(high intensity music) >> Everyone, welcome back to theCube coverage of AWS, Amazon Web Services, Public Sector Summit live in D.C. We're in-person, I'm John Furrier, the host of theCube. I'm here with Max Peterson, the Head of Public Sector, Vice President. Max, great to see you in in-person event. >> Great to be here. We're in-person and we're also live streaming. So, we're here, however customers, however partners want to participate. >> I got to say, I'm very impressed with the turnout. The attendance is strong. People excited to be here. We're not wearing our masks cause we're on stage right now, but great turnout. But it's a hybrid event. >> It is. >> You've got engagement here physically, but also digitally as well with theCube and other live streams everywhere. You're putting it everywhere. >> It's been a great event so far. We did a pre-day yesterday. We had great participation, great results. It was about imagining education. And then today, from the executive track to the main tent, to all of the learning, live streaming 'em, doing things in person. Some things just don't translate. So, they'll won't be available, but many things will be available for viewing later as well. So all of the breakout sessions. >> The asynchronous consumption, obviously, the new normal, but I got to say, I was just on a break. I was just walking around. I heard someone, two people talking, just cause I over walk pass them, over hear 'em, "Yeah, we're going to hire this person." That's the kind of hallway conversations that you get. You got the programs, you got people together. It's hard to do that when you're on a virtual events. >> Max: It's hard. The customers that we had up on stage today, the same sort of spontaneity and the same sort of energy that you get from being in-person, it's hard to replicate. Lisa from State of Utah, did a great job and she got an opportunity to thank the team back home who drove so much of the innovation and she did it spontaneously and live. You know, it's a great motivator for everybody. And then Lauren from Air force was phenomenal. And Suchi, our "Imagine Me and You" artist was just dynamite. >> I want to unpack some of that, but I want to just say, it's been a really change of a year for you guys at Public Sector. Obviously, the pandemic has changed the landscape of Public Sector. It's made it almost like Public-Private Sector. It's like, it seems like it's all coming together. Incredible business performance on your end. A lot of change, a lot of great stuff. >> We had customers we talked today with SBA, with VA, with NASA, about how they just embraced the challenge and embraced digital and then drove amazing things out onto AWS. From the VA, we heard that they took tele-health consultations. Get this from 25,000 a month to 45,000 a day using AWS and the Cloud. We heard SBA talk about how they were able to turn around the unemployment benefits programs, you know, for the unemployed, as a result of the traumatic impact of the COVID-19 pandemic in a matter of weeks. And then, scaled their systems up just to unbelievable heights as President Biden announced the news. >> You had a lot of announcement. I want to get to a couple of them. One of them was the health equity thing. What is that about? Take us through that announcement. >> So the pandemic, it was hard. It was traumatic in a lot of different ways. It also turned into this little innovation laboratory, but one of the things that it laid bare more than anything else where the inequities associated with some of these systems that had to spring into action. And in particular, in the space of health, healthcare equity. We saw simply communities that didn't have access and weren't included in the same sorts of responses that the rest of the community may have been included in. And so we launched this global initiative today to power health equity solutions. It's a $40 million program. Lasts for three years. And it's open to customers or it's open to partners. Anybody who can contribute to three different areas of health equity. It's people who are leveraging data to build more equal, more sustainable health systems. Is people that are using analytics to do greater study of socioeconomic and social situational conditions that contribute to health inequities. And then finally, it's about building systems that deliver more equitable care to those who are underserved around the world. >> So, just to get this right, 40 million. Is that going to go towards the program for three years and are you going to dolo that out or as funding, or is that just a fund the organization? >> It's actually very similar to the development diagnostic initiative that we ran when COVID hit. We've launched the program. We're welcoming applications from anybody who is participating in those three developmental areas. They'll get Cloud credits. They'll get technical consulting. They may need professional services. They'll get all manner of assistance. And all you have to do is put in an application between now and November 15th for the first year. >> That's for the health equity? >> For the health equity. >> Got it. Okay, cool. So, what's the other news? You guys had some baseline data, got a lot of rave reviews from ACORE. I interviewed Constance and Thompson on the Cube earlier. That's impressive. You guys really making a lot of change. >> Well, you're hundred percent right. Sustainability is a key issue from all of our customers around the world. It's a key issue for us, frankly, as inhabitants of planet earth, right? >> John: Yeah. >> But what's really interesting is we've now got governments around the world who are starting to evaluate whether they're not their vendors have the same values and sustainability. And so that the AWS or the Amazon Climate Pledge is a game changer in terms of going carbon zero by 2040, 10 years ahead of most sort of other programs of record. And then with ACORE, we announced the ability to actually start effecting sustainability in particular parts around the world. This one's aim at that. >> But the key there is that, from what I understand is that, you guys are saying a baseline on the data. So, that's an Amazonian kind of cultural thing, right? Like you got to measure, you can't know what you're doing. >> The world is full of good intentions, but if you want to drive change at scale, you've got to figure out a way to measure the change. And then you've got to set aggressive goals for yourself. >> That's really smart. Congratulations! That's a good move. Real quick on the announcement at re:Invent, you've talked about last re:Invent, you're going to train 29 million people. Where are you on that goal? >> Well, John, we've been making tremendous progress and I'm going to use theCube here to make a small teaser. You know, stay tuned for our re:Invent conference that comes up shortly because we're actually going to be sharing some more information about it. But we've done digital trainings, self-training, online skills workshops. We just took a program called re/Start, which serves an unemployed or underemployed individuals. We launched that around the world and we're really excited. Today, we announced we're bringing it to Latin America too. So we're expanding into Colombia, Mexico, Peru, Brazil, and Argentina. And the amazing thing about that re/Start program, it's a 12 week intensive program. Doesn't require skills in advance. And after 12 weeks, 90% of the people graduating from that course go right onto a job interview. And that's the real goal, not just skills, but getting people in jobs. >> Yeah. The thing about the Cloud. I keep on banging the drum. I feel like I'm beating a dead horse here, but the level up, you don't need to have a pedigree from some big fancy school. The Cloud, you can be like top tier talent from anywhere. >> And you heard it from some of our speakers today who said they literally helped their teams bootstrap up from old skills like COBOL, you know, to new skills, like Cloud. And I will tell you, you know, right now, Cloud skills are still in a critical shortage. Our customers tell us all the time they can use every single person we can get to 'em. >> I'm going to tell my son, who's a sophomore in CS. I'm like, "Hey, work on COBOL Migration to AWS. You'll be a zillionaire." (John and Max laughs) No one knows what the passwords of the COBOL. I love that 80s jazzy jokes from two re:Invents ago. (John laughs) I got to ask you about the National-Local Governments, how they're monetizing Cloud of the past 18 months. What have you seeing at that level? >> Yeah. National and Local Governments, of course, were tremendously impacted first by the pandemic itself and the health concerns around it, but then all of the secondary effects, you know, unemployment. And immediately, you needed to put into action unemployment benefits systems. We work with the U.S. Small Business Administration, 15 other States across the U.S. You know, to have those systems in place in like weeks to be able to serve the unemployed as a result of the COVID-19 pandemic. Then you saw things progress, to the point where we had States across the country, standing up call centers on Amazon Connect. Instantly, they could have a high scalable volume call center that was situated for their instantly remote workforce, as opposed to their old call center technology. So, across the U.S. we saw those. And in fact, around the world, as governments mobilized to be able to respond to citizens. But the final thing that I think is really incredible, is though is the way that the AWS teams and partners sprung into action to work with National Governments around the world. Over 26 National Governments run their vaccine management scheduling systems on AWS. The largest to date, being in India, where in a single day, the vaccine management system scheduled and conducted 22.5 million vaccinations. Which is more than the population of New York State in one week and one day. >> Wow. That's good. That's great progress. I got to say, I mean, that kind of impact is interesting. And we had Shannon Kellogg on earlier, talking about the Virginia impact with the Amazon $220 million being spread over a few Counties just in one year. The partnership between business... and governments with the Cloud, so much more agility. This really strikes at the core of the future of government. >> Max: I think so. People have talked about private-public partnerships for a long time. I'm really proud of some of the work that Amazon and the whole team is doing around the world in those types of public private partnerships. Whether they're in skilling and workforce with partnerships, like eight different States across the U.S. to deliver skills, training through community college based systems. Whether it's with healthcare systems. Like NHS or GEL over in the UK, to really start applying cloud-scale analytics and research to solve the problems that eventually you're going to get us to personalized healthcare. >> That's a great stuff. Cloud benefits are always good. I always say the old joke is, "You hang around the barbershop long enough, you'll get a haircut." And if you get in the Cloud, you can take advantage of the wave. If you don't get on the wave, your driftwood. >> And States found that out, in fact. You'd have customers who were well on their journey. They were really able to turn on a dime. They pivoted quickly. They delivered new mission systems with customers. Those who hadn't quite progressed to the same state, they found out their legacy. IT systems were just brittle and incapable of pivoting so quickly to the new needs. And what we found, John, was that almost overnight, a business, government, which was largely in-person and pretty high touch had to pivot to the point where their only interaction was now a digital system. And those who- >> John: Middle of the day, they could have race car on the track, like quickly. >> Well, we've got it. We do have race cars on the track, right? Every year we've got the artificial intelligence powered Amazon DeepRacer and Red River on the track. >> I can see it. Always a good showing. Final question. I know you got to go on and I appreciate you coming on- >> It's been great. >> with all your busy schedule. Looking ahead. What tech trends should we be watching as Public Sector continues to be powered by this massive structural change? >> Well, I think there's going to be huge opportunity in healthcare. In fact, this afternoon at four o'clock Eastern, we're talking with Dr. Shafiq Rab from Wellforce. He and folks at Veterans Affairs to tell you telehealth and telemedicine are two, the areas where there's still the greatest potential. The number of people who now are serviced, and the ability to service a population far more broadly dispersed, I think has dramatic potential in terms of simply making the planet more healthy. >> Like you said, the pandemics have exposed the right path and the wrong path. And agility, speed, new ways of doing things, telemedicine. Another example, I interviewed a great company that's doing a full stack around healthcare with all kinds of home, agents, virtual agents, really interesting stuff. >> It is. I think it's going to change the world. >> John: Max Peterson, Head of Public Sector. Thank you for coming on theCube, as always. >> John, it's my pleasure. Love the cube. We've always had a good time. >> Yeah. Great stuff. >> Peter: We'll keep on making this difference. >> Hey, there's too many stories. We need another Cube here. So many stories here, impacting the world. Here at the Amazon Web Services Public Sector Summit. I'm John Furrier, your host. Thanks for watching. (soft music)

>>from around the globe. It's the Cube covering Google Cloud. Next on Air 20. Hi, I'm Stew Minimum And and this is the Cube's coverage of Google Cloud next 20 on air, Of course. Last year we were all in person in San Francisco. This year it's an online experience. It's actually spanning many weeks and this week when we're releasing the Cube interviews, talking about application modernization, happy to welcome back program two of our Cube alumni. Chris Well, I've got Aparna Sinha, Uh, who is the director of product management, and joining her is Pali Bhat, who's the vice president of product and design, both with Google Cloud Poly. Welcome back. Thanks so much for joining us. >>Thank you. Good to be here. >>Well, so it goes without saying it. That 2020 has had quite a lot of changes. Really affect it. Start with you. You know, obviously there's been a lot of discussion is what is the impact of the global pandemic? The ripple in the economy on cloud. So I would love to hear a little bit. You know what you're hearing from your customers. What? That impact has been on on you and your business. >>Yes to thank thank you for asking as I look at our customers, what's been most inspiring for me to see is how organizations and the people in those organizations are coming together to help each other during this unprecedented event. And one of the things I wanted to highlight is, as we all adjust to this sort of new normal, there are two things that I keep seeing across every one of our customers. Better operation efficiency, with the focus on cost saving is something that's a business imperative and has drawn urgency. And the second bit is an increased focus on agility and business innovation. In the current atmosphere, where digital has truly become gone from being one of the channels being D channel, we're seeing our customers respond by being more innovative and reaching their customers in the way that they want to be rich. And that's been, for me personally, very inspiring to see. And we turned on Google Cloud to be a part of helping our customers in this journey in terms of our business itself. We're seeing tremendous momentum around our organization business because it plays directly into these two business imperatives around operational efficiency, cost saving and, of course, business innovation and agility. In Q two of 2020 we saw more than 100,000 companies use our application modernization platform across G ke and those cloud functions Cloud Run and our developers tools. So we've been, uh, just tagged with the response of how customers are using our tools in order to help them run their businesses, operate more efficiently and be more innovative on behalf of their customers. So we're seeing customers use everything from building mission critical applications who then securing, migrating and then operating our services. And we've also seen that customers get tremendous benefits. We've seen up to a 35% increase simply by using our own migration tools. And we've also seen it up to 75% improvement to all of the automation and re platform ing that they can do with our monetization platform. That's been incredible. What I do want to do. Those have a partner chime in on some of the complexity that these customers are seeing and how we're going about trying to address that >>Yes, eso to help our customers with the application modernization journey. Google Cloud really offers three highly differentiated capabilities. Us to the first one is really providing a consistent development and operations experience, and this is really important because you want the same experience, regardless of whether you're running natively in Google Cloud or you're running across clouds or you're running hybrid or you're running at the edge. And I think this is a truly unique differentiator off what we offer. Secondly, we really give customers and their developers industry leading guidance. And this is particularly important because there's a set of best practices on how you do development, how you run these applications, how you operate them in production for high reliability, a exceptional security staff, the stature and for the maximum developer efficiency on. And we provide the platform and the tooling to do that so that it can be customized to it's specific customers needs and their specific place on that modernization journey. And then the third thing on and I think this is incredibly important as well is that we would ride a data driven approach, a data driven optimization and benchmarking approach so that we can tell you where you are with regard to best practice and then help you move towards best practice, no matter where you're starting. >>Yeah, well, thank you, Aparna and Polly definitely resonates with what we're hearing. You know, customers need to be data driven. And then there's the imperative Now that digital movement Pali last year at the show, of course, Antos was, you know, really the talk of the conference years gone by. We know things move really fast, so if you could, you know, probably don't have time to get all of the news, but share with us the updates what differentiated this year along from a new standpoint, >>Yeah, So we've got tremendous set off improvements to the platform. And one of the things that I wanted to just share was that our customers as they actually migrate on to onto the cloud and begin the modernization journeys in their digital transformation programs. What we're seeing over and over is those customers that start with the platform as opposed to an individual application, are set up for success in the future. The platform, of course, is an tos where your application modernization journey begins. In terms of updates, we're gonna share a series off updates in block post, etcetera. I just want to highlight a few. We're sharing their availability off Antos for their middle swathe things that our customers have been asking about. And now our customers get to run on those on Prem and at the edge without the need for a hyper visor. What this does is helps organizations minimize unnecessary overhead and ultimately unlock all of the new cloud and edge use case. The second bit is we're not in the GF our speech to text on prem capability, but this is our first hybrid AI capability. So customers like Iron Mountain get to use hybrid AI, so they have full control of the infrastructure and have control off their data so they can implement data residency and compliance while still leveraging all of Google Cloud AI capabilities. Third services identity again. This extends existing identity solutions so that you can seamlessly work on and those workloads again. This is going to be generally available for on premise customers and better for Antos on AWS, and you're going to see more and more customers be able to leverage their existing identity investments while still getting the consistency that Anton's provides across environments. In the last one that I like to highlight is on those attached clusters, which lets customers bring any kubernetes conforming cluster on Toronto's and still take advantage of the advanced capabilities that until provides like declarative configurations and service automation. So one of the customers I just want to call out is Cold just built it. Entire hybrid cloud strategy on Anton's Day began with the platform first, and now we're seeing a record number of customers on Cold Start camaraderie. Take advantage of Mantel's tempting. With Macquarie Bank played, there's a number of use cases. I am particularly excited about major league baseball. I'm a big fan of baseball, and Major League Baseball is now using and those for 2020 season and all of the stadium across, trusting a large amount of data and gives them the capability to get those capabilities in stadiums very, really acceptable. All of those >>Okay, quick, quick. Follow up on that and those attached clusters because it was one of the questions I had last year. Google Cloud has partnerships with VM Ware for what they're doing. You know, Red Hat and Pivotal also is part of the VM Ware families, and they have their own kubernetes offering. So should I be thinking of this as a management capability that's similar to like what? What Andrew does Or maybe as your arca, Or is it just a kind of interoperability piece? How do we understand how these multiple kubernetes fit together? >>Yeah. So what we've done with Antos has really taken the approach that we need to help our customers are made and manage the infrastructure to specifically what Antos attach clusters gives our customers is they can have any kubernetes cluster as long as it's kubernetes conformance, they can benefit from all of the things that we provide in terms of automation. One of the challenges, of course, is you know, those two is configuring these very, very large instances in walls. A lot of handcrafting today we can provide declarative configuration. So you automate all of that. So think of this as configures code I think of this is infrastructure scored management scored. We're providing that service automation layer on top of any kubernetes conforming cluster with an tools. >>Great. Alright, uh, it's at modernization weeks, so Ah, partner, maybe bring us in aside. You were talking about your customers and what their what they're doing to modernize what's new that they should be aware of this year. >>Yeah, so So, First of all, you know, our mission is really to accelerate innovation in every organization through making their developers more productive as well as automating their operations. And this is something that is resonating even more in these times. Specifically, I think the biggest news that we have is really around, how we're going to help companies get started with the application modernization so that they can maximize the impact of their modernization efforts. And to do this, we're introducing what we're calling. The Google Cloud Application Modernization program or a Google camp for short on Google Camp has three pieces. It has an assessment, which is really data driven and fact based. It's a baseline assessment that helps organizations understand where they are in terms of their maturity with application modernization. Secondly, we give them a blueprint. This is something that is, is it encapsulates a specific set of best practices, proven best practices from development to security to operations, and it's something that they can put into practice and implement immediately. These practices, they cover the entire application lifecycle from writing the code to the See I CD to running it and operating it for maximum reliability and security. And then the third aspect, of course, is the application platform. And this is a modern platform, but also extremely extensible. And, as you know, it spans across clouds on this enables organizations to build, run and secure and, of course, manage both legacy as well as new applications. And the good news, of course, here is you know, this is a time tested platform. It's something that we use internally as well. For our Cloud ML services are being query omni service capability as well as for apogee, hot hybrid and many more at over time. So with the Google campus really covered all aspects of the application lifecycle. And we think it's extremely important for enterprises to have this capability. >>Yeah, so a party when you talk about the extent ability, I would expect that Google Cloud Run is one of the options there to help give us a bridge to get to server list. If that's where customers looking to my right on >>that, that's rights to the camp program provides is holistic, and it brings together many of our capabilities. So Cloud Code Cloud See I CD Cloud Run, which is our server less offering and also includes G ki e and and those best practices. Because customers for their applications, they're usually using multiple platforms. Now, in the case of Cloud Run, in particular, I want to highlight that there's been a lot of interest in the serverless capability during this last few months. In particular, I think, disproportionate amount of interest and server lists on container Native. In fact, according to the CNC F 2020 State of Cloud Native Development Report, you might have seen that, you know, they noted that 2.7 million cloud native developers are using kubernetes and four million are using serverless architectures or cloud functions, and that about 60% of back and developers are now using containers. So this just points to the the usage that was happening already and is now really disproportionately accelerated. In our case, you know, we've we've worked with several customers at the New York State Department and Media Market. Saturn are two that are really excellent stories with the New York State Department. They had a unemployment claims crisis. There was a lot. Ah, volume. That was difficult for their application to handle. And so we worked with them to re architect their application as a set of micro services on Google Cloud on our public sector team of teamed up with them to roll out a new unemployment website in record time. That website was able to handle the 1600% increase in Web traffic compared to a typical week. And this is very much do, too, the dev ops tooling that we provided and we worked with them on and then with Media market Saturn. This is really an excellent example in EMEA based example of a retailer that was able to achieve an eight X increase in speed as well as a 40% cost reduction. And these are really important metrics in these times in particular because for a retailer in the Cove in 19 crisis, to be able to bring new applications and new features to the hands of their customers is ultimately something that impacts their business is extremely valuable. >>Yeah, you think you bring up a really great point of partner when I traditionally think of application modernization. Maybe I've been in the space to long. But it is. Simplicity is not. The first thing that comes to mind is probably pointed out right now. There's an imperative people need to move fast, so I want to throw it out to both of you. How is Google's trying to make sure that, you know, in these uncertain times that customers can move fast and that with all these technology options that it could be just a little bit simpler? >>Yeah, I think I just, uh you know, start off by saying the first thing we've done is build all of our services from the ground up with automation, simplicity and agility in mind. So we've designed for development teams and operations teams be able to take these solutions and get productive with them right away. In addition, we understand that some of our largest customers actually need dedicated program where they can actually assess where they are and then map out a plan for incremental improvement so they can get on their journey to application modernization. But do it with the highest our way. And that was Google camp that apartment talked about ultimately at Google Cloud. Our mission, of course, is to accelerate innovation. Every organization toe hold developer velocity improvements, but also giving them the operation automation that we talked about with that application modernization platform. So we're very excited to be able to do this with every organization. >>Great. Well, Aparna, I'll let you have the final word Is the application modernization week here at Google Cloud. Next online, you can have the final take away for customers. >>Well, thank you, cio. You know, we are extremely passionate about developers on. We want to make sure that it is easy for anyone, anywhere to be able to get started with development as well as to have a path to, uh, accelerated path to production for their applications. So some of what we've done in terms of simplicity, which, as you said is extremely important in this environment, is to really make it easy to get started on. Some of the announcements are around build packs and the integration of cloud code are plug ins to the development environment directly into our serverless environment. And that's the type of thing that gets me excited. And I think I'm very passionate about that because it's something that applies to everyone. Uh, you know, regardless of where they are or what type of person they are, they can get started with development. And that can be a path to economic renewal and growth not just for companies, but for individuals. And that's a mission that we're extremely passionate about. Google Cloud >>Apartment Poly Thank you so much for sharing all the updates. Congratulations to the team. And definitely great to hear about how you're helping customers in these challenging times. >>Thank you for having us on. >>Thank you. So great to see you again. >>Alright. Stay tuned for more coverage from stew minimum and, as always, Thank you for watching the Cube. Yeah, yeah.

>>from around the globe. It's the Cube with digital coverage of you. I path live the release show brought to you by you. >>I path Hi. Welcome back to this special R p A drill down with support from you. I path You're watching The Cube. My name is Dave Volante and Bobby CMO. You know I passed Bobby. Good to see you again. Hope you're doing well. Thanks for coming on. >>Hi, Dave. It's great to see you as well. It's always a pleasure to be on the Cube and even in the virtual format, this is really exciting. >>So, you know, last year at forward, we talked about the possibility of a downturn. Now nobody expected this kind of downturn. But we talked about that. Automation was likely something that was going to stay strong even in the downturn. We were thinking about potential recession or an economic downturn. Stock market dropped, but nothing like this. How are you guys holding up in this posted 19 pandemic? What are you seeing in the marketplace? >>Yeah, we certainly we're not thinking of a black swan or rhino or whatever we call this, but, you know, it's been a pretty crazy couple of months for everybody. You know, when When this first started, we were like everybody else. Not sure how it impact our business. The interesting thing has been that you're in code. It actually brought a reality check through. A lot of companies and organizations realize that it's very few tools to respond quickly, right? Bond with, you know, cost pressures that we're urgent or preserving revenue, perhaps, or responding to Ah, strange resource is, you know, in all centers, or or built to support. You know, the surge in in, um, in the healthcare community. And so r p a became one of those tools that quickly waas knowledge and adopted. And so we went out two months ago to go find those 1st 1st use cases. Talk about him, then. You know, 1st 30 days we had 50 in production, right? Companies, you know, great organizations like Cleveland Clinic, right? You know where they use their parking lot? Give the first tests the swab tests, right of, uh, well, who have proven right? You know, they had a line of 88 hours by, you know, putting a robot in place in two days. They got that line down by 80 or 90% right? It is a huge hit as we see that kind of a kind of benefit all across right now in the world. Right now we have. We were featured in The Wall Street Journal recently with nurses and a large hospital system in Ireland called Matter. The nurses said in the interview that, you know they have. They were able to free up time to be a patient's right, which is what they're there for, anyway, thanks to robots during this during this emergency. So I think you know, it's it's definitely raise The awareness that that this technology is provides an amazing time to value, and that's it's pretty unprecedented in the world of B two B software. >>I want to share some data with you in our community is the first time we've we've shown this. Guys would bring up the data slide, and so this is ah, chart that e. T are produced. There's enterprise technology research. They go out of reporter. They survey CIOs and I T practitioners and a survey in different segments and the use of methodology Net score. And this is sort of how method how Net scores derived. And so what this chart shows is the percent of customers that responded there were about 125 You I path customers that responded. Are you adopting new U I path? Are you increasing spending in 2020? Are you planning on flat spending or decreasing spending? Are you replacing the platform of beacons? And so basically, we take the green, uh, subtract the read from the green, and that gives us net score. But the point is that Bobby abouts about 80% of your customers are planning to spend Maurin 2020 than they spent in 2019 and only about 6% of planning on spending less, which is fairly astounding. I mean, we've been reporting on this for a while in the heat nous in the in the automation market generally and specifically. But are you seeing this in the marketplace? And maybe you could talk about why? >>Well, we just finished our first fiscal quarter into the end of April, and we're still privately held, so we can be, uh, find some insights of our company, but yeah, the the pace of our business picked up actually in in the mark. April timeframe. Um, customer adoption, large customer adoption. Um, the number of new new companies and new logos were at a record high. And, you know, we're entering into this quarter now, and we have some 20 plus $1,000,000 deals that are like that. It closed, right? I mean, that's probably a 30% increase Versus what? How many we have today alone. Right? So our business, you know, is is now well over 400 million and air are we ended last year, 3 60 and the growth rate continues fast. I think you know what's interesting is that the pace of the recode world was already fast, right? The the luxury of time has kind of disappeared. And so people are thinking about, you know, they don't have they can't wait now, months and years for digital transformation. They have to do things in days and days and days and weeks. And and that's where our technology really comes into play. Right? And and and it actually is also coming to play well in the world of the remote workforce. Reality two of the ability for remote workers to get trained while they're home on automation to build automation pipelines to to build automation. Now, with our latest release, you can download our podcast, capture and report what you're doing, and it basically generates the process definition document and the sample files, which allow for faster implementation by our center of excellence. So what's really happening here? We see it is a sense of urgency coming out of this. Prices are coming down the curve. Hopefully, now this is of urgency that our customers are facing in terms of how they respond, you know, and respond digitally to helping their business out. And it varies a lot by industry, our state and local business was really thinking was not going to be the biggest laggard of any industry picked up in a significant way in the last couple of months, New York State, with Governor Cuomo, became a big customer of ours. There's a quote from L. A County, see Iot that I've got here. They just employed us. It's public, this quote, he said. Deputy CIO said Price is always the mother of invention. We can always carry forward the good things they're coming out of this crisis situation. He's referring to our P A is being a lesson. They learned hearing this, that they're going to carry forward. And so we see this state of Oklahoma became a customer and others. So I think that's that's what we're seeing kind of a broad based. It's worldwide. >>You're really organizations can't put it off anymore. I think you're right. It sort of brought forward the future into the present. Now you mentioned 360 million last year. We had forecast 350 million was pretty good for you guys released, so it's happy about that. But so obviously still a strong trajectory. You know, it might have been higher without without covert. We'll never know, but sort of underscores the strength of the space. Um, and February you guys, there was an article that so you're essentially Theo Dan, Daniel Hernandez was quoted. Is that on hold now? Are you guys still sort of thinking about pressing forward or too early to say right? >>Yeah. I mean, I think I think the reality is we have a very, very strong business. We've raised, you know, significant money from great investors, some of which are the leading VCs in the world. and also that the public company investors and, you know, we have, ah, aggressive plan. We have an aggressive plan to build out our platform for hyper automation to continue. The growth path is now becoming the center of companies of I, T and Digital Strategies, not on the side. Right. And so to do that, you know, we're gonna want capital to help fuel our our our ambitions and fuel Our ability to serve our customers and public markets is probably a very, very logical one. As Daniel mentioned in a in a A recent, uh, he's on Bloomberg that he definitely sees. That is ah, maybe accelerating that, You know, we're late Last year, we started focusing on sustainable growth as a company and operational regular. These are important things in addition to having strong growth that, you know, a long term company has to have in place. And I can tell you, um, I'm really excited about the fact that we, you know, we operate very much like a public company. Now, internally, we you know, we do draft earnings releases that aren't public yet, and we do mock earnings, earnings calls, and we have hired Thomas Hansen is runs our chief revenue officer with storage backgrounds. And so you're gonna interview as well. These are these are these are the best of the best, right? That joint, they're joined this company, they're joining alongside the arm Kalonzo the world that are part of this company. And so I think, Yeah, I think it's an AR It's likely. And and it's gonna We're here to be a long term leader in this decade of automation. >>Well, and one of the other things that we forecast on our breaking analysis we took a look at the total available market kind of like into it. Early days of service Now is you know, people were really not fully understanding the market and chillin C it is is quite large, so video. So when we look at the competition, you know, you guys, if I showed you the same wheel with automation anywhere, it would also look strong. You know, some of the others, maybe not a strong but still stronger than many of the segments. I mean, for instance, you know, on Prem hardware. You know, compared with that and you know the automation space in general across the board is very, very strong. So I wonder if maybe you could talk a little bit about how you guys differentiate from the competition. How you see that? >>Yeah, I think you know, we've We've come a long way in the last three years, right? In terms of becoming the market leader, having the highest market share, we're very open and transparent about our numbers with We've long had the vision of a robot. Every person, uh, and and we've been delivering on that on on that vision and ah, building out a platform that helps companies, you know, transform digitally enterprise wide. Right. So, you know, I don't see any of our competitors with a platform for hyper automation like this. We have an incredible focus on the ability to help people actually find the ideas, build the pipeline, score the pipelines and integrate those with the automation center of excellence. Right? We have the ability now with our latest release to help test automation testers now not only in the world of art A but actually take robotic robots and and architecture into doing test automation. The traditional test automation market in a much better and faster way So you know, we're innovating at a pace that that it is, I think, much faster than I don't. I don't know automation anywhere. I won't share any their numbers. You know, who knows what the numbers are. We have guesses, but I'm fairly certain that we continue to gain share on them. But you know, what's most important is customer adoption, and we've also seen a number of customers switch from some of our competitors to us. Our competitors are undercapitalized and middle. Invest in R and D. This is an investment area, really build a platform out from our competitors have architectures that are hard to upgrade, right? This has been a big source of pain for companies that have been on our competitors. Where upgrades are difficult requires them to retest every time where our upgrades are very rolling, you know, are very smooth. We have an insider program which you know, I don't think any of our competitors have. If you go inside that you had pat that your customer every single bit every single review betting, private preview, public preview and general availability, you can provide feedback on and the customers can score up new ideas. They drive our our roadmap. Right. And this is I think we operate differently. I think our growth is a is a good indication of that. And, you know, and there are new competitors like Microsoft. But I think you know, you know, medium or long term, you know, they're gonna make effort around our, um and you know, they're behind the, um, automation is really hard. The buried entry here is not it's not. Not easy. And we're going to keep me on that platform, play out, and I think that's ah, that's what makes us so different. Um and ah, you know, we have the renewal numbers, retention numbers, expansion numbers and and the revenue numbers to improve that, uh, you know, we're number one. >>Well, so I mean, there's a lot of ways to skin the cat, and you're right. You guys are really focused, you know, you automation anywhere really focused on this space, and you shared with us how you differentiate there. But as you point out Microsoft, they sort of added on I had talked to Allan, preferably the day from paga. You know, those guys don't position themselves as our PC, but they have r p A. I talked to, you know, our mutual friend Robert Young John the other day, right? They're piling onto this this trend, right? So why not? Right, It's it's ah, it's hot. But so, you know, clearly you guys are innovating there. I want to talk about your vision before we get into the latest product release two things that I would call out the term hyper automation with, I think is the Gartner term. And then it will probably stick. And then this this idea of a robot for every person How would you describe your vision? >>Yeah, I mean, we think that robots can and improve, you know, the the lives of of or pers everywhere, right? We think in every every function, every role. And we see that already, the job satisfaction and the people don't want to do the mundane, repetitive work, right? The new hires coming out of college, you know, they're gonna be excel and sequel server. We're no longer the tools of productivity. For them, it's it's your path. We have business. Schools that have committed top tier business schools have committed to deploying your path or to putting you're passing every force in the school these students are graduating with the right path is their most important skill going into companies. And they're gonna expect to be able to use robots within their companies in their daily lives. A swell. So, you know, we have customers today that are rolling out a robot for every person you know. We had Ah, Conoco Phillips on just earlier in our launch, talking about citizen developers, enabling says, developer armies of developers and growing enterprise wide. See, Intel was on as well from Singapore, the large telco. They're doing the exact same thing. So I think you know, I think this is this is this is this is about broad based digital transformation. Everybody participating And what happens is the leading companies to do this, you know, they're going to get the benefit of benefits out of it. It can reinvest that productivity, benefits and data science and analytics and serving customers and in, you know, and and, ah, new product ideas. And so, you know, this is this. You know, automation is going to fuel now the ability for companies to really differentiate and serve their customers better. And it's only needed enterprise wide view on it that you really maximizing. Take Amazon, for example, a great customer during during this prices. You know, they're trying to hire hundreds of thousands of people, right? Help in the fact that in their in their distribution centers elsewhere, this all served demand to help people who like you and I home or ordering things that we need, right? Well, they're use your path robots all throughout their HR hr on boarding HR recruiting HR administration And so helping them has been a big during this prices surge of robots is helping them actually hire workers. You know another example of Schneider Electric and amazing customer of ours. They're bringing their plants, their manufacturing facilities, implants back online faster by using robots to help manage the PPE personal protective equipment in the plant allow people workers to get back to work faster. Right? So what's happening is is, you know in that in those cases is your different examples of robots and different functions, right? In all cases, it's about helping grow a company faster. It's about helping protect workers. It's about helping getting revenue machines back up and running after Kobe is going to be critical to get back to work faster. So I'm I'm really excited about the fact that as people think about automation across the organization, the number of ideas and Aaron opportunities for improvement are are we're just starting to tap that potential. >>Well, this is why I think the vision is so important because you're talking about things that are transformative. Now, as you well know, one of the criticisms of RPS. So you have people, the suppliers and just yeah, we, you know, looking at mundane tasks, just automating mundane tasks like sometimes paving the cow path and say, you're very much aware of that criticism. But if I look at the recent announcements, you're really starting to build out that vision that you just talked about. They're really four takeaways. You sort of extending the core PAP platform, injecting AI end some or and more automation end to end automation really taken that full lifestyles lifecycle systems view and the last one is sort of putting it talks to the robot. For every person that sort of citizen automation, if you will, that sort of encompasses your product announcements. So it wasn't just sort of a point Announcement really is a underscores the platform. I wonder if you could just What do we need to know about you guys? Just that out. >>So we think about how we think about the rolls back to a division of robots person how automation can help different roles. And so this product launch $20 for this large scale launch that you just articulated, um, impacts in a fax and helps many different kinds of new roles Certainly process analysts now who examined processes, passes performance improvements. You know, they're a user of our process mining solution in our past. Find a solution that helps speed on our way. Arpaio engine, no testers and quality engineers. Now they can actually use studio pro and actually used test robots are brand new, and our new test manager is sort of the orchestration and management of test executions. Now they can participate in in leveraged power of robots and what they do as well. And we kind of think about that, you know, kind of across the board in our organization across the platform. They can use tools like you have path insights in Europe. If you're an analyst or your, uh ah. B I, this intelligence person really know what's going on with robots in terms of our wife for my organization and provide that up to the, you know, sea levels in the board of directors in real time. So I think that's that's the big part. Here is we're bringing, and we're helping bring in many, many different kinds of roles different kinds of people. Data scientist. You mentioned AI. Now data scientists can build a model. The models applied to ai fabric an orchestrator. It's drag and drop by our developer in studio, and now you can turn, you know, a a mundane, rules based task right into an experience based ones where a robot can help make a decision right. Based on experience and data, they can tweak and tune that model and data scientists can interact, you know, with the automation is flowing through your path. So I think that's how we think about it, right? You know, one of the great new capabilities, as well as the ability to engage line workers, dispatch out workers If you're a telco or or retail story retail store workers you know the robots can work with humans out in the field. We've got one real large manufacturer with 18,000 drivers in a DST direct store delivery scenario. And you know the ability for them to interact with robots and help them do their job in the field. Our customers better after the list data entry and data manipulation, multiple systems. So I this is this makes us very unique in our vision and in our execution. And again, I don't I have not heard of a single ah example by competitors that has any kind of a vision or articulation to be able to help a company enterprise wide and, you know, with the speed and the and the full, full vision that we have. >>Okay, so you're not worried about downturns. You can't control black swans Anyway, you're not worried about the competition. It feels like you know, you're worried about what you're worried about. You want about growing too fast. Additionally, deploying the the capital that you've raised. What worries you? >>Yeah. You know, we're paranoid or paranoid company, right? And when it comes to the market and and trying to drive, I think we've done a lot to help actually push the rock up the hill in terms of really, really driving our market, building the market, and we want to continue that right and not let up. So there's this kind of desire to never let up, right? Well, we always remind ourselves we must work harder, must work harder. We must work harder. And that's that's That's sort of this this mentality around ourselves, by the smartest people. Hire the smartest people you work with our customers, our customers are priority. Do that with really high excellence and really high sincerity that it comes through and everything that we do, you know, to build a world class operation to be, you know, Daniel DNS. When I first met him, he said, You know, I really want to be the enemy of the great news ecology company that serve customers really well. And it was amazing things for society, and and, you know, we're on that track, but we've got, you know, we're in the in the in the early innings. So, you know, making sure that we also run our business in a way that, um, you know, uh, is ready to be Ah, you know, publicly successful company on being able to raise new sources of capital to fund our ambitions and our ideas. I mean, you saw the number of announcements from our 24 release. It reminded me of an AWS re invent conference, where it's just innovation, innovation, innovation, innovation. And these are very real. They're not made up mythical announcements that some of our competitors do about launching some kind of discovery box doesn't exist, right? These are very real with real customers behind them, and and so you know, just doing that with the same level of tenacity. But being, you know, old, fast, immersed and humble, which are four core culture values along the way and not losing that Azeri grow. That's that's something we talk about maintaining that culture that's super critical to us. >>Everybody's talking about Okay, What What's gonna be permanent? Postpone it. I was just listening to Julie Sweet, CEO of Accenture, and she was saying that, you know, prior to Covic, they had data that showed that the top 25% of companies that have leaned into digital transformation were outperforming. You know, the balance of their peers, and I know question now that the the rest of that base really is going to be focused on automation. Automation is is really going to be one of those things that is high, high priority now and really for the next decade and beyond. So, Bobby, thanks so much for coming on the Cube and supporting us in this in this r p. A drill down. Really appreciate it, >>Dave. It's always a pleasure as always. Great to see you. Thank you. >>Alright. And thank you for watching everybody. Dave Volante. We'll be right back right after this short break. You're watching the cube. >>Yeah, yeah, yeah, yeah.

>> Narrator: From Miami Beach, Florida, it's theCUBE, covering Acronis Global Cyber Summit 2019. Brought to you by Acronis. >> Okay, welcome back everyone. It's theCUBE's two day coverage of Acronis' Global Cyber Summit 2019, here in Miami Beach, at the Fontainebleau Hotel. I'm John Furrier, host of theCUBE. We're with Katya Fisher, Partner Chief and Chief Privacy Officer at Greenspoon Marder. Legal advice is right here on theCUBE, ask her anything. We're going to do a session here. Thanks for coming on, appreciate it. >> Thank you very much, I'm going to have to do the little disclaimer that all lawyers do, which is, nothing here is to be construed as advice. It's just opinions and information only. >> I didn't mean to set you up like that. All kidding aside, you closed for the panel here for Acronis' conference. Obviously, cyber protection's their gig. Data protection, cyber protection. Makes sense, I think that category is evolving from a niche, typical enterprise niche, to a much more holistic view as data becomes you know, critical in the security piece of it. What was on the, what were you guys talking about in the panel? >> Well, so, the first issue that you have to understand is that cyber protection is something that has now become critical for pretty much every individual on the planet, as well as governments. So something that we talked about on the panel today was how governments are actually dealing with incoming cyber threats. Because now, they have to take a look at it from the perspective of, first of all, how they themselves are going to become technologically savvy enough to protect themselves, and to protect their data, but also, in terms of regulation and how to protect citizens. So, that was what the panel discussion was about today. >> On the regulatory front, we've been covering on SiliconANGLE, our journalism site, the innovation balance, is regulatory action helpful or hurtful to innovation? Where is the balance? What is the education needed? What's your thoughts on this, where are we? I mean early stages, where's the progress? What needs to get done? What's your view on the current situation? >> So, I'm an attorney, so my views are perhaps a bit more conservative than some of the technologists you might speak with and some of my clients as well. I think that regulation is, as a general matter, it can be a good thing. And it can be quite necessary. The issues that we see right now, with regard to regulation, I think one of the hottest issues today is with respect to data laws and data privacy laws. And that's obviously something that I think everyone is familiar with. I mean take a look at, in the United States alone. We've seen the city of Baltimore dealing with breaches. We've seen other parts of the government, from the Federal level all the way down to municipalities, dealing with breaches in cyber attacks. We've seen data breaches from banks, Capital One, right? I believe Dunkin' Donuts suffered a breach. Equifax, and then at the same time we've also seen individuals up in arms over companies like 23andMe and Facebook, and how data is used and processed. So data seems to be a very very hot button issue today across the board. So something that we're really thinking about now is, first of all, with respect to the regulatory climate, how to deal with it, not only in the United States, but on a global level, because, when we talk about technology and the internet right, we're in an era of globalization. We're in an era where a lot of these things go across boarders and therefore we have to be mindful of the regulatory regimes in other places. So, I'll give you an example. You might be familiar with the GDPR. So the GDPR is in the European Union. It's been in effect now for the last year and a half, but it affects all my U.S. clients. We still have to take a look at the GDPR because at the end of the day my clients, my firm, might be dealing with foreign companies, foreign individuals, companies that have some sort of nexus in the European Union, et cetera. So because of that, even though the GDPR is a set of regulations specific to the European Union, it becomes extremely important in the context of the United States and globally. At the same time, the GDPR has certain issues that then end up conflicting often times with some of the regulations that we have here in the United States. So, for example, the right to be forgotten is perhaps the most famous clause or part of the GDPR and the right to be forgotten is this concept in the GDPR that an individual can have information erased about him or her in order to protect his or her privacy. The problem is that from a technical's perspective, first of all, it's an issue because it becomes very very difficult to figure out where data is stored, if you're using third-party processors, et cetera. But from a regulatory perspective, the conflict comes in when you take a look at certain U.S. laws. So take a look for example at banking regulations in the United States. Banks have to hold some types of data for seven years and other types of data they can never delete. Right? Lawyers. I am licensed by the New York State Bar Association. Lawyers have their own rules and regulations with regard to how they store data and how they store information. HIPAA, medical records. So, you see these conflicts and there are ways to deal with them appropriately, but it becomes some food for thought. >> So it's complicated. >> It's really complicated >> There's a lot of conflicts. >> Yeah. >> First of all, I talked to a storage guy. He's like data? I don't even know which drive that's on. Storage is not elevated up to the level of state-of-the-art, from a tracking standpoint. So, it's just on the business logic is complicated. I can't imagine that. So, I guess my question to you is that, are you finding that the jurisdictional issue, is it the biggest problem, in terms of crossport and the business side or is the technical underpinnings, that with GDPR's the problem or both? What's your-- >> I mean it's both, right? They're a lot of issues. You're right, it's very complicated. I mean, in the United States we don't have some sort of overarching federal law. There's no cyber protection law in the United States. There's no overarching data protection law. So, even in the U.S. alone, because of federalism, we have HIPAA and we have COPPA which protects children and we have other types of acts, but then we also have state regulations. So, in California you have the California Privacy Act. In New York you have certain regulations with regard to cyber security and you have to deal with this patchwork. So, that becomes something that adds a new layer of complexity and a new layer of issues, as we take a look, even within the U.S. alone, as to how to deal with all of this. And then we start looking at the GDPR and all of this. From a technical perspective. I'm not a technologist, but. >> Katya, let me ask you a question on the (mumbles) and business front. (mumbles) I think one of the things. I'm saying it might or may not be an issue, but I want to get your legal weigh-in on this. >> Katya: Sure. >> It used to be when you started a company, you go to Delaware, very friendly, domicile in Delaware, do some formation there, whether you're a C corp or whatever, that's where we tend to go, raise some money, get some preferred stock, you're in business. >> Is there a shift in where companies with domicile, their entity, or restructure their companies around this complexity? Because, there's two schools of thought. This brute force act, everything coming at you, or you restructure your corporate formation to handle some of the nuances, whether it's I have a Cayman or a Bermuda... whatever's going on in the regulatory regime, whether it's innovative or not. Are people thinking like that? Or, what's your take on it? What's some of the data you're seeing from the field around, restructuring around the problem? >> So, with respect to restructuring, specifically around data laws and data protection laws, I'm not seeing too much of that, simple because of the fact that regulations like the GDPR are just so all-encompassing. With respect to companies setting up in Delaware as opposed to other jurisdictions, those are usually based on two issues, right, two core ones, if I can condense it. One has to do with the court system and how favorable a court system is to the corporation, and the second is taxes. So, a lot of times when you see companies that are doing all of this restructuring, where they're setting up in offshore zones, or et cetera, it's usually because of some sort of a tax benefit. It might be because of the fact that, I don't know, for example, intellectual property. If you have a company that's been licensing IP to the United States, there's a 30% withholding tax when royalties are paid back overseas. So a lot of times when you're looking at an international structuring, you're trying to figure out a jurisdiction that might have a tax treaty with the United States, that will create some sort of an opportunity to get rid of that 30% withholding. So, that's where things usually come into play with regard to taxes and IP. I haven't seen yet, on the side of looking for courts that are more favorable to companies, with respect to data privacy and data protection. I just haven't seen that happen yet because I think that it's too soon. >> How do companies defend themselves against claims that come out of these new relations? I mean GDPR, I've called it the shitstorm when it came out. I never was a big fan of it. It just didn't. I mean, I get the concept, but I kind of understood the technical issues, but let's just say that you're a small growing business and you don't have the army of lawyers or if someone makes a claim on you, I have to defend it. How are companies defending themselves? Do they just shut down? Do they hire you guys? I mean, obviously lawyers need to be involved. But, at some point there's a line of where having a U.S. company and someone consumes my media in Germany and it says, hey I'm a German citizen. You American company, delete my records. How does that work? Do I have to be responsible for that? I mean, what's? >> So, it's really case-by-case basis. First of all, obviously, with regard to what I was talking about earlier, with respect to the fact that there are certain regulations in the U.S. that conflict with GDPR and the right to be forgotten. If you can actually assert a defense and sort of a good reason for why you have to maintain that information, that's step one. Step two is, if it's some complaint that you received, is to delete the person's information. There's an easier way to do it. >> Yeah, just do what they want. >> Just comply with what they want. If somebody wants to be off of a mailing list, take them off the mailing list. The third is, putting in best practices. So, I'm sure a lot of things that people see online, it's always great to go ahead and obtain legal counsel, even if you're consulting with a lawyer just for an hour or two, just to really understand your particular situation. But, take a look at privacy policies online. Take a look at the fact that cookies now have a pop-up whenever you go to a website. I'm sure you've noticed this, right? >> John: Yeah. So, there are little things like this. Think about the fact that there are, what is known as clickwrap agreements. So, usually you have to consent. You have to check a box or uncheck a box with respect to reading privacy policies, being approved for having your email address and contact information somewhere. So, use some common sense. >> So, basically don't ignore the prompt. >> Don't ignore the problem. >> Don't ignore it. Don't stick your head in the sand. It'll bite you. >> Correct. And the thing is, to be honest, for most people, for most small companies, it's not that difficult to comply. When we start talking about mid-size and large businesses, the next level, the next step, obviously beyond hiring attorneys and the like, is try to comply with standards and certifications. For example, there's what is known as ISO standards. Your company can go through the ISO 27001 certification process. I think it costs around approximately $20,000. But, it's an opportunity to go ahead, go through that process, understand how compliant you are, and because you have the certification, you're then able to go to your customers and say, hey, we've been through this, we're certified. >> Yeah. Well, I want to get, Katya, your thoughts, as we wrap up on this segment, around Crypto and Blockchain. Obviously, we're bullish on Blockchain. We think this is a supply chain. (mumbles) Blockchain can be a good force, although some think there's some work needs to be done on the whole energy side of it, which is, we would agree. But, still. I'm not going to make that be a wet blanket of excitement. But cryptocurrency has been fraudulent. It's been. The SCC's been cracking down in the U.S., in the news. Lieber's falling apart, although, I called that separately, but, (laughing) it had nothing to do with that Lieber. It was more of Facebook, but. Telegram. We were talking about that, others. People are getting handcuffed on this stuff. They're really kind of clamping down. But, overseas in Asia, it's still an unregulated, seems to be (mumbles) kind of market. Your advice to clients was to shy away, be careful? >> My advice to clients is as follows. First of all, Blockchain and cryptocurrency are not the same thing. Right? Cryptocurrency is a use case coming out of Blockchain technology. I think that in the United States, the best way to think about it is to understand that the term cryptocurrency, from a regulatory perspective, is actually a misnomer. It's not a currency. It's property. Right? It's an asset. It's digital assets. So, if you think about it the same way that we think of shares in a company, it's actually much easier to become compliant, because, then you can understand that it's going to be subject to U.S. securities laws, just like other securities. It's going to be taxed, just like securities are taxed, which means that it's going to be subject to long and short-term capitol gain, and it's also going to be subject to the other regulatory restrictions that are adherent to securities, both on the federal and state level. >> It's interesting that you mentioned security. The word security. If you look back at the ICO craze, internet coin offerings, crypto offerings, whatever you call it, The people who got whacked the most were the ones that went out as a utility tokens. Not to get nerdy on this, but utility and security are two types of tokens. The ones that went out and raised money as the utility token had no product, raised money using the utility that doesn't exist. That's essentially a security. And, so, no wonder why they're getting slapped. >> They're securities. Look, Bitcoin, different story, because Bitcoin is the closest to being I guess, what we could consider to be truly decentralized, right? And the regulatory climate around Bitcoin is a little bit different from what I'm talking about, with respects to securities laws. Although, from a tax perspective, it's the same. It's taxed as property. It's not taxed the way that foreign currency is taxed. But ultimately, yeah. You had a lot of cowboys who went out, and made a lot of money, and were just breaking the law, and now everyone is shocked when they see what's going on with this cease-and-desist order from the SCC against Telegram, and these other issues. But, none of it is particularly surprising because at the end of the day we have regulations in place, we have a regulatory regime, and most people just chose to ignore it. >> It's interesting how fast the SCC modernized their thinking around this. They really. From a speed standpoint, all government agencies tend to be glacier speed kind of movement. They were pretty fast. I mean, they kind of huddled on this for a couple months and came out with direction. They've been proactive. I got to say. I was usually skeptical of most government organization. I don't think they well inform. In this case, I think the SCC did a good job. >> So, I think that the issue is as follows. You know, Crypto is a very very very small portion of what the SCC deals with, so, they actually paid an inordinate amount of attention to this, and, I think that they did it for a couple of reasons. One is because, you asked me in the beginning of this interview about regulations versus innovation. And, I don't think anyone wants to stifle innovation in America. It's a very interesting technology. It's very interesting ideas, right? No one wants that to go away and no one wants people to stop experimenting and stop dreaming bigger. At the same time, the other issue that we've seen now, especially, not only with the SCC, but with the IRS now getting involved, is the fact that even though this is something very very small, they are very concerned about where the technology could go in the future. The IRS is extremely concerned about erosion of the tax space. So, because of that, it makes a lot of sense for them to pay attention to this very very early on, nip this in the bud, and help guide it back into the right direction. >> I think that's a good balance. Great point. Innovation doesn't want to be stifled at all, absolutely. What's new and exciting for you? Share some personal or business updates in your world. What's going on? What's getting you excited these days, in the field? >> What's getting me excited these days? Well, I have to tell you that one thing that actually has gotten me excited these days is the fact that the Blockchain and cryptocurrency industries have grown up, substantially. And, now we're able to take a look at those industries in tandem with the tech industry at large, because they seem to sort of be going off in a different direction, and now we're taking a look at it, and now you can really see sort of where the areas that things are going to get exciting. I look at my clients and I see the things that they're doing and I'm always excited for them, and I'm always interested to see what new things that they'll innovate, because, again, I'm not a technologist. So, for me, that's a lot of fun. And, in addition to that, I think that other areas are extremely exciting as well. I'm a big fan of Acronis. I'm a big fan of cyber protection issues, data protection, data regulation. I think something that's really interesting in the world of data regulation, that actually has come out of the Blockchain community, in a way, is the notion of data as a personal right, as personal property. So, one of the big things is the idea that now that we've seen these massive data breaches with Facebook and 23andME, and the way that big government, big companies, are using individuals' datas, the idea that if data were to be personal property, it would be used very very differently. And technologists who are using Blockchain technology say that Blockchain technology might actually be able to make that happen. Because if you could have a decentralized Facebook, let's say, people could own their own data and then use that data as they want to and be compensated for it. So, that's really interesting, right-- Yeah, but, if you're just going to use the product, they might as well own their data, right? >> Katya: Exactly. >> Katya, thanks for coming on theCUBE. Thanks for the insight. Great, compelling narrative. Thanks for sharing. >> Sure, thank you very much. >> Appreciate it. I'm John Furrier here on theCUBE, Miami Beach, at the Fontainebleau hotel for Acronis' Global Cyber Summit 2019. We'll be back with more coverage after this short break.

>> Live from Times Square in New York City, it's theCUBE, covering IBM's Change the Game, Winning with AI, brought to you by IBM. >> Hi everybody, welcome back to theCUBE's special presentation. We're here at the Western Hotel and the theater district covering IBM's announcements. They've got an analyst meeting today, partner event. They've got a big event tonight. IBM.com/winwithAI, go to that website, if you're in town register. You can watch the webcast online. You'll see this very cool play of Vince Lombardy, one of his famous plays. It's kind of a power sweep right which is a great way to talk about sort of winning and with X's and O's. So anyway, Daniel Hernandez is here the vice president of IBM analytics, long time Cube along. It's great to see you again, thanks for coming on. >> My pleasure Dave. >> So we've talked a number of times. We talked earlier this year. Give us the update on momentum in your business. You guys are doing really well, we see this in the quadrants and the waves, but your perspective. >> Data science and AI, so when we last talked we were just introducing something called IBM Club Private for data. The basic idea is anybody that wants to do data science, data engineering or building apps with data anywhere, we're going to give them a single integrated platform to get that done. It's going to be the most efficient, best way to do those jobs to be done. We introduced it, it's been a resounding success. Been rolling that out with clients, that's been a whole lot of fun. >> So we talked a little bit with Rob Thomas about some of the news that you guys have, but this is really your wheelhouse so I'm going to drill down into each of these. Let's say we had Rob Beerden on yesterday on our program and he talked a lot about the IBM Red Hat and Hortonworks relationship. Certainly they talked about it on their earnings call and there seems to be clear momentum in the marketplace. But give us your perspective on that announcement. What exactly is it all about? I mean it started kind of back in the ODPI days and it's really evolved into something that now customers are taking advantage of. >> You go back to June last year, we entered into a relationship with Hortonworks where the basic primacy, was customers care about data and any data driven initiative was going to require data science. We had to do a better job bringing these eco systems, one focused on kind of Hadoop, the other one on classic enterprise analytical and operational data together. We did that last year. The other element of that was we're going to bring our data science and machine learning tools and run times to where the data is including Hadoop. That's been a resounding success. The next step up is how do we proliferate that single integrated stack everywhere including private Cloud or preferred Clouds like Open Shift. So there was two elements of the announcement. We did the hybrid Cloud architecture initiative which is taking the Hadoop data stack and bringing it to containers and Kubernetes. That's a big deal for people that want to run the infrastructure with Cloud characteristics. And the other was we're going to bring that whole stack onto Open Shift. So on IBM's side, with IBM Cloud Private for data we are driving certification of that entire stack on OpenShift so any customer that's betting on OpenShift as their Cloud infrastructure can benefit from that and the single integrated data stack. It's a pretty big deal. >> So OpenShift is really interesting because OpenShift was kind of quiet for awhile. It was quiest if you will. And then containers come on the scene and OpenShift has just exploded. What are your perspectives on that and what's IBM's angle on OpenShift? >> Containers of Kubernetes basically allow you to get Cloud characteristics everywhere. It used to be locked in to kind of the public Cloud or SCP providers that were offering as a service whether PAS OR IAS and Docker and Kubernetes are making the same underline technology that enabled elasticity, pay as you go models available anywhere including your own data center. So I think it explains why OpenShift, why IBM Cloud Private, why IBM Club Private for data just got on there. >> I mean the Core OS move by Red Hat was genius. They picked that up for the song in our view anyway and it's really helped explode that. And in this world, everybody's talking about Kubernetes. I mean we're here at a big data conference all week. It used to be Hadoop world. Everybody's talking about containers, Kubernetes and Multi cloud. Those are kind of the hot trends. I presume you've seen the same thing. >> 100 percent. There's not a single client that I know, and I spend the majority of my time with clients that are running their workloads in a single stack. And so what do you do? If data is an imperative for you, you better run your data analytic stack wherever you need to and that means Multi cloud by definition. So you've got a choice. You can say, I can port that workload to every distinct programming model and data stack or you can have a data stack everywhere including Multi clouds and Open Shift in this case. >> So thinking about the three companies, so Hortonworks obviously had duped distro specialists, open source, brings that end to end sort of data management from you know Edge, or Clouds on Prim. Red Hat doing a lot of the sort of hardcore infrastructure layer. IBM bringing in the analytics and really empowering people to get insights out of data. Is that the right way to think about that triangle? >> 100 percent and you know with the Hortonworks and IBM data stacks, we've got our common services, particularly you're on open meta data which means wherever your data is, you're going to know about it and you're going to be able to control it. Privacy, security, data discovery reasons, that's a pretty big deal. >> Yeah and as the Cloud, well obviously the Cloud whether it's on Prim or in the public Cloud expands now to the Edge, you've also got this concept of data virtualization. We've talked about this in the past. You guys have made some announcements there. But let's put a double click on that a little bit. What's it all about? >> Data virtualization been going on for a long time. It's basic intent is to help you access data through whatever tools, no matter where the data is. Traditional approaches of data virtualization are pretty limiting. So they work relatively well when you've got small data sets but when you've got highly fragmented data, which is the case in virtually every enterprise that exists a lot of the undermined technology for data virtualization breaks down. Data coming through a single headnote. Ultimately that becomes the critical issue. So you can't take advantage of data virtualization technologies largely because of that when you've got wide scale deployments. We've been incubating technology under this project codename query plex, it was a code name that we used internally and that we were working with Beta clients on and testing it out, validating it technically and it was pretty clear that this is a game changing method for data virtualization that allows you to drive the benefits of accessing your data wherever it is, pushing down queries where the data is and getting benefits of that through highly fragmented data landscape. And so what we've done is take that extremely innovated next generation data virtualization technology include it in our data platform called IBM Club Private for Data, and made it a critical feature inside of that. >> I like that term, query plex, it reminds me of the global sisplex. I go back to the days when actually viewing sort of distributed global systems was very, very challenging and IBM sort of solved that problem. Okay, so what's the secret sauce though of query plex and data virtualization? How does it all work? What's the tech behind it? >> So technically, instead of data coming and getting funneled through one node. If you ever think of your data as kind of a graph of computational data nodes. What query plex does is take advantage of that computational mesh to do queries and analytics. So instead of bringing all the data and funneling it through one of the nodes, and depending on the computational horsepower of that node and all the data being able to get to it, this just federates it out. It distributes out that workload so it's some magic behind the scenes but relatively simple technique. Low computing aggregate, it's probably going to be higher than whatever you can put into that single node. >> And how do customers access these services? How long does it take? >> It would look like a standard query interface to them. So this is all magic behind the scenes. >> Okay and they get this capability as part of what? IBM's >> IBM's Club Private for Data. It's going to be a feature, so this project query plex, is introduced as next generation data virtualization technology which just becomes a part of IBM Club Private for Data. >> Okay and then the other announcement that we talked to Rob, I'd like to understand a little bit more behind it. Actually before we get there, can we talk about the business impact of query plex and data virtualization? Thinking about it, it dramatically simplifies the processes that I have to go through to get data. But more importantly, it helps me get a handle on my data so I can apply machine intelligence. It seems like the innovation sandwich if you will. Data plus AI and then Cloud models for scale and simplicity and that's what's going to drive innovation. So talk about the business impact that people are excited about with regard to query plex. >> Better economics, so in order for you to access your data, you don't have to do ETO in this particular case. So data at rest getting consumed because of this online technology. Two performance, so because of the way this works you're actually going to get faster response times. Three, you're going to be able to query more data simply because this technology allows you to access all your data in a fragmented way without having to consolidate it. >> Okay, so it eliminates steps, right, and gets you time to value and gives you a bigger corporate of data that you can the analyze and drive inside. >> 100 percent. >> Okay, let's talk about stack overflow. You know, Rob took us through a little bit about what that's, what's going on there but why stack overflow, you're targeting developers? Talk to me more about that. >> So stack overflow, 50 million active developers each month on that community. You're a developer and you want to know something, you have to go to stack overflow. You think about data science and AI as disciplines. The idea that that is only dermained to AI and data scientists is very limiting idea. In order for you to actually apply artificial intelligence for whatever your use case is instead of a business it's going to require multiple individuals working together to get that particular outcome done including developers. So instead of having a distinct community for AI that's focused on AI machine developers, why not bring the artificial intelligence community to where the developers already are, which is stack overflow. So, if you go to AI.stackexchange.com, it's going to be the place for you to go to get all your answers to any question around artificial intelligence and of course IBM is going to be there in the community helping out. >> So it's AI.stackexchange.com. You know, it's interesting Daniel that, I mean to talk about digital transformation talking about data. John Furrier said something awhile back about the dots. This is like five or six years ago. He said data is the new development kit and now you guys are essentially targeting developers around AI, obviously a data centric. People trying to put data at the core of the organization. You see that that's a winning strategy. What do you think about that? >> 100 percent, I mean we're the data company instead of IBM, so you're probably asking the wrong guy if you think >> You're biased. (laughing) >> Yeah possibly, but I'm acknowledged. The data over opinions. >> Alright, tell us about tonight what we can expect? I was referencing the Vince Lombardy play here. You know, what's behind that? What are we going to see tonight? >> We were joking a little bit about the old school power eye formation, but that obviously works for your, you're a New England fan aren't you? >> I am actually, if you saw the games this weekend Pat's were in the power eye for quite a bit of the game which I know upset a lot of people. But it works. >> Yeah, maybe we should of used it as a Dallas Cowboy team. But anyways, it's going to be an amazing night. So we're going to have a bunch of clients talking about what they're doing with AI. And so if you're interested in learning what's happening in the industry, kind of perfect event to get it. We're going to do some expert analysis. It will be a little bit of fun breaking down what those customers did to be successful and maybe some tips and tricks that will help you along your way. >> Great, it's right up the street on the west side highway, probably about a mile from the Javis Center people that are at Strata. We've been running programs all week. One of the themes that we talked about, we had an event Tuesday night. We had a bunch of people coming in. There was people from financial services, we had folks from New York State, the city of New York. It was a great meet up and we had a whole conversation got going and one of the things that we talked about and I'd love to get your thoughts and kind of know where you're headed here, but big data to do all that talk and people ask, is that, now at AI, the conversation has moved to AI, is it same wine, new bottle, or is there something substantive here? The consensus was, there's substantive innovation going on. Your thoughts about where that innovation is coming from and what the potential is for clients? >> So if you're going to implement AI for let's say customer care for instance, you're going to be three wrongs griefs. You need data, you need algorithms, you need compute. With a lot of different structure to relate down to capture data wasn't captured until the traditional data systems anchored by Hadoop and big data movement. We landed, we created a data and computational grid for that data today. With all the advancements going on in algorithms particularly in Open Source, you now have, you can build a neuro networks, you can do Cisco machine learning in any language that you want. And bringing those together are exactly the combination that you need to implement any AI system. You already have data and computational grids here. You've got algorithms bringing them together solving some problem that matters to a customer is like the natural next step. >> And despite the skills gap, the skill gaps that we talked about, you're seeing a lot of knowledge transfer from a lot of expertise getting out there into the wild when you follow people like Kirk Born on Twitter you'll see that he'll post like the 20 different models for deep learning and people are starting to share that information. And then that skills gap is closing. Maybe not as fast as some people like but it seems like the industry is paying attention to this and really driving hard to work toward it 'cause it's real. >> Yeah I agree. You're going to have Seth Dulpren, I think it's Niagara, one of our clients. What I like about them is the, in general there's two skill issues. There's one, where does data science and AI help us solve problems that matter in business? That's really a, trying to build a treasure map of potential problems you can solve with a stack. And Seth and Niagara are going to give you a really good basis for the kinds of problems that we can solve. I don't think there's enough of that going on. There's a lot of commentary communication actually work underway in the technical skill problem. You know, how do I actually build these models to do. But there's not enough in how do I, now that I solved that problem, how do we marry it to problems that matter? So the skills gap, you know, we're doing our part with our data science lead team which Seth opens which is telling a customer, pick a hard problem, give us some data, give us some domain experts. We're going to be in the AI and ML experts and we're going to see what happens. So the skill problem is very serious but I don't think it's most people are not having the right conversations about it necessarily. They understand intuitively there's a tech problem but that tech not linked to a business problem matters nothing. >> Yeah it's not insurmountable, I'm glad you mentioned that. We're going to be talking to Niagara Bottling and how they use the data science elite team as an accelerant, to kind of close that gap. And I'm really interested in the knowledge transfer that occurred and of course the one thing about IBM and companies like IBM is you get not only technical skills but you get deep industry expertise as well. Daniel, always great to see you. Love talking about the offerings and going deep. So good luck tonight. We'll see you there and thanks so much for coming on theCUBE. >> My pleasure. >> Alright, keep it right there everybody. This is Dave Vellanti. We'll be back right after this short break. You're watching theCUBE. (upbeat music)

>> Live from San Francisco, it's theCUBE. Covering DockerCon '18. Brought to you by Docker and its ecosystem partners. >> Welcome back to theCUBE. We are live in San Francisco at DockerCon 2018. I'm Lisa Martin with John Troyer on a stunning day here in San Francisco. This event draws between 5,000 and 6,000 people in only its fifth year. They did a very good job during the general session this morning, John, of having some great female leaders on stage and we're very pleased to welcome another female leader to theCUBE for the first time. Alex Qin, you are the Director of Technology at Gakko. Welcome to theCUBE. >> Thank you, thank you. It's great to be here. >> So, you're speaking here at DockerCon 2018, I want to get to that in a second, but tell us a little bit about Gakko. What do you guys do? >> Um, yeah. So we're a global education design studio based in Tokyo and New York and what we do is we put on experimental education programs and build experimental education technology that aim to reclaim the magic of learning. So, we put on summer camps, we have coding classes, music classes and we build software for early learners. >> And by early learners what age group are you talking about? >> So ages three to five. What we build is beautiful story and art driven apps for kids ages three to five to be able to spend time more thoughtfully on tablets 'cause nowadays kids are always on tablets no matter what we do and so what we want to do is create a world that they can be in, in which parents feel like, this is a good place for my child to spend time. They're learning, it's artful, it's thoughtfully built. >> Great, well Alex you are also the founder of The Code Collective. >> The Code Cooperative, yes. >> The Code Cooperative, I'm sorry. How did you get started with that and can you tell us a little bit about that as well? >> Yes, so The Code Cooperative is my passion project and I started it in 2016, the day after the presidential elections actually, and it's an organization that teaches formerly incarcerated individuals computer literacy and coding, so that they can build websites and technical solutions to the problems they've identified in the criminal justice system. >> Some examples of that might be? >> A story I love to tell is from the pilot class. I had one student who was a 65 year old man and he'd been in prison for over 20 years and so at 65, he took our class and he learned HTML, CSS and JavaScript and built a website that aims to educate visitors about the legacy of slavery and Jim Crow in the criminal justice system today. Just like an interactive quiz. Yeah, that was really cool. It was called The Criminal Injustice System. >> Nice, nice. >> What were some of the drivers that really led you to go, you know what? We've got a huge opportunity here to take some of these people who have had made some different choices and really, sort of, rehabilitate them in a way that's gonna enable tech for good. What were some of those things that you just went, we've got to do this? >> That's a good question. Well, I read the book, The New Jim Crow, which you may have heard of. It's an incredible book that really details a lot of the problems that exist today within the U.S. criminal justice system and I thought to myself, I want to learn more about the justice system and contribute positively to justice system reform, but I don't know anything about it. So what I should do is work with people who have been through the system, learn from them and empower them to highlight the issues that they see within the justice system and that's something that I think is really important. When it comes to building technology, right now the gatekeepers of tech are kind of a homogenous group and we tend to build tech solutions for the entire world, but actually the people who are best equipped to solve problems are those who have experienced them and so that's why I decided to start The Code Cooperative. >> Nice. Alex, you're talking here, you've got an interesting titled session, I'll make sure I get it right, Shaving My Head Made Me a Better Programmer. If I can connect that to the rest of the DockerCon, maybe, I mean, Docker has been very good at their whole history about developer experience, making things easier for people and I think sometimes people don't realize not only when you make things easier, you actually can bring in new audiences. Kids, prisoners, right, are able to use today's technology where 30, 40 years ago they wouldn't have had access to it because it's easier, it's more powerful, it's more ubiquitous. But sometimes we get stuck in old tropes and so I'd love for you to kind of talk a little about your talk and kind of, what you're going to be talking about here at the show. >> Sure, yes. So, my talk is called Shaving My Head Made Me a Better Programmer and it's a little bit of a misleading title, but basically it's the story of my journey though the tech industry as a minority woman. So I studied computer science and I've been a software engineer for my entire career and yet, I've encountered a lot of challenges because of my gender, because of how I present to the world and when I shaved my head, a lot of those challenges kind of disappeared because I wasn't perceived as feminine anymore and so when I realized that tech isn't the meritocracy that I thought it was, I kind of started on this new quest to make tech as diverse and inclusive as possible so that people from all backgrounds, all genders can learn to code and write code happily and safely and it's just the story of how that happened and the lessons I've learned and some tips on how to make organizations more inclusive because that's the bulk of my work now. >> So you were a C.S. major in New York? >> Yes. >> So were you always interested in STEM as a kid or was it something that you got into when you were in college? What was that sort of age that you found it really exciting and said, no matter what, even if there's very few women here, I love this, I want to do this? >> That's a great question. So I am originally from France, actually. And when I was growing up there was really little computer science education in schools, but I really wanted to be an astronaut when I got to college so I joined the engineering program at my school and I'd never coded at that point, but one of the requirements was an intro to programming class in Python. So I took it and I fell in love with it immediately and I was like, I'm majoring in computer science, this is so cool, this is the coolest thing I've ever done and as I entered the computer science world I realized, oh, there's not that many women here and actually, I'm treated very differently. So, I fell in love with it and then because I love it so much I just kind of powered through. >> Your passion is very palpable, so at any point did you feel, sort of, out of place? Going, I'm one of the only females here, or did you say, I don't care, I like this. >> Yeah, it's both. I mean, you feel out of place when there's very few people who look like you in the room. Even if you don't want to feel out of place, even if you try to pretend that's not the case, you can't help but feel that and when I was starting out and throughout my career, people didn't necessarily want to work with me, didn't believe I was a good programmer, even though I was at the top of all my classes and so even though I tried to make the most out of my experience, I couldn't really escape the stigma attached to my gender in this field. >> Alex, we're at an interesting part of our culture now, I suppose, especially online. On one hand, social media has elevated a lot of folks' voices that would not have been heard otherwise because of gatekeepers. On the other hand, we have our current online discourse, which is kind of, not very pleasant sometimes. So I am interested both kind of how you're navigating that online and then maybe as a followup, then as you work with companies, how you're working with them and what you're telling them, but in terms of online, I love Twitter and yet it frustrates me. Facebook as well, et cetera. How do you navigate that online yourself? >> That's a great question. Honestly, I have been kind of retreating from social media. I haven't really experienced too many negative interactions on social media because I'm not really a big presence there. I did kind of have a really bad experience once during a Grace Hopper conference. I tweeted something during the Male Allied panel of like, 2015, or something and that got picked up by some GamerGate writers and then a lot of people started tweeting negative things at me, but that's kind of the extent of my negative experiences online. I do think that, as you say, social media has allowed for uplifting of voices that were previously unheard, has allowed for activism to organize. There's so many positive things that come from social media and also it has a really nefarious affect on people and I think that something needs to change in terms of how these companies build their software. It needs to be safer for all people and also needs to be built more ethically. Less trying to manipulate our psyches. >> That's, I think, super important. Luckily at least that's a conversation now, right Lisa? That at least Facebook, I think eventually as a society we'll, I hope, we'll get through this and figure this out, but I don't feel like we're particularly literate with social at this point. But I did want to ask about your work with companies. You said you do talk with some companies about diversity and things like that, is there any either signs that folks are getting it right or things that you start off with as you're working, if someone asks, how do we become a more diverse workforce? >> Yeah, that's a good question. I can't really point to any companies that, I say, are doing amazing. There are some companies where I know folks are very happy. Slack is one of them, thoughtbot is another one of them. I'll say Gakko, but a few tips I generally give organizations is that you need to work to understand the problem. Why is there a lack of diversity in tech? Why is your team not diverse? Then you need to measure your data. You can't make a positive change if you don't know how much you're changing, right? So gather diversity data on your team, not just in terms of who's there, but who's in a leadership role. Who gets promoted? Who gets fired? Who's a manager? And then you need to commit. That's, I think, the place where a lot of people struggle is there's a lot of candidates who fit this, kind of, homogenous image of what a programmer is and so it can be easy sometimes to be like, well we need to hire someone right now so let's just hire this person. But in order to actually make a change you need to commit and you need to say I'm not going to compromise on the goals that we've set. >> You're absolutely right, that commitment word is exactly what's needed to drive that accountability to hold organizations up to that. I was just at VMware a couple of weeks ago in Palo Alto at the Women Transforming Technology event and we had a whole day of all talking with females in tech, which I always loved to do and theCUBE is very passionate about supporting that. The cultural change is imperative. We talk about digital transformation at every event and there's the CIO that says, hey we have to change the culture here to transform digitally, but also to start moving those numbers from, what, less than 25% of tech roles are held by women. The culture has to change. It seems like you're in a position, potentially, to actually influence the culture at these companies that you talk to about opening their eyes to commit. Does that excite you from within? >> Yes, I do talk to a lot of organizations about this, but I think the work that I do that might actually tip the scale is, basically, the education programs that I run in New York. All of my classrooms reflect the diversity of New York, both in terms of student and teacher bodies. So all of my students learn in an environment that is extremely diverse. They learn from teachers who look like them and I wish I learned to code in that way. Another important thing we teach our students is how to code as an ethical endeavor. So we teach our students to measure the ethical ramifications of their decisions when they build software so that hopefully the technologists of tomorrow, the CTO's of tomorrow they build code in a way that is best for humanity. They build code with empathy. >> Goin' back to your day job. You're working with kids. We talked about getting through social media, cultural change. Its going to depend on the next generation. So Alex, are the kids alright? Are they gonna save us? >> The kids are pretty alright. I mean, so my classroom is basically coding meets social entrepreneurship so all of our kids build an app that solves a problem they've identified in their communities and these kids are just coming up with the most beautiful solutions, like, more brilliant than any adult that I've met. I feel good about the future. >> Well, it's key to get those different perspectives and when you were saying, they're having the opportunity to code and create apps that are relevant to them that's where you can really ignite that passion. >> Exactly, that's so important >> It is important because when you're passionate about something, and we saw that on stage today with a lot of the Docker folks and Microsoft and McKesson, when you're passionate about something and really making a change, you can feel it. So it's good to hear that we're going in the right direction. Also, we're in this age, you talked about ethics, where it's essential. Because technology, we see a lot of examples where tech is not used for good and there's world leaders getting some of the leaders of tech companies together saying, I'm challenging you, make tech for good because we're seeing too much of the negative right now. How does that influence, whether it's the breaches at Equifax, or, there was a breach recently at MyHeritage, the DNA testing companies, to Cambridge Analytica. How do you see the kids, the young kids respond to that, going, that's a really poor use of tech. Are they aware of that? >> I think some kids are and in our classroom we spend some time talking about, we have discussions about, ethics of software. So that's something that's very important to us. But largely, most classrooms in the United States, no, I mean computer science education is not a standard in most classrooms in the US. In New York state, only 1% of high schoolers actually have access to any kind of computer science education and so most kids, they might hear tid bits from the T.V. or social media or something, but they're not necessarily informed enough to make one, good decisions as consumers and two, good decisions as potential technologists. So that's something that we are trying to spread and I hope other folks are also trying to work on. >> Another thing that I think is shocking is when we were at the Women Transforming Technology event just a few weeks ago at VMware in Palo Alto, they just announced with Stanford, Stanford is investing 15 million dollars into their gender research. VMware and Stanford wanting to look at what are the barriers for women in tech and minorities in tech and starting to dissolve some of those barriers. One of the things they actually had in their press release announcing this big 15 million dollar investment from VMware and Stanford is a Mckinsey report that said 20%, sorry, enterprise organizations that have females in management positions, probably executive management positions, didn't specify positions, are 20% more profitable. You just think, the numbers are saying when you have more thought diversity, you're actually going to be a more profitable organization, but I think to your point earlier, Alex, there has to be a commitment and there has to be a group within an organization that stands accountable. >> Absolutely. >> So we are thankful for you. (Alex laughs) for donating some of your time today to tell us what you're doing, it's good to hear the next generation, John, I think they got our backs. >> Alright, that's good. >> And Alex, have a great time with your very provocative session this afternoon. >> Thank you. >> We thank you so much for your time and it's really cool to hear how you're using your passion for tech for good. >> Thank you so much, it was great to be here. >> We want to thank you for watching theCUBE. I'm Lisa Martin with John Troyer. From San Francisco at DockerCon 2018. Stick around, John and I will be right back with out next guest. (upbeat music)

>> Announcer: Live from Las Vegas. It's theCube. Covering IBM Think 2018. Brought to you by IBM. >> We're back, IBM Think 2018. This is theCube, the leader in live tech coverage. My name is Dave Vellante and I'm here with my co-host, Peter Burris. We're talking all things cloud, AI, blockchain, quantum, information management, information architectures. And we're here going to talk about resiliency. Business resiliency. Pat Corcoran is the IBM business resiliency global strategy executive. Doctor Larry Ponemon Is here, he's the head of the Ponemon Institute. Gentlemen, welcome to theCube. >> Thank you. >> Thank you very much. >> Alright Pat, set it up for us. What's going on here, at Think generally and then specifically, talk about business resiliency and what it means. >> Well for I think at Think this year, resiliency, we're teamed up with security. Because a lot of synergy when you look at resiliency where you want to be adaptable, flexible, companies want to be able to adjust to situations quickly. The environment's changed, where in the past when you looked at recovery and resiliency, people thought about natural disasters but now, this past year, it's been on longer, but the past year we've all seen a lot of major cyber-events. So now resiliency has taken on a different view. Different approach. Because it's not just the risk of a hardware problem, or a site going down. Now we got to address risk from a cyber and it's a totally different risk. So at this conference, we've teamed up with security at IBM to try to present an integrated package, integrated approach, and we're also working with Larry, sharing some results from a study from last year, about the cost of data breach, and the importance of business continuity, to cyberattacks. Because most people today, they're not ready. They might look at protect, they might look at detect, but they're not, they don't know how to recover from a cyber and that's what we're addressing here today. >> So Larry, we're going to get into the study but what's the Ponemon Institute? Why did you start it almost 20 years ago? Give us the background there. >> So the Ponemon Institute is a research company and we're linearly focused on cybersecurity, data protection, privacy, and other related topics. The reason why we started the institute, my background is varied intelligence and security over a very long period of time. I hate to admit it, but over 45 years of experience. And the bottom line is we saw a real need for information. The decision-makers needed to know, what are the really significant issues in privacy or information security, that could affect their organizations. And we're very lucky, we chose an industry that was interesting and profitable, and every day there's a new issue. So you never run out of research ideas. >> Amazing, I mean the last 12 months has been, it seems like this is a game of escalation >> Larry: Oh, it's crazy. >> You put on the TV and see NBC and all of a sudden there's you know every board of directors from a credit bureau on there, big words, "breach" across the bottom. >> Data breach. That's just a nightmare, right. But every day, there's something in the news. And to your point, Pat. It just seems to be getting more and more costly to businesses. >> It is more costly, and I think now when you look at annual reports, when I go visit a customer I like to read their annual reports, and the CEO or the CFO put down what risk are they concerned about. Almost every annual report now has cyberattacks in there. Because they have to, they have to be aware of it. And it's gotten so bad now. But like you said, the challenge is, a hacker only has to be successful once. Companies have to be successful hundreds, thousands, millions of times. Stopping these people from getting in and that's what we're trying to help them stop. >> Black hats is a growth business. >> Well it's a game for them. It is a game and they're good at it but we have to be better and that's the hard challenge. >> But virtually every company has been breached. It's like, the NBA I don't think any team has ever gone undefeated in the NBA. Despite your hope for the Warriors. (laughing) It just can't be done. So Larry, let's get into the study. You've done this for a number of years. >> Oh yeah. >> Dave: You've seen the patterns. What do we need to know? >> Yeah we know that the cost of a data breach is very significant. You know, you basically talk to CEOS and board members and you say, "What's the cost of a data breach?" And you get that glazey-eyed like, "How do we know?" But we've been trying to benchmark and figure out what that true cost is. And it could be millions, tens of millions of dollars your organization, just recovering from the major data breach. Let alone lose customer trust, and along there are huge long-term consequences. Across the data breach study, sponsored by IBM, we've done this analysis globally, and now we do it in 13 countries, and this current year it's going to be 15 countries, we're adding two new countries. And the issues, even though there are cultural differences and geolocation differences, companies are companies and all companies around the world are dealing with this phenomenon. And as Pat said, bad guys are getting worse, or better if you're on the side of evil, and their ability to get data and use data against organizations creates a huge challenge for organizations. And that's where actually you need IBM. You need the right technology, you need the right tools, the right personnel, to get the job done right. >> So I mean at the simplest level, the cost of a breach seems like it would be a function of the probability of that breach times its impact. And so, what are you seeing in terms of those variables? Are breaches happening more often, is the business impact greater, are they both sort of proportional? What's the relationship? >> The cost is climbing, globally. What we find is that organizations are ill-prepared to deal with these problems. We also know that a lot of organizations don't have the internal talent, the people they need to be able to identify and respond to these problems quickly. Our findings show that organizations that are using leading-edge technologies, and involve their BCMs, their business continuity people, are much more likely to have a successful outcome. But it's a mess right now honestly and there isn't an organization out there that isn't subject to a major data breach. >> Pat, when you talk to clients, to Larry's point, you ask them do you know what the cost of a breach is? The vast majority presumably don't. Do you help them sort of quantify that? Look at the business impact? >> We can. And that's a great point. They don't know. And they haven't looked at it. One of the challenges is, in many cases the security arm, the recovery arm and the continuity arm, more people, they're all fragmented. They're run by different groups within the company. So we want to work with companies to bring them together and so we can do an impact, business impact analysis, and look at what types of risk are you most concerned about. How vulnerable are you to those risks? And what would be the impacts? Tangible and intangible. Towards your brand. You look at some of the names that have been in the papers. You're in the paper and you're there for day after day because you're down for weeks. Your brand is being impacted. So that's an intangible cost, but is a significant cost. So we do help you with an assessment. >> So Larry, Dave mentioned that you've done this for multiple years. Last years' studies show that the improvements on time to identify and time to contain, was about 5% over what had been the previous year. Still not great, but it's getting better. Are we seeing this kind of five percent per year slog? And what do we need to do to start accelerating the rate of improvement? >> Right, so the word slog is appropriate. It's a slow-moving train and you get organizations to make a small improvement and that leads to, in the long term, really good outcomes. But unfortunately, it could go the other way. The bad guys are getting very talented and so they'll see opportunities, windows to exploit organizations and they want to hide their, they don't want the world to know that they've committed a crime. So the time to identify and time to contain may kind of move in the opposite direction. But in general we are seeing small improvement. One way that organizations are improving is they're involving other experts, other teams, so it's no longer just an IT security problem, Or a compliance issue, it's more than that. As Pat mentioned, it's a brand issue and bringing other people to the process is greater and greater visions. >> Allow me to repeat that this is people too. Because this isn't an IT issue, this is a business issue. >> Well, we've done some work on this and thinking, but what's the right regime for cybersecurity? It's not just the SISO problem or an IT problem but what percent, well first of all, first question. What percent of organizations, and I'm not just talking about large organizations, think about your client base, what percent actually look at cyber as a board-level issue. Obviously RBC Today, Verizon, yes it's a board-level for those high-profile companies but across the board, is it 100%? >> Pat: Not even close. >> You just did a recent study I think, that looked at that right? >> Yeah we basically saw board-level involvement, you know do you view something as strategic or simply tactical? It's about 39% on the side of, yeah we do, and then the remainder they do not. And that's an inflated number, because when you ask people on a survey they have a halo effect. You're more likely to say, oh sure we do that. Sure we get our board and CEOs involved. It's again that slog word. It's a slow-moving train but we're seeing more and more boards getting involved. Also it helps that some of the new regulations that are coming down the pipe. There's a new regulation in New York State that requires the boards of directors to sign off if they have had conversations with SISO and they've identified the appropriate risk issues. So it's definitely moving in the right direction but it's slow. >> So I had a conversation with a Chief Privacy Officer client, a couple of months ago. And she told me that they'd calculated what would have happened with the Equifax breach, if it had been subject to the fines that are going to go into effect over in Europe. And she said that Equifax would have been hit with $160 billion, with a B, dollar fine. >> Larry: Wow. >> Is that the type of exposure that we're really talking about here for companies that are not doing a good job of, especially given some of the new regulations on the rise. >> Oh absolutely, you know just today there was this issue with Facebook, you probably were following that issue, where Facebook-- >> Oh really, who's Facebook? >> I don't know, they're a small social media company. But basically they released information profiles, detailed profiles, on individuals, and I think it was like 25 million, something towards that range. If the GDPR was in effect, and it involved European citizens, they would put them out of business. There would be no way they could operate in Europe. It would be hundreds of billions of dollars. So it could be devastating, and compliance is on the move, there's no question that Europe is going to be very tough on US companies that are not complying with their law. >> One of the things that Peter and I learned when we started talking to SISOs and boards of directors about this, was that part of the business resiliency strategy was response. That they sort of knew they were going to get hacked, they've been hacked, instead of telling the board no, we've got it all covered, they say listen, this has happened, it's going to happen again, way more transparent. We're going to focus not only on keeping the bad guys out, but How we can respond better. >> Contain it. >> Containment and response. In a more productive manner. How does that fit into your strategy? >> I'll say it's from a recovery. When you talk about respond it's recovery. And one I think you have to look at the company, you have to help the companies and they have to look across the total enterprise. I call it a domino factory. When you get hacked, or when when some risk impacts your business, it creates another risk. It's a domino effect and a lot of companies don't look at it that way. They look at why we get hacked, what does that mean? They have to sit down and really understand what it means to the business and what could happen after, what could it create? And there's a lot of unknowns there. We're gaining a lot more knowledge here, but you really have to sit down and look at it. So the executive committee team, at the board level, they have to be committed to this responses. From a resilience-recovery standpoint, they haven't looked at it as strong as they should of in the past, but I think this past year because executives are being held accountable, they're losing their jobs or going to jail, and so now they're coming out asking for our guidance. They're asking for help. And so the recovery piece, we're looking at new ways of trying to protect, find ways to protect your data. And when that data's protected, can we figure out is something changed? Like when a hacker gets in they make a change, they go in it through your configuration information, no one looked at that typically. So we're trying to find ways to monitor and track, detect these things when they happen, so that we can then figure out how far back you can go back in the data, because the data, was it corrupted today, yesterday, five months ago? It's not an easy solution but they've got to be committed, they've got to sit down we've got to work together to help them figure out the best approach. And there's not one answer. >> Larry I noticed you haven't thrown out the fear metric. You see this a lot, which is "The average cost "of a data breach is 2.56783 million per second." Or whatever it is. Now is that because you don't believe in that, and every situation is different, it depends on your market value, what type of data, et cetera, et cetera. Or is it because it's just too hard to actually quantify? I wonder if you could comment. >> We actually do, some of our research we attempt to quantify, we use activity-based cost data. I only told my friends this, but actually I'm a CPA and a PhD in Accounting, so I know accounting pretty well, and we used an accounting method to try to figure out what the total cost is. It's not a perfect measure, but it basically is fairly objective, and it's the best that exists. Not to sound egotistical, but I think we're the best in that narrow space of predicting cost. But it is difficult because it does depend on a lot of variables. And a lot of organizations don't necessarily understand all of the different ways that a bad event, a negative, a significant breach could affect the bottom line. But we talk to clients and organizations about it, we do board retreats, I was telling Pat, it seems pretty popular, the board wants to get a new-found religion, in privacy and security, after they experience a disaster and we work with them to try to educate them on these risk issues that Pat was referring to before. But it's an interesting time to be in this business. Lots of change. >> Well, in the context of data breaches, I mean, you've pointed this out a lot Peter, is people don't really have an understanding of the value of their data, there's no accepted accounting, there's no gap for data. >> One of the worst circumstances is there's a huge information asymmetry. The bad guys know how valuable your data is. You don't. >> It's the new currency. If you think about currency, data is a currency for people. For companies. An when you lose it, it's one of your most, after your people, your currency's your most critical asset. >> We say the difference between business and digital business is data. Otherwise they're the same thing. A digital business, organizes, treats its data as an asset. But it is a problem that the bad guys are willing to invest more money, more time, more innovation, into attacking because they seem to have a better understanding of what the real value of data is, than the good guys. And that's a problem. >> It's a huge problem. You know we see all of our trade secrets, for example, economic espionage is on the rise. The nation states, they're enjoying this, it's so easy for them to collect incredibly valuable information that we don't even know that it's out in the hands of countries. Not even competitors, worse than that. But if things, fortunately there's a lot of FUD, there's a lot of fear, uncertainty and doubt, but there are really great things going on, in theory of inventing new security controls. That's why I turn to IBM, they're where I go to deal with these issues. >> So if I can ask one last question. Larry, what do you need to do to get people to acknowledge and properly place the value of their data? Is there anything we can do, like in the next six months? >> Yeah I mean I think really the bottom line is, you need to get your senior executives to see this as a strategic, not just at tactical issue. And they could start immediately. I think doing a study for an organization, there's nothing we can do, but others can do this very well. To try to show the economic impact to an organization, especially one that's undergoing a digital transformation. That's, as you mentioned, that's where the value of an information asset, is just so incredibly high. And then you look at a company like a social media company, like a Facebook, and as you basically said, >> you should know. >> Yeah, you should know. So there are examples that you can turn to to show the value of the data asset. It's not protected very well, what are the consequences, downside consequences. >> Well we've got to wrap it up. We talked about sort of Facebook peripherally, but the weaponization of social media is becoming a huge, huge problem. It's certainly affected by most accounts last election, 2020 is going to be all about, Facebook is more influential than the UN. And even though we're here talking about business, everybody in business is on social media, or at least increasingly. And that's another way in. >> It is. >> Give you the last word. >> You know, as Larry said the data's critical, and I think it starts at the executive level, they have to understand the value. And we do this, I just presented about it, we talk about an assessment because, how do you get their attention? You don't want their attention once you get in the headlines, you want help demonstrating there's a value here. So using a study, and Larry did with us, using some assessments that tries to say, here's where you're mature and here's where you're not. For business and IT. To help people demonstrate the importance of this. And demonstrate the risk and vulnerabilities in it. I think that's what people have to, they have to raise, elevate that discussion and make people understand the real business impact. >> Alright, working through day two here IBM Think 2017, you're watching theCube. Dave Vellante for Peter Burris. Check out siliconangle.com for all the news, thecube.net is where you find these videos and wikibon.com for the research. Pat and Larry, thanks very much for coming on. >> Thank you. >> Alright keep it right there, we'll be right back with our next guest right after this short break. (bright music)

>> Host: New York City, it's The Cube covering Cyber Connect 2017, brought to you by Centrify and the Institute for Critical Infrastructure Technology. >> Hey, welcome back, everyone. This the Cube's live coverage in New York City. This is the Cyber Connect 2017, presented by Centrify, underwritten by such a large industry event. I'm John Furrier, Dave Vellante. Our next guest is Byron Acohido who's the journalist at lastwatchdog.com. Thanks for joining us, welcome to The Cube. >> Thank you, pleasure to be here. >> So, seasoned journalist, there's a lot to report. Cyber is great, we heard a great talk this morning around the national issues around the government. But businesses are also struggling, too, that seems to be the theme of this event, inaugural event. >> It really is a terrific topic that touches everything that we're doing, the way we live our lives today. So, yeah, this is a terrific event where some of the smartest minds dealing with it come together to talk about the issues. >> What's the top level story in your mind in this industry right now? Chaos, is it data, civil liberties, common threats? How do you stack rank in level of importance, the most important story? >> You know, it really is all of the above. I had the privilege to sit at lunch with General Keith Alexander. I've seen him speak before at different security events. So it was a small group of the keynote speakers, and Tom Kemp, the CEO of Centrify. And he just nailed it. He basically, what resonated with me was he said basically we're kind of like where we were, where the world was at the start of World War I, where Russia and Germany and England, we're all kind of lining up, and Serbia was in the middle, and nobody really knew the significance of what lay ahead, and the US was on the sidelines. And all these things were just going to converge and create this huge chaos. That's what he compared it today, except we're in the digital space with that, because we're moving into cloud computing, mobile devices, destruction of privacy, and then now the nation states, Russia is lining up, North Korea, and Iran. We are doing it too, that was probably one of the most interesting things that came at you. >> His rhetoric was very high on the, hey, get our act together, country, attitude. Like, we got a lot to bring to the table, he highlighted a couple use cases and some war stories that the NSA's been involved in, but almost kind of teasing out, like we're kind of getting in our own way if we don't reimagine this. >> Yes, he is a very great advocate for the private sector industry, but not just industry, the different major verticals like especially the financial sector and the energy sector to put aside some of the competitive urges they have and recognize that this is going on. >> Okay, but I got to ask you, as a journalist, Last Watchdog, General Alexander definitely came down, when he sort of addressed privacy, and Snowden, and the whole story he told about the gentleman from the ACLU who came in a skeptic and left an advocate. As a journalist whose job is to be a skeptic, did you buy that? Does your community buy that? What's the counterpoint to that narrative that we heard this morning? >> Well, actually I think he hit it right on the head. As a journalist, why I got into this business and am still doing it after all these years is if I can do a little bit to shed a little bit of light on something that helps the public recognize what's going on, that's what I'm here to do. And this topic is just so rich and touches everything. We were talking just about the nation state level of it, but really it effects down to what we're doing as a society, what Google, and Facebook, and Twitter, how they're shaping our society and how that impacts privacy. >> We were talking last night, Dave, about the Twitter, and Facebook, and Alphabet in front of the Senate hearings last week, and how it means, in terms, he brought it up today. The common protection of America in this time, given the past election, that was the context of the Google thing, really has got a whole opportunity to reimagine how we work as a society in America, but also on the global stage. You got China, Russia, and the big actors. So, it's interesting, can we eventually reimagine, use this opportunity as the greatest crisis to transform the crap that's out there today. Divisiveness, no trust. We're living in an era now where, in my life time I can honestly say I've never seen it this shitty before. I mean, it's bad. I mean, it's like the younger generation looking at us, looking at, oh, Trump this, Trump that, I don't trust anybody. And the government has an opportunity. >> Alright, but wait a minute. So, I'm down the middle, as you know, but I'm going to play skeptic here a little bit. What I basically heard from General Alexander this morning was we got vetted by the ACLU, they threw sort of holy water on it, and we followed the law. And I believe everything he said, but I didn't know about that law until Snowden went public, and I agree with you, Snowden should be in jail. >> John: I didn't say that. >> You did, you said that a couple, few years ago on The Cube, you said that. Anyway, regardless. >> I'm going to go find the archive. >> Maybe I'm rewriting history, but those laws were enacted kind of in a clandestine manner, so I put it out to both of you guys. As a citizen, are you willing to say, okay, I'll give up maybe some of my privacy rights for protection? I know where I stand on that, but I'm just asking you guys. I mean, do all your readers sort of agree with that narrative? Do all of The Cube? >> If you look at the World War I example the general, he brought up at lunch, I wasn't there, but just me thinking about that, it brings up a good perspective. If you look at reinventing how society in America is done, what will you give up for safety? These are some of the questions. What does patriotizing mean for if industry's going to work together, what does it mean to be a patriot? What I heard from the general onstage today was, we're screwed if we don't figure this out, because the war, it's coming. It's happening at massive speeds. >> Again, I know where I stand on this. I'm a law-abiding citizen. >> - Byron, what do you think? >> Go ahead and snoop me, but I know people who would say no, that's violating my constitutional rights. I dunno, it's worth a debate, is all I'm saying. >> It's a core question to how we're living our lives today, especially here in the US. In terms of privacy, I think the horse has left the barn. Nobody cares about privacy if you just look at the way we live our lives. Google and Facebook have basically thrown the privacy model-- >> GPS. >> That came about because we went through World War I and World War II, and we wanted the right to be left alone and not have authoritative forces following us inside the door. But now we don't live in just a physical space, we live in a cyberspace. >> I think there's new rules. >> There is no privacy. >> Don't try and paint me into a corner here, I did maybe say some comments. Looking forward the new realities are, there are realities happening, and I think the general illuminated a lot of those today. I've been feeling that. However, I think when you you define what it means to be a patriot of the United States of America and freedom, that freedom has to be looked through the prism of the new realities. The new realities are, as the General illuminated, there are now open public domain tools for anyone to attack the United State, industry and government, he brought it up. Who do they protect, the banks? So, this ends up, I think will be a generational thing that the younger generation and others will have to figure out, but the leaders in industry will have to step up. And I think that to me is interesting. What does that look like? >> I think leadership is the whole key to this. I think there's a big thread about where the burden lies. I write about that a lot as a central theme, where is the burden? Well, each of us have a burden in this society to pay attention to our digital footprint, but it's moving and whirling so fast, and the speaker just now from US Bank said there is no such thing as unprecedented, it's all ridiculous the way things are happening. So, it has to be at the level of the leaders, a combination, and I think this is what the general was advocating, a combination of the government as we know it, as we've built it, by and for the people, and industry recognizing that if they don't do it, regulations are going to be pushed down, which is already happening here in New York. New York State Department of Financial Services now imposes rules on financial services companies to protect their data, have a CSO, check their third parties. That just went in effect in March. >> Let's unpack that, because I think that's what new. If they don't do this, they don't partner, governments and industry don't partner together, either collectively as a vertical or sector with the government, then the government will impose new mandates on them. That's kind of what you're getting at. That's what's happening. >> It'll be a push and shove. Now the push is because industry has not acted with enough urgency, and even though they were seeing them in the headlines. California's already led the way in terms of its Data Loss Disclosure law that now 47 states have, but it's a very, I mean, that's just the level the government can push, and then industry has to react to that. >> I got to say, I'm just being an observer in the industry, we do The Cube, and how many events will we hear the word digital transformation. If people think digital transformation is hard now, imagine if the government imposes all these restrictions. >> What about GDPR? >> Byron: That's a good question, yeah. >> You're trying to tell me the US government is going to be obliged to leak private information because of a socialist agenda, which GDPR has been called. >> No, that's another one of these catalysts or one of these drivers that are pushing. We're in a global society, right? >> Here's my take, I'll share my opinion on this, Dave, I brought it up earlier. What the general was pointing out is the terror states now have democratized tools that other big actors are democratizing through the public domain to allow any enemy of the United States to attack with zero consequences, because they're either anonymous. But let's just say they're not anonymous, let's just say they get caught. We can barely convert drug dealers, multiple jurisdictions in court and around the world. What court is out there that will actually solve the problem? So, the question is, if they get caught, what is the judicial process? >> Navy SEALs? >> I mean, obviously, I'm using the DEA and drug, when we've been fighting drug for multiple generations and we still have to have a process to multiple years to get that in a global court. I mean, it's hard. My point is, if we can't even figure it out for drug trade, generations of data, how fast are we going to get cyber criminals? >> Well, there is recognition of this, and there is work being done, but the gap is so large. Microsoft has done a big chunk of this in fighting botnets, right? So, they've taken a whole legal strategy that they've managed to impose in maybe a half-dozen cases the last few years, where they legally went and got legal power to shut down hosting services that were sources of these botnets. So, that's just one piece of it. >> So, this World War I analogy, let's just take it to the cloud wars. So, in a way, Dave, we asked Amazon early on, Amazon Web Services how their security was. And you questioned, maybe cloud has better security than on premise, at that time eight years ago. Oh my God, the cloud is so insecure. Now it looks like the cloud's more secure, so maybe it's a scale game. Cloud guys might actually be an answer, if you take your point to the next level. What do you think? >> Correct me if I'm wrong, you haven't seen these kind of massive Equifax-like breaches at Amazon and Google. >> That we know about. >> That we know about. >> What do you think? Don't they have to disclose? >> Cloud players have an opportunity? >> That we know about. >> That's what I was saying. The question on the table is, are the cloud guys in a better position to walk around and carry the heavy stick on cyber? >> Personally, I would say no question. There's homogeneity of the infrastructure, and standardization, and more automation. >> What do you think? What's your community think? >> I think you're right, first of all, but I think it's not the full answer. I think the full answer is what the general keeps hammering on, which is private, public, this needs to be leadership, we need to connect all these things where it makes sense to connect them, and realize that there's a bigger thing on the horizon that's already breathing down our necks, already blowing fire like a dragon at us. It's a piece of the, yeah. >> It's a community problem. The community has to solve the problem at leadership level for companies and industry, but also what the security industry has always been known for is sharing. The question is, can they get to a data sharing protocol of some sort? >> It's more than just data sharing. I mean, he talked about that, he talked about, at lunch he did, about the ISAC sharing. He said now it's more, ISACs are these informational sharing by industry, by financial industry, health industry, energy industry, they share information about they've been hacked. But he said, it's more than that. We have to get together at the table and recognize where these attacks are coming, and figure out what the smart things are doing, like at the ISP level. That's a big part of the funnel, crucial part of the funnel, is where traffic moves. That's where it needs to be done. >> What about the the balance of power in the cyber war, cyber warfare? I mean, US obviously, US military industrial complex, Russia, China, okay, we know what the balance of power is there. Is there much more of a level playing field in cyber warfare, do you think, or is it sort of mirror the size of the economy, or the sophistication of the technology? >> No, I think you're absolutely right. There is much more of a level playing field. I mean, North Korea can come in and do a, this is what we know about, or we think we know about, come in and do a WannaCry attack, develop a ransomware that actually moves on the internet of things to raise cash, right, for North Korea. So there, yeah, you're absolutely right. >> That's funding their Defense Department. >> As Robert Gates said when he was on The Cube, we have to be really careful with how much we go on the offense with cyber security, because we have more to lose than anybody with critical infrastructure, and the banking system, the electrical grid, nuclear facilities. >> I interviewed a cyber guy on The Cube in the studio from Vidder, Junaid Islam. He's like, we can look at geo and not have anyone outside the US access our grid. I mean, no one should attack our resources from outside the US, to start with. So, core network access has been a big problem. >> Here's something, I think I can share this because I think he said he wouldn't mind me sharing it. At the lunch today, to your point that we have more to lose is, the general said yeah, we have terrific offensive capability. Just like in the analog world, we have all the great bombers, more bombers than anybody else. But can we stop people from getting, we don't have the comparable level of stopping. >> The defense is weak. >> The defense, right. Same thing with cyber. He said somebody once asked him how many of your, what percentage of your offensive attacks are successful? 100%. You know, we do have, we saw some of that with leaks of the NSA's weapons that happened this year, that gone out. >> It's like Swiss cheese, the leaks are everywhere, and it's by the network itself. I ran into a guy who was running one of the big ports, I say the city to reveal who it was, but he's like, oh my God, these guys are coming in the maritime network, accessing the core internet, unvetted. Pure core access, his first job as CIO was shut down the core network, so he has to put a VPN out there and segment the network, and validate all the traffic coming through. But the predecessor had direct internet access to their core network. >> Yeah, I think the energy sector, there's a sponsor here, ICIT, that's in the industrial control space, that I think that's where a lot of attention is going to go in the next couple of years, because as we saw with these attacks of the Ukraine, getting in there and shutting down their power grid for half a day or whatever, or with our own alleged, US own involvement in something like Stuxnet where we get into the power grid in Iran, those controls are over here with a separate legacy. Once you get in, it's really easy to move around. I think that needs to be all cleaned up and locked down. >> They're already in there, the malware's sitting in there, it's idle. >> We're already over there probably, I don't know, but that's what I would guess and hope. >> I don't believe anything I read these days, except your stuff, of course, and ours. Being a journalist, what are you working on right now? Obviously you're out there reporting, what are the top things you're looking at that you're observing? What's your observation space relative to what you're feeding into your reports? >> This topic, security, I'm going to retire and be long gone on this. This is a terrific topic that means so much and connects to everything. >> A lot of runway on this topic, right? >> I think the whole area of what, right there, your mobile device and how it plugs into the cloud, and then what that portends for internet of things. We have this whole 10-year history of the laptops, and we're not even solving that, and the servers are now moving here to these mobile devices in the clouds and IOT. It's just, attack surface area is just, continues to get bigger. >> And the IT cameras. >> The other thing I noticed on AETNA's presentation this morning on the keynote, Jim was he said, a lot of times many people chase the wrong attack vector, because of not sharing, literally waste cycle times on innovation. So, it's just interesting market. Okay, final thoughts, Byron. This event, what's the significance of this event? Obviously there's Black Hat out there and other industry events. What is so significant about CyberConnect from your perspective? Obviously, our view is it's an industry conversation, it's up-leveled a bit. It's not competing with other events. Do you see it the same way? What is your perspective on this event? >> I think that it's properly named, Connect, and I think that is right at the center of all this, when you have people like Jim Ralph from AETNA, which is doing these fantastic things in terms of protecting their network and sharing that freely, and the US Bank guy that was just on, and Verizon is talking later today. They've been in this space a long time sharing terrific intelligence, and then somebody like the general, and Tom Kemp, the CEO of Centrify, talking about giving visibility to that, a real key piece that's not necessarily sexy, but by locking that down, that's accessing. >> How is the Centrify message being received in the DC circles? Obviously they're an enterprise, they're doing very well. I don't know their net revenue numbers because they're private, they don't really report those. Are they well-received in the DC and the cyber communities in terms of what they do? Identity obviously is a key piece of the kingdom, but it used to be kind of a fenced off area in enterprise software model. They seem to have more relevance now. Is that translating for them in the marketplace? >> I would think so, I mean, the company's growing. I was just talking to somebody. The story they have to tell is substantive and really simple. There's some smart people over there, and I think there are friendly ears out there to hear what they have to say. >> Yeah, anything with identity, know your customer's a big term, and you hear in blockchain and anti-money laundering, know your customer, big term, you're seeing more of that now. Certainly seeing Facebook, Twitter, and Alphabet in front of the Senate getting peppered, I thought that was interesting. We followed those guys pretty deeply. They got hammered, like what's going on, how could you let this happen? Not that it was national security, but it was a major FUD campaign going on on those platforms. That's data, right, so it wasn't necessarily hacked, per se. Great stuff, Byron, thanks for joining us here on The Cube, appreciate it. And your website is lastwatchdog.com. >> Yes. >> Okay, lastwatchdog.com. Byron Acohido here inside The Cube. I'm John Furrier, Dave Vellante, we'll be back with more live coverage after this short break.