(upbeat music) >> Live, from Barcelona, Spain, it's theCUBE, covering Cisco Live!, Europe, brought to you by Cisco and its ecosystem partners. >> Welcome back to Barcelona, this is Cisco Live 2019, and you're watching theCUBE, the worldwide leader in live tech coverage. I'm Stu Miniman, my cohost Dave Vellante and John Furrier is here, three days wall-to-wall coverage, and we are absolutely thrilled to welcome to the program, for the first time the CIO of Cisco, Guillermo Diaz, Jr., also a senior vice president. Thank you so much for joining us. >> Thanks for having me. >> What's your key priority today, some of the big challenges that you're focused on, Guillermo? >> Yeah, so I think the key challenges are really around. I would say for me it starts, it's in between, and it ends with the people. And I think it's the cultural shift that happens along this journey as well so, a lot of folks says, "yeah, we're IT, we're the leaders "in technology in the company." And I think moving from that back office to, now every business, the foundation of which, if you're going to be a digital company, is technology, so who in the company is the best suited to really help that conversation is IT. So IT is now becoming part of the business transformation of every business, whether you're in technology, like myself, whether you're in oil and gas, whether you're in retail, whether you're in finance, etc. Technology's driving the digital business transformation. So, it's really about how, that we not only use technology, but what is the impact on our processes, how we digitize, if you will. But more importantly is, how do you bring the people? How do you cultivate the best people and talent so that you can actually move up the stack, and it's not easy for someone that's been hugging routers for many, many years, and now you tell them, "Hey, you have to do drive programmability." And they're like, "What does that mean?" Well you have to learn >> Python and Ansible >> Yeah. >> Code that infrastructure. >> Now you need to code this thing because you need to provide that thing you provided in eight weeks, now you have to provide it in eight minutes. >> Right. >> And that's a big shift in mindset as well. >> Yeah, so, Guillermo, I know that STEM is a passion of yours, talk to us a little bit about that pipeline, and we love large technology companies like Cisco is to, how do you get down to not just the universities, but even some of the more elementary schools and help make sure that they're ready so that when, we're not sitting here saying, "I've got thousands of jobs and nobody "that is prepared to take that job." >> Yeah, well again, when you think about what you just said, with STEM, well what are you cultivating? You're cultivating the pipeline of people, and the more people that you have trained up in those technologies, and we do a lot with not only universities, but even below, even before university. We have a program, a work-study program that we have in Cisco IT, and we have several partners, one of which is called Cristo Rey Academy, and what we do is, part of the curriculum is four days a week you go to school, one day a week you work at Cisco. And these are kids from 14 years old to 17, 18. And they are learning now, some of these kids come from really low income or underserved communities, and now they're coming in and they're learning about, "How do I set up a wireless infrastructure? "How do I set up a telepresence environment?" And when they walk out, they're not only going to a university that they never thought of going to, like Cornell or like Humboldt State or whatever it might be, but they also have this skill, they also have this experience, because now you're putting them in an environment, and they're like sponges, and it's amazing what we can do, and now you fast forward that into a university pipeline. We bring in about, in Cisco IT, and broadly across Cisco many more, but 200 university hires every year, and they're providing instant value, because they're challenging us. They're like, us dinosaurs, I don't like to think of myself as a dinosaur, but I've been there 19 years, and sometimes I think a certain way, and I have to unlearn some things, and when I hear these people talk, I'm learning and I'm relearning things, and I'm unlearning some things. >> Well if you surround yourself with millennials and gamers, you do learn new things, you can't help it. >> Yeah, you learn new ways of thinking, new design thinking methodologies, stuff like that. >> I want to ask you about the organization. When we get the CIOs of large technology companies on, a lot of times you guys have implemented best practice, and we get a lot of questions around, what's the right organization? For instance, do you guys have a Chief Data Officer? Do you have one? >> So, what is the right organization? >> Well, do you have a Chief Data Officer? >> First, I don't know that there's a right organization. >> Is that, you know right, put that in quotes, but so do you have a CDO? >> Yeah. >> And where does that CDO fit in the organization, what's your relationship with her or him? >> Yeah, so why I say there's not a right organization is, we didn't have a real focus on data. Data was the database crew, the people that did the big data platform, and one of the evolutions we did, in about 2015 we actually brought data up to the CIO level, and we said that that was going to be a strategic pillar, along with how do we simplify, how do we automate, how do we get the data insights to be able to make decisions and then secure our business. Those are the five pillars of our digital strategy. So data and the insight was the big key strategic pillar for us. And so that helped us really start to accelerate our agile motion into you know. And as we learned in the last year, we actually elevated that role. We actually moved it from IT into the next level of operations. >> So it's a peer level to you, is that right? >> So now we've taken that role from my team, which was the Chief Data, now it's the Chief Data Officer, named Shanthi Iyer, and Shanthi was working in my team, and now she's working under the COO, because we believe that data's such a critical asset. It's the oil, it's the fuel of the business. >> Yeah. >> You know, it's the foundation, so we've elevated it up to that level, and now, really driving it >> That's awesome. >> From a business perspective. >> Great. Guillermo, we've seen Cloud go through a lot of changes both as an industry as well as Cisco's relationship to what you've been building and where you've been partnering. How's that impacting things on the IT side? >> Oh, I think Cloud is, it's interesting, I get to talk to many of my peers. Every day I'm talking to one of my peers, and many of us go, "We have a Cloud-first strategy" or "We have a Cloud strategy." And a lot of times you'll go, "We have a Cloud Strategy." And it's like, "What's up in the? What's?" Because if you think about it, Cloud is in some data center somewhere, but the impact on that is pretty tremendous because there's so many now "Clouds". And they come in the form of Saas, they come in the form of infrastructure as a service, and so you have put a wrapper around it or it could get out of control. And for us, we have what we call a "multi-cloud strategy." Luckily, we learned Cloud early on, and we initially called it virtualization, right? So we automated network compute and storage, and that wasn't good enough, because then we needed to automate the application infrastructure level, and then we needed to automate how we actually deliver, so as we moved up the stack, we learned how to virtualize, or, fast-forward, how to Cloudify our environment, so we grew up in our private Cloud, and then we extended that to, Okay, now you can go provision if you need to, you can provision public Cloud services if you want to do experimentation or whatever the use case might be, but Cloud is now changing the business. We have to move fast, but at the same time, you have to be secure, because we have in Cisco, just to give you an idea, we have 442 applications in the Cloud. The question is, how do you stitch those together? How do you make them secure? Because data is traversing across that, so it's really about Cloud, data, and security, all in one wrapper that you have to be thinking about. >> Enforcing that consistent policy, the corporate edicts. So it's interesting, you talked about multi-cloud. We saw this week a number of announcements from Cisco around multi-Cloud, ACI anywhere, HyperFlex, At the Edge. Over the years we've seen innovations around, we were talking about this before, programmable infrastructure, are you a Petri dish for those products coming to market? >> We're Cava. We drink our own Cava >> Yeah, not dog food. >> No, we don't like dog food, we like Cava. So we call ourselves "Customer Zero", and so the first order of battle, though, is we have to run our business. We're running a 50 billion dollar business, and that's the first order of battle. The second is, oh by the way can we use our own, what we're talking about here, to run that 50 billion dollar business, and that's sort of our multiple hats that we wear. We're the enabler, but we're also a large consumer. And being able to put that together, we call it "Customer Zero." We used to say, "We're the first and best customer." But for us that's too late, so we said, "We need to be Customer Zero, we need to be the first to take on some of these solutions and products, so that we can provide feedback to our engineering teams, our sales teams, our services teams, but more importantly, how do we become the reference, and we have an IT management program going on right now where we're talking about a lot of these things to 800 customers for a three day period. So those are the kinds of things that we do. >> Right. >> So, we love to hear you're using the products, we're here in the DevNet zone, and we've been hearing a lot over the last four or five years, Susie Wee and the team, how does that >> Right, she's my other partner in crime. >> Great, so talk about how the developer movement, DevNet specifically, DevSecNet, how that impacts your business. >> Yeah, so again, if you go back to programmability, if you go back to Cloud, it's all about having the ability to put all of these components together, so that we can all be productive. And the skill of the future is How do I program this? How do I make all of these things work in the easiest way, and it's coding. And you look around here, and there's coding classes. There's basic coding classes, and a lot of times a network engineer goes, "Why do I need to do that?" And you start to influence them to say, "Well, you need to move up the stack. "You need to be the one that actually provides "an infrastructure in five seconds, versus five weeks, and in order to do that, "you need to develop these new skills." And what Susie and the team have done with DevNet has provided a platform for all of us, around the world, to be able to learn these things, and not just become the network engineer, but become the orchestrator of these capabilities, right? >> When you think about your portfolio. You know, obviously you've got an application portfolio, you've got 400 plus applications in Saas, many more, I'm sure, on Primm. We like to think of this framework of run the business, grow the business, transform the business, and I wonder if you could, first of all, does that framework make sense? It's simple, obviously, but how do you think about your business in terms of running, growing, and transforming, and how you allocate resources to those three areas? >> I think that's been the historical legacy model. And I think when you start to segment it that way, you start to segment innovation as well, because in run the business, as an example, maybe you heard this term, "AI Ops". >> Mm-hmm (affirmative) >> What is the future of operations? Well the future of operations is how do I take all of these monitoring tools that I have, the same thing I've done with network computing storage. How do I stitch them together so that I can actually correlate where an issue is? In order to do that, what we've done is we've taken our operation team, and we've now deployed them into the development teams. This is the, we're not calling it DevOps, it's called DevSecOps, because at the same time, we want you to have a mindset of security first. Think about, as your developing, think about security as you go through the process. So now the operator, the one that used to actually sit there and watch the thing go, now no, I want you to actually be the coder, so that the problem that you're looking for, that you're waiting for, that you're helping solve that proactively. And that you get new skills as well. So the same thing with the network engineer, the operations person now is learning about Python and Ansible and how to stitch the infrastructure, the application, the data, all of that, into more of a monitoring system. >> So what I'm hearing is that you're taking that notion of run the business, grow the business, transform the business, bring it together, and everybody's responsible for running the business, growing the business, and transforming the business. >> And you're responsible for innovation. >> So it's continuous innovation model versus a stovepipe segmentation model. >> Continuous innovation, continuous improvement, continuous learning. >> Guillermo, I want to give you the final word. Here we are at the beginning of 2019. When you talk to your peers, the CIOs out there, whether it be tech, enterprise, startups, what are some of the biggest challenges, biggest opportunities that are on their plate. >> Yeah, I think it's, we're in an interesting time in IT in the world, where technology's foundational to every business. So my call to action is, there's one organization in the company, in every company, that knows technology, and that's IT. And they know the infrastructure and they know the ops. So the more that we can put those together into helping solve the secure digital business transformation, and not just talking about it from a technology perspective, but how do we use that to really articulate and translate that into business outcomes. And there's a lot in that, it's how do we use our own technology, how do we change our skills? How do we unlearn some things to relearn how to communicate with the business so that we can learn to go faster. >> Guillermo Diaz, Jr, thank you so much for sharing the viewpoint of Cisco and the changing role of the CIO. Dave Vellante and I will be back with lots more coverage here from Cisco Live 2019, in Barcelona, Spain. Thanks so much for watching theCUBE. (futuristic music)

>> Live from Las Vegas. It's theCUBE. Covering VMworld 2018. Brought to you by VMware, and its ecosystem partners. >> Hello everyone. Welcome back to theCUBE live coverage here in Las Vegas for VMworld 2018. It's our ninth year covering VMworld. Since 2010 we've covered every VMworld. Been with the journey and the transformation of VMworld. I'm John Furrier with Dave Vellante. We've got two sets here in the middle of VM village. And we wouldn't be here if it wasn't for CMO Robin Matlock, who's on theCUBE right now. Welcome back. Great to see you. >> I'm happy to be here guys, again. >> Again, great. >> Thanks for the support, for bringing theCUBE here. The community has been responding positively to the coverage because you guys had so much content here this year. As Pat said, a lot of the fruits been blooming off the tree from all the investments in product. And business is good. >> Good, we're keeping you guys busy I hope. Yep. It's been good. >> So what's going on? Let's get the numbers. We always get it out of the way. How many people are here at the event? We're at the Mandalay Bay. What's the story? >> Yeah, it's a great audience this year. We're definitely seeing some nice growth. We're well over 21,000 here today. Covering all segments of the market. Covering Asia Pacific. The Americas. Also executives as well as our true-blue IT practitioners. >> You got CIOs and practitioners with the hands-on labs, a range of audience personas. >> Yeah, it kind of goes from the practitioner base up. Your mid-level management, VPs, IT decision makers, CIOs. We really have a very wide variety. >> And the theme this year is? >> Possible begins with you. >> (laughs) Okay. >> Yeah, I popped into the CIO event last night. >> Yeah? >> And it was pretty high quality folks. I don't recall, you know, five, six, seven years ago seeing that kind of emphasis and that kind of seniority at the event. Did I just miss it, or is that new? >> No. It's been evolving over the years. I mean, at VMworld's core it is a technical conference Right? So I would say the base of the volume of the program is still catered towards a real, hands-on, technical practitioner and middle management. But we are seeing more business executives come. They want to know what their teams are exploring. They want to understand vision. And I think VMware's value proposition to enterprises is growing and therefore, it's starting to be more of a business conversation. So that is a segment of the audience that is growing. >> And you're nurturing that. Also you're making sure the hands-on labs are the best of the best. I saw Eric Nielsen has this new VMware code thing going on. >> Yes. >> Here at a little hack-a-thons happening. >> So a lot of mix in the community. The community is still robust. The ecosystem floor probably has more energy than I've seen since probably 2012 or something like that. Last time I've seen it this massive. 2012, remember Dave, was pounding. And then this year, it's just, the lift is big. Where's that coming from. >> Yeah. You know I think it's coming from a lot of things and there's no one silver bullet. First of all, VMware is just doing really well. Right? The company is very performing. It's success for our customers that've really come to buy into our strategy and our vision. And they have a veracious appetite to learn. And this is the place. You want to understand where the industry is going. You are technical and you want to be on the edge of the latest and greatest. VMworld is the place to come. So I think we're hitting on many different categories of technology. And it's all pulled together here. So it's one week where you can go from networking, to storage, to management, automation, cloud, mobility. It's all right here. >> And you guys always kind of keep a low profile in the market. You don't over amplify, over play your hand and grandstand too much on the marketing side. Which as always been the DNA of VMware. But this year, you've got Amazon coming on stage again. Andy Jassy returns to do a major announcement that Amazon, really for the first time, is building a product for VMware, on VMware, on premises. Pat's on stage. So you see the commitment from the two companies, the biggest public cloud provider, and the biggest operator of virtualized infrastructure and private cloud, partnering and performing. So I think that really kind of put a lot of wind in your sails. I mean, a lot of people are talking about it. It's been pretty much the top news story, the impact of that relationship. How has that affected VMworld? The announcements are, it seems like more announcements than ever before. How has that relationship changed you guys? >> Well I definitely think, we're several years into it now, and we are seeing the fruits of that effort. A couple of thoughts. First of all, the AWS relationship is not our sole element of our cloud strategy, but it's a big pillar of our cloud strategy. And I think, at the end of the day, by understanding our vision for how we can help deliver a bridge to the public cloud, the hybrid cloud, it is giving our customers the license and the comfort and the confidence to continue to invest. Whether it's in their data center or is in their public cloud. So there's something about just having that clarity of vision and strategy that unleashes potential, even in the data center. I think the second thing, to me, what was so significant with this Amazon announcement with VMware. Is you are now talking about public cloud services running on Primm. The line between public and private. The line between on premise and off premise is fading. It's blurring. We're going to get to a point where we're just going to talk about what's the workload, and what's a service I need to deliver the workload. Okay, and then I can consume those services in different ways, and what's the right way to consume those services. But it's not a monopoly on an off premise, or a monopoly on an on premise. It's a blur. And I think that's going to be in the best interest of customers, because I think it's going to really boil down to what is the workload, what are the services I need, and I have a lot of options on how to consume that. And I'm all for that. I think it's going to be great. >> Well, I got to say, John and I have watched this evolution for for now, as he said, this is our ninth year. You guys have done a great job of really being calm about all the things that were supposedly going to kill you. (laughter) Open stack, open source, cloud, Kubernetes, containers. You've embraced them all. I mean, I know cloud for a while was a little bit confusing. But now it's a real tailwind for you guys. I mean, great job there. And I think a lot of that is sort of how you've dealt with it internally, messaged it externally. I wonder if you could just address that for a minute. >> Yeah. You know, I love that observation about VMware, because that speaks to two big concepts: resiliency and innovation. In this industry you have to be constantly innovating. And if you get too protective of the market that you're in, you start to get into a cocoon. And then people are innovating around you and they're making you obsolete, and you're not even seeing it happen. I think VMware has a veracious appetite for innovation. And we are pushing, and pushing, and pushing. And we're never relaxed. We are always, you know, often pleased but not satisfied. Right? It's like you're never, ever done. And that keeps us being open to innovating, where once we might have been protective. It's like don't worry, things will change. We'll innovate on top of that. It's alright, a new environment. We'll innovate in that context. And I think we're very good about that. And then the other thing I think is resiliency. In this industry, there's not that many that can go from decade to decade and still be highly relevant. But you have to have the grit, and you have to have the kind of gorilla appetite that you will continue to reinvent yourself, listen to your customers, bring your ecosystem along, and partner like nobody else. And in the end you'll deliver more value. >> You know, that's a great point. I love that comment. That's going to be a highlight on our highlight reel for sure. I'll add, and love to get your reaction to, how you guys have maintained the community vibe and the ecosystem vibe. Again, to Dave's point, this is core. Pat said on earlier today, you know, "we're always going to have an open ecosystem." That's been the core DNA of VMware. So, and you also have a really strong community, hence the technical focus. These tech oriented folks, they love the tech. And they speak up a lot, you know that. They speak well. >> Oh yeah. They're vocal. >> They let you know when it's not right. But you guys embrace it. That hasn't changed. That's been a positive. How do you do it? >> Yeah, that's exactly right. I think we have, over the years, just built ecosystem into our core DNA. It's now defined by who we are and how we do things. And, you know, going back to your Amazon comment, I think that is simply an example, we know how to partner. We've been at it for 20 years. And it's just been part of how we perceived the requirements to be successful. And because of that it's now, we're just good at it. We get it. And the reason we're good at it is because we very much understand it's bi-directional. You can only win when you win together. >> You know, one other thing I want to point out, and at least give you guys some props while you're here and get your reaction to it is, we've done a little bit more cube with you guys, outside of the scope of the event. We did a lot of women in tech leadership events. We were invited to the first radio event where they opened it up to some press. So we got a glimpse inside >> Internal engineering kind of conference, yup. >> It's a total R&D, it's with all the technologies being incubated, it's a really great thing. Also being on campus, you guys are always consistently voted the best place to work, you got the innovation in the R&D, and you've just got a great workforce. So, that is also a cultural thing within VMware, right? 'Cause Pat said, we're going to continue to drive technology products, and sales and marketing for customers. Your reaction? >> Yeah, I think people are at the heart of great businesses. Right? And we have to create an environment where people can do their best work. Radio is a wonderful example. So that's an internal conference for our engineering teams. But what it is about building community within our engineering community. How do they explore new things? How do they take risks? And explore and innovate and try new things. And then how do they share that with their colleagues from all over the world. And I think that's just part of our value system is creating these kind of communities internally and externally. >> You opened it up to press, talk about taking a risk. >> That was a first time, yeah. >> That was the first time you've ever opened it up to some press outlets. We were one of three. But it was a peek. That's a risk. >> It is a risk. And I think the idea there is that being protective is not really helpful. That what you need to do is to really be open. That there's so much to deliver value and innovate. There's not reason to be so secretive. It's more about how can we feed of each others ideas. How can we plant seeds and see if these things are going to resonate. We don't know for sure these new emerging things are going to work or not. So the more we get feedback early, I think the faster we'll innovate. It'll accelerate innovation. It won't hold it back. >> Well, and your point about the ecosystem is right on. Sanjay made the point about ROI today. I thought that was really interesting data. About 10x was a conservative return number in the 100s of billions if not trillion of dollars that you've sort of paid forward through the ecosystem to the end customers. It's powerful. >> Very powerful. And at the end of the day, we need to just continue to focus on delivering more and more economic value, right? Whether it's cost savings, whether it's being able to fuel new innovation, whether it's consolidation. At the end of the day we all have to get more done with less and have more value and more impact. >> Well it's interesting to see you being in Amazon into this ecosystem, because you said you guys partnering is part of your DNA. You know, generally Amazon's partnerships have been come on into the marketplace, right? And now, they're diving into this world. Bringing their technology on prem. Which was heresy five years ago. You never would've seen Amazon do that. So, do you think you can teach Amazon something about partnering, humbly? >> Well, I'll let Amazon comment on that as opposed to me. >> Amazon's got a lot of partners, Dave. They've got thousands of partners. >> But, you know, I'm going to go back, I can't speak for Amazon on what their learning journey has been. I do feel confident that VMware, we are good at partnering, and I think we build good partnerships. >> My final question for you is community. Obviously, as people grow there's a demand for more cloud advocates, more cloud engineers, cloud architects. You guys always had a nice lock on that constituent. But we're seeing a lot of competition hire away people from communities. How do you maintain that community fabric when potentially they might be migrating to other communities. Is it through open source? Dirk Hohndel is leading the efforts with open source. Saw him last night. How are you thinking about maintaining an open, but yet inviting community when people potentially are being migrating around different communities. >> Yeah, I think you have to look at communities as personalities, and kind of the DNA of a community. And it's not a one-size-fits-all. When you're in the dev ops world, you need to act and behave and engage a certain way. You need to bring a certain type of content to that. Trust me, they don't want a lot of marketing in those conversations, right? When in enterprise class, you might be dealing with a different type of DNA. It's about proven, stability, security, resiliency. So there's a little different nature of the community and the dialogue there. I think our philosophy is you got to bring the right content to the people. And it's different, but make sure you understand the needs of the community. And we don't own these communities, right? These are volunteer, people do this because they care, and they want to and they're passionate about it. Our job is to foster that passion. Help make them effective, let them share amongst themselves. They are going to move around communities, we just want to be a part of it. We're not trying to own it, we're trying to be a part of it. >> That's the key, you try to get a land grab ownership, that's when they run. >> I don't think that's what it's about. I think it's really just about, what is the sense of community? What does the word mean? It means coming together, it means sharing, it means helping each other, it means people with like-minded needs and wants and interests. >> Robin, thanks for coming on Cube. I know you're super busy. Thanks for sharing. >> Always. >> Final word, just overall impressions so far. Are you happy the way things are going? The conference is phenomenal. Everything going smooth? >> You know, I couldn't be more excited about what's happened here so far. We're only into day two. For me, a couple of the highlights is how now the industry is starting to talk about tech as a force for good. So now we're starting to move out of the conversation of just the technologies, and the products, and the impact. But what are we collectively doing to make this world a better place. That's a new dialog. And I got so much positive response from Malala today. From, you know, some of the things that we're talking about impact on the world. And I think these just nothing but upside and opportunity for us. >> And that speaks to the culture, you guys are very inspirational. Love the tech for good. People want to work for a company that's doing tech for good, as well as making a profit. >> So do I. >> Thanks for coming on, appreciate it. >> You bet, you guys. >> Thanks, Robin. >> We're doing our best for good here on theCUBE by bringing the great voices in the community and also the executives bringing the content to you here. Two stages, ninth year covering VMworld. We're here with Robin Matlock the CMO. Stay tuned. I'm John Furrier, and Dave Vellante. We'll be back with more coverage. Stay with us.

>> Live, from The Wigwam, in Phoenix, Arizona, it's theCube, covering Data Platforms 2017. Brought to you by Cue Ball. Hey, welcome back everybody. Jeff Frick here with theCube. Welcome back to Data Platforms 2017, at the historic Wigwam Resort, just outside of Phoenix, Arizona. I'm here all day with George Gilbert from Wikibon, and we're excited to be joined by our next guest. He's Mick Bass, the CEO of 47Lining. Mick, welcome. >> Welcome, thanks for having me, yes. >> Absolutely. So, what is 47Lining, for people that aren't familiar? >> Well, you know every cloud has a silver lining, and if you look at the periodic table, 47 is the atomic number for silver. So, we are a consulting services company that helps customers build out data platforms and ongoing data processes and data machines in Amazon web services. And, one of the primary use cases that we help customers with is to establish data lakes in Amazon web services to help them answer some of their most valuable business questions. >> So, there's always this question about own vs buy, right, with Cloud and Amazon, specifically. >> Mm-hmm, mm-hmm. >> And, with a data lake, the perception right... That's huge, this giant cost. Clearly that's from benefits that come with putting your data lake in AWS vs having it on Primm. What are some of the things you take customers through, and kind of the scenario planning and the value planning? >> Well, just a couple of the really important aspects, one, is this notion of elastic and on-demand pricing. In a Cloud based data lake, you can start out with actually a very small infrastructure footprint that's focused on maybe just one or two business use cases. You can pay only for the data that you need to get your data leg bootstrapped, and demonstrate the business benefit from one of those use cases. But, then it's very easy to scale that up, in a pay as you go kind of a way. The second, you know, really important benefit that customers experience in a platform that's built on AWS, is the breadth of the tools and capabilities that they can bring to bare for their predictive analytics and descriptive analytics, and streaming kinds of data problems. So, you need Spark, you can have it. You need Hive, you can have it. You need a high performance, close to the metal, data warehouse, on a cluster database, you can have it. So, analysts are really empowered through this approach because they can choose the right tool for the right job, and reduce the time to business benefit, based on what their business owners are asking them for. >> You touched on something really interesting, which was... So, when a customer is on Primm, and let's say is evaluating Cloudera, MaPr, Hortonworks, there's a finite set of services or software components within that distro. Once they're on the Cloud, there's a thousand times more... As you were saying, you could have one of 27 different data warehouse products, you could have many different sequel products, some of which are really delivered as services. >> Mm-hmm >> How does the consideration of the customer's choice change when they go to the Cloud? >> Well, I think that what they find is that it's much more tenable to take an agile, iterative process, where they're trying to align the outgoing cost of the data lake build to keep that in alignment with the business benefits that come from it. And, so if you recognize the need for a particular kind of analytics approach, but you're not going to need that until down the road, two or three quarters from now. It's easy to get started with simple use cases, and then like add those incremental services, as the need manifests. One of the things that I mention in my talk, that I always encourage our customers to keep in mind, is that a data lake is more than just a technology construct. It's not just an analysis set of machinery, it's really a business construct. Your data lake has a profit and loss statement, and the way that you interact with your business owners to identify this specific value sources, that you're going to make pop for you company, can be made to align with the cost footprint, as you build your data lake out. >> So I'm curious, when you're taking customers though the journey to start kind of thinking of the data lake and AWS, are there any specific kind of application spaces, or vertical spaces where you have pretty high confidence that you can secure an early, and relatively easy, win to help them kind of move down the road? >> Absolutely. So, you know, many of our customers, in a very common, you know, business need, is to enhance the set of information that they have available for a 360 degree view of the customer. In many cases, this information and data, it's available in different parts of the enterprises, but it might be siloed. And, a data lake approach in AWS really helps you to pull it together in an agile fashion based on particular, quarter by quarter, objectives or capabilities that you're trying to respond to. Another very common example is predictive analytics for things like fraud detection, or mechanical failure. So, in eCommerce kinds of situations, being able to pull together semi-structured information that might be coming from web servers or logs, or like what cookies are associated with this particular user. It's very easy to pull together a fraud oriented predictive analytic. And, then the third area that is very common is internet of things use cases. Many enterprises are augmenting their existing data warehouse with sensor oriented time series data, and there's really no place in the enterprise for that data currently to land. >> So, when you say they are augmenting the data warehouse, are they putting it in the data warehouse, or they putting it in a sort of adjunct, time series database, from which they can sort of curate aggregates, and things like that to put in the data warehouse? >> It's very much the latter, right. And, the time series data itself may come from multiple different vendors and the input formats, in which that information lands, can be pretty diverse. And so, it's not really a good fit for a typical kind of data warehouse ingest or intake process. >> So, if you were to look at, sort of, maturity models for the different use cases, where would we be, you know, like IOT, Customer 360, fraud, things like that? >> I think, you know, so many customers have pretty rich fraud analytics capabilities, but some of the pain points that we hear is that it's difficult for them to access the most recent technologies. In some cases the order management systems that those analytics are running on are quite old. We just finished some work with a customer where literally the order management system's running on a mainframe, even today. Those systems have the ability to accept steer from like a sidecar decision support predictive analytic system. And, one of the things that's really cool about the Cloud is you could build a custom API just for that fraud analytics use case so that you can inject exactly the right information that makes it super cheap and easy for the ops team, that's running that mainframe, to consume the fraud improvement decision signal that you're offering. >> Interesting. And so, this may be diving into the weeds a little bit, but if you've got an order management system that's decades old and you're going to plug-in something that has to meet some stringent performance requirements, how do you, sort of, test... It's not just the end to end performance once, but you know for the 99th percentile, that someone doesn't get locked out for five minutes while he's to trying to finish his shopping cart. >> Exactly. And I mean, I think this is what is important about the concept of building data machines, in the Cloud. This is not like a once and done kind of process. You're not building an analytic that produces a print out that an executive is going to look at (laughing) and make a decision. (laughing) You're really creating a process that runs at consumer scale, and you're going to apply all of the same kinds of metrics of percentile performance that you would apply at any kind of large scale consumer delivery system. >> Do you custom-build, a fraud prevention application for each customer? Or, is there a template and then some additional capabilities that you'll learn by running through their training data? >> Well, I think largely, there are business by business distinctions in the approach that these customers take to fraud detection. There's also business by business direction distinction in their current state. But, what we find is that the commonalities in the kinds of patterns and approaches that you tend to apply. So, you know... We may have extra data about you based on your behavior on the web, and your behavior on a mobile app. The particulars of that data might be different for Enterprise A vs Enterprise B, but this pattern of joining up mobile data plus web data plus, maybe, phone-in call center data. Putting those all together, to increase the signal that can be made available to a fraud prevention algorithm, that's very common across all enterprises. And so, one of the roles that we play is to set up the platform, so that it's really easy to mobilize each of these data sources. So in many cases, it's the customer's data scientist that's saying, I think I know how to do a better job for my business. I just need to be unleashed to be able to access this data, and if I'm blocked, I need a platform where the answer that I get back is oh, you could have that, like, second quarter of 2019. Instead, you want to say, oh, we can onboard that data in an agile fashion pay, and increment a little bit of money because you've identified a specific benefit that could be made available by having that data. >> Alright Mick, well thanks for stopping by. I'm going to send Andy Jassy a note that we found the silver lining to the Cloud (laughing) So, I'm excited for that, if nothing else, so that made the trip well worth while, so thanks for taking a few minutes. >> You bet, thanks so much, guys. >> Alright Mick Bass, George Gilbert, Jeff Frick, you're watching theCube, from Data Platforms 2017. We'll be right back after this short break. Thanks for watching. (computer techno beat)

>> Announcer: theCUBE presents On the Ground. (light electronic music) >> Hello everyone, welcome to this special exclusive On the Ground Cube coverage here at Oracle's Headquarters. I'm John Furier the host of theCUBE, I'm here with my guest, Brad Tewksbury, who's the Senior Director of Business Development for the big data team at Oracle, welcome to On the Ground. >> Thank you, John, good to be here. >> So big day, Brad, you've been in this industry for a long time, you've seen the waves come and go. Certainly at Oracle you've been here for many, many years. >> Yeah. >> Oracle's transforming as as a company and you've been watching it play out. >> Brad: Yeah. >> What is the big thing that's most notable to you that you could illustrate that kind of highlights the Oracle transformation in terms of where it's come from? Obviously the database is the crown jewel, but this big data stuff that you're involved in is really transformative and getting tons of traction. With the Cloud Machine kind of tying in, is this kind of a similar moment for Oracle? Share some thoughts there. >> Yeah I think there's many, if you look at the data management path from going back to client server to where we are today, data has always played a pivotal role, but I would say now every customer is going through this decision making process where they're saying, "Ah-ha data I'm being disrupted by all different companies." Before it was you know, okay I got my data in a database and I do some reporting on it and I can run my business, but it wasn't like I was going to be disrupted by some digital company tomorrow. >> Cause the apps and the databases were kind of tied together. >> They were tied together and things just didn't move as fast as they do today. Now it's in these digital-only companies, they realize that data is their business, right? I think one of the pivotal things that we've been doing some studies with MIT is that 84% of the SMP value of some of these companies comes from companies that have no assets, right? Just data, so like UBER doesn't own any taxis. Airbnb doesn't own any hotels, yet they've got massive valuation, so companies are starting to freak out a little bit and they're starting to say, "Oh my god, I got to leverage my data." So the seminal moment here is saying, "How do I monetize my data?" Before it wasn't this urgency, now there's a sense of like I got to do something with this data, but the predicament they're in is, especially these legacy companies is they've got silos of stuff that's not talking to each other, it's all on different versions and different vendors. >> Well, Oracle's always been in the database business, so you made money by creating software to store data. >> Brad: Right. >> Now it sounds like there's a business model for moving the data around, is that kind of what I'm getting here? So it's not just storing the data software, store the data, it's software to make the data. >> Brad: Yeah. >> Accessible. Yeah, it's three things, I think it's three things. It's ingesting the data, right, from new sources outside of the company, so sensors and social media, right that's one thing. Secondly, it's then managing the data, which we've always done, and then the third thing is analyzing it, so it's that whole continuation and then what's happened here is the management platform is expanded. It's gone from just a relational base to this whole SEQUEL world and this Hadoop world, which we completely support. By no means is this relational a zero-sum game, where it's relational or nothing at all, it's we've expanded the whole data management platform to meet the criteria of whatever the application is and so these are the three data management platforms today, who knows what's going to come tomorrow, we'll support that as well, but the idea is choose the right platform for the application and what's really becoming about is applications, right? And this data management stuff is obviously table stakes, but how do I make my applications dynamic and real-time based on what I have here? >> Four years ago, and CUBE audience will remember, we did theCUBE in Hadoop World, that's called back then before it became Strata Hadoop and O'Reilly and Cloudera Show, but Mike Olson and Ping Lee said, "Oh we have a big data fund," so they thought there was going to be a tsunami of apps, never really happened. Certainly Hadoop didn't become as big as people had thought, but yet Analytics rose up, Analytics became the killer app. >> Brad: Yeah. >> But now we're beyond Analytics. >> Brad: Yeah. >> The use of data for insights, where are the apps coming from now? You had Rocana, here we had Win Disk Scope providing some solutions, where do you guys see the apps coming from? Obviously Oracle has their own set of apps, but outside of Oracle, where are the apps? >> So yeah, it's an interesting phenomena, right? Everyone thought Hadoop is the next great wave and the reality is if you go talk to customers and they're like, "Yeah, I've heard of it, but what do I do with it?" So it's like apps are like what's going to drive this whole stack forward and to that end, the number one thing that people are looking for is 360 view of customers, they all want to know more about customer. I was talking with a customer who represents the equivalent of the Tax Bureau of their county and instead of putting the customer, it's the taxpayer or the customer's at the center and all the different places that you pay taxes, so they want to have one view of you as the taxpayer, so whether you're public entity, private, the number one thing that the apps that people are looking for is show me more about customer. If I'm a bank, a retail, they want to cross-sell that's the number one app. In telcos, they want to know about networking. How do I get this network? I want to understand what's going on here so I can better support my Support Center, but secondary to that we're in this kind of holding pattern. Now what are the next set of apps and so there's a bunch of start-ups here in Silicon Valley that are thinking they have the answer for that and we're partnering with them and opening up a Cloud Marketplace to bring them in and we'll let customers decide who's going to win this. >> Talk about Rocana and their value proposition, they're here talking to us today, what's the deal with Rocana? >> So Rocana is an interesting play, what they have found is that customers, one of the ways they talk about themselves, is they offer a data warehouse to IT. So if I'm the IT guy, I want to go in and have basically a pool of all kinds of log analysis. How's my apps running, do I need to tune the apps? How's the network running, they want a one bucket of how can my operation perform better? So what we've seen from customers is they've come to us and they've said, "okay, what have you got in this new space "of Hadoop that can do that?" Look at log analysis and all kinds of app performances from a Hadoop perspective. They were one of the people, the first persons to answer that, so they're having great success finding out where security breaches are, finding out where network latencies are, better like I said, looking at logs and how things co6uld run better, so that's what they're answering for customers is basically improving IT functions, right, because what's happening is a lot of business people are in charge, right, and they're saying, "I no longer want "to go to IT for everything, I want to be able to just go to basically a data model and do my own analysis of this, "I don't want to have to call IT for everything." So these guys in some way are trying to help that manta. >> Talk about Win Disk Scope, what are they talking about here and how is their relationship with Oracle? They're speaking w6ith us today as well. >> Yeah, so you know, in this big data world what we're seeing a lot of is customers doing a lot of what we call a lab experiment. So they got all this data and they want to do lab experiments, okay great. So then they find this nugget of okay, here's a great data model, we want to do some analysis on this, so let's turn it into a production app. Okay, then what do you do, how do you take it to production? These are the guys that you would call. So they take it into an HA high-availability environment for you and they give you zero data loss, zero down time to do that. One of the things that Oracle's, we're touting is the differentiator in our Cloud is this hybrid approach where you have, you know, you could start out doing test-dev in the Cloud, bring it back on Primm, vice versa, they allow you to do that sync, that link between the Cloud and on Primm. We work today with Cloud Air, we OEM them in our big data appliance, if the customer has Hortonworks, but they also want to work with our stuff, their go-between with that as well. So it's basically they're giving you that production-ready environment that you need in an HA world. >> Brad, thanks for spending some time with us here On the Ground, really appreciate it. >> Yeah. >> I'm John Furier, we're here exclusively On the Ground here at Oracle Headquarters, thanks for watching. (light electronic music)