>>Bach from Las Vegas. It's the cube covering AWS executive summit brought to you by extension. >>Welcome back and good morning. Welcome to the cubes live coverage of the Accenture executive summit here at AWS reinvent. I'm your host, Rebecca Knight. We are joined by pre-saved Sanker and he is the senior managing director global lead intelligent cloud infrastructure. Welcome back on the queue. Thanks so much for coming on. And Larry soccer, global managing director infrastructure services domains and strategy. Thank you so much. So we're talking today about hybrid cloud, the best of both worlds. As we say on the cube. It's a multicloud world. But I want to start with you Prisaad. What is driving clients to move to the cloud? What are you hearing from CEOs? What keeps them up at night? >>So I think, you know, you've got to a point with our clients where they're really trying to get the power of the cloud to the enterprises. So there are multiple things that they're trying to do. First, they're trying to really get the innovation that cloud provides in driving their digital transformation. The second is taking advantage of the cost savings that cloud can provide. So there are multiple aspects of how they use cloud. The first would be using SAS type applications. So for example it is faults.com or Workday and things like that. The second is using the power of providers like AWS really to drive what they can do from cloud native perspective in building new applications. And the third is just taking existing applications that aren't legacy and either re hosting them or refactoring them as an adjusting them to some extent and then hosting them on again, clouds like AWS. So that is a multiyear journey that all our clients are on. And you know, as Accenture we're helping them identify what needs to go first, what needs to go next and help them in that journey. >>And what is, what is the compelling force? Is it that they want to save cut costs? Is it that they want to be more innovative and they view this innovation in the cloud as the key to it? >>It's a combination of both. It's innovation is absolutely number one. Secondly, it is speed to market. The ability to get your product out there very quickly is second and the third is at the end of the day, you know data centers are going to go away and we're going to all recite in the cloud in some form or fashion, whether it's public or private. And which is why this whole topic of hybrid and multi-cloud is becoming so important today. >>So Larry, why hybrid cloud though? Why? Why can't we just go all in on private and public? Sorry. >>Interesting. I mean the, the real driver and Prisaad touched on it there. The real driver to get to, to AWS and to, to the hyperscalers really is around the innovation cycles. You know the passes, the services that they can do and that drives innovation. The speed to, to get there as important, it gives you a way of quickly scaling, which you know, if I really want to build out an application fast, a great way to get there and is obviously the consumption economics. How do I shift from cap ex topics? So that's driving the cloud native that push into, into the wallet of public. At the same time, our clients do have a number of requirements that really make them look and rethink and figure out how to evolve their data centers first. The first ones were regulatory, so you think about when you were the pharmaceutical GXP compliance, HIPAA in the healthcare side of things, you know, GDPR, so I've got companies that regulate that regulatory. >>What was perceived as a barrier, particularly in some of the more difficult regulatory environment and while the public providers are really evolving and starting to get better regulatory posture is at the same time a lot of our clients were making investment and decide, Hey, how do I really build my private cloud? I'm another big driver that people continue to look at private clouds, whether they're in their data centers or increasingly moving Nikolas is to scale up architectures like high terabyte HANA. If I want a 64 terabyte HANA deployment, while while the AWS footprints get bigger and bigger, sometimes just performance and tuning for those high scale an environment is a big deal. Article article racks, a great example where it's not only do you have something in a highly tuned environment but be given, given some of the licensing arbitrage stuff, it makes it extremely difficult. >>And in a big part of it is data gravity. If I've got these big data sets, if you think about fraud analysis in Hadoop clusters for credit card processing, where I've got high terabyte HANA database, I've got 20 or 30 applications that need to access that data. I can't really put it over a wide area network due to latency. And you know, the cost of moving data around. So what you ultimately end up with is applications clustered around lakes, big pockets of data. And I think that's where we're ending up. And that will be across a hybrid architecture. So that's, we call it, you know, as you look at balancing your apps and your data across public private solutions. That's why we view hybrid as the way that most of our clients are going, given the scale and the amount of applications and data they have. So that's what we refer to as the best of both worlds for hybrid. >>So I saw you nodding a lot. Allow what he was saying for sod. How do you, I mean, as you said, it's a balancing act in terms of how you set your strategy. How do you recommend companies go about thinking in terms of how they allocate their, their cloud? >>Yeah, so I think, you know, we have particular really, really take an application centric approach. Um, you know, I'll go back a couple of years, uh, when our clients were really looking to, uh, really use the public cloud and then they've signed up with one or more public cloud providers and then they, you know, move some applications and then some of them have actually taken a step back. In fact, there's a very global investment bank that I've been working with, um, who, who are taking that approach initially. And now what they've done in working with us is taking a very application centric approach. So we studied their entire suite of applications, understand from a regulatory perspective, from a compliance perspective, from a perspective of security. And this is a global bank. So there are different rules in Europe versus the United States. And so on. So based upon all that we come up with an approach on ward should reside in a private cloud as opposed to orchard resided in a public cloud. >>And you know, obviously there are multiple providers that are reasons to go with more than one cloud from a public perspective, et cetera. So we advise them on that. And then once we're able to do that, then we chart the journey on, you know, what application gets moved and when, and certain applications are very important to them from a performance perspective and they need to scale up and so on. So in those cases, you know, we treat them differently in certain other application cases, you know, we moved them onto a pass and in some other cases, you know, we just move these application into new what's available from a SAS perspective. So really it's a very much an application centric approach on where the workloads, >>is it a living and breathing thing. I mean, we talk about cloud being this journey. It's not a destination. Does this change over time? I mean, it absolutely does. I mean, it's constantly evolving. You know? Did you date or patterns are coming out there? And it was interesting like if you have, a couple of years ago, all we talked about was the app. How are you going to modernize this six or seminars when you get re-imagined in there. But all of a sudden a lot of the conversation shifting, shifting to my data strategy, where did this data reside? Particularly as the data sets get larger and that's moving from what was very centralized in the public data centers into much more distributed architecture. So we see it evolving very quickly. And even with a single application, a great example with a global hotel, they had a reservation system that was strategic application running on an old IBM mainframe. >>They were finding it was just taking too long to get innovative and agile to really support the new mobile applications, their web channels. So they looked at the, Hey, if I were just re-imagine, rewrite this, you know, go put it up in Amazon hot, how long would it take? How much would it cost? They found it was even going to be two or three years and they didn't have the luxury to wait, so they basically wrap that application with API APIs. They expose it with microservices and then developed a cloud native front end with the database cache new technologies that they can now drop every three or four days. They can now get a new mobile application, so you've got agile delivery, they've still got the legacy stuff there. The data's still there now. Now when you go against their web and mobile application, you, you're actually browsing against that new cloud native, you know the database cache. >>When you look at rates and rooms, et cetera, it's only when you transact and reserve the room that it goes back to the main frame. So you agile delivery, they get a lot of the benefits there and then they can offload a lot of the processing on the mainframe. It's only read all the reads up front now and slowly deprecate that over time. Now they, they're now that very interesting hybrid deployment architectures. They, they have a container approach. This database caches, they have two clusters. Those containers running on private cloud, on VMware, and then one running in AWS so they're now can optimize across the public and or hybrid footprint. You know how they do this over the time they then look to evolve that application and started an introduce serverless. So starting to take advantage of Lambda. So there even within a single application you can see it's constantly evolving. They starting in an advantage of the next evolution. So the next one to move beyond containers into more serverless. >>So I mean you both have just given me terrific examples. Your years in financial services, years as a, as a hotel chain. How do you develop best practices? I mean when you're working with clients or really is it case by case? I mean you talked about the decisions and the allocation of cloud. Of course there are regulatory constraints for each company, but are there industry wide best practices? Absolutely. Absolutely. >>I do want to hear, sure. So I'll start with financial services as an example. So if you take the world of banking or insurance, there's obviously, you know, regulatory requirements, compliance requirements that they have to look at. And also if you look at, for example, in banking, a lot of it is very mainframe based. You know, they have very old core banking systems, which is not possible to really move all of that onto public cloud necessarily. And maybe the business case isn't even there. So we have to take a digital decoupling type of approach and figure out, you know, how do we take some of the best bits and then put that on public cloud while still keeping some of the major amount of data is still on the legacy side. So I think it's really an industry specific approach, which on top of which you have to layer on what the local requirements are. >>Yeah, absolutely. I mean, so I spent a lot of work with the life sciences department ceuticals and GXP compliance rules the day there. So how did they start to, they started off, you know, how do we get to private clouds that look and feel a lot like public and then start to move and test the test the waters as they start to migrate into the AWS as a little world. So it is very regular industry specific. So we've, we basically developed a library of this is how you know, this is how you solve for banking, you know, the retail bank on a mainframe, how do I do similar pattern to that hotel front ends. Reinsurance is actually very similar to a lot of, lot of the logic on mainframe. It doesn't make sense to rewrite. There's not enough value in that if I can wrap it in microservices and move out. So that clouds, I mean their roadmaps, obviously every given the scale and complexity of our clients, everyone's going to be slightly different. But they're patterns that are very industry specific. And it gets getting even more interesting as we start to get in, move into IOT and edge. Because when you get into like the, the connected oil and gas or connected mine, all of a sudden it becomes extremely verticalized in industry and industry. >>So the hybrid Creek solves a lot of problems, but I imagine it also creates some other challenges too. What are the challenges and how do you counteract them? Do you want to start Larry? >>Yeah, sure. I mean it's not just hybrid. I think it's, we have much more complex architectures. So with all the power of digital decoupling, you know, creating microservices architectures, being able to pick best of breed services as everything becomes much more dynamic and ephemeral. So we moving for a world where a server in a virtual machine would be up for like 12 months or 15 months to containers that have lifespans of minutes or hours or even seconds now managed in a much more dynamic way with Kubernetes. So that that hotel was 15,000 containers managed by Kubernetes optimized over that environment and even more with serverless. So you've got a very complex environment to manage. And I think as our clients start to really evolve that the application portfolios, you know, SAS cloud, native wrapping legacy, the ability to then seamlessly manage across that environment and optimize and, and even the optimization in the old days we used to optimize around one or two dimensions was a cost or performance and SLA is now we've got to simultaneously take this very complex environment and optimize across performance, service levels, security, compliance and cost. >>So it's not just about cost optimization and they offset each other. If I'm optimizing for performance and service levels, my cost probably goes up. So it becomes a very complex problem. So spend a lot of time looking first. First starting with the operating model, you'd got to operate differently. How do you really get dev sec ops involved so that operations and security baked in, right? When you do the analysis so you're not building something that can't be secure operated and then really transforming the people, right? I mean the one of the hardest thing and place where our clients struggle the most is how do they upskill their organization, change the culture, the behavior. Because great example is we look at how we operate cloud and infrastructure. We want to turn all operators from eyes on glass looking at consoles into developers who are writing the next analytic algorithms to figure out predictive operation, to doing the automation script, to take, to remove mistakes, streamline drive agility, and reduce costs. And ultimately to tune the AI engines that are going to need it to do that. Complex optimization across very, very, very complex architectures. >>So you're talking about the people and the change management. I want to ask about innovation within Accenture and AWS. We heard Andy Jassy this morning in his fireside chat talk about how the company is now obviously a ginormous company, but how it really still has this startup mentality and how and how and what he does to ensure that innovation is still a priority, a relentless focus on the customer, de-centralized nature of the organization. Really focusing on what you're good at, knowing what's in your wheelhouse, how do you think about innovation and hadn't then how do you help clients make sure that they are bringing people along and as you said, give, giving them the sort of developer mindset. Do you want to, >>yeah, so that's absolutely important for us, innovation is very much part of our culture. When I look at my own group, which is intelligent cloud and infrastructure, what we do is we have 30,000 people who are working everyday at our clients and in many ways they understand the client's landscape even better than anybody else because they're working there every day. So some of the things that we do with our clients, our innovation forums where our people bring forward ideas to suggest to clients. So this is something that we do on a regular basis, take it to our clients, CEOs, and invariably several of these ideas actually get put into their whole plan for the following year. So we go innovate with our clients. We've created several digital studios and liquid studios in multiple locations. We've got several of them across the globe. So we bring our clients in for design thinking workshops, suggest ideas and you know, and await with them on things that we can take forward. >>Yeah, and just just to further that, I mean we've always driven it an innovation agenda. We always try and figure out what's next, where do we invest? What's the next bet? I mean, even going back to our cloud first days, I mean we've always been pushing the envelope. I think what Prisaad hit on is a really a step change for us in how we engage. I think in the past we'd come in as the consultants present, et cetera. And I think our clients are bright people. So actually engaging with them and more design thinking. I, we acquired a bunch of digital studios, Fjord and stuff, and I think they've infused this culture of coasts, co-sourcing, collaboration, and creating together. And the dynamic just changes and it's fantastic when the client then is in the room. They own it with you, they close, co-creating. And I think we've been spending a lot of time on how do we transform how we interact and engage with our clients in a much more collaborative way. And it's really changed the changes your relationship with them >>and the technology enables that to Larry and Priscilla, thank you so much for coming on the cube. A really great conversation. Thank you, Rebecca. I'm Rebecca night's stay tuned for more of the cubes live coverage of the Accenture executive summit. Coming up in just a little bit.

>>Bach from Las Vegas. It's the cube covering AWS executive summit brought to you by extension. >>Welcome back everyone to the cubes live coverage of the Accenture executive summit here at the Venetian in Las Vegas. We are part of AWS reinvent. I'm your host, Rebecca Knight. We are joined by two guests for this segment. We have Prisaad Sanker and he is a senior managing director global ICI lead. Thank you so much for coming on the show. Personal and Larry soccer, global managing director ICI offerings. Thank you so much for coming on Larry. So present to minister with you this week marks the one year anniversary of intelligent cloud infrastructure, a group that you lead at Accenture. Tell us a little bit more about, about, first of all why this group was formed and the journey you've had this year, the highest, the highs and lows. >>Sure, sure. So first, first of all, thank you for having us. Um, so as you mentioned, December 1st will be one year of having formed this group. And the reason we did that was because all of our clients are going through a journey of digital transformation. And it's very important for us to be able to support that journey. So there are different elements that we have to bring together around cloud as well as infrastructure. So we brought together this group, which was actually in different parts of Accenture as one particular group, and we call it intelligent cloud. And infrastructure consists of 30,000 people pretty much in every part of the world supporting all different industries. And this is a way for us to bring together not just cloud computing, but also areas like networking, workplace, digital, other digital businesses that we need to be able to support in order to be able to help our clients through their journey of transformation. >>So this, this group was formed at a time of tremendous change and upheaval and the landscape. Talk to us a little bit about, we hear so much about digital transformation, our company's ready. What's the, let us into the client mindset. >>Yeah. So what happens is, you know, different industries obviously are progressing at different speeds. All of our clients are always worried about being disrupted within their industries, either by an existing competitor all by a completely new competitor that doesn't exist. You know, all the stories about, you know, the big companies that existed and almost vanished overnight. So that's something that keeps CEOs and CIO is awake at night just worrying about that. And so digital transformation is very important for them to be relevant to their client. It's all about bringing new products to their clients and also the speed with which they can actually do that. It's no longer enough to be a fast follower. You have to be an innovator. And cloud is the way that this innovation will happen for our clients. And so it's very important for us to be able to bring our group together. We are able to support that journey for our clients. Leary >>want to bring you into this conversation a little bit. It'd be what will be required for enterprises to make this big transition. I mean, he was talking about how you need to be an innovator. You can't just be a fast follower. >> Well, I mean a lot of times I look at it just given the size, the scale of most of our clients who are really up market, most of them don't have the option to just do a rip and replace and just reinvent themselves completely. So it really is how do I very rapidly modernize and transform my business to take advantage of it? And it really needs to start with your application landscape and end data. So how do I start to look at all the possibilities of the AWS is and start to re-imagine, reinvent Duke, use cloud native technologies. Also a significant amount of their estates are already running in legacy environments. >>We get the mainframe or other environments. How do you digitally decouple those so that you can extract value out of that? And ultimately those decisions of apps and data that are going to drive cloud deployments and architectures and data gravity really becomes the key decision factor to decide where do I place this day? And it was a great example today if you saw Jesse's keynote, he announced Achla where they're actually starting to look at how do I move compute and the processing closer to the actual datasets. So actually inverting the problem and moving closer to the data. And then we see that trend starting to proliferate on the other part of the keynote that was very interesting was the five G announcement. And first you heard about AWS pushing into local zones where they were getting much distributing it out closer to them, reduce latency and really starting to push out. >>So ultimately we seen the whole landscape being transformed by data, these new application architectures and where that data resides and out to traditional world that we've known of hybrid with public and private is really transforming with the Amazon outputs, with the BMCs and stuff like that into much more one about shared and dedicated infrastructure. Then the big, the next real big thing that starts to happen then is this whole explosion of IOT. So as price performance goes down with Moore's law, we can start to see a lot more cost effective IOT solutions. And all of a sudden a world that was very centralized, you know, running up in the, in the world of the Amazons had the public cloud is not going to be much more distributed to a lot more of that compute over time gets moved out there. So we've seen a very rapidly evolving landscape. Apps and data are ultimately driving our cloud clients cloud and infrastructure investments. And they're really just trying to figure out how they can rapidly transform their environments to take advantage of this new landscape. >> So both of you are describing this exceedingly complex environment that is changing dizzying speed. I mean, just even this morning, but the Andy Jassy on stage for three hours with all of the new products and services that AWS has coming out with. What is AWS? What is ICI and Accenture doing to help clients navigate this, this, this, this landscape? Prisaad you know, our >>team is, it's not just enough for infrastructure and cloud to be a horizontal function as it used to be. We feel that, you know, one of the things that Accenture really brings to the table is our industry differentiation. Spent a lot of time analyzing the industries that our clients are in. So we've actually changed the team of ICI to be three different things. The first is to be industry led, so it's no longer good enough to be a horizontal function. We have to understand the needs of each industry and really look at how cloud and infrastructure will support that industry. The second is all about intelligence. And Larry just talked about the proliferation of data, but it's also bringing artificial intelligence, making networks much more smart, you know, really infusing intelligence into everything we do. And the third is the concept of being invisible because our clients are expecting infrastructure to just be there all the time. >>They don't really have to understand how it works, but it has to be there. It's just like going to into room and turning on a switch and you expect electricity to be there. So infrastructure has to be very much like, because it has to be ubiquitous, it has to be just available all the time. So those are the things that we are trying to bring to our clients to make it very specific for and very industry specific for for our clients. And this goes into areas like cloud computing. It goes into 5g edge is going to be a big part of what is going to happen in various industries. And as Larry talked about, IOT devices are going to be just proliferating. It's going to be billions of IOT devices. There's trillions of dollars being spent. In fact, I think the spend on IOT is probably bigger than any other area that I have seen probably in my working lifetime. So it's going to be an exciting time to come for us. >>I mean, we tend to think about artificial intelligence as this futuristic Jetsons kind of thing, but really it's, it's here. And now, Larry, can you talk a little bit about how companies are using AI and having an impact already on their businesses? I mean obviously you see a lot of AI being used for different use cases. We saw some great examples today in Jesse's keynote and we're seeing a use for video analytics for example. And AI to try to figure out predictive maintenance type activity. So there's obviously a lot of business use cases. I think what's interesting from our perspective as well is a lot of the operational use cases. So if you take a look at it with all these new innovations, the rapid pace of change that we're seeing with cloud infrastructure, that application landscape, we've started to rely pretty heavily first on analytics to how do we, how do we figure out what's going on, how do we operate efficiently, how do we make sure we don't put the businesses grist, you know, really pivoting from reactive to proactive and predictive operations. >>We've obviously automated everything as much as we can. I've see AI actually playing a very interesting role in how we optimize these environments over time. So as you get a much more complex environment, much more dynamic, and with containers, Coobernetti's, serverless compute dynamic networks that Prisaad was talking about with software defined networking, AI is going to be the only way we can tune and optimize that over time. So you've obviously got all the business use cases that we see in healthcare that we see in mining, predictive operations and stuff like that. But how we actually use AI internally is going to be critical to how we actually be able to manage cloud and infrastructure and really optimize it over time. >>W what is the client? What's, what's on your minds of your customers right now? We know that only 20% of companies out there have really adopted the cloud. Two thirds have really yet to capture the benefits of the cloud. What are you hearing from them? What are they saying to you? What are their pain points? >>So I think, you know, all of our clients realize that ultimately the cloud is going to be where they will be at. You know, data centers are existing today, but at some point, you know, everybody's going to move to the cloud. Most of our clients have taken the easier workloads and you know, the easy part has already been done. That's the first 20% but 80% of the work still remains. And that's the more complicated work that has to come. So they're looking to us to give them the right solutions. And then there's a variety of other factors to be considered. For example, they have to look at security issues. They have to understand that, you know, there are data privacy aspects to be considered. So really it's a question of matching the right private and public options. And as Larry also mentioned, probably only 30 40% of the data will actually sit in the central cloud. Most of the other data is actually gonna move out to the edge with IOT devices and so on. So data gravity, where does your dataset, where does your compute sit? And Andy talked about it as well today in his keynote address. These are all things that are going to keep evolving and I think that's going to really change the landscape. >>I think they, I think they all see the power of cloud. I mean, which in my mind it's really around the innovation cycles. You know, what you look at the pace that they're innovating with with RDS and Redshift. So they all see that power. I think the biggest thing, they struggle with our skills. And culture because how do you upskill, retrain the organization, everything from the new technologies, how to architect in the new world where it's very ephemeral, dynamic, a serverless world. How do you start to adopt those technologies? How do you operationalize it? How do you go beyond just agile and really do true dev sec ops where you're integrating security and operations built in from the ground floor. And a lot of times he's a cultural change is one of the things we see in cloud and infrastructure operations for example, is how do you take develop operators who used to be eyes on glass, looking at console's turn them into developers where they, you know, they're writing the next analytic algorithms to get to predictive there they're automating automation scripts to improve operations and ultimately tuning the AI engines that optimize it. >>And I think that skills and culture barrier is probably the hardest thing for them to overcome. And how do you just, you can't just go to the cloud, you've got to behave differently. It really have to transform how you use it, how you operate and really transform the organization and culture. >>So these change management challenges, where do you even start? Because as you said, the adopting the technology is almost the easy part, or at least the most straightforward, but really getting everyone on board and really changing people's mindsets and mentalities and dispositions and the way that they collaborate with each other and collaborate cross-functionally. So what have you learned within ICI to, to help companies? And what's your advice? >>I think, I think there are three aspects that you have to get right. In fact, I was talking to one of the CEOs of a very large client of ours, and I think you have to get three things right and you've got to get them aligned and moving at the same time. The first obviously is the technology. So you have to understand what makes sense for you, for your industry. Make the right bets because if you make a wrong decision, then you know you're going to set yourself back. So getting the technology right obviously is important. The second is operating model, making sure that you get that the right operating model in place and kicked off right, right upfront. And the third, like Larry said, is transforming your workforce. So making sure that people are, you know, have all the right skill sets when you actually have the operating model and the technology ready. So it's very important to bring all those three aspects together and a company like Accenture, with our background around consulting, around change management, around technology, we're uniquely positioned understanding our client's industries and really bringing all of those three aspects together so that we're able to position our clients to take that journey forward. >>Larry, in terms of next year's Excenture executive summit, look into your crystal ball. You've already talked about a lot of emerging technologies, IOT, edge computing have talked a lot about AI. Of course. What do you think are going to be the hot topics? Looking ahead this this year in ice with an ICI, you >>touched on earlier, I think everyone's going to be talking about data gravity. As you get these bigger and bigger data sets, it becomes, you know, the network's always going to be the bottleneck. So even with Moore's law, stretching from 18 months to 24 the amount of data we produce, particularly with IOT and edge, is really going to transform things. And even though we've got massive network upgrades like 5g coming along, it will never be enough. I mean, that comes along every 12 years. We're seeing a doubling of price performance who competed? I think data gravity, you can start to see a very different landscape where it used to be public and private and now edge is really going to be obliterated to much more seamless architecture. Then there was a lot of the keynote today, and if you start to take a look at local zones and some of the announcements today, they were ready. Amazon was heading there with green Greengrass so you can have much more seamlessness. And how do I get compute closer to the processing? You're gonna be talking a lot about clustering, clustering, compute around datasets versus the other way around. So I think we're gonna see, and I think that's going to happen pretty fast. Usually a lot of this stuff we've been talking about IOT for years. I do think we're on the tipping point. I think we're about to see exponential growth just as price performance >>comes together. Some of the technologies had gotten gotten there, but, but I think that the whole focus on data and data gravity is what you're going to hear a lot about next year. I can't wait to hear the AWS reinvent band. Do a little pink Floyd or something like that for data gravity. We'll Larry and Prisaad. Thank you so much for coming on the cube. It was a pleasure having you on. Thanks for Brooke. I'm Rebecca night's stay tuned for more of the cubes live coverage of the Accenture executive summit.