Sanjay Munshi, NETSCOUT | CUBEConversation, June 2019
>> from our studios in the heart of Silicon Valley. HOLLOWAY ALTO, California It is a cube conversation. >> Hi, and welcome to the Cube studios for another cube conversation where we go in depth with thought leaders driving innovation across the tech industry. I'm your host today, Peter Boris. One of the biggest challenges that every enterprise faces is how best to focus attention on the most important assets that are driving or facilitating that drive the digital business and digital business transformation. There's been a lot of emphasis over the last 50 years in tech on the hardware assets, but increasingly we need to look at the elements of it that are actually creating net new value within a business now, maybe the people, the services and the data that make digital business possible. And that requires that we rethink our approach is to how we actually manage, conceive of and monitor those key assets and is likely to lead to some very interesting unification Tze over the next few years, especially in SEC ups and neck cops now and have that conversation got a great guest today. Sanjay Moon. She is the vice president, product management, that net scout Technologies. Sanjay, welcome to the >> Cube. Thank you, Peter. Thank you. >> So, Sanjay, I said a lot upfront. But before we get into that, tell us a little bit about Net Scout. >> Thank you, Peter, for the introduction. Net Scout is a smart data company. Net Scout has three decades of leadership and innovation in troubleshooting monitoring and securing it based networks. We are deployed in 90% off the Fortune 500 companies and 90% off the top communication service providers. World White. We have 50% market teacher In each of the three segments that we playing. Where is the next biggest competitor? We have has less than 5%. Those three areas are number one network and application performance monitoring for hybrid cloud infrastructure for enterprises, D does and on security for enterprise and service providers and service assurance for service providers, which includes mobile operators, cable providers as well as I speak. Today we operate in 50 plus countries worldwide. We have 25 100 plus employees and 500 plus pattern store credit. >> Impressive story. Let's get right to the issue, though, and how Net scout is actually participating in some of these crucial transformations. I mentioned upfront that one of the biggest challenges that every enterprise has is to focus Maura their attention on those digital assets that are actually driving change and new sources of value named of the data, the services and the devices and the people, the applications or people that use those. So one >> of >> the challenges that we've had is that, ah, focus on devices leads to a focus on certain classes of data that are mainly improved or focus on improving the productivity of devices. Give us a background and how that's what that means. >> Let me in to do the concept of smart data that's that's born out ofthe nets, calibrated with smart data. Next called Pioneer. The leverage off Wired ate our package data three decades back that drives over ingenious portfolio that drives net ops and cloud tops. S i r. Adapt to service intelligence. This is a smart data that comes out ofthe packets with S I smart data. We uniquely converge application and network performance monitoring you are customers Toro visibility across application tears and two and networks and diverse data center locations. >> So just toe pick up on that moving away from a log focus, which is again mainly, Let's improve the productivity of the device. We're moving in a sigh, which is focus on Let's improve the productivity of the connection in the application. >> Absolutely absolute. And we'll talk a little bit more about long. Let's talk about Log and Net flew other sources of data that folks have gravitated towards, which is not there, not there, not authority to by any means. Let's say log data, for example, this log data, you know, as soon as a threat actor, for example, gets access to your systems. The first thing the protector will do is to turn off flogging are doing verse changed the log days, change the cyst, log messaging itself. Let's take a look at net flow data. For example, Net flow data number one Problem is, it's not Doesn't have layers. Seven. Intelligence, innit? Number two. It's not generated by all the devices in the network. For example, the Coyote devices do not generate any kind of flow data, so only data that authoritative and that comes with high fidelity is packet or wire data. That's one element off of smart data that we have the other element of smart data comes from our arbor portfolio. Arbor products are deployed in 400 plus tier one operators, mobile operators and service providers worldwide. And as such, we see 1/3 of the Internet traffic to our strategically located. Sensors in the service provider corps were able to generate another type of smart data that we call Atlas Intelligence feed R A F in sharp air for it. Plus intelligence Feed essentially tracks cyber reputation across domains across joe locations and across user identities. The combination of the A S I smart data that is generated from the core of the hybrid cloud infrastructure. Let's call it intranet and F Smart data that is generated from the Internet Corps gives Net Scout a unique data set combination that's unparalleled in the marketplace and makes us perhaps Lee, one of the food vendors who can drive a consolidated visibility architectures across net ops, cloud ups and second >> Okay, So let's turn that into against very practical things for folks, because what it has historically done is by focusing on individual devices or classes of devices and the data that those devices generate, they end up with a panoply Ah, wide arrangement of security tools that are each good at optimizing those devices with those, he said, they may not necessarily be a forte tive, but it's difficult to weave that into a consolidated, unified SEC ops Net ops overall, not just architecture but platform for performing the work crucial work of sustaining your digital business infrastructure. How does smart data translate into unified operation >> is appoint Peter? Thank you. That's a very good point. So let me give an example and talk about the customers that we have deployed our smart data, our hybrid cloud infrastructure. This is a typical Fortune 500 where we are deployed. Next card is deployed as the hybrid cloud monitoring infrastructure, and the networks in the club cloud upside. Typically, you will see this type of organization has one tool to cover the entire hybrid cloud monitoring infrastructure across their entire portfolio, whether it is on Prem, whether it's in the cloud, whether it's in the core location facility. But when you look at the SEC locks and the security side, the story is completely different. The same organization, the same Enterprise customer, has 25 to 30 different disparate display tools As a matter of fact, analysts are saying today that a typical Fortune 500 the US has 70 disparate security tools. Why is that the case? Why is it that on the net tops and cloud upside, they need 11 tool net scout, for example? But in the second up there, 70 different products. The reason is not only smart data but also smart architecture. So what? We have seen what we have done over the past three decades, We have designed this two tier architecture that generates Margarita. The dear one is our distributed instrumentation of sense of framework, which we call in Finnish Stream or the Stream. This is the distributor sensor framework that is deployed in the hybrid cloud infrastructure that generates the smart data. And then we had the centralized Analytics layer, which is our ingenious platform that essentially correlates data across the hybrid cloud infrastructure and provide customers complete visibility across the portfolio off the data centers. On the second upside, security side security is roughly 1 10 to 15 years old. Security tried to emulate the studio model as well, but the security industry failed. In doing that, nobody could design this distributed sensor instrumentation cost effectively tto make violate our feasible for analytics with the result they migrated to. As you said, this subpar sources of data like CeCe log like net flow. And today they put all the emphasis on the analytics layer with the result. They need one tool for use case or one vendor per use case on the second offside. And that's why you see the two proliferation because they don't have this distributed sensor framework that will make violate our package data feasible for the analytics lately. >> And I want I want to build on something you're saying because, uh, the it's a It's a misperception that all resources and all work of digital business and technology is going to end up in a central crowd location. The cloud really is an architecture form or broad distribution of data and work, which means, ultimately, that if we don't deal with this proliferation security tools now we're going tow. Probably have an even greater explosion in the number of security tools, which will mohr radically diminish or ability to establish new classes of options and digital business. >> Very good point. As a matter of fact, just a couple of years back, the average number of tools was 40 in in a SEC cops portfolio on enterprise has in the U. S. To date 70 it could go 200. But if you look at the risk profile, well, this profile has stayed the same, are in and make mint. Many cases deteriorated, right? What we found is the tool that a number of tools is going up. The cost of breaches going up the third. The number of breaches are going up, and at the same time, the number of analysts is always and Earth. So in short, high investments on the security side failed to reduce risk. So the risk and investment factor both are going in the north bound go, both are going up. So how do you control that? How do you make them come down? The only way? Smart data on a smart platform on a smart analytics later. >> Yeah. Again, let me emphasize this crucial point because it's one of things that we've seen in our conversation with clients is, ah, proliferation of tools. Proliferation of data leads to a proliferation of tasks and response responsibilities within a business, and you end up with more human failures of consequence. So by bringing all these things together, you end up with smarter data, smarter platform, simpler operations, more unified operations and get greater leverage. So so, let's talk then about ultimately, how should a business What's the road map? What's the next two or three things that an enterprise needs to do to start bringing these to start unifying these resources and generating the simplicity so that you open up greater strategic options for how you configure your digital business? >> That's a very good point. So >> two things we talked about already one is smart data relying on smart data, which comes from wide ate our package data. And the second is smart, smart architecture, which comprises of this two tier architecture with distributed instrumentation and centralized analytics. What happens when you do that is the first thing is early warning detection. What we have realized, Peter, is that if you look at the traditional kill chain in Lockheed Martin's kill chain, our miter mortal that people are using now traditional reconnaissance weaponization shin as well as ex filtration, we have seen that if you rely, if you generate analytics based on packet date are smart data, which we do as a net scow. You can detect these phases much earlier than if you rely on device data. Net floor, sis log. So what I call day minus not day zero, but day minus so leveraging the smart data and smart architecture. Er, we're able tto detect these threats or compromises much earlier than a traditional kill chain more than lot of miter models, >> but But again, the reason why is because we're looking at patterns in the traffic. >> We're looking at behavioral patterns in the traffic. That's correct. Let me go little bit more technical, if you will, were looking at transactions at the DNA's level, transactions at the CP level or at the active directly level that happened much earlier than when electoral movement or a reconnaissance is detected. This happens much earlier because we have the smart data, the wide ADA that enables us to do this early warning detection, >> get more visibility to source as opposed to the target. >> That's correct. The second thing that happens with US smart architecture, the two tier architecture is the consolidation of fuse case. We talked about it a little bit, so today if you want in our in our hybrid cloud scenario that we the next card is deployed in Fortune five hundreds. Over the past 23 decades, our customers have moved from private cloud infrastructure. First they had the core righty. Then they moved Private cloud. You know, I am Francisco. Then they moved echolocation clinics and others. And then they moved also to public cloud. All the workloads are migrating and everywhere we did not make any change to our instrumentation there. Can you believe it? No changes You only changes we made was in the analytics layer to take care of the news cases. So with the result, we could consolidate multiple whose case is in the cloud monitoring in tow. One platform, the smart platform that smart data. Now we're building that value into security with the smart platform and smart data that we talked about. So the consolidation of use cases on the security side is the second advantage other than the early warning detection that we talked about. >> So this has got to improve. Detection has got intrude. Management's gonna improve. Forensics. If I got that right, >> made a good point. And forensics we should talk about a little bit more. Perhaps the second set of things that we're doing is we have done is consolidate in the SEC upside forensics and detection. So let me explain that a little bit more. If you look at a typical enterprise today, they use Seymour security information and even management platforms to correlate data from multiple sources. So in the event off a seam alert, off alert generated best SIM platform forensics teams need to determine what happened and what systems were impacted. Essentially the what when, how, where off, the off the alert or the compromise that has been detected today. As we said, security teams are not using packet data at all but foreign. 16. In orderto validate that alert, they need toe access sessions. They need to access packets belonging to that Ellen, but they cannot today because none of the devices none of the security platforms is using violator in the first place. So what the security teams are doing? Forensic analysts. They're leveraging devices like via shark and tracking investigations with spreadsheets. This is delaying the investigation time. As you know today, it's well known that this cause is alert, fatigue and 50% of the alerts that are going to the seam today are disregarded by the security analysts. With the result, the real threats are getting unabated, and enterprises come to know about a security breach from the media rather than from their own IT department. >> Sanjay. So we've had a great conversation talking about how smart data smart platform is going to lead to greater unification of tasks, people, responsibilities and set ups and net tops and some of the it impacts on eh enterprises Overall response stance both from a detection, management and forensic standpoint. So what's going on? Thank you very much for being on the cue. Sanjay Moon. She Thank you. Thank you. And thanks again for joining us for the Cube conversation. We've been Sanjay Moon, she of Net scout technology. I'm Peter Burke's. See you next time
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from our studios in the heart of Silicon Valley. One of the biggest challenges that every enterprise faces is how Thank you. But before we get into that, tell us a little bit about Net In each of the three segments that we playing. the devices and the people, the applications or people that use those. the challenges that we've had is that, ah, focus on devices leads to a focus This is a smart data that comes out ofthe packets with Let's improve the productivity of the device. The combination of the A S I smart data that classes of devices and the data that those devices generate, they end up with a that is deployed in the hybrid cloud infrastructure that generates the smart data. greater explosion in the number of security tools, which will mohr radically diminish or ability So in short, high investments on the security side failed to reduce risk. What's the next two or three things that an enterprise needs to do to start So And the second is smart, smart architecture, at the CP level or at the active directly level that So the consolidation of use cases on the security side is the second advantage other So this has got to improve. fatigue and 50% of the alerts that are going to the seam today are disregarded by the security Thank you very much for being on the cue.
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Wikibon Action Item, Cloud-first Options | Wikibon Conversation, February 2019
>> Hi, I'm Peter Burroughs Wellcome to wicked bon action >> item from the Cube Studios in Palo Alto, California So today we've got a great conversation, and what we're going to be talking about is hybrid cloud hybrid. Claude's been in the news a lot lately. Largest consequences from changes made by a Ws is they announced Outpost and acknowledged for the first time that there's going to be a greater distribution of data on a greater distribution of function as enterprise has moved to the cloud. We've been on top of this for quite some time, and it actually coined what we call true hybrid cloud, which is the idea that increasingly, we're going to see a need for a common set of capabilities and services in multiple locations so that the cloud could move to the data and not the data automatically being presumed to move to the cloud. >> Now to have that >> conversation and to reveal some new research on what the cost in value propositions of the different options are available. Today. We've >> got David Foyer. David. Welcome to the Cube. Thank you. So, David, let's start. When we talk about Hybrid Cloud, we're seeing a continuum of different options start to emerge. What are the defining characteristics? >> Yes, we're seeing it could continue him emerging. We have what we've called standalone off course. That one is end of the spectrum on DH. There we have multi cloud, and then we have loosely and tightly coupled, and then we have true and as you go up the spectrum. So the dependence upon data depends on the data plane dependence upon low latent see dependance on writing does a systems of record records. All of those increase as we going from from lonely for High Leighton Sea and High Band with all way up to low late. >> So let me see if I got this right. It's true. I've a cloud is at one end and true. Either cloud is low late and see right on into workloads simplest possible administration. That means we're typically goingto have a common stack in all locations. Next to that is this notion of tightly coupled hybrid cloud, which could be higher late. And see, right oriented could probably has a common set of software on all no common mental state. And then, kind of this. This notion of loosely coupled right multi or hybrid cloud, which is low, high late and see, write or read oriented, which may have just a P I level coordination and commonality and all >> that's right. And then you go down even further to just multi cloud, where you're just connecting things, and each of them is independent off each other. >> So if I'm a CEO and I'm looking at a move to a cloud, I have to think about Greenfield applications and the natural distribution of data for those Greenfield applications. And that's going to help me choose which class of hybrid clawed him and he used. But let's talk about the more challenging from a set of scenarios for most CEOs, which is the existing legacy applications as I cry that Rangel yeah, systems of record. As I try to bring those those cloud like experience to those applications, how am I going through that thought process? >> So we have some choices. The choices are I could move it up to lift and shift up to on a one of the clouds by the large clouds, many of them around. And what if I if I do that what I'm need to be looking at is, what is the cost of moving that data? And what is the cost of pushing that up into the cloud and lost the conversion cast if I need to move to another database, >> and I think that's the biggest one. So it just costs of moving the data, which is just uninterested. It's a cost of format changes at our migration and all the other out conversion changes. >> So what I did in my research was focus on systems of record, the the highly expensive, very, very important systems of record, which obviously are fed by a lot of other things their systems, the engagement analytics, etcetera. But those systems of record have to work. They you need to know if you've taken on order, you need to have consistency about that order. You need to know always that you can recover any data you need in your financials, etcetera. All of that is mission critical systems of record. Andi, that's the piece that I focused on here, and I focused on >> sort of. These are loaded and she >> low, very low, latent, right oriented, very right orientated types of applications. And I focused on the oracle because the majority ofthe systems of record run on Oracle databases on the large scale ones, at least so that's what we're we're focusing on here. So I looking at the different options for a C I O off. How they would go on DH. There are three main options open at the moment. There's there's Arkalyk Cloud Cloud, a customer, which gives thie the cloud experience. There is Microsoft as your stack, which has a a Oracle database version of it on DH outposts. But we eliminated outposts not because it's not going to be any good, but because it's not there yet, is >> you get your Razor John thing. >> That's right. So we focused on Oracle on DH as you and we focused on what was the benefit of moving from a traditional environment where you've got best of breed essentially on site to this cloud environment. >> So if we think about it, the normal way of thinking about this kind of a research is that people talk about R. A Y and historically that's been done by looking by keeping the amount of work that's performed has given constant and then looking at how the different technology components compare from a call standpoint. But a move to cloud the promise of a move to cloud is not predicated on lowering costs per se, but may have other financial considerations, of course, but it's really predicated on the notion of the cod experience, which is intended to improve business results. So we think about our lives being a numerator question. Value is the amount of work you do versus the denominator question, which is what resources are consumed to perform that work. It's not just the denominator side we really need to think about. The numerator side is well, you create. So what? What kind of things are we focused >> on? What we think about that value created his consequence of possibilities and options of the cloud. >> Right? So both are important. So so Obviously, when you move to a cloud environment, you can simplify operations. In particular, you can simplify recovery. You, Khun simplify a whole number of things within the shop and those give you extra resources on. Then the question is, Do you just cash in on those resources and say OK, I've made some changes, Or do you use those resources to improve the ability of your systems to work and one important characteristic off it alight and systems of record in particular is that you get depreciation of that asset. Over time, it becomes less fitted to the environment it has started with, so you have to do maintenance on it. You have to do maintenance and work, and as you know most means most work done in my tea shop is on the maintenance side minutes. An enhancement. It's maintenance. An enhancement, yes. So making more resources available on making it easier to do that maintenance are making less, less things that are going to interfere with that faster time to to to maintenance faster time. Two new applications or improvements is really fundamental to systems of record, so that is the value that you can bring to it. And you also bring value with lower of better availability, higher availability as well. So those are the things that we put into the model to see how the different approaches. And we were looking at really a total one. One supplier being responsible for everything, which was the Oracle environment of Oracle clouded customer to a sort of hybrid invite more hybrid environment where you had the the the work environment where you had the equipment coming from different place vendor that the service, the oracle, the as your service coming from Microsoft and, of course, the database coming then from Arkham itself. And we found from tremendous improvement in the value that you could get because of this single source. We found that a better model. >> So the common source led to efficiencies that then allowed a business to generate new classes of value. Because, as you said, you know, seventy plus percent of a night organ orb business is spending. Biology is associate with maintaining which they're enhancing. What's there in a very limited amount is focused on new greenfield or new types of applications. So if you can reduce the amount of time energy that goes into that heritage set of applications those systems of record, the not opens up that frees up resources to do some of the things >> on DH Having inflexibility now with things like As your stack conned in the future E. W. S off. Putting that resource either on premise or in the cloud, means that you can make decisions about where you process things things about where the data is about, where the data needs to be, the best placement of the data for what you're trying to do >> and that that decision is predicated on things like late in sea, but also regulatory, environment and intellectual property, controlling >> the custom moving data up and down. So the three laws of off off the cloud so having that flexibility of moving, keeping it where you want to, is a tremendous value in again in terms ofthe the speed of deployment on the speed of improved. >> So we'll get to the issues surrounding the denominator side of this. I want to come back to that numerator sites that the denominator again is the resources consumed to deliver the work to the business. But when we talk about that denominator side, know you perhaps opening up additional monies to do new types of development new times of work. But take us through some of the issues like you know what is a cloud experience associated with single vendor Faster development. Give us some of the issues that are really driving the value proposition. Look above the line. >> I mean, the whole issue about cloud is that you go on, take away all of the requirements to deal with the hardware deal with the orchestration off the storage deal with all of these things. So instead of taking weeks, months to put in extra resources, you say I want them on is there. >> So you're taking out administrate your taking administrative tasks out of the flow out of the flow, and as a consequence, things happen. Faster is the time of values. One of the first one. Give us another one. >> So obviously the ability to no I have it's a cloud environment. So if you're a vendor of that cloud, what you want to be able to do is to make incremental changes quickly, as opposed to awaiting for a new release and work on a release basis. So that fundamental speed to change speed to improve, bring in new features. Bringing new services a cloud first type model that is a very powerful way for the vendor to push out new things. And for the consumer, too, has absorbed them. >> Right? So the first one is time to value, but also it's lower cost to innovation. >> Yes, faster innovation ability to innovate. And then the third. The third most important part is if you if you re invest those resources that you've saved into new services new capabilities of doing that. To me, the most important thing long term for systems of record is to be able to make them go faster and use that extra Leighton see time there to bring in systems off systems of analytics A. I systems other systems on provide automation of individual business processes, increased automation that is gonna happen over time. That's that's a slow adding to it. But it means you can use those cloud mechanisms, those additional resources, wherever they are. You can use those to provide a clear path to improving the current systems of record. And that is a much faster and more cost effective way than going in for a conversion or moving the data upto the cloud or shifting lift and shift. For these types of acts, >> what kind of they're all kind of related? So I get, I get. I get superior innovation speeds because I'm taking new technology and faster. I get faster time to value because I'm not having to perform much of tasks, and I could get future could imbue additional types of work in support of automation without dramatically expanding the transactional wait and see on arrival rate of turns actions within the system of record. Okay, So how did Oracle and Azure with Oracle stack up in your analysis? >> So first of all, important is both a viable solutions. They both would work okay, but the impact in terms of the total business value, including obviously any savings on people and things like that, was two hundred nineteen eighty three hundred million dollars additional. This was for Robert to come in for a a Fortune two thousand customer, so it was around two billion dollars. So a lot of money over five years, a lot of money. Either way, you would save two hundred million if you were with with the zero but three hundred with the oracle, so that that to me, is far, far higher than the costs of I T. For that particular company, it's It is a strategic decision to be able to get more value out quicker. And for this class of workload on Oracle than Arkalyk, Cloud was the best decision to be absolutely fair If you were on Microsoft's database. And you wanted to go to Microsoft as you. That would be the better bet you would. You would get back a lot of those benefits, >> so stay with him. The stack, if you can't. Correct. All right, So So two billion dollars a year. Five years, ten billion dollars in revenue, roughly between two hundred million and saving for one Congress all around three. Treasure Quest. Oracle three hundred millions were one percent swing. Talk to us about speed value. What >> happens in the numerator side of that equation >> S Oh, so it is lower in caste, but you have a higher. The cast of the actual cloud is a little a little higher. So overall, the pure hardware equipment Cass is is awash is not going to change much. It might be a little bit more expensive. You make the savings a cz? Well, because of the people you less less operators, simpler environment. Those are the savings you're going to make. And then you're going to push those back into into the organization a cz increased value that could be given to the line of business. >> So the closure of the researchers If your CEO, you look at your legacy application going to be difficult to move, and you go with stack. That's best for those legacy applications. And since the vast majority of systems of record or running all scale large scale, then that means work. A cloud of customers is a superior fit for most from a lot of chances. So if you're not there, though, when you look at other options, all right, David Floy er thank you. Thanks very much for being on the Cube today, and you've been watching other wicked bon action >> item from the Cube Studios and Power Rialto, California on Peter Burke's Thanks very much for watching.
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capabilities and services in multiple locations so that the cloud could move to the data conversation and to reveal some new research on what the cost in value propositions of the different options are What are the defining characteristics? So the dependence upon data Next to that is this notion of tightly coupled And then you go down even further to just multi cloud, So if I'm a CEO and I'm looking at a move to a cloud, I have to think about Greenfield and lost the conversion cast if I need to move to another database, So it just costs of moving the data, which is just uninterested. You need to know always that you can recover any data you These are loaded and she So I looking at the different So we focused on Oracle on Value is the amount of work you do versus What we think about that value created his consequence of possibilities and options of the cloud. of record, so that is the value that you can bring to it. So the common source led to efficiencies that then allowed a business to generate new premise or in the cloud, means that you can make decisions about where you process things So the three laws of again is the resources consumed to deliver the work to the business. go on, take away all of the requirements to deal with the hardware One of the first one. So obviously the ability to no So the first one is time to value, but also it's lower cost in for a conversion or moving the data upto the cloud or shifting lift I get faster time to value because I'm not having to is far, far higher than the costs of I T. For that particular company, Talk to us about speed value. Well, because of the people you less less operators, simpler environment. So the closure of the researchers If your CEO, you look at your legacy application going to be difficult to
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Kalyan Garimella, Deloitte & Jeff Carlat, HPE | HPE Discover Madrid 2017
>>live from Madrid, Spain. It's the Q covering HP Discover Madrid 2017 Brought to you by Hewlett Packard Enterprise >>Welcome back to Madrid, Spain. Everybody, this is cute. The leader in live tech coverage And we have a day to HP discover Madrid. My name is Dave Volonte with my co host for the week Peter Verse. Jeff, Carla is here. He's the senior director of solutions. Go to market system integrators at Hewlett Packard Enterprise and Kalyan Gara Mela. Who is the i o t manager? Deloitte. Yes, Gentlemen, welcome to the Cube. Thanks for coming on, You bad love too deep here. It's always a great time. Yes. So you know, when you come on with Deloitte, we always sort of mentioned you guys. One of the top system integrators in the planet. You got deep expertise and vertical industries. You guys bring the technology expertise. Last time we were talking about manufacturing. This time we're gonna talk about retail. Yes. Why? Retail, You know, retails in turmoil. Everybody's got numbers on war room. But you guys are going after that, helping some of your customers so to take advantage of their physical presence, bringing in an online presence move into digital. Is there hope there's hope, their retail dead? You know, >>I hear all the time about this retail apocalypse retail is dead, and in reality, it's not dead at all. Still, 85 to 90% of purchases were being going through a brick and mortar store problem here, and the apocalypse will happen to those brick and mortar retailers that don't change. They don't digitize and change to the changing demands of a consumer and the way they want purchase something, give you an example, my son or even myself. Now I increasingly want to do things through an experience. My computer, my mobile phone. I do research. I I want to understand. I want recommendations. I want personalization. I want to be catered to. I don't want to go stand in line. Well, that experience can be done but are unique. Ability. Is taking that experience in a planet into a brick and mortar environment? >>Well, I got to say I love going Cabela's with my kid with my wife. I mean, I could spend all day. Hey, get that on Callie and tell us about your you're rolling. The Lloyd, obviously specializing in the retail practice. What, Your background? >>Yes, my name's Kalyan. Gotta Mila being a coyote manager from the >>delight you >>practice based out of San Francisco, and we have been working with our partners and friends. Hitch be Aruba over the past year or so, helping them dollar, I ot go to market projects, products that can be that we can take to market on Dhe. Recently. We're just working with manufacturing and retail industry. >>So what's the conversation >>like with your customers? As I said, everybody's got an Amazon war room they're trying to figure out. Okay, >>how do we leverage our physical presence as an advantage? What were the conversations like with clients with >>our clients? Mostly that talking about How did the mimic our online channels? Right. If I go to an online retailer, you know, if I go open, say amazon dot com, they know exactly what item I am for chasing where I'm going next. What? How much time I'm spending. So in order to differentiate the brick and mortars in order to differentiate themselves from the fellow retailers, they have to offer that customized shopping experience in order to get given a reason for the customers to come in store and make that purchase. So they're trying to look at what new technologies that we can can we can help with. What are some of the new processes that we can help with? And that's where most of our conversations have been going on, >>Really experience. Problem >>it is. And you talk about the bells and I moved into a new house, ready to buy my big >>lazy boy chair and watch Sunday >>football, and I'm not gonna go online just by here. I want to touch and feel that I was late and I want to understand. Well, that is a perfect opportunity of providing an experience. Allows me to do the research, get suggestions, go into a brick and mortar store. Try it out, then guess what? I'm getting personalized. Hey, you know what? There's a nice beer stand that I could put right next to that table. Be calm, perfectly complemented. Hey, there's a light that can look over So we have that ability of actually tying together and experience, actually predicting in advance what the customer really doesn't know they want next. But they really do want example. We just walked out of a client engagement. Beautiful example. Plan Engagement sells high end women's fashions, right dresses and shoes and accessories. Everything. And he's He basically said, We're dabbling around with R F I. D tags, um, inventory management, but we don't know what to do, right? Bingo. We now have a proven, referenced architecture called the Connected Consumer. This is a preview to be announced to be soon, but that can allow, actually that client to integrate and optimized and digitized the solution for a number of different use cases that spans a unique customer experience in store operations and efficiencies, and then providing insights through analytics in store analytics to make decisions quickly. So you've got by using this architecture building of solutions based with Deloitte Competence season capabilities in HPD Aruba technology. We can deliver that to increase top line revenue, increase basket side, decrease inventory costs, lost inventory and provide much greater brand loyalty to those customers by having a nice, personalized teachers. They know me by name. They know what I'm looking for in advance. Beautiful solution. >>So the online retail world did two crucial things. One is provided new way of customer to buy something and number two, it provided a new way for the retailer to learn something about the customer. Very, very powerful. But as you said, we're still last time. I checked physical things that move through space that used physical senses, too. Make decisions, Tactile. Do I like the color? You know the experience. I mean, I remember having arguments with people about whether the Apple stores are ever gonna have any impact in the world. And, boy, did they prove that experience of physically being there matters. So in many respects we're talking about, We're talking about creating spaces, the correspond to the experience that a customer wants in a way that doesn't force them into another channel. >>I think that is excellent. Thank you will hear security and character talks about who these are Aruba team. And they are renowned for taking a space and providing using technology and I, t and software and security to provide a total experience, an immersive experience for those that are occupying that. >>But that's not how retailers used to think. What they used to think was this is the space where I put my inventory where I show my product and then I'll put the catch register over here. What you guys I presume we're trying to do is show how. Show them how they could turn that physical space into a place that can bring in the online digital elements, complimented in a way that makes that door a source of different jack >>experience in the brick and mortar store and allows the comfort of Yeah, you know >>that makes it differentiated so that someone wants to go there, because that is a valuable experience in and of itself. >>And sadly, retailers of the past 40 years have always relied on big brand names to attract customers. If I have the best brands in the world, customers will come to me back. That scenario doesn't hold true anymore. You need to give them a reason. A personalized, curated experience for them to come in >>well, not least of which is the digital technology allows us to spin up new brands like overnight and so also so there's a there's it's having an erosion of effect on the other side of the inventory. So tell us a little bit about where you think over the next few years that differentiated in store experience is gonna be what is going to constitute great retail. >>I'll start enough shit. >>First and foremost, the expectations of millennials and other generations is more of that online experience. So I think I think retailers of the future have to be able to provide that customized experience. To be able to provide predicted people are not waiting in line is not an option in the future, right? I mean, even you. You look a waiting in line is not an option. I think that ability of you have to have more instantaneous gratification but allowing, if you will, the personalization being covered. I think that one expectation for those that want to sustain a business in retail in the future >>and add on to that right. I mean, the marketing managers are the store managers of the past have always relied on opinions rather than data and insights to make this better business stations. Where do I place my product? Where are my customer spending most of my time? It's just guess it's most of it was guessing. Now there is a technology out there where we can actually monitor what's happening inside your retail store and dead. While you can make better business nations to help you with your customer journeys, >>traffic, foot traffic, you know through video analytics and the data someone's hanging around the Nike booth or whatever you know financially, and you can purposely point them and give them suggestions of 20% off. And so you can personalize that experience. >>So wait. See Io client on DDE that's in the retail space on the way he described it is, you gotta break the whole thing down. Let me test you guys. You have a period of I want the experience of shopping on. The example that he gave me was a bike company a number of years ago who used flexible manufacturing to collapse the time high end bike to collapse, a time from order in the bike, getting the bike down to a few days. And they failed because the customer like waiting the process of buying, reducing time. Simple, straightforward, but also what they said. And this is the kind of flexibility we're talking about is some people don't wanna walk out of the store with the product they want to deliver to their home, so the store is again, not the place where the inventory is. It's the place where you experience the product and that they create an option. How would you like that? I like to be delivered to my house. No problem. There you go. Is that the kind of thing that we're talking about in the future? >>Absolutely. We call it the unified commerce of the Arm and channel shopping experience. You want to give the customer all the options available. Like you said, I could buy online shipping in store O. R. I can buy in store get into my house all the different options that a customer is looking for. A non online channel, which is easy and convenient. We want to do that in a brick and mortar as well, and our solution can help you do that as well. So you >>guys encounter a client that is, you know, declining same store sales management is concerned about, You know, the future. It seems like it's a tired sort of experience and, you know, that's sort of the end of the spectrum. And you want, you know, the to be his future. Stefano, the talk about where do you start so >>who brings what experts is. >>Actually, I'm gonna repeat what I said last time. Our mantra is First off, you gotta think big. Then you start small and then you scale fast. And what I mean, that what we mean by that is with the Lloyds capability. It's been a week and jointly come in and help a retailer. Let's think it through. Let's think you have how many branches looking to wear? What are your problems? What your inventory leak age. You know what your current experience, but you're in store WiFi. We can build a plan on what we can do. But the next big problem that we see is not about the technology is about the people in the process. How do you convince its How do you commit? Some who invest to change well, this through our proof of concept capabilities, we have the ability of starting small. Let's just go in and we can do through this architect modular proven architecture. We could do a starting Well, let's just start with some R F I. D tags and tags and start small. We can deliver the business value and calculate that and extrapolate that out if we apply that to your all your stores and scale fast. So we're making it. This be an on ramp for those retailers because they're saying what I do. I know I need to change, but what do I >>So you do like a test store model, right? Okay. And then what? That's your POC is actual. >>Yeah, And then So I wanna go back a little bit on this whole coyote offering. It's a composite offering, right? It takes a lot of technologies coming together and a lot of SMEs subject matter experts to come in and help you to build a whole solution. And that's where I think our solution is where it's ready to go, where all the pieces have been put together and can be easy from day one. The time to market has been drastically reduced because of this. Right? So we see a lot of value in that. >>So So you're able to say Okay, what kind of target customer? What kind of inventory? What's the cost of it? What's the turn? Take all those business attributes and then say we can map that back into a set of physical and system components that you can scale fast >>really comes around you. Three buckets were doing this to optimize an increase revenue, basket size conversions, everything timed revenue, decrease costs, efficiencies and inventory logistics people, uh, labor. And then providing a much greater experience of brand loyalty, which will also affect both costs and >>capture and capture additional data. So, for example, returns means two things costs, but also, somebody had a problem. >>So, uh, we're out of time, but so summarize kind of where you guys were at, >>uh, your solutions when it's gonna be available, you go to market, give us the >>tickets. That right now we're here at HP discovered we're previewing this connected consumer architecture. We're will deploy it. Calendar quarter one of next year will be the full announcement. We have contact information. We would love to engage in clients and start that discussion now around doing proof of concepts on dhe. We're going to be not only driving this collective retail solution that could be extrapolated into different use. Cases in markets were also continued to drive the Moorman industrial Internet of things and manufacturing offering around predicting maintenance, asset monitoring, maintenance that we talked about in Vegas. >>Great. Well, I hope next next Vegas come back with some examples and some a customer, and we could go through so that one of impact you've had, maybe you'll be through a POC. At that point. I'd >>love to get the cube into one of their poc >>a well loved. All right, guys. Thanks very much for coming on the Cube. All right. Good >>to see you. See? All right. Thanks. Keep it right there, >>buddy. We'll be back with our next guest day. Volonte for Peter Burke alive from Madrid 17.
SUMMARY :
covering HP Discover Madrid 2017 Brought to you by Hewlett So you know, when you come on with Deloitte, we always sort of mentioned you guys. consumer and the way they want purchase something, give you an example, my son or Well, I got to say I love going Cabela's with my kid Gotta Mila being a coyote manager from the Hitch be Aruba over the past year or so, helping them dollar, I ot go to market like with your customers? If I go to an online retailer, you know, if I go open, say amazon dot com, Really experience. And you talk about the bells and I moved into a new house, We can deliver that to increase top line revenue, increase basket side, We're talking about creating spaces, the correspond to the experience that a customer and I, t and software and security to provide a total experience, a place that can bring in the online digital elements, experience in and of itself. And sadly, retailers of the past 40 years have always relied on big brand names to So tell us a little bit about where you think over the next few years of the future have to be able to provide that customized experience. I mean, the marketing managers are the store managers of the past hanging around the Nike booth or whatever you know financially, and you can purposely point them on the way he described it is, you gotta break the whole thing down. and our solution can help you do that as well. guys encounter a client that is, you know, declining same store sales the business value and calculate that and extrapolate that out if we apply that to your all your stores So you do like a test store model, right? come in and help you to build a whole solution. experience of brand loyalty, which will also affect both costs and So, for example, returns means two things costs, the Moorman industrial Internet of things and manufacturing offering around predicting maintenance, and we could go through so that one of impact you've had, maybe you'll be through a POC. a well loved. to see you. We'll be back with our next guest day.
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