>>Hey everyone, welcome back. It's the Cube live in Las Vegas. We've been here since Monday covering the event wall to coverage on the cube at AWS Reinvent 22, Lisa Martin here with Dave Ante. Dave, we're hearing consistently north of 50,000 people here. I'm hearing close to 300,000 online. People are back. They are ready to hear from AWS and its ecosystem. Yeah, >>I think 55 is the number I'm hearing. I've been using 50 for 2019, but somebody the other day told me, no, no, it was way more than that. Right, right. Well this feels bigger in >>2019. It does feel bigger. It does feel bigger. And we've had such great conversations as you know, because you've been watching the Cube since Monday night. We're pleased to welcome from Sumo Logic. Lynn Doherty, the president of Worldwide Field Operations. Lynn, welcome to the program. >>Thank you for having me. I'm glad to be here. Talk >>To us about what's going on at Sumo Logic. We cover them. We've been following them for a long time, but what's what's new? >>We have a lot going on at Sumo Logic. What we do is provide solutions for both observability and security. And if you think about the challenges that our customers are facing today, everybody as they're doing this digital transformation is in a situation where the data and the digital exhausts that they have is growing faster than their budgets and especially in what looks like potentially uncertain economic times. And so what we do is enable them to bring that together on a platform so that they can solve both of those problems in a really cost effective way. >>What are some of the things that you're hearing from customers in the field where it relates to Sumo logic and aws? What are they asking for? >>They continue to ask for security and, and I think as everybody goes on that journey of digital transformation and, and I think what's going on now is that there are people who are kind of in wave two of that digital transformation, but security continues to be top of mind. And again, as as our customers are moving into potentially uncertain economic times and they're saying, Hey, I've gotta shore up and, and maybe do smarter things with my budget, cybersecurity is one piece of that that is not falling off the table. That their requirements around security, around audits, around compliance don't go away regardless of what else happens. >>How do you fit in the cloud ecosystem generally? AWS specifically? I think AWS is generally perceived as a more friendly environment for the ecosystem partners. We saw CrowdStrike yesterday, you know, stock got crushed. They had a great quarter, but not as great as they thought it could be. Yeah. And one, some of the analysts were saying, well, it could be Microsoft competition at the low end of the market. Okay. AWS is like the ecosystem partners are really strong in security, lot of places to add value. Where does Sumo Logic >>Fit? Yeah, we are all in with aws. So AWS is our platform of choice. It's the platform that we're built on. It's the only platform that we use. And so we work incredibly closely with aws. In fact, last year we were the first ever AWS ISV partner of the year for as Sumo Logic, which we're not as big as some of the other players, but it just is a testament to the partnership that we have with aws. >>When you're out in the field talking with customers, we talked about some of the challenges there, but where are your customer conversations? You talked about security and cyber as is not falling off the table. In fact, it's, it's rising up the stock, it's a board level conversation. So where are the customer conversations that you're having? Are they, are they at the developer level? Are they higher? Are they at the C-suite? What does that look like? >>Yeah, it's, it's actually at both the developer and the C-suite. And so there's really two motions. The first is around developers and practitioners and people that run security operation centers. And they need tools that are easy to use that integrate in their environment. And so we absolutely work with them as a starting point because if, if they aren't happy with the tools that they have, you know, the customer can't go on that digital transformation, can't have effective application usage. But we also need to talk to C-Suite and that to CIO or a CISO who's really thinking often more broadly about how do we do things as a platform and how do we consolidate some of our tools to rationalize what we're using and really make the most of the budget that we have. And so we come at it from both angles. We call it selling above the line and below the line because both of those are really important people for us to work with. >>Above the line being sort of the business executives, >>Business executives and C-suite executives. And then, but below the line are the actual people who are using the product and using a day to day interacting with the tools. >>So how are those above the line and below the line conversations, you know, different? What, what are the, what are the above the line conversations? What are the sort of keywords that, you know, that resonate? Let's start there. >>Yeah, above the line, there's a lot that's around how do we make the most of the investments that we're making. And so there are no shortage of tools, right? You can look around this AWS floor and see that there are no shortage of tools and software products out there. And so above the line it's how do we make use of the budget that we have and get the most out of the investments we've made and do that in a really smart way. Often thinking about platforms and consolidating tools and, and using the tools and getting full value of what they have below the line. I think it's really how do they have really strong ease of use? How do they get the fastest time to value? Because time to value is really important when you're a practitioner, when you're developing an application, when you're migrating and modernizing an application, having tools that are easy to use and not just give you data but give you insights. And so that's what a conversation with a practitioner for us is, is taking data and turning it into insights that they can use. >>You know, and it seems like we never get rid of stuff in it, but there's a big conversation now when you talk to practitioners, okay, well you got some budget pressures, your sales cycles are elongating. What are you doing about, a lot of 'em are saying, well, we're consolidating and nowhere is that more needed probably than insecurity. So how, how are you seeing that play out in the market? Are you able to take advantage of that as Sumo? >>I think there's the old joke that says there is no ciso. Whoever says, if I just had one more tool, I'd be secure. >>And >>Nobody ever says that it's not one more tool. It's having effective tools and having tools that integrate. And so when I think of Sumo Logic in that space, it's number one, we really integrate with so many different tools out there that give, again, not just security information, but security insights. And so that becomes a really important part of the conversation. What, when you talk about tool consolidation, that's absolutely, I think something that has been a journey that a lot of our customers have been on and probably will be on for the foreseeable future. And so that's a place that we can really help because we have a platform that you can leverage our tool on the DevOps side and on the security side. And that's a conversation that we have a lot with our customers. Are >>You helping bridge those two, the security folks, the dev folks? Cause we talk about Shift left and CISO being involved now. Is Sumo Logic helping from a cultural perspective to bridge those two? >>Yeah, well I think it's a really good point that you make. It's, there's part of it that's a technology challenge and then there's part of it that's a cultural challenge and an organization silo challenge that happens. And so it is something that we try to bring our customers together and often start in one area of the business and help move into other areas and bring them together. It, it also comes down to that data growing faster than budgets and customers can no longer afford to keep multiple copies of the same data, the same metrics, and all of that digital exhaust that comes as they move to the cloud and modernize their applications. And so we bring that together and help them get the most use out of it. >>There are a lot of, we've been talking all week in the cube about sort of adjacencies to security. We've talking about data protections now becoming an adjacency. You know, you talk about resilience within an organization, everybody was sort of caught off guard, obviously with the pandemic, not as resilient as they could have been. So it seems like the scope of security is really expanding. You know, they always say it's, it's a team sport, okay, it's a pro mine, but it's true. Right? Whereas it used to be that guy's problem. Yeah. What are you seeing in terms of that evolution? >>Yeah, I think you're absolutely right. I think the pandemics force some of that faster than was happening, but it's absolutely something that is going on that cybersecurity is now built in from the ground up and I've been in cyber security for years and it's moved from an afterthought or something that comes after the fact, Hey, let's build the application and then we'll worry about security to, it needs to be a secure application from the ground up. And so that is bringing together that dev and SEC ops a lot because it needs to be built in, the security piece needs to be built in from the ground up on the development side. >>Absolutely. The, the threat landscape has changed so much in the last couple of years. Has the fraudsters, bad actors, whatever you wanna call 'em, are getting far more sophisticated. Yeah. So security can't be an afterthought. Can't be a built on. Yeah, it's gotta be integrated, built in from the ground up for organizations to be able to be, as they've said, resilient. We're hearing a lot about resiliency and the importance of it. For any business. >>For any business, it's important for every business. And if you think about how we interact with companies now, our view of a bank isn't the branch, it's the app, our view of office, it's this, right? It's, it's on the phone, it's on digital devices, it's on a website. And so that is your interaction, that is your experience. And so that plays into, is it up, is it running, is it responsive? That application performance piece, but also the security piece of is it secure? Is my data protected? You know, do I have any vulnerability? >>Yeah, you must have, being in field operations, a favorite customer story that you really think defines the value proposition beautifully of Sumo Logic. What story is that? >>Wow, that's a good question. I have a lot of favorite stories. You know, we have customers, for example, gaming customers that maybe aren't able to predict what their usage looks like. And that's something that we really help our customers with is the peaks and valleys. And so we have gaming customers or retail customers that we're able to take their data sources and they may be at one level and go to 10 x in a day without any notice. And we're able to handle that for them. And I think that's something that I'm really proud of is that we don't make that the customer's problem. They're, they're peaks and valleys, they're spikes that may happen seasonally in retail. It's Black Friday sales that are coming up. It's a new game that gets released. It's a new music piece that gets released and they are going to see that, but they don't have to worry about that because of us. And so that really makes me proud that we handle that and take that problem off of their shoulders. I >>See Pokemon on the website, that's a hugely popular >>Game, Pokemon now. Yes. >>Last question for you, we've got about 30 seconds left. If you had a billboard to put up in Denver where you live about Sumo Logic and its impact like an elevator pitch or a phrase that you think really summarizes the impact, what would it >>Say? Yeah, well it's a really good question. I've got it on my shirt. I dunno, it's not for the G-rated, but we fix things faster. Fix shit faster. And so for us that's really, ultimately, it's not just about having information, it's not just about having the data, it's about being able to resolve your problems quickly. And whether that's an application or a security issue, we've gotta be able to fix it faster for our customers and that's what we enable them to do. >>Fix bleep faster. Lynn, it's been a pleasure having you on the program. Thank you so much. Thank you for joining us. Awesome step at Sumo Logic. For our guest and for Dave Ante. I'm Lisa Martin. You're watching The Cube Live from Las Vegas, the leader in live enterprise and emerging tech coverage.

(upbeat music) >> Welcome back to Supercloud 22. I'm John Furrier, your host of "The Cube." We're here for a live performance in studio bringing all the thought leaders around this concept of Supercloud, which is a consortium of the smartest people in the industry, the the Cloudaratti some say, or just people in the field building out next generation Cloud technologies for businesses, for the industry, you know, software meets infrastructure at scale and platforms. All great stuff. We have an expert here, Cube alumni and friend of ours, Howie Xu, VP of machine learning and AI at Zscaler, hugely successful company, platform, whatever you want to call it. They're definitely super clouding in their own. Howie, great to see you. Thanks for spending time with us to unpack and grock the direction of the industry that we see. We call it Supercloud. >> Hey, John, great to be back. I'm expecting a nice very educational and interesting conversation here again. >> Yeah, well, you know, one of the things I love talking with you about is you're deep on the technology side, as well as you got the historian view like we do. We've seen the movies before, we've seen the patterns, and now we're seeing structural change that has happened, that's cloud. Thank you very much, AWS. And as your GCP and others. Now we're seeing structural change happening in real time and we want to talk about it as it's happening. This is the purpose of this event. And that is that Cloud is one. Okay, great Cloud operations, on premises and Edge are emerging. Software is open source. It's the perfect storm for innovation and new things are emerging. You're seeing companies like Snowflake, and Databricks, and Zscaler all building great products. But now it's not one thing anymore. It's a lot of things going on. So what is your take on Supercloud? How do you see this evolving? What is some of the structural change that's happening in your mind? >> Yeah, so when you first reached out a few weeks ago about this event, I was like, "Hey, what is Supercloud." I know you tweeted a little bit here and there, but I never really, you know, double clicked, right. So I actually listened to some of your episodes you know, the previous conversations. You know, I would say the way you define Supercloud is it's not just the multi-cloud. The multi-Cloud is probably one aspect of it, right. You know, it's actually more beyond that, right. You know, a little bit, you know, towards past, a little bit more towards the flexibility, and then, you know, including, and also you want to include the on-prem, the edge, not just the Big 3 cloud, right. So there is a lot of the, let's say hybrid, more inclusive, right. So, the way I look at it is it's now very different from my imagination of where the Cloud would be, should be 10, 12 years ago. Because, you know, at that time it was, you know, on-prem dominant and then we say, hey, let's go cloud. I never for a second thought, you know, we would've ditch the on-prem completely, right. You know, on-prem has its own value. It's own kind of characteristics we wanted to keep, right. But the way we went for the last 10 years is, hey, Cloud, Cloud everywhere. We embrace Cloud. You know, the way I look at architecture is always very much like a pendulum, right? We swung from decentralized in the mainframe days, you know back in the days, to more distributed, right, PC, kind of a architecture, you know, servers in your own data center. And then to the now, the Cloud, the Big 3 Cloud in particular, right. I think in the next 10, 15, 20 years, it will swing back to more decentralized, more distributed architecture again. Every time you have a swing, because there is some fundamental reason behind that, we all knew the reason behind the current swing to the Cloud. It's because hey, the on-prem data center was too complex, right. You know, too expensive, right. You know, it would've take at least the six months to get any business application going, right. So compared to Cloud, a swipe a credit card, frictionless, you know, pay as you go, it's so great. But I think we are going to see more and more reason for people to say, "Hey, I need a architecture the other way around because of the decentralized the use case," right. Web3 is one example. Even though Web3 is still, you know, emerging right, very, very early days. But that could be one reason, right? You mentioned the Zscaler is kind of a Supercloud of its own, right? We always embrace public Cloud, but a lot of the workloads is actually on our own, you know, within our own data center. We take advantage of the elasticity of the public Cloud, right. But we also get a value, get a performance of our private Cloud. So I want to say a company like Zscaler taking advantage of the Supercloud already, but there will be more and more use cases taking advantage. >> And the use cases are key. Let me just go back and share something we had on the panel earlier in the day, the Cloudaratti Panel. Back in 2008, a bunch of us were getting together and we kind of were riffing, oh yeah, the future's going to be web services and Clouds will talk to each other, workloads can work across this (indistinct) abstraction layer, APIs is going to be talking to each other. A little bit early but we tried to think about it in terms of the preferred architecture. Okay, way too early. Yeah. AWS was just getting going, really kind of pumping on all cylinders there, getting that trajectory up. But it was use case driven. The nirvana never happened. I mean, we were talking Supercloud back then with the Cloudaratti group and we were thinking, okay, hey this is cool. But it was just an evolutionary thing. So I want to get your reaction. Today, the use cases are different. It's not just developers deploying on public Cloud to get all those greatness and goodness of the Cloud, to your point about Zscaler and others, there's on premises use cases and edge use cases emerging. 5g is right there. That's going to explode. So, the use cases now are all Cloud based. Again, this is an input into what we're seeing around Supercloud. How do you see that? What's your reaction to that? And how do you see that evolving so that the methodologies and all the taxonomies are in place for the right solution? >> Right, I mean, you know, some of the use cases are already here, you know, have been here for the last few years. And again, I mentioned a Zscaler, right. The reason that a Zscaler needs the on-prem version of it is because it's impossible to route all the traffic to the Big 3 Cloud, because they're still far away. Sometimes you need the presence much closer to you in order for you to get the level of the performance latency you want, right. So that's why Zscaler has, you know, so many data center of our own instead of leveraging the public Cloud, you know, for most part. However, public Cloud is still super important for Zscaler. I can tell you a story, right. You know, two years ago, you know, at the beginning of the pandemics, everyone started working from home suddenly, right. You are talking about Fortune 500 companies with 200,000 employees, suddenly having 200,000 employees working from home. Their VPN architecture is not going to support that kind of the workload, right? Even Zscaler's own architecture or the presence is not enough. So overnight we just, having so many new workloads, to support this work from home, the zero trust network for our customers, literally overnight. So it wouldn't have happened without public Cloud. So we took advantage of the public Cloud. Yet at the same time, for many, many use cases that Zscaler is paying attention to in terms of the zero trust architecture, the latency, the latency guarantee aspect, the cost is so important. So we kind of take it advantage of both. >> Yeah, definitely. >> Today you may say, hey, you know, Zscaler is one of the, not a majority of the companies in terms of the Cloud adoption or public Cloud adoption, right. But I can say that, yeah, that's because it's more infrastructure, security infrastructure. It's a little bit different for some of the communication applications, right. Why not just support everything on the public Cloud? That's doable today. However, moving forward next to 5, 10, 15 years, we expect to see Web3 kind of the use cases to grow more and more. In those kind of decentralized use cases, I can totally see that we, you know, the on-prim presence is very important. >> Yeah. One of the things we're seeing with Supercloud that we're kind of seeing clarity on is that there's a lot of seamless execution around, less friction around areas that require a PhD or hard work. And you're seeing specialty Superclouds, apps, identity data security. You're also seeing vertical clouds, Goldman Sachs doing financial applications. I'm sure there'll be some insurance. People in these verse. Building on top of the CapEx on one Cloud really fast and moving to others. So that's clearly a trend. The interesting thing I want to get your thoughts on, Howie, on an architectural basis is in Cloud, public Cloud generally, SaaS depends on IAS. So there's an interplay between SaaS and the infrastructures of service and pass as well. But SaaS and IAS, they solve a lot of the problems. You mentioned latency. How do you see the interplay of these Superclouds that utilize the SaaS IS relationship to solve technical problems? So in architecturally, that's been a tight integration on these Clouds, but now as you get more complexity with Supercloud, how do you see SaaS applications changing? >> Yeah, I view the Supercloud is actually reduced the complexity. The reason I'm saying that is, think about it in the world where you have predominantly public Cloud kind of the architecture, right? 10 years ago, AWS has probably 20 services. Now they probably have, you know, more than 1,000 services. Same thing with Azure, same thing with GCP. I mean, who can make sense out of it, right. You know, if you just consume the eyes or the Big 3 Cloud service as is. You know, you need a PhD these days to make sense all of them. So the way I think about Supercloud or where, you know it is going, is it has to provide more simplicity, a better way for people to make sense out of it, right. Cause if I'm an architecture and I have to think, hey, this is a public Cloud, this is a multi-Cloud, and by the way, certain things need to be run on the on-prem. And how do I deal with the uniform nature of it? My mind would blow up. So I need a higher level abstraction. That higher level abstraction will hide the complexity of the where it is, which vendor. It will only tell me the service level, right. You know, we always say, you know, the Cloud is like electricity. I only wanted to know is that like 110 volt or 220, 240, whatever that is. I don't really want to know more than that, right. So I want to say a key requirement for the Supercloud is it's reduced the complexity, higher level abstraction. It has to be like that. >> And operational consistencies at the bottom. Howie, we have one minute left. I want to get your thoughts. I'd like you to share what you're working on that you're excited about. It doesn't have to be with Zscaler. As you see the Supercloud trend emerging, this is the next generation Cloud, Cloud 2.0, whatever we want to call it, it's happening. It's changing. It's getting better. What are you excited about? What do you see as really key inflection point variables in this big wave? >> Yeah. One of the things I really like, what I heard from you in the past about Supercloud is a Supercloud is not just a one Cloud or one vendor. It's almost like every company should have its own Supercloud, right. You're talking about JP Morgan, Goldman Sachs of the world, that they need to have their own Supercloud. Zscaler and their security vendors, they may have their own Cloud. So I think every Fortune 500, Fortune 2,000 companies will have its own Supercloud. So I'm excited about that. So why that's important? We also say that, you know, in the next 10, 20 years, AI machine learning is going to help us a lot, right. So without Supercloud, it's very hard to do AI machine learning. 'Cause if you don't have a place that you know where the data is, and then it's pretty hard. And in the context of Supercloud, I totally foresee that the AI model will follow the data. If the data is in the cloud, it will go there. If the data is on-prem, it will go there. And then the Supercloud will hide the complexity of it. So if you ask me, my passion is leveraging AI machine learning to change the world, but Supercloud will make that easier, right. If you think about why Google, Facebook of the world, are able to leverage AI better than 99% of the rest of the world, because they figure out the Supercloud for themselves, right. And I think now it's the time for the rest of the Fortune 500, of Fortune 2,000 company to figure out its own Supercloud strategy. What is my Supercloud? I need to have my own Supercloud. Each company needs to have its own Supercloud. That's how I see it. >> Howie, always great to have you on. Thanks so much for spending the time and weighing in on this really important topic. We're going to be opening this up. It's not over. We're going to continue to watch the change as it unfolds and get an open community perspective. Thank you so much for being a great expert in our network and community. We really appreciate your time. >> Thank you for having me. >> Okay. Okay, that's it. We'll be up with more coverage here, Supercloud event, after this short break. I'm John Furrier, host of "The Cube." Thanks for watching. (upbeat music)

(upbeat music) >> Welcome back everyone to theCUBE's continuous coverage of AWS re:Invent 2021. I'm John Furrier, your host of theCUBE. We're here with James Watters, CTO of Modern Applications at VMware here to talk about the big Tanzu cloud native application wave, the modernization's here. James, great to see you. Thanks for coming on. >> Hey John, great to have you back on. And really excited about re:Invent this year. And I've been watching your coverage of it. There's lots of exciting stuff going on in this space. >> Awesome. Well, James, you've been riding the wave of, I would call cloud 1.0, 2.0 what do you want to call it, the initial wave of cloud where the advent of replatforming is there. You know all these benefits and things are moving fast. Things are being developed. A lot of endeavors, things are tracking. Some are kicking, Kubernetes kicks in, and now the big story is over the past year and a half. Certainly the pandemic highlighted is this big wave that's hitting now, which is the real, the modernization of the enterprise, the modernization of software development. And even Amazon was saying that in one of our talks that the sovereign life cycles over it should be completely put away to bed. And that DevOps is truly here. And you add security, you got DevSecOps. So an entirely new, large scale, heavy use of data, new methodologies are all hitting right now. And if you're not on that wave your driftwood, what's your take? >> Oh, I think you're dead right, John, and you know, kind of the first 10 years of working on this for sort of proving that the microservices, the container, the declared of automation, the DevOps patterns were the future. And I think everyone's agreed now. And I think DevSecOps and the trends around app modernization are really around bringing that to scale for enterprises. So the conversations I tend to be having are, Hey, you've done a little Kubernetes. You've done some modern apps and APIs, but how do you really scale this across your enterprise? That's what I think is exciting today. And that's what we're talking about. Some of the tools we're bringing to Amazon to help people achieve faster, consumption, better scale, more security. >> You know, one of the things about VMware that's been impressive over the years is that on the wave of IT, they already had great operational install base. They did a deal with Amazon Ragu did that. I think 2016, that kind of cleared the air. They're not going to do their own cloud or they have cloud efforts kind of solidifies that. And then incomes, Kubernetes, and then you saw a completely different cloud native wave coming in with the Tanzu, the Heptio acquisition. And since then a lot's been done. Can you just take us through the Tanzu evolution because I think this is a cornerstone of what's happening right now. >> Yeah, that's a great question, John. I think that the emergence of Kubernetes as a common set of APIs that every cloud and almost every infrastructure agrees on was a huge one. And the way I talked to our clients about is that VMware is doing a couple of things in this space. The first is that we're recognizing that as an infrastructure or baking Kubernetes into every vSphere, be it vSphere on-prem, be it VMC on Amazon. You're just going to find Kubernetes is a big part of each year. So that's kind of a big step one, but it's in some ways the same way that Amazon is doing with EKS and Azure is doing with AKS, but like every infrastructure provider is bringing Kubernetes everywhere. And then that kind of unleashes this really exciting moment where you've got this global control plane that you can program to be your DevSecOps platform. And Kubernetes has this incredible model of extensibility where you can add CRDs and program, right against the Kubernetes APIs with your additional features and functions you want your DevSecOps pipeline. And so it's created this opportunity for Tanzu to kind of have then a global control plane, which we call Tanzu Mission Control to bring all of those Kubernetes running on different clouds together. And then the last thing that we'll talk about a little bit more is this Tanzu Application Platform, which is bringing a developer experience to Kubernetes. So that you're not always starting with what I like to say, like, oh, I have Git, I have Kubernetes, am I done? There's a lot more to the story than that. >> I want to get to this Tanzu Application Platform on EKS. I think that's a big story at VMware. We've seen that, but before we do that for the folks out there watching who are like, I'm now seeing this, whether they're young, new to the industry or enterprises who have replatforming or refactoring, trying to understand what is a modern application. So give us the definition in your words, what is a modern application? >> You know, John, it's a great question. And I tend to start with why and like, hey, how did we get here? And you, you and I both, I think, used to work for the bigger iron vendors back in the day. And we've seen the age of the big box Silicon Valley. I don't know, I worked at Sun just across the aisle here and basically we'd sell you a big box and then once or twice a year, you'd change the software on it. And so in a sense, like there was no chance to do user-oriented design or any of these things. Like you kind of got what you got and you hope to scale it. And then modern applications have been much more of the age of like what you might say, like Instagram or some of these modern apps that are very user-oriented and how you're changing that user interface that user design might change every week based on user feedback. And you're constantly using big data to adjust that modern app experience. And so modern apps to me are inherently iterative and inherently scalable and amenable to change. And that's where the 12 factor application manifesto was written, a blog was written a decade ago, basically saying here's how you can start to design apps to be constantly upgradable. So to me, modern apps, 12 of factors, one of them Kubernetes compatible, but the real point is that they should be flexible to be constantly iterated on maybe at least once a week at a minimum and designed and engineered to do that. And that takes them away from the old vertically scaled apps that kind of ran on 172 processors that you would infrequently update in the past. Those are what you might call like cloud apps. Is that helpful? >> Yeah, totally helpful. And by the way, those old iron vendors, they're now called the on-premise vendors and, you know, HPE, Dell and whatnot, IBM. But the thing about the cloud is, is that you have the true infrastructure as code happening. It's happened, it's happening, but faster and better and greater the goodness there. So you got DevSecOps, which is just DevOps with security. So DevSecOps is the standard now that everyone's shooting for. So what that means is I'm a developer, I just want to write code, the infrastructure got to work for me. So things like Lambda functions are all great things. So assuming that there's going to be this now programmable layer for developers just to do stuff. What is, in context to that need, what is the Tanzu Application Platform about and how does it work? >> Yeah, that's a great question, John. So once you have Kubernetes, you have this abundance of programmable, inner infrastructure resources. You can do almost anything with it, right? Like you can run machine learning workflows, you can run microservices, you can build APIs, you can import legacy apps to it, but it doesn't come out of the box with a set of application patterns and a set of controllers that are built for just, you know, modern apps. It comes with sort of a lot of flexibility and it expects you to understand a pretty broad surface area of APIs. So what we're doing is we're following in the footsteps of companies like Netflix and Uber, et cetera, all of which built kind of a developer platform on top of their Kubernetes infrastructure to say, here's your more templatized path to production. So you don't have to configure everything. You're just changing the right parts of the application. And we kind of go through three steps. The first is an application template that says, here's how to build a streaming app on Kubernetes, click here, and you'll get in your version control and we'll build a Kubernetes manifest for it. Two, is an automated containerization, which is we'll take your app and auto create a container for it so that we know it's secure and you can't make a mistake. And then three is that it will auto detect your application and build a Kubernetes deployment for it so that you can deploy it to Kubernetes in a reliable way. We're basically trying to reduce the burden on the developer from having to understand everything about Kubernetes, to really understanding their domain of the application. Does that make sense? >> Yeah, and this kind of is inline, you mentioned Netflix early on. They were one of the pioneers in inside AWS, but they had the full hyperscaler developers. They had those early hardcore devs that are like unicorns. No, you can't hire these people. They're just not many enough in the world. So the world's becoming, I won't say democratization, that's an overused word, but what we're getting to is if I get this right, you're saying you're going to eliminate the heavy lifting, the boring mundane stuff. >> Yeah, even at Netflix as is great of a developers they have, they still built kind of a microservices or an application platform on top of AWS. And I think that's true of Kubernetes today, which if you go to a Kubernetes conference, you'll often see, don't expose Kubernetes to developers. So tons of application platforms starts to really solve that question. What do you expose to a developer when they want to consume Kubernetes? >> So let's ask you, I know you do a lot of customer visits, that's one of the jobs that make you go out in the field which you like doing and working backwards on the customers has been in the DNA of VMware for years. What is the big narrative with the customers? What's their pain point? How else has the pandemics shown them projects that are working and not working, and they want to come out of it with a growth strategy. VMware is now an independent company. You guys got the platform, what are the customers doing with it? >> Well, I'll give you one example. You know, I went out and I was chatting with the retailer, had seen their online sales goes from one billion to like three billion during the pandemic. And they had been using kind of packaged shopping cart software before like a basic online store that they bought and configured. And they realized they needed to get great at modern apps to keep up with customer demand. And so I would say in general, we've seen the drive, the need for modern apps and digital transformation is just really skyrocketing and everyone's paying attention to it. And then I think they're looking for a trusted partner and they're debating, do we build it all in-house or do we turn to a partner that can help us build this above the cloud? And I think for the people that want an enterprise trusted brand, they'll have a lot of engineering talent behind it. There's been strong interest in Tanzu. And I think the big message we're trying to get out is that Tanzu can not only help you in your on-prem infrastructure, but it can also really help you on public cloud. And I think people are surprised by just how much. >> It's just in the common thread. I see that it's that point is right on is that these companies that don't digitize their business and build an application for their customer are going to get taken away by a startup. I mean, we've seen, it's so easy if you don't have an app for that, you're out of business. I mean, this is like, no, no, it's not like maybe we should do the cloud, let's get proactive. Pretty much it's critical path now for companies. So I'm sure you agree with that, but what's the progress of most of the enterprises? What percentage do you think are having this realization? >> I would say at least 70, 80%, if not more, are there now, and 10 years ago, I used to kind of have to tell stories, like, you know, some startups going to come along and they might disrupt you and people kind of give you that like, yeah, yeah, yeah. You know, I get it. And now it's sort of like, hey, someone's already in our market with an API. Tell me how to build API first apps we need to compete. And that's the difference in the strategic conversation kind of post pandemic and post, you know, the last 10 years. >> All right, final question for you 'cause this is right great thread. I've seen having a web interface it's not good enough, to your point. You got to have an application that they're engaging with, with all the modern capabilities, because the needs there, the expectation for the customers there. What new things are you seeing beyond mobile that are coming around the pike for enterprises, obviously web to mobile, mobile to what? What's next? >> I think the thing that's interesting is there is a bigger push to say more and more of what we do should be an API both internally, like, hey, other teams might want to consume some of these services as a well-formed API. I call it kind of like Stripe MB. Like you look at all these companies, they're like, Hey, stripes worth a hundred billion dollars now because they built a great API. What about us? And so I've seen a lot of industries from automotive to of course financial services and others that are saying, what if we gave our developers internally great APIs? And what if we also expose those APIs externally, we could get a lot, a more rat, fast moving business than the traditional model we might've had in the past. >> It's interesting, you know, commoditizing and automating a way infrastructure or software or capable workflows is actually normal. And if you can unify that in a way that's just better I mean, you have a lower cost structure, but the value doesn't go away, right? So I think a lot of this comes down to, beauty's in the eye of the beholder. I mean, that's how DevSecOps works. I mean, it's agile, it's faster, but you still have to achieve the value of the net is lower cost. What's your take on that? >> Well, I think you're dead right, John. And I think this is what was surprising about Stripe is it was possible before Stripe to go out as a developer and kind of pulled together a backend that did payments, but boy, it was hard. And I think that's the same thing with kind of this tons of application platform and the developer experience focus is people are realizing they can't hire enough developers. So this is the other thing that's happened during the pandemic and the great resignation, if you will, the war for talent is on. And you know, when I talked to a customer, like we might be able to help you, even 30% with your developer productivity, there's like one out of four developers. You might not have to be able to have to recruit they're all in. And so I think that API first model and the developer experience model are the same thing, which is like, it doesn't have to just be possible. It should be excellent. >> Well, great insight learning a lot. Of course, we should move to theCube API and we'll plug into your applications. We're here in the studio with our API, James. Great to have you on. Final word, what's your take this, the big story for re:Invent. If you had to summarize this year's re:Invent going in to 2022, what would you say is happening in this industry right now? >> You know, I'm just super excited about the EKS market and how fast it's growing. We're seeing EKS in a lot of places. We're super excited about helping EKS customers scale. And I think it's great to see Amazon adopting that standard API from Kubernetes. And I think that's going to be, just awesome to watch the creativity the industry is going to have around it. >> Well, great insight, thanks for coming on. And again, we'll work on that Cube API for you. The virtualization of theCUBE is here. We're virtual, which we could be in-person and hope to see you in-person soon. Thanks for coming on. >> You too John, thank you. >> Okay, Cube's coverage of alias re:Invent 2021. I'm John Furrier, your host. Thanks for watching. (upbeat music)

>>Well, welcome back to the cubes coverage of AWS reinvent 2021. We're here joined by Ian buck, general manager and vice president of accelerated computing at Nvidia I'm. John Ford, your host of the QB. And thanks for coming on. So in video, obviously, great brand congratulates on all your continued success. Everyone who has does anything in graphics knows the GPU's are hot and you guys get great brand great success in the company, but AI and machine learning was seeing the trend significantly being powered by the GPU's and other systems. So it's a key part of everything. So what's the trends that you're seeing, uh, in ML and AI, that's accelerating computing to the cloud. Yeah, >>I mean, AI is kind of drape bragging breakthroughs innovations across so many segments, so many different use cases. We see it showing up with things like credit card, fraud prevention and product and content recommendations. Really it's the new engine behind search engines is AI. Uh, people are applying AI to things like, um, meeting transcriptions, uh, virtual calls like this using AI to actually capture what was said. Um, and that gets applied in person to person interactions. We also see it in intelligence systems assistance for a contact center, automation or chat bots, uh, medical imaging, um, and intelligence stores and warehouses and everywhere. It's really, it's really amazing what AI has been demonstrated, what it can do. And, uh, it's new use cases are showing up all the time. >>Yeah. I'd love to get your thoughts on, on how the world's evolved just in the past few years, along with cloud, and certainly the pandemics proven it. You had this whole kind of full stack mindset initially, and now you're seeing more of a horizontal scale, but yet enabling this vertical specialization in applications. I mean, you mentioned some of those apps, the new enablers, this kind of the horizontal play with enablement for specialization, with data, this is a huge shift that's going on. It's been happening. What's your reaction to that? >>Yeah, it's the innovations on two fronts. There's a horizontal front, which is basically the different kinds of neural networks or AIS as well as machine learning techniques that are, um, just being invented by researchers for, uh, and the community at large, including Amazon. Um, you know, it started with these convolutional neural networks, which are great for image processing, but as it expanded more recently into, uh, recurrent neural networks, transformer models, which are great for language and language and understanding, and then the new hot topic graph neural networks, where the actual graph now is trained as a, as a neural network, you have this underpinning of great AI technologies that are being adventure around the world in videos role is try to productize that and provide a platform for people to do that innovation and then take the next step and innovate vertically. Um, take it, take it and apply it to two particular field, um, like medical, like healthcare and medical imaging applying AI, so that radiologists can have an AI assistant with them and highlight different parts of the scan. >>Then maybe troublesome worrying, or requires more investigation, um, using it for robotics, building virtual worlds, where robots can be trained in a virtual environment, their AI being constantly trained, reinforced, and learn how to do certain activities and techniques. So that the first time it's ever downloaded into a real robot, it works right out of the box, um, to do, to activate that we co we are creating different vertical solutions, vertical stacks for products that talk the languages of those businesses, of those users, uh, in medical imaging, it's processing medical data, which is obviously a very complicated large format data, often three-dimensional boxes in robotics. It's building combining both our graphics and simulation technologies, along with the, you know, the AI training capabilities and different capabilities in order to run in real time. Those are, >>Yeah. I mean, it's just so cutting edge. It's so relevant. I mean, I think one of the things you mentioned about the neural networks, specifically, the graph neural networks, I mean, we saw, I mean, just to go back to the late two thousands, you know, how unstructured data or object store created, a lot of people realize that the value out of that now you've got graph graph value, you got graph network effect, you've got all kinds of new patterns. You guys have this notion of graph neural networks. Um, that's, that's, that's out there. What is, what is a graph neural network and what does it actually mean for deep learning and an AI perspective? >>Yeah, we have a graph is exactly what it sounds like. You have points that are connected to each other, that established relationships and the example of amazon.com. You might have buyers, distributors, sellers, um, and all of them are buying or recommending or selling different products. And they're represented in a graph if I buy something from you and from you, I'm connected to those end points and likewise more deeply across a supply chain or warehouse or other buyers and sellers across the network. What's new right now is that those connections now can be treated and trained like a neural network, understanding the relationship. How strong is that connection between that buyer and seller or that distributor and supplier, and then build up a network that figure out and understand patterns across them. For example, what products I may like. Cause I have this connection in my graph, what other products may meet those requirements, or also identifying things like fraud when, when patterns and buying patterns don't match, what a graph neural networks should say would be the typical kind of graph connectivity, the different kind of weights and connections between the two captured by the frequency half I buy things or how I rate them or give them stars as she used cases, uh, this application graph neural networks, which is basically capturing the connections of all things with all people, especially in the world of e-commerce, it's very exciting to a new application, but applying AI to optimizing business, to reducing fraud and letting us, you know, get access to the products that we want, the products that they have, our recommendations be things that, that excited us and want us to buy things >>Great setup for the real conversation that's going on here at re-invent, which is new kinds of workloads are changing. The game. People are refactoring their business with not just replatform, but actually using this to identify value and see cloud scale allows you to have the compute power to, you know, look at a note on an arc and actually code that. It's all, it's all science, all computer science, all at scale. So with that, that brings up the whole AWS relationship. Can you tell us how you're working with AWS before? >>Yeah. 80 of us has been a great partner and one of the first cloud providers to ever provide GPS the cloud, uh, we most more recently we've announced two new instances, uh, the instance, which is based on the RA 10 G GPU, which has it was supports the Nvidia RTX technology or rendering technology, uh, for real-time Ray tracing and graphics and game streaming is their highest performance graphics, enhanced replicate without allows for those high performance graphics applications to be directly hosted in the cloud. And of course runs everything else as well, including our AI has access to our AI technology runs all of our AI stacks. We also announced with AWS, the G 5g instance, this is exciting because it's the first, uh, graviton or ARM-based processor connected to a GPU and successful in the cloud. Um, this makes, uh, the focus here is Android gaming and machine learning and France. And we're excited to see the advancements that Amazon is making and AWS is making with arm and the cloud. And we're glad to be part of that journey. >>Well, congratulations. I remember I was just watching my interview with James Hamilton from AWS 2013 and 2014. He was getting, he was teasing this out, that they're going to build their own, get in there and build their own connections, take that latency down and do other things. This is kind of the harvest of all that. As you start looking at these new new interfaces and the new servers, new technology that you guys are doing, you're enabling applications. What does, what do you see this enabling as this, as this new capability comes out, new speed, more, more performance, but also now it's enabling more capabilities so that new workloads can be realized. What would you say to folks who want to ask that question? >>Well, so first off I think arm is here to stay and you can see the growth and explosion of my arm, uh, led of course, by grab a tiny to be. I spend many others, uh, and by bringing all of NVIDIA's rendering graphics, machine learning and AI technologies to arm, we can help bring that innovation. That arm allows that open innovation because there's an open architecture to the entire ecosystem. Uh, we can help bring it forward, uh, to the state of the art in AI machine learning, the graphics. Um, we all have our software that we released is both supportive, both on x86 and an army equally, um, and including all of our AI stacks. So most notably for inference the deployment of AI models. We have our, the Nvidia Triton inference server. Uh, this is the, our inference serving software where after he was trained to model, he wanted to play it at scale on any CPU or GPU instance, um, for that matter. So we support both CPS and GPS with Triton. Um, it's natively integrated with SageMaker and provides the benefit of all those performance optimizations all the time. Uh, things like, uh, features like dynamic batching. It supports all the different AI frameworks from PI torch to TensorFlow, even a generalized Python code. Um, we're activating how activating the arm ecosystem as well as bringing all those AI new AI use cases and all those different performance levels, uh, with our partnership with AWS and all the different clouds. >>And you got to making it really easy for people to use, use the technology that brings up the next kind of question I want to ask you. I mean, a lot of people are really going in jumping in the big time into this. They're adopting AI. Either they're moving in from prototype to production. There's always some gaps, whether it's knowledge, skills, gaps, or whatever, but people are accelerating into the AI and leaning into it hard. What advancements have is Nvidia made to make it more accessible, um, for people to move faster through the, through the system, through the process? >>Yeah, it's one of the biggest challenges. The other promise of AI, all the publications that are coming all the way research now, how can you make it more accessible or easier to use by more people rather than just being an AI researcher, which is, uh, uh, obviously a very challenging and interesting field, but not one that's directly in the business. Nvidia is trying to write a full stack approach to AI. So as we make, uh, discover or see these AI technologies come available, we produce SDKs to help activate them or connect them with developers around the world. Uh, we have over 150 different STKs at this point, certain industries from gaming to design, to life sciences, to earth scientist. We even have stuff to help simulate quantum computing. Um, and of course all the, all the work we're doing with AI, 5g and robotics. So, uh, we actually just introduced about 65 new updates just this past month on all those SDKs. Uh, some of the newer stuff that's really exciting is the large language models. Uh, people are building some amazing AI. That's capable of understanding the Corpus of like human understanding, these language models that are trained on literally the continent of the internet to provide general purpose or open domain chatbots. So the customer is going to have a new kind of experience with a computer or the cloud. Uh, we're offering large language, uh, those large language models, as well as AI frameworks to help companies take advantage of this new kind of technology. >>You know, each and every time I do an interview with Nvidia or talk about Nvidia my kids and their friends, they first thing they said, you get me a good graphics card. Hey, I want the best thing in their rig. Obviously the gaming market's hot and known for that, but I mean, but there's a huge software team behind Nvidia. This is a well-known your CEO is always talking about on his keynotes, you're in the software business. And then you had, do have hardware. You were integrating with graviton and other things. So, but it's a software practices, software. This is all about software. Could you share kind of more about how Nvidia culture and their cloud culture and specifically around the scale? I mean, you, you hit every, every use case. So what's the software culture there at Nvidia, >>And it is actually a bigger, we have more software people than hardware people, people don't often realize this. Uh, and in fact that it's because of we create, uh, the, the, it just starts with the chip, obviously building great Silicon is necessary to provide that level of innovation, but as it expanded dramatically from then, from there, uh, not just the Silicon and the GPU, but the server designs themselves, we actually do entire server designs ourselves to help build out this infrastructure. We consume it and use it ourselves and build our own supercomputers to use AI, to improve our products. And then all that software that we build on top, we make it available. As I mentioned before, uh, as containers on our, uh, NGC container store container registry, which is accessible for me to bus, um, to connect to those vertical markets, instead of just opening up the hardware and none of the ecosystem in develop on it, they can with a low-level and programmatic stacks that we provide with Kuda. We believe that those vertical stacks are the ways we can help accelerate and advance AI. And that's why we make as well, >>Ram a little software is so much easier. I want to get that plug for, I think it's worth noting that you guys are, are heavy hardcore, especially on the AI side. And it's worth calling out, uh, getting back to the customers who are bridging that gap and getting out there, what are the metrics they should consider as they're deploying AI? What are success metrics? What does success look like? Can you share any insight into what they should be thinking about and looking at how they're doing? >>Yeah. Um, for training, it's all about time to solution. Um, it's not the hardware that that's the cost, it's the opportunity that AI can provide your business and many, and the productivity of those data scientists, which are developing, which are not easy to come by. So, uh, what we hear from customers is they need a fast time to solution to allow people to prototype very quickly, to train a model to convergence, to get into production quickly, and of course, move on to the next or continue to refine it often. So in training is time to solution for inference. It's about our, your ability to deploy at scale. Often people need to have real time requirements. They want to run in a certain amount of latency, a certain amount of time. And typically most companies don't have a single AI model. They have a collection of them. They want, they want to run for a single service or across multiple services. That's where you can aggregate some of your infrastructure leveraging the trading infant server. I mentioned before can actually run multiple models on a single GPU saving costs, optimizing for efficiency yet still meeting the requirements for latency and the real time experience so that your customers have a good, a good interaction with the AI. >>Awesome. Great. Let's get into, uh, the customer examples. You guys have obviously great customers. Can you share some of the use cases, examples with customers, notable customers? >>Yeah. I want one great part about working in videos as a technology company. You see, you get to engage with such amazing customers across many verticals. Uh, some of the ones that are pretty exciting right now, Netflix is using the G4 instances to CLA um, to do a video effects and animation content. And, you know, from anywhere in the world, in the cloud, uh, as a cloud creation content platform, uh, we work in the energy field that Siemens energy is actually using AI combined with, um, uh, simulation to do predictive maintenance on their energy plants, um, and, and, uh, doing preventing or optimizing onsite inspection activities and eliminating downtime, which is saving a lot of money for the engine industry. Uh, we have worked with Oxford university, uh, which is Oxford university actually has over two, over 20 million artifacts and specimens and collections across its gardens and museums and libraries. They're actually using convenient GPS and Amazon to do enhance image recognition, to classify all these things, which would take literally years with, um, uh, going through manually each of these artifacts using AI, we can click and quickly catalog all of them and connect them with their users. Um, great stories across graphics, about cross industries across research that, uh, it's just so exciting to see what people are doing with our technology together with, >>And thank you so much for coming on the cube. I really appreciate Greg, a lot of great content there. We probably going to go another hour, all the great stuff going on in the video, any closing remarks you want to share as we wrap this last minute up >>Now, the, um, really what Nvidia is about as accelerating cloud computing, whether it be AI, machine learning, graphics, or headphones, community simulation, and AWS was one of the first with this in the beginning, and they continue to bring out great instances to help connect, uh, the cloud and accelerated computing with all the different opportunities integrations with with SageMaker really Ks and ECS. Uh, the new instances with G five and G 5g, very excited to see all the work that we're doing together. >>Ian buck, general manager, and vice president of accelerated computing. I mean, how can you not love that title? We want more, more power, more faster, come on. More computing. No, one's going to complain with more computing know, thanks for coming on. Thank you. Appreciate it. I'm John Farrell hosted the cube. You're watching Amazon coverage reinvent 2021. Thanks for watching.

(upbeat music) >> Welcome back everyone to theCUBE's continuous coverage of AWS re:Invent 2021. I'm John Furrier, your host of theCUBE. We're here with James Watters, CTO of Modern Applications at VMware here to talk about the big Tanzu cloud native application wave, the modernization's here. James, great to see you. Thanks for coming on. >> Hey John, great to have you back on. And really excited about re:Invent this year. And I've been watching your coverage of it. There's lots of exciting stuff going on in this space. >> Awesome. Well, James, you've been riding the wave of, I would call cloud 1.0, 2.0 what do you want to call it, the initial wave of cloud where the advent of replatforming is there. You know all these benefits and things are moving fast. Things are being developed. A lot of endeavors, things are tracking. Some are kicking, Kubernetes kicks in, and now the big story is over the past year and a half. Certainly the pandemic highlighted is this big wave that's hitting now, which is the real, the modernization of the enterprise, the modernization of software development. And even Amazon was saying that in one of our talks that the sovereign life cycles over it should be completely put away to bed. And that DevOps is truly here. And you add security, you got DevSecOps. So an entirely new, large scale, heavy use of data, new methodologies are all hitting right now. And if you're not on that wave your driftwood, what's your take? >> Oh, I think you're dead John, and you know, kind of the first 10 years of working on this for sort of proving that the microservices, the container, the declared of automation, the DevOps patterns were the future. And I think everyone's agreed now. And I think DevSecOps and the trends around app modernization are really around bringing that to scale for enterprises. So the conversations I tend to be having are, Hey, you've done a little Kubernetes. You've done some modern apps and APIs, but how do you really scale this across your enterprise? That's what I think is excited today. And that's what we're talking about. Some of the tools we're bringing to Amazon to help people achieve faster, consumption, better scale, more security. >> You know, one of the things about VMware that's been impressive over the years is that on the wave of IT, they already had great operational install base. They did a deal with Amazon Ragu did that. I think 2016, that kind of cleared the air. They're not going to do their own cloud or they have cloud efforts kind of solidifies that. And then incomes, Kubernetes, and then you saw a completely different cloud native wave coming in with the Tanzu, the Heptio acquisition. And since then a lot's been done. Can you just take us through the Tanzu evolution because I think this is a cornerstone of what's happening right now. >> Yeah, that's a great question, John. I think that the emergence of Kubernetes as a common set of APIs that every cloud and almost every infrastructure agrees on was a huge one. And the way I talked to our clients about is that VMware is doing a couple of things in this space. The first is that we're recognizing that as an infrastructure or baking Kubernetes into every vSphere, be it vSphere on-prem, be it BMC on Amazon. You're just going to find Kubernetes is a big part of each year. So that's kind of a big step one, but it's in some ways the same way that Amazon is doing with EKS and Azure EKS, but like every infrastructure provider is bringing Kubernetes everywhere. And then that kind of unleashes this really exciting moment where you've got this global control plane that you can program to be your DevSecOps platform. And Kubernetes has this incredible model of extensibility where you can add CRDs and program, right against the Kubernetes APIs with your additional features and functions you want your DevSecOps pipeline. And so it's created this opportunity for Tanzu to kind of have then a global control plan, which we call Tanzu Mission Control to bring all of those Kubernetes running in different clouds together. And then the last thing that we'll talk about a little bit more is this Tanzu Application Platform, which is bringing a developer experience to Kubernetes. So that you're not always starting with what I like to say, like, oh, I have Kubernetes, am I done? There's a lot more to the story than that. >> I want to get to this Tanzu Application Platform on EKS. I think that's a big story at VMware. We've seen that, but before we do that for the folks out there watching who are like, I'm now seeing this, whether they're young, new to the industry or enterprises who have replatforming or refactoring, trying to understand what is a modern application. So give us the definition in your words, what is a modern application? >> You know, John, it's a great question. And I tend to start with why and like, hey, how did we get here? And you, you and I both, I think, used to work for the bigger iron vendors back in the day. And we've seen the age of the big box Silicon Valley. I don't know, I worked at Sun just across the aisle here and basically we'd sell you a big box and then once or twice a year, you'd change the software on it. And so in a sense, like there was no chance to do user-oriented design or any of these things. Like you kind of got what you got and you hope to scale it. And then modern applications have been much more of the age of like what you might say, like Instagram or some of these modern apps that are very user-oriented and how you're changing that user interface that user design might change every week based on user feedback. And you're constantly using big data to adjust that modern app experience. And so modern apps to me are inherently iterative and inherently scalable and amenable to change. And that's where the 12 factor application manifesto was written, a blog was written a decade ago, basically saying here's how you can start to design apps to be constantly upgradable. So to me, modern apps, 12 of factors, one of them Kubernetes compatible, but the real point is that they should be flexible to be constantly iterated on maybe at least once a week at a minimum and designed and engineered to do that. And that takes them away from the old vertically scaled apps that kind of ran on 172 processors that you would infrequently update in the past. Those are what you might call like cloud apps. Is that helpful? >> Yeah, totally helpful. And by the way, those old iron vendors, they're now called the on-premise vendors and, you know, HPE, Dell and whatnot, IBM. But the thing about the cloud is, is that you have the true infrastructure as code happening. It's happened, it's happening, but faster and better and greater the goodness there. So you got DevSecOps, which is just DevOps with security. So DevSecOps is the standard now that everyone's shooting for. So what that means is I'm a developer, I just want to write code, the infrastructure got to work for me. So things like Lambda functions are all great things. So assuming that there's going to be this now programmable layer for developers just to do stuff. What is, in context to that need, what is the Tanzu Application Platform about and how does it work? >> Yeah, that's a great question, John. So once you have Kubernetes, you have this abundance of programmable, inner infrastructure resources. You can do almost anything with it, right? Like you can run machine learning workflows, you can run microservices, you can build APIs, you can import legacy apps to it, but it doesn't come out of the box with a set of application patterns and a set of controllers that are built for just, you know, modern apps. It comes with sort of a lot of flexibility and it expects you to understand a pretty broad surface area of APIs. So what we're doing is we're following in the footsteps of companies like Netflix and Uber, et cetera, all of which built kind of a developer platform on top of their Kubernetes infrastructure to say, here's your more templatized path to production. So you don't have to configure everything. You're just changing the right parts of the application. And we kind of go through three steps. The first is an application template that says, here's how to build a streaming app on Kubernetes, click here, and you'll get in your version control and we'll build a Kubernetes manifest for it. Two, is an automated containerization, which is we'll take your app and auto create a container for it so that we know it's secure and you can't make a mistake. And then three is that it will auto detect your application and build a Kubernetes deployment for it so that you can deploy it to Kubernetes in a reliable way. We're basically trying to reduce the burden on the developer from having to understand everything about Kubernetes, to really understanding their domain of the application. Does that make sense? >> Yeah, and this kind of is inline, you mentioned Netflix early on. They were one of the pioneers in inside AWS, but they had the full hyperscaler developers. They had those early hardcore devs that are like unicorns. No, you can't hire these people. They're just not many enough in the world. So the world's becoming, I won't say democratization, that's an overused word, but what we're getting to is if I get this right, you're saying you're going to eliminate the heavy lifting, the boring mundane stuff. >> Yeah, even at Netflix as is great of a developers they have, they still built kind of a microservices or an application platform on top of AWS. And I think that's true of Kubernetes today, which if you go to a Kubernetes conference, you'll often see, don't expose Kubernetes to developers. So tons of application platforms starts to really solve that question. What do you expose to a developer when they want to consume Kubernetes? >> So let's ask you, I know you do a lot of customer visits, that's one of the jobs that make you go out in the field which you like doing and working backwards on the customers has been in the DNA of VMware for years. What is the big narrative with the customers? What's their pain point? How else has the pandemics shown them projects that are working and not working, and they want to come out of it with a growth strategy. VMware is now an independent company. You guys got the platform, what are the customers doing with it? >> Well, I'll give you one example. You know, I went out and I was chatting with the retailer, had seen their online sales goes from one billion to like three billion during the pandemic. And they had been using kind of packaged shopping cart software before like a basic online store that they bought and configured. And they realized they needed to get great at modern apps to keep up with customer demand. And so I would say in general, we've seen the drive, the need for modern apps and digital transformation is just really skyrocketing and everyone's paying attention to it. And then I think they're looking for a trusted partner and they're debating, do we build it all in-house or do we turn to a partner that can help us build this above the cloud? And I think for the people that want an enterprise trusted brand, they'll have a lot of engineering talent behind it. There's been strong interest in Tanzu. And I think the big message we're trying to get out is that Tanzu can not only help you in your on-prem infrastructure, but it can also really help you on public cloud. And I think people are surprised by just how much. >> It's just in the common thread. I see that it's that point is right on is that these companies that don't digitize their business and build an application for their customer are going to get taken away by a startup. I mean, we've seen, it's so easy if you don't have an app for that, you're out of business. I mean, this is like, no, no, it's not like maybe we should do the cloud, let's get proactive. Pretty much it's critical path now for companies. So I'm sure you agree with that, but what's the progress of most of the enterprises? What percentage do you think are having this realization? >> I would say at least 70, 80%, if not more, are there now, and 10 years ago, I used to kind of have to tell stories, like, you know, some startups going to come along and they might disrupt you and people kind of give you that like, yeah, yeah, yeah. You know, I get it. And now it's sort of like, hey, someone's already in our market with an API. Tell me how to build API first apps we need to compete. And that's the difference in the strategic conversation kind of post pandemic and post, you know, the last 10 years. >> All right, final question for you 'cause this is right great thread. I've seen having a web interface it's not good enough, to your point. You got to have an application that they're engaging with, with all the modern capabilities, because the needs there, the expectation for the customers there. What new things are you seeing beyond mobile that are coming around the pike for enterprises, obviously web to mobile, mobile to what? What's next? >> I think the thing that's interesting is there is a bigger push to say more and more of what we do should be an API both internally, like, hey, other teams might want to consume some of these services as a well-formed API. I call it kind of like Stripe MB. Like you look at all these companies, they're like, Hey, stripes worth a hundred billion dollars now because they built a great API. What about us? And so I've seen a lot of industries from automotive to of course financial services and others that are saying, what if we gave our developers internally great APIs? And what if we also expose those APIs externally, we could get a lot, a more rat, fast moving business than the traditional model we might've had in the past. >> It's interesting, you know, commoditizing and automating a way infrastructure or software or capable workflows is actually normal. And if you can unify that in a way that's just better I mean, you have a lower cost structure, but the value doesn't go away, right? So I think a lot of this comes down to, beauty's in the eye of the beholder. I mean, that's how DevSecOps works. I mean, it's agile, it's faster, but you still have to achieve the value of the net is lower cost. What's your take on that? >> Well, I think you're dead right, John. And I think this is what was surprising about Stripe is it was possible before Stripe to go out as a developer and kind of pulled together a backend that did payments, but boy, it was hard. And I think that's the same thing with kind of this tons of application platform and the developer experience focus is people are realizing they can't hire enough developers. So this is the other thing that's happened during the pandemic and the great resignation, if you will, the war for talent is on. And you know, when I talked to a customer, like we might be able to help you, even 30% with your developer productivity, there's like one out of four developers. You might not have to be able to have to recruit they're all in. And so I think that API first model and the developer experience model are the same thing, which is like, it doesn't have to just be possible. It should be excellent. >> Well, great insight learning a lot. Of course, we should move to theCube API and we'll plug into your applications. We're here in the studio with our API, James. Great to have you on. Final word, what's your take this, the big story for re:Invent. If you had to summarize this year's re:Invent going in to 2022, what would you say is happening in this industry right now? >> You know, I'm just super excited about the EKS market and how fast it's growing. We're seeing EKS in a lot of places. We're super excited about helping EKS customers scale. And I think it's great to see Amazon adopting that standard API from Kubernetes. And I think that's going to be, just awesome to watch the creativity the industry is going to have around it. >> Well, great insight, thanks for coming on. And again, we'll work on that Cube API for you. The virtualization of theCUBE is here. We're virtual, which we could be in-person and hope to see you in-person soon. Thanks for coming on. >> You too John, thank you. >> Okay, Cube's coverage of alias re:Invent 2021. I'm John Furrier, your host. Thanks for watching. (upbeat music)

[Music] welcome to thecube's coverage of vmworld 2021 i'm lisa martin pleased to welcome back to the program the cto of vmware kit kohlberg welcome back to the program and congrats on your new role thank you yeah i'm really excited to be here so you've been at vmware for a long time you started as an intern i read yeah yeah it's been uh 18 years as a full-timer but i guess 19 if you count my internship so quite a while it's many lifetimes in silicon valley right many lifetimes in silicon valley well we've seen a lot of innovation from vmware in its 23 years you've been there the vast majority of that we've seen a lot of successful big tech waves ridden by vmware in april vmware pulled tanzu and vmware cloud foundation together vmware cloud you've got some exciting news with respect to that what are you announcing today well we got a lot of exciting announcements happening at vmworld this week but one of the ones i'm really excited about is vmware cloud with tons of services so let me talk about what these things are so we have vmware cloud which is really us taking our vmware cloud foundation technology and delivering that as a service in partnership with our public cloud providers but in particular this one with aws vmware cloud on aws we're combining that with our tanzu portfolio of technologies and these are really technologies focused at developers at folks driving devops building and operating modern applications and what we're doing is really bringing them together to simplify customers moving from their data centers into the cloud and then modernizing their applications it's a pattern that we see very very often this notion of migrate and then modernize right once you're on a modern cloud infrastructure makes it much easier to modernize your applications talk to me about some of the catalysts for this change and this offering of services was it you know catalyzed by some of the events we've seen in the world in the last 18 months and this acceleration of digital adoption yeah absolutely and we saw this across our customer base across many many different industries although as you can imagine those industries that that were really considered essential uh were the ones where we saw the biggest sorts of accelerations we saw a tremendous amount of people needing to support remote workers overnight right and cloud is a perfect use case for that but the challenge a lot of customers had was that they couldn't take the time to retool that they had to use what they already had and so something like vmware cloud was perfect for that because it allowed them to take what they were doing on-prem and seamlessly extend it into the cloud without any changes able to do that you know almost overnight right but at the same time what we also saw was the acceleration of their digital transformation people are now online they're needing to interact with an app over their phone to get something you know remotely delivered or to schedule maybe um an appointment for their pet because you know a lot of people got pets during the pandemic and so you just saw this rush toward digitization and these new applications need to be created and so as customers move their application estate into the cloud with vmware cloud and aws they then had this need to modernize those applications to be able to deliver them faster to respond fast to the very dynamic nature of what was happening during the pandemic so let's talk about uh some of the opportunities and the advantages that vmware cloud with tanzania service is going to deliver to those it admins who have to deliver things even faster yep so let me talk a bit about the tech and then talk about how that fits into uh what the users will experience so vmware cloud with tons of services is really two key components uh the first of which is the tanzu kubernetes grid service the tkg service as we call it so what this is is actually a deep integration of tonsil kubernetes grid with vmware cloud and and the kubernetes we've actually integrated into vmware cloud foundation folks who are familiar with vmware may remember that a couple of years ago we announced project pacific which was a deep integration of kubernetes into vsphere essentially enabling vsphere to have a kubernetes interface to be natively kubernetes and what that did was it enabled the i.t admins to have direct insight inside of kubernetes clusters to understand what was happening in terms of the containers and pods that that their developers were running it also allowed them to leverage uh their existing vsphere and vmware cloud foundation tooling on those workloads so fast forward today we we have this built in now and what we're doing is actually offering that as a service so that the customer doesn't need to deal with managing it installing it updating any of that stuff instead they can just leverage it they can start creating kubernetes clusters and upstream conformant kubernetes clusters to allow their developers to take advantage of those capabilities but also be able to use their native tooling on it so i think that's really really important is that the it admin really can enable their developers to seamlessly start to build and operate modern applications on top of vmware cloud got it and talk to me about how this is going to empower those it admins to become kubernetes operators yeah well i think that's exactly it you know we talk to a lot of these admins and and they're seeing the desire for kubernetes uh from their lines of business from you know from the app teams and the idea is that when you look start looking at the kubernetes ecosystem there's a whole bunch of new tooling and technology out there we find that people have to spend a lot of time figuring out what the right thing to use is and for a lot of these folks they say hey i've already figured out how to operate applications in production i've got the tooling i've got the standardization i got things like security figured out right super important and so the real benefit of this approach and this deep integration is it allows them to take those those tools those operational best practices that they already have and now apply them to these new workloads fairly seamlessly and so this is really about the power of leveraging all the investments they've made to take those forward with modern applications and the total adjustable market here is pretty big i heard your cto referring to that in an interview in september and i was looking at some recent vmware survey numbers where 80 of customers say they're deploying applications in highly distributed environments that include their own data center multiple clouds uh edge and also customers said hey 90 of our application initiatives are focused on modernization so vmware clearly sees the big tam here yeah it's absolutely massive um you know we see uh many customers the vast majority something like 75 percent are using multiple clouds or on-prem in the cloud we have some customers using even more than that and you see this very large application estate that's spread out across this and so you know i think what we're really looking at is how do we enable uh the right sorts of consistency both from an infrastructure perspective enabling things like security but also management across all these environments and by the way it's another exciting thing neglected to mention about this announcement vmware cloud with tonsil services not only includes the tonsil kubernetes grid service giving you that sort of kubernetes uh cluster as a service if you will but it also includes tons of mission control essentials and this is really the next generation of management when you start looking at modern applications and what tons of mission control focuses on is enabling managing kubernetes consistently across clouds and so this is the other really important point is that yes we want to make vmware cloud vmware cloud infrastructure the best place to build and operate applications especially modern ones but we also realize that you know customers are doing all sorts of things right they're in the native cloud whether that's aws or azure or google and they want ways of managing more consistently across all these environments in addition to their vmware environments both in the cloud and on-prem and so tons of mission control really enables that as well and that's another really powerful aspect of this is that it's built in to enable that next level of administration and management that consistency is critical right i mean that's probably one of the biggest benefits that customers are getting is that familiarity with the console the consistency of being able to manage so that they can deploy apps faster um that as businesses are still pivoting and changing direction in light of the pandemics i imagine that that is a huge uh from a business outcomes perspective the workforce productivity there is probably pretty pretty big yeah and i think it's also about managing risk as well you know one of the the biggest worries that we hear from many of the cios uh ctos executives that we talk to at our customers is this uh software supply chain risk like what is it exactly like what are the exact bits that they're running out there right in their applications because the reality is that um those apps are composed of many open source technologies and you know as we saw with solarwinds it's very possible for someone to get in and you know plant malicious code into their source repository such that as it gets built and flows out it'll you know just go out and customers will start using it and it's a huge huge security vulnerability and one thing on that note that customers are particularly worried about is the lack of consistency across their cloud environments that because things are done different ways and the different teams have different processes across different clouds it's easy for small mistakes to creep in there for little openings right that a hacker might be able to go and exploit and so i think this gets back to that notion of consistency and that you're right it's great for productivity but the one i think that's almost in some ways you might say uh for many of these folks more important for is from a security standpoint that they can validate and ensure they're in compliance with their security standards and by the way you know this is uh for most companies a board level discussion right the board is saying hey like do we have the right controls in place because it is um such an important thing and such a critical risk factor it is a critical risk factor we saw you mentioned solar winds but just in the last 18 months the the massive changes to the threat landscape the huge rise in ransomware and ddos attacks you know we had this scatterer everybody went home and you've got you know the edge is booming and you've got folks using uh you know not using their vpns and things when they should be so that the fact that that's a board level discussion and that this is going to help from a risk mitigation perspective that consistency that you talked about is huge i think for a customer in any industry yep yeah and it's pretty interesting as well like you mentioned ransomware so we're doing some work on that one as well actually not specifically with this announcement but it's another vmware cloud service that plugs into this uh seamlessly vmware cloud disaster recovery and one of the really cool features that we're announcing at vmworld this week is the ability to actually support and and maybe uh handle ransomware attacks and so the idea there is that if you do get compromised and what typically happens is that the hackers come in and they encrypt you know some of your data and they say hey if you want to get access to it you got to pay us and we'll decrypt it for you but if you have the right dr solution um that's backing up on a fairly continuous basis it means that whatever data might be encrypted you know would only be a small delta like the last let's say hour or two of data right and so what we're looking at is leveraging that dr solution to be able to very rapidly restore specific individual files uh that may have been compromised and so this is like one way that we're helping customers deal with that like obviously we want to put a whole bunch of other security protections in place and we do when we enable them to do that but one thing when you think about security is that it's very much defense in depth that you have multiple layers of the fail-safes there and so this one being kind of like the end result that hackers do get in they do manage to compromise it they do manage to get a hold of it and encrypt it well you still got unencrypted backups that you control and that you have um a very clean delineation and separation from just like kind of an architectural standpoint that the hackers won't be able to get at right so that you can control that and restore it so again you know this is something very top of mind for us and it's funny because we don't always lead with the security angle maybe we should as i'm saying it here but uh but it's something that's very very top of mind for a lot of our customers it's something that's also top of mind for us and that we're focused on it is because it's no longer if we get attacked it's one and they've got to be able to have the right recovery strategy so that they don't have to pay those ransoms and of course we only hear about the big ones like the solar winds and the colonial pipelines and there's many more going on when i get back to vmware cloud with tanzania services talk to me about how this fits into vmware's bigger picture yeah yeah yeah great question thanks for bringing me back i'd love to geek out on some of these things so um but when you take a step back so what we're really doing uh with vmware cloud is trying to provide this really powerful infrastructure layer uh that is available anywhere customers want to run applications and that could be in the public cloud it could be in the data center it could be at the edge it could be at all those locations and you know you mentioned edge earlier and i think we're seeing explosive growth there as well and so what we're really doing is driving uh broad optionality in terms of how customers want to adopt these technologies and then as i said we're sort of you know we're kind of going broad many locations we're also building up in each of those locations this notion of ponzu services being seamlessly integrated in doing that uh you know starting now with vmware cloud aws but expanding that to every every location that we have in addition you know we're also really excited another thing we're announcing this week called project arctic now the idea with arctic is really to start driving more choice and flexibility into how customers consume vmware cloud do they consume it as software or as a service and where do they do that so traditionally the only way to get it delivered as a service would be in the public cloud right vmware cloud aws you can click a few buttons and you get a software defined data center set up for you automatically now traditionally on-prem we haven't had that we we did do something pretty powerful uh a year or two back with the release of vmware cloud on dell emc we can deliver a service there but that often required new hardware you know new setup for customers and customers are coming back to us and saying hey like we've got these really large vsphere deployments how do we enable them to take advantage of all this great vmware cloud functionality from where they are today right they say hey we can't rebuild all these overnight but we want to take advantage of vmware cloud today so that's what really what project arctic is focused on it's focused on connecting into these brownfield existing vsphere environments and delivering some of the vmware cloud benefits there things like being able to easily well first of all be able to manage those environments through the vmware cloud console so now you have one place where you can see your on-prem deployments your cloud deployments everything being able to really easily move uh applications between on-prem and the cloud leveraging some of the vmware cloud disaster recovery capabilities i just mentioned like the ransomware example you can now do that even on prem as well because keep in mind it's people aren't attacking you know the hackers aren't attacking just the public cloud they're attacking data centers or anywhere else where these applications might be running and so arctic's a great example of where we're saying hey there's a bunch of cool stuff happening here but let's really meet customers where they're at and many of our customers still have a very large data center footprint still want to maintain that that's really strategic for them or as i said may even want to be extending to the edge so it's really about giving them more of that flexibility so in terms of meeting customers where they are i know vmware has been focused on that for probably its entire history we talk about that on the cube in every vmworld where can customers go like what's the right starting point is this targeted for vmware cloud on aws current customers what's kind of the next steps for customers to learn more about this yeah absolutely so there's a bunch of different ways so first of all there's a tremendous amount of activity happening here at vmworld um just all sorts of breakout sessions like you know detailed demos like all sorts of really cool stuff just a ton of content i'm actually kind of i'm in this new role i'm super excited about it but one thing i'm kind of bummed out about is i don't have as much time to go look at all these cool sessions so i highly recommend going and checking those out um you know we have hands-on labs as well which is another great way to test out and try vmware products so hold.vmware.com uh you can go and spin those things up and just kind of take them for a test drive see what they're all about and then if you go to vmc.vmware.com that is vmware cloud right we want to make it very easy to get started whether you're in just a vsphere on-prem customer or whether you already have vmware cloud and aws what you can see is that it's really easy to get started in that there's a ton of value-add services on top of our core infrastructure so it's all about making it accessible making it easy and simple to consume and get started with so there's a ton of options out there and i highly recommend folks go and check out all the things i just mentioned excellent kit thank you for joining me today talking about vmware cloud with tons of services what's new what's exciting the opportunities in it for customers from the i.t admin folks to be empowered to be kubernetes operators to those businesses being able to do essential services in a changing environment and again congratulations on your promotion that's very exciting awesome thank you lisa thank you for having me our pleasure for kit colbert i'm lisa martin you're watching thecube's coverage of vmworld 2021 [Music] you

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

>> Hi, I'm Natalie Ehrlich and welcome to the AWS startup showcase presented by The Cube. We have an amazing lineup of great guests who will share their insights on the latest innovations and solutions and leveraging cloud scale data in AI, security and life sciences. And now we're joined by the co-founders and co-CEOs of The Cube, Dave Vellante and John Furrier. Thank you gentlemen for joining me. >> Hey Natalie. >> Hey Natalie. >> How are you doing. Hey John. >> Well, I'd love to get your insights here, let's kick it off and what are you looking forward to. >> Dave, I think one of the things that we've been doing on the cube for 11 years is looking at the signal in the marketplace. I wanted to focus on this because AI is cutting across all industries. So we're seeing that with cybersecurity and life sciences, it's the first time we've had a life sciences track in the showcase, which is amazing because it shows that growth of the cloud scale. So I'm super excited by that. And I think that's going to showcase some new business models and of course the keynotes Ali Ghodsi, who's the CEO Data bricks pushing a billion dollars in revenue, clear validation that startups can go from zero to a billion dollars in revenues. So that should be really interesting. And of course the top venture capitalists coming in to talk about what the enterprise dynamics are all about. And what about you, Dave? >> You know, I thought it was an interesting mix and choice of startups. When you think about, you know, AI security and healthcare, and I've been thinking about that. Healthcare is the perfect industry, it is ripe for disruption. If you think about healthcare, you know, we all complain how expensive it is not transparent. There's a lot of discussion about, you know, can everybody have equal access that certainly with COVID the staff is burned out. There's a real divergence and diversity of the quality of healthcare and you know, it all results in patients not being happy, and I mean, if you had to do an NPS score on the patients and healthcare will be pretty low, John, you know. So when I think about, you know, AI and security in the context of healthcare in cloud, I ask questions like when are machines going to be able to better meet or make better diagnoses than doctors? And that's starting. I mean, it's really in assistance putting into play today. But I think when you think about cheaper and more accurate image analysis, when you think about the overall patient experience and trust and personalized medicine, self-service, you know, remote medicine that we've seen during the COVID pandemic, disease tracking, language translation, I mean, there are so many things where the cloud and data, and then it can help. And then at the end of it, it's all about, okay, how do I authenticate? How do I deal with privacy and personal information and tamper resistance? And that's where the security play comes in. So it's a very interesting mix of startups. I think that I'm really looking forward to hearing from... >> You know Natalie one of the things we talked about, some of these companies, Dave, we've talked a lot of these companies and to me the business model innovations that are coming out of two factors, the pandemic is kind of coming to an end so that accelerated and really showed who had the right stuff in my opinion. So you were either on the wrong side or right side of history when it comes to the pandemic and as we look back, as we come out of it with clear growth in certain companies and certain companies that adopted let's say cloud. And the other one is cloud scale. So the focus of these startup showcases is really to focus on how startups can align with the enterprise buyers and create the new kind of refactoring business models to go from, you know, a re-pivot or refactoring to more value. And the other thing that's interesting is that the business model isn't just for the good guys. If you look at say ransomware, for instance, the business model of hackers is gone completely amazing too. They're kicking it but in terms of revenue, they have their own they're well-funded machines on how to extort cash from companies. So there's a lot of security issues around the business model as well. So to me, the business model innovation with cloud-scale tech, with the pandemic forcing function, you've seen a lot of new kinds of decision-making in enterprises. You seeing how enterprise buyers are changing their decision criteria, and frankly their existing suppliers. So if you're an old guard supplier, you're going to be potentially out because if you didn't deliver during the pandemic, this is the issue that everyone's talking about. And it's kind of not publicized in the press very much, but this is actually happening. >> Well thank you both very much for joining me to kick off our AWS startup showcase. Now we're going to go to our very special guest Ali Ghodsi and John Furrier will seat with him for a fireside chat and Dave and I will see you on the other side. >> Okay, Ali great to see you. Thanks for coming on our AWS startup showcase, our second edition, second batch, season two, whatever we want to call it it's our second version of this new series where we feature, you know, the hottest startups coming out of the AWS ecosystem. And you're one of them, I've been there, but you're not a startup anymore, you're here pushing serious success on the revenue side and company. Congratulations and great to see you. >> Likewise. Thank you so much, good to see you again. >> You know I remember the first time we chatted on The Cube, you weren't really doing much software revenue, you were really talking about the new revolution in data. And you were all in on cloud. And I will say that from day one, you were always adamant that it was cloud cloud scale before anyone was really talking about it. And at that time it was on premises with Hadoop and those kinds of things. You saw that early. I remember that conversation, boy, that bet paid out great. So congratulations. >> Thank you so much. >> So I've got to ask you to jump right in. Enterprises are making decisions differently now and you are an example of that company that has gone from literally zero software sales to pushing a billion dollars as it's being reported. Certainly the success of Data bricks has been written about, but what's not written about is the success of how you guys align with the changing criteria for the enterprise customer. Take us through that and these companies here are aligning the same thing and enterprises want to change. They want to be in the right side of history. What's the success formula? >> Yeah. I mean, basically what we always did was look a few years out, the how can we help these enterprises, future proof, what they're trying to achieve, right? They have, you know, 30 years of legacy software and, you know baggage, and they have compliance and regulations, how do we help them move to the future? So we try to identify those kinds of secular trends that we think are going to maybe you see them a little bit right now, cloud was one of them, but it gets more and more and more. So we identified those and there were sort of three or four of those that we kind of latched onto. And then every year the passes, we're a little bit more right. Cause it's a secular trend in the market. And then eventually, it becomes a force that you can't kind of fight anymore. >> Yeah. And I just want to put a plug for your clubhouse talks with Andreessen Horowitz. You're always on clubhouse talking about, you know, I won't say the killer instinct, but being a CEO in a time where there's so much change going on, you're constantly under pressure. It's a lonely job at the top, I know that, but you've made some good calls. What was some of the key moments that you can point to, where you were like, okay, the wave is coming in now, we'd better get on it. What were some of those key decisions? Cause a lot of these startups want to be in your position, and a lot of buyers want to take advantage of the technology that's coming. They got to figure it out. What was some of those key inflection points for you? >> So if you're just listening to what everybody's saying, you're going to miss those trends. So then you're just going with the stream. So, Juan you mentioned that cloud. Cloud was a thing at the time, we thought it's going to be the thing that takes over everything. Today it's actually multi-cloud. So multi-cloud is a thing, it's more and more people are thinking, wow, I'm paying a lot's to the cloud vendors, do I want to buy more from them or do I want to have some optionality? So that's one. Two, open. They're worried about lock-in, you know, lock-in has happened for many, many decades. So they want open architectures, open source, open standards. So that's the second one that we bet on. The third one, which you know, initially wasn't sort of super obvious was AI and machine learning. Now it's super obvious, everybody's talking about it. But when we started, it was kind of called artificial intelligence referred to robotics, and machine learning wasn't a term that people really knew about. Today, it's sort of, everybody's doing machine learning and AI. So betting on those future trends, those secular trends as we call them super critical. >> And one of the things that I want to get your thoughts on is this idea of re-platforming versus refactoring. You see a lot being talked about in some of these, what does that even mean? It's people trying to figure that out. Re-platforming I get the cloud scale. But as you look at the cloud benefits, what do you say to customers out there and enterprises that are trying to use the benefits of the cloud? Say data for instance, in the middle of how could they be thinking about refactoring? And how can they make a better selection on suppliers? I mean, how do you know it used to be RFP, you deliver these speeds and feeds and you get selected. Now I think there's a little bit different science and methodology behind it. What's your thoughts on this refactoring as a buyer? What do I got to do? >> Well, I mean let's start with you said RFP and so on. Times have changed. Back in the day, you had to kind of sign up for something and then much later you're going to get it. So then you have to go through this arduous process. In the cloud, would pay us to go model elasticity and so on. You can kind of try your way to it. You can try before you buy. And you can use more and more. You can gradually, you don't need to go in all in and you know, say we commit to 50,000,000 and six months later to find out that wow, this stuff has got shelf where it doesn't work. So that's one thing that has changed it's beneficial. But the second thing is, don't just mimic what you had on prem in the cloud. So that's what this refactoring is about. If you had, you know, Hadoop data lake, now you're just going to have an S3 data lake. If you had an on-prem data warehouse now you just going to have a cloud data warehouse. You're just repeating what you did on prem in the cloud, architected for the future. And you know, for us, the most important thing that we say is that this lake house paradigm is a cloud native way of organizing your data. That's different from how you would do things on premises. So think through what's the right way of doing it in the cloud. Don't just try to copy paste what you had on premises in the cloud. >> It's interesting one of the things that we're observing and I'd love to get your reaction to this. Dave a lot** and I have been reporting on it is, two personas in the enterprise are changing their organization. One is I call IT ops or there's an SRE role developing. And the data teams are being dismantled and being kind of sprinkled through into other teams is this notion of data, pipelining being part of workflows, not just the department. Are you seeing organizational shifts in how people are organizing their resources, their human resources to take advantage of say that the data problems that are need to being solved with machine learning and whatnot and cloud-scale? >> Yeah, absolutely. So you're right. SRE became a thing, lots of DevOps people. It was because when the cloud vendors launched their infrastructure as a service to stitch all these things together and get it all working you needed a lot of devOps people. But now things are maturing. So, you know, with vendors like Data bricks and other multi-cloud vendors, you can actually get much higher level services where you don't need to necessarily have lots of lots of DevOps people that are themselves trying to stitch together lots of services to make this work. So that's one trend. But secondly, you're seeing more data teams being sort of completely ubiquitous in these organizations. Before it used to be you have one data team and then we'll have data and AI and we'll be done. ' It's a one and done. But that's not how it works. That's not how Google, Facebook, Twitter did it, they had data throughout the organization. Every BU was empowered. It's sales, it's marketing, it's finance, it's engineering. So how do you embed all those data teams and make them actually run fast? And you know, there's this concept of a data mesh which is super important where you can actually decentralize and enable all these teams to focus on their domains and run super fast. And that's really enabled by this Lake house paradigm in the cloud that we're talking about. Where you're open, you're basing it on open standards. You have flexibility in the data types and how they're going to store their data. So you kind of provide a lot of that flexibility, but at the same time, you have sort of centralized governance for it. So absolutely things are changing in the market. >> Well, you're just the professor, the masterclass right here is amazing. Thanks for sharing that insight. You're always got to go out of date and that's why we have you on here. You're amazing, great resource for the community. Ransomware is a huge problem, it's now the government's focus. We're being attacked and we don't know where it's coming from. This business models around cyber that's expanding rapidly. There's real revenue behind it. There's a data problem. It's not just a security problem. So one of the themes in all of these startup showcases is data is ubiquitous in the value propositions. One of them is ransomware. What's your thoughts on ransomware? Is it a data problem? Does cloud help? Some are saying that cloud's got better security with ransomware, then say on premise. What's your vision of how you see this ransomware problem being addressed besides the government taking over? >> Yeah, that's a great question. Let me start by saying, you know, we're a data company, right? And if you say you're a data company, you might as well just said, we're a privacy company, right? It's like some people say, well, what do you think about privacy? Do you guys even do privacy? We're a data company. So yeah, we're a privacy company as well. Like you can't talk about data without talking about privacy. With every customer, with every enterprise. So that's obviously top of mind for us. I do think that in the cloud, security is much better because, you know, vendors like us, we're investing so much resources into security and making sure that we harden the infrastructure and, you know, by actually having all of this infrastructure, we can monitor it, detect if something is, you know, an attack is happening, and we can immediately sort of stop it. So that's different from when it's on prem, you have kind of like the separated duties where the software vendor, which would have been us, doesn't really see what's happening in the data center. So, you know, there's an IT team that didn't develop the software is responsible for the security. So I think things are much better now. I think we're much better set up, but of course, things like cryptocurrencies and so on are making it easier for people to sort of hide. There decentralized networks. So, you know, the attackers are getting more and more sophisticated as well. So that's definitely something that's super important. It's super top of mind. We're all investing heavily into security and privacy because, you know, that's going to be super critical going forward. >> Yeah, we got to move that red line, and figure that out and get more intelligence. Decentralized trends not going away it's going to be more of that, less of the centralized. But centralized does come into play with data. It's a mix, it's not mutually exclusive. And I'll get your thoughts on this. Architectural question with, you know, 5G and the edge coming. Amazon's got that outpost stringent, the wavelength, you're seeing mobile world Congress coming up in this month. The focus on processing data at the edge is a huge issue. And enterprises are now going to be commercial part of that. So architecture decisions are being made in enterprises right now. And this is a big issue. So you mentioned multi-cloud, so tools versus platforms. Now I'm an enterprise buyer and there's no more RFPs. I got all this new choices for startups and growing companies to choose from that are cloud native. I got all kinds of new challenges and opportunities. How do I build my architecture so I don't foreclose a future opportunity. >> Yeah, as I said, look, you're actually right. Cloud is becoming even more and more something that everybody's adopting, but at the same time, there is this thing that the edge is also more and more important. And the connectivity between those two and making sure that you can really do that efficiently. My ask from enterprises, and I think this is top of mind for all the enterprise architects is, choose open because that way you can avoid locking yourself in. So that's one thing that's really, really important. In the past, you know, all these vendors that locked you in, and then you try to move off of them, they were highly innovative back in the day. In the 80's and the 90's, there were the best companies. You gave them all your data and it was fantastic. But then because you were locked in, they didn't need to innovate anymore. And you know, they focused on margins instead. And then over time, the innovation stopped and now you were kind of locked in. So I think openness is really important. I think preserving optionality with multi-cloud because we see the different clouds have different strengths and weaknesses and it changes over time. All right. Early on AWS was the only game that either showed up with much better security, active directory, and so on. Now Google with AI capabilities, which one's going to win, which one's going to be better. Actually, probably all three are going to be around. So having that optionality that you can pick between the three and then artificial intelligence. I think that's going to be the key to the future. You know, you asked about security earlier. That's how people detect zero day attacks, right? You ask about the edge, same thing there, that's where the predictions are going to happen. So make sure that you invest in AI and artificial intelligence very early on because it's not something you can just bolt on later on and have a little data team somewhere that then now you have AI and it's one and done. >> All right. Great insight. I've got to ask you, the folks may or may not know, but you're a professor at Berkeley as well, done a lot of great work. That's where you kind of came out of when Data bricks was formed. And the Berkeley basically was it invented distributed computing back in the 80's. I remember I was breaking in when Unix was proprietary, when software wasn't open you actually had the deal that under the table to get code. Now it's all open. Isn't the internet now with distributed computing and how interconnects are happening. I mean, the internet didn't break during the pandemic, which proves the benefit of the internet. And that's a positive. But as you start seeing edge, it's essentially distributed computing. So I got to ask you from a computer science standpoint. What do you see as the key learnings or connect the dots for how this distributed model will work? I see hybrids clearly, hybrid cloud is clearly the operating model but if you take it to the next level of distributed computing, what are some of the key things that you look for in the next five years as this starts to be completely interoperable, obviously software is going to drive a lot of it. What's your vision on that? >> Yeah, I mean, you know, so Berkeley, you're right for the gigs, you know, there was a now project 20, 30 years ago that basically is how we do things. There was a project on how you search in the very early on with Inktomi that became how Google and everybody else to search today. So workday was super, super early, sometimes way too early. And that was actually the mistake. Was that they were so early that people said that that stuff doesn't work. And then 20 years later you were invented. So I think 2009, Berkeley published just above the clouds saying the cloud is the future. At that time, most industry leaders said, that's just, you know, that doesn't work. Today, recently they published a research paper called, Sky Computing. So sky computing is what you get above the clouds, right? So we have the cloud as the future, the next level after that is the sky. That's one on top of them. That's what multi-cloud is. So that's a lot of the research at Berkeley, you know, into distributed systems labs is about this. And we're excited about that. Then we're one of the sky computing vendors out there. So I think you're going to see much more innovation happening at the sky level than at the compute level where you needed all those DevOps and SRE people to like, you know, build everything manually themselves. I can just see the memes now coming Ali, sky net, star track. You've got space too, by the way, space is another frontier that is seeing a lot of action going on because now the surface area of data with satellites is huge. So again, I know you guys are doing a lot of business with folks in that vertical where you starting to see real time data acquisition coming from these satellites. What's your take on the whole space as the, not the final frontier, but certainly as a new congested and contested space for, for data? >> Well, I mean, as a data vendor, we see a lot of, you know, alternative data sources coming in and people aren't using machine learning< AI to eat out signal out of the, you know, massive amounts of imagery that's coming out of these satellites. So that's actually a pretty common in FinTech, which is a vertical for us. And also sort of in the public sector, lots of, lots of, lots of satellites, imagery data that's coming. And these are massive volumes. I mean, it's like huge data sets and it's a super, super exciting what they can do. Like, you know, extracting signal from the satellite imagery is, and you know, being able to handle that amount of data, it's a challenge for all the companies that we work with. So we're excited about that too. I mean, definitely that's a trend that's going to continue. >> All right. I'm super excited for you. And thanks for coming on The Cube here for our keynote. I got to ask you a final question. As you think about the future, I see your company has achieved great success in a very short time, and again, you guys done the work, I've been following your company as you know. We've been been breaking that Data bricks story for a long time. I've been excited by it, but now what's changed. You got to start thinking about the next 20 miles stair when you look at, you know, the sky computing, you're thinking about these new architectures. As the CEO, your job is to one, not run out of money which you don't have to worry about that anymore, so hiring. And then, you got to figure out that next 20 miles stair as a company. What's that going on in your mind? Take us through your mindset of what's next. And what do you see out in that landscape? >> Yeah, so what I mentioned around Sky company optionality around multi-cloud, you're going to see a lot of capabilities around that. Like how do you get multi-cloud disaster recovery? How do you leverage the best of all the clouds while at the same time not having to just pick one? So there's a lot of innovation there that, you know, we haven't announced yet, but you're going to see a lot of it over the next many years. Things that you can do when you have the optionality across the different parts. And the second thing that's really exciting for us is bringing AI to the masses. Democratizing data and AI. So how can you actually apply machine learning to machine learning? How can you automate machine learning? Today machine learning is still quite complicated and it's pretty advanced. It's not going to be that way 10 years from now. It's going to be very simple. Everybody's going to have it at their fingertips. So how do we apply machine learning to machine learning? It's called auto ML, automatic, you know, machine learning. So that's an area, and that's not something that can be done with, right? But the goal is to eventually be able to automate a way the whole machine learning engineer and the machine learning data scientist altogether. >> You know it's really fun and talking with you is that, you know, for years we've been talking about this inside the ropes, inside the industry, around the future. Now people starting to get some visibility, the pandemics forced that. You seeing the bad projects being exposed. It's like the tide pulled out and you see all the scabs and bad projects that were justified old guard technologies. If you get it right you're on a good wave. And this is clearly what we're seeing. And you guys example of that. So as enterprises realize this, that they're going to have to look double down on the right projects and probably trash the bad projects, new criteria, how should people be thinking about buying? Because again, we talked about the RFP before. I want to kind of circle back because this is something that people are trying to figure out. You seeing, you know, organic, you come in freemium models as cloud scale becomes the advantage in the lock-in frankly seems to be the value proposition. The more value you provide, the more lock-in you get. Which sounds like that's the way it should be versus proprietary, you know, protocols. The protocol is value. How should enterprises organize their teams? Is it end to end workflows? Is it, and how should they evaluate the criteria for these technologies that they want to buy? >> Yeah, that's a great question. So I, you know, it's very simple, try to future proof your decision-making. Make sure that whatever you're doing is not blocking your in. So whatever decision you're making, what if the world changes in five years, make sure that if you making a mistake now, that's not going to bite you in about five years later. So how do you do that? Well, open source is great. If you're leveraging open-source, you can try it out already. You don't even need to talk to any vendor. Your teams can already download it and try it out and get some value out of it. If you're in the cloud, this pay as you go models, you don't have to do a big RFP and commit big. You can try it, pay the vendor, pay as you go, $10, $15. It doesn't need to be a million dollar contract and slowly grow as you're providing value. And then make sure that you're not just locking yourself in to one cloud or, you know, one particular vendor. As much as possible preserve your optionality because then that's not a one-way door. If it turns out later you want to do something else, you can, you know, pick other things as well. You're not locked in. So that's what I would say. Keep that top of mind that you're not locking yourself into a particular decision that you made today, that you might regret in five years. >> I really appreciate you coming on and sharing your with our community and The Cube. And as always great to see you. I really enjoy your clubhouse talks, and I really appreciate how you give back to the community. And I want to thank you for coming on and taking the time with us today. >> Thanks John, always appreciate talking to you. >> Okay Ali Ghodsi, CEO of Data bricks, a success story that proves the validation of cloud scale, open and create value, values the new lock-in. So Natalie, back to you for continuing coverage. >> That was a terrific interview John, but I'd love to get Dave's insights first. What were your takeaways, Dave? >> Well, if we have more time I'll tell you how Data bricks got to where they are today, but I'll say this, the most important thing to me that Allie said was he conveyed a very clear understanding of what data companies are outright and are getting ready. Talked about four things. There's not one data team, there's many data teams. And he talked about data is decentralized, and data has to have context and that context lives in the business. He said, look, think about it. The way that the data companies would get it right, they get data in teams and sales and marketing and finance and engineering. They all have their own data and data teams. And he referred to that as a data mesh. That's a term that is your mock, the Gany coined and the warehouse of the data lake it's merely a node in that global message. It meshes discoverable, he talked about federated governance, and Data bricks, they're breaking the model of shoving everything into a single repository and trying to make that the so-called single version of the truth. Rather what they're doing, which is right on is putting data in the hands of the business owners. And that's how true data companies do. And the last thing you talked about with sky computing, which I loved, it's that future layer, we talked about multi-cloud a lot that abstracts the underlying complexity of the technical details of the cloud and creates additional value on top. I always say that the cloud players like Amazon have given the gift to the world of 100 billion dollars a year they spend in CapEx. Thank you. Now we're going to innovate on top of it. Yeah. And I think the refactoring... >> Hope by John. >> That was great insight and I totally agree. The refactoring piece too was key, he brought that home. But to me, I think Data bricks that Ali shared there and why he's been open and sharing a lot of his insights and the community. But what he's not saying, cause he's humble and polite is they cracked the code on the enterprise, Dave. And to Dave's points exactly reason why they did it, they saw an opportunity to make it easier, at that time had dupe was the rage, and they just made it easier. They was smart, they made good bets, they had a good formula and they cracked the code with the enterprise. They brought it in and they brought value. And see that's the key to the cloud as Dave pointed out. You get replatform with the cloud, then you refactor. And I think he pointed out the multi-cloud and that really kind of teases out the whole future and landscape, which is essentially distributed computing. And I think, you know, companies are starting to figure that out with hybrid and this on premises and now super edge I call it, with 5G coming. So it's just pretty incredible. >> Yeah. Data bricks, IPO is coming and people should know. I mean, what everybody, they created spark as you know John and everybody thought they were going to do is mimic red hat and sell subscriptions and support. They didn't, they developed a managed service and they embedded AI tools to simplify data science. So to your point, enterprises could buy instead of build, we know this. Enterprises will spend money to make things simpler. They don't have the resources, and so this was what they got right was really embedding that, making a building a managed service, not mimicking the kind of the red hat model, but actually creating a new value layer there. And that's big part of their success. >> If I could just add one thing Natalie to that Dave saying is really right on. And as an enterprise buyer, if we go the other side of the equation, it used to be that you had to be a known company, get PR, you fill out RFPs, you had to meet all the speeds. It's like going to the airport and get a swab test, and get a COVID test and all kinds of mechanisms to like block you and filter you. Most of the biggest success stories that have created the most value for enterprises have been the companies that nobody's understood. And Andy Jazz's famous quote of, you know, being misunderstood is actually a good thing. Data bricks was very misunderstood at the beginning and no one kind of knew who they were but they did it right. And so the enterprise buyers out there, don't be afraid to test the startups because you know the next Data bricks is out there. And I think that's where I see the psychology changing from the old IT buyers, Dave. It's like, okay, let's let's test this company. And there's plenty of ways to do that. He illuminated those premium, small pilots, you don't need to go on these big things. So I think that is going to be a shift in how companies going to evaluate startups. >> Yeah. Think about it this way. Why should the large banks and insurance companies and big manufacturers and pharma companies, governments, why should they burn resources managing containers and figuring out data science tools if they can just tap into solutions like Data bricks which is an AI platform in the cloud and let the experts manage all that stuff. Think about how much money in time that saves enterprises. >> Yeah, I mean, we've got 15 companies here we're showcasing this batch and this season if you call it. That episode we are going to call it? They're awesome. Right? And the next 15 will be the same. And these companies could be the next billion dollar revenue generator because the cloud enables that day. I think that's the exciting part. >> Well thank you both so much for these insights. Really appreciate it. AWS startup showcase highlights the innovation that helps startups succeed. And no one knows that better than our very next guest, Jeff Barr. Welcome to the show and I will send this interview now to Dave and John and see you just in the bit. >> Okay, hey Jeff, great to see you. Thanks for coming on again. >> Great to be back. >> So this is a regular community segment with Jeff Barr who's a legend in the industry. Everyone knows your name. Everyone knows that. Congratulations on your recent blog posts we have reading. Tons of news, I want to get your update because 5G has been all over the news, mobile world congress is right around the corner. I know Bill Vass was a keynote out there, virtual keynote. There's a lot of Amazon discussion around the edge with wavelength. Specifically, this is the outpost piece. And I know there is news I want to get to, but the top of mind is there's massive Amazon expansion and the cloud is going to the edge, it's here. What's up with wavelength. Take us through the, I call it the power edge, the super edge. >> Well, I'm really excited about this mostly because it gives a lot more choice and flexibility and options to our customers. This idea that with wavelength we announced quite some time ago, at least quite some time ago if we think in cloud years. We announced that we would be working with 5G providers all over the world to basically put AWS in the telecom providers data centers or telecom centers, so that as their customers build apps, that those apps would take advantage of the low latency, the high bandwidth, the reliability of 5G, be able to get to some compute and storage services that are incredibly close geographically and latency wise to the compute and storage that is just going to give customers this new power and say, well, what are the cool things we can build? >> Do you see any correlation between wavelength and some of the early Amazon services? Because to me, my gut feels like there's so much headroom there. I mean, I was just riffing on the notion of low latency packets. I mean, just think about the applications, gaming and VR, and metaverse kind of cool stuff like that where having the edge be that how much power there. It just feels like a new, it feels like a new AWS. I mean, what's your take? You've seen the evolutions and the growth of a lot of the key services. Like EC2 and SA3. >> So welcome to my life. And so to me, the way I always think about this is it's like when I go to a home improvement store and I wander through the aisles and I often wonder through with no particular thing that I actually need, but I just go there and say, wow, they've got this and they've got this, they've got this other interesting thing. And I just let my creativity run wild. And instead of trying to solve a problem, I'm saying, well, if I had these different parts, well, what could I actually build with them? And I really think that this breadth of different services and locations and options and communication technologies. I suspect a lot of our customers and customers to be and are in this the same mode where they're saying, I've got all this awesomeness at my fingertips, what might I be able to do with it? >> He reminds me when Fry's was around in Palo Alto, that store is no longer here but it used to be back in the day when it was good. It was you go in and just kind of spend hours and then next thing you know, you built a compute. Like what, I didn't come in here, whether it gets some cables. Now I got a motherboard. >> I clearly remember Fry's and before that there was the weird stuff warehouse was another really cool place to hang out if you remember that. >> Yeah I do. >> I wonder if I could jump in and you guys talking about the edge and Jeff I wanted to ask you about something that is, I think people are starting to really understand and appreciate what you did with the entrepreneur acquisition, what you do with nitro and graviton, and really driving costs down, driving performance up. I mean, there's like a compute Renaissance. And I wonder if you could talk about the importance of that at the edge, because it's got to be low power, it has to be low cost. You got to be doing processing at the edge. What's your take on how that's evolving? >> Certainly so you're totally right that we started working with and then ultimately acquired Annapurna labs in Israel a couple of years ago. I've worked directly with those folks and it's really awesome to see what they've been able to do. Just really saying, let's look at all of these different aspects of building the cloud that were once effectively kind of somewhat software intensive and say, where does it make sense to actually design build fabricate, deploy custom Silicon? So from putting up the system to doing all kinds of additional kinds of security checks, to running local IO devices, running the NBME as fast as possible to support the EBS. Each of those things has been a contributing factor to not just the power of the hardware itself, but what I'm seeing and have seen for the last probably two or three years at this point is the pace of innovation on instance types just continues to get faster and faster. And it's not just cranking out new instance types because we can, it's because our awesomely diverse base of customers keeps coming to us and saying, well, we're happy with what we have so far, but here's this really interesting new use case. And we needed a different ratio of memory to CPU, or we need more cores based on the amount of memory, or we needed a lot of IO bandwidth. And having that nitro as the base lets us really, I don't want to say plug and play, cause I haven't actually built this myself, but it seems like they can actually put the different elements together, very very quickly and then come up with new instance types that just our customers say, yeah, that's exactly what I asked for and be able to just do this entire range of from like micro and nano sized all the way up to incredibly large with incredible just to me like, when we talk about terabytes of memory that are just like actually just RAM memory. It's like, that's just an inconceivably large number by the standards of where I started out in my career. So it's all putting this power in customer hands. >> You used the term plug and play, but it does give you that nitro gives you that optionality. And then other thing that to me is really exciting is the way in which ISVs are writing to whatever's underneath. So you're making that, you know, transparent to the users so I can choose as a customer, the best price performance for my workload and that that's just going to grow that ISV portfolio. >> I think it's really important to be accurate and detailed and as thorough as possible as we launch each one of these new instance types with like what kind of processor is in there and what clock speed does it run at? What kind of, you know, how much memory do we have? What are the, just the ins and outs, and is it Intel or arm or AMD based? It's such an interesting to me contrast. I can still remember back in the very very early days of back, you know, going back almost 15 years at this point and effectively everybody said, well, not everybody. A few people looked and said, yeah, we kind of get the value here. Some people said, this just sounds like a bunch of generic hardware, just kind of generic hardware in Iraq. And even back then it was something that we were very careful with to design and optimize for use cases. But this idea that is generic is so, so, so incredibly inaccurate that I think people are now getting this. And it's okay. It's fine too, not just for the cloud, but for very specific kinds of workloads and use cases. >> And you guys have announced obviously the performance improvements on a lamb** does getting faster, you got the per billing, second billings on windows and SQL server on ECE too**. So I mean, obviously everyone kind of gets that, that's been your DNA, keep making it faster, cheaper, better, easier to use. But the other area I want to get your thoughts on because this is also more on the footprint side, is that the regions and local regions. So you've got more region news, take us through the update on the expansion on the footprint of AWS because you know, a startup can come in and these 15 companies that are here, they're global with AWS, right? So this is a major benefit for customers around the world. And you know, Ali from Data bricks mentioned privacy. Everyone's a privacy company now. So the huge issue, take us through the news on the region. >> Sure, so the two most recent regions that we announced are in the UAE and in Israel. And we generally like to pre-announce these anywhere from six months to two years at a time because we do know that the customers want to start making longer term plans to where they can start thinking about where they can do their computing, where they can store their data. I think at this point we now have seven regions under construction. And, again it's all about customer trice. Sometimes it's because they have very specific reasons where for based on local laws, based on national laws, that they must compute and restore within a particular geographic area. Other times I say, well, a lot of our customers are in this part of the world. Why don't we pick a region that is as close to that part of the world as possible. And one really important thing that I always like to remind our customers of in my audience is, anything that you choose to put in a region, stays in that region unless you very explicitly take an action that says I'd like to replicate it somewhere else. So if someone says, I want to store data in the US, or I want to store it in Frankfurt, or I want to store it in Sao Paulo, or I want to store it in Tokyo or Osaka. They get to make that very specific choice. We give them a lot of tools to help copy and replicate and do cross region operations of various sorts. But at the heart, the customer gets to choose those locations. And that in the early days I think there was this weird sense that you would, you'd put things in the cloud that would just mysteriously just kind of propagate all over the world. That's never been true, and we're very very clear on that. And I just always like to reinforce that point. >> That's great stuff, Jeff. Great to have you on again as a regular update here, just for the folks watching and don't know Jeff he'd been blogging and sharing. He'd been the one man media band for Amazon it's early days. Now he's got departments, he's got peoples on doing videos. It's an immediate franchise in and of itself, but without your rough days we wouldn't have gotten all the great news we subscribe to. We watch all the blog posts. It's essentially the flow coming out of AWS which is just a tsunami of a new announcements. Always great to read, must read. Jeff, thanks for coming on, really appreciate it. That's great. >> Thank you John, great to catch up as always. >> Jeff Barr with AWS again, and follow his stuff. He's got a great audience and community. They talk back, they collaborate and they're highly engaged. So check out Jeff's blog and his social presence. All right, Natalie, back to you for more coverage. >> Terrific. Well, did you guys know that Jeff took a three week AWS road trip across 15 cities in America to meet with cloud computing enthusiasts? 5,500 miles he drove, really incredible I didn't realize that. Let's unpack that interview though. What stood out to you John? >> I think Jeff, Barr's an example of what I call direct to audience a business model. He's been doing it from the beginning and I've been following his career. I remember back in the day when Amazon was started, he was always building stuff. He's a builder, he's classic. And he's been there from the beginning. At the beginning he was just the blog and it became a huge audience. It's now morphed into, he was power blogging so hard. He has now support and he still does it now. It's basically the conduit for information coming out of Amazon. I think Jeff has single-handedly made Amazon so successful at the community developer level, and that's the startup action happened and that got them going. And I think he deserves a lot of the success for AWS. >> And Dave, how about you? What is your reaction? >> Well I think you know, and everybody knows about the cloud and back stop X** and agility, and you know, eliminating the undifferentiated, heavy lifting and all that stuff. And one of the things that's often overlooked which is why I'm excited to be part of this program is the innovation. And the innovation comes from startups, and startups start in the cloud. And so I think that that's part of the flywheel effect. You just don't see a lot of startups these days saying, okay, I'm going to do something that's outside of the cloud. There are some, but for the most part, you know, if you saw in software, you're starting in the cloud, it's so capital efficient. I think that's one thing, I've throughout my career. I've been obsessed with every part of the stack from whether it's, you know, close to the business process with the applications. And right now I'm really obsessed with the plumbing, which is why I was excited to talk about, you know, the Annapurna acquisition. Amazon bought and a part of the $350 million, it's reported, you know, maybe a little bit more, but that isn't an amazing acquisition. And the reason why that's so important is because Amazon is continuing to drive costs down, drive performance up. And in my opinion, leaving a lot of the traditional players in their dust, especially when it comes to the power and cooling. You have often overlooked things. And the other piece of the interview was that Amazon is actually getting ISVs to write to these new platforms so that you don't have to worry about there's the software run on this chip or that chip, or x86 or arm or whatever it is. It runs. And so I can choose the best price performance. And that's where people don't, they misunderstand, you always say it John, just said that people are misunderstood. I think they misunderstand, they confused, you know, the price of the cloud with the cost of the cloud. They ignore all the labor costs that are associated with that. And so, you know, there's a lot of discussion now about the cloud tax. I just think the pace is accelerating. The gap is not closing, it's widening. >> If you look at the one question I asked them about wavelength and I had a follow up there when I said, you know, we riff on it and you see, he lit up like he beam was beaming because he said something interesting. It's not that there's a problem to solve at this opportunity. And he conveyed it to like I said, walking through Fry's. But like, you go into a store and he's a builder. So he sees opportunity. And this comes back down to the Martine Casada paradox posts he wrote about do you optimize for CapEx or future revenue? And I think the tell sign is at the wavelength edge piece is going to be so creative and that's going to open up massive opportunities. I think that's the place to watch. That's the place I'm watching. And I think startups going to come out of the woodwork because that's where the action will be. And that's just Amazon at the edge, I mean, that's just cloud at the edge. I think that is going to be very effective. And his that's a little TeleSign, he kind of revealed a little bit there, a lot there with that comment. >> Well that's a to be continued conversation. >> Indeed, I would love to introduce our next guest. We actually have Soma on the line. He's the managing director at Madrona venture group. Thank you Soma very much for coming for our keynote program. >> Thank you Natalie and I'm great to be here and will have the opportunity to spend some time with you all. >> Well, you have a long to nerd history in the enterprise. How would you define the modern enterprise also known as cloud scale? >> Yeah, so I would say I have, first of all, like, you know, we've all heard this now for the last, you know, say 10 years or so. Like, software is eating the world. Okay. Put it another way, we think about like, hey, every enterprise is a software company first and foremost. Okay. And companies that truly internalize that, that truly think about that, and truly act that way are going to start up, continue running well and things that don't internalize that, and don't do that are going to be left behind sooner than later. Right. And the last few years you start off thing and not take it to the next level and talk about like, not every enterprise is not going through a digital transformation. Okay. So when you sort of think about the world from that lens. Okay. Modern enterprise has to think about like, and I am first and foremost, a technology company. I may be in the business of making a car art, you know, manufacturing paper, or like you know, manufacturing some healthcare products or what have you got out there. But technology and software is what is going to give me a unique, differentiated advantage that's going to let me do what I need to do for my customers in the best possible way [Indistinct]. So that sort of level of focus, level of execution, has to be there in a modern enterprise. The other thing is like not every modern enterprise needs to think about regular. I'm competing for talent, not anymore with my peers in my industry. I'm competing for technology talent and software talent with the top five technology companies in the world. Whether it is Amazon or Facebook or Microsoft or Google, or what have you cannot think, right? So you really have to have that mindset, and then everything flows from that. >> So I got to ask you on the enterprise side again, you've seen many ways of innovation. You've got, you know, been in the industry for many, many years. The old way was enterprises want the best proven product and the startups want that lucrative contract. Right? Yeah. And get that beach in. And it used to be, and we addressed this in our earlier keynote with Ali and how it's changing, the buyers are changing because the cloud has enabled this new kind of execution. I call it agile, call it what you want. Developers are driving modern applications, so enterprises are still, there's no, the playbooks evolving. Right? So we see that with the pandemic, people had needs, urgent needs, and they tried new stuff and it worked. The parachute opened as they say. So how do you look at this as you look at stars, you're investing in and you're coaching them. What's the playbook? What's the secret sauce of how to crack the enterprise code today. And if you're an enterprise buyer, what do I need to do? I want to be more agile. Is there a clear path? Is there's a TSA to let stuff go through faster? I mean, what is the modern playbook for buying and being a supplier? >> That's a fantastic question, John, because I think that sort of playbook is changing, even as we speak here currently. A couple of key things to understand first of all is like, you know, decision-making inside an enterprise is getting more and more de-centralized. Particularly decisions around what technology to use and what solutions to use to be able to do what people need to do. That decision making is no longer sort of, you know, all done like the CEO's office or the CTO's office kind of thing. Developers are more and more like you rightly said, like sort of the central of the workflow and the decision making process. So it'll be who both the enterprises, as well as the startups to really understand that. So what does it mean now from a startup perspective, from a startup perspective, it means like, right. In addition to thinking about like hey, not do I go create an enterprise sales post, do I sell to the enterprise like what I might have done in the past? Is that the best way of moving forward, or should I be thinking about a product led growth go to market initiative? You know, build a product that is easy to use, that made self serve really works, you know, get the developers to start using to see the value to fall in love with the product and then you think about like hey, how do I go translate that into a contract with enterprise. Right? And more and more what I call particularly, you know, startups and technology companies that are focused on the developer audience are thinking about like, you know, how do I have a bottom up go to market motion? And sometime I may sort of, you know, overlap that with the top down enterprise sales motion that we know that has been going on for many, many years or decades kind of thing. But really this product led growth bottom up a go to market motion is something that we are seeing on the rise. I would say they're going to have more than half the startup that we come across today, have that in some way shape or form. And so the enterprise also needs to understand this, the CIO or the CTO needs to know that like hey, I'm not decision-making is getting de-centralized. I need to empower my engineers and my engineering managers and my engineering leaders to be able to make the right decision and trust them. I'm going to give them some guard rails so that I don't find myself in a soup, you know, sometime down the road. But once I give them the guard rails, I'm going to enable people to make the decisions. People who are closer to the problem, to make the right decision. >> Well Soma, what are some of the ways that startups can accelerate their enterprise penetration? >> I think that's another good question. First of all, you need to think about like, Hey, what are enterprises wanting to rec? Okay. If you start off take like two steps back and think about what the enterprise is really think about it going. I'm a software company, but I'm really manufacturing paper. What do I do? Right? The core thing that most enterprises care about is like, hey, how do I better engage with my customers? How do I better serve my customers? And how do I do it in the most optimal way? At the end of the day that's what like most enterprises really care about. So startups need to understand, what are the problems that the enterprise is trying to solve? What kind of tools and platform technologies and infrastructure support, and, you know, everything else that they need to be able to do what they need to do and what only they can do in the most optimal way. Right? So to the extent you are providing either a tool or platform or some technology that is going to enable your enterprise to make progress on what they want to do, you're going to get more traction within the enterprise. In other words, stop thinking about technology, and start thinking about the customer problem that they want to solve. And the more you anchor your company, and more you anchor your conversation with the customer around that, the more the enterprise is going to get excited about wanting to work with you. >> So I got to ask you on the enterprise and developer equation because CSOs and CXOs, depending who you talk to have that same answer. Oh yeah. In the 90's and 2000's, we kind of didn't, we throttled down, we were using the legacy developer tools and cloud came and then we had to rebuild and we didn't really know what to do. So you seeing a shift, and this is kind of been going on for at least the past five to eight years, a lot more developers being hired yet. I mean, at FinTech is clearly a vertical, they always had developers and everyone had developers, but there's a fast ramp up of developers now and the role of open source has changed. Just looking at the participation. They're not just consuming open source, open source is part of the business model for mainstream enterprises. How is this, first of all, do you agree? And if so, how has this changed the course of an enterprise human resource selection? How they're organized? What's your vision on that? >> Yeah. So as I mentioned earlier, John, in my mind the first thing is, and this sort of, you know, like you said financial services has always been sort of hiring people [Indistinct]. And this is like five-year old story. So bear with me I'll tell you the firewall story and then come to I was trying to, the cloud CIO or the Goldman Sachs. Okay. And this is five years ago when people were still like, hey, is this cloud thing real and now is cloud going to take over the world? You know, am I really ready to put my data in the cloud? So there are a lot of questions and conversations can affect. The CIO of Goldman Sachs told me two things that I remember to this day. One is, hey, we've got a internal edict. That we made a decision that in the next five years, everything in Goldman Sachs is going to be on the public law. And I literally jumped out of the chair and I said like now are you going to get there? And then he laughed and said like now it really doesn't matter whether we get there or not. We want to set the tone, set the direction for the organization that hey, public cloud is here. Public cloud is there. And we need to like, you know, move as fast as we realistically can and think about all the financial regulations and security and privacy. And all these things that we care about deeply. But given all of that, the world is going towards public load and we better be on the leading edge as opposed to the lagging edge. And the second thing he said, like we're talking about like hey, how are you hiring, you know, engineers at Goldman Sachs Canada? And he said like in hey, I sort of, my team goes out to the top 20 schools in the US. And the people we really compete with are, and he was saying this, Hey, we don't compete with JP Morgan or Morgan Stanley, or pick any of your favorite financial institutions. We really think about like, hey, we want to get the best talent into Goldman Sachs out of these schools. And we really compete head to head with Google. We compete head to head with Microsoft. We compete head to head with Facebook. And we know that the caliber of people that we want to get is no different than what these companies want. If you want to continue being a successful, leading it, you know, financial services player. That sort of tells you what's going on. You also talked a little bit about like hey, open source is here to stay. What does that really mean kind of thing. In my mind like now, you can tell me that I can have from given my pedigree at Microsoft, I can tell you that we were the first embraces of open source in this world. So I'll say that right off the bat. But having said that we did in our turn around and said like, hey, this open source is real, this open source is going to be great. How can we embrace and how can we participate? And you fast forward to today, like in a Microsoft is probably as good as open source as probably any other large company I would say. Right? Including like the work that the company has done in terms of acquiring GitHub and letting it stay true to its original promise of open source and community can I think, right? I think Microsoft has come a long way kind of thing. But the thing that like in all these enterprises need to think about is you want your developers to have access to the latest and greatest tools. To the latest and greatest that the software can provide. And you really don't want your engineers to be reinventing the wheel all the time. So there is something available in the open source world. Go ahead, please set up, think about whether that makes sense for you to use it. And likewise, if you think that is something you can contribute to the open source work, go ahead and do that. So it's really a two way somebody Arctic relationship that enterprises need to have, and they need to enable their developers to want to have that symbiotic relationship. >> Soma, fantastic insights. Thank you so much for joining our keynote program. >> Thank you Natalie and thank you John. It was always fun to chat with you guys. Thank you. >> Thank you. >> John we would love to get your quick insight on that. >> Well I think first of all, he's a prolific investor the great from Madrona venture partners, which is well known in the tech circles. They're in Seattle, which is in the hub of I call cloud city. You've got Amazon and Microsoft there. He'd been at Microsoft and he knows the developer ecosystem. And reason why I like his perspective is that he understands the value of having developers as a core competency in Microsoft. That's their DNA. You look at Microsoft, their number one thing from day one besides software was developers. That was their army, the thousand centurions that one won everything for them. That has shifted. And he brought up open source, and .net and how they've embraced Linux, but something that tele before he became CEO, we interviewed him in the cube at an Xcel partners event at Stanford. He was open before he was CEO. He was talking about opening up. They opened up a lot of their open source infrastructure projects to the open compute foundation early. So they had already had that going and at that price, since that time, the stock price of Microsoft has skyrocketed because as Ali said, open always wins. And I think that is what you see here, and as an investor now he's picking in startups and investing in them. He's got to read the tea leaves. He's got to be in the right side of history. So he brings a great perspective because he sees the old way and he understands the new way. That is the key for success we've seen in the enterprise and with the startups. The people who get the future, and can create the value are going to win. >> Yeah, really excellent point. And just really quickly. What do you think were some of our greatest hits on this hour of programming? >> Well first of all I'm really impressed that Ali took the time to come join us because I know he's super busy. I think they're at a $28 billion valuation now they're pushing a billion dollars in revenue, gap revenue. And again, just a few short years ago, they had zero software revenue. So of these 15 companies we're showcasing today, you know, there's a next Data bricks in there. They're all going to be successful. They already are successful. And they're all on this rocket ship trajectory. Ali is smart, he's also got the advantage of being part of that Berkeley community which they're early on a lot of things now. Being early means you're wrong a lot, but you're also right, and you're right big. So Berkeley and Stanford obviously big areas here in the bay area as research. He is smart, He's got a great team and he's really open. So having him share his best practices, I thought that was a great highlight. Of course, Jeff Barr highlighting some of the insights that he brings and honestly having a perspective of a VC. And we're going to have Peter Wagner from wing VC who's a classic enterprise investors, super smart. So he'll add some insight. Of course, one of the community session, whenever our influencers coming on, it's our beat coming on at the end, as well as Katie Drucker. Another Madrona person is going to talk about growth hacking, growth strategies, but yeah, sights Raleigh coming on. >> Terrific, well thank you so much for those insights and thank you to everyone who is watching the first hour of our live coverage of the AWS startup showcase for myself, Natalie Ehrlich, John, for your and Dave Vellante we want to thank you very much for watching and do stay tuned for more amazing content, as well as a special live segment that John Furrier is going to be hosting. It takes place at 12:30 PM Pacific time, and it's called cracking the code, lessons learned on how enterprise buyers evaluate new startups. Don't go anywhere.

>> Announcer: From around the globe. >> (upbeat music) It's the cube with digital coverage of IBM Think 2021 brought to you by IBM. >> Hi, welcome back everyone to the Cubes coverage of IBM Think 2021 virtual. I'm John Furrier, host of the cube. Got a great guest, Rick Smith, CTO of IBM Anthem client team. Rick. Great to see you. Thanks for coming on the cube. >> Yeah. Thank you, John. Nice to see you as well, virtually. >> First introduce yourself, what you do there, what's going on on your plate these days, honestly, COVID, we're coming out of it soon. Take a minute to introduce yourself. >> Yeah, so I've got about 15 years in the seat with Anthem. Previous to that I worked at Pretty university as the CTO in Indiana. So haven't really left, but started working with Anthem as a technical architect, eventually moved into the CTO role and have been part of, you know, a long journey with them that started at a managed services agreement in 2005. And here we are in 2021. So I've been through a lot of changes they've made to improve themselves and move into digitalization. And certainly the changes we've made too to accommodate that as we went through the years. >> Awesome. Well, thanks for that setup. I really want to dig into this expansion of project Cirrus. You guys have had a multi decade partnership with IBM and then last year you launched this expansion, project Cirrus. Can you describe this project? And what does it mean? And this new term I've heard, enterprise hybrid cloud as a service. Sounds very interesting. >> Yeah. So that's my term. I'm hoping you made it patent or something like that. But the reality is you hear our CEO talk and say that 75% of corporate workloads are not in the cloud yet. Right? And Anthem is no different, right? So they starting to go into cloud and those kinds of things. But they said to us, you know, "Hey, we've got a long series of excellence with you from a delivery perspective, reliability perspective is kind of the bedrock of what we do, but we don't want to be in the data center business, right? And we want to transform and move to cloud. We want to become a more of an AI company and these kinds of things. And we said, well, we think we can actually put together a program... Excuse me, program for you to allow you to do that, right? And so we formed something called project Cirrus which is really an expansion of our partnership. So if I look back, John, we did about 80% of the end-to-end delivery for Anthem from a managed services perspective. In other words, they did a few pieces and we said, we think we could improve that if we had the entire 100%. And so project Cirrus was about, you know, extending from 80% to 100%. It was also about taking a series of applications that were important to them and actually say, we'll actually take them on and transform them 100% all the way to cloud and take advantage of new things. It was about a commitment to closing those data centers, right? So they have five strategic data centers. And about 24,000 hosts that we said we will actually commit to getting those, you know, getting you out of the data centers and moving those to either IBM cloud or close to IBM cloud if you will, I'll come back to that in a minute. And we'll also build something called ATEC, Anthem Technology Excellent Center, if you will. And that's near and dear to my heart because that's sort of my baby, right? So it's a transformation engine and we can talk a little bit more about that in a second. But he said the key to this for us is that, if we look at our trend line, John, over the number of years with Anthem, when we started about 2007 looking at this data, we've grown the number of hosts. We've had to manage, over 600% during that time period. But we've driven down high priority incidents by over 90%. So think about that. You know, this is really important for them to have resiliency and stability in their organization. You know, huge acceleration number of hosts, but drive down the a P zero incidents, if you will. And they said, we need to maintain that and continue to improve upon that. Right? >> Yeah. >> So Cirrus was a commitment to take that further, right? Start driving AAN, AI into the operations, if you will in everything that we do. So Anthem is transforming to do AI and machine learning for their members. We're committed to transforming and doing the same kind of thing on our operational side if you will. >> Yeah, that's awesome. And I think one of the things that's interesting that jumps out at me just as you're talking, first of all super exciting that project you got out there, a lot going on to unpack, but let's do that. I mean, what I hear you saying which is getting me kind of all triggered in a good way is you got transformation going on and innovation same time. You're innovating with this new enterprise hybrid clouds of service concept. You take in more efficiency, you're doing the classic transformational things, making things more efficient, all that good stuff for agility, but it's actually innovative. So this idea of an enterprise hybrid cloud as a service is pretty innovative because now you're talking about things with AI and scale that come into play, right? So you got the setup, you got it moving into being innovative but scales right there. What is this enterprise hybrid cloud as a service? Because is it just agility, is it the AI piece? Where do you see that going? >> Yeah, that's a great question. Right? And you're a great stuff, man, Johnson. (Smith laughs) So again, Anthem's not ready to move all of their workload to cloud, right? And we recognize (indistinct)is going to be out of the data center business. So how can we take non traditional workloads, right? Get them close to cloud, right? Get them very close to cloud, get us out of the managing the data center and actually allow us to move seamlessly from non traditional workloads into cloud. And so what we did was something we think is very innovative. This is the enterprise hybrid cloud piece for me, right? 'Cause normally hybrid cloud says, you have a client data center location and you have cloud. We marry the two together. We said, you're not going to have a data center location anymore. We're going to have our data centers, you know, IBM cloud. And we're actually going to put some dedicated space right next to cloud. And when I say next to cloud, I literally mean within a few feet. And we're going to bring these non traditional workloads there, we're going to take the network operation brain and bring it there. And we're going to allow you then to basically be able to move seamlessly from that to directly into cloud and improve operations at the same time. There's other a side benefit to this too. The other unintended sort of benefit is that what any organization, right? That you find stuff in the data center that hasn't been looked at for a long period of time, right? Application teams haven't looked at it, et cetera, et cetera. We're literally touching every single host. Right? So this gives us an opportunity to also work with our teams and find things that really can just be thrown away. Right? And this is great because we're actually making them more efficient, optimizing the cost structures as we go about it. >> Yeah. I mean the operational model changes me. You mentioned that just that whole point about you're kind of doing some discovery on apps, this becomes kind of sets the table for AI ops which is just code word for day two operations or full cloud native environments, which now you're seeing cloud native include legacy. Yes. Because you can put containers into the mix and you can then create these integration points that you don't have to kind of get rid of the old to bring in the new. So the dimension of what's going on here is pretty interesting, right? When you start thinking about that, "Okay. I can modernize the same time as connect two existing systems." >> That's exactly right. And we put the things very close to one another. And if there's any concerns over data security compliance or healthcare regulated industry, of course, we can have the workloads located in the best location to ensure that security is in place. Right? So that's what's beautiful about it, right? We can kind of hit every layer that's possible from having it just as secure as completely privatized to going directly over to public cloud or connecting the two together as we go along. >> Well, you're definitely a pioneer. I love that enterprise hybrid cloud as a service. I think that's something that's relevant. We're living in a hybrid world. I mean, the cube, we used to go to events now it's virtual events, but when now the events come back, they're hybrid events. Every company is experiencing this phenomenon on hybrid something, not just technology. The ops got to adapt, so super cool. You mentioned something that was your baby. I want to get back to you. And you said you want to talk about, I want to just bring that up. This Anthem technology excellence center is your baby. ATech I think you said for short. >> Yeah. We call it Atech for short. And really, John, we said that it's got to be more than just taking that other 20% that we don't run today. And we're doing some very innovative things moving non-traditional workloads. Like I said, all that kind of stuff was very cool, right? But we need a transformation engine, right? And we need the ability to transform skills. Like upscale the people at Anthem as well as IBM, right there on the account team, it's a big account. We want to think of new ways to work together. Right? Traditional managed services is like, what? Someone cuts a ticket and says, "Give me X by her seat." Right? That's the traditional model. And we said, that's not good enough. We need to collaborate better together. And we are willing to redefining how we form our teams to work with Anthem. Right? So if we want to form, for example, a product ownership team that builds it, runs it, maintains it. And that team has Anthem plus IBM together. we're going to use ATEC as a vehicle to design that and drive it and make sure they have all the skills they need within that group to do that. Right? That's new ways of working together. And it's also to drive things like site reliability engineering, right? Cloud service management operations, make sure that Anthem has the right training, make sure we work together on these kinds of things. So it's really kind of an exciting thing. And it's intended to be a co-created model, right? So we actually work with the Anthem, we co-create using IBM garage methodologies and then the idea is to coast staff it, but it's tended to be a thin layer of world-class engineering. That's really the whole point of it. And yeah, I'm super excited about that. As you move forward, yeah. >> While you're speaking our language, the cube we'd love the co-creation we do with media. It's always fun to create content together. And sometimes in real time put it together like we're doing now. And it creates a bond. I mean, I got to bring this up because this is becoming more and more obvious. And now mainstream, the notion of co-creation, the notion of ecosystems and ecosystems really meaning network effect and integrating with other parties, right? Companies and our systems. If you look at the underlying business model as a systems management software bottle. Okay. So with that, these ecosystems, the network effect. If you build together, you stay together. I mean, this is a different mindset. It's different dynamic. It's a different relationship that companies are now looking for in what used to be called suppliers. Are you supplying something? Are you building together? Right. So this seems to be the theme. Can you expand on this new trend? >> Right. And get away from the strict racing, this person does, this person does that. Instead, we build a team together that has all the skills necessary and that team owns a product life cycle. They build it, run it and maintain it. And that's changing the way we deliver services from IBM perspective significantly, right? Because that's not our traditional model but that's what we're doing. So we're really out in the front end, on the front edge if you will. Changing that model completely. And it's one of the most exciting things for me, you know, as far as going forward. >> You know, this whole idea of partnerships has always kind of been there but now it gets modernized and uplifted if you will, to a new level. And it really is about watching each other's backs too when you have that kind of... 'Cause we're talking about like pushing the envelope on probably the biggest confluence of tech trends I've ever seen in my career. And I've seen many big waves, you know, from the different revolutions and inflection points. Now it's sort of all coming together, right? At scale too, it's happening very fast. I mean, the change over is happening in years that once you took decades before. So it's really is a team approach. >> Yeah. There's no doubt about it. And I see it every day in the work we're doing. And it's like, for example, at Atech where we're working with the data scientists at the Anthem, we're thinking of new ways to build things they've never done before. We're hoping to enable their science, enable the things they want to do for digitization standpoint, the same token I'm taking, you know, a data scientist and putting them on the operation side too. Right? So we're doing both these kinds of things together. And really I didn't say this before, but this whole thing is about driving automation, right? Driving down, no human touch, soft service, automation. That is kind of been the linchpin of this. And I also want to say John, that doing this all during a pandemic, you know, we signed our new agreement together with them at a quarter, at the end of March in 2020. And we went live in August 1st with all the changes, the extra 20% capacity to over 300 plus applications completely, started Atech from co-creation in a pandemic. And we both agreed as a company, I give great credit to our client and to the numbers involved that everyone set up front and during March. The pandemic's not an excuse to get anything done. So, we're going to go forward and make it happen. That's probably the thing I'm most proud about. That was just... It's crazy when you think of how big the project was and do pull it off during a pandemic. >> Yeah. There's going to be two sides of the street and this one, this pandemics over the ones who made it through and refactored and or innovated. Cause it's not just about being and having a tale, it's about taking advantage of the situation and the ones who didn't do anything. Whether they were in the cloud or not, that's not to me. That's not the issue of you're in the cloud you had an advantage. >> It's not. Right. >> But there's going to be two sides of the streets. And I think the one thing that the pandemic has shown us and I'd love to get your reaction as a final comment here is that when you pull back when the pandemic, it showed all the scabs, it shows everything. And you can see what's obvious and it becomes a forcing function. Necessity's the mother of all invention as expression goes so you can see what's worth doubling down on and you can see the productivity gains and that becomes clear. >> Yeah. Yeah. And I think there's good and bad with everything, right? Pros and cons, like you said, and you know, one of the cons I think is the having to schedule all interactions is definitely a con, right? Because when you spend time not only with the client virtually but in person, you do get the advantage of having, you know, chalk talks and things like that. They're not scheduled. Right? So that's definitely one of the cons side, but one of the pro side is it did provide some focus, right? Kind of extreme focus and on what's important and allowed us to, you know, I think dove some bonds with the Anthem leadership team and the application teams doing it virtually over cameras like this that maybe happen at a larger scale than they might have normally been because the pandemic kind of allowed us to do that and made that happen. >> Great stuff, Rick, great insight. Great to have you on the cube as always. Great to talk tech, talk business, talk about the transformation and innovation and the cloud scale. Thanks for coming on Rick Smith, CTO of the IBM Anthem client team. Thanks for coming on the cube. >> You're welcome. Thanks John. >> Okay. Cube coverage of IBM Think 2021. I'm John. For your host of the cube. Thanks for watching. (soft music) (upbeat music)

>> Narrator: From around the globe, it's theCUBE, with digital coverage of IBM Think 2021 brought to you by IBM. >> Welcome to theCUBEs coverage of IBM Think 2021. I'm Lisa Martin. Exciting conversation coming up about in vaccine cloud management. I've got two guests with me, Tim Elcott is here, the sales and delivery director of IBM services for Salesforce and Fran Thompson joins us as well, the CEO of the Health Service Executive in Ireland. Gentlemen, welcome to the program. >> Hi, there. >> Hi. >> Good to be here. >> So we're very socially distance, Northern California, UK. Glad to have you guys here. We're going to talk about what the Health Service Executive or HSE in Ireland has done with IBM and Salesforce to facilitate vaccine management. But Fran, let's go ahead and start with you, talk to us a little bit about HSE. >> Well, the HSE provides public health and social services to everyone living in Ireland, okay. We got Acute hospitals, community services nationally. We directly employ about 80,000 people and we formed a farther about 40,000 people. And our annual budget is slightly North of 21.6 billion a year. We are the largest employer in the state and the largest organizations in the state. And, you know, we provide a huge range of services right across the whole spectrum. And we also formed other organizations who provide those services as well. So we would fund some voluntary and charity organizations and we would also buy services from the likes of say GP and other organizations as well. >> So talk to me about a year or so ago when the pandemic hit what were some of the challenges that HSE faced? And then when it came time to, we have a vaccine, we have multiple vaccines that rollout capability what were some of the challenges that you faced initially? >> So from an organizational perspective, there were huge challenges in that we were like every other health service worldwide facing an enormous pandemic that was impacting on people. And this is all about people, it's all about people's lives at the end of the day. People can talk about numbers and they can talk about costs and they can talk about other elements but at the end of the day this is about individual, people's lives, their families and their communities. And for the HSE, our challenge was really about how do we manage to protect the totality of the population in Ireland, as much as we can from the ravages of the virus. And the initial challenge we had was around contact tracing and managing that before a vaccine became available. And once the vaccine became available it was then how do we stand up a national vaccine solution that we would be able to deliver and record vaccines to the totality of the population who were getting a vaccine. >> Yeah, so there was no preexisting vaccination program of course, probably in most places you needed to get healthcare workers vaccinated ASAP and it's also needed to be a national program. So what did you do next after determining all right, we need to work with some partners to be able to build technology to facilitate equitable efficient rollout of the vaccine? >> So we did have regional vaccine systems and we do have a number of vaccine programs out there that were managing flu vaccine, Hep C vaccine, but we didn't have a national program and we needed to vaccinate people immediately. And we also wanted to make sure that vaccine program was not dependent on the HSE infrastructure, because we want to be able to vaccinate people in non HSE sites, and we wanted non HSE staff to be able to vaccinate. And we didn't want a huge pre-dependence on our existing infrastructure. So the first thing we did, we looked at a number of vendors and we chose IBM as our partner with Salesforce. And that partnership is really a strategic partnership and it's a partnership that we worked to all the bumps and all the lumps through the program together and there have been challenges but like it's still working with Tim and his team and to our team that we've overcome some of those challenges. And like, when we started off I remember the very first conversation I had with Tim he said, "Look, we need to vaccinate healthcare workers now, okay? And you've got two weeks to start and we need to configure a system, get it up and running and to be able to roll it out to the hospitals and very quickly then to all of our nursing care homes now" and that was the challenge. >> And let's bring Tim in, and this is a radically quick project from MPV to roll out in two weeks. Tim talk to us first about the IBM partnership with Salesforce and what you're building together. >> Absolutely, it's great and Fran it's interesting to hear you speaking about the running into this, 'cause from my perspective a week before we all started this we had a simple conversation called into the Health Service Executive they're talking about some vaccination program how can we help? And then within a week, we've gone from zero to having how many calls with Fran and team just to understand and with the Salesforce team to really understand how the three parties can bring the best of IBM, the best of Salesforce and the best of HSE in terms of the adaptability and what we need to get done to get those vaccinations up and running for the healthcare workers now. When Fran said to me, "We need something in two weeks." There was absolutely clarity, if you can't do it in two weeks there's the door, right? So we knew exactly the challenge and that's the kind of thing right before Christmas that we were so fortunate to really bring in the team, like everyone you think about this, everyone has probably the 14th of December was thinking of winding down, thinking of having their Christmas holidays and vacation time. And everybody from the Irish team and from the English team said, "No, we will cancel Christmas, we will cancel everything." So is it really Christmas came early and Christmas was canceled all at once. So, and the key bit here, the strategic partnership is IBM and Salesforce have been working together for years and years and years growing out a partnership. We know their products really well, we've got huge capability in that space. But actually with the new health cloud part of it the vaccine management parts are quite new to Salesforce as well only launched back in sort of the August, September time. So it's quite new. So we had to go in together as a sort of a partnership there to say, "Did you get this done?" So we had the best people from Salesforce who know the product, the best people from IBM all turning up on the 14th of December and saying, "Right, we've got to get this done by the 29th, with Christmas holidays in the way, the vacation time in the way." I think we had 36 hours of time off to eat turkey and fill ourselves before getting back to the wheel and really getting this done. And to get I think it was four acute hospitals we went into as of the 29th to start the vaccination program. So trying to do that, understanding everything is a compromise at that point. Yeah, but it has to be secure, you know this is personal data going into these systems. So you can't forget about all the aspects it's got as minimum, but minimum with those kinds of constraints as a health system. So it needs to be secure, it needs to also be that national platform going forwards as well. So basing on a great platform like Salesforce, you know you can scale out, you know you've got those options to grow in the future, but yeah, not without a lot of challenge and then working out what's now getting to know each other, but if we only talked about twice before we ever know each other pretty well now. But just trying to work out how we then structure what's going to happen every two weeks afterwards, how's that going to move forward? We're going live every two weeks and we have done that now for the last three months, so, good fun. >> So, yeah, good fun. But so much work to get done and accord a huge coordinated effort in a very short time period during a very challenging time. Talk to me a little bit about Fran but you launched this Vaccine Cloud Management in January, 2021. And to date, I think you told me 1 million people have been vaccinated so far. Talk to me about what the IBM, Salesforce solution enables you to deliver to the HSE and to the Irish citizens. >> So we have delivered a million vaccines, okay in two stages. The dose one, the dose two for most people in Ireland. And there's about 720,000 people got their dose one and the balance have got the dose two. That's about sort of just about one in five of the population that has to be vaccinated. And one of things we were very conscious of is that as an organization like that we need to take a risk based approach to this. So we need to look at the most vulnerable groups there were lots of people who were dying from this. And a lot of people were elderly groups, and people who were vulnerable with pre medical conditions. So our challenge was how do we vaccinate those people quickly and effectively and also vaccinate healthcare workers who are going to care for these people. And that's where we prioritize the work. So we have to go into 50 acute sites about 600 or so care homes, we set up a lot of what we call pop-up clinics literally a tent in a location, or we took over a sports hall or whatever we did. We rolled it out to the GP so about two and a half thousand GP sites. And all of that was being done while we were building the system. So we were building the system and designing a system on two week sprints. We have to be agile, we have to be quick, we had to make huge compromises and we know that. Though I hate to admit it everyone wants a perfect system, which will make the compromise and look into what do you need to do now to keep the program running? And how you manage that with about 3,000 users all to be set up fairly quickly or a little over half thousand users. So you have to manage all that as you're going through everything. >> I think agile is the name of the game here. Tim, talk to us about how you're delivering the agility in such a tenuous time. >> Well, we're all virtual, which is added to the mix. But the funny thing with that agility we've got a span of people across all the countries and everywhere that we can bring in to that party. And yeah, we're running what I would call a normal agile project, except normally it would take two, three months to really get that team working effectively, getting to know each other and we just not had time to do that. So there's been a core team here and we're bringing in the experts around it but really just everything is working with Fran, worked very hand in glove trying just to work out, what we need to do here, to look at the next sprint to look at the next go live, to look at the compromise. How do we compromise for two weeks? What can we live with for two weeks? What's in the backlog for now and Fran and I have many conversations. What do we need to do this week and then what's next week? And that's level of fluidity and that's in part because of the way the pandemics and the response of pandemic is mapping out. As we saw the vaccines are changing, availability is changing, the rollout plan is changing. None of us have worked through a pandemic before. So agility is the name of the game at the highest level. I think we're all now very used to being, sorry there's a problem something's changed, can we adapt the system too, you know, and normally in a sprint I'll be thinking, I've got some fixed requirements for two weeks, I'll build that and then do the next two weeks. Everything is up for grabs and we're just having to maintain quality at the pace, the responsiveness and balancing it all as an IBM team and you think. And whilst we're also doing that on a platform that it takes time to configure and build these things as well. So it's some of it is you're going to have to wait a few days. So we're sorry, you know, a few days is really the probably sometimes the maximum amount of time that can be you can defer, but as Fran and everyone in the HSE and the National Immunization Office, everyone's pragmatic about realizing we're all in this together and it's really just being one single team, one unit working out and very open and transparent about the odds that are possible. >> And when doing something... Go ahead, Fran. >> We had a phrase there like there was a pieces we just had, "Just do it now." And we did a lot of that, okay? You know, where there were things that were prioritized were in the middle of a sprint, there were changes in the program or there were changes in how the vaccination was going to be delivered. And we couldn't waste the week just wasn't available. So we have the thing just got to do it now. And Tim and the team they'll drop what they were doing you know, made the changes, we tested them fast and we pulled them in and then gave us an extra time to actually then deliver the rest of the sprint. We have to do that several occasions, several very, very late night delivers. >> And I imagine that's still going on, but to wrap here guys, an amazing work that you've done together so far with the Salesforce Vaccine Club Management rolling out across the HSE you said 1 million vaccinations delivered many hundreds of thousands in the queue. I'm sure more iterative work and sleepless nights but what you're doing for the country of Ireland is literally as Fran said in the beginning, lifesaving. Gentlemen, thank you so much for joining me today on the program. >> You're welcome, thank you. >> You're very welcome. Thank you. >> From Tim and Fran I'm Lisa Martin. You're watching theCUBEs coverage of IBM Think 2021. (upbeat music)

>>from around the globe. >>It's the cube >>With digital coverage of IBM. Think 2021 brought to you by IBM. Welcome to the cubes coverage of IBM Think 2021. I'm lisa martin, exciting conversation coming up about vaccine cloud management. I've got two guests with me, tim Elka is here, the sales and delivery director of IBM Services for Salesforce and fred Thompson joins us as well. The C. I. O. Of the health service executive in Ireland. Gentlemen, welcome to the program. >>Either I have to be here >>so we're very socially distant northern California UK. Glad to have you guys here. We're gonna talk about what the health service executive or HST and Ireland has done with IBM and Salesforce to facilitate vaccine management. But Fran let's go ahead and start with you talk to us a little bit about HSC >>So that the HSC provides public health and social services to everyone living in Ireland. Okay. We that acute hospitals community services nationally. We directly employ about 80,000 people and we fund a further about about 40,000 people. Um and our annual budget is slightly north of 21.6 billion a year. We are the largest employer in the state of the largest organizations the state. Uh you know, we provide a huge range of services right across the whole spectrum and we also fund other organizations who provide those services as well. So we would we would fund some voluntary and charity organizations and we would also uh by services from the latest A GP and other organizations as well. >>So talk to me about a year or so ago when the pandemic hit, what were some of the challenges that HSC faced and then when it came time to we have a vaccine, we have multiple vaccines that roll out um capability. What were some of the challenges that you faced initially? >>So from a an organizational perspective, um, there are, there were huge challenges in that. We were like every other health service worldwide facing uh, an enormous pandemic that was impacting on people. And this is all about people, it's all about people's lives. At the end of the day, people can talk about numbers and they can talk about costs and they can talk about other elements at the end of the day. This is about individual people's lives, their families and their communities. And for the HFC, our challenge was really about how do we manage to protect the totality of the population in Ireland as much as we can from, from the ravages of the virus. Um, and you know, the initial challenge we had was around contact tracing and managing that before a vaccine became available and once the vaccine became available it was then how do we stand up and national vaccine solution that we would be able to deliver and record vaccine to the totality of the population who were getting back? >>Yeah. So there was no pre existing vaccination program. Of course, probably in most places, you needed to get health care workers vaccinated ASAP. And it's also needed to be a national program. So what did you do next? After determining? All right, we need to work with some partners to be able to build technology to facilitate uh equitable, efficient rollout of the vaccine. >>So we did have regional vaccine systems and we do have a number of vaccine programs out there that were that were managing flu vaccine, heP C vaccine. But we needed we did we didn't have a national program and we needed to vaccinate people immediately. Um, and we also wanted to make sure that vaccine program was not dependent on the HSC infrastructure because, you know, we want to be able to vaccinate people in non HSC sites and we wanted non HSC staff to be able to vaccination. Uh, and we didn't want a huge pre dependent on our existing infrastructure. Um, so the first thing we did, we we looked at a number of vendors. Um, and we chose IBM as our partner with Salesforce. And that partnership is really a strategic partnership and it's a partnership that we worked through all the bumps and all the lumps of the program together. Um, and you know, and and there there have been challenges, but like it's too working with him and his team and through our team that we've overcome some of those challenges. Um, and like when we started off, remember the very first conversation I had with him as legislators, we need to vaccinate healthcare workers now, okay, you've got two weeks to start, um and we need to configure a system, get it up and running and to be able to um roll it out to the hospital And two. I'm very quickly then to all of our nursing care homes. Now, that was the challenge. >>And let's bring tIM in is this is a radically quick project from MPB to roll out in two weeks to talk to us about first about the IBM partnership with Salesforce and what you're building together. >>Absolutely. And it's great and Fran. It's interesting to hear you speaking about the run into this because from my perspective, a week before we all started this, we had a simple conversation called into Health Service Executive has some talking about some vaccination program, how can we help? And then within a week we've gone from zero to having how many calls with Fran and team just to understand and with the salesforce team to really understand how the 33 parties can bring the best of IBM, the best of Salesforce and the best of HSC in terms of the adaptability and what we need to get done to get those vaccinations up and running for the health care workers. Now, you know when franz said to me, we need something in two weeks, there was absolutely clarity. If you can't do it in two weeks there's a door, right? So we knew exactly the challenge and that's the kind of thing right before christmas that we were so fortunate to really bring in the team like everyone you think about this, everyone has probably the 14th of december, I was thinking of winding down thinking of having their christmas holidays and vacation time and everybody from the irish team and from the english team said no or cancel, christmas will cancel everything. So it's really christmas came early and christmas was canceled all at once, so and the key bit here, the strategic partnership is, I'm in the sales force have been working together for years and years and years growing out a partnership, we know their products really well, we've got huge capability in that space, but actually with the new health cloud part of it, the vaccine management parts are quite new to salesforce as well, only launched back in august september time, so it's quite new, so we had to go in together as a sort of partnership there to say to just get this done. So we had the best people from salesforce, I know the product, the best people from IBM all turning up on the 14th of december and saying right, we've got to get this done By the 29th with christmas and christmas holidays in the way the vacation time in the way, I think we have 36 hours of time off to eat turkey and fill ourselves before getting back to the wheel and really getting this done and to get I think was four acute hospitals we went into as of the 29th to start the vaccination program, so trying to do that, understanding everything is a compromise at that point, but it has to be secure, you know, this, this is, this is personal data going into these systems, so you can't forget about all the aspects, it's got this minimum but minimum with those kind of constraints as a health system. So it needs to be secure, it needs to also be that national platform going forward as well. So basing on a great platform like Salesforce, you know, you can scale out, you know, you've got those options to grow in the future, but yeah, not without a lot of challenge and then working out what's now getting to know each other, but if we only talked about twice before, we have to know each other pretty well now, um, but just trying to work out how we then structure, what's going to happen every two weeks afterwards, How is that going to move forward? We're going live every two weeks and we haven't done that now for the last three months, So good fun. >>So yeah, good fun. And but so much work to get done and according huge, coordinated effort in a very short time period, during a very challenging time. Talk to me a little bit about France, but you launched this um cloud management vaccine, Cloud management in january 2021 today to thank you. Told me one million people have been vaccinated so far. Talk to me about what the IBM Salesforce solution enables you to deliver to the HSC and to the irish citizens. >>So we have delivered a million vaccines. Okay to uh to stage is uh there's a dose one of those two for most people in Ireland. Um and there's about 720,000 people have got their dose one and the balance I've got, I've got the dose too, that's about sort of just about one in five of the population. That has to be that there has to be vaccinated. And one of these were very conscious of is that, you know, an organization is that we need to take a risk-based approach to this. So we need to look at the most vulnerable groups. There were lots of people who were dying from, you know, from this and they were all the a lot of people are elderly groups and people who were who were vulnerable with uh with pre medical condition. So our challenge was how do we, how do we vaccinate those people quickly and effectively uh and also vaccinate health care workers who are going to care for these people? Uh and and that's what we're, we prioritize the work. So we have to go into 50 acute sites, about 600 or so care homes. We set up a lot of what we call pop up clinics literally attended the in a location or we took over a sports hall or whatever we did. We rolled it out to the GPS to about 2.5 1000 G. P. Site. Um and all of that was being done while we were building the system. So we were, you know, building the system and designing the system on two weeks prints. We have to be agile way too quick. We can make huge compromises and we know that okay. I mean everyone wants a perfect system which is to make the compromise and look and see what you need to do now to keep the program running and how you manage that were, you know, Uh about 3000 users all to be set up fairly quickly or a little over between 1000 users so you can manage all that as you're going through everything. >>I think agile is the name of the game here. Tim talked to us about how you're delivering the agility in such a 10uous time. >>Well, we're all virtual which is added to the mix. But the funny thing with that agility, we've got a span of people across all the countries and everywhere that we can bring to that that party and we're running a normal but I was kind of a normal agile project except normally it would take 23 months to really get that team working effectively, getting to know each other and we just not had time to that to do that. So there's been a core team here and we're bringing in the experts around it. But really just everything is working with Fran work very hand in glove, trying just to work out what we need to do here to look at the next sprint, to look at the next go Live, to look at the compromise. How do we compromise for two weeks? What can we live with for two weeks? What's in the backlog for now? And Fran and I have many conversations, what do we need to do this week and then what's next week? And that's the level of fluidity And that's in part because of the way the pandemics and the response to pandemic is mapping out as we saw the vaccines are changing availability, is changing the rollout plan is changing. None of us have worked through a pandemic before. So agility is the name of the game at the highest level. I think we're all now very used to being sorry, there's a problem. Something's changed. Can we adapt the system to you know where normally in a sprint, I'd be thinking I've got some fixed requirements for two weeks. I'll build that and then do the next two weeks, everything is up for grabs and we're just having to maintain quality at the pace, the responsiveness and balancing it all as an IBM team and you think, and whilst we're also doing that on a platform that it takes time to configure and build these things as well. So it's some of it is you're gonna have to wait a few days. So sorry, you know, in a few days is really probably sometimes the maximum amount of time that can be, you can differ. But as Fran and everyone in the HRC and the, the national immunization office, everyone's pragmatic about realizing we're all in this together and it's really just being one single team, one unit working out and very open and transparent about the, after the possible >>we're doing something, go ahead. >>And we had a phrase, there was like, those are the pieces, we just just do it now and, and we did a lot of that. Okay. Um, you know, where there were things that were prioritized, we're in the middle of a sprint. Um, there were there were changes in the program or there were changes in how, how the vaccination was going to be delivered. Um, and we couldn't wait the week. Just it wasn't available. So we have this thing is just gonna do it now and him and the team, you know, drop what they were doing, you know, made the changes, we test them fast and we put them in and and that gave us then, you know, an extra time to actually then deliver the rest of the sprint and we have to do that. Several Okay. Several very, very late night to deliver >>and I imagine that's still going on. But to wrap here guys, amazing work that you've done together so far with the Salesforce vaccine Club Management rolling out across the HSC, you said one million vaccinations delivered many hundreds of thousands in the queue. I'm sure more iterative work and sleepless nights. But what you're doing for the country of Ireland is literally as friends in the beginning. Life saving Gentlemen, thank you so much for joining me today on the program. >>You're welcome. Thank you. You're very welcome. Thank you. >>Tim and Fran. I'm lisa martin. You're watching two cubes coverage of IBM think 2021. >>Mhm >>mm.

>>From around the globe. It's the Cube with digital coverage of IBM think 2021 brought to you by >>IBM. Welcome back to IBM Think 2021. This is the cubes ongoing coverage where we go out to the events, we extract the signal from the noise of course, virtually in this case now we're going to talk about ecosystems, partnerships in the flywheel, they deliver in the technology business and with me or Jason kelly, general manager, global strategic partnerships, IBM global business services and Mani Das Gupta, who is the vice president of marketing for IBM Global Business services folks. It's great to see you again in which we're face to face. But this will have to do >>good to see you Dave and uh same, I wish we were face to face but uh we'll we'll go with this >>soon. We're being patient, Jason. Let's start with you. You have a partner strategy. I wonder if you could sort of summarize that and tell us more about it. >>So it's interesting that we start with the strategy because you said we have a partner strategy dave and I'd say that the market has dictated back to us a partner strategy something that we it's not new and we didn't start it yesterday. It's something that we continue to evolve and build even stronger. This thought of a partner strategy is it nothing is better than the thought of a partner ship. And people say oh well you know you got to work together as one team and as a partner And it sounds almost as a 1-1 type relationship. Our strategies is much different than that. David our execution is even better and that that execution is focused on now. The requirement that the market our clients are showing to us and our strategic partners that one player can't deliver all their needs, they can't Design solution and deliver that from one place. It does take an ecosystem to the word that you called out. This thought of an ecosystem and our strategy and execution is focused on that. And the reason why I say it evolves is because the market will continue to evolve and this thought of being able to look at a client's let's call it a a workflow, let's call it a value chain from one end to the other, wherever they start their process to wherever it ultimately hits that end user. It's going to take many players to cover that. And then we, as IBM want to make sure that we are the general contractor of that capability with the ability to convene the right strategic partners, bring out the best value for that outcome, not just technology for technology's sake, but the outcome that the incline is looking for so that we bring value to our strategic partners and that in client. >>I think about when you talk about the value chain, you know, I'm imagining, you know, the business books years ago you see the conceptual value chain, you can certainly understand that you can put processes together to connect them and now you've got technology, I think of a P. I. S. It's it's really supports that everything gets accelerated and and uh money. I wonder if you could address some of the the go to market how this notion of of ecosystem which is so important, is impacting the way in which you go to market. >>Absolutely. So modern business, you know, demands a new approach to working the ecosystem. Thought that Jason was just alluding to, it's a mutual benefit of all these companies working together in the market, it's a mutual halo of the brands, so as responsible for the championship of the IBM and the global business services brand. I am very, very interested in this mutual working together. It should be a win win win, as we say in the market, it should be a win for our clients, first and foremost, it should be a win for our partners and it should be a win for IBM and we are working together right now on an approach to bring this, go to market strategy to life. >>So I wonder if we could maybe talk about how this actually works and and pull in some examples, uh you must have some favorites that that we can touch on. Uh is that, is that fair? Can we, can we name some names, >>sure names, always working debut, right. And it's always in context of reality that we can talk about, as I said, this execution and not just a strategy. And I'll start with probably what's right in the front of many people's minds as we're doing this virtually because of what because of an unfortunate pandemic, um, this disastrous loss of life and things that have taken us down a path. We go well, how do we, how do we address that? Well, any time there's a tough task, IBM raises its hand first. You know, whether it was putting a person on the moon and bringing them home safely or standing up a system behind the current Social Security Administration, you know, during the Depression, you pick it well here we are now. And why not start with that as an example? Because I think it calls out just what we mentioned here first day, this thought of a, of an ecosystem because the first challenge, how do we create uh and address the biggest data puzzle of our lives, which is how do we get this vaccine created in record time, which it was the fastest before that was four years. This was a matter of months. Visor created the first one out and then had to get it out to distribution. Behind. That is a wonderful partner of R. S. A. P. Trying to work with that. So us working with S. A. P. Along with Pfizer in order to figure out how to get that value chain. And some would say supply chain, but I'll address that in a second. But there's many players there. And so we were in the middle of that with fires are committed to saying, how do we do that with S. A. P. So now you see players working together as one ecosystem. But then think about the ecosystem that that's happening where you have a federal government agency, a state, a local, you have healthcare, life science industry, you have consumer industry. Oh wait a second day. This is getting very complicated, Right? Well, this is the thought of convening an ecosystem and this is what I'm telling you is our execution and it has worked well. And so it's it's it's happening now. We still it's we see it's still developing and being, being, you know, very productive in real time. But then I said there was another example and that's with me, you mani whomever you pick the consumer. Ultimately we are that outcome of of the value chain. That's why I said, I don't want to just call it a supply chain because at the end is a someone consuming and in this case we need a shot. And so we partnered with Salesforce, IBM and Salesforce saying, wait a minute, that's not a small task. It's not just get the content there and put it in someone's arm instead they're scheduling that must be done. There's follow up an entire case management like system sells force is a master at this, so work dot com team with IBM, we sit now let's get that part done for the right type of UI UX capability that the user experience, user interaction interface and then also in bringing another player in the ecosystem, one of ours Watson health along with our block changing, we brought together something called a Digital Health pass. So I've just talked about two ecosystems work multiple ecosystems working together. So you think of an ecosystem of ecosystems. I called out Blockchain technology and obviously supply chain but there's also a I I O T. So you start to see where look this is truly an orchestration effort. It has to happen with very well designed capability and so of course we master and design and tying that that entire ecosystem together and convening it so that we get to the right outcome you me money all getting into shot being healthy. That's a real time example of us working with an ecosystem and teeming with key strategic partners, >>you know, money, I mean Jason you're right. I mean pandemics been horrible, I have to say. I'm really thankful it didn't happen 20 years ago because it would have been like okay here's some big pcs and a modem and go ahead and figure it out. So I mean the tech industry has saved business. I mean with not only we mentioned ai automation data, uh even things basic things like security at the end point. I mean so many things and you're right, I mean IBM in particular, other large companies you mentioned ASAP you have taken the lead and it's really I don't money, I don't think the tech industry gets enough credit, but I wonder if there's some of your favorite, you know, partnerships that you can talk about. >>Yeah, so I'm gonna I'm gonna build on what you just said. Dave IBM is in this unique position amongst this ecosystem. Not only the fact that we have the world leading most innovative technologies to bring to bear, but we also have the consulting capabilities that go with it now to make any of these technologies work towards the solution that Jason was referring to in this digital health pass, it could be any other solution you would need to connect these disparate systems, sometimes make them work towards a common outcome to provide value to the client. So I think our role as IBM within this ecosystem is pretty unique in that we are able to bring both of these capabilities to bear. In terms of you know, you asked about favorite there are this is really a coop petition market where everybody has products, everybody has service is the most important thing is how how are we bringing them all together to serve the need or the need of the hour in this case, I would say one important thing in this. As you observe how these stories are panning out in an ecosystem in in part in a partnership, it is about the value that we provide to our clients together. So it's almost like a cell with model from from a go to market perspective, there is also a question of our products and services being delivered through our partners. Right? So think about the span and scope of what we do here. And so that's the sell through. And then of course we have our products running within our partner companies and our partner products, for example. Salesforce running within IBM. So this is a very interesting and a new way of doing business. I would say it's almost like the modern way of doing business with modernity. >>Well. And you mentioned cooperation. I mean you're you're part of IBM that will work with anybody because your customer first, whether it's a W. S. Microsoft oracle is a is a is a really tough competitor. But your customers are using oracle and they're using IBM. So I mean as a those are some good examples. I think of your point about cooper Titian. >>Absolutely. If you pick on any other client, I'll mention in this case. Delta, Delta was working with us on moving, being more agile. Now this pandemic has impacted the airline sector particularly hard, right With travel stopping and anything. So they are trying to get to a model which will help them scale up, scale down, be more agile will be more secure, be closer to their customers, try and understand how they can provide value to their customers and customers better. So we are working with Delta on moving them to cloud on the journey to cloud. Now that public cloud could be anything. The beauty of this model and a hybrid cloud approach is that you are able to put them on red hat open shift, you're able to do and package the services into a microservices kind of a model. You want to make sure all the applications are running on a portable, almost platform. Agnostic kind of a model. This is the beauty of this ecosystem that we are discussing is the ability to do what's right for the end customer at the end of the day, >>how about some of the like sass players, like some of the more prominent ones and we watched the ascendancy of service now and and, and work day, you mentioned Salesforce. How do you work with those guys? Obviously there's an Ai opportunity, but maybe you could add some, you know, color there. >>So I like the fact that you call out the different hyper scholars for example, uh whether it's a W. S, whether it's Microsoft, knowing that they have their own cloud instances, for example. And when you, when you mentioned, he had this happened a long time ago, you know, you start talking about the heft of the technology, I started thinking of all the truckloads of servers or whatever they have to pull up. We don't need that now because it can happen in the cloud and you don't have to pick one cloud or the other. And so when people say hybrid cloud, that's what comes out, you start to think of what I I call, you know, a hybrid of hybrids because I told you before, you know, these roles are changing. People aren't just buyers or suppliers, they're both. And then you start to say what we're different people supplying well in that ecosystem, we know there's not gonna be one player, there's gonna be multiple. So we partner by doing just what monty called out is this thought of integrating in hybrid environments on hybrid platforms with hybrid clouds, Multi clouds, maybe I want something on my premises, something somewhere else. So in giving that capability that flexibility we empower and this is what's doing that cooperation, we empower our partners are strategic partners, we want them to be better with us. And this is this thought of being able to actually bring more together and move faster which is almost counterintuitive. You're like wait a minute you're adding more players but you're moving faster. Exactly because we have the capability to integrate those those technologies and get that outcome that monty mentioned, >>I would add to this one. Jason you mentioned something very very interesting. I think if you want to go just fast you go alone but if you want to go further, you go together. And that is the core of our point of view in this case is that we want to go further and we want to create value that is long lasting. >>What about like so I get the technology players and there may be things that you do that others don't or vice versa. So the gap fillers etcetera. But what about how to maybe customers that they get involved? Perhaps government agencies, may they be they be customer or an N. G. O. As another example, Are they part of this value chain? Part of this ecosystem? >>Absolutely. I'll give you I'll stick with the same example when I mentioned a digital health past that Digital Health Pass is something that we have as IBM and it's a credential Think of it as a health credential not a vaccine passport because it could be used for a test for a negative test on Covid, it could be used for antibiotics. So if you have this credential, it's something that we, as IBM created years back and we were using it for learning. When you think of getting people uh certifications versus a four year diploma, how do we get people into the workforce? That was what was original. That was a jenny Rometty thought, let's focus on new collar workers. So we had this asset that we'd already created and then it's wait, there's a place for it to work with, with health, with validation verification on someone's option, it's optional. They choose it. Hey, I want to do it this way. Well, the state of new york said that they wanted to do it that way and they said, listen, we are going to have a digital health pass for all of our, all of our new york citizens and we want to make sure that it's equitable, it could be printed or on a screen and we want it to be designed in this way and we wanted to work on this platform and we want to be able to, to work with the strategic Partners, a Salesforce and ASAP and work. I mean, I can just keep and we said okay let's do this. And this is the start of collaboration and doing it by design. So we haven't lost that day but this only brings it to the forefront just as you said, yes, that is what we want. We want to make sure that in this ecosystem we have a way to ensure that we are bringing together convening not just point products or different service providers but taking them together and getting the best outcome so that that end user can have it configured in the way that they want it >>guys, we got to leave it there but it's clear you're helping your customers and your partners on this this digital transformation journey that we already we all talk about. You get this massive portfolio of capabilities, deep, deep expertise, I love the hybrid cloud and AI Focus, Jason and money really appreciate you coming back in the cubes. Great to see you both. >>Thank you so much. Dave Fantastic. All >>Right. And thank you for watching everybody's day Vigilante for the Cuban. Our continuous coverage of IBM, think 2021, the virtual edition. Keep it right there. Yeah. Mhm. Mhm. >>Mhm.

(upbeat music) >> Announcer: From around the globe. It's the cube with digital coverage of IBM Think 2021 brought to you by IBM. >> Hi, welcome back everyone to the Cubes coverage of IBM Think 2021 virtual. I'm John Furrier, host of the cube. Got a great guest, Rick Smith, CTO of IBM Anthem client team. Rick. Great to see you. Thanks for coming on the cube. >> Yeah. Thank you, John. Nice to see you as well, virtually. >> First introduce yourself, what you do there, what's going on on your plate these days, honestly, COVID, we're coming out of it soon. Take a minute to introduce yourself. >> Yeah, so I've got about 15 years in the seat with Anthem. Previous to that I worked at Pretty university as the CTO in Indiana. So haven't really left, but started working with Anthem as a technical architect, eventually moved into the CTO role and have been part of, you know, a long journey with them that started at a managed services agreement in 2005. And here we are in 2021. So I've been through a lot of changes they've made to improve themselves and move into digitalization. And certainly the changes we've made too to accommodate that as we went through the years. >> Awesome. Well, thanks for that setup. I really want to dig into this expansion of project Sirius. You guys have had a multi decade partnership with IBM and then last year you launched this expansion, project Sirus. Can you describe this project? And what does it mean? And this new term I've heard, enterprise hybrid cloud as a service. Sounds very interesting. >> Yeah. So that's my term. I'm hoping you made it patent or something like that. But the reality is you hear our CEO talk and say that 75% of corporate workloads are not in the cloud yet. Right? And Anthem is no different, right? So they starting to go into cloud and those kinds of things. But they said to us, you know, "Hey, we've got a long series of excellence with you from a delivery perspective, reliability perspective is kind of the bedrock of what we do, but we don't want to be in the data center business, right? And we want to transform and move to cloud. We want to become a more of an AI company and these kinds of things. And we said, well, we think we can actually put together a program... Excuse me, program for you to allow you to do that, right? And so we formed something called project Sirius which is really an expansion of our partnership. So if I look back, John, we did about 80% of the end-to-end delivery for Anthem from a managed services perspective. In other words, they did a few pieces and we said, we think we could improve that if we had the entire 100%. And so project Sirius was about, you know, extending from 80% to 100%. It was also about taking a series of applications that were important to them and actually say, we'll actually take them on and transform them 100% all the way to cloud and take advantage of new things. It was about a commitment to closing those data centers, right? So they have five strategic data centers. And about 24,000 hosts that we said we will actually commit to getting those, you know, getting you out of the data centers and moving those to either IBM cloud or close to IBM cloud if you will, I'll come back to that in a minute. And we'll also build something called ATEC, Anthem Technology Excellent Center, if you will. And that's near and dear to my heart because that's sort of my baby, right? So it's a transformation engine and we can talk a little bit more about that in a second. But he said the key to this for us is that, if we look at our trend line, John, over the number of years with Anthem, when we started about 2007 looking at this data, we've grown the number of hosts. We've had to manage, over 600% during that time period. But we've driven down high priority incidents by over 90%. So think about that. You know, this is really important for them to have resiliency and stability in their organization. You know, huge acceleration number of hosts, but drive down the a P zero incidents, if you will. And they said, we need to maintain that and continue to improve upon that. Right? >> Yeah. >> So Sirius was a commitment to take that further, right? Start driving AAN, AI into the operations, if you will in everything that we do. So Anthem is transforming to do AI and machine learning for their members. We're committed to transforming and doing the same kind of thing on our operational side if you will. >> Yeah, that's awesome. And I think one of the things that's interesting that jumps out at me just as you're talking, first of all super exciting that project you got out there, a lot going on to unpack, but let's do that. I mean, what I hear you saying which is getting me kind of all triggered in a good way is you got transformation going on and innovation same time. You're innovating with this new enterprise hybrid clouds of service concept. You take in more efficiency, you're doing the classic transformational things, making things more efficient, all that good stuff for agility, but it's actually innovative. So this idea of an enterprise hybrid cloud as a service is pretty innovative because now you're talking about things with AI and scale that come into play, right? So you got the setup, you got it moving into being innovative but scales right there. What is this enterprise hybrid cloud as a service? Because is it just agility, is it the AI piece? Where do you see that going? >> Yeah, that's a great question. Right? And you're a great stuff, man, Johnson. (Smith laughs) So again, Anthem's not ready to move all of their workload to cloud, right? And we recognize (indistinct)is going to be out of the data center business. So how can we take non traditional workloads, right? Get them close to cloud, right? Get them very close to cloud, get us out of the managing the data center and actually allow us to move seamlessly from non traditional workloads into cloud. And so what we did was something we think is very innovative. This is the enterprise hybrid cloud piece for me, right? 'Cause normally hybrid cloud says, you have a client data center location and you have cloud. We marry the two together. We said, you're not going to have a data center location anymore. We're going to have our data centers, you know, IBM cloud. And we're actually going to put some dedicated space right next to cloud. And when I say next to cloud, I literally mean within a few feet. And we're going to bring these non traditional workloads there, we're going to take the network operation brain and bring it there. And we're going to allow you then to basically be able to move seamlessly from that to directly into cloud and improve operations at the same time. There's other a side benefit to this too. The other unintended sort of benefit is that what any organization, right? That you find stuff in the data center that hasn't been looked at for a long period of time, right? Application teams haven't looked at it, et cetera, et cetera. We're literally touching every single host. Right? So this gives us an opportunity to also work with our teams and find things that really can just be thrown away. Right? And this is great because we're actually making them more efficient, optimizing the cost structures as we go about it. >> Yeah. I mean the operational model changes me. You mentioned that just that whole point about you're kind of doing some discovery on apps, this becomes kind of sets the table for AI ops which is just code word for day two operations or full cloud native environments, which now you're seeing cloud native include legacy. Yes. Because you can put containers into the mix and you can then create these integration points that you don't have to kind of get rid of the old to bring in the new. So the dimension of what's going on here is pretty interesting, right? When you start thinking about that, "Okay. I can modernize the same time as connect two existing systems." >> That's exactly right. And we put the things very close to one another. And if there's any concerns over data security compliance or healthcare regulated industry, of course, we can have the workloads located in the best location to ensure that security is in place. Right? So that's what's beautiful about it, right? We can kind of hit every layer that's possible from having it just as secure as completely privatized to going directly over to public cloud or connecting the two together as we go along. >> Well, you're definitely a pioneer. I love that enterprise hybrid cloud as a service. I think that's something that's relevant. We're living in a hybrid world. I mean, the cube, we used to go to events now it's virtual events, but when now the events come back, they're hybrid events. Every company is experiencing this phenomenon on hybrid something, not just technology. The ops got to adapt, so super cool. You mentioned something that was your baby. I want to get back to you. And you said you want to talk about, I want to just bring that up. This Anthem technology excellence center is your baby. ATech I think you said for short. >> Yeah. We call it Atech for short. And really, John, we said that it's got to be more than just taking that other 20% that we don't run today. And we're doing some very innovative things moving non-traditional workloads. Like I said, all that kind of stuff was very cool, right? But we need a transformation engine, right? And we need the ability to transform skills. Like upscale the people at Anthem as well as IBM, right there on the account team, it's a big account. We want to think of new ways to work together. Right? Traditional managed services is like, what? Someone cuts a ticket and says, "Give me X by her seat." Right? That's the traditional model. And we said, that's not good enough. We need to collaborate better together. And we are willing to redefining how we form our teams to work with Anthem. Right? So if we want to form, for example, a product ownership team that builds it, runs it, maintains it. And that team has Anthem plus IBM together. we're going to use ATEC as a vehicle to design that and drive it and make sure they have all the skills they need within that group to do that. Right? That's new ways of working together. And it's also to drive things like site reliability engineering, right? Cloud service management operations, make sure that Anthem has the right training, make sure we work together on these kinds of things. So it's really kind of an exciting thing. And it's intended to be a co-created model, right? So we actually work with the Anthem, we co-create using IBM garage methodologies and then the idea is to coast staff it, but it's tended to be a thin layer of world-class engineering. That's really the whole point of it. And yeah, I'm super excited about that. As you move forward, yeah. >> While you're speaking our language, the cube we'd love the co-creation we do with media. It's always fun to create content together. And sometimes in real time put it together like we're doing now. And it creates a bond. I mean, I got to bring this up because this is becoming more and more obvious. And now mainstream, the notion of co-creation, the notion of ecosystems and ecosystems really meaning network effect and integrating with other parties, right? Companies and our systems. If you look at the underlying business model as a systems management software bottle. Okay. So with that, these ecosystems, the network effect. If you build together, you stay together. I mean, this is a different mindset. It's different dynamic. It's a different relationship that companies are now looking for in what used to be called suppliers. Are you supplying something? Are you building together? Right. So this seems to be the theme. Can you expand on this new trend? >> Right. And get away from the strict racing, this person does, this person does that. Instead, we build a team together that has all the skills necessary and that team owns a product life cycle. They build it, run it and maintain it. And that's changing the way we deliver services from IBM perspective significantly, right? Because that's not our traditional model but that's what we're doing. So we're really out in the front end, on the front edge if you will. Changing that model completely. And it's one of the most exciting things for me, you know, as far as going forward. >> You know, this whole idea of partnerships has always kind of been there but now it gets modernized and uplifted if you will, to a new level. And it really is about watching each other's backs too when you have that kind of... 'Cause we're talking about like pushing the envelope on probably the biggest confluence of tech trends I've ever seen in my career. And I've seen many big waves, you know, from the different revolutions and inflection points. Now it's sort of all coming together, right? At scale too, it's happening very fast. I mean, the change over is happening in years that once you took decades before. So it's really is a team approach. >> Yeah. There's no doubt about it. And I see it every day in the work we're doing. And it's like, for example, at Atech where we're working with the data scientists at the Anthem, we're thinking of new ways to build things they've never done before. We're hoping to enable their science, enable the things they want to do for digitization standpoint, the same token I'm taking, you know, a data scientist and putting them on the operation side too. Right? So we're doing both these kinds of things together. And really I didn't say this before, but this whole thing is about driving automation, right? Driving down, no human touch, soft service, automation. That is kind of been the linchpin of this. And I also want to say John, that doing this all during a pandemic, you know, we signed our new agreement together with them at a quarter, at the end of March in 2020. And we went live in August 1st with all the changes, the extra 20% capacity to over 300 plus applications completely, started Atech from co-creation in a pandemic. And we both agreed as a company, I give great credit to our client and to the numbers involved that everyone set up front and during March. The pandemic's not an excuse to get anything done. So, we're going to go forward and make it happen. That's probably the thing I'm most proud about. That was just... It's crazy when you think of how big the project was and do pull it off during a pandemic. >> Yeah. There's going to be two sides of the street and this one, this pandemics over the ones who made it through and refactored and or innovated. Cause it's not just about being and having a tale, it's about taking advantage of the situation and the ones who didn't do anything. Whether they were in the cloud or not, that's not to me. That's not the issue of you're in the cloud you had an advantage. >> It's not. Right. >> But there's going to be two sides of the streets. And I think the one thing that the pandemic has shown us and I'd love to get your reaction as a final comment here is that when you pull back when the pandemic, it showed all the scabs, it shows everything. And you can see what's obvious and it becomes a forcing function. Necessity's the mother of all invention as expression goes so you can see what's worth doubling down on and you can see the productivity gains and that becomes clear. >> Yeah. Yeah. And I think there's good and bad with everything, right? Pros and cons, like you said, and you know, one of the cons I think is the having to schedule all interactions is definitely a con, right? Because when you spend time not only with the client virtually but in person, you do get the advantage of having, you know, chalk talks and things like that. They're not scheduled. Right? So that's definitely one of the cons side, but one of the pro side is it did provide some focus, right? Kind of extreme focus and on what's important and allowed us to, you know, I think dove some bonds with the Anthem leadership team and the application teams doing it virtually over cameras like this that maybe happen at a larger scale than they might have normally been because the pandemic kind of allowed us to do that and made that happen. >> Great stuff, Rick, great insight. Great to have you on the cube as always. Great to talk tech, talk business, talk about the transformation and innovation and the cloud scale. Thanks for coming on Rick Smith, CTO of the IBM Anthem client team. Thanks for coming on the cube. >> You're welcome. Thanks John. >> Okay. Cube coverage of IBM Think 2021. I'm John. For your host of the cube. Thanks for watching. (soft music) (upbeat music)

welcome everyone to thecube virtual i am your host rebecca knight today we are talking about cyber security and health care our guest is ken checker he is a problem solver at netscout thanks so much for coming on the show ken oh my pleasure thank you for having me i love your job title a problem solver tell our viewers a little bit about netscout and about your role there sure no i appreciate that uh yeah netscout's been around since 1984 uh and the the gentleman starter company two gentlemen starter company uh anil sengal is still our ceo he's very passionate about what we do believes in what we do and our focus really is is really service triage and making sure that important customer services and none more important than health care are are up and running and functional and so our focus is really they're really protecting we call ourselves guardians of the connected world uh we take that very seriously uh because when you think about the the technology uh the complexity and how we all really the reliance on everything that we do and how we uh rely on technology as a just a society um we really our focus is protecting that so the applications the services the network uh that's all part of the the service chain for that well we know that healthcare organizations and hospitals are under tremendous strain and pressure because of the covet-19 pandemic but also recently hospitals all over the country have been hit and targeted in a scourge of ransomware attacks can you tell our viewers a little bit about what you're seeing and what's what's happening right now oh yes it's uh it's really sad uh it's just an interesting uh it's an interesting time in the world obviously uh but we are seeing a very heavy increase in the number of attacks on from a cyber security perspective really an extortion and ransomware and there's a there's a slight difference between the two um but effectively what's happening the we'll call them the uh the bad guys are going after healthcare organizations that have some some vulnerabilities uh where you know they have some they have some areas where they can be attacked and effectively what happens is they will either launch a denial of service attack which is really a lot of robot type computers launching just directed attacks at these particular caregiving organizations these hospitals uh and then so they're trying to take down services um and that's one thing and so that's really more of a ransomware where they hey we showed you we can do it now we're going to extort money from you until you pay the other one is more of a ransomware where they've already penetrated the what we'll call defenses of the of the hospital and then now they're they're saying okay we've already we've already taken control of your system and they lock you out until you pay the ransom both we're seeing lots of attacks in that realm so what is the upshot in terms of patient care i mean this this sounds awful what are patients seeing what are doctors seeing well it's a really good point uh especially in today's world with the pandemic but really any time for health care we all have you know children aunts uncles moms dads nobody wants to be in the hospital for extended periods of time and when they're in the hospital we want to make sure that you know from a healthcare organization they want to make sure they give the best care possible and the caregiver so the nurse the doctor has the opportunity to do what they do and focus on what their their caregiving and not on the technology so when things like ransomware extortion or any particular uh impact on performance for a particular application it just impacts the caregiver which is you know and it affects us because these are people that you care about you don't want them in the hospital you don't want them in pain and the caregivers there you know these are passionate people that do what they do obviously they're dedicated to it so when there's an impact from a cyber security perspective or a application or network issue that affects health care that affects our loved ones and you just you know you really put yourself in that position we uh especially netscout we like to view we partner with our customers so and we don't take that lightly that's something that we mean and it's heartfelt and the reason for that is we look at ourselves as an extension of their team this is what healthcare organizations offer to their to their patients and they're there for for care to get well we want to make sure they have every opportunity to do that and because those healthcare organizations rely so much on technology networks applications and really protection from bad guys in cyber security uh we just want to make sure that those services are assured and that's why that's where our focus is so this i mean there are lives in the balance as you're describing this is a technical challenge but it's also one of resources a lot of these organizations just simply do not have the resources to deal with these problems effectively great point that's a great point i mean especially in today's world the the actual industry for healthcare has really taken a beating because it really had to focus their their whole uh all of their funds frankly and all of their uh the resources towards the pandemic which would be personal equipment mobile hospitals and that's that's taken a tremendous toll and they've also from just a revenue perspective they've really taken a beating frankly on on what happens from their revenue cycles because elective surgeries are way down so when you start looking at you take that into consideration so they've got very very tight resources and cyber security in general is a just a thankless job they're under attack every single day no matter what their industry is so when you look at the at the current situation to get tight resources cyber security is under a lot of stress and oh by the way here come the ransomware and extortion attacks it's just it's just a it's terrible what's going on but this is an area where where we feel this is a spot where we can really help number one our focus is really on network and service assurance so the applications in the network and that's what we're very good at and been doing it for many years but the the upside and the place where we really feel we can help uh is really twofold and that is that same solution the same deployment that we have for network and application really can be leveraged by cyber security folks as well mainly towards the areas of denial of service mainly towards areas of voice over ip we think of telecommunications and telemedicine that's all being leveraged and heavily leveraged right now specifically by healthcare organizations well again if i'm a bad guy and i know you're trying to use your telemedicine to take care of your patients and have that interaction with the doctor and the patient and i take those services down well now i've impacted patient care though that all runs over unified communications protocols voice and video things that we can monitor not only for performance but also when we see cyber type issues and that's a it's a really big uh i would call it a bit of a hole at the moment because that's a spot where cyber security teams are so strapped so resource strapped as well uh from from what they're trying to deal with every day that's a spot we can help with and help with immediately and as i mentioned the other part is really the denial of service pieces which is that's part of what we do as part of our our framework of what we deliver for services so you're describing an exceedingly complex caregiver chain on so many different levels in terms of cyber security in terms of telemedicine um and you also said that netscout really partners with its clients talk a little bit about netscout solution and how it helps clients and or healthcare organizations grapple with these challenges no that's a great question well the the one thing uh right off the bat is we look at network traffic and that means application traffic so while we plug in on the network and take traffic from taps and spans and whatnot we take traffic into our appliances so that we can then we crunch that the data through our smart data we call adaptive service intelligence that's our patent and we run it through that engine and that creates smart data and that smart data then can be leveraged for muji is my problem with my network is my problem with my application is it something like a service enabler like dns or dhcp or ldap which is really the basic uh basic building box for active directory for authentication uh so when you look at a complete as you mentioned a complex chain uh an electronic medical records application uh an emr that's really the that's really the go-to application for for a hospital uh because it's scheduling that's billing that's diagnosis that's that's history that's patient history it's just so it's so integral to what they do and when there's an impact with that that affects patient care and no one ever wants to hear oh my goodness we we log we had a bad outcome with the patient because of a complete a computer glitch you know network application what have you uh and so what we do is the ability to take all that data in crunch it through our engine and then and then display that in dashboards that are very easily consumable by not just network people but really application even management cyber security unified communications folks and and the focus here is we want to get the problem set we know they're going to be problems it happens every day and you know networks and applications are complex the idea is when we have an issue like that let's get the problem to the right team so that they can then go through their service restoration process and again the whole point here is keep services up and running but the the challenge becomes in a complex application team set up where you've got dns dhcp ldap radius so you've got service enablers then you've got web servers application server database servers load balancers firewalls when somebody says oh my goodness the emr is down or we're having issues with our network that's a very tough chain to try and pinpoint it's almost needle in a haystack so what we do and this is kind of our our bailiwick in the world is really we take all of that different traffic and we expose uh where where the hot spots where's the latency where are the error codes where do we see protocols that aren't behaving well where are we seeing things that are we're seeing authentication failures and the big win for the for the healthcare organization on that and that standpoint is i can see all of my traffic all of my applications and then i can pinpoint where i'm having issues so that i can restore services very quickly what are some of the best practices that have emerged in terms of the company in terms of the organizations and hospitals that are doing this well what would you say that they're doing right one thing they want a partner so they recognize the fact that number one you know they've got limited staff uh and they actually want to partner with netscout and what that means is we actually go in and we'll design solutions that will address their specific requirements that's that's very important what we do but when we do so we take uh you know we different product sets but our infinite stream our infinite stream next generation isng is our data collector and that's really the the workhorse of our solution it processes all the packets from you know we'll get technical here for a second one gig to 100 gig and that's a lot of data to to to process and because we can just get to the point with the process to the smart data engine and get to the problem show me where my latency is show where my problems are showing my protocols uh pulling that up through our packet flow which engine which kind of facilitates us collecting from multiple hops of the network uh a lot of times uh iit folks will ask us well we want hop to hop views of this i'm like great let's do that we can do it right now we just need to sit down design it but we really design towards their their use cases and in healthcare it's very common you can have dmz's you're going to have people accessing their electronic medical records through their dmz uh and things like that and as it goes through the back end services we basically take a traffic feed from all those different hops of the network or in cases there that make the most sense uh the primary spartan choke points and then take that data in and then we do what we do we expose the data and expose the performance information and most customers and it's like this in the world people usually don't call you up to say hey rebecca you're doing a great job today i want to buy you a cup of coffee especially in i.t they call up to say hey things aren't working hey fix it hey i can't do something and so our our job is to help facilitate with those customers and really partner with them to design solutions so that they can not only view that information uh but also triage it really quick and the word triage makes a great deal of uh sense in health care for example if you have a you know you hurt your finger they're not going to take an x-ray of your foot it makes no sense because they've already triaged that that's not your problem we do the same thing but we do it more from the network and application side to see where the hot spots are you are the it triage so talk a little bit about about this you are a problem solver and so right now we have a crisis on our hands of monumental proportions do you think that it has forced healthcare organizations and hospitals to innovate more quickly at this time or do you think that there is still just so much uncertainty taking place right now that it is hard to see the forest for the trees what what are you seeing that's a that's a really good question uh we're seeing both uh just to put it just very so one of the biggest changes that really the the pandemics had on everybody is the switch to everybody went from i have 10 maybe 20 of my workers working remotely over vpn contractors uh things like people are there just can't be in the office for a reason they switched from 10 to 20 to 70 80 90 percent so it was an overnight change so think of the impact on that the caregivers are at the hospital they're actually you know the frontline workers they're at the hospital you know serving their p their their patients but people in the administration accounting i.t other things that are important to the organization all had to switch to work from home obviously for safety reasons so the impact on just the internet link number one huge impact before it was used for outbound hey i'm gonna go check you know i'm gonna go do some research i'm gonna go check a website i'm gonna you know see what's what's uh what sports activities going on today now all the traffic is coming inbound on the internet and number so that's number one number two big change vpns vpns took an enormous beating that maybe they were size for for that type of scalability overnight and maybe they weren't so the organizations that were kind of prepped for it not such a big change and we've seen some good results from that but there are also organizations that immediately had to switch to oh my goodness i need to upgrade my vpns and my internet links because i wasn't prepared for this um so the the larger organizations sometimes have a little more uh capabilities to make that change quick the smaller organizations that's a tough call so they really have had to innovate quite a quite a bit on that side of it but when you add the that stress on things that also puts shows that the internet and the vpn is really points where the bad guys are going to target which again we're seeing we're starting to see that in the ransomware and the extortion attacks so it has forced innovation certainly um but you bring it to the point of force through the trees uh there's still a lot of work to be done uh so that's that's where we're really uh putting a lot of our focus especially in health care right now because it's got the the biggest impact uh well frankly to society right now and the religious uh the companies so as company as healthcare organizations are navigating this period of new normal and of course we've had some positive vaccine news so we can say that that perhaps there is going to be an end to this pandemic uh in the coming year but how are they planning ahead i want you to close us out here with how healthcare organizations are thinking about the next 12 to 24 months and if you have any advice for them i'm sure they would be all ears uh yeah i think we could all use some good advice right now on that one short answer is you know i don't know either right now in healthcare it is a big challenge because of that as mentioned earlier the impact on on on the personal protection equipment mobile hospitals and and frankly where they've had in the revenue laws so it's become a you basically have to do more with less right now uh which is one of the things that we do uh and really it's kind of our message for customers anyway i'm a big proponent of use what we have what if you have our solution use what you have and use it to its fullest extent uh especially while times are lean you know we just don't the wallets aren't as big right now so we're gonna have to really focus yet i mean has there been a bigger time in healthcare ever than right now i can't think of one so our focus right now and our message to our customers and anyone else is if you've got our types of solution use it to its fullest capability so that you can triage and so that you can you know not have patient impacting issues and on top of all the other things you have to deal with you bring up the point about the vaccines one of the things that we've seen especially for what's called healthcare organizations that are more research focused is um the bad guys aren't very nice so the bad guys are going to go after organizations where they can have a big we'll call it splash or they can steal something so research hospitals that that are working on vaccines or something in that realm have been huge targets again ddos for ransomware and extortion my message for anyone in healthcare right now is you know bless you first of all and second of all use what you have to its fullest extent which means a solution like ours yes use it for network monitor use it for application monitoring but but please use it to protect yourself for cyber security type visibility uh we typically in a lot of cases uh we'll see uh traffic that that some cyber security tools don't and not because they're bad tools but because we're installed in places that they sometimes aren't so that might be uh where they're typically installed maybe on the perimeters of network and endpoints we actually are instrumented through that service chain so not only the outbound internet the wide area network links the vpns and dmzs and and vdi and all those acronyms that i'm throwing out those are typical spots for us as well as though virtualization so that can be cloud or private cloud so effectively we have areas of visibility that can be leveraged in big bigger and better ways even really on the cyber security and unified communication sides of the fence so my message would be to be just use the what you have to its fullest capability uh especially when times are lean and uh keep up the good fight excellent leverage what you got ken checkout problem solver at netscout thank you so much for coming on thecube thank you for having me been a pleasure i'm rebecca knight stay tuned for more of the cube virtual you

>>From around the globe. It's the cube with digital coverage of AWS reinvent 2020, sponsored by Intel and AWS. >>Welcome back to the cubes coverage of AWS reinvent 2020 I'm Lisa Martin. Joining me next is one of our cube alumni. Breton McMillan is back the director of us, federal for AWS. Right. It's great to see you glad that you're safe and well. >>Great. It's great to be back. Uh, I think last year when we did the cube, we were on the convention floor. It feels very different this year here at reinvent, it's gone virtual and yet it's still true to how reinvent always been. It's a learning conference and we're releasing a lot of new products and services for our customers. >>Yes. A lot of content, as you say, the one thing I think I would say about this reinvent, one of the things that's different, it's so quiet around us. Normally we're talking loudly over tens of thousands of people on the showroom floor, but great. That AWS is still able to connect in such an actually an even bigger way with its customers. So during Theresa Carlson's keynote, want to get your opinion on this or some info. She talked about the AWS open data sponsorship program, and that you guys are going to be hosting the national institutes of health, NIH sequence, read archive data, the biologist, and may former gets really excited about that. Talk to us about that because especially during the global health crisis that we're in, that sounds really promising >>Very much is I am so happy that we're working with NIH on this and multiple other initiatives. So the secret greed archive or SRA, essentially what it is, it's a very large data set of sequenced genomic data. And it's a wide variety of judge you gnomic data, and it's got a knowledge human genetic thing, but all life forms or all branches of life, um, is in a SRA to include viruses. And that's really important here during the pandemic. Um, it's one of the largest and oldest, um, gen sequence genomic data sets are out there and yet it's very modern. It has been designed for next generation sequencing. So it's growing, it's modern and it's well used. It's one of the more important ones that it's out there. One of the reasons this is so important is that we know to find cures for what a human ailments and disease and death, but by studying the gem genomic code, we can come up with the answers of these or the scientists can come up with answer for that. And that's what Amazon is doing is we're putting in the hands of the scientists, the tools so that they can help cure heart disease and diabetes and cancer and, um, depression and yes, even, um, uh, viruses that can cause pandemics. >>So making this data, sorry, I'm just going to making this data available to those scientists. Worldwide is incredibly important. Talk to us about that. >>Yeah, it is. And so, um, within NIH, we're working with, um, the, um, NCBI when you're dealing with NIH, there's a lot of acronyms, uh, and uh, at NIH, it's the national center for, um, file type technology information. And so we're working with them to make this available as an open data set. Why, why this is important is it's all about increasing the speed for scientific discovery. I personally think that in the fullness of time, the scientists will come up with cures for just about all of the human ailments that are out there. And it's our job at AWS to put into the hands of the scientists, the tools they need to make things happen quickly or in our lifetime. And I'm really excited to be working with NIH on that. When we start talking about it, there's multiple things. The scientists needs. One is access to these data sets and SRA. >>It's a very large data set. It's 45 petabytes and it's growing. I personally believe that it's going to double every year, year and a half. So it's a very large data set and it's hard to move that data around. It's so much easier if you just go into the cloud, compute against it and do your research there in the cloud. And so it's super important. 45 petabytes, give you an idea if it were all human data, that's equivalent to have a seven and a half million people or put another way 90% of everybody living in New York city. So that's how big this is. But then also what AWS is doing is we're bringing compute. So in the cloud, you can scale up your compute, scale it down, and then kind of the third they're. The third leg of the tool of the stool is giving the scientists easy access to the specialized tool sets they need. >>And we're doing that in a few different ways. One that the people would design these toolsets design a lot of them on AWS, but then we also make them available through something called AWS marketplace. So they can just go into marketplace, get a catalog, go in there and say, I want to launch this resolve work and launches the infrastructure underneath. And it speeds the ability for those scientists to come up with the cures that they need. So SRA is stored in Amazon S3, which is a very popular object store, not just in the scientific community, but virtually every industry uses S3. And by making this available on these public data sets, we're giving the scientists the ability to speed up their research. >>One of the things that Springs jumps out to me too, is it's in addition to enabling them to speed up research, it's also facilitating collaboration globally because now you've got the cloud to drive all of this, which allows researchers and completely different parts of the world to be working together almost in real time. So I can imagine the incredible power that this is going to, to provide to that community. So I have to ask you though, you talked about this being all life forms, including viruses COVID-19, what are some of the things that you think we can see? I expect this to facilitate. Yeah. >>So earlier in the year we took the, um, uh, genetic code or NIH took the genetic code and they, um, put it in an SRA like format and that's now available on AWS and, and here's, what's great about it is that you can now make it so anybody in the world can go to this open data set and start doing their research. One of our goals here is build back to a democratization of research. So it used to be that, um, get, for example, the very first, um, vaccine that came out was a small part. It's a vaccine that was done by our rural country doctor using essentially test tubes in a microscope. It's gotten hard to do that because data sets are so large, you need so much computer by using the power of the cloud. We've really democratized it and now anybody can do it. So for example, um, with the SRE data set that was done by NIH, um, organizations like the university of British Columbia, their, um, cloud innovation center is, um, doing research. And so what they've done is they've scanned, they, um, SRA database think about it. They scanned out 11 million entries for, uh, coronavirus sequencing. And that's really hard to do in a typical on-premise data center. Who's relatively easy to do on AWS. So by making this available, we can have a larger number of scientists working on the problems that we need to have solved. >>Well, and as the, as we all know in the U S operation warp speed, that warp speed alone term really signifies how quickly we all need this to be progressing forward. But this is not the first partnership that AWS has had with the NIH. Talk to me about what you guys, what some of the other things are that you're doing together. >>We've been working with NIH for a very long time. Um, back in 2012, we worked with NIH on, um, which was called the a thousand genome data set. This is another really important, um, data set and it's a large number of, uh, against sequence human genomes. And we moved that into, again, an open dataset on AWS and what's happened in the last eight years is many scientists have been able to compute about on it. And the other, the wonderful power of the cloud is over time. We continue to bring out tools to make it easier for people to work. So what they're not they're computing using our, um, our instance types. We call it elastic cloud computing. whether they're doing that, or they were doing some high performance computing using, um, uh, EMR elastic MapReduce, they can do that. And then we've brought up new things that really take it to the next layer, like level like, uh, Amazon SageMaker. >>And this is a, um, uh, makes it really easy for, um, the scientists to launch machine learning algorithms on AWS. So we've done the thousand genome, uh, dataset. Um, there's a number of other areas within NIH that we've been working on. So for example, um, over at national cancer Institute, we've been providing some expert guidance on best practices to how, how you can architect and work on these COVID related workloads. Um, NIH does things with, um, collaboration with many different universities, um, over 2,500, um, academic institutions. And, um, and they do that through grants. And so we've been working with doc office of director and they run their grant management applications in the RFA on AWS, and that allows it to scale up and to work very efficiently. Um, and then we entered in with, um, uh, NIH into this program called strides strides as a program for knowing NIH, but also all these other institutions that work within NIH to use the power of the cloud use commercial cloud for scientific discovery. And when we started that back in July of 2018, long before COVID happened, it was so great that we had that up and running because now we're able to help them out through the strides program. >>Right. Can you imagine if, uh, let's not even go there? I was going to say, um, but so, okay. So the SRA data is available through the AWS open data sponsorship program. You talked about strides. What are some of the other ways that AWS system? >>Yeah, no. So strides, uh, is, uh, you know, wide ranging through multiple different institutes. So, um, for example, over at, uh, the national heart lung and blood Institute, uh, do di NHL BI. I said, there's a lot of acronyms and I gel BI. Um, they've been working on, um, harmonizing, uh, genomic data. And so working with the university of Michigan, they've been analyzing through a program that they call top of med. Um, we've also been working with a NIH on, um, establishing best practices, making sure everything's secure. So we've been providing, um, AWS professional services that are showing them how to do this. So one portion of strides is getting the right data set and the right compute in the right tools, in the hands of the scientists. The other areas that we've been working on is making sure the scientists know how to use it. And so we've been developing these cloud learning pathways, and we started this quite a while back, and it's been so helpful here during the code. So, um, scientists can now go on and they can do self-paced online courses, which we've been really helping here during the, during the pandemic. And they can learn how to maximize their use of cloud technologies through these pathways that we've developed for them. >>Well, not education is imperative. I mean, there, you think about all of the knowledge that they have with within their scientific discipline and being able to leverage technology in a way that's easy is absolutely imperative to the timing. So, so, um, let's talk about other data sets that are available. So you've got the SRA is available. Uh, what are their data sets are available through this program? >>What about along a wide range of data sets that we're, um, uh, doing open data sets and in general, um, these data sets are, um, improving the human condition or improving the, um, the world in which we live in. And so, um, I've talked about a few things. There's a few more, uh, things. So for example, um, there's the cancer genomic Atlas that we've been working with, um, national cancer Institute, as well as the national human genomic research Institute. And, um, that's a very important data set that being computed against, um, uh, throughout the world, uh, commonly within the scientific community, that data set is called TCGA. Um, then we also have some, uh, uh, datasets are focused on certain groups. So for example, kids first is a data set. That's looking at a lot of the, um, challenges, uh, in diseases that kids get every kind of thing from very rare pediatric cancer as to heart defects, et cetera. >>And so we're working with them, but it's not just in the, um, uh, medical side. We have open data sets, um, with, uh, for example, uh, NOAA national ocean open national oceanic and atmospheric administration, um, to understand what's happening better with climate change and to slow the rate of climate change within the department of interior, they have a Landsat database that is looking at pictures of their birth cell, like pictures of the earth, so we can better understand the MCO world we live in. Uh, similarly, uh, NASA has, um, a lot of data that we put out there and, um, over in the department of energy, uh, there's data sets there, um, that we're researching against, or that the scientists are researching against to make sure that we have better clean, renewable energy sources, but it's not just government agencies that we work with when we find a dataset that's important. >>We also work with, um, nonprofit organizations, nonprofit organizations are also in, they're not flush with cash and they're trying to make every dollar work. And so we've worked with them, um, organizations like the child mind Institute or the Allen Institute for brain science. And these are largely like neuro imaging, um, data. And we made that available, um, via, um, our open data set, um, program. So there's a wide range of things that we're doing. And what's great about it is when we do it, you democratize science and you allowed many, many more science scientists to work on these problems. They're so critical for us. >>The availability is, is incredible, but also the, the breadth and depth of what you just spoke. It's not just government, for example, you've got about 30 seconds left. I'm going to ask you to summarize some of the announcements that you think are really, really critical for federal customers to be paying attention to from reinvent 2020. >>Yeah. So, um, one of the things that these federal government customers have been coming to us on is they've had to have new ways to communicate with their customer, with the public. And so we have a product that we've had for a while called on AWS connect, and it's been used very extensively throughout government customers. And it's used in industry too. We've had a number of, um, of announcements this weekend. Jasmine made multiple announcements on enhancement, say AWS connect or additional services, everything from helping to verify that that's the right person from AWS connect ID to making sure that that customer's gets a good customer experience to connect wisdom or making sure that the managers of these call centers can manage the call centers better. And so I'm really excited that we're putting in the hands of both government and industry, a cloud based solution to make their connections to the public better. >>It's all about connections these days, but I wish we had more time, cause I know we can unpack so much more with you, but thank you for joining me on the queue today, sharing some of the insights, some of the impacts and availability that AWS is enabling the scientific and other federal communities. It's incredibly important. And we appreciate your time. Thank you, Lisa, for Brett McMillan. I'm Lisa Martin. You're watching the cubes coverage of AWS reinvent 2020.

>>from around the globe. It's the Cube presenting innovation for good, brought to you by on shape. >>Hello, everyone, and welcome to Innovation for Good Program, hosted by the Cuban. Brought to You by on Shape, which is a PTC company. My name is Dave Valentin. I'm coming to you from our studios outside of Boston. I'll be directing the conversations today. It's a very exciting, all live program. We're gonna look at how product innovation has evolved and where it's going and how engineers, entrepreneurs and educators are applying cutting edge, cutting edge product development techniques and technology to change our world. You know, the pandemic is, of course, profoundly impacted society and altered how individuals and organizations they're gonna be thinking about an approaching the coming decade. Leading technologists, engineers, product developers and educators have responded to the new challenges that we're facing from creating lifesaving products to helping students learn from home toe how to apply the latest product development techniques and solve the world's hardest problems. And in this program, you'll hear from some of the world's leading experts and practitioners on how product development and continuous innovation has evolved, how it's being applied toe positive positively affect society and importantly where it's going in the coming decades. So let's get started with our first session fueling Tech for good. And with me is John Hirschbeck, who is the president of the Suffers, a service division of PTC, which acquired on shape just over a year ago, where John was the CEO and co founder, and Dana Grayson is here. She is the co founder and general partner at Construct Capital, a new venture capital firm. Folks, welcome to the program. Thanks so much for coming on. >>Great to be here, Dave. >>All right, John. >>You're very welcome. Dana. Look, John, let's get into it for first Belated congratulations on the acquisition of Von Shape. That was an awesome seven year journey for your company. Tell our audience a little bit about the story of on shape, but take us back to Day zero. Why did you and your co founders start on shape? Well, >>actually, start before on shaping the You know, David, I've been in this business for almost 40 years. The business of building software tools for product developers and I had been part of some previous products in the industry and companies that had been in their era. Big changes in this market and about, you know, a little Before founding on shape, we started to see the problems product development teams were having with the traditional tools of that era years ago, and we saw the opportunity presented by Cloud Web and Mobile Technology. And we said, Hey, we could use Cloud Web and Mobile to solve the problems of product developers make their Their business is run better. But we have to build an entirely new system, an entirely new company, to do it. And that's what on shapes about. >>Well, so notwithstanding the challenges of co vid and difficulties this year, how is the first year been as, Ah, division of PTC for you guys? How's business? Anything you can share with us? >>Yeah, our first year of PTC has been awesome. It's been, you know, when you get acquired, Dave, you never You know, you have great optimism, but you never know what life will really be like. It's sort of like getting married or something, you know, until you're really doing it, you don't know. And so I'm happy to say that one year into our acquisition, um, PTC on shape is thriving. It's worked out better than I could have imagined a year ago. Along always, I mean sales are up. In Q four, our new sales rate grew 80% vs Excuse me, our fiscal Q four Q three. In the calendar year, it grew 80% compared to the year before. Our educational uses skyrocketing with around 400% growth, most recently year to year of students and teachers and co vid. And we've launched a major cloud platform using the core of on shape technology called Atlas. So, um, just tons of exciting things going on a TTC. >>That's awesome. But thank you for sharing some of those metrics. And of course, you're very humble individual. You know, people should know a little bit more about you mentioned, you know, we founded Solid Works, co founded Solid where I actually found it solid works. You had a great exit in the in the late nineties. But what I really appreciate is, you know, you're an entrepreneur. You've got a passion for the babies that you you helped birth. You stayed with the salt systems for a number of years. The company that quiet, solid works well over a decade. And and, of course, you and I have talked about how you participated in the the M I T. Blackjack team. You know, back in the day, a zai say you're very understated, for somebody was so accomplished. Well, >>that's kind of you, but I tend to I tend Thio always keep my eye more on what's ahead. You know what's next, then? And you know, I look back Sure to enjoy it and learn from it about what I can put to work making new memories, making new successes. >>Love it. Okay, let's bring Dana into the conversation. Hello, Dana. You look you're a fairly early investor in in on shape when you were with any A And and I think it was like it was a serious B, but it was very right close after the A raise. And and you were and still are a big believer in industrial transformation. So take us back. What did you see about on shape back then? That excited you. >>Thanks. Thanks for that. Yeah. I was lucky to be a early investment in shape. You know, the things that actually attracted me. Don shape were largely around John and, uh, the team. They're really setting out to do something, as John says humbly, something totally new, but really building off of their background was a large part of it. Um, but, you know, I was really intrigued by the design collaboration side of the product. Um, I would say that's frankly what originally attracted me to it. What kept me in the room, you know, in terms of the industrial world was seeing just if you start with collaboration around design what that does to the overall industrial product lifecycle accelerating manufacturing just, you know, modernizing all the manufacturing, just starting with design. So I'm really thankful to the on shape guys, because it was one of the first investments I've made that turned me on to the whole sector. And while just such a great pleasure to work with with John and the whole team there. Now see what they're doing inside PTC. >>And you just launched construct capital this year, right in the middle of a pandemic and which is awesome. I love it. And you're focused on early stage investing. Maybe tell us a little bit about construct capital. What your investment thesis is and you know, one of the big waves that you're hoping to ride. >>Sure, it construct it is literally lifting out of any what I was doing there. Um uh, for on shape, I went on to invest in companies such as desktop metal and Tulip, to name a couple of them form labs, another one in and around the manufacturing space. But our thesis that construct is broader than just, you know, manufacturing and industrial. It really incorporates all of what we'd call foundational industries that have let yet to be fully tech enabled or digitized. Manufacturing is a big piece of it. Supply chain, logistics, transportation of mobility or not, or other big pieces of it. And together they really drive, you know, half of the GDP in the US and have been very under invested. And frankly, they haven't attracted really great founders like they're on in droves. And I think that's going to change. We're seeing, um, entrepreneurs coming out of the tech world orthe Agnelli into these industries and then bringing them back into the tech world, which is which is something that needs to happen. So John and team were certainly early pioneers, and I think, you know, frankly, obviously, that voting with my feet that the next set, a really strong companies are going to come out of the space over the next decade. >>I think it's a huge opportunity to digitize the sort of traditionally non digital organizations. But Dana, you focused. I think it's it's accurate to say you're focused on even Mawr early stage investing now. And I want to understand why you feel it's important to be early. I mean, it's obviously riskier and reward e er, but what do you look for in companies and and founders like John >>Mhm, Um, you know, I think they're different styles of investing all the way up to public market investing. I've always been early stage investors, so I like to work with founders and teams when they're, you know, just starting out. Um, I happened to also think that we were just really early in the whole digital transformation of this world. You know, John and team have been, you know, back from solid works, etcetera around the space for a long time. But again, the downstream impact of what they're doing really changes the whole industry. And and so we're pretty early and in digitally transforming that market. Um, so that's another reason why I wanna invest early now, because I do really firmly believe that the next set of strong companies and strong returns for my own investors will be in the spaces. Um, you know, what I look for in Founders are people that really see the world in a different way. And, you know, sometimes some people think of founders or entrepreneurs is being very risk seeking. You know, if you asked John probably and another successful entrepreneurs, they would call themselves sort of risk averse, because by the time they start the company, they really have isolated all the risk out of it and think that they have given their expertise or what they're seeing their just so compelled to go change something, eh? So I look for that type of attitude experience a Z. You can also tell from John. He's fairly humble. So humility and just focus is also really important. Um, that there's a That's a lot of it. Frankly, >>Excellent. Thank you, John. You got such a rich history in the space. Uh, and one of you could sort of connect the dots over time. I mean, when you look back, what were the major forces that you saw in the market in in the early days? Particularly days of on shape on? And how is that evolved? And what are you seeing today? Well, >>I think I touched on it earlier. Actually, could I just reflect on what Dana said about risk taking for just a quick one and say, throughout my life, from blackjack to starting solid works on shape, it's about taking calculated risks. Yes, you try to eliminate the risk Sa's much as you can, but I always say, I don't mind taking a risk that I'm aware of, and I've calculated through as best I can. I don't like taking risks that I don't know I'm taking. That's right. You >>like to bet on >>sure things as much as you sure things, or at least where you feel you. You've done the research and you see them and you know they're there and you know, you, you you keep that in mind in the room, and I think that's great. And Dana did so much for us. Dana, I want to thank you again. For all that, you did it every step of the way, from where we started to to, you know, your journey with us ended formally but continues informally. Now back to you, Dave, I think, question about the opportunity and how it's shaped up. Well, I think I touched on it earlier when I said It's about helping product developers. You know, our customers of the people build the future off manufactured goods. Anything you think of that would be manufacturing factory. You know, the chair you're sitting in machine that made your coffee. You know, the computer you're using, the trucks that drive by on the street, all the covert product research, the equipment being used to make vaccines. All that stuff is designed by someone, and our job is given the tools to do it better. And I could see the problems that those product developers had that we're slowing them down with using the computing systems of the time. When we built solid works, that was almost 30 years ago. If people don't realize that it was in the early >>nineties and you know, we did the >>best we could for the early nineties, but what we did. We didn't anticipate the world of today. And so people were having problems with just installing the systems. Dave, you wouldn't believe how hard it is to install these systems. You need toe speck up a special windows computer, you know, and make sure you've got all the memory and graphics you need and getting to get that set up. You need to make sure the device drivers air, right, install a big piece of software. Ah, license key. I'm not making this up. They're still around. You may not even know what those are. You know, Dennis laughing because, you know, zero cool people do things like this anymore. Um, and it only runs some windows. You want a second user to use it? They need a copy. They need a code. Are they on the same version? It's a nightmare. The teams change, you know? You just say, Well, get everyone on the software. Well, who's everyone? You know, you got a new vendor today? A new customer tomorrow, a new employee. People come on and off the team. The other problem is the data stored in files, thousands of files. This isn't like a spreadsheet or word processor, where there's one file to pass around these air thousands of files to make one, even a simple product. People were tearing their hair out. John, what do we do? I've got copies everywhere. I don't know where the latest version is. We tried like, you know, locking people out so that only one person can change it At the time that works against speed, it works against innovation. We saw what was happening with Cloud Web and mobile. So what's happened in the years since is every one of the forces that product developers experience the need for speed, the need for innovation, the need to be more efficient with their people in their capital. Resource is every one of those trends have been amplified since we started on shape by a lot of forces in the world. And covert is amplified all those the need for agility and remote work cove it is amplified all that the same time, The acceptance of cloud. You know, a few years ago, people were like cloud, you know, how is that gonna work now They're saying to me, You know, increasingly, how would you ever even have done this without the cloud. How do you make solid works work without the cloud? How would that even happen? You know, once people understand what on shapes about >>and we're the >>Onley full SAS solution software >>as a service, >>full SAS solution in our industry. So what's happened in those years? Same problems we saw earlier, but turn up the gain, their bigger problems. And with cloud, we've seen skepticism of years ago turn into acceptance. And now even embracement in the cova driven new normal. >>Yeah. So a lot of friction in the previous environments cloud obviously a huge factor on, I guess. I guess Dana John could see it coming, you know, in the early days of solid works with, you know, had Salesforce, which is kind of the first major independent SAS player. Well, I guess that was late nineties. So his post solid works, but pre in shape and their work day was, you know, pre on shape in the mid two thousands. And and but But, you know, the bet was on the SAS model was right for Crick had and and product development, you know, which maybe the time wasn't a no brainer. Or maybe it was, I don't know, but Dana is there. Is there anything that you would invest in today? That's not Cloud based? >>Um, that's a great question. I mean, I think we still see things all the time in the manufacturing world that are not cloud based. I think you know, the closer you get to the shop floor in the production environment. Um e think John and the PTC folks would agree with this, too, but that it's, you know, there's reliability requirements, performance requirements. There's still this attitude of, you know, don't touch the printing press. So the cloud is still a little bit scary sometimes. And I think hybrid cloud is a real thing for those or on premise. Solutions, in some cases is still a real thing. What what we're more focused on. And, um, despite whether it's on premise or hybrid or or SAS and Cloud is a frictionless go to market model, um, in the companies we invest in so sass and cloud, or really make that easy to adopt for new users, you know, you sign up, started using a product, um, but whether it's hosted in the cloud, whether it's as you can still distribute buying power. And, um, I would I'm just encouraging customers in the customer world and the more industrial environment to entrust some of their lower level engineers with more budget discretionary spending so they can try more products and unlock innovation. >>Right? The unit economics are so compelling. So let's bring it, you know, toe today's you know, situation. John, you decided to exit about a year ago. You know? What did you see in PTC? Other than the obvious money? What was the strategic fit? >>Yeah, Well, David, I wanna be clear. I didn't exit anything. Really? You >>know, I love you and I don't like that term exit. I >>mean, Dana had exit is a shareholder on and so it's not It's not exit for me. It's just a step in the journey. What we saw in PTC was a partner. First of all, that shared our vision from the top down at PTC. Jim Hempleman, the CEO. He had a great vision for for the impact that SAS can make based on cloud technology and really is Dana of highlighted so much. It's not just the technology is how you go to market and the whole business being run and how you support and make the customers successful. So Jim shared a vision for the potential. And really, really, um said Hey, come join us and we can do this bigger, Better, faster. We expanded the vision really to include this Atlas platform for hosting other SAS applications. That P D. C. I mean, David Day arrived at PTC. I met the head of the academic program. He came over to me and I said, You know, and and how many people on your team? I thought he'd say 5 40 people on the PTC academic team. It was amazing to me because, you know, we were we were just near about 100 people were required are total company. We didn't even have a dedicated academic team and we had ah, lot of students signing up, you know, thousands and thousands. Well, now we have hundreds of thousands of students were approaching a million users and that shows you the power of this team that PTC had combined with our product and technology whom you get a big success for us and for the teachers and students to the world. We're giving them great tools. So so many good things were also putting some PTC technology from other parts of PTC back into on shape. One area, a little spoiler, little sneak peek. Working on taking generative design. Dana knows all about generative design. We couldn't acquire that technology were start up, you know, just to too much to do. But PTC owns one of the best in the business. This frustrated technology we're working on putting that into on shaping our customers. Um, will be happy to see it, hopefully in the coming year sometime. >>It's great to see that two way exchange. Now, you both know very well when you start a company, of course, a very exciting time. You know, a lot of baggage, you know, our customers pulling you in a lot of different directions and asking you for specials. You have this kind of clean slate, so to speak in it. I would think in many ways, John, despite you know, your install base, you have a bit of that dynamic occurring today especially, you know, driven by the forced march to digital transformation that cove it caused. So when you sit down with the team PTC and talk strategy. You now have more global resource is you got cohorts selling opportunities. What's the conversation like in terms of where you want to take the division? >>Well, Dave, you actually you sounds like we should have you coming in and talking about strategy because you've got the strategy down. I mean, we're doing everything said global expansion were able to reach across selling. We got some excellent PTC customers that we can reach reach now and they're finding uses for on shape. I think the plan is to, you know, just go, go, go and grow, grow, grow where we're looking for this year, priorities are expand the product. I mentioned the breath of the product with new things PTC did recently. Another technology that they acquired for on shape. We did an acquisition. It was it was small, wasn't widely announced. It, um, in an area related to interfacing with electrical cad systems. So So we're doing We're expanding the breath of on shape. We're going Maura, depth in the areas were already in. We have enormous opportunity to add more features and functions that's in the product. Go to market. You mentioned it global global presence. That's something we were a little light on a year ago. Now we have a team. Dana may not even know what we have. A non shape, dedicated team in Barcelona, based in Barcelona but throughout Europe were doing multiple languages. Um, the academic program just introduced a new product into that space that z even fueling more success and growth there. Um, and of course, continuing to to invest in customer success and this Atlas platform story I keep mentioning, we're going to soon have We're gonna soon have four other major PTC brands shipping products on our Atlas Saas platform. And so we're really excited about that. That's good for the other PTC products. It's also good for on shape because now there's there's. There's other interesting products that are on shape customers can use take advantage of very easily using, say, a common log in conventions about user experience there, used to invest of all they're SAS based, so they that makes it easier to begin with. So that's some of the exciting things going on. I think you'll see PTC, um, expanding our lead in SAS based applications for this sector for our our target, uh, sectors not just in, um, in cat and data management, but another area. PTC's Big and his augmented reality with of euphoria, product line leader and industrial uses of a R. That's a whole other story we should do. A whole nother show augmented reality. But these products are amazing. You can you can help factory workers people on, uh, people who are left out of the digital transformation. Sometimes we're standing from machine >>all day. >>They can't be sitting like we are doing Zoom. They can wear a R headset in our tools, let them create great content. This is an area Dana is invested in other companies. But what I wanted to note is the new releases of our authoring software. For this, our content getting released this month, used through the Atlas platform, the SAS components of on shape for things like revision management and collaboration on duh workflow activity. All that those are tools that we're able to share leverage. We get a lot of synergy. It's just really good. It's really fun to have a good time. That's >>awesome. And then we're gonna be talking to John MacLean later about that. Let's do a little deeper Dive on that. And, Dana, what is your involvement today with with on shape? But you're looking for you know, which of their customers air actually adopting. And they're gonna disrupt their industries. And you get good pipeline from that. How do you collaborate today? >>That sounds like a great idea. Um, Aziz, John will tell you I'm constantly just asking him for advice and impressions of other entrepreneurs and picking his brain on ideas. No formal relationship clearly, but continue to count John and and John and other people in on shaping in the circle of experts that I rely on for their opinions. >>All right, so we have some questions from the crowd here. Uh, one of the questions is for the dream team. You know, John and Dana. What's your next next collective venture? I don't think we're there yet, are we? No. >>I just say, as Dana said, we love talking to her about. You know, Dana, you just returned the compliment. We would try and give you advice and the deals you're looking at, and I'm sort of casually mentoring at least one of your portfolio entrepreneurs, and that's been a lot of fun for May on, hopefully a value to them. But also Dana. We uran important pipeline to us in the world of some new things that are happening that we wouldn't see if you know you've shown us some things that you've said. What do you think of this business? And for us, it's like, Wow, it's cool to see that's going on And that's what's supposed to work in an ecosystem like this. So we we deeply value the ongoing relationship. And no, we're not starting something new. I got a lot of work left to do with what I'm doing and really happy. But we can We can collaborate in this way on other ventures. >>I like this question to somebody asking With the cloud options like on shape, Wilmore students have stem opportunities s Oh, that's a great question. Are you because of sass and cloud? Are you able to reach? You know, more students? Much more cost effectively. >>Yeah, Dave, I'm so glad that that that I was asked about this because Yes, and it's extremely gratified us. Yes, we are because of cloud, because on shape is the only full cloud full SAS system or industry were able to reach. Stem education brings able to be part of bringing step education to students who couldn't get it otherwise. And one of most gratifying gratifying things to me is the emails were getting from teachers, um, that that really, um, on the phone calls that were they really pour their heart out and say We're able to get to students in areas that have very limited compute resource is that don't have an I T staff where they don't know what computer that the students can have at home, and they probably don't even have a computer. We're talking about being able to teach them on a phone to have an android phone a low end android phone. You can do three D modeling on there with on shape. Now you can't do it any other system, but with on shape, you could do it. And so the teacher can say to the students, They have to have Internet access, and I know there's a huge community that doesn't even have Internet access, and we're not able, unfortunately to help that. But if you have Internet and you have even an android phone, we can enable the educator to teach them. And so we have case after case of saving a stem program or expanding it into the students that need it most is the ones we're helping here. So really excited about that. And we're also able to let in addition to the run on run on whatever computing devices they have, we also offer them the tools they need for remote teaching with a much richer experience. Could you teach solid works remotely? Well, maybe if the student ran it had a windows workstation. You know, big, big, high end workstation. Maybe it could, but it would be like the difference between collaborating with on shape and collaborate with solid works. Like the difference between a zoom video call and talking on the landline phone. You know, it's a much richer experience, and that's what you need. And stem teaching stem is hard, So yeah, we're super super. Um, I'm excited about bringing stem to more students because of cloud yond >>we're talking about innovation for good, and then the discussion, John, you just had it. Really? There could be a whole another vector here. We could discuss on diversity, and I wanna end with just pointing out. So, Dana, your new firm, it's a woman led firm, too. Two women leaders, you know, going forward. So that's awesome to see, so really? Yeah, thumbs up on that. Congratulations on getting that off the ground. >>Thank you. Thank you. >>Okay, so thank you guys. Really appreciate It was a great discussion. I learned a lot and I'm sure the audience did a swell in a moment. We're gonna talk with on shaped customers to see how they're applying tech for good and some of the products that they're building. So keep it right there. I'm Dave Volonte. You're watching innovation for good on the Cube, the global leader in digital tech event coverage. Stay right there. >>Oh, yeah, it's >>yeah, yeah, around >>the globe. It's the Cube presenting innovation for good. Brought to you by on shape. >>Okay, we're back. This is Dave Volonte and you're watching innovation for good. A program on Cuba 3 65 made possible by on shape of PTC company. We're live today really live tv, which is the heritage of the Cube. And now we're gonna go to the sources and talkto on shape customers to find out how they're applying technology to create real world innovations that are changing the world. So let me introduce our panel members. Rafael Gomez Furberg is with the Chan Zuckerberg bio hub. A very big idea. And collaborative nonprofit was initiative that was funded by Mark Zuckerberg and his wife, Priscilla Chan, and really around diagnosing and curing and better managing infectious diseases. So really timely topic. Philip Tabor is also joining us. He's with silver side detectors, which develops neutron detective detection systems. Yet you want to know if early, if neutrons and radiation or in places where you don't want them, So this should be really interesting. And last but not least, Matthew Shields is with the Charlottesville schools and is gonna educate us on how he and his team are educating students in the use of modern engineering tools and techniques. Gentlemen, welcome to the Cuban to the program. This should be really interesting. Thanks for coming on. >>Hi. Or pleasure >>for having us. >>You're very welcome. Okay, let me ask each of you because you're all doing such interesting and compelling work. Let's start with Rafael. Tell us more about the bio hub and your role there, please. >>Okay. Yeah. So you said that I hope is a nonprofit research institution, um, funded by Mark Zuckerberg and his wife, Priscilla Chan. Um, and our main mission is to develop new technologies to help advance medicine and help, hopefully cure and manage diseases. Um, we also have very close collaborations with Universe California, San Francisco, Stanford University and the University California Berkeley on. We tried to bring those universities together, so they collaborate more of biomedical topics. And I manage a team of engineers. They by joining platform. Um, and we're tasked with creating instruments for the laboratory to help the scientist boats inside the organization and also in the partner universities Do their experiments in better ways in ways that they couldn't do before >>in this edition was launched Well, five years ago, >>it was announced at the end of 2016, and we actually started operation with at the beginning of 2017, which is when I joined, um, So this is our third year. >>And how's how's it going? How does it work? I mean, these things take time. >>It's been a fantastic experience. Uh, the organization works beautifully. Um, it was amazing to see it grow From the beginning, I was employee number 12, I think eso When I came in, it was just a nem P office building and empty labs. And very quickly we had something running about. It's amazing eso I'm very proud of the work that we have done to make that possible. Um And then, of course, that's you mentioned now with co vid, um, we've been able to do a lot of very cool work attire being of the pandemic in March, when there was a deficit of testing, uh, capacity in California, we spun up a testing laboratory in record time in about a week. It was crazy. It was a crazy project, Um, but but incredibly satisfying. And we ended up running all the way until the beginning of November, when the lab was finally shut down. We could process about 3000 samples a day. I think at the end of it all, we were able to test about 100 on the order of 100 and 50,000 samples from all over the state. We were providing free testing toe all of the Department of Public Health Department of Public Health in California, which at the media pandemic, had no way to do testing affordably and fast. So I think that was a great service to the state. Now the state has created that testing system that would serve those departments. So then we decided that it was unnecessary to keep going with testing in the other biopsy that would shut down. >>All right. Thank you for that. Now, Now, Philip, you What you do is mind melting. You basically helped keep the world safe. Maybe describe a little bit more about silver sod detectors and what your role is there and how it all works. >>Tour. So we make a nuclear bomb detectors and we also make water detectors. So we try and do our part thio keep the world from blowing up and make it a better place at the same time. Both of these applications use neutron radiation detectors. That's what we make. Put them out by import border crossing places like that. They can help make sure that people aren't smuggling. Shall we say very bad things. Um, there's also a burgeoning field of research and application where you can use neutrons with some pretty cool physics to find water so you could do things. Like what? A detector up in the mountains and measure snowpack. Put it out in the middle of the field and measure soil moisture content. And as you might imagine, there's some really cool applications in, uh, research and agronomy and public policy for this. >>All right, so it's OK, so it's a It's much more than, you know, whatever fighting terrorism, it's there's a riel edge or I kind of i o t application for what you guys >>do. We do both its's to plowshares. You might >>say a mat. I I look at your role is kind of scaling the brain power for for the future. Maybe tell us more about Charlottesville schools and in the mission that you're pursuing and what you do. >>Thank you. Um, I've been in Charlottesville City schools for about 11 or 12 years. I started their teaching, um, a handful of classes, math and science and things like that. But Thescore board and my administration had the crazy idea of starting an engineering program about seven years ago. My background is an engineering is an engineering. My masters is in mechanical and aerospace engineering and um, I basically spent a summer kind of coming up with what might be a fun engineering curriculum for our students. And it started with just me and 30 students about seven years ago, Um, kind of a home spun from scratch curriculum. One of my goals from the outset was to be a completely project based curriculum, and it's now grown. We probably have about six or 700 students, five or six full time teachers. We now have pre engineering going on at the 5th and 6th grade level. I now have students graduating. Uh, you know, graduating after senior year with, like, seven years of engineering under their belt and heading off to doing some pretty cool stuff. So it's It's been a lot of fun building a program and, um, and learning a lot in the process. >>That's awesome. I mean, you know, Cuba's. We've been passionate about things like women in tech, uh, diversity stem. You know, not only do we need more, more students and stem, we need mawr underrepresented women, minorities, etcetera. We were just talking to John Herstek and integrate gration about this is Do you do you feel is though you're I mean, first of all, the work that you do is awesome, but but I'll go one step further. Do you feel as though it's reaching, um, or diverse base? And how is that going? >>That's a great question. I think research shows that a lot of people get funneled into one kind of track or career path or set of interests really early on in their educational career, and sometimes that that funnel is kind of artificial. And so that's one of the reasons we keep pushing back. Um, so our school systems introducing kindergartners to programming on DSO We're trying to push back how we expose students to engineering and to stem fields as early as possible. And we've definitely seen the first of that in my program. In fact, my engineering program, uh, sprung out of an after school in Extracurricular Science Club that actually three girls started at our school. So I think that actually has helped that three girls started the club that eventually is what led to our engineering programs that sort of baked into the DNA and also our eyes a big public school. And we have about 50% of the students are under the poverty line and we e in Charlottesville, which is a big refugee town. And so I've been adamant from Day one that there are no barriers to entry into the program. There's no test you have to take. You don't have to have be taking a certain level of math or anything like that. That's been a lot of fun. To have a really diverse set of kids enter the program and be successful, >>that's final. That's great to hear. So, Philip, I wanna come back to you. You know, I think about maybe some day we'll be able to go back to a sporting events, and I know when I when I'm in there, there's somebody up on the roof looking out for me, you know, watching the crowd, and they have my back. And I think in many ways, the products that you build, you know, our similar. I may not know they're there, but they're keeping us safe or they're measuring things that that that I don't necessarily see. But I wonder if you could talk about a little bit more detail about the products you build and how they're impacting society. >>Sure, so There are certainly a lot of people who are who are watching, trying to make sure things were going well in keeping you safe that you may or may not be aware of. And we try and support ah lot of them. So we have detectors that are that are deployed in a variety of variety of uses, with a number of agencies and governments that dio like I was saying, ports and border crossing some other interesting applications that are looking for looking for signals that should not be there and working closely to fit into the operations these folks do. Onda. We also have a lot of outreach to researchers and scientists trying to help them support the work they're doing. Um, using neutron detection for soil moisture monitoring is a some really cool opportunities for doing it at large scale and with much less, um, expense or complication than would have been done. Previous technologies. Um, you know, they were talking about collaboration in the previous segment. We've been able to join a number of conferences for that, virtually including one that was supposed to be held in Boston, but another one that was held out of the University of Heidelberg in Germany. And, uh, this is sort of things that in some ways, the pandemic is pushing people towards greater collaboration than they would have been able to do. Had it all but in person. >>Yeah, we did. Uh, the cube did live works a couple years ago in Boston. It was awesome show. And I think, you know, with this whole trend toward digit, I call it the Force march to digital. Thanks to cove it I think that's just gonna continue. Thio grow. Rafael. What if you could describe the process that you use to better understand diseases? And what's your organization's involvement? Been in more detail, addressing the cove in pandemic. >>Um, so so we have the bio be structured in, Um um in a way that foster so the combination of technology and science. So we have to scientific tracks, one about infectious diseases and the other one about understanding just basic human biology, how the human body functions, and especially how the cells in the human body function on how they're organized to create tissues in the body. On Ben, it has this set of platforms. Um, mind is one of them by engineering that are all technology rated. So we have data science platform, all about data analysis, machine learning, things like that. Um, we have a mass spectrometry platform is all about mass spectrometry technologies to, um, exploit those ones in service for the scientist on. We have a genomics platform that it's all about sequencing DNA and are gonna, um and then an advanced microscopy. It's all about developing technologies, uh, to look at things with advanced microscopes and developed technologies to marry computation on microscopy. So, um, the scientists set the agenda and the platforms, we just serve their needs, support their needs, and hopefully develop technologies that help them do their experiments better, faster, or allow them to the experiment that they couldn't do in any other way before. Um And so with cove, it because we have that very strong group of scientists that work on have been working on infectious disease before, and especially in viruses, we've been able to very quickly pivot to working on that s O. For example, my team was able to build pretty quickly a machine to automatically purified proteins on is being used to purify all these different important proteins in the cove. It virus the SARS cov to virus Onda. We're sending some of those purified proteins all over the world. Two scientists that are researching the virus and trying to figure out how to develop vaccines, understand how the virus affects the body and all that. Um, so some of the machines we built are having a very direct impact on this. Um, Also for the copy testing lab, we were able to very quickly develop some very simple machines that allowed the lab to function sort of faster and more efficiently. Sort of had a little bit of automation in places where we couldn't find commercial machines that would do it. >>Um, eso Matt. I mean, you gotta be listening to this and thinking about Okay, So someday your students are gonna be working at organizations like like, like Bio Hub and Silver Side. And you know, a lot of young people they're just don't know about you guys, but like my kids, they're really passionate about changing the world. You know, there's way more important than you know, the financial angles and it z e. I gotta believe you're seeing that you're right in the front lines there. >>Really? Um, in fact, when I started the curriculum six or seven years ago, one of the first bits of feedback I got from my students is they said Okay, this is a lot of fun. So I had my students designing projects and programming microcontrollers raspberry, PiS and order we nose and things like that. The first bit of feedback I got from students was they said Okay, when do we get to impact the world? I've heard engineering >>is about >>making the world a better place, and robots are fun and all, but, you know, where is the real impact? And so um, dude, yeah, thanks to the guidance of my students, I'm baking that Maurin. Now I'm like day one of engineering one. We talk about how the things that the tools they're learning and the skills they're gaining, uh, eventually, you know, very soon could be could be used to make the world a better place. >>You know, we all probably heard that famous line by Jeff Hammer Barker. The greatest minds of my generation are trying to figure out how to get people to click on ads. I think we're really generally generationally, finally, at the point where young students and engineering a really, you know, a passionate about affecting society. I wanna get into the product, you know, side and understand how each of you are using on shape and and the value that that it brings. Maybe Raphael, you could start how long you've been using it. You know, what's your experience with it? Let's let's start there. >>I begin for about two years, and I switched to it with some trepidation. You know, I was used to always using the traditional product that you have to install on your computer, that everybody uses that. So I was kind of locked into that. But I started being very frustrated with the way it worked, um, and decided to give on ship chance. Which reputation? Because any change always, you know, causes anxiety. Um, but very quickly my engineers started loving it, Uh, just because it's it's first of all, the learning curve wasn't very difficult at all. You can transfer from one from the traditional product to entree very quickly and easily. You can learn all the concepts very, very fast. It has all the functionality that we needed and and what's best is that it allows to do things that we couldn't do before or we couldn't do easily. Now we can access the our cat documents from anywhere in the world. Um, so when we're in the lab fabricating something or testing a machine, any computer we have next to us or a tablet or on iPhone, we can pull it up and look at the cad and check things or make changes. That's something that couldn't do before because before you had to pay for every installation off the software for the computer, and I couldn't afford to have 20 installations to have some computers with the cat ready to use them like once every six months would have been very inefficient. So we love that part. And the collaboration features are fantastic, especially now with Kobe, that we have to have all the remote meetings eyes fantastic, that you can have another person drive the cad while the whole team is watching that person change the model and do things and point to things that is absolutely revolutionary. We love it. The fact that you have very, very sophisticated version control before it was always a challenge asking people, please, if you create anniversary and apart, how do we name it so that people find it? And then you end up with all these collection of files with names that nobody ever remembers, what they are, the person left. And now nobody knows which version is the right one. A mess with on shape on the version ING system it has, and the fact that you can go back in history off the document and go back to previous version so easily and then go back to the press and version and explore the history of the part that is truly, um, just world changing for us, that we can do that so easily on for me as a manager to manage this collection of information that is critical for our operations. It makes it so much easier because everything is in one place. I don't have to worry about file servers that go down that I have to administer that have to have I t taken care off that have to figure how to keep access to people to those servers when they're at home, and they need a virtual private network and all of that mess disappears. I just simply give give a person in accounting on shape and then magically, they have access to everything in the way I want. And we can manage the lower documents and everything in a way that is absolutely fantastic. >>Feel what was your what? What were some of the concerns you had mentioned? You had some trepidation. Was it a performance? Was it security? You know some of the traditional cloud stuff, and I'm curious as to how, How, whether any of those act manifested really that you had to manage. What were your concerns? >>Look, the main concern is how long is it going to take for everybody in the team to learn to use the system like it and buy into it? Because I don't want to have my engineers using tools against their will write. I want everybody to be happy because that's how they're productive. They're happy, and they enjoyed the tools they have. That was my main concern. I was a little bit worried about the whole concept of not having the files in a place where I couldn't quote unquote seat in some server and on site, but that That's kind of an outdated concept, right? So that took a little bit of a mind shift, but very quickly. Then I started thinking, Look, I have a lot of documents on Google Drive. Like, I don't worry about that. Why would I worry about my cat on on shape, right? Is the same thing. So I just needed to sort of put things in perspective that way. Um, the other, um, you know, the concern was the learning curve, right? Is like, how is he Will be for everybody to and for me to learn it on whether it had all of the features that we needed. And there were a few features that I actually discussed with, um uh, Cody at on shape on, they were actually awesome about using their scripting language in on shape to sort of mimic some of the features of the old cat, uh, in on, shaped in a way that actually works even better than the old system. So it was It was amazing. Yeah, >>Great. Thank you for that, Philip. What's your experience been? Maybe you could take us through your journey within shape. >>Sure. So we've been we've been using on shaped silver side for coming up on about four years now, and we love it. We're very happy with it. We have a very modular product line, so we make anything from detectors that would go into backpacks. Two vehicles, two very large things that a shipping container would go through and saw. Excuse me. Shape helps us to track and collaborate faster on the design. Have multiple people working a same time on a project. And it also helps us to figure out if somebody else comes to us and say, Hey, I want something new how we congrats modules from things that we already have put them together and then keep track of the design development and the different branches and ideas that we have, how they all fit together. A za design comes together, and it's just been fantastic from a mechanical engineering background. I will also say that having used a number of different systems and solid works was the greatest thing since sliced bread. Before I got using on shape, I went, Wow, this is amazing and I really don't want to design in any other platform. After after getting on Lee, a little bit familiar with it. >>You know, it's funny, right? I'll have the speed of technology progression. I was explaining to some young guns the other day how I used to have a daytime er and that was my life. And if I lost that daytime, er I was dead. And I don't know how we weigh existed without, you know, Google maps eso we get anywhere, I don't know, but, uh but so So, Matt, you know, it's interesting to think about, you know, some of the concerns that Raphael brought up, you hear? For instance, you know, all the time. Wow. You know, I get my Amazon bill at the end of the month that zip through the roof in, But the reality is that Yeah, well, maybe you are doing more, but you're doing things that you couldn't have done before. And I think about your experience in teaching and educating. I mean, you so much more limited in terms of the resource is that you would have had to be able to educate people. So what's your experience been with With on shape and what is it enabled? >>Um, yeah, it was actually talking before we went with on shape. We had a previous CAD program, and I was talking to my vendor about it, and he let me know that we were actually one of the biggest CAD shops in the state. Because if you think about it a really big program, you know, really big company might employ. 5, 10, 15, 20 cad guys, right? I mean, when I worked for a large defense contractor, I think there were probably 20 of us as the cad guys. I now have about 300 students doing cat. So there's probably more students with more hours of cat under their belt in my building than there were when I worked for the big defense contractor. Um, but like you mentioned, uh, probably our biggest hurdle is just re sources. And so we want We want one of things I've always prided myself and trying to do in this. Programs provide students with access two tools and skills that they're going to see either in college or in the real world. So it's one of the reason we went with a big professional cad program. There are, you know, sort of K 12 oriented software and programs and things. But, you know, I want my kids coding and python and using slack and using professional type of tools on DSO when it comes to cat. That's just that That was a really hurt. I mean, you know, you could spend $30,000 on one seat of, you know, professional level cad program, and then you need a $30,000 computer to run it on if you're doing a heavy assemblies, Um and so one of my dreams And it was always just a crazy dream. And I was the way I would always pitcher in my school system and say, someday I'm gonna have a kid on a school issued chromebook in subsidized housing, on public WiFi doing professional level bad and that that was a crazy statement until a couple of years ago. So we're really excited that I literally and you know, March and you said the forced march, the forced march into, you know, modernity, March 13th kids sitting in my engineering lab that we spent a lot of money on doing cad March 14th. Those kids were at home on their school issued chromebooks on public WiFi, uh, keeping their designs going and collaborating. And then, yeah, I could go on and on about some of the things you know, the features that we've learned since then they're even better. So it's not like this is some inferior, diminished version of Academy. There's so much about it. Well, I >>wanna I wanna ask you that I may be over my skis on this, but we're seeing we're starting to see the early days of the democratization of CAD and product design. It is the the citizen engineer, I mean, maybe insulting to the engineers in the room, But but is that we're beginning to see that >>I have to believe that everything moves into the cloud. Part of that is democratization that I don't need. I can whether you know, I think artists, you know, I could have a music studio in my basement with a nice enough software package. And Aiken, I could be a professional for now. My wife's a photographer. I'm not allowed to say that I could be a professional photographer with, you know, some cloud based software, and so, yeah, I do think that's part of what we're seeing is more and more technology is moving to the cloud. >>Philip. Rafael Anything you Dad, >>I think I mean, yeah, that that that combination of cloud based cat and then three d printing that is becoming more and more affordable on ubiquitous It's truly transformative, and I think for education is fantastic. I wish when I was a kid I had the opportunity to play with those kinds of things because I was always the late things. But, you know, the in a very primitive way. So, um, I think this is a dream for kids. Teoh be able to do this. And, um, yeah, there's so many other technologies coming on, like Arduino on all of these electronic things that live kids play at home very cheaply with things that back in my day would have been unthinkable. >>So we know there's a go ahead. Philip, please. >>We had a pandemic and silver site moved to a new manufacturing facility this year. I was just on the shop floor, talking with contractors, standing 6 ft apart, pointing at things. But through it all, our CAD system was completely unruffled. Nothing stopped in our development work. Nothing stopped in our support for existing systems in the field. We didn't have to think about it. We had other server issues, but none with our, you know, engineering cad, platform and product development in support world right ahead, which was cool, but also a in that's point. I think it's just really cool what you're doing with the kids. The most interesting secondary and college level engineering work that I did was project based, taken important problem to the world. Go solve it and that is what we do here. That is what my entire career has been. And I'm super excited to see. See what your students are going to be doing, uh, in there home classrooms on their chromebooks now and what they do building on that. >>Yeah, I'm super excited to see your kids coming out of college with engineering degrees because, yeah, I think that Project based experience is so much better than just sitting in a classroom, taking notes and doing math problems on day. I think it will give the kids a much better flavor. What engineering is really about Think a lot of kids get turned off by engineering because they think it's kind of dry because it's just about the math for some very abstract abstract concept on they are there. But I think the most important thing is just that hands on a building and the creativity off, making things that you can touch that you can see that you can see functioning. >>Great. So, you know, we all know the relentless pace of technology progression. So when you think about when you're sitting down with the folks that on shape and there the customer advisor for one of the things that that you want on shape to do that it doesn't do today >>I could start by saying, I just love some of the things that does do because it's such a modern platform. And I think some of these, uh, some some platforms that have a lot of legacy and a lot of history behind them. I think we're dragging some of that behind them. So it's cool to see a platform that seemed to be developed in the modern era, and so that Z it is the Google docks. And so the fact that collaboration and version ing and link sharing is and like platform agnostic abilities, the fact that that seems to be just built into the nature of the thing so far, That's super exciting. As far as things that, uh, to go from there, Um, I don't know, >>Other than price. >>You can't say >>I >>can't say lower price. >>Yeah, so far on P. D. C. S that work with us. Really? Well, so I'm not complaining. There you there, >>right? Yeah. Yeah. No gaps, guys. Whitespace, Come on. >>We've been really enjoying the three week update. Cadence. You know, there's a new version every three weeks and we don't have to install it. We just get all the latest and greatest goodies. One of the trends that we've been following and enjoying is the the help with a revision management and release work flows. Um, and I know that there's more than on shape is working on that we're very excited for, because that's a big important part about making real hardware and supporting it in the field. Something that was cool. They just integrated Cem markup capability. In the last release that took, we were doing that anyway, but we were doing it outside of on shapes. And now we get to streamline our workflow and put it in the CAD system where We're making those changes anyway when we're reviewing drawings and doing this kind of collaboration. And so I think from our perspective, we continue to look forward. Toa further progress on that. There's a lot of capability in the cloud that I think they're just kind of scratching the surface on you, >>right? I would. I mean, you're you're asking to knit. Pick. I would say one of the things that I would like to see is is faster regeneration speed. There are a few times with convicts, necessities that regenerating the document takes a little longer than I would like. It's not a serious issue, but anyway, I I'm being spoiled, >>you know? That's good. I've been doing this a long time, and I like toe ask that question of practitioners and to me, it It's a signal like when you're nit picking and that's what you're struggling to knit. Pick that to me is a sign of a successful product, and and I wonder, I don't know, uh, have the deep dive into the architecture. But are things like alternative processors. You're seeing them hit the market in a big way. Uh, you know, maybe helping address the challenge, But I'm gonna ask you the big, chewy question now. Then we maybe go to some audience questions when you think about the world's biggest problems. I mean, we're global pandemics, obviously top of mind. You think about nutrition, you know, feeding the global community. We've actually done a pretty good job of that. But it's not necessarily with the greatest nutrition, climate change, alternative energy, the economic divides. You've got geopolitical threats and social unrest. Health care is a continuing problem. What's your vision for changing the world and how product innovation for good and be applied to some of the the problems that that you all are passionate about? Big question. Who wants toe start? >>Not biased. But for years I've been saying that if you want to solve the economy, the environment, uh, global unrest, pandemics, education is the case. If you wanna. If you want to, um, make progress in those in those realms, I think funding funding education is probably gonna pay off pretty well. >>Absolutely. And I think Stam is key to that. I mean, all of the ah lot of the well being that we have today and then industrialized countries. Thanks to science and technology, right improvements in health care, improvements in communication, transportation, air conditioning. Um, every aspect of life is touched by science and technology. So I think having more kids studying and understanding that is absolutely key. Yeah, I agree, >>Philip, you got anything to add? >>I think there's some big technical problems in the world today, Raphael and ourselves there certainly working on a couple of them. Think they're also collaboration problems and getting everybody to be able to pull together instead of pulling separately and to be able to spur the ideas on words. So that's where I think the education side is really exciting. What Matt is doing and it just kind of collaboration in general when we could do provide tools to help people do good work. Uh, that is, I think, valuable. >>Yeah, I think that's a very good point. And along those lines, we have some projects that are about creating very low cost instruments for low research settings, places in Africa, Southeast Asia, South America, so that they can do, um, um, biomedical research that it's difficult to do in those place because they don't have the money to buy the fancy lab machines that cost $30,000 an hour. Um, so we're trying to sort of democratize some of those instruments. And I think thanks to tools like Kahn shape then is easier, for example, to have a conversation with somebody in Africa and show them the design that we have and discuss the details of it with them on. But it's amazing, right to have somebody, you know, 10 time zones away, Um, looking really life in real time with you about your design and discussing the details or teaching them how to build a machine, right? Because, um, you know, they have a three D printer. You can you can just give them the design and say like, you build it yourself, uh, even cheaper than and, you know, also billing and shipping it there. Um, so all that that that aspect of it is also super important. I think for any of these efforts to improve some of the hardest part was in the world for climate change. Do you say, as you say, poverty, nutrition issues? Um, you know, availability of water. You have that project at about finding water. Um, if we can also help deploy technologies that teach people remotely how to create their own technologies or how to build their own systems that will help them solve those forms locally. I think that's very powerful. >>Yeah, the point about education is right on. I think some people in the audience may be familiar with the work of Erik Brynjolfsson and Andrew McAfee, the second machine age where they sort of put forth the premise that, uh, is it laid it out. Look, for the first time in history, machines air replacing humans from a cognitive perspective. Machines have always replaced humans, but that's gonna have an impact on jobs. But the answer is not toe protect the past from the future. The answer is education and public policy that really supports that. So I couldn't agree more. I think it's a really great point. Um, we have We do have some questions from the audience. If if we could If I can ask you guys, um, you know, this one kind of stands out. How do you see artificial intelligence? I was just talking about machine intelligence. Um, how do you see that? Impacting the design space guys trying to infuse a I into your product development. Can you tell me? >>Um, absolutely, like, we're using AI for some things, including some of these very low cost instruments that will hopefully help us diagnose certain diseases, especially this is that are very prevalent in the Third World. Um, and some of those diagnostics are these days done by thes armies of technicians that are trained to look under the microscope. But, um, that's a very slow process. Is very error prone and having machine learning systems that can to the same diagnosis faster, cheaper and also little machines that can be taken to very remote places to these villages that have no access to a fancy microscope. To look at a sample from a patient that's very powerful. And I we don't do this, but I have read quite a bit about how certain places air using a Tribune attorneys to actually help them optimize designs for parts. So you get these very interesting looking parts that you would have never thought off a person would have never thought off, but that are incredibly light ink. Earlier, strong and I have all sort of properties that are interesting thanks to artificial intelligence machine learning in particular >>yet another. The advantage you get when when your work is in the cloud I've seen. I mean, there's just so many applications that so if the radiology scan is in the cloud and the radiologist is goes to bed at night, Radiologist could come in in the morning and and say, Oh, the machine while you were sleeping was using artificial intelligence to scan these 40,000 images. And here's the five that we picked out that we think you should take a closer look at. Or like Raphael said, I can design my part. My, my, my, my, my you know, mount or bracket or whatever and go to sleep. And then I wake up in the morning. The machine has improved. It for me has made it strider strider stronger and lighter. Um And so just when your when your work is in the cloud, that's just that's a really cool advantage that you get that you can have machines doing some of your design work for you. >>Yeah, we've been watching, uh, you know, this week is this month, I guess is AWS re invent and it's just amazing to see how much effort is coming around machine learning machine intelligence. You know Amazon has sage maker Google's got, you know, embedded you no ML and big query. Uh, certainly Microsoft with Azure is doing tons of stuff and machine learning. I think the point there is that that these things will be infused in tow R and D and in tow software product by the vendor community. And you all will apply that to your business and and build value through the unique data that your collecting, you know, in your ecosystems. And and that's how you add value. You don't have to be necessarily, you know, developers of artificial intelligence, but you have to be practitioners to apply that. Does that make sense to you, Philip? >>Yeah, absolutely. And I think your point about value is really well chosen. We see AI involved from the physics simulations all the way up to interpreting radiation data, and that's where the value question, I think, is really important because it's is the output of the AI giving helpful information that the people that need to be looking at it. So if it's curating a serious of radiation alert, saying, Hey, like these air the anomalies. You need to look at eyes it, doing that in a way that's going to help a good response on. In some cases, the II is only as good as the people. That sort of gave it a direction and turn it loose. And you want to make sure that you don't have biases or things like that underlying your AI that they're going to result in less than helpful outcomes coming from it. So we spend quite a lot of time thinking about how do we provide the right outcomes to people who are who are relying on our systems? >>That's a great point, right? Humans air biased and humans build models, so models are inherently biased. But then the software is hitting the market. That's gonna help us identify those biases and help us, you know? Of course. Correct. So we're entering Cem some very exciting times, guys. Great conversation. I can't thank you enough for spending the time with us and sharing with our audience the innovations that you're bringing to help the world. So thanks again. >>Thank you so much. >>Thank you. >>Okay. Welcome. Okay. When we come back, John McElheny is gonna join me. He's on shape. Co founder. And he's currently the VP of strategy at PTC. He's gonna join the program. We're gonna take a look at what's next and product innovation. I'm Dave Volonte and you're watching innovation for good on the Cube, the global leader. Digital technology event coverage. We'll be right back. >>Okay? Okay. Yeah. Okay. >>From around >>the globe, it's the Cube. Presenting innovation for good. Brought to you by on shape. >>Okay, welcome back to innovation. For good. With me is John McElheny, who is one of the co founders of On Shape and is now the VP of strategy at PTC. John, it's good to see you. Thanks for making the time to come on the program. Thanks, Dave. So we heard earlier some of the accomplishments that you've made since the acquisition. How has the acquisition affected your strategy? Maybe you could talk about what resource is PTC brought to the table that allowed you toe sort of rethink or evolve your strategy? What can you share with us? >>Sure. You know, a year ago, when when John and myself met with Jim Pepperman early on is we're we're pondering. Started joining PTC one of things became very clear is that we had a very clear shared vision about how we could take the on shape platform and really extended for, for all of the PTC products, particular sort of their augmented reality as well as their their thing works or the i o. T business and their product. And so from the very beginning there was a clear strategy about taking on shape, extending the platform and really investing, um, pretty significantly in the product development as well as go to market side of things, uh, toe to bring on shape out to not only the PTC based but sort of the broader community at large. So So So PTC has been a terrific, terrific, um, sort of partner as we've we've gonna go on after this market together. Eso We've added a lot of resource and product development side of things. Ah, lot of resource and they go to market and customer success and support. So, really, on many fronts, that's been both. Resource is as well a sort of support at the corporate level from from a strategic standpoint and then in the field, we've had wonderful interactions with many large enterprise customers as well as the PTC channels. So it's been really a great a great year. >>Well, and you think about the challenges of in your business going to SAS, which you guys, you know, took on that journey. You know, 78 years ago. Uh, it's not trivial for a lot of companies to make that transition, especially a company that's been around as long as PTC. So So I'm wondering how much you know, I was just asking you How about what PCP TC brought to the table? E gotta believe you're bringing a lot to the table to in terms of the mindset, uh, even things is, is mundane is not the right word, but things like how you compensate salespeople, how you interact with customers, the notion of a service versus a product. I wonder if you could address >>that. Yeah, it's a it's a really great point. In fact, after we had met Jim last year, John and I one of the things we walked out in the seaport area in Boston, one of things we sort of said is, you know, Jim really gets what we're trying to do here and and part of let me bring you into the thinking early on. Part of what Jim talked about is there's lots of, you know, installed base sort of software that's inside of PTC base. That's helped literally thousands of customers around the world. But the idea of moving to sass and all that it entails both from a technology standpoint but also a cultural standpoint. Like How do you not not just compensate the sales people as an example? But how do you think about customer success? In the past, it might have been that you had professional services that you bring out to a customer, help them deploy your solutions. Well, when you're thinking about a SAS based offering, it's really critical that you get customers successful with it. Otherwise, you may have turned, and you know it will be very expensive in terms of your business long term. So you've got to get customers success with software in the very beginning. So you know, Jim really looked at on shape and he said that John and I, from a cultural standpoint, you know, a lot of times companies get acquired and they've acquired technology in the past that they integrate directly into into PTC and then sort of roll it out through their products, are there just reached channel, he said. In some respects, John John, think about it as we're gonna take PTC and we want to integrate it into on shape because we want you to share with us both on the sales side and customer success on marketing on operations. You know all the things because long term, we believe the world is a SAS world, that the whole industry is gonna move too. So really, it was sort of an inverse in terms of the thought process related to normal transactions >>on That makes a lot of sense to me. You mentioned Sharon turns the silent killer of a SAS company, and you know, there's a lot of discussion, you know, in the entrepreneurial community because you live this, you know what's the best path? I mean today, You see, you know, if you watch Silicon Valley double, double, triple triple, but but there's a lot of people who believe, and I wonder, if you come in there is the best path to, you know, in the X Y axis. If if it's if it's uh, growth on one and retention on the other axis. What's the best way to get to the upper right on? Really? The the best path is probably make sure you've nailed obviously the product market fit, But make sure that you can retain customers and then throw gas on the fire. You see a lot of companies they burn out trying to grow too fast, but they haven't figured out, you know that. But there's too much churn. They haven't figured out those metrics. I mean, obviously on shape. You know, you were sort of a pioneer in here. I gotta believe you've figured out that customer retention before you really, You know, put the pedal to the >>metal. Yeah, and you know, growth growth can mask a lot of things, but getting getting customers, especially the engineering space. Nobody goes and sits there and says, Tomorrow we're gonna go and and, you know, put 100 users on this and and immediately swap out all of our existing tools. These tools are very rich and deep in terms of capability, and they become part of the operational process of how a company designs and builds products. So any time anybody is actually going through the purchasing process. Typically, they will run a try along or they'll run a project where they look at. Kind of What? What is this new solution gonna help them dio. How are we gonna orient ourselves for success? Longer term. So for us, you know, getting new customers and customer acquisition is really critical. But getting those customers to actually deploy the solution to be successful with it. You know, we like to sort of, say, the marketing or the lead generation and even some of the initial sales. That's sort of like the Kindle ing. But the fire really starts when customers deploy it and get successful. The solution because they bring other customers into the fold. And then, of course, if they're successful with it, you know, then in fact, you have negative turn which, ironically, means growth in terms of your inside of your install. Bates. >>Right? And you've seen that with some of the emerging, you know, SAS companies, where you're you're actually you know, when you calculate whatever its net retention or renew ALS, it's actually from a dollar standpoint. It's up in the high nineties or even over 100%. >>So >>and that's a trend we're gonna continue. See, I >>wonder >>if we could sort of go back. Uh, and when you guys were starting on shape, some of the things that you saw that you were trying to strategically leverage and what's changed, you know, today we were talking. I was talking to John earlier about in a way, you kinda you kinda got a blank slate is like doing another startup. >>You're >>not. Obviously you've got installed base and customers to service, but But it's a new beginning for you guys. So one of the things that you saw then you know, cloud and and sas and okay, but that's we've been there, done that. What are you seeing? You know today? >>Well, you know, So So this is a journey, of course, that that on shape on its own has gone through it had I'll sort of say, you know, several iterations, both in terms of of of, you know, how do you How do you get customers? How do you How do you get them successful? How do you grow those customers? And now that we've been part of PTC, the question becomes okay. One, There is certainly a higher level of credibility that helps us in terms of our our megaphone is much bigger than it was when we're standalone company. But on top of that now, figuring out how to work with their channel with their direct sales force, you know, they have, um, for example, you know, very large enterprises. Well, many of those customers are not gonna go in forklift out their existing solution to replace it with with on shape. However, many of them do have challenges in their supply chain and communications with contractors and vendors across the globe. And so, you know, finding our fit inside of those large enterprises as they extend out with their their customers is a very interesting area that we've really been sort of incremental to to PTC. And then, you know, they they have access to lots of other technology, like the i o. T business. And now, of course, the augmented reality business that that we can bring things to bear. For example, in the augmented reality world, they've they've got something called expert capture. And this is essentially imagine, you know, in a are ah, headset that allows you to be ableto to speak to it, but also capture images still images in video. And you could take somebody who's doing their task and capture literally the steps that they're taking its geo location and from their builds steps for new employees to be, we'll learn and understand how todo use that technology to help them do their job better. Well, when they do that, if there is replacement products or variation of of some of the tools that that they built the original design instruction set for they now have another version. Well, they have to manage multiple versions. Well, that's what on shape is really great at doing and so taking our technology and helping their solutions as well. So it's not only expanding our customer footprint, it's expanding the application footprint in terms of how we can help them and help customers. >>So that leads me to the tam discussion and again, as part of your strategist role. How do you think about that? Was just talking to some of your customers earlier about the democratization of cat and engineering? You know, I kind of joked, sort of like citizen engineering, but but so that you know, the demographics are changing the number of users potentially that can access the products because the it's so much more of a facile experience. How are you thinking about the total available market? >>It really is a great question, You know, it used to be when you when you sold boxes of software, it was how many engineers were out there. And that's the size of the market. The fact that matter is now when, When you think about access to that information, that data is simply a pane of glass. Whether it's a computer, whether it's a laptop, UH, a a cell phone or whether it's a tablet, the ability to to use different vehicles, access information and data expands the capabilities and power of a system to allow feedback and iteration. I mean, one of the one of the very interesting things is in technology is when you can take something and really unleash it to a larger audience and builds, you know, purpose built applications. You can start to iterate, get better feedback. You know there's a classic case in the clothing industry where Zara, you know, is a fast sort of turnaround. Agile manufacturer. And there was a great New York Times article written a couple years ago. My wife's a fan of Zara, and I think she justifies any purchases by saying, You know, Zara, you gotta purchase it now. Otherwise it may not be there the next time. Yet you go back to the store. They had some people in a store in New York that had this woman's throw kind of covering Shaw. And they said, Well, it would be great if we could have this little clip here so we can hook it through or something. And they sent a note back toe to the factory in Spain, and literally two weeks later they had, you know, 4000 of these things in store, and they sold out because they had a closed loop and iterative process. And so if we could take information and allow people access in multiple ways through different devices and different screens, that could be very specific information that, you know, we remove a lot of the engineering data book, bring the end user products conceptually to somebody that would have had to wait months to get the actual physical prototype, and we could get feedback well, Weaken have a better chance of making sure whatever product we're building is the right product when it ultimately gets delivered to a customer. So it's really it's a much larger market that has to be thought of rather than just the kind of selling A boxes software to an engineer. >>That's a great story. And again, it's gonna be exciting for you guys to see that with. The added resource is that you have a PTC, Um, so let's talk. I promise people we wanna talk about Atlas. Let's talk about the platform. A little bit of Atlas was announced last year. Atlas. For those who don't know it's a SAS space platform, it purports to go beyond product lifecycle management and you You're talking cloud like agility and scale to CAD and product design. But John, you could do a better job than I. What do >>we need to know about Atlas? Well, I think Atlas is a great description because it really is metaphorically sort of holding up all of the PTC applications themselves. But from the very beginning, when John and I met with Jim, part of what we were intrigued about was that he shared a vision that on shape was more than just going to be a cad authoring tool that, in fact, you know, in the past these engineering tools were very powerful, but they were very narrow in their purpose and focus. And we had specialty applications to manage the versions, etcetera. What we did in on shape is we kind of inverted that thinking. We built this collaboration and sharing engine at the core and then kind of wrap the CAD system around it. But that collaboration sharing and version ING engine is really powerful. And it was that vision that Jim had that he shared that we had from the beginning, which was, how do we take this thing to make a platform that could be used for many other applications inside of inside of any company? And so not only do we have a partner application area that is is much like the APP store or Google play store. Uh, that was sort of our first Stan Shih ation of this. This this platform. But now we're extending out to broader applications and much meatier applications. And internally, that's the thing works in the in the augmented reality. But there'll be other applications that ultimately find its way on top of this platform. And so they'll get all the benefits of of the collaboration, sharing the version ing the multi platform, multi device. And that's an extremely extremely, um, strategic leverage point for the company. >>You know, it's interesting, John, you mentioned the seaport before. So PTC, for those who don't know, built a beautiful facility down at the Seaport in Boston. And, of course, when PTC started, you know, back in the mid 19 eighties, there was nothing at the seaport s. >>So it's >>kind of kind of ironic, you know, we were way seeing the transformation of the seaport. We're seeing the transformation of industry and of course, PTC. And I'm sure someday you'll get back into that beautiful office, you know? Wait. Yeah, I'll bet. And, uh and but I wanna bring this up because I want I want you to talk about the future. How you how you see that our industry and you've observed this has moved from very product centric, uh, plat platform centric with sass and cloud. And now we're seeing ecosystems form around those products and platforms and data flowing through the ecosystem powering, you know, new innovation. I wonder if you could paint a picture for us of what the future looks like to you from your vantage point. >>Yeah, I think one of the key words you said there is data because up until now, data for companies really was sort of trapped in different applications. And it wasn't because people were nefarious and they want to keep it limited. It was just the way in which things were built. And, you know, when people use an application like on shape, what ends up happening is there their day to day interaction and everything that they do is actually captured by the platform. And, you know, we don't have access to that data. Of course it's it's the customer's data. But as as an artifact of them using the system than doing their day to day job, what's happening is they're creating huge amounts of information that can then be accessed and analyzed to help them both improve their design process, improve their efficiencies, improve their actual schedules in terms of making sure they can hit delivery times and be able to understand where there might be roadblocks in the future. So the way I see it is companies now are deploying SAS based tools like on shape and an artifact of them. Using that platform is that they have now analytics and tools to better understand and an instrument and manage their business. And then from there, I think you're going to see, because these systems are all you know extremely well. Architected allow through, you know, very structured AP. I calls to connect other SAS based applications. You're gonna start seeing closed loop sort of system. So, for example, people design using on shape, they end up going and deploying their system or installing it, or people use the end using products. People then may call back into the customers support line and report issues, problems, challenges. They'll be able to do traceability back to the underlying design. They'll be able to do trend analysis and defect analysis from the support lines and tie it back and closed loop the product design, manufacture, deployment in the field sort of cycles. In addition, you can imagine there's many things that air sort of as designed. But then when people go on site and they have to install it. There's some alterations modifications. Think about think about like a large air conditioning units for buildings. You go and you go to train and you get a large air conditioning unit that put up on top of building with a crane. They have to build all kinds of adaptors to make sure that that will fit inside of the particulars of that building. You know, with on shape and tools like this, you'll be able to not only take the design of what the air conditioning system might be, but also the all the adapter plates, but also how they installed it. So it sort of as designed as manufactured as stalled. And all these things can be traced, just like if you think about the transformation of customer service or customer contacts. In the early days, you used to have tools that were PC based tools called contact management solution, you know, kind of act or gold mine. And these were basically glorified Elektronik role in Texas. It had a customer names and they had phone numbers and whatever else. And Salesforce and Siebel, you know, these types of systems really broadened out the perspective of what a customer relationship? Waas. So it wasn't just the contact information it was, you know, How did they come to find out about you as a company? So all of the pre sort of marketing and then kind of what happens after they become a customer and it really was a 3 60 view. I think that 3 60 view gets extended to not just to the customers, but also tools and the products they use. And then, of course, the performance information that could come back to the manufacturer. So, you know, as an engineer, one of the things you learn about with systems is the following. And if you remember, when the CD first came out CDs that used to talk about four times over sampling or eight times over sampling and it was really kind of, you know, the fidelity the system. And we know from systems theory that the best way to improve the performance of a system is to actually have more feedback. The more feedback you have, the better system could be. And so that's why you get 16 60 for example, etcetera. Same thing here. The more feedback we have of different parts of a company that a better performance, The company will be better customer relationships. Better, uh, overall financial performance as well. So that's that's the view I have of how these systems all tied together. >>It's a great vision in your point about the data is I think right on. It used to be so fragmented in silos, and in order to take a system view, you've gotta have a system view of the data. Now, for years, we've optimized maybe on one little component of the system and that sometimes we lose sight of the overall outcome. And so what you just described, I think is, I think sets up. You know very well as we exit. Hopefully soon we exit this this covert era on John. I hope that you and I can sit down face to face at a PTC on shape event in the near term >>in the seaport in the >>seaport would tell you that great facility toe have have an event for sure. It >>z wonderful >>there. So So John McElhinney. Thanks so much for for participating in the program. It was really great to have you on, >>right? Thanks, Dave. >>Okay. And I want to thank everyone for participating. Today we have some great guest speakers. And remember, this is a live program. So give us a little bit of time. We're gonna flip this site over toe on demand mode so you can share it with your colleagues and you, or you can come back and and watch the sessions that you heard today. Uh, this is Dave Volonte for the Cube and on shape PTC. Thank you so much for watching innovation for good. Be well, Have a great holiday. And we'll see you next time. Yeah.