>>From around the globe. If the cube with digital coverage of AWS reinvent 20, 20 special coverage sponsored by AWS worldwide public sector. >>Okay. Welcome back everyone. To the cubes, virtual coverage of AWS reinvent 2020, this is the cube virtual. I'm your host John farrier with the cube. The cube normally is there in person this year. It's all virtual. This is the cube virtual. We're doing the remote interviews and we're bringing in commentary and discussion around the themes of re-invent. And this today is public sector, worldwide public sector day. And the theme from Teresa Carlson, who heads up the entire team is to think big and look at the data. And I wanted to bring in a special cube alumni and special guests. Alan Cohen. Who's a partner at data collective venture capital or DCVC, um, which we've known for many, many years, founders, Matt OCO and Zachary Bogue, who started the firm, um, to over at about 10 years ago. We're on the really the big data wave and have grown into a really big firm thought big data, data, collective big ideas. That's the whole purpose of your firm. Alan. You're now a partner retired, retired, I mean a venture capitalist over at being a collective. Great to see you. Thanks for coming on. >>Great to see you as well. John, thanks for being so honest this morning. >>I love to joke about being retired because the VC game, it's not, um, a retirement for you. You guys made, you made some investments. Data collective has a unique, um, philosophy because you guys invest in essentially moonshots or big ideas, hard problems. And if I look at what's going on with Amazon, specifically in the public sector, genome sequencing now available in what they call the open data registry. You've got healthcare expanding, huge, you got huge demand and education, real societal benefits, uh, cybersecurity contested in space, more contention and congestion and space. Um, there's a lot of really hard science problems that are going on at the cloud. And AI are enabling, you're investing in entrepreneurs that are trying to solve these problems. What's your view of the big ideas? What are people missing? >>Well, I don't know if they're missing, but I think what I'd say, John, is that we're starting to see a shift. So if you look at the last, I don't know, forever 40, 50 years in the it and the tech industry, we took a lot of atoms. We built networks and data warehouses and server farms, and we, we kind of created software with it. So we took Adam's and we turned them into bets. Now we're seeing things move in the other direction where we're targeting bits, software, artificial intelligence, massive amount of compute power, which you can get from companies like, like AWS. And now we're creating better atoms. That means better met medicines and vaccines we're investor, um, and a company called abs Celera, which is the therapeutic treatment that J and J has, um, taken to market. Uh, people are actually spaces, a commercial business. >>If it's not a science fiction, novel we're investors in planet labs and rocket labs and compel a space so people can see right out. So you're sitting on your terrorists of your backyard from a satellite that was launched by a private company without any government money. Um, you talked about gene sequencing, uh, folding of proteins. Um, so I think the big ideas are we can look at some of the world's most intractable issues and problems, and we can go after them and turn them into commercial opportunities. Uh, and we would have been able to do that before, without the advent of big data and obviously the processing capabilities and on now artificial intelligence that are available from things like AWS. So, um, it's kind of, it's kind of payback from the physical world to the physical world, from the virtual world. Okay. >>Pella space was featured in the keynote by Teresa Carlson. Um, great to tie that in great tie in there, but this is the kind of hard problems. And I want to get your take because entrepreneurs, you know, it reminds me of the old days where, you know, when you didn't go back to the.com, when that bubble was going on, and then you got the different cycles and the different waves, um, the consumer always got the best kind of valuations and got the most attention. And now B to B's hot, you got the enterprise is super hot, mainly because of Amazon >>Sure. Into the Jordash IPO. Obviously this morning, >>Jordache IPO, I didn't get a phone call for friends and family and one of their top customers. They started in Palo Alto. We know them since the carton Jordache, these are companies that are getting massive, uh, zoom. Um, the post pandemic is coming. It's going to be a hybrid world. I think there's clear recognition that this some economic values are digital being digitally enabled and using cloud and AI for efficiencies and philosophy of new things. But it's going to get back to the real world. What's your, it's still hard problems out there. I mean, all the valuations, >>Well, there's always hard problems, but what's different now. And from a perspective of venture and, and investors is that you can go after really hard problems with venture scale level of investments. Uh, traditionally you think about these things as like a division of a company like J and J or general electric or some very massive global corporation, and because of the capabilities that are available, um, in the computing world, um, as well as kind of great scientific research and we fund more PhDs probably than any other, uh, any other type of background, uh, for, for founders, they can go after these things, they can create. Uh, we, uh, we have a company called pivot bio, uh, and I think I've spoken to you about them in the past, Sean, they have created a series of microbes that actually do a process called nitrogen fixation. Um, so it attaches the nitrogen to the roots of corn, sorghum and wheat. >>So you don't have to use chemical fertilizer. Well, those microbes were all created through an enormous amount of machine learning. And where did that machine learning come from? So what does that mean? That means climate change. That means more profitable farmers. Uh, that means water and air management, all major issues in our society where if we didn't have the computing capabilities we have today, we wouldn't have been able to do that. We clearly would have not been able to do that, um, as a venture level of investments to get it started. So I think what's missing for a lot of people is a paucity of imagination. And you have to actually, you know, you actually have to take these intractable problems and say, how can I solve them and then tear it apart to its actual molecules, just the little inside joke, right? And, and then move that through. >>And, you know, this means that you have to be able to invest in work on things. You know, these companies don't happen in two or three years or five years. They take sometimes seven, 10, 15 years. So it's life work for people. Um, but though, but we're seeing that, uh, you know, that everywhere, I mean, rocket lab, a company of ours out of New Zealand and now out of DC, which we actually launched the last couple of space, um, satellites, they print their rocket engines with a 3d printer, a metal printer. So think about that. How did all that, that come to bear? Um, and it started as a dangerous scale style of investments. So, you know, Peter Beck, the founder of that company had a dream to basically launch a rocket, you know, once a year, once a month, once a week, and eventually to once a day. So he's effectively creating a huge, um, huge upswing in the ability of people to commercialize space. And then what does space do? It gives you better observability on the planet from a, not just from a security point of view, but from a weather and a commerce point of view. So all kinds of other things that looked like they were very difficult to go after it now starts to become enabled. Yeah. >>I love the, uh, your investment in Capella space because I think that speaks volumes. And one of the things that the founder was talking about was getting the data down is the hard part. He he's up, he's up there now. He can see everything, but now I've got to get the data down because say, say the wildfires in California, or whether, um, things happening around the globe now that you have the, uh, the observation space, you got to get the data down there. This is the huge scale challenge. >>Well, let me, let me, let me give you something. That's also, so w you know, we are in a fairly difficult time in this country, right? Because of the covert virus, uh, we are going to maybe as quickly as next week, start to deliver, even though not as many as we'd like vaccines and therapeutics into this virus situation, literally in a year, how did all these things, I mean, obviously one of the worst public health crisis of our lifetimes, and maybe, you know, uh, of the past century, uh, how did that happen? How did it all day? Well, you know, some, I mean, the ability to use, um, computing power in, in assistance, in laboratory, in, in, uh, in, um, development of, of pharmaceutical and therapeutics is a huge change. So something that is an intractable problem, because the traditional methods of creating vaccines that take anywhere from three to seven years, we would have a much worse public health crisis. I'm not saying that this one is over, right. We're in a really difficult situation, but our ability to start to address it, the worst public health crisis in our lifetime is being addressed because of the ability of people to apply technology and to accelerate the ability to create vaccines. So great points, absolutely amazing. >>Let's just, let's just pause that let's double down on that and just unpack that, think about that for a second. If you didn't, and then the Amazon highlight is on Andy Jesse's keynote carrier, which makes air conditioning. They also do refrigeration and transport. So one IOT application leveraging their cloud is they may call it cold chain managing the value chain of the transport, making sure food. And in this case vaccine, they saw huge value to reduce carbon emissions because of it does the waste involved in food alone was a problem, but the vaccine, they had the cold, the cold, cold, cold chain. Can you hear me? >>Maybe this year, the cold chain is more valuable than the blockchain. Yeah. >>Cold don't think he was cold chain. Sounds like a band called play. Um, um, I had to get that in and Linda loves Coldplay. Um, but if you think about like where we are to your point, imagine if this hit 15 years ago or 20 years ago, um, you know, YouTube was just hitting the scene 20 years ago, 15 years ago, you know, so, you know, that kind of culture, we didn't have zoom education would be where we would be Skyping. Um, there's no bandwidth. So, I mean, you, you know, the, the bandwidth Wars you would live through those and your career, you had no bandwidth. You had no video conferencing, no real IOT, no real supply chain management and therapeutics would have taken what years. What's your reaction to, to that and compare and contrast that to what's on full display in the real world stage right now on digital enablement, digital transformation. >>Well, look, I mean, ultimately I'm an optimist because of what this technology allows you to do. I'm a realist that, you know, you know, we're gonna lose a lot of people because of this virus, but we're also going to be able to reduce a lot of, um, uh, pain for people and potentially death because of the ability to accelerate, um, these abilities to react. I think the biggest and the, the thing that I look for and I hope for, so when Theresa says, how do you think big, the biggest lesson I think we're going to we've learned in the last year is how to build resilience. So all kinds of parts of our economy, our healthcare systems, our personal lives, our education, our children, even our leisure time have been tested from a resilience point of view and the ability of technology to step in and become an enabler for that of resilience. >>Like there isn't like people don't love zoom school, but without zoom school, what we're going to do, there is no school, right? So, which is why zoom has become an indispensable utility of our lives, whether you're on a too much, or you've got zoom fatigue, does it really matter the concept? What we're going to do, call into a conference call and listen to your teacher, um, right in, you know, so how are you going to, you're going to do that, the ability to repurpose, um, our supply chain and, you know, uh, we, we, we see this, we're going to see a lot of change in the, in the global supply chain. You're going to see, uh, whether it's re domestication of manufacturing or tightening of that up, uh, because we're never going to go without PPE again, and other vital elements. We've seen entire industries repurposed from B2B to B to C and their ability to package, deliver and service customers. That is, those are forms of resilience. >>And, and, and, and taking that to the next level. If you think about what's actually happening on full display, and again, on my one-on-one with Andy Jassy prior to the event, and he laid this out on stage, he kind of talks about this, every vertical being disrupted, and then Dr. Matt wood, who's the machine learning lead there in Swami says, Hey, you know, cloud compute with chips now, and with AI and machine learning, every industry, vertical global industry is going to be disrupted. And so, you know, I get that. We've been saying that in the queue for a long time, that that's just going to happen. So we've been kind of on this wave of horizontal, scalability and vertical specialization with data and modern applications with machine learning, making customization really high-fidelity decisions. Or as you say, down to the molecule level or atomic level, but this is clear what, what I found interesting. And I want to get your thoughts because you have one been there, done that through many ways of innovation and now investor leading investor >>Investor, and you made up a word. I like it. Okay. >>Jesse talks about leadership to invent and reinvent. Can't fight gravity. You've got to get talent hungry for invention, solve real-world problems. Speed. Don't complexify. That's his message. I said to him, in my interview, you need a wartime conciliary cause he's a big movie buff. I quote the godfather. Yeah. Don't you don't want to be the Tom Hagen. You don't want to be that guy, right? You're not a wartime. Conciliary this is a time there's times in companies' histories where there's peace and there's wartime, wartime being the startup, trying to find its way. And then they get product market fit and you're growing and scaling. You're operating, you're hiring people to operate. Then you get into a pivot or a competitive situation. And then you got to get out there and, and, and get dirty and reinvent or re-imagine. And then you're back to peace. Having the right personnel is critical. So one of the themes this year is if you're in the way, get out of the way, you know, and some people don't want to hold on to hold onto the past. That's the way we did it before I built this system. Therefore it has to work this way. Otherwise the new ways, terrible, the mainframe, we've got to keep the mainframe. So you have a kind of a, um, an accelerated leadership, uh, thin man mantra happening. What is your take on this? Because, >>Sorry. So if you're going to have your F R R, if you're going to, if you are going to use, um, mob related better for is I'll share one with you from the final season of the Soprano's, where Tony's Prado is being hit over the head with a bunch of nostalgia from one of his associates. And he goes, remember, when is the lowest form of conversation and which is iconic. I think what you're talking about and what Andy is talking about is that the thing that makes great leadership, and what I look for is that when you invest in somebody or you put somebody in a leadership position to build something, 50% of their experience is really important. And 50% of it is not applicable in the new situation. And the hard leadership initiative has to understand which 50 matters in which 50 doesn't matter. >>So I think the issue is that, yeah, I think it is, you know, lead follow or get out of the way, but it's also, what am I doing? Am I following a pattern for a, for a, for an, a, for a technology, a market, a customer base, or a set of people are managing that doesn't really exist anymore, that the world has moved on. And I think that we're going to be kind of permanent war time on some level we're going to, we're going to be co we're because I think the economy is going to shift. We're going to have other shocks to the economy and we don't get back to a traditional normal any time soon. Yep. So I, I think that is the part that leadership in, in technology really has to, would adopt. And it's like, I mean, uh, you know, the first great CEO of Intel reminded us, right. Then only the paranoid survive. Right. Is that it's you, some things work and some things don't work and that's, that's the hard part on how you parse it. So I always like to say that you always have to have a crisis, and if there is no crisis, you create the crisis. Yeah. And, you know, >>Sam said, don't let a good crisis go to waste. You know? Um, as a manager, you take advantage of the crisis. >>Yeah. I mean, look, it wouldn't have been bad to be in the Peloton business this year. Right, too. Right. Which is like, when people stayed home and like that, you know, you know, th that will fade. People will get back on their bikes and go outside. I'm a cyclist, but you know, a lot more people are going to look at that as an alternative way to exercise or exercising, then when it's dark or when the weather is inclement. So what I think is that you see these things, they go in waves, they crest, they come back, but they never come back all the way to where they were. And as a manager, and then as a builder in the technology industry, you may not get like, like, like, okay, maybe we will not spend as much time on zoom, um, in a year from now, but we're going to still spend a lot of time on zoom and it's going to still be very important. >>Um, what I, what I would say, for example, and I, and looking at the COVID crisis and from my own personal investments, when I look at one thing is clear, we're going to get our arms around this virus. But if you look at the history of airborne illnesses, they are accelerating and they're coming every couple of years. So being able to be in that position to, to more react, more rapidly, create vaccines, the ability to foster trials more quickly to be able to use that information, to make decisions. And so the duration when people are not covered by therapeutics or vaccines, um, short, and this, that is going to be really important. So that form of resilience and that kind of speed is going to happen again and again, in healthcare, right. There's going to be in, you know, in increasing pressure across that in part of the segment food supply, right. I mean, the biggest problem in our food supply today is actually the lack of labor. Um, and so you have far, I mean, you know, farmers have had a repurpose, they don't sell to their traditional, like, so you're going to see increased amount of optimization automation and mechanization. >>Lauren was on the, um, keynote today talking about how their marketplaces collected as a collective, you know, um, people were working together, um, given that, given the big ideas. Well, let's, let's just, as we end the segment here, let's connect big ideas. And the democratization of, I mean, you know, the old expression Silicon Valley go big or go home. Well, I think now we're at a time where you can actually go big and stay and, and, and be big and get to be big at your own pace because the, the mantra has been thinking big in years, execute plan in months and execute weekly and month daily, you know, you can plan around, there's a management technique potentially to leverage cloud and AI to really think about bit the big idea. Uh, if I'm a manager, whether I'm in public sector or commercial or any vertical industry, I can still have that big idea that North star and then work backwards and figure that out. >>That sounds to the Amazon way. What's your take on how people should be. What's the right way to think about executing down that path so that someone who's say trying to re-imagine education. And I know a, some people that I've talked to here in California are looking at it and saying, Hey, I don't need to have silos students, faculty, alumni, and community. I can unify them together. That's an idea. I mean, execution of that is, you know, move all these events. So they've been supplying siloed systems to them. Um, I mean, cause people want to interact online. The Peloton is a great example of health and fitness. So there's, there's everyone is out there waiting for this playbook. >>Yeah. Unfortunately I, I had the playbook. I'd mail it to you. Uh, but you know, I think there's a couple of things that are really important to do. Maybe good to help the bed is one where is there structural change in an industry or a segment or something like that. And sorry to just people I'm home today, right? It's, everybody's running out of the door. Um, and you know, so I talked about this structural change and you, we talked about the structural change in healthcare. We talked about kind of maybe some of the structural change that's coming to agriculture. There's a change in people's expectations and how they're willing to work and what they're willing to do. Um, you, as you pointed out the traditional silos, right, since we have so much information at our fingertips, um, you know, people's responsibility as opposed to having products and services to deliver them, what they're willing to do on their own is really changed. >>Um, I think the other thing is that, uh, leadership is ultimately the most important aspect. And we have built a lot of companies in the industry based on forms of structural relations industry, um, background, I'm a product manager, I'm a sales person, I'm a CEO, I'm a finance person. And what we're starting to see is more whole thinking. Um, uh, particularly in early stage investors where they think less functionally about what people's jobs are and more about what the company is trying to get done, what the market is like. And it's infusing a lot more, how people do that. So ultimately most of this comes down to leadership. Um, uh, and, and that's what people have to do. They have to see themselves as a leader in their company, in their, in the business. They're trying to build, um, not just in their function, but in the market they're trying to win, which means you go out and you talk to a lot more people. >>You do a lot, you take a lot fewer things for granted. Um, you read less textbooks on how to build companies and you spend more time talking to your customers and your engineers, and you start to look at enabling. So the, we have made between machine learning, computer vision, and the amount of processing power that's available from things like AWS, including the services that you could just click box in places like the Amazon store. You actually have to be much more expansive in how you think about what you can get done without having to build a lot of things. Cause it's actually right there at your fingertips. Hopefully that kind of gets a little bit to what you were asking. >>Well, Alan, it's always great to have you on and great insight and, uh, always a pleasure to talk candidly. Um, normally we're a little bit more boisterous, but given how terrible the situation is with COVID while working at home, I'm usually in person, but you've been great. Take a minute to give a plug for the data collective venture capital firm. DCVC you guys have a really unique investment thesis you're in applied AI, computational biology, um, computational care, um, enterprise enablement. Geospatial is about space and Capella, which was featured carbon health, smart agriculture transportation. These are kind of like not on these are off the beaten path of like traditional herd mentality of venture capital. You guys are going after big problems. Give us an update on the firm. I know that firm has gotten bigger lately. You guys have >>No, I mean the further firm has gotten bigger, I guess since Matt, Zach started about a decade ago. So we have about $2.3 billion under management. We also have bio fund, uh, kind of a sister fund. That's part of that. I mean, obviously we are, uh, traditionally an early stage investor, but we have gone much longer now with these additional, um, um, investment funds and, and the confidence of our LPs. Uh, we are looking for bears. You said John, really large intractable, um, industry problems and transitions. Uh, we tend to back very technical founders and work with them very early in the creation of their business. Um, and we have a huge network of some of the leading people in our industry who work with us. Uh, we, uh, it's a little bit of our secret weapon. We call it our equity partner network. Many of them have been on the cube. >>Um, and these are people that work with us in the create, uh, you know, the creation of this. Uh, we've never been more excited because there's never been more opportunity. And you'll start to see, you know, you're starting to hear more and more about them, uh, will probably be a couple of years of report. We're a household name. Um, but you know, we've, we we're, we're washing deal flow. And the good news is I think more people want to invest in and build the things that we've. So we're less than itchy where people want to do what we're doing. And I think some of the large exits that starting to come our way or we'll attract more, more great entrepreneurs in that space. >>I really saw the data models, data, data trend early, you saw a Realty impacted, and I'll say that's front and center on Amazon web services reinvent this year. You guys were early super important firm. I'm really glad you guys exist. And you guys will be soon a household name if not already. Thanks for coming on. Right, >>Alan. Thanks. Thank you. Appreciate >>It. Take care. I'm John ferry with the cube. You're watching a reinvent coverage. This is the cube live portion of the coverage. Three weeks wall to wall. Check out the cube.net. Also go to the queue page on the Amazon event page, there's a little click through the bottom and the metadata is Mainstage tons of video on demand and live programming there too. Thanks for watching.

>> Announcer: Live from Las Vegas, it's The Cube, covering Oracle Modern Customer Experience 2017, brought to you by Oracle. (dynamic music) >> John: Hey, welcome back everyone, we're here live. Day two coverage of Oracle's Modern CX Modern Customer Experience #ModernCX. Also check out all the great coverage here on The Cube, but also on the web, a lot of great stories and one of the people behind all that is Des Cahill, who's joining Peter Burris and myself. Kicking off day two, Des, great to see you, Head of Customer Experience Evangelist, involved in a lot of the formation and really the simplification of the messaging across Cloud, so it's really one story. >> Yeah, absolutely, so John, Peter, great to be here. You know, I think the real story is about our customers and businesses that are going through transformation. So everything that we're doing at Oracle, in our CX organizations, helping these organizations make their digital business transformation and the reason they're going through this transformative process is to meet the demands of their customers. I'd say it's the era of the empowered customer. They're empowered by social, mobile, Cloud technologies and all of us in our daily lives can relate to the fact that over the last five, 10 years, the way that we buy, our journey as we buy products, as we do research, is completely different, than it used to be, right. >> Talk about the evolution, talk about the evolution of what's happening this week, because I think this is kind of a mark in time, at least from our observation, covering Oracle, this is our eighth year and certainly second year with the modern marketing experience now, >> Des: Yeah. >> the modern customer experience, where the feedback in the floor, and this is noteworthy, is that the quality is great, people at the booth are highly qualified, but it's simple. It's one fabric of messaging, one fabric of product. It feels like a platform, >> Yeah. >> and is that by design (laughs) or is that kind of the next step in the evolution of, >> Des: Yeah, John. >> Marketing Cloud meets Real Cloud and? >> Yeah, yeah, so absolutely John. I mean that, that is by design and again, to support our customers and their needs on this digital business transformation journey, it starts obviously with fantastic marketing, we've just got fantastic capabilities within our Marketing Cloud, but then that extends to Sales Cloud. If you generate leads in marketing and you're not handing them over to sales effectively or of a good sales automation engine and that goes on to commerce, CPQ, social, and service. And all of this, if we bring this back down to again, this notion of the empowered customer, if you're not providing those customers with connected experiences across marketing, sales, service, commerce, you're not... you're going to, you might lose those customers. I mean, we expect connected experiences across our whole journey. If I'm calling my cell phone provider, 'cause I got a problem, I don't, and I don't want to call one person, get transferred to another person and then go to the website to chat with someone, have a disconnected experience. I want them to, when I call, I want them to understand my history, my status as a customer, I'm spending 500 dollars a month on them, the problems I've had before. I want them to have context and to know me in that moment and as Mark Hertz says, it's like a moment of truth with my cell phone provider. Are they going to delight me and turn me into a customer advocate, or am I going to leave and go to another cell phone provider? >> Well let's talk just for a second, and I want to get your comments on this and how it relates specifically to what we're saying here. Digital has two enormous impacts. One, as you said, that a customer can take their research activities with them, on their cell phone. >> Yeah. They have learned, because of commerce and electronic commerce, they've learn to expect and demand a certain style of engagement >> Des: Right. >> and that's not going to change, so if you are not doing those things-- >> We like to say Amazon is the new benchmark, either B to C or B to B, it doesn't matter, right. >> It is a benchmark, at least on the commerce side, so it's, so that's one change, is that customers are empowered. The second big change though, is that increasingly, digital allows people to render products more as services and that's in many respects, what the Cloud's all about. >> Des: Right. >> How do you take an asset, that is a machine and render it as a service to someone? Well now we can actually use digital technologies to render things more as services. The combination of those two things are incredibly powerful, because customers, who now have the power to evaluate and change decisions all the time are now constantly making decisions, because it's a pay-as-you-go service world now. >> Des: Right. >> So how do those two things come together and inform the role, that marketing is going to play inside a business, 'cause increasingly, it seems to us that marketing is going to have to own that continuous, ongoing engagement and deliver that consistent value, so a customer does not leave, 'cause you have more opportunities to leave now. >> Well, I, so I think that's a good observation, Peter. I do think that marketers can play, and do play, a leading role in being the advocate for the customer within the brand, within the company and as a marketer myself, I think about not just the marketing function, but I think about, well, what is the experience, that that lead or that prospect going to have when I hand over to sales? And what is the experience that they are going to have, when I hand them over to service? And in my past roles as a CMO, the challenge I always faced was that I couldn't get information out of the sales automation system or out of the service automation system, so as a marketer, I couldn't optimize my marketing mix and I didn't have visibility on which opportunities I passed, which leads I passed over turned into the best opportunities, turned into the best deals, turned into the customers, that were most loyal, that got cross-sold and up-sold and were the happiest. So I think, going back to Oracle's strategy in all of this, it's about having a connected, end-to-end suite of Cloud applications, so that there's a consistent set of data, that is enabling these consistent, personalized, and immediate experiences. >> I think that's interesting and I want to just validate that, because I think, that is to me, the big sign that I think you guys are on the right track and executing and by the way, some of the things you're talking about used to be the holy grail, they're actually real now. >> Des: Right. >> The dynamic is the silos are a symptom of a digital-analog relationship. >> Des: Right. >> So when you have all digital, the moment of truth starts here, it's all digital. So in that paradigm, end-to-end wins. And at Mobile World Congress this year, one of the main themes when they talk about 5G, and all these things, that were going on, was you know, autonomous vehicles, (laughs) media entertainment, smart cities, a smart home, you know, talk to things. To your point, that's an end-to-end, so the entire world wants-- >> Des: Throw IoT in there. >> Throw IoT, >> Right. >> So again, these digital connections are all connected, so therefore, it is essentially an end-to-end opportunity. So whoever can optimize that end-to-end, while being open, while having access to the data, >> Des: Right. >> will be the winning formula. >> Des: Right. >> And that is something that we see and you obviously have that. >> And then the other piece is how do you actualize that data? Right, and I know you spoke with Jack Berkowitz about adaptive intelligent apps, it's, we're taking approach to artificial intelligence of saying, how can we bring to bear the power of machine learning, dynamic decision science, so that all this data, that's being collected and enabled by all these digital touch points, these digital signals, how do you take that data and how do you actualize that, 'cause the reality is, 80% of data that's collected today is dark, it's untouched, it's just collected, right. >> Well, here is the hard question for you, you know I am going to ask this, so I am going to ask it, here's the hard question. >> Des: Yeah. >> It really comes down to the data, and if you don't, you, connected networks and all that good stuff is great fabric, end-to-end. >> Des: Absolutely, yeah. >> This is certainly the future, it's the new normal, it's coming fast. >> Right. >> But at the end of the day, the conversation we've been having here is about the data. >> Des: Yes. >> What is your position with Oracle on connecting that data, 'cause that ultimately is what needs to flow. >> Des: Right. >> How does that work? Can you just take a minute to >> Sure, sure. >> to address that, how the data flows? >> Yeah, I think it starts with our end-to-end connected applications, that are able, that are connected with each other natively and are sharing that same data set. We obviously recognize that customers have mixed environments, so in those cases, we can certainly use our technologies to connect to their existing data stores, to synchronize with their existing systems, so it all starts with the cleanliness and quality of that baseline customer data. The second piece I'd say, is that we've made a lot of investments over the last five years in Oracle Data Cloud and Oracle Data Cloud is a set of anonymized, third party data. We've got 5 billion consumer IDs, we've got a billion business IDs. We've got a tremendous amount of data sources. We just announced a recent acquisition of a company called Moat, last week at our Oracle Data Cloud Summit in New York City. So we've made a tremendous investment in third party data, that can augment anonymized third party data, that can augment first party data, to allow people to have not just a connected view of the customer, but more of a comprehensive view and understanding of their customers, so that they can better talk to them and get them better experiences. >> That's the key there, that we're hearing with this intelligent, adaptive intelligent app kind of environment, >> Yeah, yeah. >> where machine learning. The third party data integrating within the first party data, that seems to be the key. Is that right, >> Absolutely. >> did I get that right? >> Yeah, well I would say there's a number of points, so I would say that, that, you know, you can think of the Oracle Data Cloud combining with the BlueKai DMP and being a great ad-tech business for us and a great solution for digital marketers in and of itself. What we've done with adaptive intelligent apps is that we've combined that third party data with decision science machine learning AI and we've coupled that with the Oracle Cloud infrastructure and the scale and power of that. So we're able to deliver real-time, adaptive learning and dynamic offers and content at 130 millisecond clips. So this is real-time interaction, so we are getting signals every time someone clicks, it's not a batch mode, one-off kind of thing. The third piece is that we have designed these, designed these apps to just embed natively, to plug into our existing CX applications. So if you're a marketer, you're a service professional, you're a sales professional, you can get value out of this day one. You've got a tremendous data set. You've got real-time, adaptive artificial intelligence and it plugs right into your existing apps. It's a win-win. Take your first party data, take your third party data, combine it together, put some decision science on there, some high bandwidth, incredible scale infrastructure and you're getting, you're starting to get to one-to-one marketing. You're freeing your marketing teams from being data analysts and segmenting and trying to get insight and you're letting the machine do that work and you're freeing up, you're freeing up your human capital to be thinking about higher-level tasks, about offers and merchandising and creative and campaigns and channels. >> Well, the way we think about it, Des, and I'll test you on this, is we think ultimately the machines are going to offer options. So they're going to do triage on a lot of this data >> Des: Right, right. >> and offer options to human decision-makers. Some of the discretions, we see three levels of interaction, >> Des: Yeah. >> Automated interaction, which, quite frankly, we're doing a lot of that today in finance systems. >> Des: Yes. >> But then we get to autonomous vehicles, highly deterministic networks, highly deterministic behaviors, >> Des: Right. >> that's what's going to be required in autonomy. No uncertainty. Where we have environmental uncertainty, i.e. that temperature's going to change or I, some IoT things are going to change, that's where we see the idea of turning the data and actuating it in the context of that environmental uncertainty. >> Des: Right. >> We think that this is all going to have an impact on the human side, what we call systems of augmentation, >> Des: Right. >> where the system's going to provide options to a human decision-maker, the discretion stays with the human decision-maker, culpability stays with the human decision-maker, >> Des: Right. >> but the quality of the options determine the value of the systems. >> So the augmentation is-- >> The augmentation's great. >> So let me give you a great example of that with AIA. So, take for example, you're a pro photographer and you got a big shoot the next day and your camera, your main camera you bought three months ago, it breaks. And you buy all your stuff at photog.com and you call 'em up and what could happen today? "Hi, what's your account number? "Who are you? "Wait, let me look you up, OK. "I'm sorry, I'm not authorized to get you a return." You know, boom, and the person's like, "I'm never going to buy from them again." Right, it's that moment of truth. Contrast that with a, 'cause the person making that decision, if it was the CEO getting that call, the CEO would be like, "We're going to get you a camera immediately." But that person that they're talking to is five levels down in a call center, Bismarck, North Dakota. If that person had AI, adaptive intelligent apps helping them out, then the AI would do the work in the background of analyzing the customer's lifetime value, their social reach, so their indirect lifetime value. It would look at their customer health, how many other services issues, that they have. It would look at, are there any warranty issues or known service failure issues on that camera and then it would look at a list of stores, that were within a five mile radius of that customer, that had those cameras in stock. And it would authorize an immediate pickup and you're on your way. It would just inform that person and enable them to make that decision. >> Even more than that, and this is a crucially important point, that we think people don't get when they talk about a lot of this stuff. These systems have to deliver not only data, but also authority. >> Exactly. The authority has to flow with the data. >> Des: Right. >> That's one of the advantages-- >> On both sides, by the way, on the identity and-- >> On both sides. >> And I think that employee wants that empowerment. >> Absolutely. >> No one wants to take a call and not make the customer happy, right. >> Peter: Absolutely, >> Yeah. >> because that's a challenge with some of the bolt-on approaches to some of these big applications, is that, yeah, >> Exactly. >> you can deliver a result, but then how is the result >> How is it manifested? >> integrated into the process >> Right. >> that defines and affords authority to actually make the decision? >> OK, so let's see, where are we on the progress bar then. because we had a great interview yesterday with the CMO from Time Warner. >> Yeah. >> OK, Kristen O'Hara, she was amazing. But basically, there was no old way of doing data, they were Time Warner, (laughs) they're old school media and they set up a project, you guys came in, Oracle came in, and essentially got them up and running, and it's changed their business practice overnight. >> Des: Right, right. >> So, and the other thing we heard yesterday was a lot of the stuff that was holy grail-like capabilities is actually being delivered. So give us a slice-and-dice what's shipping today, that's, that's hot and where's the work area that's road-mapped for Oracle? >> Sure, well-- >> And were you guys helping customers? >> Sure, I'll talk about a couple of examples, where we're helping customers. So, Denon and Marantz, high end audio company, brand's been around 100 years. The way music is delivered, is consumed, has changed radically in the last 20 years, changed radically in the last 10 years, changed even more radically in the last five years, so they've had to change their business model to keep up with that. They are embedding Oracle IoT Cloud into every product they sell, except their headphones, so all their speakers, all their AV receivers and they are using IoT data and Oracle Service Cloud to inform, not only service issues, like for example, they are, they're detecting failures pro-actively and they're shipping out new speakers, before they fail or they're pushing firmware to fix the problem, before it happens. They're not only using it to inform their service, they're using it to inform their R&D and their sales and marketing. Great example, they ship wireless speakers, HEOS wireless speakers, highly recommend 'em, I bought 'em for my kids for Christmas, they're the bomb. But customers were starting to... They were getting a lot of failures in these wireless speakers. They looked up the customer data, then they looked up the IoT data. They found that 80% of the speaker failures, the products were labeled Bathroom as location in the configuration of their home network setup and what they realized was that customers were listening to music in the bathroom, which is a use case they never thought of and the speakers weren't made to be water or humidity-proof, so they went to the R&D department, 14 months later, they ship a line of waterproof HEOS speakers. The second thing is they found people, who were labeling their speakers, Patio, they were using it on the patio, they didn't even have a rechargeable battery on it, so they came out with a line with a rechargeable battery on it. So they're not only using IoT data, for a machine maintenance function, >> John: 'cause they were behaving-- >> they're using IoT data to inform, inform R&D and they're also doing incredible marketing and sales activities. We had Don Freeman, the CMO of Denon on the main stage yesterday, talking about this great, great stuff they're doing. >> And what's the coolest thing this week, that you're looking at, you're proud of or excited about? >> I'm excited about a lot of stuff, John. This week is realized, you alluded to this week has been really, really fun, really great, a lot of buzz, obviously a lot of buzz around adaptive, intelligent apps and we've talked about that. But I would say also beyond a doubt, that intelligent apps for CX, we've introduced some great things in our Service Cloud, the capability to have a video chat, so Pella Windows was also on one of our panels today and they were talking about the ability for, to solve a service issue, the ability to show a video of what's going on, just increases the speed with which something can be diagnosed so much faster. We're integrating on the Service Cloud, we're integrating with WeChat and we're integrating with Facebook Messenger. Now, why would you do that? Well again, it comes back to this era of the empowered consumer. It's not enough that a company just has a website or an 0800 number that you can go to for support. Consumers are spending more time in social messaging apps, than they are on social messaging sites, so if the consumer wants to be served on Facebook Messenger, 'cause they spend their time on it, the brand has to meet them there. >> John: Yeah. >> The third thing would be the ability for the Marketing Cloud and Service and Sales Cloud, we've got chat bots, voice-driven, text-driven, AI-driven, so mobile assistant for the sales professionals, so you can input data on the road, "Hey, open an account, here's the data "for the transaction here what's going on." >> John: Yeah. >> Incredible, incredible stuff going on all over the stack. >> I think the thing, that excites me, is I look at the videos from last year and the theme was, "Man, you guys have "all these awesome acquisitions," >> Des: Right. >> "But you have this opportunity with the data," and you guys knew that and you guys tightened that together and doubled down on the data >> Des: Yeah, with banking, yeah-- >> and so I thought that was a great job and I like the messenging's clean, I think but more importantly is that in any sea change, you know, we joke about this, as we're kind of like historians and we've seen a lot of waves, >> Des: Right, for sure. >> and all these major waves, when the user's expectations shift, that's the opportunity. I think what you guys nailed here is that, and Peter alluded to it as well, is that the users are expecting things differently, completely differently. >> Let me share a stat with you. 50% of the companies that were in the Fortune 500 in the year 2000, are either out of business, acquired, gone, 50% and those companies, >> Dab or die. >> Blockbuster, Borders, did they stay relevant? >> John: Yeah. I think changing business practice based on data is what's happening, it's awesome. Des Cahill, here on The Cube. More live coverage, day two of Modern CX, Modern Customer Experience, #ModernCX. This is The Cube, I'm John Furrier with Peter Burris, we'll be right back. (dynamic music)

hello everyone welcome to the cube conversations here in our studio in Palo Alto California I'm John Faria co-host of the cube co-founder Sylvania media special guest today inside the cube in Palo Alto Steve Lucas the new CEO of Marketo formerly of sa P industry veteran a lot of experience in the enterprise space now the chief executive officer at Marquette Oh welcome to this cube conversation great to see you yeah great to see you again so Marketo has been on our radar spent on everyone's radar it's been one of the hottest marketing companies that have come out of this generation of SAS what I call SATs cloud offerings and certainly as burn burn in the field in terms of reputation in terms of quality high customer scale a lot of other companies have been bought out you see Oracle doing a lot of stuff you got Salesforce the SAS business is booming oh yeah and you have a rocket ship that you're now the CEO now for two months first question what's it like here now compare a CPA yeah Marketo what's it what's happening well it's I mean s if he's a fantastic company and loved it it's the the the kind of metaphor I've used is it you know with sa P it's it's a bigger it's a bigger vehicle you're driving a bus and you can carry a lot of people with you takes a little bit longer to make a u-turn Marketo is a Formula One car I mean this thing is just in and out of traffic and it's it's unbelievably nimble so it's it's been a big kind of shift culturally but absolutely love it for the folks that are watching you might not know but Steve was in the HANA analytics president of that division with ASAP which was a real interesting transformation because Hana and and and s ap was a traditional big enterprise software company yeah but had to move very quickly Hana was basically built before Hadoop was even conceived and it was built before the big cloud explosion but kind of well built for the cloud so you have to kind of move quickly oh yeah from scratch into the cloud oh yeah with sa Pease resources yeah so compare construct contrast butBut your expense from sa p what is Marquette O's prospects I mean what's going on there I mean I'll see you got a formula speedboat but the big aircraft carriers are thrown pretty big wake they are how are you gonna maneuver yeah yeah well it's it's a fascinating environment right now because you know going from us if he I'd say that my experience they're kind of highly tuned me or prepared me for what I'm doing in Marketo si P had to move nimbly at the time really nimbly you're entering a market where you've got oracle microsoft at a database level they're the incumbents they own massive share how does si penetrate that but we were successful at the time at sa p and i loved that experience coming into Marketo really i mean it's a couple things one is you got to out-innovate the competition this is not rest on your laurels and wait for the release a year and a half from now that doesn't happen so this is about moving quickly but the second thing it's about I believe is it's all about putting the customer at the center of your strategy they have to drive everything I've talked to more marketers more CMOS in the last two months than I have in my last 20 years putting them the center is all about that Marketo their heritage was marketing solutions built by marketers for market what are the people saying you made with a lot of those CMOS more in the past since the past two months what are they saying what's on their agenda what do they care about what's important to them brand revenue and impact they want to know how do I Drive my brand how do I drive revenue and how do I show that impact to my CEO the board whomever it may be but the thing that scares marketers right now the most is what is digital transformation changing relative you know the big trend in macro trend globally how is it changing buyer expectation how is it changing the customer brand relationship that's top of mind Peter Paris who heads up by research for wiki bond and he used to do the b2b practice at Forrester around digital and stay Volante now we're talking yesterday that digital now is everything right so if you look at digital it's not just oh marketing need some tools to send emails out or oh I need to get a website up call IT up and provision or landing page this is now a fabric of pure infrastructure yet the infrastructure was built in the web days and you can go back to your business object days and go back again even back in the 90s that infrastructure now is so hard and as instrumentation there's no agility so that I feel that and we here in our in our teams and our customers that I want agility but I also want to control what the infrastructure might look like but then I don't want to touch it again I wanted to work for me do you see that same dynamic and how does that play out because I mean it's kind of the nuance point but the end of the day shadow marketing is going on shadow IT oh it's happening and it's on this unequivocally I mean so the the it literally the what's crushing the marketer right now is every time we get a new touch point a a watch so we go from just a watch that tells me the time to an Apple watch right every time there's a new touch point there's a new point solution for it and it's crushing the marketer so if it's social there's point solutions if it's mobile there's point solutions if it's a watch there's point solutions I blew my mind I literally saw it start up this is we can do you know monitoring and engagement of people on a watch it's just it's overwhelming the marketer and so their landscape of applications is looking like 30 40 different apps and their big win single sign-on that's the big win for the marketer internally it's just crushing them so what they're looking for your point is the Mahr tech or marketing technology graph and map is so big each one of their own underlying stack database software is that kind of what you're getting at absolutely absolutely you pick a marketing cloud it really doesn't matter you could say Oracle's marketing cloud sales force marketing cloud Adobe's marketing cloud it's just convoluted the the graph or chart of what's out there so point solutions just put together cobble together that's exactly right and so we're the benefit are that this is the the problem with that is what well the problem with that is that you first of all you lose any context relative to who you are there's no way that I can across 30 or 40 systems keep a consistent definition of job for you it's just impossible to do and our notion is we're looking at and what we're driving is a single engagement platform where the definition of you who you are no matter what touch point how we listen to you how we learn from you and how we engage with you it's all the same it's all integrated so let's get back to this point because I think an engagement platform and then the applications are interesting so I mentioned the CMOS earlier there's more development going on in marketing with like programmers developing apps because creig's of course okay so they're using the cloud and the marketing cloud is not like a one-off it has to be part of the core infrastructure so one of the things that wiki bonds gonna be releasing a new research coming up but I saw David floor yesterday who's a head of the research project that they're gonna show market share numbers of Amazon Google all the top cloud guys yeah interesting dynamic past is squeezing now platform-as-a-service is being squeezed down and SAS is increasing and then I as infrastructure stores is kind of shortening which means this automation in there so that the middle layer is gone but yet there's more sass how does that relate to the marketing cloud because the marketing cloud would be considered middleware or is it just the SAS app and does that speak to an explosion of SAS applications well I mean you're gonna see an explosion of SAS applications regardless I mean we reached that point of critical mass a while ago that's there's no going back at this point but if you look at kind of I think you're absolutely right there's compression at the IaaS layer in the past layer etc because these these these larger kind of SAS applications they are really ruling today and if you look at how that applies to marketing we actually think about three technology tiers within marketing there's the listen learn and engage tier the listen it's here is how do I listen on these digital channels the myriad that are out there and then the learned here is core to our platform the engagement platform it's all about an automation engine an AI engine and an analytics engine it's learning and then engaged here is how do I go back to those self same channels I was listening to and engage you the way that you want to be touched and so that's really the stack that comprises the Marketo engagement platform what's interesting the dynamic for us is we're actually seeing our own native applications that we're building on our engagement platform and then we have over 600 partners that are building applications are not building applications on our engagements they're writing software on top of the market absolutely so they're extending it so if social listening which I know is a big thing for Silicon anger that's like the I mean you guys are masters at it that if that's your thing then we have a not only do we have social listening capability but there's an app for that there's dozens so we could potentially plug into that oh absolutely so that's your vision so the vision let's go back to the so more apps a platform that enables more satisfaction yeah and and you mentioned people building on it that's an integration challenge and that's something that people they want to do more of they want to integrate other things with platforms which could be a challenge but it brings up the point data where does the data sit because now the data is the crown jewel yes and also a very important aspect to get real-time information so if you have information on me you won't have access to that data fast that's right and so there's an architectural challenge there there is your thoughts and reaction to the role of data well I first of all marketers still want to own their data and I think we need to be you know the reality is is that if you look a lot at a lot of these marketing clouds that are out there they're the vendor perspective is going to be will if I own your data I own you and our perspective is well you know that your data can sit within our platform but we can actually drive that data into you know on-premise warehouse etc etc so we're our goal is not to own your data ergo we own you that's not our goal I think the big thing like in the content you're saying is you want to use their data to give them value absolutely and so for us it's a matter of you know we can we can do to protect their data - exactly and so for me it's all about you know it's securing the data its but it's also the data is so complex now for the marketer so you've got social data highly unstructured you know you're listening for key words they still have to interpret that information you've got highly structured data demographic for example so it's how do you bring all that together you can bring that together in the Marketo engagement platform and then you can turn that into something meaningful it's always funny always to love to interview the new CEOs because we got the fresh perspective but I can't ask the tough questions cuz you lived in there for two months you get it say I won't even that two months I really can't answer that so I'll get the more generic on that what to try to get this at some of the hidden questions that I like to expose for the audience and really the main one is what attracted Univ Marketo I mean you left a pretty senior very senior position NSA p-president and Marketo is like the ship that's out there it's a motorboat but some are saying that the ways might be big enough and so you know be like okay but their public company so everything's out in the open what attracted you to market what God did say you know what I want to ride this speedboat well the trigger point for me was you know especially it s if he get exposed to kind of the big macro trends big macro trend everybody knows it is digital transformation as if he's talking that Microsoft Accenture picked the big company they're talking digital transfers and it is real the reality is you either are a digital native company were born digital uber or you're going digital ie you know you're a hospitality company trying to compete with air B&B and you gotta go digital so it's yeah I wrote an article I want on go digital or die right that's that's the that's the notion and when I looked at that I said so how does that lens apply to marketing well the reality is is that the marketer in the digital economy is only going to win if they can engage with not two or three people but Millions in an authentic and personalized manner at scale so that it's kind of juxtaposed how do you do that how do you engage with millions of people but at scale but deliver personalized an authentic experience and I looked at Marketo and I saw this platform and I just said oh my gosh there they are there's like this this convergence of those two things that are going to happen and I just think that the whole kind of marketing automation space which is known as really I I want to transform that into the engagement space we're talking about things like this engagement economy trend I absolutely believe we are fully in this notion of the engagement economy I think Marketo is right there so I gotta ask you a question is this is interesting you mentioned getting personalized information one of the things that's apparent we talked about on my Silicon Valley Friday show if you go to soundcloud.com /john for every year that people watching can get the copies of those but the thing was the recent election highlighted an issue around trust right v news younger natives digital natives younger kids they actually don't know what fake news is and what real news is a lot of people are moving off cable TV into digital which opens up the snapchats of the world different channels omni-channel like things and so this brings up this notion of communities because what people are turning to in this time of no trusting the mainstream media right news or Trump or what they were saying it's causing a lot of theater but it highlights an issue which is what's real what's not its content content is also has a relationship with users content is marketing content is trust is now a huge deal how do marketers now deal with the fact that content marketing coming from a company it could be fake news but there's a real or not and how do they get the context jewel connections is it the communities and we see that election people kind of going back to their tribe and saying oh anti Trump or Trump or whatever so tribal communities are a big part of data it is what's your thoughts on this trust factor and data and the content yeah yeah well so I think I mean a couple things first of all you know the I I think you or I as a consumer you know where anybody really we don't respond well to stare I'll moderately creepy advertisements that show up that you you know you know okay you're tracking my cookie you know in my browser and that that is just that's a non-starter I think that that in and of itself is is not interesting now we respond well to there's I said that that kind of personalized and I use that word authentic content so if there's content it's not just hey I know that you visited you know three websites about cars so I'm just going to pump you with ads full of cars but if we deliver thoughtful content it could be a comparison of vehicles that you've been looking at and take a look so there's more thoughtful content that you can deliver that that I think can come through a Mar tech platform like what we have our engagement platform no I will tell you that that trust to me it's it's not just the the authentic nature it's also a consistent engagement you can't show up show me an ad one time and I'm just gonna buy from you it doesn't work that way anymore so it's about having a relationship digital at scale but you know it's it's delivering that human touch I wrote a blog on this one where I said how do you deliver the human touch its Kate for blog addresses it it's on Marquitos website actually yeah right on our website so we talked about that as well and as companies are moving away from you or I managing the social engagement to the AI engines the machines engaging with us I think that we run the risk the marketer runs the risk of reinforcing the stare aisle you know kind of engagement and that's not what we want we want warm human touch that breeds trust sowhat's marcado's technology I mean people look at Marketo and people in marketing general yeah they're just hiring agencies to do all this work this isn't real maar tech marketing technology going on I like some of the technology for the folks watching because yeah I think it's pretty interesting most people don't understand that's a lot of machine learning a lot of technology involved in databases from security to trust also enabling real-time yeah share some insight into what's going on there so so this so there's a notion of engagement platform which we believe is is just fundamentally different than your run-of-the-mill marketing cloud so the engagement platform for Marketo is all about that listen learn and engage kind of methodology that we think about and the listening notion as I said literally as we can listen to anything your custom data social channels smoke signals if we had to we can read and consume almost anything and if we can't do it one of our partners can with like a DMP for example they learn the core of our engagement engine and this is pretty neat so we have three engines in our engagement engine we have the automation engine which is all about I hear you say something on Facebook I can engage with you then there's the analytics engine so I can help you understand what are people talking about on Facebook what are you talking on a LinkedIn and then there's the AI engine now this is where I think the the merger of the marketer and the machine is going to start coming together in a big big way so our AI engine allows you to not just say well if people say Silicon angle on Twitter then send them this but you can actually have it adapt and customize learn and reason learn and reason so X writes out and do some it's right it's predictive Oh not only just predictive actually have it I think it's borderline kind of clairvoyant but understand well I'm not just gonna immediately react to something that you put on Twitter I'm gonna go and I'm gonna check the rest of your digital persona there's a digital assistant basically not a sales rep it's more of an assistant it is it is and and so the future of marketing is simple I can build a marketing or an engagement campaign and I can click a button that says make it adaptive and then that's when the machine in the marketer come together and so on top of that engine we have our marketing applications our native apps like marketing automation we have an account based marketing which is a pretty big deal especially in the enterprise account based marketing is all about going from the single buyer to the consensus buying that you know behavior that's see in the enterprise and then we have other technologies like mobile marketing so we can track when you open an app if you close it if you click on it so it's not just one thing we have a range of marketing apps that sit on the platform right so I want to get the final question I get your thoughts on just the future of the business obviously a year you're there two months you got to get to know the team you've got to get to know the players any changes on the horizon that he let's shop so you got a big launch coming up with it well Ryan codename Orion which is there a new engagement platform that you guys pre-announce and get the announcement coming up there got a book you going on but if for Marketo what's the guiding Northstar for you what do you what do you say to customers and kind of the vision and and what changes you look that might be coming down the pike yeah so I think so the vision really there's two elements to that one is that our core focus like at its core is we're going to help the CMO build the lasting relationship derive revenue for the company and the way that we're going to do that is deliver the engagement platform which we are now rolling out I mean we've been working on a ryan for a long time way before I showed up and Orion takes the ability for a marketer to go from millions of interesting touch points per year social mobile did you know digital touch points to quadrillions of touch points we are ready for that digital transformation what we call the engagement economy era I'm writing a book on there the whole notion of engagement economy we're entering this new era where if you're not able to engage with people and and also things because things will be out there too at scale you won't win you just won't we want to get your thoughts on one final point I know we're kind of running up on time in this segment but if you look at the cloud go back to 2008 2007 timeframe when it really emerged and Amazon is already you know had a couple years under their belts with what they were doing you saw the DevOps movement developed merging development and operators be the real catalyst those early adopters you know those you know Navy SEALs the Green Berets you know eating nails and spit and glass out so so that was Facebook that was the big web scalars Yahoo essentially invented Hadoop which became big data you saw all these companies that were new natives build their own stuff not buy off-the-shelf equipment and they became the the canary in the coal mines for everybody else now everyone wants to be like AWS and even Microsoft's changes to be more like AWS and competing directly with them Google is changing so there was early guys on Facebook what they're doing drones and virtual reality you know what these stuff they're doing with open open compute those are now leaders so they're the predictors of the future in my opinion so I look at it so the question I want to ask you is how does Marketo rank up because companies that don't have huge early adopters of the scale side of it platforms that can't scale probably won't have any Headroom so do you have an example where your business has guys pushing the tech scaling it up that are gonna be that canary in the coal mine you guys have that mix of business can you give some examples yeah first of all we have fantastic customers that are using us today kind of scale Oh at scale absolutely whether it's a GE for example GE is literally attributing billions in revenue to the the Marketo engine and the campaigns and efforts that they're driving through that but ge is a perfect example Microsoft another great when there's lots of great examples of customers of ours that are doing what I would I would call hyper scale in engagement within marketing data and they're with marketing data etc so they're using your tools at large large scale yeah and I'd say it's the scale that that today you get these hyper scale example points but tomorrow everybody's gonna have to do it it's just what's neat for us you see the same thing I was mentioned that those hyper scales are gonna be the you know the pioneers that are gonna let the settlers come in and and behind them do you see that more typically and the neat part for us is is because as a marketing automation technology or an engagement platform we're fully integrated with Facebook Linkedin etc so they actually pull us forward we get that I think we get that we've got the telescope to see the canary in the coalmine a little bit further down the road assuming it's a well-lit coal mine but we get to see that a little bit further down the road so I it's an advantage for us strategically I got to ask you the question because in the database world the systems of record the services of engagement and then systems of AI IBM calls it cognitive yes how do you guys play in that new era is that just all marketing for them well I mean everybody has their cognitive exist yeah and you have something it's so they're every two degrees so everyone has tech and we certainly have what what I characterize as adaptive and intuitive that's my version of AI you know I think saying artificially intelligent it's kind of like I've met a bunch of teenagers that I consider to be artificially intelligent but the reality is is that everybody to a degree has this brochure layer tech that they run around waving it really comes down to what's practical what's usable and for us that's we're focused on is what is adaptive and intuitive technology that's going to merge the marketer in the machine final question final final question is what's the top three priorities for you if we look back on your performance next year this time what are the top three things you want to accomplish as the new CEO of Marketo well number one champion engagement economy that whole we're there and I think people just need to understand what it is to is help the market or win I mean the reality is if you boil it down you ask the question what does the marketer what they want to win they just want to win help their company win and so we want to help the marketer win and then three is really engage our marketing nation we've got a community of an online community talking about communities over a hundred thousand marketers that are working inside of that community it's just absolutely huge and so I want to engage the community if we can do that and be just customer centric and oriented our technology the AI all of those things part of our engagement platform it's gonna help us win to stick congratulations on being the co-chief executive Marketo great to see you Steve Lucas here inside the cube and Paul all those new Studios here in Pella 4,500 square feet you see a lot more content live programming as well as featured interviews with top CEOs of Silicon Valley and top technology companies I'm John Fourier thanks for watching