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Rod Stuhlmuller & Eric Norman | AWS re:Invent 2022


 

>>Oh, welcome back to the Cube here at aws Reinvent 22. As we continue our coverage here, the AWS Global Showcase, the Startup Showcase, John Wall is here hosting for the Cube as we've been here all week. Hope you're enjoying our coverage here. This is day three, by the way. We're wrapping it up shortly with us to talk about what's going on in the, kind of the hotel world in it and what's going on in the cloud, especially at I hg is Eric Norman, head of infrastructure, architecture, and innovation at I H G Hotels and Resorts. Eric, good to see you, >>Sir. Oh, thank you. And thank you for inviting me. Yeah, >>You bet. Glad to have you board here on the queue. First time, I think too, by the way, right? >>It is. And can I just tell you who IHG is >>Real quick? Yeah, wait a second. First I want another rest. I got Introduc to Rod Stuller, who is the Vice president and of Solutions marketing at Aviatrix and Rod. Good to see you, sir. Thanks a lot. Now let's talk about I ih. >>Great. Well, IHGs a a hospitality company, it's been around for 200 years, that has 17 brands globally in over a hundred countries. We sleek, you know, up could up to 888,000 people a night. So it's a pretty large company that we compete with, you know, all the hotel companies globally. >>So let's talk about your, your footprint right now in, in terms of what your needs are, because you've mentioned obviously a lot of, you have a lot of customers needs, you have a lot of internal stakeholder needs. Yeah. So just from that perspective, how are you balancing out, you know, the products you wanna launch as opposed to the, on the development side and the maintenance side? >>Yeah, I mean we, we have focused our, our attention to our, our guests and our hotels globally and, and taking technology and from a foundation, getting it at, at the edge so that way the consumer and the hotel owner can deliver a quality product to a guest experience. You know, we've have moved larger, a large deployment of our mission critical applications over the last five years really, of moving into more SaaS and infrastructure like AWS and GCP and, and leveraging their global scale to be able to deliver at the edge or get closer to the edge. And so we've, you know, I'm pretty sure you've seen, you know, kind of people building, you know, mission critical apps. You know, probably in the last three years it's probably escalating and more of like a hockey stick of moving stuff. I'd love to hear what AVIA is seeing. Oh >>Yeah. Now we're, we're seeing that quite a bit, right? As people move into the cloud, it's now business critical applications that are going there. So good enough isn't good enough anymore, right? It has to be, you know, a powerful capability that's business critical, can support that, give people the ability to troubleshoot it when something goes wrong. And then multi-cloud, you mentioned a couple different cloud companies, a lot of enterprises are moving to multiple clouds and you don't want to have to do it differently in every cloud. You want a infrastructure management layer that allows you to do that across >>Clouds. So how do you go about that, you know, deciding what goes where. I mean, it sounds like a simple question, but, but if you are dealing in a lot of different kinds of environments, different needs and different requirements, whatever, you know, how are you sorting out, delegating, you know, you know, you're, you're you're gonna be working here, you're gonna be >>Working there. Yeah. So we built some standards base that says, you know, certain types of apps, you know, transactional base, you know, go to this cloud provider and data analytics that's gonna go to another, another cloud provider based on our decision of key capability, native capability, and, and also coverage. You know, cuz we are in China, right? You know, you know, I, I've gotta be able to get into China and, and build not only a network that can support that, but also business apps locally to meet, compete with compliance, regulatory type activities. I mean, even in, in the US market, I got, you know, California privacy laws, you know, you have globally, you've gotta deal with getting data applications into compliance for those globally, right? >>Yeah. So, so you got that compliance slash governance Yeah. Issue. Huge issue. Yeah. I would think for you, you gotta decide who's gonna get to what when, and also we have to meet certain regulatory standards as you pointed out. And not just there, but you got European footprint, right? I mean, you're global. Yeah. So, so you know, handling that kind of scope or scale, what kind of nightmares or challenges does that provide you and how's Aviatrix helping you solve >>That? Yeah, in the early days, you know, we were using cloud native, you know, constructs for networking and a little bit of a security type angle to it. What we found was, you know, you can't get the automation you need. You can't get the, the scalability, you know, cuz we're, we're trying to shift left our, you know, our DevOps and our ability to deploy infrastructure. Aviatrix had come in and, and provided a, a solution that gets us there quicker than anybody else. It's allow us to, you know, build a mesh network across all our regions globally. I'm able to deploy, you know, new landing zones or, you know, public cloud fairly quickly with my, you know, networking construct. We also, we found that because we are a multi hybrid cloud, we, we introduced on the edge a a new network. We had to introduce a performance hub architecture that's using Equinix that sits in every region in every public cloud and partner. Cuz all our partners, you know, we, we've moved a lot of stuff to sas. You know, Amadeus is our centralized reservation system. That's our key, you know? Sure. You know, reservation tool, it's so sourced out. I need to bring them in and I need to get data that's closer to where, in a region to where it needs the land so I can process it. Right. >>And it's a big world out there too. I mean, you're, you're not in your head Rod. So talk about if you would share some of the, the aviatrix experience in that regard. When you have a client like this that has these, you know, multinational locations and, and yet you're looking for some consistency and some uniformity. You don't, you know, you can't be reinventing the wheel every time something pops up, right? >>Right. No. And then, and it's about agility and speed and, you know, being able to do it with less people than you used to have to do things, right? You, you want to be able to give the developers what they need when they need it. There was a time when people were going around it, swiping their credit card and, and saying, it doesn't give me what I need. And so cloud is supposed to change that. So we're trying to deliver the ability to do that for the developers a lot faster than had been done in the past. But at the same time, giving the enterprise the controls, the security, the compliance that they need. And sometimes those things got in the way, but now we're building systems that allow that to happen at, at the piece that developers needed to happen. >>But what Rod said about, you know, one of the big things you sparked my thinking is it also, you know, building a overlay of the cloud native construct allows for visibility that, you know, you didn't have, you know, from a developer or even a operations day two operations, now you get that visibility into the network space and controls and management of that space a lot easier now, you know? >>Yeah. I mean, business critical applications, right? People, the people, the business does not care about networking, right? They see it as electricity and if it's down somebody else's problem to fix it. But the people who do need to keep it up, they need the telemetry. They need the ability to understand, are we trending in the wrong direction? Should we be doing something so that we don't get to the point where it goes down? And that's the kind of information that we're providing in this multi-cloud environment. You mentioned Equinix, we, we just have a partnership with Equinix where we're extending the cloud operational model that Aviatrix delivers all the way out to Equinix and that global fabric that you're talking about. So this is allowing the, the comp companies to have that visibility, that operational ability all the way globally. >>Yeah. Because you know, when you start building all these clouds now and multi regions, multiple AZs or different cloud providers or SaaS providers, you're moving data all over the place. And if you, if you don't have a single pane of glass to see that entire network and be able to route stuff accordingly, it's gonna be a zoo. It's not gonna >>Work. We were, I was talking earlier with, with another guest and we were just talking about companies in your case, I, I IHG kind of knowing what you have and it's not like such a basic thing he said, but yeah, you'd be surprised how many people don't know what they have. Oh, yeah. And so they're trying to provide that visibility and, and, and awareness. So, so I'm kind of curious because you were just the next interview up, so sorry Ken, but, but do you know what you have, I mean, are you learning what you have or is how do you identify, prioritize? How valuable is this asset as opposed to this can wait? I mean, is that still an ongoing process for >>You? It, it's definitely an ongoing process. I mean, we've done over the last three years of constantly assessing all our inventory of what we have, making sure we have the right mo roadmaps for each of the apps and products that we have. Cause we've turned to more of a product driven organization and a DevOps and we're, we're moving more and more product teams onto that DevOps process. Yep. So we can shift left a lot of the activities that developer in the past had to go over a fence to ask for help and, and, you know, kind of the automation of the network and the security built in allows us to be able to shift that left. >>Did that, I, you were saying too three years, right? You've been on, on this path Yep. Going back then to 2019 right. Pandemic hits, right. The world changes. How has that affected this three year period for you? And where are you in terms of where you expected to be and, and Yep. And then what's your, what are your headlights seeing down the road as to what your, your eventual journey, how you want that to end? >>I probably, the biggest story that we have a success story is when the pandemic did happen, you know, all our call centers, all agents had to go home. We were able within 30 days be able to bring up remote desktops, you know, workspaces an a uws and give access to globally in China and in Singapore and in the Americas. There's >>No small task there, >>That's for sure. So we built a desktop, certified it, and, and agents were able to answer calls for guests, you know, you know, so it was a huge success to us. Sure. It did slow down. I mean, during the pandemic it did slow us down from what gets migrated. You know, our focus is, you know, again, back to what I was saying earlier is around our guests and our loyalty and, you know, how do we give value back to our hotel owners and our guests? >>And how do you measure that? I mean, how do you know that what you're doing is working with, with that key audience? >>We'd measured by, you know, one occupa >>There so many, how many people do we have in the rooms? Right? But in terms of the interface, in terms of the effectiveness, the applications, in terms of what you're offering. Yeah. >>It gets back to uptime of our systems and you know, being able to deploy an application in multiple regions elevates the availability of the product to our guest. You know, the longer I'm up, the more revenue I can produce. Right. So, you know, so we, we try to, you know, we measure also guest satisfaction at the properties, you know, them using our tech and that kind of stuff to >>Be so you surveying just to find out what, how they feel about, so some, >>Cause we have a lot of tech inside of our hotels that allow for, we have ISG connect, which allows for people to go from one hotel another and not ask for passwords and, you know, that kind of stuff. >>That would not be made by the way. I'd be begging for help. Let's talk about skills, because I hear that a lot. Talk a lot about that this week. Hearing that, that, you know, the advancement of knowledge is obviously a very powerful thing, but it's also a bit of a shortcoming right now in terms of, of having a need for skills and not having that kind of firepower horsepower on your bench. What, what do you see in that regard? And, and first off, what did you see about it? And then I'll follow >>Up with Yeah, I mean, over our journey, it started off where you didn't have the skills, you know, you didn't have the skill from an operations engineering architecture. So we went on a, you know, you know, how do we build training programs? How do we get, you know, tools to, to either virtual training, bringing teachers, we built, you know, daily, our weekly calls where we bring our experts from our vendors in there to be able to ask questions to help engineering people or architecture people or operations to ask questions and get answers. You know, we, we've been on a role of, you know, upscaling over the last three years and we continue to drive that, you know, we have lunch and learns that we bring people to. Yep. You know, and, and we, and we, we ta tailor the, the content for that training based on what we are consuming and what we're using as opposed to just a, you know, a broad stroke of, of public cloud or, it's >>Almost like you don't have to be holistic about it. You just need to, what do you need to know to >>Make >>Them successful, to be better at what you're doing here? Right. Sure. >>And that's been huge. And, >>And yeah, we, and we have a program called ace, which is AVIATRIX certified engineer. And there's a bunch of different types of classes. So if you're a networking person in the past it's like A C C I E, but we have about 18,000 people over the last three years who have gone through that training. One of them. One of them, right? Is that right? Yeah. Yeah. And, and this is not necessarily about aviatrix. What we're doing is trying to give multi-cloud, you know, networking expertise because a lot of the people that we're talking about are coming from the data center world. And networking is so different in the cloud. We're helping them understand it's not as scary as they might think. Right. If your whole career has been networking in the data center and all of a sudden there's this cloud thing that you don't really understand, you need somebody to help you sort of get there. And we're doing that in a multi-cloud way. And we have all kinds of different levels to teach people how to do, do infrastructure as code. That's another thing, you know, data center guys, they never did infrastructure as code. It was, you had to bolt it in and plug stuff in. Right. But now things are being done much faster with infrastructure as code. And we're teaching people how >>To do that. Yeah. I mean, yesterday, one of the keynotes is about the partner in the, the marketplace. And they use the image imagery of, of marathon runner, you know, a marathon runner. Yeah. You could do a marathon by yourself, but if you want to improve and become a, a great marathon runner, you need a coach, you need nutritionist, you need people running with you to, to make that engine go faster a little bit. Yeah, exactly. And you know, having a partner like Aviatrix helps you know the team to be successful. >>Well, it is, it is a marathon, not a sprint. That's for sure. And you've been on this kind of three year jog. You might feel like you've been running a marathon a little bit, but it sounds like you're really off to a great start and, and have a pretty good partnership here. So thank you. Congratulations on that, Eric. Thank you for being with us. And Rod, same to you. Thank you. Appreciate the time here on the AWS Global Showcase. I'm John Wal, you're watching The Cube. We're out in Las Vegas and of course the cube, as you well know, is the leader in high tech coverage.

Published Date : Dec 1 2022

SUMMARY :

the AWS Global Showcase, the Startup Showcase, John Wall is here hosting for And thank you for inviting me. Glad to have you board here on the queue. And can I just tell you who IHG is I got Introduc to Rod Stuller, who is the Vice So it's a pretty large company that we compete with, you know, out, you know, the products you wanna launch as opposed to the, on the development side and the maintenance side? And so we've, you know, I'm pretty sure you've seen, you know, kind of people building, It has to be, you know, a powerful capability that's business critical, can support that, whatever, you know, how are you sorting out, delegating, you know, I mean, even in, in the US market, I got, you know, California privacy laws, So, so you know, handling that kind of scope Yeah, in the early days, you know, we were using cloud native, you know, constructs for networking You don't, you know, you can't be reinventing the wheel every you know, being able to do it with less people than you used to have to do things, They need the ability to understand, are we trending data all over the place. up, so sorry Ken, but, but do you know what you have, I mean, are you learning what you have you know, kind of the automation of the network and the security built in allows us to be able to shift And where are you in terms of where you expected to be and, and Yep. you know, all our call centers, all agents had to go home. You know, our focus is, you know, again, back to what I was saying earlier But in terms of the interface, in terms of the effectiveness, the applications, It gets back to uptime of our systems and you know, being able to deploy an application in multiple and, you know, that kind of stuff. you know, the advancement of knowledge is obviously a very powerful thing, but it's also a bit of a shortcoming So we went on a, you know, you know, how do we build training programs? You just need to, what do you need to know to Them successful, to be better at what you're doing here? And that's been huge. trying to give multi-cloud, you know, networking expertise because a lot of the people that we're And you know, We're out in Las Vegas and of course the cube, as you well know,

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Larry Lancaster & Rod Bagg, Zebrium | Zebrium Root Cause as a Service


 

(upbeat music) >> Full stack observability is all the rage today. As businesses lean into digital, customer experience becomes ever more important. Why? Well, it's obvious, fickle consumers can switch brands in the blink of an eye or the click of a mouse. Technology companies have sprung into action and the observability space is getting pretty crowded in an effort to simplify the process of figuring out the root cause of application performance problems without an army of PhDs and lab coats, also known as endlessly digging through logs, for example. We see decades old software companies that have traditionally done monitoring or log analytics and or application performance management stepping up their game. These established players, you know, they typically have deep feature sets and sometimes purpose-built tools that attack one particular segment of the marketplace. And now they're pivoting through M&A and some organic development trying to fill gaps in their portfolio. And then, you got all these new entrants coming to the market, claiming end to end visibility across the so-called modern cloud and now edge native stacks. Meanwhile, cloud players are gaining traction and participating through a combination of native tooling combined with strong ecosystems to address this problem. But, you know, recent survey research from ETR confirms our thesis that no one company has it all. Here's the thing. Customers just want to figure out the root cause as quickly and as efficiently as possible. It's one thing to observe the stack end to end, but the question is who is automating the observers? And that's why we're here today. Hello, my name is Dave Vellante and welcome to this special Cube presentation where we dig into root cause analysis, and specifically, how one company, Zebrium, is using unsupervised machine learning to detect anomalies and pinpoint root causes and delivering it as an automated service. And in this session, we have two deep dives. First, we're going to dig into this exciting new field of RCaaS, Root Cause As A Service with two of the founders and technical experts behind Zebrium. And then we bring in two technical experts from Cisco, an early Zebrium customer who ran a POC with Zebrium's service, automating and identifying root cause problems within four very well established and well known Cisco product lines, including WebEx Client and UCS. I was pretty amazed at the results and I think you'll be impressed as well. So thanks for being here. Let's get started. With me right now is Larry Lancaster, who's a founder and CTO of Zebrium. And he's joined by Rod Bagg, who's the founder and vice president of engineering at the company. Gents, welcome. Thanks for coming on. >> Thanks. >> Okay. >> It's good to be here. >> It's good to be here >> All right Rod, talk to me. Talk to me about software downtime, what root cause means, all the buzzwords in your domain, MTTR and SLO. What do we need to know? >> Yeah, I mean, it's like you said. I mean, it's extremely important to our customers and to most businesses out there to drive uptime and avoid as much downtime as possible. So, you know, when you think about it, all of these businesses, most companies nowadays, either their product is software and it's running, you know, running on the web and that's how you get a point click. Or the business depends on, you know, internal systems to drive their business and to run it. When that is down, that is hugely impacting to them. So if you take a look, you know, way back, you know, 20, 30 years ago, software was simple. You know, there wasn't much to it. It was pretty monolithic and maybe it took a couple of people to maintain it and keep it running. There wasn't really anything complicated about it. It was a single tenant piece of software. Today's software is so complicated, often running, you know, maybe hundreds of services to keep that or to actually implement what that software is doing. So as you point out, you know, enter the sort of observability space and the tools that are now in use to help monitor that software and make sure when something goes wrong, they know about it But there's kind of an interesting stat around the observability space. So when you look at observability in the context or through the lens of the cost of downtime, it's really interesting. So observability tools are about a $20 billion market, okay? But the cost of downtime, even with that in place, is still hundreds of billions of dollars. So you're not taking much of a bite out of what the real problem is. You have to solve root cause and get to that fast. So it's all great to know that something went wrong but you got to know why. And it's our contention here that, you know, really, when you take a look at the observability space, you have metrics, that's a great tool. I mean, there's lots of great tools out there, you know, around metrics monitoring that's going to tell you when something went wrong. It's very rarely it's going to tell you why. Similarly for tracing, it's going to point you to where the issue is. It's going to take you through that stack and probably pinpoint where you're being, you know where it's happening or where something is running slow, potentially. So that's great. But again, the root cause of why it's happening is going to be buried in log files. And I can expand on that a little bit more but you know, when you're a software developer and you're writing your software, those log files are a wealth of information. It's just a set of breadcrumbs that are littered with facts about how the software is behaving and why it's doing what it's doing, or why it went wrong. And it's that that really gets you to the root cause very fast. And that's our contention, is that these software systems are so complex nowadays and that the root cause is lying in those logs. So how do you get there fast? You know, we would contend that you better automate that or you are just doomed for failure. And that's where we come in. >> Great. >> Getting to that root cause. >> Thank you, Rod. You know, it's interesting you talk about the $20 billion market. There's an analogy with security, right? We spend 80, $100 billion a year on securing our infrastructure, and yet we lose probably closer to a trillion dollars a year in breaches. And there's a similar analogy here. 20 billion could be 5X in downtime impacts or more. Okay, let's go to Larry. Tell us a little bit more about Zebrium. I'm interested always to ask a founder why you started the company. Rod touched on that a little bit. You guys have invented this concept of RCaaS. What does it mean? What problems does it solve, and how does it solve the problem? Let's get into it. >> Yeah. Hey, thanks, Dave. So I think when you said, you know, who's automating the observer, that that's a great way to think about it because what observability really means is it's a property of a system that means you can see into it. You can observe the internal state and that makes it easier to troubleshoot, right? But the problem is if it's too complicated, you just push the bottleneck up to your eyeball. There's only so much a person can filter through manually, right? And I love the way you put that. So that's a great way to think about it is automating the observer. Now, of course, it means that, you know, you reduce your MTTR, you meet your service level objectives, all that stuff, you improve customer experience. That's all true, but it's important to step back and realize like we have cracked a real nut here. People have been trying to figure out how to automate this part of sort of the troubleshooting experience, this human part of finding the root cause indicators for a long time. And until Zebrium came along, I would argue, no one's really done it right. So, you know, I think it's also important you know, as we step back, we can probably look forward five to 10 years and say, everyone's going to look back and say how did we do all this manually? You're going to see this sort of last mile of observability and troubleshooting is going to be automated everywhere because otherwise, you know, people are just... They're not going to be able to scale their business. So, you know, I think one more thing that's important to point out is, you know, I think Zebrium, you know, it's one thing to have the technology but we've learned we need to deliver it right where people are today. You can't just expect people to dive into a new tool. So, you know, we're looking at, you know, if you look at Zebrium, you'll put us on your dashboard and we don't care what kind of a dashboard it is. It could be, you know Datadog, New Relic, Elastic, Dynatrace, Grafana AppDynamics, ScienceLogic, we don't care. You know, they're all our friends. So we're more interested in getting to that root cause than trying to fight, you know, these incumbents and all that stuff. Yep. >> Yeah. So, interesting. Again, another analogy I think about. You know, you talked about automation. If we're to look back and say this is what... We're never going to do this again, it's like provisioning loans. Nobody provisions loans anymore, it's all automated. >> Larry: (chuckling) That's right. >> So Larry, I'll stay with you, then the skeptic in me says, this sounds amazing, but if I, you know... It might be too good to be true. Tell us how it works. >> Larry: (chuckling) Yeah. So that's interesting. So Cisco came along and they were equally skeptical. So what they did was they took a couple of months and they did a very detailed study. And they got together 192 incidents across four product lines, where they knew that the root cause was in the logs. And they knew what that root cause was because they had had their best engineers, you know work on those cases and take detailed notes of the incidents that had taken place. And so they ran that data through the Zebrium software. And what they found was that in more than 95% of those incidents, Zebrium reflected the correct root cause indicators at the correct time. Like that blew us away. When we saw that kind of evidence, Dave, I have to tell you, everyone was just jumping up and down. It was like, you know, it was like the Apollo command center, you know when they finally, you know, touchdown on the moon kind of thing. So, you know, it's really an exciting point in time to be at the company, like just seeing everything finally being proven out according to this vision. I'm going to tell you one more story which is actually one of my favorites, because we got a chance to work with Seagate Lyve Cloud. So they're, you know, a hyper modern, you know, SaaS business, they're an S3 competitor. Zoom has their files stored on Lyve Cloud, you know, to let you know who they are. So essentially, what happened was they were in alpha, their early access, and they had an outage, and it was pretty bad. I mean, it went on for longer than a day, actually, before they were completely restored. And it was, you know, fortunately for them, it was early access. So no one was expecting, you know, uptime, you know, service level objectives and so on. But they were scared, because they realized, if something like this happens in production, you know, they're screwed. So what they did was they saw Zebrium. They went and did some research, they saw Zebrium. They went in a staging environment, recreated the exact (indistinct) that they had had. And what they saw was immediately, Zebrium pops up a root cause report that tells them exactly the root cause that they took over a day to find. These are the kind of stories that let us know we're onto something transformational. >> Dave: Yeah. That's great. I mean, you guys are jumping up and down, I'm sure. We're going to hear from Cisco later. I bet you, they were jumping up and down too because they didn't have to do all that heavy lifting anymore. So Rod, Larry's just sort of implying that, or actually, you guys both talked about that your tool is agnostic. So how does one actually use the service? How do I deploy it? >> Yeah. So let me step back. So when we talk about logs right? Like, you know, all these bread crumbs being in logs and everything else? So, you know, they are a great wealth of you know, information, but people hate dealing with them. I mean, they hate having to go in and figure out what log to look at. In fact, you know, we had one of our... Or we've heard from several of our customers now prior to using Zebrium, when they, you know, have some issue, and they know there's something wrong, something on their dashboard has told them that something's wrong, maybe a metric has, you know, taken a blip or something's happened that they know there's a problem. We've heard from them that it can take like a number of hours just to get to the right set of logs, like figuring out over these hundreds of services where the logs are, to get to them, maybe searching in a log manager. Just to get into the right context, even, can take hours. So, you know, that's obviously the problem we solve but, you know, we don't want them just looking at logs. I mean, you know, we don't want to put them back in the thing they don't like doing because people don't do that. They don't like doing it. So we put it up on the dashboard. So if something is going wrong with your metrics and that's the indicator, or maybe it's something with tracing that you're sort of digging through that you know something's wrong, we will be right on that same dashboard. So we're deployed as a SaaS service. You send us your logs, you click on one of our integrations and we integrate with all these tools that Larry's talked about. And when we detect anything that is a root cause report, it will show up on your dashboard in the same timeline as those blips in your metrics. So when you see something going wrong and you know there's an issue, take a look at the portion of your dashboard that is us, and we're going to tell you why. We're going to get you to the why that went wrong. No other work could be... You can, you know, also click down and click through to us so that you land up in our portal, if you want to do some more digging around, if you need to or whatever, maybe to get some context what have you, but it's fair that if you ever need to do that, the answer should be right there on your dashboard. And that that's how we expect people to use it. We don't want them digging in logs and going through things, we want it to be right in their workflow. >> Great. Thank you, Larry. So Rod, we talked about Cisco. We're going to hear more from them in a moment in Seagate. I would think this is like a perfect solution for a SaaS provider, anybody doing AI ops. Do you have some examples of those types of firms leaning into this? >> Rod: Yeah, a couple of great ones. Well, I mean, we've got many of them, but a couple that I'll touch on. We have an actual AI ops company that was looking for, you know, sort of some complimentary technology and so on. And so they decided to just put us through our paces by having one of their own SREs sign up for our service in our SaaS environment, and send the logs from their system to us, you know, and just see how we did. So it turned out we ended up talking back to this SRE like a week after he had installed the product, you know signed up and then, you know, started sending us logs. And, you know, he was hewing and hawing, saying that he was busy, like every SRE is, and that he didn't have a chance to really do much with us yet. And, you know, we were just, you know, having this conversation on the phone, and he comes to tell us that, yeah I've been busy because we had this, you know, terrible outage, like, you know, five days ago. And we said like, "Okay did you actually look on the Zebrium dashboard?" (chuckles) And he goes, "You know what? I didn't even think to do it yet. I mean, I'd just been so busy and frazzled." So we have an integration with that company, he hadn't put that integration in, so it wasn't in his dashboard yet, but it was certainly on ours. So he went there, and he looks and he looks on the day, you know, on the time range of when he had had this incident. And right at the very top of the page on our portal was that incident with that root cause. And he was flabbergasted. It literally would've saved him hours and hours and hours. They had this issue going on for over 24 hours. And we had the answer right there in five minutes, and it was crazy. And we get that kind of stories. It's just like the Seagate one. If you use us and you have a problem, we're going to detect it. And you're going to hear from Cisco how successful we are at detecting things. I mean, it'll be there when you have a problem. In SaaS companies, you know, one of our customers is Alchera. They do cost optimizations for cloud properties, you know, for AWS optimization, Google, Google cloud, and so on. But they use our software, and they have a lot of interaction, obviously with these cloud vendors and the APIs of those cloud vendors. So, you know, in order to figure out your costing at AWS, they're using all those APIs. So it turned out, you know, they had some issue where their services were breaking. And we had that root cause report right on the screen, again within five minutes, that was pointing to an API problem with Google. And they had changed one of their APIs and Alchera was not aware of it. So their stuff was breaking because of a change downstream that we had caught. And I'll just tell you one last one because it's somewhat related to one of these cloud vendors. You know, it was a big cloud vendor who had an outage a couple of months ago. And it's interesting because, you know, a lot of our customers will set up shared Slack channels with us, where we're monitoring or seeing their incidents as well as they are. So we get a little Slack representation of the incident that we detected for them or the root cause that we detected for them, and that's in a shared community channel. So we could see this happening when that AWS outage happened. We could see our customers getting impacted by that AWS outage, and the root cause of what was going on there in AWS that was impacting our customers that was showing up in our incidents. Now we didn't obviously, you know, have the very root cause of what was going on in AWS, per se but we were getting to the root cause of why our customer's applications were failing. And that was because of issues going on at AWS. >> Very interesting. I mean, I think one of your biggest challenges is going to be getting people's attention because these SREs are so busy, their hair's on fire. >> Rod: That's it. Right. (chuckling). You know, when you say, hey, (indistinct). >> I tell you, if you get their attention, they love it. I mean, this AI ops company, I didn't even tell you the punchline there, but, you know, they had this incident that occurred that we found. And quite literally, the next week, they ended up signing up as a paid customer. So... >> Dave: that's great. And Larry, to give you the last word. I mean, you know, Rod was talking about, you know, changes in APIs and you know, there's still a lot of scripts out there. You guys, if I understand it correctly, run both as a service in the cloud and you can run on-prem, which is important because there's a lot of sensitive information in logs that people are trying not to leave. >> Larry: That's right. Absolutely. >> Dave: But close it out here. >> Yeah. I mean, that's right, you can run it on-prem. Just like we run it in our cloud, you can run it in your cloud or on your own infrastructure. Now that's all true. You know, I think the one hurdle now that we have left as a company is getting the word out and getting people to believe that this is actually possible and try it for themselves. You don't believe it, do a POC, try it yourself. And you know, people have become so jaded by the lack of, you know, real, sort of, innovation in the software industry for the last 10 years that it's hard to get people to... But guys, you got to give it a shot, I'm telling you. I'm telling you right now, it works. And you'll hear more about that from one of our customers in a minute. >> All right guys, thanks so much. Great story. Really appreciate you sharing. >> Thank you. >> Yeah. Thanks Dave. Appreciate the time. >> Okay. In a moment, we're going to hear from Cisco who is the customer in this case example and a company that has... Look, they have quite an impressive suite of observability tooling, and they've done a pretty compelling proof of concept with Zebrium using real data on some Cisco products that you've heard of, like WebEx. So stay tuned and learn about how you can really take advantage of this new technology called Root Cause As A Service. You're watching theCube, the leader in enterprise and emerging tech coverage. (upbeat music)

Published Date : Jun 16 2022

SUMMARY :

you know, they typically All right Rod, talk to me. Or the business depends on, you know, and how does it solve the problem? And I love the way you put that. You know, you talked about automation. this sounds amazing, but if I, you know... So no one was expecting, you know, uptime, I mean, you guys are jumping up and down, We're going to get you to Do you have some examples and he looks on the day, you know, is going to be getting people's attention you say, hey, (indistinct). but, you know, they had And Larry, to give you the last word. Larry: That's right. by the lack of, you know, appreciate you sharing. you can really take advantage

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Larry Lancaster & Rod Bagg


 

(bright intro music) >> Full stack observability is all the rage today. As businesses lean in to digital, customer experience becomes ever more important, why? Well, it's obvious. Fickle consumers can switch brands in the blink of an eye or the click of a mouse. Technology companies have sprung into action, and the observability space is getting pretty crowded in an effort to simplify the process of figuring out the root cause of application performance problems without an army of PhDs and lab coats, also known as endlessly digging through logs, for example. We see decades-old software companies that have traditionally done monitoring or log analytics and/or application performance management stepping up their game. These established players, you know, they typically have deep feature sets and sometimes purpose built tools that attack one particular segment of the marketplace, and now, they're pivoting through M&A and some organic development trying to fill gaps in their portfolio, and then you got all these new entrants coming to the market claiming end to end visibility across the so-called modern cloud and now edge-native stacks. Meanwhile, cloud players are gaining traction and participating through a combination of native tooling combined with strong ecosystems to address this problem, but, you know, recent survey research from ETR confirms our thesis that no one company has at all. Here's the thing. Customers just want to figure out the root cause as quickly and efficiently as possible. It's one thing to observe the stack end to end, but the question is who is automating the observers? And that's why we're here today. Hello, my name is Dave Vellante, and welcome to this special "CUBE" presentation where we dig into root cause analysis and, specifically, how one company, Zebrium, is using unsupervised machine learning to detect anomalies and pinpoint root causes and delivering it as an automated service. In this session, we have two deep dives. First, we're going to dig into this exciting new field of RCA, root cause as a service, with two of the founders and technical experts behind Zebrium, and then we bring in two technical experts from Cisco, an early Zebrium customer who ran a POC with Zebrium's service, automating and identifying root cause problems within four very well established and well-known Cisco product lines including Webex client and UCS. I was pretty amazed at the results, and I think you'll be impressed as well. So thanks for being here. Let's get started with me right now is Larry Lancaster who's a founder and CTO of Zebrium, and he's joined by Rod Bagg who's a founder and Vice-President of Engineering at the company. Gents, welcome, thanks for coming on. >> Thanks. >> (indistinct). >> To be here. >> Great to be here. >> All right, Rod, talk to me. Talk to me about software downtime, what root cause means, all the buzzwords in your domain, MTTR and SLO, what do we need to know? >> Yeah, I mean, it's like you said. I mean, it's extremely important to our customers and to most businesses out there to drive up time and avoid as much downtime as possible. So, you know, when you think about it, all of these businesses, most companies nowadays, either their product is software and it's running, you know, running on the web, and that that's how you get a point click or their business depends on it and, you know, internal systems to drive their business and to run it. Now, when that is down, that is hugely impacting to them. So if you take a look, you know, way back, you know, 20, 30 years ago, software was simple. You know, there wasn't much to it. It was pretty monolithic, and maybe it took a couple of people to maintain it and keep it running. It wasn't really anything complicated about it. It was a single tenant piece of software. Today's software is so complicated, often running, you know, maybe hundreds of services to keep that or to actually implement what that software is doing. So as you point out, you know, enter the sort of observability space and the tools that are now in use to help monitor that software and make sure when something goes wrong, they know about it, but there's kind of an interesting stat around the observability space. So when you look at observability in the context or through the lens of the cost of downtime, it's really interesting. So observability tools are about a $20 billion market, okay? But the cost of downtime, even with that in place, is still hundreds of billions of dollars. So you're not taking much of a bite out of what the real problem is. You have to solve root cause and get to that fast. So it's all great to know that something went wrong, but you got to know why, and it it's our contention here that, you know, really, when you take a look at the observability space, you have metrics. That's a great tool. I mean, there's lots of great tools out there, you know, around metrics monitoring that's going to tell you when something went wrong. It's very rarely it's going to tell you why. Similarly for tracing, it's going to point you to where the issue is. It's going to take you through that stack and probably pinpoint where you're being, you know, where it's happening or where something is running slow potentially. So that's great, but again, the root cause of why it's happening is going to be buried in log files, and I can expand on that a little bit more, but, you know, when you're a software developer, and you're writing your software, those log files are a wealth of information. It's just a set of breadcrumbs that are littered with facts about how the software is behaving and why it's doing what it's doing or why it went wrong, and it's that that really gets you to the root cause very fast, and that's, our contention is that these software systems are so complex nowadays, and that the root cause is lying in those logs. So how do you get there fast? You know, we would contend that you better automate that or you're just doomed for failure, and that's where we come in. >> Great. >> Getting to that request. >> Thank you, Rod. You know, it's interesting. You talk about the $20 billion market. There's an analogy with security, right? We spend 80, $100 billion a year on securing our infrastructure, and yet we lose, probably, closer to a trillion dollars a year in breaches, and there's a similar analogy here. 20 billion could be 5x in downtime impacts or more. Okay, let's go to Larry. Tell us a little bit more about Zebrium. I'm interested always to ask a founder why you started the company. Rod touched on that a little bit. You guys have invented this concept of RCAs. What does it mean? What problems does it solve? And how does it solve the problem? Let's get into it. >> Yeah, hey, thanks, Dave. So I think when you said, you know, who's automating the observer? That's a great way to think about it because what observability really means is it's a property of a system that means you can see into it. You can observe the internal state, and that makes it easier to troubleshoot, right? But the problem is if it's too complicated, you just push the bottleneck up to your eyeball. There's only so much a person can filter through manually, right? And I love the way you put that. So that's a great way to think about it is automating the observer. Now, of course, it means that, you know, you reduce your MTTR, you meet your service level objectives, all that stuff, you improve customer experience, that's all true, but it's important to step back and realize like we have cracked a real nut here. People have been trying to figure out how to automate this part of sort of the troubleshooting experience, this human part of finding the root cause indicators for a long time, and until Zebrium came along, I would argue no one's really done it right. So, you know, I think it's also important, you know, as we step back, we can probably look forward five to 10 years and say, "Everyone's going to look back and say, 'How did we do all this manually?'" You're going to see this sort of last mile of observability and troubleshooting is going to be automated everywhere because otherwise, you know, people are just, they're not going to be able to scale their business. So, you know, I think one more thing that's important to point out is, you know, I think Zebrium, you know, it's one thing to have the technology, but we've learned we need to deliver it right where people are today. You can't just expect people to dive into a new tool. So, you know, we're looking at, you know, if you look at Zebrium, you'll put us on your dashboard, and we don't care what kind of a dashboard it is. It could be, you know, Datadog, New Relic, Elastic, Dynatrace, Grafana, AppDynamics, ScienceLogic, we don't care. You know, they're all our friends. So we're more interested in getting to that root cause than trying to fight, you know, these incumbents and all that stuff, yeah. >> Yeah, so interesting. Again, another analogy I think about, you know, you talked about automation, where to look back, and say, "This is what- We're never going to do this again." It's like provisioning LANs. Nobody provisioned LANs anymore. It's all automated. >> That's correct. >> So, Larry, stay with you. The skeptic in me says, "This sounds amazing," but if, you know, it probably too good to be true. Tell us how it works. >> Yeah, so that's interesting. So Cisco came along and they were equally skeptical. So what they did was they took a couple of months, and they did a very detailed study, and they got together 192 incidents across four product lines where they knew that the root cause was in the logs, and they knew what that root cause was because they'd had their best engineers, you know, work on those cases and take detailed notes of the incidents that had taken place, and so they ran that data through the Zebrium software, and what they found was that in more than 95% of those incidents, Zebrium reflected the correct root cause indicators at the correct time. Like that blew us away. When we saw that kind of evidence, Dave, I have to tell you, everyone was just jumping up and down. It was like, you know, it was like the Apollo Command Center, you know, when they finally, (Dave laughs) you know, touchdown on the moon kind of thing. So, you know, it's really exciting at a point in time to be at the company, like just seeing everything finally being proven out according to this vision. I'm going to tell you one more story, which is actually one of my favorites, because we got a chance to work with Seagate Lyve Cloud. So they're, you know, a hyper modern, you know, SaaS business. They're an S3 competitor. Zoom has their files stored on Lyve Cloud to give, you know, to let you know who they are. So, essentially, what happened was they were in alpha, in their early access, and they had an outage, and it was pretty bad. I mean, it went on for longer than a day, actually, before they were completely restored, and it was, you know, fortunately, for them, it was early access. So no one was expecting, you know, uptime, you know, service level objectives and so on, but they were scared because they realized if something like this happens in production, you know, they're screwed. So what they did was they saw Zebrium, they did some research, they saw Zebrium. They went in a staging environment, recreated the exact (indistinct) that they'd had, and what they saw was, immediately, Zebrium pops up a root cause report that tells them exactly the root cause that they took over a day to find. These are the kind of stories that let us know we're onto something transformational. >> Yeah, that's great. I mean, you guys are jumping up and down. I'm sure, we're going to hear from Cisco later. I bet you, they were jumping up and down, too, 'cause they didn't have to do all that heavy lifting anymore. So Rod, Larry's just sort of implying that or, actually, you guys both talked about that your tool's agnostic. So how does one actually use the service? How do I deploy it? >> Yeah, so let me step back. So when we talk about logs, right? Like, you know, all these red crumbs being in logs and everything else. So, you know, they are a great wealth of, you know, information, but people hate dealing with them. I mean, they hate having to go in and figure out what log to look at. In fact, you know, we had one of our, or we've heard from several of our customers now prior to using Zebrium, but when they're, you know, have some issue, and they know there's something wrong, something on their dashboard has told them that something's wrong, maybe a metrics is, you know, taken a blip or something's happened that they know there's a problem, we've heard from them that it can take like a number of hours just to get to the right set of logs, like figuring out over these hundreds of services where the logs are to get to them, maybe searching in a log manager, just to get into the right context even can take hours. So, you know, that's obviously the problem we solve, but, you know, we don't want them just looking at logs. I mean, you know, we don't want to put 'em back in the thing they don't like doing 'cause people don't do what they don't like doing. So we put it up on the dashboard. So if something is going wrong with your metrics, and that's the indicator or maybe it's something with tracing that you're sort of digging through now that you know something's wrong, we will be right on that same dashboard. So we're deployed as a SaaS service. You send us your logs. You click on one of our integrations, and we integrate with all these tools that Larry's talked about, and when we detect anything that is a root cause report, it will show up on your dashboard in the same timeline as those blips in your metrics. So when you see something going wrong, and you know there's an issue, take a look at the portion of your dashboard that is us, and we're going to tell you why. We're going to get you to the why that went wrong. Not no other work could be- You can, you know, also click down and click through to us so that you land up in our portal if you want to do some more digging around if you need to or whatever, maybe to get some context, what have you, but it's fair that you ever need to do that. The answer should be right there on your dashboard, and that's how we expect people to use it. We don't want them digging in logs and going through things. We want it to be right in their workflow. >> Great, thank you, Larry. So Rod, we talked about Cisco. We're going to hear more from them in a moment and Seagate. I would think this is like a perfect solution for a SaaS provider, anybody doing AIOps, do you have some examples of those types of firms leaning into this? >> Yeah, a couple of great, well, I mean, we got many of them, but couple that I'll touch on. We have an actual AIOps company that was looking for, you know, sort of some complimentary technology and so on, and so they decided to just put us through our paces by having one of their own SREs sign up for our service in our SaaS environment and send the logs from their system to us, you know, and just see how we did. So it turned out we ended up talking back to this SRE like a week after he had installed the product, you know, signed up, and then, you know, started sending us logs, and, you know, he was hemming and hawing saying that he was busy like, you know, like every SRE is, and that he didn't have a chance to really do much with us yet, and, you know, we just, you know, having this conversation on the phone, and he comes to tell us that, "Yeah, I've been busy because we had this, you know, terrible outage like, you know, five days ago," and we said like, "Okay, did you actually look on the Zebrium dashboard?" (laughs) And he goes, "You know what? I didn't even think to do it yet. I mean, I'd just been so busy and frazzled." So we have an integration with that company. He hadn't put that integration in so it wasn't in his dashboard yet, but it was certainly on ours. So he went there and he looks on the day like, you know, on the time range of when he had this incident, and right at the very top of the page on our portal was the incident with the root cause, and he was flabbergasted. It literally would've saved him hours and hours and hours. They had this issue going on for over 24 hours, and we had the answer right there in five minutes, and it was crazy, and we get that kind of story. It's just like the Seagate one. If you use us and you have a problem, we're going to detect it, and you're going to hear from Cisco how successful we are at detecting things. I mean, it'll be there when you have a problem. In SaaS companies, you know, one of our customers is Archera. They do cost optimizations for cloud properties, you know, for AWS optimization, Google cloud, and so on, but they use our software, and they have a lot of interaction, obviously, with these cloud vendors and the APIs of those cloud vendors. So, you know, in order to figure out you're costing at AWS, they're using all those APIs. So it turned out, you know, they had some issue where their services were breaking and we had that root cause report right on the screen, again, within five minutes that was pointing to an API problem with Google, and they had changed one of their APIs, and Archera was not aware of it. So their stuff was breaking because of a change downstream that we had caught, and I'll just tell you one last one because it's somewhat related to one of these cloud vendors of, you know, big cloud vendor who had an outage couple of months ago, and it's interesting because, you know, lot of our customers will set up shared Slack channels with us where we're monitoring or seeing their incidents as well as they are. So we get a little Slack representation of the incident that we detected for them or the root cause that we've detected for them, and that's in a shared community channel. So we could see this happening when that AWS outage happened. We could see our customers getting impacted by that AWS outage and the root cause of what was going on there in AWS that was impacting our customers, that was showing up in our incidents. Now, we didn't obviously, you know, have the very root cause of what was going on in AWS per se, but we were getting to the root cause of why our customer's applications were failing, and that was because of issues going on at AWS. >> Very interesting. I mean, I think one of your biggest challenge is going to be getting people's attention because these SREs is so busy, their hair's on fire. (all laughs) You know, he's like, "Hey, chap, I'm going to show you, look at this." >> I tell you. You get their attention, they love it. I mean, this AIOps company, I didn't even tell you the punchline there, but, you know, they had this incident that occurred that we found and, quite literally, the next week, they ended up signing up as a paid customer, so. >> That's great, and Larry, give you the last word. I mean, you know, Rod was talking about, you know, changes in APIs, and, you know, there's still a lot of scripts out there. You guys, if I understand it correctly, run both as a service in the cloud and you can run on-prem, which is important because there's a lot of sensitive information in logs and people don't want to leave. >> That's right, absolutely. >> But, yeah, close it out here. >> Yeah, I mean, you can, that's right, you can run it on-prem, just like we run it in our cloud. You can run it in your cloud or on your own infrastructure. Now, that's all true. You know, I think the one hurdle now that we have left as a company is getting the word out and getting people to believe that this is actually possible and try it for themselves. You don't believe it? Do a POC, try it yourself. And, you know, people have become so jaded by the lack of, you know, real sort of innovation in the software industry for the last 10 years that it's hard to get people to... But guys, you got to give it a shot. I'm telling you. I'm telling you right now, it works, and you'll hear more about that from one of our customers in a minute. >> Alright guys, thanks so much. Great story, really appreciate you sharing. >> Thank you. >> Yeah, thanks, Dave. Appreciate the time. >> Okay, in a moment, we're going to hear from Cisco who is the customer in this case example, and a company that is... Look, they have quite an impressive suite of observability tooling, and they've done a pretty compelling proof of concept with Zebrium using real data on some Cisco products that you've heard of like Webex. So stay tuned and learn about how you can really take advantage of this new technology called root cause as a service. You're watching "theCUBE", the leader in enterprise and emerging tech coverage. (bright outro music)

Published Date : May 25 2022

SUMMARY :

and then you got all these new entrants all the buzzwords in your and that that's how you get a point click why you started the company. Now, of course, it means that, you know, about, you know, you but if, you know, it and it was, you know, I mean, you guys are jumping up and down. I mean, you know, we do you have some examples saying that he was busy like, you know, is going to be getting people's attention but, you know, they had I mean, you know, Rod was talking by the lack of, you know, appreciate you sharing. Appreciate the time. So stay tuned and learn about how you can

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Rod Hampton, Kayanne Blackwell & Cindy Jaudon | IFS World 2019


 

>>Live from Boston, Massachusetts. It's the cube covering ifs world conference 2019 brought to you by ifs. >>Well going back to Boston and everybody, this is the cube, the leader in live tech coverage. We're here day one at the ifs world conference at the Hynes convention center in Boston. Cindy shutdown is here. She's the president of America's at ifs and she's joined by to my right, K in Blackwell, who's a controller at PPC partners, one of the divisions of PPC Metro power. And rod is the CIO of PPC partners. Welcome folks. Good to see you. I said, let me start with you. So you were on last year in the cube down at Atlanta. You still kind of set some, set some goals, you're a little competitive with your other brethren within then ifs. We love it. You know, we're Americans. Okay. So how's it going in North America? >>Um, well it's, it's growing well. We've had fantastic growth and it's been, you know, a little bit of competition within ifs, but you know, certainly we were very proud. We were named region of the year last year. So we won the coveted cup, which, uh, means, uh, we, uh, we want to keep that cup. So that's some of the, some of the competition that we've got going, right? >>Yeah. Well, of course, most of us based companies, they'll do, they'll start up 79, you know, 90% of their businesses, U S if not 100%, and then they'll slowly go overseas as some of the opposite. Right? >>Very much. I mean, ifs is a European based company. We've been in the, in the U S for quite awhile and, but we've really been investing in our growth and we've had fantastic growth over the last few years. And I think, you know, one of the reasons for that growth is our customer satisfaction in the fact that we really want to listen to our customers. You know, I, um, I, I travel quite a lot as you can imagine. And when I travel, I always try to make sure I can visit customers and hear what they have to say, you know, and of course we love to hear the good things, but I also like to hear when they can give us some ideas for improvement and um, you know, then that gives us something to work on and to, you know, to keep moving forward. Um, I also think that, you know, the good thing about that is, um, it gives us a chance to listen and um, you know, I heard something really great from one of our customers, they went live two weeks ago and they called up and said, Hey, can we do a customer story? I love things like that. Yeah. >>I always love that. Uh, let me think about it. I'll get back to you. Okay. What's your relationship between ifs and PPC part? >>Well, PPC partners is one of our newer customers in there in the middle of an implementation and they're doing some great things around digital transformation. And when I had this opportunity to be here on the cube, I thought it would be great to invite rod and can with me and to, you know, tell some of the things that they're doing. >>Cool. So I kind of recruited Cindy as my cohost, your, they're going to be the defective coho. So welcome to the queue and then we're going to show you right to the fire. Okay. So, uh, can you describe your, your role, your when one of the divisions of PPC partners, right? So maybe maybe set up sort of PPC partners and then your role. >>Right. Okay. So PPC is a specialty contracting company and we have four subsidiary companies that operate in the upper Midwest and then also the Southeastern United States. And we provide, um, um, customers within a base innovative, innovative solutions in the electrical and mechanical contracting. So there are those four companies. I was one of the controllers, um, of those four companies for a lot of years. And now I'm on the core team. There's four of us, five of us now, um, that are involved in the implement. >>Okay. So you got all the numbers in your head. And then rod, you're the CIO and you guys are a service organization for all the divisions. Is that correct? That is correct. >>We sit at the holding company and we're responsible for technology across all four of those specialty contractor companies that can just mention. >>So I love these segments, Cindy, because you know, we, here you go, we go to a lot of conferences in the cube and um, you hear a lot about digital transformation, but, so I'd like to ask the practitioners, what does that mean for you guys? We've got somebody who's very close to the line of business, like I say, knows the numbers, but at the end of the day you've got to deliver the technology services. So what does digital transformation mean to you? What's the company doing in that regard? So a great question actually. >>Um, you'll find companies like ours that have been on the same platform for quite a while, uh, 50 plus years, uh, five zero five, six, zero, uh, probably North of five zero, but we'll go with five zero. Uh, and what happens over time is just, you know, with the system can't grow with the organizations, you resort to a lot of manual paper pushing a lot of file flinging, lots of Excel. And so there's just a ton of duplication of effort and those types of things going on. So from a technology standpoint, that's really the stuff that I come in and see and go, you know. Um, but overall I think that getting to the ifs platform, getting a lot of those redundant processes, a lot of the file flinging out of there, it's just going to be beneficial for all of them. >>Okay. So you guys have had to make the business, you're in the middle of the implementation, right? Is that correct? So she had to go through the business case. Um, it sounds like the business case was, you know, we're, we're basically struggling with running our business because, you know, data's all over the place. We don't have a single view of our business, our customers, et cetera. So we have to come to grips with that. But, but, so what was the business case like? I presume that you were involved as well. >>Right. So I've was really involved in building the software that we've used for that 40 plus years though I haven't used it all of them two years. Um, and, and it was really. It was built by accountants. We, you know, intended for it to meet the needs of the whole, the whole organization. But really it was built by accountants. So, um, we've found that we just really weren't able to keep up with meeting the needs of all of the users. Um, so when we started looking at that, we also had, we were running on a couple of different, um, I'm going to call them boxes. We run it on IBM. So, um, we were not able to look across the entire organization and see a consolidated view of the whole organization. So that was one of the things that we were looking to do, was to really bring all four companies under one umbrella and be able to get a picture of the whole mainframe or, yes, we had a couple of mainframes and all of that software was internally written. Um, and it was good. It was, it was good, but it met, you know, just the needs that those of us within the company saw. Um, so I think we were missing a whole lot of opportunity, um, to really, you know, see what else was out there and see new things and really get outside of our sphere of understanding, you know, >>so PPC, >>no, I was going to say as SKM pointed out and the sort of running joke within the companies is the system we have today does numbers really well. Words not so much because it was designed by accountants for accounting, tracking the financials primarily. Yeah. >>In PPC you do construction of course, or construction club, but you also do some service as well, right? You've got people out in the field that are, that are doing, doing service. So when you were looking, um, I'm assuming that you were trying to find a system that could do both, both solutions. Yeah. Did. >>Absolutely. Uh, one of the things that's been concerning to the entire core team is it's great to go out and find a system and there's plenty of them that can handle your back office. Most systems do that fairly well. But what about you feel services, uh, any in our particular industry, electrical contracting, you might have residential, you know, we could very well be working on the buck stadium or a military installation or even the school, you know, those folks have to be able to process invoices, do all sorts of things from a handheld, et cetera, et cetera. That was a big, big driving factor for us. So has a lot of COBOL code running? Is that, is there right here? So you said 50 years, I mean, um, so now I'm interested in the, in the, in the migration and, and you know what that looks like. >>Yeah, I'll bet. So do you, do you have to freeze the existing sort of systems and then sort of bring the other ones up to speed? Is this cloud-based? What does that all look like? That great question. So, uh, we are, uh, we subscribe to the managed cloud solution. Um, you know, for most construction companies, electrical contracting companies like ours, you know, technology is important, but it is not what really makes our wheels turn. It's a con. It's a competitive advantage if you use it wisely. And so, um, you know, for us it was very important to think about this holistically and try to figure out if we're gonna bring in a solution, what does that solution need to look like and will it work for all of our companies, not just one, not just residential, commercial, et cetera. Okay. All right. So, so w w what's that journey look like? I mean, um, when did, when did it start? What's your >>sort of timeline? So about two and a half years ago, we really started looking at what we had in on hand now and what we had in place and thinking about did we really want to make a move? And so, um, we had a team that came together about 15 people across the organization from operations and also the back office to really evaluate what we had evaluated our needs. Um, we decided, yes, we needed something new. And then we actually brought in a second team, um, that started looking at what that new thing would be. We had a consultant assisting us with that and uh, we kinda narrowed it down to two players if you will. And ifs was one of those. Um, and we, even though, um, one of the things that we liked was the fact that that ifs had, um, a broad reach over different types of industries and we felt like that would give us, um, something in addition to a construct and centric view know domain expertise. Yeah, >>exactly. You know, and you know, with our core industries, you know, construction is a big part of that. But one of the things that we're seeing in the construction industry today is the trend to go to what we call prefabrication. The fact that you know, you can really speed up a project if you aren't trying to build everything on site and you can also do it much more cheaper. McKinsey has a study out and they believe that over time if, if of comp of construction company will engage with prefabrication, they can reduce the project timelines 20 to 50% and lower the cost up to 20% and with ifs is heritage in manufacturing. It's really a perfect marriage for construction companies because construction companies need the project management, the installation, you know, the change management that goes along with some of those back-office things. They also a lot of time have to do service. But if you really want to get that competitive advantage, if you can take advantage of the prefab, which is really manufacturing high, if this is heritage, he could really have a, a full, complete S, you know, solution from one supplier. >>There's a huge trend in home-building actually. You would, you see, you know, modular homes and kind of the future of it. But uh, so how does that affect you guys? I mean you, you prefab something that resonates with you, is that sort of more of a generic statement across the customer base or >>it's certainly an area where we're focusing on more. Um, we also have an automation, uh, division that really focuses on, um, automation for industries. And that's an area that it's kind of a manufacturing type of thing. They build panels and those sorts of things. So we're definitely seeing it >>well. So, okay. So I got to ask you, so when you pulled out the Gartner magic quadrant, I said, okay, it always is. Ifs isn't the leader that, that, that, that might've helped. Right. Okay. So you don't get fired now, but choose the leader, but then you started peeling the onion. He had to do due diligence. So what kinds of things did you look at? What kind of tires did you kick? Piers, did you talk to and be, I'm interested in what your, what you learned. Well, I'll touch on one key element and >>we can get in as many sub elements as you like. The selection process for us took several months. Um, I think initially we really pared it down to about eight packages that we were seriously considering. Then down to four and then eventually down to two. And what really, really intrigued us about ifs was the fact that they are not construction centric. So we really had a big decision to make internally, which was do we want to just get on the bandwagon and do what everyone else in construction is doing or do we really wanna you know, risk versus reward and go after something special. So ifs, they are in, you name it, manufacturing is obviously key. Aerospace engineering, race cars I saw today, I didn't know that. So that was a big selling point for us. And the plan is to retire your mainframe and go into the cloud. >>Yes, yes, yes. So IBM got you in a headlock. >>We've been friends for a long time. Good company. Um, w what's that been like just to sort of, uh, that the thought of, you know, going to the cloud. W how, how is, you know, the it folks you know, responded to that. Um, how has that changed their sort of role brokers versus all? Again, I think in construction organizations, technology is important, but it is not what makes the wheels turn. So I'm trying to bring in all of that iron and infrastructure and build it out and configure it ourselves and then maintain it for the long haul. Just not something that was value added for us. In addition, um, if you've ever worked with Oracle, which is a close partner of ifs, but there is a lot of licensing caveats and a lot of things you've got to worry about if you're going to go it alone by going with the managed cloud solution, we're sort of partnering and trusting ifs to take that on for us so we can focus on taking care of our companies, our customers, and doing what we do best. Right? So, okay, so you're still going to be an Oracle. You just won't be, it won't be as visible. We use Oracle too. We're a Salesforce customer, so Hey, Oracle is behind there, but no offense. >>Ah, I know you guys did >>for the distinction as well, right? Because even if you are going to have portions of Oracle that are running your system, you've got to have some Oracle experts on staff. You know, if you're going to have all of the infrastructure, you gotta have infrastructure folks who understand how it all ties together. So on the surface it could seem like a simple decision to do it in house or go to the cloud. Far from it. >>Yeah. You know, I think certainly one of the things that we see in a lot of different industries, but certainly in construction, the plant had always been that you bring together different, different solutions and you try to both and together and then some of that becomes a lot more concerning. You know, some of the technology behind it. But one of the things that with the ifs solution is the fact that from one provider you can do, you know, do the whole life cycle. So then some of the have it in the managed cloud where we take care of it for you. So then that takes away some of those technology issues and then you can focus on your core competencies. So Rhonda would agree generally >>with what you're saying. I mean some probably say that for most companies that you know, the technology is not the core differentiator. Obviously this for Google, sure. For Amazon, for Facebook, but for CIO is I talked to, they go people process, technology, technology is the least of my problems. It's like I was going to come and go, it's going to change. I can deal with that. It's the, if the people in the process issues. So having said that, I'm still interested in how concerned you were about peeling the onion on the cloud, what's behind it, the security model, all that stuff in terms of your due diligence, you know, with any cloud based solution, there's some concern obviously. But, but in working with ifs, we, we asked a ton of questions and they gave us a ton of answers. So the comfort level was there. Um, the industry's been going to the cloud now for quite some time. And to be brutally honest, if you're not going there, um, you need to be strongly considered >>in Microsoft is our partner with the cloud. We're on, you know, using Microsoft Azure. So it's not like, you know, it's one of the largest cloud provider. So it's not like, you know, it's, it's something that you have to worry about. You've got the, you know, the backstop of Microsoft behind you as well. You know, I'm sorry, go, go, go. I was going to say, I think one of the things that's interesting is you talk about all your different divisions and you're really trying to bring a lot of different companies together on one system. And one of the things that I, you know, as I've seen the things that's change management becomes really something that you really have to consider. I mean, how have you seen that part of the implementation going? Has there been stepping in the easy piece for you? It's not been an easy piece and that's one of the pieces that we're still working on. >>Um, I don't know if any organization that says that they're really, really good at change. Um, but we've recognized that really the, our organization is a group of entrepreneurs and we've encouraged people to have their own business, but we're really trying to streamline and get some consistency across the organization. That's a little bit of a culture shift for us. So that change management piece is a piece that we're really trying to get our arms around now and prepare, um, the organization for that team. Just trying to get my head around your software still. You guys do change management? I TSM. Well, you'll change management is really some of the, um, consulting that goes along with it and certainly ifs and AR, we've got many partners who can, you know, help our customers go through that. Because when you're going through a digital transformation, you know, you're taking people who have been using something for 50 years, being out, especially out in the field doing those things. And now you're trying to figure out what are the right processes to put in place to get what the business needs. And in some cases they might have to do things differently. So you really have to think that through and how you're going to roll those out. >>So now, is this your first ifs world? Yes, it is. It is. What final thoughts, you know, things you've, you've taken away or you're going to bring back to your teams? >>Well, yeah, Boston is a favorite city of mine. I was just glad to be here just for that. But, and we've just been here a little bit. I've already picked up some things on leadership. I was involved the um, >>Oh, the women's leadership breakfast this morning. So there's already been some things that I think we can take back to users and share with them, particularly around change management and trying to get people comfortable and understanding why they're uncomfortable with change. You know? So it, rod, you're next on the line. So I'm sure you were taking notes, pretty attentive in the sessions and just getting started, right? >>No, you know, I have, and one of the things for me that was most, I guess rewarding is, is the partner network. All of the vendors. There's a number of things with our implementation that we're still trying to sort out OCR for example, being one of them. Are we going to go there or are we gonna wait until later? Just different technologies and maybe add ons that we may want to take advantage of. All you've got to do is walk down the hallways and there's, there's people ready to talk to you about it. So that's, that's been kind of intriguing. >>Okay. Excellent. Well yeah, I said earlier I was, I was surprised and impressed at the sort of size of the ecosystem and its great. Well good luck to you guys. Really wish you the best and thanks so much for coming on the cube and sharing your story Cindy. Great to see you. Always pleasure. All right, take care. Thank you for watching everybody. We're back with our next guest right after this short break. You're watching the cube from Boston ifs world 2019 right back.

Published Date : Oct 8 2019

SUMMARY :

ifs world conference 2019 brought to you by ifs. So you were on last year in the cube down at Atlanta. you know, a little bit of competition within ifs, but you know, certainly we were very proud. U S if not 100%, and then they'll slowly go overseas as some of the opposite. And I think, you know, one of the reasons for that growth is our customer satisfaction I'll get back to you. I thought it would be great to invite rod and can with me and to, you know, So welcome to the queue and then we're going to show you right to the fire. And now I'm on the core team. you guys are a service organization for all the divisions. We sit at the holding company and we're responsible for technology across all four of those specialty So I love these segments, Cindy, because you know, we, here you go, we go to a lot of conferences in the and what happens over time is just, you know, with the system can't grow with the organizations, our business because, you know, data's all over the place. but it met, you know, just the needs that those of us within the company saw. Words not so much because it was designed by So when you were looking, um, you know, those folks have to be able to process invoices, do all sorts of things from a handheld, And so, um, you know, for us it was very important to us with that and uh, we kinda narrowed it down to two players if you will. project management, the installation, you know, the change management that goes along with some of those back-office You would, you see, you know, modular homes and kind of the future of So we're definitely seeing it So what kinds of things did you look at? on the bandwagon and do what everyone else in construction is doing or do we really wanna you know, So IBM got you in a headlock. that been like just to sort of, uh, that the thought of, you know, going to the cloud. Because even if you are going to have portions of Oracle that are running your system, but certainly in construction, the plant had always been that you bring together different, I mean some probably say that for most companies that you know, the technology is not the core differentiator. And one of the things that I, you know, as I've seen the things that's change management becomes really something So you really have to think that through and how you're going to roll those out. What final thoughts, you know, things you've, you've taken away or you're going to bring back to your teams? I was involved the um, So I'm sure you were taking notes, pretty attentive in the sessions and just getting started, No, you know, I have, and one of the things for me that was most, I guess rewarding is, Well good luck to you guys.

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Rod Johnson, Infor | Inforum DC 2018


 

>> Live from Washington DC, it's theCUBE. Covering Inforum DC 2018. Brought to you by Infor. >> Well good afternoon, and welcome back here on theCUBE as we continue our coverage here at Inforum 2018, live from Washington, DC. We're in the Washington Convention Center centrally located, I got to tell ya. The White house less than a mile that way, Capital Hill's just right up the street as well. We're kind of caught in the middle. Bad spot to be these days! (laughing) >> I hope you're not setting the tone for this. >> We'll leave that alone. >> I like being in the middle, personally. (laughing) I'll take it from both sides. >> When you sit in the middle of the road, there's a six inch yellow line, you get it equally hard from both sides. >> Bring it on! >> So, lets stay away from that. Dave Vellante, John Walls and Rod Johnson, who is the EVP of Manufacturing and Supply Chain, and the GT Nexus Business Unit at Infor. Rod, good to see you Sir! >> Great to be here, thanks guys. >> You're okay with being in the middle? >> Yeah, sure! Yeah, of course. >> Independent thought, right? I love it. >> Middle of the road. It's the place to be. >> So you're the new kid on the block, right? >> One of them, yeah. >> You've been here, just at Infor for a few months now, assuming the EVP role. How's it been for you so far? >> Hey, it's been a breath of fresh air. I was 11 years with one of our competitors, the Oracle Corporation. Its quite a breath of fresh air. Go with a company that's agile, innovative, much more customer centric. I think the timing is perfect for a company like Infor, that's really grown up in these key industries and working with customers for over decades. Now its made this transition to the Cloud, and now I think all the markets are waking up. It's not just CRM or HR, they're looking at: How do I take advantage of all this innovation, the Cloud's the platform, and who's the companies that really understand our type of business, whether you're a distribution company, or a food company, or an A&D Company. So it's a great time to be here, there's a lot of good energy, a lot of good innovation. A lot of good buzz from the customers about what we're doing. >> Necessity is the mother of invention, as the saying goes. I mean, you're right. The model of just having an install base that you can have locked in and just keep milking is very hard to do these days. Unless, you know, some of the private equity guys have done it, that's clearly not the case here at Infor. You know, Oracle is successful at it. I think it's because they do spend a lot of money on R&D, but boy oh boy! That model, you can't just go and reinvent that. >> Right. >> You're going to fail. >> Right. >> And if you're trying to hold on to that model, maybe they're the exception that proves the rule, but you're going to be toast. You know, in the long run. So you see what Amazon's doing, you see what Microsoft; how Microsoft completely pivoted away from that model. >> Right, Right. >> And Infor's riding that wave. >> Right, right. Hey, this is a business model. Fundamental business model change. You know, we can talk a lot about the technology, but transitioning from a product company that sells a license that sits on a maintenance base is a model that's no longer viable for what customers expect. They want a service provider that's delivering continuous innovation in service, and that's a big change. That's a big change to how we engage with our customers, how we support them, the service levels we're committing to. So, I lived through a bunch of that stuff at Oracle, transitioning to the cloud had a role for the last six years; doing that both from a sales and a global strategy role. Here, we're trying to do it better, faster, and never lose sight of the customer. >> So, you've serviced the manufacturing sector. >> Yeah, yeah. >> It's still a lot of Infor's business that install base and that maintenance. You're in the process of transitioning those customers. >> Yeah. >> So, that takes a lot of care, a lot of feeding, cause anytime there's a transition everybody wants a piece of that action. So how's that going, what's the conversation like, and why should they stay with Infor? >> The conversation is, One: We really believe in a pragmatic business-led path to the Cloud. There's not going to be any forced march, no technology agenda that's going to drive us. It's got to be driven by value. We've got to present a business case to them that makes sense. That makes them more productive, now allows them to better engage with their customers, delivers innovation to their supply chain. So that's what we're spending a lot of time talking about. What's the case for change? What's the business case for change? I mean, all of the stuff about operating the Cloud, the service levels, potential total co-services, great! But, at the end of the day we deal with pretty, we're dealing with manufacturers. They're pretty down to earth. They know that they make their money building stuff, and shipping stuff and servicing that product. So we got to be engaged at that level, to show them how we help them do that better. I think the excitement is growing. That they recognize that there is real net new business value, new innovation that could really help their business. >> So lets talk about that. Forced march is a powerful phrase and you certainly see that in the industry. Thinking about supply chain, and the opportunities to drive even more efficiencies out of the supply chain, maybe through automation, we've heard a lot about RPA. >> Yeah. >> Maybe even bring back some of that offshore manufacturing. >> Right. >> That's certainly a conversation >> Right. >> that's going on in your world, so talk about that a little bit. >> Yeah, so one of our diamonds in the Infor portfolio is a product called GT Nexus. Which is, its been around for about 20 years. We have 65,000 companies around the world who are operating on a common network based platform that provides supply chain visibilities, supplies supply chain financial processing. Connects brands to their manufacturers to provide all the visibility and control and that. So, that's a powerful capability because you're right, it's an incredibly dynamic time. With the change of trade wars, weather events that are ever increasing. The supply chain's a very hard thing to manage. So if the asset is we've got a platform that enables companies to connect much deeper in their supply chain then use that information to make far better decisions on how they get their products to their customer at the right cost. So, and I see, you know the supply chain market, I always think of this transition to Cloud in waves. You know, we had the first wave breaking was the sales. Then the HR, the finance function. Operations in supply chains is the one that's cresting on the horizon. And you know, keep that going, we've got our surfboards in the water, we've got great capability. And we're really, really excited about what we can do for our clients! >> You got to ride the waves or you'll become driftwood >> How big is that wave? >> Well, hey that's the biggest market, right? I mean, you look at the size of the Enterprise software spend. Core ERP supply chain industry functionality is the big piece. It's probably two. It's probably by an HR, CRM, financials together, and it's not even as big as sort of the industry supply chain, manufacturing, procurement market core ERP market. So, its big! Its a big opportunity, but it requires a much more sophisticated response because you talk to our customers they're like hey, we operate our plants 365 days a year, three shifts sometimes in peak seasons. We can't afford an environment that isn't mission critical, that doesn't step up to service levels. So, you know, we're working really hard to address the mission critical system challenge, not just the benefits and payroll. >> So, there's certainly an opportunity with AI, with machine learning, certainly more analytics, bringing that to the manufacturing world. >> Oh yeah. >> So that's clearly fundamental to your strategies. >> Yeah. >> Is that, in your view, the tipping point to get really this whole market moving? >> I think. I mean I would agree with you. Its sort of an accumulation of digital capabilities. Certainly, mobility's sort of proved that its important, but its a little bit of a nice-to-have. Some of the innovations around user experiences, is really important but nice-to-have. I think that is the game changer. When you can use data as a weapon, a competitive weapon that you can make decisions faster, and how you discount your product or how you identify shortage faster than someone else. That's where, there's real money that comes out of that. >> What about Block Chain? We hear a lot about Block Chain in the supply chain and cutting out the middle man. We haven't heard much here about it, its not something. We're going to ask Charles. Somebody said to me, Once Charles gets on it, boom the company is behind it. >> Yeah. >> But, how real is that in manufacturing and supply chain specifically? Is it just way too early? Do you think there's potential there? Have you looked at it? >> Obviously we've looked at it, we've worked on with customers on prototypes. There's a couple areas, you know, there's a lot of hype as you guys know. You talked to a lot of us, a lot of hype in that space. It's certainly unproven in a lot of areas. But we think in the area of supply chain financing, Block Chain has a very, very powerful, you know, where you have multi parties, you've got suppliers and logistics companies and banks all who need a piece of information. We need distributed capabilities around that. We think there's a big potential in some of that area. We're talking. We're working with some of the banks on that. We think in the area of getting deeper into the supply chain around sustainability, to the ethical and traceability of the Supply Chain. You know, where you're goin down. Yeah we got customers in the pero business that are going down to the farms. They want to know exactly the lineage of all of their stuff that's going into their product that's ending up in a consumer. That's potentially a more efficient mechanism, to have all these different entities collaborating on a distributed model. So, I mean; and especially if we talk about the GT Nexus Network. There's natural extensions to it. That it already is a common platform that is serving a wide variety of companies, logistics companies, and manufacturers. So there's a lot of natural exit points from that, sort of, that integrated network to support a couple of these more extended processes that are a little bit more distributed. >> Yes, the smart contracts maybe fits there, and you talked about distributed a couple of times. What about IOT? The pendulum seems to be swinging now. Obviously Cloud is hot. Its got a re-centralization. But IOT's a whole new world. You get a lot of IT companies kind of pushing the IT model top down into operations technology and we don't think that's the way it's going to work. That the OT guys are actually going to drive the standards and the trends. What are you seeing? >> Well I think yeah hey, the people that have the, that make the equipment, you know, make the pipelines. Hey, obviously they got a big stake in this. You know, they understand how their kipid works, they know how to attach the sensors. They know how to translate things that are going on in the machines into data. We're going to be, and we're going to be taking that data, and how do you connect it to a business process. That's something that they don't understand. They don't understand how a heat event could translate, could connect to a maintenance process and how do you deploy a technician with the right part to go in there so they can offer some proactive service? So I think there's going to be a very tight partnership, where people coming from the equipment up, or the asset up, connect with the people that understand process analytics and sort of execution. >> Yeah. You talked about sustainability there just a moment ago, so obviously companies, their focus is changing in that regard. Right? People are paying more attention, a lot of that is being customer driven. >> Right >> At the same time too, in terms of distribution, in terms of manufacturing, customer expectations are changing too. Right? >> Right. >> We expect things on a much different time table. >> Absolutely. >> So how are you helping your clients recognize all those things? Like you're thinking about tomorrow today, and trying to get them to address that in terms of their technology plays down the road to meet these really fast changing demands. >> Yeah, I mean one of our really dominant industries is distribution. You know, probably three out of five distribution companies around the world run our software. So distribution is a space, typically between the manufacturing world and the consumer or the retail world is under tremendous pressure. While Amazon is inching into distribution centric industry so there's a lot of pressure from that, but there's also rising expectations that you have to do instantaneous fulfillment. That you have to provide complete visibility into where my order is, when am I going to get it, because I don't want to carry this supply. You got to carry it. So we're seeing a big rejuvenation of that industry, a little because of the pressures driving them to rethink e-commerce, to rethink the types of services they're providing to their companies. That even in some cases they're sneaking into retail, and having that type of experience because they need to compete in different ways. And I think that's always, the industry change is good for companies like us that have a lot of experience in the industry cause we can help them! Ya know, and they need a catalyst, right? They need a catalyst to go out and change and rethink how they operate, and it's created a pretty interesting opportunity. >> So, I wonder Rod if you could talk a little bit about, I know you're only a few months in, but just your impressions of the differentiation. Give us the bumper sticker pitch. Why Infor? How are you different? >> So, I mean, three things. Just netted out three things. Industry, and we talk a lot about industry. We talk a lot about last mile, its real. Its compelling to our customers. They're tired of having to finish the software for the vendor at their site. They want the provider to finish the software and take it to meet their unique needs. Two is I think even though we're smaller than some of the big, big names out there, I think pound for pound we out innovate almost every company. And I can talk very specifically, transitioning from a very, very large competitor. When you're actually looking into the detail of what we've actually delivered around AI, or what we've actually delivered around analytics or mobility, and pound for pound we fight way above our weight on that front. And I think, you know, if you look at even what we've done at Hook and Loop Digital over the years, the types of proof points we have with customers are something that very few of our competitors could boast. So I think, digital over use term, but just sort of understanding how this new technology works and being able to translate that to our customers is huge. And three, is culture. I think we have a fast oriented culture. There's not a lot of levels. We can cut through the nonsense for our customers pretty quickly. We organize around our customers, we don't have 3,000 sales teams trying to sell them piece parts so we can do the solution thing. And we're really working hard to differentiate on customer centricity. I made the comment yesterday at our executive forum that, in general, service at Enterprise Software stinks. You wouldn't accept, ya know, if a retailer was treating you the way the average Enterprise Software, you wouldn't accept it, right? You'd go somewhere else. We've had the benefit, or we've had customers that have such big investments in us, they have to deal with it. And we need to, we have an opportunity to fix that, to change that, to really reorganize and reorient our customer around the outcomes that matter to them. And its so important, if they're going to trust us. And its really about trust. They got to trust us to run their applications, our mission critical applications in our Cloud. We need to really change the game on that front, and we're doing a lot of things structurally. Like for example, maybe someone talked about were taking development customer support in Cloud operations, integrating that into a common organization. So, there's no finger pointing. If something goes down, its not well its the network, Its a bug, Its a knowledge issue. It's one team that's accountable for making sure that we resolve that issue rapidly. Same on the field side. So now we're organizing for manufacturing and distribution. Really, all the resources we need to both sell and service, deliver for our customers in a common team, so there's accountability. And on both sides. There's our product side, product and Cloud ops side, there's accountability and from a sort of customer engagement or accounts management accountability. And then, you know, we got to do a lot of things around service and automation, and better, proactive. We're running their cloud, we should be able to tell them, hey, this isn't running optimally. We need to come in and do this change. I mean, that's where we need to get. That's where the industry needs to get. And we want to get there first. >> Well, you're on the right path. >> Yeah. >> Again, congratulations on the new position, >> Yeah, thank you! >> and we appreciate the time here today, and wish you all the best down the road. >> I appreciate what you guys do. I love your show and content. >> Thank you, Rod. We appreciate that. Thank you sir. Back with more here on theCUBE. We are at Inforum 2018. We're in Washington, DC. (electronic jingle)

Published Date : Sep 26 2018

SUMMARY :

Brought to you by Infor. We're kind of caught in the middle. I like being in the middle, personally. When you sit in the middle of the road, Rod, good to see you Sir! Yeah, of course. I love it. It's the place to be. assuming the EVP role. So it's a great time to be here, install base that you can have locked in You know, in the long run. That's a big change to how we engage with our customers, You're in the process of transitioning So how's that going, what's the conversation like, I mean, all of the stuff about operating the Cloud, and you certainly see that in the industry. so talk about that a little bit. So if the asset is we've got a platform that enables Well, hey that's the biggest market, right? bringing that to the manufacturing world. that you can make decisions faster, and cutting out the middle man. that are going down to the farms. That the OT guys are actually going to that are going on in the machines into data. a lot of that is being customer driven. At the same time too, in terms of distribution, in terms So how are you helping your clients and the consumer or the retail world So, I wonder Rod if you could talk a little bit about, the types of proof points we have with customers and wish you all the best down the road. I appreciate what you guys do. Thank you sir.

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Rod Lappin, Lenovo & Najaf Husain, Cloudistics, Inc. | Lenovo Transform 2018


 

(upbeat music) >> Live, from New York City, it's theCUBE! Covering Lenovo Transform 2.0, brought to you by Lenovo! >> Welcome back to theCUBE's live coverage of Lenovo Transform. I'm your host, Rebecca Knight, along with my co-host, Stu Miniman. We've got two guests on the show right now, we've got Naj Husain, the CEO of Cloudistics, and we're welcoming back Rod Lappin, who is the Senior Vice President of Sales and Marketing here at Lenovo. Thanks so much for coming on the show. >> Thank you very much. >> Great to be here. Nice to meet you. >> So... >> Rod, why are you so lazy at this show? MCing the show, on theCUBE twice... (laughter) >> I know, it's been an exciting day, hasn't it? I've actually done a few meetings between I saw you last time as well so, I'm living on 2 and a half hours of sleep last night, and I'm running hot so I'm looking forward to a drink at the end of the night. >> Yeah, a well-deserved drink. >> Sleep fast, sleep fast. >> Exactly. So I want to start with you Naj. >> Yeah. >> Tell our viewers a little bit about Cloudistics, it's based in western Virginia, what do you do? >> Yeah, so we build a private cloud with a premium experience. We founded the company in 2013 on the idea of simplifying infrastructures. In our previous world, we actually lived the problem. So in our previous company, we actually took Amazon as an analog, and tried to move our resources at Amazon and simplify it. Because we were tired of managing complex infrastructure. So as a company of 500 people and a software development company, we wanted to simplify our world. So we went to Amazon, we spent 3 months or so developing codes of implement QA. Great, real simple. Don't have to worry about hardware at all. It's a great value proposition. All of a sudden we started to implement this thing, after month one it was 100,000 bucks. After month two, it was 150,000 a month. After month three, we're creating the 200,000 a month in fees to run Amazon, right. While the value proposition's all about "simplicity is awesome." The problem is, it's very very expensive. So as the company of 500 like I said, we had to figure out what to do next. So I spoke to my CTO and I said, how can we solve this problem? So he said, okay I can bring the infrastructure back on prep, great. So he priced that out, it cost less than one month of opex in Amazon. So we did, and then we had a problem where okay, now we need software to run on it, to make it work. We needed a virtualization platform. So we looked up what was out there, and the cost for it at the time in 2012, 2011, it was a million dollars in commercialization software. I said we can't do this, right? We're too small, we don't have the funds to do that. So we decided at that point, we're going to found the company to solve that problem, and democretize IT to give companies of any size the ability to implement cloud computing behind the firewall, at an affordable price. >> And you call it "Composable Cloud". >> We do. So when we looked at the market at that point, there was different types of technologies out there, and there was things called hyper-converged and traditional converged infrastructure. And what we did, is we took a page out of how the public cloud operated. And the way the public cloud operates is they have composable resources so you can scale resources independently. So I can scale networks separate from computes, separate from storage. And that's a big deal when you're running a cloud because you have to worry about economics. So when we architected the product, we started there. So we started with this scale-able architecture that's composable, so company's grow as they need to grow. They don't have to tie resources together, right, so there's no resource drift, we call it. It's independent scaling. And that's one of the big differentiators in our platform. >> So Rod, why don't you help bring in some of your customer views that you hear on this. I'm sorry but I smirk a little bit when I hear, "We're going to simplify things." (laughter) In my career, I've talked to lots of companies, and everybody, we always have the goal to be simple. >> Yes. >> "But, oh wait I need to change this a little bit, I need this other thing, oh wait I've got this Lenovo product, but oh, you've got this other product that's good, how do I manage all of these?" And Cloud was supposed to be, you know, just an easy button and low-cost and everything, and it's helped but it's also added new silos, and new things that I now have to get my arms around. So maybe set up for why you-- >> Yeah, sure. Well I think to Naj's point firstly, I think the Cloudistics solution is really unique. And it's very compelling, actually. It's a very compelling offering. Firstly because I know one management said that you could basically run storage, compute, as well as networking, sitting over the top of a hypervisor, on prem, his point? So to Naj's point, you had like 50% of the cost of a normal cloud infrastructure that would be going out into the market pool, and still have the management suite sitting up in the cloud that they obviously manage for you. That's very cool. But one of the other things that's very cool about the Cloudistics offering is you can scale up and scale out, depending on customers' requirement. So once you've got yourself in this composable cloud model, right? And you're actually running with Cloudistics, instead of saying okay, my business is growing, now it's getting bigger, I have to pay this much for an extra amount of x, whatever it might be, if you want more compute, you can have more compute. If you want more storage, you can have more storage. You can actually add the components of the cloud that you require, based on the consumption that your business is actually running to. And that's one of the very very compelling events that Cloudistics' offering actually has. >> Composable and customizable. >> Yeah, and very simple. One of the key tenants of the platform is making this thing really really simple. So when we designed the product when we started, we started with the application first because at the end of the day, that's what you're trying to run. You're not here to manage infrastructure, you're here to develop being agile in your business. So we focused everything on making it really simple to deploy, and making the hardware invisible, automating all of the updates, so you never have to see hardware. And all you can focus on is delivering your services. >> So I want you to get really specific for a second. >> Yeah. >> Because many of the things that I hear, they think, oh, reminds me of what the companies that do hyper-convert say that they're doing. >> Right. >> Simplicity in the enterprise... >> Right. >> Easy to manage, things like that. >> Yes. >> Is there a software offering, is there hardware involved-- >> Correct. >> How does this all go together, is this a management suite that ties in to what I have? >> That's a great question. >> Make sure I understand. >> Yeah, so it's a completely integrated hardware-software platform, so think of it like your iPhone. When you buy an iPhone, it's hardware-software beautifully integrated... >> Motorola's the same by the way. (laughter) Yeah, okay, Motorola, fine. But it's a phone that's integrated with hardware-software. You connect to the network, you're up and running, you download your apps, and you're done. It's a beautiful experience. So we took that as an analog for our platform. So literally, it's completely plug-in play cloud, you roll it in, plug it into your network, go to our Marketplace, log in, download apps and start running. You can run Containers, you can run Docker, you can run Windows Sequel, all those apps are available for you to run with a click. So businesses now can be much more agile, right? Because now they're worried about delivering services, not messing with multi-solid hardware. Right so now generalists now can manage this platform. DevOps can manage this platform. Just like the public cloud. Yep. >> So to make this setup really simple, what we're doing is we're taking the thick agile solution, which is that pre-configured, pre-set, rackable solution. So compute, storage and networking all in one solution. At factory, we're setting it up with all the Cloudistics structure that we need to send it out, and basically ship it on site for customers. They only need two plugs, right? A plug for the network, and a plug for power and basically it's ready to go. >> It's amazing. >> Rod can you help, so we were just talking about the big news with NetApp. >> Right. >> You know, you've got new relationships with tenants, how does this fit in the work folio? What are the customer kind of pain points as to when Lenovo would lead with this? >> I think that's a fair question, Stu. I think if you have a look at what our go-to-market strategy is in the hyper-conversion space. This is largely guided by customer demand. So, basically at a customer demands point, we'll go in and we'll obviously lead with our customers and understand what are the pain points they actually have in their environment. Because many customers have got different environments, and three years ago, everyone was like "I'm going to be an AWS jumper, or I'm going to be..." The reality is everyone's got so many different clouds in their environment, they've got so many different environments set up. You know, whether that's the Adobe Cloud and Marketing, or AWS, whatever it might be, you've got to manage all of these different environments. So it sort of is dependent purely on what the customers' environment is, where we actually go. Now, from our perspective, this is a brand new relationship, only 6 months old, we are setting up dedicated people specifically to sell this with Cloudistics, and I feel like it's got a really good future. We just got to get this business growing, and I think we're going to be talking to more customers about it. >> Yep. >> So who is your sweet spot? You said that the emphasis of starting this company was that companies of any size could be able to do these things, and act more agile, as you said. >> Right. >> So who is your sweet spot, what's your target? >> Yeah so we target a medium-sized enterprise. So you know, 500 employees to 5,000, kind of in that range is our initial target. And we drive the applications like Window Sequels applications, applications that rely on performance potentially, or even general purpose work clouds where they just want to simplify management of the stack. And as Rod was saying, the management of the platform's pretty unique, and the fact that that's in the cloud, the management of the platform is in the cloud. So it makes it very simple to manage. So from one central spot, I can manage my multiple stacks throughout my company, and it makes it very easy to employ applications and manage everything. >> Do you have any specific examples of sort of the pain points that you helped solve? >> Yeah, so in our case, it was really around driving simplicity. So in many companies, many medium-sized companies, they struggle with the complexity of multi-tiered infrastructure. So I have to have a virtualization expert, I have to have storage expert, I have to have a network expert. And I have to have an app expert as well. Right, I've got to make all those people work together. So businesses now are trying to be more agile to push applications out the door so they can run their business. So by all those interdependencies, it creates a lot of complexity. So we've cut out all of that and we've created a platform where you don't need all of those interdependencies. It's done for you. So it's literally plug and play, so businesses can get right to their work at deploying applications. >> So, there are a number of things that we've looked at, from a research standpoint of what makes a private cloud, and a lot of it is kind of measuring the bar against a public cloud. You said, simplicity, absolutely a good one. One of the ones that we're starting to see some movement in the private cloud, it's starting to go more opex. >> Right. >> As a service office. >> Correct. >> I was walking through the show before and talking to Lenovo people about that. Is that part of the discussion today, and maybe talk about how that works. >> It is, and the platform is fully tenanted for example. We took a page out of the public cloud where, if you go into any public cloud, you create yourself a virtual data center. And within that virtual data center, you can deploy your applications. With our platform you can do the same. You can have a pool of resources, we've extracted everything to pool. RAM, cores, and stores, that's all you need. You can allocate those to your constituents, your customers, your departments. And they have a completely multi-tenanted, fully secure environment to work under. Without impacting anybody else. And with our core technology around networking, we've completely isolated the layer 3 networking layer, to make sure it's highly secure within that box. >> I understand. So they can almost be like a service provider themselves? >> Yes. >> So I guess one of the things is, what about from the financial standpoint? Are things still allowing me to scale up and scale down, is it just in that box I can carve it up? You know Lenovo has an option that was like oh hey, I need to burst up for a certain season, but I'm not going to have to pay, or are there certain things they can do financially. >> Very, very interesting. So the platform is elastic in a sense, where you can plug in and play resources. You can add memory, you can add cores, you can add storage, you can network on demand. And jack it in and scale the resources. We are working on coming out in a future period a hybrid where you can burst and scale into public clouds, which is a big deal, right? Because we have very unique layer 3 networking technology, we can potentially stretch those networks into some other cloud, which is very interesting. So that means that our Lenovo customers can then burst into on demand, on the monthly payroll system, into a public cloud if necessary. So that's a future thing we're working on. >> To your points as a service, you heard today obviously as we had a little bit of a keynote up there, Kirk hinted at the fact that we're trying to drive as a service solution around on the hardware, which really matches perfectly with the Cloudistics solution that Naj was just talking about. >> Yes. >> We're really, really close to this. I would have loved to have been one of our announcers today. But we've got a few other things going on. So we will come forward in the market as a service, fully metering as a service solution that we think is very compelling in market to match up with the Cloudistics offering very, very shortly actually. >> It's fun. >> So how are you getting the word out? I mean we already know you need to increase your budget, that was our last guest who said that. (laughter) >> Exactly, so Naj and I went on our focal about this decision this week. >> Yes. >> We need to get the word out a lot more aggressively, and a lot more compelling than we are today. So we have dedicated resources now in Western Europe and North America, we're about to expand our dedicated resources into China and the Asian Pacific, and then down into Latin America. So we start off by dedicating people on the street that are actually going to be at the start talking to customers. Then we're going to have to drive into a marketing campaign of some description, so we can actually start to drive a more compelling story to market, so they actually get to know what Naj's company has developed. Because once again, it's really compelling. >> Right, great. Well Naj, Rod, thanks so much for coming on the show, it was great having you. >> Thank you. >> Thanks very much. >> I'm Rebecca Knight with Stu Miniman, we will have more from Lenovo Transform and theCUBE's live coverage in just a little bit. (upbeat music)

Published Date : Sep 13 2018

SUMMARY :

brought to you by Lenovo! Thanks so much for coming on the show. Nice to meet you. Rod, why are you so lazy at this show? and I'm running hot so I'm looking forward to a So I spoke to my CTO and I said, So we started with this scale-able architecture So Rod, why don't you help bring in and new things that I now have to get my arms around. So to Naj's point, you had like 50% of the cost And all you can focus on is delivering your services. Because many of the things that I hear, they think, When you buy an iPhone, it's hardware-software So we took that as an analog for our platform. So to make this setup really simple, the big news with NetApp. specifically to sell this with Cloudistics, able to do these things, and act more agile, as you said. So you know, 500 employees to 5,000, So I have to have a virtualization expert, in the private cloud, it's starting to go more opex. and talking to Lenovo people about that. You can allocate those to your constituents, So they can almost be like a service provider themselves? So I guess one of the things is, So the platform is elastic in a sense, on the hardware, which really matches perfectly So we will come forward in the market as a service, I mean we already know you need to increase your budget, Exactly, so Naj and I went on our focal So we start off by dedicating people on the street Well Naj, Rod, thanks so much for coming on the show, we will have more from Lenovo Transform

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Rod Lappin, Lenovo & Roger Cox, Gartner | Lenovo Transform 2018


 

>> Live from New York City, It's theCUBE! Covering Levnovo Transform 2.0. Brought to you by Lenovo. (techno music) >> Welcome back to theCUBE's live coverage of Lenovo Transform here in New York City. I'm your host Rebecca Knight along with my co-host Stu Miniman. We're joined by Rod Lappin. He is the senior vice president in marketing here at Lenovo. And Roger Cox, the research vice president at Gartner. Thank you much, gentlemen for coming on theCUBE. >> Thanks for having us! Excited. >> So the big news for the day, NetApp, Lenvovo Two global powerhouses joining forces I want to hear Rod, the Lenovo speil, and then I want to hear your analysis of the deal and what you make of it. So why don't you go ahead. >> Yes, so obviously we're really really excited, Rebecca. It's a great day for us. I think it's something that we've been really planning with NetApp for obviously a long time, and to actually have it come to fruition is really exciting for all of us, right. So as you would have known, probably, our storage offering in market has been quite small up until now. We're addressing about 15% of the market. With this new deal with NetApp we're sort of in the TAM the target market. We can after up to about 92%. We've been quite good at storage. We've been growing about 2X the market average in Flash, over 100% year on year, but we haven't really had the full product range that we've needed to really address out customers' needs, and so, now having this, having this deal now with NetApp means we can go after our customers and really bring value to them the way that we have wanted and definitely the way our customers are asking us to. >> And so that's my question. Was it customer driven? Was it them saying: We just need you to able to do more or what? >> I think if you look at our core business last quarter, Gartner, obviously, ranked us as the fastest growing server business globally. We grew 68% year on year on our revenue last quarter. And so, with the momentum we've got now as a business, we're seeing our customers want us to do more. We're number one in customer satisfaction, number one in reliability, so they see value in us generally but we had sort of what I would classify as a subsegment of the storage market that we want to address. And of course our customers are saying to us: Hey, we want you to do more for us because we like the way you've performed. So it's been good for us. We're excited >> Yeah. >> So, Rodger you know a thing or two about the storage industry and NetApp specifically. So give us the customer viewpoint. You talked to a lot of them. >> Well, first of all let's say this is one of the better kept secrets because it never leaked out. So really haven't been getting customer calls on this event yet but I'm sure we will starting today be getting a lot >> Yeah, they brought a few analysts down to RTP in July and I remember, Rodger you said: What do I do when the customers call? and they're like, shh, shh. Customers aren't going to call. We're going to keep it under wraps. >> And they did a good job of it. But anyways, what it means, I think, to Lenovo is it really elevates Lenovo's standing as a provider of IT technology for the data center. So they now have, not only a very competitive server offering, which Rod's talked about quite a bit, they have what many believe to be one of the best storage offerings in the business. And now they can go compete head to head against Dell EMC, as well as with HPE, which would be the two larger competitors that they have to deal with. So it's going to be very good in terms of providing an alternative to clients for data center technology-involved storage. Good thing. We like competition. >> Absolutely, and we want to be part of it. I think up until now we probably haven't been able to. So when you look at how we're going to market, my field sales team has been planning with the NetApp field's also. We've been basically coordinating how we go to market where do we attack together, where do we have conflict, where do we not. So we actually go in and really focus in on those core competitors that Roger's just described which is where we want to go. >> In the keynote this morning it said from a channel standpoint, there's not a lot of overlap which, on the one hand, I'm saying: Well, sounds like we'll need a lot of training then. But how do you hit the ground running fast? >> So we are already ready to go. We start shipping tomorrow, so that's the good thing about this announcement. Like Roger said, we kept it under wraps, but we are ready to manufacture and go. So, I think it's a really exciting spot for us. From a go-to-market perspective in the channel, NetApp has traditionally been very much about engaging end users, fulfilling through the channel, but engaging end users. Where Lenovo's got a much stronger forte around mid-market and SMB. And we've got a much stronger forte in emerging market, so if you actually start to split geographically the world up a little bit and then you can start to split how we got to market a little you can actually find some really big parts of the market that we don't conflict at all that we can go after. >> But you see, from my point of view, the bigger challenge they have is to go to market. Now they could say there's not much overlap, but you know there's always overlap. There's going to be certain accounts where Lenovo already has a position, and maybe NetApp has a position, too. Then, who's going to do what given a time? So, the biggest challenge that Lenovo has here is also a challenge for NetApp is how they manage together the go to market motion, as well as the service and support because Lenovo's going to have level one, level two support responsibility. They're going to have that revenue to go for support. We'll see how that works out over time. >> I want to ask you what your advice would be to Lenovo leadership in terms of, this deal enables it to go after bigger players and to take over more of the market. But when it's now going head to head with Dell EMC , what do you think it should focus on? >> I think it should focus more on marketing. The products speak for themselves. The competency of these products are well-known. Besides this, it gives Lenovo the opportunity to become more cloud-friendly, too. Because they also have access to all of the software out of NetApp's cloud data services organization. So my main advice would be to Rod, because he's responsible for this, (Rod and Rebecca laugh) is put more wood behind arrow. Get Huawei to put up more money to accentuates the marketing of the product. Create more enthusiasm about the fact that you're now up at another level in terms of being an IT provider to the data center. >> It's a well kept secret as you started out by saying >> Yeah! >> That's right so we've got a business case that we've put together that's starting today obviously. Which involves us getting out and starting to hit the ground running with a lot of media. There's a lot of social media noise today on it obviously. Thanks very much to people like yourselves which is great. And I think we're going to see a lot more marketing-based initiative that run both through the channel as well as to the end users across our, what I classify as our T-1 countries to start with. To Roger's point, though, when we look at the go-to-market, we basically categorize in all the accounts into four boxes. Those accounts where NetApp's very strong and Lenovo's very strong which means Lenovo's strong from the server perspective. NetApp's very strong from the storage perspective. >> FAP would be one of those. >> That's right. That's a very good example. And in that environment, we're going to collaborate and show them we're communicating with each other and ultimately, not fight with each other. We're going to recognize that we want to continue to protect our server business. They're protecting their storage business. We don't want to touch that. In a place where Lenovo, for example, may be weak and NetApp very strong, so they're got a very good storage relationship, we want them to bring our servers into that space. Because obviously if they don't bring us in, then one of our key competitors that is also competitive in NetApp is going to have a foot in the door there somewhere. So, we're going to drive a little bit of a different strategy in that environment. Then, we've got obviously the third environment where Lenovo's very strong from a server perspective and NetApp's nowhere. In that environment, it's free fields for Lenovo to go after that with our new storage array. And then obviously, where we're both neither engaging those customers, it's in acquisition for both. We're going to play and ultimately go after them. There's some really great things that we've been able to put together with this relationship. Like for example, comp neutrality. So, the NetApp teams when we go into that third and fourth box I was just talking about, the NetApp sales force is going to paid the same whether it goes on a Lenovo hardware or goes on the NetApp hardware. So, we've got some pieces that sort of ensure that we don't have conflicts and we're all aligned to ultimately grow and compete with Dell EMC and HPE. >> So, Roger There have been some interesting server and storage partnerships. I think back a decade ago, Dell and EMC did billions of dollars together. It eventually broke up, and then what do you know, it went back together. I think five years ago, NetApp had pretty strong server partnership there. The storage market has changed a lot in the five to ten years. Tell our audience a little bit how NetApp's different, how the storage market's different, and how customers should be thinking about an arrangement like this. >> Well, the storage market's different because there's more alternatives for storage. There's the Cloud: AWS, Azure, even Google Cloud. You get over to Asia, Alibaba over in Asia and so forth. So that's had a very large impact on on-premises storage. The other one is hyper converged. Lenovo's very much a hyper converged business. They have relationships with Nutanix. They've got them with VMware. They have them with Pivot3 and some others. And so, all of these things come together to create a different alternative to the classical three-tier infrastructure: server, networking, and storage. So, all those things are going to exist. And, the upright storage market, while it may be a declining market from a revenue perspective, has a long payoff. It's going to be like mainframe, so it'll be here forever. Like Tate, here forever. It's like me. I'll be here forever. (Rod and Rebecca laugh) So right now, Stu, we're seeing a little bit of a bubble. So we are getting a bubble interns of, this is a good time by the way for Lenovo to have this partnership because there is more likelihood of increase spending for IT. Good economy in the States, good economy over in Europe. Good economy around the world for that matter. I think it's going to last another couple years. 2018, 2019, maybe in the 20's before it starts tailing off again. So the way people are talking to me now, it's kind of like a flush. Hey, we got all this money. We're going to go spend it. Refresh everything. Get more over into Flash. I think they will sell a lot of Flash, even with the entry product, what they call a DE. I think they'll sell a lot of Flash there. And of course up in the DM series, which is the equivalent of NetApp's A200, A300 which are top tier products. They'll sell a lot of Flash there, too. >> I would say as what you just mentioned, the traditional storage market is reducing, but Flash is obviously growing. NetApp last quarter was the number one Flash company in the world. 27.6% market share-- >> Where do I check that out? (Rebecca laughs) That comes from another source >> That comes from another source, yeah sorry. But they hit number one last quarter according to an unknown source. But I think that's really encouraging, right? And at that part of the market Flash is about 30-40% of the overall storage market right now and easily the fastest growing. So this product range really drives an all-Flash array type solution that we can actually take advantage of. >> Rod, we want to get your perspective China, too. That's a big piece of this announcement. Maybe you an talk a little bit about that. I think Roger's got some comments on it. >> Well, think this is a good deal for NetApp. This is the reason why I think maybe the channel conflict won't be as bad as it was for the Dell EMC guys. This is the way for NetApp. NetApp wants to go more and more towards the Cloud. You look at their strategy. It's going more and more towards the Cloud with all of the Cloud data services software that they're developing. And so they're putting more and more emphasis on that. At the same time, the relationship they have with Lenovo gives them the opportunity to get really a creative revenue that otherwise would not get. Allows them maybe to reduce the burden that they would have under manufacturing SGNE expenses and stuff like that. But the big benefit is China. They JB in China is going to give NetApp a entry into China that otherwise would not be able to get because of the laws that the People's Republic of China have. It's a big deal. >> I think we're really excited about China. Obviously that's one of the cornerstones of the deal. So it's an independent organization that's going to be set up. Lenovo will have 51% ownership. NetApp will have 49. Seven board members. Four of them will be Lenovo. Three of them will be NetApp. And ultimately we are going to have that organization just purely specializing on the Lenovo product that is designed by NetApp originally. And it's going to be doing joint IP. We'll have joint developers in there. We'll be able to leverage my existing sales force in China, that's our traditional sales force, to go and drive for everything from a tier one city all the way down to a tier six, tier seven city in PRC. But, that joint venture itself will just be a specialist organization specifically on storage. It's really exciting. >> The thing about the JB it's very very important. Whatever is developed by the JB has to stay in China. That software cannot be taken outside of China because of all the geopolitical issues that you have around the world. Big point. >> Yeah, and a challenge. >> Absolutely It's a challenge that both NetApp and Lenovo have to manage with respect to each other. >> Just for the record, I'm not totally sure. If we develop something in the joint venture, I'm not totally sure that we have to keep that in China. >> I'm not saying that legally you have to. I'm saying emotionally you should. >> Emotional we should. >> Ahhh... >> I was going to say... >> There might be some government concerns on some of that. >> I think it's always going to depend on the government. And we don't want to get into a geopolitical conversation. I think Europe for example will be a lot more liberally open to that sort of stuff >> Speak a little bit about the cultures coming together. NetApp. You've been working on this deal together. sometimes that can be the strength or the challenge. >> I think company cultures are always challenging. And when you get two companies that are, especially right now, as we've heard this morning in some of the sessions, turning the corner. They're both growing. They're both doing very well at the moment. So, there's always a level of confidence, shall we say, in both those situations that you've just got to break down. And I think what we've done very successfully this time is Wei Wei, and George and Kirk, and George and Henri Ricard and myself and Brad Anderson, you saw today who was actually up on stage with us today as well working with us as the executive sponsor on that side. We're lining up our executives globally. All of the field team for Henri Ricard's team and my field team globally have all been interlocking with each other. They're account planning. They're territory planning. We're really trying to break down any of the walls the way may have from a cultural perspective. And really drive a much more open conversation, so we don't get caught out early in the deal. There's a escalation process in the deal. So it goes to a geo level up and then ends up with Henri and myself to actually manage worldwide if something was to get really out of control. But, at the moment, day one, don't see any issues. Seems to be going okay, touch wood. >> They both, Brad and Kirk, said they're complementary companies. Is that your perspective, too? Would you agree with that? >> Well, I think they gave complementary purposes. The interesting thing here is this thing's coming together when both companies are on the uptick. It's not because, go back three years ago and look at where NetApp was three years ago versus where they are today. So it's coming together when both companies, and matter of fact, go back to look at Lenovo two years ago as well >> Absolutely. >> So it's been an uptick that happened here over the last three years, so this thing's coming together when both companies are doing quite well in that respect. >> So-- >> By the way I want to mention Gartner will be publishing a report in September on this transaction from NetApp's point of view. And we'll be publishing a report on in November on this transaction from Lenovo's point of view. >> Great, so one of the things people like Roger and I have to do is, we look at how we would say whether something's successful or not. So I want to get your point first too and then when you look out six, 12, 18 months from now, whether it is successful and the thing I have to say is Kirk and Brad said, well, our goal is to number three in China, and I said isn't that a low bar? Aren't you practically on day one? I mean you're two joint companies. It's going to be there? >> I can't count on my boss to be honest with you. >> You've got the sales team. I know you can do that. >> I would love to. I think at the moment let's just talk about the joint venture for a second. I think the point is at the moment we are only 15% addressable market with our existing range. And so at the moment, we're saying, hey we can address 15% of the market. That puts us way outside of the number 10 slot in PRC. So, to say we want to be number three, is quite ambitious. Especially because we want to try to do it in the next couple of years. So, I actually feel like he's being quite aggressive from a growth perspective, so I think that's quite balanced. Outside of that, I really want to measure us on profitable growth. We really want to diversify our share of wallet and our customer base. We've got a great customer base now from a server perspective. We need to really expand that to ensure that we're taking advantage of the customer feedback we've had. So, I think that's a pretty good spot. >> At the end of the day, the success of non-success of this program is in Rod's hands. (laughing) On the one hand, >> I love the pressure you're putting me under >> And then Laura, on the services support side. People will support this program if they get good quality service and support. So, you have to keep that up for this program. >> Absolutely, and at the moment, the services model is level one and level two is run by Lenovo internally and then level three escalation runs into the NetApp program. We believe we've got a model that runs well. >> A good note to end on. Thanks so much for coming on theCUBE Rod and Roger. >> Thank you very much. >> Thanks for having us I appreciate it very much. It's my inaugural time here. >> First of many. I'm Rebecca Knight for Stu Miniman. We will have more from theCUBE at Lenovo Transform just in a little bit. (techno music)

Published Date : Sep 13 2018

SUMMARY :

Brought to you by Lenovo. He is the senior vice president Thanks for having us! So the big news for the day, NetApp, Lenvovo We're addressing about 15% of the market. We just need you to able to do more or what? a subsegment of the storage market that we want to address. the storage industry and NetApp specifically. of the better kept secrets because it never leaked out. We're going to keep it under wraps. So it's going to be very good in terms of providing I think up until now we probably haven't been able to. In the keynote this morning it said From a go-to-market perspective in the channel, the bigger challenge they have is to go to market. and to take over more of the market. Because they also have access to all of the software the go-to-market, we basically categorize in the NetApp sales force is going to paid the same in the five to ten years. I think it's going to last another couple years. Flash company in the world. And at that part of the market Flash is about 30-40% Rod, we want to get your perspective China, too. because of the laws that So it's an independent organization that's going to be set up. Whatever is developed by the JB has to stay in China. have to manage with respect to each other. Just for the record, I'm not totally sure. I'm not saying that legally you have to. government concerns on some of that. I think it's always going to depend on the government. sometimes that can be the strength or the challenge. So it goes to a geo level up and then ends up Would you agree with that? and matter of fact, go back to look at Lenovo two years ago the last three years, so this thing's coming together By the way I want to mention have to do is, we look at how we would say You've got the sales team. So, to say we want to be number three, is quite ambitious. At the end of the day, the success of non-success on the services support side. Absolutely, and at the moment, the services model A good note to end on. I appreciate it very much. First of many.

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Deepu George, Capgemini & Rod Lappin, Lenovo | Nutanix .NEXT 2018


 

(upbeat music) >> Live from New Orleans, Louisiana, it theCUBE. Covering .NEXT conference 2018, brought to you by Nutanix Welcome back to theCUBE's coverage of Nutanix .NEXT 2018. We're here in New Orleans, Louisiana. I'm Stu Miniman joined by my co-host Keith Townsend. And while this is the North America show, we've seen the expansion of it, we actually have two guests coming in from the Asia-Pacific region. Happy to welcome Rod Lappin. Rod, SVP with Lenovo, thank you so much for joining us all the way from Singapore. >> Yep, absolutely, great to be here. >> Stu: And we have Deepu George, who's the Senior Director with Capgemini Group IT, in from Bangalore Thank you also for joining us. >> Thank you for having me. >> Alright, so Deepu, let's start with you. We always love conferences like this. We get to talk to the users. Tell us a little bit about your group inside Capgemini, some of the challenges that your IT team's been tackling. >> Yes. So I'm part of the group IT, responsible for handling all the data centers, group data centers within Capgemini, and we are responsible for delivering data sorting services and processing services, et cetera. So, one of the key ideas we started last year was DC modernization and consolidation. And one of the key strategies we were looking at was hybrid cloud and extra DC stack, completed as revision stack, support for that and plus, you know, automation. So these were the three areas where, which was a key strategic areas for that data center modernization and consolidation. And when we looked at the various options available, one thing stood out from the Nutanix side was, I mean it checked all the boxes and they had a very good roadmap on certain areas which were not available at this particular point of time. So then we chose, okay let us have a PoC done, we did a PoC along with Lenovo and it was successful. And then we went ahead with this relationship with Nutanix. >> Great, Rod just want to bring you in here, we've been talking about really the growth and expansion of Netanix, one of the big pieces is the OEM. Lenovo have been hearing good growth rates. Give us a little bit of a customer viewpoint, what you've been seeing. Nutanix in general and the Lenovo HX specifically. >> Yeah I think obviously Stuart, the very exciting thing is Nutanix is the leader in the industry, right, and with them Lenovo this last year, we grew about 197%, year-on-year. So it makes us their fastest-growing partner. And in the North American channel environment, for example, you're at 280% actually, so we're growing very, very rapidly with them, and there's real reasons. Customers are seeing the value obviously in the solution, the consolidation of the data center footprint, and obviously as customers are being pushed more, as Deepu just mentioned, to the hybrid cloud, or what we're calling really the multi-cloud these days, right, because customers are really looking at and choosing their cloud solutions based more on the workloads and what they're actually trying to do longer-term. You know I think we're best positioned to do that with Nutanix, it's a great solution, I think Capgemini's really one of our great global, strategic global systems, integrated partners, that's taken a choice to run with Lenovo and Nutanix. It's been a great HX solution for us. >> So Rod, before we get too deep, let's ask a basic question. Lenovo, tier one server provider. You guys consistently in one of the leadership positions, and in number of units shipped, obviously you guys have the chops to field a similar solution. Why partner with Nutanix? >> Yeah I think Nutanix, firstly from a software perspective I think that's definitely where we're seeing, you know, if you jump back sort of 10, 15 years, that three-tiered architecture was where everyone was going, SAN and all that sort of stuff. Now when you're seeing the solutions that Nutanix and the hyper-converged market is growing so rapidly at, you're really seeing customers recognize that they get a lot more value out of the software suite, data center consolidation, data center footprint consolidation, and really the ability to manage on-prem and off-prem workloads seamlessly, you know with the prism solution and we integrate that with our Xclarity offering, our management suite, and as a result, it's a real match made in heaven. It's actually doing really well. >> So Deepu? >> I'll talk to that, if you look at software-defined, and that is a key area where we are going right now. Most of the organizations for this data consolidation, they are looking at software-defined, and when you look at the network stack, you have SDNs and all these things, so when you have Nutanix with an NCI, with the complete SD stack, it all ties up together. It's pretty easy for us to, you know, completely scale out the data centers. It's flexibility we have with software-defined and it's a good match, it's a good fit. >> Deepu can you walk us through a little bit of the application side of what you're doing? What did you start with? What have you rolled out? What haven't you touched yet? >> Yeah so once we started our PoC, once we know that data centers, so what we did was, we had our first data center consolidation exercise, modernization exercise, which just happened in Brazil. We had our own three data centers which we wanted to consolidate into one as part of our consolidation and modernize strategy. So we had a mix of upload there, we had basic things, we had normal applications, we had VMs running, we had physical nodes running. And what we did was we consolidated, moving into a single data center on 10 nodes of Nutanix, and we closed down all the other data centers and it was a pretty good experience that we had. The support we received from Lenovo and Nutanix and most of this work was done completely from off-shore. So we had a couple of our engineers posted in Brazil for the coordination activities, but the physical work was completely done from off-shore interfaced our support engineers. So it was a pretty good exercise. We got very good support from Nutanix. We got very good support from Lenovo to get consolation done in the correct time. >> So Deepu, Capgemini has a pretty capable consulting firm, I'm sure you guys got plenty of advice internally as you set out to select the vendor. Let's talk about that selection process. How did that conversation initially go, where you guys kind of threw out Nutanix and Lenovo as potential solutions? >> So if you look at the commercialization world right, I mean it's already pretty much standard. So when we looked at the key modernization initiatives, I already talked about this with VC and stuff like that. We came out with a list of parameters that we wanted to look at, just so that there cannot be any compromise on that. And then what we are looking for in the future when we, so modernization cannot happen in a day or two. So it is a journey. So we have a two- to three-year window in which we wanted to consolidate all our data centers, modernize everything, so the Nutanix roadmap on the various automation, STDC, as to the complete hybrid cloud journey, was pretty strong. And we had the complete management commitment from Nutanix, that they will stick to this particular roadmap and these features will not be compromised in any way. So that is one of the key decisions for us to go with the Nutanix way. >> Well let's talk about performance. You guys have been Nutanix customers for a while, how has the roadmap matched with the promises? >> So from a performance point-of-view, so if you look at only the pure CIA performance, right, wherever you have a high-performance workload, we have an option to go with a complete full SDN stack, where the BIOS in not absolutely a challenge or anything there's a huge throughput available. So from a performance point-of-view, we don't think, that's not an issue as of now. Even for the traditional storage, performance has never been an issue but the actual issue is how do we make the complete software available? How do we make the completely controlled from the software point-of-view. So there is where we found that that the CI use of very good challenging, you know, what do you call, user complete flexibility in how you want to define your data centers. >> Actual performance performance, that's really great. But I meant from the promises Nutanix made from a roadmap thing. This feature will be available on what day, you know, three months from now, a year from now. Were they actually able to deliver based on your own internal roadmap, and the capability you needed? >> Let me put it now this way. So if you look at the kind of investment that we have been making, in Nutanix and Lenovo, so you can be pretty much assured that these promises are kept 'cause otherwise we would not be making that. So Brazil was just a start that we are just going ahead. We are just looking at different workloads now. We have already looked at exchangeable close, which is currently in January and getting installed now. We have looked at video close one of the largest in Capgemini, we have 42 nodes of Nutanix running for 410,000 medias. So based out of Bangalore and Mumbai. So if we just, the performance, if it was not met I don't think we would have expanded the way we have expanded. >> Changed decisions. I think really ultimately, as Deepu mentioned, they started off with a pilot, as you mentioned, obviously in Brazil, and he's ended up taking this globally, which has been a great success story for both of our organizations. >> Right, could you give some more color on the partnership? >> Yeah sure, so I think Capgemini's a great global systems integrator for us. Both to sell to, obviously, as well as sell through, and they're doing some pretty amazing things with their customers and I think one of the great things that we're seeing in this particular instance, as we mentioned, Nutanix, leader in the hyper-converged space, and Deepu's made a call on them, based on their performance, and their basic feature set in their suite. And then ultimately Lenovo, who's number one customer service, number one reliability, number one quality in industry on independence, so you put 'em together, we ended up having a great relationship from that point, and then it's built confidence inside Capgemini now, for us to be going out to their customers and driving this solution out into their customer base. So it's once again, a great outcome for both of our organizations. >> Lenovo's been a traditional partner for us, it's not that new to us, so one of the major reasons is that they want a global reach and we have global data centers, and we have got global footprints, and it's a pretty good time. >> Deepu, how are you measuring the relationship? Any success metrics, from either the application deployments or you know, how do you measure internally and share that with your teams? >> So we have timelines on our consolidation, modernization, et cetera, as long as that is met, together with Lenovo, Nutanix, we are very good. >> So I'd love to hear about day two operations. What are some of the benefits you've seen from a people, resource talent, have you seen resources freed up to do other projects? What are some of the interesting projects that you've done as a result of freeing up time? >> So currently we are progressing through this particular journey, so this year we have a huge focus on the automation piece of the data center. So we are in the beginning stages of getting automation, automation in the sense that the normal proactive activates, all are given. So we are not talking about that, we are talking about the repetitive task, which is less part of the data center and that we have started. So basically we are looking around for any virtually reduction in our ticket volumes, our, you know, the normal work which is being done by the normal engineers so that the can be freed up for these kind of modernization projects. So that's what we are looking at, so let's see how it goes. >> Deepu, one of the things that we're talking about at this show is beyond just the HCI, it's cloud, even edge, what kind of futures do you see for Capgemini in general, and maybe with Nutanix and Lenovo relationship. >> As I said in the beginning, hybrid cloud was one of the requirements for choosing the correct partner for our data center modernization. So currently as we are beginning this part of the journey so moving the data seamlessly into the cloud is one of the key requirements of Capgemini. From an applications standpoint, from a visibility standpoint, et cetera, so we will be looking at which applications easy target for moving into the cloud, and we will be doing that and we believe that Nutanix, hybrid cloud technology will be able to help us in achieving that. >> And I think Stu, that's a really good point because I think what Deepu's just describing is effectively what we see happening in the industry everywhere. You know, we go back 20 years in the industry, a few of us have been around that long, and we remember like a homogeneous environment, everyone would say, I'm this vendor shop, they've got network administrators patching servers, when we're getting hardware put on site and customers are doing all of the integration on site themselves. That's just what the industry did back then. Now, as we see workloads changing it's a little bit like cloud. Three years ago everyone was like, I'm going to be this cloud vendor. That's it, that's my cloud vendor solution, right. However now it's become really acquiring the workload infrastructure and the software suites in line with customers' specific workload requirements, and so now, instead of going after the one cloud provider, now you've got a cloud provider in marketing, you've got a cloud provider in ERP, you've got a cloud provider in IT. So that's why this whole multi-cloud, hybrid cloud, type scenario's really starting to proliferate throughout the customer base. And you really find that, as Deepu just mentioned, they're starting, customers are really looking for how do they manage cloud, multiple clouds in multiple ways, with different workloads, and they're really going out and looking and exploring, how to best address that and I thing once again the Nutanix-Lenovo solution's fantastic for that. I mean you're going to see that proliferate more and more in the industry over the next couple of years. >> So one of the, sorry Stu, one of the comments throughout the show has been, you know what, and this is not a pick on Nutanix or anyone else, I just, both of you guys are not from North America or Western Europe, is that the focus, a lot of vendor's focus has been on Western Europe and America, from a cloud perspective. How do you feel that Nutanix relationship from both a customer and as a partner, has been, on expanding capability beyond North American and Western Europe clouds? >> Rod: Why don't you go first, Deepu. >> Yeah, so if you look at, traditional Amazon Azure, so we have their clouds which are already available in India. So we have been checking that now, we have been looking at various options for the biggest workloads. But predominantly, our predominant workloads have been on the European and the North American cloud for lots of reasons, because if you look at Amazon or Azure, they're coming recently into the Asian footprint with (mumbles) if I'm not mistaken. Yeah, but I mean I think we will get there. >> So I think from our perspective, we break the world into five different geographies. So China, Asia-Pacific, Europe, North America and South America. And when you look at our earnings this last quarter, I'm only about two weeks away from our next earnings so I can't say anything about Q1, but the Q4, calendar Q4, we grew about 17% year-on-year but we grew double-digit growth in every one of those geographies, consistently. So in Nutanix, with our HX solution, which is really what we're talking about today, my Asia-Pacific team is growing just as fast, if not actually a little bit faster, than my North America teams. So we see that this technology actually being a real world-wide phenomenon and it's really growing everywhere. Japan is fantastic, India's fantastic for me. Obviously Western Europe. Deepu's a great example, 'cause he's deploying this globally across all of the geographies and I think we're seeing a lot of our G2000 customers, really addressing that, that way. But we see a lot of local companies as well, driving it across the geographies. Asia-Pacific's a great example. >> So if you look at, again, from a CA Nutanix-Lenovo standpoint, we have been going evening everything out so we have recently done that on 16 nodes within Bangalore and Mumbai, so that's a pretty good story. >> Alright, well, Deepu George, thank you so much for joining us, Rod Lappin, always a pleasure to catch up with you. >> Thanks Stu, thanks Keith. >> For Keith Townsend, I'm Stu Miniman, we've got a full day of Day 2 coverage here of theCUBE and Nutanix .NEXT 2018, thanks so much for watching theCUBE. >> Thank you. >> Thank you. (bright music)

Published Date : May 10 2018

SUMMARY :

Rod, SVP with Lenovo, thank you so much for joining us Stu: And we have Deepu George, who's the Senior Director some of the challenges that your IT team's been tackling. And one of the key strategies we were looking at and expansion of Netanix, one of the big pieces is the OEM. And in the North American channel environment, for example, and in number of units shipped, obviously you guys and we integrate that with our Xclarity offering, and when you look at the network stack, and it was a pretty good experience that we had. where you guys kind of threw out So that is one of the key decisions how has the roadmap matched with the promises? but the actual issue is how do we make and the capability you needed? the way we have expanded. as you mentioned, obviously in Brazil, in this particular instance, as we mentioned, and we have global data centers, So we have timelines on our consolidation, modernization, What are some of the benefits you've seen and that we have started. Deepu, one of the things that we're talking about and we will be doing that and so now, instead of going after the one cloud provider, is that the focus, a lot of vendor's focus So we have been checking that now, we have been looking but the Q4, calendar Q4, we grew about 17% year-on-year So if you look at, again, thank you so much for joining us, of theCUBE and Nutanix Thank you.

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Paul Sabin, Baker Botts L.L.P & Rod Bagg, HPE - HPE Discover 2017


 

>> Announcer: Live! From Las Vegas. It's theCUBE. Covering HPE Discover 2017. Brought to you by Hewlett Packard Enterprise. >> Welcome back everyone. We are here live in Las Vegas for SiliconANGLE's Cube exclusive coverage of three days of wall to wall interviews here at HPE Discover 2017. I'm John Furrier, your host with Dave Vellante, cohost. And our next two guest is Rod Bagg, VP of Analytics, Customer Support, Data Center, Infrastructure, HPE, formerly Nimble now HPE. and Paul Sabin, Senior Network and Infrastructure Manager at Baker Botts LLP. Guys, thanks for joining on theCUBE. >> Male Voices: Thanks for having us. >> So we talked before we came on camera about all the great stories Nimble obviously part of the fold here at HP Enterprise. Your customer stories. Let's get right into it. Tell your story about how Nimble put you out of a job. That's my favorite one. Go. >> Okay, so when I started or when we bought Nimble Storage, I was the senior storage engineer. So we purchased it, we brought it in-house. It was up within, within an hour, I was already starting carve out LUNs. At that point, I'm using the restful APIs to carve out the rest of the 200 LUNS that we needed. Presenting it to the hosts. And by the end of it, it ran itself. Between InfoSight and the fact that the product just is so easily automated, I kid you not, true story, at the end of the year when we were doing our self evaluations, my evaluation said, and congratulations, you don't need me anymore. My position is obsolete. And the management came back and said, Paul, you're absolutely right. We agree that we don't need this position anymore so we're going to promote you to the senior network infrastructure team. (John laughs) So I manage that now. >> So you got promoted. But this is a trend in automation. This is the DevOps, this is the programmable infrastructure world we're moving into with hybrid. >> Exactly. Rod, this is big deal. >> Yeah, yeah exactly. InfoSight as we see it plays a big role in that. Really the product is simple and being able to automate that. But InfoSight giving our customers sort of visibility at a very deep level into how the systems are performing. And what we do on the backend to drive availability really takes a lot of pain off of our customers. Not sure that we put everybody out of work but we certainly make life easier. So that they can focus on the business aspect. >> And you automate those tasks the way that really should be automated and that's a cool thing. >> Yup. >> Take a minute. I'll like you to take a minute just to explain what the product is and what you guys are doing. Just so we can get that out there as context. And then jump into some more stories. >> Yeah so from an InfoSight perspective? >> John: Yeah. >> So InfoSight is our predictive cloud analytics platform that uses machine learning to predict and prevent problems from occurring to our customers. So we're not disrupting their business. And so we collect somewhere in the order of, about maybe 25 million pieces of information from every array and the virtual environment. Everyday from every single array. All of that gets into a galactic database, where we have a team of data scientists working with our support engineers and our product engineers to build wellness rules. We have about eight hundred health checks that are really looking out at every part of the infrastructure for our customers and really avoiding issues for them. >> So you take the data across your entire install base. >> Rod: Yup. >> I'm sure you take care of the data so it's not all-- >> Rod: Oh yeah, it's all secure. >> Secure and nanomized. And then use that as predictive to prescribe or both or how are you-- >> Yeah both. So our real goal there is that if we know of an issue, that's either we found in our labs or maybe one customer has experienced it. Really, we're doing everything we possibly can to analyze that issue across the entire install base. So we're learning from peers. >> Male Voice: Yup. >> And applying those learnings across the install base and preventing other customers from hitting that issue. >> The system is autodidactic in this sense. It learns and then applies, is that right? >> Yeah. So we do machine learning. Semi-supervised in a lot of cases. So where we've seen and issue and we can train the models. And then it will look out for those sort of issue across the entire install. >> John: I like the notion of wellness. >> Yup. >> Brings some of the people we relate to. We also heard terms like self-driving storage. >> Yup. >> Layoff testers. >> Yeah. >> But this is again, the trend that really is needed. Share other stories that you have because this is really where IT is going as it moves to a different kind of application and consumption model for you guys. >> Right so, well, kind of touching about what he was talking about, when you're as a storage guy, what's the number one thing that us storage guys have to do, is we have to prove that it's not the storage that's the problem. So usually, what happened was, in the old world, I would produce some statistics of, okay, and here's the IOPS that we're producing and here's the latency during this time. So based on this, it wasn't me, I don't know who it was. I'm just going to tell you it's not me. In the new world-- [John] That was the finger pointing world. >> Yes it was! >> The other guy got it. >> But with InfoSight, it's like hey, I can tell you but you're also welcome to go here as well. But let me show you VMM site where it's going to show you, not only what was happening at the storage. But let me take you all the way down to the host and then the VM and we're going to find this problem. And yeah, turns out sometimes it's going to be the VM that's all of a sudden taking whatever reason adding a huge amount of latency. And that, is something that, there's no more finger pointing in it anymore. All of a sudden, we're in the same team, it's like this kumbaya thing. >> That's awesome. It's good for the cohesiveness as a team. But also it's time savers too. When you reduce the steps to do things, you get your weekends back as you guys say before you came on camera. Tell the story about how you had to do all this work on the provisioning on the replication side, >> Sure. When we deployed the arrays, we decided it was business decision to go ahead and put the production arrays into our production data center and then we would do the DR at a later time. So I've got all of my data live, on production. And they say, okay, we're adding our Nimble storage at our DR site. Paul, how much replication bandwidth do we need? And so, same story. In the old world, you go and you pull your statistics from your replication technology, you put it in excel spreadsheet, you figure out, okay, here's my peaks and I just want to say, if we fall behind just a little bit, this is what we can do. And so usually what happens is, I say, guys, in my best guess, based on what I can see from my limited scope because my eyes are bleeding at this point. >> From the spreadsheet. You're in a spreadsheet right now. >> Paul: Yes, exactly. >> You're in spreadsheet hell. >> I'm in spreadsheet hell. And so what I do is, after about a weekend's worth of work, I put in this recommendation and I usually fluff it because I could be wrong in my statistics and so this is what I end up creating. >> You don't want to be under. You want to be over. >> Exactly, I'm always trying to do that. So the firm, I'm, hopefully this is, nobody's watching at the office, but sometimes they maybe overpaying for something because I just don't want to make that chance. In the new world, this is actually the coolest thing ever. So I'm on InfoSight and I go to this little dropdown, it's like the tool planner, okay, what's that? Where it's going to tell you what you need for bandwidth based on your actual real data. So then I'm pulling, like okay, based on this time, what is the replication if I want to do it every hour. And what if I want to do it every two hours? So then I just take that and I turn it into this report that I got to present to the executive team and they're like, oh my goodness, you have certainly stepped up. How many weekends did you use on this one? And you know, I'm not going to tell them it took me five minutes in InfoSight (John laughs) to be able to create this report. >> Now that they. >> But now they know. >> Cat's out, but you already got promoted. >> Oh that's true. >> Hey Rod, can you talk about the decision to acquire Nimble. What was the genesis. Obviously there's a portfolio component, tuck-ins, fill in some gaps. But there's this other sort of IP piece. Maybe take us back. >> Yeah, so certainly, there was the portfolio fit with the storage platform. So that was obviously a big part of it. I think the other obviously big part was InfoSight. So the idea that what we're doing there with our customers and approving the availability of the systems and the operational performance of the system and keeping a close eye on that to make sure it's optimized. So all that value prop around InfoSight was a big part of the decision I think. We are working on extending InfoSight into the HP product line. Starting with 3PAR so we are working already with that engineering team. To be able to bring some of these features out as quickly as we can into the 3PAR world as well. >> So what is that, from an engineering standpoint, is that sort of the requirement there is to point InfoSight at the data, the 3PAR data? >> Yeah exactly. So 3PAR does collect a lot of data already. >> Yeah sure do. >> So really, we're just pulling that data into our pipelines and so on within InfoSight and taking advantage of some of the machine learning and algorithms and so on that we already do. Things like DMVision, would be possible and so on in that environment as well if you're a 3PAR customer. >> It's interesting. Back in, maybe 10 years ago, 3PAR was sort of the gold standard of what we used to call the hero report. >> Rod: That's right, yup, yeah. People love that. >> Thin provisioning. What impact it was. >> Rod: Yup. How much you save, et cetera. And then that predated the whole big data analytics years right? >> Rod: Yeah, exactly. >> So when Nimble started, they could have started with that premise. Right around that time. >> Yeah, yup. >> I remember when I first saw it, I was like wow this is magic. >> Yeah exactly. That was the premise, was to really apply data science to all of that data that was coming in. Really transform the support experience for Nimble. And I think that's the other big element for HP as well. There's lots of that we do in our support organization that, to be honest, it's quite enviable, by a lot of storage and high tech vendors. >> You guys took a different approach. I think what's really notable for me, which I'm impressed with is, everyone talks about this but very few put into action, is making the user experience center, >> Rod: Yeah exactly. >> Of the value. I mean all of the things you talk about, the benefits, is really centered around your experience right. Saving you time, making your life easier, shifting the automation, that could be automated with the right things. And moving into higher value things. So Paul, what's your thoughts on this as it goes forward. This world is evolving. We're hearing the message here, simplifying, hybrid IT, you got cloud right on the doorstep, multiple clouds are going to be the endgame, we'll know all this, so all said and done. Whole new infrastructure is going to be out there. What's your view of how that user experience for the practitioners will evolve. What's your vision. How do you see it playing out. >> Rod: Be out of a job again. (Paul laughs) >> No, true story. The firm decided that they were going to bring us some people to help us look into what cloud we should, or how we should utilize the cloud because even from us, we're trying to keep ourselves agile as a law firm. Because if we can provide our services in a better, more meaningful and faster way, that gives us a competitive edge. So we brought in this team and they went over all of our IOPS and at the time it was under the different storage system so it took at least 20, 30 hours of my time to get all these numbers that they wanted. And then they created this report for us. Which I thought was really meaningful and valuable. The last line was, you should do cloud work, cloud makes sense. So that was it. Solid advice you know. Money well spent. (laughs) >> And that's what Meg's basically saying in the key note. The right mix of cloud versus on-prem. Certainly law firms have proprietary information and they want it secure. I guess my question really is, fundamentally is, a provocative one, I'd love to get your thoughts on. Serious question, you can laugh at at it a little bit but with AI bots coming, you can almost see these kinds of legal tasks being automated away. So, you might be, next promotion is taking over the firm. That's where big data can in. So how are you guys looking at that as a firm because I'm sure the lawyers are saying, hey you know what, I can shift my value to higher yield activities >> Paul: Exactly. >> Where that makes sense. You guys talk about that at all? >> We do. And I actually use the example of NASA. I really love NASA, I'm a huge fan. And NASA decide, they declared, we're going to go to Mars. We're going to do this. How are we going to do this? We have to let go of our operational stuff. We have to let go, I mean we can launch the shuttle all day long, we're comfortable with that. We can go into the space station, we're comfortable with that. But now, we've got to go new. And the way we have to do that is, we have to drop this stuff. Let's let other people do this. Let's let the InfoSight team start handling a lot of that work for me. And now, I'm asking my team, guys, I want you to start dreaming. Get out of the operational work. Start dreaming out loud. Let's figure out ways we can deliver value to our attorneys. >> Exactly. >> To free them. And let's let them just, again, take that same freedom, with the business intelligence and the machine learning, you're right that they're document management, which is their bread and butter, is their document production. Even that's getting scrutinized or transformed through this machine learning. And so, you could take this as a, as a way of saying no, there goes my job. Or you can say no, now I've got the opportunity to do something even better and cooler and really bring the value. >> And stretching. That's the whole stretch goal. Having that moonshot, in this case Mars. >> Paul: Mars right. >> It's the stretch and leverage right. >> Paul: Yes. >> That's the concept. How do you apply that to storage because now HP's got the composability, they got synergy. >> Paul: Yeah, yup. >> They have all kinds of. Now glue layer's kind of developing. We heard Antonio Neri in the press and analyst queue. We heard Meg Whitman talk about, you know, most her acquisitions have been in software, except for maybe one or two, over the past couple years, have been software. >> Paul: Yup. >> So, hardware, software kind of blending. >> Yeah. I think so, from the storage perspective certainly, I think that's happening. I think from the InfoSight perspective, where we see that going, is again, today when we put a lot of effort into our recommendation models. And that's an area that's very much in the deep data sciences realm. So when we come up with those recommendations, >> John: Umhmm. >> you know, we do things where we can prevent people from hitting issues and not just sort of happen automatically but some of these things are, something needs changing in their environment. So maybe, maybe there's a QoS policy that should be applied on the array to optimize performance because of some peak workload during Christmas, something of that nature. So that's still a last mile problem for us because you've got a human at the other end that's got to go in there and fix it and hopefully do it right and not ignore it and everything else. >> I can see the headline now, storage wellness coming to HP. >> Rod: Yeah exactly. >> But this is really interesting, comes with self-healing right. >> So that's where we want to go with that. That is really the thing we're working towards in the vision is, how do go and do that, change those QoS policies for the customer where we could inject, let's say, a change control within their change management system. They can go hit a button which we orchestrate that change for them. It's all documented and well controlled. >> It's not just storing the data, it's being data driven for the data being stored in the self crafting storage. >> Rod: Exactly, yeah, exactly. >> Rod, Paul thanks so much for sharing the stories and congratulations on the promotion. >> Thank you. >> And congratulations on InfoSight. You guys got great story there. >> But I never get promoted. (everyone laughs) >> Come in theCUBE, >> great story right. >> get promoted. >> Birds of a feather. >> Appreciate it. >> Thanks for having us. More live coverage here from theCUBE. Here at HP Discover 2017 after this short break. I'm John Furrier with Dave Vellante. We'll be right back. (lively music)

Published Date : Jun 7 2017

SUMMARY :

Brought to you by Hewlett Packard Enterprise. And our next two guest is Rod Bagg, VP of Analytics, about all the great stories Nimble obviously And by the end of it, it ran itself. This is the DevOps, this is the programmable Rod, this is big deal. So that they can focus on the business aspect. And you automate those tasks what the product is and what you guys are doing. And so we collect somewhere in the order of, And then use that as predictive to prescribe So our real goal there is that if we know of an issue, and preventing other customers from hitting that issue. The system is autodidactic in this sense. across the entire install. Brings some of the people we relate to. Share other stories that you have because this is really and here's the latency during this time. I can tell you but you're also welcome to go here as well. Tell the story about how you In the old world, you go and you pull your statistics From the spreadsheet. and so this is what I end up creating. You don't want to be under. So the firm, the decision to acquire Nimble. So the idea that what we're doing there with our customers So 3PAR does collect a lot of data already. and so on that we already do. of what we used to call the hero report. Rod: That's right, yup, yeah. What impact it was. How much you save, et cetera. So when Nimble started, I was like wow this is magic. There's lots of that we do in our support organization that, is making the user experience center, I mean all of the things you talk about, the benefits, Rod: Be out of a job again. and at the time it was under the different storage system because I'm sure the lawyers are saying, hey you know what, You guys talk about that at all? And the way we have to do that is, and really bring the value. That's the whole stretch goal. because now HP's got the composability, they got synergy. We heard Antonio Neri in the press and analyst queue. in the deep data sciences realm. on the array to optimize performance because I can see the headline now, storage wellness But this is really interesting, That is really the thing we're working towards for the data being stored in the self crafting storage. and congratulations on the promotion. And congratulations on InfoSight. But I never get promoted. Here at HP Discover 2017 after this short break.

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Rod Smith - IBM Spark Summit 2015 - theCUBE


 

from galvanized San Francisco extraction signal from the noise it's the kue cover the apache spark community event brought you IBM now your host John free George okay welcome back everyone we are live in San Francisco for this special q presentation with the IBM sparkman the event here live at galvanized in San Francisco workspace incubator great place for developer education IBM's big announcement today their commitment to spark they didn't see any numbers but I'm counting in the hundreds of millions of years to quote Papa Chiana on my call with him on Friday with rod $17 fuck yeah holler last for hundreds of millions yeah hundred millions of dollars getting late in the day going to be your coming rod Smith's our next guest rod welcome to the cube thank you very much with a catalyst behind spark at IBM worked hard on it yeah you guys tell a story what's the story well we worked on big data and I have a group of folks that go out and work with customers all the time and what we were doing Hadoop we would do these cool applications that sometimes you know small clusters 20 minutes you get a result and a customer would say can you do that in a couple seconds kind of look around and go what changed it means it did the business problem and they couldn't tell us but it's one of those data points in your head that go something's not quite right you know what's what's changing or what are they trying to tell me that they can't and that's when we started learning you know customers were looking for technology that they could iterate on quickly you know open-ended questions it wasn't the give me a problem do the game pew pew output I'm done this was oh gee there's the journey I now see some interesting insights I have other questions was it was something not right the data that they got didn't match their hypothesis or was it the expectation that if I can do it fast on google and find a Thai restaurant down the block well so I can it went that way something doesn't right what was with me that said why can't you tell me what you're really trying to accomplish what I learned is that as we go through these kind of digital transfer mation real real time they were thinking about how their business is going to change so fast and so the problems always been for technologists and vendors like IBM tell us the problem we pick out the technology and you're pretty well stuck with it it stays that way and they wanted more flexibility open-ended questions lots of different data sources on demand when they had to have it on this they wanted to see results along the way and they would rather have analytics be approximation that they could use quickly rather than after the fact and more accurate okay so you know when you went through that it wasn't they couldn't find a bi person to talk bad about and I couldn't find a data person so you know it was fun to try to put piece puzzles together and that's where spark came into this so I see a lot of other trends are kind of vectoring into that convergence which is in-memory databases you know the community flash for persistence store on the storage side so this you as a close to all that action what was the aha moment for for within IBM is han hey you know what this spark thing is the next Linux me we got to get out in front of this and help the community go faster and then kind of rising tide floats elbows what was that flash point flow we we had two of them one was that in our commerce group there's ways that they work on online pricing and there's a vendor stander which takes about a week when you get data off of a site or retail site they analyze that they correct the analytics they put it back up again takes about a week but we showed them a spark we could do it in about four hours a week down to four hours and now they started to think oh you know what do we offer customers now we have ways to have not just one product many products let's bring in other data location data traffic data weather data social data so that kind of exploded internally on this is a big change this is something that we can relate to cus of multiple data source of the need for unification and speed and and speed speed first because be first that's a heck all the speed i want to bring other data sets and it's time to value i mean if you're going to be a digital business and look at real time where it's going Netflix others have really set the standard on ok so then i'm a so let's take a next level so rod you're crazy we can't do that it would disrupt all these other businesses we have so how does that conversation happen within IBM the way that happens in IBM is rod you are crazy and you're going to cause me odds it up so please go away and I don't go away easily but you keep pushing on this and part of my job is to work with customers can I show value so I can take the product team saying you need to take this more seriously I've got currency now and then as you just said the marketplace starts to light up spark is on the front page as people are talking about how they're using it well Hadoop is growing too at the same time so it loop does it seeds the market seats the Mars you see you're playing ahead do but if you see the customer challenges and you're like you guys just connect the dots and and then it's back to the customer is talking about what their problems they want to use or the solutions are looking for so yeah it takes time because it's it's risky meaning that all of us have quarterly is what we're doing but how do we now make it safer for people in IBM jump in the water so that eventually they don't hate me so what's your what's your comment when a friend says hey rod you know linux was great but it's a different era oh you know here with cloud and mobile open source with the patch he's evolved to the point where it's very manageable for vendors to be contributed as well with with non company contributors how do you guys see the difference between those two worlds because really this is a Linux moment but there's no big bad main many many computer companies name frames out there but their specialized for like the Z systems are great but like this is scale out commodity hardware a dupe now that's growing how do you how do you describe that because there is a Linux correlation what linux was for open source then operating systems now this is kind of distributed analytics I think you're you're you know the the part of this is kind of real-time digital business transformations and while there is not a you know bad company out there you know amazon and others have shown how they can be online businesses and use analytics and be very effective but i'm a brick and mortar company and an online business how do i do the same thing and spark starts to really show that no they don't have a corner on the market we can compete so that's the big factor on this is well it's not one company doing this it's I need to be able to compete at the speed the businesses that didn't have to see that Amazon started kind of post recession or you know Dom bubble bursting you know web services was just kind of kicking through if we remember our history lessons and what happened was they really had no traction they built some building blocks right they made a good decision to integrate to core building blocks compute and storage and they built from there so in a way you guys can enable companies to have their own amazon like extensive experience because it's a fresh clean cute paper right it is and I think we're spark it's interesting is like you said in two verticals what do i do to retail what do I do in health care what are we doing finance right very specialized I we've shown in Watson you can do Watson for cancer research you can do Watson for cooking right but they're very vertical now so specialized domain expertise becomes really interesting right that's the big part and that's the part I really liked about spark they were the community really thought about solution developers you know they stayed away kind of middle ground I you don't have to be a deep dated person or a deep analytics API person what's the problem you want to solve how can I help you do that I think that's a you know that's interesting is that that's because most people go Jay this is speeds and feeds software we look at the solutions more holistic but then you're really talk about customer problems right the so-called outcomes that go on well that's what and I think that's the part that I've enjoyed is I want to talk to you you know about what your problem is I don't want to talk technology I you know I don't want to have to make a technology choice from stay one spark helps me with that I don't notify programming while all those things come together so I can concentrate we can concentrate on talking to the customer but you know learn from them what are you trying to accomplish so you watch the next things on your list good I just gonna say you know looking at your LinkedIn page i love this at BP emerging technologies for 20 some odd years so you see here you've seen a lot of technology's come a lot of emerging technologies and the acceleration of these technologies is only going more right you have a whole lot more in your portfolio you have to look at today then then you did yesterday or five years ago yeah why is sparks a special in the cornucopia of technologies that you've seen coming over the years it's a good question and and as I've done merging technologies I've learned that I have to you know listen to customers very carefully on it and when I hear those kind of repeatable business patterns do I see an economic change a transformation that really sticks with me and sometimes the old things have start really big you know they start out good and then they fade away but I always look for technologies that seem to have lots of dimensions to them from a business value standpoint that's what attracted me to spark and my team working with some customers on pocs we could do them quickly you know I really like to get to the point where you know we an industry we with notebooks and others we can do solutions in less than four hours for a customer what better thing to take your you know employee to lunch and spat them on the back for you know something that you didn't expect for weeks well one of the exciting things that you guys have done is you shine the spotlight on spark and you opened up the conversation globally around IBM is making a big move spark was a little bit of an outlier and the mainstream press I mean the press we're picking up spark oh yeah berkeley some credibility of great people behind it but now it's like wow it's going to get the attention of CX cxos out there and they're going to be like hmm if ibm's looking at it must be relevant because of the history you guys have with innovation but they're going to ask you the question I'm going to ask you which is it's not baked out yet where are we with this what are you guys going to do how does IBM work with the community to continue to bake out spark because a lot of people are using it bringing it in but it's evolving super fast and that's going to be the question is it baked and how does it get baked faster so I think there is lots of areas that if we just talked about if I'm doing retail or health care or fine it's going to be lots of specialized analytics because that's what spark for me is is enabling custom analytics on this second part is as you think about how you want to look at bigger problems I think that many times are learning is to try to you know once we got a technology lets make everything fit it rather than starting to separate it by business problems and I think we can do that now or we can bring to the table technology learning best practices around this and solutions I think you know at the end of the day it's house part can be integrated into a business solution and our customers very quickly and hopefully those customers see it broadly from interoperability standpoint of what they're going to do so the final question I have for you is what was the biggest learning that you've taken away from this process that was magnified through this whole journey of a taking IBM from being a participant in the as a citizen in the community early on as a founding member of spark this is back in two thousand nine so it wasn't like no one knew he was going on and you know we bird cover on Hadoop from the beginning so we'd love to watch these ecosystems grow but from from the early days to now today mmm what was the biggest thing that you learned that was magnified out of all the reactions all the feedback all the customers what can you share I I think for me when we did a spark hack you know our hackathon piece when 28,000 IBM ER showed up with ideas that told us twenty eight thousand 28,000 so now you stopped and 28,000 people who were focused on the customer so they had a thought of how this could be relevant this is great I mean this isn't like back talking for this isn't one little vein with a little stream it's big and it big was what we can do for our customer when was that um about two months ago how did you pull that off just out an email blast all the IBM's put on the message board to a crowd chat what did you do well when you put out an email blast the second one is you put on a webcam to explain to people what you're going to do with it what you'd like them to do and I'll we're setting it up and and then you step back and you know kind of cross your fingers hope people show up and then when you know you invite ten thousand and twenty eight thousand show up you kind of know that we're turning a corner as a company on understanding how we can use that for this this also highlights this whole connectedness apps internet of things and people are things to so their mobile device when you have that kind of people close to the action the creativity is there right there on the front lines and they don't feel like that the work they do is going to be taken by the machinery in the old days I got to go back all these hurdles I gotta jump now they could instantly be there with some solutions so that's that's super compelling the next question is security and how does how do you see that leaving in because now one of the things that came up will first meeting let me back up but I get this you think about security question for a second last week ahead dupe summit we were talking with the Hadoop ecosystem Hortonworks ODP conversations etc but when you looked at kind of like reading the tea leaves it was sparked that was kind of stealing the show the subtext was smart all the spark sessions were packed the developers had was salivating over sparks like to hear that I did why why is that why are the Hadoop developers salivating over spark is it because they wanted to go faster do they see extensions any thoughts I think that I've say it two ways one is I think there was and since I did who do for quite a while I think people thought for a while Hadoop was going to be an analytics platform and it it kind of went down the path of being immoral generalized platform so you can do more than MapReduce jobs so there's been this pent-up demand for really analytics focus and spark offered that focus and the performance side I think that's the parts in Hadoop sold kind of a false dream or it didn't materialize fast but I don't think of material out of false treaty I'm saying if they promise them around yeah it well and people set those you know well the fresh maybe yeah I don't think the vendors all I think was more than well vendors you know it did to unstructured data does that unstructured data does that storing data and I didn't be able to act on it creates some interesting dynamics I mean I've worked with customers who you know started to put data in Hadoop but to have put data dupe you know we're only going to do a year's worth of data and then putting three years of data because they want to do monte pucker up my Carlo simulations against a Monty Python it's time you threw water on us and we love yours we on the cube but the problem says we're talking about before like you know our internal use we can produce you know interesting innovations in days that's going to attract audiences because now they can show their you know business people what they can do for them that's what's really driving this I mean if you gotta see XO you know CMO says you know show me what you can do you know do segmentation on my population for these products they want it in in minutes not so you know going to run it in different jobs and the over a certain period of time I was just talking with the CEOs of docusign box 18 1018 Syrian kinky was executive director and then EVP a platform that Salesforce the common thread amongst those executives was the new digital transformation has such a dynamic or impactful economic impact yes I mean dr. Sanyal using examples how literally Deutsche Telekom saved 230 million dollars on one process yes one process yes with analytics and yeah process improvements extreme it sounds funny but it's extremely low hanging fruit they haven't had technology and the economics and be able support it now we do and now you're seeing the solution developer go I think I can make a business result faster yeah and if they can show it then businesses react and I think that's the beautiful thing about what Hadoop is done I mean I brought that up earlier trying to tease that out with reality we're seeing is that that mark is continuing to grow but there's a world beyond Hadoop yep I mean Hortonworks this public company I mean IBM is massive so you got Hadoop and then sparks a beautiful extension to that that enables so much more well I think spark will go further because it's more to me is another dimension it's an integration technology so i can have sparked up to legacy systems without hadoop you know in there doing analytics in there being an avenue for doing joins on data doing analytics on unstructured and transactional data whether data pulling it all together and I think that's the again talking about multi-dimensional that's what that was hard even five years ago so any relational database that's a nightmare yeah and you're asked about security so you want to touch on yeah okay go ahead so part of the things that I like about spark is the technology is called resilient distributed data sets r dds so I read data from a source and I make it into this r DD I can work on it that gives me a great data point or a great interaction with a Cassandra datastax did a really great job of a spark driver so you think about this in businesses for a db2 or something now I know where I can put my security and my governance I can put those at certain endpoints now as i'm reading in my application writing these things out so again back to my point of an integration it's not something that i'm trying to get around a business i'm at integrating extending their life and/or capabilities that's right so I got to ask you the internal IBM question my last question is it what's the vibe like at IBM because you know I've been you know I worked at IBM way back in the day back in the 80s and the cultures changed right so much mm-hmm but there's still a huge technical group of people at IBM so I got to ask you the question with all this new cloud innovation all this new capabilities to do stuff differently what's it like for all the technical guys at IBM right now because they got to be like Hayden we can now do this we can so new capabilities are emerging what's the what's the vibe like and what are some of the things that that are low-hanging fruit that are that our game change because low-hanging fruit is game-changing today oh yes I what's the vibe eternally at idea I've internally is very hot I mean the guys and gals at this you look at cloud computing look we've done with bluemix it got is getting you know great recent press it's getting great results with customers back to this time to value piece it's new to us I mean there's only a small group that started that so now the rest of the IBM arts are going this is really cool how do we do it now you've got analytics that you know we're starting you've been you know competencies are on this now you can take the real-time aspect so yeah the five is really all those little silos you know identity system here I got to build all the software now you can gotta go horizontal yeah so you know that's kind of a new thing that's kind of exciting it's gonna be fun to watch my final question I guess is my final final question is have you been keeping track this is the sixth and final time analytics well rods great to have you on the cube you're awesome great great commentary great great insight spark in the cloud is what data bricks announce what about an on-premise i'm a customer i want i want on prem I don't necessarily want to do what's next I 40 s or other stuff oh I think you're going to see you know like hybrid models for cloud where spark as a service is there on prem i think one of the really exciting parts to me is that one the unified program model to the portability of the analytic models so let's say I start on prom because I'm worried about security and other things and then I want to move it to a cloud service well I don't have to go rewrite it I can just move the analytics over from a model standpoint so I think you're going to see this evolved very fast as people want to do either on prem or hybrid or you know dedicated cuz of the integration capabilities and the distributed nature of it that's the point yep awesome well I'll let you get the last word on the segment share what the folks who's not or aren't watching what is this all about today why is in San Francisco today IBM's announcement what's so groundbreaking about it I know you're part of it a little bit biased but share the folks why what why now what's this all about what's what's what's going on here well we think that the kind of epicenter for spark innovation is here in San Francisco amp lab with data bricks and others are doing here and we want to be a part of that and I think spark technology senator setting up is about how we can contribute and learn and you know help the community grow we think this is gonna you brought some food to the party I mean you are I said earlier beer right you bring a you know the ml yeah you got them back other wine napa valley of course you got to go to wine well craft beers good north north bay thanks so much for coming on the cube really appreciate the insight because it is a great color from an expert IBM here we're on the ground this is the cube special presentation live in San Ruby back with more with live coverage of the breakouts in the event tonight IBM spark community event here in san fran at the galvanized workspace education center we write back

Published Date : Jun 16 2015

SUMMARY :

the question I'm going to ask you which

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Nick Ward, Rolls-Royce & Scott Camarotti, IFS | IFS Unleashed 2022


 

>>Hey everyone. Welcome back to Miami, Miami Beach. Specifically, not a bad location to have a conference. Lisa Martin here with the Cube live at IFS Unleashed. We're gonna be having a great conversation next about Ization moments of Service Rules. Royces here, as is the C of IFS for aerospace and defense. Scott Camani. Nick Ward joins us as well, the VP of Digital Systems at Roll Royce. Guys, excited to have you on the program and welcome back. >>Thank you very much. Nice to be back. It's >>Been three years since the last IFS show. I love How's Scott? I was talking with Darren Roots earlier today and I said, Well, didn't it used to be IFS world? And he said, Yes. And I said, I love the name. I would love to, to unpack that with your cheek marketing officer because it, there's a lot of, of, of power behind Unleash. A lot of companies do such and such world or accelerate, but we're talking about unleashing the power of the technology to help customers deliver those moments of service. Yes. Love it. So Scott, start us off here. Talk about ization. That's a relatively new term to me. Sure. Help me understand what it means, because IFS is a pioneer in this sense. >>We are. So one of the things that IFS is always trying to do is to try to find a way to help our customers to realize a moment of service. And that moment of service is really when they found the ability to delight their customers. And when we look at the way in which we're trying to drive those business outcomes for our customers, ization seems to be at the core of it. So whether it's the ability for a company to use a product, a service, or an outcome, they're driving ization in a way where they're shaping their business. They're orchestrating their customers and their people and their assets behind a val value chain that helps them to provide a delightful experience for their customers. And with IFS being focused on Lifecycle asset management, we no longer have customers that have to choose from best of suite or best of breed. They can actually have both with ifs. And that's something we're really excited to provide to our customers and more excited for our customers to realize that value with their customers, their partners. Along the way. >>You, you mentioned customer delight and it's a term that we, we all use it, right? But there's so much power and, and capabilities and metrics behind that phrase, customer delight, which will unpack Nick bringing you into the conversation. Talk to us a little bit about what your role is at Rolls Royce. My first thought when I saw you was, oh, the fancy cars, but we're talking about aerospace and the fence, so give us a little bit of a history. >>Okay. So yes, we don't make cars is the first point. So we are, we are power, we do power as a service. So we are most well known, I guess for large aircraft airliners. You know, if you've, if you've flown here to Miami, there's probably a 50 50 chance you've flown on a Rod Roy powered aircraft. Our market segment is what we call wide bodied aircraft where you go on, there's two aisles. So the larger section of the market, and we, we provide power, so we provide the engines, but more importantly, we've been a ization company, a service company for at least two decades. We, we have a, a service relationship we call total care. And the whole idea of total care is, yes, I have my engine, it's on my aircraft, but I take care of it. I make sure it's available to fly when you need to fly it. And all of the things that have to come together to make that happen, it's a service company. >>Service company. Talk to me a little bit about, and I wanna get got your perspective as well, but the relationship that Roll Royce and IFS have this is a little bit unique. >>Well, I can start, but I I think Nick's gonna be better served to tell us about that as our customer. Nick and I actually started this journey about four years ago, and what we did was, is we were working closely with our perspective customer Rolls-Royce identified what they were looking for as a desired business outcome. And then we found a way through the technology and the software that we provide to all of our enterprise customers globally to find a solution that actually helped to provide a, an outcome not only to Rolls-Royce, but also to our collective downstream customers, commercial operators around the globe. So that's where we started the journey and we're continuing our discussions around other solutions, but that's how we started and it's been an incredible partnership. We're so happy and proud to have Nick as a customer and a advocate of all things ifs and I'll let him kind of continue from his point of view how he sees the partnership in the relationship. >>No, thank you Scott. I think we've, we've always, we've valued the kind of relationship that we have because I think IFS has always got Rolls Royce in terms of strategic direction. What do we try to do? I said, we're a service company. You know, we, we are, we have to have a service relationship with our, our customers, our airlines. To have a service relationship, you have to be able to connect to your service customer. And ifs is a big part of how we connect for data. That's how do we understand what the airline is doing with the engines, but it's also how we return data back into the airline. So we are, we're get a very close integrated relation between us, our airlines, through a bridge that, that ifs create through the maintenance product. Got it. So it works really well. >>I I think I'd make one other point. One of the things that we've always focused on is quantifiable business value. The only way a partnership like this could possibly work is if we have a desired business outcome, but if we're providing value, So the value work that we did in conjunction with Rolls Royce and really identifying that helped to support the business case that allowed this partnership to really begin and flourish. So I I, I'd be remiss if I didn't mention that business value element that's really core to everything we do and all the, the conversations that Nick and I have. >>Well, it's all about outcomes. Absolutely. It's all about outcomes. It >>Is, it has to be about, it's about moments of service, right? That's why we're here, right? So perhaps a moment of service for Robs Royce is every time you're a passenger, you're going through the terminal. You expect your aircraft to be there, ready, waiting for you to get on and depart on time. And our moment of service is every aircraft takes off on time, every time we live. When we die by the quality of that statement, how well we live up to that statement, I think I checked this morning, there's something alike, 600 aircraft in the sky right now with Rolls Royce power carrying passengers. All of those passengers have relied on that moment. Service happening regularly like clockwork. Every single time you don't get any forgiveness for a delay, you get very little forgiveness for a cancellation that has to happen. And then so many things have to come together for that to happen. >>Those 600 aircraft, that's maybe 200,000 people right now in the sky, Wow. Those 200,000 people are trying to connect, They're trying to connect with friends, they're trying to connect with loved ones, family, colleagues, whatever the purpose is of that trip. It's really important to them. And we just have to make sure that that happens for us. We've had something like a million flights so far this year, 300 million people relying on that moment of so is happening. So I really resonate with, with the language that Scott users about the importance of sort of that focal point on when does it all come together? It comes together when as a passenger, I get on the plane and it goes and I get no issues. >>Right. Well people don't tolerate fragmented experiences anymore. No, no. I think one of the things that was in short supply during the pandemic was patience and tolerance. Sure. Not sure how much of that's gonna come back, right? But those integrated connected experiences, as you described so eloquently, Nick, those are table stakes for the customers, but also the brands behind them because of customers are unhappy, the churn rates go way up. And you see that reflected in obviously the success of the business and what you guys are doing together is seems to be quite powerful. Now then when you were on the cube with us three years ago in Boston at IFS back then you first introduced the intelligent engine and the Blue Data thread. Let's talk about the intelligent engine. Just give our audience a refresher of what that actually entails. >>So perhaps if we just step one one step back for that, just to understand how this fits in. So Roro is a service organization. We talked about that. What that means is we take a lot of the, the risk and the uncertainty away from our airline customers on the availability, the costs and maintenance effort associated with having a, having a chat engine. These are incredibly complicated and complex and sophisticated pieces of equipment. The most expensive, most sophisticated pieces of an aircraft. Managing that is, is difficult. And every airline does not want to have to focus on that. They wanna focus on being able to get the passenger on the air after, fly it, look after the airframe. So our role in that is to take that risk away, is to manage those engines, look after their health, look after their life, make sure they're available to fly whenever they need to fly. >>So for us to understand that, we then have to have data, we have to understand the state of every engine, where it is, the health of the engine, the life of that engine, what do we need to do next to that engine? And we can't do that unless we have data and that data flows into a digital platform. The intelligent engine, which is our cloud based ai, big data, all of the iot, all of the big buzzwords are there, right? So the data flows into that, that lets us run the models. It lets us understand, I can see something maybe it's a, it's a small issue, but if I leave it alone, it become a bigger issue. And maybe that will cause disruption further down the line. So we need to understand that we need to preempt it. So preemptive predictive maintenance is a, is a big part of the intelligent engine, but it's more than just that. >>It's also, we can understand how that engine is being flown. We can understand is it having a really intense flight? Is it having a more benign, gentle flight? Wow. That change time after the flight, typically after the flight. But what that means is we can then understand, actually we can keep that engine on the wing longer then you might otherwise have to do, If you have no data, you have to be conservative, safety rules, everything. Sure. So data allows you to say, actually I'm being overly conservative in this space. I can get more flying bios, flying hours from my product by extending the interval between maintenance and the intelligent engine has a large part to play in us justifying that we're able to do that. And then the final part that it does is eventually the engine is gonna have to come off from maintenance. >>These things fly 5 million miles between overhauls. You imagine you try to do that in your family car. It's, it doesn't happen. It's incredibly sophisticated thing can fly 5 million miles and then we take it off for a major overhaul. But there are thousands of these engines in the fleet. We have to understand which engine is going to come off when for what reason, and prepare our maintenance network to then receive the engine and deal with it and get it back to the customer. So the intelligent engine has a massive part to play in understanding the maintenance demand that the flying fleet is then creating. >>Wow, that's fascinating. And so you talked about that three years ago. What's next for that? I imagine there's only more evolution that's gonna happen. >>It keeps growing. It keeps growing. It's driven by the data. The more data we have, the more that we can do with that. I think as well that, you know, one of the big places that we've we've gone is you can do as much predictive analytics as you, like, there's a lot of people we'll talk about doing predictive analytics, but if you don't do the hard yards of turning predictive analytics into outcome Yeah. Then what did you get? You, you got a bit of smart advice. So we, we take that maintenance demand, we then have to understand how that drives the orchestration and the management of all the parts, the people, the work scope definition, the allocating an engine into a maintenance slot, exactly when it's gonna go. And what are we gonna do to, how do we control and manage our inventory to make sure that engine is gonna go through. >>How do we then actually execute the work inside our, our our overall shops? How do we get that engine back and and integrate our logistics process. So the intelligent engine is, if you like, the shiny front end of a process, it's all the buzzwords, but actually the hard yards behind the scene is just as if not more important to get right. And again, this is why I really like the moment of service concept. Because without that, the moment of service doesn't happen. The engine's not there, the part wasn't there. The field service maintenance guy wasn't there to go fix it. >>And brands are affected >>An, an aircraft on the ground earns no revenue for anybody. No. It's, it's a cost. It's it's a big sink of cost. It >>Is, it is. Absolutely. >>And you're helping aircraft only earn engines only earn when they fly. Yeah, >>Yeah. Absolutely. And what a fascinating, the intelligent engine. Scott, talk a little bit about, we talking about power, we can't not talk about sustainability. Yes, I understand that IFS has a new inaugural awards program that Rolls Roys was a recipient of the Change for Good sustainability awards. Congratulations. Thank you very much. And to Scott, talk to me a little bit about the Change for Good program sustainability program. What types of organizations across the industries of expertise are you looking for and why does Rules ROY really highlight what a winner embodies? >>So since Darren has joined IFS as the ceo, he's had a lot of intentional areas that we focused on. And sustainability has been one that's at the top of the list. IFS has a US ambassador Lewis Pew, who's our Chief Sustainability officer, and he helps us to provide worldwide coverage of the efforts around sustainability. So it's not just about ifss ability to become a more sustainable organization, but it's the solutions that IFS is putting together in the five verticals that we focus on that can help those organizations achieve a level of sustainability for their, for their downstream customers, their partners, and for their enterprises themselves. So when we look at, you know, the social ability for us to be more conscientious about leaving the world a better place or trying to do our best to leave the world not as bad as we came into it, sustainability is a real focus for us. And, you know, the way in which we can support an organization like Rolls Royce and Nickel obviously share those areas of focus from Rolls Royce. It's a perfect fit. And congratulations again for the award. Thank you. We're, we're, we're so excited to, to have shared that with you. We have some other customers that have achieved it across different categories, but it's an area of current and continuous focus for ifs. >>Nick, talk to us, take us out here as our last question is the, the focus on sustainability at Rolls Royce. Talk to us a little bit about that and what some of the major efforts are that you've got underway. >>I think, you know, very similar as, as, as Scott taught there, the focus within Rolls Royce as a strategic group level is really high aviation particularly, I mean we're a, we're an engineering company. We're a power company. Power inherently consumes natural resources. It tends to generate climate affecting outcomes. But at the same time, we are an innovative organization and if anybody's gonna help solve climate challenges, it's gonna be organizations like Rolls Royce who are able to bring different technologies into the market. So we have a responsibility to manage and, and optimize the behavior of our, our existing product suite. But we also have a, a vested interest in trying to move aviation on into the next, the next phase. We talk about sustainable aviation. Aviation has to earn the right to exist. People have choices. We've come out of covid, people are used to doing zoom and not flying. >>People are used to doing things when they don't necessarily get on an aircraft and do something. The aviation business always has to earn the right from the public to exist. And increasingly people will make choices about how they fly when they fly, how far they fly based on the sustainability footprint. So it's really important to us to help both our customers operate the aircraft in as sustainable and climate friendly way as we can. It's really important to find those, those balance points between the cost of an operation and it's the impact of an operation. If you go all over and say, I am going to be net, well, not even net to, but zero carbon by almost inference, that means I'm not gonna operate. You have to operate to get to an outcome. But how do I do that? Why I manage my cost, I manage the, the profitability, the organization doing it, right? >>So it has to be financially sustainable, it has to be sustainable for the people operating within it. It has to be sustainable for the planet, right? So we do that in lots of different ways in small places and, and in big places. So small things we do is we help the operator understand if you change your flight profile, you'll generate fewer emissions. You may avoid controls if you flying a different way, maybe you create trails, you'll lose, you'll lose less fuel while you're doing that. So it's cost effective for you. There was always a balance point there between the wear and tear on the engine versus the, the, the environmental impact. And you find that optimum place. One of the first things we started doing with, with Scott is we have a, a way that we life our engine components. And one of the very simple outcomes of that is using that data, the blue data for connection to the customer. >>If we can see, effectively see inside the engine about how well it's wearing and we can extend those maintenance intervals as we talked about, what that eventually does is it reduces the need to take the engine off, ship it around the world. Probably on a great big 7, 4 7 or maybe year or two ago on an Anson off four big engines flying a long distance trek, shipping our engine to an overhaul facility. We're avoiding something like 200 of those shop visit overhauls a year. So every year that's 200 flights there and back again, which don't happen, right? Collectively that's around about 15,000 automobile equivalent emissions just don't happen. So simple things we can do just starts to have accumulative effect, >>Right? Simple things that you're doing that, that have a huge impact. We could talk for so much longer on stability, I'm sure we're out of time, but I can see why Roll Royce was, was the winner of the Inocular award. Congratulations. Well deserved. Well >>Deserved. I well >>Deserved. So interesting to hear about the intelligent engine. So you're gonna have to come back. Hopefully we'll be here next year and we can hear more of the evolution. Cuz I have a feeling there's never a dual moment in what you're doing. >>It's never a dull moment. There's never an end point. >>No. >>Okay, >>Going Scott, Nick, thank you so much for joining me on the program today. Thank you, Lisa. It's great to have you talk through what's going on at ifx and the partnership with Rolls Royce. We >>Appreciate, and again, Nick, Nick, thank you for your continued support in the partnership. >>I thank you, Scott. We appreciate it. Likewise, thank >>You. Kudos all around. All right, for my guests, I'm Lisa Martin, you're watching a Cube live from Miami. We're at IFS unleashed. We'll be back shortly after a break with our next guests. So stick around.

Published Date : Oct 11 2022

SUMMARY :

Guys, excited to have you on the program and welcome back. Nice to be back. And I said, I love the name. So one of the things that IFS is always trying to do is to try to find a way to Talk to us a little bit about what your And all of the things that have to come together to make that happen, Talk to me a little bit about, and I wanna get got your perspective as well, And then we found a way through the technology and the software So we are, we're get a very close integrated relation between us, element that's really core to everything we do and all the, the conversations that Nick and I have. It's all about outcomes. And then so many things have to come together for that to happen. And we just have to make sure that that happens for us. And you see that reflected in obviously the success of the business and what you guys are doing together is seems So our role in that is to take that risk away, is to manage those engines, So for us to understand that, we then have to have data, part that it does is eventually the engine is gonna have to come off from maintenance. So the intelligent engine has a massive part to play in understanding the And so you talked about that three years ago. the more that we can do with that. So the intelligent engine is, if you like, the shiny front end of a process, it's all An, an aircraft on the ground earns no revenue for anybody. Is, it is. And you're helping aircraft only earn engines only earn when they fly. And to Scott, talk to me a little bit about the Change for So it's not just about ifss ability to become a more Talk to us a little bit about that and what some of the major efforts are that you've got underway. But at the same time, we are an innovative So it's really important to us to help both One of the first things we started doing with, with Scott is we have a, So simple things we can do just starts to Simple things that you're doing that, that have a huge impact. I well So interesting to hear about the intelligent engine. It's never a dull moment. It's great to have you talk through what's I thank you, Scott. So stick around.

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Raj Rajkotia, LootMogul | Monaco Crypto Summit 2022


 

>>Hello, welcome back to the cubes coverage of Monaco, crypto summit presented by digital bits. It's a conference where a lot of the people using digital bits and the industry coming together around the future of crypto in the applicates got a great guest garage, rod cot, founder, and CEO of an innovative company. Love this co I love this company, Luke mogul, Rob, thanks for coming on the queue. Appreciate it. Oh, >>Thank you for having >>Us. Yeah. So I checked out what you guys are doing. You've got the sports metaverse angle going on with super valuable, cuz sports is super entertaining. Uh, people are engaged. There's huge fan base, huge online now, digital convergence going on with the physical, you know, you see all kinds of sports betting going on now everything's going digital. There's a whole nother consumer experience going on with sports and the game is still the same on the, on the field or so to, or the court. That's correct. Yeah. Now it's going to digital take a minute to explain what you guys are working on. >>Yeah, so yes, we are building out a sports ERs where we are bringing athletes, whether they're NBA stars, NFL stars, w N B a many of those athletes into meows giving them the ownership of the entire, um, meows commerce along with gameplay. So that's something from our perspective, this, uh, this is something that we're focused on. We're building out stadiums. Athletes can own stadiums. Athlete can create their own training centers, media hubs. Um, and imagine Lisa, Leslie for example, is building out a woman leadership sports academy, right? We have Michael Cooper building out defensive academy. So those are all the brands. We have 174 NBA w N B stars. And, um, and we are building out this, >>The brand is the brand, is the platform that's correct. That's the trend we're seeing. And it's, it's also an extension of their reach in community. So there's, they can convert their star power and athlete with owner's approval. If they probably write it on to the contracts, he, they can imagine all the complications, but they bring that online and extend that energy and brand equity yep. To fans and social network. Yeah. >>And many of these athletes are tremendous successful in their web two careers, right? Yeah. Um, some are current athletes, some are former athletes, but they have built such a brand persona where people are following them on Instagram. For example, Carlos Boozer. He has like almost 6 million followers between Twitter and Instagram and those kind of brands are looking or how do I give back to the community? How do I engage with my community and web three? And especially with our platform, we are giving that power back to the players. >>So you guys got some big names booers on there. You mentioned Carlos Boozer. You mentioned that Lisa, Leslie others among others, Michael Cooper throw back to the old Lakers, uh, magic. Johnson's kind actually here in crypto. We just saw him in the lobbies and in dinner and the other night, um, at Nobu, um, you got a lot of NBA support. Take a take, take, even explain how you're working this angle. Uh, you got some great traction, uh, momentum. Um, you got great pedigree, riot games in your career. Uh, you kind of get the world, the tech world, the media world, as it comes together. What's the secret sauce here? Is it the NBA relationship combination of the team explained >>It's really focusing on what, uh, we are building on me was focusing on players first, right? So players are literally, we call our platform as, uh, owned by the players, made for the players. Uh, and engagement is really all done through the players, right? So that's our key sauce. And when we worked out with NBA, we, we are part of the NBA BPA acceleration program for 2022 that is funded by a six Z, uh, and, and many others. Um, and our partnership with league is very critical. So it's not only partnered with player association partnered with leagues, whether it's NBA, w N B a NFL. So those are the venues. And this becomes almost a program, especially for athletes to really generate this lifetime engagement and royalty model because some of this famous athletes really want to give back to the communities. So like for example, I use Lisa Leslie a lot, but Lisa, Leslie really wants to empower women leadership, leadership, and really help, um, women in sports, for example. Right? So those are the angles that, um, that really people are excited about. >>Well, for the people watching that might not understand some of the ins and outs of sports and, and rod, your background in your team, it's interesting. The sports teams have been on the big day to train for many, many years. You look at all the stadiums. Now they've got mobile devices, they got wifi under the chairs. They use data and technology to manage the team. Mm-hmm, <affirmative> manage the stadium and venue and operations suppliers, whatnot. And then also the fans. So you, they, they got about a decade or so experience already in the digital world. This is not new to the, to the sports world. Yeah. So you guys come to the table kind of at a good time. >>Yeah. Especially the defi of the sports, right? So there's a defi of the finance, but this is the really, uh, a, a decentralization of the sports is something that there's a lot of traction. And there are many companies that are really focusing on that. Our focus obviously is players first, right? How do we give power to the players? Uh, and those are really driving the entire engagement. And also the brands >>How's the NBA feel about this because, you know, you got the NBA and you get the team, you got the owners. I mean, the democratization of the players, which I love by the way that angle kind of brings their power. Now's the new kind of balance of power. How is the NBA handling this? What's some of the conversations you've had with the, the organization. >>Yeah. So obviously there are a lot of things that, uh, people have to be careful about, right? They have existing contracts, existing, digital media rights. Um, so that's something that, uh, we have to be very tactful when we are working with NBA and NPA, uh, on what we can say, we cannot say. So that is obviously they have a lot of existing multimillion or billion dollar contracts that they cannot void with the web because the evolution of web three, >>You know, I love, uh, riffing on the notion of contract compliance when there's major structural change happening. Remember back in baseball, back in the days before the internet, the franchise rights was geographic territory. Mm-hmm <affirmative> well, if you're the New York Yankees, you're doing great. If you're Milwaukee, you're not doing too good, but then comes the internet. That's good. That's no geography. There's no boundaries. That's good. So you're gonna have stadiums have virtual Bo. So again, how do they keep up with the contracts? Yeah. I mean, this is gonna be a fundamental issue. >>That's >>Good. Good. And I think if they don't move, the players are gonna fill that void. >>That's correct. Yeah. And especially with this, this an IL deal, right. That happened for the players, uh, especially college athletes. So we are in process of onboarding 1.5 million college athletes. Uh, and those athletes are looking for not only paying for the tuition for the colleges, but also for engagement and generating this early on, uh, >>More okay. Rod, we're gonna make a prediction here in the cube, 20, 20 we're in Monaco, all the NBA, NHL, the teams they're gonna be run by player Dows. Yeah. What do you think? A very good prediction. Yeah. Very good prediction. Yeah. I mean you, I mean, that's a joke, I'm joking aside. I mean, it's kind of connecting the dots, but you know, whether that happens or not, what this means is if this continues to go down this road, that's correct. Get the players collectively could come together. Yeah. And flip the script. >>Yeah. And that's the entire decentralization, right. So it's like the web three has really disrupted this industry as you know. Um, and, and I know your community knows that too. >>Of course, course we do. We love it. >>Something from sports perspective, we are very excited. >>Well, I love it. Love talking. Let's get to the, to the weeds here on the product, under the hood, tell about the roadmap, obviously NFTs are involved. That's kind of sexy right now. I get the digital asset model on there. Uh, but there's a lot more under the coverage. You gotta have a platform, you gotta have the big data and then ultimately align into connecting other systems together. How do you view the tech roadmap and the product roadmap? What's your vision? >>Yeah. So the, the one thing that you had to be T full, uh, as a company, whether it's LUT, mogul or any other startup, is you have to be really part of the ecosystem. So the reason why we are here at Monaco is that we obviously are looking at partnership with digital bits, um, and those kind of partnership, whether it's fourth centric, centric are very critical for the ecosystem in the community to grow. Um, and that's one thing you cannot build a, another, uh, isolated metaverse right? So that's one thing. Many companies have done it, but obviously not. >>It's a wall garden doesn't work. >>Exactly. So you have to be more open platform. So one things that we did early on in our platform, we have open APIs and SDKs where not only you as an athlete can bring in your, uh, other eCommerce or web, uh, NFTs or anything you want, but you can also bring in other real estate properties. So when we are building out this metaverse, you start with real estate, then you build out obviously stadiums and arenas and academies training academies, but then athletes can bring their, uh, web commerce, right. Where it's NFT wearables shoe line. So >>Not an ecosystem on top of Luke Mo. So you're like, I'm almost like you think about a platform as a service and a cloud computing paradigm. Yeah. Look different, not decentralized, but similarly enabling others, do the heavy lifting on their behalf. Yeah. Is that right? >>So that's correct. Yes. So we are calling ourself as the sports platform as a service, right. So we want to add the word sports because we, uh, in, in many contexts, right. When you're building metaverse, you can get distracted with them, especially we are in Los Angeles. Right. >>Can I get a luxury box for the cube and some of the metaverse islands and the stadiums you're doing? >>We, we are working >>On it. We're >>Definitely working on, especially the, uh, Los Angeles, uh, stadium. Yeah. >>Well, we're looking for some hosts, anyone out there looking for some hosts, uh, for the metaverse bring your avatar. You can host the cube, bro. Thanks for coming on the cube. Really appreciate. What's the, what's next for you guys, obviously, continuing to build momentum. You got your playful, how many people on the team what's going on, give a plug for the company. What are you looking for share with the audience, some of the, some of your goals. Yeah. >>So, uh, the main thing we're looking for is really, um, from a brand perspective, if you are looking at buying properties, this would be an amazing time to buy virtual sports stadium. Um, so we are, obviously we have 175 stadiums in roadmap right now. We started with Los Angeles. Then we are in San Francisco, New York, Qatar, Dubai. So all those sports stadiums, whether they're basketball, football, soccer are all the properties. And, uh, from a community perspective, if you want to get an early access, we are all about giving back to the community. Uh, so you can buy it at a much better presale price right now. Uh, so that's one, the second thing is that if you have any innovative ideas or a player that you want to integrate into, we have an very open platform from a community engagement perspective. If you have something unique from a land sale perspective yeah. Or the NFD perspective plug, contact us at, at Raj lumo.com. >>And I'm assuming virtual team, you in LA area where where's your home. >>So, yeah, so I live in Malibu, um, and our office is in Santa Monica. We have an office in India. Uh, we have few developers also in Europe. So, uh, and then we are team of 34 people right now >>Looking to hire some folks >>We are looking for, what >>Are you, what are you looking for? >>So, uh, we are looking for a passionate sports, uh, fanatics. >>It's a lot, not hard to find. Yeah. >><laugh> who knows how to also code. Right? So from blockchain perspective, we are, uh, chain agnostic. Uh, but obviously right now we are building on polygon, but we are chain agnostic. So if you have any blockchain development experience, uh, that's something we, we are looking for. Yeah. >>RA, thanks for coming out. Luke Mo check him out. I'm John furry with the cube here in Monaco for the mono crypto summit presented by digital bits. We got all the action, a lot of great guests going on, stay with us for more coverage. Um, John furrier, thanks for watching.

Published Date : Jul 30 2022

SUMMARY :

It's a conference where a lot of the people using digital bits and the industry coming together around the future of crypto in the applicates Now it's going to digital take a minute to explain what you guys are working on. So that's something from our perspective, this, uh, this is something that we're focused on. The brand is the brand, is the platform that's correct. we are giving that power back to the players. So you guys got some big names booers on there. So players are literally, we call our platform as, uh, So you guys come to the And also the brands How's the NBA feel about this because, you know, you got the NBA and you get the team, you got the owners. Um, so that's something that, uh, we have to be very tactful when we are So again, how do they keep up with the contracts? So we are in process of onboarding 1.5 million college athletes. I mean, it's kind of connecting the dots, but you know, whether that happens or not, what this means is if So it's like the web three has really Of course, course we do. I get the digital asset model on there. So the reason why we are So you have to be more open platform. do the heavy lifting on their behalf. So we want to add the word sports because we, uh, in, in many contexts, On it. Yeah. You can host the cube, bro. Uh, so that's one, the second thing is that if you have any innovative ideas or a player that you want to integrate into, So, uh, and then we are team of It's a lot, not hard to find. So if you have any blockchain development experience, uh, that's something we, We got all the action, a lot of great guests going on, stay with us for more coverage.

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Rob Harris, Stardog | Cube Conversation, March 2021


 

>>hello. >>Welcome to the special key conversation. I'm John ferry, host of the queue here in Palo Alto, California, featuring star dog is a great hot start-up. We've got a great guest, Rob Harris, vice president of solutions consulting for star dog here talking about some of the cloud growth, um, knowledge graphs, the role of data. Obviously there's a huge sea change. You're seeing real value coming out of this COVID as companies coming out of the pandemic, new opportunities, new use cases, new expectations, highly accelerated shift happening, and we're here to break it down. Rob, thanks for joining us on the cube conversation. Great to be here. So got, I'm excited to talk to you guys about your company and specifically the value proposition I've been talking for almost since 2007 around graph databases with Neo four J came out and looking at how data would be part of a real part of the developer mindset. Um, early on, and this more of the development. Now it's mainstream, you're seeing value being created in graph structures. Okay. Not just relational. This has been, uh, very well verified. You guys are in this business. So this is a really hot area, a lot of value being created. It's cool. And it's relevant. So tell us first, what is star dog doing? What's uh, what is the company about? >>Yeah, so I mean, we are an enterprise knowledge graph platform company. We help people be successful at standing up knowledge graphs of the data that they have both inside their company and using public data and tying that all together in order to be able to leverage that connected data and really turn it into knowledge through context and understand it. >>So how did this all come about this from a tech standpoint? What is the, what is the, uh, what was the motivation around this? Because, um, obviously the unstructured wave hit, you're seeing successes like data bricks, for instance, just absolutely crushing it on, on their valuation and their relevance. You seeing the same kind of wave hit almost kind of born back on the Hadoop days with unstructured data. Is that a big part of it? Is it just evolution? What's the big driver here? >>Yeah, no, I think it's a, it's a great question. The driver early is as these data sets have increased for so many companies trying to really bring some understanding to it as they roll it out in their organizations, you know, we've tried to just try to centralize it and that hasn't been sufficient in order to be able to unlock the value of most organization status. So being able to step beyond just, you know, pulling everything together into one place, but really putting that context and meaning around it that the graph can do. So that's where we've really got started at, uh, back in the day is we really looked at the inference and reasoning part of a knowledge graph. How do we bring more context and understanding that doesn't naturally exist within the data? And that really is how we launched off the product. >>I got to ask you around the use cases because one of the things that's really relevant right now is you're seeing a lot of front end development around agile application. Dev ops is brought infrastructure as code. You're seeing kind of this huge tsunami of new of applications, but one of the things that people are talking about in some of the developer circles and it's kind of hits the enterprise is this notion of state because you can have an application calling data, but if the data is not addressable and then keeping state and in real time and all these kinds of new, new technical problems, how do you guys look at that? When you look at trying to create knowledge graphs, because maintaining that level of connection, you need data, a ton of it it's gotta be exposed and addressable and then deal dealt with in real time. How do you guys look at it? >>Yeah, that's, that's a great question. What we've done to try to kind of move the ball forward on this is move past, trying to centralize that data into a knowledge graph that is separate from the rest of your data assets, but really build a data virtualization layer, which we have integrated into our product to look at the data where it is in the applications and the unstructured documents and the structure repositories, so that we can observe as state changes in that data and answer questions that are relevant at the time. And we don't have to worry about some sort of synchronous process, you know, loading information into the graph. So that ability to add that virtualization layer, uh, to the graph really enables you to get more of a real time, look at your data as it evolves. >>Yeah. I definitely want to double, double click on that and say, but I want to just drop step back and kind of set the table for the folks that aren't, um, getting in the weeds yet on this. There's kind of a specific definition of enterprise knowledge graph. Could you like just quickly define that? What is the enterprise knowledge graph? Sure. >>Yeah, we, we really see an enterprise knowledge graph as a connected set of data with context. So it's not just storing it like a graph, but connect again and putting meaning around that data through structure, through definitions, et cetera, across the entire enterprise. So looking at not just data within a single application or within a single silo, but broadly through your enterprise, what does your data mean? How is it connected and what does it look like within context each other? >>How should companies reuse their data? >>Boy, that's a broad question, right? Uh, you know, I mean, one of the things, uh, that I think is very important as so many companies have just collected data assets over the years, they collect more and more and more. We have customers that have eight petabytes of data within their data Lake. And they're trying to figure out how to leverage it by actually connecting and putting that context around the data. You can get a lot more meaning out of that old data or the stale data or the unknown data that the people are getting right today. So the ability to reuse the data assets with in context of meeting is where we see people really be able to make huge licks for in their organization like drug companies be able to get drugs to market faster. By looking at older studies, they've done where maybe the meeting was hidden because it was an old system. Nobody knew what the particular codes and meaning were in context of today. So being able to reuse and bring that forward brings real life application to people solving business problems today. >>Rob, I got to get your thoughts on something that we always riff on here on the cube, which is, um, you know, do you take down the data silos or do you leverage them? And you know, this came up a lot, many years ago when we first started discussing containers, for instance, and then that we saw that you didn't have to kill the old to bring in the new, um, there's one mindset of, you know, break the silos down, go horizontal scalability on the data, critical data, plane control, plane, other saying, Hey, you know what, just put it, you know, put a wrapper around those, those silos and you know, I'm oversimplifying, but you get the idea. So how should someone who's really struggling with, or, or not struggling, we're putting together an architecture around their future plans around dealing with data and data silos specifically, because certainly as new data comes in there's mechanism for that. But as you have existing data silos, what do companies do? What's the strategy in your opinion? >>Yeah, you know, it is a really interesting question. I was in data warehouse and for a long, long time and a big proponent of moving everything to one place. And, uh, then I really moved into looking into data virtualization and realized that neither of those solutions are complete, that there are some things that have to be centralized and moved the old systems aren't sufficient in order to be able to answer questions or process them. But there are many data silos that we've created within organizations that can be reused. You can leverage the compute, you can leverage the storage that already exist within us. And that's the approach we've taken at start off. We really want to be able to allow you to centralize the data that makes sense, right. To get it out of those old systems, that should be shut down from just a monetary perspective, but the systems that are have actual meeting or that it's too expensive in order to, to remove them, leverage those data silos. And by letting you have both approaches in the same platform, we hope to make this not an either or architectural decision, which is always the difficult question. >>Okay. So you got me on that one. So let me just say that. I want to leverage my data silos. What do I do? Take me through the playbook. What if I got the data silos? What is the star dog recommendation for me? >>Sure. So what, what we generally recommend is you start off with building kind of a model, uh, in the, in the lingo, we sometimes say ontology Euro, some sort of semantic understanding that puts context around what is my data and what does it mean? And then we allow you to map those data silos. We have a series of connectors in our product that whether it's an application and you're connecting through a rest connector, or whether it's a database and you're connecting through ODBC or JDBC map that data into the platform. And then when you issue queries to the startup platform, we federate those queries out to the downstream systems and answer as if that data existed on the graph. So that way we're leveraging the silos where they are without you having to move the data physically into the platform. So you guys are essentially building a >>Data fabric. >>We are, yeah. Data fabric is really the new term. That's been popping up more and more with our customers when they come to us to say, how can we kind of get past the traditional ways of doing data integration and unified data in a single place? Like you said, we don't think the answer is purely all about moving it all to one big Lake. We don't think the answer is all about just creating this virtualization plane, but really being able to leverage the festival. >>All right. So, so if you, if you believe that, then let's just go to the next level then. So if you believe that they can, don't have to move things around and to have one specific thing, how does a customer deal with their challenge of hybrid cloud and soon to be multi-cloud because that's certainly on the horizon. People want choice. There's going to be architectural. I mean, certainly a cloud operations will be in play, but this on-premise and this cloud, and then soon to be multiple cloud. How do you guys deal with that? That question? >>Yeah, that's a great question. And this is really a, an area that we're very excited about and we've been investing very heavily in is how to have multiple instances of StarTalk running in different clouds or on prem on the clown, coordinate to answer questions, to minimize data movement between the platforms. So we have the ability to run either an agent on prem. For example, if you're running the platform in the cloud or vice versa, you can run it in the cloud. You are two full instances that start off where they will actually cope plan queries to understand where does the data live? Where is it resident and how do I minimize moving data around in order to answer the question? So we really are trying to create that unified data fabric across on-prem or multiple cloud providers, so that any of the nodes in the platform can answer question from any of the datas >>S you know, complexity is always the issue. People cost go up. When you have complexity, you guys are trying to tame it. This is a huge conversation. You bring up multi-cloud and hybrid cloud. And multi-cloud when you think about the IOT edge, and you don't want to move data around, this is what everyone's saying, why move it? Why move data? It's expensive to move data processes where it is, and you kind of have this kind of flexibility. So this idea of unification is a huge concept. Is that enough? And how should customers think about the unification? Because if you can get there, it almost, it is the kind of the Holy grail you're talking about here. So, so this is kind of the prospect of, of having kind of an ideal architecture of unification. So take us, take me through that one step deeper. >>Well, it is, it is kind of interesting because as you really think about unifying your data and really bringing it together, of course it is the Holy grail. And that's what people have been talking about. Um, gosh, since I started in the industry over 20 years ago, how do I get this single plain view of my data, regardless of whether it's physically located or, uh, somehow stitched together, but what are the things that, you know, our founders really strongly believed on when they started the company? Was it isn't enough. It isn't sufficient. There is more value in your data that you don't even know. And unlocking that through either machine learning, which is, of course, we all know it's very hot right now to look at how do I derive new insights out of the data that I already have, or even through logical reasoning, right? And inference looking at, what do I understand about how that data is put together and how it's created in order to create more connections within the data and answer more questions. All those are ways to grow beyond just unifying your data, but actually getting more insights out of it. And I think that is the real Holy grail that people are looking for, not just bringing all the data together, but actually being able to get business value and insights out of that data. Yeah. >>Looking for it. You guys have obviously a pretty strong roster of clients that represent that. Um, but I got to ask you, since you brought up the founders, uh, the company, obviously having a founders' DNA, uh, mindset, um, tends to change the culture or drive the culture of the covenant change with age drives the culture of the company. What is the founder's culture inside star, dog? What is the vibe there, if you could, um, what do they talk about the most when you, when they get in that mode of being founders like, Hey, you know, this is the North star, what is, what's the rap like? What's the vibe share? It takes that, take us through some star star, dog culture. >>Sure. So our three founders came out of the rusty of Maryland, all in a PhD program around semantic reasoning and logical understanding and being able to understand data and be able to communicate that as easily as possible is really the core and the fiber of their being. And that's what we see continually under discussion every single day. How can we push the limits to take this technology and your gift easier to use more available, bring more insights to the customers beyond what we've seen in the past. And I find that really exciting to be able to constantly have conversations about how do we push the envelope? How do we look beyond even what Gartner says is five or eight years in the future, but looking even further ahead. So there >>They're into they're into this whole data scene. Then big time they are >>That they are very active in the conferences and posts and you know, all that great. >>They love this agility. They got to love dev ops. I mean, if you're into this knowledge graph scene, so I gotta, I gotta ask you, what's the machine learning angle here, obviously, AI, we know what AI is. AI is essentially combination of many things, machine learning and other computer science and data access. Um, what is the secret sauce behind the machine learning and, and the vibe and the product of, of, uh, >>Yeah, a lot of times w we, the way that we leverage machine learning or the way that we look at it is how do we create those connections between data? So you have multiple different systems and you're trying to bring all that data together. Yeah. It's not always easy to tell, is this rod Harris the same as that rod Harris is this product the same as that product. So when possible we will leverage keys or we'll leverage very, uh, you know, systematic type of understanding of these things are the same, but sometimes you need to reach beyond that. And that's where we leverage a lot of machine learning within the platform, looking at things like linear regression or other approaches around the graph, you know, connectivity, analysis, page rank, things like that to say, where are things the same so that we can build that connections in that connectivity as automatically as possible. >>You don't get a lot of talks on the cube. Also. Now that's new news, new clubhouse app, where people are talking about misinformation, obviously we're in the media business. We love the digital network effect. Everything's networks, the network economy. You starting to see this power of information and value. You guys carved the knowledge graph. So I gotta, I gotta ask you, when you look at this kind of future where you have this, um, complexity and the network effect, um, how are you guys looking at that data access? Because if you don't have the data, you're not going to have that insight, right? So you need to have that, that network connection. Is that a limitation or for companies? Is that an, um, cause usually people aren't necessarily their blind spot is their data or their lack of their data. So having things network together is going to be more of the norm in the future. How do you guys see that playing out? Yeah, >>I think you're exactly right. And I think that as you look beyond where we are today, and a lot of times we focus today on the data that a company already has, what do I know? Right. What do I know about you? What, how do I interact with you? How have I interacted with you? I think that as we look at the future, we're going to talk more about data sharing, but leveraging publicly available information about being able to take these insights and leverage them, not just within the walls of my own organization, but being able to share them and, uh, work together with other organizations to bring up a better understanding of you as a person or as a consumer that we could all interact with. Yeah, you're absolutely right. You know, Metcons law still holds true that, you know, more network connections bring more value. I certainly see that growing in the future, probably more around, you know, more data sharing and more openness about leveraging publicly available. >>You know, it's interesting. You mentioned you came from a data warehouse background. I remember when I broken the businessmen 30 years ago, when I started getting computer science, you know, it was, it was, there was, there was pain having a product and an enabling platform. You guys seem to have this enabling platform where there's no one use case. I mean, you, you have an unlimited use case landscape. Um, you could do anything with what you guys have. It's not so much, I mean, there's, low-hanging fruit. So I got to ask you, if you have that, uh, enabling platform, you're creating value for customers. What are some of the areas you see developing, like now in terms of low-hanging fruit and where's the possibilities? How do you guys see that? I'm sure you've probably got a tsunami of activity around corner cases from media to every vertical we do. And that's, you know, >>The exciting part of this job. Uh, part of the exciting part of knowledge press in general is to see all the different ways that they are allowed to use. But we do see some use cases repeated over and over again. Uh, risk management is a very common one. How do I look at all the people and the assets with an organization, the interactions they have to look at hotspots for risk, uh, that I need to correct within my organization for the pre-commercial pharma, that has been a very, very hot area for us recently. How do we look at all the that's available with an organization that's publicly available in order to accelerate drug development in this post COVID world, that's become more and more relevant, uh, for organizations to be able to move forward faster and the kind of bio industry and my sciences. Um, that's a use case that we've seen repeated over and over again. And then this growing idea of the data fabric, the data fabric, looking at metadata within the organization to improve data integration processes, to really reduce the need for moving data without or around the organization as much. Those are the use cases we've seen repeated over and over again over the last >>Awesome Rob. My last question before we wrap up is for the solution architect that's out there that has, you know, got a real tall order. They have to put together a scalable organization, people process and technology around a data architecture. That's going to be part of, um, the next gen, the next gen next level activity. And they need headroom for IOT edge and industrial edge, uh, and all use cases. Um, what's your advice to them as they have to look out at and start thinking about architecture? >>Yeah, that's, it's a great question. Uh, I really think that it's important to keep your options open as the technology in the space continues to evolve, right? It's easy to get locked into a single vendor or a single mindset. Um, I've been an architect most of my career, and that's usually a lot of the pitfalls. Things like a knowledge graph are open and flexible. They adhere to standards, which then means you're not locked into a single vendor and you're allowed to leverage this type of technology to grow beyond originally envisioned. So thinking about how you can take advantage of these modern techniques to look at things and not just keep repeating what you've done in the past, the sins of the past have, uh, you know, a lot of times do reappear. So fighting against that as much as possible as gritty is my encouragement. >>Awesome, great insight. And I love this. I love this area. I know you guys got a great trend. You're riding on a very cool, very relevant final minute. Just take a quick minute to give a plug for the company. What's the business model. How do I deploy this? How do I get the software? How do you charge for it? If I'm going to buy this solution or engage with star DOE what do I do? Take me through that. Sure. >>Yeah. We, uh, we are like, uh, you've sat through this whole thing. We are enterprise knowledge graph platform company. So we really help you get started with your business, uh, uh, leveraging and using a knowledge graph fricking organization. We have the ability to deploy on prem. We have on the cloud, we're in the AWS marketplace today. So you can take a look at our software today, who generally are subscription-based based on the size of the install. And we are happy to talk to you any time, just drop by our website, reach out we'll we'll get doctors. >>Rob. Great. Thanks for coming. I really appreciate it. That gradients said, looking forward to seeing you in person, when we get back to real life, hopefully the vaccines are coming on. Thanks to, uh, companies like you guys providing awesome analytics and intelligence for these drug companies and pharma companies. Now you have a few of them in your, on your client roster. So congratulations, looking forward to following up great, great area. Cool and relevant data architecture is changing. Some of it's broken. Some it's being fixed started off as one of the hot startups scaling up beautifully in this new era of cloud computing meets applications and data. So I'm John. Forget the cube. This is a cube conversation from Palo Alto, California. Thanks for watching.

Published Date : Mar 3 2021

SUMMARY :

I'm excited to talk to you guys about your company and specifically the value proposition I've been talking to leverage that connected data and really turn it into knowledge through context and understand it. You seeing the same kind of wave hit almost kind of born back on the Hadoop days So being able to step beyond just, you know, pulling everything together into one place, I got to ask you around the use cases because one of the things that's really relevant right now is you're seeing a lot of front end development And we don't have to worry about some sort of synchronous process, you know, loading information into the graph. What is the enterprise knowledge graph? So it's not just storing it like a graph, but connect again and putting meaning around that So the ability to reuse the data assets with in context of meeting is and then that we saw that you didn't have to kill the old to bring in the new, um, there's one mindset of, And by letting you have both approaches in the same platform, What is the star dog recommendation And then we allow you to map those data silos. Data fabric is really the new term. So if you believe that they can, clouds or on prem on the clown, coordinate to answer questions, to minimize data movement It's expensive to move data processes where it is, and you kind of have this but what are the things that, you know, our founders really strongly believed on when they started the company? Hey, you know, this is the North star, what is, what's the rap like? And I find that really exciting to be able to constantly have conversations about how do we push the They're into they're into this whole data scene. That they are very active in the conferences and posts and you know, They got to love dev ops. So you have multiple different systems and you're trying to bring all that data So you need to have that, that network connection. And I think that as you look beyond where we are today, What are some of the areas you see developing, Uh, part of the exciting part of knowledge press in general is to see all you know, got a real tall order. the sins of the past have, uh, you know, a lot of times do reappear. I know you guys got a great trend. So we really help you get started with your business, uh, That gradients said, looking forward to seeing you in person,

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Judy Estrin, JLabs | Mayfield People First Network


 

>> Over and welcome to this special cube conversation here in the Palo Alto Studios of Cube. Part of our People. First project with Mayfield Fund and Co creation with Cuban John Very your host. Very special guest. Judy Estrin. She's the CEO of J Labs and author of the book Closing the Innovation Gap. She's also well known for being an Internet entrepreneur. Pioneer worked on the initial TCP IP protocol with Vin Cerf from When the A Stanford Great History Computer Science. You have computer systems in your blood, and now you're mentoring a lot of companies. Author you a lot of work, and you're lending your voice to some cutting edge issues here in Silicon Valley and around the world. Thanks for joining me today for the conversation. >> Thank you. It's fun to be here, >> So I love the fact that you're here. You're a celebrity in the commute computer industry circles. You were there at the beginning, when the computer systems or the Internet were being connected as they built out of stone of the whole system's revolution in the eighties, and the rest is history. Now we have cloud computing, and now we're seeing a whole nother level step function of scale. And so you've kind of seen it all. You've seen all all the waves. Actually, something like make is they have seen some of the ways, but you've seen all of them. The most compelling thing I think that's happening now is the convergence of social science and computer science. Kind of our motto. Silicon Angle. You recently wrote to Post on Medium that that has been kind of trending and going viral. I want to get your perspective on that. And they're They're interesting because they they bring a little bit of computer science called the authoritative Authority Terrian Technology Reclaiming Control far too attention, part one. We go into great detail to lay out some big picture computer industry discussions. What's it all about? What's what's the What's the idea behind these stories? >> So let me back up a little bit in that, a Sze Yu said. And we can go into this if you want. I was very involved in a lot of thie, ah, innovation that happened in the Village Valley in terms of microprocessors, the Internet, networking, everything that laid the foundation for a lot of the things we see today incredible opportunities for my career for problems we solved over the last ten years. Ten, twelve years. Um, I began to see a shift and a shift in the culture and a shift in the way technology was impacting us. And it's not all good or bad. It's that it felt like we were out of balance and that we were becoming shorter and shorter, term focused and actually my book in two thousand eight closing the innovation gap. The main message there is let's not forget about the seeds you plant that all of this comes from because we're reaping the benefit of those seeds. We're not planning new seats and that we were becoming in the Valley in the nation the way we thought about things more and more short term focused and technology was causing some of that and benefitting and not been and at a disadvantage because of that. So that started with my book in two thousand eight and then in twenty fourteen, I think it was I did a Ted talk a Ted X talk called Balancing our Digital Diets, and I was even Mohr concerned that we were out of whack in terms of the consequences of innovation, and I drew an analogy to our food's systems, where so much innovation and creating cheap calories and energy and things like high fructose corn syrup that it took years to realize that, Oh, there's some negative consequences of that innovation. And so that was kind of a warning that, um, we weren't thinking enough about the consequences of at that point. Social media. That was before fake news, and I talked about tweets and how truth that lies went faster than truth, not knowing how bad that situation was going to be and then leading up to the election and after the election. We all know and have all learned now about the impacts of these technologies on our democracy, and I believe on our society and humanity. And I don't think it's just about our election system. I think it's about our psyches and how the technology's air impacting the way we think our fear and anxiety level of our kids and us is adults. So I been talking to people about it and advising, and I finally decided as, uh, I was collaborating with people that I felt that a lot of the awareness was in pockets that we talked about data privacy or we talked about addiction. But these air things were all interrelated, and so I wanted to one ad. My voices is technologists because I think a lot of the people who are writing the building, the awareness and talking about it if you are in government or a journalist's or even a social scientist people, it's really easy to say, Yeah, you say that, but you don't understand. It's more complicated than that. You don't understand the technology. So one, I do understand that technology. So I felt adding my voice as a technologist. But I'm also, uh, just increasingly concerned about what we do about it and that we take a more holistic view. So that's what, what what the pieces are about. And the reason I broke it into two pieces is because they're too long for most people, even the way they are. But the first is to build awareness of the problems which we can dig into it a high level if you want. And then the second is to throw out ideas as we move towards discussing solutions. So let me take a breath because you were goingto jump in, and then I can. >> No, it's just because you're connecting the foundational of technology foundation technology, identifying impact, looking at pockets of awareness and then looking at how it's all kind of coming together when you talk like that The first time I saw O subsystem interrupt us connection so someone could get like a operating system. And I think the society that you're pointing out in the article, the first one intention was there only to relate. And I think that's the key part. I think that's interesting because we run into people all the time when we do our cue broadcasts that have awareness here and don't know what's going on this. So this context that's highly cohesive. But there's no connection, right? So the decoupled right but highly cohesive, That's kind of systems. Architecture concept. So how do we create a robust technology's society system where technology and I think that's a threat that we're seeing this? What I cleaned out of the articles was your kind of raising the flag a little bit to the notion of big picture right system, kind of a foundational, but let's look at consequences and inter relationships, and how can we kind of orchestrate and figure out solutions? So what was the reaction to expand on that concept? Because this is where I was. It was provocative to me, >> right? So I think there are two thought trains that I just went down. One is that one of the problems we have that has been created by technology and technology is suffering from again. It's causing both cause and effect is not enough seats, system thinking and so one issue, which is not just this is not just about social media and not just about a I, but over the last twenty years we've increasingly trained, I think, are, Ah, engineers and computer scientists in Mohr transactional thinking. And as we move quicker and quicker to solve problems, we are not training our leaders or training our technologist to think in terms of systems. And so what I mean by systems is two things that you can break, that any problems have pieces. But those pieces air inter connected. We are interconnected, and that you, if you don't keep those things in mind, then you will not design things in a way, I believe that have the longevity and make the right type decisions. The second is the law of consequences when you have a system, if you do something here, it's going to impact something here. And so that whole notion of taking was thinking through consequences. I'm afraid that we're training people as we are focusing on being more and more agile, moving more and more quickly that it's in technology and in society that we're losing some of that system, thinking >> that they kind of think that's the trade off is always around. Whenever he had systems conversations in the past, but my old systems had on trade offs, we have overhead, so we have more memory. How do we handle things? So this is kind of That's just what happens. You tell about consequence, but >> we don't have all those we I'm older than you. But we started at a time when that we were limited. We were limited by memory. We were limited by processing. We were limited by band with and a different times. As thie industry emerged, the constraints were in different areas. Today, you don't have any of those constraints. And so, if you don't have any of those constraints. You don't get trained in thinking about trade offs and thinking about consequences. So when when we come into just what drove me to write, this one set of things are foundational issues and what I mean by foundational it's it's our relationship to technology. And the fact of the matter is, as a society, um, we put technology on a pedestal, and we have, uh, this is not to be taken out of Cut is not to be taken the extreme of talking about people, but overall, our relationship with technology is a bullying, controlling relationship. That's why I called it authoritarianism. >> Upgrade your iPhone to the new version. >> Well, whether it's as a user that you're giving up your your your authority to all these notifications and to your addiction, whether it is the fact that it is the control with the data, whether it is predictive ai ai algorithms that are reading your unconscious behaviors and telling you what you think, because if it's suggesting what you by putting things in front of you. So there are all of these behaviors that our relationship with technology is not a balanced relationship and you could one. You have a culture where the companies that are that have that power are driving towards. It's a culture of moving fast growth only don't think about the consequences. It's not just the unintended consequences, but it's the consequences of intended use. So the business models and at which we don't need to go into, because I think a lot of other people talk about that all end up with a situation which is unhealthy for us as people and humanity and for us as a society. So you take that part and it is. There's a parallel here, and we should learn from what happened with industrial Ah, the industrial revolution. We want progress. But if we don't pay attention to the harm, the harmful byproducts and trade offs of progress, it's why we have issues with climate. It's why we have plastic in our oceans. It's because you, you judge everything by progresses just growth and industrialization without thinking about well being or the consequences. Well, I believe we now face a similar challenge of digitization, so it's not industrialization. But it's digitalization that has byproducts in a whole number of areas. And so what the the article does is get into those specifics, whether it's data or anxiety, how we think our cognitive abilities, our ability to solve problems, All of those things are byproducts of progress. And so we should debate um, where we what we're willing to give up one last thing. And then I'll have to come in, which is one of the problems with both of these is is humans value convenience. We get addicted to convenience, and if somebody gives us something that is going to make things more convenient, it sure is held to go backward. And that's one of the reasons the combination of measuring our goodness as a country or a CZ. Globalization by economic growth and measuring our personal wellness by convenience, if something is more convenient, were happier. Take those two together, and it makes a dangerous cop combination because then our need for community convenience gets manipulated for continued economic growth. And it doesn't necessarily end up in, Ah, progress from, ah, well being perspective. >> It's interesting point about the digitization, because the digital industrial revolution, when the digital revolution is happening, has consequences. We're seeing them and you point them out in your post Facebook and fake news. There's also the global landscape is the political overlay. There's societal impact. There's not enough scholars that I've been trained in the art of understanding into relationships of technology, and Peg used to be a nerd thing. And now my kids are growing up. Digital natives. Technology is mainstreams, and there it is. Politics. You know, the first hack collection, Some of the control, The first president actually trolled his way. That president, I said that I'm the kid. That was my position. He actually was a successful troll and got everyone he trolled the media and you got the attention. These air new dynamics, This is reality. So is you look forward and bring these ideas, and I want to get your thoughts on ideas on how to bring people together. You've been on a CTO Cisco Systems. I know you've been sleeping on a board. This is a cross pollination opportunity. Bring people together to think about this. How do you do You look at that? How do you view how to take the next steps as a as an industry, as a society and as a global nations? It eventually, because cyber security privacy is becoming polarized. Also on a geography bases in China they have. GPR is hard core there. In Europe, he got Asia. With Chinese. You got America being American. It's kind of complicated as a system architecture thinking. How do you look at this? What is the playing field where the guard rails? What's your thoughts on this? Because it's a hard one, >> right? So it is a hard one and it isn't. It isn't easy to pave out a path that says it's solvable. Um, nor does Climate right now. But you have to believe we're going to figure it out because we have to figure it out. So I think there are a lot of pieces that we need to start with, and then we need to adjust along the way. And, um, one piece is and let me back up. I am not. I don't believe we can leave this up to the industry to solve the incentives and the value systems and the understanding of the issues. The industry is coming from an industry perspective, and you can't also. You also can't leave it just two technologists because technologists have a technology person perspective. I don't believe that you just can have government solve it for a variety of reasons. One is, if it takes a spectrum of things to legislation, tends to be retroactive, not forward looking. And you need to be really careful not to come up with regulation that actually reinforces the status quo as opposed to making something better. But I think we need to. We do need to figure out how to govern in a way that includes all of these things. So once >> it's running, it's clear that watching the Facebook hearing and watching soon dark sky in front of the house. Our current elected officials actually don't even know how the Internet works, so that's one challenge. So you have a shift in its every beat >> and it and it's actually, if you think about the way legislation often gets made one of the problems with our democracy right now, I'm not going to put it in quotes. But I want to put it >> out. >> Is that the influence of money on our democracy means that so often the input toe legislation comes from industry. So whether it's again big tech, big pharma, big Oil, big. That's the way this cycle works in places where we have had successful legislation that industry input, what you need industry input. You just don't want industry to be the on ly input that is balanced with other input. And so we need infrastructure in the world. In the country that has policy ideas, technology. This needs to come from civil society, from the academy from non profits. So you need the same way we have environmental sciences. We need to fund from government, not just industry funded that science. That's number one. And then we need ways to have conversations about influencing companies to do the right thing. Some of it is going to be through legislation some of it is going to be for through pressure. This, in some ways is like tobacco in some ways, like it's like food. In some ways, it's like climate on DH. It's so and an underlying any of this to happen. We need people to understand and to speak up because awareness amongst whether it's individuals, parents, teachers, we need to give people the information to protect themselves and to push back on companies and to rally pushback on government. Because if if there's not an awareness of people are walking around saying, Don't take away my service, don't make this less convenient don't tax my soda. Don't tell me my text messages. That's right, so and I'm not saying taxes of the way. But if there isn't what what I'm focused on is, how do we build awareness? How do we get information out? How do we get companies like yours and others that this becomes part of >> our >> messaging of understanding so we can be talking about I >> think it's, you know back, Teo, The glory days of the TCP epi Internet revolution. He sent a package from here to there. It's a step. Take a first step. I personally listening to you talk feel and I said, It's on The Cuban people know that. You know, my my rap know that I've been pounding this. There's a counter culture in there somewhere. Counter culture's is where action happens, and I think you know, tax regulation and, you know, the current generations inherited. It is what it is we have. You're laying out essentially the current situation. John Markoff wrote a great book, What the door Mail said, talking about how the sixties counterculture influence the computer industry from breaking in for getting computer time for time sharing, too hippy revolution question I have for you put you on the spot. Is Is there a counterculture in your mind? Coming a digital hippie quotes is because I feel it. I feel that that let the air out of the balloon before it pops. Something has to happen and I think has to be a counterculture. I yet yet can't put my finger on it. Maybe it's a digital kind of a revolution, something compelling that says Whoa time out. >> All right? I think we need a couple of counter culture's in that in layers of it, because, um, I think there is going to be or is starting to be a counterculture amongst technologist and the technology industry and entrepreneurs who are some it's still small who are saying, You know what? This chasing unicorns and fastest growth and scale, you know, move faxed and break things. But, um, we want to move fast, but we want to think about whether we're breaking what we're breaking is really dangerous, you know, move fast and break things is fine, but if it's oops, we broke democracy. That isn't something that, uh that is I'm sorry you have to think about and adapt more quickly. So I think there is Are people who are talking about let's talk openly about the harm. Let's not just be tech optimists. Let's understand that it's small, but it's beginning and you're seeing it in a I for instance, the people who are saying Look, were technologists, we want to be responsible. This is a powerful weapon or tool. And let's make sure we think about how we use it. Let me just say one thing, which is, I think we needed another kind of counterculture, which I'm hoping is happing in a number of areas, which is societally saying, You know, we have a slow food movement. Maybe we just need a slow down, a little bit movement. So if you look at mindfulness, if you look at kids who are starting to say, You know what? I want to talk to someone in person, I don't. So we we need some of that counter movement where I'm hoping the pedestal starts to come back. In terms of people looking for real connectivity and not just numbers of connections, >> it's interesting, You know, everything has a symmetrical, responsible thing about it. For every fake news payload and network effect is potentially an opposite reaction of quality network effect. It's interesting, and I don't know where it is, but I think that's got it could be filled, certainly on the economic side, by new entrepreneurial thinking, like one observation I'm making is you know this. Remember, they'll bad boys of tech and he's smiling. Now It's bad gals, too, which is growing still lower numbers. So I think there's gonna be a shift to the good, the good folks right moment. But she's a she's a good entrepreneur. She's not just out there to make a quick buck or hey, mission driven za signal we're seeing. So you start to see a little bit more of a swing to Whoa, hey, let's recognize that it's not about, you know, could Buck or >> so, yes, but between you and I, it's teeny compared to the other forces. So that's what those of us who believe that needs to happen need to continue to >> one of those forces money making. >> I think it's a combination of, Ah, money and how much money, Dr. Celebrity culture, um, the forces, the power that's in place is so strong that it's hard to break through, um, short term thinking, not even being trained. So like so many things in our culture, where you have entrenched power and then you see uprising and you get hope and that's where you need the hope. But, um, we've seen it so often in so many movements, from race to gender, where you think, Oh, that's solved, it's not solved and then you come back in and come back at it. So I just I would argue that there is little bits of it, but it needs fuel. It needs continuity. It it. And the reason I think we need some government regulation is it needs help because it's not gonna >> happen. You should question, you know, some successes that I point out Amazon Web services, Google even having a long game kind of narrative they're always kind of were misunderstood at first. Remember, Google was loud by search is not doing too well. Then the rest is history. Amazon was laughed. Amazon Web services was laughed at. So people who have the long game seemed to be winning in these transitions. And that's kind of what you're getting at. You think long term, the long game. If you think in terms of the long term vision, you then going look at consequences differently. How many people do you run in? The valleys actually think like that. Okay, >> so we're talking about two different things. One is long term thinking, and I do think that apple, Google, Amazon have taken long term thinking's. So there are a good example. But if you look at them, if we look at the big companies in terms of the way they approached the market and competition and their potential negative impacts on overall society, they're part of the power. They're not doing anything to change the systems, to not >> have good and continue to benefit. The rich get richer. >> So there this This is why it's complicated. There are not good guys and bad guys there are. These people are doing this and that. So do I think overall dough? I see more long term thinking. Um, not really. I think that the incentives in the investment community, the incentives in the stock market. The incentives culturally are still very much around shorter term thinking. Not that there aren't any, but >> yeah, I would agree. I mean, it tends to be, you know, Hey, we're crushing it. We're winning, you know? Look at us. Growth hack. I mean, just the languages. Semantics. You look at that. I think it's changed. I think Facebook is, I think, the poster child of short term thinking growth hacks move fast, break stuff and look where they are, you know, they can't actually sustaining and brand outside of Facebook, they have to buy Instagram and these other companies to actually get the kind of growth. But certainly Facebook is dominate on the financial performance, but they're kind of sitting in their situation. I think you know the bro Grammer movement, I think is kind of moving through the white common ear culture of Okay, let's get some entrepreneurship going. Great. Rod. I think that's stabilising. I think we're seeing with cloud really science and thinking for good. That's a positive sign. >> Well, I'm I'm glad to hear that from you, you know, and all >> you're probably going with. >> No, no, no, I'll take that and take that into feeding my hope because I hope, >> well, the movement is classic. Look, we're not gonna tolerate this anymore. I think transparency in my final question to you before you get to some of the more entrepreneur Question says, If you look at the role of community on data, science and connectedness, one of the things about being connected is you got potential potential for collective intelligence. So if you look at data, as I said, networks, what if there was a way to kind of hone that network to get to the truth fast? Esther, something we've been working on here, and I think that's something that, you know changes media. It changes the game. But collective intelligent, the role of the community now becomes a stakeholder and potentially laying out. So his problems and you're part of the Mayfield community was co created this video with roll community, super important people. The rule of the of the person your thoughts on >> so I community is a word that is has takes on a lot of meetings, and the problem is when you mean it one way and use it the other way, the same as data driven. So I think there's at one level which is community and conductivity that has to do with collecting input from lots of sources. And when you talk about investigative journalism or they're in environmental situations or all sorts of areas where the ability to collect information from lots of sources that air interested and analyze that information that is one level of community and connectivity and networking because of people you know which is great, there's another type. When people talk about community, they mean a sense of community in terms of what humans need and what that connectivity is. And most online networks don't give you that level. The online needs to be augmented by, Ah, inter personal understanding. And one of the problems. I think with today's technology is we're fitting humans into bits that technology Khun Support, as opposed to recognizing what are our human needs that we want to hold on to and saying There are some things that are not going to fit into somebody's data set. So in that first type of community than absolutely, I think there's lots of benefits of the cloud and wisdom of the crowd. But if you're talking about humans connecting in people. You don't have the same type of, uh, that that really community online tools can help. But we should never confuse what happens in our online world >> with your final question for, you know, we got We're pushing the time here. Thank you for spending time. First of all, it's great conversation. You've seen the movie with venture capital from the beginning. You know, all the original players seeing what is now just where's that come from? Where are we? What's the state of VC? Then? He hope to the future, they all adding value. How do you see that evolving and where are we with? >> You know, I would. I think venture capital has gone through a lot of different phases. And like so many things, especially those of us who want computers, we liketo lump them all together. They're not altogether. There are some small, Yes, like they field. And the I do think, though, that something shifted in the lead up to the dot com. Ah, and later the burst. And what shifted is venture capitalists. Before that time were company builders. They were the financiers, but they saw themselves with the entrepreneur building companies because of the expansion leading up to two thousand, and the funds grew and the people coming into the field were, they became more bankers and they took more financial supposed to balancing financing and entrepreneurship. It felt like it moved. Maurin toe. This is a private equity play, Um, and I think the dynamic with entrepreneurs and the methodology overall shifted, and I don't know that that's changed Now again, not across the board. I think there are some, uh, those firms that have identified our partners within firms who still very much want Teo filled companies and partner with entrepreneurs. But I think the dynamic shifted, and if you view them as that's what they are, is private equity investors. And don't expect something else. If people need money, that's a good pick. Ones that are the best partner >> is your partner. If you want a banker, go here. If you want Builder, go their key distinction. Judy. Thanks for sharing that insight. We're Judy Estrin. Sea of Jail as author of Closing Innovation. Gabbas Wellman's well known entrepreneur advisor board member formally CTO of Cisco. And again, Great gas. Thanks for coming on I'm John for Herewith. Cube conversation. Part ofmy Mayfield. People first with the Cube. Thanks for watching.

Published Date : Jan 7 2019

SUMMARY :

She's the CEO of J Labs and author of the book Closing the It's fun to be here, So I love the fact that you're here. that I felt that a lot of the awareness was in pockets that we talked about how it's all kind of coming together when you talk like that The first time I saw O subsystem interrupt One is that one of the problems we have that has been created that they kind of think that's the trade off is always around. And the fact of the matter And then I'll have to come in, which is one of the problems with both of these is is So is you look forward and bring these ideas, and I want to get your thoughts on ideas I don't believe that you just can So you have a shift in its every beat and it and it's actually, if you think about the way legislation Is that the influence of money on our democracy means that so I feel that that let the air out of the balloon before it pops. So if you look at mindfulness, if you look at kids who are starting to say, So you start to see a little bit more of a swing to Whoa, hey, let's recognize that it's it's teeny compared to the other forces. And the reason I think we need some government regulation is it You should question, you know, some successes that I point out Amazon Web services, of the way they approached the market and competition and have good and continue to benefit. community, the incentives in the stock market. I mean, it tends to be, you know, Hey, we're crushing it. data, science and connectedness, one of the things about being connected is you got potential potential has takes on a lot of meetings, and the problem is when you mean it one You know, all the original players seeing what is now just where's that come from? But I think the dynamic shifted, and if you view them as that's what they are, is private equity investors. If you want a banker, go here.

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Holland Barry, Cyxtera | AWS re:Invent 2018


 

>> Live from Las Vegas, it's theCUBE. Covering AWS re:Invent 2018. Brought to you by Amazon Web Services, Intel, and their ecosystem partners. >> Hello Rod, we are here live in Las Vegas where Amazon Web Services' AWS re:Invent 2018. It's our sixth year covering re:Invent. We've been there from the beginning, as a customer using EC2 when it first launched in 2006, one of my first start-ups. What a scene it is here. Everyone in the industry is here full on, it's a Super Bowl of technology, Amazon is leading in the cloud game, and we're breaking it down for you in theCUBE. Our next guest is Holland Barry, Senior Vice President in Cybersecurity for Cyxtera, a hot company. Welcome to theCube, thanks for joining me. >> Thanks for having me. >> So, it's great to have a senior people, start-ups, technical people on theCube. Kind of extracting, kind of squint through the volume of data that's being announced here at the show. Huge set of announcements already out the door. More coming. I'm expecting to hear a big connectivity announcement at 11:30 involving satellite and remote coverage for IoT devices, VM containers, micro VMs, all this massive amount of tech. Putting it into reality is critical. This is what customers want to do, they want to lower their costs, they want more performance, lower cost, more capability. Ushering in a true programing model for DevOps. How do you guys fit here? What's your story? Why are you here? What's the value proposition? >> So we're really focused, especially at this show around the DevOps community, and enabling agility for those folks. Ten years ago, the word DevOps and the term DevOps came to life, and there was this tug-o-war going on between the development teams and the operations team. Where development team wanting to move fast, and have all the agility. And the operations team wanted to have stability, and then all these things. They came together in a matrimony, and 10 years later we're highly automated, everything looks great from a DevOpps perspective, but what we're seeing now is security, being a bit of a speed bump. They're having a hard time catching up with that. That's our focus on the show is unleashing the DevOps folks >> and letting security move at the speed of DevOps. >> Lets drill down on security. Obvious cyber security is a global issue. It's also a national security issue in the United States, but other countries too. It's a global policy thing. There's tech involved, right? Cyber warfare all those, we hear about the news. But for a basic enterprise, the perimeter's no longer there with cloud. You got to think differently around how you're going to secure things. Amazon is now seeing security, not a blocker. Used to be no cloud implementation, it's not secure at all. Now you're hearing people saying, it's actually pretty secure, but there's more things going on keep raising the bar on capabilities that are needed. Could you share your expert opinion on, state of security of the cloud. What are the key areas? Where are they kind of leveled out? What's the baseline now? How acceptable is that? And what are the gaps, what are people working on? >> I think we're seeing a lot more security components, move into that infrastructure as code conversations. Amazon is fantastic about launching stacks, via cloud formation template, or maybe using TerraForm And now we're seeing the need for security components to move into that as an extension, of that infrastructure type deployment. That's another are of deep focus for us. >> Is there a tech trend that's a tail win for this? Is there anything helping? Or is there more headwins then tailwins? What's the big focus? >> I think one of the big trends we're seeing, and we're getting a lot of analyst conformations on this trend too is, the whole thing around software to find perimeters. So a new approach to describing access, for the users, kind of getting away from the VPN model, where you have a central concentration entry point. And then having the traverse complicated, to maintain back haul lines right? We're seeing software define perimeter, allow users and DevOps professionals access multiple environments simultaneously, without the need of these more archaic architectures if you will. >> Now the way it works braided to VP is absolutely great. Very secure malware transmission to the inpoint. >> Absolutely, I mean you think about the old style of connectivity, and you've got a user, that has nearly unfettered access wants that VPN connection isn't created. They have way more access, they have way more ability to spread malware laterally, with a VPN connection. Software to find perimeter, greatly reduces that attack surface, by giving those users only access to those items, within the perpend infrastructure, that they're vetted to have access to, and nothing more. >> So hold on, I got to ask you a question around cloud architects, the hottest area that we're seeing from an educational, learning, progressionary, knowledge seeking area, what is a cloud architect? And what are the things that make up, how would you describe and ideal cloud architecture? So I'm enterprise, I realize I've got to straighten my data center down, I'm using the cloud, lot of great things about the cloud, lot of great things about having something around perimeters of low latency. Now we've got IOT Edge, I'm going to want to power that with power, and then have connectivity now, that's over the top. How do I architect this? 'Cause data is going to live there, human computes can move around from Amazon, that's the direction that they're going. How do I lay it all out? What's your view on Cloud architect these days, and how they should be thinking? >> Well the Cloud architect role I think has evolved a lot, So start off with right? It's no longer just being an infrastructure person, you've got to be sort of an expert on security, some of an expert on networking, and a lot of storage all these other components. I think it's different, the organization, I think there's a series of best practices. I think AWS does a fantastic job of delivering templatized best practices to folks who are looking to adopt a cloud architecture. I think that's a great guide post to go by. Is the recommendations. >> How about staffing? What are you seeing in the makeup of the kind of, you know, I don't want to sound....Ninja or pirate, or whatever metaphor you want to use. You see kind of a new bread of, DevOps engineering, >> Absolutely. >> Mixed with app developer emerging. >> Yeah I think you got it, I think that matrimony that happened between the develop and the operations team has continued to evolve, and we're seeing this new kind of combined specialty. Where you've got great programming chopped, You're a python or JavaScript ninja, and you also know a lot more about the infrastructure than traditionally, your development role would of necessitated in the past. >> What are the top security conversations are you having in a DevOps environment, because there's some really great DevOps shops, and DevOps thinking in a lot of companies. And then you've got the people who're now learning DevOps they're kind of getting cloud native. They see Kubernetes around the corner. They see.. they put containers around things. I could keep my work loads on premises. Okay I got some cloud. What is some of the thinking around that? What's your view on all this? >> So I think access is a big piece, I think, you know developers needing to get to heterogeneous set of hybrid environments. They might have some legacy, or new stuff on prem. They might have a couple of clouds they're working with, how do you have a single unified policy contract that talks about how it's users can interact with it. And we're also hearing a lot about DevSecOps to moving that detection of vulnerabilities, and code imperfections earlier on in that development cycle. And we're enabling a big compliment to that, we're not DevSecOps ourselves, but we're involved in that conversation from an access perspective. >> Can't you explain what you guys do I want to get that out there because board. What do you guys actually do? How do you make money? What's your business model? What's the product? >> Yeah, so Cyxtera is a cyber security company, that also happens to have a colocation data center footprint in 29 markets. We've got 50+ data centers. We're here focused on, once of our access products called Appgte STP Appgate is a secure access solution, that was really built with developers in mind, that allows that simultaneous secure access, to a multitude of environments. So if you're a native U.S customer, and you've got 20 or 30 accounts, we can seamlessly allow that connectivity with a very robust policy structure, to allow all those developers, those users, to interact with those environments, without having to do that VPN switching that we discussed earlier. A real real clean in sophisticated way to connect your users into your internal and sensitive infrastructure. >> And what're the...who's the buyer of the product? And why are they using you guys? >> It's typically going to be the security team, sometime we'll have the networking in the cloud, infrastructure teams involved in the conversations, but this is a security product. This is secured access product. And this is really a evolution, of what people are using for the VPN, and jumpboxes and things like that for these days. >> How dead is the VP if you had to put it on a scale? One being on life support, 10 being still state of the art. I mean VP is still around, people are using VPNs a lot. >> Totally. >> There's a role for VPNs. Is it a rip and replace? Or is it more of a functional, some spots VPNs are great, some spots they're not. What's the role of VPN? >> We're seeing them, and I think Gartner has a statistic, that 60% of VPNs will be dead by 2021, or something like that. We're seeing that evolution occur. Looking simple environment, A VPN might be a really appropriate approach. But when you have cloud workloads everywhere, you got on premise data, you've got your users everywhere. It simply can't keep up. That's really the problem space part of it. >> Where's the action for security in terms of good developing trends? Is it at the network layer? Is it the virtualization layer? The identity layer? Where are you seeing, security really advancing and excelling with cloud? What specifically, where's the action happening? >> I think it's at all airs. I mean, we've seen the identity access management, identity provider market explode. We're seeing great new technologies around, container security, virtual machine security. I can't pick any one category, I just wouldn't. I would argue though, that this access category in the software to find perimeter trend, is something. We're tuned into it obviously, maybe a little more than most. But we are seeing a huge uptake. >> Well what's the alternative? I mean most IT guys, obviously they're scared. I mean they're not... They're kind of running scared. They've been doing perimeter based security for years. Firewalls, routers, all classic all lock down. Now in comes API economy, and now they're like, "Okay." I got to figure out, buy them everything in the planet to figure it out. What are they doing now? What's state of the art for people who are moving off the perimeter completely? >> I think the adoption of, more cloud native controls. A lot folks right now, are very familiar with traditional firewall vendor, and they'll tend to take that, and implement a software version of that hardware box up in the cloud. And we're not arguing that, you need to get away from something, like a next generation firewall. This traffic exception is does a lot of things, that our solution specifically doesn't do on a lot of the SDP soluntions don't. Taking that layer approach, and seeking out the solutions that are, that are cloud native. Forcing an uptech on that, and it's really changing the way people think about the architecture in their environments too. We're familiar with one thing from OnFarm We try to shoehorn that, that methodology in the cloud >> So single sign on is critical >> SSO is critical, we're seeing a huge check up on that. Absolutely. >> How do I handle the sprawl of new environments, with IOT Edgefor instance, you'll see a lot more things connect in. How do you do that? Is it manual, was there any animation or machine learning? How are you guys bringing that to scale? Because that's a big challenge we hear a lot. >> Absolutely. One of the things we're doing, at Cyxtera, is allowing you to templatize what secured access should look like for these new environments. So just like you're deploying that infrastructure as code, we're just a secured access piece of that. All the connectivity has already been described, by the security team. So back to the comment about DevOps Where operations team needing to move fast. Thinking that would deploy a brand new environment, with that access me and you >> So you're splitting up the auto building, you're standing it up quickly. >> Yeah >> All built in a preconfigured policy just goes out. >> Absolutely. Data dog, one of our reg AWS customers a great example of someone who is highly automated everything. They don't even touch our UI They use APIs for everything. They've codeified all the elements of our platform, and so when they spin up a new environment, you know they'll actually check out, a configuration from their, whatever, get hub get lab they're using. And inject that into the spin up of the new environment. Super sophisticated, high level of automation. Really at the end of the day, what's it helping them do? Why are we doing any of this? Why are we doing DevOps? We can move faster to the live product and services, quicker to our customers. >> So you guys are basically DevOps version of security, you're instrumenting everything DevO.. Data Ghost is a great example. They're instrumenting every, all the application areas. You guys are taking the sim.... Devops approach to security. Is that your approach? >> DevOps approach to security and user access, yeah, very much so. >> And what's the big conversation you're having here, at reInvent? Obviously a lot going on, what's most exciting for you here? Every event. >> I think it's everything that we just talked about, we're hearing people finally get ready for this, message you know, we're practitioners and users of this platform ourselves, and the SDP speck. I use it everyday. I flip up my laptop in the morning, I get instantly connected from anywhere to seven and 10, what we call sites right? We're familiar with the power, we're leveraging the power internally. Now seeing other people come over, what people like Data Dog and Voicebase or tour AWS clients, seeing what they've done, seeing their story, and having them say, "Hey how did they do that, we want to do that too." >> And how 'about a global scale, you guys are agnostic on geography, so they play into it. >> Completely neutral to the underlying infrastructure, the geography our solution acts the same. It doesn't matter public, private, cloud, bare metal, it's a unified policy framework that allows you to, to whatever level of granularity you want. Just grab access from the user, even including, ingredient from a third party system. For instance, I may have a developer that's assigned to a task, or a story, or an epic. Inside a Jira project for instance. Popular development tool. I can dictate, his or her access, to the infrastructure. And the projects are working on, based on an API called the Jira saying, "Okay this person has access to these things." Now I have a conditional response to, should someone have access to this resource. It's well, it depends, are they working on this project? Are they in the office? Is there a machine patched? Who are they and the identity provider? All these things should feed in to.. >> And they're automated too. They're automating in? >> This is all completely automated, and all these checks that I just described, are actually done our system, preauthentication. So you're vetted first, and then you're handed an access passport, we call Live Entitlement. And that gets you to the infrastructure, and only the infrastructure and applications you're vetted to do. Based on that evaluation that happened preautentication >> How agile are you guys when new things have to change? There's a security threat, or something on the landscape or surface area changes. How do you guys respond to it from aj Jilly standpoint? >> Yeah so, our system can take hints VN and API as well, so if you have a, you know, a threat system or something giving you signals that something might be going on. You could come into our system for instance, and revoke everyone's accces, you could prompt someone, maybe for a step up authentication, to make the reprove who they are, they got a one time password. So lot of options. We want to take hints from third party systems, we're designed that way. We can adjust, network access and program the network, based on other things that are happening. >> Final question before we wrap up here. Let get a plug in for the company. How old is the company? How many people... So how about some of your customers? Give the plug for Cyxtera. >> 1500 employees, I think I mentioned, 50+ data centers across 29 markets, hundred and hundreds of customers on the security access product that I talk about. You know, many thousands of customers in our data center. >> So business is good? >> Business is good. Yeah. In terms of like focus areas for next year, we're all in on DevOps, we're investing heavily in this area. Expect to hear more about a richer API set. More prebundled integrations, and also a bigger focus on containers. >> Well I think you guys are a great example of, success with using cloud. Lot more work to do. >> Yep. >> I mean you've got, Global, you've got all kinds of new landscapes changes. Final question, What's the one problem you saw, summarize it in a sound bite, why do people buy Cyxtera? Why do they use you? >> For network platform access for your user with a single security contract. I can't stress that. It's a huge competitive differentiation, versus some of the web application proxys that are out there. I invite everyone to dig into the details about what we provide. You can go to appgateforaws.com if you want to test dive the product. Get a feel for the admin UI, the client setup all that stuff. It's really simple and I give ya real good taste. And please come by the booth and see a demo as well. >> Tell th em Johnathan, you get a 10% discount. Only kidding. Hey, thanks for sharing your insight on theCUBE. >> Thank you very much. >> We're here at reInvent, lot of action happening. Obviously a crowd of great people. Lot of great networking, but more importantly than industry continues to power forward, with cloud, on premise, in the world. It's cute bringing all the action her in Las Vegas. We'll be back with more after this short break.

Published Date : Nov 27 2018

SUMMARY :

Brought to you by Amazon Web Services, Amazon is leading in the cloud game, What's the value proposition? and the term DevOps came to life, What are the key areas? I think we're seeing a kind of getting away from the VPN model, Now the way it works braided I mean you think about the I got to ask you a question Is the recommendations. the makeup of the kind of, of necessitated in the past. What is some of the thinking around that? how do you have a single What's the product? that also happens to have a the buyer of the product? in the conversations, How dead is the VP if you What's the role of VPN? That's really the to find perimeter trend, are moving off the perimeter completely? and it's really changing the way we're seeing a huge check up on that. How do I handle the One of the things we're doing, the auto building, All built in a preconfigured And inject that into the spin You guys are taking the sim.... DevOps approach to what's most exciting for you here? and the SDP speck. you guys are agnostic on geography, to whatever level of granularity you want. And they're automated too. and only the infrastructure or something on the landscape network access and program the network, How old is the company? the security access Expect to hear more Well I think you guys What's the one problem you saw, Get a feel for the admin UI, you get a 10% discount. in the world.

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Peter Hortensius, Lenovo | Lenovo Transform 2018


 

>> Live from New York City, it's theCUBE. Covering, Lenovo Transform 2.0 brought to you by Lenovo. >> Welcome back everyone, we are wrapping up day one of coverage of Lenovo Transform here in New York City I'm your host Rebecca Knight, along with my co-host Stu Miniman. We have a final guest, Peter Hortensius. He is the Senior Vice President Data Center Group and CTO and Chief of Strategy. Thanks so much for coming on theCUBE Peter. >> Well thanks for having me. >> It's your first time. >> I was told, I can't believe after all these years it's my first time but it's my first time. >> It's kind of true. If you're in this industry, we're going to be on a lot more after this, trust me. So, before the cameras were rolling we were talking about how cloud is an outcome not a destination. What do you mean by that? And do you think of that as your perspective, or do you think that that is industry-wide? >> There are people in the industry who do think of it as the destination. "My life will be good when" But the reality is, when I talk to our customers and I talk to your business owners and what they are really looking for. What they are looking for is a way and a method of working. They are looking for, "How do I deploy things quickly? "How do I worry more about, "Can my applications run properly?" not "How many petabytes of storage did I need for this?" or "How many VMs did it take to run that?" And so for us, it's all around trying to provide advice and counsel around that. And we found an interesting statistic that sort of justified things we're hearing from a lot of customers, which is, while everybody has a strategy of what do they get to the cloud, eight out of 10 customers are trying to think about the things they need to bring back. So, it's not just a one-way street, which tells you it's definitely not a destination if people are telling you, "Hey there's a few things I put in there "that may not be the best place for it." >> It's interesting, 'cause in general I'd agree with you. I think we've said it is more of an operating model and there's processes there. When I evaluate companies and analysts, a lot of time it's like, okay. But tell me where your positioning is, if I give you private cloud and public cloud, do you have a real heavy leaning one way or biased towards one or the other? Of course the big public cloud providers tend to lead that way even though most of them are shifting not just all public, but, even Amazon is getting deeper into what we do in private cloud. One of the things I like about Lenovo is, we are talking about hyper-scale, we are talking about HPC, we are talking about all the various pieces. So, in your portfolio of offering, you're selling solutions into the big 10 cloud guys. So, you're not only saying, well, no, public cloud's bad. You have a measured approach to how that looks and I think pragmatic as to how the customer's going to be. >> You're right. We do sell in the six as a top 10 public clouds in the world. Enormous volumes and all the things. So, we understand what it takes to do those environments well. But we also have this huge business. We sell to people on premise and they want to all move to public clouds and private cloud technology and hybrid and multi-cloud and I can give you 100 other acronyms. The challenge is, people just want to run their business and this is, not running my business. This is a cost of doing business. So, for me it's really around, how do we provide them simple ways to get there? And I think Lenovo, because of it's legacy-free heritage we don't have a big business tied up in the old way of doing things. We can be a much more simpler vendor to work with because, okay, you want to take that to the public cloud? I get it, it makes sense. I sell to them, they are my customers, so, I'm still okay. I'm not hung up that, "No, no, no. I really don't think "that's what you want to be doing." And then vice-versa, when they wanted to look at private cloud technologies or hybrid technologies or multi-cloud technologies. Again, I have multiple ways of supporting that because I'm not hung up on why you need to buy this much storage from me of exactly this kind, I'm there. We see way too many of our competitors have a story with their customers. It sounds really good when the executive talks to them but the Regional Sales Manager is going like, "No, no, no. You don't understand. "We got to sell this or I'm done." And, so what happens? They don't sell the new thing. >> One of the challenges customers have is, they tend to do multiple things. They start out with a simple idea but, new applications and different business units pull things together. So, they are looking for partners that can help keep them up-to-date as to what's happening and help them focus on the outcomes of their business, focus on the applications and help them try to keep up in an ever changing world. So, maybe give us a little bit as to how the portfolio view from Lenovo helps customers keep up. >> We look at the, call it the "On ramp to the cloud" People want to build up their private clouds and hybrid clouds from all the parts. They are well skilled, well capable or for whatever reason they decide to do that. So we have our portfolio of products that can support you to do that all the way from our ThinkSystem lines. All the building blocks and then working closely with partners like Red Hat and so on. You carry all the way through the continuum of true turnkey solutions. You had Naj and Rod on earlier and they were really talking about a turnkey solution that we've just recently brought out with Naj's company. But Microsoft's Azure and Azure stock is another example of a turnkey hybrid cloud. As Kirk mentioned in his keynote, four times our regular market share in that market, 'cause again, we're perfectly happy to sell that. And then the big software to find on Ramp are Nutanix and VMware and a bunch of others that people have. That's another on ramp to the cloud. It's again another place where we have a lot of growth and we've been growing at, we've doubled our share basically every year, year on year share comparison every quarter for the last six quarters. We're perfectly happy going at it in all three of those paths and it works very well for us. >> I want to get back to the idea, you just started by saying, customers at the end of the day just want to run their businesses. And they want things to be easy and intuitive. So how would you say that customers are thinking that way about the cloud, or is there this pressure of, "I got to get to the cloud, "I've got to have a cloud strategy." >> I think there is some of that, I got to get to the cloud 'cause it's in vogue and if I'm not getting into the cloud, my CEO's going to think that I'm-- >> I'm not cool. >> Well, worse than not cool, not competent. That's much worse. But I think we're seeing some moderation. What we're seeing now is people are becoming more mature in how they look at this, and there are things that a public cloud environment is outstanding at, there are things that it's not as well suited for. And likewise you're seeing that as people looking at private cloud technologies and the key there really is, one of the things that makes a cloud environment so attractive is, I focus much more on managing applications than I do on managing hardware. The hardware just kind of happens for me. I think if you really going to give people those private cloud environments to do that, it's the same thing. If you look at our CP solution, it's a great example of that. I dial in, or dial on, there's my age showing on, I just connect in, I assign how I want the systems allocated to my applications and the hardware just takes care of it. That's the cloud. >> One of the real challenging things for customers is, once they've modernized that platform, what about the applications on top of it? There's so much happening in the database world, you talk about cloud native applications, AI, IoT and edge solutions are spending a lot of time for companies. Can you talk a little bit about what you're hearing from customers and how Lenovo has positioned itself for-- >> I think this is why you are seeing some of that eight out of 10 coming near as a direction. If you've written for that kind of a world as the application, this is great for you. This is what you want. There are clearly a lot of legacy applications that weren't written with the cloud in mind. There was no cloud there. So they are much harder to deploy in that model. And so, those are becoming, call it, the more stubborn and obstinate part of the business. Now, that's still a great business for us to sell to and we're very happy to support customers and in many of those instances, it doesn't pay to redo it. But, there'll be a long, long tale of those kinds of applications where they are just not written with the cloud in mind. But anything new, generally is written with that kind of environment in mind. >> Okay, so are you saying the cloud native apps should run in public clouds, or? >> They'd run everywhere. A well written app will run private, public or hybrid. >> How about AI? We've been hearing a lot this year for infrastructure, for AI, how does Lenovo play there? >> The big challenge in AI is you have to sort of step back to its core principles. What's AI about? Well AI is about crunching a lot of numbers against a very large amount of data. So, it becomes much more about, where's the data than it is about the actual algorithm or computation. That can run on almost anything, but if it's not local to the data, you got a problem. So, that becomes more and more of how that problem's defined. So, if the data is something that I'm pumping into a certain data center, whether it's cloud based or my own then that's typically where that AI algorithm will run and if it's not, then I've got to figure out how to get the data to where I want it. >> Little bit of an over-simplification when you just say, there is usually some central place where you train but it needs to be out at the edge, where there's of course autonomy vehicles leading example-- >> Training is a very different problem than you'd call it inferencing, but basically I've learned how to recognize speech, that takes a lot of computation. To recognize it doesn't take that much. Learning is what takes all the effort. >> Well, I'm actually interested in the idea of recruiting and retaining the right kind of talent, and the kind of challenges you're having. This is as we've discussed a very fast-changing technology landscape. Are you able to find the right people? >> The biggest challenge in any technology industry and since every business is getting an IT component to it, it's becoming everyone's problem. And yes, if you want to tell your kids where to go to school in, this is the place. There's going to be lots of jobs for a long time. So, we face the same challenges everybody else faces in terms of recruiting the skills. A part of that is why having cloud as the deployment model is much better for you because it is a lesser skill than what's required to manage it and deal with it and the complexities of it are simpler. Underneath the coverage, you just need fewer people that really understand that. That helps your skill problem. >> In terms of the, last year at Lenovo Transform, you announced ThinkAgile. Can you talk a little about the portfolio of customers that you have developed and what you're seeing there? >> We made a very conscious decision last year when we announced. We collected all the brands together and it was a building block, it's ThinkSystem and if it's a integrated system or cloud solution, it's ThinkAgile. Particularly integrating it in our factory and deploy. And so, we announced that, we deployed it with ThinkAgile Advantage, which is a special service that goes with it, that makes it even easier to sort of deal with the changes and IT configurations. And we've been, since then been very pleased with the kind of ramp that we've managed to get out of all our solutions in that bucket. And people really buy the idea of, hey, I'd like to get to a point where, Lenovo will configure the thing in the factory including the rack, maybe all the cables, everything. It's literally wheeled in, it's plugged in, I change my password, and I'm up. Whereas, the old world was, it shows up in 53 boxes over the course of 10 days, then I spend two weeks trying to fit it all together, pray I connected it correctly and there you go. So, it's a totally different model. >> Peter, wonder if you can help us connect the dots on some of the edge and IoT pieces. A lot of people we look at and say, okay, you've got the Motorola phones out there, you've got PC division, but the Data Center Group, how much does the Data Center Group touch and interact with the consumer in edge and other devices? >> To me, there's multiple ways to look at IoT. And when you are Lenovo, you have our own view of it, just like every other company has. So, clearly the Internet of Things, we sell a lot of things. We're going to do a lot of Internet of Things. That's what the phone and our PC and smart devices and all that stuff is about. But, there's also a lot of, we call it all that data has to get processed by something. Guess who shows up when that happens, it's the Data Center Group. So we view that as, that's just an energy whether the rest of Lenovo had all those things or not, that's just good for our business. It's just going to lift us with it. But more importantly, having that insight into what's happening at the edge, with all those devices, what's happening is customers are looking at, okay, one of the big things is now I'm starting to see movement of some of the data center to the edge. They're moving the computation, the server needs out and closer to where they think where the data is generated. That's a big opportunity for us. That's a whole new thing, and it's not something that easily moves to the cloud, 'cause there's a reason why it moved closer to the data. So for us, it's a big opportunity and it's a huge one. So, when you look at Lenovo, we all have our individual business group's view of what this thing means to me if I wasn't in, been a business. And then we layer across that then, okay, but here's what I can do with that opportunity because I do know how to make all these things, or I do know how to do that and I do know how to do that. So, that's our huge, as Wai Wai calls it our third wave. That's our real next key win. >> So you are all thinking about how, as the data center evolves, where your businesses fit in? >> Right now the bulk of our business is clearly in that data center. I would expect over time, you'll see more and more happen as these pieces over the edge come together. >> Great. That's what we'll be talking about next year. >> Hopefully, yes absolutely. We have a lot of plans in place. I think you'll see a lot from us by this time next year. >> Yeah. But maybe give us a little bit view on that as, edge has been a very hot topic, what do you see as some of the impediments and what will happen faster as you talk about that change of view of data center and edge. >> The biggest impediment is, unlike a lot of other problems in IT, there is no formula. So, if I want to run a production system, I'm going to go see Oracle, or I'm going to go see SAP, or I'm going to see someone else like that, and, they've got lots of consultants and knowhow and boom, I just got to kind of pick between ways of doing it. When you're looking at big IoT solutions, there isn't one. Everything is, "Hmm what am I going to instrument? "Hmm, what am I going to get back as the information on that? "Hmm, how am I going to justify the ROI on this? "Hmm, how am I going to deploy this at scale, "because I don't know how to do that?" All of those are things that are going on. So, what we are finding as we work, we work with a lot of system integrators, people who help people understand proof of concepts and testing and studying. So we see certainly some areas, those 20 billion things that Wai Wai talked about by 2020. Those are going to places obviously, but businesses are really struggling with, how do I do this at scale, in my business? How do I drive that intelligent transformation? That I know I've got to do, 'cause if I don't do it my competitors are going to do it. And that's to me where our opportunity sits and why it's interesting to be at Lenovo in that kind of a context. >> Great, excellent. Well, Peter Hortensius, thank you so much for coming on theCUBE. We've had a great time. >> Thank you so much. >> I enjoyed it very much, we'll have to do this again. Thank you. >> Indeed, indeed. >> I'm Rebecca Knight, for Stu Miniman, that wraps up Lenovo Transform 2018. We hope to see you back here next time on theCUBE.

Published Date : Sep 13 2018

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Lenovo Transform 2.0 Keynote | Lenovo Transform 2018


 

(electronic dance music) (Intel Jingle) (ethereal electronic dance music) ♪ Okay ♪ (upbeat techno dance music) ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Oh oh oh oh ♪ ♪ Oh oh oh oh oh ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Take it back ♪ ♪ Take it back take it back ♪ ♪ Yeah everybody get loose yeah ♪ ♪ Yeah ♪ ♪ Ye-yeah yeah ♪ ♪ Yeah yeah ♪ ♪ Everybody everybody yeah ♪ ♪ Whoo whoo ♪ ♪ Whoo whoo ♪ ♪ Whoo yeah ♪ ♪ Everybody get loose whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ >> As a courtesy to the presenters and those around you, please silence all mobile devices, thank you. (electronic dance music) ♪ Everybody get loose ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ ♪ Whoo ♪ (upbeat salsa music) ♪ Ha ha ha ♪ ♪ Ah ♪ ♪ Ha ha ha ♪ ♪ So happy ♪ ♪ Whoo whoo ♪ (female singer scatting) >> Ladies and gentlemen, please take your seats. Our program will begin momentarily. ♪ Hey ♪ (female singer scatting) (male singer scatting) ♪ Hey ♪ ♪ Whoo ♪ (female singer scatting) (electronic dance music) ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ Red don't go ♪ ♪ All hands are in don't go ♪ ♪ In don't go ♪ ♪ Oh red go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ Red red red red ♪ ♪ All hands are red don't go ♪ ♪ All hands are in red red red red ♪ ♪ All hands are in don't go ♪ ♪ All hands are in red go ♪ >> Ladies and gentlemen, there are available seats. Towards house left, house left there are available seats. If you are please standing, we ask that you please take an available seat. We will begin momentarily, thank you. ♪ Let go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ ♪ All hands are in don't go ♪ ♪ Red all hands are in don't go ♪ (upbeat electronic dance music) ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ I live ♪ ♪ Just make me ♪ ♪ Just make me ♪ ♪ Hey ♪ ♪ Yeah ♪ ♪ Oh ♪ ♪ Ah ♪ ♪ Ah ah ah ah ah ah ♪ ♪ Just make me ♪ ♪ Just make me ♪ (bouncy techno music) >> Ladies and gentlemen, once again we ask that you please take the available seats to your left, house left, there are many available seats. If you are standing, please make your way there. The program will begin momentarily, thank you. Good morning! This is Lenovo Transform 2.0! (keyboard clicks) >> Progress. Why do we always talk about it in the future? When will it finally get here? We don't progress when it's ready for us. We need it when we're ready, and we're ready now. Our hospitals and their patients need it now, our businesses and their customers need it now, our cities and their citizens need it now. To deliver intelligent transformation, we need to build it into the products and solutions we make every day. At Lenovo, we're designing the systems to fight disease, power businesses, and help you reach more customers, end-to-end security solutions to protect your data and your companies reputation. We're making IT departments more agile and cost efficient. We're revolutionizing how kids learn with VR. We're designing smart devices and software that transform the way you collaborate, because technology shouldn't just power industries, it should power people. While everybody else is talking about tomorrow, we'll keep building today, because the progress we need can't wait for the future. >> Please welcome to the stage Lenovo's Rod Lappen! (electronic dance music) (audience applauding) >> Alright. Good morning everyone! >> Good morning. >> Ooh, that was pretty good actually, I'll give it one more shot. Good morning everyone! >> Good morning! >> Oh, that's much better! Hope everyone's had a great morning. Welcome very much to the second Lenovo Transform event here in New York. I think when I got up just now on the steps I realized there's probably one thing in common all of us have in this room including myself which is, absolutely no one has a clue what I'm going to say today. So, I'm hoping very much that we get through this thing very quickly and crisply. I love this town, love New York, and you're going to hear us talk a little bit about New York as we get through here, but just before we get started I'm going to ask anyone who's standing up the back, there are plenty of seats down here, and down here on the right hand side, I think he called it house left is the professional way of calling it, but these steps to my right, your left, get up here, let's get you all seated down so that you can actually sit down during the keynote session for us. Last year we had our very first Lenovo Transform. We had about 400 people. It was here in New York, fantastic event, today, over 1,000 people. We have over 62 different technology demonstrations and about 15 breakout sessions, which I'll talk you through a little bit later on as well, so it's a much bigger event. Next year we're definitely going to be shooting for over 2,000 people as Lenovo really transforms and starts to address a lot of the technology that our commercial customers are really looking for. We were however hampered last year by a storm, I don't know if those of you who were with us last year will remember, we had a storm on the evening before Transform last year in New York, and obviously the day that it actually occurred, and we had lots of logistics. Our media people from AMIA were coming in. They took the, the plane was circling around New York for a long time, and Kamran Amini, our General Manager of our Data Center Infrastructure Group, probably one of our largest groups in the Lenovo DCG business, took 17 hours to get from Raleigh, North Carolina to New York, 17 hours, I think it takes seven or eight hours to drive. Took him 17 hours by plane to get here. And then of course this year, we have Florence. And so, obviously the hurricane Florence down there in the Carolinas right now, we tried to help, but still Kamran has made it today. Unfortunately, very tragically, we were hoping he wouldn't, but he's here today to do a big presentation a little bit later on as well. However, I do want to say, obviously, Florence is a very serious tragedy and we have to take it very serious. We got, our headquarters is in Raleigh, North Carolina. While it looks like the hurricane is just missing it's heading a little bit southeast, all of our thoughts and prayers and well wishes are obviously with everyone in the Carolinas on behalf of Lenovo, everyone at our headquarters, everyone throughout the Carolinas, we want to make sure everyone stays safe and out of harm's way. We have a great mixture today in the crowd of all customers, partners, industry analysts, media, as well as our financial analysts from all around the world. There's over 30 countries represented here and people who are here to listen to both YY, Kirk, and Christian Teismann speak today. And so, it's going to be a really really exciting day, and I really appreciate everyone coming in from all around the world. So, a big round of applause for everyone whose come in. (audience applauding) We have a great agenda for you today, and it starts obviously a very consistent format which worked very successful for us last year, and that's obviously our keynote. You'll hear from YY, our CEO, talk a little bit about the vision he has in the industry and how he sees Lenovo's turned the corner and really driving some great strategy to address our customer's needs. Kirk Skaugen, our Executive Vice President of DCG, will be up talking about how we've transformed the DCG business and once again are hitting record growth ratios for our DCG business. And then you'll hear from Christian Teismann, our SVP and General Manager for our commercial business, get up and talk about everything that's going on in our IDG business. There's really exciting stuff going on there and obviously ThinkPad being the cornerstone of that I'm sure he's going to talk to us about a couple surprises in that space as well. Then we've got some great breakout sessions, I mentioned before, 15 breakout sessions, so while this keynote section goes until about 11:30, once we get through that, please go over and explore, and have a look at all of the breakout sessions. We have all of our subject matter experts from both our PC, NBG, and our DCG businesses out to showcase what we're doing as an organization to better address your needs. And then obviously we have the technology pieces that I've also spoken about, 62 different technology displays there arranged from everything IoT, 5G, NFV, everything that's really cool and hot in the industry right now is going to be on display up there, and I really encourage all of you to get up there. So, I'm going to have a quick video to show you from some of the setup yesterday on a couple of the 62 technology displays we've got on up on stage. Okay let's go, so we've got a demonstrations to show you today, one of the greats one here is the one we've done with NC State, a high-performance computing artificial intelligence demonstration of fresh produce. It's about modeling the population growth of the planet, and how we're going to supply water and food as we go forward. Whoo. Oh, that is not an apple. Okay. (woman laughs) Second one over here is really, hey Jonas, how are you? Is really around virtual reality, and how we look at one of the most amazing sites we've got, as an install on our high-performance computing practice here globally. And you can see, obviously, that this is the Barcelona supercomputer, and, where else in New York can you get access to being able to see something like that so easily? Only here at Lenovo Transform. Whoo, okay. (audience applauding) So there's two examples of some of the technology. We're really encouraging everyone in the room after the keynote to flow into that space and really get engaged, and interact with a lot of the technology we've got up there. It seems I need to also do something about my fashion, I've just realized I've worn a vest two days in a row, so I've got to work on that as well. Alright so listen, the last thing on the agenda, we've gone through the breakout sessions and the demo, tonight at four o'clock, there's about 400 of you registered to be on the cruise boat with us, the doors will open behind me. the boat is literally at the pier right behind us. You need to make sure you're on the boat for 4:00 p.m. this evening. Outside of that, I want everyone to have a great time today, really enjoy the experience, make it as experiential as you possibly can, get out there and really get in and touch the technology. There's some really cool AI displays up there for us all to get involved in as well. So ladies and gentlemen, without further adieu, it gives me great pleasure to introduce to you a lover of tennis, as some of you would've heard last year at Lenovo Transform, as well as a lover of technology, Lenovo, and of course, New York City. I am obviously very pleasured to introduce to you Yang Yuanqing, our CEO, as we like to call him, YY. (audience applauding) (upbeat funky music) >> Good morning, everyone. >> Good morning. >> Thank you Rod for that introduction. Welcome to New York City. So, this is the second year in a row we host our Transform event here, because New York is indeed one of the most transformative cities in the world. Last year on this stage, I spoke about the Fourth Industrial Revolution, and our vision around the intelligent transformation, how it would fundamentally change the nature of business and the customer relationships. And why preparing for this transformation is the key for the future of our company. And in the last year I can assure you, we were being very busy doing just that, from searching and bringing global talents around the world to the way we think about every product and every investment we make. I was here in New York just a month ago to announce our fiscal year Q1 earnings, which was a good day for us. I think now the world believes it when we say Lenovo has truly turned the corner to a new phase of growth and a new phase of acceleration in executing the transformation strategy. That's clear to me is that the last few years of a purposeful disruption at Lenovo have led us to a point where we can now claim leadership of the coming intelligent transformation. People often asked me, what is the intelligent transformation? I was saying this way. This is the unlimited potential of the Fourth Industrial Revolution driven by artificial intelligence being realized, ordering a pizza through our speaker, and locking the door with a look, letting your car drive itself back to your home. This indeed reflect the power of AI, but it just the surface of it. The true impact of AI will not only make our homes smarter and offices more efficient, but we are also completely transformed every value chip in every industry. However, to realize these amazing possibilities, we will need a structure built around the key components, and one that touches every part of all our lives. First of all, explosions in new technology always lead to new structures. This has happened many times before. In the early 20th century, thousands of companies provided a telephone service. City streets across the US looked like this, and now bundles of a microscopic fiber running from city to city bring the world closer together. Here's what a driving was like in the US, up until 1950s. Good luck finding your way. (audience laughs) And today, millions of vehicles are organized and routed daily, making the world more efficient. Structure is vital, from fiber cables and the interstate highways, to our cells bounded together to create humans. Thankfully the structure for intelligent transformation has emerged, and it is just as revolutionary. What does this new structure look like? We believe there are three key building blocks, data, computing power, and algorithms. Ever wondered what is it behind intelligent transformation? What is fueling this miracle of human possibility? Data. As the Internet becomes ubiquitous, not only PCs, mobile phones, have come online and been generating data. Today it is the cameras in this room, the climate controls in our offices, or the smart displays in our kitchens at home. The number of smart devices worldwide will reach over 20 billion in 2020, more than double the number in 2017. These devices and the sensors are connected and generating massive amount of data. By 2020, the amount of data generated will be 57 times more than all the grains of sand on Earth. This data will not only make devices smarter, but will also fuel the intelligence of our homes, offices, and entire industries. Then we need engines to turn the fuel into power, and the engine is actually the computing power. Last but not least the advanced algorithms combined with Big Data technology and industry know how will form vertical industrial intelligence and produce valuable insights for every value chain in every industry. When these three building blocks all come together, it will change the world. At Lenovo, we have each of these elements of intelligent transformations in a single place. We have built our business around the new structure of intelligent transformation, especially with mobile and the data center now firmly part of our business. I'm often asked why did you acquire these businesses? Why has a Lenovo gone into so many fields? People ask the same questions of the companies that become the leaders of the information technology revolution, or the third industrial transformation. They were the companies that saw the future and what the future required, and I believe Lenovo is the company today. From largest portfolio of devices in the world, leadership in the data center field, to the algorithm-powered intelligent vertical solutions, and not to mention the strong partnership Lenovo has built over decades. We are the only company that can unify all these essential assets and deliver end to end solutions. Let's look at each part. We now understand the important importance data plays as fuel in intelligent transformation. Hundreds of billions of devices and smart IoTs in the world are generating better and powering the intelligence. Who makes these devices in large volume and variety? Who puts these devices into people's home, offices, manufacturing lines, and in their hands? Lenovo definitely has the front row seats here. We are number one in PCs and tablets. We also produces smart phones, smart speakers, smart displays. AR/VR headsets, as well as commercial IoTs. All of these smart devices, or smart IoTs are linked to each other and to the cloud. In fact, we have more than 20 manufacturing facilities in China, US, Brazil, Japan, India, Mexico, Germany, and more, producing various devices around the clock. We actually make four devices every second, and 37 motherboards every minute. So, this factory located in my hometown, Hu-fi, China, is actually the largest laptop factory in the world, with more than three million square feet. So, this is as big as 42 soccer fields. Our scale and the larger portfolio of devices gives us access to massive amount of data, which very few companies can say. So, why is the ability to scale so critical? Let's look again at our example from before. The early days of telephone, dozens of service providers but only a few companies could survive consolidation and become the leader. The same was true for the third Industrial Revolution. Only a few companies could scale, only a few could survive to lead. Now the building blocks of the next revolution are locking into place. The (mumbles) will go to those who can operate at the scale. So, who could foresee the total integration of cloud, network, and the device, need to deliver intelligent transformation. Lenovo is that company. We are ready to scale. Next, our computing power. Computing power is provided in two ways. On one hand, the modern supercomputers are providing the brute force to quickly analyze the massive data like never before. On the other hand the cloud computing data centers with the server storage networking capabilities, and any computing IoT's, gateways, and miniservers are making computing available everywhere. Did you know, Lenovo is number one provider of super computers worldwide? 170 of the top 500 supercomputers, run on Lenovo. We hold 89 World Records in key workloads. We are number one in x86 server reliability for five years running, according to ITIC. a respected provider of industry research. We are also the fastest growing provider of hyperscale public cloud, hyper-converged and aggressively growing in edge computing. cur-ges target, we are expand on this point soon. And finally to run these individual nodes into our symphony, we must transform the data and utilize the computing power with advanced algorithms. Manufactured, industry maintenance, healthcare, education, retail, and more, so many industries are on the edge of intelligent transformation to improve efficiency and provide the better products and services. We are creating advanced algorithms and the big data tools combined with industry know-how to provide intelligent vertical solutions for several industries. In fact, we studied at Lenovo first. Our IT and research teams partnered with our global supply chain to develop an AI that improved our demand forecasting accuracy. Beyond managing our own supply chain we have offered our deep learning supply focused solution to other manufacturing companies to improve their efficiency. In the best case, we have improved the demand, focused the accuracy by 30 points to nearly 90 percent, for Baosteel, the largest of steel manufacturer in China, covering the world as well. Led by Lenovo research, we launched the industry-leading commercial ready AR headset, DaystAR, partnering with companies like the ones in this room. This technology is being used to revolutionize the way companies service utility, and even our jet engines. Using our workstations, servers, and award-winning imaging processing algorithms, we have partnered with hospitals to process complex CT scan data in minutes. So, this enable the doctors to more successfully detect the tumors, and it increases the success rate of cancer diagnosis all around the world. We are also piloting our smart IoT driven warehouse solution with one of the world's largest retail companies to greatly improve the efficiency. So, the opportunities are endless. This is where Lenovo will truly shine. When we combine the industry know-how of our customers with our end-to-end technology offerings, our intelligent vertical solutions like this are growing, which Kirk and Christian will share more. Now, what will drive this transformation even faster? The speed at which our networks operate, specifically 5G. You may know that Lenovo just launched the first-ever 5G smartphone, our Moto Z3, with the new 5G Moto model. We are partnering with multiple major network providers like Verizon, China Mobile. With the 5G model scheduled to ship early next year, we will be the first company to provide a 5G mobile experience to any users, customers. This is amazing innovation. You don't have to buy a new phone, just the 5G clip on. What can I say, except wow. (audience laughs) 5G is 10 times the fast faster than 4G. Its download speed will transform how people engage with the world, driverless car, new types of smart wearables, gaming, home security, industrial intelligence, all will be transformed. Finally, accelerating with partners, as ready as we are at Lenovo, we need partners to unlock our full potential, partners here to create with us the edge of the intelligent transformation. The opportunities of intelligent transformation are too profound, the scale is too vast. No company can drive it alone fully. We are eager to collaborate with all partners that can help bring our vision to life. We are dedicated to open partnerships, dedicated to cross-border collaboration, unify the standards, share the advantage, and market the synergies. We partner with the biggest names in the industry, Intel, Microsoft, AMD, Qualcomm, Google, Amazon, and Disney. We also find and partner with the smaller innovators as well. We're building the ultimate partner experience, open, shared, collaborative, diverse. So, everything is in place for intelligent transformation on a global scale. Smart devices are everywhere, the infrastructure is in place, networks are accelerating, and the industries demand to be more intelligent, and Lenovo is at the center of it all. We are helping to drive change with the hundreds of companies, companies just like yours, every day. We are your partner for intelligent transformation. Transformation never stops. This is what you will hear from Kirk, including details about Lenovo NetApp global partnership we just announced this morning. We've made the investments in every single aspect of the technology. We have the end-to-end resources to meet your end-to-end needs. As you attend the breakout session this afternoon, I hope you see for yourself how much Lenovo has transformed as a company this past year, and how we truly are delivering a future of intelligent transformation. Now, let me invite to the stage Kirk Skaugen, our president of Data Center growth to tell you about the exciting transformation happening in the global Data C enter market. Thank you. (audience applauding) (upbeat music) >> Well, good morning. >> Good morning. >> Good morning! >> Good morning! >> Excellent, well, I'm pleased to be here this morning to talk about how we're transforming the Data Center and taking you as our customers through your own intelligent transformation journey. Last year I stood up here at Transform 1.0, and we were proud to announce the largest Data Center portfolio in Lenovo's history, so I thought I'd start today and talk about the portfolio and the progress that we've made over the last year, and the strategies that we have going forward in phase 2.0 of Lenovo's transformation to be one of the largest data center companies in the world. We had an audacious vision that we talked about last year, and that is to be the most trusted data center provider in the world, empowering customers through the new IT, intelligent transformation. And now as the world's largest supercomputer provider, giving something back to humanity, is very important this week with the hurricanes now hitting North Carolina's coast, but we take this most trusted aspect very seriously, whether it's delivering the highest quality products on time to you as customers with the highest levels of security, or whether it's how we partner with our channel partners and our suppliers each and every day. You know we're in a unique world where we're going from hundreds of millions of PCs, and then over the next 25 years to hundred billions of connected devices, so each and every one of you is going through this intelligent transformation journey, and in many aspects were very early in that cycle. And we're going to talk today about our role as the largest supercomputer provider, and how we're solving humanity's greatest challenges. Last year we talked about two special milestones, the 25th anniversary of ThinkPad, but also the 25th anniversary of Lenovo with our IBM heritage in x86 computing. I joined the workforce in 1992 out of college, and the IBM first personal server was launching at the same time with an OS2 operating system and a free mouse when you bought the server as a marketing campaign. (audience laughing) But what I want to be very clear today, is that the innovation engine is alive and well at Lenovo, and it's really built on the culture that we're building as a company. All of these awards at the bottom are things that we earned over the last year at Lenovo. As a Fortune now 240 company, larger than companies like Nike, or AMEX, or Coca-Cola. The one I'm probably most proud of is Forbes first list of the top 2,000 globally regarded companies. This was something where 15,000 respondents in 60 countries voted based on ethics, trustworthiness, social conduct, company as an employer, and the overall company performance, and Lenovo was ranked number 27 of 2000 companies by our peer group, but we also now one of-- (audience applauding) But we also got a perfect score in the LGBTQ Equality Index, exemplifying the diversity internally. We're number 82 in the top working companies for mothers, top working companies for fathers, top 100 companies for sustainability. If you saw that factory, it's filled with solar panels on the top of that. And now again, one of the top global brands in the world. So, innovation is built on a customer foundation of trust. We also said last year that we'd be crossing an amazing milestone. So we did, over the last 12 months ship our 20 millionth x86 server. So, thank you very much to our customers for this milestone. (audience applauding) So, let me recap some of the transformation elements that have happened over the last year. Last year I talked about a lot of brand confusion, because we had the ThinkServer brand from the legacy Lenovo, the System x, from IBM, we had acquired a number of networking companies, like BLADE Network Technologies, et cetera, et cetera. Over the last year we've been ramping based on two brand structures, ThinkAgile for next generation IT, and all of our software-defined infrastructure products and ThinkSystem as the world's highest performance, highest reliable x86 server brand, but for servers, for storage, and for networking. We have transformed every single aspect of the customer experience. A year and a half ago, we had four different global channel programs around the world. Typically we're about twice the mix to our channel partners of any of our competitors, so this was really important to fix. We now have a single global Channel program, and have technically certified over 11,000 partners to be technical experts on our product line to deliver better solutions to our customer base. Gardner recently recognized Lenovo as the 26th ranked supply chain in the world. And, that's a pretty big honor, when you're up there with Amazon and Walmart and others, but in tech, we now are in the top five supply chains. You saw the factory network from YY, and today we'll be talking about product shipping in more than 160 countries, and I know there's people here that I've met already this morning, from India, from South Africa, from Brazil and China. We announced new Premier Support services, enabling you to go directly to local language support in nine languages in 49 countries in the world, going directly to a native speaker level three support engineer. And today we have more than 10,000 support specialists supporting our products in over 160 countries. We've delivered three times the number of engineered solutions to deliver a solutions orientation, whether it's on HANA, or SQL Server, or Oracle, et cetera, and we've completely reengaged our system integrator channel. Last year we had the CIO of DXE on stage, and here we're talking about more than 175 percent growth through our system integrator channel in the last year alone as we've brought that back and really built strong relationships there. So, thank you very much for amazing work here on the customer experience. (audience applauding) We also transformed our leadership. We thought it was extremely important with a focus on diversity, to have diverse talent from the legacy IBM, the legacy Lenovo, but also outside the industry. We made about 19 executive changes in the DCG group. This is the most senior leadership team within DCG, all which are newly on board, either from our outside competitors mainly over the last year. About 50 percent of our executives were now hired internally, 50 percent externally, and 31 percent of those new executives are diverse, representing the diversity of our global customer base and gender. So welcome, and most of them you're going to be able to meet over here in the breakout sessions later today. (audience applauding) But some things haven't changed, they're just keeping getting better within Lenovo. So, last year I got up and said we were committed with the new ThinkSystem brand to be a world performance leader. You're going to see that we're sponsoring Ducati for MotoGP. You saw the Ferrari out there with Formula One. That's not a surprise. We want the Lenovo ThinkSystem and ThinkAgile brands to be synonymous with world record performance. So in the last year we've gone from 39 to 89 world records, and partners like Intel would tell you, we now have four times the number of world record workloads on Lenovo hardware than any other server company on the planet today, with more than 89 world records across HPC, Java, database, transaction processing, et cetera. And we're proud to have just brought on Doug Fisher from Intel Corporation who had about 10-17,000 people on any given year working for him in workload optimizations across all of our software. It's just another testament to the leadership team we're bringing in to keep focusing on world-class performance software and solutions. We also per ITIC, are the number one now in x86 server reliability five years running. So, this is a survey where CIOs are in a blind survey asked to submit their reliability of their uptime on their x86 server equipment over the last 365 days. And you can see from 2016 to 2017 the downtime, there was over four hours as noted by the 750 CXOs in more than 20 countries is about one percent for the Lenovo products, and is getting worse generation from generation as we went from Broadwell to Pearlie. So we're taking our reliability, which was really paramount in the IBM System X heritage, and ensuring that we don't just recognize high performance but we recognize the highest level of reliability for mission-critical workloads. And what that translates into is that we at once again have been ranked number one in customer satisfaction from you our customers in 19 of 22 attributes, in North America in 18 of 22. This is a survey by TVR across hundreds of customers of us and our top competitors. This is the ninth consecutive study that we've been ranked number one in customer satisfaction, so we're taking this extremely seriously, and in fact YY now has increased the compensation of every single Lenovo employee. Up to 40 percent of their compensation bonus this year is going to be based on customer metrics like quality, order to ship, and things of this nature. So, we're really putting every employee focused on customer centricity this year. So, the summary on Transform 1.0 is that every aspect of what you knew about Lenovo's data center group has transformed, from the culture to the branding to dedicated sales and marketing, supply chain and quality groups, to a worldwide channel program and certifications, to new system integrator relationships, and to the new leadership team. So, rather than me just talk about it, I thought I'd share a quick video about what we've done over the last year, if you could run the video please. Turn around for a second. (epic music) (audience applauds) Okay. So, thank you to all our customers that allowed us to publicly display their logos in that video. So, what that means for you as investors, and for the investor community out there is, that our customers have responded, that this year Gardner just published that we are the fastest growing server company in the top 10, with 39 percent growth quarter-on-quarter, and 49 percent growth year-on-year. If you look at the progress we've made since the transformation the last three quarters publicly, we've grown 17 percent, then 44 percent, then 68 percent year on year in revenue, and I can tell you this quarter I'm as confident as ever in the financials around the DCG group, and it hasn't been in one area. You're going to see breakout sessions from hyperscale, software-defined, and flash, which are all growing more than a 100 percent year-on-year, supercomputing which we'll talk about shortly, now number one, and then ultimately from profitability, delivering five consecutive quarters of pre-tax profit increase, so I think, thank you very much to the customer base who's been working with us through this transformation journey. So, you're here to really hear what's next on 2.0, and that's what I'm excited to talk about today. Last year I came up with an audacious goal that we would become the largest supercomputer company on the planet by 2020, and this graph represents since the acquisition of the IBM System x business how far we were behind being the number one supercomputer. When we started we were 182 positions behind, even with the acquisition for example of SGI from HP, we've now accomplished our goal actually two years ahead of time. We're now the largest supercomputer company in the world. About one in every four supercomputers, 117 on the list, are now Lenovo computers, and you saw in the video where the universities are said, but I think what I'm most proud of is when your customers rank you as the best. So the awards at the bottom here, are actually Readers Choice from the last International Supercomputing Show where the scientific researchers on these computers ranked their vendors, and we were actually rated the number one server technology in supercomputing with our ThinkSystem SD530, and the number one storage technology with our ThinkSystem DSS-G, but more importantly what we're doing with the technology. You're going to see we won best in life sciences, best in data analytics, and best in collaboration as well, so you're going to see all of that in our breakout sessions. As you saw in the video now, 17 of the top 25 research institutions in the world are now running Lenovo supercomputers. And again coming from Raleigh and watching that hurricane come across the Atlantic, there are eight supercomputers crunching all of those models you see from Germany to Malaysia to Canada, and we're happy to have a SciNet from University of Toronto here with us in our breakout session to talk about what they're doing on climate modeling as well. But we're not stopping there. We just announced our new Neptune warm water cooling technology, which won the International Supercomputing Vendor Showdown, the first time we've won that best of show in 25 years, and we've now installed this. We're building out LRZ in Germany, the first ever warm water cooling in Peking University, at the India Space Propulsion Laboratory, at the Malaysian Weather and Meteorological Society, at Uninett, at the largest supercomputer in Norway, T-Systems, University of Birmingham. This is truly amazing technology where we're actually using water to cool the machine to deliver a significantly more energy-efficient computer. Super important, when we're looking at global warming and some of the electric bills can be millions of dollars just for one computer, and could actually power a small city just with the technology from the computer. We've built AI centers now in Morrisville, Stuttgart, Taipei, and Beijing, where customers can bring their AI workloads in with experts from Intel, from Nvidia, from our FPGA partners, to work on their workloads, and how they can best implement artificial intelligence. And we also this year launched LICO which is Lenovo Intelligent Compute Orchestrator software, and it's a software solution that simplifies the management and use of distributed clusters in both HPC and AI model development. So, what it enables you to do is take a single cluster, and run both HPC and AI workloads on it simultaneously, delivering better TCO for your environment, so check out LICO as well. A lot of the customers here and Wall Street are very excited and using it already. And we talked about solving humanity's greatest challenges. In the breakout session, you're going to have a virtual reality experience where you're going to be able to walk through what as was just ranked the world's most beautiful data center, the Barcelona Supercomputer. So, you can actually walk through one of the largest supercomputers in the world from Barcelona. You can see the work we're doing with NC State where we're going to have to grow the food supply of the world by 50 percent, and there's not enough fresh water in the world in the right places to actually make all those crops grow between now and 2055, so you're going to see the progression of how they're mapping the entire globe and the water around the world, how to build out the crop population over time using AI. You're going to see our work with Vestas is this largest supercomputer provider in the wind turbine areas, how they're working on wind energy, and then with University College London, how they're working on some of the toughest particle physics calculations in the world. So again, lots of opportunity here. Take advantage of it in the breakout sessions. Okay, let me transition to hyperscale. So in hyperscale now, we have completely transformed our business model. We are now powering six of the top 10 hyperscalers in the world, which is a significant difference from where we were two years ago. And the reason we're doing that, is we've coined a term called ODM+. We believe that hyperscalers want more procurement power than an ODM, and Lenovo is doing about $18 billion of procurement a year. They want a broader global supply chain that they can get from a local system integrator. We're more than 160 countries around the world, but they want the same world-class quality and reliability like they get from an MNC. So, what we're doing now is instead of just taking off the shelf motherboards from somewhere, we're starting with a blank sheet of paper, we're working with the customer base on customized SKUs and you can see we already are developing 33 custom solutions for the largest hyperscalers in the world. And then we're not just running notebooks through this factory where YY said, we're running 37 notebook boards a minute, we're now putting in tens and tens and tens of thousands of server board capacity per month into this same factory, so absolutely we can compete with the most aggressive ODM's in the world, but it's not just putting these things in in the motherboard side, we're also building out these systems all around the world, India, Brazil, Hungary, Mexico, China. This is an example of a new hyperscale customer we've had this last year, 34,000 servers we delivered in the first six months. The next 34,000 servers we delivered in 68 days. The next 34,000 servers we delivered in 35 days, with more than 99 percent on-time delivery to 35 data centers in 14 countries as diverse as South Africa, India, China, Brazil, et cetera. And I'm really ashamed to say it was 99.3, because we did have a forklift driver who rammed their forklift right through the middle of the one of the server racks. (audience laughing) At JFK Airport that we had to respond to, but I think this gives you a perspective of what it is to be a top five global supply chain and technology. So last year, I said we would invest significantly in IP, in joint ventures, and M and A to compete in software defined, in networking, and in storage, so I wanted to give you an update on that as well. Our newest software-defined partnership is with Cloudistics, enabling a fully composable cloud infrastructure. It's an exclusive agreement, you can see them here. I think Nag, our founder, is going to be here today, with a significant Lenovo investment in the company. So, this new ThinkAgile CP series delivers the simplicity of the public cloud, on-premise with exceptional support and a marketplace of essential enterprise applications all with a single click deployment. So simply put, we're delivering a private cloud with a premium experience. It's simple in that you need no specialists to deploy it. An IT generalist can set it up and manage it. It's agile in that you can provision dozens of workloads in minutes, and it's transformative in that you get all of the goodness of public cloud on-prem in a private cloud to unlock opportunity for use. So, we're extremely excited about the ThinkAgile CP series that's now shipping into the marketplace. Beyond that we're aggressively ramping, and we're either doubling, tripling, or quadrupling our market share as customers move from traditional server technology to software-defined technology. With Nutanix we've been public, growing about more than 150 percent year-on-year, with Nutanix as their fastest growing Nutanix partner, but today I want to set another audacious goal. I believe we cannot just be Nutanix's fastest growing partner but we can become their largest partner within two years. On Microsoft, we are already four times our market share on Azure stack of our traditional business. We were the first to launch our ThinkAgile on Broadwell and on Skylake with the Azure Stack Infrastructure. And on VMware we're about twice our market segment share. We were the first to deliver an Intel-optimized Optane-certified VSAN node. And with Optane technology, we're delivering 50 percent more VM density than any competitive SSD system in the marketplace, about 10 times lower latency, four times the performance of any SSD system out there, and Lenovo's first to market on that. And at VMworld you saw CEO Pat Gelsinger of VMware talked about project dimension, which is Edge as a service, and we're the only OEM beyond the Dell family that is participating today in project dimension. Beyond that you're going to see a number of other partnerships we have. I'm excited that we have the city of Bogota Columbia here, an eight million person city, where we announced a 3,000 camera video surveillance solution last month. With pivot three you're going to see city of Bogota in our breakout sessions. You're going to see a new partnership with Veeam around backup that's launching today. You're going to see partnerships with scale computing in IoT and hyper-converged infrastructure working on some of the largest retailers in the world. So again, everything out in the breakout session. Transitioning to storage and data management, it's been a great year for Lenovo, more than a 100 percent growth year-on-year, 2X market growth in flash arrays. IDC just reported 30 percent growth in storage, number one in price performance in the world and the best HPC storage product in the top 500 with our ThinkSystem DSS G, so strong coverage, but I'm excited today to announce for Transform 2.0 that Lenovo is launching the largest data management and storage portfolio in our 25-year data center history. (audience applauding) So a year ago, the largest server portfolio, becoming the largest fastest growing server OEM, today the largest storage portfolio, but as you saw this morning we're not doing it alone. Today Lenovo and NetApp, two global powerhouses are joining forces to deliver a multi-billion dollar global alliance in data management and storage to help customers through their intelligent transformation. As the fastest growing worldwide server leader and one of the fastest growing flash array and data management companies in the world, we're going to deliver more choice to customers than ever before, global scale that's never been seen, supply chain efficiencies, and rapidly accelerating innovation and solutions. So, let me unwrap this a little bit for you and talk about what we're announcing today. First, it's the largest portfolio in our history. You're going to see not just storage solutions launching today but a set of solution recipes from NetApp that are going to make Lenovo server and NetApp or Lenovo storage work better together. The announcement enables Lenovo to go from covering 15 percent of the global storage market to more than 90 percent of the global storage market and distribute these products in more than 160 countries around the world. So we're launching today, 10 new storage platforms, the ThinkSystem DE and ThinkSystem DM platforms. They're going to be centrally managed, so the same XClarity management that you've been using for server, you can now use across all of your storage platforms as well, and it'll be supported by the same 10,000 plus service personnel that are giving outstanding customer support to you today on the server side. And we didn't come up with this in the last month or the last quarter. We're announcing availability in ordering today and shipments tomorrow of the first products in this portfolio, so we're excited today that it's not just a future announcement but something you as customers can take advantage of immediately. (audience applauding) The second part of the announcement is we are announcing a joint venture in China. Not only will this be a multi-billion dollar global partnership, but Lenovo will be a 51 percent owner, NetApp a 49 percent owner of a new joint venture in China with the goal of becoming in the top three storage companies in the largest data and storage market in the world. We will deliver our R and D in China for China, pooling our IP and resources together, and delivering a single route to market through a complementary channel, not just in China but worldwide. And in the future I just want to tell everyone this is phase one. There is so much exciting stuff. We're going to be on the stage over the next year talking to you about around integrated solutions, next-generation technologies, and further synergies and collaborations. So, rather than just have me talk about it, I'd like to welcome to the stage our new partner NetApp and Brad Anderson who's the senior vice president and general manager of NetApp Cloud Infrastructure. (upbeat music) (audience applauding) >> Thank You Kirk. >> So Brad, we've known each other a long time. It's an exciting day. I'm going to give you the stage and allow you to say NetApp's perspective on this announcement. >> Very good, thank you very much, Kirk. Kirk and I go back to I think 1994, so hey good morning and welcome. My name is Brad Anderson. I manage the Cloud Infrastructure Group at NetApp, and I am honored and privileged to be here at Lenovo Transform, particularly today on today's announcement. Now, you've heard a lot about digital transformation about how companies have to transform their IT to compete in today's global environment. And today's announcement with the partnership between NetApp and Lenovo is what that's all about. This is the joining of two global leaders bringing innovative technology in a simplified solution to help customers modernize their IT and accelerate their global digital transformations. Drawing on the strengths of both companies, Lenovo's high performance compute world-class supply chain, and NetApp's hybrid cloud data management, hybrid flash and all flash storage solutions and products. And both companies providing our customers with the global scale for them to be able to meet their transformation goals. At NetApp, we're very excited. This is a quote from George Kurian our CEO. George spent all day yesterday with YY and Kirk, and would have been here today if it hadn't been also our shareholders meeting in California, but I want to just convey how excited we are for all across NetApp with this partnership. This is a partnership between two companies with tremendous market momentum. Kirk took you through all the amazing results that Lenovo has accomplished, number one in supercomputing, number one in performance, number one in x86 reliability, number one in x86 customers sat, number five in supply chain, really impressive and congratulations. Like Lenovo, NetApp is also on a transformation journey, from a storage company to the data authority in hybrid cloud, and we've seen some pretty impressive momentum as well. Just last week we became number one in all flash arrays worldwide, catching EMC and Dell, and we plan to keep on going by them, as we help customers modernize their their data centers with cloud connected flash. We have strategic partnerships with the largest hyperscalers to provide cloud native data services around the globe and we are having success helping our customers build their own private clouds with just, with a new disruptive hyper-converged technology that allows them to operate just like hyperscalers. These three initiatives has fueled NetApp's transformation, and has enabled our customers to change the world with data. And oh by the way, it has also fueled us to have meet or have beaten Wall Street's expectations for nine quarters in a row. These are two companies with tremendous market momentum. We are also building this partnership for long term success. We think about this as phase one and there are two important components to phase one. Kirk took you through them but let me just review them. Part one, the establishment of a multi-year commitment and a collaboration agreement to offer Lenovo branded flash products globally, and as Kurt said in 160 countries. Part two, the formation of a joint venture in PRC, People's Republic of China, that will provide long term commitment, joint product development, and increase go-to-market investment to meet the unique needs to China. Both companies will put in storage technologies and storage expertise to form an independent JV that establishes a data management company in China for China. And while we can dream about what phase two looks like, our entire focus is on making phase one incredibly successful and I'm pleased to repeat what Kirk, is that the first products are orderable and shippable this week in 160 different countries, and you will see our two companies focusing on the here and now. On our joint go to market strategy, you'll see us working together to drive strategic alignment, focused execution, strong governance, and realistic expectations and milestones. And it starts with the success of our customers and our channel partners is job one. Enabling customers to modernize their legacy IT with complete data center solutions, ensuring that our customers get the best from both companies, new offerings the fuel business success, efficiencies to reinvest in game-changing initiatives, and new solutions for new mission-critical applications like data analytics, IoT, artificial intelligence, and machine learning. Channel partners are also top of mind for both our two companies. We are committed to the success of our existing and our future channel partners. For NetApp channel partners, it is new pathways to new segments and to new customers. For Lenovo's channel partners, it is the competitive weapons that now allows you to compete and more importantly win against Dell, EMC, and HP. And the good news for both companies is that our channel partner ecosystem is highly complementary with minimal overlap. Today is the first day of a very exciting partnership, of a partnership that will better serve our customers today and will provide new opportunities to both our companies and to our partners, new products to our customers globally and in China. I am personally very excited. I will be on the board of the JV. And so, I look forward to working with you, partnering with you and serving you as we go forward, and with that, I'd like to invite Kirk back up. (audience applauding) >> Thank you. >> Thank you. >> Well, thank you, Brad. I think it's an exciting overview, and these products will be manufactured in China, in Mexico, in Hungary, and around the world, enabling this amazing supply chain we talked about to deliver in over 160 countries. So thank you Brad, thank you George, for the amazing partnership. So again, that's not all. In Transform 2.0, last year, we talked about the joint ventures that were coming. I want to give you a sneak peek at what you should expect at future Lenovo events around the world. We have this Transform in Beijing in a couple weeks. We'll then be repeating this in 20 different locations roughly around the world over the next year, and I'm excited probably more than ever about what else is coming. Let's talk about Telco 5G and network function virtualization. Today, Motorola phones are certified on 46 global networks. We launched the world's first 5G upgradable phone here in the United States with Verizon. Lenovo DCG sells to 58 telecommunication providers around the world. At Mobile World Congress in Barcelona and Shanghai, you saw China Telecom and China Mobile in the Lenovo booth, China Telecom showing a video broadband remote access server, a VBRAS, with video streaming demonstrations with 2x less jitter than they had seen before. You saw China Mobile with a virtual remote access network, a VRAN, with greater than 10 times the throughput and 10x lower latency running on Lenovo. And this year, we'll be launching a new NFV company, a software company in China for China to drive the entire NFV stack, delivering not just hardware solutions, but software solutions, and we've recently hired a new CEO. You're going to hear more about that over the next several quarters. Very exciting as we try to drive new economics into the networks to deliver these 20 billion devices. We're going to need new economics that I think Lenovo can uniquely deliver. The second on IoT and edge, we've integrated on the device side into our intelligent devices group. With everything that's going to consume electricity computes and communicates, Lenovo is in a unique position on the device side to take advantage of the communications from Motorola and being one of the largest device companies in the world. But this year, we're also going to roll out a comprehensive set of edge gateways and ruggedized industrial servers and edge servers and ISP appliances for the edge and for IoT. So look for that as well. And then lastly, as a service, you're going to see Lenovo delivering hardware as a service, device as a service, infrastructure as a service, software as a service, and hardware as a service, not just as a glorified leasing contract, but with IP, we've developed true flexible metering capability that enables you to scale up and scale down freely and paying strictly based on usage, and we'll be having those announcements within this fiscal year. So Transform 2.0, lots to talk about, NetApp the big news of the day, but a lot more to come over the next year from the Data Center group. So in summary, I'm excited that we have a lot of customers that are going to be on stage with us that you saw in the video. Lots of testimonials so that you can talk to colleagues of yourself. Alamos Gold from Canada, a Canadian gold producer, Caligo for data optimization and privacy, SciNet, the largest supercomputer we've ever put into North America, and the largest in Canada at the University of Toronto will be here talking about climate change. City of Bogota again with our hyper-converged solutions around smart city putting in 3,000 cameras for criminal detection, license plate detection, et cetera, and then more from a channel mid market perspective, Jerry's Foods, which is from my home state of Wisconsin, and Minnesota which has about 57 stores in the specialty foods market, and how they're leveraging our IoT solutions as well. So again, about five times the number of demos that we had last year. So in summary, first and foremost to the customers, thank you for your business. It's been a great journey and I think we're on a tremendous role. You saw from last year, we're trying to build credibility with you. After the largest server portfolio, we're now the fastest-growing server OEM per Gardner, number one in performance, number one in reliability, number one in customer satisfaction, number one in supercomputing. Today, the largest storage portfolio in our history, with the goal of becoming the fastest growing storage company in the world, top three in China, multibillion-dollar collaboration with NetApp. And the transformation is going to continue with new edge gateways, edge servers, NFV solutions, telecommunications infrastructure, and hardware as a service with dynamic metering. So thank you for your time. I've looked forward to meeting many of you over the next day. We appreciate your business, and with that, I'd like to bring up Rod Lappen to introduce our next speaker. Rod? (audience applauding) >> Thanks, boss, well done. Alright ladies and gentlemen. No real secret there. I think we've heard why I might talk about the fourth Industrial Revolution in data and exactly what's going on with that. You've heard Kirk with some amazing announcements, obviously now with our NetApp partnership, talk about 5G, NFV, cloud, artificial intelligence, I think we've hit just about all the key hot topics. It's with great pleasure that I now bring up on stage Mr. Christian Teismann, our senior vice president and general manager of commercial business for both our PCs and our IoT business, so Christian Teismann. (techno music) Here, take that. >> Thank you. I think I'll need that. >> Okay, Christian, so obviously just before we get down, you and I last year, we had a bit of a chat about being in New York. >> Exports. >> You were an expat in New York for a long time. >> That's true. >> And now, you've moved from New York. You're in Munich? >> Yep. >> How does that feel? >> Well Munich is a wonderful city, and it's a great place to live and raise kids, but you know there's no place in the world like New York. >> Right. >> And I miss it a lot, quite frankly. >> So what exactly do you miss in New York? >> Well there's a lot of things in New York that are unique, but I know you spent some time in Japan, but I still believe the best sushi in the world is still in New York City. (all laughing) >> I will beg to differ. I will beg to differ. I think Mr. Guchi-san from Softbank is here somewhere. He will get up an argue very quickly that Japan definitely has better sushi than New York. But obviously you know, it's a very very special place, and I have had sushi here, it's been fantastic. What about Munich? Anything else that you like in Munich? >> Well I mean in Munich, we have pork knuckles. >> Pork knuckles. (Christian laughing) Very similar sushi. >> What is also very fantastic, but we have the real, the real Oktoberfest in Munich, and it starts next week, mid-September, and I think it's unique in the world. So it's very special as well. >> Oktoberfest. >> Yes. >> Unfortunately, I'm not going this year, 'cause you didn't invite me, but-- (audience chuckling) How about, I think you've got a bit of a secret in relation to Oktoberfest, probably not in Munich, however. >> It's a secret, yes, but-- >> Are you going to share? >> Well I mean-- >> See how I'm putting you on the spot? >> In the 10 years, while living here in New York, I was a regular visitor of the Oktoberfest at the Lower East Side in Avenue C at Zum Schneider, where I actually met my wife, and she's German. >> Very good. So, how about a big round of applause? (audience applauding) Not so much for Christian, but more I think, obviously for his wife, who obviously had been drinking and consequently ended up with you. (all laughing) See you later, mate. >> That's the beauty about Oktoberfest, but yes. So first of all, good morning to everybody, and great to be back here in New York for a second Transform event. New York clearly is the melting pot of the world in terms of culture, nations, but also business professionals from all kind of different industries, and having this event here in New York City I believe is manifesting what we are trying to do here at Lenovo, is transform every aspect of our business and helping our customers on the journey of intelligent transformation. Last year, in our transformation on the device business, I talked about how the PC is transforming to personalized computing, and we've made a lot of progress in that journey over the last 12 months. One major change that we have made is we combined all our device business under one roof. So basically PCs, smart devices, and smart phones are now under the roof and under the intelligent device group. But from my perspective makes a lot of sense, because at the end of the day, all devices connect in the modern world into the cloud and are operating in a seamless way. But we are also moving from a device business what is mainly a hardware focus historically, more and more also into a solutions business, and I will give you during my speech a little bit of a sense of what we are trying to do, as we are trying to bring all these components closer together, and specifically also with our strengths on the data center side really build end-to-end customer solution. Ultimately, what we want to do is make our business, our customer's businesses faster, safer, and ultimately smarter as well. So I want to look a little bit back, because I really believe it's important to understand what's going on today on the device side. Many of us have still grown up with phones with terminals, ultimately getting their first desktop, their first laptop, their first mobile phone, and ultimately smartphone. Emails and internet improved our speed, how we could operate together, but still we were defined by linear technology advances. Today, the world has changed completely. Technology itself is not a limiting factor anymore. It is how we use technology going forward. The Internet is pervasive, and we are not yet there that we are always connected, but we are nearly always connected, and we are moving to the stage, that everything is getting connected all the time. Sharing experiences is the most driving force in our behavior. In our private life, sharing pictures, videos constantly, real-time around the world, with our friends and with our family, and you see the same behavior actually happening in the business life as well. Collaboration is the number-one topic if it comes down to workplace, and video and instant messaging, things that are coming from the consumer side are dominating the way we are operating in the commercial business as well. Most important beside technology, that a new generation of workforce has completely changed the way we are working. As the famous workforce the first generation of Millennials that have now fully entered in the global workforce, and the next generation, it's called Generation Z, is already starting to enter the global workforce. By 2025, 75 percent of the world's workforce will be composed out of two of these generations. Why is this so important? These two generations have been growing up using state-of-the-art IT technology during their private life, during their education, school and study, and are taking these learnings and taking these behaviors in the commercial workspace. And this is the number one force of change that we are seeing in the moment. Diverse workforces are driving this change in the IT spectrum, and for years in many of our customers' focus was their customer focus. Customer experience also in Lenovo is the most important thing, but we've realized that our own human capital is equally valuable in our customer relationships, and employee experience is becoming a very important thing for many of our customers, and equally for Lenovo as well. As you have heard YY, as we heard from YY, Lenovo is focused on intelligent transformation. What that means for us in the intelligent device business is ultimately starting with putting intelligence in all of our devices, smartify every single one of our devices, adding value to our customers, traditionally IT departments, but also focusing on their end users and building products that make their end users more productive. And as a world leader in commercial devices with more than 33 percent market share, we can solve problems been even better than any other company in the world. So, let's talk about transformation of productivity first. We are in a device-led world. Everything we do is connected. There's more interaction with devices than ever, but also with spaces who are increasingly becoming smart and intelligent. YY said it, by 2020 we have more than 20 billion connected devices in the world, and it will grow exponentially from there on. And users have unique personal choices for technology, and that's very important to recognize, and we call this concept a digital wardrobe. And it means that every single end-user in the commercial business is composing his personal wardrobe on an ongoing basis and is reconfiguring it based on the work he's doing and based where he's going and based what task he is doing. I would ask all of you to put out all the devices you're carrying in your pockets and in your bags. You will see a lot of you are using phones, tablets, laptops, but also cameras and even smartwatches. They're all different, but they have one underlying technology that is bringing it all together. Recognizing digital wardrobe dynamics is a core factor for us to put all the devices under one roof in IDG, one business group that is dedicated to end-user solutions across mobile, PC, but also software services and imaging, to emerging technologies like AR, VR, IoT, and ultimately a AI as well. A couple of years back there was a big debate around bring-your-own-device, what was called consumerization. Today consumerization does not exist anymore, because consumerization has happened into every single device we build in our commercial business. End users and commercial customers today do expect superior display performance, superior audio, microphone, voice, and touch quality, and have it all connected and working seamlessly together in an ease of use space. We are already deep in the journey of personalized computing today. But the center point of it has been for the last 25 years, the mobile PC, that we have perfected over the last 25 years, and has been the undisputed leader in mobility computing. We believe in the commercial business, the ThinkPad is still the core device of a digital wardrobe, and we continue to drive the success of the ThinkPad in the marketplace. We've sold more than 140 million over the last 26 years, and even last year we exceeded nearly 11 million units. That is about 21 ThinkPads per minute, or one Thinkpad every three seconds that we are shipping out in the market. It's the number one commercial PC in the world. It has gotten countless awards but we felt last year after Transform we need to build a step further, in really tailoring the ThinkPad towards the need of the future. So, we announced a new line of X1 Carbon and Yoga at CES the Consumer Electronics Show. And the reason is not we want to sell to consumer, but that we do recognize that a lot of CIOs and IT decision makers need to understand what consumers are really doing in terms of technology to make them successful. So, let's take a look at the video. (suspenseful music) >> When you're the number one business laptop of all time, your only competition is yourself. (wall shattering) And, that's different. Different, like resisting heat, ice, dust, and spills. Different, like sharper, brighter OLA display. The trackpoint that reinvented controls, and a carbon fiber roll cage to protect what's inside, built by an engineering and design team, doing the impossible for the last 25 years. This is the number one business laptop of all time, but it's not a laptop. It's a ThinkPad. (audience applauding) >> Thank you very much. And we are very proud that Lenovo ThinkPad has been selected as the best laptop in the world in the second year in a row. I think it's a wonderful tribute to what our engineers have been done on this one. And users do want awesome displays. They want the best possible audio, voice, and touch control, but some users they want more. What they want is super power, and I'm really proud to announce our newest member of the X1 family, and that's the X1 extreme. It's exceptionally featured. It has six core I9 intel chipset, the highest performance you get in the commercial space. It has Nvidia XTX graphic, it is a 4K UHD display with HDR with Dolby vision and Dolby Atmos Audio, two terabyte in SSD, so it is really the absolute Ferrari in terms of building high performance commercial computer. Of course it has touch and voice, but it is one thing. It has so much performance that it serves also a purpose that is not typical for commercial, and I know there's a lot of secret gamers also here in this room. So you see, by really bringing technology together in the commercial space, you're creating productivity solutions of one of a kind. But there's another category of products from a productivity perspective that is incredibly important in our commercial business, and that is the workstation business . Clearly workstations are very specifically designed computers for very advanced high-performance workloads, serving designers, architects, researchers, developers, or data analysts. And power and performance is not just about the performance itself. It has to be tailored towards the specific use case, and traditionally these products have a similar size, like a server. They are running on Intel Xeon technology, and they are equally complex to manufacture. We have now created a new category as the ultra mobile workstation, and I'm very proud that we can announce here the lightest mobile workstation in the industry. It is so powerful that it really can run AI and big data analysis. And with this performance you can go really close where you need this power, to the sensors, into the cars, or into the manufacturing places where you not only wannna read the sensors but get real-time analytics out of these sensors. To build a machine like this one you need customers who are really challenging you to the limit. and we're very happy that we had a customer who went on this journey with us, and ultimately jointly with us created this product. So, let's take a look at the video. (suspenseful music) >> My world involves pathfinding both the hardware needs to the various work sites throughout the company, and then finding an appropriate model of desktop, laptop, or workstation to match those needs. My first impressions when I first seen the ThinkPad P1 was I didn't actually believe that we could get everything that I was asked for inside something as small and light in comparison to other mobile workstations. That was one of the I can't believe this is real sort of moments for me. (engine roars) >> Well, it's better than general when you're going around in the wind tunnel, which isn't alway easy, and going on a track is not necessarily the best bet, so having a lightweight very powerful laptop is extremely useful. It can take a Xeon processor, which can support ECC from when we try to load a full car, and when we're analyzing live simulation results. through and RCFT post processor or example. It needs a pretty powerful machine. >> It's come a long way to be able to deliver this. I hate to use the word game changer, but it is that for us. >> Aston Martin has got a lot of different projects going. There's some pretty exciting projects and a pretty versatile range coming out. Having Lenovo as a partner is certainly going to ensure that future. (engine roars) (audience applauds) >> So, don't you think the Aston Martin design and the ThinkPad design fit very well together? (audience laughs) So if Q, would get a new laptop, I think you would get a ThinkPad X P1. So, I want to switch gears a little bit, and go into something in terms of productivity that is not necessarily on top of the mind or every end user but I believe it's on top of the mind of every C-level executive and of every CEO. Security is the number one threat in terms of potential risk in your business and the cost of cybersecurity is estimated by 2020 around six trillion dollars. That's more than the GDP of Japan and we've seen a significant amount of data breach incidents already this years. Now, they're threatening to take companies out of business and that are threatening companies to lose a huge amount of sensitive customer data or internal data. At Lenovo, we are taking security very, very seriously, and we run a very deep analysis, around our own security capabilities in the products that we are building. And we are announcing today a new brand under the Think umbrella that is called ThinkShield. Our goal is to build the world's most secure PC, and ultimately the most secure devices in the industry. And when we looked at this end-to-end, there is no silver bullet around security. You have to go through every aspect where security breaches can potentially happen. That is why we have changed the whole organization, how we look at security in our device business, and really have it grouped under one complete ecosystem of solutions, Security is always something where you constantly are getting challenged with the next potential breach the next potential technology flaw. As we keep innovating and as we keep integrating, a lot of our partners' software and hardware components into our products. So for us, it's really very important that we partner with companies like Intel, Microsoft, Coronet, Absolute, and many others to really as an example to drive full encryption on all the data seamlessly, to have multi-factor authentication to protect your users' identity, to protect you in unsecured Wi-Fi locations, or even simple things like innovation on the device itself, to and an example protect the camera, against usage with a little thing like a thinkShutter that you can shut off the camera. SO what I want to show you here, is this is the full portfolio of ThinkShield that we are announcing today. This is clearly not something I can even read to you today, but I believe it shows you the breadth of security management that we are announcing today. There are four key pillars in managing security end-to-end. The first one is your data, and this has a lot of aspects around the hardware and the software itself. The second is identity. The third is the security around online, and ultimately the device itself. So, there is a breakout on security and ThinkShield today, available in the afternoon, and encourage you to really take a deeper look at this one. The first pillar around productivity was the device, and around the device. The second major pillar that we are seeing in terms of intelligent transformation is the workspace itself. Employees of a new generation have a very different habit how they work. They split their time between travel, working remotely but if they do come in the office, they expect a very different office environment than what they've seen in the past in cubicles or small offices. They come into the office to collaborate, and they want to create ideas, and they really work in cross-functional teams, and they want to do it instantly. And what we've seen is there is a huge amount of investment that companies are doing today in reconfiguring real estate reconfiguring offices. And most of these kind of things are moving to a digital platform. And what we are doing, is we want to build an entire set of solutions that are just focused on making the workspace more productive for remote workforce, and to create technology that allow people to work anywhere and connect instantly. And the core of this is that we need to be, the productivity of the employee as high as possible, and make it for him as easy as possible to use these kind of technologies. Last year in Transform, I announced that we will enter the smart office space. By the end of last year, we brought the first product into the market. It's called the Hub 500. It's already deployed in thousands of our customers, and it's uniquely focused on Microsoft Skype for Business, and making meeting instantly happen. And the product is very successful in the market. What we are announcing today is the next generation of this product, what is the Hub 700, what has a fantastic audio quality. It has far few microphones, and it is usable in small office environment, as well as in major conference rooms, but the most important part of this new announcement is that we are also announcing a software platform, and this software platform allows you to run multiple video conferencing software solutions on the same platform. Many of you may have standardized for one software solution or for another one, but as you are moving in a world of collaborating instantly with partners, customers, suppliers, you always will face multiple software standards in your company, and Lenovo is uniquely positioned but providing a middleware platform for the device to really enable multiple of these UX interfaces. And there's more to come and we will add additional UX interfaces on an ongoing base, based on our customer requirements. But this software does not only help to create a better experience and a higher productivity in the conference room or the huddle room itself. It really will allow you ultimately to manage all your conference rooms in the company in one instance. And you can run AI technologies around how to increase productivity utilization of your entire conference room ecosystem in your company. You will see a lot more devices coming from the node in this space, around intelligent screens, cameras, and so on, and so on. The idea is really that Lenovo will become a core provider in the whole movement into the smart office space. But it's great if you have hardware and software that is really supporting the approach of modern IT, but one component that Kirk also mentioned is absolutely critical, that we are providing this to you in an as a service approach. Get it what you want, when you need it, and pay it in the amount that you're really using it. And within UIT there is also I think a new philosophy around IT management, where you're much more focused on the value that you are consuming instead of investing into technology. We are launched as a service two years back and we already have a significant number of customers running PC as a service, but we believe as a service will stretch far more than just the PC device. It will go into categories like smart office. It might go even into categories like phone, and it will definitely go also in categories like storage and server in terms of capacity management. I want to highlight three offerings that we are also displaying today that are sort of building blocks in terms of how we really run as a service. The first one is that we collaborated intensively over the last year with Microsoft to be the launch pilot for their Autopilot offering, basically deploying images easily in the same approach like you would deploy a new phone on the network. The purpose really is to make new imaging and enabling new PC as seamless as it's used to be in the phone industry, and we have a complete set of offerings, and already a significant number customers have deployed Autopilot with Lenovo. The second major offering is Premier Support, like in the in the server business, where Premier Support is absolutely critical to run critical infrastructure, we see a lot of our customers do want to have Premier Support for their end users, so they can be back into work basically instantly, and that you have the highest possible instant repair on every single device. And then finally we have a significant amount of time invested into understanding how the software as a service really can get into one philosophy. And many of you already are consuming software as a service in many different contracts from many different vendors, but what we've created is one platform that really can manage this all together. All these things are the foundation for a device as a service offering that really can manage this end-to-end. So, implementing an intelligent workplace can be really a daunting prospect depending on where you're starting from, and how big your company ultimately is. But how do you manage the transformation of technology workspace if you're present in 50 or more countries and you run an infrastructure for more than 100,000 people? Michelin, famous for their tires, infamous for their Michelin star restaurant rating, especially in New York, and instantly recognizable by the Michelin Man, has just doing that. Please welcome with me Damon McIntyre from Michelin to talk to us about the challenges and transforming collaboration and productivity. (audience applauding) (electronic dance music) Thank you, David. >> Thank you, thank you very much. >> We on? >> So, how do you feel here? >> Well good, I want to thank you first of all for your partnership and the devices you create that helped us design, manufacture, and distribute the best tire in the world, okay? I just had to say it and put out there, alright. And I was wondering, were those Michelin tires on that Aston Martin? >> I'm pretty sure there is no other tire that would fit to that. >> Yeah, no, thank you, thank you again, and thank you for the introduction. >> So, when we talk about the transformation happening really in the workplace, the most tangible transformation that you actually see is the drastic change that companies are doing physically. They're breaking down walls. They're removing cubes, and they're moving to flexible layouts, new desks, new huddle rooms, open spaces, but the underlying technology for that is clearly not so visible very often. So, tell us about Michelin's strategy, and the technology you are deploying to really enable this corporation. >> So we, so let me give a little bit a history about the company to understand the daunting tasks that we had before us. So we have over 114,000 people in the company under 170 nationalities, okay? If you go to the corporate office in France, it's Clermont. It's about 3,000 executives and directors, and what have you in the marketing, sales, all the way up to the chain of the global CIO, right? Inside of the Americas, we merged in Americas about three years ago. Now we have the Americas zone. There's about 28,000 employees across the Americas, so it's really, it's really hard in a lot of cases. You start looking at the different areas that you lose time, and you lose you know, your productivity and what have you, so there, it's when we looked at different aspects of how we were going to manage the meeting rooms, right? because we have opened up our areas of workspace, our CIO, CEOs in our zones will no longer have an office. They'll sit out in front of everybody else and mingle with the crowd. So, how do you take those spaces that were originally used by an individual but now turn them into like meeting rooms? So, we went through a large process, and looked at the Hub 500, and that really met our needs, because at the end of the day what we noticed was, it was it was just it just worked, okay? We've just added it to the catalog, so we're going to be deploying it very soon, and I just want to again point that I know everybody struggles with this, and if you look at all the minutes that you lose in starting up a meeting, and we know you know what I'm talking about when I say this, it equates to many many many dollars, okay? And so at the end the day, this product helps us to be more efficient in starting up the meeting, and more productive during the meeting. >> Okay, it's very good to hear. Another major trend we are seeing in IT departments is taking a more hands-off approach to hardware. We're seeing new technologies enable IT to create a more efficient model, how IT gets hardware in the hands of end-users, and how they are ultimately supporting themselves. So what's your strategy around the lifecycle management of the devices? >> So yeah you mentioned, again, we'll go back to the 114,000 employees in the company, right? You imagine looking at all the devices we use. I'm not going to get into the number of devices we have, but we have a set number that we use, and we have to go through a process of deploying these devices, which we right now service our own image. We build our images, we service them through our help desk and all that process, and we go through it. If you imagine deploying 25,000 PCs in a year, okay? The time and the daunting task that's behind all that, you can probably add up to 20 or 30 people just full-time doing that, okay? So, with partnering with Lenovo and their excellent technology, their technical teams, and putting together the whole process of how we do imaging, it now lifts that burden off of our folks, and it shifts it into a more automated process through the cloud, okay? And, it's with the Autopilot on the end of the project, we'll have Autopilot fully engaged, but what I really appreciate is how Lenovo really, really kind of got with us, and partnered with us for the whole process. I mean it wasn't just a partner between Michelin and Lenovo. Microsoft was also partnered during that whole process, and it really was a good project that we put together, and we hope to have something in a full production mode next year for sure. >> So, David thank you very, very much to be here with us on stage. What I really want to say, customers like you, who are always challenging us on every single aspect of our capabilities really do make the big difference for us to get better every single day and we really appreciate the partnership. >> Yeah, and I would like to say this is that I am, I'm doing what he's exactly said he just said. I am challenging Lenovo to show us how we can innovate in our work space with your devices, right? That's a challenge, and it's going to be starting up next year for sure. We've done some in the past, but I'm really going to challenge you, and my whole aspect about how to do that is bring you into our workspace. Show you how we make how we go through the process of making tires and all that process, and how we distribute those tires, so you can brainstorm, come back to the table and say, here's a device that can do exactly what you're doing right now, better, more efficient, and save money, so thank you. >> Thank you very much, David. (audience applauding) Well it's sometimes really refreshing to get a very challenging customers feedback. And you know, we will continue to grow this business together, and I'm very confident that your challenge will ultimately help to make our products even more seamless together. So, as we now covered productivity and how we are really improving our devices itself, and the transformation around the workplace, there is one pillar left I want to talk about, and that's really, how do we make businesses smarter than ever? What that really means is, that we are on a journey on trying to understand our customer's business, deeper than ever, understanding our customer's processes even better than ever, and trying to understand how we can help our customers to become more competitive by injecting state-of-the-art technology in this intelligent transformation process, into core processes. But this cannot be done without talking about a fundamental and that is the journey towards 5G. I really believe that 5G is changing everything the way we are operating devices today, because they will be connected in a way like it has never done before. YY talked about you know, 20 times 10 times the amount of performance. There are other studies that talk about even 200 times the performance, how you can use these devices. What it will lead to ultimately is that we will build devices that will be always connected to the cloud. And, we are preparing for this, and Kirk already talked about, and how many operators in the world we already present with our Moto phones, with how many Telcos we are working already on the backend, and we are working on the device side on integrating 5G basically into every single one of our product in the future. One of the areas that will benefit hugely from always connected is the world of virtual reality and augmented reality. And I'm going to pick here one example, and that is that we have created a commercial VR solution for classrooms and education, and basically using consumer type of product like our Mirage Solo with Daydream and put a solution around this one that enables teachers and schools to use these products in the classroom experience. So, students now can have immersive learning. They can studying sciences. They can look at environmental issues. They can exploring their careers, or they can even taking a tour in the next college they're going to go after this one. And no matter what grade level, this is how people will continue to learn in the future. It's quite a departure from the old world of textbooks. In our area that we are looking is IoT, And as YY already elaborated, we are clearly learning from our own processes around how we improve our supply chain and manufacturing and how we improve also retail experience and warehousing, and we are working with some of the largest companies in the world on pilots, on deploying IoT solutions to make their businesses, their processes, and their businesses, you know, more competitive, and some of them you can see in the demo environment. Lenovo itself already is managing 55 million devices in an IoT fashion connecting to our own cloud, and constantly improving the experience by learning from the behavior of these devices in an IoT way, and we are collecting significant amount of data to really improve the performance of these systems and our future generations of products on a ongoing base. We have a very strong partnership with a company called ADLINK from Taiwan that is one of the leading manufacturers of manufacturing PC and hardened devices to create solutions on the IoT platform. The next area that we are very actively investing in is commercial augmented reality. I believe augmented reality has by far more opportunity in commercial than virtual reality, because it has the potential to ultimately improve every single business process of commercial customers. Imagine in the future how complex surgeries can be simplified by basically having real-time augmented reality information about the surgery, by having people connecting into a virtual surgery, and supporting the surgery around the world. Visit a furniture store in the future and see how this furniture looks in your home instantly. Doing some maintenance on some devices yourself by just calling the company and getting an online manual into an augmented reality device. Lenovo is exploring all kinds of possibilities, and you will see a solution very soon from Lenovo. Early when we talked about smart office, I talked about the importance of creating a software platform that really run all these use cases for a smart office. We are creating a similar platform for augmented reality where companies can develop and run all their argumented reality use cases. So you will see that early in 2019 we will announce an augmented reality device, as well as an augmented reality platform. So, I know you're very interested on what exactly we are rolling out, so we will have a first prototype view available there. It's still a codename project on the horizon, and we will announce it ultimately in 2019, but I think it's good for you to take a look what we are doing here. So, I just wanted to give you a peek on what we are working beyond smart office and the device productivity in terms of really how we make businesses smarter. It's really about increasing productivity, providing you the most secure solutions, increase workplace collaboration, increase IT efficiency, using new computing devices and software and services to make business smarter in the future. There's no other company that will enable to offer what we do in commercial. No company has the breadth of commercial devices, software solutions, and the same data center capabilities, and no other company can do more for your intelligent transformation than Lenovo. Thank you very much. (audience applauding) >> Thanks mate, give me that. I need that. Alright, ladies and gentlemen, we are done. So firstly, I've got a couple of little housekeeping pieces at the end of this and then we can go straight into going and experiencing some of the technology we've got on the left-hand side of the room here. So, I want to thank Christian obviously. Christian, awesome as always, some great announcements there. I love the P1. I actually like the Aston Martin a little bit better, but I'll take either if you want to give me one for free. I'll take it. We heard from YY obviously about the industry and how the the fourth Industrial Revolution is impacting us all from a digital transformation perspective, and obviously Kirk on DCG, the great NetApp announcement, which is going to be really exciting, actually that Twitter and some of the social media panels are absolutely going crazy, so it's good to see that the industry is really taking some impact. Some of the publications are really great, so thank you for the media who are obviously in the room publishing right no. But now, I really want to say it's all of your turn. So, all of you up the back there who are having coffee, it's your turn now. I want everyone who's sitting down here after this event move into there, and really take advantage of the 15 breakouts that we've got set there. There are four breakout sessions from a time perspective. I want to try and get you all out there at least to use up three of them and use your fourth one to get out and actually experience some of the technology. So, you've got four breakout sessions. A lot of the breakout sessions are actually done twice. If you have not downloaded the app, please download the app so you can actually see what time things are going on and make sure you're registering correctly. There's a lot of great experience of stuff out there for you to go do. I've got one quick video to show you on some of the technology we've got and then we're about to close. Alright, here we are acting crazy. Now, you can see obviously, artificial intelligence machine learning in the browser. God, I hate that dance, I'm not a Millenial at all. It's effectively going to be implemented by healthcare. I want you to come around and test that out. Look at these two guys. This looks like a Lenovo management meeting to be honest with you. These two guys are actually concentrating, using their brain power to race each others in cars. You got to come past and give that a try. Give that a try obviously. Fantastic event here, lots of technology for you to experience, and great partners that have been involved as well. And so, from a Lenovo perspective, we've had some great alliance partners contribute, including obviously our number one partner, Intel, who's been a really big loyal contributor to us, and been a real part of our success here at Transform. Excellent, so please, you've just seen a little bit of tech out there that you can go and play with. I really want you, I mean go put on those black things, like Scott Hawkins our chief marketing officer from Lenovo's DCG business was doing and racing around this little car with his concentration not using his hands. He said it's really good actually, but as soon as someone comes up to speak to him, his car stops, so you got to try and do better. You got to try and prove if you can multitask or not. Get up there and concentrate and talk at the same time. 62 different breakouts up there. I'm not going to go into too much detai, but you can see we've got a very, very unusual numbering system, 18 to 18.8. I think over here we've got a 4849. There's a 4114. And then up here we've got a 46.1 and a 46.2. So, you need the decoder ring to be able to understand it. Get over there have a lot of fun. Remember the boat leaves today at 4:00 o'clock, right behind us at the pier right behind us here. There's 400 of us registered. Go onto the app and let us know if there's more people coming. It's going to be a great event out there on the Hudson River. Ladies and gentlemen that is the end of your keynote. I want to thank you all for being patient and thank all of our speakers today. Have a great have a great day, thank you very much. (audience applauding) (upbeat music) ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ♪ ♪ Ba da bop bop bop ba do ♪

Published Date : Sep 13 2018

SUMMARY :

and those around you, Ladies and gentlemen, we ask that you please take an available seat. Ladies and gentlemen, once again we ask and software that transform the way you collaborate, Good morning everyone! Ooh, that was pretty good actually, and have a look at all of the breakout sessions. and the industries demand to be more intelligent, and the strategies that we have going forward I'm going to give you the stage and allow you to say is that the first products are orderable and being one of the largest device companies in the world. and exactly what's going on with that. I think I'll need that. Okay, Christian, so obviously just before we get down, You're in Munich? and it's a great place to live and raise kids, And I miss it a lot, but I still believe the best sushi in the world and I have had sushi here, it's been fantastic. (Christian laughing) the real Oktoberfest in Munich, in relation to Oktoberfest, at the Lower East Side in Avenue C at Zum Schneider, and consequently ended up with you. and is reconfiguring it based on the work he's doing and a carbon fiber roll cage to protect what's inside, and that is the workstation business . and then finding an appropriate model of desktop, in the wind tunnel, which isn't alway easy, I hate to use the word game changer, is certainly going to ensure that future. And the core of this is that we need to be, and distribute the best tire in the world, okay? that would fit to that. and thank you for the introduction. and the technology you are deploying and more productive during the meeting. how IT gets hardware in the hands of end-users, You imagine looking at all the devices we use. and we really appreciate the partnership. and it's going to be starting up next year for sure. and how many operators in the world Ladies and gentlemen that is the end of your keynote.

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Day One Wrap | Blockchain Futurist Conference 2018


 

>> Live from Toronto, Canada, it's theCUBE, covering Blockchain Futurist Conference 2018. Brought to you by theCUBE. >> Hello everyone and welcome back to theCUBE's exclusive coverage here in Toronto, Canada, in Ontario. We are here live breaking down what's going on in the Blockchain world. It's the Untraceables event here, Tracy and team doing a great job of Untraceable. They're putting on the Blockchain Futurist conference. This is about the future, bringing the industry together. All the luminaries are here; Bounds of Ethereum, Ackerson Ecosystem influencers, original gangsters- OGs-are here, of course theCube, we got 2018 coverage breaking it down, I'm John Furrier with Dave Vellante. Wrapping up day one Dave, I know you got to take off and head back on a flight home, let's break down and analyze what's going on in the industry. Yesterday we had the first annual ever, first inaugural Cloud and Blockchain summit, global Blockchain and Cloud summit, two worlds coming together. Here it's a little bit different this is all about cryptocurrency, it's all about blockchain. Big movements, speculators versus builders is my theme and everyone's recognizing the trend of price shifts billions lost in market gap that were gained last year but still some are up. But the focus is about entrepreneurship on a global scale, this is the focus here, right? It's a lot of VIPs, a lot of players coming together. I don't see people crying in their wine about the prices- although you can see it on Anthony Di Iorio's face, probably a setback or the Ethereum community on the price but still, the long game is what they're going after. Your thoughts and analysis? >> Well you definitely seeing a lot of talk about the boom and bust cycles. And we're hearing a lot from people -but by the way, there are a couple of guys who went big, maybe hedge fund guys or other fund guys that are taking a bath, maybe they got in big in January, December, not the best time to get in. So you are seeing some long faces there, but generally the sentiment is: hey, these boom and bust cycles they come and they go we've seen them before, now's the time to hunker down and innovate, execute, and figure out how to add substance and value. Now, first of all, I would say a couple things. One is those guys probably have... a store of fiat currency that they cashed out, number one, so they're feeling pretty good. Two is, the big difference to me John, is in 2018, crypto is much more in the mainstream news. You see it on CNBC, you see it in every medium po- every day you get a medium post, everybody's blogging about it, whereas obviously we've been blogging about bitcoin for five, six years but the mainstream media has picked up on it. >> Seven years. >> Seven years, there you go. So the mainstream media has picked up on it so it's much more front and center than it ever has been in the past. So I think that's a different dynamic. There seems to be still a lot of opportunistic sentiment, people are sanguine about the future and I think that's because we're seeing some real hardcore innovation going on in real use cases. Now, having said all that, the other scenario is there's just a lot of competition for quality projects, we're hearing too many coins out there, you're seeing all these ICOs tied to Ethereum in an oversupply right now, and you're clearly seeing that affect the price of Ethereum, which has dropped, on a percentage basis, much more than bitcoin. It's down considerably this year, whereas bitcoin actually is still up. Ethereum's trading about where it was last September, Bitcoin's up considerably since last September. So you know, a lot of cycles, a lot of instability still, but a lot of optimism. >> The bottom line for me is that the big question that's coming out of this event and this whole week here in Toronto is why do cryptocurrencies matter, the mass influence and adoption of Blockchain technology, where is that on the progress bar? This is the topic, and again, a lot of people that are "poo pooing" this revolution and I'm seeing on my Facebook feed all the time, "bitcoin's at zero," there's a lot of nonbelievers. Here's what I would say, here's my analysis. I think that the comparisons to the dot-com bubble with all the irrational exuberance that was part of that phase, this ICO phase, is crashing. No doubt about them. The ICOs in the United States are down, almost to nill. Certainly a lot of action going outside the United States, still unregulated, still wild, wild, east- or west depending how you call it. So yeah, that's happening and a lot of the bad stuff's being filtered out there's an emphasis on build which you mentioned. But here's the thing that no one might not see in the mainstream. During the dot-com bubble, there was all this companies that were started to it public and that was because the market wanted it. That's what happened with the cryptocurrency ICOs, the market wanted more products, then just manufactured it and then they realized, oh shit too many tokens. But if you look at the internet revolution, and I think this is the comparison with blockchain and crypto. You got blockchain technology, cryptocurrency, which is token economics are absolute gamechangers and the demand for that is very high and there are more people coming on every day in a mass adoption basis. The internet actually never stopped, if you looked at internet penetration rates, Mary Meeker would point out at Morgan Stanley, now she's at Kleiner Perkins, that the internet adoption rate of the internet during the bubble and then post-bubble continued to accelerate. That means more people got on the internet. So therefore the population of users became larger and larger every day. That really level-setted the reality that this was not a fad, not going away. I see blockchain and token economics having the same trajectory where there'll be more people adopting the technology then putting it into use than ever before. That's the tell sign. If that trend line continues to grow, the corrections will all take place, cycles will happen, but the entrepreneurs will follow the money, they're going to follow the user experience, they're going to follow the demand for opportunity. That to me is going to be the major tell sign. I think that's the general sentiment that I'm feeling here is screw the price of the tokens, yes there's too many tokens, clear out the dead wood, get back down to building companies, that's validated by the fact that there are more deals being done from a financing standpoint that are starting to look like traditional funding structures. Security tokens, equities, starting to see people talk and fundraising, lower rounds, not the big mega rounds. Money that's going to be around 7 to 30 million, 30 to 50, 50 to 100, 100 plus. This is going to be traditional structures, not the land grab utility token which gets you into the tailspin of basically managing coins distribution, managing all these things. There'll be a balance, but that's really kind of what's happening. >> So that's great analysis John, I would add to that that the fundamentals are still in place, blockchain attacks inefficiencies. Where there's a middle man and there's inefficiencies and there are waste, blockchain is being applied to attack those inefficiencies. I think the second thing is that new capital-raising vehicles have catalyzed massive investments and are catalyzing innovation and a whole new breed of developers. The third point is a global phenomemon. You don't have to be in Silicon Valley, or New York City, or Boston, or Austin, in the United states, or from an Ivy League school, it's happening around the world, you're seeing non-US countries and island countries invite developers in, giving them tax havens, and as a result, it's becoming much more of a global phenomenon than a lot of the internet startups were. There are a lot of adoption barriers. I mean you have the cyclicality and the volatility, you've got industries that are essentially entrenched: financial services, healthcare, lots of defense and aerospace industries, very much entrenched, it's going to take a long time for that collaboration to come together. And you also have a lot of scams. >> Yeah >> There's going to be a shake out, we predicted that I think in February in the Bahamas, we predicted the flight to quality, people are trying to figure out where that quality is right now. And to your point, you're also seeing more hybrid models, more traditional equity models combined with token models, and that's not a surprise. You're going to see more and more of that as a hedge. The token model still gives people the potential for liquidity, and as long as that fundamental remains in place, I think that dynamic will- is here to stay. >> And also, you and I have seen many cycles of innovation you talk about in the industry, many waves. The people that we talked to that have been through multiple waves like Brailey Rodder, (mumbles) and others, experience, they all know what's going on. The difference here that I think is interesting is that the smart contrast, the flight to quality, the companies that have buildable products, are going to get the attention. Now the difference now in this community that I think is interesting that makes the funding dynamic different is you have now community dynamics. You've got open source software, Cloud computing, and new technology with new capital formation dynamics. I think those three things are the perfect storm of innovation that's being overlooked. and the interplay between that is going to give us a look and feel of an industry that we've never seen before. So we can compare and contrast waves "oh, BC, Client-Server, blah blah blah," I don't think this is going to look like any of those waves, it's going to look different. And that's going to be really the shake out between the pundits who claim they know what's going on, or... predictions whatnot. Talking to the people, putting the ear to the ground in the communities, that's key. And for the companies, the ones that are going to win are the ones that can build community, tap into communities, and grow communities because they're now part of the ecosystem. It's not just selling products to them, they got to be a bidirectional, symbiotic relationship between communities at large, in this ecosystem. I think these are going to be new dynamics they're going to be- impact valuation, it's going to impact time to market, time to value, and ultimately give the entrepreneurs and the investors what they need, which is good outcomes in the process. >> You know it's interesting you were saying about the waves. And the waves in the past, and certainly looking back, were quite easy to identify, they tended to be architectural, you know centralized mainframe, and they went to client server, then you went to the sort of public internet, and then this cloud of remote services. The next wave is maybe not ... blatantly architectural, but it's this blending of digital services that's ubiquitous across all industries. And I think the key is, there's an automation layer on top of these digital services, which is powered by AI and machine intelligence, machine learning, and deep learning, and blockchain is part of that automation layer. And people are building new businesses on top of that and disrupting existing industries. I think there's no industry that's safe from disruption as I put it before, there are some entrenched, high-risk industries like financial services, healthcare, defense, aerospace, education, that are going to take longer but ultimately there's waste in all of those businesses and I will say I think a lot of the incumbents are going to hop on this trend and do very well picking up blockchain and defending against the disruptors. Not all will make it, but a lot of the big guys are going to put some serious resources into this and they're going to lead in to blockchain in a big way. >> Yeah and just to kind of wrap up, I think you're the fact that what we're seeing here is that engineering-led dynamics are happening, blockchain's going to lay down the plumbing, it's got to be stable, desensualized applications over the top with token economics is the business model of innovation. We got technology theater booming with innovation with engineering-led initiatives, that's got to accelerate, that's infrastructure, that's got to be more cloud-like, that's got to be much more stable, that's got to get laid down, got to put the roads down if you will, and then the business model innovation coming from the software this is the game changer so you're looking at all the smart money, smart money is saying okay, we see guys building product, let's see some unique IP, let's see some token economics that are nobel and different for what's happening, that to me is going to be the new investor algorithm if you will, for vetting. And it's been that way in a way, the smart money follows the smart engineers, what are you building? And then they vet that with other stands so again, big engineering-led focus. >> So what would you do now- okay, soyou were hearing this week, too many damn tokens, everything's tied to Ethereum, most ICOs, what would you do now if you're an entrepreneur, you have an idea, you have a potential to build a community, where would you focus, would you just try to float another token? Would you go overseas? What would you do in that situation? >> I would look at the regulatory frameworks as a way, as a guidepost to risk management, right. I think you're going to see some regulatory regimes try to manage the bridge between slow changing, old guard, to new fast, and loose. Crypto-'Cause look at it. It's fast and loose, but there's real people that are working on it. I would focus on the real people that have builders, I'd look at the mechanisms where they're domiciling, and what they do with the economics or the tokens. One thing I will tell you that is that, as an entrepreneur, this is like, a golden rule, your focus is everything: focus, focus, focus. If you're focused on managing distribution of coins, and the arbitrage of coin pricing, that takes away form the focus of engineering and building. I think that's going to be an easy binary test for an investor to say, "what are these guys working on?" Is the token working for the venture, or is the venture working for the token? That is a fundamental mindset, if that is... Not in the right position, it should be: the token works for the venture, not the venture working for the token. That to me, I would run for the hills, if I see someone working for the token, I'd say, "I don't want to fly at all at that deal." Because you could maybe pass up some money right in the short term, but you're going to miss the long game. That's the way I look at it. >> And again, I would add to that, I mean, yeah, okay, so there are a bunch of crypto-billionaires that got minted, and they got in early and good for them, but that doesn't mean there's not more opportunities. And when I think of a company like Dell Michael Dell wasn't the first in PC's, you know? Compact was the first, you know, Rod Canion, the back of the napkin, that urban legend. But what Michael Dell did is he improved on the system. He took inefficiencies out of the supply chain, and became the dominant player! So first move advantage, yes, okay, great, you missed being a billionaire potentially. But the wave tends to get bigger after the market matures. And as a result, I think my focus would be on building, to your theme, building that community, demonstrating value, and then, eventually, I think you're going to be able to use Block Chain, Crypto currencies, tokenization, crypto economics to power your business. But figure out a way to actually execute today and prove value; that's what I would do. >> Again, all great stuff, great analysis, Dave, Good to see you here, where again: this is theCUBE's coverage in Toronto for Block Chain Futurist Conference. Again, this is part of our 2018 initiating coverage of the Block Chain Industry with our video presence. Engaging the community is an upstream content project sharing the data with you, so you can make your decisions, and understand who to connect with. That's our model, we're going to do it. We've been covering BitCoin and Block Chain since 2011, on siliconangle.com, that's our journalism site. Go to theCUBE.net, that's where we have all the videos, and soon to be our CUBE token coming out, be part of our network. Join our community if you wannna get engaged, we're happy to have you. Thanks for watching Day 1 of the Futurist Conference here in Toronto, Ontario. Thanks for watching.

Published Date : Aug 15 2018

SUMMARY :

Brought to you by theCUBE. about the prices- although you can see it in January, December, not the best time to get in. seeing that affect the price of Ethereum, The ICOs in the United States are down, almost to nill. it's happening around the world, There's going to be a shake out, we predicted that that the smart contrast, the flight to quality, And the waves in the past, and certainly looking the new investor algorithm if you will, for vetting. and the arbitrage of coin pricing, and became the dominant player! of the Block Chain Industry with our video presence.

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Joe Mohen, Chimes | Blockchain Unbound 2018


 

>> Announcer: Live from San Juan, Puerto Rico, it's theCUBE, covering Blockchain Unbound. Brought to you by Blockchain Industries. (Caribbean music) >> Welcome back, everyone. We're here for exclusive CUBE coverage in Puerto Rico for Blockchain Unbound, a great conference where entrepreneurs and leaders are all here, coming together at a global level. You've got investors, you've got entrepreneurs, you've got the ecosystem developing. We've got it covered for you, I'm John Furrier, your host of theCUBE. Next guest, Joe Mohen, CEO of Chimes, industry executive, a lot of experience doing an ICO, doing some great work, Joe welcome to theCUBE. >> Thank you, it's a pleasure to be here. >> So, tell us first what Chimes is doing. You've got an interesting approach with music. What are you guys doing? Is there an ICO in the future? Have you done an ICO? Give the quick update. >> Okay, sure. Chimes is a digital media company, and we are consolidating music-related search results on Google in a similar way to what Amazon did with IMDB, consolidating film and television results many years ago. Amazon built an audience of about quarter of a billion to half a billion monthly users, and we expect we can create an audience on that order of magnitude over time. Just like IMDB is the third largest entertainment website in the world, it is our objective to create the fourth largest one. >> What's the value proposition there? Acquire audience, use that audience to tokenize? How does the token economics fit into all this? >> Well, first, like any media company, the first thing you have to get is an audience, right? I remember I interviewed for a job at CBS when I was out of college, and in the interview they said, "Do you know what we make here?" And I said, "You make TV shows." They go, "No, we make audiences." So we have to make an audience with a good product. The audience will be driven primarily by search, okay? But we also do have a double ICO in our future. First, we monetize the big audience. You can monetize with advertising, but that's not enough to make big money anymore, right, we all know that. So we have a layer of crypto products over and above that that we're going to be launching, including, for example, inter-country commerce, hiring producers in another country, hiring songwriters, et cetera, but automating that so we can do it on scale with smart contract. So we are creating a micro-currency that we can use on the website. We're doing an ICO for that but that's not for the purpose of raising capital. >> That's more part of the business model. >> That's part of the business model. >> That's not the financial aspect of it. >> Correct, and that's done so we can scale international commerce with automation. We're doing an actual ICO for the equity, for securities tokens as well. I've done a full IPO myself. My first company, I had Microsoft and Novell as my shareholders and it was a full S1, full registration. >> Interviewer: You went through the whole process. >> Yeah, but I also did a Form 10 once, ten years ago, for another reason. So what we're doing is possibly the first, certainly one of the first, but I think the first registration with the SEC of a company actually doing an ICO. And we're doing that using, I don't want to call it a loophole in securities laws, but there is a provision in the 1934 Securities Act called Section 12G. And what this does is it allows us basically to go public by telling the SEC we're doing it without having to delay it to wait for their permission. A Form 10 looks just like an S1, but when you file it, it's automatically effective 60 days after you file it, period. And so what we're doing is-- >> Period, full stop, no issues, no questions. >> Joe: No issue, right. >> So do you have to fill out all the same paperwork, the S1, >> Correct. >> the normal format, do the business plan, the normal paperwork? >> Joe: No, right, in 1930-- >> But there's no comments coming back? You just chip it to them? >> Comments come back and you have to clear them, just like with a prospectus, just like with an S1, however that doesn't delay it becoming effective. It's effective 60 days later. >> So they can be commenting during the 60 day time clock going on, but after 60 days, you're in. >> It's effective. So we'll continue to clear comments, but the thing is, with tokens, who knows how long that'll take? Is the SEC going to shepherd something through with crypto, or are they going to make it take five years? I don't know! Who knows? So, the thing is, we are complying with all of the laws for registration, but 60 days after we file it, it's effective. What we're doing is, in the pre-sale for the tokens, we're not issuing the tokens themselves to the buyers of the pre-sale for six months. The reason for that is they will have met the statutory holding period. So once the Form 10 is effective, those buyers can sell freely on token exchanges-- >> And what's the statutory holding period, six months? >> Generally six months. There's a few exceptions for affiliates, like an insider like me. >> I'm confused, a holding period kicks in before or after six months? >> After six months, the statutory holding period is satisfied. >> So you're going to wait to delay them anyway six months. >> Joe: Yes. >> So that covers the holding period. >> Correct, and then we file the Form 10, and 60 days later, they can trade and anybody can buy them. >> So do you file a Form 10 before the six month holding period? >> It'll be at about the same time. The reason being is because we have to get all the ducks in a row to be a public company. >> Cutting edge advice here, this is fantastic. So you're basically going to be the first ICO that actually files with the SEC. >> Correct. >> I mean, who does that, nobody. You! >> Watch us! >> John: That's awesome. >> Basically, we're using a provision, it's like we went back in time to 1934, got them to put something in the 1934 Securities Act for the purposes of ICO's, and then we came back to 2018 with the time machine-- >> Are you from the future? Back to the future! You went back and jerry rigged it. Hey, we should put this Form 10 in there! >> Joe: There you go! That's right. >> It could come in handy some day during the crypto bubble. >> Joe: That's right. >> So let's back to the cryptocurrency thing. I think you're onto something that I think is a tell sign that I haven't seen yet. I've been seeing some formation of it. You are using two types of tokens. Your business model is do security token for funding, trade that puppy through the Form 10. Utility token, a separate ICO for the product, and that's going to have one token, two tokens? >> There's one utility token, so to speak, one currency token, and that has its own regulations that you have to manage to also. But that's designed to appreciate, but not to go up 17 times. >> Okay, I want to dig into that for a second, because you mentioned scale. You're going to scale your business model with the utility token. That's the purpose of the utility token. So let's get into how you're going to do these smart contracts. Let's just say that a producer in Europe somewhere, in Italy, says, "Hey, I'm going to do something "with Joe in the UK." And they form a collaboration. >> Joe: That's right. >> Do they use that utility token or a new token gets created? >> No, that utility token. It's called a Chime, the Chime token. And what happens with that token is you can build in the contract administration through the token. Right now, you can do international deals. People do them every day. The difficulty is if you've got an audience of a half a billion people a month, for example, to do that on scale and automate it... Right now, if you do a deal with somebody in Japan, you, the American, has to have an American lawyer and a Japanese lawyer. And if there's a dispute, good luck suing. I, one time, a customer in Hong Kong, owed me a million and a half bucks and he's like, "Sue me." I'm in New York, he's in Hong Kong, and good luck. >> Did you do the New York thing? I'm flying over there and going to break your legs! >> We bitched and complained, threatened them, and ultimately we settled on 30 cents on the dollar, so we did, that's exactly what happened. With a situation like this, with smart contracts, neither side has to hire two sets of lawyers in the other country-- >> So Chime takes care of that. You want Chime to take care of that administrative inefficiency? >> Correct. The company might still get involved in administering exceptions but not everyone single one. What the smart contract does is it allows you to scale international business. The key is international business, and that's a new efficiency into the market, and that's a great-- >> And in the business model, what does that scale mean to you for operationalizing it? More people, do you have to hire them? >> More cash. No, less people and more cash because there's more automation, right? It means more software development-- >> Where's the cash coming from? >> We have a lot of revenue products. Like the obvious, like every other website, we have subscription revenue and advertising revenue. Subscription revenue comes from like... You know how IMDB is the LinkedIn of the TV and film business? So we'll have that too. >> It's not really large, though. It can be. >> Amazon could make it larger if they wanted to. They have their reasons for doing it the way they do it. But, in our case, I'll give you an example of some revenue products. Let's say you want to crowdfund a project. So let's say you want a bunch of Taylor Swift fans to crowdfund a project for her to do a duet with Kanye West. Sounds preposterous, but it's goofy enough. You'd be amazed, Stormy Daniels is crowdfunding a project for her legal bills with Donald Trump, and I betcha it's going to get funded, right? >> John: I would agree. >> So there's a lot of nutty stuff that gets crowdfunded. >> The wisdom of the crowd is actually efficient. >> Yes, that's right, and the whims of the crowd. But also, I'll give you another example. Let's say people want, if they go to a webpage about an artist, the band All American Rejects, for example, and Wheeler, one of the band members... Ten years ago, you could have given your niece a gift of a CD of All American Rejects. Well, good luck now. They wouldn't even know what a CD is in many cases, right? But what you could do is say, "Hey, you know what? "I'll give you a gift of a Google Hangouts chat with him, "And I'll pay $200 for that, or $500 for it." >> It's probably a bot, but anyway, how do you make this happen? This is really important. You're creating value by allowing people to collaborate in a way that's different, so that scales. Is that going to be done in the Chime contract or it's all going to be part of one currency? >> One currency, that's right. We're very careful. We brought in as an advisor, Rod Garrett, who gave one of the keynotes here yesterday. Rod Garrett is the money supply economist from UCSB, but he was also former VP of the New York Fed, he was the leader at the New York Fed for cryptocurrency. Rod is one of the smartest people I've ever met. >> You know him? >> Very well now, and you know what, Rod can explain the most complex things in simple words, which means he actually understands them. So we've actually used Fisher's equation to help model the utility token value over time. And, again, it's designed to appreciate, but we don't want nutty appreciation because then it'll be useless as a currency, right? We have fixed supply, the Bitcoin principle, the fixed supply and stable market so we can keep it reasonably stable. >> You're using the utility token to create value on your network so the creators can capture that value. >> Correct. >> That's what you're doing with the utility. The security is the money making side. How are you backing the security token, with equity or cash flow? >> Equity, and very important, really important, if you did a percentage of revenue or royalties, it wouldn't work, and I'll tell you why. It wouldn't scale, because we're looking five years out, 10 years out, for this to be a good investment. We want investors to buy it. And if you, let's say you need to do a secondary, because an acquisition becomes available, because you're low on money or whatever. Then how do you do a secondary if you've already given away 20% of your revenue to token holders. What if you have to do a secondary or tertiary capital round? How many rounds were necessary for Spotify, I happen to know Spotify, it was six, right? Facebook, Google, how many founds of financing did they do? A lot, and by the way, they still might do more. >> So basically the revenue share is hair on the deal. It really puts a lot of hair on the deal. >> Destroys it, in my opinion, destroys it. It's a dressing thing, but look, if you're really going to grow to a major company and have, be it five or 10 year success, it kills it. This is my opinion. >> What percentage of equity, say they're going to do a 50 million dollar raise, hard cap, soft cap, say 25, that's what seems to be the norm right now, what would be a percentage of equity converting to tokens that you'd see? >> In Chimes' case, we have a Common A class of stock. We're creating a preferred class of stock called a Series T which, if fully sold, would be about 43% of the equity of the company. They had to do it preferred stock, because there's too many, in Delaware Corporate Law, which all the tech companies are all Delaware, common stock would be very difficult to make a token. You can do whatever you want with preferred. So the preferred is more flexible, so it's actual equity, actual shares, it's not a derivative, it's not a rev share, it's not a royalty, it's actual equity. >> It's paper that converts nicely and it scales on the business side. >> So you say, "What's the evaluation?" >> We're selling 100 million dollars worth of the equity, or we're offering 100 million dollars of the equity, the pre-sale evaluation is a little over 200 million. In Chimes' cases, that's because we're not a startup, we're an early stage company. >> How old is the company? >> Pardon me? >> How old is the company? >> Three and a half years. >> So you weren't born yesterday. >> We acquired music databases that were built at a cost of tens of millions of dollars in Europe, funded by the richest guy in Europe, who built it out and then got tired of it, tired of funding it, and then we were able to pick it up basically for equity deals. We picked it up and we're buying a second music database also that's a very big one. So it's not like we're a startup with an idea and a business plan. >> No, you've got assets, and you've got momentum, good management, you obviously know what you're doing. It's awesome. You've got a great scalability mindset. You've got a nicely packaged, clear target. >> That's right, so we're probably a little bit different than a lot of crypto startups, in that, a lot of brilliant entrepreneurs that you see here, but we've been around the block with having to do IPO's, having to do exits, having to do... And you know, I'm a contrarian, right? I was getting a lot of advice yesterday from a lot of really smart people saying, "Hey, raise the money overseas through a foundation." >> "Everyone's doing it!" >> Look, I'm going to take a contrarian approach. >> I'm just going to comply with the law, by doing the registration. And they say, "What if your utility token has to comply "with money transfer laws?" Then we'll comply with them! It's like look, the contrarian approach is, whatever the law is, follow it! It gives us the flex-- >> The thing is you're actually doing what they want you to do, notifying them of what you're doing, and you have a utility! >> By separating out the token into two, one that has the attributes of currency, one that has the attributes of an equity, neither one is screwing up the other. >> I agree, that's really smart, and very novel. A lot of smart people are going down that road because it's actually known things people can understand. Security token is paperwork that you can do. >> Yes, but I'll tell you the other thing that feels very important, a pretty important point to make. By doing registration, the resale can go to anybody. My personal opinion, is you know these second market type of approaches that you can only resale them to accredited investors or to foreign investors or whatever, I think that's mistake. I think what happens is people who take that approach are going to find that the resale value of the token, or the token that has securities is going to be about 10% of what it would have been otherwise. >> If they only do accredited? >> Well yeah, because here's the thing. First, it's not only that they got to be accredited-- >> How do you get around the security token? >> Because it's registered. The waitress working the bar here can buy a publicly traded equity if it's registered, right? She can buy a publicly traded token-- >> That's the Form 10 that you were talking about. >> Right, Form 10 registers the company. The initial batch of trading will be done under 144 because the token holds will evolve over six months, so they can sell them at their leisure, right? There are exceptions, by the way, like an affiliate might have to do some form filing. I would have to file a Form 3, you know, the usual stuff. But, a regular token investor, he can do whatever he wants. And I can call them investors. I can do business in the United States. I don't have to pretend I'm domiciled in a country you've never heard of, right? So it's like look, I'm an American, my staff is mostly American, we do business in America, let's follow American law instead of-- >> Joe, this is a great conversation. We're getting down and dirty under the hood, capital structure, business models, Chimes' really interesting approach. Joe, thanks for sharing that great data here on theCUBE. Section 12G of the 1934 Securities Act. Form 10 is the secret weapon that was built by aliens before us to allow us to get this special clause in there for crypto. I'd love to continue this conversation another time. I think there's four or five things we just identified, great great topics, thanks for sharing. It's theCUBE's coverage here in Puerto Rico, I'm John Furrier, we'll be back with more after this short break. (digital jingle)

Published Date : Mar 17 2018

SUMMARY :

Brought to you by Blockchain Industries. a lot of experience doing an Give the quick update. in the world, it is for the purpose of raising capital. We're doing an actual ICO for the equity, Interviewer: You went in the 1934 Securities Act Period, full stop, you have to clear them, during the 60 day time clock Is the SEC going to shepherd There's a few exceptions for affiliates, After six months, the statutory So you're going to wait to the Form 10, and 60 days later, the ducks in a row to be a public company. going to be the first ICO I mean, who does that, nobody. Back to the future! Joe: There you go! some day during the crypto bubble. ICO for the product, that you have to manage to also. "with Joe in the UK." in the contract administration in the other country-- of that administrative inefficiency? What the smart contract does is it allows because there's more automation, right? of the TV and film business? It's not really large, though. doing it the way they do it. stuff that gets crowdfunded. The wisdom of the crowd and Wheeler, one of the band members... in the Chime contract VP of the New York Fed, Rod can explain the most can capture that value. The security is the money making side. A lot, and by the way, So basically the revenue to a major company and have, of the equity of the company. and it scales on the business side. dollars of the equity, funded by the richest guy in Europe, good management, you obviously "Hey, raise the money overseas Look, I'm going to take It's like look, the one that has the attributes of currency, paperwork that you can do. or the token that has they got to be accredited-- if it's registered, right? That's the Form 10 that I can do business in the United States. Section 12G of the 1934 Securities Act.

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Lenovo Transform 2017 Keynote


 

(upbeat techno music) >> Announcer: Good morning ladies and gentlemen. This is Lenovo Transform. Please welcome to the stage Lenovo's Rod Lappin. (upbeat instrumental) >> Alright, ladies and gentlemen. Here we go. I was out the back having a chat. A bit faster than I expected. How are you all doing this morning? (crowd cheers) >> Good? How fantastic is it to be in New York City? (crowd applauds) Excellent. So my name's Rod Lappin. I'm with the Data Center Group, obviously. I do basically anything that touches customers from our sales people, our pre-sales engineers, our architects, et cetera, all the way through to our channel partner sales engagement globally. So that's my job, but enough of that, okay? So the weather this morning, absolutely fantastic. Not a cloud in the sky, perfect. A little bit different to how it was yesterday, right? I want to thank all of you because I know a lot of you had a lot of commuting issues getting into New York yesterday with all the storms. We have a lot of people from international and domestic travel caught up in obviously the network, which blows my mind, actually, but we have a lot of people here from Europe, obviously, a lot of analysts and media people here as well as customers who were caught up in circling around the airport apparently for hours. So a big round of applause for our team from Europe. (audience applauds) Thank you for coming. We have some people who commuted a very short distance. For example, our own server general manager, Cameron (mumbles), he's out the back there. Cameron, how long did it take you to get from Raleigh to New York? An hour-and-a-half flight? >> Cameron: 17 hours. >> 17 hours, ladies and gentleman. That's a fantastic distance. I think that's amazing. But I know a lot of us, obviously, in the United States have come a long way with the storms, obviously very tough, but I'm going to call out one individual. Shaneil from Spotless. Where are you Shaneil, you're here somewhere? There he is from Australia. Shaneil how long did it take you to come in from Australia? 25 hour, ladies and gentleman. A big round of applause. That's a pretty big effort. Shaneil actually I want you to stand up, if you don't mind. I've got a seat here right next to my CEO. You've gone the longest distance. How about a big round of applause for Shaneil. We'll put him in my seat, next to YY. Honestly, Shaneil, you're doing me a favor. Okay ladies and gentlemen, we've got a big day today. Obviously, my seat now taken there, fantastic. Obviously New York City, the absolute pinnacle of globalization. I first came to New York in 1996, which was before a lot of people in the room were born, unfortunately for me these days. Was completely in awe. I obviously went to a Yankees game, had no clue what was going on, didn't understand anything to do with baseball. Then I went and saw Patrick Ewing. Some of you would remember Patrick Ewing. Saw the Knicks play basketball. Had no idea what was going on. Obviously, from Australia, and somewhat slightly height challenged, basketball was not my thing but loved it. I really left that game... That was the first game of basketball I'd ever seen. Left that game realizing that effectively the guy throws the ball up at the beginning, someone taps it, that team gets it, they run it, they put it in the basket, then the other team gets it, they put it in the basket, the other team gets it, and that's basically the entire game. So I haven't really progressed from that sort of learning or understanding of basketball since then, but for me, personally, being here in New York, and obviously presenting with all of you guys today, it's really humbling from obviously some of you would have picked my accent, I'm also from Australia. From the north shore of Sydney. To be here is just a fantastic, fantastic event. So welcome ladies and gentlemen to Transform, part of our tech world series globally in our event series and our event season here at Lenovo. So once again, big round of applause. Thank you for coming (audience applauds). Today, basically, is the culmination of what I would classify as a very large journey. Many of you have been with us on that. Customers, partners, media, analysts obviously. We've got quite a lot of our industry analysts in the room. I know Matt Eastwood yesterday was on a train because he sent a Tweet out saying there's 170 people on the WIFI network. He was obviously a bit concerned he was going to get-- Pat Moorhead, he got in at 3:30 this morning, obviously from traveling here as well with some of the challenges with the transportation, so we've got a lot of people in the room that have been giving us advice over the last two years. I think all of our employees are joining us live. All of our partners and customers through the stream. As well as everybody in this packed-out room. We're very very excited about what we're going to be talking to you all today. I want to have a special thanks obviously to our R&D team in Raleigh and around the world. They've also been very very focused on what they've delivered for us today, and it's really important for them to also see the culmination of this great event. And like I mentioned, this is really the feedback. It's not just a Lenovo launch. This is a launch based on the feedback from our partners, our customers, our employees, the analysts. We've been talking to all of you about what we want to be when we grow up from a Data Center Group, and I think you're going to hear some really exciting stuff from some of the speakers today and in the demo and breakout sessions that we have after the event. These last two years, we've really transformed the organization, and that's one of the reasons why that theme is part of our Tech World Series today. We're very very confident in our future, obviously, and where the company's going. It's really important for all of you to understand today and take every single snippet that YY, Kirk, and Christian talk about today in the main session, and then our presenters in the demo sections on what Lenovo's actually doing for its future and how we're positioning the company, obviously, for that future and how the transformation, the digital transformation, is going ahead globally. So, all right, we are now going to step into our Transform event. And I've got a quick agenda statement for you. The very first thing is we're going to hear from YY, our chairman and CEO. He's going to discuss artificial intelligence, the evolution of our society and how Lenovo is clearly positioning itself in the industry. Then, obviously, you're going to hear from Kirk Skaugen, our president of the Data Center Group, our new boss. He's going to talk about how long he's been with the company and the transformation, once again, we're making, very specifically to the Data Center Group and how much of a difference we're making to society and some of our investments. Christian Teismann, our SVP and general manager of our client business is going to talk about the 25 years of ThinkPad. This year is the 25-year anniversary of our ThinkPad product. Easily the most successful brand in our client branch or client branch globally of any vendor. Most successful brand we've had launched, and this afternoon breakout sessions, obviously, with our keynotes, fantastic sessions. Make sure you actually attend all of those after this main arena here. Now, once again, listen, ask questions, and make sure you're giving us feedback. One of the things about Lenovo that we say all the time... There is no room for arrogance in our company. Every single person in this room is a customer, partner, analyst, or an employee. We love your feedback. It's only through your feedback that we continue to improve. And it's really important that through all of the sessions where the Q&As happen, breakouts afterwards, you're giving us feedback on what you want to see from us as an organization as we go forward. All right, so what were you doing 25 years ago? I spoke about ThinkPad being 25 years old, but let me ask you this. I bet you any money that no one here knew that our x86 business is also 25 years old. So, this year, we have both our ThinkPad and our x86 anniversaries for 25 years. Let me tell you. What were you guys doing 25 years ago? There's me, 25 years ago. It's a bit scary, isn't it? It's very svelte and athletic and a lot lighter than I am today. It makes me feel a little bit conscious. And you can see the black and white shot. It shows you that even if you're really really short and you come from the wrong side of the tracks to make some extra cash, you can still do some modeling as long as no one else is in the photo to give anyone any perspective, so very important. I think I might have got one photo shoot out of that, I don't know. I had to do it, I needed the money. Let me show you another couple of photos. Very interesting, how's this guy? How cool does he look? Very svelte and athletic. I think there's no doubt. He looks much much cooler than I do. Okay, so ladies and gentlemen, without further ado, it gives me great honor to obviously introduce our very very first guest to the stage. Ladies and gentlemen, our chairman and CEO, Yuanqing Yang. or as we like to call him, YY. A big round of applause, thank you. (upbeat techno instrumental) >> Good morning everyone. Thank you, Rod, for your introduction. Actually, I didn't think I was younger than you (mumbles). I can't think of another city more fitting to host the Transform event than New York. A city that has transformed from a humble trading post 400 years ago to one of the most vibrant cities in the world today. It is a perfect symbol of transformation of our world. The rapid and the deep transformations that have propelled us from the steam engine to the Internet era in just 200 years. Looking back at 200 years ago, there was only a few companies that operated on a global scale. The total value of the world's economy was around $188 billion U.S. dollars. Today, it is only $180 for each person on earth. Today, there are thousands of independent global companies that compete to sell everything, from corn and crude oil to servers and software. They drive a robust global economy was over $75 trillion or $1,000 per person. Think about it. The global economy has multiplied almost 450 times in just two centuries. What is even more remarkable is that the economy has almost doubled every 15 years since 1950. These are significant transformation for businesses and for the world and our tiny slice of pie. This transformation is the result of the greatest advancement in technology in human history. Not one but three industrial revolutions have happened over the last 200 years. Even though those revolutions created remarkable change, they were just the beginning. Today, we are standing at the beginning of the fourth revolution. This revolution will transform how we work (mumbles) in ways that no one could imagine in the 18th century or even just 18 months ago. You are the people who will lead this revolution. Along with Lenovo, we will redefine IT. IT is no longer just information technology. It's intelligent technology, intelligent transformation. A transformation that is driven by big data called computing and artificial intelligence. Even the transition from PC Internet to mobile Internet is a big leap. Today, we are facing yet another big leap from the mobile Internet to the Smart Internet or intelligent Internet. In this Smart Internet era, Cloud enables devices, such as PCs, Smart phones, Smart speakers, Smart TVs. (mumbles) to provide the content and the services. But the evolution does not stop them. Ultimately, almost everything around us will become Smart, with building computing, storage, and networking capabilities. That's what we call the device plus Cloud transformation. These Smart devices, incorporated with various sensors, will continuously sense our environment and send data about our world to the Cloud. (mumbles) the process of this ever-increasing big data and to support the delivery of Cloud content and services, the data center infrastructure is also transforming to be more agile, flexible, and intelligent. That's what we call the infrastructure plus Cloud transformation. But most importantly, it is the human wisdom, the people learning algorithm vigorously improved by engineers that enables artificial intelligence to learn from big data and make everything around us smarter. With big data collected from Smart devices, computing power of the new infrastructure under the trend artificial intelligence, we can understand the world around us more accurately and make smarter decisions. We can make life better, work easier, and society safer and healthy. Think about what is already possible as we start this transformation. Smart Assistants can help you place orders online with a voice command. Driverless cars can run on the same road as traditional cars. (mumbles) can help troubleshoot customers problems, and the virtual doctors already diagnose basic symptoms. This list goes on and on. Like every revolution before it, intelligent transformation, will fundamentally change the nature of business. Understanding and preparing for that will be the key for the growth and the success of your business. The first industrial revolution made it possible to maximize production. Water and steam power let us go from making things by hand to making them by machine. This transformed how fast things could be produced. It drove the quantity of merchandise made and led to massive increase in trade. With this revolution, business scale expanded, and the number of customers exploded. Fifty years later, the second industrial revolution made it necessary to organize a business like the modern enterprise, electric power, and the telegraph communication made business faster and more complex, challenging businesses to become more efficient and meeting entirely new customer demands. In our own lifetimes, we have witnessed the third industrial revolution, which made it possible to digitize the enterprise. The development of computers and the Internet accelerated business beyond human speed. Now, global businesses have to deal with customers at the end of a cable, not always a handshake. While we are still dealing with the effects of a digitizing business, the fourth revolution is already here. In just the past two or three years, the growth of data and advancement in visual intelligence has been astonishing. The computing power can now process the massive amount of data about your customers, suppliers, partners, competitors, and give you insights you simply could not imagine before. Artificial intelligence can not only tell you what your customers want today but also anticipate what they will need tomorrow. This is not just about making better business decisions or creating better customer relationships. It's about making the world a better place. Ultimately, can we build a new world without diseases, war, and poverty? The power of big data and artificial intelligence may be the revolutionary technology to make that possible. Revolutions don't happen on their own. Every industrial revolution has its leaders, its visionaries, and its heroes. The master transformers of their age. The first industrial revolution was led by mechanics who designed and built power systems, machines, and factories. The heroes of the second industrial revolution were the business managers who designed and built modern organizations. The heroes of the third revolution were the engineers who designed and built the circuits and the source code that digitized our world. The master transformers of the next revolution are actually you. You are the designers and the builders of the networks and the systems. You will bring the benefits of intelligence to every corner of your enterprise and make intelligence the central asset of your business. At Lenovo, data intelligence is embedded into everything we do. How we understand our customer's true needs and develop more desirable products. How we profile our customers and market to them precisely. How we use internal and external data to balance our supply and the demand. And how we train virtual agents to provide more effective sales services. So the decisions you make today about your IT investment will determine the quality of the decisions your enterprise will make tomorrow. So I challenge each of you to seize this opportunity to become a master transformer, to join Lenovo as we work together at the forefront of the fourth industrial revolution, as leaders of the intelligent transformation. (triumphant instrumental) Today, we are launching the largest portfolio in our data center history at Lenovo. We are fully committed to the (mumbles) transformation. Thank you. (audience applauds) >> Thanks YY. All right, ladies and gentlemen. Fantastic, so how about a big round of applause for YY. (audience applauds) Obviously a great speech on the transformation that we at Lenovo are taking as well as obviously wanting to journey with our partners and customers obviously on that same journey. What I heard from him was obviously artificial intelligence, how we're leveraging that integrally as well as externally and for our customers, and the investments we're making in the transformation around IoT machine learning, obviously big data, et cetera, and obviously the Data Center Group, which is one of the key things we've got to be talking about today. So we're on the cusp of that fourth revolution, as YY just mentioned, and Lenovo is definitely leading the way and investing in those parts of the industry and our portfolio to ensure we're complimenting all of our customers and partners on what they want to be, obviously, as part of this new transformation we're seeing globally. Obviously now, ladies and gentlemen, without further ado once again, to tell us more about what's going on today, our announcements, obviously, that all of you will be reading about and seeing in the breakout and the demo sessions with our segment general managers this afternoon is our president of the data center, Mr. Kirk Skaugen. (upbeat instrumental) >> Good morning, and let me add my welcome to Transform. I just crossed my six months here at Lenovo after over 24 years at Intel Corporation, and I can tell you, we've been really busy over the last six months, and I'm more excited and enthusiastic than ever and hope to share some of that with you today. Today's event is called "Transform", and today we're announcing major new transformations in Lenovo, in the data center, but more importantly, we're celebrating the business results that these platforms are going to have on society and with international supercomputing going on in parallel in Frankfurt, some of the amazing scientific discoveries that are going to happen on some of these platforms. Lenovo has gone through some significant transformations in the last two years, since we acquired the IBM x86 business, and that's really positioning us for this next phase of growth, and we'll talk more about that later. Today, we're announcing the largest end-to-end data center portfolio in Lenovo's history, as you heard from YY, and we're really taking the best of the x86 heritage from our IBM acquisition of the x86 server business and combining that with the cost economics that we've delivered from kind of our China heritage. As we've talked to some of the analysts in the room, it's really that best of the east and best of the west is combining together in this announcement today. We're going to be announcing two new brands, building on our position as the number one x86 server vendor in both customer satisfaction and in reliability, and we're also celebrating, next month in July, a very significant milestone, which will we'll be shipping our 20 millionth x86 server into the industry. For us, it's an amazing time, and it's an inflection point to kind of look back, pause, but also share the next phase of Lenovo and the exciting vision for the future. We're also making some declarations on our vision for the future today. Again, international supercomputing's going on, and, as it turns out, we're the fastest growing supercomputer company on earth. We'll talk about that. Our goal today that we're announcing is that we plan in the next several years to become number one in supercomputing, and we're going to put the investments behind that. We're also committing to our customers that we're going to disrupt the status quo and accelerate the pace of innovation, not just in our legacy server solutions, but also in Software-Defined because what we've heard from you is that that lack of legacy, we don't have a huge router business or a huge sand business to protect. It's that lack of legacy that's enabling us to invest and get ahead of the curb on this next transition to Software-Defined. So you're going to see us doing that through building our internal IP, through some significant joint ventures, and also through some merges and acquisitions over the next several quarters. Altogether, we're driving to be the most trusted data center provider in the industry between us and our customers and our suppliers. So a quick summary of what we're going to dive into today, both in my keynote as well as in the breakout sessions. We're in this transformation to the next phase of Lenovo's data center growth. We're closing out our previous transformation. We actually, believe it or not, in the last six months or so, have renegotiated 18,000 contracts in 160 countries. We built out an entire end-to-end organization from development and architecture all the way through sales and support. This next transformation, I think, is really going to excite Lenovo shareholders. We're building the largest data center portfolio in our history. I think when IBM would be up here a couple years ago, we might have two or three servers to announce in time to market with the next Intel platform. Today, we're announcing 14 new servers, seven new storage systems, an expanded set of networking portfolios based on our legacy with Blade Network Technologies and other companies we've acquired. Two new brands that we'll talk about for both data center infrastructure and Software-Defined, a new set of premium premiere services as well as a set of engineered solutions that are going to help our customers get to market faster. We're going to be celebrating our 20 millionth x86 server, and as Rod said, 25 years in x86 server compute, and Christian will be up here talking about 25 years of ThinkPad as well. And then a new end-to-end segmentation model because all of these strategies without execution are kind of meaningless. I hope to give you some confidence in the transformation that Lenovo has gone through as well. So, having observed Lenovo from one of its largest partners, Intel, for more than a couple decades, I thought I'd just start with why we have confidence on the foundation that we're building off of as we move from a PC company into a data center provider in a much more significant way. So Lenovo today is a company of $43 billion in sales. Absolutely astonishing, it puts us at about Fortune 202 as a company, with 52,000 employees around the world. We're supporting and have service personnel, almost a little over 10,000 service personnel that service our servers and data center technologies in over 160 countries that provide onsite service and support. We have seven data center research centers. One of the reasons I came from Intel to Lenovo was that I saw that Lenovo became number one in PCs, not through cost cutting but through innovation. It was Lenovo that was partnering on the next-generation Ultrabooks and two-in-ones and tablets in the modem mods that you saw, but fundamentally, our path to number one in data center is going to be built on innovation. Lastly, we're one of the last companies that's actually building not only our own motherboards at our own motherboard factories, but also with five global data center manufacturing facilities. Today, we build about four devices a second, but we also build over 100 servers per hour, and the cost economics we get, and I just visited our Shenzhen factory, of having everything from screws to microprocessors come up through the elevator on the first floor, go left to build PCs and ThinkPads and go right to build server technology, means we have some of the world's most cost effective solutions so we can compete in things like hyperscale computing. So it's with that that I think we're excited about the foundation that we can build off of on the Data Center Group. Today, as we stated, this event is about transformation, and today, I want to talk about three things we're going to transform. Number one is the customer experience. Number two is the data center and our customer base with Software-Defined infrastructure, and then the third is talk about how we plan to execute flawlessly with a new transformation that we've had internally at Lenovo. So let's dive into it. On customer experience, really, what does it mean to transform customer experience? Industry pundits say that if you're not constantly innovating, you can fall behind. Certainly the technology industry that we're in is transforming at record speed. 42% of business leaders or CIOs say that digital first is their top priority, but less than 50% actually admit that they have a strategy to get there. So people are looking for a partner to keep pace with that innovation and change, and that's really what we're driving to at Lenovo. So today we're announcing a set of plans to take another step function in customer experience, and building off of our number one position. Just recently, Gartner shows Lenovo as the number 24 supply chains of companies over $12 billion. We're up there with Amazon, Coca-Cola, and we've now completely re-architected our supply chain in the Data Center Group from end to end. Today, we can deliver 90% of our SKUs, order to ship in less than seven days. The artificial intelligence that YY mentioned is optimizing our performance even further. In services, as we talked about, we're now in 160 countries, supporting on-site support, 50 different call centers around the world for local language support, and we're today announcing a whole set of new premiere support services that I'll get into in a second. But we're building on what's already better than 90% customer satisfaction in this space. And then in development, for all the engineers out there, we started foundationally for this new set of products, talking about being number one in reliability and the lowest downtime of any x86 server vendor on the planet, and these systems today are architected to basically extend that leadership position. So let me tell you the realities of reliability. This is ITIC, it's a reliability report. 750 CIOs and IT managers from more than 20 countries, so North America, Europe, Asia, Australia, South America, Africa. This isn't anything that's paid for with sponsorship dollars. Lenovo has been number one for four years running on x86 reliability. This is the amount of downtime, four hours or more, in mission-critical environments from the leading x86 providers. You can see relative to our top two competitors that are ahead of us, HP and Dell, you can see from ITIC why we are building foundationally off of this, and why it's foundational to how we're developing these new platforms. In customer satisfaction, we are also rated number one in x86 server customer satisfaction. This year, we're now incentivizing every single Lenovo employee on customer satisfaction and customer experience. It's been a huge mandate from myself and most importantly YY as our CEO. So you may say well what is the basis of this number one in customer satisfaction, and it's not just being number one in one category, it's actually being number one in 21 of the 22 categories that TBR talks about. So whether it's performance, support systems, online product information, parts and availability replacement, Lenovo is number one in 21 of the 22 categories and number one for six consecutive studies going back to Q1 of 2015. So this, again, as we talk about the new product introductions, it's something that we absolutely want to build on, and we're humbled by it, and we want to continue to do better. So let's start now on the new products and talk about how we're going to transform the data center. So today, we are announcing two new product offerings. Think Agile and ThinkSystem. If you think about the 25 years of ThinkPad that Christian's going to talk about, Lenovo has a continuous learning culture. We're fearless innovators, we're risk takers, we continuously learn, but, most importantly, I think we're humble and we have some humility. That when we fail, we can fail fast, we learn, and we improve. That's really what drove ThinkPad to number one. It took about eight years from the acquisition of IBM's x86 PC business before Lenovo became number one, but it was that innovation, that listening and learning, and then improving. As you look at the 25 years of ThinkPad, there were some amazing successes, but there were also some amazing failures along the way, but each and every time we learned and made things better. So this year, as Rod said, we're not just celebrating 25 years of ThinkPad, but we're celebrating 25 years of x86 server development since the original IBM PC servers in 1992. It's a significant day for Lenovo. Today, we're excited to announce two new brands. ThinkSystem and ThinkAgile. It's an important new announcement that we started almost three years ago when we acquired the x86 server business. Why don't we run a video, and we'll show you a little bit about ThinkSystem and ThinkAgile. >> Narrator: The status quo is comfortable. It gets you by, but if you think that's good enough for your data center, think again. If adoption is becoming more complicated when it should be simpler, think again. If others are selling you technology that's best for them, not for you, think again. It's time for answers that win today and tomorrow. Agile, innovative, different. Because different is better. Different embraces change and makes adoption simple. Different designs itself around you. Using 25 years of innovation and design and R&D. Different transforms, it gives you ThinkSystem. World-record performance, most reliable, easy to integrate, scales faster. Different empowers you with ThinkAgile. It redefines the experience, giving you the speed of Cloud and the control of on-premise IT. Responding faster to what your business really needs. Different defines the future. Introducing Lenovo ThinkSystem and ThinkAgile. (exciting and slightly aggressive digital instrumental) >> All right, good stuff, huh? (audience applauds) So it's built off of this 25-year history of us being in the x86 server business, the commitment we established three years ago after acquiring the x86 server business to be and have the most reliable, the most agile, and the most highest-performing data center solutions on the planet. So today we're announcing two brands. ThinkSystem is for the traditional data center infrastructure, and ThinkAgile is our brand for Software-Defined infrastructure. Again, the teams challenge themselves from the start, how do we build off this rich heritage, expanding our position as number one in customer satisfaction, reliability, and one of the world's best supply chains. So let's start and look at the next set of solutions. We have always prided ourself that little things don't mean a lot. Little things mean everything. So today, as we said on the legacy solutions, we have over 30 world-record performance benchmarks on Intel architecture, and more than actually 150 since we started tracking this back in 2001. So it's the little pieces of innovation. It's the fine tuning that we do with our partners like an Intel or a Microsoft, an SAP, VMware, and Nutanix that's enabling us to get these world-record performance benchmarks, and with this next generation of solutions we think we'll continue to certainly do that. So today we're announcing the most comprehensive portfolio ever in our data center history. There's 14 servers, seven storage devices, and five network switches. We're also announcing, which is super important to our customer base, a set of new premiere service options. That's giving you fast access directly to a level two support person. No automated response system involved. You get to pick up the phone and directly talk to a level two support person that's going to have end-to-end ownership of the customer experience for ThinkSystem. With ThinkAgile, that's going to be completely bundled with every ThinkAgile you purchase. In addition, we're having white glove service on site that will actually unbox the product for you and get it up and running. It's an entirely new set of solutions for hybrid Cloud, for big data analytics and database applications around these engineered solutions. These are like 40- to 50-page guides where we fine-tuned the most important applications around virtual desktop infrastructure and those kinds of applications, working side by side with all of our ISP partners. So significantly expanding, not just the hardware but the software solutions that, obviously, you, as our customers, are running. So if you look at ThinkSystem innovation, again, it was designed for the ultimate in flexibility, performance, and reliability. It's a single now-unified brand that combines what used to be the Lenovo Think server and the IBM System x products now into a single brand that spans server, storage, and networking. We're basically future-proofing it for the next-generation data center. It's a significantly simplified portfolio. One of the big pieces that we've heard is that the complexity of our competitors has really been overwhelming to customers. We're building a more flexible, more agile solution set that requires less work, less qualification, and more future proofing. There's a bunch of things in this that you'll see in the demos. Faster time-to-service in terms of the modularity of the systems. 12% faster service equating to almost $50 thousand per hour of reduced downtime. Some new high-density options where we have four nodes and a 2U, twice the density to improve and reduce outbacks and mission-critical workloads. And then in high-performance computing and supercomputing, we're going to spend some time on that here shortly. We're announcing new water-cooled solutions. We have some of the most premiere water-cooled solutions in the world, with more than 25 patents pending now, just in the water-cooled solutions for supercomputing. The performance that we think we're going to see out of these systems is significant. We're building off of that legacy that we have today on the existing Intel solutions. Today, we believe we have more than 50% of SAP HANA installations in the world. In fact, SAP just went public that they're running their internal SAP HANA on Lenovo hardware now. We're seeing a 59% increase in performance on SAP HANA generation on generation. We're seeing 31% lower total cost to ownership. We believe this will continue our position of having the highest level of five-nines in the x86 server industry. And all of these servers will start being available later this summer when the Intel announcements come out. We're also announcing the largest storage portfolio in our history, significantly larger than anything we've done in the past. These are all available today, including some new value class storage offerings. Our network portfolio is expanding now significantly. It was a big surprise when I came to Lenovo, seeing the hundreds of engineers we had from the acquisition of Blade Network Technologies and others with our teams in Romania, Santa Clara, really building out both the embedded portfolio but also the top racks, which is around 10 gig, 25 gig, and 100 gig. Significantly better economics, but all the performance you'd expect from the largest networking companies in the world. Those are also available today. ThinkAgile and Software-Defined, I think the one thing that has kind of overwhelmed me since coming in to Lenovo is we are being embraced by our customers because of our lack of legacy. We're not trying to sell you one more legacy SAN at 65% margins. ThinkAgile really was founded, kind of born free from the shackles of legacy thinking and legacy infrastructure. This is just the beginning of what's going to be an amazing new brand in the transformation to Software-Defined. So, for Lenovo, we're going to invest in our own internal organic IP. I'll foreshadow: There's some significant joint ventures and some mergers and acquisitions that are going to be coming in this space. And so this will be the foundation for our Software-Defined networking and storage, for IoT, and ultimately for the 5G build-out as well. This is all built for data centers of tomorrow that require fluid resources, tightly integrated software and hardware in kind of an appliance, selling at the rack level, and so we'll show you how that is going to take place here in a second. ThinkAgile, we have a few different offerings. One is around hyperconverged storage, Hybrid Cloud, and also Software-Defined storage. So we're really trying to redefine the customer experience. There's two different solutions we're having today. It's a Microsoft Azure solution and a Nutanix solution. These are going to be available both in the appliance space as well as in a full rack solution. We're really simplifying and trying to transform the entire customer experience from how you order it. We've got new capacity planning tools that used to take literally days for us to get the capacity planning done. It's now going down to literally minutes. We've got new order, delivery, deployment, administration service, something we're calling ThinkAgile Advantage, which is the white glove unboxing of the actual solutions on prem. So the whole thing when you hear about it in the breakout sessions about transforming the entire customer experience with both an HX solution and an SX solution. So again, available at the rack level for both Nutanix and for Microsoft Solutions available in just a few months. Many of you in the audience since the Microsoft Airlift event in Seattle have started using these things, and the feedback to date has been fantastic. We appreciate the early customer adoption that we've seen from people in the audience here. So next I want to bring up one of our most important partners, and certainly if you look at all of these solutions, they're based on the next-generation Intel Xeon scalable processor that's going to be announcing very very soon. I want to bring on stage Rupal Shah, who's the corporate vice president and general manager of Global Data Center Sales with Intel, so Rupal, please join me. (upbeat instrumental) So certainly I have long roots at Intel, but why don't you talk about, from Intel's perspective, why Lenovo is an important partner for Lenovo. >> Great, well first of all, thank you very much. I've had the distinct pleasure of not only working with Kirk for many many years, but also working with Lenovo for many years, so it's great to be here. Lenovo is not only a fantastic supplier and leader in the industry for Intel-based servers but also a very active partner in the Intel ecosystem. In the Intel ecosystem, specifically, in our partner programs and in our builder programs around Cloud, around the network, and around storage, I personally have had a long history in working with Lenovo, and I've seen personally that PC transformation that you talked about, Kirk, and I believe, and I know that Intel believes in Lenovo's ability to not only succeed in the data center but to actually lead in the data center. And so today, the ThinkSystem and ThinkAgile announcement is just so incredibly important. It's such a great testament to our two companies working together, and the innovation that we're able to bring to the market, and all of it based on the Intel Xeon scalable processor. >> Excellent, so tell me a little bit about why we've been collaborating, tell me a little bit about why you're excited about ThinkSystem and ThinkAgile, specifically. >> Well, there are a lot of reasons that I'm excited about the innovation, but let me talk about a few. First, both of our companies really stand behind the fact that it's increasingly a hybrid world. Our two companies offer a range of solutions now to customers to be able to address their different workload needs. ThinkSystem really brings the best, right? It brings incredible performance, flexibility in data center deployment, and industry-leading reliability that you've talked about. And, as always, Xeon has a history of being built for the data center specifically. The Intel Xeon scalable processor is really re-architected from the ground up in order to enhance compute, network, and storage data flows so that we can deliver workload optimized performance for both a wide range of traditional workloads and traditional needs but also some emerging new needs in areas like artificial intelligence. Second is when it comes to the next generation of Cloud infrastructure, the new Lenovo ThinkAgile line offers a truly integrated offering to address data center pain points, and so not only are you able to get these pretested solutions, but these pretested solutions are going to get deployed in your infrastructure faster, and they're going to be deployed in a way that's going to meet your specific needs. This is something that is new for both of us, and it's an incredible innovation in the marketplace. I think that it's a great addition to what is already a fantastic portfolio for Lenovo. >> Excellent. >> Finally, there's high-performance computing. In high-performance computing. First of all, congratulations. It's a big week, I think, for both of us. Fantastic work that we've been doing together in high-performance computing and actually bringing the best of the best to our customers, and you're going to hear a whole lot more about that. We obviously have a number of joint innovation centers together between Intel and Lenovo. Tell us about some of the key innovations that you guys are excited about. >> Well, Intel and Lenovo, we do have joint innovation labs around the world, and we have a long and strong history of very tight collaboration. This has brought a big wave of innovation to the marketplace in areas like software-defined infrastructure. Yet another area is working closely on a joint vision that I think our two companies have in artificial intelligence. Intel is very committed to the world of AI, and we're committed in making the investments required in technology development, in training, and also in R&D to be able to deliver end-to-end solutions. So with Intel's comprehensive technology portfolio and Lenovo's development and innovation expertise, it's a great combination in this space. I've already talked a little bit about HPC and so has Kirk, and we're going to hear a little bit more to come, but we're really building the fastest compute solutions for customers that are solving big problems. Finally, we often talk about processors from Intel, but it's not just about the processors. It's way beyond that. It's about engaging at the solution level for our customers, and I'm so excited about the work that we've done together with Lenovo to bring to market products like Intel Omni-Path Architecture, which is really the fabric for high-performance data centers. We've got a great showing this week with Intel Omni-Path Architecture, and I'm so grateful for all the work that we've done to be able to bring true solutions to the marketplace. I am really looking forward to our future collaboration with Lenovo as we have in the past. I want to thank you again for inviting me here today, and congratulations on a fantastic launch. >> Thank you, Rupal, very much, for the long partnership. >> Thank you. (audience applauds) >> Okay, well now let's transition and talk a little bit about how Lenovo is transforming. The first thing we've done when I came on board about six months ago is we've transformed to a truly end-to-end organization. We're looking at the market segments I think as our customers define them, and we've organized into having vice presidents and senior vice presidents in charge of each of these major groups, thinking really end to end, from architecture all the way to end of life and customer support. So the first is hyperscale infrastructure. It's about 20% on the market by 2020. We've hired a new vice president there to run that business. Given we can make money in high-volume desktop PCs, it's really the manufacturing prowess, deep engineering collaboration that's enabling us to sell into Baidu, and to Alibaba, Tencent, as well as the largest Cloud vendors on the West Coast here in the United States. We believe we can make money here by having basically a deep deep engineering engagement with our key customers and building on the PC volume economics that we have within Lenovo. On software-defined infrastructure, again, it's that lack of legacy that I think is propelling us into this space. We're not encumbered by trying to sell one more legacy SAN or router, and that's really what's exciting us here, as we transform from a hardware to a software-based company. On HPC and AI, as we said, we'll talk about this in a second. We're the fastest-growing supercomputing company on earth. We have aspirations to be the largest supercomputing company on earth, with China and the U.S. vying for number one in that position, it puts us in a good position there. We're going to bridge that into artificial intelligence in our upcoming Shanghai Tech World. The entire day is around AI. In fact, YY has committed $1.2 billion to artificial intelligence over the next few years of R&D to help us bridge that. And then on data center infrastructure, is really about moving to a solutions based infrastructure like our position with SAP HANA, where we've gone deep with engineers on site at SAP, SAP running their own infrastructure on Lenovo and building that out beyond just SAP to other solutions in the marketplace. Overall, significantly expanding our services portfolio to maintain our number one customer satisfaction rating. So given ISC, or International Supercomputing, this week in Frankfurt, and a lot of my team are actually over there, I wanted to just show you the transformation we've had at Lenovo for delivering some of the technology to solve some of the most challenging humanitarian problems on earth. Today, we are the fastest-growing supercomputer company on the planet in terms of number of systems on the Top 500 list. We've gone from zero to 92 positions in just a few short years, but IDC also positions Lenovo as the fast-growing supercomputer and HPC company overall at about 17% year on year growth overall, including all of the broad channel, the regional universities and this kind of thing, so this is an exciting place for us. I'm excited today that Sergi has come all the way from Spain to be with us today. It's an exciting time because this week we announce the fastest next-generation Intel supercomputer on the planet at Barcelona Supercomputer. Before I bring Sergi on stage, let's run a video and I'll show you why we're excited about the capabilities of these next-generation supercomputers. Run the video please. >> Narrator: Different creates one of the most powerful supercomputers for the Barcelona Supercomputer Center. A high-performance, high-capacity design to help shape tomorrow's world. Different designs what's best for you, with 25 years of end-to-end expertise delivering large-scale solutions. It integrates easily with technology from industry partners, through deep collaboration with the client to manufacture, test, configure, and install at global scale. Different achieves the impossible. The first of a new series. A more energy-efficient supercomputer yet 10 times more powerful than its predecessor. With over 3,400 Lenovo ThinkSystem servers, each performing over two trillion calculations per second, giving us 11.1 petaflop capacity. Different powers MareNostrum, a supercomputer that will help us better understand cancer, help discover disease-fighting therapies, predict the impact of climate change. MareNostrom 4.0 promises to uncover answers that will help solve humanities greatest challenges. (audience applauds) >> So please help me in welcoming operations director of the Barcelona Supercomputer Center, Sergi Girona. So welcome, and again, congratulations. It's been a big week for both of us. But I think for a long time, if you haven't been to Barcelona, this has been called the world's most beautiful computer because it's in one of the most gorgeous chapels in the world as you can see here. Congratulations, we now are number 13 on the Top500 list and the fastest next-generation Intel computer. >> Thank you very much, and congratulations to you as well. >> So maybe we can just talk a little bit about what you've done over the last few months with us. >> Sure, thank you very much. It is a pleasure for me being invited here to present to you what we've been doing with Lenovo so far and what we are planning to do in the next future. I'm representing here Barcelona Supercomputing Center. I am presenting high-performance computing services to science and industry. How we see these science services has changed the paradigm of science. We are coming from observation. We are coming from observation on the telescopes and the microscopes and the building of infrastructures, but this is not affordable anymore. This is very expensive, so it's not possible, so we need to move to simulations. So we need to understand what's happening in our environment. We need to predict behaviors only going through simulation. So, at BSC, we are devoted to provide services to industry, to science, but also we are doing our own research because we want to understand. At the same time, we are helping and developing the new engineers of the future on the IT, on HPC. So we are having four departments based on different topics. The main and big one is wiling to understand how we are doing the next supercomputers from the programming level to the performance to the EIA, so all these things, but we are having also interest on what about the climate change, what's the air quality that we are having in our cities. What is the precision medicine we need to have. How we can see that the different drugs are better for different individuals, for different humans, and of course we have an energy department, taking care of understanding what's the better optimization for a cold, how we can save energy running simulations on different topics. But, of course, the topic of today is not my research, but it's the systems we are building in Barcelona. So this is what we have been building in Barcelona so far. From left to right, you have the preparation of the facility because this is 160 square meters with 1.4 megabytes, so that means we need new piping, we need new electricity, at the same time in the center we have to install the core services of the system, so the management practices, and then on the right-hand side you have installation of the networking, the Omni-Path by Intel. Because all of the new racks have to be fully integrated and they need to come into operation rapidly. So we start deployment of the system May 15, and we've now been ending and coming in production July first. All the systems, all the (mumbles) systems from Lenovo are coming before being open and available. What we've been installing here in Barcelona is general purpose systems for our general workload of the system with 3,456 nodes. Everyone of those having 48 cores, 96 gigabytes main memory for a total capacity of about 400 terabytes memory. The objective of this is that we want to, all the system, all the processors, to work together for a single execution for running altogether, so this is an example of the platinum processors from Intel having 24 cores each. Of course, for doing this together with all the cores in the same application, we need a high-speed network, so this is Omni-Path, and of course all these cables are connecting all the nodes. Noncontention, working together, cooperating. Of course, this is a bunch of cables. They need to be properly aligned in switches. So here you have the complete presentation. Of course, this is general purpose, but we wanted to invest with our partners. We want to understand what the supercomputers we wanted to install in 2020, (mumbles) Exascale. We want to find out, we are installing as well systems with different capacities with KNH, with power, with ARM processors. We want to leverage our obligations for the future. We want to make sure that in 2020 we are ready to move our users rapidly to the new technologies. Of course, this is in total, giving us a total capacity of 13.7 petaflops that it's 12 times the capacity of the former MareNostrum four years ago. We need to provide the services to our scientists because they are helping to solve problems for humanity. That's the place we are going to go. Last is inviting you to come to Barcelona to see our place and our chapel. Thank you very much (audience applauds). >> Thank you. So now you can all go home to your spouses and significant others and say you have a formal invitation to Barcelona, Spain. So last, I want to talk about what we've done to transform Lenovo. I think we all know the history is nice but without execution, none of this is going to be possible going forward, so we have been very very busy over the last six months to a year of transforming Lenovo's data center organization. First, we moved to a dedicated end-to-end sales and marketing organization. In the past, we had people that were shared between PC and data center, now thousands of sales people around the world are 100% dedicated end to end to our data center clients. We've moved to a fully integrated and dedicated supply chain and procurement organization. A fully dedicated quality organization, 100% dedicated to expanding our data center success. We've moved to a customer-centric segment, again, bringing in significant new leaders from outside the company to look end to end at each of these segments, supercomputing being very very different than small business, being very very different than taking care of, for example, a large retailer or bank. So around hyperscale, software-defined infrastructure, HPC, AI, and supercomputing and data center solutions-led infrastructure. We've built out a whole new set of global channel programs. Last year, or a year passed, we have five different channel programs around the world. We've now got one simplified channel program for dealer registration. I think our channel is very very energized to go out to market with Lenovo technology across the board, and a whole new set of system integrator relationships. You're going to hear from one of them in Christian's discussion, but a whole new set of partnerships to build solutions together with our system integrative partners. And, again, as I mentioned, a brand new leadership team. So look forward to talking about the details of this. There's been a significant amount of transformation internal to Lenovo that's led to the success of this new product introduction today. So in conclusion, I want to talk about the news of the day. We are transforming Lenovo to the next phase of our data center growth. Again, in over 160 countries, closing on that first phase of transformation and moving forward with some unique declarations. We're launching the largest portfolio in our history, not just in servers but in storage and networking, as everything becomes kind of a software personality on top of x86 Compute. We think we're very well positioned with our scale on PCs as well as data center. Two new brands for both data center infrastructure and Software-Defined, without the legacy shackles of our competitors, enabling us to move very very quickly into Software-Defined, and, again, foreshadowing some joint ventures in M&A that are going to be coming up that will further accelerate ourselves there. New premiere support offerings, enabling you to get direct access to level two engineers and white glove unboxing services, which are going to be bundled along with ThinkAgile. And then celebrating the milestone of 25 years in x86 server compute, not just ThinkPads that you'll hear about shortly, but also our 20 million server shipping next month. So we're celebrating that legacy and looking forward to the next phase. And then making sure we have the execution engine to maintain our position and grow it, being number one in customer satisfaction and number one in quality. So, with that, thank you very much. I look forward to seeing you in the breakouts today and talking with many of you, and I'll bring Rod back up to transition us to the next section. Thank you. (audience applauds) >> All right, Kirk, thank you, sir. All right, ladies and gentlemen, what did you think of that? How about a big round of applause for ThinkAgile, ThinkSystems new brands? (audience applauds) And, obviously, with that comes a big round of applause, for Kirk Skaugen, my boss, so we've got to give him a big round of applause, please. I need to stay employed, it's very important. All right, now you just heard from Kirk about some of the new systems, the brands. How about we have a quick look at the video, which shows us the brand new DCG images. >> Narrator: Legacy thinking is dead, stuck in the past, selling the same old stuff, over and over. So then why does it seem like a data center, you know, that thing powering all our little devices and more or less everything interaction today is still stuck in legacy thinking because it's rigid, inflexible, slow, but that's not us. We don't do legacy. We do different. Because different is fearless. Different reduces Cloud deployment from days to hours. Different creates agile technology that others follow. Different is fluid. It uses water-cooling technology to save energy. It co-innovates with some of the best minds in the industry today. Different is better, smarter. Maybe that's why different already holds so many world-record benchmarks in everything. From virtualization to database and application performance or why it's number one in reliability and customer satisfaction. Legacy sells you what they want. Different builds the data center you need without locking you in. Introducing the Data Center Group at Lenovo. Different... Is better. >> All right, ladies and gentlemen, a big round of applause, once again (mumbles) DCG, fantastic. And I'm sure all of you would agree, and Kirk mentioned it a couple of times there. No legacy means a real consultative approach to our customers, and that's something that we really feel is differentiated for ourselves. We are effectively now one of the largest startups in the DCG space, and we are very much ready to disrupt. Now, here in New York City, obviously, the heart of the fashion industry, and much like fashion, as I mentioned earlier, we're different, we're disruptive, we're agile, smarter, and faster. I'd like to say that about myself, but, unfortunately, I can't. But those of you who have observed, you may have noticed that I, too, have transformed. I don't know if anyone saw that. I've transformed from the pinstripe blue, white shirt, red tie look of the, shall we say, our predecessors who owned the x86 business to now a very Lenovo look. No tie and consequently a little bit more chic New York sort of fashion look, shall I say. Nothing more than that. So anyway, a bit of a transformation. It takes a lot to get to this look, by the way. It's a lot of effort. Our next speaker, Christian Teismann, is going to talk a lot about the core business of Lenovo, which really has been, as we've mentioned today, our ThinkPad, 25-year anniversary this year. It's going to be a great celebration inside Lenovo, and as we get through the year and we get closer and closer to the day, you'll see a lot more social and digital work that engages our customers, partners, analysts, et cetera, when we get close to that birthday. Customers just generally are a lot tougher on computers. We know they are. Whether you hang onto it between meetings from the corner of the Notebook, and that's why we have magnesium chassis inside the box or whether you're just dropping it or hypothetically doing anything else like that. We do a lot of robust testing on these products, and that's why it's the number one branded Notebook in the world. So Christian talks a lot about this, but I thought instead of having him talk, I might just do a little impromptu jump back stage and I'll show you exactly what I'm talking about. So follow me for a second. I'm going to jaunt this way. I know a lot of you would have seen, obviously, the front of house here, what we call the front of house. Lots of videos, et cetera, but I don't think many of you would have seen the back of house here, so I'm going to jump through the back here. Hang on one second. You'll see us when we get here. Okay, let's see what's going on back stage right now. You can see one of the team here in the back stage is obviously working on their keyboard. Fantastic, let me tell you, this is one of the key value props of this product, obviously still working, lots of coffee all over it, spill-proof keyboard, one of the key value propositions and why this is the number one laptop brand in the world. Congratulations there, well done for that. Obviously, we test these things. Height, distances, Mil-SPEC approved, once again, fantastic product, pick that up, lovely. Absolutely resistant to any height or drops, once again, in line with our Mil-SPEC. This is Charles, our producer and director back stage for the absolute event. You can see, once again, sand, coincidentally, in Manhattan, who would have thought a snow storm was occurring here, but you can throw sand. We test these things for all of the elements. I've obviously been pretty keen on our development solutions, having lived in Japan for 12 years. We had this originally designed in 1992 by (mumbles), he's still our chief development officer still today, fantastic, congratulations, a sand-enhanced notebook, he'd love that. All right, let's get back out front and on with the show. Watch the coffee. All right, how was that? Not too bad (laughs). It wasn't very impromptu at all, was it? Not at all a set up (giggles). How many people have events and have a bag of sand sitting on the floor right next to a Notebook? I don't know. All right, now it's time, obviously, to introduce our next speaker, ladies and gentlemen, and I hope I didn't steal his thunder, obviously, in my conversations just now that you saw back stage. He's one of my best friends in Lenovo and easily is a great representative of our legendary PC products and solutions that we're putting together for all of our customers right now, and having been an ex-Pat with Lenovo in New York really calls this his second home and is continually fighting with me over the fact that he believes New York has better sushi than Tokyo, let's welcome please, Christian Teismann, our SVP, Commercial Business Segment, and PC Smart Office. Christian Teismann, come on up mate. (audience applauds) >> So Rod thank you very much for this wonderful introduction. I'm not sure how much there is to add to what you have seen already back stage, but I think there is a 25-year of history I will touch a little bit on, but also a very big transformation. But first of all, welcome to New York. As Rod said, it's my second home, but it's also a very important place for the ThinkPad, and I will come back to this later. The ThinkPad is thee industry standard of business computing. It's an industry icon. We are celebrating 25 years this year like no other PC brand has done before. But this story today is not looking back only. It's a story looking forward about the future of PC, and we see a transformation from PCs to personalized computing. I am privileged to lead the commercial PC and Smart device business for Lenovo, but much more important beyond product, I also am responsible for customer experience. And this is what really matters on an ongoing basis. But allow me to stay a little bit longer with our iconic ThinkPad and history of the last 25 years. ThinkPad has always stand for two things, and it always will be. Highest quality in the industry and technology innovation leadership that matters. That matters for you and that matters for your end users. So, now let me step back a little bit in time. As Rod was showing you, as only Rod can do, reliability is a very important part of ThinkPad story. ThinkPads have been used everywhere and done everything. They have survived fires and extreme weather, and they keep surviving your end users. For 25 years, they have been built for real business. ThinkPad also has a legacy of first innovation. There are so many firsts over the last 25 years, we could spend an hour talking about them. But I just want to cover a couple of the most important milestones. First of all, the ThinkPad 1992 has been developed and invented in Japan on the base design of a Bento box. It was designed by the famous industrial designer, Richard Sapper. Did you also know that the ThinkPad was the first commercial Notebook flying into space? In '93, we traveled with the space shuttle the first time. For two decades, ThinkPads were on every single mission. Did you know that the ThinkPad Butterfly, the iconic ThinkPad that opens the keyboard to its size, is the first and only computer showcased in the permanent collection of the Museum of Modern Art, right here in New York City? Ten years later, in 2005, IBM passed the torch to Lenovo, and the story got even better. Over the last 12 years, we sold over 100 million ThinkPads, four times the amount IBM sold in the same time. Many customers were concerned at that time, but since then, the ThinkPad has remained the best business Notebook in the industry, with even better quality, but most important, we kept innovating. In 2012, we unveiled the X1 Carbon. It was the thinnest, lightest, and still most robust business PC in the world. Using advanced composited materials like a Formula One car, for super strengths, X1 Carbon has become our ThinkPad flagship since then. We've added an X1 Carbon Yoga, a 360-degree convertible. An X1 Carbon tablet, a detachable, and many new products to come in the future. Over the last few years, many new firsts have been focused on providing the best end-user experience. The first dual-screen mobile workstation. The first Windows business tablet, and the first business PC with OLED screen technology. History is important, but a massive transformation is on the way. Future success requires us to think beyond the box. Think beyond hardware, think beyond notebooks and desktops, and to think about the future of personalized computing. Now, why is this happening? Well, because the business world is rapidly changing. Looking back on history that YY gave, and the acceleration of innovation and how it changes our everyday life in business and in personal is driving a massive change also to our industry. Most important because you are changing faster than ever before. Human capital is your most important asset. In today's generation, they want to have freedom of choice. They want to have a product that is tailored to their specific needs, every single day, every single minute, when they use it. But also IT is changing. The Cloud, constant connectivity, 5G will change everything. Artificial intelligence is adding things to the capability of an infrastructure that we just are starting to imagine. Let me talk about the workforce first because it's the most important part of what drives this. The millennials will comprise more than half of the world's workforce in 2020, three years from now. Already, one out of three millennials is prioritizing mobile work environment over salary, and for nearly 60% of all new hires in the United States, technology is a very important factor for their job search in terms of the way they work and the way they are empowered. This new generation of new employees has grown up with PCs, with Smart phones, with tablets, with touch, for their personal use and for their occupation use. They want freedom. Second, the workplace is transforming. The video you see here in the background. This is our North America headquarters in Raleigh, where we have a brand new Smart workspace. We have transformed this to attract the new generation of workers. It has fewer traditional workspaces, much more meaning and collaborative spaces, and Lenovo, like many companies, is seeing workspaces getting smaller. An average workspace per employee has decreased by 30% over the last five years. Employees are increasingly mobile, but, if they come to the office, they want to collaborate with their colleagues. The way we collaborate and communicate is changing. Investment in new collaboration technology is exploding. The market of collaboration technology is exceeding the market of personal computing today. It will grow in the future. Conference rooms are being re-imagined from a ratio of 50 employees to one large conference room. Today, we are moving into scenarios of four employees to one conference room, and these are huddle rooms, pioneer spaces. Technology is everywhere. Video, mega-screens, audio, electronic whiteboards. Adaptive technologies are popping up and change the way we work. As YY said earlier, the pace of the revolution is astonishing. So personalized computing will transform the PC we all know. There's a couple of key factors that we are integrating in our next generations of PC as we go forward. The most important trends that we see. First of all, choose your own device. We talked about this new generation of workforce. Employees who are used to choosing their own device. We have to respond and offer devices that are tailored to each end user's needs without adding complexity to how we operate them. PC is a service. Corporations increasingly are looking for on-demand computing in data center as well as in personal computing. Customers want flexibility. A tailored management solution and a services portfolio that completes the lifecycle of the device. Agile IT, even more important, corporations want to run an infrastructure that is agile, instant respond to their end-customer needs, that is self provisioning, self diagnostic, and remote software repair. Artificial intelligence. Think about artificial intelligence for you personally as your personal assistant. A personal assistant which does understand you, your schedule, your travel, your next task, an extension of yourself. We believe the PC will be the center of this mobile device universe. Mobile device synergy. Each of you have two devices or more with you. They need to work together across different operating systems, across different platforms. We believe Lenovo is uniquely positioned as the only company who has a Smart phone business, a PC business, and an infrastructure business to really seamlessly integrate all of these devices for simplicity and for efficiency. Augmented reality. We believe augmented reality will drive significantly productivity improvements in commercial business. The core will be to understand industry-specific solutions. New processes, new business challenges, to improve things like customer service and sales. Security will remain the foundation for personalized computing. Without security, without trust in the device integrity, this will not happen. One of the most important trends, I believe, is that the PC will transform, is always connected, and always on, like a Smart phone. Regardless if it's open, if it's closed, if you carry it, or if you work with it, it always is capable to respond to you and to work with you. 5G is becoming a reality, and the data capacity that will be out there is by far exceeding today's traffic imagination. Finally, Smart Office, delivering flexible and collaborative work environments regardless on where the worker sits, fully integrated and leverages all the technologies we just talked before. These are the main challenges you and all of your CIO and CTO colleagues have to face today. A changing workforce and a new set of technologies that are transforming PC into personalized computing. Let me give you a real example of a challenge. DXC was just formed by merging CSE company and HP's Enterprise services for the largest independent services company in the world. DXC is now a 25 billion IT services leader with more than 170,000 employees. The most important capital. 6,000 clients and eight million managed devices. I'd like to welcome their CIO, who has one of the most challenging workforce transformation in front of him. Erich Windmuller, please give him a round of applause. (audience applauds). >> Thank you Christian. >> Thank you. >> It's my pleasure to be here, thank you. >> So first of all, let me congratulation you to this very special time. By forming a new multi-billion-dollar enterprise, this new venture. I think it has been so far fantastically received by analysts, by the press, by customers, and we are delighted to be one of your strategic partners, and clearly we are collaborating around workforce transformation between our two companies. But let me ask you a couple of more personal questions. So by bringing these two companies together with nearly 200,00 employees, what are the first actions you are taking to make this a success, and what are your biggest challenges? >> Well, first, again, let me thank you for inviting me and for DXC Technology to be a part of this very very special event with Lenovo, so thank you. As many of you might expect, it's been a bit of a challenge over the past several months. My goal was really very simple. It was to make sure that we brought two companies together, and they could operate as one. We need to make sure that could continue to support our clients. We certainly need to make sure we could continue to sell, our sellers could sell. That we could pay our employees, that we could hire people, we could do all the basic foundational things that you might expect a company would want to do, but we really focused on three simple areas. I called it the three Cs. Connectivity, communicate, and collaborate. So we wanted to make sure that we connected our legacy data centers so we could transfer information and communicate back and forth. We certainly wanted to be sure that our employees could communicate via WIFI, whatever locations they may or may not go to. We certainly wanted to, when we talk about communicate, we need to be sure that everyone of our employees could send and receive email as a DXC employee. And that we had a single-enterprise directory and people could communicate, gain access to calendars across each of the two legacy companies, and then collaborate was also key. And so we wanted to be sure, again, that people could communicate across each other, that our legacy employees on either side could get access to many of their legacy systems, and, again, we could collaborate together as a single corporation, so it was challenging, but very very, great opportunity for all of us. And, certainly, you might expect cyber and security was a very very important topic. My chairman challenged me that we had to be at least as good as we were before from a cyber perspective, and when you bring two large companies together like that there's clearly an opportunity in this disruptive world so we wanted to be sure that we had a very very strong cyber security posture, of which Lenovo has been very very helpful in our achieving that. >> Thank you, Erich. So what does DXC consider as their critical solutions and technology for workplace transformation, both internally as well as out on the market? >> So workplace transformation, and, again, I've heard a lot of the same kinds of words that I would espouse... It's all about making our employees productive. It's giving the right tools to do their jobs. I, personally, have been focused, and you know this because Lenovo has been a very very big part of this, in working with our, we call it our My Style Workplace, it's an offering team in developing a solution and driving as much functionality as possible down to the workstation. We want to be able, for me, to avoid and eliminate other ancillary costs, audio video costs, telecommunication cost. The platform that we have, the digitized workstation that Lenovo has provided us, has just got a tremendous amount of capability. We want to streamline those solutions, as well, on top of the modern server. The modern platform, as we call it, internally. I'd like to congratulate Kirk and your team that you guys have successfully... Your hardware has been certified on our modern platform, which is a significant accomplishment between our two companies and our partnership. It was really really foundational. Lenovo is a big part of our digital workstation transformation, and you'll continue to be, so it's very very important, and I want you to know that your tools and your products have done a significant job in helping us bring two large corporations together as one. >> Thank you, Erich. Last question, what is your view on device as a service and hardware utility model? >> This is the easy question, right? So who in the room doesn't like PC or device as a service? This is a tremendous opportunity, I think, for all of us. Our corporation, like many of you in the room, we're all driven by the concept of buying devices in an Opex versus a Capex type of a world and be able to pay as you go. I think this is something that all of us would like to procure, product services and products, if you will, personal products, in this type of a mode, so I am very very eager to work with Lenovo to be sure that we bring forth a very dynamic and constructive device as a service approach. So very eager to do that with Lenovo and bring that forward for DXC Technology. >> Erich, thank you very much. It's a great pleasure to work with you, today and going forward on all sides. I think with your new company and our lineup, I think we have great things to come. Thank you very much. >> My pleasure, great pleasure, thank you very much. >> So, what's next for Lenovo PC? We already have the most comprehensive commercial portfolio in the industry. We have put the end user in the core of our portfolio to finish and going forward. Ultra mobile users, like consultants, analysts, sales and service. Heavy compute users like engineers and designers. Industry users, increasingly more understanding. Industry-specific use cases like education, healthcare, or banking. So, there are a few exciting things we have to announce today. Obviously, we don't have that broad of an announcement like our colleagues from the data center side, but there is one thing that I have that actually... Thank you Rod... Looks like a Bento box, but it's not a ThinkPad. It's a first of it's kind. It's the world's smallest professional workstation. It has the power of a tower in the Bento box. It has the newest Intel core architecture, and it's designed for a wide range of heavy duty workload. Innovation continues, not only in the ThinkPad but also in the desktops and workstations. Second, you hear much about Smart Office and workspace transformation today. I'm excited to announce that we have made a strategic decision to expand our Think portfolio into Smart Office, and we will soon have solutions on the table in conference rooms, working with strategic partners like Intel and like Microsoft. We are focused on a set of devices and a software architecture that, as an IoT architecture, unifies the management of Smart Office. We want to move fast, so our target is that we will have our first product already later this year. More to come. And finally, what gets me most excited is the upcoming 25 anniversary in October. Actually, if you go to Japan, there are many ThinkPad lovers. Actually beyond lovers, enthusiasts, who are collectors. We've been consistently asked in blogs and forums about a special anniversary edition, so let me offer you a first glimpse what we will announce in October, of something we are bring to market later this year. For the anniversary, we will introduce a limited edition product. This will include throwback features from ThinkPad's history as well as the best and most powerful features of the ThinkPad today. But we are not just making incremental adjustments to the Think product line. We are rethinking ThinkPad of the future. Well, here is what I would call a concept card. Maybe a ThinkPad without a hinge. Maybe one you can fold. What do you think? (audience applauds) but this is more than just design or look and feel. It's a new set of advanced materials and new screen technologies. It's how you can speak to it or write on it or how it speaks to you. Always connected, always on, and can communicate on multiple inputs and outputs. It will anticipate your next meeting, your next travel, your next task. And when you put it all together, it's just another part of the story, which we call personalized computing. Thank you very much. (audience applauds) Thank you, sir. >> Good on ya, mate. All right, ladies and gentlemen. We are now at the conclusion of the day, for this session anyway. I'm going to talk a little bit more about our breakouts and our demo rooms next door. But how about the power with no tower, from Christian, huh? Big round of applause. (audience applauds) And what about the concept card, the ThinkPad? Pretty good, huh? I love that as well. I tell you, it was almost like Leonardo DiCaprio was up on stage at one stage. He put that big ThinkPad concept up, and everyone's phones went straight up and took a photo, the whole audience, so let's be very selective on how we distribute that. I'm sure it's already on Twitter. I'll check it out in a second. So once again, ThinkPad brand is a core part of the organization, and together both DCG and PCSD, what we call PCSD, which is our client side of the business and Smart device side of the business, are obviously very very linked in transforming Lenovo for the future. We want to also transform the industry, obviously, and transform the way that all of us do business. Lenovo, if you look at basically a summary of the day, we are highly committed to being a top three data center provider. That is really important for us. We are the largest and fastest growing supercomputing company in the world, and Kirk actually mentioned earlier on, committed to being number one by 2020. So Madhu who is in Frankfurt at the International Supercomputing Convention, if you're watching, congratulations, your targets have gone up. There's no doubt he's going to have a lot of work to do. We're obviously very very committed to disrupting the data center. That's obviously really important for us. As we mentioned, with both the brands, the ThinkSystem, and our ThinkAgile brands now, highly focused on disrupting and ensuring that we do things differently because different is better. Thank you to our customers, our partners, media, analysts, and of course, once again, all of our employees who have been on this journey with us over the last two years that's really culminating today in the launch of all of our new products and our profile and our portfolio. It's really thanks to all of you that once again on your feedback we've been able to get to this day. And now really our journey truly begins in ensuring we are disrupting and enduring that we are bringing more value to our customers without that legacy that Kirk mentioned earlier on is really an advantage for us as we really are that large startup from a company perspective. It's an exciting time to be part of Lenovo. It's an exciting time to be associated with Lenovo, and I hope very much all of you feel that way. So a big round of applause for today, thank you very much. (audience applauds) I need to remind all of you. I don't think I'm going to have too much trouble getting you out there, because I was just looking at Christian on the streaming solutions out in the room out the back there, and there's quite a nice bit of lunch out there as well for those of you who are hungry, so at least there's some good food out there, but I think in reality all of you should be getting up into the demo sessions with our segment general managers because that's really where the rubber hits the road. You've heard from YY, you've heard from Kirk, and you've heard from Christian. All of our general managers and our specialists in our product sets are going to be out there to obviously demonstrate our technology. As we said at the very beginning of this session, this is Transform, obviously the fashion change, hopefully you remember that. Transform, we've all gone through the transformation. It's part of our season of events globally, and our next event obviously is going to be in Tech World in Shanghai on the 20th of July. I hope very much for those of you who are going to attend have a great safe travel over there. We look forward to seeing you. Hope you've had a good morning, and get into the sessions next door so you get to understand the technology. Thank you very much, ladies and gentlemen. (upbeat innovative instrumental)

Published Date : Jun 20 2017

SUMMARY :

This is Lenovo Transform. How are you all doing this morning? Not a cloud in the sky, perfect. One of the things about Lenovo that we say all the time... from the mobile Internet to the Smart Internet and the demo sessions with our segment general managers and the cost economics we get, and I just visited and the control of on-premise IT. and the feedback to date has been fantastic. and all of it based on the Intel Xeon scalable processor. and ThinkAgile, specifically. and it's an incredible innovation in the marketplace. the best of the best to our customers, and also in R&D to be able to deliver end-to-end solutions. Thank you. some of the technology to solve some of the most challenging Narrator: Different creates one of the most powerful in the world as you can see here. So maybe we can just talk a little bit Because all of the new racks have to be fully integrated from outside the company to look end to end about some of the new systems, the brands. Different builds the data center you need in the DCG space, and we are very much ready to disrupt. and change the way we work. and we are delighted to be one of your strategic partners, it's been a bit of a challenge over the past several months. and technology for workplace transformation, I've heard a lot of the same kinds of words Last question, what is your view on device and be able to pay as you go. It's a great pleasure to work with you, and most powerful features of the ThinkPad today. and get into the sessions next door

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Radhika Krishnan, Lenovo - Lenovo Transform 2017


 

(energetic music) >> Narrator: Live, from New York City, it's the CUBE. Covering Lenovo Transform 2017. Brought to you by Lenovo. Welcome back to the CUBE's coverage of Lenovo Transform. I'm your host Rebecca Knight, along with my co-host Stu Miniman. We are joined by Radhika Krishnan. She is the VP and GM of Software Defined Infrastructure at Lenovo. Thanks so much for joining us. You've been on before so, welcome back. >> Yes, I have and it's a pleasure to be back on again, thank you. >> So I want to start out by talking about something we've been hearing a lot about today, and that is Lenovo's lack of legacy and how that makes it easier for your company to innovate and to sell to customers. Can you talk a little bit about that from your vantage point? >> Absolutely, Rebecca. So if you look at our, and, you know, there are a lot of legacy vendors that have incumbent businesses that have been built on very customized, very proprietary offerings. I'll point to my own background. I spent a chunk of my career in storage, a chunk of my career in networking, and a chunk of my career in servers, and if you look across all of the offerings that come out from these vendors, these are usually high-margin; they're very rich offerings. And so, as the industry has moved toward software define, there is less of a motivation on the part of these vendors to really embrace software define entirely. Now, Lenovo does not have that baggage. We're not looking to protect any legacy businesses; there is no concern around cannibalizing an existing stream of revenue or profit. And so we are truly able to innovate from the ground up. >> Radhika, so, the software define really is the intersection of pulling some of those pieces into standard, typically x86, components. Can you bring us inside a little bit, the ThinkAgile, the new brand that's announced. Seems maybe you're going to get a new job title (laughter) to match that branding, but it feels like it all kind of pulls together to Lenovo's server as a core piece and then adding software on top of it. >> That is absolutely spot on, Stu. If you think about it, our code expertise is in building highly reliable, high performing servers and if you think about where software define is headed, it's all anchored around a core server platform or a platform that can deliver processing capabilities, which we're extremely capable. I mean, we've got the industry's best supply chain, as you heard. Highly reliable platforms, variety of benchmarks, and so forth. So we've got the basis, the foundation, for being able to innovate with software defined on top of it. >> Can you bring us inside the ThinkAgile family, as it were. There's some partnerships, there's OEM, there's some technology Lenovo has. What fits under this umbrella? What do we have today, and what's coming soon? >> Absolutely. So, the way we think about ThinkAgile is, we want to deliver to our customers the simplicity, the agility, and the cost economics that they may get in a public cloud in on-prem infrastructure. So, if you had to net it out, our vision really is to deliver on the benefits, and more and so, to that end, the way we have it architected is as two sets of offerings. So, we have appliances which essentially take capabilities, like software defined storage and hyper converge, blend them with our very capable platform, and deliver it as a turnkey offering. We're also bringing to market large scale solutions. Keeping in mind that there are customers that want to consume the entire infrastructure, end to end, in a single turnkey offering; we're bringing those to market as well. And we're seeing a very strong response for both of those types of flavors. >> When you're talking about innovation, and you're a tech veteran who has spent your career at various companies, large and small in the industry, how does Lenovo approach innovation? Especially because it is a large company, 43 billion in sales, 52,000 employees around the world. How do you stay in the start-up mindset, or do you? >> Well we absolutely do and that's actually one of the, as I mentioned earlier, Rebecca, we don't have the baggage of legacy and so if you look at how we're really approaching the software define space, you're exactly right; we're approaching it like an entrepreneur, very much in a start up mode. We're able to innovate from the ground up, which is exactly what we're doing. We're able to step back and look at it holistically from a standpoint of customer problems today. So there is no longer a, "Let's see if we can wedge in this other multi-million dollar business here, because that could then generate more revenue stream." It's really more around organically thinking through what customer problems are, applying a first principles-based approach, and then investing in it. So, from that standpoint, it is very exciting to be in an environment where you can truly operate in a start-up mode while you have the benefit of the very large sales teams that you alluded to, and the ability to invest in it as well. >> What is some of the managerial practices that enable that? I mean, one of the things that Rod was talking about in the very beginning, was there's no arrogance at Lenovo and that it really is part of the culture. Can you describe a little bit about how you do get customer feedback and how you do work with customers to solve these problems? >> Absolutely. So, I think a big part of it is the ability to listen. Humility starts with paying attention to your customers, paying attention to the stakeholders around you, so we definitely do a lot of that. The other thing I'll point to as well is there is a very distinct emphasis around agility. It's around the need to move quickly. As Stu and I were talking about prior to this session, this industry is going through a massive disruption. There's transformation happening everyday, as we speak, and therefore, it is very important to be tuned in to what is going on around you and to be able to deliver on what customers are truly seeking. So, yeah, I would stay humility is a big aspect of it. It's the agility, it's the hunger, the desire, to succeed as well. >> Radhika, specifically, what customers are asking for, I'm curious what you're hearing around hybrid cloud. I look at solutions that you're offering including, you've got the new Tenex solution, you've got the Microsoft Azure stack coming soon. What are you hearin' from customers? What do they look for in a hybrid cloud solution and how are you looking to deliver on that? >> Yeah, so that's a very interesting question, Stu, because over the years, many vendors in this space have talked about hybrid cloud but it's never really come of age, so to speak. And I think a large part of it is because there hasn't been enough of an understanding around how customers truly consume hybrid. One of the things we've done, in partnership with Microsoft, is to really profile how customers really want to consume this notion of hybrid. There are environments where you have a disconnected set of data centers, you have the edge and you have the central data center, and they need to be able to keep those two synchronized and aligned, and so on. There are use cases where ... You know, you truly want a hybrid nature. You want data sitting at both ends and you want to be able to execute test dev in your cloud environment and a primary workload running into your on-prem data center. And so, Microsoft Azure stack, in particular, I would point to as one hybrid cloud offering that we do have in the marketplace. A good partnering, very closely around, which truly addresses the problems that customers, or the desires that customers have in this space. >> When you're thinking about your customers, what keeps you up at night? You just were describing how customers aren't even sure themselves how hybrid they want to be and how they will use the cloud. What are your biggest concerns when you think about your customers and how they use Lenovo's offerings? >> Yeah, so, you know, I think at the core of it, you want to enable them to succeed. It's not so much about the IT infrastructure underneath, it's really about enabling them to drive their business as quickly as they can, to drive productivity, and so on. So, for us, it's very important that we stay aligned with their business objectives and eliminate the worry and concern that they typically have with IT infrastructure under their hood. Honestly, as we all in the industry tend to say, IT is a means to an end. And we truly want to enable that. We truly want to make this a non-issue for our customers. That's really what keeps us up at night, is ensuring that we have the right framework, the right portfolio, the right set of offerings, and more importantly, the right set of services to allow them to do that. >> Radhika, we all know that IT is typically spending way too much time with some of the basic blocking and tackling. The number I've heard the last 15 years is somewhere between 75% and 90% of your budget is spent on kind of keeping the lights on. What's holding us back? How are we actually moving the needle forward with some of these new solutions? >> I think a lot of it, interestingly, comes down to software define. I mean, if you think about it, software define enables a level of agility, simplicity, and cost economics as well that we weren't able to previously get from the more legacy hardware-centric offerings. So, I think your logic standard comes down to being able to deliver on the automation, the deep integration across hardware and software, which is really where we at Lenovo think we can add the most value because we've got the platforms, as we just talked about. So, we're really very keen on innovating on the software layer above it, such that customers can expect to get these highly verticalized offerings that they can then deploy for their workloads and various other business use cases. >> Alright, Radhika, we can't let you get out of here without talking about some of the networking pieces, with your background. Kirk talked about it a little bit, but, can you give us a little insight, what's Lenovo doing with the networking piece, some of the integrations that you're helping to deliver? >> Yeah, Stu, that's an area I feel incredibly proud of. I'll say that as I've spent the last couple of decades in the IT industry, it's becoming very evident there is simplicity that is continuing to grow. Obviously, we've come out with hyper converge, it solved the storage problem, it's made it a lot simpler to consume. Networking is really the next frontier. It's the frontier that hasn't been attacked yet. We're still talking about technologies that are in world that are like four decades old. And so this is ripe for a disruption. That's exactly what we're doing. As we go talk to our customers about deploying cloud data centers, scale out data centers, you know, they're telling us network traffic is flowing east, west and the equipment that they have has been architected for traffic that predominantly flows north, south. So, we're really helping simplify that challenge for them. We're coming out with tools, and we're announcing a couple of these today, we're coming out with tools that provide much better visibility with telemetry capabilities. We're providing them tools that allow them to apply policies, so, even as they deploy different types of workloads, they can specify quality of service and have that carried over to the network traffic as well. So, we're incredibly excited about what we're doing here in networking. >> So, what's the end for networking, in the sense of, as you said, it is an industry that is ripe for disruption. Where do you think we'll be 10 years from now, in terms of networking and in terms of visibility? >> Yeah, that's a very interesting question. I think networking has to evolve to where it is much, much, much more simplified. You don't need to have certifications that you have to gain over multiple years in order to qualify you to work in the data center. 'Cause it's, ultimately this is plumber, and as we go to scale out data centers, it's going to be incredibly important that nodes are able to talk to each other and data is fluid and is able to move around very quickly and networking is what enables it. So, the ultimate vision for networking is really making it invisible. Make it invisible to the point that you don't have to worry about it. >> Radhika, thank you so much for joining us. It's always a pleasure to have you on. >> Thank you, it's been my pleasure as well, appreciate it. >> I'm Rebecca Knight, for Stu Miniman, we'll be back with more of the CUBE's coverage of Lenovo Transform after this. (energetic music)

Published Date : Jun 20 2017

SUMMARY :

Brought to you by Lenovo. Yes, I have and it's a pleasure to be back on again, and how that makes it easier for your company and if you look across all of the offerings Radhika, so, the software define really is and if you think about where software define is headed, Can you bring us inside the ThinkAgile family, as it were. and more and so, to that end, and you're a tech veteran who has spent your career and the ability to invest in it as well. and that it really is part of the culture. to what is going on around you and to be able to deliver on and how are you looking to deliver on that? and they need to be able to keep those two synchronized when you think about your customers and concern that they typically have with IT is spent on kind of keeping the lights on. such that customers can expect to get Alright, Radhika, we can't let you get out of here and have that carried over to the network traffic as well. in the sense of, as you said, and data is fluid and is able to move around very quickly It's always a pleasure to have you on. we'll be back with more of the CUBE's coverage

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