as well, but they are trying to put together the answers, and they're going through a lot more data versus index data already, you know. >> Let me clarify, you're saying that Google's version of ChatGPT is more efficient? >> No, I'm, I'm saying Google search results. >> Ah, search results. >> What are used to today, but cheaper. >> But that, does that, is that going to confer advantage to Google's large language (indistinct)? >> It will, because there were deep science (indistinct). >> Google, I don't think Google search is doing a large language model on their search, it's keyword search. You know, what's the weather in Santa Cruz? Or how, what's the weather going to be? Or you know, how do I find this? Now they have done a smart job of doing some things with those queries, auto complete, re direct navigation. But it's, it's not entity. It's not like, "Hey, what's Dave Vellante thinking this week in Breaking Analysis?" ChatGPT might get that, because it'll get your Breaking Analysis, it'll synthesize it. There'll be some, maybe some clips. It'll be like, you know, I mean. >> Well I got to tell you, I asked ChatGPT to, like, I said, I'm going to enter a transcript of a discussion I had with Nir Zuk, the CTO of Palo Alto Networks, And I want you to write a 750 word blog. I never input the transcript. It wrote a 750 word blog. It attributed quotes to him, and it just pulled a bunch of stuff that, and said, okay, here it is. It talked about Supercloud, it defined Supercloud. >> It's made, it makes you- >> Wow, But it was a big lie. It was fraudulent, but still, blew me away. >> Again, vanilla content and non accurate content. So we are going to see a surge of misinformation on steroids, but I call it the vanilla content. Wow, that's just so boring, (indistinct). >> There's so many dangers. >> Make your point, cause we got to, almost out of time. >> Okay, so the consumption, like how do you consume this thing. As humans, we are consuming it and we are, like, getting a nicely, like, surprisingly shocked, you know, wow, that's cool. It's going to increase productivity and all that stuff, right? And on the danger side as well, the bad actors can take hold of it and create fake content and we have the fake sort of intelligence, if you go out there. So that's one thing. The second thing is, we are as humans are consuming this as language. Like we read that, we listen to it, whatever format we consume that is, but the ultimate usage of that will be when the machines can take that output from likes of ChatGPT, and do actions based on that. The robots can work, the robot can paint your house, we were talking about, right? Right now we can't do that. >> Data apps. >> So the data has to be ingested by the machines. It has to be digestible by the machines. And the machines cannot digest unorganized data right now, we will get better on the ingestion side as well. So we are getting better. >> Data, reasoning, insights, and action. >> I like that mall, paint my house. >> So, okay- >> By the way, that means drones that'll come in. Spray painting your house. >> Hey, it wasn't too long ago that robots couldn't climb stairs, as I like to point out. Okay, and of course it's no surprise the venture capitalists are lining up to eat at the trough, as I'd like to say. Let's hear, you'd referenced this earlier, John, let's hear what AI expert Howie Xu said at the Supercloud event, about what it takes to clone ChatGPT. Please, play the clip. >> So one of the VCs actually asked me the other day, right? "Hey, how much money do I need to spend, invest to get a, you know, another shot to the openAI sort of the level." You know, I did a (indistinct) >> Line up. >> A hundred million dollar is the order of magnitude that I came up with, right? You know, not a billion, not 10 million, right? So a hundred- >> Guys a hundred million dollars, that's an astoundingly low figure. What do you make of it? >> I was in an interview with, I was interviewing, I think he said hundred million or so, but in the hundreds of millions, not a billion right? >> You were trying to get him up, you were like "Hundreds of millions." >> Well I think, I- >> He's like, eh, not 10, not a billion. >> Well first of all, Howie Xu's an expert machine learning. He's at Zscaler, he's a machine learning AI guy. But he comes from VMware, he's got his technology pedigrees really off the chart. Great friend of theCUBE and kind of like a CUBE analyst for us. And he's smart. He's right. I think the barriers to entry from a dollar standpoint are lower than say the CapEx required to compete with AWS. Clearly, the CapEx spending to build all the tech for the run a cloud. >> And you don't need a huge sales force. >> And in some case apps too, it's the same thing. But I think it's not that hard. >> But am I right about that? You don't need a huge sales force either. It's, what, you know >> If the product's good, it will sell, this is a new era. The better mouse trap will win. This is the new economics in software, right? So- >> Because you look at the amount of money Lacework, and Snyk, Snowflake, Databrooks. Look at the amount of money they've raised. I mean it's like a billion dollars before they get to IPO or more. 'Cause they need promotion, they need go to market. You don't need (indistinct) >> OpenAI's been working on this for multiple five years plus it's, hasn't, wasn't born yesterday. Took a lot of years to get going. And Sam is depositioning all the success, because he's trying to manage expectations, To your point Sarbjeet, earlier. It's like, yeah, he's trying to "Whoa, whoa, settle down everybody, (Dave laughs) it's not that great." because he doesn't want to fall into that, you know, hero and then get taken down, so. >> It may take a 100 million or 150 or 200 million to train the model. But to, for the inference to, yeah to for the inference machine, It will take a lot more, I believe. >> Give it, so imagine, >> Because- >> Go ahead, sorry. >> Go ahead. But because it consumes a lot more compute cycles and it's certain level of storage and everything, right, which they already have. So I think to compute is different. To frame the model is a different cost. But to run the business is different, because I think 100 million can go into just fighting the Fed. >> Well there's a flywheel too. >> Oh that's (indistinct) >> (indistinct) >> We are running the business, right? >> It's an interesting number, but it's also kind of, like, context to it. So here, a hundred million spend it, you get there, but you got to factor in the fact that the ways companies win these days is critical mass scale, hitting a flywheel. If they can keep that flywheel of the value that they got going on and get better, you can almost imagine a marketplace where, hey, we have proprietary data, we're SiliconANGLE in theCUBE. We have proprietary content, CUBE videos, transcripts. Well wouldn't it be great if someone in a marketplace could sell a module for us, right? We buy that, Amazon's thing and things like that. So if they can get a marketplace going where you can apply to data sets that may be proprietary, you can start to see this become bigger. And so I think the key barriers to entry is going to be success. I'll give you an example, Reddit. Reddit is successful and it's hard to copy, not because of the software. >> They built the moat. >> Because you can, buy Reddit open source software and try To compete. >> They built the moat with their community. >> Their community, their scale, their user expectation. Twitter, we referenced earlier, that thing should have gone under the first two years, but there was such a great emotional product. People would tolerate the fail whale. And then, you know, well that was a whole 'nother thing. >> Then a plane landed in (John laughs) the Hudson and it was over. >> I think verticals, a lot of verticals will build applications using these models like for lawyers, for doctors, for scientists, for content creators, for- >> So you'll have many hundreds of millions of dollars investments that are going to be seeping out. If, all right, we got to wrap, if you had to put odds on it that that OpenAI is going to be the leader, maybe not a winner take all leader, but like you look at like Amazon and cloud, they're not winner take all, these aren't necessarily winner take all markets. It's not necessarily a zero sum game, but let's call it winner take most. What odds would you give that open AI 10 years from now will be in that position. >> If I'm 0 to 10 kind of thing? >> Yeah, it's like horse race, 3 to 1, 2 to 1, even money, 10 to 1, 50 to 1. >> Maybe 2 to 1, >> 2 to 1, that's pretty low odds. That's basically saying they're the favorite, they're the front runner. Would you agree with that? >> I'd say 4 to 1. >> Yeah, I was going to say I'm like a 5 to 1, 7 to 1 type of person, 'cause I'm a skeptic with, you know, there's so much competition, but- >> I think they're definitely the leader. I mean you got to say, I mean. >> Oh there's no question. There's no question about it. >> The question is can they execute? >> They're not Friendster, is what you're saying. >> They're not Friendster and they're more like Twitter and Reddit where they have momentum. If they can execute on the product side, and if they don't stumble on that, they will continue to have the lead. >> If they say stay neutral, as Sam is, has been saying, that, hey, Microsoft is one of our partners, if you look at their company model, how they have structured the company, then they're going to pay back to the investors, like Microsoft is the biggest one, up to certain, like by certain number of years, they're going to pay back from all the money they make, and after that, they're going to give the money back to the public, to the, I don't know who they give it to, like non-profit or something. (indistinct) >> Okay, the odds are dropping. (group talks over each other) That's a good point though >> Actually they might have done that to fend off the criticism of this. But it's really interesting to see the model they have adopted. >> The wildcard in all this, My last word on this is that, if there's a developer shift in how developers and data can come together again, we have conferences around the future of data, Supercloud and meshs versus, you know, how the data world, coding with data, how that evolves will also dictate, 'cause a wild card could be a shift in the landscape around how developers are using either machine learning or AI like techniques to code into their apps, so. >> That's fantastic insight. I can't thank you enough for your time, on the heels of Supercloud 2, really appreciate it. All right, thanks to John and Sarbjeet for the outstanding conversation today. Special thanks to the Palo Alto studio team. My goodness, Anderson, this great backdrop. You guys got it all out here, I'm jealous. And Noah, really appreciate it, Chuck, Andrew Frick and Cameron, Andrew Frick switching, Cameron on the video lake, great job. And Alex Myerson, he's on production, manages the podcast for us, Ken Schiffman as well. Kristen Martin and Cheryl Knight help get the word out on social media and our newsletters. Rob Hof is our editor-in-chief over at SiliconANGLE, does some great editing, thanks to all. Remember, all these episodes are available as podcasts. All you got to do is search Breaking Analysis podcast, wherever you listen. Publish each week on wikibon.com and siliconangle.com. Want to get in touch, email me directly, david.vellante@siliconangle.com or DM me at dvellante, or comment on our LinkedIn post. And by all means, check out etr.ai. They got really great survey data in the enterprise tech business. This is Dave Vellante for theCUBE Insights powered by ETR. Thanks for watching, We'll see you next time on Breaking Analysis. (electronic music)

(upbeat music) >> Announcer: From San Francisco, it's theCUBE. Covering Accenture Tech Vision 2020. Brought to you by Accenture. >> Hey, welcome back, everybody. Jeff Frick here with theCUBE. We're at the Accenture San Francisco Innovation Hub on the 33rd floor of the Sales Force Tower in downtown San Francisco. It's 2020, the year we know everything with the benefit of hindsight. And what better way to kick off the year than to have the Accenture Tech Vision reveal, which is happening later tonight, so we're really happy to have one of the authors who's really driving the whole thing. He's Michael Blitz, the managing director of the Accenture Tech Vision 2020, a very special edition. Michael, great to see you. >> Hey, thanks for having me. >> Absolutely, so you've been doing this for a while. I think we heard earlier, this thing's been going on for 20 years? >> It is. >> You've been involved for at least the last eight. >> Michael: I think a little bit more than that. >> More than that, so what's kind of the big theme before we get into some of the individual items? >> Yeah, so I mean, I think right now, what we're really talking about is that our real big theme is this: We the digital people. And it's that recognition that says that we've fundamentally changed. When you start looking at yourself and your lives, it's that you've gotten to a point where you're letting your cell phone track you. Your car knows where you are probably better than your spouse does. You're handing your key to Amazon and Walmart so they can deliver packages in your house. And more than that is that actually, we're trying to start to revolve our lives around this technology. I look at my own life, and we just sold our second car, specifically because we know that Uber and Lyft exist to fill that void. >> Right, well you don't have to look much further than phone numbers. How many people remember anybody's phone number anymore, right, 'cause you don't really have to. I think it's the 15th anniversary of Google Maps. >> Michael: Yep. >> This year, and to think of a world without Google Maps, without that kind of instant access to knowledge, is really hard to even fathom. But as you said, we're making trade-offs when we use all these services, and now, some of the costs of those things are being maybe more exposed? Maybe more cute or in your face? I don't know, what would you say? >> Yeah, I mean, I think what's happening now is that what we're realizing is that it's changed our relationship with companies. Is that suddenly we've actually brought them into our lives. And, on one hand, they're offering and have the ability to offer services that you could never really do before. But on the other hand is that, if I'm going to let somebody in my life, suddenly they don't have to just provide me value and this is useful, is that they actually, people are expecting them to retain their values, too. So, how they protect your data, what they're good for the community, for the environment, for society, whether it's sustainable or not. Is that suddenly, whereas people used to only care about what the product you're getting, now how it's built and how your company's being run is starting, it's just starting to become important, too. >> Right, well it's funny, 'cause you used to talk about kind of triple bottom line, shareholders, customers and your employees. And you talked about, really, this kind of fourth line, which is community and really being involved in the community. People care, suddenly you go to conferences where we spend a lot of time all the utensils are now compostable and the forks are compostable. And a lot of the individual packaging stuff is going away. So people do care. >> They do, and there's a fourth and a fifth. It says that your community cares, but your partners do, too. Is that you can't, I'm going to say, downgrade the idea that your B2B folks care is that suddenly, we're finding ourselves tied to these other companies, and not just in a supply chain, but from everything. And so, you're not in this alone in terms of how you're delivering these things. But now it's becoming a matter that says, Well, man, if my partners are going to get pummeled because they're not doing the right thing or they don't have that broad scope, that's going to reflect on me, too. And so, now you're suddenly in this interesting position where all of the things that we suspected were going to happen around digital connecting everybody is just starting to, and I think that's going to have a lot of positive effects. >> Yeah, so one of the things you talked about earlier today, in an earlier presentation was kind of the shift from kind of buyer and seller, seller and consumer, to provider and collaborator. Really kind of reflecting a very different kind of a relationship between the parties as opposed to this one-shot transactional relationship. >> No, and that's right, and it doesn't matter who you're talking about, is that, if you're hiring folks for skills that you're assuming that they're going to learn, that's going to be different in three years, in five years, you're essentially partnering with them in order to take all of you on a journey. When you start talking about governments, is that you're now partnering with regulators. You look at companies like Tesla, who are working on regulations for electric cars, they're working on regulations around battery technology. And you see that this go-it-alone approach isn't what you're doing. Rather, it's becoming much more holistic. >> Right, so we're in the innovation hub, and I think number five of the five is really about innovation today. >> Michael: It is. >> And you guys are driving innovation. And, rest in peace, Clayton Christensen passed away, Innovator's Dilemma, my all-time favorite book. But the thing I love about that book is that smart people making sound decisions based on business logic and taking care of existing customers will always miss discontinuous change. But you guys are really trying to help big companies be innovative. What are some of the things that they should be thinking about, besides, obviously, engaging with Mary and the team here at Innovation Hub? >> Yeah, no, and that's the really interesting thing is that when we talked about innovation, you know, five or even 10 years ago, you were talking about, just: How do I find a new product or a new service to bring to market? And now, that's the minimum stakes. Like, that's what everybody's doing. And I think what we're realizing as we're seeing tech become such a big part is that we all see how it's affecting the world. And a lot of times that things are good is that there's no reason why you wouldn't look at somebody like a Lyft or Uber and say that it's had a lot of positive effects. But from the same standpoint is that, you ask questions of: Is it good for public transit? It is good for city infrastructure? And those are hard questions to ask. And I think where we're really pushing now is that question that says: We've got an entire generation of not-tech companies, but every company that's about to get into this innovation game, and what we want them to do is to look at this not the way that the tech folks did, that says, here's one service or one technology, but rather, look at it holistically that says: How am I actually going to implement this, and what is the real effects that it's going to have on all of these different aspects? >> Right, Law of Unintended Consequences is always a good one. >> Michael: It is. >> And I remember hearing years ago of this concept of curb management. I'm like, Curb management, who ever thought of that? Well, drive up and down in Manhattan when they're delivering groceries or delivering Amazon packages and FedEx packages and UberEats and delivery dog food now. Where is that stuff being staged now that the warehouse has kind of shifted out into the public space? So, you never kind of really know where these things are going to end up. >> No, and I'm not saying that we're going to be able to predict all of it. I think, rather, it's that starting point that says that we're starting to see a big push that says that these things need to be factored and considered. And then, similarly, it's the, if you're working with them up-front, it becomes less of a fault, on a fight of whose fault it is at the end, and it becomes more of a collaboration that says, How much more can we do if we're working with our cities, if we're working with our employees, if we're working with our customers? >> Right, now another follow up, you guys've been talking about this for years, is every company is a tech company or a digital company, depending on how you want to spin that. But as you were talking about it earlier today, in doing so and in converting from products to service, and converting from an ongoing relationship to a one-time transaction, it's not only at that point of touch with a customer, but you've got to make a bunch of fundamental changes back in your own systems to support kind of this changing business model. >> Now, and that's right, and I think this is going to become the big challenge of the generation, is that we've gotten to a point where just using their existing models for how you interact with your customers or how you protect their data or who owns the data, all of these types of things, is that they were designed back when we were doing single applications, and they were loading up on your Windows PC. And where we're at now is that we're starting to ask questions that says, All right, in this new world, what do I have to fundamentally do differently? And sometimes that can be as simple as asking a question that says, you know, there's a consortium of pharma folks who have created a joint way for them to develop all of their search algorithms for new drugs. But they're using block chain, and so they're not actually sharing the data. So they do all the good things, but they're pushing that up. But fundamentally, that's a different way to think about it. You're now creating an entirely new infrastructure because what you're used to is just handing somebody the data, and what they do with the data afterwards is kind of their issue and not yours. And so now we're asking big, new questions to do it. >> Right, another big thing that keeps coming up over and over is trust. And again, we talked a little earlier. But I find this really ironic situation where people don't necessarily trust the companies in terms of the people running the companies and what they're going to do with their data, but they fundamentally trust the technology coming out of the gate and this expectation of: Of course it works, everything works on my mobile phone. But the two are related, but not equal. >> Michael: No, I mean, they're not, I mean, and it's really pushing this idea that says we've been looking at all these, I'm going to say scary headlines, of people not trusting companies for the last number of years, while at the same time, the adoption for the technology has been huge. So there's this dichotomy that's going on in people, where at one point, they like the tech. You know, I think the last stat I saw is that everybody spends up to six-and-a-half hours a day involved on the internet, in their technology. But from the same standpoint is that they worry about who's using it and how and what is going to be done. And I think where we're at is that interesting piece that says we're not worried about a tech lash. We don't think that people are going to stop using technology. Rather, we think it's really this tech clash that says they're not getting the value that they thought out of it, or they're seeing companies that may be using this technologies that don't share the same values that they do, and really, what we think this becomes, is the next opportunity for the next generations of service providers in order to fill that gap. >> Right, yeah, don't forget there was a Friendster and a MySpace before there was a Facebook. >> Yeah, there was. >> So, nothing lasts forever. So, last question before I let you go, it's a busy night. The first one was the I in experience, and I think kind of the user experience doesn't get enough light as to such a defining thing that does move the market if, again, I love to pick on Uber, but the Uber experience compared to walking outside on a rainy day in Manhattan and hoping to hail down a cab is fundamentally different, and I would argue, that it's that technology put together in this user experience that defined this kind of game-changing event, as opposed to it's a bunch of APIs stitching stuff together in the back. >> No, that's right, and I think where we're at right now is that we're about to see the next leap beyond that. Is that, most of the time when we look at the experiences that we're doing today, they're one way. Is that people assume that, Yeah, I have your data, I'm trying to customize. And whether it's an ad or a buying experience or whatever, but they're pushing it as this one-way street, and when we talk about putting the I back in experience, it's that question of the next step to really get people both more engaged as well as to, I'm going to say improve the experience itself, means that it's going to become a partnership. So you're actually going to start looking for input back and forth, and it's sometimes going to be as simple as saying that that ad that they're pushing out is for a product that I've already bought. Or, you know, maybe even just tell me how you knew that that's what I was looking for. But it's sometimes that little things, the back and forth, is how you take something from, what can be a mediocre experience, even potentially a negative one, and really turn it into something that people like. >> Yeah, well, Michael, I'll let you go. I know you got a busy night, we're going to present this. And really thankful to you and the team, and congratulations for coming up with something that's a little bit more provocative than, Cloud's going to be big, or Mobile's going to be big, or Edge is going to be big. So this is great material, and thanks for having us back. Look forward to tonight. >> No, happy to do it, and next year we'll probably do it again. >> [Jeff\ I don't know, we already know everything, it's 2020, what else is unknown? >> Everything's going to change. >> All right, thanks again. (upbeat music)

>>from San Francisco. It's the Cube covering Accenture Tech Vision 20 twenties Brought to you by >>Accenture. >>Hey, welcome back here. Ready? Jeff Frick here with the Cube. We're at the Accenture San Francisco Innovation Hub in the 33rd floor of the Salesforce Tower in downtown San Francisco. It's 2020 the year we know everything with the benefit of hindsight. It what better way to kick off the year than they have the Accenture Tech vision reveal, which is happening later tonight. So we're really happy to have one of the authors who's really driving the whole thing. He's Michael Built the managing director of the Accenture Tech Vision. 2020. A very special edition. Michael, great to see you. Thanks for having me. Absolutely. So you've been doing this for a while? I think we heard earlier. This thing's been going on for 20 years, but you've been involved with at least the last eight a little bit more and more than that. So what's the, uh, what's kind of the big theme before we get into some of the individual? Yeah, So I >>mean, I think right now what we're really talking about is that our real big theme is this ui the digital people? And it's that recognition that says that we fundamentally changed. I mean, when you start looking at yourself in your lives, is that you've gotten to a point where you're letting your cellphone track you. You know your car knows where you are, probably better than your spouse does. You know you're handing your key to all go to Amazon and Wal Marts. They deliver packages. Your help, and more than that, is that actually, we're trying to start to revolve our lives around this technology. You know, I look at my own life and we just sold our second car specifically because we know that uber and lift exists to fill that void, >>right? Well, you don't look much further >>than than phone numbers. How many people remember anybody's phone number anymore? Right, cause you don't really have to. I >>think it's 1/15 anniversary of Google maps this year, and to think of a world without Google Maps without that kind of instant access to knowledge is is really hard to even fathom. But as you said, we're making trade offs when we use all these services and and Now, some of the costs of those things are being maybe more exposed, maybe more cuter in your face. I don't know. What would you say? >>I mean, I think what's happening now is that what we're realizing is that it's changed our relationship with is that suddenly we've actually brought them into our lives. And on one hand they're offering and have the ability to offer services that you could never really do before, you know. But on the other hand is that if I'm gonna let somebody in my life suddenly they don't have to provide. Just provide me value. And this is useful is that they actually irks people expecting them to retained their values to, you know, so how they protect your data. What they're good for the community, for the environment, for society, whether it's sustainable or not, is that suddenly whereas people used to only care about what the products are getting now, how it's built, how your company is being run, it's starting like it's just starting, you know, to become important too, >>right? Well, it's funny cause you used to talk about, you know, kind of triple bottom line shareholders, customers and your employees and you talked about really kind of this fourth line, which is the community and really being involved in the community. People care suddenly go to conferences that we spend >>a lot of time and you know, all the utensils air now compostable and the forks air compostable. And you know, a >>lot of the individual packaging stuff is going away, so people do care. >>They do. And then there's 1/4 and 1/5 that says, the your community cares, you know? But it's also your partners. Do, too, is that you can't you know, I'm going to say downgrade. You know, the idea that you're B two b folks care is that suddenly we're finding ourselves tied to these other companies, and not just in a supply chain, you know, but from everything. And so you're not in this alone in terms of how you're delivering these things. But now it's becoming a data that says the man, if my partners are going to get pummeled because they're not doing the right thing or they don't have that broad scope, is the that's going to reflect on me, too, And so now you're suddenly in this interesting position Where all of the things that we suspected we're gonna happen around digital connecting everybody is just starting to. And I think that's gonna have a lot of positive effects. >>Yep. So one of the things you talked about earlier today, earlier presentation was kind of the shift from kind of buyer and seller seller, consumer to provider and collaborator, Really kind of reflecting a very different kind of a relationship between the parties as opposed to kind of this 11 shot transactional relationship >>now And that's right. And it doesn't matter who you're talking about. This is that, You know, if you're hiring folks, you know, for skills that you're assuming that they're going to learn, you know, that's going to be different in three years and five years. You're essentially partnering with them in order to take all of you on a journey. You know, when you start talking about governments, is that you're now partnering with regulators. You know, you look at companies like Tesla who are working on, you know, regulations for electric cars. They're working on regulations around battery technology. And you see that this go it alone approaches and what you're doing? You know, Rather, it's becoming much more holistic, >>right? So we're in the innovation hub, and I think Number five of the five is really about innovation today. And you guys are driving >>innovation and you know the rest of peace. Clayton Christensen passed away. Innovator's Dilemma. My all Time favorite book The Thing I love about that book is it's smart people. Making sound decisions based on business logic and taking care of existing customers will always miss this continuous change. But you guys are really trying to help companies be innovative. What are some of the things that they that they should be thinking about besides obviously engaging with marrying the team here? And >>that's the really interesting thing is that you know, when we talk about innovation, you know, five or even 10 years ago, you were talking about just how do I find a new product or new service to bring to market? And now that's the minimum stakes like that's what everybody's doing. And I think what we're realizing as we're seeing tech become such a big part is that we all see how it's affecting the world. And a lot of times the things they're good is that there's no reason why you wouldn't look at somebody like a lifter uber and say that it's had a lot of positive effects. But from the same standpoint is that you ask questions of Is it good for public transit? It's good for city infrastructure, and those are hard questions to ask. And I think where we're really pushing now is that question that says We've got an entire generation of not tech companies. But every company that's about to get into this innovation game and what we want them to do is to look at this, not the way that the tech folks did. That says, Here's one service or one technology but rather look at it holistically. That says, How am I actually going to implement this? And what is the real effects that it's gonna have on all of these Different >>lot of unintended consequences is always >>a good, and I remember hearing years ago >>this concept of of curb management, curb management you ever thought of that will drive up and down in Manhattan when they're delivering groceries or delivering Amazon packages and FedEx packages and uber eats and delivery dog food. Now where's that stuff being staged? Now? The warehouses kind of shifted. You got into the public space, so you never kind of really know where these things they're going to end up? >>No. And I'm not saying that we're gonna be able to predict all of it. I think rather it's that starting point that says that, you know, we're starting to see a big push, you know, that says that these things need to be factored in and considered. And then similarly, it's the If you're working with them up front, it becomes less of a fault in a fight of who's fault. It is at the end, and it becomes more of a collaboration that says, How much more can we do if we're working with our cities that we're working with our employees? We're working with >>another follow up. You guys been talking about this for years? Is every company is a tech company or a digital company, depending on how you want to spin that. But as you were talking about earlier today in doing so and then converting from products to services and converting from an ongoing relationship 21 time transaction, it's not only at that point of view touch with a customer, but you've got to make a bunch of fundamental changes back in your own systems to support kind of this changing business >>models. And that's right. And I think this is going >>to become The big challenge of the generation is that we've gotten to a point where just using their existing models for you know how you interact with your customers or how you protect their data or who owns the data. All of these types of things is that they were designed back when we were doing single applications and they were loading up on your windows PC. And where we're at now is that we're starting ask questions that says Alright in this New World order why it's a fundamentally do differently, you know, And, you know, sometimes that could be You know, a simple is asking a question that says, You know, there's a consortium of pharma folks who have created a joint way for them to develop all of their search algorithms for new drugs, but they're using Blockchain, and so they're not actually sharing the data, so they do all the good things but they're pushing that. But fundamentally, that's a different way to think about it. You're not creating an entirely new infrastructure because what you're used to is just handing somebody the data on what they do with the data afterwards. It's kind of their issue and not yours. And so now we're asking big new questions to do it >>right. Another big thing that keeps coming up over and over is trust. And again, we talked little. Really? I find this really ironic situation where people don't necessarily trust the companies in terms of the people running the companies and what they're gonna do with their data. But they fundamentally trust the technology coming out of the gate and this expectation of, of course it works. Everything works on my on my mobile phone, but the two are inter related, but not equal. >>No, I mean, they're >>not. I mean, it's really pushing this idea that says the we've been looking at all of these. I'm going to say scary headlines. People are not trusting companies for the last number of years, while at the same time the adoption for the technology has been huge. But there's this dichotomy that's going on and people were at one point is the they like the tech. I think the last stat I stall is that everybody spends up to six and 1/2 hours a day involved on the Internet in their technology. But from the same standpoint is that they worry about who's using it, how and what it's done. And I think where we're at is that interesting piece that says the we're not worried about a backlash. We don't think that people are going to stop using technology. Rather, we think it's really this tech backlash that says they're not getting the value that they thought out of it, you know? Or they're seeing companies that may be using this, technologies that don't share the same values that they do. And really, what we think this becomes is the next opportunity for the next generations of service providers in order to fill that >>right. Don't forget, there was a Friendster and MySpace before there was a Facebook. Nothing lasts forever. So last question finally goes busy night. The 1st 1 was the eye and experience, and I think you know the kind of the user experience doesn't get enough light as to such a such a defining thing that doesn't move the market again. I lived in an uber right, but the uber experience compared to walking outside on a rainy day in Manhattan and hoping to nail down a cab is fundamentally different. And I would argue that it's that technology put together in this user experience that defined this kind of game changing event as opposed to, You know, it's a bunch of AP I stitch and stuff together in the back. >>That's right. And I think where we're at right now is that we're about to see the next leap. Beyond that is that you know, most of the time when we look at the experiences that we're doing today, they're one way is that people assume that, Yeah, I have your data trying to customize and whether it's a ad or buying experience or whatever. But they're pushing it as this one way street. And when we talk about putting the I back experience, it's that question of the next step to really get people both more engaged as well as to I'm going to say improve the experience. Self means that it's going to become a partnership. So you're actually going to start looking for input back and forth, you know? And it's sometimes it's going to be a simple is saying that that ad that they're pushing out is for a product that I've already bought or, you know, maybe even just tell me how you knew, You know, that that's what I was looking for. But it's sometimes that little things that back and forth is how you take something from, you know, which could be a mediocre experiences, even potentially a negative one and really turned it into something that people like. >>Yeah, well, Michael, I let you go. I know you got a busy night, and we're going to present this and ah, I really think to you and the team And congratulations for coming up with something that's a little bit more provocative than Cloud's Going to be big or mobile is going to be big or edge is going to be big. So this is a great material. And thanks for having us back. Look forward to tonight happening. >>Happy to do it. And, you know, next year will probably do it again. >>So we already know everything is 20. >>20. What else is No, A All right. Thanks again. >>Yeah,

>> live from Miami Beach, Florida It's the que covering demon 2019. Brought to you, by the way. >> Welcome back to Miami. Everybody watching the Cube, The leader in live tech coverage. This is Day two of the mon 2019 3 cubes. Third year at V mon, We did New Orleans. We did Chicago last year. Course here at the Fountain Blue in Miami. Great venue for an event like this. I'm Dave a lot. It was my co host, Peter Burroughs. Abba Dabbas. Eye is Adi is here. He's the head of a Charles Russell speech. Liza London based law firm. How about great. Great to see you. Thanks for coming on. Thankyou. So you tell us about this judge. Interesting name. Charles Russell. Speech lease. It was a merger of two firms, Right. Tell us how it all came about. >> Back in 2,014 Charles, loss of species performed for a merger between two different companies. Charles docile and speaks Lee Burcham from a 90 perspective. That was very interesting for the two departments coming together s So we have a limited time period where we had to merge these two companies Two different systems different data centers, different data sets. So it was formed by emerging back in 2,014 for five years on way here today >> that we see this a lot, you know, Emanate goes down. The acquiring company of this sounds like it was a merger. You know, they sort of battle. Okay, who's going toe? Really? Which framework is going to win? Because I'm sure had that conversation. But so to take us through that merger, what it entailed what? What the scenario looked like and how you plan for it. Sure. >> So I was part of the Charles. Also legacy Charles Russell team on, then obviously speaks about. Some had their own team as well. So initially, when we first found out about the merger, it was essential for the two teams to get together to work out. Okay, What systems? You have free mail. What systems you have for document management system playing trump cards. Which is who's got the best system and which way do we wantto move forward? A little. >> Ah, >> so but being a law firm, most law firms around the world and in the UK especially used the same types of software so essentially that from that perspective it was It was it was quite simple. But then way had to work out. How do we How do we go forward with this? Because two different headquarters in the London area. Which office do we move into? Sort of logistics around that. Can we fit in pre merger? It was six. Charles Lawson had sickle. Roughly 600 people, especially birds, had roughly 500 people. So pretty comparable. Yeah, yeah. So working out space logistics was was an issues >> making that even even more complicated, right? Yeah. >> One of the things that's interesting about a law firm, like versus a traditional manufacturer or AW financial services firm that has a lot of very fast right writing systems and have to scale on those lines is a law firms feature very complex dogs, very complex in from out of files, a lot of files that are written. But at the same time, you have to be repurposed to a lot of different work flows very sensitive to external contingent regulatory change. And so you have all of that happening, especially, I mean, two years ago from now on MySpace steak, and it was you're getting into brexit stuff, too, so that also had to be a source of uncertainty. So how has it been combining external regulatory issues the way that technology is being used in law firms and some of the new work clothes that you guys trying to support? And then adding, On top of that, the complexity of bringing these two firm GPR >> GPO itself was It was a year old project for us on. Obviously, we've got offices. The Middle East, but obviously is in the Far East on DH in Central Europe has well, so data logistics or where it sits, is an issue for us as well. So GDP, ours being a big project for us in terms of the merger itself. It was it was very, very difficult for the two I T departments to come together on actually work out. How how do we go to one unified systems? Essentially one doctor man, just in one email system. All of that took a lot of plan in law project management on essentially within the legal press itself. We got doubted in the time frames that we had that we can achieve it on within. I think It was 18 month period. We had merged order, different systems and various offices because speech the Bertram and Time is what I had. Offices in Zurich and Geneva were to merge with different offices together as well. So it was. It was a big, big task for the i T department on the firm itself. >> They're very tight migration deadlines. And and as you started to approach those deadlines you had to worry about, Okay, When we're going to cut over, how do we avoid downtime? How do we make sure that we don't? You know, I have bad data, data, corruption and the like. So how did you plan for that? And how did it go? >> So wait, we're here. C'mon on DH. Veen was It was it was a big part of our migration process. So where we had two different parts of the business Different storage systems, Different actualization system's way used to mean a CZ. The middleman basically, to my great data, from one day to center to another, using swink it. So where there was a large amount of terabytes and terabytes, amount of data way had swing kit available to us using team were able to be to be essentially a love the environments into the swing care and then bring them over to the other side of the business. And vain was essentially part on on top of that, making sure that the data that we were coming that will bring in a cross is true and not corrupt on DH, that using some of their technology is sure backups and stuff like that really, really was essential to, you know, do migration going well >> And was was Wien installed and both organizations at the time? Or was that something that you had to sort of redeploy? >> And yeah, So Legacy Charles also had way was actually myself going back probably eight years ago. Version For a time, I think team had 20,000 customers. So to here >> there were version 10 now 33 150 >> 1,001,000, 4,000 month. >> That makes me proud that we invested in vain when we did good car. So yeah, it was It was a good call from us, and essentially three other side of the business did not have. But then we just wait. Expanded our Venus State to look at both sides and then bring him across on. And then, ever since then, we've grown our vamos state across the world, across all of officers. So >> So how did you do that? So that was that was another migration that had to occur. And did you? You kind of do those simultaneously. Did you do the theme of migration first, and then bring the two systems together? >> Do you seem to do Stouffer special sauce in the migration? >> Yeah. So Veen was essentially a tool that we used to my great data sensors from one data center to another using their backup technology using their replication technology, we were able to replicate all of one side's virtual machines to the other. And then that gave us that gave us the flexibility as well. When when we had the limited down time periods that we've had, they give us the flexibility to actually Circe the business is during these particular ours. We're not gonna be able to You're not gonna have access to these systems because we're going to bring up systems from point A to point B. So veen was essential to them if >> you had to do it over again. If he had a mulligan, what would you have done differently? What what advice might you give to somebody who's trying to go through a similar migration? >> I would say Give your partners and lawyers more realistic time. Pray the time frame that we would get. >> Or don't let them give you an unrealistic time for him. >> Exactly. Yeah, so says ensured that the amount of work it's it's not just day to itself. You know, we're talking network and we're talking security. We're talking, you know, to to similar sized companies coming together. We were very, very limited time frame, consolidating all of their systems into one which is essential for the two parts of the business to collaborate together because, you know, way could have taken our time. We could have got to take this free four years a CE, far as we're concerned. But the fact that we did do it in such a quick time for him and that business to parts of the business from Day one can collaborate much better with each other. So >> we talked a lot about digital business transformation and you know, our approach or our observations on the digital business transformations, the process by which you altar and change your firm to re institutionalize the work. Change your game. Tomato Grover. All governments model as you use data as an asset, so that's affecting every firm everywhere. How's it affecting a law firm and you know your law from specifically on? How is that going to change your stance in your approach to data protection >> Data is incredibly important to unlawful. A zit is to most most organizations, but in terms of, you know, one of one of the things that's quite important in terms of law firms. We work with the financial institutions, so we held information by that. We hold personal data way hold all times of information. Charles Oscar speech leads works with Aware is of law apart from Kunal. So the areas of law that they worked with his vast in terms of the amount of data that we hold and essentially I mean, for us data is the most important thing that runs the firm and having visibility tow our data. How do we How do we work that data? How do we then market based on the data that we have? How do we market ourselves from that data. You know, there might be one area the business that's dealing with a family issue, family law. But then, you know that that could correspond with the litigation issue. You know, how do we work that data? To be to be an advancing to our businesses is extremely important. For >> what? What do you think of the announcements this week? I'm kind of curious. I was liketo ask the practitioners of what they think about. You know what was announced. You had, uh, well, you had the ve made $1,000,000,000. That's kind of fun and cool, but But you had the with the program, which was kind of interesting. The whole ap I look the beam availability orchestrator, where they're really talking about recovering from backups as a host that needed to recover from, you know, a replicated instance. You know, some of the automated testing stuff was kind of interesting. They talked about dynamic documentation, things you saw this week that you'll actually go back and say, Hey, I can apply that to solve a problem. Sure. >> So, essentially, I think I've been a really good question is very relevant to us many of not just ourselves law firm but many of the other law firms around the world are now looking at cloud based services now for us. I mean, this was a big thing five years ago way you know, everyone was talking about public clouds. Us. We're now we're now looking clouds and where basically, we've bean pushed by the vendors themselves to go towards cloudlike Citrix, for example. Their licensing model was based around their services. So is Microsoft in Mike's off? You don't you don't really have, you know, exchange anymore. Within premises you have off 365 A lot of the SAS applications are moving toward the cloud on DH. What wrote me? I had to say doing the keynote in regards to act, too. And how team are trying to be the visionaries in terms of look at that cloud is their next big thing for the next 10 years, offering often a crucial and for businesses like ours who have limited exposure to cloud technologies limited understanding, essentially having a tool that could migrate from one cloud to another. It's fantastic, you know, we've offered, you know I've spoken to, obviously are United directors around the other law firms where I wanted to have gone to the public cloud. But they don't know how to come back in and having a tall that essentially gives you that flexibility to bring it back in house to go form a ws to zoo. Or if there's a particular assess application, for example, that piers better with a W s. But you've got your other application that piers with that particular application is your Why would you want to have in the door? You'll probably want to move into a W eso for us, I think. What? The message coming out of'em on this year has bean really, really helpful for us. >> So So when you started with theme, they had it said 20,000 custom You like the 20001st customer on DIT was coincided with the virtual ization, you know, craze. Do you feel like the team knowing what you know about them, you have a lot of experience with them Consort of Replicate that success in this town intendant and in Act two, >> I think when I first looked at them, Wow, this is really, really simple. It's a bit like an iPhone. You know you given iPhone to your grandmother or to your children, and they have to play with it. And I see the beam as an intuitive piece of software that easy fighting professionals to get on with it, as their slogan said a few years ago. It just works. It does just work. Wear were great advocates of him. It's worked wonders for us. We've acquired smaller businesses using we've managed companies using and when I see you know, when you go to the sessions and you see the intelligence behind their thinking, I think going back to your question I think Wei si oui, si, vamos a strategic partner for us when we see their vision and we believe in their vision, and I think what they're doing in terms of what they working on next few years, I think we're well favor there, and I think, you know, essentially, that's where the most of their business is going to come from, >> where you sit down with, you know, rat mayor over over vodka and he says, Tell me the one thing I could do to make your life you know, easier, better you can't say cut prices s a hellhole. But what would you advise him to >> make my life better >> other than Jim instead of >> yeah, eyes that >> would make you crazy. >> So in terms of a zoo, a technology, >> your business relationship or something, she'd like to see them do that would. I >> think in terms of mergers and acquiring companies, seen license rentals will be a good thing. I know, I know. They give you a valuation license keys, and that's something that you can use. So, for example, if we were to acquire a company that has hundreds of servers and PM's having license rentals for a period of time, able >> to spin it up and spin it down actually allowed >> Exactly. Yeah, that would be an advantage. I think in terms of what you know what they're doing in the marketplace, and a lot of law firms use him. I feel I can't do any more than they are doing now. And in all the years that we've used to be my fingers on eight years now, but we've only had one serious problem, and the way they got that problem, you know the way, the way they communicated to reverse the way they a lot of different teams across the the Europe and the US go involved. I think, you know, in terms of service, in terms of software, in terms of what they what they do for us. I don't think there's anything more to add. Teoh. Right? Maia's vision. >> That's great for their custom of it. Well, thanks so much for coming on. The Cube is not heavy. Really? Thank you very much. You're welcome to keep it right there, buddy Peter, and I'll be back with our next guests right after this short break. We're live from Miami at the front of Blue Hotel. You're watching the Cube from Vienna on 2019 right back.

>> From our studios in the heart of Silicon Valley. HOLLOWAY ALTO, California It is a cube conversation. >> Welcome to the special. Keep conversation here in Palo Alto, California. I'm John for a co host of the Cube. Were Arsenal was a C I S O. C. So for Microsoft also corporate vice President, Chief information security. Thanks for joining me today. >> Thank you. >> Appreciate it. Thanks. So you have a really big job. You're a warrior in the industry, security is the hardest job on the planet. >> And hang in sight >> of every skirt. Officer is so hard. Tell us about the role of Microsoft. You have overlooked the entire thing. You report to the board, give us an overview of what >> happens. Yeah. I >> mean, it's you know, obviously we're pretty busy. Ah, in this world we have today with a lot of adversaries going on, an operational issues happening. And so I have responsibility. Accountability for obviously protecting Microsoft assets are customer assets. And then ah, And for me, with the trend also responsibility for business continuity Disaster recovery company >> on the sea. So job has been evolving. We're talking before the camera came on that it's coming to CEO CF roll years ago involved to a business leader. Where is the sea? So roll now in your industry is our is a formal title is it establishes their clear lines of reporting. How's it evolved? What's the current state of the market in terms of the sea? So it's roll? >> Yeah, the role is involved. A lot. Like you said, I think like the CIA or twenty years ago, you know, start from the back room of the front room and I think the, you know, one of things I look at in the role is it's really made it before things. There's technical architecture, there's business enablement. There's operational expert excellence. And then there's risk management and the older ah, what does find the right word? But the early see so model was really about the technical architecture. Today. It's really a blend of those four things. How do you enable your business to move forward? How do you take calculated risks or manage risks? And then how do you do it really effectively and efficiently, which is really a new suit and you look at them. You'LL see people evolving to those four functions. >> And who's your boss? Would you report to >> I report to a gentleman by the name of a curtain. Little Benny on DH. He is the chief digital officer, which would be a combination of Seo did officer and transformation as well as all of Microsoft corporate strategy >> and this broad board visibility, actually in security. >> Yeah, you >> guys, how is Microsoft evolved? You've been with the company for a long time >> in the >> old days ahead perimeters, and we talk about on the Cube all the time. When a criminalist environment. Now there's no perimeter. Yeah, the world's changed. How is Microsoft evolved? Its its view on security Has it evolved from central groups to decentralize? How is it how how was it managed? What's the what's the current state of the art for security organization? >> Well, I think that, you know, you raise a good point, though things have changed. And so in this idea, where there is this, you know, perimeter and you demanded everything through the network that was great. But in a client to cloak cloud world, we have today with mobile devices and proliferation or cloud services, and I ot the model just doesn't work anymore. So we sort of simplified it down into Well, we should go with this, you know, people calls your trust, I refer to It is just don't talk to strangers. But the idea being is this really so simplified, which is you've got to have a good identity, strong identity to participate. You have to have managed in healthy device to participate, to talk to, ah, Microsoft Asset. And then you have to have data in telemetry that surrounds that all the time. And so you basically have a trust, trust and then verify model between those three things. And that's really the fundamental. It's really that simple. >> David Lava as Pascal senior with twenty twelve when he was M. C before he was the C E O. V M. Where he said, You know his security do over and he was like, Yes, it's going to be a do over its opportunity. What's your thoughts on that perspective? Has there been a do over? Is it to do over our people looking at security and a whole new way? What's your thoughts? >> Yeah, I mean, I've been around security for a long time, and it's there's obviously changes in Massa nations that happened obviously, at Microsoft. At one point we had a security division. I was the CTO in that division, and we really thought the better way to do it was make security baked in all the products that we do. Everything has security baked in. And so we step back and really change the way we thought about it. To make it easier for developers for end users for admin, that is just a holistic part of the experience. So again, the technology really should disappear. If you really want to be affected, I think >> don't make it a happy thought. Make it baked in from Day one on new product development and new opportunity. >> Yeah, basically, shift the whole thing left. Put it right in from the beginning. And so then, therefore, it's a better experience for everyone using it. >> So one of things we've observed over the past ten years of doing the Cube when do first rolled up with scene, you know, big data role of date has been critical, and I think one of the things that's interesting is, as you get data into the system, you can use day that contextually and look at the contextual behavioral data. It's really is create some visibility into things you, Meyer may not have seen before. Your thoughts and reaction to the concept of leveraging data because you guys get a lot of data. How do you leverage the data? What's the view of data? New data will make things different. Different perspectives creates more visibility. Is that the right view? What's your thoughts on the role of Data World Data plays? >> Well, they're gonna say, You know, we had this idea. There's identity, there's device. And then there's the data telemetry. That platform becomes everything we do, what there's just security and are anomalous behavior like you were talking about. It is how do we improve the user experience all the way through? And so we use it to the service health indicator as well. I think the one thing we've learned, though, is I was building where the biggest data repositories your head for some time. Like we look at about a six point five trillion different security events a day in any given day, and so sort of. How do you filter through that? Manage? That's pretty amazing, says six point five trillion >> per day >> events per day as >> coming into Microsoft's >> that we run through the >> ecosystem your systems. Your computers? >> Yeah. About thirty five hundred people. Reason over that. So you can Certainly the math. You need us. Um, pretty good. Pretty good technology to make it work effectively for you and efficiently >> at RC A Heard a quote on the floor and on the q kind of echoing the same sentiment is you can't hire your way to success in this market is just not enough people qualified and jobs available to handle the volume and the velocity of the data coming in. Automation plays a critical role. Your reaction to that comment thoughts on? >> Well, I think I think the cure there, John, those when you talk about the volume of the data because there's what we used to call speeds and feeds, right? How big is it? And I used to get great network data so I can share a little because we've talked, like from the nineties or whatever period that were there. Like the network was everything, but it turns out much like a diverse workforce creates the best products. It turns out diverse data is more important than speeds and feeds. So, for example, authentication data map to, you know, email data map to end point data map. TEO SERVICE DATA Soon you're hosting, you know, the number of customers. We are like financial sector data vs Healthcare Data. And so it's the ability Teo actually do correlation across that diverse set of data that really differentiates it. So X is an example. We update one point two billion devices every single month. We do six hundred thirty billion authentications every single month. And so the ability to start correlating those things and movement give us a set of insights to protect people like we never had before. >> That's interesting telemetry you're getting in the marketplace. Plus, you have the systems to bring it in >> a pressure pressure coming just realized. And this all with this consent we don't do without consent, we would never do without consent. >> Of course, you guys have the terms of service. You guys do a good job on that, But I think the point that I'm seeing there is that you guys are Microsoft. Microsoft got a lot of access. Get a lot of stuff out there. How does an enterprise move to that divers model because they will have email, obviously. But they have devices. So you guys are kind of operating? I would say tear one of the level of that environment cause you're Microsoft. I'm sure the big scale players to that. I'm just an enterprising I'm a bank or I'm an insurance company or I'm in oil and gas, Whatever the vertical. Maybe. What do I do if I'm the sea? So they're So what does that mean, Diversity? How should they? >> Well, I think they have a diverse set of data as well. Also, if they participate, you know, even in our platform today, we you know, we have this thing called the security graph, which is an FBI people can tap into and tap into the same graph that I use and so they can use that same graph particular for them. They can use our security experts to help them with that if they don't have the all the resource and staff to go do that. So we provide both both models for that to happen, and I think that's why a unique perspective I should think should remind myself of which is we should have these three things. We have a really good security operations group we have. I think that makes us pretty unique that people can leverage. We build this stuff into the product, which I think is good. But then the partnership, the other partners who play in the graph, it's not just us. So there's lots of people who play on that as well. >> So like to ask you two lines of questions. Wanting on the internal complex is that organizations will have on the external complexity and realities of threats and coming in. How do they? How do you balance that out? What's your vision on that? Because, you know, actually, there's technology, his culture and people, you know in those gaps and capabilities on on all three. Yeah, internally just getting the culture right and then dealing with the external. How does a C so about his company's balance? Those realities? >> Well, I think you raised a really good point, which is how do you move the culture for? That's a big conversation We always have. And that was sort of, you know, it's interesting because the the one side we have thirty five hundred people who have security title in their job, But there's over one hundred thousand people who every day part of their job is doing security, making sure they'LL understand that and know that is a key part we should reinforce everyday on DSO. But I think balancing it is, is for me. It's actually simplifying just a set of priorities because there's no shortage of, you know, vendors who play in the space. There's no shortage of things you can read about. And so for us it was just simplifying it down and getting it. That simplifies simplified view of these are the three things we're going to go do we build onerous platform to prioritize relative to threat, and then and then we ensure we're building quality products. Those five things make it happen. >> I'd like to get your thoughts on common You have again Before I came on camera around how you guys view simplification terminal. You know, you guys have a lot of countries, the board level, and then also you made a common around trust of security and you an analogy around putting that drops in a bucket. So first talk about the simplification, how you guys simplifying it and why? Why is that important? >> You think we supply two things one was just supplying the message to people understood the identity of the device and making sure everything is emitting the right telemetry. The second part that was like for us but a Z to be illustrative security passwords like we started with this technology thing and we're going to do to FAA. We had cards and we had readers and oh, my God, we go talk to a user. We say we're going to put two FAA everywhere and you could just see recoil and please, >> no. And then >> just a simple change of being vision letters. And how about this? We're just going to get rid of passwords then People loved like they're super excited about it. And so, you know, we moved to this idea of, you know, we always said this know something, know something new, how something have something like a card And they said, What about just be something and be done with it? And so, you know, we built a lot of the capability natively into the product into windows, obviously, but I supported energies environment. So I you know, I support a lot of Mac clinics and IOS and Android as well So you've read it. Both models you could use by or you could use your device. >> That's that. That's that seems to be a trend. Actually, See that with phones as well as this. Who you are is the password and why is the support? Because Is it because of these abuses? Just easy to program? What's the thought process? >> I think there's two things that make it super helpful for us. One is when you do the biometric model. Well, first of all, to your point, the the user experience is so much better. Like we walk up to a device and it just comes on. So there's no typing this in No miss typing my password. And, you know, we talked earlier, and that was the most popular passwords in Seattle with Seahawks two thousand seventeen. You can guess why, but it would meet the complexity requirements. And so the idea is, just eliminate all that altogether. You walk up machine, recognize you, and you're often running s o. The user experience is great, but plus it's Actually the entropy is harder in the biometric, which makes it harder for people to break it, but also more importantly, it's bound locally to the device. You can't run it from somewhere else. And that's the big thing that I think people misunderstanding that scenario, which is you have to be local to that. To me, that's a >> great example of rethinking the security paradigm. Exactly. Let's talk about trust and security. You you have an opinion on this. I want to get your thoughts, the difference between trust and security so they go hand in hand at the same time. They could be confused. Your thoughts on this >> well being. You can have great trust. You can, so you can have great security. But you generally and you would hope that would equate like a direct correlation to trust. But it's not. You need to you build trust. I think our CEO said it best a long time ago. You put one bucket of water, one bucket. Sorry, one truffle water in the bucket every time. And that's how you build trust. Over time, my teenager will tell you that, and then you kick it over and you put it on the floor. So you have to. It's always this ratcheting up bar that builds trust. >> They doing great you got a bucket of water, you got a lot of trust, that one breach. It's over right, >> and you've got to go rebuild it and you've got to start all over again. And so key, obviously, is not to have that happen. But then, that's why we make sure you have operational rigor and >> great example that just totally is looking Facebook. Great. They have massive great security. What really went down this past week, but still the trust factor on just some of the other or societal questions? >> Yeah, >> and that something Do it. >> Security. Yeah, I think that's a large part of making sure you know you're being true. That's what I said before about, you know, we make sure we have consent. We're transparent about how we do the things we do, and that's probably the best ways to build trust. >> Okay, so you guys have been successful in Microsoft, just kind of tight the company for second to your role. It's pretty well documented that the stock prices at an all time high. So if Donatella Cube alumni, by the way, has been on the cue before he he took over and clear he didn't pivot. He just said we'd go in the cloud. And so the great moves, he don't eat a lot of great stuff. Open source from open compute to over the source. And this ship has turned and everything's going great. But that cheering the cloud has been great for the company. So I gotta ask you, as you guys move to the cloud, the impact to your businesses multi fold one products, ecosystem suppliers. All these things are changing. How has security role in the sea? So position been impact that what have you guys done? How does that impact security in general? Thoughts? >> Yeah, I think we obviously were like any other enterprise we had thousands of online are thousands of line of business applications, and we did a transformation, and we took a method logical approach with risk management. And we said, Okay, well, this thirty percent we should just get rid of and decommission these. We should, you know, optimize and just lifting shifting application. That cloud was okay, but it turns out there's massive benefit there, like for elasticity. Think of things that quarterly reporting or and you'll surveys or things like that where you could just dynamically grow and shrink your platform, which was awesome linear scale that we never had Cause those events I talk about would require re architectures. Separate function now becomes linear. And so I think there is a lot of things from a security perspective I could do in a much more efficient must wear a fish. In fact, they're then I had to have done it before, but also much more effective. I just have compute capability. Didn't have I have signal I didn't have. And so we had to wrap her head around that right and and figure out how to really leverage that. And to be honest, get the point. We're exploited because you were the MySpace. I have disaster and continent and business. This is processed stuff. And so, you know, everyone build dark fiber, big data centers, storage, active, active. And now when you use a platform is a service like on that kind of azure. You could just click a Bach and say, I want this thing to replicate. It also feeds your >> most diverse data and getting the data into the system that you throw a bunch of computer at that scale. So What diverse data? How does that impact the good guys and the bad guys? That doesn't tip the scales? Because if you have divers date and you have his ability, it's a race for who has the most data because more data diversity increases the aperture and our visibility into events. >> Yeah, I you >> know, I should be careful. I feel like I always This's a job. You always feel like you're treading water and trying to trying to stay ahead. But I think that, um, I think for the first time in my tenure do this. I feel there's an asymmetry that benefits. They're good guys in this case because of the fact that your ability to reason over large sets of data like that and is computed data intensive and it will be much harder for them like they could generally use encryption were effectively than some organization because the one the many relationship that happens in that scenario. But in the data center you can't. So at least for now, I feel like there's a tip This. The scales have tipped a bit for the >> guy that you're right on that one. I think it's good observation I think that industry inside look at the activity around, from new fund adventures to overall activity on the analytics side. Clearly, the data edge is going to be an advantage. I think that's a great point. Okay, that's how about the explosion of devices we're seeing now. An explosion of pipe enabled devices, Internet of things to the edge. Operational technologies are out there that in factory floors, everything being I P enables, kind of reminds me of the old days. Were Internet population you'd never uses on the Internet is growing, and >> that costs a lot >> of change in value, creation and opportunities devices. Air coming on both physical and software enabled at a massive rate is causing a lot of change in the industry. Certainly from a security posture standpoint, you have more surface area, but they're still in opportunity to either help on the do over, but also create value your thoughts on this exploding device a landscape, >> I think your Boston background. So Metcalfe's law was the value the net because the number of the nodes on the network squared right, and so it was a tense to still be true, and it continues to grow. I think there's a huge value and the device is there. I mean, if you look at the things we could do today, whether it's this watch or you know your smartphone or your smart home or whatever it is, it's just it's pretty unprecedented the capabilities and not just in those, but even in emerging markets where you see the things people are doing with, you know, with phones and Lauren phones that you just didn't have access to from information, you know, democratization of information and analysis. I think it's fantastic. I do think, though, on the devices there's a set of devices that don't have the same capabilities as some of the more markets, so they don't have encryption capability. They don't have some of those things. And, you know, one of Microsoft's responses to that was everything. Has an M see you in it, right? And so we, you know, without your spirit, we created our own emcee. That did give you the ability to update it, to secure, to run it and manage it. And I think that's one of the things we're doing to try to help, which is to start making these I, O. T or Smart devices, but at a very low cost point that still gives you the ability because the farm would not be healed Update, which we learn an O. T. Is that over time new techniques happen And you I can't update the system >> from That's getting down to the product level with security and also having the data great threats. So final final talk Tracking one today with you on this, your warrior in the industry, I said earlier. See, so is a hard job you're constantly dealing with compliance to, you know, current attacks, new vector, new strains of malware. And it's all over the map. You got it. You got got the inbound coming in and you got to deal with all that the blocking and tackling of the organization. >> What do you What do >> you finding as best practice? What's the what if some of the things on the cso's checklist that you're constantly worried about and or investing in what some of >> the yeah, >> the day to day take us through the day to day life >> of visited a lot? Yeah, it >> starts with not a Leslie. That's the first thing you have to get used to, but I think the you know again, like I said, there's risk Manager. Just prioritize your center. This is different for every company like for us. You know, hackers don't break and they just log in. And so identity still is one of the top things. People have to go work on him. You know, get rid of passwords is good for the user, but good for the system. We see a lot in supply chain going on right now. Obviously, you mentioned in the Cambridge Analytical Analytics where we had that issue. It's just down the supply chain. And when you look at not just third party but forthe party fifth party supply and just the time it takes to respond is longer. So that's something that we need to continue to work on. And then I think you know that those are some of the other big thing that was again about this. How do you become effective and efficient and how you managed that supply chain like, You know, I've been on a mission for three years to reduce my number of suppliers by about fifty percent, and there's still lots of work to do there, but it's just getting better leverage from the supplier I have, as well as taking on new capability or things that we maybe providing natively. But at the end of the day, if you have one system that could do what four systems going Teo going back to the war for talent, having people, no forces and versus one system, it's just way better for official use of talent. And and obviously, simplicity is the is the friend of security. Where is entropy is not, >> and also you mentioned quality data diversity it is you're into. But also there's also quality date of you have quality and diverse data. You could have a nice, nice mechanism to get machine learning going well, but that's kind of complex, because in the thie modes of security breaches, you got pre breached in breech post breach. All have different data characteristics all flowing together, so you can't just throw that answer across as a prism across the problem sets correct. This is super important, kind of fundamentally, >> yeah, but I think I >> would I would. The way I would characterize those is it's honestly, well, better lessons. I think I learned was living how to understand. Talk with CFO, and I really think we're just two things. There's technical debt that we're all working on. Everybody has. And then there's future proofing the company. And so we have a set of efforts that go onto like Red Team. Another actually think like bad people break them before they break you, you know, break it yourself and then go work on it. And so we're always balancing how much we're spending on the technical, that cleanup, you know, modernizing systems and things that are more capable. And then also the future proofing. If you're seeing things coming around the corner like cryptography and and other other element >> by chain blockchain, my supply chain is another good, great mechanism. So you constantly testing and R and D also practical mechanisms. >> And there in the red team's, which are the teams that attacking pen everything, which is again, break yourself first on this super super helpful for us >> well bred. You've seen a lot of ways of innovation have been involved in multiple ways computer industry client server all through the through the days, so feel. No, I feel good about this you know, because it reminds me and put me for broken the business together. But this is the interesting point I want to get to is there's a lot of younger Si SOS coming in, and a lot of young talent is being attractive. Security has kind of a game revived to it. You know, most people, my friends, at a security expert, they're all gamers. They love game, and now the thrill of it. It's exciting, but it's also challenging. Young people coming might not have experience. You have lessons you've learned. Share some thoughts over the years that scar either scar tissue or best practices share some advice. Some of the younger folks coming in breaking into the business of, you know, current situation. What you learned over the years it's Apple Apple. But now the industry. >> Yeah, sadly, I'd probably say it's no different than a lot of the general advice I would have in the space, which is there's you value experience. But it turns out I value enthusiasm and passion more here so you can teach about anybody whose passion enthusiastic and smart anything they want. So we get great data people and make them great security people, and we have people of a passion like you know, this person. It's his mission is to limit all passwords everywhere and like that passion. Take your passion and driver wherever you need to go do. And I >> think the nice >> thing about security is it is something that is technically complex. Human sociology complex, right? Like you said, changing culture. And it affects everything we do, whether it's enterprise, small, medium business, large international, it's actually a pretty It's a fasten, if you like hard problem. If you're a puzzle person, it's a great It's a great profession >> to me. I like how you said Puzzle. That's I think that's exactly it. They also bring up a good point. I want to get your thoughts on quickly. Is the talent gap is is really not about getting just computer science majors? It's bigger than that. In fact, I've heard many experts say, and you don't have to be a computer scientist. You could be a lot of cross disciplines. So is there a formula or industry or profession, a college degree? Or is it doesn't matter. It's just smart person >> again. It depends if your job's a hundred percent. Security is one thing, but like what we're trying to do is make not we don't have security for developers you want have developed to understand oppa security and what they build is an example on DSO. Same with administrators and other components. I do think again I would say the passion thing is a key piece for us, but But there's all aspects of the profession, like the risk managers air, you know, on the actuarial side. Then there's math people I had one of my favorite people was working on his phD and maladaptive behavior, and he was super valuable for helping us understand what actually makes things stick when you're trying to train their educate people. And what doesn't make that stick anthropologist or super helpful in this field like anthropologist, Really? Yeah, anthropologist are great in this field. So yeah, >> and sociology, too, you mentioned. That would think that's a big fact because you've got human aspect interests, human piece of it. You have society impact, so that's really not really one thing. It's really cross section, depending upon where you want to sit in the spectrum of opportunity, >> knowing it gives us a chance to really hire like we hire a big thing for us has been hard earlier in career and building time because it's just not all available. But then also you, well, you know, hire from military from law enforcement from people returning back. It's been actually, it's been a really fascinating thing from a management perspective that I didn't expect when I did. The role on has been fantastic. >> The mission. Personal question. Final question. What's getting you excited these days? I mean, honestly, you had a very challenging job and you have got attend all the big board meetings, but the risk management compliance. There's a lot of stuff going on, but it's a lot >> of >> technology fund in here to a lot of hard problems to solve. What's getting you excited? What what trends or things in the industry gets you excited? >> Well, I'm hopeful we're making progress on the bad guys, which I think is exciting. But honestly, this idea the you know, a long history of studying safety when I did this and I would love to see security become the air bags of the technology industry, right? It's just always there on new president. But you don't even know it's there until you need it. And I think that getting to that vision would be awesome. >> And then really kind of helping move the trust equation to a whole other level reputation. New data sets so data, bits of data business. >> It's total data business >> breath. Thanks for coming on the Q. Appreciate your insights, but also no see. So the chief information security officer at Microsoft, also corporate vice president here inside the Cuban Palo Alto. This is cute conversations. I'm John Career. Thanks for watching. >> Thank you.

[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]

Section 1 of 13 [00:00:00 - 00:10:04] (NOTE: speaker names may be different in each section) Speaker 1: Ladies and gentlemen our program will begin momentarily. Thank you. (singing) This presentation and the accompanying oral commentary may include forward looking statements that are subject to risks uncertainties and other factors beyond our control. Our actual results, performance or achievements may differ materially and adversely from those anticipated or implied by such statements because of various risk factors. Including those detailed in our annual report on form 10-K for the fiscal year ended July 31, 2017 filed with the SEC. Any future product or roadmap information presented is intended to outline general product direction and is not a commitment to deliver any functionality and should not be used when making any purchasing decision. (singing) Ladies and gentlemen please welcome Vice President Corporate Marketing Nutanix, Julie O'Brien. Julie O'Brien: All right. How about those Nutanix .NEXT dancers, were they amazing or what? Did you see how I blended right in, you didn't even notice I was there. [French 00:07:23] to .NEXT 2017 Europe. We're so glad that you could make it today. We have such a great agenda for you. First off do not miss tomorrow morning. We're going to share the outtakes video of the handclap video you just saw. Where are the customers, the partners, the Nutanix employee who starred in our handclap video? Please stand up take a bow. You are not going to want to miss tomorrow morning, let me tell you. That is going to be truly entertaining just like the next two days we have in store for you. A content rich highly interactive, number of sessions throughout our agenda. Wow! Look around, it is amazing to see how many cloud builders we have with us today. Side by side you're either more than 2,200 people who have traveled from all corners of the globe to be here. That's double the attendance from last year at our first .NEXT Conference in Europe. Now perhaps some of you are here to learn the basics of hyperconverged infrastructure. Others of you might be here to build your enterprise cloud strategy. And maybe some of you are here to just network with the best and brightest in the industry, in this beautiful French Riviera setting. Well wherever you are in your journey, you'll find customers just like you throughout all our sessions here with the next two days. From Sligro to Schroders to Societe Generale. You'll hear from cloud builders sharing their best practices and their lessons learned and how they're going all in with Nutanix, for all of their workloads and applications. Whether it's SAP or Splunk, Microsoft Exchange, unified communications, Cloud Foundry or Oracle. You'll also hear how customers just like you are saving millions of Euros by moving from legacy hypervisors to Nutanix AHV. And you'll have a chance to post some of your most challenging technical questions to the Nutanix experts that we have on hand. Our Nutanix technology champions, our MPXs, our MPSs. Where are all the people out there with an N in front of their certification and an X an R an S an E or a C at the end. Can you wave hello? You might be surprised to know that in Europe and the Middle East alone, we have more than 2,600 >> Julie: In Europe and the Middle East alone, we have more than 2,600 certified Nutanix experts. Those are customers, partners, and also employees. I'd also like to say thank you to our growing ecosystem of partners and sponsors who are here with us over the next two days. The companies that you meet here are the ones who are committed to driving innovation in the enterprise cloud. Over the next few days you can look forward to hearing from them and seeing some fantastic technology integration that you can take home to your data center come Monday morning. Together, with our partners, and you our customers, Nutanix has had such an exciting year since we were gathered this time last year. We were named a leader in the Gartner Magic Quadrant for integrated systems two years in a row. Just recently Gartner named us the revenue market share leader in their recent market analysis report on hyper-converged systems. We know enjoy more than 35% revenue share. Thanks to you, our customers, we received a net promoter score of more than 90 points. Not one, not two, not three, but four years in a row. A feat, I'm sure you'll agree, is not so easy to accomplish, so thank you for your trust and your partnership in us. We went public on NASDAQ last September. We've grown to more than 2,800 employees, more than 7,000 customers and 125 countries and in Europe and the Middle East alone, in our Q4 results, we added more than 250 customers just in [Amea 00:11:38] alone. That's about a third of all of our new customer additions. Today, we're at a pivotal point in our journey. We're just barely scratching the surface of something big and Goldman Sachs thinks so too. What you'll hear from us over the next two days is this: Nutanix is on it's way to building and becoming an iconic enterprise software company. By helping you transform your data center and your business with Enterprise Cloud Software that gives you the power of freedom of choice and flexibility in the hardware, the hypervisor and the cloud. The power of one click, one OS, any cloud. And now, to tell you more about the digital transformation that's possible in your business and your industry and share a little bit around the disruption that Nutanix has undergone and how we've continued to reinvent ourselves and maybe, if we're lucky, share a few hand clap dance moves, please welcome to stage Nutanix Founder, CEO and Chairman, Dheeraj Pandey. Ready? Alright, take it away [inaudible 00:13:06]. >> Dheeraj P: Thank you. Thank you, Julie and thank you every one. It looks like people are still trickling. Welcome to Acropolis. I just hope that we can move your applications to Acropolis faster than we've been able to move people into this room, actually. (laughs) But thank you, ladies and gentlemen. Thank you to our customers, to our partners, to our employees, to our sponsors, to our board members, to our performers, to everybody for their precious time. 'Cause that's the most precious thing you actually have, is time. I want to spend a little bit of time today, not a whole lot of time, but a little bit of time talking about the why of Nutanix. Like why do we exist? Why have we survived? Why will we continue to survive and thrive? And it's simpler than an NQ or category name, the word hyper-convergence, I think we are all complicated. Just thinking about what is it that we need to talk about today that really makes it relevant, that makes you take back something from this conference. That Nutanix is an obvious innovation, it's very obvious what we do is not very complicated. Because the more things change, the more they remain the same, so can we draw some parallels from life, from what's going on around us in our own personal lives that makes this whole thing very natural as opposed to "Oh, it's hyper-converged, it's a category, it's analysts and pundits and media." I actually think it's something new. It's not that different, so I want to start with some of that today. And if you look at our personal lives, everything that we had, has been digitized. If anything, a lot of these gadgets became apps, they got digitized into a phone itself, you know. What's Nutanix? What have we done in the last seven, eight years, is we digitized a lot of hardware. We made everything that used to be single purpose hardware look like pure software. We digitized storage, we digitized the systems manager role, an operations manager role. We are digitizing scriptures, people don't need to write scripts anymore when they automate because we can visually design automation with [com 00:15:36]. And we're also trying to make a case that the cloud itself is not just a physical destination. That it can be digitized and must be digitized as well. So we learn that from our personal lives too, but it goes on. Look at music. Used to be tons of things, if you used to go to [inaudible 00:15:55] Records, I'm sure there were European versions of [inaudible 00:15:57] Records as well, the physical things around us that then got digitized as well. And it goes on and on. We look at entertainment, it's very similar. The idea that if you go to a movie hall, the idea that you buy these tickets, the idea that we'd have these DVD players and DVDs, they all got digitized. Or as [inaudible 00:16:20] want to call it, virtualized, actually. That is basically happening in pretty much new things that we never thought would look this different. One of the most exciting things happening around us is the car industry. It's getting digitized faster than we know. And in many ways that we'd not even imagined 10 years ago. The driver will get digitized. Autonomous cars. The engine is definitely gone, it's a different kind of an engine. In fact, we'll re-skill a lot of automotive engineers who actually used to work in mechanical things to look at real chemical things like battery technologies and so on. A lot of those things that used to be physical are now in software in the car itself. Media itself got digitized. Think about a physical newspaper, or physical ads in newspapers. Now we talk about virtual ads, the digital ads, they're all over on websites and so on is our digital experience now. Education is no different, you know, we look back at the kind of things we used to do physically with physical things. Their now all digital. The experience has become that digital. And I can go on and on. You look at retail, you look at healthcare, look at a lot of these industries, they all are at the cusp of a digital disruption. And in fact, if you look at the data, everybody wants it. We all want a digital transformation for industries, for companies around us. In fact, the whole idea of a cloud is a highly digitized data center, basically. It's not just about digitizing servers and storage and networks and security, it's about virtualizing, digitizing the entire data center itself. That's what cloud is all about. So we all know that it's a very natural phenomenon, because it's happening around us and that's the obviousness of Nutanix, actually. Why is it actually a good thing? Because obviously it makes anything that we digitize and we work in the digital world, bring 10X more productivity and decision making efficiencies as well. And there are challenges, obviously there are challenges, but before I talk about the challenges of digitization, think about why are things moving this fast? Why are things becoming digitally disrupted quicker than we ever imagined? There are some reasons for it. One of the big reasons is obviously we all know about Moore's Law. The fact that a lot of hardware's been commoditized, and we have really miniaturized hardware. Nutanix today runs on a palm-sized server. Obviously it runs on the other end of the spectrum with high-end IBM power systems, but it also runs on palm-sized servers. Moore's Law has made a tremendous difference in the way we actually think about consuming software itself. Of course, the internet is also a big part of this. The fact that there's a bandwidth glut, there's Trans-Pacific cables and Trans-Atlantic cables and so on, has really connected us a lot faster than we ever imagined, actually, and a lot of this was also the telecom revolution of the '90s where we really produced a ton of glut for the internet itself. There's obviously a more subtle reason as well, because software development is democratizing. There's consumer-grade programming languages that we never imagined 10, 15, 20 years ago, that's making it so much faster to write- >> Speaker 1: 15-20 years ago that's making it so much faster to write code, with this crowdsourcing that never existed before with Githubs and things like that, open source. There's a lot more stuff that's happening that's outside the boundary of a corporation itself, which is making things so much faster in terms of going getting disrupted and writing things at 10x the speed it used to be 20 years ago. There is obviously this technology at the tip of our fingers, and we all want it in our mobile experience while we're driving, while we're in a coffee shop, and so on; and there's a tremendous focus on design on consumer-grade simplicity, that's making digital disruption that much more compressed in some of sense of this whole cycle of creative disruption that we talk about, is compressed because of mobility, because of design, because of API, the fact that machines are talking to machines, developers are talking to developers. We are going and miniaturizing the experience of organizations because we talk about micro-services and small two-pizza teams, and they all want to talk about each other using APIs and so on. Massive influence on this digital disruption itself. Of course, one of the reasons why this is also happening is because we want it faster, we want to consume it faster than ever before. And our attention spans are reducing. I like the fact that not many people are watching their cell phones right now, but you can imagine the multi-tasking mode that we are all in today in our lives, makes us want to consume things at a faster pace, which is one of the big drivers of digital disruption. But most importantly, and this is a very dear slide to me, a lot of this is happening because of infrastructure. And I can't overemphasize the importance of infrastructure. If you look at why did Google succeed, it was the ninth search engine, after eight of them before, and if you take a step back at why Facebook succeeded over MySpace and so on, a big reason was infrastructure. They believed in scale, they believed in low latency, they believed in being able to crunch information, at 10x, 100x, bigger scale than anyone else before. Even in our geopolitical lives, look at why is China succeeding? Because they've made infrastructure seamless. They've basically said look, governance is about making infrastructure seamless and invisible, and then let the businesses flourish. So for all you CIOs out there who actually believe in governance, you have to think about what's my first role? What's my primary responsibility? It's to provide such a seamless infrastructure, that lines of business can flourish with their applications, with their developers that can write code 10x faster than ever before. And a lot of these tenets of infrastructure, the fact of the matter is you need to have this always-on philosophy. The fact that it's breach-safe culture. Or the fact that operating systems are hardware agnostic. A lot of these tenets basically embody what Nutanix really stands for. And that's the core of what we really have achieved in the last eight years and want to achieve in the coming five to ten years as well. There's a nuance, and obviously we talk about digital, we talk about cloud, we talk about everything actually going to the cloud and so on. What are the things that could slow us down? What are the things that challenge us today? Which is the reason for Nutanix? Again, I go back to this very important point that the reason why we think enterprise cloud is a nuanced term, because the word "cloud" itself doesn't solve for a lot of the problems. The public cloud itself doesn't solve for a lot of the problems. One of the big ones, and obviously we face it here in Europe as well, is laws of the land. We have bureaucracy, which we need to deal with and respect; we have data sovereignty and computing sovereignty needs that we need to actually fulfill as well, while we think about going at breakneck speed in terms of disrupting our competitors and so on. So there's laws of the land, there's laws of physics. This is probably one of the big ones for what the architecture of cloud will look like itself, over the coming five to ten years. Our take is that cloud will need to be more dispersed than they have ever imagined, because computing has to be local to business operations. Computing has to be in hospitals and factories and shop floors and power plants and on and on and on... That's where you really can have operations and computing really co-exist together, cause speed is important there as well. Data locality is one of our favorite things; the fact that computing and data have to be local, at least the most relevant data has to be local as well. And the fact that electrons travel way faster when it's actually local, versus when you have to have them go over a Wide Area Network itself; it's one of the big reasons why we think that the cloud will actually be more nuanced than just some large data centers. You need to disperse them, you need to actually think about software (cloud is about software). Whether data plane itself could be dispersed and even miniaturized in small factories and shop floors and hospitals. But the control plane of the cloud is centralized. And that's the way you can have the best of both worlds; the control plane is centralized. You think as if you're managing one massive data center, but it's not because you're really managing hundreds or thousands of these sites. Especially if you think about edge-based computing and IoT where you really have your tentacles in tens of thousands of smaller devices and so on. We've talked about laws of the land, which is going to really make this digital transformation nuanced; laws of physics; and the third one, which is really laws of entropy. These are hackers that do this for adrenaline. These are parochial rogue states. These are parochial geo-politicians, you know, good thing I actually left the torture sign there, because apparently for our creative designer, geo-politics is equal to torture as well. So imagine one bad tweet can actually result in big changes to the way we actually live in this world today. And it's important. Geo-politics itself is digitized to a point where you don't need a ton of media people to go and talk about your principles and what you stand for and what you strategy for, for running a country itself is, and so on. And these are all human reasons, political reasons, bureaucratic reasons, compliance and regulations reasons, that, and of course, laws of physics is yet another one. So laws of physics, laws of the land, and laws of entropy really make us take a step back and say, "What does cloud really mean, then?" Cause obviously we want to digitize everything, and it all should appear like it's invisible, but then you have to nuance it for the Global 5000, the Global 10000. There's lots of companies out there that need to really think about GDPR and Brexit and a lot of the things that you all deal with on an everyday basis, actually. And that's what Nutanix is all about. Balancing what we think is all about technology and balancing that with things that are more real and practical. To deal with, grapple with these laws of the land and laws of physics and laws of entropy. And that's where we believe we need to go and balance the private and the public. That's the architecture, that's the why of Nutanix. To be able to really think about frictionless control. You want things to be frictionless, but you also realize that you are a responsible citizen of this continent, of your countries, and you need to actually do governance of things around you, which is computing governance, and data governance, and so on. So this idea of melding the public and the private is really about melding control and frictionless together. I know these are paradoxical things to talk about like how do you really have frictionless control, but that's the life you all lead, and as leaders we have to think about this series of paradoxes itself. And that's what Nutanix strategy, the roadmap, the definition of enterprise cloud is really thinking about frictionless control. And in fact, if anything, it's one of the things is also very interesting; think about what's disrupting Nutanix as a company? We will be getting disrupted along the way as well. It's this idea of true invisibility, the public cloud itself. I'd like to actually bring on board somebody who I have a ton of respect for, this leader of a massive company; which itself is undergoing disruption. Which is helping a lot of its customers undergo disruption as well, and which is thinking about how the life of a business analyst is getting digitized. And what about the laws of the land, the laws of physics, and laws of entropy, and so on. And we're learning a lot from this partner, massively giant company, called IBM. So without further ado, Bob Picciano. >> Bob Picciano: Thanks, >> Speaker 1: Thank you so much, Bob, for being here. I really appreciate your presence here- >> Bob Picciano: My pleasure! >> Speaker 1: And for those of you who actually don't know Bob, Bob is a Senior VP and General Manager at IBM, and is all things cognitive and obviously- >> Speaker 1: IBM is all things cognitive. Obviously, I learn a lot from a lot of leaders that have spent decades really looking at digital disruption. >> Bob: Did you just call me old? >> Speaker 1: No. (laughing) I want to talk about experience and talking about the meaning of history, because I love history, actually, you know, and I don't want to make you look old actually, you're too young right now. When you talk about digital disruption, we look at ourselves and say, "Look we are not extremely invisible, we are invisible, but we have not made something as invisible as the public clouds itself." And hence as I. But what's digital disruption mean for IBM itself? Now, obviously a lot of hardware is being digitized into software and cloud services. >> Bob: Yep. >> Speaker 1: What does it mean for IBM itself? >> Bob: Yeah, if you allow me to take a step back for a moment, I think there is some good foundational understanding that'll come from a particular point of view. And, you talked about it with the number of these dimensions that are affecting the way businesses need to consider their competitiveness. How they offer their capabilities into the market place. And as you reflected upon IBM, you know, we've had decades of involvement in information technology. And there's a big disruption going on in the information technology space. But it's what I call an accretive disruption. It's a disruption that can add value. If you were to take a step back and look at that digital trajectory at IBM you'd see our involvement with information technology in a space where it was all oriented around adding value and capability to how organizations managed inscale processes. Thinking about the way they were going to represent their businesses in a digital form. We came to call them applications. But it was how do you open an account, how do you process a claim, how do you transfer money, how do you hire an employee? All the policies of a company, the way the people used to do it mechanically, became digital representations. And that foundation of the digital business process is something that IBM helped define. We invented the role of the CIO to help really sponsor and enter in this notion that businesses could re represent themselves in a digital way and that allowed them to scale predictably with the qualities of their brand, from local operations, to regional operations, to international operations, and show up the same way. And, that added a lot of value to business for many decades. And we thrived. Many companies, SAP all thrived during that span. But now we're in a new space where the value of information technology is hitting a new inflection point. Which is not about how you scale process, but how you scale insight, and how you scale wisdom, and how you scale knowledge and learning from those operational systems and the data that's in those operational systems. >> Speaker 1: How's it different from 1993? We're talking about disruption. There was a time when IBM reinvented itself, 20-25 years ago. >> Bob: Right. >> Speaker 1: And you said it's bigger than 25 years ago. Tell us more. >> Bob: You know, it gets down. Everything we know about that process space right down to the very foundation, the very architecture of the CPU itself and the computer architecture, the von Neumann architecture, was all optimized on those relatively static scaled business processes. When you move into the notion where you're going to scale insight, scale knowledge, you enter the era that we call the cognitive era, or the era of intelligence. The algorithms are very different. You know the data semantically doesn't integrate well across those traditional process based pools and reformation. So, new capabilities like deep learning, machine learning, the whole field of artificial intelligence, allows us to reach into that data. Much of it unstructured, much of it dark, because it hasn't been indexed and brought into the space where it is directly affecting decision making processes in a business. And you have to be able to apply that capability to those business processes. You have to rethink the computer, the circuitry itself. You have to think about how the infrastructure is designed and organized, the network that is required to do that, the experience of the applications as you talked about have to be very natural, very engaging. So IBM does all of those things. So as a function of our transformation that we're on now, is that we've had to reach back, all the way back from rethinking the CPU, and what we dedicate our time and attention to. To our services organization, which is over 130,000 people on the consulting side helping organizations add digital intelligence to this notion of a digital business. Because, the two things are really a confluence of what will make this vision successful. >> Speaker 1: It looks like massive amounts of change for half a million people who work with the company. >> Bob: That's right. >> Speaker 1: I'm sure there are a lot of large customers out here, who will also read into this and say, "If IBM feels disrupted ... >> Bob: Uh hm >> Speaker 1: How can we actually stay not vulnerable? Actually there is massive amounts of change around their own competitive landscape as well. >> Bob: Look, I think every company should feel vulnerable right. If you're at this age, this cognitive era, the age of digital intelligence, and you're not making a move into being able to exploit the capabilities of cognition into the business process. You are vulnerable. If you're at that intersection, and your competitor is passing through it, and you're not taking action to be able to deploy cognitive infrastructure in conjunction with the business processes. You're going to have a hard time keeping up, because it's about using the machines to do the training to augment the intelligence of our employees of our professionals. Whether that's a lawyer, or a doctor, an educator or whether that's somebody in a business function, who's trying to make a critical business decision about risk or about opportunity. >> Speaker 1: Interesting, very interesting. You used the word cognitive infrastructure. >> Bob: Uh hm >> Speaker 1: There's obviously computer infrastructure, data infrastructure, storage infrastructure, network infrastructure, security infrastructure, and the core of cognition has to be infrastructure as well. >> Bob: Right >> Speaker 1: Which is one of the two things that the two companies are working together on. Tell us more about the collaboration that we are actually doing. >> Bob: We are so excited about our opportunity to add value in this space, so we do think very differently about the cognitive infrastructure that's required for this next generation of computing. You know I mentioned the original CPU was built for very deterministic, very finite operations; large precision floating point capabilities to be able to accurately calculate the exact balance, the exact amount of transfer. When you're working in the field of AI in cognition. You actually want variable precision. Right. The data is very sparse, as opposed to the way that deterministic or scorecastic operations work, which is very dense or very structured. So the algorithms are redefining the processes that the circuitry actually has to run. About five years ago, we dedicated a huge effort to rethink everything about the chip and what we made to facilitate an orchestra of participation to solve that problem. We all know the GPU has a great benefit for deep learning. But the GPU in many cases, in many architectures, specifically intel architectures, it's dramatically confined by a very small amount of IO bandwidth that intel allows to go on and off the chip. At IBM, we looked at all 686 roughly square millimeters of our chip and said how do we reuse that square area to open up that IO bandwidth? So the innovation of a GPU or a FPGA could really be utilized to it's maximum extent. And we could be an orchestrator of all of the diverse compute that's going to be necessary for AI to really compel these new capabilities. >> Speaker 1: It's interesting that you mentioned the fact that you know power chips have been redefined for the cognitive era. >> Bob: Right, for Lennox for the cognitive era. >> Speaker 1: Exactly, and now the question is how do you make it simple to use as well? How do you bring simplicity which is where ... >> Bob: That's why we're so thrilled with our partnership. Because you talked about the why of Nutanix. And it really is about that empowerment. Doing what's natural. You talked about the benefits of calm and being able to really create that liberation of an information technology professional, whether it's in operations or in development. Having the freedom of action to make good decisions about defining the infrastructure and deploying that infrastructure and not having to second guess the physical limitations of what they're going to have to be dealing with. >> Speaker 1: That's why I feel really excited about the fact that you have the power of software, to really meld the two forms together. The intel form and the power form comes together. And we have some interesting use cases that our CIO Randy Phiffer is also really exploring, is how can a power form serve as a storage form for our intel form. >> Bob: Sure. >> Speaker 1: It can serve files and mocks and things like that. >> Bob: Any data intensive application where we have seen massive growth in our Lennox business, now for our business, Lennox is 20% of the revenue of our power systems. You know, we started enabling native Lennox distributions on top of little Indian ones, on top of the power capabilities just a few years ago, and it's rocketed. And the reason for that if for any data intensive application like a data base, a no sequel database or a structured data base, a dupe in the unstructured space, they typically run about three to four times better price performance on top of Lennox on power, than they will on top of an intel alternative. >> Speaker 1: Fascinating. >> Bob: So all of these applications that we're talking about either create or consume a lot of data, have to manage a lot of flexibility in that space, and power is a tremendous architecture for that. And you mentioned also the cohabitation, if you will, between intel and power. What we want is that optionality, for you to utilize those benefits of the 3X better price performance where they apply and utilize the commodity base where it applies. So you get the cost benefits in that space and the depth and capability in the space for power. >> Speaker 1: Your tongue in cheek remark about commodity intel is not lost on people actually. But tell us about... >> Speaker 1: Intel is not lost on people actually. Tell us about ... Obviously we digitized Linux 10, 15 years ago with [inaudible 00:40:07]. Have you tried to talk about digitizing AIX? That is the core of IBM's business for the last 20, 25, 30 years. >> Bob: Again, it's about this ability to compliment and extend the investments that businesses have made during their previous generations of decision making. This industry loves to talk about shifts. We talked about this earlier. That was old, this is new. That was hard, this is easy. It's not about shift, it's about using the inflection point, the new capability to extend what you already have to make it better. And that's one thing that I must compliment you, and the entire Nutanix organization. It's really empowering those applications as a catalog to be deployed, managed, and integrated in a new way, and to have seamless interoperability into the cloud. We see the AIX workload just having that same benefit for those businesses. And there are many, many 10's of thousands around the world that are critically dependent on every element of their daily operations and productivity of that operating platform. But to introduce that into that network effect as well. >> Speaker 1: Yeah. I think we're looking forward to how we bring the same cloud experience on AIX as well because as a company it keeps us honest when we don't scoff at legacy. We look at these applications the last 10, 15, 20 years and say, "Can we bring them into the new world as well?" >> Bob: Right. >> Speaker 1: That's what design is all about. >> Bob: Right. >> Speaker 1: That's what Apple did with musics. We'll take an old world thing and make it really new world. >> Bob: Right. >> Speaker 1: The way we consume things. >> Bob: That governance. The capability to help protect against the bad actors, the nefarious entropy players, as you will. That's what it's all about. That's really what it takes to do this for the enterprise. It's okay, and possibly easier to do it in smaller islands of containment, but when you think about bringing these class of capabilities into an enterprise, and really helping an organization drive both the flexibility and empowerment benefits of that, but really be able to depend upon it for international operations. You need that level of support. You need that level of capability. >> Speaker 1: Awesome. Thank you so much Bob. Really appreciate you coming. [crosstalk 00:42:14] Look forward to your [crosstalk 00:42:14]. >> Bob: Cheers. Thank you. >> Speaker 1: Thanks again for all of you. I know that people are sitting all the way up there as well, which is remarkable. I hope you can actually see some of the things that Sunil and the team will actually bring about, talk about live demos. We do real stuff here, which is truly live. I think one of the requests that I have is help us help you navigate the digital disruption that's upon you and your competitive landscape that's around you that's really creating that disruption. Thank you again for being here, and welcome again to Acropolis. >> Speaker 3: Ladies and gentlemen, please welcome Chief Product and Development Officer, Nutanix Sunil Potti. >> Sunil Potti: Okay, so I'm going to just jump right in because I know a bunch of you guys are here to see the product as well. We are a lot of demos lined up for you guys, and we'll try to mix in the slides, and the demos as well. Here's just an example of the things I always bring up in these conferences to look around, and say in the last few months, are we making progress in simplifying infrastructure? You guys have heard this again and again, this has been our mantra from the beginning, that the hotter things get, the more differentiated a company like Nutanix can be if we can make things simple, or keep things simple. Even though I like this a lot, we found something a little bit more interesting, I thought, by our European marketing team. If you guys need these tea bags, which you will need pretty soon. It's a new tagline for the company, not really. I thought it was apropos. But before I get into the product and the demos, to give you an idea. Every time I go to an event you find ways to memorialize the event. You meet people, you build relationships, you see something new. Last night, nothing to do with the product, I sat beside someone. It was a customer event. I had no idea who I was sitting beside. He was a speaker. How many of you guys know him, by the way? Sir Ranulph Fiennes. Few hands. Good for you. I had no idea who I was sitting beside. I said, "Oh, somebody called Sir. I should be respectful." It's kind of hard for me to be respectful, but I tried. He says, "No, I didn't do anything in the sense. My grandfather was knighted about 100 years ago because he was the governor of Antigua. And when he dies, his son becomes." And apparently Sir Ranulph's dad also died in the war, and so that's how he is a sir. But then I started looking it up because he's obviously getting ready to present. And the background for him is, in my opinion, even though the term goes he's the World's Greatest Living Explorer. I would have actually called it the World's Number One Stag, and I'll tell you why. Really, you should go look it up. So this guy, at the age of 21, gets admitted to Special Forces. If you're from the UK, this is as good as it gets, SAS. Six, seven years into it, he rebels, helps out his local partner because he doesn't like a movie who's building a dam inside this pretty village. And he goes and blows up a dam, and he's thrown out of that Special Forces. Obviously he's in demolitions. Goes all the way. This is the '60's, by the way. Remember he's 74 right now. The '60's he goes to Oman, all by himself, as the only guy, only white guy there. And then around the '70's, he starts truly exploring, truly exploring. And this is where he becomes really, really famous. You have to go see this in real life, when he sees these videos to really appreciate the impact of this guy. All by himself, he's gone across the world. He's actually gone across Antarctica. Now he tells me that Antarctica is the size of China and India put together, and he was prepared for -50 to 60 degrees, and obviously he got -130 degrees. Again, you have to see the videos, see his frostbite. Two of his fingers are cut off, by the way. He hacksawed them himself. True story. And then as he, obviously, aged, his body couldn't keep up with him, but his will kept up with him. So after a recent heart attack, he actually ran seven marathons. But most importantly, he was telling me this story, at 65 he wanted to do something different because his body was letting him down. He said, "Let me do something easy." So he climbed Mount Everest. My point being, what is this related to Nutanix? Is that if Nutanix is a company, without technology, allows to spend more time on life, then we've accomplished a piece of our vision. So keep that in mind. Keep that in mind. Now comes the boring part, which is the product. The why, what, how of Nutanix. Neeris talked about this. We have two acts in this company. Invisible Infrastructure was what we started off. You heard us talk about it. How did we do it? Using one-click technologies by converging infrastructure, computer storage, virtualization, et cetera, et cetera. What we are now about is about changing the game. Saying that just like we'd applicated what powers Google and Amazon inside the data center, could we now make them all invisible? Whether it be inside or outside, could we now make clouds invisible? Clouds could be made invisible by a new level of convergence, not about computer storage, but converging public and private, converging CAPEX and OPEX, converging consumption models. And there, beyond our core products, Acropolis and Prism, are these new products. As you know, we have this core thesis, right? The core thesis says what? Predictable workloads will stay inside the data center, elastic workloads will go outside, as long as the experience on both sides is the same. So if you can genuinely have a cloud-like experience delivered inside a data center, then that's the right a- >> Speaker 1: Genuinely have a cloud like experience developed inside the data center. And that's the right answer of predictable workloads. Absolutely the answer of elastic workloads, doesn't matter whether security or compliance. Eventually a public cloud will have a data center right beside your region, whether through local partner or a top three cloud partner. And you should use it as your public cloud of choice. And so, our goal is to ensure that those two worlds are converged. And that's what Calm does, and we'll talk about that. But at the same time, what we found in late 2015, we had a bunch of customers come to us and said "Look, I love this, I love the fact that you're going to converge public and private and all that good stuff. But I have these environments and these apps that I want to be delivered as a service but I want the same operational tooling. I don't want to have two different environments but I don't want to manage my data centers. Especially my secondary data centers, DR data centers." And that's why we created Xi, right? And you'll hear a lot more about this, obviously it's going to start off in the U.S but very rapidly launch in Europe, APJ globally in the next 9-12 months. And so we'll spend some quality time on those products as well today. So, from the journey that we're at, we're starting with the score cloud that essentially says "Look, your public and private needs to be the same" We call that the first instantiation of your cloud architectures and we're essentially as a company, want to build this enterprise cloud operating system as a fabric across public and private. But that's just the starting point. The starting point evolves to the score architecture that we believe that the cloud is being dispersed. Just like you have a public and a private cloud in the core data centers and so forth, you'll need a similar experience inside your remote office branch office, inside your DR data centers, inside your branches, and it won't stop there. It'll go all the way to the edge. All we're already seeing this right? Not just in the army where your forward operating bases in Afghanistan having a three note cluster sitting inside a tent. But we're seeing this in a variety of enterprise scenarios. And here's an example. So, here's a customer, global oil and gas company, has couple of primary data centers running Nutanix, uses GCP as a core public cloud platform, has a whole bunch of remote offices, but it also has this interesting new edge locations in the form of these small, medium, large size rigs. And today, they're in the process of building a next generation cloud architecture that's completely dispersed. They're using one node, coming out on version 5.5 with Nutanix. They're going to use two nodes, they're going to throw us three nods, multicultural architectures. Day one, they're going to centrally manage it using Prism, with one click upgrades, right? And then on top of that, they're also now provisioning using Calm, purpose built apps for the various locations. So, for example, there will be a re control app at the edge, there's an exploration data lag in Google and so forth. My point being that increasingly this architecture that we're talking about is happening in real time. It's no longer just an existing cellular civilization data center that's being replatformed to look like a private cloud and so forth, or a hybrid cloud. But the fact that you're going into this multi cloud era is getting excel bated, the more someone consumes AWL's GCP or any public cloud, the more they're excel bating their internal transformation to this multi cloud architecture. And so that's what we're going to talk about today, is this construct of ONE OS and ONE Click, and when you think about it, every company has a standard stack. So, this is the only slide you're going to see from me today that's a stack, okay? And if you look at the new release coming out, version 5.5, it's coming out imminently, easiest way to say it is that it's got a ton of functionality. We've jammed as much as we can onto one slide and then build a product basically, okay? But I would encourage you guys to check out the release, it's coming out shortly. And we can go into each and every feature here, we'd be spending a lot of time but the way that we look at building Nutanix products as many of you know, it is not feature at a time. It's experience at a time. And so, when you really look at Nutanix using a lateral view, and that's how we approach problems with our customers and partners. We think about it as a life cycle, all the way from learning to using, operating, and then getting support and experiences. And today, we're going to go through each of these stages with you. And who better to talk about it than our local version of an architect, Steven Poitras please come up on stage. I don't know where you are, Steven come on up. You tucked your shirt in? >> Speaker 2: Just for you guys today. >> Speaker 1: Okay. Alright. He's sort of putting on his weight. I know you used a couple of tight buckles there. But, okay so Steven so I know we're looking for the demo here. So, what we're going to do is, the first step most of you guys know this, is we've been quite successful with CE, it's been a great product. How many of you guys like CE? Come on. Alright. I know you had a hard time downloading it yesterday apparently, there's a bunch of guys had a hard time downloading it. But it's been a great way for us not just to get you guys to experience it, there's more than 25,000 downloads and so forth. But it's also a great way for us to see new features like IEME and so forth. So, keep an eye on CE because we're going to if anything, explode the way that we actually use as a way to get new features out in the next 12 months. Now, one thing beyond CE that we did, and this was something that we did about ... It took us about 12 months to get it out. While people were using CE to learn a lot, a lot of customers were actually getting into full blown competitive evals, right? Especially with hit CI being so popular and so forth. So, we came up with our own version called X-Ray. >> Speaker 2: Yup. >> Speaker 1: What does X-Ray do before we show it? >> Speaker 2: Yeah. Absolutely. So, if we think about back in the day we were really the only ACI platform out there on the market. Now there are a few others. So, to basically enable the customer to objectively test these, we came out with X-Ray. And rather than talking about the slide let's go ahead and take a look. Okay, I think it's ready. Perfect. So, here's our X-Ray user interface. And essentially what you do is you specify your targets. So, in this case we have a Nutanix 80150 as well as some of our competitors products which we've actually tested. Now we can see on the left hand side here we see a series of tests. So, what we do is we go through and specify certain workloads like OLTP workloads, database colocation, and while we do that we actually inject certain test cases or scenarios. So, this can be snapshot or component failures. Now one of the key things is having the ability to test these against each other. So, what we see here is we're actually taking a OLTP workload where we're running two virtual machines, and then we can see the IOPS OLTP VM's are actually performing here on the left hand side. Now as we're actually go through this test we perform a series of snapshots, which are identified by these red lines here. Now as you can see, the Nutanix platform, which is shown by this blue line, is purely consistent as we go through this test. However, our competitor's product actually degrades performance overtime as these snapshots are taken. >> Speaker 1: Gotcha. And some of these tests by the way are just not about failure or benchmarking, right? It's a variety of tests that we have that makes real life production workloads. So, every couple of months we actually look at our production workloads out there, subset those two cases and put it into X-Ray. So, X-Ray's one of those that has been more recently announced into the public. But it's already gotten a lot of update. I would strongly encourage you, even if you an existing Nutanix customer. It's a great way to keep us honest, it's a great way for you to actually expand your usage of Nutanix by putting a lot of these real life tests into production, and as and when you look at new alternatives as well, there'll be certain situations that we don't do as well and that's a great way to give us feedback on it. And so, X-Ray is there, the other one, which is more recent by the way is a fact that most of you has spent many days if not weeks, after you've chosen Nutanix, moving non-Nutanix workloads. I.e. VMware, on three tier architectures to Atrio Nutanix. And to do that, we took a hard look and came out with a new product called Xtract. >> Speaker 2: Yeah. So essentially if we think about what Nutanix has done for the data center really enables that iPhone like experience, really bringing it simplicity and intuitiveness to the data center. Now what we wanted to do is to provide that same experience for migrating existing workloads to us. So, with Xtract essentially what we've done is we've scanned your existing environment, we've created design spec, we handled the migration process ... >> Steven: ... environment, we create a design spec. We handle for the migration process as well as the cut over. Now, let's go ahead and take a look in our extract user interface here. What we can see is we have a source environment. In this case, this is a VC environment. This can be any VC, whether it's traditional three tier or hypherconverged. We also see our Nutanix target environments. Essentially, these are our AHV target clusters where we're going to be migrating the data and performing the cut over to you. >> Speaker 2: Gotcha. Steven: The first thing that we do here is we go ahead and create a new migration plan. Here, I'm just going to specify this as DB Wave 2. I'll click okay. What I'm doing here is I'm selecting my target Nutanix cluster, as well as my target Nutanix container. Once I'll do that, I'll click next. Now in this case, we actually like to do it big. We're actually going to migrate some production virtual machines over to this target environment. Here, I'm going to select a few windows instances, which are in our database cluster. I'll click next. At this point, essentially what's occurring is it's going through taking a look at these virtual machines as well as taking a look at the target environment. It takes a look at the resources to ensure that we actually have enough, an ample capacity to facilitate the workload. The next thing we'll do is we'll go ahead and type in our credentials here. This is actually going to be used for logging into the virtual machine. We can do a new device driver installation, as well as get any static IP configuration. Well specify our network mapping. Then from there, we'll click next. What we'll do is we'll actually save and start. This will go through create the migration plan. It'll do some analysis on these virtual machines to ensure that we can actually log in before we actually start migrating data. Here we have a migration, which has been in progress. We can see we have a few virtual machines, obviously some Linux, some Windows here. We've cut over a few. What we do to actually cut over these VMS, is go ahead select the VMS- Speaker 2: This is the actual task of actually doing the final stage of cut over. Steven: Yeah, exactly. That's one of the nice things. Essentially, we can migrate the data whenever we want. We actually hook into the VADP API's to do this. Then every 10 minutes, we send over a delta to sync the data. Speaker 2: Gotcha, gotcha. That's how one click migration can now be possible. This is something that if you guys haven't used this, this has been out in the wild, just for a month or so. Its been probably one of our bestselling, because it's free, bestselling features of the recent product release. I've had customers come to me and say, "Look, there are situations where its taken us weeks to move data." That is now minutes from the operator perspective. Forget where the director, or the VP, it's the line architecture and operator that really loves these tools, which is essentially the core of Nutanix. That's one of our core things, is to make sure that if we can keep the engineer and the architect truly happy, then everything else will be fine for us, right? That's extract. Then we have a lot of things, right? We've done the usual things, there's a tunnel functionality on day zero, day one, day two, kind of capabilities. Why don't we start with something around Prism Central, now that we can do one click PC installs? We can do PC scale outs, we can go from managing thousands of VMS, tens of thousands of VMS, while doing all the one click operations, right? Steven: Yep. Speaker 2: Why don't we take a quick look at what's new in Prism Central? Steven: Yep. Absolutely. Here, we can see our Prism element interface. As you mentioned, one of the key things we added here was the ability to deploy Prism Central very simply just with a few clicks. We'll actually go through a distributed PC scale of deployment here. Here, we're actually going to deploy, as this is a new instance. We're going to select our 5.5 version. In this case, we're going to deploy a scale out Prism Central cluster. Obviously, availability and up-time's very critical for us, as we're mainly distributed systems. In this case we're going to deploy a scale-out PC cluster. Here we'll select our number of PC virtual machines. Based upon the number of VMS, we can actually select our size of VM that we'd deploy. If we want to deploy 25K's report, we can do that as well. Speaker 2: Basically a thousand to tens of thousands of VM's are possible now. Steven: Yep. That's a nice thing is you can start small, and then scale out as necessary. We'll select our PC network. Go ahead and input our IP address. Now, we'll go to deploy. Now, here we can see it's actually kicked off the deployment, so it'll go provision these virtual machines to apply the configuration. In a few minutes, we'll be up and running. Speaker 2: Right. While Steven's doing that, one of the things that we've obviously invested in is a ton of making VM operations invisible. Now with Calm's, what we've done is to up level that abstraction. Two applications. At the end of the day, more and more ... when you go to AWS, when you go to GCP, you go to [inaudible 01:04:56], right? The level of abstractions now at an app level, it's cloud formations, and so forth. Essentially, what Calm's able to do is to give you this marketplace that you can go in and self-service [inaudible 01:05:05], create this internal cloud like environment for your end users, whether it be business owners, technology users to self-serve themselves. The process is pretty straightforward. You, as an operator, or an architect, or [inaudible 01:05:16] create these blueprints. Consumers within the enterprise, whether they be self-service users, whether they'll be end business users, are able to consume them for a simple marketplace, and deploy them on whether it be a private cloud using Nutanix, or public clouds using anything with public choices. Then, as a single frame of glass, as operators you're doing conversed operations, at an application centric level between [inaudible 01:05:41] across any of these clouds. It's this combination of producer, consumer, operator in a curated sense. Much like an iPhone with an app store. It's the core construct that we're trying to get with Calm to up level the abstraction interface across multiple clouds. Maybe we'll do a quick demo of this, and then get into the rest of the stuff, right? Steven: Sure. Let's check it out. Here we have our Prism Central user interface. We can see we have two Nutanix clusters, our cloudy04 as well as our Power8 cluster. One of the key things here that we've added is this apps tab. I'm clicking on this apps tab, we can see that we have a few [inaudible 01:06:19] solutions, we have a TensorFlow solution, a [inaudible 01:06:22] et cetera. The nice thing about this is, this is essentially a marketplace where vendors as well as developers could produce these blueprints for consumption by the public. Now, let's actually go ahead and deploy one of these blueprints. Here we have a HR employment engagement app. We can see we have three different tiers of services part of this. Speaker 2: You need a lot of engagement at HR, you know that. Okay, keep going. Steven: Then the next thing we'll do here is we'll go and click on. Based upon this, we'll specify our blueprint name, HR app. The nice thing when I'm deploying is I can actually put in back doors. We'll click clone. Now what we can see here is our blueprint editor. As a developer, I could actually go make modifications, or even as an in-user given the simple intuitive user interface. Speaker 2: This is the consumers side right here, but it's also the [inaudible 01:07:11]. Steven: Yep, absolutely. Yeah, if I wanted to make any modifications, I could select the tier, I could scale out the number of instances, I could modify the packages. Then to actually deploy, all I do is click launch, specify HR app, and click create. Speaker 2: Awesome. Again, this is coming in 5.5. There's one other feature, by the way, that is coming in 5.5 that's surrounding Calm, and Prism Pro, and everything else. That seems to be a much awaited feature for us. What was that? Steven: Yeah. Obviously when we think about multi-tenant, multi-cloud role based access control is a very critical piece of that. Obviously within the organization, we're going to have multiple business groups, multiple units. Our back's a very critical piece. Now, if we go over here to our projects, we can see in this scenario we just have a single project. What we've added is if you want to specify certain roles, in this case we're going to add our good friend John Doe. We can add them, it could be a user or group, but then we specify their role. We can give a developer the ability to edit and create these blueprints, or consumer the ability to actually provision based upon. Speaker 2: Gotcha. Basically in 5.5, you'll have role based access control now in Prism and Calm burned into that, that I believe it'll support custom role shortly after. Steven: Yep, okay. Speaker 2: Good stuff, good stuff. I think this is where the Nutanix guys are supposed to clap, by the way, so that the rest of the guys can clap. Steven: Thank you, thank you. Okay. What do we have? Speaker 2: We have day one stuff, obviously there's a ton of stuff that's coming in core data path capabilities that most of you guys use. One of the most popular things is synchronous replication, especially in Europe. Everybody wants to do [Metro 01:08:49] for whatever reason. But we've got something new, something even more enhanced than Metro, right? Steven: Yep. Speaker 2: Do you want to talk a little bit about it? Steven: Yeah, let's talk about it. If we think about what we had previously, we started out with a synchronous replication. This is essentially going to be your higher RPO. Then we moved into Metro cluster, which was RPO zero. Those are two ins of the gamete. What we did is we introduced new synchronous replication, which really gives you the best of both worlds where you have very, very decreased RPO's, but zero impact in line mainstream performance. Speaker 2: That's it. Let's show something. Steven: Yeah, yeah. Let's do it. Here, we're back at our Prism Element interface. We'll go over here. At this point, we provisioned our HR app, the next thing we need to do is to protect that data. Let's go here to protection domain. We'll create a new PD for our HR app. Speaker 2: You clearly love HR. Steven: Spent a lot of time there. Speaker 2: Yeah, yeah, yeah. Steven: Here, you can see we have our production lamp DBVM. We'll go ahead and protect that entity. We can see that's protected. The next thing we'll do is create a schedule. Now, what would you say would be a good schedule we should actually shoot for? Speaker 2: I don't know, 15 minutes? Steven: 15 minutes is not bad. But I ... Section 7 of 13 [01:00:00 - 01:10:04] Section 8 of 13 [01:10:00 - 01:20:04] (NOTE: speaker names may be different in each section) Speaker 1: ... 15 minutes. Speaker 2: 15 minutes is not bad, but I think the people here deserve much better than that, so I say let's shoot for ... what about 15 seconds? Speaker 1: Yeah. They definitely need a bathroom break, so let's do 15 seconds. Speaker 2: Alright, let's do 15 seconds. Speaker 1: Okay, sounds good. Speaker 2: K. Then we'll select our retention policy and remote cluster replicate to you, which in this case is wedge. And we'll go ahead and create the schedule here. Now at this point we can see our protection domain. Let's go ahead and look at our entities. We can see our database virtual machine. We can see our 15 second schedule, our local snapshots, as well as we'll start seeing our remote snapshots. Now essentially what occurs is we take two very quick snapshots to essentially see the initial data, and then based upon that then we'll start taking our continuous 15 second snaps. Speaker 1: 15 seconds snaps, and obviously near sync has less of impact than synchronous, right? From an architectural perspective. Speaker 2: Yeah, and that's a nice thing is essentially within the cluster it's truly pure synchronous, but externally it's just a lagged a-sync. Speaker 1: Gotcha. So there you see some 15 second snapshots. So near sync is also built into five-five, it's a long-awaited feature. So then, when we expand in the rest of capabilities, I would say, operations. There's a lot of you guys obviously, have started using Prism Pro. Okay, okay, you can clap. You can clap. It's okay. It was a lot of work, by the way, by the core data pad team, it was a lot of time. So Prism Pro ... I don't know if you guys know this, Prism Central now run from zero percent to more than 50 percent attach on install base, within 18 months. And normally that's a sign of true usage, and true value being supported. And so, many things are new in five-five out on Prism Pro starting with the fact that you can do data[inaudible 01:11:49] base lining, alerting, so that you're not capturing a ton of false positives and tons of alerts. We go beyond that, because we have this core machine-learning technology power, we call it cross fit. And, what we've done is we've used that as a foundation now for pretty much all kinds of operations benefits such as auto RCA, where you're able to actually map to particular [inaudible 01:12:12] crosses back to who's actually causing it whether it's the network, a computer, and so forth. But then the last thing that we've also done in five-five now that's quite different shading, is the fact that you can now have a lot of these one-click recommendations and remediations, such as right-sizing, the fact that you can actually move around [inaudible 01:12:28] VMs, constrained VMs, and so forth. So, I now we've packed a lot of functionality in Prism Pro, so why don't we spend a couple of minutes quickly giving a sneak peak into a few of those things. Speaker 2: Yep, definitely. So here we're back at our Prism Central interface and one of the things we've added here, if we take a look at one of our clusters, we can see we have this new anomalies portion here. So, let's go ahead and select that and hop into this. Now let's click on one of these anomaly events. Now, essentially what the system does is we monitor all the entities and everything running within the system, and then based upon that, we can actually determine what we expect the band of values for these metrics to be. So in this scenario, we can see we have a CPU usage anomaly event. So, normal time, we expect this to be right around 86 to 100 percent utilization, but at this point we can see this is drastically dropped from 99 percent to near zero. So, this might be a point as an administrator that I want to go check out this virtual machine, ensure that certain services and applications are still up and running. Speaker 1: Gotcha, and then also it changes the baseline based on- Speaker 2: Yep. Yeah, so essentially we apply machine-learning techniques to this, so the system will dynamically adjust based upon the value adjustment. Speaker 1: Gotcha. What else? Speaker 2: Yep. So the other thing here that we mentioned was capacity planning. So if we go over here, we can take a look at our runway. So in this scenario we have about 30 days worth of runway, which is most constrained by memory. Now, obviously, more nodes is all good for everyone, but we also want to ensure that you get the maximum value on your investment. So here we can actually see a few recommendations. We have 11 overprovision virtual machines. These are essentially VMs which have more resources than are necessary. As well as 19 inactives, so these are dead VMs essentially that haven't been powered on and not utilized. We can also see we have six constrained, as well as one bully. So, constrained VMs are essentially VMs which are requesting more resources than they actually have access to. This could be running at 100 percent CPU utilization, or 100 percent memory, or storage utilization. So we could actually go in and modify these. Speaker 1: Gotcha. So these are all part of the auto remediation capabilities that are now possible? Speaker 2: Yeah. Speaker 1: What else, do you want to take reporting? Speaker 2: Yeah. Yeah, so I know reporting is a very big thing, so if we think about it, we can't rely on an administrator to constantly go into Prism. We need to provide some mechanism to allow them to get emailed reports. So what we've done is we actually autogenerate reports which can be sent via email. So we'll go ahead and add one of these sample reports which was created today. And here we can actually get specific detailed information about our cluster without actually having to go into Prism to get this. Speaker 1: And you can customize these reports and all? Speaker 2: Yep. Yeah, if we hop over here and click on our new report, we can actually see a list of views we could add to these reports, and we can mix and match and customize as needed. Speaker 1: Yeah, so that's the operational side. Now we also have new services like AFS which has been quite popular with many of you folks. We've had hundreds of customers already on it live with SMB functionality. You want to show a couple of things that is new in five-five? Speaker 2: Yeah. Yep, definitely. So ... let's wait for my screen here. So one of the key things is if we looked at that runway tab, what we saw is we had over a year's worth of storage capacity. So, what we saw is customers had the requirement for filers, they had some excess storage, so why not actually build a software featured natively into the cluster. And that's essentially what we've done with AFS. So here we can see we have our AFS cluster, and one of the key things is the ability to scale. So, this particular cluster has around 3.1 or 3.16 billion files, which are running on this AFS cluster, as well as around 3,000 active concurrent sessions. Speaker 1: So basically thousands of concurrent sessions with billions of files? Speaker 2: Yeah, and the nice thing with this is this is actually only a four node Nutanix cluster, so as the cluster actually scales, these numbers will actually scale linearly as a function of those nodes. Speaker 1: Gotcha, gotcha. There's got to be one more bullet here on this slide so what's it about? Speaker 2: Yeah so, obviously the initial use case was realistically for home folders as well as user profiles. That was a good start, but it wasn't the only thing. So what we've done is we've actually also introduced important and upcoming release of NFS. So now you can now use NFS to also interface with our [crosstalk 01:16:44]. Speaker 1: NFS coming soon with AFS by the way, it's a big deal. Big deal. So one last thing obviously, as you go operationalize it, we've talked a lot of things on features and functions but one of the cool things that's always been seminal to this company is the fact that we all for really good customer service and support experience. Right now a lot of it is around the product, the people, the support guys, and so forth. So fundamentally to the product we have found ways using Pulse to instrument everything. With Pulse HD that has been allowed for a little bit longer now. We have fine grain [inaudible 01:17:20] around everything that's being done, so if you turn on this functionality you get a lot of information now that we built, we've used when you make a phone call, or an email, and so forth. There's a ton of context now available to support you guys. What we've now done is taken that and are now externalizing it for your own consumption, so that you don't have to necessarily call support. You can log in, look at your entire profile across your own alerts, your own advisories, your own recommendations. You can look at collective intelligence now that's coming soon which is the fact that look, here are 50 other customers just like you. These are the kinds of customers that are using workloads like you, what are their configuration profiles? Through this centralized customer insights portal you going to get a lot more insight, not just about your own operations, but also how everybody else is also using it. So let's take a quick look at that upcoming functionality. Speaker 2: Yep. Absolutely. So this is our customer 360 portal, so as [inaudible 01:18:18] mentioned, as a customer I can actually log in here, I can get a high-level overview of my existing environment, my cases, the status of those cases, as well as any relevant announcements. So, here based upon my cluster version, if there's any updates which are available, I can then see that here immediately. And then one of the other things that we've added here is this insights page. So essentially this is information that previously support would leverage to essentially proactively look out to the cluster, but now we've exposed this to you as the customer. So, clicking on this insights tab we can see an overview of our environment, in this case we have three Nutanix clusters, right around 550 virtual machines, and over here what's critical is we can actually see our cases. And one of the nice things about this is these area all autogenerated by the cluster itself, so no human interaction, no manual intervention was required to actually create these alerts. The cluster itself will actually facilitate that, send it over to support, and then support can get back out to you automatically. Speaker 1: K, so look for customer insights coming soon. And obviously that's the full life cycle. One cool thing though that's always been unique to Nutanix was the fact that we had [inaudible 01:19:28] security from day one built-in. And [inaudible 01:19:31] chunk of functionality coming in five-five just around this, because every release we try to insert more and more security capabilities, and the first one is around data. What are we doing? Speaker 2: Yeah, absolutely. So previously we had support for data at rest encryption, but this did have the requirement to leverage self-encrypting drives. These can be very expensive, so what we've done, typical to our fashion is we've actually built this in natively via software. So, here within Prism Element, I can go to data at rest encryption, and then I can go and edit this configuration here. Section 8 of 13 [01:10:00 - 01:20:04] Section 9 of 13 [01:20:00 - 01:30:04] (NOTE: speaker names may be different in each section) Steve: Encryption and then I can go and edit this configuration here. From here I could add my CSR's. I can specify KMS server and leverage native software base encryption without the requirement of SED's. Sunil: Awesome. So data address encryption [inaudible 01:20:15] coming soon, five five. Now data security is only one element, the other element was around network security obviously. We've always had this request about what are we doing about networking, what are we doing about network, and our philosophy has always been simple and clear, right. It is that the problem in networking is not the data plan. Problem in networking is the control plan. As in, if a packing loss happens to the top of an ax switch, what do we do? If there's a misconfigured board, what do we do? So we've invested a lot in full blown new network visualization that we'll show you a preview of that's all new in five five, but then once you can visualize you can take action, so you can actually using our netscape API's now in five five. You can optovision re lands on the switch, you can update reps on your load balancing pools. You can update obviously rules on your firewall. And then we've taken that to the next level, which is beyond all that, just let you go to AWS right now, what do you do? You take 100 VM's, you put it in an AWS security group, boom. That's how you get micro segmentation. You don't need to buy expensive products, you don't need to virtualize your network to get micro segmentation. That's what we're doing with five five, is built in one click micro segmentation. That's part of the core product, so why don't we just quickly show that. Okay? Steve: Yeah, let's take a look. So if we think about where we've been so far, we've done the comparison test, we've done a migration over to a Nutanix. We've deployed our new HR app. We've protected it's data, now we need to protect the network's. So one of the things you'll see that's new here is this security policies. What we'll do is we'll actually go ahead and create a new security policy and we'll just say this is HR security policy. We'll specify the application type, which in this case is HR. Sunil: HR of course. Steve: Yep and we can see our app instance is automatically populated, so based upon the number of running instances of that blueprint, that would populate that drop-down. Now we'll go ahead and click next here and what we can see in the middle is essentially those three tiers that composed that app blueprint. Now one of the important things is actually figuring out what's trying to communicate with this within my existing environment. So if I take a look over here on my left hand side, I can essentially see a few things. I can see a Ha Proxy load balancer is trying to communicate with my app here, that's all good. I want to allow that. I can see some sort of monitoring service is trying to communicate with all three of the tiers. That's good as well. Now the last thing I can see here is this IP address which is trying to access my database. Now, that's not designed and that's not supposed to happen, so what we'll do is we'll actually take a look and see what it's doing. Now hopping over to this database virtual machine or the hack VM, what we can see is it's trying to perform a brute force log in attempt to my MySQL database. This is not good. We can see obviously it can connect on the socket, however, it hasn't guessed the right password. In order to lock that down, we'll go back to our policies here and we're going to click deny. Once we've done that, we'll click next and now we'll go to Apply Now. Now we can see our newly created security policy and if we hop back over to this VM, we can now see it's actually timing out and what this means is that it's not able to communicate with that database virtual machine due to micro segmentation actively blocking that request. Sunil: Gotcha and when you go back to the Prism site, essentially what we're saying now is, it's as simple as that, to set up micro segmentation now inside your existing clusters. So that's one click micro segmentation, right. Good stuff. One other thing before we let Steve walk off the stage and then go to the bathroom, but is you guys know Steve, you know he spends a lot time in the gym, you do. Right. He and I share cubes right beside each other by the way just if you ever come to San Jose Nutanix corporate headquarters, you're always welcome. Come to the fourth floor and you'll see Steve and Sunil beside each other, most of the time I'm not in the cube, most of the time he's in the gym. If you go to his cube, you'll see all kinds of stuff. Okay. It's true, it's true, but the reason why I brought this up, was Steve recently became a father, his first kid. Oh by the way this is, clicker, this is how his cube looks like by the way but he left his wife and his new born kid to come over here to show us a demo, so give him a round of applause. Thank you, sir. Steve: Cool, thanks, Sunil. That was fun. Sunil: Thank you. Okay, so lots of good stuff. Please try out five five, give us feedback as you always do. A lot of sessions, a lot of details, have fun hopefully for the rest of the day. To talk about how their using Nutanix, you know here's one of our favorite customers and partners. He normally comes with sunglasses, I've asked him that I have to be the best looking guy on stage in my keynotes, so he's going to try to reduce his charm a little bit. Please come on up, Alessandro. Thank you. Alessandro R.: I'm delighted to be here, thank you so much. Sunil: Maybe we can stand here, tell us a little bit about Leonardo. Alessandro R.: About Leonardo, Leonardo is a key actor of the aerospace defense and security systems. Helicopters, aircraft, the fancy systems, the fancy electronics, weapons unfortunately, but it's also a global actor in high technology field. The security information systems division that is the division I belong to, 3,000 people located in Italy and in UK and there's several other countries in Europe and the U.S. $1 billion dollar of revenue. It has a long a deep experience in information technology, communications, automation, logical and physical security, so we have quite a long experience to expand. I'm in charge of the security infrastructure business side. That is devoted to designing, delivering, managing, secure infrastructures services and secure by design solutions and platforms. Sunil: Gotcha. Alessandro R.: That is. Sunil: Gotcha. Some of your focus obviously in recent times has been delivering secure cloud services obviously. Alessandro R.: Yeah, obviously. Sunil: Versus traditional infrastructure, right. How did Nutanix help you in some of that? Alessandro R.: I can tell something about our recent experience about that. At the end of two thousand ... well, not so recent. Sunil: Yeah, yeah. Alessandro R.: At the end of 2014, we realized and understood that we had to move a step forward, a big step and a fast step, otherwise we would drown. At that time, our newly appointed CEO confirmed that the IT would be a core business to Leonardo and had to be developed and grow. So we decided to start our digital transformation journey and decided to do it in a structured and organized way. Having clear in mind our targets. We launched two programs. One analysis program and one deployments programs that were essentially transformation programs. We had to renew ourselves in terms of service models, in terms of organization, in terms of skills to invest upon and in terms of technologies to adopt. We were stacking a certification of technologies that adopted, companies merged in the years before and we have to move forward and to rationalize all these things. So we spent a lot of time analyzing, comparing technologies, and evaluating what would fit to us. We had two main targets. The first one to consolidate and centralize the huge amount of services and infrastructure that were spread over 52 data centers in Italy, for Leonardo itself. The second one, to update our service catalog with a bunch of cloud services, so we decided to update our data centers. One of our building block of our new data center architecture was Nutanix. We evaluated a lot, we had spent a lot of time in analysis, so that wasn't a bet, but you are quite pioneers at those times. Sunil: Yeah, you took a lot of risk right as an Italian company- Alessandro R.: At this time, my colleague used to say, "Hey, Alessandro, think it over, remember that not a CEO has ever been fired for having chose IBM." I apologize, Bob, but at that time, when Nutanix didn't run on [inaudible 01:29:27]. We have still a good bunch of [inaudible 01:29:31] in our data center, so that will be the chance to ... Audience Member: [inaudible 01:29:37] Alessandro R.: So much you must [inaudible 01:29:37] what you announced it. Sunil: So you took a risk and you got into it. Alessandro R.: Yes, we got into, we are very satisfied with the results we have reached. Sunil: Gotcha. Alessandro R.: Most of the targets we expected to fulfill have come and so we are satisfied, but that doesn't mean that we won't go on asking you a big discount ... Sunil: Sure, sure, sure, sure. Alessandro R.: On price list. Sunil: Sure, sure, so what's next in terms of I know there are some interesting stuff that you're thinking. Alessandro R.: The next- Section 9 of 13 [01:20:00 - 01:30:04] Section 10 of 13 [01:30:00 - 01:40:04] (NOTE: speaker names may be different in each section) Speaker 1: So what's next, in terms of I know you have some interesting stuff that you're thinking of. Speaker 2: The next, we have to move forward obviously. The name Leonardo is inspired to Leonardo da Vinci, it was a guy that in terms of innovation and technology innovation had some good ideas. And so, I think, that Leonardo with Nutanix could go on in following an innovation target and following really mutual ... Speaker 1: Partnership. Speaker 2: Useful partnership, yes. We surely want to investigate the micro segmentation technologies you showed a minute ago because we have some looking, particularly by the economical point of view ... Speaker 1: Yeah, the costs and expenses. Speaker 2: And we have to give an alternative to the technology we are using. We want to use more intensively AHV, again as an alternative solution we are using. We are selecting a couple of services, a couple of quite big projects to build using AHV talking of Calm we are very eager to understand the announcement that they are going to show to all of us because the solution we are currently using is quite[crosstalk 01:31:30] Speaker 1: Complicated. Speaker 2: Complicated, yeah. To move a step of automation to elaborate and implement[inaudible 01:31:36] you spend 500 hours of manual activities that's nonsense so ... Speaker 1: Manual automation. Speaker 2: (laughs) Yes, and in the end we are very interested also in the prism features, mostly the new features that you ... Speaker 1: Talked about. Speaker 2: You showed yesterday in the preview because one bit of benefit that we received from the solution in the operations field means a bit plus, plus to our customer and a distinctive plus to our customs so we are very interested in that ... Speaker 1: Gotcha, gotcha. Thanks for taking the risk, thanks for being a customer and partner. Speaker 2: It has been a pleasure. Speaker 1: Appreciate it. Speaker 2: Bless you, bless you. Speaker 1: Thank you. So, you know obviously one OS, one click was one of our core things, as you can see the tagline doesn't stop there, it also says "any cloud". So, that's the rest of the presentation right now it's about; what are we doing, to now fulfill on that mission of one OS, one cloud, one click with one support experience across any cloud right? And there you know, we talked about Calm. Calm is not only just an operational experience for your private cloud but as you can see it's a one-click experience where you can actually up level your apps, set up blueprints, put SLA's and policies, push them down to either your AWS, GCP all your [inaudible 01:33:00] environments and then on day one while you can do one click provisioning, day two and so forth you will see new and new capabilities such as, one-click migration and mobility seeping into the product. Because, that's the end game for Calm, is to actually be your cloud autonomy platform right? So, you can choose the right cloud for the right workload. And talk about how they're building a multi cloud architecture using Nutanix and partnership a great pleasure to introduce my other good Italian friend Daniele, come up on stage please. From Telecom Italia Sparkle. How are you sir? Daniele: Not too bad thank you. Speaker 1: You want an espresso, cappuccino? Daniele: No, no later. Speaker 1: You all good? Okay, tell us a little about Sparkle. Daniele: Yeah, Sparkle is a fully owned subsidy of Telecom Italia group. Speaker 1: Mm-hmm (affirmative) Daniele: Spinned off in 2003 with the mission to develop the wholesale and multinational corporate and enterprise business abroad. Huge network, as you can see, hundreds of thousands of kilometers of fiber optics spread between; south east Asia to Europe to the U.S. Most of it proprietary part of it realized on some running cables. Part of them proprietary part of them bilateral part of them[inaudible 01:34:21] with other operators. 37 countries in which we have offices in the world, 700 employees, lean and clean company ... Speaker 1: Wow, just 700 employees for all of this. Daniele: Yep, 1.4 billion revenues per year more or less. Speaker 1: Wow, are you a public company? Daniele: No, fully owned by TIM so far. Speaker 1: So, what is your experience with Nutanix so far? Daniele: Well, in a way similar to what Alessandro was describing. To operate such a huge network as you can see before, and to keep on bringing revenues for the wholesale market, while trying to turn the bar toward the enterprise in a serious way. Couple of years ago the management team realized that we had to go through a serious transformation, not just technological but in terms of the way we build the services to our customers. In terms of how we let our customer feel the Sparkle experience. So, we are moving towards cloud but we are moving towards cloud with connectivity attached to it because it's in our cord as a provider of Telecom services. The paradigm that is driving today is the on-demand, is the dynamic and in order to get these things we need to move to software. Most of the network must become invisible as the Nutanix way. So, we decided instead of creating patchworks onto our existing systems, infrastructure, OSS, BSS and network systems, to build a new data center from scratch. And the paradigm being this new data center, the mantra was; everything is software designed, everything must be easy to manage, performance capacity planning, everything must be predictable and everything to be managed by few people. Nutanix is at the moment the baseline of this data center for what concern, let's say all the new networking tools, meaning as the end controllers that are taking care of automation and programmability of the network. Lifecycle service orchestrator, network orchestrator, cloud automation and brokerage platform and everything at the moment runs on AHV because we are forcing our vendors to certify their application on AHV. The only stack that is not at the moment AHV based is on a specific cloud platform because there we were really looking for the multi[inaudible 01:37:05]things that you are announcing today. So, we hope to do the migration as soon as possible. Speaker 1: Gotcha, gotcha. And then looking forward you're going to build out some more data center space, expose these services Daniele: Yeah. Speaker 1: For the customers as well as your internal[crosstalk 01:37:21] Daniele: Yeah, basically yes for sure we are going to consolidate, to invest more in the data centers in the markets on where we are leader. Italy, Turkey and Greece we are big data centers for [inaudible 01:37:33] and cloud, but we believe that the cloud with all the issues discussed this morning by Diraj, that our locality, customer proximity ... we think as a global player having more than 120 pops all over the world, which becomes more than 1000 in partnerships, that the pop can easily be transformed in a data center, so that we want to push the customer experience of what we develop in our main data centers closer to them. So, that we can combine traditional infrastructure as a service with the new connectivity services every single[inaudible 01:38:18] possibly everything running. Speaker 1: I mean, it makes sense, I mean I think essentially in some ways to summarize it's the example of an edge cloud where you're pushing a micro-cloud closer to the customers edge. Daniele: Absolutely. Speaker 1: Great stuff man, thank you so much, thank you so much. Daniele: Pleasure, pleasure. Thank you. Speaker 1: So, you know a couple of other things before we get in the next demo is the fact that in addition to Calm from multi-cloud management we have Zai, we talked about for extended enterprise capabilities and something for you guys to quickly understand why we have done this. In a very simple way is if you think about your enterprise data center, clearly you have a bunch of apps there, a bunch of public clouds and when you look at the paradigm you currently deploy traditional apps, we call them mode one apps, SAP, Exchange and so forth on your enterprise. Then you have next generation apps whether it be [inaudible 01:39:11] space, whether it be Doob or whatever you want to call it, lets call them mode two apps right? And when you look at these two types of apps, which are the predominant set, most enterprises have a combination of mode one and mode two apps, most public clouds primarily are focused, initially these days on mode two apps right? And when people talk about app mobility, when people talk about cloud migration, they talk about lift and shift, forklift [inaudible 01:39:41]. And that's a hard problem I mean, it's happening but it's a hard problem and ends up that its just not a one time thing. Once you've forklift, once you move you have different tooling, different operation support experience, different stacks. What if for some of your applications that mattered ... Section 10 of 13 [01:30:00 - 01:40:04] Section 11 of 13 [01:40:00 - 01:50:04] (NOTE: speaker names may be different in each section) Speaker 1: What if, for some of your applications that matter to you, that are your core enterprise apps that you can retain the same toolimg, the same operational experience and so forth. And that is what we achieve to do with Xi. It is truly making hybrid invisible, which is a next act for this company. It'll take us a few years to really fulfill the vision here, but the idea here is that you shouldn't think about public cloud as a different silo. You should think of it as an extension of your enterprise data centers. And for any services such as DR, whether it would be dev test, whether it be back-up, and so-forth. You can use the same tooling, same experience, get a public cloud-like capability without lift and shift, right? So it's making this lift and shift invisible by, soft of, homogenizing the data plan, the network plan, the control plan is what we really want to do with Xi. Okay? And we'll show you some more details here. But the simplest way to understand this is, think of it as the iPhone, right? D has mentioned this a little bit. This is how we built this experience. Views IOS as the core, IP, we wrap it up with a great package called the iPhone. But then, a few years into the iPhone era, came iTunes and iCloud. There's no apps, per se. That's fused into IOS. And similarly, think about Xi that way. The more you move VMs, into an internet-x environment, stuff like DR comes burnt into the fabric. And to give us a sneak peek into a bunch of the com and Xi cable days, let me bring back Binny who's always a popular guys on stage. Come on up, Binny. I'd be surprised in Binny untucked his shirt. He's always tucking in his shirt. Binny Gill: Okay, yeah. Let's go. Speaker 1: So first thing is com. And to show how we can actually deploy apps, not just across private and public clouds, but across multiple public clouds as well. Right? Binny Gill: Yeah, basically, you know com is about simplifying the disparity between various public clouds out there. So it's very important for us to be able to take one application blueprint and then quickly deploy in whatever cloud of your choice. Without understanding how one cloud is different. Speaker 1: Yeah, that's the goal. Binny Gill: So here, if you can see, I have market list. And by the way, this market list is a great partner community interest. And every single sort of apps come up here. Let me take a sample app here, Hadoop. And click launch. And now where do you want me to deploy? Speaker 1: Let's start at GCP. Binny Gill: GCP, okay. So I click on GCP, and let me give it a name. Hadoop. GCP. Say 30, right. Clear. So this is one click deployment of anything from our marketplace on to a cloud of your choice. Right now, what the system is doing, is taking the intent-filled description of what the application should look like. Not just the infrastructure level but also within the merchant machines. And it's creating a set of work flows that it needs to go deploy. So as you can see, while we were talking, it's loading the application. Making sure that the provisioning workflows are all set up. Speaker 1: And so this is actually, in real time it's actually extracting out some of the GCP requirements. It's actually talking to GCP. Setting up the constructs so that we can actually push it up on the GCP personally. Binny Gill: Right. So it takes a couple of minutes. It'll provision. Let me go back and show you. Say you worked with deploying AWS. So you Hadoop. Hit address. And that's it. So again, the same work flow. Speaker 1: Same process, I see. Binny Gill: It's going to now deploy in AWS. Speaker 1: See one of the keys things is that we actually extracted out all the isms of each of these clouds into this logical substrate. Binny Gill: Yep. Speaker 1: That you can now piggy-back off of. Binny Gill: Absolutely. And it makes it extremely simple for the average consumer. And you know we like more cloud support here over time. Speaker 1: Sounds good. Binny Gill: Now let me go back and show you an app that I had already deployed. Now 13 days ago. It's on GCP. And essentially what I want to show you is what is the view of the application. Firstly, it shows you the cost summary. Hourly, daily, and how the cost is going to look like. The other is how you manage it. So you know one click ways of upgrading, scaling out, starting, deleting, and so on. Speaker 1: So common actions, but independent of the type of clouds. Binny Gill: Independent. And also you can act with these actions over time. Right? Then services. It's learning two services, Hadoop slave and Hadoop master. Hadoop slave runs fast right now. And auditing. It shows you what are the important actions you've taken on this app. Not just, for example, on the IS front. This is, you know how the VMs were created. But also if you scroll down, you know how the application was deployed and brought up. You know the slaves have to discover each other, and so on. Speaker 1: Yeah got you. So find game invisibility into whatever you were doing with clouds because that's been one of the complaints in general. Is that the cloud abstractions have been pretty high level. Binny Gill: Yeah. Speaker 1: Yeah. Binny Gill: Yeah. So that's how we make the differences between the public clouds. All go away for the Indias of ... Speaker 1: Got you. So why don't we now give folks ... Now a lot of this stuff is coming in five, five so you'll see that pretty soon. You'll get your hands around it with AWS and tree support and so forth. What we wanted to show you was emerging alpha version that is being baked. So is a real production code for Xi. And why don't we just jump right in to it. Because we're running short of time. Binny Gill: Yep. Speaker 1: Give folks a flavor for what the production level code is already being baked around. Binny Gill: Right. So the idea of the design is make sure it's not ... the public cloud is no longer any different from your private cloud. It's a true seamless extension of your private cloud. Here I have my test environment. As you can see I'm running the HR app. It has the DB tier and the Web tier. Yeah. Alright? And the DB tier is running Oracle DB. Employee payroll is the Web tier. And if you look at the availability zones that I have, this is my data center. Now I want to protect this application, right? From disaster. What do I do? I need another data center. Speaker 1: Sure. Binny Gill: Right? With Xi, what we are doing is ... You go here and click on Xi Cloud Services. Speaker 1: And essentially as the slide says, you are adding AZs with one click. Binny Gill: Yeps so this is what I'm going to do. Essentially, you log in using your existing my.nutanix.com credentials. So here I'm going to use my guest credentials and log in. Now while I'm logging in what's happening is we are creating a seamless network between the two sides. And then making the Xi cloud availability zone appear. As if it was my own. Right? Speaker 1: Gotcha. Binny Gill: So in a couple of seconds what you'll notice this list is here now I don't have just one availability zone, but another one appears. Speaker 1: So you have essentially, real time now, paid a one data center doing an availability zone. Binny Gill: Yep. Speaker 1: Cool. Okay. Let's see what else we can do. Binny Gill: So now you think about VR setup. Now I'm armed with another data center, let's do DR Center. Now DR set-up is going to be extremely simple. Speaker 1: Okay but it's also based because on the fact that it is the same stack on both sides. Right? Binny Gill: It's the same stack on both sides. We have a secure network lane connecting the two sides, on top of the secure network plane. Now data can flow back and forth. So now applications can go back and forth, securely. Speaker 1: Gotcha, okay. Let's look at one-click DR. Binny Gill: So for one-click DR set-up. A couple of things we need to know. One is a protection rule. This is the RPO, where does it apply to? Right? And the connection of the replication. The other one is recovery plans, in case disaster happens. You know, how do I bring up my machines and application work-order and so on. So let me first show you, Protection Rule. Right? So here's the protection rule. I'll create one right now. Let me call it Platinum. Alright, and source is my own data center. Destination, you know Xi appears now. Recovery point objective, so maybe in a one hour these snapshots going to the public cloud. I want to retain three in the public side, three locally. And now I select what are the entities that I want to protect. Now instead of giving VMs my name, what I can do is app type employee payroll, app type article database. It covers both the categories of the application tiers that I have. And save. Speaker 1: So one of the things here, by the way I don't know if you guys have noticed this, more and more of Nutanix's constructs are being eliminated to become app-centric. Of course is VM centric. And essentially what that allows one to do is to create that as the new service-level API/abstraction. So that under the cover over a period of time, you may be VMs today, maybe containers tomorrow. Or functions, the day after. Binny Gill: Yep. What I just did was all that needs to be done to set up replication from your own data center to Xi. So we started off with no data center to actually replication happening. Speaker 1: Gotcha. Binny Gill: Okay? Speaker 1: No, no. You want to set up some recovery plans? Binny Gill: Yeah so now set up recovery plan. Recovery plans are going to be extremely simple. You select a bunch of VMs or apps, and then there you can say what are the scripts you want to run. What order in which you want to boot things. And you know, you can set up access these things with one click monthly or weekly and so on. Speaker 1: Gotcha. And that sets up the IPs as well as subnets and everything. Binny Gill: So you have the option. You can maintain the same IPs on frame as the move to Xi. Or you can make them- Speaker 1: Remember, you can maintain your own IPs when you actually use the Xi service. There was a lot of things getting done to actually accommodate that capability. Binny Gill: Yeah. Speaker 1: So let's take a look at some of- Binny Gill: You know, the same thing as VPC, for example. Speaker 1: Yeah. Binny Gill: You need to possess on Xi. So, let's create a recovery plan. A recovery plan you select the destination. Where does the recovery happen. Now, after that Section 11 of 13 [01:40:00 - 01:50:04] Section 12 of 13 [01:50:00 - 02:00:04] (NOTE: speaker names may be different in each section) Speaker 1: ... does the recovery happen. Now, after that you have to think of what is the runbook that you want to run when disaster happens, right? So you're preparing for that, so let me call "HR App Recovery." The next thing is the first stage. We're doing the first stage, let me add some entities by categories. I want to bring up my database first, right? Let's click on the database and that's it. Speaker 2: So essentially, you're building the script now. Speaker 1: Building the script- Speaker 2: ... on the [inaudible 01:50:30] Speaker 1: ... but in a visual way. It's simple for folks to understand. You can add custom script, add delay and so on. Let me add another stage and this stage is about bringing up the web tier after the database is up. Speaker 2: So basically, bring up the database first, then bring up the web tier, et cetera, et cetera, right? Speaker 1: That's it. I've created a recovery plan. I mean usually it's complicated stuff, but we made it extremely simple. Now if you click on "Recovery Points," these are snapshots. Snapshots of your applications. As you can see, already the system has taken three snapshots in response to the protection rule that we had created just a couple minutes ago. And these are now being seeded to Xi data centers. Of course this takes time for seeding, so what I have is a setup already and that's the production environment. I'll cut over to that. This is my production environment. Click "Explore," now you see the same application running in production and I have a few other VMs that are not protected. Let's go to "Recovery Points." It has been running for sometime, these recover points are there and they have been replicated to Xi. Speaker 2: So let's do the failover then. Speaker 1: Yeah, so to failover, you'll have to go to Xi so let me login to Xi. This time I'll use my production account for logging into Xi. I'm logging in. The first thing that you'll see in Xi is a dashboard that gives you a quick summary of what your DR testing has been so far, if there are any issues with the replication that you have and most importantly the monthly charges. So right now I've spent with my own credit card about close to 1,000 bucks. You'll have to refund it quickly. Speaker 2: It depends. If the- Speaker 1: If this works- Speaker 2: IF the demo works. Speaker 1: Yeah, if it works, okay. As you see, there are no VMs right now here. If I go to the recovery points, they are there. I can click on the recovery plan that I had created and let's see how hard it's going to be. I click "Failover." It says three entities that, based on the snapshots, it knows that it can recovery from source to destination, which is Xi. And one click for the failover. Now we'll see what happens. Speaker 2: So this is essentially failing over my production now. Speaker 1: Failing over your production now. [crosstalk 01:52:53] If you click on the "HR App Recovery," here you see now it started the recovery plan. The simple recovery plan that we had created, it actually gets converted to a series of tasks that the system has to do. Each VM has to be hydrated, powered on in the right order and so on and so forth. You don't have to worry about any of that. You can keep an eye on it. But in the meantime, let's talk about something else. We are doing failover, but after you failover, you run in Xi as if it was your own setup and environment. Maybe I want to create a new VM. I create a VM and I want to maybe extend my HR app's web tier. Let me name it as "HR_Web_3." It's going to boot from that disk. Production network, I want to run it on production network. We have production and test categories. This one, I want to give it employee payroll category. Now it applies the same policies as it's peers will. Here, I'm going to create the VM. As you can see, I can already see some VMs coming up. There you go. So three VMs from on-prem are now being filled over here while the fourth VM that I created is already being powered. Speaker 2: So this is basically realtime, one-click failover, while you're using Xi for your [inaudible 01:54:13] operations as well. Speaker 1: Exactly. Speaker 2: Wow. Okay. Good stuff. What about- Speaker 1: Let me add here. As the other cloud vendors, they'll ask you to make your apps ready for their clouds. Well we tell our engineers is make our cloud ready for your apps. So as you can see, this failover is working. Speaker 2: So what about failback? Speaker 1: All of them are up and you can see the protection rule "platinum" has been applied to all four. Now let's look at this recovery plan points "HR_Web_3" right here, it's already there. Now assume the on-prem was already up. Let's go back to on-prem- Speaker 2: So now the scenario is, while Binny's coming up, is that the on-prem has come back up and we're going to do live migration back as in a failback scenario between the data centers. Speaker 1: And how hard is it going to be. "HR App Recovery" the same "HR App Recovery", I click failover and the system is smart enough to understand the direction is reversed. It's also smart enough to figure out "Hey, there are now the four VMs are there instead of three." Xi to on-prem, one-click failover again. Speaker 2: And it's rerunning obviously the same runbook but in- Speaker 1: Same runbook but the details are different. But it's hidden from the customer. Let me go to the VMs view and do something interesting here. I'll group them by availability zone. Here you go. As you can see, this is a hybrid cloud view. Same management plane for both sides public and private. There are two availability zones, the Xi availability zone is in the cloud- Speaker 2: So essentially you're moving from the top- Speaker 1: Yeah, top- Speaker 2: ... to the bottom. Speaker 1: ... to the bottom. Speaker 2: That's happening in the background. While this is happening, let me take the time to go and look at billing in Xi. Speaker 1: Sure, some of the common operations that you can now see in a hybrid view. Speaker 2: So you go to "Billing" here and first let me look at my account. And account is a simple page, I have set up active directory and you can add your own XML file, upload it. You can also add multi-factor authentication, all those things are simple. On the billing side, you can see more details about how did I rack up $966. Here's my credit card. Detailed description of where the cost is coming from. I can also download previous versions, builds. Speaker 1: It's actually Nutanix as a service essentially, right? Speaker 2: Yep. Speaker 1: As a subscription service. Speaker 2: Not only do we go to on-prem as you can see, while we were talking, two VMs have already come back on-prem. They are powered off right now. The other two are on the wire. Oh, there they are. Speaker 1: Wow. Speaker 2: So now four VMs are there. Speaker 1: Okay. Perfect. Sometimes it works, sometimes it doesn't work, but it's good. Speaker 2: It always works. Speaker 1: Always works. All right. Speaker 2: As you can see the platinum protection rule is now already applied to them and now it has reversed the direction of [inaudible 01:57:12]- Speaker 1: Remember, we showed one-click DR, failover, failback, built into the product when Xi ships to any Nutanix fabric. You can start with DSX on premise, obviously when you failover to Xi. You can start with AHV, things that are going to take the same paradigm of one-click operations into this hybrid view. Speaker 2: Let's stop doing lift and shift. The era has come for click and shift. Speaker 1: Binny's now been promoted to the Chief Marketing Officer, too by the way. Right? So, one more thing. Speaker 2: Okay. Speaker 1: You know we don't stop any conferences without a couple of things that are new. The first one is something that we should have done, I guess, a couple of years ago. Speaker 2: It depends how you look at it. Essentially, if you look at the cloud vendors, one of the key things they have done is they've built services as building blocks for the apps that run on top of them. What we have done at Nutanix, we've built core services like block services, file services, now with Calm, a marketplace. Now if you look at [inaudible 01:58:14] applications, one of the core building pieces is the object store. I'm happy to announce that we have the object store service coming up. Again, in true Nutanix fashion, it's going to be elastic. Speaker 1: Let's- Speaker 2: Let me show you. Speaker 1: Yeah, let's show it. It's something that is an object store service by the way that's not just for your primary, but for your secondary. It's obviously not just for on-prem, it's hybrid. So this is being built as a next gen object service, as an extension of the core fabric, but accommodating a bunch of these new paradigms. Speaker 2: Here is the object browser. I've created a bunch of buckets here. Again, object stores can be used in various ways: as primary object store, or for secondary use cases. I'll show you both. I'll show you a Hadoop use case where Hadoop is using this as a primary store and a backup use case. Let's just jump right in. This is a Hadoop bucket. AS you can see, there's a temp directory, there's nothing interesting there. Let me go to my Hadoop VM. There it is. And let me run a Hadoop job. So this Hadoop job essentially is going to create a bunch of files, write them out and after that do map radius on top. Let's wait for the job to start. It's running now. If we go back to the object store, refresh the page, now you see it's writing from benchmarks. Directory, there's a bunch of files that will write here over time. This is going to take time. Let's not wait for it, but essentially, it is showing Hadoop that uses AWS 3 compatible API, that can run with our object store because our object store exposes AWS 3 compatible APIs. The other use case is the HYCU backup. As you can see, that's a- Section 12 of 13 [01:50:00 - 02:00:04] Section 13 of 13 [02:00:00 - 02:13:42] (NOTE: speaker names may be different in each section) Vineet: This is the hycu back up ... As you can see, that's a back-up software that can back-up WSS3. If you point it to Nutanix objects or it can back-up there as well. There are a bunch of back-up files in there. Now, object stores, it's very important for us to be able to view what's going on there and make sure there's no objects sprawled because once it's easy to write objects, you just accumulate a lot of them. So what we wanted to do, in true Nutanix style, is give you a quick overview of what's happening with your object store. So here, as you can see, you can look at the buckets, where the load is, you can look at the bucket sizes, where the data is, and also what kind of data is there. Now this is a dashboard that you can optimize, and customize, for yourself as well, right? So that's the object store. Then we go back here, and I have one more thing for you as well. Speaker 2: Okay. Sounds good. I already clicked through a slide, by the way, by mistake, but keep going. Vineet: That's okay. That's okay. It is actually a quiz, so it's good for people- Speaker 2: Okay. Sounds good. Vineet: It's good for people to have some clues. So the quiz is, how big is my SAP HANA VM, right? I have to show it to you before you can answer so you don't leak the question. Okay. So here it is. So the SAP HANA VM here vCPU is 96. Pretty beefy. Memory is 1.5 terabytes. The question to all of you is, what's different in this screen? Speaker 2: Who's a real Prism user here, by the way? Come on, it's got to be at least a few. Those guys. Let's see if they'll notice something. Vineet: What's different here? Speaker 3: There's zero CVM. Vineet: Zero CVM. Speaker 2: That's right. Yeah. Yeah, go ahead. Vineet: So, essentially, in the Nutanix fabric, every server has to run a [inaudible 02:01:48] machine, right? That's where the storage comes from. I am happy to announce the Acropolis Compute Cloud, where you will be able to run the HV on servers that are storage-less, and add it to your existing cluster. So it's a compute cloud that now can be managed from Prism Central, and that way you can preserve your investments on your existing server farms, and add them to the Nutanix fabric. Speaker 2: Gotcha. So, essentially ... I mean, essentially, imagine, now that you have the equivalent of S3 and EC2 for the enterprise now on Premisis, like you have the equivalent compute and storage services on JCP and AWS, and so forth, right? So the full flexibility for any kind of workload is now surely being available on the same Nutanix fabric. Thanks a lot, Vineet. Before we wrap up, I'd sort of like to bring this home. We've announced a pretty strategic partnership with someone that has always inspired us for many years. In fact, one would argue that the genesis of Nutanix actually was inspired by Google and to talk more about what we're actually doing here because we've spent a lot of time now in the last few months to really get into the product capabilities. You're going to see some upcoming capabilities and 55X release time frame. To talk more about that stuff as well as some of the long-term synergies, let me invite Bill onstage. C'mon up Bill. Tell us a little bit about Google's view in the cloud. Bill: First of all, I want to compliment the demo people and what you did. Phenomenal work that you're doing to make very complex things look really simple. I actually started several years ago as a product manager in high availability and disaster recovery and I remember, as a product manager, my engineers coming to me and saying "we have a shortage of our engineers and we want you to write the fail-over routines for the SAP instance that we're supporting." And so here's the PERL handbook, you know, I haven't written in PERL yet, go and do all that work to include all the network setup and all that work, that's amazing, what you are doing right there and I think that's the spirit of the partnership that we have. From a Google perspective, obviously what we believe is that it's time now to harness the power of scale security and these innovations that are coming out. At Google we've spent a lot of time in trying to solve these really large problems at scale and a lot of the technology that's been inserted into the industry right now. Things like MapReduce, things like TenserFlow algorithms for AI and things like Kubernetes and Docker were first invented at Google to solve problems because we had to do it to be able to support the business we have. You think about search, alright? When you type in search terms within the search box, you see a white screen, what I see is all the data-center work that's happening behind that and the MapReduction to be able to give you a search result back in seconds. Think about that work, think about that process. Taking and pursing those search terms, dividing that over thousands of [inaudible 02:05:01], being able to then search segments of the index of the internet and to be able to intelligent reduce that to be able to get you an answer within seconds that is prioritized, that is sorted. How many of you, out there, have to go to page two and page three to get the results you want, today? You don't because of the power of that technology. We think it's time to bring that to the consumer of the data center enterprise space and that's what we're doing at Google. Speaker 2: Gotcha, man. So I know we've done a lot of things now over the last year worth of collaboration. Why don't we spend a few minutes talking through a couple things that we're started on, starting with [inaudible 02:05:36] going into com and then we'll talk a little bit about XI. Bill: I think one of the advantages here, as we start to move up the stack and virtualize things to your point, right, is virtual machines and the work required of that still takes a fair amount of effort of which you're doing a lot to reduce, right, you're making that a lot simpler and seamless across both On-Prem and the cloud. The next step in the journey is to really leverage the power of containers. Lightweight objects that allow you to be able to head and surface functionality without being dependent upon the operating system or the VM to be able to do that work. And then having the orchestration layer to be able to run that in the context of cloud and On-Prem We've been very successful in building out the Kubernetes and Docker infrastructure for everyone to use. The challenge that you're solving is how to we actually bridge the gap. How do we actually make that work seamlessly between the On-Premise world and the cloud and that's where our partnership, I think, is so valuable. It's cuz you're bringing the secret sauce to be able to make that happen. Speaker 2: Gotcha, gotcha. One last thing. We talked about Xi and the two companies are working really closely where, essentially the Nutanix fabric can seamlessly seep into every Google platform as infrastructure worldwide. Xi, as a service, could be delivered natively with GCP, leading to some additional benefits, right? Bill: Absolutely. I think, first and foremost, the infrastructure we're building at scale opens up all sorts of possibilities. I'll just use, maybe, two examples. The first one is network. If you think about building out a global network, there's a lot of effort to do that. Google is doing that as a byproduct of serving our consumers. So, if you think about YouTube, if you think about there's approximately a billion hours of YouTube that's watched every single day. If you think about search, we have approximately two trillion searches done in a year and if you think about the number of containers that we run in a given week, we run about two billion containers per week. So the advantage of being able to move these workloads through Xi in a disaster recovery scenario first is that you get to take advantage of the scale. Secondly, it's because of the network that we've built out, we had to push the network out to the edge. So every single one of our consumers are using YouTube and search and Google Play and all those services, by the way we have over eight services today that have more than a billion simultaneous users, you get to take advantage of that network capacity and capability just by moving to the cloud. And then the last piece, which is a real advantage, we believe, is that it's not just about the workloads you're moving but it's about getting access to new services that cloud preventers, like Google, provide. For example, are you taking advantage like the next generation Hadoop, which is our big query capability? Are you taking advantage of the artificial intelligence derivative APIs that we have around, the video API, the image API, the speech-to-text API, mapping technology, all those additional capabilities are now exposed to you in the availability of Google cloud that you can now leverage directly from systems that are failing over and systems that running in our combined environment. Speaker 2: A true converged fabric across public and private. Bill: Absolutely. Speaker 2: Great stuff Bill. Thank you, sir. Bill: Thank you, appreciate it. Speaker 2: Good to have you. So, the last few slides. You know we've talked about, obviously One OS, One Click and eCloud. At the end of the day, it's pretty obvious that we're evaluating the move from a form factor perspective, where it's not just an OS across multiple platforms but it's also being distributed genuinely from consuming itself as an appliance to a software form factor, to subscription form factor. What you saw today, obviously, is the fact that, look you know we're still continuing, the velocity has not slowed down. In fact, in some cases it's accelerated. If you ask my quality guys, if you ask some of our customers, we're coming out fast and furious with a lot of these capabilities. And some of this directly reflects, not just in features, but also in performance, just like a public cloud, where our performance curve is going up while our price-performance curve is being more attractive over a period of time. And this is balancing it with quality, it is what differentiates great companies from good companies, right? So when you look at the number of nodes that have been shipping, it was around ten more nodes than where we were a few years ago. But, if you look at the number of customer-found defects, as a percentage of number of nodes shipped it is not only stabilized, it has actually been coming down. And that's directly reflected in the NPS part. That most of you guys love. How many of you guys love your Customer Support engineers? Give them a round of applause. Great support. So this balance of velocity, plus quality, is what differentiates a company. And, before we call it a wrap, I just want to leave you with one thing. You know, obviously, we've talked a lot about technology, innovation, inspiration, and so forth. But, as I mentioned, from last night's discussion with Sir Ranulph, let's think about a few things tonight. Don't take technology too seriously. I'll give you a simple story that he shared with me, that puts things into perspective. The year was 1971. He had come back from Aman, from his service. He was figuring out what to do. This was before he became a world-class explorer. 1971, he had a job interview, came down from Scotland and applied for a role in a movie. And he failed that job interview. But he was selected from thousands of applicants, came down to a short list, he was a ... that's a hint ... he was a good looking guy and he lost out that role. And the reason why I say this is, if he had gotten that job, first of all I wouldn't have met him, but most importantly the world wouldn't have had an explorer like him. The guy that he lost out to was Roger Moore and the role was for James Bond. And so, when you go out tonight, enjoy with your friends [inaudible 02:12:06] or otherwise, try to take life a little bit once upon a time or more than once upon a time. Have fun guys, thank you. Speaker 5: Ladies and gentlemen please make your way to the coffee break, your breakout sessions will begin shortly. Don't forget about the women's lunch today, everyone is welcome. Please join us. You can find the details in the mobile app. Please share your feedback on all sessions in the mobile app. There will be prizes. We will see you back here and 5:30, doors will open at 5, after your last breakout session. Breakout sessions will start sharply at 11:10. Thank you and have a great day. Section 13 of 13 [02:00:00 - 02:13:42]

>> Voiceover: Live from San Francisco, it's theCUBE covering Samsung Developer's Conference 2017, brought you by Samsung. (electronic music) >> Hello, everyone. Welcome to the Cube's exclusive coverage of the Samsung Developer Conference, here in San Francisco at Moscone West. I'm John Furrier, co-founder of SiliconANGLE media, co-host of theCUBE. I'm here with Gregarious Narain, who's the co-founder of Before Alpha, an old friend of mine who introduced me to pod-casting back in 2004, right when the MP3 was put into the RSS feed. The early days of blogging, the early days of social. You're one of the most prolific social engineers I know. You've been there from day one. Great to see you. >> Yeah, you too, man. Long time. >> What a wave it's been. >> I know. >> Web 2.0, you were at the front end of creating with-- >> Fortunately they didn't make a 3.0. [Both Chuckle] >> Thank God, because Web 2.0 bursted. But those were the days, I mean, just think back, okay, Web 1.0 post-bubble burst, Web 2.0 you were part of a crew of folks. We were all small community at the time, really kind of rubbing nickels together trying to make things happen. You know, back then TechCrunch was formed, PodTech was formed, you had your venture going on, and we all were, before social media existed, we were doing stuff. Scoble was brought down from Microsoft with my start-up, PodTech. But, we were all kind of trying to figure out this new infrastructure. And then the bubbling burst a little bit, but it ended up turning out to be true that social infrastructure was created. Facepost we saw pre-Facebook was obsolete; MySpace. But the social graph, okay, that extended out from RSS with enabled blogging created some great innovations. We're seeing the value of interest graphs develop. >> Yeah. >> And a term that I coined, called the Value-Graph is now extending on top of the interest graph. Some term that we call in theCUBE which is a new form of collaboration is happening. You're riding this new wave, you've got your new firm. You're leading companies through transformation. What's your take of the Samsungs of the world, Apple, Amazon, Microsoft, Google. You got a lot of these old tech guards. >> Yeah. >> Trying to be consumer companies and infrastructure companies, B-to-B means B-to-C. But B-to-B is 'boring to boring'. >> Yeah. >> We don't want B-to-B anymore, we want the new. >> Gregarious: That's right. >> Everything to everything. >> Gregarious: Yeah. >> Exciting to exciting. >> I think, you know, you nailed a lot of the points, I think, that are really interesting, because, you know, innovation is really about sort of like, blending cultural change and technological change together, right? And forming new things. And it usually is a succession of small iterations, And some moon shots, right? And I think like what Samsung's doing that's really interesting is that they bring all that stuff online in real time. Like, we don't wait, you know, ten years to hear about what the next innovation is. It's popping out before you even warm up your other phone, right? I think, you know, in the States, we're almost at a little bit of a disadvantage in seeing the breadth of Samsung, because like such of their footprint is actually significantly bigger. It's not nearly as adopted here, but I think as, you know, this, the theme today was the intelligence of things, really. I think it was a really powerful idea really. >> And they're onstage with Google, you see the relationship with Google, shining forward, I see a lot of big applause there, Google, also Android, not Apple, no iOS. >> Yeah, yeah. >> But this speaks to the consumer company of Samsung Hardware, even their IOT they are under the hood. >> Right. >> Geeky stuff, they put extra security modules in there, for device security, because now the hardware stacks are merging with software stacks. >> That's right, yeah. So, this is the challenge, because you know how hard it is to do database work. >> Yeah. >> We got a lot of unstructured data. >> Gregarious: Yeah. >> Data is now a real-time dynamic, self-driving cars. You can't have latency less than nanoseconds. >> Gregarious: Yeah, that's right. >> And so, databases just don't cooperate that way. >> Gregarious: Yeah. >> So a new architecture is being developed. What's your vision and thoughts about how companies are re-imagining? What are you seeing out there? I know it's early innings, but what are your thoughts? >> Well I think, you know, we went through this software as a service generation, right? Where, sort of software was at the center, right? Social was at the edge. Now the human is moving to the center, and I would say, with that, they're clutching to their devices, right? And so, there is a piece of hardware with every person basically, that's invoked. And I think hardware is becoming as extensible as software ultimately. And I think it is also being deconstructed, right? And I think a log of that Web 2.0 sort of aura was really the deconstruction, or the breakdown of sort of large monolithic services, down into smaller, discreet services that are addressable and serviceable. We're seeing that happen out on the hardware side as well. Things as really just micro-devices, you know, that embody all the pieces. >> If you look at the trend lines, right now we're kind of going back, but connecting the dots forward, there's a massive tsunami going on in opensource development. Linux Foundation was just down in L.A., talking about a exponential growth in new software shift, and a new class of developers coming in. Containerization in Cooper Netis' points to microservices, a whole other level of developer goodness at the top of the stack, freeing up the infrastructure configuration for the cloud, or 'dev ops' as we call it. >> Yeah. >> This is the phenomenon, this is the big wig. This isn't about developers being the guys writing, punching out code, this is front lines stuff. And certainly AR shows and devices from Samsung show. >> Well, and I think the interesting thing is that, with these hardware building blocks too, though, it's allowing software developers to articulate hardware without actually learning the hardware bits and pieces, right? So I think it's like, much idea obstraction, like, you don't have to know how byte code was generated now to work on the web, you sort of, don't necessarily know hardware is put together to be able to actually command an army of hardware pieces. >> How familiar with Samsung's cloud and data strategy, one of the things I see missing in the keynotes today, and clearly missing in the show, so this is kind of a critical analysis of Samsung, is I don't see a lot of the cloud. I see Smart Cloud, Samsung Cloud sprinkled around. I don't see a lot of cloud specifics. And they're not being specific around how the data is being used. >> Yeah. >> Like Alibaba there in China last week, data, data, data, refueling data, data acquisition, data usage, using data as a development tool, I'm not seeing that here. >> Well, I- >> Am I missing it, or...? >> I don't know, well I think at some of the pavilions around there are deeper dives in that, but I might argue that this is almost an intentional thing, right, like in some ways, because we're consumerizing more and more of these pieces. You know, AI scares the crap out of a lot of people. Right? Like and so do I really want to go deeper? >> You mean in a creepy way, or just like a surveillance way? >> I think all ways, right? Like, people are, you know, much like with personalization, you want to all wait until it's too good, right? And you know, I think this is a challenge. >> John: Like what else do they know about? >> Yeah, exactly, right? And so, how much of weeds are necessary? I think like at a developer-centric event like this, yes, like there definitely should be deeper dives, but likely not on that, I mean- >> So, from a messaging standpoint, probably best not to put data out there? It brings up questions. >> Yeah, all this stuff, this is Blendo, right? It all becomes consumer now, right? Like, so the more you put out there, the more you sort of alienate, potentially, adoption. >> So one of the things that we see, obviously, with theCUBE covers hundreds of events in the Enterprise and emerging tech area, but as we get more to the consumers with Samsung, Alibaba, Amazon, and so on, the consumerization trend is definitely here. That changes how businesses do business. IT, information technology, or called IT departments are no longer a department, it's now a fabric of how companies work because you have on-premise hardware, you buy your servers, but now you're operating on a cloud model. >> Yeah. >> You're using public Cloud with it; Microsoft, Amazon, Alibaba, Samsung, whatever, do people care, if it works? >> Yeah. >> So this new phenomenon is shaping how companies are architecting their innovation strategies. >> Yeah. >> You guys are doing a lot of this at your Before Alpha venture. >> Gregarious: Yeah. >> What are you guys doing, is it early days? Are you just basically like, crawl, walk, run stage? Give us an update on the customer. >> Yeah, we look at innovation from like four points of view. As I mentioned earlier, that technological versus cultural, and really, you know, it goes back to the hardest start-ups, right, it's like when large companies see start-ups, they're like, we love what these guys are doing, and the real question they should ask is, "why do these guys exist?" Right? And usually, it's like either one thing, right? Like our norms or our beliefs have changed on the cultural side, or there's a new model of efficacy, or efficiency that's possible, right, inside of your business. So, we will get a perspective change, like am I in the right business, right? Is Samsung in the hardware business, or are they in the intelligence business? Right, like sort of question their positing now, right? What's the persona then, if we're in the intelligence business, 'cause suddenly it's not just the people who buy hardware bits and pieces, it's all the people who consume intelligence. What are the processes we use to build that stuff, how do we surface it, and of course, what are the products? What are the things that land in people' hands? >> Yeah, and I think one of the things I would add to that, is that the element of how they use compute power, because we look at internet of things, which is a message here, it's not too sexy, mainstream doesn't get IOT, but AI can service itself, self-driving cars essentially, you know, machine learning meets IOT which you could call AI. People can grop that and understand the self-driving car, but, you know, airplane connected to the internet, or machines on a factory line, that brings up the role of the data, so the compute power is critical. You don't want to move data around the network, so it's interesting how companies will buy their compute. Do they rent it? Do they send it around like a virtual machine? >> Yeah. >> So these are like legacy infrastructure things that are really high impact to architecture. >> Yeah, well you know, and also when you think about you know, fractional compute, and the whole timeshare model for compute, it is also another area where you have to really readjust, and reconfigure the way your entire system works, to be able to take advantage of it. >> Yeah, and one of the things we're seeing, when it comes to Intel transforming from being a chip company to a supplier of equipment to basically a compute company. >> Yeah. >> We're seeing things that- >> It's that perspective change, right? >> Well, yeah, I mean you got to look at computers now, with Cloud, unlimited potential resources. >> Exactly. You can spin up a zillion virtual machines on the cloud, to do an edge analysis, whether it's a car or something else that's a luxury we didn't have back in the days when you were doing your first venture, did we? >> Yeah, no. >> Whole new world. Final thoughts, what are you working on now? What's the coolest thing you're doing? Give us an update on what's happening for you in the next year or so. >> Ah, the coolest thing, I think, the most exciting work is when we work with companies who sort of understand that either the future is upon them, or that they need to get ahead of it, right? And so, like I say when we're working with customers who do have perspective change, it's like really reinventing their universe, I think that's really, really powerful. It's better, you know, when it's proactive, as opposed to like, great, someone just sat on our head, but you know, sometimes you get there how you get there. So we're doing a lot of work I think looking at like, the technology of the future, but more importantly, how it will impact consumers today, and you know, really the evolution of your own customer base. >> Co-founder of Before Alpha, he's the 'Lead Alpha.' Gregarious, great to have you on theCUBE. Final thought, you've seen many waves, you've worked as a CTO, you've worked on start-ups, you worked with database, you worked social technology, now you're working kind of helping customers put together the future. What's the big learnings that you've seen over the past ten years that you're putting into place now, from a practical perspective to bring to your customers? >> Yeah, you know, I think everyone asks me, 'what's the secret to innovation?' That's the number one question I probably get. I have a list but the one thing I put at the top of the list is permission, right, which is that organizations tend to fail at this because people don't feel like they have permission to do it, they don't have permission to fail, they don't have permission to not work on something else that's taking up fifty percent of their calendar, right? And I think, you know, you see Samsung's innovative culture right, like for other brands, companies, corporations to be successful, if they don't enable, give that permission to their employees, they're never going to make it. >> Certainly with Cloud, you can try something new, and iterate, we see the lean start-up culture, kind of growing and artistry kind of coming in mainstream. Thoughts on artistry and art in technology coming together? >> I think it was a natural, peanut butter and jelly kind of moment from the beginning. Right, you talk to any engineer, any developer, they view what they do as art, right? And the expression of that, it takes any number of forms. >> And the great news is at the front lines, as they get more consumer tech, with like Samsung and Apple, you see guys out in the front lines really adding value, changing the scope of what's possible. >> It's the creator movement, right? Like they were having here is a big theme at this event as well. >> Right, creator moment, building the good apps, great technology, just theCUBE, creating great content here on the ground, at the edge of the network, here at the Samsung Developer Conference in Moscone West in San Fransisco. I'm John Furrier, be back with more after a short break. (electronic music)

[Announcer] Live from Las Vegas. It's theCUBE. Covering NAB 2017. Brought to you by HGST. >> Welcome back everybody, Jeff Frick here with theCUBE. We're at NAB 2017 with a hundred thousand of our closes friends but we actually do have one of my friends here. Who I can't believe we haven't had on theCUBE since 2013 ServiceNow Knowledge. >> That's right. That's right. >> Just down the road at the Cosmopolitan. Brian Lillie, he is now the Chief Customer Officer and EVP of Technology Services from Equinix. >> Brian, it's always great to see you. >> Jeff, it's always a good thing to be on theCUBE. And I love NAB. Love it! >> What do you think, you've been coming here for awhile. What's kind of your take away, what's the vibe? >> Well, so the vibe, it feels as innovative and as exciting as ever. And I really think that, people are seeing, are starting to hit a tipping point where they're seeing what's possible. What's possible with the cloud, possible with increased collaboration. When I first started coming here a few years ago, saw very few of these kinds of projects. Now, we're seeing tons of innovative approaches to using the cloud. Using our facilities, using really some of our network providers that are really innovating around this vertical. >> Yeah, it's pretty interesting Brian because this is our first time for theCUBE being here. And what's surprising me is how many of the macro trends that we see time and time again at all the other shows about increasing capacity, flexibility, democratization of data, democratization of assets. All these kinds of typical IT themes that are being executed here within the media entertainment industry both on the creative side and as well as the production side. >> That's right. That's very well said. I think this industry, really more than many, is very, very collaborative. You know, from everything from acquisition to pre-production, production, post production, delivery. It feels like a community that wants to share, wants to learn, sees that they don't necessarily own all the best ideas. And that we're seeing some young innovative startups from all over the world. Everywhere from Europe to Asia coming up with ideas that the big houses, big players are starting to see as viable. And I do think, I think, when you talk about it being maybe some of these IT trends, I think some of the secular trends. The fact that consumers want their content anytime, anywhere, on any device. >> Jeff: Right, right. >> Really if you work from the customers backwards, everybody else has to adjust to that. And we're parents. >> Jeff: Right, right. >> We see what our kids wants. And it's really driving I think the whole industry. >> And good stuff for you. You guys at Equinix made a big bet on cloud long time ago. And the fact of the matter is, we're surrounded by all these crazy hardware, both in the production side, the data center side. No one is buying this. You don't just take this stuff home anymore and plug it in. It's just too big and too expensive. As you said, I think was interesting about the media business, is everybody comes together around a project. When the project's over, they go away. How many people has Quentin Tarantino employed directly, probably not that many. But the guy kicks out a lot of big budget movies. >> That's right. I think when you think about the creation of a production, like a QT movie, wherever that set is, it's ephemeral. You go, you setup and it's big data needs, it's high bandwidth, low latency, you've got to get the data. In some cases centrally, but in some cases you're processing at the edge. But it's very cloud-like. We're seeing a lot of this unfold. We're seeing these players not only in the centers where it makes sense to consolidate, but we're actually seeing some of this kit show up in our data centers in a distributed mode, where they say some information, some equipment, we want to keep behind our firewalls on our premise, which could be an Equinix cage or their own. But then I want to absolutely connect to multiple clouds. I want to use the tools in Asure, the tools in Amazon, the tools in Google and others to further enhance our abilities. And so it's truly this hybrid, best of breed, I got a lot of tools in my tool kit, some cloud, some on premise. And there has never been a better time to be in this industry. >> Right. >> You see a lot of industries, you got a lot of customers, how do you see it kind of compare, are financial services, the entertainment, et cetera, are they all kind of progressing pretty much down the same path, at the same rate or do you see some significant laggers or significant people ahead of the curve? >> Well, I would say that financial services is way ahead, to be frank. Financial services has been doing this for a long time. Like when we built Equinix, it was really starting with the networks at the core. And the first vertical to take advantage of that was the financial services, where they said, hey, I want low latency routes between New York and London. Low latency routes between Chicago and New York. And so they've been doing that and then building communities of interest where they could reach all the folks in their digital supply chain. On the financial services side, guys like Bloomberg and Reuters, they said, I can reach all my customers in one place. And I can direct connect to them. So they built early. The content guys did see it right after that. Guys like Yahoo, and if you remember Myspace. >> Jeff: Right, right. >> So it's wonderful to see Facebook video here. I mean, here's now Facebook, real-time video, live at NAB. And with a big presence. So I think content digital media has been a little bit slower to move. But it's one of these ramps. >> Jeff: Right, right. >> And they, over the last two years, I think they have been the fastest excelerating vertical using the cloud and interconnection to build their brand, to build their business. >> Right. It's interesting, because some of our other guests were talking about the theme I guess last year, here was a lot of VR. >> Brian: Yes. >> It's all about the VR theme. But now, we're hearing about machine learning, and metadata and a lot more kind of tradition themes, it's not necessarily just about the VR and the 360. >> Brian: Yup, yup. >> To add more value to these assets, to be able to distribute them better, to have the metadata, to create an experience for that individual person, >> Yup. >> even within the context of a bigger asset, have these small ones, they're pretty interesting trend. >> Yeah, it's spot on. I think VR, virtual reality and augmented reality, >> Jeff: Yeah, I think so. >> is the future. I mean it's the future. I think what maybe what people are realizing is, it's at it's really early days. But data we have, and this whole notion of data science and analytics that you can put around the customer experience in real-time, in situ. >> Right. >> They're like, we can do that now. >> Where virtual reality, the massive bandwidth, the storage, the compute, the compute. Because it's no longer that you're watching the movie in a third person, you are the movie. You are the experience, you're in it. And that's just going to require just massive compute, that in my opinion, only the cloud can do. [Jeff] Right, right. >> So I think it's a little bit further off, But I think VR and AR is the wave, it's the future. >> And certainly in the AR, I think is really cool because there's so much potential there. So from a data center perspective, you guys are sitting right at the heart of this thing. And you're taking advantage of these tremendous Moore's law impacts on not only compute and store but networking, it's got to be phenomenal to see the increase demand. I always think of the old Microsoft Intel, you know back in the day, >> Brian: Right, right. you get a better microprocessor, well, Microsoft's OS heats up, another 80% of that one back and forth. But now we're really hitting huge, huge efficiencies in these core components that are enabling ridiculous scale that you could never even imagine before. >> I think the Intel Microsoft example or analogy is a really, really interesting one because in fact, when you look at companies like Mesophere and Google's Kubernetes and these others, that are, they're calling themselves the data center operating system which is operating containers with the move to microservices, all this technology that's coming, that's making compute more ubiquitous, where you can run workloads anywhere. The fact that we sit, we feel privileged cuz we sit in the middle, of not only all the networks, but of the clouds, the multi-clouds. >> Right, right. >> And if you're a, whether you're a producer or you're in production, you're in delivery, you're an over-the-top guy, where you want to be is where you can connect very directly with little latency and high security and high reliability, to the clouds you need, to the networks you need, to the partners you need. I think that's just a powerful thing. Now the operating system is how do we make that easy, how do we create the easy button. >> Right, right. >> For these folks to access these resources. And what' the value we provide as that neutral, in the middle provider that brings people together. You know, I was at an event last night, and DPP, Mark from DPP was there. We were talking about the question of who owns this new business model. He said he saw a panel on Sunday, because it's transforming in front of us. [Jeff] Right, right. >> And it's an excellent question. I don't know who owns it, but I know we see it. And we're seeing people talk about it. I think the community owns it. They own what this new business model looks like and we're just listening to our customers and letting them lead us. >> Jeff: Right. >> To the place we need to go. >> Interesting. So we're running a little low on time. Just want to get kind of what are your priorities for 2017. >> Well, priorities in this area is really to make cloud ubiquitous globally. It's to push that out to the edge, make that available in as many markets, to as many customers as we can. With our big partners, with Google and Amazon and Microsoft and Oracle and all the rest. That's a big priority. Second is this notion of the easy button. How can we add value, how can we take friction out of the system to make collaboration and communication between this industry that much easier, that much faster. Those are our two big ones in particular here. And I'm delighted to see this vertical just taking off with the cloud. >> Yeah. Pretty exciting times. >> Brian: It's a great time. >> Alright, I got to embarrass you before I let you go Brian. Never have I met an executive that takes such pride in in losing good employees to better jobs. I just want to compliment you on that. (Brian laughs) I know you take pride in CIOs all over the industry that were once your charges. So I want to give you a shout-out for that. >> Okay. Alright, he's Brian Lillie, keep working for him. Don't take the other CIO jobs just yet, but if you do, he'll be happy to mentor you. >> Brian: I will help you get there. >> Alright, thanks for stopping by. He's Brian Lillie, I'm Jeff Frick. You're watching theCUBE from NAB 2017. We'll be right back after this short break. >> Brian: Thanks Jeff. >> Good to see you buddy. (techno music)

>> A cube at DMC World twenty fourteen is brought to you by D. M. C. Redefine, see innovating the world's first converged infrastructure solution for private cloud computing brocade. Say goodbye to the status quo and hello to Brocade. >> Welcome back to the Cube. This silken angle TVs live wall to wall Coverage of DMC World twenty fourteen here in the Sands Convention Center in Las Vegas. We've got three days to stage is over eighty guests. Lots of practitioners, execs, business leaders got a special segment. I'm bringing you today, bringing onto two thirds of the geek whispers, podcasts, Those in the story for the virtual ization and Claude Communities. No art is to guess. Well, let me introduce it's John Troyer, who's making his debut as the founder of tech reckoning. >> Thanks for having me. >> And we've got Amy Lewis influence marketing from Cisco. Name is your first time on the Cube, so, you know, welcome to the program. >> Thank you for having me on. >> All right, so So, guys, you know, we've been to a lot of conferences way we've hung out with, You know, the various influencers bloggers. It's changed a lot. This is my twelfth year coming M. C World. If you had told me twelve years ago some of things I'd be doing at this show, I wouldn't have believed you. I mean, I was one of the guys in a polo that only got out of out of the office once a year to give a presentation and, you know, talks in people about some cool tak um, and you know, social media is one of those things that, you know turn my career. Eleven. So you know what? Let's have a conversation about what's going on in the industry with kind of community influences and everything. John, maybe you could start us often. You know, Maybe if it leads in tow your new gigs? >> Sure, sure, on one on one, and things have changed. On the other hand, the same dynamics are playing out. Buying the buying cycle has changed. The buying process has changed. Customers are looking much more to their peers and not to traditional media analysts. Marketing folks, they can't find more ads. You can't send out more E mail. So what do you do? You need to get part of the conversation. We've been saying that for five or ten years, that's actually happened. Now the folks that were early on into the blogging space have turned themselves into communicators as well as technologists. We've seen, you know, their careers have have gone and all sorts of interesting places, for instance, you. But I think now that even we could talk about his art Is blogging dead? But I think now we're seeing it. We're seeing social media not as a trade or a practice practice, but simply a tool set that we all use. So that's all I'm saying is it's a It's more of a it spread throughout our organization. Not so much in one tiny niche, right? >> Yeah, Jonah, I love that point. I I I've been preaching for a bunch of years that this is an important skill, something you have to have their wonderful tools. But you've been doing community for a lot longer than Social Media has been around, and, you know, so it's peace, Amy, your influence marketing. What would please way out on this? >> Yeah, I chose the title, actually myself on purpose. To say it's not just social media, think social Media is very important, but like John was saying that to me is a set of tools. They're important platforms or important communications channels, but influencers the people who between the term citizen analysts they are unpaid analyst. But people are very passionate about technology, and they want to write on block and share, really engage their community. That's an important group of people. It's a really a buying center, and we have to find new ways to address them. So community is more important than >> ever. Citizen analysts thought, Let's focus that >> some of the >> people you know, I say some people goto event and they get it, get it, get wined and dined and they get to, you know, write about a bunch of stuff I'm like, you know you're better than journalists, you know, you'll You know you do some really good stuff and sometimes it's a little bit too friendly to the people that are doing it. So you know where do you see the role of kind of the press? You know, the analyst and the influencer? >> It's a great question I've been checking. We need to abstract the or chart. It is. It is a complicated question, but I think the traditional presses really trained and rightfully so in giving us that neutrality. So that is still a very important role. I think the analysts are paid Tio Tio, analyze particular sets, etcetera. They have nation specialty. I think the citizen analyst is interesting because they are what you don't know about the neutrality. But you do know that there are people who roll up their sleeves and really touched the technology. So that becomes a very interesting set because they really care about the technology Kazakh but could become their problem if they don't, you know, raise our voice and sort of engaged with technology and let the community know what, what the new trends are, what they need, what business needs. Our etcetera gives us a really applied version, the PR in the e R outside. >> Don't you want to comment on matter? >> I mean, these are the folks that they lose their jobs if they picked the wrong technology. So they have much more. Their discussions have it. They have more skin in the game. >> Aye, that's right. If you've got the practitioner, you know whether it be the end user sometime times it's the you know channel guy that they do that that's good, You know? What about the people inside the corporations that are also using these? >> I'm super bullish about the use of employees as advocates and evangelists in our community, both for technical education. And for the commercial part of our conversation in the enterprise space, we don't sell solutions with Russia. Your hair's a pressure and very nice calm. Give me a call. We sell it with relationships with people. I've been working on the social media since it existed, I suppose. And what we've seen over and over again is the social channels are really great for getting the word out. But without that personal component, it's like just handing out brochures. So you need your employees out there. You need your employees talking to folks. You need your employees without their representing your brand, just like they would have an event. I've seen that at something. On one hand, it's something that's so trivial that we all agree it's true. On the other hand, I don't. I think a lot of people are just realizing that now. >> So, John, you know, there's some some big companies, you know, creative certification programs to do some of this. There's some companies that just, you know, sign everybody up and, you know, it could be kind of an echo chamber or things like that. You know what? What do you see in these days? To kind of help out. You know the community >> well. There's a lot of software and a lot of programmatic things you could do. Those may be useful in terms of organizing you. It comes down to the people in the culture of the company and help much. You trust your people to go out. I think the best thing we can do is sit up platform for folks to be able to, to communicate. I think that's actually what Amy does really well at Cisco. >> X. It's, um I always talk about influence marketing as being people, platforms in content. And so I agree. I think that we sorted out some of the platform issues as we've learned about social media and grew up with it. I think that we are still working out the people in the content side and what's appropriate, how we can join together and do that and how we can creates a mute platforms may be using the tools of social tio to drive the conversation forward. >> All right. So, I mean, I got one for you. You know, how do we balance the kind of creation of information and kind of the community and fund? I mean, you do a lot of fun event you've got, you know, awful club this week. You've got, you know, bacon, stack and B bacon and bacon. I e I mean, I can't keep track of you, deport vacants and everything. And, you know, there'd be some executives here that would be like that, That social stuff. And they're playing games and things like that. So how do we balance kind of attic business value and greeting, you know, value to the community. And, you know, having fun in building community. >> No, it's a great question. A couple of years ago, I got a text in the middle of the night that said, Please explain to me how the bacon is a marketing play. Please explain this and you know, I need a power point slide. So if you've never had to explain, be bacon on the power points, I for that challenge out to everyone. But I think in the last couple of years people started to see it more and more as we're, uh, we're similar to the sales role, and that's how we've sort of changed the language. So I perform a sales like function, except I don't carry a quota. So it is about building the relationship like John was saying, and it is about balancing fun with your intent. So I think that if you create a fun environment, if you create an openness and willingness to listen, then the good things will follow. So you form the relationships of people. You open up their ability to create content with you because they don't feel under attack. They're ready to share. And again, it's it's kind of a magical formula. Be nice and create opportunity. >> Yeah, so >> I think we'll part of it's a generational ship. I think part of it a generational shift and part of it is a temperamental she So tradition again, going back to sales traditional enterprise sales. You might go and play golf with somebody, cause that's what you enjoy doing for our kind of geeks. Our golf is eating bacon and talking about the duplication strategies, right? That's where we're having the most fun. So it's It's just it's same sort of thing. Just a shift in generations. >> Yeah, I wonder if you know what, what role this community help in kind of careers. You know, I think you know, we're talking so much of these shows about, you know, if your storage admin. If you're networking admin and you know you're down there, you know, configuring Luns or setting up the land, you know, we're going to have a job in a couple of years because automation is gonna change. You know, how much does the community help in kind of those career paths and education? >> So, John, I think we should interview stew on this one. Should we have the geek whispers takeover. I think this is your great example. You've talked about you, you were on a career path and we hear this a lot, and when you raise your hand to volunteer, we sort of jokingly call the spokes uniforms. You both really enjoy the technology and like to communicate about it. When you raise your hand and make yourself known to the community, to your employers, to the world at large, it gives you different opportunities. And I think I don't think you go into technology really without wanting to have an evolving, exciting career. So I think that he's becoming proficient in these tools. Joining your community is an opportunity to learn from your peers to get back to your peers and to raise her profile and open yourself up to the possibility of a new opportunity or a new idea or different engagement. A new way to learn >> In today's business environment, communication is a key part of whatever you do, even if you're the guy sitting there configuring the lungs, because if you're not communicating with your teams and the application teams and the storage of network virtualization team, you're not going to succeed so I think that's an important part of it, right? Being a communicator, absolutely critical and art. Barney. >> All right, so either one of you feel free to answer, but I think back to my early days, you know, two thousand eight, I was so excited when I got invited to a couple of conferences. A blogger, you could kind of get a pass, and I would, You know, ten might take my own vacation time and usually spend that on expenses because my employer at the time didn't get it. It was this innovation conference in, like, in a New York City with four hundred people, and it was like, kind of amazing. I've seen people go to B m world on their own dime where they can get a pass. I mean, you know, it's great to see when you when you got the passion. So I guess the question I wanted to ask is, you know, with companies today, who should they be inviting? How do they do it? You know? You know. Is it you know, the blogger Or is it the, you know, empty Alexis co expert? You know, bm where be expert, you know, What? How's that? How's that changing? Or is it >> changing? Well, I think what you've seen happen over the years is something that was a little more unstructured, which was a kind of blogger relations program. Working with both customers partners, employees in your ecosystem has turned into something a little more formal. We created the V Expert program in two thousand nine to formalize what we were already doing. It's an analogy to the endless relations, press relations, investor relations, sorts of programs. So I mean, it's it's it's a little more buttoned up. It's a little more of a membership thing, but we I know both of DMC and BM where and it Cisco, Francisco champions to try to embrace all the folks that are out there blogging. I think you know, if you're a market or you need to make sure that you're keep your eyes open and you don't just talk to the people that you've gathered in your living room, Bye. You know, a lot of it's pretty easy if you're enthusiastic about technology, if you're engaged with the technology, if you put some effort into it, it's actually pretty easy to get involved with one of these programs there, there, there and there, there, fourth of people in them right there. They're not there to say the glory of the emcee and glory of Cisco and glory of'em, where they're there to help you with your career. They're there to give you tools to give you networking and, you know, hopefully get you to places like this. So I encourage everybody that that's interested in starting, you know, go ahead and get started. It's easier than you think to get involved. >> I agree with that, and I think that way want to be almost like an airline program that you'd actually want to participate. And it's sort of my job like this is a customer service activity, and I often talk about if you talk about the large pool of influencers. Maybe they haven't identified yet. Or maybe they prefer to stay independent. Or maybe they do have interest in a lot of different technologies. Me for them to engage in one of these programs, that stolen, important set of people that you have to deal with the mark, you know, and again set up these blogger days have longer briefings. But like John was saying, When you have the group of people that you name and give it a program name, this is a little bit of inside baseball if we don't talk about giving program a name and funding can follow. So if you're working in a corporate marketing environment, it's really important to explain to people that marketing structure behind what you're doing and when you treat them as a class, it gives you some advantage is you can scale out a little easier. You can provide more assets to those individuals, and it frees you up to Dio. What I love to do, which is is to really engage with those individuals and create content with them. So, >> yeah, so how is engagement these days? You know, I think back, you know, that you know, ten years ago, you talk. You know, one percent of the community would, you know, be doing almost all the contribution. Ten percent might be a little active and everybody else's lurker. You know, when we founded Wicked Bond Day, Volonte actually has on his business card that he's a one percenter which goes back to you know it. It's, you know, the one percent that causes all the trouble, the one percent that causes all all of the commotion. So, you know, with this wave, I mean, we were founded off of, you know, economics in crowd sourcing and everything else, and the Cube is all about, you know, sharing information. We put it all out there. We want everybody to contribute and, you know, give that feedback. You know, How are we along now? You know that that journey to get more people involved. >> I think the opportunity is there more than ever. I think you're right. I mean, there's always gonna be a percentage of people who want to raise her hand, the class that want to give up their PTO to go to a conference that that had this other life they just can't help themselves. And so in some ways it's finding the most impassioned and giving them opportunities. But I think that with the platforms and the scale, there is a greater opportunity for people. They don't want to start their own block. For instance, one of the things we do it Cisco champions is allowed people to guess, block or allow them to come post a podcast. So I think there are more more ways to and there, you know, that's one example. There's lots of other groups that provide people again a little bit a dose of it so they might not want to run a full media company on their own. They don't wanna build Q, but they want to participate. And I think that we have so many more opportunities for them to do that that we're seeing group. >> We're seeing platform ships over the years. I think we as technologists human beings have a tendency to forget their past relatively quickly, as people have moved from the MySpace world to the Facebook Twitter world. I think actually, we're headed for I don't call it I don't want to call it post Facebook, but it certainly is. A multi platform world made >> it just like >> it's a multi device world. We're not opposed PC world in that. I think you're seeing the rise of more specialized communities. They come back again from from our from our origins back ten or twenty years ago. I think we're seeing that people want more deeper engagement along the company. A lot of the report building and kind of conversation. And hey, how are you? Goes on on Twitter. But I think people are really looking for a place where they can have a better conversation, more interaction, more lasting death that might not be on their own. Blogger in their own kind of indie web sort of style, roll your own block. But there are more and more platforms that people are making available for this kind of connection again. What was once niche eventually permeates the whole >> yes. So, you know, the concern I have is it's tough because it is so dispersed right now, you know? You know, I love Twitter, you know? Hi, I'm stew, you know, on Twitter. And I know you guys are big on it, too. And I don't love the multi platform discussion. You know, I always love when you dropped that kind information on the community. But, you know, how >> do we How do we get that >> depth? It's one of the things I always worry about is, you know, people will read the headline and, you know, just react at it and, you know, they might even share it a bunch, but they haven't read it. Uh, so how do we get that deeper engagement? Deeper understanding. I mean, you know, I always say, you know, the I'm too busy is a poor excuse because, you know, you know Michelangelo and I'd sign that many hours in the day way we did and, you know, sure they didn't have their phone buzzing all over >> the place. >> I actually think we should do less. Not more. I think I think too much information, too many channels, too many corporate channels, too many personal channels, too much bad content. The world does not need more crappy content. So whether you're a individual, blogger or marketer, I'd say just turn the dial back a little bit. Did work on better, longer pieces that add more? I think that's the only way that we can shift the conversation. >> Yeah, long for love it. Oh, no, absolutely. I still read so >> well. It's a curatorial function as well, that we have to be responsible. And that's yet one more way people can participate. We see people rise and in the community because they're really great curator Sze, because they syndicate the content in ways are interesting to others because time is of a value so that becomes a real asset. And the skill is Well, >> yeah, great. Great point. Could you know, so many times I'm like I really like to do a thousand word post on this, but, you know, sometimes all I'll come out of this show and take, you know, I did a year ago. I did it. I didn't article on the federation. You know, the ZPM were pivotal and coming out of the show, I've got a lot of new data, and I could really quickly take some photos. I've done. Takes some of the notes. I take some of the tweets and, you know, put together an order. Won't take me as long. I mean, I'll probably do it on the plane ride home. So what I wanna ask next is, you know, you guys see a lot of things out there. What coolest thing you're seeing either at a at a conference or event or you know what? What? What's catching, right? What? What's interesting? Done. >> There's a whole new side out there called Tech, right? I don't know what's cool out there again. I'm seeing multi channel multi, a lot of experiments. There's some cool stuff going on with the indie web. There's I mean, everything is mobile. I don't know. There's just a lot of places. It >> sounds like you Let's give the plug. Integrity has finally cool things and, you know, solid. But something >> like that tech reckoning is a site that's gonna bring. It's an independent site. It's not associate with any vendor. It's going to bring some of the community and enterprise community together to talk about some of these things about Where is it going as a whole? Where's technology going, where our career is going to try to help us get to whatever this you know, it is a service. Third platform, Whatever you wanna call it, where the heck were going? It looks pretty interesting, and it looks like it isn't gonna be quite the same thing. So we're trying to bring together a set of people and just tackle some of those problem and also work together and collaborate. It's so much easier with open source with cloud. With all the tools we have available, it's so cheap and easy to build new pieces of technology, not just a type of each other words online, but to actually build stuff that I'm very excited about. The power taking going far. This from open source, right? Taking the power of people to come together and build cool new stuff. That's what I would like to. >> Still, I'm just angry that you scooped Matt and I on getting to interview John first about >> tech recognition. So, Amy, you you do some cool things that some of events we talk about, the waffle bacon, you What have you seen out there that that's kind of interesting? Or, you know, how do you find some of the cool new ideas? >> Yeah, I think you always I'm working with a really talented events team right now. And I think one of the things I've seen them sort of transform is that social is not other, you know? And we're seeing the social and this concept of community permeate and really think about our audience to really engage that core base, those those tech enthusiasts, and to see what you can do to in engage them. So I'm saying it in real life and in these community platforms. So I think that's been one of the other great trends is watching people band together and various kinds of consortiums. I won't name names, but there's a few folks outlook community. We're seeing a lot of this happen where they're sort of grouping together, and they're saying if they pull their resource is what happens, they might be able to gather enough money to go to a conference or to fund a buddy or to get a hotel room that they've got extra spaces somebody can crash. So I'm saying it's very cool, sort of stitching together opportunity and working together to learn more. So again, the combination of the platforms, using the technology and then in real life connection. >> All right, so I've been asking all the questions here. So before we wrap up, you know, Amy, anything you want, Johnny, when as me, John same, we throw it open. When Whenever >> you first signed up for your Twitter account, did you think it would lead you here because you have the best Twitter >> account? No, actually, a friend of mine for me and Steve Todd, who was blogging before I was, and he said, You know, when there's trepidation when you're gonna get published and you never know where it leads. And we were talking about this after he and I were on the stage at Radio City Music Hall right after Bill Clinton had been on because they brought the bloggers down when we were there. And it's like, Come on, you know, I'm, you know, I'm an engineer by training, you know, I've done. You know, I've done some sales. I've done engineering. I've done you no operations. Technologist is hard. So you know, some of the places the people I've met. I mean, if you just reach out to people, it still, even though there's so many people on Twitter, you know, the people that right and our authors and bloggers, If you comment or you reach out to them, a lot of them reach back. I mean, you know, I still amazed at some of the people I've met get to rub elbows with. No, just just have had a blast with him. So >> get another one. So do you think unicorns can be trained? Do you think people have to be born with the skill set, Or do you think you can be a uniformed rancher? >> No, I think I think I think they could be trained. You know, it's absolutely it's Ah, it's a tough skill set. I mean, you know, doing video is not easy. First couple of times you do it. It's different there's there's all these muscles. You know, Writing is one of those things that you know. I thought I was an okay writer, but hadn't done a lot of it. They're things you do. So try it out. And that thing I tell you, you got to stick with it for a while. I thought Twitter was pretty stupid. First Go on it. But, you know, I stuck on it for another six months and have some fun with it. No, here we are six years later and you know it is a lot and, you know, blocking of writing and blogging and everything else you know all over. I >> like the muscle memory idea. >> It's hard. You were on camera, have remember not to scratch my face. Strange. He'll set, I ask. I actually, I'm seeing a lot of interest in short form video. I know the kids are all doing it. I mean, obviously, we're doing it here. You do it. It's part of your practice. But in talking with people about our new activities, it's just so easy to take a chair. I think that's actually, even though it's been coming up for years, I think where I think that's an interesting thing >> on all right now, I'll give one of those inside tips videos. Great. Some people don't like to watch video. Yeah, broadcaster great. Some people don't like to listen to him, you know, writing's great. Some people won't read. So you know what? One of the early lessons I had is when I was, you know, being a, you know, active member on standard evangelizing of solution. I did it everywhere it you know that give presentations that shows you put it up on slide chair. You do you two videos, you blogged about it. You talk to everybody, you bet that you can everywhere. And you know, it just permeates out there. It could be a bunch of works and then there's tools that are out there. >> They're all connected events, right? I've discovered recently, and I can't believe I just realized this. But it was with the conversation with Amy on our Christmas broadcast that even though I've been part of an online group for years, I'm part of digital marketing for BM. Where for years, Uh, actually, most of my work. Half of my work is off line having my workers meeting people in person, getting to meet them and connecting that online and offline. And the synergy there is just is immense. >> Yeah, absolutely. I mean, other than the keynotes, my phone stays in my pocket for the most time. Unless I'm going between events. It's the in real life and nearly getting to know things. I was joking, You know, Twitter went away. Tomorrow might be a little sad, but I can connect the most. All those people, we got him on LinkedIn, Facebook and, you know, email. I still use something. Don't taking their holds. Absolutely. So you know, to wrap. I guess if you want to, just You know what people find more on your podcast. Find your website. You know Amy, Like it start? Well, >> where >> are Equus? Versace, of course. Geek hyphen whispers dot com on way, published every week. So give us a listen. See what you think. And I'm >> Matthew Brender. Sorry you couldn't join this time, but it's a lot as it were. A DMC world and you two are here in Matthew's. >> It's hard. We're going toe to toe. It's true. We're going to record with him like it's a Max headroom figure on a yes tomorrow, so and also I'm on Twitter as calms mention and I block under that same constantly dot com girls have engineers. That's true. I have engineers, unplug dot com as well. And now sixty second Tech, the short first on the popcorn version >> and I. J. Troia on Twitter and tech reckoning dot com. I went inside. >> Hey, Amy, John. Thanks so much. We We love taking the podcast. Inception. Sile inside the Cube. Look forward to seeing you lost events connecting with the community and everybody. Definitely check out their stuff. I'm at stew on Twitter with yvonne dot org's is where most of my articles go, and, of course, silicon angled on TV is where you can find all the video. Thanks for joining us. We will be back with the rest of DMC world covered.

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