from the cube studios in palo alto in boston bringing you data-driven insights from the cube and etr this is breaking analysis with dave vellante the pandemic not only accelerated the shift to digital but also highlighted a rush of cyber criminal sophistication collaboration and chaotic responses by virtually every major company in the planet the solar winds hack exposed supply chain weaknesses and so-called island hopping techniques that are exceedingly difficult to detect moreover the will and aggressiveness of well-organized cyber criminals has elevated to the point where incident responses are now met with counterattacks designed to both punish and extract money from victims via ransomware and other criminal activities the only upshot is the cyber security market remains one of the most enduring and attractive investment sectors for those that can figure out where the market is headed and which firms are best positioned to capitalize hello everyone and welcome to this week's wikibon cube insights powered by etr in this breaking analysis we'll provide our quarterly update of the security industry and share new survey data from etr and thecube community that will help you navigate through the maze of corporate cyber warfare we'll also share our thoughts on the game of 3d chest that octa ceo todd mckinnon is playing against the market now we all know this market is complicated fragmented and fast moving and this next chart says it all it's an interactive graphic from optiv a denver colorado based si that's focused on cyber security they've done some really excellent research and put together this awesome taxonomy and mapped vendor names therein and this helps users navigate the complex security landscape and there are over a dozen major sectors high-level sectors within the security taxonomy in nearly 60 sub-sectors from monitoring vulnerability assessment identity asset management firewalls automation cloud data center sim threat detection and intelligent endpoint network and so on and so on and so on but this is a terrific resource and can help you understand where players fit and help you connect the dots in the space now let's talk about what's going on in the market the dynamics in this crazy mess of a landscape are really confusing sometimes now since the beginning of cyber time we've talked about the increasing sophistication of the adversary and the back and forth escalation between good and evil and unfortunately this trend is unlikely to stop here's some data from carbon black's annual modern bank heist report this is the fourth and of course now vmware's brand highlights the carbon black study since the acquisition and it catalyzed the creation of vmware's cloud security division destructive malware attacks according to the recent study are up 118 percent from last year now one major takeaway from the report is that hackers aren't just conducting wire fraud they are 57 of the bank surveyed saw an increase in wire fraud but the cyber criminals are also targeting non-public information such as future trading strategies this allows the bad guys to front run large block trades and profit it's become very lucrative practice now the prevalence of so-called island hopping is up 38 from already elevated levels this is where a virus enters a company's supply chain via a partner and then often connects with other stealthy malware downstream these techniques are more common where the malware will actually self-form with other infected parts of the supply chain and create actions with different signatures designed to identify and exfiltrate valuable information it's a really complex problem of major concern is that 63 of banking respondents in the study reported that responses to incidents were then met with retaliation designed to intimidate or initiate ransomware attacks to extract a final pound of flesh from the victim notably the study found that 75 percent of csos reported to the cio which many feel is not the right regime the study called for a rethinking of the right cyber regime where the cso has increased responsibility in a direct reporting line to the ceo or perhaps the co with greater exposure to boards of directors so many thanks to vmware and tom kellerman specifically for sharing this information with us this past week great work by your team now some of the themes that we've been talking about for several quarters are shown in the lower half of the chart cloud of course is the big driver thanks to work from home and the pandemic to pandemic and the interesting corollary of course is we see a rapid rethinking of endpoint and identity access management and the concept of zero trust in a recent esg survey two-thirds of respondents said that their use of cloud computing necessitated a change in how they approach identity access management now as shown in the chart from optiv the market remains highly fragmented and m a is of course way up now based on our research it looks like transaction volume has increased more than 40 percent just in the last five months so let's dig into the m a the merger and acquisition trends for just a moment we took a five month snapshot and we were able to count about 80 deals that were completed in that time frame those transactions represented more than 20 billion dollars in value some of the larger ones are highlighted here the biggest of course being the toma bravo taking proof point private for a 12 plus billion dollar price tag the stock went from the low 130s and is trading in the low 170s based on 176 dollar per share offer so there's your arbitrage folks go for it perhaps the more interesting acquisition was auth 0 by octa for 6.5 billion which we're going to talk about more in a moment there's more private equity action we saw as insight bought armis and iot security play and cisco shelled out 730 million dollars for imi mobile which is more of an adjacency to cyber but it's going to go under cisco's security and applications business run by g2 patel but these are just the tip of the iceberg some of the themes that we see connecting the dots of these acquisitions are first sis like accenture atos and wipro are making moves in cyber to go local they're buying secops expertise as i say locally in places like france germany netherlands canada and australia that last mile that belly-to-belly intimate service israel israeli-based startups chalked up five acquired companies in the space over the last five months also financial services firms are getting into the act with goldman and mastercard making moves to own its own part of the stack themselves to combat things like fraud and identity theft and then finally numerous moves to expand markets octa with zero crowdstrike buying a log management company palo alto picking up devops expertise rapid seven shoring up its kubernetes chops tenable expanding beyond insights and going after identity interesting fortinet filling gaps in a multi-cloud offering sale point extending to governance risk and compliance grc zscaler picked up an israeli firm to fill gaps in access control and then vmware buying mesh 7 to secure modern app development and distribution services so tons and tons of activity here okay so let's look at some of the etr data to put the cyber market in context etr uses the concept of market share it's one of the key metrics which is a measure of pervasiveness in the data set so for each sector it calculates the number of respondents for that sector divided by the total to get a sense for how prominent the sector is within the cio and i.t buyer communities okay this chart shows the full etr sector taxonomy with security highlighted across three survey periods april last year january this year in april this year now you wouldn't expect big moves in market share over time so it's relatively stable by sector but the big takeaway comes from observing which sectors are most prominent so you see that red line that dotted line imposed at the sixty percent level you can see there are only six sectors above that line and cyber security is one of them okay so we know that security is important in a large market but this puts it in the context of the other sectors however we know from previous breaking analysis episodes that despite the importance of cyber and the urgency catalyzed by the pandemic budgets unfortunately are not unlimited and spending is bounded it's not an open checkbook for csos as shown in this chart this is a two-dimensional graphic showing market share in the horizontal axis or pervasiveness and net score in the vertical axis net score is etr's measurement of spending velocity and we've superimposed a red line at 40 percent because anything over 40 percent we consider extremely elevated we've filtered and limited the number of sectors to simplify the graphic and you can see in the sectors that we've highlighted only the big four four are above that forty percent line ai containers rpa and cloud they exceed that sort of forty percent magic water line information security you can see that is highlighted and it's respectable but it competes for budget with other important sectors so this of course creates challenges for organization because not only are they strapped for talent as we've reported they like everyone else in it face ongoing budget pressures research firm cybersecurity ventures estimates that in 2021 6 trillion dollars worldwide will be lost on cyber crime conversely research firm canalis pegs security spending somewhere around 60 billion dollars annually idc has it higher around 100 billion so either way we're talking about spending between one to one point six percent annually of how much the bad guys are taking out that's peanuts really when you consider the consequences so let's double click into the cyber landscape a bit and further look at some of the companies here's that same x y graphic with the company's etr captures from respondents in the cyber security sector that's what's shown on the chart here now the usefulness of the red lines is 20 percent on the horizontal indicates the largest presence in the survey and the magic 40 percent line that we talked about earlier shows those firms with the most elevated momentum only microsoft and palo alto exceed both high water marks of course splunk and cisco are prominent horizontally and there are numerous companies to the left of the 20 percent line and many above that 40 percent high water mark on the vertical axis now in the bottom left quadrant that includes many of the legacy names that have been around for a long time and there are dozens of companies that show spending momentum on their platforms i.e above single digits so that picture is like the first one we showed you very very crowded space but so let's filter it a bit and only include companies in the etr survey that had at least a hundred responses so an n of a hundred or greater so it's a little easy to read but still it's kind of crowded when you think about it okay so same graphic and we've superimposed the data that determined the plot position over in the bottom right there so it's net score and shared n including only companies with more than 100 n so what does this data tell us about the market well microsoft is dominant as always it seems in all dimensions but let's focus on that red line for a moment some of the names that we've highlighted over the past two years show very well here first i want to talk about palo alto networks pre-covet as you might recall we highlighted the valuation divergence between palo alto and fortinet and we said fortinet was executing better on its cloud strategy and palo alto was at the time struggling with the transition especially with its go to market and its sales force compensation and really refreshing its portfolio but we told you that we were bullish on palo alto networks at the time because of its track record and the fact that cios consistently told us that they saw palo alto as a thought leader in the space that they wanted to work with they said that palo alto was the gold standard the best especially larger company cisos so that gave us confidence that palo alto a very well-run company was going to get its act together and perform better and palo alto has just done just that as we expected they've done very well and they've been rapidly moving customers to the next generation of platforms and we're very impressed by the company's execution and the stock has generally reflected that now some other names that hit our radar and the etr data a couple of years ago continue to perform well crowdstrike z-scaler sales sail point and cloudflare a cloudflare just reported and beat earnings but was off the stock fell on headwinds for tech overall the big rotation but the company is doing very well and they're growing rapidly and they have momentum as you can see from the etr data and we put that double star around proof point to highlight that it was worthy of fetching 12 and a half billion dollars from private equity firm so nice exit there supporting the continued control consolidation trend that we've predicted in cyber security now let's turn our attention to octa and auth zero this is where it gets interesting and is a clever play for octa we think and we want to drill into it a bit octa is acquiring auth zero for big money why well we think todd mckinnon octa ceo wants to run the table on identity and then continue to expand his tam he has to do that to justify his lofty valuation so octa's ascendancy around identity and single sign sign-on is notable the fragmented pictures that we've shown you they scream out for simplification and trust and that's what octa brings but it competes with some major players most notably microsoft with active directory so look of course microsoft is going to dominate in its massive customer base but the rest of the market that's like jump ball it's wide open and we think mckinnon saw the opportunity to go dominate that sector now octa comes at this from an enterprise perspective bringing top-down trust to the equation and throwing a big blanket over all the discrete sas platforms and unifying employee access octa's timing was perfect it was founded in 2009 just as the massive sasification trend was happening around crm and hr and service management and cloud etc but the one thing that octa didn't have that auth 0 does is serious developer chops while octa was crushing it with its enterprise sales strategy auth 0 was laser focused on developers and building a bottoms up approach to identity by acquiring auth0 octa can dominate both sides of the barbell and then capture the fat middle so yes it's a pricey acquisition but in our view it's a great move by mckinnon now i don't know mckinnon personally but last week i spoke to arun shrestha who's the ceo of security specialist beyond id they're a platinum services partner of octa and there a zero trust expert he worked for octa for a number of years and shared with me a bit about mckinnon's style and think big approach arun said something that caught my attention he said firewalls used to be the perimeter now people are and while that's self-serving to octa and probably beyond id it's true people apps and data are the new perimeter and they're not in one location and that's the point now unfortunately i had lined up an interview with dia jolly who was the chief product officer at octa in a cube alum for this past week knowing that we were running this segment in this episode but she unfortunately fell ill the day of our interview and had to cancel but i want to follow up with her and understand how she's thinking about connecting the dots with auth 0 with devs and enterprises and really test our thesis there this is a really interesting chess match that's going on let's look a little deeper into that identity space this chart here shows some of the major identity players it has some of the leaders in the identity market and there's a breakdown of etr's net score now net score comprises five elements the lime green is we're adding the platform new the forest green is we're spending six percent or more relative to last year the gray is flat send plus or minus flat spend plus or minus five percent the pinkish is spending less and the bright red is where exiting the platform retiring now you subtract the red from the green and that gets you the result for net score which you can see superimposed on the right hand chart at the bottom that first column there the far column is shared in which informs and indicates the number of responses and is a proxy for presence in the market oh look at the top two players in terms of spending momentum now sales sale point is right there but auth 0 combined with octa's distribution channel will extend octa's lead significantly in our view and then there's microsoft now just a caveat this includes all of microsoft's security offerings not just identity but it's there for context and cyber arc as well includes its acquisition of adaptive but also other parts of cyberarks portfolio so you can see some of the other names that are there many of which you'll find in the gartner magic quadrant for identity and as we said we really like this move by octa it combines positive market forces with lead offerings from very well-run companies that have winning dna and passionate people now to further emphasize emphasize what what's happening here take a look at this this chart shows etr data for octa within sale point and cyber arc accounts out of the 230 cyber and sale point customers in the data set there are 81 octa accounts that's a 35 overlap and the good news for octa is that within that base of sale point in cyber arc accounts octa is shown by the net score line that green line has a very elevated spending and momentum and the kicker is if you read the fine print in the right hand column etr correctly points out that while sailpoint and cyberarc have long been partners with octa at the recent octane 21 event octa's big customer event the company announced that it was expanding into privileged access management pam and identity governance hello and welcome to coopetition in the 2020s now our current thinking is that this bodes very well for octa and cyberark and sailpoint well they're going to have to make some counter moves to fend off the onslaught that is coming now let's wrap up with what has become a tradition in our quarterly security updates looking at those two dimensions of net score and market share we're going to see which companies crack the top 10 for both measures within the etr data set we do this every quarter so here on the left we have the top 20 sorted by net score or spending momentum and on the right we sort by shared n so again top 20 which informs shared end and forms the market share metric or presence in the data set that red horizontal lines those two lines on each separate the top 10 from the remaining 10 within those top 20. in our method what we do is we assign four stars to those companies that crack the top ten for both metrics so again you see microsoft palo alto networks octa crowdstrike and fortinet fortinet by the way didn't make it last quarter they've kind of been in and out and on the bubble but you know this company is very strong and doing quite well only the other four did last quarter there was same four last quarter and we give two stars to those companies that make it in both categories within the top 20 but didn't make the top 10. so cisco splunk which has been steadily decelerating from a spending momentum standpoint and z-scaler which is just on the cusp you know we really like z-scaler and the company has great momentum but that's the methodology it is what it is now you can see we kept carbon black on the rightmost chart it's like kind of cut off it's number 21 only because they're just outside looking in on netscore you see them there they're just below on on netscore number 11. and vmware's presence in the market we think that carbon black is really worth paying attention to okay so we're going to close with some summary and final thoughts last quarter we did a deeper dive on the solar winds hack and we think the ramifications are significant it has set the stage for a new era of escalation and adversary sophistication now major change we see is a heightened awareness that when you find intruders you'd better think very carefully about your next moves when someone breaks into your house if the dog barks or if you come down with a baseball bat or other weapon you might think the intruder is going to flee but if the criminal badly wants what you have in your house and it's valuable enough you might find yourself in a bloody knife fight or worse what's happening is intruders come to your company via island hopping or inside or subterfuge or whatever method and they'll live off the land stealthily using your own tools against you so they can you can't find them so easily so instead of injecting new tools in that send off an alert they just use what you already have there that's what's called living off the land they'll steal sensitive data for example positive covid test results when that was really really sensitive obviously still is or other medical data and when you retaliate they will double extort you they'll encrypt your data and hold it for ransom and at the same time threaten to release the sensitive information to crushing your brand in the process so your response must be as stealthy as their intrusion as you marshal your resources and devise an attack plan you face serious headwinds not only is this a complicated situation there's your ongoing and acute talent shortage that you tell us about all the time many companies are mired in technical debt that's an additional challenge and then you've got to balance the running of the business while actually affecting a digital transformation that's very very difficult and it's risky because the more digital you become the more exposed you are so this idea of zero trust people used to call it a buzzword it's now a mandate along with automation because you just can't throw labor at the problem this is all good news for investors as cyber remains a market that's ripe for valuation increases and m a activity especially if you know where to look hopefully we've helped you squint through the maze a little bit okay that's it for now thanks to the community for your comments and insights remember i publish each week on wikibon.com and siliconangle.com these episodes they're all available as podcasts all you do is search breaking analysis podcast put in the headphones listen when you're in your car out for your walk or run and you can always connect on twitter at divalante or email me at david.valante at siliconangle.com i appreciate the comments on linkedin and in clubhouse please follow me so you're notified when we start a room and riff on these topics and others and don't forget to check out etr.plus for all the survey data this is dave vellante for the cube insights powered by etr be well and we'll see you next time [Music] you

>>from around the globe. It's the Cube with coverage of Coop Con and Cloud, Native Con Europe 2020 Virtual brought to You by Red Hat, The Cloud Native Computing Foundation and its ecosystem Partners. Hi, I'm stupid, man. And this is the Cube's coverage of Cube con Cloud Native Con Europe event, which, of course, this year has gone virtual, really lets us be able to talk to those guests where they are around the globe. Really happy to welcome back to the program. Liz Rice. First of all, she is the vice president of Open Source Engineering at Aqua Security. She's also the chair of the Technical Oversight Committee has part of Ah CN cf. Liz, it is great to see you. Unfortunately, it's remote, but ah, great to catch up with you. Thanks for joining. >>Yeah, Thanks for having me. Nice to see you if you know across the ocean. >>So, uh, you know, one of the one of the big things? Of course, for the Cube Con show. It's the rallying point for the community. There are so many people participating. One of the things we always love to highlight its not only the the vendor ecosystem. But there is a very robust, engaged community of end users that participate in it. And as I mentioned, you're the chair of that technology oversight committee. So maybe just give our audience a little bit of, you know, in case they're not familiar with the TOC does. And let's talk about the latest pieces there. >>Yes, say the TOC is really hit. C can qualify the different projects that want to join the CNC F. So we're assessing whether or not they're cloud native. We're assessing whether they could joined at sandbox or incubation or graduation levels. Which of the different maturity levels that we have for for project within the CN CF yeah, we're really there, Teoh also provide it steering around the What does cloud native mean and what does it mean to be a project inside the CN CF community? We're also a voice for all of the projects. We're not the only voice, but, you know, part >>of our role >>really is to make sure the projects are getting what they need in order to be successful. So it's it's really around the technology and the projects that we call cloud native >>Yeah, and and obliges Cloud Native because when people first heard of the show, of course, Kubernetes and Cube Con was the big discussion point. But as you said, Cloud native, there's a lot of projects there. I just glanced at the sandbox page and I think there's over 30 in the sandbox category on and you know they move along their process until they're, you know, fully mature and reach that, you know, 1.0 state, which is the stamp of approval that, you know, this could be used in production. I understand there's been some updates for the sandbox process, so help us understand you know where that is and what's the new piece of that? >>Yeah. So it's really been because of the growth off cloud native in general, the popularity off the CN CF and so much innovation happening in our space. So there's been so many projects who want Teoh become hard off the CNC f family on and we used to have a sponsorship model where members of the TOC would essentially back projects that they wanted to see joining at the sandbox level. But we ran into a number of issues with that process on and also dealing with the scale, the number of applications that have come in. So we've revamped the process. We made it much easier for projects to apply as much simpler form where really not making so much judgment we're really saying is it's a cloud native project and we have some requirements in terms off some governance features that we need from a project. And it's worth mentioning that when a project joins the CN CF, they are donating the intellectual property and the trademark off that project into the foundation. So it's not something that people should take lightly. But we have tried to make it easier and therefore much smoother. We're able Teoh assess the applications much more quickly, which I think everyone, the community, the projects, those of us on the TOC We're all pretty happy that we can make that a much faster process. >>Yeah, I actually, it brings up An interesting point is so you know, I've got a little bit of background in standards committees. A swell as I've been involved in open source for a couple of decades now some people don't understand. You know, when you talk about bringing a project under a foundation. You talked about things like trademarks and the like. There are more than one foundation out there for CN CF Falls under the Linux Foundation. Google, of course, brought Kubernetes in fully to be supported. There's been some rumblings I've heard for the last couple of years about SDO and K Native and I know about a month before the show there was some changes along SDO and what Google was doing there may be without trying to pass too many judgments in getting into some of the political arguments, help us understand. You know what Google did and you know where that kind of comparison the projects that sit in the CN cf themselves. >>Yeah, So I e I guess two years ago around two years ago, Stu was very much the new kid in the cloud native block. So much excitement about the project. And it was actually when I was a program co chair that we had a lot of talks about sdo at Cube Con cloud native bomb, particularly in Copenhagen, I'm recalling. And, uh, I think everyone I just saw a natural fit between that project on the CN, CF and There was an assumption from a lot of people across the community that it would eventually become part of the CNC f. That was it's natural home. And one of the things that we saw in recent weeks was a very clear statement from IBM, who were one off the Uh huh, yeah, big contributing companies towards that project that that was also their expectation. They were very much under the impression that Stu would be donated to the CN CF at an appropriate point of maturity, and unfortunately, that didn't happen. From my point of view, I think that has sown a lot of confusion amongst the community because we've seen so much. It's very much a project of fits. Service mesh designed to work with kubernetes is it really does. You're fit naturally in with the other CN CF projects. So it's created confusion for end users who, many of whom assume that it was called the CN CF, and that it has the neutral governance that the other projects. It's part of the requirements that we have on those projects. They have to have an open governance that they're not controlled by a single vendor, Uh, and we've seen that you know that confusion, Andi. Frustration around that confusion being expressed by more and more end users as well as other people across the community. And yeah, the door is still open, you know, we would still love to see SDO join the community. Clearly there are different opinions within the SD wan maintainers. I will have to see what happens. >>Yeah, lets you bring up some really good points. You know, absolutely some of some of that confusion out there. Absolutely. I've heard from customers that if they're making a decision point, they might say, Hey, maybe I'm not going to go down that maybe choose something else because I'm concerned about that. Um, you know, I sdo front and center k native, another project currently under Google that has, you know, a number of other big vendors in the community that aiding in that So hopefully we will see some progress on that, you know, going forward. But, you know, back to you talked about, You know, the TOC doesn't make judgements as to you know which project and how they are. One of the really nice things out there in the CN CF, it's like the landscape just for you to help, understand? Okay, here's all of these projects. Here's the different categories they fit in. Here is where they are along that maturity. There's another tool that I read. Cheryl Hung blogged about the technology radar. I believe for continuous delivery is the first technology radar. Help us understand how that is, you know, not telling customers what to do but giving them a little guidance that you know where some of these projects projects fit. In a certain segment, >>Yeah, the technology radar is a really great initiative. I'm really excited about it because we have increasing numbers or end users who are using these different projects it both inside the CN CF and projects that are outside of the CNC F family. Your end users are building stacks. They're solving real problems in the real world and with the technology radar. What Cheryl's been able to facilitate is having the end you to the end user community share with us. What tools? They're actually using what they actually believe are the right hammers for specific nails. And, you know, it's it's one thing for us as it's more on the developer or vendor side Teoh look at different projects and say what we think are the better solutions for solving different problems. Actually hearing from the horse's mouth from the end users who are doing it in the real world is super valuable. And I think that is a really useful input to help us understand. What are the problems that the end user is still a challenge by what are the gaps that we still need to fail more input we can get from the end user community, the more will be solving real problems and no necessarily academic problems that we haven't sorry discovered in >>the real world. Alright, well is, you know, teeing up a discussion about challenges that users still have in the world. If we go to your primary jobs, Main hat is you live in the security world and you know, we know security is still something, you know, front and center. It is something that has never done lots of discussion about the shared responsibility model and how cloud native in security fit together and all that. So maybe I know there's some new projects there, but love to just give me a snap shot as where we are in the security space. As I said, Overall, it's been, you know, super important topic for years. This year, with a global pandemic going on, security seems to be raised even more. We've seen a couple of acquisitions in the space, of course. Aqua Security helping customers along their security journey. So what do you seeing out there in the marketplace today and hear from your custom? >>Yeah, I Every business this year has, you know, look at what's going on and you know, it's been crazy time for everyone, but we've been pleasantly surprised at how, you know, in relative terms, our business has been able to. It's been strong, you know. And I think you know what you're touching on the fact that people are working remotely. People are doing so many things online. Security is evermore online. Cloud security's evermore part off what people need to pay attention to. We're doing more and more business online. So, actually, for those of us in the security business, it has bean, you know that there have been some silver linings to this this pandemic cloud? Um, yes. So many times in technology. The open source projects and in particularly defaults in kubernetes. Things are improving its long Bina thing that I've you know, I wished for and talked about that. You know, some of the default settings has always been the most secure they could be. We've seen a lot of improvements over the last 23 years we're seeing continuing to see innovation in the open source world as well as you know, on the commercial side and products that vendors like Akwa, you know, we continue to innovate, continue to write you ways for customers to validate that the application workloads that they're going to run are going to run securely in the cloud. >>Alright and lives. There's a new project that I know. Ah, you know, you Aqua are participating in Tell us a little bit about Starbird. You know what's what's the problem? It's helping solve and you know where that budget >>Yes, So stockholders, one of our open source initiatives coming out of my team are equal on, and the idea is to take security reporting information and turn it into a kubernetes native, uh, resources custom resources. And then that means the security information, your current security status could be queried over the kubernetes AP I, as you're querying the status or the deployment, say you can also be clearing to see whether it's passing configuration audits or it's passing vulnerability scans for the application containers inside that deployment. So that information is available through the same AP eyes through the queue control interface through dashboards like Octane, which is a nice dashboard viewer for kubernetes. And starboard brings security information not just from acquittals but from other vendor tools as well front and center into that kubernetes experience. So I'm really excited about Star Border. It's gonna be a great way of getting security visibility, Teoh more kubernetes use it >>all right. And we were talking earlier about just the maturity of projects and how they get into the sandbox. Is is this still pretty sandbox for >>this? OK, we're still very much in the early phases and you know it. I think in the open source world, we have the ability to share what we're doing early so that we can get feedback. We can see how it resonates with with real users. We've had some great feedback from partners that we've worked with and some actual customers who actually collaborated with When we're going through the initial design, some great feedback. There's still lots of work to do. But, yeah, the initial feedback has been really positive. >>Yeah, is usually the event is one of those places where you can help try toe, recruit some other people that might have tools as well as educate customers about what's going on. So is that part of the call to action on this is, you know, what are you looking for for kind of the rest of 2020 when it when it comes to this project? >>Yeah, absolutely. So internally, we're working on an operator which will automate some of the work that's double does in the background in terms off getting more collaboration. We would love to see integrations from or security tooling. We're talking with some people across the community about the resource definition, so we've come up with some custom resource definitions, but we'd love them to be applicable it to a variety of different tools. So we want to get feedback on on those definitions of people are interested in collaborating on that absolutely do come and talk to me and my team are reluctant. >>Great. Listen, and I'll give you the final word. Obviously, we're getting the community together while we're part So you know any other you know, engagement opportunities, you get togethers. Things that you want people to know about the European show this year. >>Well, it's gonna be really you know, I'm on tenterhooks to see whether or not we can recreate the same atmosphere as we would have in Q con. I mean, it won't be exactly the same, but I really hope that people will engage online. Do come and, you know, ask questions of the speakers. Come and talk to the vendors, get into slack channels with the community. You know, this is an opportunity to pretend we're in the same room. Let's let's let's do what we can Teoh recreate as close as we can. That community experience that you keep corn is famous for >>Yeah, absolutely. That whole way track is something that is super challenging to recreate. And there's no way that I am getting the Indonesian food that I was so looking forward to in Amsterdam just such a great culinary and cultural city. So hopefully sometime in the future will be able to be back there. Liz Rice. Always pleasure catching up with you. Thanks so much for all the work you're doing on the TOC. And always a pleasure talking to you. >>Thanks for having me. >>All right, Lots more coverage from Cube Con Cloud, Native con the European 2020 show, Of course. Virtual I'm stew minimum. And thank you for watching the Cube. Yeah, yeah, yeah, yeah.

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation you know for years marketers marketers have been pushing for more digital especially with their big conferences I heard forward-thinking CMO say the war will be won in digital but the sales teams love the belly-to-belly interaction so every year once or even sometimes more often big corporations have hosted gatherings of thousands or even tens of thousands of attendees these events were like rock concerts they had DJs in the hallway thumping music giant screens beautiful pitches highly produced videos thing a technical breakouts Food lines private dinners etc all come on it culminating in a customer appreciation event with a big-name band physical events are expensive but they generate tons of leads for the host companies and their partner ecosystems well then BOOM coronavirus hits and the marketing teams got what they wished for right overnight virtual events became a mandate if you don't have a solution you were in big trouble because your leads from these large events just dried up hello everyone this is Dave Allen day and welcome to this week's cube insights powered by ETR ETR is entering its quiet period and I won't be able to share any new data for a couple of weeks so rather than look back at the April survey in this breaking analysis we thought we'd take a pause and really talk about the virtual event landscape and just a few of the things that we've learned in the past 120 days now this isn't meant to be an exhaustive list but we do want to call out a few important items that we see is critical in this new digital world in the isolation economy every company scrambled they took one of three paths first companies either postpone their events to buy some time think like Dell technology world Google cloud next cube convey my MIT CBO event etc or to some companies flat-out canceled their events for the year until next year like snowflake and uipath forth number three they scrambled to deploy a virtual event and they went forward IBM think did this HPE discover Susac on AWS summits docker convey Monde a peggle world Vertica big data conference octane sa P sapphire and hundreds of others pushed forward so when this braking analysis I want to share some data from the cube what we've learned not only in the last hundred and twenty days but in ten years of doing events mostly physical and we want to share the new rules of events and event marketing and beyond so let's get right into it everyone knows events events have gone virtual and there are tons of people who could give you advice on approving your digital events including us and and I will in this segment but the first thing that everyone found out is they're going to attract far more people online with a free virtual event than they do with a paid physical event so removing time timing in the expensive travel dramatically increases the participation Tam the total available market here's a tweet from docker CEO Scott Johnson he says that he's looking forward to welcoming 50,000 people to his event this is based on registration data somewhere around 30,000 people logged into the live event so docker got 60% of the pre event registrants to actually log in which is outstanding but there's a lot more to this story I'll share some other stats that are worth mentioning by the way I got permission from docker to to share these numbers not surprising because the event was it was a huge success for such a small company in the end they got nearly 83,000 registrations and they continue to come in weeks after the event which was held in late May now marketers generally will cite 2 to 3 minutes as a respect-- respectable time on site for a web property docker logged in users averaged almost four and a half minutes on site that's the average the bell curve sauce superfans like this guy who was binge watching so this brings me to rule number one it's actually really easy to get people to sign up for free online events but it's not so easy to keep them there now I could talk all day about what docker did right and I'm gonna bring some examples in during this except this segment but the one thing docker did was they did a call for papers or a call for sessions and that's a lot of work but if you look at the docket on speaker list the content is all community driven not all but mostly community driven talker had to break some eggs and reject some folks but it also had a sponsor track so it gave folks another avenue to participate so big success for docker they definitely did it right which brings us to new rule number two attention is precious you got to create high-quality content and realize that you have much less time with participants than if they were in person now unfortunately the doctor docker example is a bit of an outlier it hasn't always been this pretty remember that scene in the social network the movie when a duardo pulled the funding on the servers just to get marks attention remember how Jesse Eisenberg the actor who played Zuckerberg reacted everybody else we don't crash ever if the server's are down for even a day our entire reputation is irreversibly destroyed the whole point well some of the big tech companies crashed their servers and they say there's no such thing as bad press but look at look what happened to s AP and s AP apologized publicly and its CEO told people that they made a mistake in outsourcing their event platform so this brings us to new rule number three don't crash now I come back to Dhaka Khan for a second here's a tweet from a developer who shared the network traffic profile of his network before and during docker con you can see no glitches I mean I don't mean to pick on sa P they they owned the problem and look s AP had a huge attention attendance at its digital event more than 200,000 people and over a million views so Wow you'll kill me with that problem but it underscores the importance of scaling and s AP you have to say was not alone there have been lots of fails from much smaller events here's an example that was really frustrating you try to log in at 7:59 but the event doesn't start until 8:00 sharp really come on back in 60 seconds and in another example there was a slide failure I mean many of these virtual events are glorified webinars so if you're going to rely on slide where make sure the slides will render its scale you maybe embed them into the video you know but at least this company had a back-up plan here's another example and I've redacted the email because I'm not here to throw anyone under the bus well you know kind of but but no reason to name names you know who they are but in this case an old legacy webinar platform failed and they had to move to WebEx and again at least there was a back-up plan so you know it's been tough in a lot of these cases here's a tweet from Jason Reed it kind of summed sums it up now what does he mean by vendors are not getting the job done not enough creativity well not only were platforms failing they weren't performing adequately but the virtual experience is leaving many users unenthused they're they're just one alt-tab away from something better if the virtual event fails to engage them so new rule number four is virtual events that look like webinars actually our webinar webinars I mean in fairness you know the industry had to pivot with no notice but this is why I always tell people start with the outcome that you want and work backwards that'll inform you as to the content strategy the new roles you need to assign and make no mistakes there are new rules you know there's no site inspection virtual and then you got to figure out what you want to use your experience to be there's a whole lot to figure out and this next next one is a bit of a throwaway because yeah it's so obvious and everyone talks about it but I want to bring it up because it's important because I'm amazed at how many virtual event speakers really haven't thought through their setup you can look good you know or at least less bad get those things called books and raise up the laptop figure out some better audio your better yet get a good kit send it to their home with a nice camera and a solid mic maybe you know a clearer IFB comms for the ear spend some money to look good just as you might go and buy a nice outfit even if you're a developer put on a clean t-shirt so rule number five don't cheap out on production value get your guests a good set up and coach them up it doesn't have to be over the top no just a bit thought out okay one of the biggest mistakes I've seen is event organisers they become enamored with a platform and the features of that platform that really don't support their objectives kind of feature creep or they have so many competing objectives and masters that they're serving that they lose sight of the user experience and then the event becomes a buffet of unused features rather than a buffet of engaging content now many have told me that Dave these virtual events are too long there's too much content now I don't necessarily agree I really think if you have something to say you should say it as long as you do it right and you keep people engaged so I want to talk a little bit about a to of the meteor events that we attended one was octane twenty20 hosted by octo the identity management security player and then IBM think 2020 they called it the the think digital event experience and they both had multi day events with lots of content they both organized sessions by topic and made it pretty easy to find stuff and all assessing sessions had a reasonably consistent look and feel to them which kind of helped the production value IBM had content organized and categorized which made things easy to find and they both had good search and with IBM you could go directly from the list of topics right into the videos which I really liked very easy and intuitive and as you can see here in this octane video they had a nice and very ambitious agenda that was really quite well organized and things were pretty easy to find as you can see with this crisp filtering on the left hand side and in really nice search but one of the things that has been frustrating with most of the events that I've watched is you can't get to the sessions directly from the agenda you got to go back out for some linear path and find the content and it's somewhat confusing so I want to come back to the docker count example because I think there were two things that I found interesting and useful with docker con you know this got George nailed it when he said this is how you display a virtual conference what's relevant about this picture is you have multiple simultaneous sessions running live and concurrently and you can pop in and out of them you can easily see the sessions and this tile and there's a red line this linear clock that's running in real time to show you where you are in the event agenda versus in a time of day so I felt like with docker that as a user user you're really connected to the event you come to the site and there's a hero video very easy to find the content and in fact you can't miss it it's not a sales pitch to get to the content and then I really liked what what George change was talking about in terms of the agenda and the tile layout you can see they ran simultaneous sessions and at one point up to seven at once and they gave their sponsors a track on the agenda which is very easy to navigate but what I really like as well is when you click on a tile it takes you directly to the session video and you can see the chat which docker preserved in the PO event mode and you have this easy-to-follow agenda and again you can go directly to the session video and in the chat from the agenda so many paths to find the content I mean something so simple is navigating directly from the agenda to the session most events haven't done that they make you back out and then what I call this linear manner and then go forward and find the sessions that you want and then dive in now maybe they're trying to simulate walking to a session in a Las Vegas Convention Center because it takes about that long to figure out where most of these events in these sessions live so rule number six is make it easy to discover and consume content sounds so simple why is it not happening in most events okay I'm running out of time so I want to encapsulate a number of items in one idea that we talk about all the time at the cube I ran a little survey of the day and someone asked does it really make sense to cram educational content product content partner content customer content rally content and leadership content into the constrain confines of an arbitrary one or two-day window I thought that was an interesting comment now it doesn't necessarily mean shorten up the virtual event which a lot of people think should happen people complain that these things are too long well let me leave you with this it's actually not just about events what do I mean by that well you know how everyone says that all companies are software companies or every company is a SAS company well guess what we believe that every company is a media company in 2004 at the low point of its reputation Microsoft launched channel 9 it was named after the United Airlines channel 9 that lets you listen in to the pilots and their unfiltered conversations kind of cool Microsoft understood that having an authentic voice with which to communicate to developers and serve its community was a smart thing to do and that is the key point channel 9 is about community it's not about audience metrics or lead generation both important things but Microsoft they launched this site understanding the leverage it gets out of its community of developers and instead of treating them like leads they created a site to help developers learn so rule number seven is get your best media mojo on one of the biggest failures I see with physical events and it's clearly carrying over to digital is the failure to optimize the post-event opportunity and experience so just like physical events when the event is over I see companies and their employees they're so burnt out after a virtual event because they feel like they've just given birth and what do they do now after the event they take some time off they got to recharge and when they come back they're swamped and so they're on to the next project it might be another event it might be a webinar series or some regional summits or whatever now it's interesting it feels like all tech companies talk about these days is breaking down silos but most of these parent and child events are disconnected silos sure maybe the data around the events is consolidated into a marketing cloud maybe so that you can nurture leads okay that's fine but what about the community kovat has given us a great opportunity to reimagine how we serve communities and one thing I'm certain about is that physical events they're going to come back at some point in some form but when they do there's gonna be a stronger digital component attached to them hybrids will emerge and some will serve communities better than others and in our opinion the ones that do the best job in digital and serving their communities are gonna win the marketing Wars so ask yourself how are you serving your community are you serving the best way that you can is a lead conversion your number one metric that's okay there's nothing wrong with that but how are your content consumption metrics looking what are you measuring what does your Arc of content look like what's your content and an organic media strategy what does your media stack look like media stack you ask what do you mean Dave well you nailed physical and then you were forced to do virtual overnight eventually there's going to be a hybrid that emerges so there's physical at the bottom and then there's a virtual layer and then you get this hybrid layer at some point on top of that at the very top of the stack you got apps social media you got corporate content you got TV like channel 9 you have video library's website you have tools for agile media you got media production and distribution tooling remember customers will be entering from any one of these layers of that stack and they'll be looking to you for guidance inspiration learning vision product knowledge how to's etc and you'd be delivering that primarily through content so your media stack should be designed to serve your community events software yeah sure but it's much more than that we believe that this stack will emerge not as a monolithic beast but rather as a set of scalable cloud services and api's think of paths for media that you can skin yes of course but also one that you can control add value to integrate with other platforms and fit your business as your community demands and remember new roles are emerging as a result of this pandemic and the pivot to digital the things are different really mostly from from most physical events is that it's very important to think about these roles and one of the important roles is this designer or UX developer that can actually do some coding and API integration think of it as a DevOps for digital organizations that's emerging organizations like yours will want self-service and sometimes out-of-the-box functionality and features for sure no question but we believe that as a media producer you will want to customize your media experience for your community and this work will require new skills that you haven't really prioritized in the past what what do you think what's your vision as to how this will all play out and unfold do you buy that all companies must become media companies or at least media savvy not in the sense of Corp comms but really as an organic media producer tweet me at devonté or email me at David Galante at Silicon angle comm or comment on my LinkedIn post who would react next week with some data from et our survey sphere thanks for watching this wiki bond cube insights powered by ETR this is Dave Volante we'll see you next time [Music]

>> Narrator: From around the globe, it's theCUBE! Covering HPE Discover Virtual Experience, brought to you by HPE. >> Artificial Intelligence, Monica Livingston, hey Monica, welcome to theCUBE! >> Hi Lisa, thank you for having me. >> So, AI is a big topic, but let's just get an understanding, Intel's approach to artificial intelligence? >> Yeah, so at Intel, we look at AI As a workload and a tool that is becoming ubiquitous across all of our compute solutions. We have customers that are using AI in the Cloud, in the data center, at the Edge, so our goal is to infuse as much performance as we can for AI into our base platform and then where acceleration is needed we will have accelerator solutions for those particular areas. An example of where we are infusing AI performance into our base platform is the Intel Deep Learning Boost feature set which is in our second generation Intel Xeon Scalable Processors and this feature alone provides up to 30x performance improvement for Deep Learning Inference on the CPU over the previous generation and we are continuing infusing AI into our base platform with the third generation Intel Xeon Scalable Processors which are launching later this month. Intel will continue that leadership by including support for bfloat16. Bfloat16 is a new format that enables Deep Learning training with similar accuracy but essentially using less data so it increases AI throughput. Another example is memory, so both inference and training require quite a bit of memory and with Intel Octane for system memory, customers are able to expand large pools of memory closer to the CPU, and where that's particularly relevant is in areas where data sets are enlarged like imaging, with lots of images and lots of high resolution images, like medical diagnostic or seismic imaging, we are able to perform some of these models without tiling, and tiling is where, if you are memory-constrained, you essentially have to take that picture and chop it up in little pieces and process each piece and then stitch it back together at the end whereas that loses a lot of context for the AI model, so if you're able to process that entire picture, then you are getting a much better result and that is the benefit of having that memory accessible to the compute. So, when you are buying the latest and greatest HPE servers, you will have built-in AI performance with Intel Xeon Scalable and Octane for system memory. >> A couple things that you said that piqued my interests are 30x improvement in performance, if you talk about that with respect to the Deep Learning Booster, 30x is a huge factor and you also said that your solution from a memory perspective doesn't require tiling and I heard context. Context is key to have context in the data, to be able to understand and interpret and make inferences, so, talk to me about some of those big changes that you're releasing, what were some of the customer-compelling events or maybe industry opportunities that drove Intel to make such huge performance gains in second generation. >> Right, so second generation, these are the processors that are out now, so these are features that our customers are using today, third generation is coming out this month but for second generation, Deep Learning Boost, what's really important is the software optimization and the fact that we're able to use the hooks that we've built into the hardware but then use software to make sure that we are optimizing performance on those platforms and it's extremely relevant to talk about software in the AI space because AI solutions can get super expensive, you can easily pay 2 to 3x what you should be paying if you don't have optimized software because then what you do is you're just throwing more and more compute, more and more hardware at the problem, but it's not optimized and so what's really impactful is being able to run a vast number of AI applications on your base platform, that essentially means that you can run that in a mixed workload environment together with your other applications and you're not standing up separate infrastructure. Now, of course, there will be some applications that do need separate infrastructure that do need alliances and accelerators and for that, we will have a host of accelerators, we have FPGAs today for real time low latency inference, we have Movidius VPU for low-power vision applications at the Edge, but by and large, if you're looking at classical machine learning, if you're looking at analytics, Deep Learning inference, that can run on a base platform today and I think that's what's important in ensuring that more and more customers are able to run AI at scale, it's not just a matter of running a POC in a back lab, you do that on the infrastructure that you have available, not an issue, but when you are looking to scale, the cost is going to be significantly important and that's why it's important for us to make sure that we are building in as much performance as is feasible into the base platform and then offering software tools to allow customers to see that performance. >> Okay, so talking about the technology components, performance, memory, what's needed to scale on the technology side, I want to then kind of look at the business side, because we know a lot of customers in any industry undertake AI projects and they run into pitfalls where they're not able to even get off the ground, so converse to the technology side, what is it that you're seeing, what are the pitfalls that customers can avoid on the business side to get these AI projects designed and launched? >> Yeah, so on the business side, I mean you really have to start with a very solid business plan for why you're doing AI and it's even less about just the AI piece, but you have to have a very solid business plan for your solution as a whole. If you're doing AI just to do AI because you saw that it's a top trend for 2020 so you must do AI, that's likely going to not result in success. You have to make sure that you're understanding why you're doing AI, if you have a workload that could be easily solved, or a problem that could be easily solved with data analytics, use data analytics, AI should be used where appropriate, a way to provide true benefit and I think if you can demonstrate that, you're a long way in getting your project off the ground, and then there's several other pitfalls like data, do you have enough data, is it close enough to your compute in order to be accessible and feasible, do you have the resources that are skilled in AI that can get your solution off the ground, do you have a plan for what to do after you've deployed your solution because these files need to be maintained on a regular basis, so some sort of maintenance program needs to be in place and then infrastructure, cost can be prohibitive a lot of times if you're not able to leverage a good amount of your base infrastructure and that's really where we spend a lot of time with customers in trying to understand what their model is trying to do and can they use their base infrastructure, can they reuse as much of what they have, what is their current utilization, do they maybe have cycles in off times if their utilization is diurnal and during the night they have early Utilization, can you train your models at night rather than putting up a whole new set of infrastructure that likely will not be approved by management, let's be honest. >> And I imagine that that is all part of the joint better marketing strategy that HPE and Intel have together to have such conversations like that with customers, to help really build a robust business plan. >> Yeah, so HPE's fantastic at consulting with customers from beginning to end, looking at solutions and they've got a whole suite of storage solutions as well which are crucial for AI and Intel works together with HPE to create reference architectures for AI and then we do joint training as well. But yes, talking to your HPE rep and leveraging your ecosystem I think is incredibly important because the ecosystem is so diverse and there are a lot of resources available from ISVs to hardware providers to consulting companies that are able to support with AI. >> So Monica, the ecosystem is incredibly important, but how do you work with customers, HPE and Intel together, to help the customer, whether its in biotech or manufacturing to build an ecosystem or partnership that can help the customer really define the business plan of what they want to do to get that for us functional collaboration and buy-in and support and launch a successful AI project. >> Yeah it really does take a village, but both Intel and HPE have an extensive partner network, these are partners that we work with to optimize their solution, in HPE's case, they validate their solutions on HPE hardware to ensure that it runs smoothly and for our customers, we have the ability to match-make with partners in the ecosystem and generally, the way it works, is in specific segments, we have a list of partners that we can draw from and we introduce those to the customer, the customer generally has a couple of meetings with them to see which one is a better fit, and then they go from there, but essentially, it is just making sure that solutions are validated and optimized and then giving our customers a choice of which partners are the best fit for them. >> Last question for you, Monica, we are in the middle of COVID-19 and we see things on the news every day about contact tracing, for example, social distancing, and a lot of the things that are talked about on the news are human contact tracers, people being involved in manual processes, what are some of the opportunities that you see for AI to really help drive some of these because time is of the essence, yet, there's the ethics issue with AI, right? >> Yes, yes, and the ethics issue is not something that AI can solve on its own, unfortunately, the ethics conversation is something we need to have broader as a society and from a privacy perspective, how are we going to be mindful and respectful while also being able to use some of the data to protect society especially in a situation like this, so, contact tracing is extremely important, this is something that in areas that have a wide system of cameras installed, that's something that is doable from an algorithmic perspective and there's several partners of ours that are looking at that, and actually, the technology itself, I don't think is as insurmountable as the logistical aspect and the privacy and the ethical aspect and regulation around it, making sure that it's not used for the wrong purposes, but certainly with COVID, there is a new aspect of AI use cases, and contact tracing is obviously one of them, the others that we are seeing is essentially, companies are adapting a lot of their existing AI solutions or solutions that use AI to accommodate or to account for COVID, like, companies that have observations done and so if they were doing facial recognition either in metro stations or stadiums or banks, they now are adding features to their systems to detect social distancing, for example, or detect if somebody is wearing a mask. The technology, again, itself is not that difficult, but in the implementation and the use and the governance around it, I think, is a lot more complex, and then, I would be remiss not to mention remote learning which is huge now, I think all of our children are learning remote at this point and being able to use AI in curriculums and being able to really pinpoint where a child is having a hard time understanding a concept and then giving them more support in that area is definitely something that our partners are looking at and it's something that (webcam scrambles) with my children and the tools that they're using and so instead of reading to their teacher for their reading test, they're reading to their computer and the computer's able to pinpoint some very specific issues that maybe a teacher would not see as easily and then of course, the teacher has the ability to go back with you and listen and make sure that there weren't any issues with dialects or anything like that, so it's really just an interesting reinforcement of the teacher/student learning with the added algorithmic impact as well. >> Right, a lot of opportunity is going to come out of COVID, some maybe more accelerated than others because as you mentioned, it's very complex. Monica, I wish we had more time, this has been a really fascinating conversation about what Intel and HPE are doing with respect to AI. Glad to have you back 'cause this topic is just too big, but we thank you so much for your time. >> Thank you. >> For my guest Monica Livingston, I'm Lisa Martin, you're watching theCUBE's coverage of HPE Discover 2020, thanks for watching.

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation vibrator this is Dave Volante and welcome to this special cube conversation as you know I've been running a CXO series now for several weeks really trying to understand how leaders are dealing and coping with the Cova 19 crisis today we want to switch gears a little bit and talk not only about how leadership has sort of navigated through this crisis but also start to imagine what it's going to look like coming out of it I'm going to introduce you to a company that have been talking about now for the last well six to nine months company called octave as you know from my previous breaking analysis this is a company that not only is in the security business they really kind of made their mark with identification management but also really there's a data angle normally when you think about security you thinking about auto security it means that less user flexibility it means less value from the user standpoint what what octa has done really successfully is bring together both endpoint security as well as that data angle and so the company is about six hundred million dollars in revenue they've got an eighteen billion dollar valuation which you know may sound kind of rich at 30 X a revenue multiple but as I've reported the company is growing very rapidly I've talked about the you know the rule of 40 octa is really a rule of 50 type of company you know by that definition they're with me here to talk about the product side of things as dia jolly who's the chief product officer yeah thanks so much for coming on the cube I hope you're doing okay how are things out in California things are going well good to meet you as well Dave I hope you're doing well as well yeah we're hanging in there you know the studios are rocking the cube you know continues our daily reporting I want to start with your role you're relatively new to octa you've got a really interesting background particularly understanding endpoints you're at Google Google home of Google Nest you spent some time you know worrying about looking after Xbox do you a good understanding of what's going on in the marketplace but talk about your your role and how specifically you're bringing that to enterprise sure so I drove about this I I say that I've done every kind of known product management imaginable the man at this point I'm done both Hardware Don software so dealt a lot with endpoints as you talked about that a lot with sass dealt with consumer dealt with enterprise and all over the place completely different sizes so after really my role as a chief product officer is to be able to understand and what our customers need right and what are the challenges they're facing and not just the challenges they're facing today but also what are the challenges that they'll face tomorrow that they don't even know about and then help build products to be able to overcome that both with our engineering teams as well as with our sales engineering team so that we can take it to market now my background is unique because I've seen so many identity being used in so many different ways across so many different use cases whether it's enterprise or its consumer and that given that we covered both sides spectrum I can bring that to bear yes so what I've reported previously is that that you guys kind of made your mark with with identification management but in terms of both workforce but also customer identification management which has been I think allowed you to be very very successful I want to bring up a chart and share something that I've I've shared a lot of data with our audience previously some guys if you bring that up so this is data from enterprise Technology Research our data partner and for those who follow this program you know we we generally talk in in two metrics a net score which is a measure of spending momentum and and also market share which really isn't real market share but it's it's pervasiveness in the survey and what you can see here is the latest April survey from over 1200 CIOs and IT practitioners and we're isolating on an octa and and we brought it back to July 15 survey you see a couple of points here I want to make one is it something to the right this is pervasiveness or market share so octa in the market is doing very very well it's why the valuation is so high what's driving the growth and then you can see in the green a 55% net net score very very strong it's one of the leaders in security but as I said it's more than than that so dia from a product standpoint what is powering this momentum sure so as you well know the world is working from home what after does is it provides Identity Management that allows you to connect to any technology and by any technology it primarily means technology technology that's not just on premise like your applications on-premise old-school applications or into software that's on premise but it also means technology that's in the clouds of SAS applications application infrastructure that's in the cloud etc and on the other hand it also allows companies to deploy applications where they can connect to their customers online so as more and more of the world moves to work from home you need to be able to securely and seamlessly allow your employees your partners to be able to connect from their home and to be able to do their work and that's the foundation that we provide now if you look at if you we've heard a lot in the press about companies like zoom slack people that provide online collaboration and their usage has gone up we're seeing similar trends across both octa as well as the entire security industry in general right and if you look at information recently since over to started phishing attacks have increased by six hundred and sixty seven percent and what we've seen in response is one of our products which is multi-factor authentication we've experienced in eighty percent growth in usage so really as Corvette has pushed forward there was a trend for people to be able to work remotely for people to be able to access cloud apps and but as ubered has suddenly poured gas on the fire for that we're seeing our customers reaching out to us a lot more needing more support and just the level of awareness and the level of interest raising let's talk about some of the trends that you guys see in the marketplace and like to better understand how that informs your product or you know roadmap and decisions you know obviously this cloud you guys have made a really good mark in the cloud space you know with both your your operating model your pricing model the modern stack the other is a reference that upfront which data talked a lot about digital transformation digital us data course the third is purity related to trust we've talked a lot on the cube about how the perimeter is there is no particular anymore the Queen is left her castle and so what are the big trends that you see the big waves that that you're riding and how does that inform your product directly sure so a few different things I think number one if you think about the way I've phrase this is or the way I think about it is the following any big technological trend you see today right whether it's the move the cloud whether it's mobile whether it's artificial intelligence intelligence you think about the neural nets etc or it's a personalized consumer experience all of that fundamentally depends on identity so the most important the so from a from being an identity provider the most important thing for us is to be able to build something that is flexible enough that is broad enough that it is able to span multiple uses right so we've taken from a product perspective that means we can follow two philosophies we can either the try and go solve each of these pain points one by one or we can actually try to build a platform that is more open that's more extensible and that's more flexible so that we can solve many of these use cases right and not only can we solve it because there's it extensible our customers can customize it they can build on top of it our partners can build on top of it so that's one thing that's one product philosophy that we hold dear and so we have the Octagon cloud which is a platform which provides both workforce identity as well as customer identity using the same underlying components the same multi-factor authentication we use for workforce we package up as an SDK so that our customer identity customers that's number one the second thing is you rightfully mention is data you can't really secure identity without data so we have very we have a lot of data across our customers we know when the users logging in we know what device they're logging in front we know the security posture on the device we know where they're logging in from we know their different behaviors were apps they go into or during wartime of the day etc so being able to harness all this data to say hey and apply ml model squared to say hey is the user secure or not is a very very core foundation of our product so for example we have what we call risk-based authentication you can not only do things like hey this user seems to be logging on from a location they've never logged on from but you could even do things like well you may not want to stop the user they may be traveling so instead of just asking them for a for a password you ask them for a multi-factor right so that's the other piece of it and in many ways data and security and usability are three legs of a triangle the more data you have the more you can allow a user you more security you can provide a user without creating more friction so it's sometimes helpful for the audience to understand a company in a edit Avant act in the landscape so the obvious platform out there is Active Directory now Microsoft with Azure Active Directory you know really you know trying to and and that's really been on their platforms but with api's you know Microsoft has got a thumbs in every pie how does octave differentiate from some of the other traditional platforms that are out there and and what gives you confidence that it and you can continue to do so going forward post kovat that's it that's a fantastic question Dave um so I think we divide if you think about our competitors on the workforce side we've got Microsoft and a couple of other competitors and on the customer Identity side really it's a bill versus buy story right most companies customer identity internally so let's take workforce first Microsoft is the dominant player there they've got Active Directory they've now got Azure Active Directory and from a Microsoft perspective I think Microsoft is always been great at building products or building technology that interconnected run the world is going to more there's more and more technology proliferation in the world and the way we differentiate is by becoming a neutral and independent platform so whether you're on a Microsoft stack whether you're on a Google stack whether you're on an amazon stack we are able to connect with you deeply we connect just as well with all 365 as they connect with Salesforce as we connect with AWS right and that has been our core philosophy and not only is that a philosophy for other when other vendors it's a philosophy for ourselves as well we have multi-factor authentication so do many other providers like duo if you want to use ours great if you don't want to use ours with our platform who use the one that's best for your technology and I think what we've always believed in from a product perspective is this independence this neutrality this ability to plug-and-play any technology you want into a platform to be able to do what you want and the technology that's best for your business's need so what's interesting what you said about the sort of make versus buy that's particularly relevant for the customer identification management because let's say you know I'm buying from Amazon I've got Amazon they know who I am but if I understand it correctly customers now are able to look across brands maybe cohort selling maybe make specific offers analyze the data that's an advantage that you bring that maybe do it yourself doesn't Frank maybe talk about that a little bit sure so really if you think about if you think about a bill versus buying even ten years ago life used to be relatively simple maybe 15 years ago you had a website you as your username your the password you weren't really using you don't have multiple channels you didn't have multiple devices as prevalent you didn't have multiple apps in a lot of cases connected to each other right and in that in that day and age password was fairly secure you weren't doing a lot of personalization with the user data or had a lot of sensitive user data so building a custom identity solution having your customer managing your customers identity yourself was fairly easy now it's becoming more and more hard number one I just talked about the phishing attacks they're an equal number of attacks on the customer identity side right so how do you actually secure this identity how do you actually use things like multi-factor authentication how do you keep up with all the latest in multi-factor authentication touch ID face ID etcetera and that's one the second thing we provide is scale for a number of companies we also provide the ability to scale dramatically which scaling identity and being being able to authenticate someone and keep someone authenticated in real time is actually a very big channel challenge as you get to more and more scale and then the last thing that you mentioned is this ability we provide a single view of the user which is super super powerful because now if you think about one of our customers Albertsons they have multiple different apps there are multiple different digital experiences and he don't have a siloed view of their customer across all these experiences here one identity for your customer that customer uses that one identity to log on to all your digital experiences across all channels and we're able to bring that data back together so if Albertsons wants to say hey somebody shot a in or bought something in one particular app but I know people that buy this particular object like something else that's available in another app they can give a promotion for it or they can give a discomfort that's so that makes a lot of sense I went into the PR platform get our data partner and I looked at which industries are really showing moment so remember this survey focus was run right in the heart of the the Cova 19 pandemic from from mid-march the mid April so it's a good of good current data point and there were four that stood out large companies healthcare and pharma telco which is courses this work-from-home thing and then consumer the example that you just gave from Albertsons is really you know sort of around that consumer there are a lot of industries that obviously been hit airlines restaurants hospitality but but these four really stood out as growth areas despite the kovat 19 pandemic I want to ask you about octane you just got it had your big user conference anything product specific that came out of that that our audience should know about I mean I'm an interested in access gateway I know that wasn't necessarily a new announcement but Cloud Gateway what were the highlights of some of those things from a product stamp yeah of course so we did we did made a very difficult decision to pivot octane virtually and we did this because a number of our customers are given what they're facing with the Kovach pandemic wanted to hear more around news around what our product launches are how they could use this with cetera and really I'd say there are three key product launches that I want to highlight here we had a number of different announcements and it was a very successful conference but the three that are the most relevant here one is we've always talked about being a platform and we've set this for the past four or five years I think and but over the last your and going into the next couple of years we're investing very very heavily in making our platform even more powerful even more extensible even more customizable and so that it can go across the scenarios you described right which is whether you're on Prem with Auto access gateway or you're in the cloud or in some kind of hybrid environment or you using some mix-and-match or work from home people in the office etc so really what we did this year over the last year was deepen our platform footprint and we started releasing the four components available in a platform which we call platform services so we have six components and we were directories that is customizable and and flexible so you can build your own emails except for N equals four users adds information related to them we have an integration platform that we've made available at a deep level where where our customers can use SDKs tools etc to be able to integrate with octa in a platform which we've talked a lot about and then we released three new platform services and one was what we call arc identity engine we had released we talked about this last year and this year we talked about it last year from a customer identity perspective this year we brought her into our workforce identity but also what that does is it allows you a lot more flexibility for situations like we're in right it allows you flexibility to define security policies at the parabola it so you could decide hey for my email I don't want my customers to have to use a multi-factor authentication for but for Salesforce I would definitely want them to use a multi-factor authentication if they're not in the office and it also allows you to have a lot more flexible factor recovery so for example if you forgot your password one of the biggest pain points of co-ed has been the number of helpdesk costs have been rising through the roof the phone calls are ringing nonstop right and one of the biggest reasons for helpdesk are says oh I can't login I got locked out either lost a factor or L forgot my password it helps with that um so that's one set of announcements the second set of announcements was we launched a brand new devices platform and personally this is my personal favorite but really what the devices platform allows you to do is the feature in it that we launched is called Fast Pass and what phosphorous allows you to do is it actually takes phosphorous to the next level it allows you to basically use logging into your device and us understanding the posture of the device and all the user context around you to be able to log you directly dr. then I imagine if you're on a Mac or a iOS device or an Android or a Windows device just being able to face match into your iOS or being able to touch ID into your Windows hello and you're automatically logged into lockdown right that is that and and the way we do that is we have this client on across all these operating systems that can really understand the security posture of the device it can understand of the device is managed if it's safe if it's jailbroken if it's unmanaged it can also connect with multiple signals on the device so if you have an EDR and MDM vendor we can ingest those signals and what they think of the risk we can also ingest signals directly from apps if apps things like um G suite and Salesforce actually track user behavior to determine risk they can pass those signals to us and then we can make a decision on hey we should allow the user to authenticate directly into octa because they've authenticated their device which we can make a decision that says no let's provider let's ask them to step up with a multi-factor authentication or we can say no this is too risky let's deny access and all of this is configurable by the IT admin they can decide the risk levels they're comfortable with they can decide the different risk levels by different apps so that was another major announcement and then and as a product person you rarely ever get the chance to actually increase security and usability at one time which is why it's my favorite you increase both security and usability together now the last one was action was a workflows engine we call it workflows lifecycle management and we it's really we launched a graphical no cord user interface identity is so important so many business processes for our customers there's so many business processes built an identity for example if someone joins her company you usually either have a script that allows them access to the applications they need to or you actually have an IT admin sitting in there trying to manually provide access or when they leave right what workflow lifecycle management or lifecycle management workflows allows you to do is it actually allows you to provide it actually provides you the no core graphical user interface where you can build all these flows so now you don't need someone that knows coding you can even have a business unit so for example I for me in the product for the product org I can have someone say hey building a business process similar it's something you would build in sort of like an iPad and allow everyone that comes in to be able to have access to fig mom because we use pigma a lot right those are the kinds of things you can do and it's super powerful and it takes the ability of our already existing lifecycle management product to the next level well thank you for that that's that summary dear so I want to kind of close with I mean those of you have been following the cube for a while there I think there's some similarities between octa and and and service now that obviously obvious differences but we started following you know ServiceNow pre-ipo is less than a hundred million dollar company and we've seen that company build out as a platform company and that's really what octa is doing here we're talking about a total available market that's yeah probably north of 50 billion so the the question I have he is you know what Frederic and pod started 11 years ago playing on the dynamics coming out of the financial crisis that got us to where we are today now you've got the challenge of you've achieved reached escape velocity now you've got this you know massive growth opportunity in front of you how do you see the product portfolio evolving expanding and I'm also interested in postcode with 19 you know no whiteboards no face-to-face contact not at least not for a while and how you're kind of managing through that but but how can we expect the product portfolio to expand over time what can you share with us so one of the given how pervasive identity has become and given how not just broad but at the same time deep it is there are multiple different places or product portfolio >> and a number of different places were thinking about right so one is you mentioned today we play in workforce identity and customer identity but we haven't even begun to talk about how we might play in consumer right one of the one of the biggest perk matter is consumers and consumers protecting their own identity so often an employee is not using their identity to lock the seals ports and you have an attack on a company and offered an employee actually logging into their Gmail their personal Gmail or their personal or some personal website that bank and they get and their credential get compromised in their fluency impossible so the more protective the more directly consumers the more we indirectly protect both enterprises from work from an employer as well as a customer perspective howdy we're an enterprise company so it doesn't mean that we are going to go direct to consumer there are ways to make employees more secure by what the director calls were so that's one the second thing is managing identities I think we've as the number of applications as the number of technologies are proliferate managing and an employee's life cycle who that governing that the life cycle is not administering etc is also fully stock also becoming very very challenging it was all well and good we'll never can ask and you were on that that's not true anymore an average company uses I think close to 200 applications and then if you broaden back to other resources like infrastructure there's a lot lock more so how do you actually build automated systems that based on the employee status based on their rule based on the project they're on provides them the right access for the right amount of time the third thing you mentioned is and you should pass on this initially but this is the there's this concept of zero security right and the perimeters disappeared how do you provide security so if you look at the industry at large today there are tons of different security vendors trying to provide security at each point if you talk to any see-saw out there it's really really hard to cobble all of this together and one of the things we were trying to do is we're trying to figure out how with our partners we can build a silly end-to-end solution for n - n zero trust for our customers so that's that's another area that the of the product portfolio we're pushing and then finally with the whole digital transformation and customer identity yes more and more companies want their customers to go back online yes more and more customers convenience of being able to interact online with Billy if you think about it the world has changed dramatically over the last three years with privacy laws with things like gdpr CCP etc how do you actually manage your customers obviously you actually manage their content how do you ensure that while you're using all this data from across these apps that we talked about here you and you're using for the first benefit how do you make sure that the minister private is secure and and how do you ensure your customers that's another major area that I think our customers are asking us for helping and so those are areas or so that you should be a big signature the next two to three years some of it will be through partnership that's generally that high-level directions we're headed in wealthy you so much for coming on the key on the key and sharing the product roadmap and some other details about the great company really interested in watching its continued ascendancy good luck in the marketplace and thank you for watching everybody this is Dave Villante you conversations we'll see you next time [Music]

>>Ly from San Diego, California. It's the cube covering to clock in cloud native con brought to you by red hat, the cloud native computing foundation and its ecosystem Marsh. >>Welcome back to San Diego. I'm Stewman and my cohost is Justin Warren. And coming back to our program, one of our cube alumni and be coach hair of this coupon cloud native con prion Lyles who is also a senior staff engineer at VMware. Brian, thanks so much for joining us. Thanks for having me on. And do you want to have a shout out of course to a Vicky Chung who is your coach hair. She has been doing a lot of work. She came to our studio ahead of it to do a preview and unfortunately she's supposed to be sitting here but a little under the weather. And we know there was nothing worse than, you know, doing travel and you know, fighting an illness. But she's a little sick today, but um, uh, she knows that we'll, we'll, we'll still handle it. Alright, so Brian, 12,000 people here in attendance. >>Uh, more keynotes than most of us can keep a track of. So, first of all, um, congratulations. Uh, things seem to be going well other than maybe, uh, choosing the one day of the year that it rained in, uh, you know, San Diego, uh, which we we can't necessarily plan for. Um, I'd love you to bring us a little bit insight as to some of the, the, the goals and the themes that, uh, you know, you and Vicki and the, the, the, the, the community we're, we're looking at for, for this coupon. So you're right, let's help thousand people and so many sponsors and so many ideas and so many projects, it's really hard to have a singular theme. But a few months ago we came up with was, well, if, if Kubernetes in this cloud software make us better or basically advances, then we can do more advanced things. >>And then our end users can be more advanced. And it was like a three pong thing. And if you look, go back and look at our keynotes, he would say, Hey, we're looking at our software. Hey, we're looking at an amazing things that we did, especially cat by that five G keynote yesterday. And the notice that we had, it was me talking about how we could look forward and then, and then notice we had in talking about security and then we had Walmart and target talking about how they're using it and, and that was all on purpose. It's trying to tell a story that people can go back and look at. Yeah, I liked the, the message that you were, you were trying to put out there around how we need to make Kubernetes a little bit easier, but how we need to change the way that we talk about it as well. >>So maybe you could, uh, fill us in a little bit more. Let's say, unfortunately, Kubernetes is not going to get an easier, um, that's like saying we wish Linux was easier to use. Um, Linux has a huge ABI and API interface. It's not going to get easier. So what we need to do is start doing what we did with Linux and Linux is the Colonel. Um, this should be some Wars happened over the years and you notice some distributions are easier to use. Another. So if you use the current fedora or you the current Ubuntu or even like mint, it's getting really easy to use. And I'm not suggesting that we need Kubernetes distributions. That's actually the furthest thing, but we do need to work on building our ecosystem on top of Kubernetes because I mentioned like CIS CD, um, observability security audit management and who knows what else we need to start thinking about those things as pretty much first-class items. >>Just as important as Kubernetes. Kubernetes is the Colonel. Yeah. Um, in the keynotes, there's, as you said, there's such a broad landscape here. Uh, uh, I've heard some horror stories that people like, Oh, Hey, where do I start? And they're like, Oh, here's the CNCF landscape. And they're like, um, I can't start there. There's too much there. Uh, you, you picked out and highlighted, um, some of the lesser known pieces. Uh, th there's some areas that are a little bit mature. What, what are some of the more exciting things that you've seen going on right now, your system and this ecosystem? >> Um, I'm not even gonna. I highlighted open policy agent as a, as an interesting product. I don't know if it's the right answer, actually. I kind of wish there was a competitor just so I could determine if it was the right answer. >>But things like OPA and then like open telemetry, um, two projects coming together and having even bigger goals. Uh, let's make a severability easy. What I would also like to see is a little bit more, more maturity and the workflow space. So, you know, the CII and CD space. And I know with Argo and flux merging to Argo flux, uh, that's very interesting. And just a little bit of a tidbit is that I, I also co-chair the CNCF SIG application delivery, uh, special interest group, but, uh, we're thinking about that, that space right there. So I would love to see more in the workflow space, but then also I would like to see more security tools and not just old school check, check, check, but, um, think about what Aqua security is doing. And I'm, I don't know if they're now Snick or S, I don't know how to say it, but, um, there's, there's companies out there rethinking security. >>Let's do that. Yeah. I spoke to Snick a couple of days ago and it's, I'm pretty sure it's sneak. Apparently it stands for, so now you know, which that was news to me that, so now I know interesting. But they have a lot of good projects coming up. Yeah. You mentioned that the ecosystem and that you like that there's competitors for particular projects to kind of explore which way is the right way of doing things. We have a lot of exhibitors here and we have a lot of competitors out there trying to come into this ecosystem. It seems to actually be growing even bigger. Are we going to see a period of consolidation where some of these competing options, we decided that actually no, we don't want to use that. We want to go over here. I mean according to crossing the chasm, yes, but we need to figure out where we are on the maturity chart for, for the whole ecosystem. >>So I think in a healthy, healthy ecosystem, people don't succeed and products go away, but then what we see is in maybe six months or a year or two later, those same founders are out there creating new products. So not everyone's going to win on their first shot. So I think that's fine because, you know, we've all had failures in the past, but we're still better for those failures. Yeah, I've heard it described as a kind of Cambridge and explosion at the moment. So hopefully we don't get an asteroid that comes in and, uh, and hopefully it is out cause yeah. Um, one of the things really, really noticed is, uh, if you went back a year or even two years ago, we were talking about very much the infrastructure, the building blocks of what we had. Uh, I really noticed front and center, especially in the keynote here, talking a lot about the workload. >>You're talking about the application. We're talking about, uh, you know, much more up the stack and uh, from kind of that application, uh, uh, piece down, even, uh, some friends of mine that were new to this ecosystem was like, I don't understand what language they're talking. I'm like, well, they're talking to the app devs. That's why, you know, they're not speaking to you. Is that, was that intentional? >> Well, I mean for me it is because I like to speak to the app devs and I realized that infrastructure comes and goes. I've been doing this for decades now and I've seen the rise of Cisco as, as a networking platform and I've seen their ups and downs. I've worked in security. But what I know is fundamentals are, are just that. And I would like to speak to the developers now because we need to get back to the developers because they create the value. >>I mean the only people who win at selling via our selling Kubernetes are vendors of Kubernetes. So, you know, I work for one and then there's the clouds and then there's other companies as well. So the thing that stays constant are people are building applications and ultimately if Kubernetes and the cloud native landscape can't take care of those application developers remember happened, remember, um, OpenStack, and not in like a negative way, but remember OpenStack, it got to be so hard that people couldn't even focus on what gave value. >> Unlike obvious fact leaves on it. It's still being used a lot in, in service providers and so on. So technology never really goes away completely. It just may fade off and live in a corner and then we move on to whatever's the next newest and greatest thing and then end up reinventing ourselves and having to do all of the same problems again. >>It feels a little bit like that with sometimes the Kubernetes way where haven't we already sold this? Linux is still here, Linux is still, and Linux is still growing. I mean Linux is over Virgin five right now and Linux is adapting and bringing in new things in a Colonel and moving things out to the user land. Kubernetes needs to figure out how to do that as well. Yeah, no Brian, I think it's a great point. You know, I'm an infrastructure guy and we know the only reason infrastructure exists is to serve up that application. What Matt managed to the business, my application, my data. Um, you and your team have some open source projects that you're involved in. Maybe give us a little bit about right? So oxen is a, so let me tell you the quick story. Joe Beda and I talked about how do we approach developers where they are. >>And one thing came up really early in that conversation was, well, why don't we just tell developers where things are broken? So come to find out using Kubernetes object model and a little bit of computer science, like just a tiny little bit. You can actually build this graph where everything is connected and then all you need to do then is determine if for any type of object, is it working or is it not working? So now look at this. Now I can actually show you what's broken and what's not broken. And what makes octane a little bit different is that we also wrapped it with a dashboard that shows everything inside of a Kubernetes cluster. And then we made it extensible. And just, just a crazy thing. I made a plugin API one weekend because I'm like, Oh, that would be kind of cool. And just at this conference alone, nine to 10 people to walk up to me and said, Oh, um, we use oxygen and we use your plugin system. >>And now we've done things that I can't imagine, and I think I might've said this, I know I've said it somewhere recently, but the hallmark of a good platform is when people start creating things you could never imagine on it. And that's what Linux did. That's what Kubernetes is doing. And octane is doing it in the small right now. So kudos to me and me really and my team that's really exciting. So fry, Oakton, Coobernetti's and Tansu both are seven sided. Uh, was, was that, that, that uh, uh, moving to, uh, to, to eight, uh, so no marketing. Okay. And I don't profess to understand what marketing is. Someone just named it. And I said, you know what, I'm a developer. I don't really mind w as long as you can call it something, that's fine. I do like the idea that we should evolve the number of platonic solids. >>There's another answer too. So if you think about what seven is, it, um, people were thinking ahead and said, well, someone could actually take that and use it as another connotation. So I was like, all right, we'll just get out of that. That's why it's called octane, but still nautical theme. Okay, great. Brian. So much going on. You know, even outside of this facility, there's things going on. Uh, any hidden gems that just the, you know, our audience that's watching or people that we'll look back at this event and say, Hey, you know, here's some cool little things there. I mean, they hit the Twitters, I'm sure they'll see the therapy dogs and whatnot, but you know, for the people geeking out, some of those hidden gems that you'd want to share. Um, some of the hidden gems or I'll, I'll throw up to, um, watch what these end-user companies are doing and watch what, like the advanced companies like Walmart and target and capital one are doing. >>I just think there's a lot of lessons to be learned and think about this. They have a crazy amount of money. They're actually investing time in this. It might be a good idea. And other hidden gyms are, are companies that are embracing the, the extension model of Kubernetes through custom resource definitions and building things. So the other day I had the tests on, on the stage, and they're not the only example of this, but running my sequel and Coobernetti's and it pretty much works all well, let's see what we can run with this. So I think that there's going to be a lot more companies that are going to invest in this space and, and, and actually deliver on these types of products. And, and I think that's a very interesting space. Yeah. We, we spoke to Bloomberg just before and uh, we talked to the tests, we spoke to Subaru from the test yesterday. >>Uh, seeing how people are using Kubernetes to build these systems, which can then be built upon themselves. Right. I think that's, that's probably for me, one of the more interesting things is that we end up with a platform and then we build more platforms on top of it. But we, we're creating these higher levels of abstraction, which actually gets us closer to just being able to do the work that we want to do as developers. I don't need to think about how all of the internals work, which again to your keynote today is like, I don't want to write machine code and I just want to solve this sort of business problem. If we can embed that into the, into this ecosystem, then it just makes everyone's lives much, much easier. So you basically, that is my secret. I'm really, I know people hate it for attractions and they say they will, but no one hates an abstraction. >>You don't actually turn the crank in your motor to make the car run. You press the accelerator and it goes. Yeah. Um, so we need to figure out the correct attractions and we do that through iteration and failure, but I'm liking that people are pushing the boundaries and uh, like Joe beta and Kelsey Hightower said is that Kubernetes is a platform of platforms. It is basically an API for writing API APIs. Let's take advantage of that and write API APIs. All right. Well, Brian, thank you. Thank Vicky. Uh, please, uh, you know, share, congratulations to the team for everything done here. And while you might be stepping down as, or we do hope you'll come and join us back on the cube at a future event. No, I enjoyed talking to you all, so thank you. Alright, thanks so much Brian for Justin Warren we'll be back with more of our water wall coverage. CubeCon cloud native con here in San Diego. Thanks for watching the queue.

>> Announcer: Live from San Francisco, celebrating 10 years of high tech coverage, it's theCUBE, covering VMworld 2019. Brought to you by VMware and its ecosystem partners. >> Welcome back, this is theCUBE at VMworld 2019. I'm Stu Miniman, my cohost is John Troyer. It's our 10th year at the show, we've been going three days, wall to wall, on two sets and really happy to welcome to the program, a first time guest, Geoff Tudor is the vice president, general manager of Vision.AI, inside Panzura. Thanks so much for joining us. >> Yes, you best suit things John. >> All right, so, we've known Panzura for quite a number of years, the founder of the company's someone we've talked to a bit. I believe this is the first time we've talked about Vision.ai, so maybe set the table with us, of Panzura Today, and the value of the sharing app. >> Sure, absolutely, so, Panzura is known predominantly for its file services, of which we can provide a global collaborative name space, across multiple different locations. So, entities that are in the design, engineering, manufacturing, anything where you're working with a lot of distributed groups that need access to the same kind of working set files, and big data files have been using Panzura for file services for a number of years. We're in 33 countries, 7,000 deployments, and largely in the Fortune 100. And that's kind of where we started to see that the growth of data is not only in user-generated content like PowerPoints or data-based backups, but it's the machine-generated data, and that's what brought us to Vision.ai. >> Okay, so great. The layout, that was an internally created product. How long has it been available, what's the key IP in there that differentiates from others in the marketplace? >> So, great question. Well, the thing with machine-generated data is there's a lot of it, right? And as you know, it's growing at 60% compounding growth rate, all these great statistics, but in order to drive value of machine data, especially when you're looking at ML and AI, the larger the data set, the larger the training data set, the better the prediction models, and one of the problems with today's storage platforms for machine data, is that you're taking data, you're indexing it, then you're putting it on Flash, which is a phenomenal storage platform, but if you're looking for petabytes of Flash for just retaining a couple months worth of data, it becomes very expensive, very fast so a couple of years ago, we took some of the core IP that we had and creating file to object mapping, and said, look, let's build a new cloud native architecture to manage cloud native digital machine-generated data, and be able to transfer that not only for the block storage to put in the object storage. So we created something called VBOS, Vision Block Object Storage, that allows us to take, index this data, and then write it to object but still, while it's an object, have it still searchable, and that really unlocks a value of these very large data sets, so you no longer have to push this off on a tape, or push it off into object storage where it's no longer available, it sits in object storage, but it's always on, it's always available. >> And is this a software offering, does it sit in my bucket somewhere, or does it sit in yours, and then actually are we, machine-generated data, that's a pretty wide term. Are we talking log files, or? >> Well, certainly log files is a core starting point because that's something everyone here at VMWorld, you know, has in common, right? As our systems and records are creating and running virtual machines, it's generating digital data about who accessed what, when, where, when and how, for IP address security information, dashboards, et cetera. So, we've created this as a service because, in a multicloud world, you need one platform where you can ingest these data feeds and these log feeds, and then store that and search it. People have been generating and deploying on-site log files for some time, but we've seen a large interest among our customer base, in a hosted service that can securely store and make their logs accessible. >> All right, Geoff, bring us inside a customer. What is some of the typical use cases, outcomes, that customers, if you have any example that might illustrate it, I'd love that. >> Sure, so we'll take a customer that is in the publishing business and as you know, in the publishing busines, we were going from paper into digital right? So it's just digital transformation and as their industry changed, they became now a web hoster, so the sites and their papers that used to advertise and their classifieds and by-print ads, they're now managing their digital experience, well, as they were doing that, they came into a situation where some of their sites were having unpredictable performance lows, and they're just sophisticated enough to have one IT person managing, you know, 50 different, to about 50 different servers, virtual machines, running these, hosting these sites. So they needed help, like is there a platform that can come help me create dashboards so I can visualize this log data that came in to us so our partner, one of our key partners here is phoenixNAP at the show, and Intel's demonstrating our Octane Accelerated Technology, so we went into this particular customer, onboarded him in five minutes, created the dashboards for him, and now their logs are coming in a number of gigabytes per day, and that can visualize and find out any points of their operations that are creating problems and slow access time for their customers. >> You know, I love the storage data aspect of it, right? The searchable object store sounds very neat, I bet there's some very cool computer science there, storage and data geeks love that. It's also got AI in the name, and we talked about ML and AI, so where does that come into the picture? >> Absolutely, sir, great question. The AI and ML aspect of this is because as you get primarily the large data set sizes, then you can start putting machine generated algorithms on top of it, right, so creating large data stores, and then the first machine generated analytics that we've run on top of it, are things such as storage prediction costs, it's actually one where we've saved one of our customers in financial services, tens of thousands of dollars a month, because we can look at their bucket, their bucket sizes and the access times to their S3 buckets and say look, you know, you're actually not accessing it. You can drop it down in the infrequent access and you're not going to get a higher bill, so we can run these analytics for them, provide that data to them. >> Geoff, we're here at VMWorld. >> Yes. >> VMworld's talking a lot about multicloud, and microservices, cloud native, VMware cloud pieces, help us understand the intersection between what you're doing, and how that ties into VMware and their customers. >> Absolutely, well, in a multicloud world, VMware is obviously one very important component of it. But there's also components that are non-Vsphere based, right, and so, we have to be cognizant of this, and need a platform that can support any data feed from any data source, so that's certainly one of them. But number two, as you mention it, microservice. Traditional log platforms or machine data platforms such as Elastix, or Archer Splunk or things like that, is where you go and you create your architecture, and your infrastructure, and you manage that infrastructure as you're putting that data into it so it puts operational burden on the customer to go manage all this. In our view of the world, it needs to be completely serverless. You need to be able to consume machine data, log data, as a microservice in a complete service mythology, so you send your data into this URL, it goes into your bucket, it's encrypted, it's dropped into your object service where it's searchable. >> Yeah, it's funny, I've been looking at the serverless space for a couple of years now, functions, really interesting stuff, Kelsey Hightower actually put out, he said, isn't most of networking serverless by definition? Maybe just clarify that for us. >> Yeah, so serverless is just like the cloud. It's just somebody else's data center, okay? >> I actually have the T-shirt for serverless, it updates that there is no cloud, it's a computer, it's just a microservice that you pay a little bit for when you need it, things like that. >> Right, when you need it, but really, it gets into if I want to spin up elastic searches, talk about that, because that is one of the key workloads that's running in our platform, when you talk about elastic search service, if you want to spin that up, you need to go literally spin up virtual machines, assign block storage to those virtual machines, and hope that you assign enough storage for your data ingestion, otherwise your performance is going to go down, your data is going to become blocked, then you're going to need to assign storage. So, you're still managing stuff, even though it's in the cloud, in our world, we're kind of trying to turn machine generated data and democratize it into simple as a Gmail account right? I create, I request a microservice endpoint, then you write to that endpoint. Now, of course, we're managing servers, and we're managing clusters and virtual machines, and all that funness, but it's transparent to you, and most importantly, you're not hit with any cost for the infrastructure. You're only charged for what you're consuming, and that means it's a complete consumable base bottle from that standpoint, which saves customers a lot money from otherwise having to buy and host a lot of infrastructure. >> So, Geoff, you have a big presence here at the show, A nice booth, I hope it's been a good week, I'm curious about what you thought the energy was, I think you all had an announcement, talk a little about that and how that works with the ecosystem in the audience here. >> Yeah, we actually have two announcements, and let's take the first from the file services, because from our file service platform, we're announcing Vsense certification, which is coming in the fall, we've gone through that process, so that anywhere you're running VMware, on any of the cloud providers on top of SAN, vSAN, you now have a file services platform on top of that that can expand beyond just your NVMe, and also leverage that object storage for this kind of infinite filer, if you will, for that, but the other announcement we have is the log analytics service. >> All right, yeah, tell us a little bit about customer meetings you're having. What are the things that are bringing customers to you, is there a certain thing that, you know, when you hear it, you're like ah, this is a perfect Panzura customer. >> Well, yeah, certainly, I would think that any data and storage is just a universal problem, and people can't get enough of it, and ultimately they want to get out of the business of managing storage a lot, in this case so in that particular instance, being able to offer them a software defined file system platform for our traditional filer environment, is something that's going to, it's just a evergreen forest, right, it's going to continue to grow, you know, the performance of file and flash at the price of object, that's a pretty clear value proposition. In the machine generated data analytics space with Vision.ai, it is how do I make sense of my data? I need to take all of these data streams, and actually put some intelligence on it, and create alerts, visualize this data, so our big proposition here is five minutes to visualize your data, and that resonates. I can walk these customers that are traditionally having to go build their own log service environments, and I'm saying here, let me onboard you. We can actually start sending their data up and having visualizations and alerts in five minutes, and that's revolutionary to them, right? The simplicity of it is key, and I think that's making IT simple to consume and democratizing is something we're focused on doing. >> Geoff, last thing I have, tell us a little bit about what we should expect going forward. Obviously, the AI and ML stuff is continuing to grow, what should customers be looking for from Panzura in the near future? >> No matter how sophisticated a customer in an enterprise is, they don't have enough smart people, right? And data scientists are very expensive, and they're very scarce so what we're doing and focused on doing and we will be doing more of, is we've built a marketplace, a marketplace where data applications, data analytics applications, can be created by the community, can be published into and be consumed by an enterprise, so that they have their account, they add in this application, they can immediately start utilizing and experiencing and unlocking the power of their data. >> Geoff Tudor, really appreciate the update on Panzura. Congrats on the progress of Vision.ai, and hope to catch up with you in the near future. >> Great, thanks so much, I look forward to next year. >> For John Troyer, I'm Stu Miniman, getting towards the end of our coverage from Vmworld 2019, but as always, thanks for watching theCUBE. (gentle music)

>> Live from San Diego, California It's the queue covering Sisqo Live US 2019 Tio by Cisco and its ecosystem barkers. >> Welcome back. It's the Cube here at Cisco Live, San Diego 2019 times. Two minute My co host is Day Volante. First, I want to welcome back custom dos Katie, who is the vice president. Product management with Cisco Compute. We talked with him a lot about Piper Flex anywhere in Barcelona. Wanna welcome to the program of first time guests Laura Crone, who's the vice president of sales and marketing group in NSG sales and marketing at Intel. Laura, thanks so much for joining us, All right, So since Katie has been our program, let let's start with you. You know, we know, you know. We've watched, you know, Cisco UCS and that compute, you know, since it rolled out for about a decade ago. Now on DH, you know Intel always up on stage with Cisco talking about the latest enhancements everywhere I go this year, people are talking about obtained and how technologies like envy me are baking in tow. The environment storage class memories, you know, coming there. So you know, let's start with kind of intel. What's happening in your world and you know your activities. Francisco live >> great. So I'm glad to hear you've heard a lot about octane because I have some marketing of my organization. So obtain is the first new memory architecture er in over 25 years. And it is different than Nanda, right? It is you, Khun, right? Data to the silicon that is programs faster and has greater endurance. So when you think of obtain its fast like D ram But it's persistent, like nay on three D now. And it has some industry leading combinations of capabilities such a cz high throughput, high endurance, high quality of service and low latent see. And for a storage device, what could be better than having fast performance and hi consistency. Oh, >> Laura's you say? Yeah, but 25 years since this move. You know, I remember when I when I started working with Dave, it was, you know, how do we get out of you know, the horrible, scuzzy stack is what we had lived on for decades there. And finally, Now it feels like we're coming through the clearing and there is just going to be wave after wave of new technologies that air free to get us high performance low latent c on the like. >> Yeah, And I think the other big part of that which is part of Cisco's hyper flex all in Vienna, is the envy me standards. So, you know, we've lived in a world of legacy satya controllers, which created a lot of bottlenecks and the performance Now that the industry is moving toe envy me, that even opens up it. Mohr And so, as we were developing, obtain, we knew we had Teo go move the industry to a new protocol. Otherwise, that pairing was not going to be very successful. >> Alright, so Katie all envy me, tell more. >> So we come here and we talk about all the cool innovations we do within the company. And then sometimes you come here and we talk about all the cool innovation we do with our partners, our technology partner, that intel being a fantastic technology partner, obviously being the server business, you've got a partner with intel on. We've really going away that across the walls ofthe two organizations to bring, uh, just do to life, right? So Cisco 80 I hyper flex is one of the products >> we >> talked about in the past. Hyper Flex, all in Miami that uses Intel's obtain technology is, well, it's Intel's three demand all envy me devices to power really the fastest workloads that customers want to put on this device. So you talked about free envy me. Pricing is getting to a point where it becomes that much more accessible to youth, ese for powering databases for par like those those work clothes required that leyton see characteristics and acquire those I ops on DH. That's what we've enabled with Cisco Hyper Flex collaborating with Intel of Envy Me portfolio. >> Remember when I started in the business, somebody was sharing with me to educate me on the head? A pyramid? Think of the period is a storage hierarchy. And at the top of it, was it actually an Intel solid state device, which back then was not It was volatile, right? So you had to put, you know, backup power supplies on it. Uh, so but any rate and then with all this memory architecture coming and flash towards people have been saying, well, it's going to flatten that pyramid. But now, with obtain. You're seeing the reemergence of that periods of that pyramid. So help us understand, sort of where it fits from a supplier standpoint and a no yam and ultimate customer. Because if I understand it, so obtain is faster than NAND, but it's going to be more expensive, but it's slower than D Ram, but it's cheaper, right? So where does it fit? What, the use cases? Where does it fit in that hierarchy? Maybe. >> Yeah. So if you think about the hierarchy at the very top is D RAM, which is going to be your fastest lowest Leighton see product. But right below that is obtained. Persistent memory, the dims and you get greater density because that's one of the challenges with the Ram is they're not dense enough, nor are they affordable enough, right? And so you get that creates a new tear in the store tire curry. Go below that and you have obtain assist ease, which bring even mohr density. So we go up to a 1.5 terabyte in a obtain sst, uh, and you that now get performance for your storage and memory expansion. Then you have three Dean and and then even below that, you have three thing and Q l c, which gives you cost effective, high density capacity. And then below that is the old fashioned hard disk drive. And then magnet. Yeah, you start inserting all these tears that give architects and both hardware and software an opportunity. Teo rethink how they wantto do storage. >> So the demand for this granularity obviously coming from your your buyers, your direct bars and your customers. So what does it do for you and specifically your customers? >> Yeah. So the name of the game is performance and the ability to have in a land where things are not very predictable, the ability to support any thing that the your end customers may throw at you if you're a 90 department. That may mean a bur internal of, uh, data scientist team are traditional architect off a traditional application. Now, what Intel and Cisco can do together is truly unique because we control all parts of the stack, everything from the sober itself to the to the storage devices to the distributed file system that sits on top ofit. So, for example, in Etienne, hyper flecks were using obtain as a cashing here on because we write the distributed file system. We can speak in a balance between what we put in the cash in care how it moved out data to the non cashing 3 90 year, as as Intel came out with their latest processors that support memory class torched last memory. We support that now we can engineer this whole system and to end so that we can deliver to customers the innovation that Intel is bringing to the table in a way that's consumable by their, uh, one more thing I'll throw out there. So technology is great, but it needs to be resilient because I D departments will occasionally yank out the wrong wire. They are barely yank out the wrong drive. One of the things that we work together with Intel What? How do we court rise into this? How to be with reliability, availability, serviceability? How do we prevent against accidental removal or accidental insertion on DH? Some of those go innovations have let Teo asked, getting out in the market a hyper flecked system that uses these technologies in a way that's really usable by teens in our customs. I'd >> love to double click on that in the context of envy. Envy? What you guys were talking about, You mentioned horrible storage deck. I think he called it the horrible, scuzzy stack. And Laura, you were talking about the You know, the cheap and deep now is a spinning disk. So my understanding is that you've got a lot of overhead in the traditional scuzzy protocol, but nobody ever noticed because you had this mechanical device. Now, with flash storage, it all becomes exposed. And VM e allows just a like a bat phone. Right? Okay, so correct me where I got that wrong, But maybe you could give us the perspective. You know what? Why Envy Emmy is important from your standpoint. And how are you guys using it? >> Yeah, I think envy and me is just a much faster protocol. And you're absolutely right. We have a graph that we show of the old world and how much overhead there is all the way down to when you have obtained in a dim solution with no overhead octane assist. E still has a tiny bit, but there's a graph that shows all of that Leyton C is removed when you deploy, obtain so envy me gives you much greater band with right. The CPU is not bottlenecked, and you get greater CPU efficiency when you have a faster interface like and >> and like hyper flexes taking advantage of this house. Oh, >> yeah? Let me give you a couple of examples. So anything performance, the first thing that comes to mind is databases. So for those kinds of workloads, this system gets about 25% better performance. Next thing that comes to mind is people really don't know what they're gonna put on the system. So sometimes they put databases, sometimes put mixed workloads. So when we look at mixed workloads way get about 65% or so better I ops, we get 37% better lately sees. So even in a mixed I opened Wyman wherever have databases you may have a Web theory may have other things. This thing is definite resilient to handle the workload. So it's it just opens up the splatter abuse cases. >> So any other questions I had was specific to obtain. D ram has consumer applications, as does Flash Anand was obtained. Have similar consumer applications can achieve that volume so that the prices, you can come down, not free, but continue to sort of drive the curves. >> Eso When we look at the overall tam, we see the tam growing out over time. I don't know exactly when it crosses. Over the volume are the bits of the ram, but we absolutely see it growing over time. And as a technology ramps, it'll have a you know, it costs ramping curves. Well, >> it'll follow that curve. Okay, good. >> Yeah, Just Katie. Give us a little bit. Broad view of hyper flex here. Att? The show, people, you know, play any labs with the brand new obtained pieces or what? What other highlights that you and the team have this week? >> Yeah, absolutely. So in in Barcelona, we talked about high, perfect for all that is live today. So in the show floor, people can look at the hyper flex at the edge combined with S t one. How do you control How did deploy thousands of edge locations from a centralized location to the part of the inner side which cloud based management too? So that whole experience is unable. Now, at the other end of the spectrum is how do we drive even more performance. So we were always, always the performance leader. Now we're comparing ourselves to ourselves to behavior 35% better than our previous all flash. With the innovation Intel is bringing to the table, some of the other pieces are actually use cases. So there's a big hospital chain where my kids go toe goto, get treated and look and see the doctor. There are lots of medical use cases which require epic the medical software company to power it, whether it is the end terminals or it is the back and database. So that epic hyperspace and happy cachet those have been out be invalidated on hyper flex, using the technology that we just talked about around update on doll in via me that can get me there is that much more power. That means that when my my doctor and the nurse pulls off, the records don't show up fast. But all the medical records, all of those other high performance seeking applications also run that much more streamlined, so I would encourage people little water solution. We've got a tremendous set off demos out there to go up there and check us out >> and there's a great white paper out on this, right? That e g s >> e g is made one of the a company that I've seen benchmarking Ah, a hyper flex. >> So whatever Elaborate where they do a lab report or >> it's what they do is they bench around different hyper converge infrastructure vendors. So they did this first time around and they and they said, Well, we could pack that much more We EMS on a on a hyper flex with rotating drives. And then they did it again And I said, Well, now that you got all flash Well, deacon, you got now the performance and the ladies see leadership and then they did it again and they said, Well, hang on, you you've kind of left the competition that does that. That's not going to make a pretty chart to show when we compare your all in Miami against your hyper so many. When you get that good, you compare against yourselves. We've been the performance theater on the estate has been doing the >> data obtained. The next generation added up, >> and this is what a database workload. OK, nowyou bringing obtain a little toast to the latest report >> has that measures >> measures obtain against are all flash report and then also ship or measure across vendors. So >> where can I get this? Is at some party or website or >> it's off all of this. All of this is off off the Cisco Hyper Flex website on artist go dot com. But F is the companies that want to go directly to their about getting a more >> I guess final final question for you is you know, I think back the early is ucs. It was the memory enhancements that they had that allowed the dentist virtual ization in the industry back when it started. It sounds like we're just taking that to the next level with this next generation of solutions. What what else would you out about? The relationship with Cisco and Intel? >> Eso, Intel and Cisco worked together for years right innovation around the CPU and the platform, and it's super exciting to be expanding our relationship to storage. And I'm even more excited that the Cisco hyper flex solution is endorsing Intel obtain and three thing and and we're seeing great examples of really use workloads where are in customers can benefit from this technology. >> Katie Laura. Thanks so much for the update. Congratulations on the progress that you've made so far for David Dante on Student, and we'll be back with more coverage here. It's just go live 2019 in San Diego. Thanks for watching the cue >> theme.

>> Announcer: From the Fairmont Hotel in the heart of Silicon Valley, it's The Cube. Covering when IOT met AI, the intelligence of things. Brought to you by Western Digital. >> Hey, welcome back everybody. Jeff Rick here with The Cube. We're in downtown San Jose at the Fairmont Hotel at a little show called when IOT Met AI, the Intelligence of Things. Talking about big data, IOT, AI and how those things are all coming together with virtual reality, artificial intelligence, augmented reality, all the fun buzz words, but this is where it's actually happening and we're real excited to have a pioneer in this space. He's Jack McCauley. He was a co-founder at Occulus VR, now spending his time at UC Berkeley as an innovator in residence. Jack welcome. >> Thank you. >> So you've been watching this thing evolve, obviously Occulus, way out front in kind of the VR space and I think augmented a reality in some ways is even more exciting than just kind of pure virtual reality. >> Right. >> So what do you think as you see this thing develop from the early days when you first sat down and started putting this all together? >> Well, I come from a gaming background. That's what I did for 30 years. I worked in video game development, particularly in hardware and things, console hardware. >> That's right, you did the Guitar Hero. >> Guitar Hero. Yeah, that's right. >> We got that one at home. >> I built their guitars and designed and built their guitars for Activision. And when were part of Red Octane, which is a studio. I primarily worked in the studio, not the headquarters, but I did some of the IP work with them too, so, to your question, you know when you produce a product and put it on the market, you never really know how it's going to do. >> Jeff: Right. >> So we make, we made two developer kits, put them out there and they exceeded our expectations and that was very good. It means that there is a market for VR, there is. We produce a consumer version and sales are not what we expected for that particular product. That was designated towards PC gamers and hopefully console games. But what has done well is the mobile stuff has exceeded everyone's mildest expectations. I heard numbers, Gear VR, which is Occulus designed product for me, sold 7 million of those. That's a smash hit. Now, worldwide for phone mounted VR goggles, it's about 20 million and that's just in two years, so that's really intriguing. So, what has happened is it's shifted away from an expensive PC based rig with $700 or whatever it costs, plus $1,500 for the computer to something that costs $50 and you just stick your cell phone in it and that's what people, it doesn't give you the best experience, but that's what has sold and so if I were doing a start-up right now, I would not be working on PC stuff, I'd be working on mobile stuff. >> Jeff: Right. >> And the next thing I think, which will play out of this is, and I think you mentioned it prior to the interview, is the 360 cameras and Google has announced a camera that they're going to come out and it's for their VR 180 initiative, which allows you to see 180 video in stereo with a cell phone strapped to your face. And that's very intriguing. There's a couple of companies out there working on similar products. Lucid Cam, which is a start-up company here has a 180 camera that's very, very good and they have one coming out that's in 4K. They just launched their product. So to answer your question, it looks like what is going to happen is for VR, is that it's a cell phone strapped to your face and a camera somewhere else that you can view and experience. A concert. Imagine taking it to a sporting event where 5,000 people can view your video, 10,000 from your seat. That's very intriguing. >> Yeah, it's interesting I had my first kind of experience just not even 360 or live view, but I did a periscope from the YouTube concert here at Levi Stadium a couple of months ago, just to try it out, I'd never really done it and it was fascinating to watch the engagement of people on that application who had either seen them the prior week in Seattle or were anticipating them coming to the Rose Bowl, I think, you know, within a couple of days, and to have an interaction just based on my little, you know, mobile phone, I was able to find a rail so I had a pretty steady vantage point, but it was a fascinating, different way to experience media, as well as engagement, as well as kind of a crowd interaction beyond the people that happened to be kind of standing in a circle. >> You, what's intriguing about VR 180 is that anybody can film the concert and put the video on YouTube or stream it through their phone. And formerly it would require a $10,000 camera, a stereo camera set up professionally, but can you imagine though that a crowd, you know, sourced sort of thing where the media is sourced by the crowd and anyone can watch it with a mobile phone. That's what's happening, I think, and with Google's announcement, it even that reinforces my opinion anyways that that is where the market will be. It's live events, sporting events. >> Right, it's an experience, right? It all comes back to kind of experience. People are so much more experience drive these days than I think thing driven from everything from buying cars versus taking a new Uber and seeing it over and over and over again. People want the experience, but not necessarily, as the CEO of Zura said, the straps and straddles of ownership, let me have the fun, I don't necessarily want to own it. But I think the other thing that gets less talked about, get your opinion, is really the kind of combination of virtual reality plus the real world, augmented reality. We see the industrial internet of things all the time where, you know, you go take a walk on that factory before you put your goggles on and not only do you see what you see that's actually in front of you, but now you can start to see, it's almost like a heads up display, certain characteristics of the machinery and this and that are now driven from the database side back into the goggles, but now the richness of your observation has completely changed. >> Yes, and in some ways when you think of what Google did with Google Glass, not as well as we had liked. >> But for a first attempt. >> Yeah. They're way ahead of their time and there will come a time when, you know, Snap has their specs, right? Have you seen those? It's not augmented reality, but, there will come a time when you can probably have a manacle on your face and see the kinds of things you need to see if your driving a car for instance that, I mean, a heads up display or a projector projecting right into your retina. So, and, so I think that's the main thing for augmented reality. Will people, I mean, your Pokemon Go, that's kind of a AR game in a way. You look through your cell phone and the character stays fixed on the table or wherever you're looking for it. I mean that uses a mobile device to do that and I can imagine other applications that use a mobile device to do that and I'm aware of people working on things like that right now. >> So do you think that the breakthrough on the mobile versus the PC-based system was just good enough? In being able to just experience that so easily, you know, I mean, Google gave out hundreds and hundreds of thousands of the cardboard boxes, so wow. >> Yeah. Well, it didn't mean that Gear VR didn't move into the market, it did. You know, it did anyways, but to answer your question about AR, you know, I think that, you know, without having good locals, I mean the problem with wearing the Google Glass and the Google cardboard and Gear VR is it kind of makes you sick a little bit and nobody's working on the localization part. Like how to get rid of the nausea effect. I watched a video that was filmed with Lucid Cam at the Pride Parade in San Francisco and I put it on and somebody was moving with the crowd and I just felt nauseous, so that problem probably probably is one I would attempt to attack if I were going to build a company or something like that right now. >> But I wonder too, how much of that is kind of getting used to the format because people when they first put them on for sure, there's like, ah, but you know, if you settle in a little bit and our eyes are pretty forgiving, you get used to things pretty quickly. Your mind can get accustomed to it to a certain degree, but even I get nauseous and I don't get nauseous very easily. >> Okay, so you're title should just be tinkerer. I looked at your Twitter handle. You're building all kinds of fun stuff in your not a garage, but your big giant lab and you're working at Berkeley. What are some of the things that you can share that you see coming down the road that people aren't necessary thinking about that's going to take some of these technologies to the next level. >> I got one for you. So you've heard of autonomous vehicles, right? >> Jeff: Yep, yep. >> And you've heard of Hollow Lens, right. Hollow Lens is an augmented reality device you put on your had and it's got built in localization and it creates what's, it's uses what's know as SLAM or S-L-A-M to build a mesh of the world around you. And with that mesh, the next guy that comes into that virtual world that you mapped will be away ahead. In other words, the map will already exists and he'll modify upon that and the mesh always gets updated. Can you imagine getting that into a self-driving vehicle just for safety's sake, mapping out the road ahead of you, the vehicle ahead of you has already mapped the road for you and you're adding to the mesh and adjusting the mesh, so I think that that's, you know, as far as Hollow Lens is concerned and their localization system, that's going to be really relevant to self-driving cars. Now whether or not it'll be Microsoft's SLAM or somebody else's, I think that that's probably the best, that's the good thing that came out of Hollow Lens and that will bleed into the self-driving car market. It's a big data crunching number and in Jobs, he was actually looking at this a long time ago, like what can we do with self-driving vehicles and I think he had banned the idea because he realized he had a huge computing and data problem. That was 10 years ago. Things have changed. But I think that that's the thing that will possibly come out of, you know, this AR stuff is that localization is just going to be transported to other areas of technology and self-driving cars and so forth. >> I just love autonomous vehicles because everything gets distilled and applied into that application, which is a great application for people to see and understand it's so tangible. >> Yeah, it may change the way we think about cars and we may just not ever own a car. >> I think absolutely. The car industry, it's ownership, it's usage, it's frequency of usage, how they're used. It's not a steel cage anymore for safety as the crash rates go down significantly. I think there's a lot of changes. >> Yeah, you buy a car and it sits for 20 hours a day. >> Right. >> Unutilized. >> All right. Well, Jack I hope maybe I get a chance to come out and check out your lab one time because you're making all kinds of cool stuff. When's that car going to be done? >> I took it upon myself to remodel a house the same time I was doing that, but the car is moving ahead. In September I think I can get it started. Get the engine running and get the power train up and running. Right now I'm working on the electronics and we have an interesting feature on that car that we're going to do an announcement on later. >> Okay, we'll look out for that. We'll keep watching the Twitter. All right, thanks for taking a few minutes. All right, let's check with Cauley. I'm Jeff Rick. You're watching The Cube from When IOT Met AI, the Intelligence of Things in San Jose. We'll be right back after this short break. Thanks for watching. (technological jingle)

>> Narrator: Live from Austin, Texas, it's The Cube covering South by Southwest 2017, brought to you by Intel. Now, here's John Furrier. >> Hey, welcome everyone back for day two of live coverage of South by Southwest. This is the cube, our flagship program from Silicon Angle. We go out to the events and extract the (mumbles). We're at the Intel AI Lounge, people are rolling in, it's an amazing vibe here, South by Southwest. The themes are AI, virtual reality, augmented reality, technology. They got great booths here, free beers, free drinks, and of course great sessions and great conversations here with the Cube. My first guest of the day here is Ben Parr, a friend of the Cube. He's been an entrepreneur, he's been a social media maven, he's been a journalist, all around great guy. Ben, thanks for joining us today. >> Thank you for having me again. >> So you're a veteran with South by Southwest, you know the social scene, you've seen the evolution from Web 2.0 all the way to today, had Scobel on yesterday, Brian Fanzo, really the vibe is all about that next level, of social to connecting and you got a startup you're working on that you founded, co-founded called AI? >> Ben: Octane AI. >> Octane AI, that's in the heart of this new social fabric that's developing. Where AI is starting to do stuff, keep learning, analytics but, ultimately, it's just a connection. Talk about your company. What is Octane AI? Tell us a little bit about the company. >> So Octane AI is a platform that lets you build an audience on Facebook Messenger and then through a bot. And so, what we do is allow you to create a presence on Messenger because if I told you there was a social app that had a billion users every month, bigger than Snapchat plus Twitter plus Instagram combined you'd want to figure out a strategy for how to engage with those people right? And that social app is Facebook Messenger. And yet no one ever thinks, oh could I build an audience on a messaging app? Could I build an audience on Messenger or WeChat or any of the others. But you can through a bot. And you can not just build an audience but you can create really engaging content through conversation. So what we've done is, we've made it really easy to make a bot on messenger but more importantly, a real reason for people to, actually, come to your bot and engage with it and make it really easy to create content for it. In the same way you create content for a blog or create content for YouTube Channel. Maroon 5, Aerosmith, KISS, Lindsay Lohan, 30 seconds to MARS, Jason Derulo and a whole bunch more use us to build an audience and engage their fans on Messenger. >> So let me get your thoughts on a couple of trends around this. Cause this is really kind of, to me, a key part that chat bots illustrate the big trends that are going on. Chat bots were the hype. People were talking about, oh chat bots. It's a good mental model for people to see AI but it also has been, kind of, I won't say a pest, if you will, for users. It's been like a notification. A notification of the economy we're living in. Now you're taking it to the next level. This is what we're seeing. The deep learnings and the analytics around turning notifications which can be noisy after a while, into real content and connections. >> Into something useful, absolutely. Like look, the last year of bots. The Facebook platform is not even a year old. We've been in that fart apps stage of bots. Remember the first year of mobile apps? You had the fart app and that made $50,000 a day and that was annoying as hell. We're at that stage now, the experimentation stage. And we've seen different companies going in different, really cool directions. Our direction is, how do you create compelling content so you're not spamming people but you have content that you can share, not just in your bot but as a link on your social media to your followers, to your fans, on Twitter, everywhere else and have a scalable conversation about whatever you want. Maroon 5 has conversations with their audience about their upcoming tours or they even released an exclusive preview of their new song, Cold, through our bots. You could do almost anything with our bots or with any bot. We're just learning right now, as an industry, what are the best practices. >> So where do bots go for the next level? Because you and I have known each other for almost over 10 years, we've seen the whole movement and now we're living in a fake news era. But social media is evolving where content now is super important that glues people together, communities together. In a way, you're taking AI or bots, if you will. Which is a first, I mean, .5 version of where AI is going. Where content, now, is being blended into notifications. How important is content in community? >> Content in community are essential to any product. And I feel like when you hear the word bot, you don't think community and that you could build a community with it because it's a bot, it's supposed to be automated. But you, actually, can if you do it in the right way and it can be a very, very powerful experience. We're building features that allow you to build more community in your bot and have people who are talking with your bot communicate with each other. There's a lot of that. What I feel like is, we're at the zero point one or zero point two of the long scale of AI. What we need to do right now is showcase all the use cases that really work for AI, bots, machine learning. Over time, we will be adding more other great technologies from Intel and others that will make all these technologies and everything we do better, more social and most of all, more personalized. I think that's one of the big benefits of AI. >> Do you see bot technology or what bots can turn into being embedded into things like autonomous vehicles, AR, is there a stack developing, if you will, around bots? What you're talking about is a progression of bots. What's your vision on where this goes down the road? >> I see a bunch of companies, now, building the technological stack for AI. I see a bunch of companies building the consumer interface, bots is one of those consumer interfaces. Not just chat bots but voice bots. And then I see another layer that's more enterprise that's helping make more efficient things like recruiting or all sorts of automation or driving. That are being built as well. But you need each of those stacks to work really well to make this all work. >> So are there bots here at South by Southwest? Is there a bot explosion, is there bots that tell you where the best parties are? What's the scene here at Southby? Where are the bots and if there were bots, what would they be doing to help people figure out what to do? >> The Southby bot is, actually, not a bad bot. They launched their bot just before South by Southwest. It has a good party recommendations and things. But it the standard bot. I feel like what we're seeing is the best use, there's a lot of good bot people. What I'm seeing right now is that people are still flushing out the best use cases for their bots. There's no bot yet that can predict all the parties you want to go to. We got to have our expectations set. That will happen but we're still a few years away from really deep AI bots. But there are clearly ones where you can communicate faster with your friends. There's clearly ones that help you connect with your favorite artist. There's clearly ones that help you build an audience and communicate at scale. And I feel like the next step is the usefulness. >> Talk about the user interface. Robert Scobel and I were talking yesterday, we have some guests coming on today that had user experience background. With AI, with virtual reality, with bots, with deep learning, all this collective intelligence going on, what's your vision of the user interface as it changes, as people's expectations? What are some of those things that you might see developing pretty quickly as deep learning, analytics, more data stats come online? What is the user interface? Cause bots will intersect with that as an assistant or a value add for the user. What's your vision on? >> I'll tell you what I see in the near term and then I'll tell you a really crazy idea of how I see the long term. In the near term, I think what you're going to see is bots have become more predictive. That, based on your conversations, are more personalized and maybe not a necessarily need as much input from you to be really intelligent. And so voice, text, standard interfaces that we're used to. I think the bigger, longer run is neurological. Is the ability to interface without having to speak. Is AI as a companion to help us in everything we do. I feel like, in 30 years, we won't even, it's, kind of like, do your remember the world when it had no internet? It's hard, it feels so much different. There will be a point in about 20 years we will not understand what the world was before AI. Before AI assistance where assisting us mentally, automatically and through every interface. And so good AI's, in the long run, don't just run on one bot or one thing, they follow you wherever you go. Right now it might be on your phone. When you get home, it may be on your home, it may be in your car but it should be the same sets of AI's that you use daily. >> Doctor Nevine Rou, yesterday, called the AI the bulldozer for data. What bulldozers where in the real world, AI's going to do that for data. Cause you want to service more data and make things more usable for users. >> Yes, the data really helps AI become more personalized and that's a really big benefit to the user to every individual. The more personalized the experience, the less you have to do. >> Alright, so what's the most amazing thing you've seen so far this year at Southby? What's going on out there that's pretty amazing? That's popping out of the wood work? In terms of either trend, content, product, demos, what are some of the cool things you're seeing. >> So, as it is only Saturday, I feel like the coolest thing will still come to me. But outside of AI, there have been some really cool mixed reality, augmented reality demos. I can't remember the name. There's a product with butterflies flying around me. All sorts of really breaking edge technologies that, really, create another new interface honestly where AI may interact with us through the augmented reality of our world. I mean, that's Robert Scogul's thing exactly. But there's a lot of really cool things that are being built on that front. I think those are the obvious, coolest ones. I'm curious to see which ones are going to be the big winners. >> Okay, so I want to ask you a personal question. So you were doing some venture investing around AI and some other things. What caused you to put that pause button on that mission to start the chat bot AI company? >> So I was an investor for a couple of years. I invested in ubean, the wireless electricity company and Shots with Justin Bieber which is always fun. And I love investing and I love working with companies. But I got into Silicone Valley and I got into startups because I wanted to build companies. I wanted to build ideas. This happened, in part, because of my co-founders. My co-founder Matt, who is the first head of product at Ustream and twice into the Forbes 30 under 30. One of the king makers of the bot industry. The opportunity to be a part of building the future of AI was irresistible to me. I needed to be a part of that. >> Okay, can you tell any stories about Justin Bieber for us, while we're here inside the Cube? (laughs) >> I wonder how many of those I can, actually, tell? Okay, so look. Justin Bieber is an investor in a company I'm an investor in called Shots. Which is now a super studio that represents everyone from Lele Pons to Mike Tyson on digital online and they're doing really, really well. One of Justin's best friends is the founder, John Shahidi. And so it's just really random. Sitting with John, who I invested in and just getting random FaceTime's. Be like, oh it's Justin Bieber, say hi to Justin. As if it was nothing. As if it was a normal, it's a normal day in his life. >> Could you just have him retweet one of my Tweets. He's got like a zillion followers. What's his follower count at now? >> You don't want that. He's done that to me before. When Justin retweets you or even John retweets you, thousands of not tens of thousands of Justin Bieber fans, bots and not bots, start messaging you, asking you to follow them, talking to you all the time. I still get the tweets all the time from all the Justin fans. >> Okay don't tweet me then. I'm nice and happy with 21,000 followers. Alright, so next level for you in terms of this venture. Obviously, they got some rock stars in there. What's the next step for you guys right now? Give us a little inside baseball in the venture status where you guys are at. What's the next step? >> We launched the company publicly in November, we started in May. We raised 1.6 million from general catalyst, from Sherpa Ventures, a couple of others. When we launched our new feature, Convos, which allows you to create shareable bots, shareable conversations with the way you share blog posts. And that came out with all those launch partners I mentioned before like Maroon 5. We're working on perfecting the experience and, mostly, trying to make a really, really compelling experience with the user with bots because if we can't do that, then there's no use to doing anything. >> So you provide the octane for the explosive conversations? (laughs) >> Yes, there you go, thank you, thank you. And we make it really easy. So we're just trying to make it easier to do this. This is a product that your mom could use, that an artist could use, any social media team could use. Writing a convo is like writing a blog post on media. >> Are moms really getting the chat bot scene? I, honestly, get the Hollywood. I'm going to go back to Hollywood in a second but being a general, middle America kind of tech/genre, what are they like? Are they grokking the whole bot thing? What's the feedback from middle America tech? >> But think of it this way. There are a billion people on Messenger and it's a, really, part of the question, they all use Facebook Messenger. And so, they may be communicating with a bot without knowing it. Or they might want to communicate with their fans. It's not about the technology as much as this is like connecting with who you really care about. If I really care about a Maroon 5 or Rachel Ray, I can now have that option. And it doesn't really matter what the technology is as much as it is that personal connection, that experience is good. >> John: Is it one-one-one or group? Cause it sounds like it's town hall, perfect for a town hall situation. >> It's one-on-one, it's scale. So you could have a conversation with a bot while each of the audience members is having a conversation one-on-one. When you can choose different options and it could be a different conversation for each person. >> Alright, so I got to ask about the Hollywood scene. You mentioned Justin Bieber. I wanted to go down that because Hollywood really has adopted social media pretty heavily because they can go direct to the audience. We're seeing that. Obviously, with the election, Trump was on Twitter. He bypasses all the press but Hollywood has done very well with social. How are they using the bots? They are a tell sign of where it's going. Can you share some antidotal stories or data around how Maroon 5, Justin, these guys are leveraging this and what's some of the impact? >> Sure, so about a month 1/2, 2 months before Maroon 5 launched their new song, new single, Cold. They came to us and wanted to build a distribution. They wanted to reach their audience in a more direct personal way. And so we helped them make a bot. It didn't take long. We helped them write convos. And so what they did was they wrote convos about things like exclusive behind the scenes photos from their recent tour or their top moments of 2016 or things that their fans really care about. And they shared em. They got a URL just like you would get, a blog poster URL. They shared it out with their 39 million Facebook fans, they shared it with their Twitter followers, they shared it across their social media. And 10's of thousand's of people started talking with their bot each time they did this. About 24 hours before the bot, before their new single release, they exclusively released a 10 second clip of Cold through their bot. And when they did that, within 24 hours, the size of their bot doubled because it went viral within the Maroon 5 community. There's a share function in our convos and people shared the convo with their friends and with their friends friends and it kept on spreading. We saw this viral graph happen. And the next day when they released the single, 1000's of people bought the song because of the bot alone. And now the bot is a core of their social strategy. They share a convo every single week and it's not just them but now Lohan and a whole bunch of others are doing the same thing. >> John: Lindsay Lohan. >> Lindsay Lohan is one of our most popular bots. Her fans are really dedicated. >> And so you can almost see it's, almost connecting with CGI, looking at what CGI's doing in film making. You could almost have a CGI component built-in. So it's all this stuff coming together. >> Ben: Multimedia matters. >> So what do you think about the Intel booth here? The AI experience? They got some Kinetic photo experience, amazing non-profit activities in deep loading (mumbles), missing children, what do you think? >> This is some of the best use cases for AI which is, people think of AI as just like the direct consumer interface which is what we do but AI is an underlying layer to everything we do. And if it can help even 1% or 1,000% identify and find missing children or increase the efficiency of our technology stacks so that we save energy. Or we figure out new ways to save energy. This is where AI can really make an impact. It is just a fundamental layer of everything. In the same way the internet is just a fundamental layer of everything. So I've seen some very cool things here. >> Alright, Ben Parr, great guest, in venture capitalist now founder of a great company Octane AI. High octane, explosive conversations looking forward to adopting. We're going to, definitely, take advantage of the chat bot and maybe we can get some back stage passes to Maroon 5. (laughs) >> (laughs) There will be some fun times in the future, I know it. >> Alright Ben Parr. >> Ben: Justin Bieber. >> Justin Bieber inside the Cube right here and Ben Parr. Thanks for watching. It's the Intel AI Lounge. A lot of great stuff. A lot of great people here. Thanks for joining us. Our next guest will be up after this short break. (lively music)