>>Welcome back to the aria in Las Vegas, Dave Valante with Dave Nicholson, Falcon 22, the Cube's continuous coverage. Sean Henry is here. He's the president of the services division and he's the chief security officer at CrowdStrike. And he's joined by Kevin mania, CEO of Mandy. Now part of Google Jens. Welcome to the cube. Thank you. Congrats on closing the Google deal. Thank you. That's great. New chapter, >>New >>Chapter coming fresh off the keynote, you and George. I really en enjoyed that. Let's start there. One of the things you talked about was the changes you've been, you've been in this business for a while. I think you were talking about, you know, doing some of these early stuff in the nineties. Wow. Things have changed a lot the queen, right? Right. You used to put the perimeter around the queen. Yeah. Build the Mo the Queen's left or castle new ballgame. But you were talking about the board level knowledge of security in the organization. Talk about that change. That's occurred in the last >>Decade. You know, boards are all about governance, right? Making sure everybody's doing the right things. And they've kind of had a haul pass on cybersecurity for a long time. Like we expect them to be great at financial diligence, they understand the financials of an organization. You're gonna see a maturity, I think in cybersecurity where I think board members all know, Hey, there's risk out there. And we're on our own to kind of defend ourselves from it, but they don't know how to quantify it. And they don't know how to express it. So bottom line boards are interested in cyber and we just have to mature as an industry to give them the tools they need to measure it appropriately. >>Sean, one of the things I wanted to ask you. So Steven Schmidt, I noticed changed his title from CISOs chief inf information security officer, the chief security officer. Your title is chief security officer. Is that a nuance that has meaning to you or is it just less acronym? >>It depends on the organization that you're in, in our organization, the chief security officer owns all risks. So I have a CISO that comes underneath me. Yep. And I've got a security folks that are handling our facilities, our personnel, those sorts of things, all, all of our offices around the globe. So it's all things security. One of the things that we've found and Kevin and I were actually talking about this earlier is this intersection between the physical world and the virtual world. And if you've got adversaries that want gain access to your organization, they might do it remotely by trying to hack into your network. But they also might try to get one of your employees to take an action on their behalf, or they might try to get somebody hired into your company to take some nefarious acts. So from a security perspective, it's about building an envelope around all things valuable and then working it in a collaborative way. So there's a lot of interface, a lot of interaction and a lot of value in putting those things together. And, >>And you're also president of the services division. Is that a P and L role or >>It is, we have a it's P P O P and L. And we have an entire organization that's doing incident response and it's a lot of the work that we're doing with, with Kevin's folks now. So I've got both of those hats today. >>Okay. So self-funded so in a way, okay. Where are companies most at risk today? >>Huh? You wanna go on that one first? Sean, you talk fast than me. So it's bigger bang for the buck. If >>You >>Talk, you know, when I, when I think about, about companies in terms of, of their risk, it's a lot of it has to do with the expansion of the network. Companies are adding new applications, new devices, they're expanding into new areas. There are new technologies that are being developed every day and that are being embraced every day. And all of those technologies, all of those applications, all of that hardware is susceptible to attack. Adversaries are looking for the vulnerabilities they can exploit. And I think just kind of that sprawl is something that is, is disconcerting to me from a security perspective, we need to know where our assets are, where the vulnerabilities lie, how do we plug the holes? And having that visibility is really critical to ensure that you're you're in, involved in mitigating that, that new architecture, >>Anything you >>Did. Yeah. I would like when I, so I can just tell you what I'm hearing from CISOs out there. They're worried about identity, the lateral movement. That's been kind of part of every impactful breach. So in identity's kind of top three of mind, I would say zero trust, whatever that means. And we all have our own definitions of migration to zero trust and supply chain risk. You know, whether they're the supplier, they wanna make sure they can prove to their customers, they have great security practices. Or if they're a consumer of a supply chain, you need to understand who's in their supply chain. What are their dependencies? How secure are they? Those are just three topics that come up all the time. >>As we extend, you know, talking about XDR the X being extend. Do you see physical security as something that's being extended into? Or is it, or is it already kind of readily accepted that physical security goes hand in hand with information security? >>I, I don't think a lot of people think that way there certainly are some and Dave mentions Amazon and Steve Schmidt as a CSO, right? There's a CSO that works for him as well. CJ's clear integration. There's an intelligence component to that. And I think that there are certain organizations that are starting to recognize and understand that when we say there's no real perimeter, it, it expands the network expands into the physical space. And if you're not protecting that, you know, if you don't protect the, the server room and somebody can actually walk in the doors unlocked, you've got a vulnerability that might be exploited. So I think to, to recognize the value of that integration from a security perspective, to be holistic and for organizations to adopt a security first philosophy that all the employees recognize they're, they're the, the first line of defense. Oftentimes not just from a fish, but by somebody catching up with them and handing 'em a thumb drive, Hey, can you take a look at this document? For me, that's a potential vulnerability as well. So those things need to be integrated. >>I thought the most interesting part of the keynote this morning is when George asked you about election security and you immediately went to the election infrastructure. I was like, yeah. Okay. Yeah. But then I was so happy to hear you. You went to the disinformation, I learned something there about your monitoring, the network effects. Sure. And, and actually there's a career stream around that. Right. The reason I had so years ago I interviewed was like, this was 2016, Robert Gates. Okay. Former defense. And I, I said, yeah, but don't we have the best cyber can't we go on the offense. He said, wait a minute, we have the most to lose. Right. But, but you gave an example where you can identify the bots. Like let's say there's disinformation out there. You could actually use bots in a positive way to disseminate the, the truth in theory. Good. Is, is that something that's actually happening >>Out there? Well, I think we're all still learning. You know, you can have deep fakes, both audible files or visual files, right. And images. And there's no question. The next generation, you do have to professionalize the news that you consume. And we're probably gonna have to professionalize the other side critical thinking because we are a marketplace of ideas in an open society. And it's hard to tell where's the line between someone's opinion and intentional deception, you know, and sometimes it could be the source, a foreign threat, trying to influence the hearts and minds of citizens, but there's gonna be an internal threat or domestic threat as well to people that have certain ideas and concepts that they're zealots about. >>Is it enough to, is it enough to simply expose where the information is coming from? Because, you know, look, I, I could make the case that the red Sox, right. Or a horrible baseball team, and you should never go to Fenway >>And your Yankees Jersey. >>Right. Right. So is that disinformation, is that misinformation? He'd say yes. Someone else would say no, but it would be good to know that a thousand bots from some troll farm, right. Are behind us. >>There's, it's helpful to know if something can be tied to identity or is totally anonymous. Start just there. Yeah. Yeah. You can still protect the identity over time. I think all of us, if you're gonna trust the source, you actually know the source. Right. So I do believe, and, and by the way, much longer conversation about anonymity versus privacy and then trust, right. And all three, you could spend this whole interview on, but we have to have a trustworthy internet as well. And that's not just in the tech and the security of it, but over time it could very well be how we're being manipulated as citizens and people. >>When you guys talk to customers and, and peers, when somebody gets breached, what's the number one thing that you hear that they wished they'd done that they didn't. >>I think we talked about this earlier, and I think identity is something that we're talking about here. How are you, how are you protecting your assets? How do you know who's authorized to have access? How do you contain the, the access that they have? And the, the area we see with, with these malware free attacks, where adversaries are using the existing capabilities, the operating system to move laterally through the network. I mean, Kevin's folks, my folks, when we respond to an incident, it's about looking at that lateral movement to try and get a full understanding of where the adversary's been, where they're going, what they're doing, and to try to, to find a root cause analysis. And it really is a, a critical part. >>So part of the reason I was asking you about, was it a P and L cuz you, you wear two hats, right? You've got revenue generation on one side and then you've got you protect, you know, the company and you've got peer relationships. So the reason I bring this up is I felt like when stucks net occurred, there was a lot of lip service around, Hey, we, as an industry are gonna work together. And then what you saw was a lot of attempts to monetize, you know, private data, sell private reports and things of that nature you were referencing today, Kevin, that you think the industry's doing a much better job of, of collaboration. Is it, can you talk about that and maybe give some examples? >>Absolutely. I mean, you know, I lived through it as a victim of a breach couple years ago. If you see something new and novel, I, I just can't imagine you getting away with keeping it a secret. I mean, I would even go, what are you doing? Harboring that if you have it, that doesn't mean you tell the whole world, you don't come on your show and say, Hey, we got something new novel, everybody panic, you start contacting the people that are most germane to fixing the problem before you tell the world. So if I see something that's new in novel, certainly con Sean and the team at CrowdStrike saying, Hey, there's because they protect so many endpoints and they defend nations and you gotta get to Microsoft. You have to talk to pan. You have to get to the companies that have a large capability to do shields up. And I think you do that immediately. You can't sit on new and novel. You get to the vendor where the vulnerability is, all these things have to happen at a great rate to speak. >>So you guys probably won't comment, but I'm betting dollars to donuts. This Uber lapses hack you guys knew about. >>I turned to you. >>No comment. I'm guessing. I'm guessing that the, that wasn't novel. My point being, let me, let me ask it in a more generic fashion that you can maybe comment you you're. I think you're my, my inference is we're com the industry is compressing the time between a zero day and a fix. Absolutely. Absolutely. Like dramatically. >>Yes. Oh, awareness of it and AIX. Yes. Yeah. >>Okay. Yeah. And a lot of the hacks that we see as lay people in the media you've known about for quite some time, is that fair or no, not necessarily. >>It's, you know, it's harder to handle an intrusion quietly and discreetly these days, especially with what you're up against and, and most CEOs, by the way, their intent isn't, let's handle it quietly and discreetly it's what do we do about it? And what's the right way to handle it. And they wanna inform their customers and they wanna inform people that might be impacted. I wouldn't say we know it all that far ahead of time >>And, and depends. And, and I, I think companies don't know it. Yeah. Companies don't know they've been breached for weeks or months or years in some cases. Right. Which talks about a couple things, first of all, some of the sophistication of the adversaries, but it also talks about the inability of companies to often detect this type of activity when we're brought in. It's typically very quickly after the company finds out because they recognize they've gotta take action. They've got liability, they've got brand protection. There, whole sorts of, of things they need to take care of. And we're brought in it may or may not be, become public, but >>CrowdStrike was founded on the premise that the unstoppable breach is a myth. Now that's a, that's a bold sort of vision. We're not there yet, obviously. And a and a, and a, a CSO can't, you know, accept that. Right. You've gotta always be vigilant, but is that something that is, that we're gonna actually see manifest, you know, in any, any time in the near term? I mean, thinking about the Falcon platform, you guys are users of that. I don't know if that is part of the answer, but part of it's technology, but without the cultural aspects, the people side of things, you're never gonna get there. >>I can tell you, I started Maning in 2004 at the premise security breaches are inevitable, far less marketable. Yeah. You know, stop breaches. >>So >>Yeah. I, I think you have to learn how to manage this, right? It's like healthcare, you're not gonna stop every disease, but there's a lot of things that you can do to mitigate the consequences of those things. The same thing with network security, there's a lot of actions that organizations can take to help protect them in a way that allows them to live and, and operate in a, in a, a strong position. If companies are lackadaisical that irresponsible, they don't care. Those are companies that are gonna suffer. But I think you can manage this if you're using the right technology, the right people, you've got the right philosophy security first >>In, in the culture. >>Well, I can tell you very quickly, three reasons why people think, why is there an intrusion? It should just go away. Well, wherever money goes, crime follows. We still have crime. So you're still gonna have intrusions, whether it has to be someone on the inside or faulty software and people being paid the right faulty software, you're gonna have war. That's gonna create war in the cyber domain. So information warriors are gonna try to have intrusions to get to command and control. So wherever you have command and control, you'll have a war fighter. And then wherever you have information, you have ESP Espino. So you're gonna have people trying to break in at all times. >>And, and to tie that up because everything Kevin said is absolutely right. And what he just said at the very end was people, there are human beings that are on the other side of every single attack. And think about this until you physically get physically get to the people that are doing it and stop them. Yes, this will go on forever because you can block them, but they're gonna move and you can block them again. They're gonna move their objectives. Don't change because the information you have, whether it's financial information, intellectual property, strategic military information, that's still there. They will always come at it, which is where that physical component comes in. If you're able to block well enough and they can't get you remotely, they might send somebody in. Well, >>I, in the keynote, I, I'm not kidding. I'm looking around the room and I'm thinking there's at least one person here that is here primarily to gather intelligence, to help them defeat. What's being talked about here. >>Well, you said it's, >>It's kind >>Of creepy. You said the adversary is, is very well equipped and motivated. Why do you Rob banks? Well, that's where the money is, but it's more than that. Now with state sponsored terrorism and, you know, exfiltration of state secrets, I mean, there's, it's high stake's games. You got, this >>Has become a tool of nation states in terms from a political perspective, from a military perspective, if you look at what happened with Ukraine and Russia, all the work that was done in advanced by the Russians to soften up the Ukrainians, not just collection of intelligence, not just denial of services, but then disruptive attacks to change the entire complexity of the battlefield. This, this is a, an area that's never going away. It's becoming ingrained in our lives. And it's gonna be utilized for nefarious acts for many, many decades to come. >>I mean, you're right, Sean, we're seeing the future of war right before us is, is there's. There is going to be, there is a cyber component now in war, >>I think it signals the cyber component signals the silent intention of nations period, the silent projection of power probably before you see kinetics. >>And this is where gates says we have a lot more to lose as a country. So it's hard for us to go on the offense. We have to be very careful about our offensive capabilities because >>Of one of the things that, that we do need to, to do though, is we need to define what the red lines are to adversaries. Because when you talk about human beings, you've gotta put a deterrent in place so that if the adversaries know that if you cross this line, this is what the response is going to be. It's the way things were done during nuclear proliferation, right? Right. During the cold war, here's what the actions are gonna be. It's gonna be, it's gonna be mutual destruction and you can't do it. And we didn't have a nuclear war. We're at a point now where adversaries are pushing the envelope constantly, where they're turning off the lights in certain countries where they're taking actions that are, are quite detrimental to the host governments and those red lines have to be very clear, very clearly defined and acted upon if they're >>Crossed as security experts. Can you always tie that signature back to say a particular country or a particular group? >>Absolutely. 100% every >>Time I know. Yeah. No, it it's. It's a great question. You, you need to get attribution right. To get to deterrence, right. And without attribution, where do you proportionate respond to whatever act you're responding to? So attribution's critical. Both our companies work hard at doing it and it, and that's why I think you're not gonna see too many false flag operations in cyberspace, but when you do and they're well crafted or one nation masquerades is another, it, it, it's one of the last rules of the playground I haven't seen broken yet. And that that'll be an unfortunate day. >>Yeah. Because that mutually assure destruction, a death spot like Putin can say, well, it wasn't wasn't me. Right. So, and ironically, >>It's human intelligence, right. That ultimately is gonna be the only way to uncover >>That human intelligence is a big component. >>For sure. Right. And, and David, like when you go back to, you were referring to Robert Gates, it's the asymmetry of cyberspace, right? One person in one nation. That's not a control by asset could still do an act. And it, it just adds to the complexity of, we have attribution it's from that nation, but was it in order? Was it done on behalf of that nation? Very complicated. >>So this is an industry of superheroes. Thank you guys for all you do and appreciate you coming on the cube. Wow. >>I love your Cape. >>Thank all right. Keep it right there. Dave Nicholson and Dave ante be right back from Falcon 22 from the area you watching the cue.

>> Announcer: From around the globe. It's the cube with coverage of Kubecon and cloud nativecon North America, 2020 virtual brought to you by Red hat, the cloud native computing foundation and ecosystem partners. >> Welcome to theCUBE, >> Coverage of Kubecon cloud nativecon 2020. It's virtual this year, though, theCUBE is virtual. This is theCUBE virtual I'm John Furrier your host. This is the segment where we kind of pre tease out the show for this year. We do a CUBE review and analyze and talk about some of the things we're expecting trends in the marketplace. And I'm pleased to announce a new CUBE co-host with me, Ali Amagasu, who's been part of theCUBE community since 2013, going back to the OpenStack days, which is now different name, but it's private clouds making a come back. But she's part of the cloud community, the cloud Harati, as we say, Ali, welcome to being a CUBE host. >> Thank you so much, John. It's a pleasure, it's been a while since we've hung out, but I do remember pestering you back in those days, and I've certainly stayed with theCUBE ever since then. I mean, you guys are an institution to put it. >> It's been so much fun, I have to say I had less gray hair. I didn't have glasses, I wear contacts. Now I have progressive vision, so I can't wear the contacts. They're hard for me, but it's been such a great evolution. And one of the things that's been really important to our mission has been to be kind of like an upstream project to be kind of open and be part of the community to be on the ground floor. We can't be there this year 'cause of the pandemic, but it's been great and about a few years ago, Stu Miniman and I were seeing that we had a great community of people who wanted a co-host, and we got a great community host model. And thanks for coming on and being part of this mission, it's been important to our mission. We've got Lisa Martin, Rebecca Knight, John Troyer, Keith Townson, Justin Warren, Corey Quinn, to name a few. So welcome to the crew, thanks for coming on. >> Sure I'm happy to step in. >> So I want to go back in time. I mean, when we first met in 2013, you were a part of Metacloud, which got acquired by Cisco at that time, OpenStack was hot, OpenStack was at the cloud. And if you think about where Amazon was at that point and time, it was really the beginning of that sea change of rapid cloud scale, public cloud, specifically OpenStack kind of settled in, and that's kind of making a nice foundation for private cloud right now. It's still out there, telco clouds. You're seeing that trend, but this is the sixth Kubecon we've been there at all of them. We were there at the founding president creation. What an interesting turn of events. The world is kind of spun in the direction of all the conversations we were having back in 2013, 14, 15, 16. Now fast forward Kubernetes is the hottest thing on the planet and cloud native is the construct for all these modern apps, so what's your take on it. What's your view on this? 'Cause you've been riding this wave. >> Well, I think it's interesting. You brought up OpenStack because I remember in those days, OpenStack was smoking hot. And I remember talking to some of the organizers from the foundation, what they said was we want OpenStack to be boring. We want it to be part of the background. We will know we've made it when it's boring. And we could argue that they're there now, right? They aren't what we're talking about as much, but they're still there, they're still doing their thing. They're still growing as far as I know. So that's happened and now Kubernetes is the incredible hotness and it's just exploded. And so it turned from, you know, just a few projects, to now, if you look at the list of projects that are in incubation list of projects that have graduated, it's pretty long, and it's an impressive set of capabilities, when you look. >> It's been really interesting, you know, Dan Collin who's, the Ben was the director of the CNCF. I remember talking to him early on. And when he came, when he joined, he was, he hustled hard. He was smart. And he had a vision to balance the growing ecosystem cause he's done successful startups. So he kind of kind of knows the rocket ship labor, but he basically brought that entrepreneurial startup mentality. And I saw him in China when I was there with Intel with Alibaba conference in the lobby of the hotel, I'm like, dad, what are you doing here? So the CNC, I was already thinking global. They build out the most impressive landscape of vendors to participate in cloud nativecon and Kubecon At the same time, they maintain that end user focused. If you look at Envoy, right, it came from Lyft. So you have this really nice balance. And you know, it was always people chirping and complaining about this, that, and the other thing on the vendor's side. But the end user focus has been such a strong hand for Kubecon and the CNCF. It's just been really impressive and they maintain that. And this is the key. >> And I think what's impressive is that they've evolved. They've continued, they haven't sat there and said, "We've got a couple of fantastic projects," right? They're bringing in new ones all the time. They're staying at the cutting edge. They're looking at serverless and making sure there's projects that are taking care of that. And so I think that's, what's keeping it relevant, is the fact that they're relentlessly evolving. >> Yeah, and we comment, I think two years ago, Stu and I were pontificating about, can they maintain it? And one of the things that we were predicting, I want to get your reaction to this is that as Kubernetes becomes more standard and you're starting to see the tipping point now where it's beyond just testing and deploying in some clusters, you're starting to see Kubernetes native and in part of everything, in part of the future as service meshes and wrap around it and other things, the commercialization, the success of the vendor side is starting to be there. You starting to see real viable companies be started. So do they become end-users or so? So the question was, can it maintain its open source vibe while you have all this commercialization going on? Because that's always the challenge in open source. How do you balance it? What's your reaction to that threat or maybe an opportunity? >> I don't think it's a threat. I think there will always be folks who want to do it themselves. They want to use the vanilla upstream, Kubernetes. They want to build it. They don't want any vendor interference. There's also a very other solid other camp that says, "No, no, we don't want to deal with the updates ourselves. We don't want to deal with the integration with networking and security and all those things." And the vendor takes care of that. So I really think it's just serving two different audiences that as far as I can tell are changing, they're not, I don't see one side growing and one side shrinking. I really see it staying same, pretty stable. And so it's serving both teams. >> Yeah, I totally agree. And this is what's great about evolution. And when you talk about the community gets about the people involved. And I was riffing with someone the other day and were like, "Hey, you know what makes CNCF different?" And we were saying that everyone kind of knows each other. So as you have, you know, the most popular thing at Kubecon is the hallway tracks, right? So hallway tracks are always popular. And just being in the hallways, we call it lobby con and the CUBES on the floor there. So there's a lot of hallway conversations as hallway tracks, there's lightening talks, there's always something exciting, but even though people might move around from company to company for project to project, everyone kind of knows each other. So I think that kind of gives this kind of self governance piece, some legs. >> It does, and you're bringing up something that's really relevant right now 'cause it's virtual this year, right? So we don't get to have those hallway conversations. We don't get to have those, you know, accidental, you know, connections that means so much. I think they did an amazing job, amazing with the European version of Kubecon and you know, they're doing the best they can, I think the attend, I heard the attendance was great. The sessions were incredible from an efficiency standpoint. If you're an attendee, you could hit so many more sessions from home. There was so much to learn, the content was fabulous. The one thing that's missing, and I don't know how they replicate it is that ability to connect with your colleagues in the hallway, the folks you haven't seen'cause they, they moved on, they went to a different company. Maybe they'd been to two or three companies since you saw them last and the one place, you know, you're going to see them is at Kubecon or some of the other conferences you attend. >> Yeah and talking to Priyanka. And some of the co-chairs one of the things that was interesting out of that last conference was you had the virtual theater, but the Slack channel was very engaging. So you had people leaning in on the dialogue and it's interesting. And this is where I want to ask you your thoughts on the top conversations as we prepare. And we start doing the remote interviews, with the leaders of the CNCF, as well as the top end users, as well as vendors and companies, people want to know what's the top conversation that's happening and what are we looking for? So I want to ask you, what are you looking for, Ali? What are the things that you're trying to squint through? What smoke signals you're looking for? What's the trends that you're trying to tease out a coupon this year? >> I'm going to be really interested. You know, I already mentioned it once, but I'm going to be interested to hear how the new serverless projects are going. I know there are a couple in incubation that sounds really interesting. Priyanka brought them up when I've spoken with her. And so I'd love to see if those are getting so traction. What does the momentum around those look like? Is there as much excitement service meshes there was last year. I know there was a lot of discussion about what was happening with search. Most people were really excited. So I want to know what's happening with that. I want to know how new users to the community are dealing with the proliferation of projects. You know, how are they finding out ways to get involved? How are we nurturing new members to the CNCF community and making sure that they aren't overwhelmed, that they find their niche and they're able to contribute to become users, to do whatever their role is meant to be. I think those are the interesting things to me. How about you? >> That's a good question. I mean, I've, there's so many things. I mean, I look at the first of all, the open source projects are phenomenal. And again, talking about the people, I love to see the things that are maturing and getting promoted and what's kind of in sandbox, but I look at the, some of the ecosystem landscape maps with the vendors. And if you look at Amazon, Cisco and the HPE, IBM cloud, red hat, VMware to name a few, and you've got some other companies like Convolt for instance, which is pivoting to a cloud service, Microsoft Palo Alto networks for security Rancho was acquired., you know, a lot of companies are, I think at capital one out there, always in great end. You always great stuff. You got interesting and in Docker, for example, cup Docker containers, we did Docker con this year and I was blown away by the demand, the interest and just the openness of DAPA as they re-pivoted back to their roots. But I'm interested to see how the big cloud vendors are going to play because Google has always been an impressive and dominant partner in KubeCon, Amazon then joined, Azure is in there as well. So you've got those three, the big three in there. So the question is, okay, as this ecosystem is growing, I'm trying to tease out what is this, everything as a service, because one of the things that's coming out on the customer side, if you work backwards from the customer, they're getting kind of the missions from the CEOs and the CIO or CSO saying, "Take everything as a service," which is kind of like, I call it the ivory tower kind of marching orders. And then it gets handed down to the cloud architects and the developers and they go, "What's that? How's that, how does it's kind of hard?" It's not easy, right? So the modern apps is one and then this, everything as a service business model is going to be based upon cloud native. So I think the cloud native, this is the year that cloud native is going to start showing some signs and some visibility into what the metrics are going to be for success around the key projects. And then who can deliver at scale, do everything is a service. So, you know, understanding what that means, what does Kubernetes enable? What are some of the new things? So to me, I'm trying to tease that out because I think that's the next big wave. Everything is a service. And then what that means technically, how do you achieve it? Because when you start rolling out, it's like, okay, what's next? >> Yeah, I wonder who are going to be the new super users that emerged from this, you know, who are going to be the companies that maybe didn't adopt early, they're getting in now and they start running with it and they do incredible new things with it. And the truth is going to your earlier point about whether or not commercializing that, you know, should it be an upstream thing where you're using it vanilla using, you know, pure Kubernetes or using a vendor version? The truth is when you start getting vendors involved and getting super users involved, and these big companies, they can throw 10, 20 people at projects as contributors. You know, I tend to think of open source as being a bunch of small companies, but the truth is it's a lot harder for a small company to dedicate multiple head count to full-time contributions, right? Well big company, you could throw a couple dozen at them and not even blink. And so that's, it's critical to the survival truthfully of the community that we have, these big companies get in there and run with it. >> You know, I was talking to Constance and Steven Augustus, they're both co-chairs of the event and Steven brought up something. That's interesting because it's the theme that's kind of talked about, but no one likes to talk about it because it's kind of important and ugly at the same time. It's security and I think one of the things that I'm looking for this year, Ali is, you know, there's a buzz word out there has been kind of overused, but it's still kind of relevant and it's called shift left. So shift left means how do you build security into the CICB pipeline? So developers don't have to come back and do stuff, right? So it's like baking security in. This is going to be kind of a nuance point because of course everyone wants security, but that's not what application developers think about every day, right? It's like, they're not like security people, right? So, but they got to have security. So I think whoever can crack the code on making security brain dead easy will be great. And how that works together with across multiple vendors. So to me, that's something that I want to understand more. I don't yet have a formed opinion on it, but certainly we're hearing "Shift left" a lot. >> Yes I agree 100% at first we had developers and operators. Then we had devOps. Now I hear sec devOps all the time. You know, that I started hearing that last year and now these poor developers, you know, suddenly they are, whether they want to be, or not, to some degree, they are responsible for their company security, because if they aren't integrating best practices into their code, then they are introducing vulnerabilities. And so it it's just fallen upon them, whether they signed up for it or not, it's fallen upon them. And it'll be real interesting to see how that plays out. >> Well, one of the things I'd love to do is get me, you John, Troy, Keith Townsend, Justin Warren, and certainly Corey Quinn on a podcast or CUBE interview because man, we would have some war stories and have some real good stories to tell the evolution of what's real. And what's not real. Certainly Cory queen allows to talk about kind of like squinting through the hype and calling out kind of what's real, but this is kind of really kind of what's going on with coop comes a lot of exciting things. So I have to ask you over the years within CNCF and cloud nativecon and Kubecon, what are some of your favorite memories or moments that you can share could be personal, could be professional, could be code, could be accompany. What's some of the things that you can share about some, some happy moments for Kubecon >> Sure, sure, I'd say for me, some of the best moments have been the recent pivot toward trying to take care of the attendees. You know, I don't remember if it was San Diego. I think it was San Diego where they brought in all the puppies or mental wellness. And there was a meditation room. I don't know if you went in there, but it was quiet. And there was just some very soft lighting and some quiet music. And I didn't know how much traction that was going to get amongst attendees, that room was packed every time I went in there, dead quiet people relaxing, the puppies were bananas. People were just hoarding around the puppies and wanting to pet them. And I just really liked the way that they had really thought of a bunch of different angles to try to make sure that people who have left their families, they've come to a different place. They're, they're, they're under stress. 'Cause they're probably traveling with their boss and a bunch of their colleagues and they're stressed. And so to make sure that they had a break, I thought that was really somewhere where KubeCon was ahead of a lot of the other conferences I see. And it wasn't a single approach. It wasn't, we're going to throw a bunch of dogs in the hallway. It was, we're going to do that. We're going to have a therapist do a session. We're going to have puzzles in a quiet area at the hallway. It really went all in. And so for me, that was one of my favorite things from recent years. I thought that was fantastic. How about you? >> It's been fun. I mean, it's just so many moments. I mean, I love the European show. We did one year when I first, first time they had rolled out in Europe and I thought that was just so small and intimate. Of course the big mega shows have been great with activity. I think, but one of my favorite moments was I was wandering in the lobby. This was in Europe. It was, and it was a huge EU event, I think 2018 might've been, and I'm kind of buzzing around the lobby and I had nothing to do that night. And it was like five to 11 different parties to go to. People have, you know, dinners. And I ran into one of the CNCF co-hosts and also she's a Google engineer and I'm like, "Hey, what are you guys doing?" I'm like, she's like, "Oh, we're going to the women's happy hour." And I'm like, "Oh, that's cool." I'm like, "It sounds good." And she invited me and I went with her and I was the only guy there, okay. >> Oh lucky you. >> And I looked around and it was packed. And I said to myself, this is freaking amazing. And it was great women, great leaders, smart, super awesome. And they were all welcomed me. I wasn't like being stared at either, by the way. So I'm like, okay, there was no line for the men's room either by the way, just to, you know, and I was like, good tweet there. But I felt really welcomed. And I thought that was very cool. It was packed. And I went back until it's too much. Do you can't believe it was just really awesome. I was in this awesome happy hour. And I remember saying to myself, "This community is inclusive, they're awesome. And it was just one of just a great moment. >> It's great you've got to be the other side of that, right? Because as a woman, I am always on the standard side of it, which has guys everywhere, there's very few women, but here's the thing I have never felt intimidated or uncomfortable in any way at a Kubecon I've always felt welcomed, I've had fabulous interactions. I've met people from around the world. And I try to explain to my kids actually, when we talk and they they'll say something sometime not xenophobic, maybe that's an overstatement, but they're little kids. They don't have a great understanding of the world. And I'll say, "Wait till you grow up and you go to one of these conferences, you'll realize that people from countries that even fear that some of them there's some of the kindest, nicest, most polite people I have ever met. And you walk away really feeling like you want to just throw your arms around everyone, that's been my experience anyway. S0 maybe I've been lucky, but I haven't had that intimidation factor at all. >> You got it, you've got a great mindset and your kids are lucky. And I feel like for me, the moment was the community is very open and inclusive. And I think theCUBE when we interview people, we want people who are smart, you know, and we interview a lot of great women and at KubeCon, it's been fantastic, so that's the highlight. And of course the grueling hours, and then, you know, people like to drink beer in this community. And I like beer, although I'd been trimming down a little bit because, you know, IPA's have been kind of getting heavy on me, but good beer drinkers. They like to have fun and they also work hard and it's a great community, so. >> And now you have to bring your own beer. Now that it's virtual, you have to keep your own IPA. >> Well, the joke was virtual is that we can have a better lunch at home. 'Cause that's always kind of like the event thing. But I think virtuals, I miss the face to face, but we get to talk to more people with remote and they get more traffic on the site, but hopefully when it comes back, it'll be hybrid and we'll still be kind of doing more remote, but more face-to-face. >> So well, and it's more affordable. I did not look at what the pricing is this time, but I know for the European version, the pricing was very fair, certainly more affordable than going in real life. And, you know, for some folks who really can't swing that travel costs and the registration fee, it's a great opportunity to get in on the cheap and suck up a lot of knowledge really quickly. >> Well, Ali, thank you for riffing on Kubecon preview. Thank you very much. And looking forward to hosting with you and thanks for co-hosting on theCUBE, appreciate it. >> Thank you so much, John. I enjoyed it. >> Thank you, okay you're watching theCUBE virtual. This is a Kubecon preview. I'm here with Ali. I'm a goo who's our new CUBE host helping out on the Kubecon looking forward to more interviews, this is the CUBE I'm John Furrier, thanks for watching. (upbeat music)

from the cube studios in Palo Alto in Boston connecting with thought leaders all around the world this is a cube conversation CIOs and CISOs of industries that have been hard hit see significant near term and many permanent shifts to their IT and security strategies this was the consensus of four technology executives at leading companies that are feeling the brunt of the corona virus pandemic welcome to this week's cube insights powered by ETR my name is Dave Volante and in this breaking analysis we want to accomplish three things first we want to tap into a new piece of research from ETR it involves an intimate focus group like set up via an open discussion with leading technology executives we interviewed Eric Bradley the managing director of et ours then program and we'll bring him into this discussion the next thing we want to do is we want to drill in to the various sector commentaries from the four leaders third we're gonna comment an hour take try to add some color and then share with you some of the specific vendor commentary that was called out by the executives let's start by looking at what et our event is et our van is a roundtable discussion it applies a tried-and-true methodology similar to a focus group or in-depth interviews what we sometimes in the research business call ID is ETR invites execs in from its community to participate in a private but open conversation et our clients get to listen in the names of the execs and their companies are transparent but the cube is only allowed to refer to them generically as shown on this slide now we can validate these participants they are legit CIOs and CISOs some and very well-known firms now what I want to do is summarize the CIO and seaso sentiment from this then discussion the overall budget impact for these four organizations is very very severe essentially large project projects are being put on hold although digital transformation initiatives remain a priority there were really four significant areas of emphasis that were cited by these execs cloud-first on-prem is losing out to cloud SAS and of course remote access solutions in fact the best comment on the panel was as a service is saving our SAS traditional networking is shifting to SD win especially rigid MPLS networks securing endpoints and zero trust solutions are the winners and there are a number of vendors rising to the occasion that will talk about it let's see how Eric Bradley of ETR summarizes the venn to summarize what we're seeing here was the real winners and losers are clear not everyone was prepared to have it work from home strategy not everyone was prepared to send their workers out there VPN wasn't didn't have enough bandwidth so there was a real quick uptick in spending but longer-term we're starting to see that these changes will be become more permanent so the real winners and losers right now we're going to see on the losers side traditional networking the MPLS networking isn't a lot of trouble according to all the data and the commentary that we see it's expensive it's difficult to ramp up bandwidth as quickly as you need and it doesn't support remote ok what I want to do now is I want to take a look at some of the verbatim comments and I'll just I'll read them from this slide all spending is shut down 70% of big projects are cut all next-gen projects have been shelled the relationship with our SAS vendor has been a miracle we're accelerating from MPLS to sd when on top of secure gateway technologies these will win this was interesting our business continuity plans were way too DR focused essentially we weren't prepared now let's unpack the cloud first commentary and give you some additional color I feel like all we do around here sometimes is talk about the cloud but it's clear from the data in the ETR data set surveys and the venn that in other data from the cube that that the cloud is only going to be accelerated we said this in 2008 in the 2009 downturns have been good to cloud one of the execs literally said I would like to see my data centers completely deleted Wow let's listen to Erik Bradley's take on this comment I was also shocked about that comment that gentleman also stated that his executives outside of the eyeteeth area the CEO the CFO had never ever ever wanted to discuss cloud they did not want to discuss work from home they did not want to discuss remote access he said that conversation has changed immediately so we've been talking a lot about those aspects of people and process and technology that might be permanent post kovat and clearly you see c-level execs as having a bit of an awakening for things like cloud and work from home not that they didn't see them before but these things are gonna accelerate in our view I want to spend a minute talking about networks SAS and bring cloud again into the discussion I gotta say the panel members really trashed MPLS networks in a big way let me explain MPLS stands for multi-protocol label switching you find this type of infrastructure in big telecom networks and it's there to route traffic and pls is used to create dedicated and and essentially reliable connections it enables things like VPNs quality a service management traffic engineering or shaping but well MPLS is definitely cheaper than t1 it's more expensive than Ethernet now I came into prominence well before the cloud and these execs see it is as outdated and inflexible and this is where SD wind comes into play software-defined wide area networks they're gaining popularity especially with the Sassa fication of applications and of course the general trend toward cloud here's Eric Bradley again explaining what the panel members said from his perspectives winners there or in the SD web space it's gonna be impossible to ignore that going forward and some of our CIO and even CISO panelists said that change will be also we're seeing at the same time what they were calling a on on SAS and cloud now we know these trends obviously were already happening but there be they're being exacerbated they're happening even more quickly and more strong and I don't see that changing anytime soon that of course is at the expense of network sorry data centers whether it be your own or hosted which has huge ramifications on from on from Hardware even the firewall providers so and it really seems as if as networking refresh starts to come up and it's coming up with a lot of large in writes when your network refresh comes up people are going to do an RFP for SD web they are sick and tired of paying MPLS network vendors and they really want to look at something else that was even prior to this situation now what we're hearing is this is a permanent change I particularly had one person say I wanted to find this quote real quickly by then but basically they were basically saying that from a permanency perspective the freedom from MPLS will reduce our network spend by over half while more than doubling or tripling or bandwidth now the challenge of course is customers have multiple MPLS contracts with several different vendors and often they just rubber-stamp the renewal but what customers are gonna start doing is layering in SD win and letting those agreements expire ok I want to talk about secure endpoints in this notion of zero trust solutions as I've said in the cube many many times the idea of digging a moat around the castle doesn't protect your queen anymore because the Queen ie the data has left the castle so companies that can secure gateways and secure endpoints they are going to have more momentum during and post kovat now in the panel Z scalar came up a lot in this context as well as fortunate who as I've reported has done a good job in getting its cloud products to market and of course the et our data shows that fortunate and Z scalar both have strong net scores or spending momentum and fort net especially has really strong pervasiveness in the et our dataset as I've reported previously I've also analyzed that there's been evaluation divergence between Palo Alto Networks and fortunate and house II scalar as well is a disruptor in this space I want you to listen to what Eric Bradley said specifically about Z scalar in Palo Alto Networks roll the clip yes it is and I'm glad you brought up Z scalar to very recently by client request we did a very in-depth research on Z scale and versus Palo Alto charisma access and they were very interested this is before all this happened you know does Palo Alto have a chance of catching up taking share from Z scalar and I've had the pleasure myself personally hosting J the CEO of Z scalar at an event here at City and I have nothing but incredible respect for the company but what we found out through this research is Z scalar at the moment their technology is still ahead according to their and there is no doubt however there doesn't seem to be any real secret sauce that will stop palo alto from inching up so if I had to choose that in a year from now Palo Alto might have had a better chance so in this panel as you brought up Z scalar was mentioned numerous times as just the wave of the future along with Cosby brokers right whether you're talking about a net scope or a force point they're all those people that also play in The Cosby space to secure your access zero Trust is no longer a marketing hype term it is real and it is becoming more real by the week now I personally agree with Eric that palo alto is is definitely going to be in the mix customers that we've talked to they want to work with palo alto networks but there's a sea change going on and it's being driven by sass and cloud and now accelerating because a co vid of course that the trend of remote workers is we think here to stay now i want to end by talking about some specific vendor mentions in addition to the ones we've talked about already and this chart shows some of the vendors and their logos that were called out as either being really really helpful during the this pandemic or super important to the CIOs and CISOs these executives really stressed how thankful they are to these companies and that the fact that these companies have worked very closely with them they've been flexible on pricing and payments and they also specifically mentioned how off-put they were by you know this notion of ambulance-chasing for example trials that required them to make some kind of commitment or swipe a credit card they just don't have time for that right now and then of the patience for it now let me call out a few of the companies that were cited in a positive light look at microsoft is all for the ETR data set in so many sectors Microsoft teams security solutions cloud really came up a lot on on this ven IBM was mentioned as being a great partner as what's oracle many many times we talked about fortunate and Z scalar already Cisco was called out as a strategic vendor was very helpful both the networking and with Cisco teams for collaboration CrowdStrike came up a number of times from CISOs as did Trend Micro and carbon black got a mention that's the VMware acquisition insecurity of course MobileIron that makes sense as well because they're securing and managing remote worker devices now finally interesting Lee Salesforce was brought up many times as a critical vendor one exec said that before coronavirus multiple workers could share a Salesforce license by you know sharing passwords but with the spike and work from home they had to purchase more licenses now one last thing that I want to bring up is start ups I got this question the other day from a client who said how a start-ups fair you might think that in this climate especially among for hard-hit customers that there might be risk-averse as it pertains to using startups once cio however said the following paraphrasing you always hear about the guy that says we'll pick three companies in the upper right hand corner the Gartner Magic Quadrant will test them out and this C so said that one of the things that he's always done is picked two from the upper right and one from the lower left one of the emerging techs and he gives them a shot let's listen to how Eric Bradley describes this dynamic roll the clip it's a great comment and honestly if you're in charge of procurement you'd be stupid not to do that not only just to see what the technology is but now I can play you off the big guys because I have negotiating leverage and I could say oh well I could always just take their contract so it's silly not to do it from a business perspective so it's really interesting and somewhat non-intuitive these comments on startups which of course means despite all the consolidation and acquisitions that you see in the industry you know there's still gonna be a lot of fragmentations a fragmentation especially as I've said many many times in the security space people still want best to breed and innovation and if it can drive business value they're gonna they're gonna go for it ok so look I realize that these are narrow comments from for CIOs and CISOs but they give us some added texture and flavor and color to the core ETR data set and we're going to continue to report on these trends and share more details as they become available both from the ETR data set and from other vents and remember we're gonna be digging into the latest ETR survey over the over the coming weeks as ETR exits its self-imposed quiet period so you can always check out ETR dot plus I publish weekly on wiki bang calm and on Silicon angle calm and of course our YouTube library has all these videos that's youtube.com slash silicon angle by the way these segments are also available as podcasts you can DM me or tweet me at devil ante and please by all means comment on my LinkedIn posts or email me at David Galante at Silicon angle com always appreciate the feedback thanks for watching everybody this is breaking analysis brought to you by the cube powered by ETR this is Dave Volante and we'll see you next time thanks for watching [Music]

la from Las Vegas it's the cube covering AWS reinvent 2019 brought to you by Amazon Web Services and in care along with its ecosystem partners hey welcome back everyone cubes live coverage of eight of us reinvent 2019 this is the cube seventh year covering Amazon reinvent it's their eighth year of the conference and want to just shout out to Intel for their sponsorship for these two amazing sets without their support we would be able to bring our mission of great content to you I'm John Force to many men we're here with the chief of AWS the chief executive officer Andy chassis tech athlete and himself three our keynotes welcome to the cube again great to see you great to be here thanks for having me guys congratulations on a great show a lot of great buzz thank you a lot of good stuff your keynote was phenomenal you get right into you giddy up right into as you say three hours 30 announcements you guys do a lot but what I liked the new addition in the last year and this year is the band house man yeah they're pretty good they hit the Queen note so that keeps it balanced so we're going to work on getting a band for the cube awesome so if I have to ask you what's your walk-up song what would it be there's so many choices depends what kind of mood I'm in but maybe times like these by the Foo Fighters these are unusual times right now Foo Fighters playing at the Amazon intersect show they are Gandy well congratulations on the intersect you got a lot going on intersect is the music festival I'll get that in a second but I think the big news for me is two things obviously we had a one-on-one exclusive interview and you laid out essentially what looks like was gonna be your keynote it was transformation key for the practice I'm glad to practice use me anytime yeah and I like to appreciate the comments on Jedi on the record that was great but I think the transformation story is a very real one but the NFL news you guys just announced to me was so much fun and relevant you had the Commissioner of NFL on stage with you talking about a strategic partnership that is as top-down aggressive goals you could get yeah I have Roger Goodell fly to a tech conference to sit with you and then bring his team talk about the deal well you know we've been partners with the NFL for a while with the next-gen stats are they using all their telecasts and one of the things I really like about Roger is that he's very curious and very interested in technology in the first couple times I spoke with him he asked me so many questions about ways the NFL might be able to use the cloud and digital transformation to transform their various experiences and he's always said if you have a creative idea or something you think that could change the world for us just call me is it or text me or email me and I'll call you back within 24 hours and so we've spent the better part of the last year talking about a lot of really interesting strategic ways that they can evolve their experience both for fans as well as their players and the player health and safe safety initiative it's so important in sports and particularly important with the NFL given the nature of the sport and they've always had a focus on it but what you can do with computer vision and machine learning algorithms and then building a digital athlete which is really like a digital twin of each athlete so you understand what does it look like when they're healthy what and compare that when it looks like they may not be healthy and be able to simulate all kinds of different combinations of player hits and angles and different plays so that you can try to predict injuries and predict the right equipment you need before there's a problem can be really transformational so it was super excited about it did you guys come up with the idea it was the collaboration between there's really a collaboration I mean they look they are very focused on player's safety and health and it's it's a big deal for their you know they have two main constituents that the players and fans and they care deeply about the players and it's a it's a hard problem in a sport like football but you watch it yeah I gotta say it does point out the use cases of what you guys are promoting heavily at the show here of the stage maker studio which is a big part of your keynote where they have all this data right and they're dated hoarders they've the hoard data but they're the manual process of going through the data it was a killer problem this is consistent with a lot of the enterprises that are out there they have more data than they even know so this seems to be a big part of the strategy how do you get the customers to actually a wake up to the fact that they got data and how do you tie that together I think in almost every company they know they have a lot of data and there are always pockets of people who want to do something with it but when you're gonna make these really big leaps forward these transformations so things like Volkswagen is doing with they're reinventing their factories in their manufacturing process or the NFL where they're gonna radically transform how they do players health and safety it starts top-down and if they if the senior leader isn't convicted about wanting to take that leap forward and trying something different and organizing the data differently and organizing the team differently and using machine learning and getting help from us and building algorithms and building some muscle inside the company it just doesn't happen because it's not in the normal machinery of what most companies do and so it all wait almost always starts top-down sometimes it can be the commissioner or the CEO sometimes it can be the CIO but it has to be senior level conviction or it does get off the ground and the business model impact has to be real for NFL they know concussions hurting their youth pipelining this is a huge issue for them is their business model they they lose even more players to lower extremity injuries and so just the notion of trying to be able to predict injuries and you know the impact it can have on rules the impact it can have on the equipment they use it's a huge game changer when they look at the next 10 to 20 years all right love geeking out on the NFL but no more do you know off camera a 10 man is here defeated season so everybody's a Patriots fan now it's fascinating to watch you and your three-hour keynote Vernor in his you know architectural discussion really showed how AWS is really extending its reach you know it's not just a place for a few years people have been talking about you know cloud as an operation operational model it's not a destination or a location but I felt that really was laid out is you talked about breadth and depth and Verna really talked about you know architectural differentiation people talk about cloud but there are very there are a lot of differences between the vision for where things are going help us understand and why I mean Amazon's vision is still a bit different from what other people talk about where this whole cloud expansion journey but put over what tagger label you want on it but you know the control plane and the technology that you're building and where you see that going well I think that we've talked about this a couple times we we have two macro types of customers we have those that really want to get at the load level building blocks and stitch them together creatively and however they see fit to create whatever is in there in their heads and then we have this second segment of customers who say look I'm willing to give up some of that flexibility in exchange for getting 80% of the way they're much faster in an abstraction that's different from those low level building blocks in both segments of builders we want to serve and serve well and so we built very significant offerings in both areas I think when you look at micro services you know some of it has to do with the fact that we have this very strongly held belief born out of several years at Amazon where you know the first seven or eight years of Amazon's consumer business we basically jumbled together all of the parts of our technology and moving really quickly and when we wanted to move quickly where you had to impact multiple internal development teams it was so long because it was this big ball this big monolithic piece and we got religion about that and trying to move faster in the consumer business and having to tease those pieces apart and it really was a lot of the impetus behind conceiving AWS where it was these low-level very flexible building blocks that don't try and make all the decisions for customers they get to make them themselves and some of the micro services that you saw Verner talking about just you know for instance what we what we did with nitro or even what we do with firecracker those are very much about us relentlessly working to continue to to tease apart the different components and even things that look like low-level building blocks over time you build more and more features and all of a sudden you realize they have a lot of things that are they were combined together that you wished weren't that slowed you down and so nitro was a completely reimagining of our hypervisor and virtualization layer to allow us both to let customers have better performance but also to let us move faster and have a better security story for our customers I got to ask you the question around transformation because I think it all points to that all the data points you got all the references goldman-sachs on stage at the keynote Cerner and the healthcare just an amazing example because I mean this demonstrating real value there there's no excuse I talked to someone who wouldn't be named last night and then around the area said the CIA has a cost bar like this cost up on a budget like this but the demand for mission based apps is going up exponentially so there's need for the cloud and so seeing more and more of that what is your top-down aggressive goals to fill that solution base because you're also very transformational thinker what is your what is your aggressive top-down goals for your organization because you're serving a market with trillions of dollars of span that's shifting that's on the table a lot of competition now sees it too they're gonna go after it but at the end of the day you have customers that have that demand for things apps yeah and not a lot of budget increase at the same time this is a huge dynamic what's your goals you know I think that at a high level are top-down aggressive goals so that we want every single customer who uses our platform to have an outstanding customer experience and we want that outstanding customer experience in part is that their operational performance and their security are outstanding but also that it allows them to build and it build projects and initiatives that change their customer experience and allow them to be a sustainable successful business over a long period of time and then we also really want to be the technology infrastructure platform under all the applications that people build and they were realistic we know that that you know the market segments we address with infrastructure software hardware and data center services globally are trillions of dollars in the long term it won't only be us but we have that goal of wanting to serve every application and that requires not just the security operational performance but also a lot of functionality a lot of capability we have by far the most amount of capability out there and yet I would tell you we have three to five years of items on our roadmap that customers want us to add and that's just what we know today well and any underneath the covers you've been going through some transformation when we talked a couple years ago about how serverless is impacting things I've heard that that's actually in many ways glue behind the two pizza teams to work between organizations talk about how the internal transformations are happening how that impacts your discussions with customers that are going through that transformation well I mean there's a lot of a lot of the technology we build comes from things that we're doing ourselves you know and that we're learning ourselves it's kind of how we started thinking about microservices serverless - we saw the need we know we would have we would build all these functions that when some kind of object came into an object store we would spin up compute all those tasks would take like three or four hundred milliseconds then we spin it back down and yet we'd have to keep a cluster up in multiple availability zones because we needed that fault tolerance and it was we just said this is wasteful and that's part of how we came up with lambda and that you know when we were thinking about lambda people understandably said well if we build lambda and we build the serverless event-driven computing a lot of people who are keeping clusters of instances aren't going to use them anymore it's going to lead to less absolute revenue for us but we we have learned this lesson over the last 20 years at Amazon which is if it's something it's good for customers you're much better off cannibalizing yourself and doing the right thing for customers and being part of shaping something and I think if you look at the history of Technology you always build things and people say well that's gonna cannibalize this and people are gonna spend less money what really ends up happening is they spend spend less money per unit of compute but it allows them to do so much more that the ultimately long-term end up being you know more significant customers I mean you are like beating the drum all the time customers what they say we implement the roadmap I got that you guys have that playbook down that's been really successful for you yeah two years ago you told me machine learning was really important to you because your customers told what's the next tranche of importance for customers what's on top of mine now as you look at this reinvent kind of coming to a close replays tonight you had conversations your your tech a fleet you're running around doing speeches talking to customers what's that next hill from from my fist machine learning today there's so much I mean that's not it's not a soup question you know I think we're still in this in the very early days of machine learning it's not like most companies have mastered yet even though they're using it much more than they did in the past but you know I think machine learning for sure I think the edge for sure I think that we're optimistic about quantum computing even though I think it'll be a few years before it's really broadly useful we're very enthusiastic about robotics I think the amount of functions are going to be done by these robotic applications are much more expansive than people realize it doesn't mean humans won't have jobs they're just going to work on things that are more value-added I thought we're believers in augmented and virtual reality we're big believers and what's going to happen with voice and I'm also I think sometimes people get bored you know I think you're even bored with machine learning maybe already but yet people get bored with the things you've heard about but I think just what we've done with the chips you know in terms of giving people 40% better price performance in the latest generation of x86 processors it's pretty unbelievable and the difference in what people are going to be able to do or just look at big data I mean big date we haven't gotten through big data where people have totally solved it the amount of data that companies want to store process and analyze is exponentially larger than it was a few years ago and it will I think exponentially increase again in the next few years you need different tools the service I think we're not we're not for with machine learning we're excited to get started because we have all this data from the video and you guys got sage maker yeah we call it a stairway to machine learning heaven we start with the data move up what now guys are very sophisticated with what you do with technology and machine learning and there's so much I mean we're just kind of again in this early innings and I think that it was soaked before sage maker was so hard for everyday developers and data scientists to build models but the combination of sage maker and what's happened with thousands of companies standardizing on it the last two years Plus now sage maker studio giant leap forward we hope to use the data to transform our experience with our audience and we're on Amazon Cloud I really appreciate that and appreciate your support if we're with Amazon and Instant get that machine learning going a little faster for us a big that'll be better if you have requests so any I'm you talked about that you've got the customers that are builders and the customers that need simplification traditionally when you get into the you know the heart of the majority of adoption of something you really need to simplify that environment but when I think about the successful enterprise of the future they need to be builders yeah so has the model flipped if you know I normally would said enterprise want to pay for solutions because they don't have the skill set but if they're gonna succeed in this new economy they need to go through that transformation that yeah so I mean are we in just a total new era when we look back will this be different than some of these previous waves it's a it's a really good question Stu and I I don't think there's a simple answer to it I think that a lot of enterprises in some ways I think wish that they could just skip the low level building blocks and and only operate at that higher level abstraction it's why people were so excited by things like sage maker or code guru or Kendra or contact lens these are all services that allow them to just send us data and then run it on our models and get back the answers but I think one of the big trends that we see with enterprises is that they are taking more and more of their development in-house and they are wanting to operate more and more like startups I think that they admire what companies like Airbnb and Pinterest and slack and and you know Robin Hood and a whole bunch of those companies stripe have done and so when you know I think you go through these phases and errors where there are waves of success at different companies and then others want to follow that success and and replicate and so we see more and more enterprises saying we need to take back a lot of that development in-house and as they do that and as they add more developers those developers in most cases like to deal with the building blocks and they have a lot of ideas on how they can create us to creatively stitch them together on that point I want to just quickly ask you on Amazon versus other clouds because you made a comment to me in our interview about how hard it is to provide a service that to other people and it's hard to have a service that you're using yourself and turn that around and the most quoted line in my story was the compression algorithm there's no compression outliving for experience which to me is the diseconomies of scale for taking shortcuts yeah and so I think this is a really interesting point just add some color comments or I think this is a fundamental difference between AWS and others because you guys have a trajectory over the years of serving at scale customers wherever they are whatever they want to do now you got micro services it's even more complex that's hard yeah how about that I think there are a few elements to that notion of there's no compression algorithm I think the first thing to know about AWS which is different is we just come from a different heritage in a different background we sweep ran a business for a long time that was our sole business that was a consumer retail business that was very low margin and so we had to operate a very large scale given how many people were using us but also we had to run infrastructure services deep in the stack compute storage and database in reliable scalable data centers at very low costs and margins and so when you look at our our business it actually today I mean it's it's a higher margin business in our retail business the lower margin business and software companies but at real scale it's a it's a high-volume relatively low margin business and the way that you have to operate to be successful with those businesses and the things you have to think about and that DNA come from the type of operators that we have to be in our consumer retail business and there's nobody else in our space that does that you know the way that we think about cost the way we think about innovation and the data center and and I also think the way that we operate services and how long we've been operating services of the company it's a very different mindset than operating package software then you look at when you think about some of the issues and very large scale cloud you can't learn some of those lessons until you get two different elbows of the curve and scale and so what I was telling you is it's really different to run your own platform for your own users where you get to tell them exactly how it's going to be done but that's nothing really the way the real world works I mean we have millions of external customers who use us from every imaginable country and location whenever they want without any warning for lots of different use cases and they have lots of design patterns and we don't get to tell them what to do and so operating a cloud like that at a scale that's several times larger the next few providers combined is a very different endeavor and a very different operating rigor well you got to keep raising the bar you guys do a great job really impress again another tsunami of announcements in fact you had to spill the beans early with quantum the day before the event tight schedule I gotta ask you about the music festival because I think there's a really cool innovation it's the inaugural intersex conference yeah it's not part of replay which is the concert tonight right it's a whole new thing big music act you're a big music buff your daughter's an artist why did you do this what's the purpose what's your goal yeah it's an experiment I think that what's happened is that reinvent has gotten so big with 65,000 people here that to do the party which we do every year it's like a thirty five forty thousand person concert now which means you have to have a location that has multiple stages and you know we thought about it last year when we were watching it and we said we're kind of throwing like a four hour music festival right now there's multiple stages and it's quite expensive to set up that set for our partying we said well maybe we don't have to spend all that money for four hours in the rip it apart because actually the rent to keep those locations for another two days is much smaller than the cost of actually building multiple stages and so we we would try it this year we're very passionate about music as a business and I think we are I think our customers feel like we throw in a pretty good music party the last few years and we thought we were trying at a larger scale as an experiment and if you look at the economics the headliners real quick the Foo Fighters are headlining on Saturday night Anderson Park and the free Nashville free Nationals Brandi Carlile Shawn Mullins Willie Porter it's a good set Friday night it's back in Kacey Musgraves so it's it's a really great set of about 30 artists and we're hopeful that if we can build a great experience that people want to attend that we can do it it's scale and it might be something that you know both pays for itself and maybe helps pay for reinvent to overtime and you know I think that we're also thinking about it as not just a music concert and festival the reason we named it intersect is that we want an intersection of music genres and people and ethnicities and age groups and art and Technology all there together and this will be the first year we try it it's an experiment and we're really excited about I'm gone congratulations all your success and I want to thank you we've been seven years here at reinvent we've been documenting the history two sets now once-dead upstairs so appreciate a cube is part of reinvent you know you guys really are a part of the event and we really appreciate your coming here and I know people appreciate the content you create as well and we just launched cube 365 on Amazon Marketplace built on AWS so thanks for letting us cool build on the platform appreciate it thanks for having me guys Jesse the CEO of AWS here inside the cube it's our seventh year covering and documenting they're just the thunderous innovation that Amazon is doing they're really doing amazing work building out the new technologies here in the cloud computing world I'm John Force too many men be right back with more after this short break [Music]

>>LA from Las Vegas. It's the cube covering AWS reinvent 2019 brought to you by Amazon web services and along with its ecosystem partners. >>Welcome back to Vegas, Lisa Martin with John farrier. We are live at AWS reinvent in the expo hall at the sands convention center. There's tons of people in here. You could probably hear some of the background AWS expecting 65,000 or so folks. John, how many of those 65,000 and have you talked to in the last two days? >>Well, I can hear all the conversations happening at once. It's about hybrid cloud, IOT edge data, machine learning. my head's going to come. >>I was going to say lots of cool stuff. John and I are pleased to be joined by Greg Coralville, the VP of products and strategy for Blackberry Q. Next group. Welcome to the program >>to be here with 65,000 of our closest friends. >>His friends. Exactly. So Blackberry, cute X. What's it all about? >>What's it all about? Well, we do software. We do embedded software for mission critical systems at this event, at the AWS reinvent over showing a software and a really cool car, a karma, and we're connecting it to the AWS IOT backend services and showing some really, really cool use cases. Some of which are near term summer, which are a bit longer term are pretty exciting. Take a quick minute to describe Kunis. Is background acquired by Blackberry system history legacy? Exactly. Just take a quick minute to explain that. So we were founded in 1980 and then developing software for mission critical devices and medical, industrial. And then we started developing software for automotive in 1998 so we've been in automotive for about 20 years and developing originally an infotainment and then digital instrument clusters, telematic systems, gateways, safety systems, acoustics systems, pretty much becoming the software platform in the car because in the car, the car, the software is to be reliable, safe, secure. >>So we're trusted to deliver that. In automotive, we were acquired by Blackberry in 2010 and we're bringing the best of Blackberry and automotive and all of our other markets. So Lisa and I always talk about IOT is RPA automation. All this stuff's going on. But one of the things that comes up is we're trying to grok what's the software development environment in the cloud, in the car, and a Amazon one by having great API APIs. Yep. That was one of their core design principles. Is there a similar design principle from a car standpoint? Because if I'm an app developer, I just love, I have my mobile app sit on the car, right? But I don't want to have to become an expert on all the nuances of is there a connector? So is there going to be multiple platforms? What's the, what's the principle? Can you explain that a great question and great observation. >>So cars traditionally have been proprietary, pretty much closed systems and started open up with CarPlay and Android auto or all of a sudden you saw your mobile device being able to communicate with the car and now I could run Android apps, I could run iOS apps and started to open it up a bit. And now what you've seen is cars are becoming more connected, they're becoming more automated, eventually autonomous. Um, they're definitely, and what you're seeing in the car is in order for that car to really evolve and to offer connected services and shared mobility and the electrification that's occurring, the automotive industry is going through a disruption. We've all heard that and it really is true. So to the point where the electronics in the car, the networks in the car, the software in the car, it's getting completely redesigned and you're seeing a lot more high end processors. >>You're seeing safety critical systems, which have always been in cars, but now you're seeing a lot more complexity. And that speaks to exactly what we do. So where that car's going, if you think about it, is moving to more of a software platform. You have applications and mobile devices. Why? Because you've got Android and you've got iOS. That car is moving to that sort of a common platform where with the help of AWS connected services, the cubix Blackberry Punic software platform in the car, all of a sudden that'll open the door to that kind of environment to applications, to connected services. And that's exactly where it's going. So connectivities, it's here and it's going to be predominant through a pretty much all the vehicles coming off the line in the coming years. So you're going to see the connectivity and now we can bring the services and the apps to that vehicle. But at the same time you got to keep it safe, got to keep it secure. Gotta keep it reliable. You know, it's the classic mobile device, bingo literal device on wheels, right of two ton mobile device on wheels. >>Doc disruption sounds really cool and it's consumers. We just had this expectation that we can have whatever I want, the whole experience I want. And obviously as everything evolves, we want it to be safer and safer. And as there's laws and regulations that govern, Hey, you're going to get hefty fines if you're seeing with this device and you're driving. But disruption is really challenging, right? We talked, we got some great examples yesterday on stage with Andy Jassy of Goldman Sachs, right? How many years old are they and how they have leveraged disruption to revolutionize their consumer business or healthcare revolutionizing. I'd love to get your perspective on what are some of the automakers that are bleeding edge going, we get it. We want to work with you guys so that they understand that this the, you know, the, the mobile devices, the connected device on wheels is going to be transformative for their business. >>Good point. So first of all, every automaker we work with and we work, we work with almost 50 auto makers and we're over a hundred. We're in over 150 million vehicles and multiple systems in the cars. They're all putting safety first. That's never really changed. But that remains primary, primary objective. And to your point is how do you maintain that safety net reliability while at the same time opening the door to connectivity, making sure that vehicle is secure and resilient to attacks and whatnot. And you've seen some of those attacks in the past. And the industry is learning. Um, but that's, that's exactly what, that's what speaks to us and what we do. Same thing with AWS. If you think about what we do, we're plumbers. We, we build plumbing in the car, AWL splits, plumbing in the cloud. And I've had that call, those conversations with AWS and they're like, yeah, we're plumbers. >>And I said, so are we, we're going to get along great. But to your point, we have to keep our eye on security. Our definitely our eye on privacy and safety. And that's exactly what we do. As much as we all want the consumer apps and the connected experience at the same time, we can't compromise on that. So the good thing in automotive is there's a automotive safety standards, ISO two, six, two, six, two and whatnot, which we've certified our products to and we're going to keep doing that and keep delivering that software in the car. But that's awesome for 0.2 ton mobile device on wheels. So we got to always be aware of that. Great opportunity. People want more conduct and safety too. And that's a huge thing. Security and safety. I want to get to that in a second, but I got to ask you, um, what is the relationship that you guys have with Amazon? >>Could you explain that? And what are you guys doing at reinvent this year? Is your leg a presentation demo? Take a minute to explain the relationship between queen Nixon and Amazon web services and what you're showing here. Well, we're in the connected home exhibit. In fact, we're in the quote unquote garage where we've got a vehicle, a beautiful karma Rivero GT. And I was told it's the first time there's actually a car at reinvent. So that was pretty cool. And it's a cool car if you get a chance, come on over. And what we've done is we've taken the karma vehicle and we've actually connected it to AWS IOT. So if you think about what we do, we do software in the car, as I was saying earlier. And then we worked with the Amazon team, with the AWS team to say, okay, what can we do? So one of the things we're doing is we're doing battery monitoring and prediction in terms of the life of the battery. >>That's one of the things that we're doing. The other thing we're doing is personalized cockpit, which is, which is pretty exciting. And, and the last thing we're doing is kind of a business to business demonstration, um, where it's data orchestrations. If you think about the vehicle, there's a lot of sensors on the vehicle, a lot of information available on the vehicle. And what we're doing with AWS is pulling information from the vehicle, putting it in the cloud. And then we've got a few examples that we're using. So one of them is an application for an auto detailing company where they might want, you might want to have your vehicle detailed where we can make the position of your vehicle available, GPS, the VIN number. So the identify the identification of the vehicle. Um, and then you could actually contract with that expert detailings what we called them to come to your vehicle, clean the vehicle, detail your vehicle within a finite period of time securely. >>And then you'll get notified when it's done and whatnot. We're doing facial recognition in the vehicle and we also put some ML in machine learning in the car. We're actually showing gesture recognition where I can fold the mirrors with a, with a peace sign or victory signs. I could have the mirrors fold in. Uh, I can, I can interact with the infotainment system. I can personalize the music and whatnot. So really personalizing the cockpit. But all through the power of AWS. Sorry, what are we going to have to the car flying cars? Come on Jetsons flyers. I love this coming. Maybe not the flying carpet. Wow. Okay. Flying cars. Fine. I mean, I always say anything else that's in star Trek or star Wars will be invented. So I'm respecting some flying vehicles. All fun aside. Yeah. Now the serious conversation is safety and security. >>Worst case scenario, my car is hacked. Take over. This is a fear. Again, it's the worst. It's a doom season here. Those stories are straight. All IOT device. It's a car. How do you guys view the security posture? Um, good question. This is concerned. It might be on people's mind. Yeah. And that's what really speaks to where our company has been for almost four decades now. You know, when people would ask me, Hey, where would I find Punic software? Blackberry Punic software, I'd say almost everywhere, but the desktop. So where things have to be reliable, safe, secure work all the time. That's where you'll find our software. So factory floor, we're in laser eye surgery. Machines are in patient monitoring devices, MRI machines. And so essentially those areas which are safety critical, where safety, security and reliability, you know, our top real really industrial IOT thing, big time, big time. >>And that's the cool thing about walking around reinvent. There's all kinds of industrial devices and control. So if you go to the car now, if you think about the vehicle, same fundamental needs, reliability, safety, security, and we're trusted to deliver an automotive. So security is one of those things. It's not static. So when you, when you, when you make something that's secure, you're really building something that's resilient to attacks. So you'd be as resilient as possible to prevent attacks. And then you do whatever you can to prevent any malicious act or actions on that. So we will monitor what's going on in the system. We'll monitor any communications going to the car, for instance. So the minute we detect something a bit of normal, we can take action based on that. So that, that's absolutely key, especially given the cars connected and more and more becoming connected. >>What's the opportunity is in a trucking industry, when I think of the number of sensors on trucks, the regulations that you know for drivers safety in terms of how many hours they actually have to be able to can drive. What's the opportunity there for Q next? >>Good question. So everything we're doing in the car, which I should generalize and say a vehicle applies to trucks. So if you think about trucking or vehicles or drones or anything like that, you have multiple sensors that you have to interact with. You have to interpret that information, you have to take action based on that information. So if we look at trucking specifically, everybody knows a major shortage of truck truck, truck drivers. So when people ask me about autonomous cars and Hey, when are we going to see autonomy's vehicles? I always look at trucking and we're working with companies, trucking companies that are using our technology. And one of the first use cases that they're putting forward is something called platooning, where you'll actually have the first truck on the road with a driver and any other trucks on the road. We'll be operating autonomously essentially following like a train if you want on a highway, and then they'll have a starting location and a drop off location and that all of a sudden becomes a real world scenario, which makes use of the same sensors, LIDAR, radar cameras, et cetera. >>So from a trucking perspective, we look at it very similar to a car and automotive perspective because they need the same fundamental technologies. So pretty exciting. Like I said, what we do applies all over the place and again, all going to be connected. But grant, thanks for coming on. I really appreciate, I want to get your final thoughts, at least from my perspective on developers. When you see deep racer, you see that trend. It's kind of, they've got LIDAR, it's kind of a toy, but people geeking out on this. And so I would imagine that we're going to see an emergence of a software development environment where as a controlled sandboxes, cause yeah, they've got the concern with the industrial equipment. Exactly. Yeah. How do you balance that old school industrial mindset of, you know, IOT with the new rapid agile product development? Yeah. And to your point, we're going through that transition now. >>So this is where things like Sage maker come into play where I can develop out and develop and refine machine learning models in the cloud. You still have those tight control loops that you need and there's tools for that. So that's the deeply embedded stuff that's controlling actuators and whatnot. You still need that. But to your point, you need to be more iterative. You need to be more agile, need to develop according to the safety standards and the various industries that they might be in. So it's that is evolving and it's evolving at exactly the right pace. Really glad to see that evolution. But to your point, all of these devices are going to become interconnected. There's going to be new opportunities. And from a developer perspective, you know, we can't hire enough developers. No one can. It's really exciting whether it's IOT cloud developers or embedded developers. >>There's such an exciting future ahead. And I got to ask, this is just popped in my head. So I want to ask, cause I'm curious, um, spectrum and RF power is great, but you need connectivity to make an IOT device work, right? How do you guys, how does the car folks look at conductivity? Just when they get to a spot they can connect. So is it managing the spectrum? How are cars thinking about the connectivity? So we work very closely with the modem vendors. For instance, in today in cars you'll see Bluetooth, you'll see wifi, you'll see 4g. Obviously there's the emergence of 5g. Um, vehicle to vehicle communications is through something called DSRC. Essentially wifi 5g is going to come along, so now you're going to be able to have throughput and also what's called low latency. So quick turn around on your messages and the information being exchanged. >>So that too is evolving from a, from a QA software perspective, we'll make use of whatever modems there. But to your point, we also have to deal with the cases where I've lost connectivity. I still need that V vehicle to operate safely. And especially if you consider that the systems might be, um, uh, the systems might be connected or we don't want to make, make it such that they're dependent on that connectivity. So you have to have fail over scenarios and whatnot, but cars will become connected, devices will become connected. We're going to take advantage of that connectivity, but not be dependent on that connectivity. >>Well, Greg, please let me know when that, uh, personalized service is available so that my car can be found and detailed. They'd find it right in my driveway going lady, please. It's been a pleasure, a really cool stuff. Blackberry Kunis thank you for joining John. We'll be, we'll have to go check out that car for John furrier. I'm Lisa Martin. You're watching the cube live in Vegas at AWS. Reinvent 19. Thanks for watching.

>> live from New York. It's the Q covering AWS Global Summit 2019 brought to you by Amazon Web service, is >> welcome back here to New York City. You're watching the Cube, the worldwide leader in Enterprise Tech cover jumps to minimum. My co host for today is Cory Quinn and happy to welcome to the program. A first time guest on the program, says Heart O. B. Who is a senior leader of global business development with Healthcare Life. Scientists know this group and AWS thanks so much for joining us. All right, so you know, we love digging into some of the verticals here in New York City. Of course, it's been a lot of time on the financial service is peas we actually had, Ah, another one of our teams out of the eight of us. Imagine show going on yesterday in Seattle with a lot of the education pieces. So healthcare, life sciences in genomics, little bit of tech involved in those groups, a lot of change going on in that world. So give us a thumbnail if you would as toe what what's happening in your >> world so well just from a scope one of you Health care includes life set paid on provider Life sciences is far more by attacking its most medical device and then genomics and what we're seeing in those spaces. Let's start with health care. It's such a broad thing, will just sort of back to back and forth in health care itself. What we're sort of seeing their customs ask us to focus on and to help them do falls into three categories. First, is a lot of customers ask us to help them personalized the consumer health journey. You and I, all of us, are so accustomed to that frictionless experiences we have elsewhere and in health care. There's a lot more friction. And so we're getting a lot of enquiries and request for us to help them transform that experience. Make it frictionless. So an example That would be if you're familiar with Doc. Doc started here in New York. Actually, when you want a book, an appointment, Doc, Doc, you can normally, if you go online, I have to put information for insurance. You type it all. Then it's full of friction. Have to put all the fields in. They use one of our A I service's image recognition, and you simply hold up your card to the camera and it able to pull your in transporation, determine eligibility and look the right appointment for you. So that's an example of removing friction for the consumer of the health consume over the patient as they're trying to go to that health care and excessive category one frictionless experiences using AWS to support it with a i service is category, too. We're getting a lot of interest for us to help health systems predict patient health events. So anything of value base care the way you actually are able to change the cost. Quality Curve is predicting events, not just dealing with math and so using a i Am L service is on top of data to predict and forecast events is a big part of one example would be with sooner where they moved, they're healthy and 10 platform, which is a launch to a patient record platform onto AWS. About 223,000,000 individuals that are on that platform Men we did a study with him where way consume about 210,000 individual patient data and created a machine learning model this is published where you can predict congestive heart failure 15 months in advance of it actually occurring. So when you look at that, that prediction are forecasting that sort of one of the powers of this princess. What category number two is predicting health events, and then the last one I'd be remiss in leaving out is that you probably have heard a lot of discussion on physician and a clinician. Burnout to the frustrations of the nurses or doctors and Muslims have the heart of that is not having the right information the right time to take care of the right patient. Data liquidity and in Trop ability is a huge challenge, and a lot of our customers are asking us to help solve those problems with them. You know it hims. This year we announced, together with change Healthcare Change Healthcare said they want to provide free and troubling to the country on AWS, with the platform supporting that. So those are sort of three categories. Personalize the consumer health journey. Predicting patient health events and promoting intra ability is sort of the signals that we're seeing in areas that were actively supporting our customers and sort of elevating the human condition. >> It's very easy to look at the regulation around things like health care and say, Oh, that gets in the way and its onerous and we're not gonna deal with it or it should be faster. I don't think anyone actively wants that. We like the fact that our hospitals were safe, that health care is regulated and in some of the ways that it is at least. But I saw an artifact of that means that more than many other areas of what AWS does is your subject to regulatory speed of Sloane. A speed of feature announcement, as opposed to being able to do it as fast technology allows relatively easy example of this was a few years back. In order to run, get eight of us to sign a B A. For hip, a certification, you have to run dedicated tendency instances and will not changed about a year and 1/2 2 years ago or even longer. Depending it's it all starts to run together after a time, but once people learn something, they don't tend to go back and validate whether it's still true. How do you just find that communicating to your customers about things that were not possible yesterday now are, >> yeah, when you look at hip eligibility. So as you know, a devious is about over 100 him eligible service's, which means that these are so this is that so compliance that you start their compliance, Remember, is an outcome, not a future. So compliance is a combination of people process platform, and we bring the platform that's hip eligible, and our customers bring the people in process, if you will, to use that platform, which then becomes complying with regulatory requirements. And so you're absolutely right. There's a diffusion of sort of understanding of eligibility, a platform, and then they worked with customers have to do in order as a shared responsibility to do it. That diffusion is sometimes slower. In fact, there's sometimes misinformation. So we always see it work with our customers and that shared, responsive model so that they can meet their requirements as they come to the cloud. And we can bring platforms that are eligible for hip. They can actually carry out the work clothes they need to. So it's it's that money, you know, the way I think of it is. This when you think of compliance, is that if if I were to build for you a deadbolt for your door and I can tell you that this complies boasted of things, but you put the key under the mat way might not be complying with security and regular requirements for our house. So it's a share responsible. I'll make the platform be eligible and compliant, and so that collective does daytime and dusting. People are saying that there is a flat from this eligible, and then they have to also, in their response to work to the people in process potion to make the totality of it comply with the requirements for regulatory for healthcare regulatory requirements. >> Some of the interesting conversations I've had in the last few years in health care in the industry is collaborations that are going on, you know, how do we share data while still maintaining all of the regulations that are involved? Where does that leave us get involved? There >> should. That's a fact. There is a data sharing part of that did a liquidity story that we talked about earlier in terms of instability. I'll give an example of where AWS actually actively working in that space. You may be familiar with a service we launched last November at Reinvent called Amazon Campion Medical and Campion Medical. What it does is it looks at a medical note and can extract key information. So if you think back to in high school, when you used to read a book in highlighting yellow key concepts that you wanted to remember for an exam Amazon Carmen Medical Same thing exactly, can lift key elements and goes from a text blob, too discrete data that has relationship ontology and that allows data sharing where you where you need to. But then there's one of the piece, so that's when you're allowed to disclose there's one of me. Sometimes you and I want to work on something, but we want to actually read act the patient information that allows data sharing as well. So Amazon coming medical also allows you to read, act. Think of when a new challenge shows that federally protected doctor that's blacked out Amazon com for American also remove patient identifying information. So if you and I want to collaborate on research project, you have a set of data that you wanna anonima de identify. I have data information of I D identified. To put it together, I can use Amazon com Medical Read Act All the patient information Make it d identified. You can do the same. And now we can combine the three of us that information to build models, to look a research and to do data sharing. So whether you have full authority to to share patient information and use the ontological portion of it, or whether you want to do the identifying matter, Amazon competent medical helps you do that. >> What's impressive and incredible is that whether we like it or not, there's something a little special about health care where I can decide I'm not going to be on the Internet. Social media things all stop tweeting. Most people would thank me for that, or I can opt out of ride sharing and only take taxis, for example. But we're all sooner or later going to be customers of the health care industry, and as a result, this is some of that effects, all of us, whether we want to acknowledge that or not. I mean, where some of us are still young enough to believe that we have this immortality streak going on. So far, so good. But it becomes clear that this is the sort of thing where the ultimate customer is all of us. As you take a look at that, does that inform how AWS is approaching this entire sector? >> Absolutely. In fact, I'd like to think that a W brought a physician toe lead sector because they understood that in addition to our customer obsession that we see through the customer to the individual and that we want to elevate the human condition we wanted obsess over our customers success so that we can affect positive action on the lives of individuals everywhere. To me, that is a turn. The reason I joined it of U. S s. So that's it. Certainly practice of healthcare Life's I said on genomic Seti ws has been around for about six years. A doubIe s double that. And so actually it's a mature practice and our understanding of our customers definitely includes that core flame that it's about people and each of us come with a special story. In fact, you know the people that work in the U. S. Healthcare life, science team people that have been to the bedside there, people that have been adventure that I worked in the farm industry, healthcare, population, health. They all are there because of that thing you just said. Certainly I'm there because that on the entire practice of self life sciences is keenly aware of looking through the customers to the >> individual pieces. All right, how much? You know, mix, you know, definitely an area where compute storage are critically important than we've seen. Dramatic change. You know, in the last 5 to 10 years, anything specific you could share on that >> Genomics genomex is an area where you need incredible computer storage on. In our case, for example, alumina, which is one of our customers, runs about 85% of all gene sequencing on the planet is in aws customer stores. All that data on AWS. So when you look at genomex, real power of genomics is the fact that enables precision diagnostics. And so when you look at one of our customers, Grail Grail, that uses genomic fragments in the blood that may be coming from cancer and actually sequences that fragment and then on AWS will use the power of the computer to do machine learning on that Gino Mexicans from to determine if you might have one of those 1 10 to 12 cancers that they're currently screening for. And so when you talk to a position health, it really can't be done without position diagnostics, which depends on genomex, which really is an example of that. It runs on AWS because we bring compute and storage essentially infinite power. To do that you want, For example, you know the first whole genome sequence took 14 years. And how many billions of dollars Children's Hospital Philadelphia now does 1000 whole genome sequences in two hours and 20 minutes on AWS, they spike up 20,000 see few cores, do that desi and then moved back down. Genomics. The field that literally can't be. My humble opinion can't be done outside the cloud. It just the mechanics of needed. The storage and compute power is one that is born in the cloud on AWS has those examples that I shared with you. >> It's absolutely fantastic and emerging space, and it's it's interesting to watch that despite the fact there is a regulatory burden that everything was gonna dispute that and the gravity of what it does. I'm not left with sense that feature enhancement and development and velocity of releases is slower somehow in health care than it is across the entire rest of the stack. Is that an accurate assessment, or is there a bit of a drag effect on that? >> Do you mean in the health care customers are on AWS speaking >> on AWS aside, citizen customers are going to be customers. Love them. We >> do aws. You know, we obviously innovation is a rowdy and we release gosh everything. About 2011 we released 80 front service than features and jumped 1015 where it was like 702 jumped 2018. Where was 1957 features? That's like a 25 fold. Our pace of innovation is not going to slow down. It's going to continue. It's in our blood in our d. N. A. We in fact, hire people that are just not satisfied. The status quo on want to innovate and change things. Just, you know, innovation is the beginning of the end of the story, so, no, I don't have to spend any slowdown. In fact, when you add machine learning models on machine learning service that we're putting in? I only see it. An even faster hockey stick of the service is that we're gonna bring out. And I want you to come to reinvent where we're going to announce the mall and you you will be there and see that. All >> right, well, on that note thank you so much for giving us the update on healthcare Life Sciences in genomics. Absolutely. Want to see the continued growth and innovation in that? >> My pleasure. Thank you for having a show. All >> right. For Cory, Queen of Stupid Men. The Cube's coverage never stops either. We, of course, will be at eight of us reinvent this fall as well as many other shows. So, as always, thanks for watching the cue.

>> Live, from Orlando, Florida. It's theCube covering Microsoft Ignite, brought to you by Cohesity, and theCube's ecosystem partners. >> Welcome back everyone, to theCube's live coverage of Microsoft Ignite. I'm your host, Rebecca Knight, along with my cohost, Stu Miniman. We have two guests for this segment, we have Ross Smith, the Principle Program Manager at Microsoft, and Greg Taylor, who is the Director of Product Marketing at Microsoft. Thank you so much for joining us! >> Thanks for having us. >> So, I want to start off by talking about messaging. You are both legends in the Microsoft messaging world, sorry to be obsequious here. >> That just means we're old. >> You've been around a while, it's not your first rodeo. >> No, no. >> So, talk a little bit about what's new, what the enhancements you're doing for Enterprise, it is the most used app. >> Yeah. >> So we're launching Exchange Server 2019 this year. It's another version of on-premises exchange, it's incredible. We had 2000 people registered for the session, we had 1000 in the room. There's still some love for on-prem exchange, no doubt, so that's been a big thing we're talking about at Ignite this year. For those customers, and I'll be honest it's very much a release aimed at large Enterprise customers who want to keep some exchange on-prem. We strongly believe that small-medium business should be in the cloud, so we've focused on the kind of features that really large Enterprises really want to get from Exchange. >> Yeah, and then from a app perspective, we've been heavily invested with ALUP, Fry, WES and Android to bring a unique and valuable experience for both consumers and commercial users using both Office 365 and Exchange on-premises. So we now have a hundred million users using Outlook Mobile today, and it's been a great experience and we continue to evolve the app on a weekly basis, now. >> Can you talk a little bit about the evolution of the app and what kinds of features and enhancements you're using for both the consumers and Enterprise? >> Right, yeah. So the app originally began as a consumer acquisition, which we've now targeted and rebranded it as Outlook, and we've been heavily focused on bringing Enterprise features that our users know and love. Office 365 Groups is a great example of an experience that we built into the app that no other native mail client or third-party mail client can deliver today. We've delivered other Enterprise security-specific features like Azure Active Directory conditional access so customers can lock down what mobile apps can access the service and prevent any other client from doing so. And then, of course, there's in-tune app protection policies which allow us to, and customers to, ensure only the corporate data is protected and exclude the personal data, so that we can ensure there's no data leakage scenarios going. >> I wonder if we can step back for a second. I think about messaging, it's very diverse. I remember back in the '90s, I was helping companies get access to this whole "internet thing" and LANs and setting up and oh, we're going to go from faxes and memos to emails, show how old I am in this business, too. But today, our mobile devices, a lot of what we're doing companies, whether they have their own data-centers or doing their cloud, there's usually lots of different ways we communicate. My joke is, the best way to communicate with someone is probably the one they prefer to and hopefully aren't buried in. >> Yes. Because we all have the Slacks and all those other things out there. How do you view the word's game, how does the Exchange and Outlook and those fit into the overall portfolio and interact with everything else. >> From the Exchange side, email is dead. I've heard email is dead for I don't know how many years and well, email is still one of the primary communication methods we all use and rely upon. And so Exchange was one of the applications that kind of coined the mission-critical application moniker, right? 22 years ago, 20 years ago, Exchange was one of the mission-critical apps. But we actually kind of think of Exchange now as almost a service, a commodity, like the power. And most people, it's kind of interesting, we have the front and the back end of things, right? I'm thinking about the messaging infrastructure of the back, and Ross is now working on the client side. Most people see the client features and think of them as Outlook and client features, but a lot of them are Exchange features which are servicing the client. It's been a real kind of evolution. We've got to a point where nobody really cares about the back end, unless it's not there, then that's a problem, but most of the things servicing the client. >> And so what we see is that the transition from typical on-premises infrastructure to the cloud service usually, generally begins with email into the Office 365 stack, and that starts lighting up additional features. And then from a mobility perspective, we're seeing that that begins the on-ramp into mobile. Because, like Greg mentioned, we've had email capability on mobile devices integrated into Exchange for 17 years now, so it's a very ubiquitous thing to have on a mobile device, so it's just a natural progression just to use email on a mobile device. And then that begins lighting up as customers begin to move to Office 365, they start lighting up additional features like teams integration or Skype for business or any of the other Office apps. And then they just light up naturally. And then through all of our protection mechanisms we're able to ensure that that entire experience is secure from a IT business, and protecting it. >> Just speaking of the evolution of messaging in and of itself, what do you see, people who've been in the industry a long time, what do you see as next, I mean, where do we go from here? Email, they say, is dead, we know it's not dead, but what are the next kinds of generation of features and enhancements that you see customers really needing, and that you're working on at Microsoft? >> Alright, I think that Exchange was really interesting from an Office 365 perspective, as Exchange isn't really just a messaging engine anymore, it's a data store that we are, through things like Graph and all the other applications, is giving businesses a whole new way of looking at the data, and so we're pulling data from all the different places. Exchange is becoming almost a plumbing kind of infrastructure piece, but it's a key data source and I think the data is still there, the communication is still there, but I think much of the future development is in the client-side apps and how people interact with the data, and the back-end just becomes the infrastructure, right? >> Actually you bring up a great point. A premise that my Head of Research at Wikibon had is talking about Microsoft's position in AI today, and Office 365 and the messaging that you have, there's so much data there if you wanted it. What are people worrying about? How can a company understand that? How can Microsoft help businesses in general? There's a touchpoint that even an infrastructure as a service-provider wouldn't have, but you really get to the end-point and the end users in productivity, and that's a huge opportunity for Microsoft in the future as long as you're not messing with our data, you're not as heavy into, you know some of the other messaging people out there, that you're like, wait, why am I getting ads for that stuff, or, I think I talked about that stuff. >> And that's a great point, Stu, because going back to Outlook Mobile as an example, right? We're heavily invested in AI-driven capabilities into that app, zero-touch search, as an instance. You can go right in the app, tap one button and you see your favorite contacts, you get your Discover information from the Office Graph your next itinerary and travel information, and we're lighting up that functionality across the board throughout the app. Location-rich data, using Cortana time-to-leave services, so that you can get to a meeting at the right time, as opposed to a typical oh, it reminded me at 15 minutes and I got to hop 45 minutes down the other end of, where are we, West? In the West building, right? So we're building all that functionality into clients like Outlook Mobile and the rest of the stack to help drive that type of capabilities. >> And all of that data's in the back end, right? You said email is this repository of incredible business information, and so the question is how you leverage that, how do you take what's in there and surface it in a way that makes sense to the users? It's a fascinating time at the moment, where the data's there, we just got to know how to use it in the right way. And I agree, using it in the right way and not using it to sell stuff, that's absolutely our approach to it, so, super important. >> And do you work closely with clients to come up with this new kind of functionality? One of the biggest challenges that so many technology companies face is staying on the cutting edge of these ideas and innovation, so how closely are you working with customers to dream up new functionality? >> Yeah, we're working with customers all the time. We do it through a variety of different channels. We have UserVoice, which allows customers and end users to directly interface and provide their ideas. We have private preview programs, where we target customers about specific new feature sets. TAP programs, like we're doing with Exchange 2019, as well as future releases within Office 365 that enable that type of experience. >> Exchange, I think, historically, has always been very customer focused, very community focused. We have a great bunch of MVPs, the TAP program, the Technology Adoption Program, is a bunch of customers that deploy our pre-production code in production for us, so we've got some real big customers who, they're running versions of Exchange that the world hasn't seen. >> One of the themes we heard in Satya's keynote yesterday is business productivity, and we know one of the biggest challenges out there is, you get this new stuff, and you're like, well, I'm going to pretty much just try to use it the way I always have been doing it, and some of us have been using emails for decades and decades and I look at my own usage and wow, I'm probably a bit out of date. If I could just wipe my brain and say 'okay, here's this cool new tool' that could do all this stuff, we wouldn't even call it email, we'd call it something different. I know you guys do things like the Channel 9 broadcast, I'm sure there's lots of things on the website, how do you help customers learn to use the new stuff and get rid of some of the things, the old habits that they had in using these technologies. And can you get everybody to stop 'reply to all' in the big group, that would be super helpful. >> Work on that please. >> That's interesting, we're building it into the apps, to be honest. We're doing a lot of work whenever we release new features to light up an experience within the app that guide the user on how to use that new functionality to help them understand what they can do with the app, as well as simplifying the overall app structure. You look at some of our apps, they become very bloated in terms of all the widgets you have available and knobs to control it and we're trying to simplify that stack. We're refreshing with Outlook 2019 and Office Pro Plus. We're refreshing the user interface on desktop, we're doing the same in Mac. We've done it in Outlook for iOS, we're redoing OA, as well, and Office 365, all to enhance and simplify the experience, and, as well, provide a consistent experience across all the endpoints, which will help. >> If the question is here, how do we wean people off email, how do we get them off email. >> Just their old habits and patterns. >> And you know, it's kind of funny, but it still works. I remember having a conversation with somebody once who, it was a presentation we did once, and it was a team who did more of a social kind of thing, and their view was, they put a picture of the Queen of England up on a slide and said 'Email is old, like the Queen of England.' And my response was, well so are fire and the wheel, but they seem to be hanging around pretty well, so far. So I think there are certain things for which email is still king, but it's evolving and changing. I think we're still waiting for the real killer app that replaces email. >> It's not Yammer. >> It's not what? (laughter) >> It's not Yammer. >> I'm not going on camera saying that. The way I prefer to think of it is, I don't really matter what the client is or how you all interact with it, if we can all use an app that suits our own style of working, right? My inbox is zero inbox. I'm a zero inbox kind of guy, right? If I can work like that and interact with people who want to work on a different client, I'm happy. >> Not to go on the Yammer piece, but you made me think a little bit about acquisitions. Big acquisitions, like LinkedIn and Github, messaging ties into both of those quite a bit. Any visibility you can give? I know there's some integrations there, but how does that look? >> So we're launching LinkedIn integration with Outlook for iOS and Android as we speak. That's something we'll be rolling out shortly, and it enables, within the people or contact card, you can quickly see information from their LinkedIn data set, as well as the ability for us to push data from Office 365 into LinkedIn, so that LinkedIn users can also see relevant information about who that person's interacting with from a calendar type of perspective. So we're definitely taking that availability and providing that through our mutual customers. >> Great. Well, Ross and Greg, thank you so much for coming on the show, it was >> Thanks for having us. really a pleasure having you. >> Yeah, it was great. >> I'm Rebecca Knight for Stu Miniman, we will have more of theCube's live coverage from the Orange County Civic Center Microsoft Ignite in just a little bit. (electronic music)

(techy music) >> Live from Toronto, Canada, it's theCUBE covering Blockchain Futurist Conference 2018, brought to you by theCUBE. (techy music) >> Hello, everyone, and welcome back. This is the live CUBE coverage here in Toronto, Ontario here in Canada for the Untraceable Blockchain Futurist Conference. This is day two of wall-to-wall CUBE coverage. We've got great presentations going on, live content here on theCUBE as well as in the sessions, great networking, but more important all the thought leaders in the industry around the world are coming together to try to set the standards and set up a great future for cryptocurrency and blockchain in general. Our next two guests are very special guests for theCUBE and we're excited to have them on, the Honorable Wayne Caines, Minister of National Security for the government of Bermuda, and Kevin Richards, concierge on the Fintech business development manager, part of the Bermuda Business Development Agency. Thank you guys for coming on, really appreciate the time. >> Thanks very much. >> Thank you for having us. >> Why this is so important is that we heard your presentation onstage, for the folks, they can catch it online when they film it and record it, but the Bermuda opportunity has really emerged as a shining light around the world, specifically in the United States. In California, where I live, Silicon Valley, you guys are now having great progress in hosting companies and being crypto-friendly. Take a minute to explain what's happening, what's the current situation, why Bermuda, why now, what's developing? >> This has all happened over the last eight months. We were looking in November of 2017 to go in the space. In January we went to the World Economic Forum in Davos in Switzerland. When we went to Davos in Switzerland something very interesting happened. People kept coming up to us, I was like the Hound of the Baskerville, or the Pied Piper if you please, and so, so many people were coming up to us finding out more information about Bermuda. We realized that our plan that we thought we could phase in over 18 months, that it had to be accelerated. So, whilst we were at the World Economic Forum in Davos we said to people, "Listen, if you want to change the world, "if you want to help Bermuda to grow, if you're serious," this is a Thursday, "Meet us in Bermuda on the Monday morning." On the Monday morning there are 14 different people in the room. We sat in the room, we talked about what we wanted the world to be, how could Bermuda be in place, what are the needs in this industry, and by the Wednesday we had a complete and total framework, and so we split up into industries. Number one was ICOs, we wanted to look at how to regulate the ICO market. Number two, we wanted to look at digital asset exchanges or cryptocurrencies or how do we regulate security tokens and utility tokens and what do exchanges look like, how do we do exchanges in Bermuda, and then we wanted to talk about education and setting up incubators. And so, come fast forward to July, August, we have an ICO bill in place that allows us to look at setting up ICOs in Bermuda. We wanted to focus on the legal and the regulatory framework, so this is a nascent space. A number of people are concerned about the dark actors, and so we wanted to set up a jurisdiction that traded on our international reputation. Now, remember for the last 60 years reinsurance, finance, captives, hedge funds, people in the financial services market have been coming to Bermuda because that's what we do well. We were trading on the reputation of our country, and so we couldn't do anything to jeopardize that. And so, when we put in place the ICO legislation we had consultants from all over the world, people that were bastions and beasts in industry, in the ICO industry and in the crypto world came to Bermuda and helped us to develop the legislation around setting up an ICO. So, we passed the ICO legislation. The next phase was regulating cryptocurrencies, regulating digital assets, and we set up a piece of legislation called the Digital Asset Business Act, and that just regulates the digital asset space exchanges, and the last piece we wanted to do was a banking piece, and this is the last and we believe the most significant piece. We were talking to people and they were not able to open up bank accounts and they were not able to do, so we said, "Listen, "the Bermuda banking environment is very strong." Our banking partners were like, "Listen, "we love what you guys are doing, "but based on our corresponding banking relationships "we don't want to do anything to jeopardize that space," but how could we tell people to come to Bermuda, set up your company, and they can't open bank accounts? And so, we looked at, we just recently passed creating a new banking license that allows people to set up their business in Bermuda and set up banking relationships and set up bank accounts. That simply has to receive the governor's Royal Assent. As you know, Bermuda's still a British pan-territory, and financial matters have to get the okay of the Queen, and so that is in the final stages, but we're excited, we're seeing an influx, excuse me, a deluge of people coming to Bermuda to set up their companies in Bermuda. >> So, the first two pieces are in place, you have the legislation... >> Mm-hm. >> Mm-hm. >> You have the crypto piece, and now the banking's not yet, almost approved, right? >> It's there, it simply has to get the final sign-off, and we believe that it should take place within the next two weeks. So, by the time this goes to air and people see it we believe that piece will be in place. >> So, this is great news, so the historical perspective is you guys had a good reputation, you have things going on, now you added on a new piece not to compromise your existing relationships and build it on. What have you guys learned in the process, what did you discover, was it easy, was it hard, what are some of the learnings? >> What we've learnt is that KYC, know your customers, and the AML, anti-money laundering, and terrorist financing pieces, those are the critical pieces. People are looking in this space now for regulatory certainty, so when you're talking about people that are in the space that are doing ICOs of $500 million or exchanges that are becoming unicorns, a billion dollar entity in three months, they want a jurisdiction that has regulatory certainty. Not only do they want a jurisdiction with regulatory certainty, they want to open up the kimono. What has this country done in the past, what do they have to trade on? We're saying you can go to a number of countries in the world, but look at our reputation, what we're trading on, and so we wanted to create a space with regulatory certainty, and so we have a regulatory body in Bermuda called the Bermuda Monetary Authority, and they are an independent regulator that they penned the Digital Asset Business Act, and so the opportunity simply for people around the world saying, "Listen, we want to do an ICO, "we want to set up an exchange. "Where's a country that we can go to that has a solid reputation? Hold on, how many countries have law surrounding"-- >> Yeah. >> "The Digital Asset Business Act, how many ICO countries have laws. Guess what, Bermuda becomes a standout jurisdiction in that regard. >> Having a regulation signaling is really important, stability or comfort is one, but the one concern that we hear from entrepreneurs, including, you know, ourselves when we look at the market is service providers. You want to have enough service providers around the table so when I come in and domicile, say, in Bermuda you want to have the banking relationships, you want to have the fiduciary-- >> Yes. >> You want to have service providers, law firms and other people. >> Yes. >> How are you guys talking about that, is that already in place? How does that fit into the overall roadmap for your vision? >> I don't want to beat a horse (laughs) or beat a drum too much, that is what we do as a country. So, we have set up, whether it's a group of law firms and the Bermuda, excuse me, the Bermuda Monetary Authority, the Bermuda that's the register of companies that sets up the companies. We have Kevin, and Kevin will tell you about it, he leads our concierge team. So, it's one throat to choke, one person that needs, so when you come to really understand that the ease of business, a county that's business-friendly with a small country and with a small government it's about ease of reference. Kevin, tell us a little about the concierge team. >> It's like the Delaware of the glove, right? >> Absolutely. >> Come in, domicile, go and tell us how it works. >> I'll give you a little bit of background on what we do on the concierge side. So, one thing that we identified is that we want to make sure that we've got a structure and a very clearly defined roadmap for companies to follow so that process from when they first connect with the BDA in Bermuda to when they're incorporated and set up and moved to Bermuda to start running their business is a seamless process that has very clearly identifiable road marks of different criteria to get through. So, what I do as a concierge manager is I will identify who that company needs to connect with when they're on the ground in Bermuda, get those meetings set up for when they come down so that they have a very clearly mapped out day for their trip to Bermuda. So, they meet with the regulator, they meet with the government leaders, they meet with the folks who've put together legislation that, obviously you mentioned the service providers, so identifying who's the right law firm, corporate service provider, advisory firm on the ground in Bermuda, compliance company, and then making sure that depending on what that company wants to achieve out of their operation in Bermuda they've got an opportunity to connect with those partners on their first trip so that they can put that road map together for-- >> So, making it easy... >> Making it very easy to set up in Bermuda. >> So, walk me through, I want to come down, I want to do business-- >> Yeah. >> Like what I hear, what do I do? >> So, you send me an email and you say, "Listen, Wayne, we're looking at "doing an ICO launch in Bermuda. "I would like to meet with the regulator. "Can you put a couple law firms in place," in an email. I zip that over to Kevin or you go on our Fintech.bm website-- >> Yeah, I was going to say... >> Fintech.bm website, and Kevin literally organizes a meeting. So, when you come to Bermuda for your meeting you have a boardroom and all the key players will be in the boardroom. >> Got it. >> If you need somebody to pick you up at the airport, if you need a hotel, whatever you need from soup to nuts our team actually makes that available to you, so you're not running around trying to find different people to meet, everyone's there in the room. >> And the beauty of Bermuda is that, you know, the city of Hamilton's two square kilometers, so your ability to get a lot done in one day is, I think, second to nowhere else on the planet, and working with the BDA concierge team you're, you know, we connect with the client before they come down and make sure we identify what their needs are. >> The number one question I have to ask, and this is probably the most important for everyone, is do they have to wear Bermuda shorts? (laughs) >> When you come you tell us your size, you tell us what size and what color you want and we'll make sure, so the... I tell this story about the Bermuda shorts. The Bermuda shorts, Bermuda's always had to adapt and overcome. Bermuda, we have something called the Bermuda sloop and it's a sailing rig, and so we... The closest port to Bermuda is Cape Hatteras in North Carolina and we wanted to cut down the time of their voyage, so we created a sailing rig called the Bermuda rig or the Bermuda sloop. Over the years that has become the number one adopted rig on sailing boats. We've always had to adapt and become innovative. The Bermuda shorts were a way to adapt and to get through our very hot climate, and so if you look at just keep that in mind, the innovation of the Bermuda sloop and the Bermuda shorts. Now, this Fintech evolution is another step in that innovation and a way that we take what's going on in the world and adapt it to make it palatable for everyone. >> What's the brand promise for you guys when you look at when entrepreneurs out there and other major institutions, especially in the United States, again, Silicon Valley's one of the hottest issues around-- >> Yes. >> Startups for expansion, right now people are stalled, they don't know what to do, they hear Malta, they hear other things going on. What's the promise that you guys are making to the law firms and the people, entrepreneurs out there trying to establish and grow? >> The business proposition is this, you want a jurisdiction that is trading on years of solid regulation, a country and a government that understands business, how to be efficacious in business. When you come to Bermuda you are trading on a country that this is what we've done for a living. So, you don't have to worry about ethical government, is your money going to be safe. We have strong banking relationships, strong law firms, top tier law firms in Bermuda, but more importantly, we have legislation that is in place that allow you to have a secure environment with a clear regulatory framework. >> What should people look for as potentially might be gimmicks for other countries to promote that, you know, being the Delaware for the globe and domiciling, and what are some of the requirements? I mean, some have you've got to live there, you know, what are some of the things that are false promises that you hear from other potential areas that you guys see and don't have to require and put the pressure on someone? >> When you hear the people say, "We can turn your company around in the next day." That we don't require significant KYC and AML. Red flags immediately go up with the global regulatory bodies. We want when a person comes to Bermuda to know that we have set what we believe is called the Bermuda Standard. When you come to Bermuda you're going to have to jump through some legal and regulatory hoops. You can see regulation, the ICO regulation and the Digital Asset Business Act on BermudaLaws.bm. BermudaLaws.bm, and you can go through the legislation clause by clause to see if this meets your needs, how it will affect your business. It sets up clearly what the requirements are to be in Bermuda. >> What's the feedback from business, because you know, when you hear about certain things, that's why Delaware's so easy, easy to set up, source price all know how to do in a corporation, let's say in the United States-- >> We don't have the SEC handicaps that they have in America, going from jurisdiction to jurisdiction. You're dealing with a colony that allows you to be in a domicile that all of the key players finances... We have a number of the key elements that are Bermuda. We're creating a biosphere that allows a person to be in a key space, and this is, you have first move as advantage in Bermuda. We have a number of things that we're working on, like the Estonia model of e-residency, which we will call EID, that creates a space that you are in Bermuda in a space that is, it's protected, it's governed. We believe that when companies set up in Bermuda they are getting the most secure, the strongest business reputation that a country could have. >> The other thing I would add, I'll just say, you know, quality, certainty, and community is what that brand represents. So, you know, you've got that historical quality of what Bermuda brings as a business jurisdiction, you have the certainty of the regulation and that pathway to setting your company up and incorporating in Bermuda, and then the community piece is something that we've been working on to make sure that any of the players that are coming to Bermuda and connecting with Bermuda and setting up there, they feel like they're really integrated into that whole community in Bermuda, whether it be from the government side, the private sector side. You can see it with the companies that have set up that are here today, you know, they really have embraced that Bermuda culture, the Bermuda shorts, and what we're really trying to do as a jurisdiction in the tech space. >> What can I expect if I domicile in Bermuda from a company perspective, what do I have to forecast? What's the budget, what do I got to do, what's my expectation? Allocate resources, what's going to be reporting, can you just give us some color commentary? >> So, with reference, it depends what you're trying to do, and so there will be different requirements for the ICO legislation. For the ICO legislation a key piece of the document actually is the whitepaper. Within the whitepaper you will settle what your scope of business is, what do you want to do, what you know, everything, everything that you require will be settled in your whitepaper. After the whitepaper is approved and if it is indeed successful, you go to the Bermuda Monetary Authority and they will outline what they require of you, and very shortly thereafter you will able to set up and do business in Bermuda. With reference to the digital asset exchanges, the Digital Asset Business Act, such a clear guideline, so you're going to need to have a key man in Bermuda, a key woman in Bermuda. >> Yeah. >> You're going to need to have a place of presence in Bermuda, so there are normal requirements-- >> There's levels of requirements based upon the scope. >> Absolutely. >> So, if you run an exchange it has to be like ghosting there. >> Yeah, yeah, you need boots on the ground. >> And that's why the AML and the KYC piece is so important. >> Yeah. Well, I'm super excited, I think this is a great progress and this has been a big uncertainty, you know, what does this signal. People have, you know, cognitive dissonance around some-- >> Yes. >> Of the decisions they're making, and I've seen entrepreneurs flip flop between Liechtenstein, Malta, Caymans. >> Right. >> You know, so this is a real concern and you guys want to be that place. >> Not only, we will say this, Bermuda is open for business, but remember, when you see the requirements that we have some companies won't meet the standard. We're not going to alter the standard to accommodate a business that might not be what we believe is best for Bermuda, and we believe that once people see the standard, the Bermuda Standard, it'll cascade down and we believe that high tides raises all boats. >> Yeah. >> We have a global standard, and if a company meets it we will be happy for them to set up and do business in Bermuda. >> Well, I got to say, it's looking certainly that leaders like Grant Fondo in Silicon Valley and others have heard good things. >> Yeah. >> How's been the reaction for some of the folks on the East Coast, in New York and around the United States and around the world? What has been some of the commentary, what's been the anecdotal feedback that you've heard? >> We're meeting three and four companies every day of the week. Our runway is full of Fintech companies coming to Bermuda, from... We have insurtech companies that are coming in Bermuda, people are coming to Bermuda for think tanks, to set up incubators and to do exploratory meetings, and so we're seeing a huge interest in Bermuda the likes have not been seen in the last 20 years in Bermuda. >> Well, it's been a pleasure chatting with you and thanks for sharing the update and congratulations. We'll keep in touch, we're following your progress from California, we'll follow up again. The Honorable Wayne Caines, the Minister of National Security of the government of Bermuda, and Kevin Richards, concierge taking care of business, making it easy for people. >> Oh, yeah, oh, yeah. >> We'll see, I'm going to come down, give me the demo. >> We're open for business and we're looking forward to seeing everybody. (laughs) >> Thank you for the opportunity. >> Thank you very much. >> Thank you. >> Major developments happening in the blockchain, crypto space. We're starting to see formation clarity around, standards around traditional structures but not so traditional. It's not your grandfather's traditional model. This is what's great about blockchain and crypto. CUBE coverage here, I'm John Furrier, thanks for watching, stay with us. More day two coverage after this short break. (techy music)

>> Announcer: Live from San Francisco it's the CUBE covering Spark Summit 2017 brought to you by Data Bricks. >> Welcome back to the CUBE, we're continuing to take about two people who are not just talking about things but doing things. We're happy to have, from Novetta, the Director of Predictive Analytics, Mr. Rob Lantz. Rob, welcome to the show. >> Thank you. >> And off to my right, George, how are you? >> Good. >> We've introduced you before. >> Yes. >> Well let's talk to the guest. Let's get right to it. I want to talk to you a little bit about what does Novetta do and then maybe what apps you're building using Spark. >> Sure, so Novetta is an advanced analytics company, we're medium sized and we develop custom hardware and software solutions for our customers who are looking to get insights out of their big data. Our primary offering is a hard entity resolution engine. We scale up to billions of records and we've done that for about 15 years. >> So you're in the business end of analytics, right? >> Yeah, I think so. >> Alright, so talk to us a little bit more about entity resolution, and that's all Spark right? This is your main priority? >> Yes, yes, indeed. Entity resolution is the science of taking multiple disparate data sets, traditional big data, and taking records from those and determining which of those are actually the same individual or company or address or location and which of those should be kept separate. We can aggregate those things together and build profiles and that enables a more robust picture of what's going on for an organization. >> Okay, and George? >> So what did you do... What was the solution looking like before Spark and how did it change once you adopted Spark? >> Sure, so with Spark, it enabled us to get a lot faster. Obviously those computations scaled a lot better. Before, we were having to write a lot of custom code to get those computations out across a grid. When we moved to Hadoop and then Spark, that made us, let's say able to scale those things and get it done overnight or in hours and not weeks. >> So when you say you had to do a lot of custom code to distribute across the cluster, does that include when you were working with MapReduce, or was this even before the Hadoop era? >> Oh it was before the Hadoop era and that predates my time so I won't be able to speak expertly about it, but to my understanding, it was a challenge for sure. >> Okay so this sounds like a service that your customers would then themselves build on. Maybe an ETL customer would figure out master data from a repository that is not as carefully curated as the data warehouse or similar applications. So who is your end customer and how do they build on your solution? >> Sure, so the end customer typically is an enterprise that has large volumes of data that deal in particular things. They collect, it could be customers, it could be passengers, it could be lots of different things. They want to be able to build profiles about those people or companies, like I said, or locations, any number of things can be considered an entity. The way they build upon it then is how they go about quantifying those profiles. We can help them do that, in fact, some of the work that I manage does that, but often times they do it themselves. They take the resolve data and that gets resolved nightly or even hourly. They build those profiles themselves for their own purpose. >> Then, to help us think about the application or the use case holistically, once they've built those profiles and essentially harmonized the data, what does that typically feed into? >> Oh gosh, any number of things really. Oh, shoot. We've got deployments in AWS in the cloud, we've got deployments, lots of deployments on premises obviously. That can go anywhere from relational databases to graph query language databases. Lots of different places from there for sure. >> Okay so, this actually sounds like everyone talks now about machine learning and forming every category of software. This sounds like you take the old style ETL, where master data was a value add layer on top, and that was, it took a fair amount of human judgment to do. Now, you're putting that service on top of ETL and you're largely automating it, probably with, I assume, some supervised guidance, supervised training. >> Yes, so we're getting into the machine learning space as far as entity extraction and resolution and recognition because more and more data is unstructured. But machine learning isn't necessarily a baked in part of that. Actually entity resolution is a prerequisite, I think, for quality machine learning. So if Rob Lantz is a customer, I want to be able to know what has Rob Lantz bought in the past from me. And maybe what is Rob Lantz talking about in social media? Well I need to know how to figure out who those people are and who's Rob Lantz and who's Robert Lantz is a completely different person, I don't want to collapse those two things together. Then I would build machine learning on top of that to say, right, now what's his behavior going to be in the future. But once I have that robust profile built up, I can derive a lot more interesting features with which to apply the machine learning. >> Okay, so you are a Data Bricks customer and there's also a burgeoning partnership. >> Rob: Yeah, I think that's true. >> So talk to us a little bit about what are some of the frustrations you had before adopting Data Bricks and maybe why you choose it. >> Yeah, sure. So the frustrations primarily with a traditional Hadoop environment involved having to go from one customer site to another customer site with an incredibly complex technology stack and then do a lot of the cluster management for those customers even after they'd already set it up because of all the inner workings of Hadoop and that ecosystem. Getting our Spark application installed there, we had to penetrate layers and layers of configuration in order to tune it appropriately to get the performance we needed. >> David: Okay, and were you at the keynote this morning? >> I was not, actually. >> Okay, I'm not going to ask you about that then. >> Ah. >> But I am going to ask you a little bit about your wishlist. You've been talking to people maybe in the hallway here, you just got here today but, what do you wish the community would do or develop, what would you like to learn while you're here? >> Learning while I'm here, I've already picked up a lot. So much going on and it's such a fast paced environment, it's really exciting. I think if I had a wishlist, I would want a more robust ML Lib, machine learning library. All the things that you can get on traditional, in scientific computing stacks moved onto a Spark ML Lib for easier access. On a cluster would be great. >> I thought several years ago ML Lib took over from Mahoot as the most active open source community for adding, really, I thought, scale out machine learning algorithms. If it doesn't have it all now, or maybe all is something you never reach, kind of like Red Queen effect, you know? >> Rob: For sure, for sure. >> What else is attracting these scale out implementations of the machine learning algorithms? >> Um? >> In other words, what are the platforms? If it's not Spark then... >> I don't think it exists frankly, unless you write your own. I think that would be the way to go. That's the way to go about it now. I think what organizations are having to do with machine learning in a distributed environment is just go with good enough, right. Whereas maybe some of the ensemble methods that are, actually aren't even really cutting edge necessarily, but you can really do a lot of tuning on those things, doing that tuning distributed at scale would be really powerful. I read somewhere, and I'm not going to be able to quote exactly where it was but, actually throwing more data at a problem is more valuable than tuning a perfect algorithm frankly. If we could combine the two, I think that would be really powerful. That is, finding the right algorithm and throwing all the data at it would get you a really solid model that would pick up on that signal that underlies any of these phenomena. >> David: Okay well, go ahead George. >> I was going to ask, I think that goes back to, I don't know if it was Google Paper, or one of the Google search quality guys who's a luminary in the machine learning space says, "data always trumps algorithms." >> I believe that's true and that's true in my experience certainly. >> Once you had this machine learning and once you've perhaps simplified the multi-vendor stack, then what is your solution start looking like in terms of broadening its appeal, because of the lower TCO. And then, perhaps embracing more use cases. >> I don't know that it necessarily embraces more use cases because entity resolution applies so broadly already, but what I would say is will give us more time to focus on improving the ER itself. That's I think going to be a really, really powerful improvement we can make to Novetta entity analytics as it stands right now. That's going to go into, we alluded to before, the machine learning as part of the entity resolution. Entity extraction, automated entity extraction from unstructured information and not just unstructured text but unstructured images and video. Could be a really powerful thing. Taking in stuff that isn't tagged and pulling the entities out of that automatically without actually having to have a human in the loop. Pulling every name out, every phone number out, every address out. Go ahead, sorry. >> This goes back to a couple conversations we've had today where people say data trumps algorithms, even if they don't say it explicitly, so the cloud vendors who are sitting on billions of photos, many of which might have house street addresses and things like that, or faces, how do you make better... How do you extract better tuning for your algorithms from data sets that I assume are smaller than the cloud vendors? >> They're pretty big. We employ data engineers that are very experienced at tagging that stuff manually. What I would envision would happen is we would apply somebody for a week or two weeks, to go in and tag the data as appropriate. In fact, we have products that go in and do concept tagging already across multiple languages. That's going to be the subject of my talk tomorrow as a matter of fact. But we can tag things manually or with machine assistance and then use that as a training set to go apply to the much larger data set. I'm not so worried about the scale of the data, we already have a lot, a lot of data. I think it's going to be getting that proof set that's already tagged. >> So what you're saying is, it actually sounds kind of important. That actually almost ties into what we hear about Facebook training their messenger bot where we can't do it purely just on training data so we're going to take some data that needs semi-supervision, and that becomes our new labeled set, our new training data. Then we can run it against this broad, unwashed mass of training data. Is that the strategy? >> Certainly we would get there. We would want to get there and that's the beauty of what Data Bricks promises, is that ability to save a lot of the time that we would spend doing the nug work on cluster management to innovate in that way and we're really excited about that. >> Alright, we've got just a minute to go here before the break, so I wanted to ask you maybe, the wish list question, I've been asking everybody today, what do you wish you had? Whether it's in entity resolution or some other area in the next couple of years for Novetta, what's on your list? >> Well I think that would be the more robust machine learning library, all in Spark, kind of native, so we wouldn't have to deploy that ourselves. Then, I think everything else is there, frankly. We are very excited about the platform and the stack that comes with it. >> Well that's a great ending right there, George do you have any other questions you want to ask? Alright, we're just wrapping up here. Thank you so much, we appreciate you being on the show Rob, and we'll see you out there in the Expo. >> I appreciate it, thank you. >> Alright, thanks so much. >> George: It's good to meet you. >> Thanks. >> Alright, you are watching the CUBE here at Spark Summit 2017, stay tuned, we'll be back with our next guest.