>> Live from Orlando, Florida It's the Cube covering Enterprise Connect twenty nineteen brought to you by five nine. >> Hi. Welcome back to the Q. We are live at Enterprise Connect. Twenty nineteen. Can you hear the buzz behind Stew, Minutemen and me? It's party time. It's five o'Clock kicking things off, welcoming a couple of guests to our program this afternoon. We've got Blair Pleasant, president and principal analyst at Confusion and co founder of BC Strategies, and Michael Rose, the director brand and corporate communications from five nine. Welcome to the Q. Thank you. >> Good afternoon. >> Welcome to the party. >> I know. With the beer and the wine for us, >> we think it's momentarily momentary. So you have been coming to Enterprise Connect about the last ten years or so. A little bit of an overview about what you're doing at this year's easy. >> Sure, So I'm going to be doing for different sessions here. Esso. On Wednesday, I'm going to be giving a presentation. Well, one is going to be to the Channel partners who are selling, you see, telling them about why they should be selling Contact Center and all the wonders about contact center and customer experience. And I'Ll also be doing a session on unified communications end user adoption, and I'm gonna have a panel of and users who were going to tell about their talk about their adoption programs on Thursday. I'm doing a session on collaboration about team collaboration and how to migrate and things to do there. And then I'm participating in the last note where a bunch of analysts consultants, they're gonna basically wrap up the show and talk about, you know, key findings and key messages, and it's going to really good discussion. >> You have a very busy week ahead. I'm curious as to when I were chatting earlier today about the evolution of this event over the last twenty eight twenty nine years, but also paralleling the massive evolution of communications and collaborations, the rise of the empowered consumers who wants to be able to have a conversation on any channel at any time and have our issues resolved right away. Give us your perspective cause you have a very full week here about some of the turns that you you've seen in the last year that you're looking forward to helping customers understand. You talked about selling, you see, so contact centers of service. Yes. >> So when it comes to unified communications, as I mentioned one thing that I've been really focused on is user adoption because companies will buy technology and they'LL deploy technology. But they don't necessarily. That doesn't mean that uses air actually going to be using it. So that's one thing that they really have to focus on. And then when we turn to the contact center side, it's all about customer experience. And in fact, Michael and I have been doing a lot of work in this area. And so we've been hearing the term customer experience. You know, c X. But what's also important is employees or agent experience and a X, as we're calling it. So getting the agent involved also and making sure that they've got the tools that they need to help them do a really good job. >> Alright, so Michael, you have brand and you did a very nice job bringing us the five nine mugs. Yes, there's water in them, but this customer service index can you bring us inside what you're working on, what we're Blair's been involved and let's get into that. >> It's basically an annual study that we've been doing now for two years, and we plan to continue in the first part of it looks at what the consumers are saying about why they raid a customer experience the way they do want that, what's important to them and, more importantly, what turns them off. And as we found in when we did the analytics with Blair is a bad customer engagement. They're likely to leave you and not to business anymore. We were talking earlier about consumers now have voice and choice. You know, they they've got voice through social media to complain, and they will leave and find another brand to partner with. And so that's sort of a key finding around. What is it the people want? And it's basically a quick response. Know who I am and engage me the way I want to be engaged. >> But what was interesting is they want a quick response. But they're also willing to spend more time on the phone or whatever in an interaction talking to an agent if it means that they're going to get the response that they need and get the information that they need to get their problem solved. So speed is important when it comes to getting an agent on the phone or getting that agent, but then they're willing to take the time if it means I'm going to get my problems solved. Do >> you think that one of the things we chatted about with Ryan can? The CMO of five nine earlier today is is the fact that five nine has five billion recorded customer conversations and we were chatting, I think, also with Jonathan Rosenberg. It's an expectation, right? We call contact Center for whatever product or service or whatnot that we're having an issue with her were enquiring about. And you hear that? So there's an expectation that is going to be reported. How did cos actually glean insight from that data? Because I'm there, I'LL tell you, I never think when I'm on the phone call, I have a problem to resolve. And I don't think that they're recording my conversation to help me and all the customers that probably have the same problem. So I thought that was an interesting sort of way of of looking at it. But it's also interesting that that you found that people are willing to spend more time if the value to them is greater. >> Yep, absolutely. And we're finding that companies are using that data. You know, we hear about Big Data Analytics. So analytics is really the big thing, you know, looking at the the whole picture, getting that holistic view of what's working, what isn't working. And then turning that also into I talked before about the agent experience using this to improve what the agent is doing and how the agent is interacting with the customer. >> And that's that's probably a good build to the next part of the study, which is a business decision maker. And so we survey them to see other, any parallels and what they're thinking compared to the consumer on one of the probably most disappointing findings issue and we're doing a webinar on this next week is the lowest thing they write is employeessatisfaction. So they look ATT, you know, is that the right product we're selling? Do we have the right tools but actually looking after the agent, all the employees that ranks the least on their list of priorities, which is quite distressing and sad. But >> the good news is that they did great customer satisfaction very highly, So when it came when we were looking at what's really important to your business and to growing your revenues. Customer satisfaction was very important. So we're happy about that. >> Which it has to be directly tied to the agent experience like, for example, making sure that an agent has is empowered to make a decision. But they had to have the information. They have to have the content to be delivered through the right channels. So that's interesting finding that you are you expecting to hear on DH talk Claremore this week with companies to say, This is why Employeessatisfaction has got to move up the rights because it is directly tied to customer satisfaction. >> So I've been talking about that for a long time, and it's so important, and I think cos they're starting to get it. And we're also seeing more tools like a I. You know, that's really going to be used to help provide the information to the agents and help them do that. Better job. >> One of things. It's always interesting when you have these annual studies to see what is actually changing over time. You know, I've got background on telecommunications, you know, we talk about Omni Channel today. We talked about, you know, unified messaging twenty years ago, we talked about a today. We talked about intelligence and data decades ago. So what's changing? What? Staying the same. Any insight that you're getting, As as we've been moving with the survey Overtime >> voices still K as in, people want to make a phone call if they need help and believe it or not, that's across all age groups that even tops out number one for Millennials, which surprised you. And I know Blake. You did a little test group at home with that? >> Yeah, I had my twenty somethings. They had some friends over. And I asked him, You know, when you have a problem and you need to call contact customer service, what do you do? It? And the first thing they do is try to do self service, you know, try to figure it out on their own. You know, Google it go to YouTube or whatever, but then, if they can't find the problem, they will pick up the phone and called a contacts and, you know, call customer service and you would think that twentysomethings wouldn't do that. But they know that if it's something important and they need to get that information right away or solve that problem right away. They pick up the phone, and they also do chat and email. But the study found that chat actually went down this year, which were kind of surprised about so the use of email went up. But these of chat went down >> Any thoughts as to why that might be going down? >> I think it's because companies haven't been providing that good experience. So even though they're offering chat, it's it's not optimized. So sometimes you know when you're doing shots, you know you're on a website. You doing chat, you can tell when the agent is talking to like ten other people at the same time. So it's it's really frustrating. So I think companies have the technology, but they're not doing it the right way. >> I mean, I know I've had Sometimes you get a chat and I'm like, I'm not talking to a person. It's a chat, Bott. Oh, is this some outsourced chat that maybe doesn't have the skill level that I need as opposed to? If I pick up the phone, I know most of the time that agent I'm going to get either can answer my question or can escalate to the person that, >> interestingly to the one that's right down near the bottom is social media and it hasn't moved for two years. So we're not saying now that could be a chicken and the egg. Is it because companies are not offering it? So therefore, I don't know. I can use it or don't people want to use it on? We had a theory cause. Social Media's had a bit of a rocky ride in the last year with data and privacy and everything else. So maybe consumers just don't trust it yet. And there are other channels, like email as you said, that we've seen increasing. >> But if customers are unhappy about something, they're going to go on. Social media >> is the first thing I do. When you were saying that it was surprising it was low, because if I at a recent experience with an S B and wasn't getting five minutes with a robot on the phone, couldn't get all I wanted was a tech to come out to my house to fix something, Then I had to have somebody call me back and verify. Have you do the exact same thing I've been through this, so I went to Twitter to escalate that. So that's how I think about that. I appreciate that, they responded, But it's I guess it's a couple of a number of interesting things that you guys have brought up today that surprised you. The X factor being lower millennials actually wanting to talk to human. That's good. But also this the fact that people aren't using social as much as maybe you would've thought, or they may be. They don't release. I can't. Or maybe it's to customers not have appropriate affected social listening programs to respond to the volume. >> So that's the chicken and egg thing Michael was talking about. A lot of companies don't offer social as a channel because they think that customers don't want to use it. The customers aren't using it because they don't realize that companies are offering it. >> So, Claire, while we have you, you've got a good perspective on this space. What's differentiating the leaders in the space from some of the laggards in this space? >> Oh, that's a good question. I think a lot of it has to do with again the Focus on the customer experience, you know? So if you're talking about the vendors, the vendors that are succeeding are the ones that really do. Look at the customer, not just the technology. So so many companies could do technology. The technology is the easy part, its doing it right. It's really making that difference and making things simple, making things unified, making it not complex for customers. Because right now things are just so complex. You have to go no to so many different places. Teo, to make things work. So the more you can make things seamless and simple. I think that's what's really separating. The winners from the losers >> will make Michael Maybe you can elaborate on, you know, delivering a integrated connected on the channel experience. But I think there's still some of maturation curve that it's on, whereby I might have an expectation as a consumer than I'm goingto go through chat or email or another channel. And then if I go through Twitter or social, I'm hoping that this conversation is connected. Where can five nine help customers across industries to really integrate and deliver Omni Channel? >> I think the first thing is the cloud because moving to the cloud enables you to move quickly is a business. And as we were saying today, the software updates all the time and it's easy. It's like your phone, you just downloading away you go. So it's It's the cloud first to get to the data, and we talked about that before, too, and growing. Our CEO calls it the dark data because no one's using it. And you need to mind that data to get the inside, because then the system will start directing the consumer based on what the intelligence is telling them, irrespective of which channel they come through on. Do you really want an experience where I've done tweeting away with a company? And they said, Well, privately email you now because we want to take it off line and then they'LL say, Well, no, now we need to call, but it's it's fluid. All the data and all the information is passed through that communication, So it's seamless for me, the consumer, and it's more rewarding for the agent because they can actually get to the core issue for the customer and resolve it. >> That's a customer there. Maybe Blair, This is a question for you. How does a customer take what's probably traditional silos of customer experiences and culturally evolved as a business to be able to deliver what Michael was talking about? I mentioned that those Silas and that kind of cultural disparity might be kind of a challenge for an organisation to pivot as quickly as they need to when customer lifetime value was on the line. >> Yeah, and it's definitely been a challenge for a lot of companies, but they know that they have to get there. So I think even though some of them might be resistant, they realised that to get the results that they need, they really do have to do that. But it's a cultural change, and you asked before about what's separating some of the winners from losers. I think that's a big part of it is being able to make that change >> player, you know, as I was getting ready for the show, there's general belief that customers are embracing of the cloud. It's no longer we're no longer in the evangelization phases. I've heard five nine, but we're in adoption. I'm curious player. When it comes to a I, though our users ready. Everybody we talk about these technologies are going to be infused with aot. There's some, you know, fear. Sometimes out there is like the robots, or they're going to take my personal data or anything like that. What do you see out there and what should we be aware of and where do we need to go? As an industry, I want to come stay. I So >> as far as consumers, they do need to be worried. You know, they're definitely issues about privacy, and you know what's going to happen with the information. But I think user shouldn't really know that there's a I involved on, and that's also debate we have, like, if you're interacting with the pot, you know, if you're doing a chat, do you know if it's a body or an agent? So some companies, you know, make it clear, you know? Hi. This is, you know, Joe the Bob, But other companies don't. So then you have to say I and I've had these experiences are youa, but no, I am a real person. Okay, prove to me your real person. So it's so it's really interesting. So some companies feel that customers are more open if they're talking to a bomb. And in certain industries, like if it's healthcare or finance, people are going to be more open if it's about because they don't want to share their personal information with a live person. But if it's a computer is like okay, I can share the information. So it were very much in early days, so we don't really I have the experience to drawn yet. So let's talk about this again next year. >> Well, Blair, Michael, thank you so much for joining student. Be on the Cube this afternoon and sharing spending some time since you have such a busy week where we appreciate your insights on the event on enterprise, collaboration and communication. And we appreciate your time. Thank you for soon. Minutemen. I'm Lisa Martin. You're watching the Cube

from the silicon angle media office in Boston Massachusetts it's the queue now here's your host David on tape hello everyone and welcome to this special cube conversation you know Hewlett Packard Enterprise has gone through one of the most significant transformations in the history of the tech business once a much larger in far-flung conglomerate HP as you know split in two and now HPE is much more focused and has a completely different posture with respect to technology partners so today we're gonna focus in on the big drivers of innovation in the technology business data AI and cloud and get HPE spointer222 digging to two areas of growth hyper-converged infrastructure and intelligence storage I also want to share some ETR data using simply and nimble as proxies for these markets finally we want to peek into some of the spending data in HPE zico system to see how a more partner friendly HPE is faring and with me today is Patrick Osbourne Patrick is the vice president and GM of big data analytics and scale-out data platforms at Hewlett Packard Enterprise and a friend of the cube Patrick always a pleasure thanks for coming in thanks so much for having him so let me set it up here and I want to share some spending data with our audience Alex if you bring up the the first slide I want to show is this shows the the latest spending data just released from ETR on the various segments and you and it's a double y-axis and you can see in the left hand side is the average spend represented by the size of the charts on the right hand side is the growth rate represented by the dots and I've highlighted in green some of the key areas that we're going to talk about analytics bi big data you can see 12% still pretty big market even ten years into the big data theme cloud computing you know growing 15 16 % ml AI 17% you can see the container space is growing it between 15 and and 20 percent so Patrick let's start with what's in your title the big data you know the analytics piece you know what are you seeing there what's HP story yes so that's been a area growth for us within HPE not only from an infrastructure but also a services play we've got a number of you know big partners in the traditional you know big data space we made a number of you know strategic acquisitions over the last two years in this area specifically around blue data nap are so these areas that customers are in you know continue to invest in in the macro area are very important and well I think one of the things you're seeing here from a growth perspective is that they're also bringing in some very adjacent markets with AI and ml so it's part of an entire workflow so you start off with bi analytics big data and we have a number of solutions around that area and then starting to add in things like AI AM LDL into that analytics work workflow so it's been really good for us you're really kind of adding into your portfolio they're like say the map bar acquisition they they kind of were one of the the big three that started that whole big data movement and then now you have this organizations with these troves of data and they're trying to figure out okay what do we do with it and that's really where machine intelligence or AI comes in isn't it absolutely and not only you know we're we providing a number of solutions for customers in this area but we're using it ourselves to write to you know enhance our customer experience enhance our automation support automation I definitely give a you know much better customer experience with our storage and data platforms so wait you send your practitioners of AI to make your customers lives better by M you're saying by embedding that into storage platform you know if you take a look at a number of our marquee services that we have whether it's things like info site Green Lake even a rubra central you know think about some of the things that we do at the edge all that is being powered by AI right at the end of the day so we're using those techniques to improve the product and solution experiences for you know a number of our products everything from it started with nimble we added 3par now we've got simplicity in the info site and as we start to bring together some of the workloads at the edge right with Aruba and things we're doing there it's you know the customers are obviously voting with their dollars all right let's talk about cloud generally but specifically I want to get into hybrid containers McLeod has permanently changed you know our industry everybody wants to bring that cloud model on Prem it's clearly a hybrid world you could see containers really growing Stu Minutemen has a premise that look containers and kubernetes that we treat them as a separate thing but it's really being embedded into all parts of the portfolio so what's your point of view on on containers hybrid bring us up to speed on what HPE is doing there yeah so that's definitely fueling a lot of our growth not only in what you think about the traditional storage segments but as well as HCI right so you know when we talk later about some of the growth we're seeing nimble and simplicity we've got a number of solutions that sit you know directly within this container container orchestration container management we've got you know things that we develop on our own we made a huge announcement at kuba con right around the HPE container platform so for customers that want to run these analytics AI ml very data oriented applications that run in containers we have a great platform for that an HP container platform we could run that on bare metal we can run that in simplicity for example so we're seeing a lot of fuel for that not only just servicing some of the storage and data needs for containers right but also being able to provide an info site like experience for this new generation of application development and were close how do you see the edge fitting into this you know we interviewed Antonio recently with John Chambers at the pensando announcement and and that was kind of interesting you see do you see that as a as a pendulum swing or sort of an expansion of the cloud if you will yeah I definitely see it as an expansion when we talk at HPE we want to be an edge to quarter cloud you know company and helping customers navigate the digital transformation in hybrid IT right and then we're gonna offer that to customers as a service through Green Lake we've been pretty public about that and so one of the big opportunities we see is around these distributed data centers some people define a distributed edge whether that's customers who are doing autonomous vehicles autonomous drilling we see a number of you know big-box retailers you know for example that don't necessarily have a traditional data center but it's not so far out into the edge that it's like an autonomous vehicle but they have you know the similar concerns in terms of a distributed nature how do you automate that how do you manage that at scale and so these assets that we bring together with things like Aruba and our edge line servers and managing that data experience is something that we're gonna capitalize on in FY 24-hour constant retail is interesting right every Nevitt has a Amazon war room but many sectors as a retailer really on fire right now people trying to take advantage of their their store presence yep when IOT is a big factor there so you're seeing a lot of that action is HP yeah absolutely and those customer those customers of ours are fueling their growth through digital transformation so they're using containers and kubernetes and this new style of application development and they want to be able to distribute those data centers and that data but they also have to make it simple right so you see the march towards what we you know are platforms like simplicity for HCI some of the offerings we have around you know independently scalable three-tiered architectures but you get the best of HCI with that we call it nimble d HCI all right so we have a number offerings for customers who you know really want that scale and in serviceability alright let's let's let's pivot a little bit and talk about some of that infrastructure Alice you bring up the next slide what I want to talk to here is this is the ETR data every time they do one of these surveys they ask essentially you're spending more are you spending less and they subtract the less from the more and that's what they call net score net score remember is a measure of spending momentum now what we've done here is you can see the filtered end of 313 HPE customers out of the thousand plus survey respondents of this quarter and you can see a good mix of enterprise size and industry and it's a lot of North America but but good regional - and we're showing the net scores breakdown for for two of your platforms simplicity which is the HCI and nimble storage and you can see the bright green is people adding to the platform the sort of darker green is spending more so let's start with Pleasant levity HCI still a really hot in growing space you've got a nets or of 38 percent almost which is very very strong in ETR parlance you know it's not off the charts like some new tech but it's really really solid so what's the update on simplicity and HCI yeah so I mean this is obviously from from a market perspective HCI is a rapidly growing space still right there's a lot of room for growth both Brown field as well as green field opportunities in the core data center at the edge even in hybrid cloud format so for us it's all about new logo acquisition for simplicity we've shown a phenomenal growth rate for that technology stack developed here in Massachusetts are a great local company great story and so for us this HCI the the markets that we're playing in we take a look at storage and data management in general sub segments of the market are growing rapidly right take a look at HCI you take a look at SDS you take a look at all flash and so we have some great offerings in that space that are completely differentiated from a customer experience and a technology experience and they work together so for example simplicity we just announced earlier in the and later in the calendar year in 2019 that we would be offering simple ibbity with an info site right so you have the same experience that you get from nimble right you get with our HCI products so we're driving those experiences together obviously you know all flash is a huge growing category within storage nimble it's got some great growth they're not only just for new logo adoptions but expansion capability so we're you know - two great products that were seeing some success in yeah so let's talk about nimble the Alex could show that data again so neighborhoods got a net score of 46 percent which again a lot of momentum I mean smaller you know sample size but still really you know strong and you can see it's a more mature market so you see maybe fewer adoptions but almost 50 percent of your customers are saying they're gonna spend more this this quarter relative to last period so that's showing momentum you mentioned info site which is really the technology that sort of nimble brought to your company which are pushing out through the portfolio so your thoughts on that yes so I mean at the end of the day customers are you know the products themselves are great and they provide the customers a really good experience we're driving all that together at a meta layer right so we talked about the products and solutions for us the strategies around the intelligent data platform right so we have a number of platforms that can help dress a number of different workloads whether it's HCI disaggregated HCI whether it's all flash whether it's you know container workloads and container orchestration but we want to provide a very good experience that you can consume as a service and we're driving that together across product lines with data services that work both on Prem and in the cloud right so we have HPE cloud volumes and a number of our Cloud Data Services that tie these platforms together so for us it's all about a strategy around this intelligent data platform not just individual products the individual products are great but from a strategy perspective that is definitely resounding with customers well you talked about digital transformation earlier Patrick I think that's important it's it customers want solutions they don't want to certainly don't want to provision loans they don't want to think about managing boxes so they really want that infrastructure to be invisible they want to push their folks up the stack yep to just do more strategic things and it's it's really your Rd that they're looking toward to automate a lot of those mundane tasks isn't it yeah they look towards RI Rd as well as they look to HPE as a portfolio company to bring together a solution stack that's gonna work for them and sometimes that solution stack is comprised of some of our partners as well so we pick some of the best partners in the industry to go work with in some of these hottest you know portions of the market that are growing significantly so in the areas of HCI or in the areas of software-defined storage you know we've got a number of folks that we that we partner with hybrid cloud and we are able to bring you know a full complete solution to a customer and we D risk that for our customers at the end of the day right we've got some great partnerships with some great companies and that's really you know suited HP very well well great segue let's talk about some of those partnerships so you when when hewlett-packard split into two companies it opened up a ton of opportunities for partnerships for you guys you got a great distribution channel and what I'm showing here Alex on this next slide if you bring this up is three partners that are gaining a lot of momentum based on the spending ETR spending data in the surveys Kohi City theme and Nutanix now remember ETR uses this concept of of net score which we talked about and I'm gonna talk about that a little bit but also market share market share is a measure of pervasiveness in other words how how much there be mentioned inside of the service so I'm showing here market shares but also net scores and you can see Kohi city is just starting in the survey so starting to you know get more noticed and then you can see Veeam and Nutanix you know with the consistent long steady market share growth this is again within the hewlett-packard enterprise account based at 313 respondents so you can see there all three are doing very well and and look at the net scores for cohesive off-the-charts 74% growing very very rapidly again smaller sample size Nutanix much larger sample size you know 60% net score so very very strong in Veen you know surprisingly for a pretty mature company with a 45% net score again very very strong so talk about the the partnerships the new HPE partner posture and then we can maybe get into what you're seeing in the market with some of these partners yes so from for HPE you know we listen to our customers in terms of you know what their their challenges are part of my business is managing around scale out data platforms and so the data is always growing and so we're seeing you know this big trend of scale out architectures powered by you know ubiquitous very high bandwidth low latency networking in the data center and outside the data center and so we're able to you know put some of these software stacks on our infrastructure that works very well with our our you know our own IP solutions and you know solve a number of critical problems for customers around secondary storage right it's growing you want to make use of it to backup and disaster recovery it's always a problem it's definitely an opportunity around hybrid cloud HCI in SDS right it has many forms and flavors right and we want to be able to provide those solutions to our customers especially if you're doing hybrid or private cloud so a lot of these partners you know we want to you know provide a full stack solution to our customers and you know these have partners help us do that how are you I mean the the you've got HCI wouldna Tanic you've got HCI with simplicity you've got sort of certainly beam and cohesively compete up how do you guys position and the a let's start with the HCI piece huh you just let customers sort of direct you and guide you or you guide them how does that all work yeah I mean we always listen to the customer first but at the end of the day we you know we lead with our own IP and we have some you know we have two great solutions around the HCI framework where you going for a very simple very scalable solution in simplicity that has some very powerful data services great economics for the HCI market and you know you see the growth and sympathy for that then we have a number of other solutions specifically around nimble called DHC I write what we're finding is that customers as a classic customers that want to they want the simplicity of management that you'd get from from HCI but they also want to be able to independently scale your compute your networking and your storage and we're able to provide that with something like nimble ProLiant our networking stack and then plug that all into info sites and it works together right so at the end of the day if I having a workload that's more appropriate to work it's on simply as a platform or it's more appropriate for DHC i we can recognize that for our customers through predictive analytics we can automate the placement of that workload and then we provide customers a set of data services so those platforms work together so it really works out well okay and then in terms of well take the situation with Nutanix so that's a customer saying hey we want you guys to work together and you say great yeah problem absolutely we'll do that so that you know we have a set of recipes and and reference architectures and offerings around those that are available direct was well through the channel and is it fair to say that the Dean viii mispronounced be even though they tried a big push in the enterprise you're a part of that that push in and and of course you know cookie city's the hot new kid in the block again is it just sort of market pull that drives that or do you have yeah I mean we definitely theme has been recognized as a great solution for customers doing you know start off you know certainly focused directly on on virtualization and then you know their their strategy is moved and you know to a very adjacent market which is how do i you know tackle that virtualization and VMS and protecting my data but in a hybrid cloud in formats so they're definitely all in on cloud I think cohesive has a very scalable file system back in and it started off with backup and recovery and now is moving into some very adjacent use cases around file secondary storage what can I do around see ICD pipelines so it's kind of approaching it from different different angles you guys really kind of changing your marketing and your product marketing really focusing more on solutions yes outcomes customer outcomes bringing that cloud model to wherever your data lives whether it's on prem at the edge talking about bringing containers throughout the portfolio bring it home what are you sort of hoping for 2020 looks like what are some of those outcomes and what should we expect from from your perspective from HP yeah so I mean we at HPE are very focused on this edge to court a cloud concept hybrid IT so all of our products have you know some sort of endemic whether it's data services or a management paradigm around hybrid cloud and so we you know we we really are you'll see that within our products product releases solution releases the people that we partner with and I think the big thing that we you know pivoted it into at the end of 2019 you'll see this accelerate significantly in 2020 is around this consumption model right the cloud consumption model with Greenlake so we talked a little bit of you know certainly Green Lake from a financial perspective but awful Green Lake as a management paradigm so Green Lake central was announced at the end of the year and just the ability to be able to you know like you do in the top of cloud right but top of private cloud or top of hybrid cloud from HPE and get a really good visibility financially into you into what you're doing it's a mindset too from the top I mean Antonio is saying everything is a service right absolutely yeah so all right Patrick hey thanks for coming in and give us the update on on HPE good luck this year and great to see it yeah thank you very much you're welcome and thank you for watching everybody this is Dave a lot day for the cube we'll see you next time thanks for watching

>> Live from Orlando, Florida. It's theCUBE, covering Enterprise Connect 2019. Brought to you by Five9. >> Hello from Orlando, Florida. Lisa Martin with Stu Miniman. theCUBE has been here at Enterprise Connect 2019 in the booth of our gracious host, Five9, for the last three days. Stu, this event is our first time being live here on theCUBE. Your first time here, mine as well individually. Massive event that has transformed a lot. 6,500 attendees, their biggest ever. Well, 140 vendors in this expo hall. What an incredible week. We've had the opportunity to talk to so many people. Can't even keep track. But this enterprise communication and collaboration space is really, really, really hot. >> Yeah, Lisa. I'd definitely learned a lot and had a good time. And, really, it's always a pleasure to be hosting with you. I feel I am better educated as a consumer, now after having gone through this, and I wish as a consumer, I actually knew before I was making some choices on some of the brands, whether or not they had some of the technologies behind us that we heard about here, because we've all had some challenging interactions with whether it be chats, websites, emails, or trying to call in and hopefully getting to that live person. I've looked into my career, and the ebb and flow of changes that had happened from the call center to the contact center. I've also had some empathy. I had started out on the call center; my first job out of college. But you know there should be no excuse for a company not to be able to have a good customer experience, if they're leveraging the technologies and the solutions that are available today, especially a lot of those powered by the cloud. >> Absolutely, it's table stakes, I agree with you. I definitely feel reset as a consumer. My perspectives, and even understanding the fact that like Five9 here, they've been talking about the intelligent contact center. They have five billion recorded customer conversations a year. And I've never thought, when I'm calling in, when you hear this is going to be recorded, we just expect that. But how a company, like Five9, can enable them to actually, start to leverage the power of AI and cloud to harness that dark data so that, to your point, the customer experience is ideal. Because, as consumers, we have so much choice. >> Yeah, so we've been talking for a number of years on theCUBE about the companies need to be data-driven. And still, it's early days here in the enterprise communication space. There is a proliferation of everything from the end devices. We just interviewed the CEO of Poly, long history: Plantronics, Polycom. I've got long history, understand a lot of those technologies that they have. Huddle rooms and white boards and tetanization. They're all of these devices. And then the software and the cloud and all those pieces. We use CRM in our business and boy, there's things that I would love to be able to tap in, even for a small company. And I've talked to lots of companies as to how they can use these technologies. And it was really intriguing. And we had a great user discussion today with Carfax. Really enjoyed that. Always good to hear as to what they're doing and the blurring of the lines sometimes between unified computing and the contact center, and where putting that information into their agents' hands, or into the salespeople hands, or we've talked to people on the marketing side, and the marketing cloud to put it into the marketing hands. So, data, we know, is a huge differentiator. And I know an area that you were loving is CX was at the center of everything, and the role of the agent and the customer is something we need to think about. What were your takeaways about that, Lisa? >> About that, great question. Initially, everything that I was reading about this event and the industry was all about everyone is talking about customer experience, CX. And when we had Blair Pleasant on with Michael Rose on Monday, I think it was the customer satisfaction or service index that they did, showed that companies are actually rating employees' satisfaction lower than customers' satisfaction. And I thought, "but if I'm an employee and I'm an agent, "and I'm on the phone or I'm in a chat or whatever channel "dealing with what might be a disgruntled customer, "who probably has a really easy alternative to turn to. "My experience needs to be good. "I need to have the information, "the right content at the right time, "and be empowered to make a decision." So some of the conversations that we had started to show that really, AX, agent experience, and CX are blended together. They have to be because to me, they're mutually exclusive and if that agent doesn't have the information that they need, has to ask a consumer the same question that you've just repeated, the likelihood that consumer will churn is very high. So the agent is one of those ones, I think, at the front lines, that I honestly never really thought about it from that perspective how critical they are to the business. >> Yeah, and when you dig in to say, okay, what is the life of an agent, first of all, if I can give them a simpler interface. And that's something in both the unified communication and the contact center if I can do that and then, where is there automation or the AI to help me do my job to be able to critique myself and go in there, rather than having a manager yelling at you? There's some powerful stories we've heard about that, as to, I can better myself and I'll probably be more engaged and that should translate also into a better customer experience. So we're not getting, love the example someone gave, It's like, "do you ever called there and they're like "my system's a little slow today" or "I can't get into this." It's like, we don't want, as consumers, we never want to hear that. And that's not a good experience. What we heard is there really should be no excuse in today's day and age, that shouldn't be the issue. >> Absolutely. So we've talked about the agent experience, customer experience Some of the other users that we've talked about on the program are, for example, Microsoft team has this really cool demo. We had Jace Morano on the show on Monday. showing this incredible power of internal teams collaboration and communication and how connected companies can be across geographies, cultures, generations. So that internal collaboration is another big piece of the show that the power of cloud, the power of AI, that companies are starting to harness is transformative for a business on every level. >> Yeah, it's really. I've been to when I go to a Microsoft show or a Google show or an Amazon show, oh, look at the real time, things that are happening, global translation, being able to see sentiment by AI of like what the faces. Certain shows you go to you can go up and they're like, happy, sad, confused, things like that. So, Microsoft gave a great demo. Let's see how long it takes for that really to diffuse out and be usable for businesses. We know the power of video. It's core at the center of what we do with CUBE. We understand when it can transcribe and translate that's really powerful things that we're keeping an eye on. And the cloud is definitely driving a lot of innovation. And that's something that we've heard over and over again, is that this show, now in it's 29th year, and it's like, third life with a third different name. Cloud has really infused a lot of energy, many new companies here, and, therefore, there's a nice robust ecosystem with some blurring of the lines and some competition, but for the most part, if it's in the cloud, a lot of times, those integrations are happening behind the scenes and I, as a customer, don't need to put it together where it's baling wire and duct tape and zip ties which kind of felt like we had to do things in the old day. And it was very fragile. It should be much better. We heard lots of them as to how Seram, especially like sales force integrates and from Microsoft and many the other players here, they're saying there's is good commitment. There's good working agreement with many of the companies. And absolutely from our hosts here at Five9. We heard from a lot of their partners, from the device and the software players, as to how they all tie together seamlessly to make sure that their users has a good experience which leads to agent and customer experience ultimately. >> Absolutely, the partnership and the collaboration in this space was very palpable and it was great to have so much access to Five9's partners. I think a couple of tag lines I'll takeaway from this, as a marketer, is that Zoom, we had Harry Moseley, the CIO of Zoom on this morning. And his fireside chat this morning and with us, earlier today he said, "video's the new voice." We've also heard, "voice is sexy again." We've also heard, "it's humans being augmented by machines. "It's relationship based." So a lot of really interesting themes that all come together that I hope sort of dispel some of the concerns that either individuals, or some business users, have about AI taking over. It's this combination of differently tools, but the human component, the empathy, is still absolutely critical. >> Yeah, and we'll see AI will first be something's that's internal to these companies. So Five9's announced this week, it's the Five9, I believe, Genius is the tool in there. It helping make their agents help them ramp up much faster, get the data they need, and it's AI that's going to actually help them infuse them so that they can react faster and they're super agents, give them superpowers. We heard from a number of people that external facing AI, we're still a little bit early. And we'll try to see where some of the early leading use cases will be for that in the future. >> Well, Stu, it's been a great three days co-hosting theCUBE with you at Enterprise Connect '19. I cannot believe how much we've learned and how we both sort of changed our perspective as consumers. Let's see how long that lasts. >> Yeah, absolutely, Lisa. So many of the things that we've been hearing for years about cloud and AI definitely translate here and we love really documenting some of those industry transformations and pleasure as always to work with you on theCUBE. >> Likewise. For Stu Miniman, I'm Lisa Martin. You're watching theCUBE. (upbeat music)

>> Live from Orlando, Florida It's the Cube covering Enterprise Connect. Twenty nineteen. Brought to you by five nine. >> Yeah, good afternoon. Welcome to Orlando, Florida The Cube is here at Enterprise Connect. Twenty ninety nine. Lisa Martin with my co host to Minuteman Stew and I have been Here's starting on Day two stew. Good afternoon, >> Lisa. Great to see Yeah. Day two of three. Enterprise Connect. >> It's not that sunny >> here in the Sunshine State, but the nice thing about the Gaylord is it's a nice controlled environment. Walk by. I saw the alligator for bid. They've got nice planning. They've got I love in the atrium there. There's great branding of thie E c. Nineteen. Everybody's taken photos of it. I saw some drone footage in the keynote this morning showing some of the setting here. So >> it's a It's a nice >> event way said sixty five hundred intended, which is nice. It's not one of these, you know, twenty thirty thousand. You're just buried by people toe big Expo Hall. But, you know, you could really get to talk to some people and enjoy the size of the show. >> Yeah, I agree. The size is great. It does no pun intended. Facilitate that collaboration and communication. You mentioned a number of attendees about one hundred forty vendors, and you can hear the noise behind soon. MIAs were in the ex ball in the booth of five nine and lots of conversations going on. This is an event that I find very interesting state because we talk about the contact center were all consumers every day. And we talked about this with a lot of our guests yesterday that the customer experience is absolutely table stakes for an organization, that it's essential to deliver an Omni Channel customer experience meeting with the consumer wherever they want to be and also facilitating a connected conversation so that if a shot is initiated and then the consumer goes to social or makes a phone call, that problem resolution is actually moving forward before we get into. Today's key knows a couple of really interesting things that you and I learned yesterday with some of the guests that we had on when we were talking with Blair Pleasant. One of the things that she and five nine uncovered with some research is that an employee's satisfaction was lower on the ratings for a lot of corporate decision makers, which was surprising from a collab and communications perspective that if employees, especially those agents on the front line, are having some challenges, it's going to be directly relating Tio customer Lifetime Value. >> Yeah, it was a little bit surprising, you know, if you think about just in general, you know, often the admin is not the key focus there. It's I need to get business outcomes. I need to get R. A Y. You know what I care about is, you know, how is my customer doing? But at the end of the day, you talk about the contact centers. If I don't have an agent that's engaged, really, how is that conversation going to go with the customer? So they need to think about that, You know? How will the technology help them do their job? Better help them game mastery faster? There were some things that I saw really parallel toe conversation we're having about cloud in general, which is, you know, there's lots of technologies out there, but it's often it's not the technology issue it is, you know, the organization and the people issue in the keynote this morning there was a big customer panel and that was definitely something we heard. I love one of the customers actually said We're going to make all these changes And they had the Don't panic towels, which, of course, harkens back to The Hitchhiker's Guide to the Galaxy S O. You know, we know things are going to change. There might be some things you need to work through. But don't worry, we're there to help on. We will get through this and at the end, it should be better. >> No, I like that. You brought that up. I love that Tabal. Don't panic because, you know, we were talking yesterday a lot about the customer experience, the expectations of this rising, empowered consumer also the agent experience. But then, of course, there's the internal collaboration that's essential to all of this. And as I think, the gentleman that you're referring to was from Continental G talking about Hey, we don't have all the answers. But adoption of these tools internally is critical, but it's also a cultural sort of stepwise process. I thought that was very cool, that they actually were very transparent with their people. We identify this is not going to be smooth sailing, but it's an essential part of our business growth. >> Yeah, I tell you, it was really interesting. Listen, the panel there was one of the companies up there. They're pretty large and they said, Look, we're going to standardize on a single tool and everybody's going to get on board. And I actually bristled a little bit when I heard that because, you know, the engineering group versus the marketing group versus you know, the Contact Centre. There's certain things that they need to be able to collaborate. But thing like, you know, one tool to rule them all. You know, it sounds a little bit tough out there. Yes, there needs to be some standardization, but, you know, we see that in the cloud world. You know, it turns out customers are using multiple clouds out there because there should be a main one that we focus on. But if I need a best of breed piece for here, or if there's ah, feature functionality, they can't get elsewhere. I need tohave that, and we see that at this show there's just such a diverse ecosystem meant, and there's one hundred forty there's people that make device. There's all these software pieces, there's some big hubs. And then there are all the ancillary things that help plug and enhance and do this because there is some great innovation going on here. Some cool software, things that we're hoping toe, you know, take everything from, you know, White Board and voice two speech and globalization to the next phase. >> Yeah, that was very interesting. Especially the Microsoft teams demo. That Lori writing team this morning, The panel Now that you talked about, there were seven, uh, customers from a variety of industries. Kurtz was their continental. We mentioned, I think, paychecks. I'm curious to get your thoughts on when they were talking about their plans to migrate to cloud, all in some percentage, considering the numbers that we heard yesterday stew in terms of the cloud penetration for the contact center market, what were your thoughts? They're about those things. All in Depends on what makes sense. >> Yeah, It reminds me of what we were talking about in the public loud discussion two years ago. Way No cloud is growing at a very fast pace. Look at our friend here at five. Nine they were growing at a much faster pace, then the contact center. Overall, I believe they're growing somewhere twenty five percent as opposed The industry as a whole is growing at about nine percent. So we understand that cloud is growing faster than the market overall. And it was one of moderated. The panel said that today is about a third, a third, a third on premises hybrid in public and where that kind of steady state will be. I think it's still too early to tell in this industry, just as it is in cloud overall. But absolutely I burst a little bit when it's like, Well, you will never do this one this way. Well, you know, never is not something that we like to say in it because you never know when when that will be possible. You know, my background I worked on virtual ization, started out in test Devon. It reached a point where really there was no technical reasons that it couldn't do it when he rolled. The really large companies will never use cloud for it. Really. Who is better it scaling and updating and making sure you can manage an environment then those hyper scale players. You know, Microsoft got a big present here. You don't ask him. Like her soft customer. Uh oh. You're running off his three sixty five. You're living on Azure. What version of that are you running? And do you have the latest security patch as opposed to? If I have a Windows desktop and I'm not doing up a weight, have I done my patron? If I Donald this stuff and you amplify that by thousands of you know of agents and Contact Center, we know that Cloud has certain speed, agility and being up to get new features and updates in there that I just can't do nearly as well if it is something that I am installing and having to maintain myself or with a service organization, >> right? And so we talked yesterday with the number of guests about what are some of the imperatives to move to cloud in the end, the sum of the non obvious ones cost obviously, is one that we talk about all the time rights to it. Any show that we're at, but also the opportunity for businesses to leverage the burgeoning power of a I. Of course, every show we go Teo Isa Buzzword Machine learning. And of course, the cloud provides the opportunity for there to be more data to train the machines to be better at context and her overall. And, of course, internal communications. >> Right. And something that I like to hear at this show is start talking about a PC compatibility. You talk about the partnerships that are going on, It is not one software stack we're talking about platforms. We're talking about how integrations can happen so that if somebody has the cool new thing that does, you know, a real time engagement better than what I had before. Well, I could probably plug that in, and it's going to work on my platform. You know, everybody here talks about Well, whether you're, you know, a web, acts of Microsoft teams a zoom shop O r. You know any of those various environment, other? Everybody's working across those environments. We've had some standardisation here s O so that whichever one I've chosen, I'm not locked into one environment. And you know, I can help modernized the pieces as a need and take advantage of those new innovations when they come >> Absolutely all right. So, stew, you're a man on the street last night. Tell us some of the interesting things that you heard in some of the folks that you met Way. >> It's interesting. We think we talked about it in our open yesterday. There are a number of companies that have been around for a while And what are they doing today? What is their focus? And couple of companies have done rebranding. So the big party there was a line and I managed to get myself in. Is Polly So Polly has rebranded? Of course it was Polycom and Plantronics coming together. How many times we hear it on the keynote stage that they mentioned that everywhere you go, they're branding is there, So look kudos to their branding and messaging team. We're going to have their CEO on the programme tomorrow, but, you know, you know, the CEO talked about, you know, their new logo. It's like the meaning behind it. Of course, Polly means many, but there's three piece, and if you look at it, it looks like the iconic conference phone. So, you know the room was in there. Everybody is enjoying the appetizers and the open bar. But, you know, there was people, people, no polycom. I'm back in our conference room. We've got one of those speaker phones in there in the nineties. I usedto, you know, sell their conference phones in their video conferencing When I worked for was now a via but was lucid at the time. So there's a lot of intersections. Thie. Other thing I've really found is it feels like everybody here, you know, at one point in their career either work for Cisco or worked for, you know, the Lucent family. You know, of course, T back in the day had the whole telecom space, but it is like many other shows. We go to a rather interconnected community here on DH. You know, we'd guess on It's like, Oh, yeah, Cisco, Skype. And now at five nines. Yeah, it is friendly. You don't see some of the, you know, some of the places we go There's bitter rivalries between, you know, key competitors, and yeah, while you know, all the contact centers don't love, you know that they're there. Brothers and sisters, a two competitors there. Chances are they've worked with half the people there on, you know, Sometimes the future will be working with again. So it's it's a it's a good atmosphere. The people I've talked to really enjoy coming to the show, a Zoe said at the top. >> And this show has evolved over the last night. We were talking about yesterday twenty eight, twenty nine years, starting out as being called PBX and then re branding to Voice Con and then in about twenty eleven to Enterprise Connect. And it was interesting that because the word innovation comes up all the time, as does evolution of communications and collaborations. But when the king it was his kicked off this morning they talked about This is the biggest ever enterprise connect that they've had. So you can feel and you can hear it behind us the momentum, the excitement he talked about. There's a lot of cover artery here. There's a lot of two degrees of separation and tech, but the opportunities for every business, whether yours selling a small particles service on the Amazon marketplace or you're a big a global enterprise, the opportunity to connect and deliver a superior a competitive advantage to your customer experience. This table stakes these days if you don't have that opportunity. Those capabilities. There's going to be something that's going to come and replace you in a heartbeat. >> Yeah, absolutely. At least I have a background in space. But there were places where our walk Drano said, Wow, there's applicability for our business. I mean, we use a number of the collaboration Sweets, You know, I mentioned, I've got I've got maps for, you know, not just the Google sweet, but all the collaboration tools on there's technology that I'm like Gucci. I want to understand that a lot of them are downloaded an app. You can start using them for free. And then there's a Freeman model and and others arm or enterprise licenses on. It's been interesting to watch some of that dynamic as to, you know, it is the pricing. Is Mohr built for the mobile and cloud world than the traditional? You know, I'm going to buy boxes and have a huge capital expense up front. So >> what do you think if you look back to your early days in the call center when you were just a young pup, how much easier your job have been? If you had had some of the capabilities that we're talking about >> now least I wish, you know, back in the nineties, you know, if I just had linked in alone, I could have supercharged s o much of what I did. But all these other tools, right? Putting at my fingertips information. It was like, you know, Lisa tell you date myself in the nineties and taking a call where everybody that works in the call center You knew the area code of every single environment that it didn't tell you where it wass you would be like, Oh, yeah, I, too want to hide in New York. How you doing? You could be whether you're saying good morning or good afternoon based on what part it was like. Oh, wait, I'm talking Arizona. They don't follow daylight savings time. We'd remember all that stuff today. There's too many exchanges. Everybody takes their phone numbers wherever they go. S o it was It was a smaller country back then. But in the other hand, the technology is actually going to give us the opportunity to be ableto imbue that allow humans to focus on the empathy and connectedness that today's digital age sometimes tries to tear away from us. >> Exactly. We need that empathy in that connectedness. So, stew, we have a great program today. Stick around. We've got some folks from Selah Jin we've got. It's now on the programme within communications Fuse. Tetra VX five nine, of course. And there in that little and zoom this afternoon. Yes, thank you. Five O'Clock for student a man. I'm Lisa Martin. You're watching the Cube.

>> Live, from Orlando, Florida. It's theCUBE! Covering Enterprise Connect 2019. Brought to you by Five9. >> Welcome back to Orlando at Enterprise Connect 2019, I'm Lisa Martin with Stu Miniman. It may sound like we're at a party, this is the buzz of the event, this is day one, and we have had a great day so far of talking with lots of guests. We're welcoming back to theCUBE an alumni, Jim Lundy, see applause for you, Jim, CEO of Aragon Research, welcome back to theCUBE. >> Thank you, great to be here. [Lisa] - That was cute, by the way, so I hope we get some credit for that. >> Yeah, yeah, very cute. >> So Jim, you have been coming to Enterprise Connect since before it was even branded Enterprise Connect, back when it was VoiceCon. Tell us a little bit about your observations about the evolution, not only of the events, but also of all the collaboration and communication tools that consumers now are expecting and demanding of businesses. >> So, I think my first event was called VoiceCon in '07, and then it was all about phones. There was no software here. There was no video. There was no messaging. There was certainly no AI. And there were a lot of the players were not here, they were not in business then. So, if you actually look at some of the bigger players here today, they did not exist in 2007. So you look at the advent of Cloud, that's powered a whole new generation of services and opportunities, and it's great for buyers because there's so much more choice. So, VoiceCon almost died and they rebranded it but they've had to expand their focus. There's still a lot of voice focused stuff, but as you can see it's really shifted, we think it's shifting to communications and collaboration, we think contact center, particularly Cloud, is hot. We've got through overall Tam for communication, collaboration, contact center, by 2024, about 120 billion dollars, which makes it bigger than Enterprise secured. >> Yeah, we just had a great type-in with Blair Pleasant, and said, I'm a new channel, absolutely is where it is, but voice is still the number one preferred channel, when you talk about context center, there's lots of ways you can get in touch, but when something's wrong, I want to pick up my device and talk to a human eventually, so yeah, Cloud, and AI, and everything else, but there's still people in this center of everything going on here. >> Well, I think one of the things for contact center in particular you mentioned is the power of Cloud. So you look at some of the players here like we're in the Five9 booth, they've grown because of their Cloud focus, and Cloud is a lot of what's powering everybody here. And buyers want flexibility, so I think that's one of the big things that's changed, is there's still a lot of On Premise, and hybrid Cloud, but the power and the demand for 'I want to deploy something fast, and maybe I'm not even that big of a shop,' Cloud gives me that flexibility. >> When I look at the market as a whole, there's all those arguments about it's private Cloud, public Cloud, hybrid Cloud, multi Cloud, but if we think of Cloud as an operational model, and not a place, I want speed, I want to be able to update to my latest thing, whether that's for security or the cool new feature, and if I'm not Cloud, or Cloud-like, then I probably install something and what I do now and what I do a few years from now looks pretty close to what I did when I installed it. No? Does that resonate in this phase? >> Yeah, yeah. I think there's a couple things, also there's the operational nature of do I want to be in the server update business? Some people do, because of the nature of their business, but a lot of people don't. So then I can focus on the client experience, providing better journeys, and I think that's up the game. I think there's an awful lot of competition in this market because, really because of Cloud, but On Premise or private Cloud is not a bad word, and like I said, I think the bigger play is to be able to do a combination of things and meet the needs of the customer. The only thing I would say about the show is there's a lot of feature wars at this show and needs to be maybe a little more focused on what the customer needs versus hey, my box is better than your box. >> On that front, in terms of focusing on the customer experience, we talk a lot about that, there's a lot of the messaging and branding around the shows you were just pointing out, but something that is always interesting is where does a company balance the customer experience with the agent experience, because the customer experience is directly related to the agents being in power. >> Oh, totally! Well, you got to really do both and do both well. If the agent can't do their job, then the customer is not going to have a good experience. I do think that overall, there's been a pretty good focus on the agent, because that's where it kind of all started, and if you really look at contact center, it's really a heavy-duty application. You've got to be able to do all those things to service the inbound calls or inbound messages, and you're right, there is a lot of focus on the customer, because in some cases there is so much focus on the agent, well, we took the calls even though a lot of the calls, 10% might've gone to voicemail? Sometimes? Well, we serviced it, so. Little unknown fact is that in a lot of enterprises, marketing and the contact center group never talk. Interesting opportunity. >> Yeah, Jim, it's interesting, you talked about in tech we often get to that feature battle. Battle by power point or by product stack and oh, I've got 147 features and they only have 125 features, when you look at most customers they only know how to use three of the features they've got on there. So what differentiates from a customer standpoint, how do they choose, how do they make sure that they get something that is going to help their overall customer experience, and help their products and their marketing? >> Well, a couple things. First of all, you're right, they don't care as much about 'I've got this feature, you don't', they want to know can the provider take care of me if I buy from them? Are they reputable? Do other people, are they happy with the service? We do a lot of vender evaluations, we call them Aragon research globes and we usually spend six months working on understanding where the vender is this year, and we talk to references and things like that. So I think that sometimes when you, they read a report and they get some insight, they still want to talk to somebody versus just reading a peer review on somebody's consumer website, and really get that insight, so I think that's one lens and I think the other lens is that the smarter players are doing those things where they can provide really high touch support, I'd probably say Five9's pretty good at that, because contact center is really, really complicated, you just don't turn them on sometimes, there's things you have to do to make them work, and I think overall in this space, there are some products you can buy, maybe not contact center where you can spin them up and turn them, configure phones and go, I've actually deployed some of them, and there's some that would be such a nightmare, like who in the world would ever buy this product? So, I think it really varies a gambit and again, sometimes that doesn't always come out with an online review and again, sometimes the buyer, still buyer beware, in a lot of cases, some of the things you read online are not true. >> One of the things we were chatting with a number of the Five9 executs about today is that they have a five billion recorded customer conversations, tremendous potential there to really glean actionable insights about retaining that customer, increasing their CLV, but there's also the concern of data privacy and security in sharing, when you're talking with customers that might have this massive pull of data from which they can really expand their business and become competitive, where is the security and the privacy concerns there? >> It's a good question. There's a lot of focus on GDPR in Europe, there's a lot of focus in California on that, even though there's not been talked about in California. The rest of the US is kind of behind a little bit what Europe has done, but here's the thing. They've got ways to mass sensitive data in a recording like credit card data, that's pretty standard stuff, the big thing is data residency. I want my data in a certain country, Canadians do not want their data resident in the United States, Europeans don't either. Germans don't want their data resident in Belgium, so there's a big sensitivity in Europe about that, and even in fact, Microsoft's even gotten in trouble in Germany over that last year, because they eliminated a relationship with Doy to Telecom, sometimes you can kind of go overboard on that, but however, what I would say though is, some of the big Cloud companies have done this, brought this problem onto themselves, where they have not respected data privacy, there's even a bill now on facial recognition, because of some of the things that have gone on like IBM disclosed, they're doing something, so it is still an issue, it's always going to be an issue, I do think that there needs to be more protect, but here's the question. Who owns your data? Who owns your face, or my face? I don't think that because I upload a photo that I should give my rights away. I think we're going to catch up on that, I do think for the B-to-B though, a lot of these companies, first of all, they are certified, they have Cloud certifications, they definitely do certain things relative to privacy, and so they have to pass a lot of tests that are certified by an auditor, so I think there's a lot of things that most of the B-to-B buyers are not going to have to worry about with a lot of the people here, it's more of the personal side of things, the personal Cloud, Facebook, but usually not the kind of stuff you're dealing with here. >> So, Jim, when I look at the overall contact center market, the Cloud portion of that is still relatively small, if I saw right somewhere, 10, 15%, but it's been growing at a steady clip, where are we in their adoption, is there a plateau that it will hit that, is it take a third of a market, half the market, what do you see happening? >> I would say, we're on a journey and you're right, there is still a small part, which means the large address will market, not that much different than unified communications where it's mainly On Premise, going Cloud. We've got contact center going about 24 billion, and we think a lot of that will be eventually converted to a Cloud, except for maybe the ultra, ultra large call centers, and I think just like email migration 10 years, I've covered that, 10 years ago it was all On Premise. Today it's the opposite. It's like 90-10. So I think that eventually is going to start to happen. >> It's interesting, a lot of that was Microsoft really turned the lever, Microsoft on email, and Microsoft is like, we're going sass, you are going sass if you use Office, you are going Office 365. So I'm curious, is there a lever like that from a licensing standpoint or from a vender standpoint, that would push contact center? >> If you look at the contact center market, we've got it, growth rates around 9% overall, but then you've got people like Five9 that are growing 31%, alright? So if you starting looking at that, why is a Cloud company growing that much when the overall market, well because there's demand. They want the flexibility of Cloud, they don't want to run the servers and upgrade the servers, and I think that they've learned lessons from that, and you're right, Microsoft did do that, but Google forced them to do that. So I think that, are fast growing companies like Five9 forcing some of the bigger players to go more Cloud? And I can say absolutely yes, that a lot of the bigger players are looking over their shoulders saying, and they bought Cloud contact center players so they can keep up with some of the young startups, and Five9's not young, but they would still be considered young in the relative terms of this event. >> I'm curious, Jim, when you're talking with venders and the Aragon research that you do, companies of different sizes, whether they're born in the Cloud or they're legacy companies, where does cultural transformation come into this conversation about evolving a contact center such that an agent is empowered with the right content to deliver it through the right channel, to make a decision that really positively impacts the customer? I can imagine multiple generations, multiple countries, cultural transformation is hard. >> It is a big issue, I think there's more awareness on both the culture of the agent and the culture of the buyer, and I think there's more stuff going on relative to sentiment, sentiment analysis. I do think that's a bigger issue, I think there's more time being spent on training, the better digital companies are investing tons of money in training, so I think there's more awareness relative to cultural differences, cultural nuances, and being more sensitive to maybe things that they would say sorry, can't help you with that, since they've been trained to be maybe more sensitive, they're going to be more understanding when they're actually on a call. >> So, Jim, in your research, where's the white space? Where's the real opportunity for growth and transformation, we've had some discussions here, it's early days in AI's, at AI, or is it not the technology, is it the cultural changes, that Lisa brings up, where are some of impediments and room for growth in the industry? >> So we do think that the enterprise will become more intelligent, and that the providers are going to lead that charge, where instead of you say to AI, we call it intelligent contact center, and we think that there's going to be more of a demand for automation, and that there will be more assistance that might take care of a customer's problem before it ever gets to a human. I do think that we're not going to, that's going to be something that's never going to go away, it's just that they're going to get smarter and more supportive. We have helped clients deploy chat bots for help desk internally for customer facing help desk, I think it's still early here, that people have them, but they're more rules based than AI based. AI's coming in the next two years but there's no doubt that is going to be one of the drivers, and by the way, sometimes people be like, is this the problem we were having, is this the question you have? Yes. Here's this answer, and it's the right answer, the correct answer, that's what people really want, they want the instant gratification, we all kind of grew up, we were used to that with our phones, I need the answer, and I do think that I would probably say the demand for Cloud is going to out-strip everything, so if somebody that's an On Premise provider doesn't have a Cloud option, then I would be worried about them. But I do think AI is not going to go away, we don't think it's going to be an AI or nothing, it's going to be basically intelligent digital assistance, it can answer questions intelligently and have a conversation with you, there's some tools that do that today, but most of them are very basic question and answer, they're not high-end, it can't be like Jarvis on Iron Man, where yes, yes, Mr. Spark, I will do that for you, they're not quite there yet, but the movies glamify that whole thing. Some people expect, well, why doesn't it talk back to me? >> Any last questions, Jim, are there any industries that you see is going to be early adopters to start creating and actually deploying the intelligent contact center? >> Well, let's put it this way. Every client we've talked to in survey work said we wish we had more intelligence in our contact center. I think they're a little scared that they want to make sure they do it right, but if you do it and deploy it and test it, you'd be amazed it's for some of the basic Q&A, how rockstar stuff that is, but sometimes people rush too quickly and deploy it when it's not quite ready. I think a lot of the providers here, including Five9, are going to try to do AI the right way, and not try to rush it, but I would also say this. There's an awful lot of fud about AI, and most of it's not true. >> Lisa, final, final question for Jim here, since John Ferger's not here to ask it, Five9's gone through a lot of changes here, brought in some pretty high-profile executives, any commentary on our host here? >> Look, I knew Rowan and Jonathan Rosenberg at Cisco, they had a rockstar team there, they've even, since they've joined here brought more talent in, and so, the Five9 people I knew have been blown away by the level of talent that has come in, and I think that's just going to help them continue to grow. The question is, when did they declare how big they're going to be? And that's what we're looking for them to do. >> To be continued, Jim, thanks so much for joining Stu and me on theCUBE this afternoon. >> Thank you very much. >> For Stu Miniman, I'm Lisa Martin, you're watching theCUBE. (light beat music)