Horizon3.ai Signal | Horizon3.ai Partner Program Expands Internationally
hello I'm John Furrier with thecube and welcome to this special presentation of the cube and Horizon 3.ai they're announcing a global partner first approach expanding their successful pen testing product Net Zero you're going to hear from leading experts in their staff their CEO positioning themselves for a successful Channel distribution expansion internationally in Europe Middle East Africa and Asia Pacific in this Cube special presentation you'll hear about the expansion the expanse partner program giving Partners a unique opportunity to offer Net Zero to their customers Innovation and Pen testing is going International with Horizon 3.ai enjoy the program [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're here with Jennifer Lee head of Channel sales at Horizon 3.ai Jennifer welcome to the cube thanks for coming on great well thank you for having me so big news around Horizon 3.aa driving Channel first commitment you guys are expanding the channel partner program to include all kinds of new rewards incentives training programs help educate you know Partners really drive more recurring Revenue certainly cloud and Cloud scale has done that you got a great product that fits into that kind of Channel model great Services you can wrap around it good stuff so let's get into it what are you guys doing what are what are you guys doing with this news why is this so important yeah for sure so um yeah we like you said we recently expanded our Channel partner program um the driving force behind it was really just um to align our like you said our Channel first commitment um and creating awareness around the importance of our partner ecosystems um so that's it's really how we go to market is is through the channel and a great International Focus I've talked with the CEO so you know about the solution and he broke down all the action on why it's important on the product side but why now on the go to market change what's the what's the why behind this big this news on the channel yeah for sure so um we are doing this now really to align our business strategy which is built on the concept of enabling our partners to create a high value high margin business on top of our platform and so um we offer a solution called node zero it provides autonomous pen testing as a service and it allows organizations to continuously verify their security posture um so we our company vision we have this tagline that states that our pen testing enables organizations to see themselves Through The Eyes of an attacker and um we use the like the attacker's perspective to identify exploitable weaknesses and vulnerabilities so we created this partner program from a perspective of the partner so the partner's perspective and we've built It Through The Eyes of our partner right so we're prioritizing really what the partner is looking for and uh will ensure like Mutual success for us yeah the partners always want to get in front of the customers and bring new stuff to them pen tests have traditionally been really expensive uh and so bringing it down in one to a service level that's one affordable and has flexibility to it allows a lot of capability so I imagine people getting excited by it so I have to ask you about the program What specifically are you guys doing can you share any details around what it means for the partners what they get what's in it for them can you just break down some of the mechanics and mechanisms or or details yeah yep um you know we're really looking to create business alignment um and like I said establish Mutual success with our partners so we've got two um two key elements that we were really focused on um that we bring to the partners so the opportunity the profit margin expansion is one of them and um a way for our partners to really differentiate themselves and stay relevant in the market so um we've restructured our discount model really um you know highlighting profitability and maximizing profitability and uh this includes our deal registration we've we've created deal registration program we've increased discount for partners who take part in our partner certification uh trainings and we've we have some other partner incentives uh that we we've created that that's going to help out there we've we put this all so we've recently Gone live with our partner portal um it's a Consolidated experience for our partners where they can access our our sales tools and we really view our partners as an extension of our sales and Technical teams and so we've extended all of our our training material that we use internally we've made it available to our partners through our partner portal um we've um I'm trying I'm thinking now back what else is in that partner portal here we've got our partner certification information so all the content that's delivered during that training can be found in the portal we've got deal registration uh um co-branded marketing materials pipeline management and so um this this portal gives our partners a One-Stop place to to go to find all that information um and then just really quickly on the second part of that that I mentioned is our technology really is um really disruptive to the market so you know like you said autonomous pen testing it's um it's still it's well it's still still relatively new topic uh for security practitioners and um it's proven to be really disruptive so um that on top of um just well recently we found an article that um that mentioned by markets and markets that reports that the global pen testing markets really expanding and so it's expected to grow to like 2.7 billion um by 2027. so the Market's there right the Market's expanding it's growing and so for our partners it's just really allows them to grow their revenue um across their customer base expand their customer base and offering this High profit margin while you know getting in early to Market on this just disruptive technology big Market a lot of opportunities to make some money people love to put more margin on on those deals especially when you can bring a great solution that everyone knows is hard to do so I think that's going to provide a lot of value is there is there a type of partner that you guys see emerging or you aligning with you mentioned the alignment with the partners I can see how that the training and the incentives are all there sounds like it's all going well is there a type of partner that's resonating the most or is there categories of partners that can take advantage of this yeah absolutely so we work with all different kinds of Partners we work with our traditional resale Partners um we've worked we're working with systems integrators we have a really strong MSP mssp program um we've got Consulting partners and the Consulting Partners especially with the ones that offer pen test services so we they use us as a as we act as a force multiplier just really offering them profit margin expansion um opportunity there we've got some technology partner partners that we really work with for co-cell opportunities and then we've got our Cloud Partners um you'd mentioned that earlier and so we are in AWS Marketplace so our ccpo partners we're part of the ISP accelerate program um so we we're doing a lot there with our Cloud partners and um of course we uh we go to market with uh distribution Partners as well gotta love the opportunity for more margin expansion every kind of partner wants to put more gross profit on their deals is there a certification involved I have to ask is there like do you get do people get certified or is it just you get trained is it self-paced training is it in person how are you guys doing the whole training certification thing because is that is that a requirement yeah absolutely so we do offer a certification program and um it's been very popular this includes a a seller's portion and an operator portion and and so um this is at no cost to our partners and um we operate both virtually it's it's law it's virtually but live it's not self-paced and we also have in person um you know sessions as well and we also can customize these to any partners that have a large group of people and we can just we can do one in person or virtual just specifically for that partner well any kind of incentive opportunities and marketing opportunities everyone loves to get the uh get the deals just kind of rolling in leads from what we can see if our early reporting this looks like a hot product price wise service level wise what incentive do you guys thinking about and and Joint marketing you mentioned co-sell earlier in pipeline so I was kind of kind of honing in on that piece sure and yes and then to follow along with our partner certification program we do incentivize our partners there if they have a certain number certified their discount increases so that's part of it we have our deal registration program that increases discount as well um and then we do have some um some partner incentives that are wrapped around meeting setting and um moving moving opportunities along to uh proof of value gotta love the education driving value I have to ask you so you've been around the industry you've seen the channel relationships out there you're seeing companies old school new school you know uh Horizon 3.ai is kind of like that new school very cloud specific a lot of Leverage with we mentioned AWS and all the clouds um why is the company so hot right now why did you join them and what's why are people attracted to this company what's the what's the attraction what's the vibe what do you what do you see and what what do you use what did you see in in this company well this is just you know like I said it's very disruptive um it's really in high demand right now and um and and just because because it's new to Market and uh a newer technology so we are we can collaborate with a manual pen tester um we can you know we can allow our customers to run their pen test um with with no specialty teams and um and and then so we and like you know like I said we can allow our partners can actually build businesses profitable businesses so we can they can use our product to increase their services revenue and um and build their business model you know around around our services what's interesting about the pen test thing is that it's very expensive and time consuming the people who do them are very talented people that could be working on really bigger things in the in absolutely customers so bringing this into the channel allows them if you look at the price Delta between a pen test and then what you guys are offering I mean that's a huge margin Gap between street price of say today's pen test and what you guys offer when you show people that they follow do they say too good to be true I mean what are some of the things that people say when you kind of show them that are they like scratch their head like come on what's the what's the catch here right so the cost savings is a huge is huge for us um and then also you know like I said working as a force multiplier with a pen testing company that offers the services and so they can they can do their their annual manual pen tests that may be required around compliance regulations and then we can we can act as the continuous verification of their security um um you know that that they can run um weekly and so it's just um you know it's just an addition to to what they're offering already and an expansion so Jennifer thanks for coming on thecube really appreciate you uh coming on sharing the insights on the channel uh what's next what can we expect from the channel group what are you thinking what's going on right so we're really looking to expand our our Channel um footprint and um very strategically uh we've got um we've got some big plans um for for Horizon 3.ai awesome well thanks for coming on really appreciate it you're watching thecube the leader in high tech Enterprise coverage [Music] [Music] hello and welcome to the Cube's special presentation with Horizon 3.ai with Raina Richter vice president of emea Europe Middle East and Africa and Asia Pacific APAC for Horizon 3 today welcome to this special Cube presentation thanks for joining us thank you for the invitation so Horizon 3 a guy driving Global expansion big international news with a partner first approach you guys are expanding internationally let's get into it you guys are driving this new expanse partner program to new heights tell us about it what are you seeing in the momentum why the expansion what's all the news about well I would say uh yeah in in international we have I would say a similar similar situation like in the US um there is a global shortage of well-educated penetration testers on the one hand side on the other side um we have a raising demand of uh network and infrastructure security and with our approach of an uh autonomous penetration testing I I believe we are totally on top of the game um especially as we have also now uh starting with an international instance that means for example if a customer in Europe is using uh our service node zero he will be connected to a node zero instance which is located inside the European Union and therefore he has doesn't have to worry about the conflict between the European the gdpr regulations versus the US Cloud act and I would say there we have a total good package for our partners that they can provide differentiators to their customers you know we've had great conversations here on thecube with the CEO and the founder of the company around the leverage of the cloud and how successful that's been for the company and honestly I can just Connect the Dots here but I'd like you to weigh in more on how that translates into the go to market here because you got great Cloud scale with with the security product you guys are having success with great leverage there I've seen a lot of success there what's the momentum on the channel partner program internationally why is it so important to you is it just the regional segmentation is it the economics why the momentum well there are it's there are multiple issues first of all there is a raising demand in penetration testing um and don't forget that uh in international we have a much higher level in number a number or percentage in SMB and mid-market customers so these customers typically most of them even didn't have a pen test done once a year so for them pen testing was just too expensive now with our offering together with our partners we can provide different uh ways how customers could get an autonomous pen testing done more than once a year with even lower costs than they had with with a traditional manual paint test so and that is because we have our uh Consulting plus package which is for typically pain testers they can go out and can do a much faster much quicker and their pain test at many customers once in after each other so they can do more pain tests on a lower more attractive price on the other side there are others what even the same ones who are providing um node zero as an mssp service so they can go after s p customers saying okay well you only have a couple of hundred uh IP addresses no worries we have the perfect package for you and then you have let's say the mid Market let's say the thousands and more employees then they might even have an annual subscription very traditional but for all of them it's all the same the customer or the service provider doesn't need a piece of Hardware they only need to install a small piece of a Docker container and that's it and that makes it so so smooth to go in and say okay Mr customer we just put in this this virtual attacker into your network and that's it and and all the rest is done and within within three clicks they are they can act like a pen tester with 20 years of experience and that's going to be very Channel friendly and partner friendly I can almost imagine so I have to ask you and thank you for calling the break calling out that breakdown and and segmentation that was good that was very helpful for me to understand but I want to follow up if you don't mind um what type of partners are you seeing the most traction with and why well I would say at the beginning typically you have the the innovators the early adapters typically Boutique size of Partners they start because they they are always looking for Innovation and those are the ones you they start in the beginning so we have a wide range of Partners having mostly even um managed by the owner of the company so uh they immediately understand okay there is the value and they can change their offering they're changing their offering in terms of penetration testing because they can do more pen tests and they can then add other ones or we have those ones who offer 10 tests services but they did not have their own pen testers so they had to go out on the open market and Source paint testing experts um to get the pen test at a particular customer done and now with node zero they're totally independent they can't go out and say okay Mr customer here's the here's the service that's it we turn it on and within an hour you're up and running totally yeah and those pen tests are usually expensive and hard to do now it's right in line with the sales delivery pretty interesting for a partner absolutely but on the other hand side we are not killing the pain testers business we do something we're providing with no tiers I would call something like the foundation work the foundational work of having an an ongoing penetration testing of the infrastructure the operating system and the pen testers by themselves they can concentrate in the future on things like application pen testing for example so those Services which we we're not touching so we're not killing the paint tester Market we're just taking away the ongoing um let's say foundation work call it that way yeah yeah that was one of my questions I was going to ask is there's a lot of interest in this autonomous pen testing one because it's expensive to do because those skills are required are in need and they're expensive so you kind of cover the entry level and the blockers that are in there I've seen people say to me this pen test becomes a blocker for getting things done so there's been a lot of interest in the autonomous pen testing and for organizations to have that posture and it's an overseas issue too because now you have that that ongoing thing so can you explain that particular benefit for an organization to have that continuously verifying an organization's posture yep certainly so I would say um typically you are you you have to do your patches you have to bring in new versions of operating systems of different Services of uh um operating systems of some components and and they are always bringing new vulnerabilities the difference here is that with node zero we are telling the customer or the partner package we're telling them which are the executable vulnerabilities because previously they might have had um a vulnerability scanner so this vulnerability scanner brought up hundreds or even thousands of cves but didn't say anything about which of them are vulnerable really executable and then you need an expert digging in one cve after the other finding out is it is it really executable yes or no and that is where you need highly paid experts which we have a shortage so with notes here now we can say okay we tell you exactly which ones are the ones you should work on because those are the ones which are executable we rank them accordingly to the risk level how easily they can be used and by a sudden and then the good thing is convert it or indifference to the traditional penetration test they don't have to wait for a year for the next pain test to find out if the fixing was effective they weren't just the next scan and say Yes closed vulnerability is gone the time is really valuable and if you're doing any devops Cloud native you're always pushing new things so pen test ongoing pen testing is actually a benefit just in general as a kind of hygiene so really really interesting solution really bring that global scale is going to be a new new coverage area for us for sure I have to ask you if you don't mind answering what particular region are you focused on or plan to Target for this next phase of growth well at this moment we are concentrating on the countries inside the European Union Plus the United Kingdom um but we are and they are of course logically I'm based into Frankfurt area that means we cover more or less the countries just around so it's like the total dark region Germany Switzerland Austria plus the Netherlands but we also already have Partners in the nordics like in Finland or in Sweden um so it's it's it it's rapidly we have Partners already in the UK and it's rapidly growing so I'm for example we are now starting with some activities in Singapore um um and also in the in the Middle East area um very important we uh depending on let's say the the way how to do business currently we try to concentrate on those countries where we can have um let's say um at least English as an accepted business language great is there any particular region you're having the most success with right now is it sounds like European Union's um kind of first wave what's them yes that's the first definitely that's the first wave and now we're also getting the uh the European instance up and running it's clearly our commitment also to the market saying okay we know there are certain dedicated uh requirements and we take care of this and and we're just launching it we're building up this one uh the instance um in the AWS uh service center here in Frankfurt also with some dedicated Hardware internet in a data center in Frankfurt where we have with the date six by the way uh the highest internet interconnection bandwidth on the planet so we have very short latency to wherever you are on on the globe that's a great that's a great call outfit benefit too I was going to ask that what are some of the benefits your partners are seeing in emea and Asia Pacific well I would say um the the benefits is for them it's clearly they can they can uh talk with customers and can offer customers penetration testing which they before and even didn't think about because it penetrates penetration testing in a traditional way was simply too expensive for them too complex the preparation time was too long um they didn't have even have the capacity uh to um to support a pain an external pain tester now with this service you can go in and say even if they Mr customer we can do a test with you in a couple of minutes within we have installed the docker container within 10 minutes we have the pen test started that's it and then we just wait and and I would say that is we'll we are we are seeing so many aha moments then now because on the partner side when they see node zero the first time working it's like this wow that is great and then they work out to customers and and show it to their typically at the beginning mostly the friendly customers like wow that's great I need that and and I would say um the feedback from the partners is that is a service where I do not have to evangelize the customer everybody understands penetration testing I don't have to say describe what it is they understand the customer understanding immediately yes penetration testing good about that I know I should do it but uh too complex too expensive now with the name is for example as an mssp service provided from one of our partners but it's getting easy yeah it's great and it's great great benefit there I mean I gotta say I'm a huge fan of what you guys are doing I like this continuous automation that's a major benefit to anyone doing devops or any kind of modern application development this is just a godsend for them this is really good and like you said the pen testers that are doing it they were kind of coming down from their expertise to kind of do things that should have been automated they get to focus on the bigger ticket items that's a really big point so we free them we free the pain testers for the higher level elements of the penetration testing segment and that is typically the application testing which is currently far away from being automated yeah and that's where the most critical workloads are and I think this is the nice balance congratulations on the international expansion of the program and thanks for coming on this special presentation really I really appreciate it thank you you're welcome okay this is thecube special presentation you know check out pen test automation International expansion Horizon 3 dot AI uh really Innovative solution in our next segment Chris Hill sector head for strategic accounts will discuss the power of Horizon 3.ai and Splunk in action you're watching the cube the leader in high tech Enterprise coverage foreign [Music] [Music] welcome back everyone to the cube and Horizon 3.ai special presentation I'm John Furrier host of thecube we're with Chris Hill sector head for strategic accounts and federal at Horizon 3.ai a great Innovative company Chris great to see you thanks for coming on thecube yeah like I said uh you know great to meet you John long time listener first time caller so excited to be here with you guys yeah we were talking before camera you had Splunk back in 2013 and I think 2012 was our first splunk.com and boy man you know talk about being in the right place at the right time now we're at another inflection point and Splunk continues to be relevant um and continuing to have that data driving Security in that interplay and your CEO former CTO of his plug as well at Horizon who's been on before really Innovative product you guys have but you know yeah don't wait for a breach to find out if you're logging the right data this is the topic of this thread Splunk is very much part of this new international expansion announcement uh with you guys tell us what are some of the challenges that you see where this is relevant for the Splunk and Horizon AI as you guys expand uh node zero out internationally yeah well so across so you know my role uh within Splunk it was uh working with our most strategic accounts and so I looked back to 2013 and I think about the sales process like working with with our small customers you know it was um it was still very siled back then like I was selling to an I.T team that was either using this for it operations um we generally would always even say yeah although we do security we weren't really designed for it we're a log management tool and we I'm sure you remember back then John we were like sort of stepping into the security space and and the public sector domain that I was in you know security was 70 of what we did when I look back to sort of uh the transformation that I was witnessing in that digital transformation um you know when I look at like 2019 to today you look at how uh the IT team and the security teams are being have been forced to break down those barriers that they used to sort of be silent away would not commute communicate one you know the security guys would be like oh this is my box I.T you're not allowed in today you can't get away with that and I think that the value that we bring to you know and of course Splunk has been a huge leader in that space and continues to do Innovation across the board but I think what we've we're seeing in the space and I was talking with Patrick Coughlin the SVP of uh security markets about this is that you know what we've been able to do with Splunk is build a purpose-built solution that allows Splunk to eat more data so Splunk itself is ulk know it's an ingest engine right the great reason people bought it was you could build these really fast dashboards and grab intelligence out of it but without data it doesn't do anything right so how do you drive and how do you bring more data in and most importantly from a customer perspective how do you bring the right data in and so if you think about what node zero and what we're doing in a horizon 3 is that sure we do pen testing but because we're an autonomous pen testing tool we do it continuously so this whole thought I'd be like oh crud like my customers oh yeah we got a pen test coming up it's gonna be six weeks the week oh yeah you know and everyone's gonna sit on their hands call me back in two months Chris we'll talk to you then right not not a real efficient way to test your environment and shoot we saw that with Uber this week right um you know and that's a case where we could have helped oh just right we could explain the Uber thing because it was a contractor just give a quick highlight of what happened so you can connect the doctor yeah no problem so um it was uh I got I think it was yeah one of those uh you know games where they would try and test an environment um and with the uh pen tester did was he kept on calling them MFA guys being like I need to reset my password we need to set my right password and eventually the um the customer service guy said okay I'm resetting it once he had reset and bypassed the multi-factor authentication he then was able to get in and get access to the building area that he was in or I think not the domain but he was able to gain access to a partial part of that Network he then paralleled over to what I would assume is like a VA VMware or some virtual machine that had notes that had all of the credentials for logging into various domains and So within minutes they had access and that's the sort of stuff that we do you know a lot of these tools like um you know you think about the cacophony of tools that are out there in a GTA architect architecture right I'm gonna get like a z-scale or I'm going to have uh octum and I have a Splunk I've been into the solar system I mean I don't mean to name names we have crowdstriker or Sentinel one in there it's just it's a cacophony of things that don't work together they weren't designed work together and so we have seen so many times in our business through our customer support and just working with customers when we do their pen tests that there will be 5 000 servers out there three are misconfigured those three misconfigurations will create the open door because remember the hacker only needs to be right once the defender needs to be right all the time and that's the challenge and so that's what I'm really passionate about what we're doing uh here at Horizon three I see this my digital transformation migration and security going on which uh we're at the tip of the spear it's why I joined sey Hall coming on this journey uh and just super excited about where the path's going and super excited about the relationship with Splunk I get into more details on some of the specifics of that but um you know well you're nailing I mean we've been doing a lot of things on super cloud and this next gen environment we're calling it next gen you're really seeing devops obviously devsecops has already won the it role has moved to the developer shift left is an indicator of that it's one of the many examples higher velocity code software supply chain you hear these things that means that it is now in the developer hands it is replaced by the new Ops data Ops teams and security where there's a lot of horizontal thinking to your point about access there's no more perimeter huge 100 right is really right on things one time you know to get in there once you're in then you can hang out move around move laterally big problem okay so we get that now the challenges for these teams as they are transitioning organizationally how do they figure out what to do okay this is the next step they already have Splunk so now they're kind of in transition while protecting for a hundred percent ratio of success so how would you look at that and describe the challenge is what do they do what is it what are the teams facing with their data and what's next what are they what are they what action do they take so let's use some vernacular that folks will know so if I think about devsecops right we both know what that means that I'm going to build security into the app it normally talks about sec devops right how am I building security around the perimeter of what's going inside my ecosystem and what are they doing and so if you think about what we're able to do with somebody like Splunk is we can pen test the entire environment from Soup To Nuts right so I'm going to test the end points through to its I'm going to look for misconfigurations I'm going to I'm going to look for um uh credential exposed credentials you know I'm going to look for anything I can in the environment again I'm going to do it at light speed and and what what we're doing for that SEC devops space is to you know did you detect that we were in your environment so did we alert Splunk or the Sim that there's someone in the environment laterally moving around did they more importantly did they log us into their environment and when do they detect that log to trigger that log did they alert on us and then finally most importantly for every CSO out there is going to be did they stop us and so that's how we we do this and I think you when speaking with um stay Hall before you know we've come up with this um boils but we call it fine fix verifying so what we do is we go in is we act as the attacker right we act in a production environment so we're not going to be we're a passive attacker but we will go in on credentialed on agents but we have to assume to have an assumed breach model which means we're going to put a Docker container in your environment and then we're going to fingerprint the environment so we're going to go out and do an asset survey now that's something that's not something that Splunk does super well you know so can Splunk see all the assets do the same assets marry up we're going to log all that data and think and then put load that into this long Sim or the smoke logging tools just to have it in Enterprise right that's an immediate future ad that they've got um and then we've got the fix so once we've completed our pen test um we are then going to generate a report and we can talk about these in a little bit later but the reports will show an executive summary the assets that we found which would be your asset Discovery aspect of that a fix report and the fixed report I think is probably the most important one it will go down and identify what we did how we did it and then how to fix that and then from that the pen tester or the organization should fix those then they go back and run another test and then they validate like a change detection environment to see hey did those fixes taste play take place and you know snehaw when he was the CTO of jsoc he shared with me a number of times about it's like man there would be 15 more items on next week's punch sheet that we didn't know about and it's and it has to do with how we you know how they were uh prioritizing the cves and whatnot because they would take all CBDs it was critical or non-critical and it's like we are able to create context in that environment that feeds better information into Splunk and whatnot that brings that brings up the efficiency for Splunk specifically the teams out there by the way the burnout thing is real I mean this whole I just finished my list and I got 15 more or whatever the list just can keeps growing how did node zero specifically help Splunk teams be more efficient like that's the question I want to get at because this seems like a very scale way for Splunk customers and teams service teams to be more so the question is how does node zero help make Splunk specifically their service teams be more efficient so so today in our early interactions we're building customers we've seen are five things um and I'll start with sort of identifying the blind spots right so kind of what I just talked about with you did we detect did we log did we alert did they stop node zero right and so I would I put that you know a more Layman's third grade term and if I was going to beat a fifth grader at this game would be we can be the sparring partner for a Splunk Enterprise customer a Splunk Essentials customer someone using Splunk soar or even just an Enterprise Splunk customer that may be a small shop with three people and just wants to know where am I exposed so by creating and generating these reports and then having um the API that actually generates the dashboard they can take all of these events that we've logged and log them in and then where that then comes in is number two is how do we prioritize those logs right so how do we create visibility to logs that that um are have critical impacts and again as I mentioned earlier not all cves are high impact regard and also not all or low right so if you daisy chain a bunch of low cves together boom I've got a mission critical AP uh CPE that needs to be fixed now such as a credential moving to an NT box that's got a text file with a bunch of passwords on it that would be very bad um and then third would be uh verifying that you have all of the hosts so one of the things that splunk's not particularly great at and they'll literate themselves they don't do asset Discovery so dude what assets do we see and what are they logging from that um and then for from um for every event that they are able to identify one of the cool things that we can do is actually create this low code no code environment so they could let you know Splunk customers can use Splunk sword to actually triage events and prioritize that event so where they're being routed within it to optimize the Sox team time to Market or time to triage any given event obviously reducing MTR and then finally I think one of the neatest things that we'll be seeing us develop is um our ability to build glass cables so behind me you'll see one of our triage events and how we build uh a Lockheed Martin kill chain on that with a glass table which is very familiar to the community we're going to have the ability and not too distant future to allow people to search observe on those iocs and if people aren't familiar with it ioc it's an instant of a compromise so that's a vector that we want to drill into and of course who's better at Drilling in the data and smoke yeah this is a critter this is an awesome Synergy there I mean I can see a Splunk customer going man this just gives me so much more capability action actionability and also real understanding and I think this is what I want to dig into if you don't mind understanding that critical impact okay is kind of where I see this coming got the data data ingest now data's data but the question is what not to log you know where are things misconfigured these are critical questions so can you talk about what it means to understand critical impact yeah so I think you know going back to the things that I just spoke about a lot of those cves where you'll see um uh low low low and then you daisy chain together and they're suddenly like oh this is high now but then your other impact of like if you're if you're a Splunk customer you know and I had it I had several of them I had one customer that you know terabytes of McAfee data being brought in and it was like all right there's a lot of other data that you probably also want to bring but they could only afford wanted to do certain data sets because that's and they didn't know how to prioritize or filter those data sets and so we provide that opportunity to say hey these are the critical ones to bring in but there's also the ones that you don't necessarily need to bring in because low cve in this case really does mean low cve like an ILO server would be one that um that's the print server uh where the uh your admin credentials are on on like a printer and so there will be credentials on that that's something that a hacker might go in to look at so although the cve on it is low is if you daisy chain with somebody that's able to get into that you might say Ah that's high and we would then potentially rank it giving our AI logic to say that's a moderate so put it on the scale and we prioritize those versus uh of all of these scanners just going to give you a bunch of CDs and good luck and translating that if I if I can and tell me if I'm wrong that kind of speaks to that whole lateral movement that's it challenge right print serve a great example looks stupid low end who's going to want to deal with the print server oh but it's connected into a critical system there's a path is that kind of what you're getting at yeah I use Daisy Chain I think that's from the community they came from uh but it's just a lateral movement it's exactly what they're doing in those low level low critical lateral movements is where the hackers are getting in right so that's the beauty thing about the uh the Uber example is that who would have thought you know I've got my monthly Factor authentication going in a human made a mistake we can't we can't not expect humans to make mistakes we're fallible right the reality is is once they were in the environment they could have protected themselves by running enough pen tests to know that they had certain uh exposed credentials that would have stopped the breach and they did not had not done that in their environment and I'm not poking yeah but it's an interesting Trend though I mean it's obvious if sometimes those low end items are also not protected well so it's easy to get at from a hacker standpoint but also the people in charge of them can be fished easily or spearfished because they're not paying attention because they don't have to no one ever told them hey be careful yeah for the community that I came from John that's exactly how they they would uh meet you at a uh an International Event um introduce themselves as a graduate student these are National actor States uh would you mind reviewing my thesis on such and such and I was at Adobe at the time that I was working on this instead of having to get the PDF they opened the PDF and whoever that customer was launches and I don't know if you remember back in like 2008 time frame there was a lot of issues around IP being by a nation state being stolen from the United States and that's exactly how they did it and John that's or LinkedIn hey I want to get a joke we want to hire you double the salary oh I'm gonna click on that for sure you know yeah right exactly yeah the one thing I would say to you is like uh when we look at like sort of you know because I think we did 10 000 pen tests last year is it's probably over that now you know we have these sort of top 10 ways that we think and find people coming into the environment the funniest thing is that only one of them is a cve related vulnerability like uh you know you guys know what they are right so it's it but it's it's like two percent of the attacks are occurring through the cves but yeah there's all that attention spent to that and very little attention spent to this pen testing side which is sort of this continuous threat you know monitoring space and and this vulnerability space where I think we play a such an important role and I'm so excited to be a part of the tip of the spear on this one yeah I'm old enough to know the movie sneakers which I loved as a you know watching that movie you know professional hackers are testing testing always testing the environment I love this I got to ask you as we kind of wrap up here Chris if you don't mind the the benefits to Professional Services from this Alliance big news Splunk and you guys work well together we see that clearly what are what other benefits do Professional Services teams see from the Splunk and Horizon 3.ai Alliance so if you're I think for from our our from both of our uh Partners uh as we bring these guys together and many of them already are the same partner right uh is that uh first off the licensing model is probably one of the key areas that we really excel at so if you're an end user you can buy uh for the Enterprise by the number of IP addresses you're using um but uh if you're a partner working with this there's solution ways that you can go in and we'll license as to msps and what that business model on msps looks like but the unique thing that we do here is this C plus license and so the Consulting plus license allows like a uh somebody a small to mid-sized to some very large uh you know Fortune 100 uh consulting firms use this uh by buying into a license called um Consulting plus where they can have unlimited uh access to as many IPS as they want but you can only run one test at a time and as you can imagine when we're going and hacking passwords and um checking hashes and decrypting hashes that can take a while so but for the right customer it's it's a perfect tool and so I I'm so excited about our ability to go to market with uh our partners so that we understand ourselves understand how not to just sell to or not tell just to sell through but we know how to sell with them as a good vendor partner I think that that's one thing that we've done a really good job building bring it into the market yeah I think also the Splunk has had great success how they've enabled uh partners and Professional Services absolutely you know the services that layer on top of Splunk are multi-fold tons of great benefits so you guys Vector right into that ride that way with friction and and the cool thing is that in you know in one of our reports which could be totally customized uh with someone else's logo we're going to generate you know so I I used to work in another organization it wasn't Splunk but we we did uh you know pen testing as for for customers and my pen testers would come on site they'd do the engagement and they would leave and then another release someone would be oh shoot we got another sector that was breached and they'd call you back you know four weeks later and so by August our entire pen testings teams would be sold out and it would be like well even in March maybe and they're like no no I gotta breach now and and and then when they do go in they go through do the pen test and they hand over a PDF and they pack on the back and say there's where your problems are you need to fix it and the reality is that what we're going to generate completely autonomously with no human interaction is we're going to go and find all the permutations of anything we found and the fix for those permutations and then once you've fixed everything you just go back and run another pen test it's you know for what people pay for one pen test they can have a tool that does that every every Pat patch on Tuesday and that's on Wednesday you know triage throughout the week green yellow red I wanted to see the colors show me green green is good right not red and one CIO doesn't want who doesn't want that dashboard right it's it's exactly it and we can help bring I think that you know I'm really excited about helping drive this with the Splunk team because they get that they understand that it's the green yellow red dashboard and and how do we help them find more green uh so that the other guys are in red yeah and get in the data and do the right thing and be efficient with how you use the data know what to look at so many things to pay attention to you know the combination of both and then go to market strategy real brilliant congratulations Chris thanks for coming on and sharing um this news with the detail around the Splunk in action around the alliance thanks for sharing John my pleasure thanks look forward to seeing you soon all right great we'll follow up and do another segment on devops and I.T and security teams as the new new Ops but and super cloud a bunch of other stuff so thanks for coming on and our next segment the CEO of horizon 3.aa will break down all the new news for us here on thecube you're watching thecube the leader in high tech Enterprise coverage [Music] yeah the partner program for us has been fantastic you know I think prior to that you know as most organizations most uh uh most Farmers most mssps might not necessarily have a a bench at all for penetration testing uh maybe they subcontract this work out or maybe they do it themselves but trying to staff that kind of position can be incredibly difficult for us this was a differentiator a a new a new partner a new partnership that allowed us to uh not only perform services for our customers but be able to provide a product by which that they can do it themselves so we work with our customers in a variety of ways some of them want more routine testing and perform this themselves but we're also a certified service provider of horizon 3 being able to perform uh penetration tests uh help review the the data provide color provide analysis for our customers in a broader sense right not necessarily the the black and white elements of you know what was uh what's critical what's high what's medium what's low what you need to fix but are there systemic issues this has allowed us to onboard new customers this has allowed us to migrate some penetration testing services to us from from competitors in the marketplace But ultimately this is occurring because the the product and the outcome are special they're unique and they're effective our customers like what they're seeing they like the routineness of it many of them you know again like doing this themselves you know being able to kind of pen test themselves parts of their networks um and the the new use cases right I'm a large organization I have eight to ten Acquisitions per year wouldn't it be great to have a tool to be able to perform a penetration test both internal and external of that acquisition before we integrate the two companies and maybe bringing on some risk it's a very effective partnership uh one that really is uh kind of taken our our Engineers our account Executives by storm um you know this this is a a partnership that's been very valuable to us [Music] a key part of the value and business model at Horizon 3 is enabling Partners to leverage node zero to make more revenue for themselves our goal is that for sixty percent of our Revenue this year will be originated by partners and that 95 of our Revenue next year will be originated by partners and so a key to that strategy is making us an integral part of your business models as a partner a key quote from one of our partners is that we enable every one of their business units to generate Revenue so let's talk about that in a little bit more detail first is that if you have a pen test Consulting business take Deloitte as an example what was six weeks of human labor at Deloitte per pen test has been cut down to four days of Labor using node zero to conduct reconnaissance find all the juicy interesting areas of the of the Enterprise that are exploitable and being able to go assess the entire organization and then all of those details get served up to the human to be able to look at understand and determine where to probe deeper so what you see in that pen test Consulting business is that node zero becomes a force multiplier where those Consulting teams were able to cover way more accounts and way more IPS within those accounts with the same or fewer consultants and so that directly leads to profit margin expansion for the Penn testing business itself because node 0 is a force multiplier the second business model here is if you're an mssp as an mssp you're already making money providing defensive cyber security operations for a large volume of customers and so what they do is they'll license node zero and use us as an upsell to their mssb business to start to deliver either continuous red teaming continuous verification or purple teaming as a service and so in that particular business model they've got an additional line of Revenue where they can increase the spend of their existing customers by bolting on node 0 as a purple team as a service offering the third business model or customer type is if you're an I.T services provider so as an I.T services provider you make money installing and configuring security products like Splunk or crowdstrike or hemio you also make money reselling those products and you also make money generating follow-on services to continue to harden your customer environments and so for them what what those it service providers will do is use us to verify that they've installed Splunk correctly improved to their customer that Splunk was installed correctly or crowdstrike was installed correctly using our results and then use our results to drive follow-on services and revenue and then finally we've got the value-added reseller which is just a straight up reseller because of how fast our sales Cycles are these vars are able to typically go from cold email to deal close in six to eight weeks at Horizon 3 at least a single sales engineer is able to run 30 to 50 pocs concurrently because our pocs are very lightweight and don't require any on-prem customization or heavy pre-sales post sales activity so as a result we're able to have a few amount of sellers driving a lot of Revenue and volume for us well the same thing applies to bars there isn't a lot of effort to sell the product or prove its value so vars are able to sell a lot more Horizon 3 node zero product without having to build up a huge specialist sales organization so what I'm going to do is talk through uh scenario three here as an I.T service provider and just how powerful node zero can be in driving additional Revenue so in here think of for every one dollar of node zero license purchased by the IT service provider to do their business it'll generate ten dollars of additional revenue for that partner so in this example kidney group uses node 0 to verify that they have installed and deployed Splunk correctly so Kitty group is a Splunk partner they they sell it services to install configure deploy and maintain Splunk and as they deploy Splunk they're going to use node 0 to attack the environment and make sure that the right logs and alerts and monitoring are being handled within the Splunk deployment so it's a way of doing QA or verifying that Splunk has been configured correctly and that's going to be internally used by kidney group to prove the quality of their services that they've just delivered then what they're going to do is they're going to show and leave behind that node zero Report with their client and that creates a resell opportunity for for kidney group to resell node 0 to their client because their client is seeing the reports and the results and saying wow this is pretty amazing and those reports can be co-branded where it's a pen testing report branded with kidney group but it says powered by Horizon three under it from there kidney group is able to take the fixed actions report that's automatically generated with every pen test through node zero and they're able to use that as the starting point for a statement of work to sell follow-on services to fix all of the problems that node zero identified fixing l11r misconfigurations fixing or patching VMware or updating credentials policies and so on so what happens is node 0 has found a bunch of problems the client often lacks the capacity to fix and so kidney group can use that lack of capacity by the client as a follow-on sales opportunity for follow-on services and finally based on the findings from node zero kidney group can look at that report and say to the customer you know customer if you bought crowdstrike you'd be able to uh prevent node Zero from attacking and succeeding in the way that it did for if you bought humano or if you bought Palo Alto networks or if you bought uh some privileged access management solution because of what node 0 was able to do with credential harvesting and attacks and so as a result kidney group is able to resell other security products within their portfolio crowdstrike Falcon humano Polito networks demisto Phantom and so on based on the gaps that were identified by node zero and that pen test and what that creates is another feedback loop where kidney group will then go use node 0 to verify that crowdstrike product has actually been installed and configured correctly and then this becomes the cycle of using node 0 to verify a deployment using that verification to drive a bunch of follow-on services and resell opportunities which then further drives more usage of the product now the way that we licensed is that it's a usage-based license licensing model so that the partner will grow their node zero Consulting plus license as they grow their business so for example if you're a kidney group then week one you've got you're going to use node zero to verify your Splunk install in week two if you have a pen testing business you're going to go off and use node zero to be a force multiplier for your pen testing uh client opportunity and then if you have an mssp business then in week three you're going to use node zero to go execute a purple team mssp offering for your clients so not necessarily a kidney group but if you're a Deloitte or ATT these larger companies and you've got multiple lines of business if you're Optive for instance you all you have to do is buy one Consulting plus license and you're going to be able to run as many pen tests as you want sequentially so now you can buy a single license and use that one license to meet your week one client commitments and then meet your week two and then meet your week three and as you grow your business you start to run multiple pen tests concurrently so in week one you've got to do a Splunk verify uh verify Splunk install and you've got to run a pen test and you've got to do a purple team opportunity you just simply expand the number of Consulting plus licenses from one license to three licenses and so now as you systematically grow your business you're able to grow your node zero capacity with you giving you predictable cogs predictable margins and once again 10x additional Revenue opportunity for that investment in the node zero Consulting plus license my name is Saint I'm the co-founder and CEO here at Horizon 3. I'm going to talk to you today about why it's important to look at your Enterprise Through The Eyes of an attacker the challenge I had when I was a CIO in banking the CTO at Splunk and serving within the Department of Defense is that I had no idea I was Secure until the bad guys had showed up am I logging the right data am I fixing the right vulnerabilities are my security tools that I've paid millions of dollars for actually working together to defend me and the answer is I don't know does my team actually know how to respond to a breach in the middle of an incident I don't know I've got to wait for the bad guys to show up and so the challenge I had was how do we proactively verify our security posture I tried a variety of techniques the first was the use of vulnerability scanners and the challenge with vulnerability scanners is being vulnerable doesn't mean you're exploitable I might have a hundred thousand findings from my scanner of which maybe five or ten can actually be exploited in my environment the other big problem with scanners is that they can't chain weaknesses together from machine to machine so if you've got a thousand machines in your environment or more what a vulnerability scanner will do is tell you you have a problem on machine one and separately a problem on machine two but what they can tell you is that an attacker could use a load from machine one plus a low from machine two to equal to critical in your environment and what attackers do in their tactics is they chain together misconfigurations dangerous product defaults harvested credentials and exploitable vulnerabilities into attack paths across different machines so to address the attack pads across different machines I tried layering in consulting-based pen testing and the issue is when you've got thousands of hosts or hundreds of thousands of hosts in your environment human-based pen testing simply doesn't scale to test an infrastructure of that size moreover when they actually do execute a pen test and you get the report oftentimes you lack the expertise within your team to quickly retest to verify that you've actually fixed the problem and so what happens is you end up with these pen test reports that are incomplete snapshots and quickly going stale and then to mitigate that problem I tried using breach and attack simulation tools and the struggle with these tools is one I had to install credentialed agents everywhere two I had to write my own custom attack scripts that I didn't have much talent for but also I had to maintain as my environment changed and then three these types of tools were not safe to run against production systems which was the the majority of my attack surface so that's why we went off to start Horizon 3. so Tony and I met when we were in Special Operations together and the challenge we wanted to solve was how do we do infrastructure security testing at scale by giving the the power of a 20-year pen testing veteran into the hands of an I.T admin a network engineer in just three clicks and the whole idea is we enable these fixers The Blue Team to be able to run node Zero Hour pen testing product to quickly find problems in their environment that blue team will then then go off and fix the issues that were found and then they can quickly rerun the attack to verify that they fixed the problem and the whole idea is delivering this without requiring custom scripts be developed without requiring credential agents be installed and without requiring the use of external third-party consulting services or Professional Services self-service pen testing to quickly Drive find fix verify there are three primary use cases that our customers use us for the first is the sock manager that uses us to verify that their security tools are actually effective to verify that they're logging the right data in Splunk or in their Sim to verify that their managed security services provider is able to quickly detect and respond to an attack and hold them accountable for their slas or that the sock understands how to quickly detect and respond and measuring and verifying that or that the variety of tools that you have in your stack most organizations have 130 plus cyber security tools none of which are designed to work together are actually working together the second primary use case is proactively hardening and verifying your systems this is when the I that it admin that network engineer they're able to run self-service pen tests to verify that their Cisco environment is installed in hardened and configured correctly or that their credential policies are set up right or that their vcenter or web sphere or kubernetes environments are actually designed to be secure and what this allows the it admins and network Engineers to do is shift from running one or two pen tests a year to 30 40 or more pen tests a month and you can actually wire those pen tests into your devops process or into your detection engineering and the change management processes to automatically trigger pen tests every time there's a change in your environment the third primary use case is for those organizations lucky enough to have their own internal red team they'll use node zero to do reconnaissance and exploitation at scale and then use the output as a starting point for the humans to step in and focus on the really hard juicy stuff that gets them on stage at Defcon and so these are the three primary use cases and what we'll do is zoom into the find fix verify Loop because what I've found in my experience is find fix verify is the future operating model for cyber security organizations and what I mean here is in the find using continuous pen testing what you want to enable is on-demand self-service pen tests you want those pen tests to find attack pads at scale spanning your on-prem infrastructure your Cloud infrastructure and your perimeter because attackers don't only state in one place they will find ways to chain together a perimeter breach a credential from your on-prem to gain access to your cloud or some other permutation and then the third part in continuous pen testing is attackers don't focus on critical vulnerabilities anymore they know we've built vulnerability Management Programs to reduce those vulnerabilities so attackers have adapted and what they do is chain together misconfigurations in your infrastructure and software and applications with dangerous product defaults with exploitable vulnerabilities and through the collection of credentials through a mix of techniques at scale once you've found those problems the next question is what do you do about it well you want to be able to prioritize fixing problems that are actually exploitable in your environment that truly matter meaning they're going to lead to domain compromise or domain user compromise or access your sensitive data the second thing you want to fix is making sure you understand what risk your crown jewels data is exposed to where is your crown jewels data is in the cloud is it on-prem has it been copied to a share drive that you weren't aware of if a domain user was compromised could they access that crown jewels data you want to be able to use the attacker's perspective to secure the critical data you have in your infrastructure and then finally as you fix these problems you want to quickly remediate and retest that you've actually fixed the issue and this fine fix verify cycle becomes that accelerator that drives purple team culture the third part here is verify and what you want to be able to do in the verify step is verify that your security tools and processes in people can effectively detect and respond to a breach you want to be able to integrate that into your detection engineering processes so that you know you're catching the right security rules or that you've deployed the right configurations you also want to make sure that your environment is adhering to the best practices around systems hardening in cyber resilience and finally you want to be able to prove your security posture over a time to your board to your leadership into your regulators so what I'll do now is zoom into each of these three steps so when we zoom in to find here's the first example using node 0 and autonomous pen testing and what an attacker will do is find a way to break through the perimeter in this example it's very easy to misconfigure kubernetes to allow an attacker to gain remote code execution into your on-prem kubernetes environment and break through the perimeter and from there what the attacker is going to do is conduct Network reconnaissance and then find ways to gain code execution on other machines in the environment and as they get code execution they start to dump credentials collect a bunch of ntlm hashes crack those hashes using open source and dark web available data as part of those attacks and then reuse those credentials to log in and laterally maneuver throughout the environment and then as they loudly maneuver they can reuse those credentials and use credential spraying techniques and so on to compromise your business email to log in as admin into your cloud and this is a very common attack and rarely is a CV actually needed to execute this attack often it's just a misconfiguration in kubernetes with a bad credential policy or password policy combined with bad practices of credential reuse across the organization here's another example of an internal pen test and this is from an actual customer they had 5 000 hosts within their environment they had EDR and uba tools installed and they initiated in an internal pen test on a single machine from that single initial access point node zero enumerated the network conducted reconnaissance and found five thousand hosts were accessible what node 0 will do under the covers is organize all of that reconnaissance data into a knowledge graph that we call the Cyber terrain map and that cyber Terrain map becomes the key data structure that we use to efficiently maneuver and attack and compromise your environment so what node zero will do is they'll try to find ways to get code execution reuse credentials and so on in this customer example they had Fortinet installed as their EDR but node 0 was still able to get code execution on a Windows machine from there it was able to successfully dump credentials including sensitive credentials from the lsas process on the Windows box and then reuse those credentials to log in as domain admin in the network and once an attacker becomes domain admin they have the keys to the kingdom they can do anything they want so what happened here well it turns out Fortinet was misconfigured on three out of 5000 machines bad automation the customer had no idea this had happened they would have had to wait for an attacker to show up to realize that it was misconfigured the second thing is well why didn't Fortinet stop the credential pivot in the lateral movement and it turned out the customer didn't buy the right modules or turn on the right services within that particular product and we see this not only with Ford in it but we see this with Trend Micro and all the other defensive tools where it's very easy to miss a checkbox in the configuration that will do things like prevent credential dumping the next story I'll tell you is attackers don't have to hack in they log in so another infrastructure pen test a typical technique attackers will take is man in the middle uh attacks that will collect hashes so in this case what an attacker will do is leverage a tool or technique called responder to collect ntlm hashes that are being passed around the network and there's a variety of reasons why these hashes are passed around and it's a pretty common misconfiguration but as an attacker collects those hashes then they start to apply techniques to crack those hashes so they'll pass the hash and from there they will use open source intelligence common password structures and patterns and other types of techniques to try to crack those hashes into clear text passwords so here node 0 automatically collected hashes it automatically passed the hashes to crack those credentials and then from there it starts to take the domain user user ID passwords that it's collected and tries to access different services and systems in your Enterprise in this case node 0 is able to successfully gain access to the Office 365 email environment because three employees didn't have MFA configured so now what happens is node 0 has a placement and access in the business email system which sets up the conditions for fraud lateral phishing and other techniques but what's especially insightful here is that 80 of the hashes that were collected in this pen test were cracked in 15 minutes or less 80 percent 26 of the user accounts had a password that followed a pretty obvious pattern first initial last initial and four random digits the other thing that was interesting is 10 percent of service accounts had their user ID the same as their password so VMware admin VMware admin web sphere admin web Square admin so on and so forth and so attackers don't have to hack in they just log in with credentials that they've collected the next story here is becoming WS AWS admin so in this example once again internal pen test node zero gets initial access it discovers 2 000 hosts are network reachable from that environment if fingerprints and organizes all of that data into a cyber Terrain map from there it it fingerprints that hpilo the integrated lights out service was running on a subset of hosts hpilo is a service that is often not instrumented or observed by security teams nor is it easy to patch as a result attackers know this and immediately go after those types of services so in this case that ILO service was exploitable and were able to get code execution on it ILO stores all the user IDs and passwords in clear text in a particular set of processes so once we gain code execution we were able to dump all of the credentials and then from there laterally maneuver to log in to the windows box next door as admin and then on that admin box we're able to gain access to the share drives and we found a credentials file saved on a share Drive from there it turned out that credentials file was the AWS admin credentials file giving us full admin authority to their AWS accounts not a single security alert was triggered in this attack because the customer wasn't observing the ILO service and every step thereafter was a valid login in the environment and so what do you do step one patch the server step two delete the credentials file from the share drive and then step three is get better instrumentation on privileged access users and login the final story I'll tell is a typical pattern that we see across the board with that combines the various techniques I've described together where an attacker is going to go off and use open source intelligence to find all of the employees that work at your company from there they're going to look up those employees on dark web breach databases and other forms of information and then use that as a starting point to password spray to compromise a domain user all it takes is one employee to reuse a breached password for their Corporate email or all it takes is a single employee to have a weak password that's easily guessable all it takes is one and once the attacker is able to gain domain user access in most shops domain user is also the local admin on their laptop and once your local admin you can dump Sam and get local admin until M hashes you can use that to reuse credentials again local admin on neighboring machines and attackers will start to rinse and repeat then eventually they're able to get to a point where they can dump lsas or by unhooking the anti-virus defeating the EDR or finding a misconfigured EDR as we've talked about earlier to compromise the domain and what's consistent is that the fundamentals are broken at these shops they have poor password policies they don't have least access privilege implemented active directory groups are too permissive where domain admin or domain user is also the local admin uh AV or EDR Solutions are misconfigured or easily unhooked and so on and what we found in 10 000 pen tests is that user Behavior analytics tools never caught us in that lateral movement in part because those tools require pristine logging data in order to work and also it becomes very difficult to find that Baseline of normal usage versus abnormal usage of credential login another interesting Insight is there were several Marquee brand name mssps that were defending our customers environment and for them it took seven hours to detect and respond to the pen test seven hours the pen test was over in less than two hours and so what you had was an egregious violation of the service level agreements that that mssp had in place and the customer was able to use us to get service credit and drive accountability of their sock and of their provider the third interesting thing is in one case it took us seven minutes to become domain admin in a bank that bank had every Gucci security tool you could buy yet in 7 minutes and 19 seconds node zero started as an unauthenticated member of the network and was able to escalate privileges through chaining and misconfigurations in lateral movement and so on to become domain admin if it's seven minutes today we should assume it'll be less than a minute a year or two from now making it very difficult for humans to be able to detect and respond to that type of Blitzkrieg attack so that's in the find it's not just about finding problems though the bulk of the effort should be what to do about it the fix and the verify so as you find those problems back to kubernetes as an example we will show you the path here is the kill chain we took to compromise that environment we'll show you the impact here is the impact or here's the the proof of exploitation that we were able to use to be able to compromise it and there's the actual command that we executed so you could copy and paste that command and compromise that cubelet yourself if you want and then the impact is we got code execution and we'll actually show you here is the impact this is a critical here's why it enabled perimeter breach affected applications will tell you the specific IPS where you've got the problem how it maps to the miter attack framework and then we'll tell you exactly how to fix it we'll also show you what this problem enabled so you can accurately prioritize why this is important or why it's not important the next part is accurate prioritization the hardest part of my job as a CIO was deciding what not to fix so if you take SMB signing not required as an example by default that CVSs score is a one out of 10. but this misconfiguration is not a cve it's a misconfig enable an attacker to gain access to 19 credentials including one domain admin two local admins and access to a ton of data because of that context this is really a 10 out of 10. you better fix this as soon as possible however of the seven occurrences that we found it's only a critical in three out of the seven and these are the three specific machines and we'll tell you the exact way to fix it and you better fix these as soon as possible for these four machines over here these didn't allow us to do anything of consequence so that because the hardest part is deciding what not to fix you can justifiably choose not to fix these four issues right now and just add them to your backlog and surge your team to fix these three as quickly as possible and then once you fix these three you don't have to re-run the entire pen test you can select these three and then one click verify and run a very narrowly scoped pen test that is only testing this specific issue and what that creates is a much faster cycle of finding and fixing problems the other part of fixing is verifying that you don't have sensitive data at risk so once we become a domain user we're able to use those domain user credentials and try to gain access to databases file shares S3 buckets git repos and so on and help you understand what sensitive data you have at risk so in this example a green checkbox means we logged in as a valid domain user we're able to get read write access on the database this is how many records we could have accessed and we don't actually look at the values in the database but we'll show you the schema so you can quickly characterize that pii data was at risk here and we'll do that for your file shares and other sources of data so now you can accurately articulate the data you have at risk and prioritize cleaning that data up especially data that will lead to a fine or a big news issue so that's the find that's the fix now we're going to talk about the verify the key part in verify is embracing and integrating with detection engineering practices so when you think about your layers of security tools you've got lots of tools in place on average 130 tools at any given customer but these tools were not designed to work together so when you run a pen test what you want to do is say did you detect us did you log us did you alert on us did you stop us and from there what you want to see is okay what are the techniques that are commonly used to defeat an environment to actually compromise if you look at the top 10 techniques we use and there's far more than just these 10 but these are the most often executed nine out of ten have nothing to do with cves it has to do with misconfigurations dangerous product defaults bad credential policies and it's how we chain those together to become a domain admin or compromise a host so what what customers will do is every single attacker command we executed is provided to you as an attackivity log so you can actually see every single attacker command we ran the time stamp it was executed the hosts it executed on and how it Maps the minor attack tactics so our customers will have are these attacker logs on one screen and then they'll go look into Splunk or exabeam or Sentinel one or crowdstrike and say did you detect us did you log us did you alert on us or not and to make that even easier if you take this example hey Splunk what logs did you see at this time on the VMware host because that's when node 0 is able to dump credentials and that allows you to identify and fix your logging blind spots to make that easier we've got app integration so this is an actual Splunk app in the Splunk App Store and what you can come is inside the Splunk console itself you can fire up the Horizon 3 node 0 app all of the pen test results are here so that you can see all of the results in one place and you don't have to jump out of the tool and what you'll show you as I skip forward is hey there's a pen test here are the critical issues that we've identified for that weaker default issue here are the exact commands we executed and then we will automatically query into Splunk all all terms on between these times on that endpoint that relate to this attack so you can now quickly within the Splunk environment itself figure out that you're missing logs or that you're appropriately catching this issue and that becomes incredibly important in that detection engineering cycle that I mentioned earlier so how do our customers end up using us they shift from running one pen test a year to 30 40 pen tests a month oftentimes wiring us into their deployment automation to automatically run pen tests the other part that they'll do is as they run more pen tests they find more issues but eventually they hit this inflection point where they're able to rapidly clean up their environment and that inflection point is because the red and the blue teams start working together in a purple team culture and now they're working together to proactively harden their environment the other thing our customers will do is run us from different perspectives they'll first start running an RFC 1918 scope to see once the attacker gained initial access in a part of the network that had wide access what could they do and then from there they'll run us within a specific Network segment okay from within that segment could the attacker break out and gain access to another segment then they'll run us from their work from home environment could they Traverse the VPN and do something damaging and once they're in could they Traverse the VPN and get into my cloud then they'll break in from the outside all of these perspectives are available to you in Horizon 3 and node zero as a single SKU and you can run as many pen tests as you want if you run a phishing campaign and find that an intern in the finance department had the worst phishing behavior you can then inject their credentials and actually show the end-to-end story of how an attacker fished gained credentials of an intern and use that to gain access to sensitive financial data so what our customers end up doing is running multiple attacks from multiple perspectives and looking at those results over time I'll leave you two things one is what is the AI in Horizon 3 AI those knowledge graphs are the heart and soul of everything that we do and we use machine learning reinforcement techniques reinforcement learning techniques Markov decision models and so on to be able to efficiently maneuver and analyze the paths in those really large graphs we also use context-based scoring to prioritize weaknesses and we're also able to drive collective intelligence across all of the operations so the more pen tests we run the smarter we get and all of that is based on our knowledge graph analytics infrastructure that we have finally I'll leave you with this was my decision criteria when I was a buyer for my security testing strategy what I cared about was coverage I wanted to be able to assess my on-prem cloud perimeter and work from home and be safe to run in production I want to be able to do that as often as I wanted I want to be able to run pen tests in hours or days not weeks or months so I could accelerate that fine fix verify loop I wanted my it admins and network Engineers with limited offensive experience to be able to run a pen test in a few clicks through a self-service experience and not have to install agent and not have to write custom scripts and finally I didn't want to get nickeled and dimed on having to buy different types of attack modules or different types of attacks I wanted a single annual subscription that allowed me to run any type of attack as often as I wanted so I could look at my Trends in directions over time so I hope you found this talk valuable uh we're easy to find and I look forward to seeing seeing you use a product and letting our results do the talking when you look at uh you know kind of the way no our pen testing algorithms work is we dynamically select uh how to compromise an environment based on what we've discovered and the goal is to become a domain admin compromise a host compromise domain users find ways to encrypt data steal sensitive data and so on but when you look at the the top 10 techniques that we ended up uh using to compromise environments the first nine have nothing to do with cves and that's the reality cves are yes a vector but less than two percent of cves are actually used in a compromise oftentimes it's some sort of credential collection credential cracking uh credential pivoting and using that to become an admin and then uh compromising environments from that point on so I'll leave this up for you to kind of read through and you'll have the slides available for you but I found it very insightful that organizations and ourselves when I was a GE included invested heavily in just standard vulnerability Management Programs when I was at DOD that's all disa cared about asking us about was our our kind of our cve posture but the attackers have adapted to not rely on cves to get in because they know that organizations are actively looking at and patching those cves and instead they're chaining together credentials from one place with misconfigurations and dangerous product defaults in another to take over an environment a concrete example is by default vcenter backups are not encrypted and so as if an attacker finds vcenter what they'll do is find the backup location and there are specific V sender MTD files where the admin credentials are parsippled in the binaries so you can actually as an attacker find the right MTD file parse out the binary and now you've got the admin credentials for the vcenter environment and now start to log in as admin there's a bad habit by signal officers and Signal practitioners in the in the Army and elsewhere where the the VM notes section of a virtual image has the password for the VM well those VM notes are not stored encrypted and attackers know this and they're able to go off and find the VMS that are unencrypted find the note section and pull out the passwords for those images and then reuse those credentials across the board so I'll pause here and uh you know Patrick love you get some some commentary on on these techniques and other things that you've seen and what we'll do in the last say 10 to 15 minutes is uh is rolled through a little bit more on what do you do about it yeah yeah no I love it I think um I think this is pretty exhaustive what I like about what you've done here is uh you know we've seen we've seen double-digit increases in the number of organizations that are reporting actual breaches year over year for the last um for the last three years and it's often we kind of in the Zeitgeist we pegged that on ransomware which of course is like incredibly important and very top of mind um but what I like about what you have here is you know we're reminding the audience that the the attack surface area the vectors the matter um you know has to be more comprehensive than just thinking about ransomware scenarios yeah right on um so let's build on this when you think about your defense in depth you've got multiple security controls that you've purchased and integrated and you've got that redundancy if a control fails but the reality is that these security tools aren't designed to work together so when you run a pen test what you want to ask yourself is did you detect node zero did you log node zero did you alert on node zero and did you stop node zero and when you think about how to do that every single attacker command executed by node zero is available in an attacker log so you can now see you know at the bottom here vcenter um exploit at that time on that IP how it aligns to minor attack what you want to be able to do is go figure out did your security tools catch this or not and that becomes very important in using the attacker's perspective to improve your defensive security controls and so the way we've tried to make this easier back to like my my my the you know I bleed Green in many ways still from my smoke background is you want to be able to and what our customers do is hey we'll look at the attacker logs on one screen and they'll look at what did Splunk see or Miss in another screen and then they'll use that to figure out what their logging blind spots are and what that where that becomes really interesting is we've actually built out an integration into Splunk where there's a Splunk app you can download off of Splunk base and you'll get all of the pen test results right there in the Splunk console and from that Splunk console you're gonna be able to see these are all the pen tests that were run these are the issues that were found um so you can look at that particular pen test here are all of the weaknesses that were identified for that particular pen test and how they categorize out for each of those weaknesses you can click on any one of them that are critical in this case and then we'll tell you for that weakness and this is where where the the punch line comes in so I'll pause the video here for that weakness these are the commands that were executed on these endpoints at this time and then we'll actually query Splunk for that um for that IP address or containing that IP and these are the source types that surface any sort of activity so what we try to do is help you as quickly and efficiently as possible identify the logging blind spots in your Splunk environment based on the attacker's perspective so as this video kind of plays through you can see it Patrick I'd love to get your thoughts um just seeing so many Splunk deployments and the effectiveness of those deployments and and how this is going to help really Elevate the effectiveness of all of your Splunk customers yeah I'm super excited about this I mean I think this these kinds of purpose-built integration snail really move the needle for our customers I mean at the end of the day when I think about the power of Splunk I think about a product I was first introduced to 12 years ago that was an on-prem piece of software you know and at the time it sold on sort of Perpetual and term licenses but one made it special was that it could it could it could eat data at a speed that nothing else that I'd have ever seen you can ingest massively scalable amounts of data uh did cool things like schema on read which facilitated that there was this language called SPL that you could nerd out about uh and you went to a conference once a year and you talked about all the cool things you were splunking right but now as we think about the next phase of our growth um we live in a heterogeneous environment where our customers have so many different tools and data sources that are ever expanding and as you look at the as you look at the role of the ciso it's mind-blowing to me the amount of sources Services apps that are coming into the ciso span of let's just call it a span of influence in the last three years uh you know we're seeing things like infrastructure service level visibility application performance monitoring stuff that just never made sense for the security team to have visibility into you um at least not at the size and scale which we're demanding today um and and that's different and this isn't this is why it's so important that we have these joint purpose-built Integrations that um really provide more prescription to our customers about how do they walk on that Journey towards maturity what does zero to one look like what does one to two look like whereas you know 10 years ago customers were happy with platforms today they want integration they want Solutions and they want to drive outcomes and I think this is a great example of how together we are stepping to the evolving nature of the market and also the ever-evolving nature of the threat landscape and what I would say is the maturing needs of the customer in that environment yeah for sure I think especially if if we all anticipate budget pressure over the next 18 months due to the economy and elsewhere while the security budgets are not going to ever I don't think they're going to get cut they're not going to grow as fast and there's a lot more pressure on organizations to extract more value from their existing Investments as well as extracting more value and more impact from their existing teams and so security Effectiveness Fierce prioritization and automation I think become the three key themes of security uh over the next 18 months so I'll do very quickly is run through a few other use cases um every host that we identified in the pen test were able to score and say this host allowed us to do something significant therefore it's it's really critical you should be increasing your logging here hey these hosts down here we couldn't really do anything as an attacker so if you do have to make trade-offs you can make some trade-offs of your logging resolution at the lower end in order to increase logging resolution on the upper end so you've got that level of of um justification for where to increase or or adjust your logging resolution another example is every host we've discovered as an attacker we Expose and you can export and we want to make sure is every host we found as an attacker is being ingested from a Splunk standpoint a big issue I had as a CIO and user of Splunk and other tools is I had no idea if there were Rogue Raspberry Pi's on the network or if a new box was installed and whether Splunk was installed on it or not so now you can quickly start to correlate what hosts did we see and how does that reconcile with what you're logging from uh finally or second to last use case here on the Splunk integration side is for every single problem we've found we give multiple options for how to fix it this becomes a great way to prioritize what fixed actions to automate in your soar platform and what we want to get to eventually is being able to automatically trigger soar actions to fix well-known problems like automatically invalidating passwords for for poor poor passwords in our credentials amongst a whole bunch of other things we could go off and do and then finally if there is a well-known kill chain or attack path one of the things I really wish I could have done when I was a Splunk customer was take this type of kill chain that actually shows a path to domain admin that I'm sincerely worried about and use it as a glass table over which I could start to layer possible indicators of compromise and now you've got a great starting point for glass tables and iocs for actual kill chains that we know are exploitable in your environment and that becomes some super cool Integrations that we've got on the roadmap between us and the Splunk security side of the house so what I'll leave with actually Patrick before I do that you know um love to get your comments and then I'll I'll kind of leave with one last slide on this wartime security mindset uh pending you know assuming there's no other questions no I love it I mean I think this kind of um it's kind of glass table's approach to how do you how do you sort of visualize these workflows and then use things like sore and orchestration and automation to operationalize them is exactly where we see all of our customers going and getting away from I think an over engineered approach to soar with where it has to be super technical heavy with you know python programmers and getting more to this visual view of workflow creation um that really demystifies the power of Automation and also democratizes it so you don't have to have these programming languages in your resume in order to start really moving the needle on workflow creation policy enforcement and ultimately driving automation coverage across more and more of the workflows that your team is seeing yeah I think that between us being able to visualize the actual kill chain or attack path with you know think of a of uh the soar Market I think going towards this no code low code um you know configurable sore versus coded sore that's going to really be a game changer in improve or giving security teams a force multiplier so what I'll leave you with is this peacetime mindset of security no longer is sustainable we really have to get out of checking the box and then waiting for the bad guys to show up to verify that security tools are are working or not and the reason why we've got to really do that quickly is there are over a thousand companies that withdrew from the Russian economy over the past uh nine months due to the Ukrainian War there you should expect every one of them to be punished by the Russians for leaving and punished from a cyber standpoint and this is no longer about financial extortion that is ransomware this is about punishing and destroying companies and you can punish any one of these companies by going after them directly or by going after their suppliers and their Distributors so suddenly your attack surface is no more no longer just your own Enterprise it's how you bring your goods to Market and it's how you get your goods created because while I may not be able to disrupt your ability to harvest fruit if I can get those trucks stuck at the border I can increase spoilage and have the same effect and what we should expect to see is this idea of cyber-enabled economic Warfare where if we issue a sanction like Banning the Russians from traveling there is a cyber-enabled counter punch which is corrupt and destroy the American Airlines database that is below the threshold of War that's not going to trigger the 82nd Airborne to be mobilized but it's going to achieve the right effect ban the sale of luxury goods disrupt the supply chain and create shortages banned Russian oil and gas attack refineries to call a 10x spike in gas prices three days before the election this is the future and therefore I think what we have to do is shift towards a wartime mindset which is don't trust your security posture verify it see yourself Through The Eyes of the attacker build that incident response muscle memory and drive better collaboration between the red and the blue teams your suppliers and Distributors and your information uh sharing organization they have in place and what's really valuable for me as a Splunk customer was when a router crashes at that moment you don't know if it's due to an I.T Administration problem or an attacker and what you want to have are different people asking different questions of the same data and you want to have that integrated triage process of an I.T lens to that problem a security lens to that problem and then from there figuring out is is this an IT workflow to execute or a security incident to execute and you want to have all of that as an integrated team integrated process integrated technology stack and this is something that I very care I cared very deeply about as both a Splunk customer and a Splunk CTO that I see time and time again across the board so Patrick I'll leave you with the last word the final three minutes here and I don't see any open questions so please take us home oh man see how you think we spent hours and hours prepping for this together that that last uh uh 40 seconds of your talk track is probably one of the things I'm most passionate about in this industry right now uh and I think nist has done some really interesting work here around building cyber resilient organizations that have that has really I think helped help the industry see that um incidents can come from adverse conditions you know stress is uh uh performance taxations in the infrastructure service or app layer and they can come from malicious compromises uh Insider threats external threat actors and the more that we look at this from the perspective of of a broader cyber resilience Mission uh in a wartime mindset uh I I think we're going to be much better off and and will you talk about with operationally minded ice hacks information sharing intelligence sharing becomes so important in these wartime uh um situations and you know we know not all ice acts are created equal but we're also seeing a lot of um more ad hoc information sharing groups popping up so look I think I think you framed it really really well I love the concept of wartime mindset and um I I like the idea of applying a cyber resilience lens like if you have one more layer on top of that bottom right cake you know I think the it lens and the security lens they roll up to this concept of cyber resilience and I think this has done some great work there for us yeah you're you're spot on and that that is app and that's gonna I think be the the next um terrain that that uh that you're gonna see vendors try to get after but that I think Splunk is best position to win okay that's a wrap for this special Cube presentation you heard all about the global expansion of horizon 3.ai's partner program for their Partners have a unique opportunity to take advantage of their node zero product uh International go to Market expansion North America channel Partnerships and just overall relationships with companies like Splunk to make things more comprehensive in this disruptive cyber security world we live in and hope you enjoyed this program all the videos are available on thecube.net as well as check out Horizon 3 dot AI for their pen test Automation and ultimately their defense system that they use for testing always the environment that you're in great Innovative product and I hope you enjoyed the program again I'm John Furrier host of the cube thanks for watching
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Kevin Mandia, Mandiant & Shawn Henry, CrowdStrike | CrowdStrike Fal.Con 2022
>>Welcome back to the aria in Las Vegas, Dave Valante with Dave Nicholson, Falcon 22, the Cube's continuous coverage. Sean Henry is here. He's the president of the services division and he's the chief security officer at CrowdStrike. And he's joined by Kevin mania, CEO of Mandy. Now part of Google Jens. Welcome to the cube. Thank you. Congrats on closing the Google deal. Thank you. That's great. New chapter, >>New >>Chapter coming fresh off the keynote, you and George. I really en enjoyed that. Let's start there. One of the things you talked about was the changes you've been, you've been in this business for a while. I think you were talking about, you know, doing some of these early stuff in the nineties. Wow. Things have changed a lot the queen, right? Right. You used to put the perimeter around the queen. Yeah. Build the Mo the Queen's left or castle new ballgame. But you were talking about the board level knowledge of security in the organization. Talk about that change. That's occurred in the last >>Decade. You know, boards are all about governance, right? Making sure everybody's doing the right things. And they've kind of had a haul pass on cybersecurity for a long time. Like we expect them to be great at financial diligence, they understand the financials of an organization. You're gonna see a maturity, I think in cybersecurity where I think board members all know, Hey, there's risk out there. And we're on our own to kind of defend ourselves from it, but they don't know how to quantify it. And they don't know how to express it. So bottom line boards are interested in cyber and we just have to mature as an industry to give them the tools they need to measure it appropriately. >>Sean, one of the things I wanted to ask you. So Steven Schmidt, I noticed changed his title from CISOs chief inf information security officer, the chief security officer. Your title is chief security officer. Is that a nuance that has meaning to you or is it just less acronym? >>It depends on the organization that you're in, in our organization, the chief security officer owns all risks. So I have a CISO that comes underneath me. Yep. And I've got a security folks that are handling our facilities, our personnel, those sorts of things, all, all of our offices around the globe. So it's all things security. One of the things that we've found and Kevin and I were actually talking about this earlier is this intersection between the physical world and the virtual world. And if you've got adversaries that want gain access to your organization, they might do it remotely by trying to hack into your network. But they also might try to get one of your employees to take an action on their behalf, or they might try to get somebody hired into your company to take some nefarious acts. So from a security perspective, it's about building an envelope around all things valuable and then working it in a collaborative way. So there's a lot of interface, a lot of interaction and a lot of value in putting those things together. And, >>And you're also president of the services division. Is that a P and L role or >>It is, we have a it's P P O P and L. And we have an entire organization that's doing incident response and it's a lot of the work that we're doing with, with Kevin's folks now. So I've got both of those hats today. >>Okay. So self-funded so in a way, okay. Where are companies most at risk today? >>Huh? You wanna go on that one first? Sean, you talk fast than me. So it's bigger bang for the buck. If >>You >>Talk, you know, when I, when I think about, about companies in terms of, of their risk, it's a lot of it has to do with the expansion of the network. Companies are adding new applications, new devices, they're expanding into new areas. There are new technologies that are being developed every day and that are being embraced every day. And all of those technologies, all of those applications, all of that hardware is susceptible to attack. Adversaries are looking for the vulnerabilities they can exploit. And I think just kind of that sprawl is something that is, is disconcerting to me from a security perspective, we need to know where our assets are, where the vulnerabilities lie, how do we plug the holes? And having that visibility is really critical to ensure that you're you're in, involved in mitigating that, that new architecture, >>Anything you >>Did. Yeah. I would like when I, so I can just tell you what I'm hearing from CISOs out there. They're worried about identity, the lateral movement. That's been kind of part of every impactful breach. So in identity's kind of top three of mind, I would say zero trust, whatever that means. And we all have our own definitions of migration to zero trust and supply chain risk. You know, whether they're the supplier, they wanna make sure they can prove to their customers, they have great security practices. Or if they're a consumer of a supply chain, you need to understand who's in their supply chain. What are their dependencies? How secure are they? Those are just three topics that come up all the time. >>As we extend, you know, talking about XDR the X being extend. Do you see physical security as something that's being extended into? Or is it, or is it already kind of readily accepted that physical security goes hand in hand with information security? >>I, I don't think a lot of people think that way there certainly are some and Dave mentions Amazon and Steve Schmidt as a CSO, right? There's a CSO that works for him as well. CJ's clear integration. There's an intelligence component to that. And I think that there are certain organizations that are starting to recognize and understand that when we say there's no real perimeter, it, it expands the network expands into the physical space. And if you're not protecting that, you know, if you don't protect the, the server room and somebody can actually walk in the doors unlocked, you've got a vulnerability that might be exploited. So I think to, to recognize the value of that integration from a security perspective, to be holistic and for organizations to adopt a security first philosophy that all the employees recognize they're, they're the, the first line of defense. Oftentimes not just from a fish, but by somebody catching up with them and handing 'em a thumb drive, Hey, can you take a look at this document? For me, that's a potential vulnerability as well. So those things need to be integrated. >>I thought the most interesting part of the keynote this morning is when George asked you about election security and you immediately went to the election infrastructure. I was like, yeah. Okay. Yeah. But then I was so happy to hear you. You went to the disinformation, I learned something there about your monitoring, the network effects. Sure. And, and actually there's a career stream around that. Right. The reason I had so years ago I interviewed was like, this was 2016, Robert Gates. Okay. Former defense. And I, I said, yeah, but don't we have the best cyber can't we go on the offense. He said, wait a minute, we have the most to lose. Right. But, but you gave an example where you can identify the bots. Like let's say there's disinformation out there. You could actually use bots in a positive way to disseminate the, the truth in theory. Good. Is, is that something that's actually happening >>Out there? Well, I think we're all still learning. You know, you can have deep fakes, both audible files or visual files, right. And images. And there's no question. The next generation, you do have to professionalize the news that you consume. And we're probably gonna have to professionalize the other side critical thinking because we are a marketplace of ideas in an open society. And it's hard to tell where's the line between someone's opinion and intentional deception, you know, and sometimes it could be the source, a foreign threat, trying to influence the hearts and minds of citizens, but there's gonna be an internal threat or domestic threat as well to people that have certain ideas and concepts that they're zealots about. >>Is it enough to, is it enough to simply expose where the information is coming from? Because, you know, look, I, I could make the case that the red Sox, right. Or a horrible baseball team, and you should never go to Fenway >>And your Yankees Jersey. >>Right. Right. So is that disinformation, is that misinformation? He'd say yes. Someone else would say no, but it would be good to know that a thousand bots from some troll farm, right. Are behind us. >>There's, it's helpful to know if something can be tied to identity or is totally anonymous. Start just there. Yeah. Yeah. You can still protect the identity over time. I think all of us, if you're gonna trust the source, you actually know the source. Right. So I do believe, and, and by the way, much longer conversation about anonymity versus privacy and then trust, right. And all three, you could spend this whole interview on, but we have to have a trustworthy internet as well. And that's not just in the tech and the security of it, but over time it could very well be how we're being manipulated as citizens and people. >>When you guys talk to customers and, and peers, when somebody gets breached, what's the number one thing that you hear that they wished they'd done that they didn't. >>I think we talked about this earlier, and I think identity is something that we're talking about here. How are you, how are you protecting your assets? How do you know who's authorized to have access? How do you contain the, the access that they have? And the, the area we see with, with these malware free attacks, where adversaries are using the existing capabilities, the operating system to move laterally through the network. I mean, Kevin's folks, my folks, when we respond to an incident, it's about looking at that lateral movement to try and get a full understanding of where the adversary's been, where they're going, what they're doing, and to try to, to find a root cause analysis. And it really is a, a critical part. >>So part of the reason I was asking you about, was it a P and L cuz you, you wear two hats, right? You've got revenue generation on one side and then you've got you protect, you know, the company and you've got peer relationships. So the reason I bring this up is I felt like when stucks net occurred, there was a lot of lip service around, Hey, we, as an industry are gonna work together. And then what you saw was a lot of attempts to monetize, you know, private data, sell private reports and things of that nature you were referencing today, Kevin, that you think the industry's doing a much better job of, of collaboration. Is it, can you talk about that and maybe give some examples? >>Absolutely. I mean, you know, I lived through it as a victim of a breach couple years ago. If you see something new and novel, I, I just can't imagine you getting away with keeping it a secret. I mean, I would even go, what are you doing? Harboring that if you have it, that doesn't mean you tell the whole world, you don't come on your show and say, Hey, we got something new novel, everybody panic, you start contacting the people that are most germane to fixing the problem before you tell the world. So if I see something that's new in novel, certainly con Sean and the team at CrowdStrike saying, Hey, there's because they protect so many endpoints and they defend nations and you gotta get to Microsoft. You have to talk to pan. You have to get to the companies that have a large capability to do shields up. And I think you do that immediately. You can't sit on new and novel. You get to the vendor where the vulnerability is, all these things have to happen at a great rate to speak. >>So you guys probably won't comment, but I'm betting dollars to donuts. This Uber lapses hack you guys knew about. >>I turned to you. >>No comment. I'm guessing. I'm guessing that the, that wasn't novel. My point being, let me, let me ask it in a more generic fashion that you can maybe comment you you're. I think you're my, my inference is we're com the industry is compressing the time between a zero day and a fix. Absolutely. Absolutely. Like dramatically. >>Yes. Oh, awareness of it and AIX. Yes. Yeah. >>Okay. Yeah. And a lot of the hacks that we see as lay people in the media you've known about for quite some time, is that fair or no, not necessarily. >>It's, you know, it's harder to handle an intrusion quietly and discreetly these days, especially with what you're up against and, and most CEOs, by the way, their intent isn't, let's handle it quietly and discreetly it's what do we do about it? And what's the right way to handle it. And they wanna inform their customers and they wanna inform people that might be impacted. I wouldn't say we know it all that far ahead of time >>And, and depends. And, and I, I think companies don't know it. Yeah. Companies don't know they've been breached for weeks or months or years in some cases. Right. Which talks about a couple things, first of all, some of the sophistication of the adversaries, but it also talks about the inability of companies to often detect this type of activity when we're brought in. It's typically very quickly after the company finds out because they recognize they've gotta take action. They've got liability, they've got brand protection. There, whole sorts of, of things they need to take care of. And we're brought in it may or may not be, become public, but >>CrowdStrike was founded on the premise that the unstoppable breach is a myth. Now that's a, that's a bold sort of vision. We're not there yet, obviously. And a and a, and a, a CSO can't, you know, accept that. Right. You've gotta always be vigilant, but is that something that is, that we're gonna actually see manifest, you know, in any, any time in the near term? I mean, thinking about the Falcon platform, you guys are users of that. I don't know if that is part of the answer, but part of it's technology, but without the cultural aspects, the people side of things, you're never gonna get there. >>I can tell you, I started Maning in 2004 at the premise security breaches are inevitable, far less marketable. Yeah. You know, stop breaches. >>So >>Yeah. I, I think you have to learn how to manage this, right? It's like healthcare, you're not gonna stop every disease, but there's a lot of things that you can do to mitigate the consequences of those things. The same thing with network security, there's a lot of actions that organizations can take to help protect them in a way that allows them to live and, and operate in a, in a, a strong position. If companies are lackadaisical that irresponsible, they don't care. Those are companies that are gonna suffer. But I think you can manage this if you're using the right technology, the right people, you've got the right philosophy security first >>In, in the culture. >>Well, I can tell you very quickly, three reasons why people think, why is there an intrusion? It should just go away. Well, wherever money goes, crime follows. We still have crime. So you're still gonna have intrusions, whether it has to be someone on the inside or faulty software and people being paid the right faulty software, you're gonna have war. That's gonna create war in the cyber domain. So information warriors are gonna try to have intrusions to get to command and control. So wherever you have command and control, you'll have a war fighter. And then wherever you have information, you have ESP Espino. So you're gonna have people trying to break in at all times. >>And, and to tie that up because everything Kevin said is absolutely right. And what he just said at the very end was people, there are human beings that are on the other side of every single attack. And think about this until you physically get physically get to the people that are doing it and stop them. Yes, this will go on forever because you can block them, but they're gonna move and you can block them again. They're gonna move their objectives. Don't change because the information you have, whether it's financial information, intellectual property, strategic military information, that's still there. They will always come at it, which is where that physical component comes in. If you're able to block well enough and they can't get you remotely, they might send somebody in. Well, >>I, in the keynote, I, I'm not kidding. I'm looking around the room and I'm thinking there's at least one person here that is here primarily to gather intelligence, to help them defeat. What's being talked about here. >>Well, you said it's, >>It's kind >>Of creepy. You said the adversary is, is very well equipped and motivated. Why do you Rob banks? Well, that's where the money is, but it's more than that. Now with state sponsored terrorism and, you know, exfiltration of state secrets, I mean, there's, it's high stake's games. You got, this >>Has become a tool of nation states in terms from a political perspective, from a military perspective, if you look at what happened with Ukraine and Russia, all the work that was done in advanced by the Russians to soften up the Ukrainians, not just collection of intelligence, not just denial of services, but then disruptive attacks to change the entire complexity of the battlefield. This, this is a, an area that's never going away. It's becoming ingrained in our lives. And it's gonna be utilized for nefarious acts for many, many decades to come. >>I mean, you're right, Sean, we're seeing the future of war right before us is, is there's. There is going to be, there is a cyber component now in war, >>I think it signals the cyber component signals the silent intention of nations period, the silent projection of power probably before you see kinetics. >>And this is where gates says we have a lot more to lose as a country. So it's hard for us to go on the offense. We have to be very careful about our offensive capabilities because >>Of one of the things that, that we do need to, to do though, is we need to define what the red lines are to adversaries. Because when you talk about human beings, you've gotta put a deterrent in place so that if the adversaries know that if you cross this line, this is what the response is going to be. It's the way things were done during nuclear proliferation, right? Right. During the cold war, here's what the actions are gonna be. It's gonna be, it's gonna be mutual destruction and you can't do it. And we didn't have a nuclear war. We're at a point now where adversaries are pushing the envelope constantly, where they're turning off the lights in certain countries where they're taking actions that are, are quite detrimental to the host governments and those red lines have to be very clear, very clearly defined and acted upon if they're >>Crossed as security experts. Can you always tie that signature back to say a particular country or a particular group? >>Absolutely. 100% every >>Time I know. Yeah. No, it it's. It's a great question. You, you need to get attribution right. To get to deterrence, right. And without attribution, where do you proportionate respond to whatever act you're responding to? So attribution's critical. Both our companies work hard at doing it and it, and that's why I think you're not gonna see too many false flag operations in cyberspace, but when you do and they're well crafted or one nation masquerades is another, it, it, it's one of the last rules of the playground I haven't seen broken yet. And that that'll be an unfortunate day. >>Yeah. Because that mutually assure destruction, a death spot like Putin can say, well, it wasn't wasn't me. Right. So, and ironically, >>It's human intelligence, right. That ultimately is gonna be the only way to uncover >>That human intelligence is a big component. >>For sure. Right. And, and David, like when you go back to, you were referring to Robert Gates, it's the asymmetry of cyberspace, right? One person in one nation. That's not a control by asset could still do an act. And it, it just adds to the complexity of, we have attribution it's from that nation, but was it in order? Was it done on behalf of that nation? Very complicated. >>So this is an industry of superheroes. Thank you guys for all you do and appreciate you coming on the cube. Wow. >>I love your Cape. >>Thank all right. Keep it right there. Dave Nicholson and Dave ante be right back from Falcon 22 from the area you watching the cue.
SUMMARY :
He's the president of the services division and he's One of the things you talked about was the changes you've been, you've been in this business for a while. Making sure everybody's doing the right things. meaning to you or is it just less acronym? One of the things that we've found and Kevin and I were actually talking about this earlier is And you're also president of the services division. an entire organization that's doing incident response and it's a lot of the work that we're Where are companies most at risk today? So it's bigger bang for the buck. all of that hardware is susceptible to attack. Or if they're a consumer of a supply chain, you need to understand who's in their supply chain. As we extend, you know, talking about XDR the X being extend. And I think that there are certain organizations that are starting to recognize I thought the most interesting part of the keynote this morning is when George asked you about election the news that you consume. and you should never go to Fenway So is that disinformation, is that misinformation? And all three, you could spend this whole interview on, but we have to have a trustworthy internet as well. When you guys talk to customers and, and peers, when somebody gets breached, it's about looking at that lateral movement to try and get a full understanding of where the adversary's So part of the reason I was asking you about, was it a P and L cuz you, you wear two hats, And I think you do that immediately. So you guys probably won't comment, but I'm betting dollars to donuts. let me, let me ask it in a more generic fashion that you can maybe comment you you're. Yeah. you've known about for quite some time, is that fair or no, not necessarily. It's, you know, it's harder to handle an intrusion quietly and discreetly these days, but it also talks about the inability of companies to often detect this type of activity when And a and a, and a, a CSO can't, you know, accept that. I can tell you, I started Maning in 2004 at the premise security breaches are inevitable, But I think you can manage this if you're using the right technology, And then wherever you have information, And think about this until you physically get physically get to the people that are doing it at least one person here that is here primarily to gather intelligence, you know, exfiltration of state secrets, I mean, there's, it's high stake's games. from a military perspective, if you look at what happened with Ukraine and Russia, all the work that I mean, you're right, Sean, we're seeing the future of war right before us is, is there's. the silent projection of power probably before you see kinetics. And this is where gates says we have a lot more to lose as a country. that if the adversaries know that if you cross this line, this is what the response is going to be. Can you always tie that signature back to say a Absolutely. where do you proportionate respond to whatever act you're responding to? So, and ironically, It's human intelligence, right. And, and David, like when you go back to, you were referring to Robert Gates, it's the asymmetry of cyberspace, Thank you guys for all you do and appreciate you coming on the cube. Dave Nicholson and Dave ante be right back from Falcon 22 from the area you watching the cue.
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Suni Potti & Lior Div | CUBE Conversation, October 2021
hello and welcome to this special cube conversation i'm dave nicholson and this is part of our continuing coverage of google cloud next 2021 i have two very special guests with me and we are going to talk about the topic of security uh i have sunil potti who is vice president and general manager of google cloud security uh who in a previous life had senior leadership roles at nutanix and citrix along with lior div who is the ceo and co-founder of cyber reason lior was formerly a commander in the much famed unit 8200 uh part of the israeli defense forces uh where he was actually a medal of honor recipient uh very uh honored to have him here this morning sunil and lior welcome to the cube sunil welcome back to the cube yeah great to be here david and and to be in the presence of a medal of honor recipient by the way a good friend of mine leor so be here well good to have both of you here so uh i'm the kind of person who likes my dessert before my uh before my entree so why don't we just get right to it you're the two of you are here to announce something very very significant uh in the field of security uh sunil do you want to start us out what are we here to talk about yeah i mean i think maybe uh you know just to set this context um as as many of you know about a decade ago a nation's sponsored attack you know actually got into google plus a whole bunch of tech companies you know the project aurora was quite uh you know infamous for a certain period of time and actually google realized almost a decade ago that look you know security can't just be a side thing it has to be the primary thing including one of the co-founders becoming for lack of a better word the chief security officer for a while but one of the key takeaways from that whole incident was that look you have to be able to detect everything and trust nothing and and the underpinning for at least one of them led to this whole zero trust architectures that everybody now knows about but the other part which is not as popular at least in industry vernacular but in many ways equally important and some ways more important is the fact that you need to be able to detect everything so that you can actually respond and that led to the formation of you know a project internal to google to actually say that look let's democratize uh storage and make sure that nobody has to pay for capturing security events and that led to the formation of this uh new industry concept called a security data lake in chronicle was born and then as we started evolving that over into the enterprise segment partnering with you know cyber reason on one hand created a one plus one equals three synergy between say the presence around what do you detect from the end point but also generally just so happens that as lior will tell you the cyber reason technology happens to start with endpoint but it's actually the core tech is around detecting events but doing it in a smart way to actually respond to them in much more of a contextual manner but beyond just that you know synergy between uh you know a world-class planet scale you know security data like forming the foundation and integrating you know in a much more cohesive way with uh cyber reasons detection response offering the spirit was actually that this is the first step of a long journey to really hit the reset button in terms of going from reactive mode of security to a proactive mode of security especially in a nation-state-sponsored attack vector so maybe leo you can speak a few minutes on that as well absolutely so um as you said i'm coming from a background of uh nation state hacking so for us at cyberism it's uh not is foreign uh what the chinese are doing uh on a daily basis and the growing uh ransomware cartel that's happening right now in russia um when we looked at it we said then uh cyberism is very famous by our endpoint detection and response capability but when we establish cyber reason we establish the cyberism on a core or almost fundamental idea of finding malicious operation we call it the male idea so basically instead of looking for alerts or instead of looking for just pieces of data we want to find the hackers we want to find the attack we want to be able to tell basically the full story of what's going on uh in order to do that we build the inside cyberism basically from day one the ability to analyze any data in real time in order to stitch it into the story of the male the malicious operation but what we realize very quickly that while our solution can process more than 27 trillion events a week we cannot feed it fast enough just from end point and we are kind of blind when it comes to the rest of the attack surface so we were looking uh to be honest quite a while for the best technology that can feed this engine and to as sunil said the one plus one equal three or four or five to be able to fight against those hackers so in this journey uh we we found basically chronicle and the combination of the scale that chronicle bringing the ability to feed the engine and together basically to be able to find those hackers in real time and real time is very very important and then to response to those type of attack so basically what is uh exciting here we created a solution that is five times faster than any solution that exists right now in the market and most importantly it enables us to reverse the atmospheric advantage and basically to find them and to push them out so we're moving from hey just to tell you a story to actually prevent hackers to being in your environment so leor can you i want to double click on that just just a little bit um can you give give us a kind of a concrete example of this difference between simply receiving alerts and uh and actually um you know taking taking uh uh correlating creating correlations and uh and actually creating actionable proactive intelligence can you give us an example of that working in in the real world yeah absolutely we can start from a simple example of ransomware by the time that i will tell you that there is a ransomware your environment and i will send an alert uh it will be five computers that are encrypted and by the time that you gonna look at the alert it's gonna be five thousand uh basically machines that are encrypted and by the time that you will do something it's going to be already too little too late and this is just a simple example so preventing that thing from happening this is critical and very timely manner in order to prevent the damage of ransomware but if you go aside from ransomware and you look for example of the attack like solarwind basically the purpose of this attack was not to create damage it was espionage the russian wanted to collect data on our government and this is kind of uh the main purpose that they did this attack so the ability to be able to say hey right now there is a penetration this is the step that they are doing and there is five ways to push them out of the environment and actually doing it this is something that today it's done manually and with the power of chronicle and cyberism we can do it automatically and that's the massive difference sunil are there specific industries that should be really interested in this or is this a is this a broad set of folks that should be impacted no you know in some ways uh you know the the the saying these days to learn's point on ransomware is that you know if if a customer or an enterprise has a reasonable top-line revenue you're a target you know you're a target to some extent so in that sense especially given that this has moved from pure espionage or you know whether it be you know government oriented or industrial espionage to a financial fraud then at that point in time it applies to pretty much a wide gamut of industries not just financial services or you know critical infrastructure companies like oil and gas pipeline or whatever it could be like any company that has any sort of ip that they feel drives their top line business is now a target for such attacks so when you talk about the idea of partnership and creating something out of a collaboration what's the meat behind this what what what do you what are you guys doing beyond saying you know hey sunil lior these guys really like each other and they respect what the other is doing what's going on behind the scenes what are you actually implementing here moving forward so every partnership is starting with love so it's good [Laughter] but then it need to translate to to really kind of pure value to our customers and pure value coming from a deep integration when it's come to the product so basically uh what will happen is every piece of data that we can collect at cyber is in uh from endpoint any piece of data that the chronicle can collect from any log that exists in the world so basically this is kind of covering the whole attack surface so first we have access to every piece of information across the full attack surface then the main question is okay once you collect all this data what you're gonna do with it and most of companies or all the companies today they don't have an answer they're saying oh we're gonna issue an alert and we hope that there is a smart person behind the keyboard that can understand what just happened and make a decision and with this partnership and with this integration basically we're not asking and outsourcing the question what to do to the user we're giving them the answer we're telling them hey this is the story of the attack this is all the pieces that's going on right now and in most cases we're gonna say hey and by the way we just stopped it so you can prevent it from the future when will people be able to leverage this capability in an integrated way and and and by the way restate how this is going to market as an integrated solution what is what is the what is what are we going to call this moving forward so basically this is the cyber reason xdr uh powered by chronicle and we are very very um uh happy about it yeah and i think just to add to that i would say look the the meta strategy here and the way it'll manifest is in this offering that comes out in early 2022 um is that if you think about it today you know a classical quote-unquote security pipeline is to detect you know analyze and then respond obviously you know just just doing those three in a good way is hard doing it in real time at scale is even harder so just that itself was where cyber reason and chronicle would add real value where we are able to collect a lot of events react in real time but a couple of things that i think that you know to your original point of why this is probably going to be a little for game changer in the years to come is we're trying to change that from detect analyze respond to detect understand and anticipate so because ultimately that's really how we can change you know the profile from being reactive in a world of ransomware or anything else to being proactive against a nation sponsored or nation's influenced attacks because they're not going to stop right so the only way to do this is to rather than just go back up the hatches is just really you know change change the profile of how you'll actually anticipate what they were probably going to do in 6 months or 12 months and so the the graph technology that powers the heart of you know cyber reason is going to be intricately woven in with the contextual information that chronicle can get so that the intermediate step is not just about analysis but it's about truly understanding the overall strategy that has been employed in the past to predict what could happen in the future so therefore then actions could be taken downstream that you can now say hey most likely this these five buckets have this kind of personal information data there's a reasonable chance that you know if they're exposed to the internet then as you create more such buckets in that project you're going to be susceptible to more ransomware attacks or some other attacks right and that's the the the kind of thinking or the transformation that we're trying to bring out with this joint office so lior uh this this concept of uh of mallops and uh cyber reason itself you weren't just born yesterday you've been you've been uh you have thousands of customers around the globe he does look like he was born i i know i know i know well you you know it used to be that the ideal candidate for ceo of a startup company was someone who dropped out of stanford i think it's getting to the point where it's people who refused admission to stanford so uh the the dawn of the 14 year old ceo it's just it's just around the corner but uh but lior do you get frustrated when you see um you know when you become aware of circumstances that would not have happened had they implemented your technology as it exists today yeah we have a for this year it was a really frustrating year that starting with solarwind if you analyze the code of solarwind and we did it but other did it as well basically the russians were checking if cyberism is installed on the machine and if we were installed on the machine they decided to stop the attack this is something that first it was a great compliment for us from you know our not friend from the other side that decided to stop the attack but on a serious note it's like we were pissed because if people were using this technology we know that they are not going to be attacked when we analyze it we realize that we have three different ways to find the solar wind hackers in a three different way so this is just one example and then the next example in the colonial pipeline hack we were the one that found darkseid as a group that we were hacking we were the first one that released a research on them and we showed how we can prevent the basically what they are doing with our technology so when you see kind of those type of just two examples and we have many of them on a daily basis we just know that we have the technology in order to do that now when we're combining uh the chronicle technology into the the technology that we already have we basically can reverse the adversary advantage this is something that you're not doing in a single day but this is something that really give power to the defenders to the communities of siso that exist kind of across the us um and i believe that if we're going to join forces and lean into this community and and basically push the solution out the ability for us to fight against those cartels specifically the ransomware cartels is going to be massive sunil this time next year when we are in uh google cloud next 2022 um are you guys going to come back on and offer up the we told you so awards because once this is actually out there and readily available the combination of chronicle and cyber reasons technology um it's going to be hard for some csos to have an excuse uh it may be it may be a uncomfortable to know that uh they could have kept the door secure uh but didn't yeah where's that bad business is that bad business to uh hand out awards for doing dumb things i don't know about uh you know a version of darwin awards probably don't make sense but but but generally speaking so i do think uh you know we're all like as citizens in this right because you know we talk about customers i mean you know alphabet and google is a customer in some ways cyber reason is a customer the cube is a customer right so i think i think the robot hitting the road a year from now will be we should we should do this where i don't know if the cube does more than two folks at the same time david but we should i mean i'm sure we'll have enough to have at least a half a dozen in in the room to kind of talk about the solution because i think the the you know as you can imagine this thing didn't materialize i mean it's been being cooked for a while between your team and our team and in fact it was inspired by feedback from some joint customers out in the market and all that good stuff so so a year from now i think the best thing would be not just having customers to talk about the solution but to really talk about that transformation from respond to anticipate and do they feel better on their security posture in a world that they know like and leo should probably spend a few minutes on this is i think we're on the tip of the sphere of this nation-state era and what we've just seen in the last few years is what maybe the nation-states have seen over two decades ago and they're going to run those playbooks on the enterprise for the next decade or so yeah leor talk about that for a minute yeah it's it's really you know just to continue the sunil thought it's it's really about finding the unknown because what's happening on the other side it's like specifically china and russia and lately we saw iran starting to gain uh power um basically their job is to become better and better and to basically innovate and create a new type of attack on a daily basis as technology has evolved so basically there is a very simple equation as we're using more technology and relying more on technology the other side is going to exploit it in order to gain more power espionage and create financial damage but it's important to say that this evolution it's not going to stop this is just the beginning and a lot of the data that was belong just to government against government fight basically linked in the past few years now criminals starting to use it as well so in a sense if you think about it what's happening right now there is basically a cold war that nobody is talking about it between kind of the giant that everybody is hacking everybody and in the crossfire we see all of those enterprises across the world it was not a surprise that um you know after the biden and putin uh meeting suddenly it was a quiet it was no ransomware for six weeks and after something changing the politics suddenly we can see a a groin kind of attack when it's come to ransomware that we know that was directed from russia in order to create pressure on the u.s economy sunil wrap us up what are your f what are what are your final thoughts and uh what's what's the what's the big takeaway here no i think you know i i think the key thing for everyone to know is look i think we are going into an era of state-sponsored uh not espionage as much as threat vectors that affect every business and so in many ways the chiefs the chief information security officer the chief risk officer in many ways the ceo and the board now have to pay attention to this topic much like they paid attention to mobile 15 years ago as a transformation thing or maybe cloud 10 years ago i think cyber has been one of those it's sort of like the wireless error david like it existed in the 90s but didn't really break around until iphone hit or the world of consumerization really took off right and i think we're at the tip of the spear of that cyber really becoming like the era of mobile for 15 years ago and so i think that's the if there's like a big takeaway i think yes there's lots of solutions the good news is great innovations are coming through companies like cyber reason working with you know proven providers like google and so forth and so there's a lot of like support in the ecosystem but i think if there was one takeaway that was that everybody should just be ready internalized we don't have to be paranoid about it but we anticipate that this is going to be a long game that we'll have to play together well with that uh taking off my journalist hat for a moment and putting on my citizen hat uh it's reassuring to know that we have really smart people working on this uh because when we talk about critical infrastructure control systems and things like that being under threat um that's more significant than simply having your social security number stolen in a in a data breach so um with that uh i'd like to thank you sunil leor thank you so much for joining us on this special cube conversation this is dave nicholson signing off from our continuing coverage of google cloud next 2021 [Music] you
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John F Thompson V1
from around the globe it's thecube covering space and cyber security symposium 2020 hosted by cal poly hello everyone welcome to the space and cyber security symposium 2020 hosted by cal poly where the intersection of space and security are coming together i'm john furrier your host with thecube here in california i want to welcome our featured guest lieutenant general john f thompson with the united states space force approach to cyber security that's the topic of this session and of course he's the commander of the space and missile system center in los angeles air force base also heading up space force general thank you for coming on really appreciate you kicking this off welcome to the symposium hey so uh thank you very much john for that very kind introduction also uh very much thank you to cal poly uh for this opportunity to speak to this audience today also a special shout out to one of the organizers uh dustin brun for all of his work uh helping uh get us uh to this point uh ladies and gentlemen as uh as uh john mentioned uh i'm jt thompson uh i lead the 6 000 men and women of the united states space forces space and missile system center which is headquartered here at los angeles air force base in el segundo if you're not quite sure where that's at it's about a mile and a half from lax this is our main operating location but we do have a number of other operating locations around the country with about 500 people at kirtland air force base in albuquerque new mexico uh and about another 500 people on the front range of the rockies uh between colorado springs and uh and denver plus a smattering of other much smaller operating locations nationwide uh we're responsible for uh acquiring developing and sustaining the united states space force's critical space assets that includes the satellites in the space layer and also on the ground layer our ground segments to operate those satellites and we also are in charge of procuring launch services for the u.s space force and a number of our critical mission partners across the uh department of defense and the intelligence community um just as a couple of examples of some of the things we do if you're unfamiliar with our work we developed and currently sustained the 31 satellite gps constellation that satellite constellation while originally intended to help with global navigation those gps signals have provided trillions of dollars in unanticipated value to the global economy uh over the past three decades i mean gps is everywhere i think everybody realizes that agriculture banking the stock market the airline industry uh separate and distinct navigation systems it's really pervasive across both the capabilities for our department of defense and capabilities for our economy and and individuals billions of individuals across our country and the planet some of the other work we do for instance in the communications sector uh secure communications satellites that we design and build that link america's sons and daughters serving in the military around the world and really enable real-time support and comms for our deployed forces and those of our allies we also acquire uh infrared missile warning satellites uh that monitor the planet for missile launches and provide advanced warning uh to the u.s homeland and to our allies uh in case some of those missile launches are uh nefarious um on a note that's probably a lot closer to home maybe a lot closer to home than many of us want to think about here in the state of california in 2018 smc jumped through a bunch of red tape and bureaucracy uh to partner with the u.s forest service during the two of the largest wildfires in the state's history the camp and woolsey fires in northern california as those fires spread out of control we created processes on the fly to share data from our missile warning satellites those are satellites that are systems that are purpose built to see heat sources from thousands of miles above the planet and we collaborated with the us forest service so that firefighters on the ground uh could track those fires more in real time and better forecast fires and where they were spreading thereby saving lives and and property by identifying hot spots and flare-ups for firefighters that data that we were able to working with our contractors pass to the u.s forest service and authorities here in california was passed in less than an hour as it was collected to get it into the hands of the emergency responders the first responders as quickly as possible and doing that in an hour greatly surpassed what was available from some of the other assets in the airborne and ground-based fire spotters it was really instrumental in fighting those fires and stopping their spread we've continued uh that involvement in recent years using multiple systems to support firefighters across the western u.s this fall as they battled numerous wildfires that unfortunately continue working together with the u.s forest service and with other partners uh we like to make uh we like to think that we made a difference here but there's still a lot more work to go and i think that we should always be asking ourselves uh what else can space data be used for and how can we more rapidly get that space data to uh stakeholders so that they can use it for for purposes of good if you will how else can we protect our nation how else can we protect our friends and allies um i think a major component of the of the discussion that we will have throughout this conference is that the space landscape has changed rapidly and continues to change rapidly um just over the past few years uh john and i were talking before we went live here and 80 nations now have uh space programs 80 nearly 80 space faring nations on the planet um if you just look at one mission area that uh the department of defense is interested in and that's small launch there are currently over a hundred different small launch companies uh within the u.s industrial base vying for commercial dod and civil uh payload capabilities uh mostly to low earth orbit it's it's just truly a remarkable time if you factor in those things like artificial intelligence and machine learning um where we're revolutionary revolutionizing really uh the ways that we generate process and use data i mean it's really remarkable in 2016 so if you think about this four years ago uh nasa estimated that there were 28 terabytes of information transiting their space network each day and that was four years ago um uh obviously we've got a lot of desire to work with a lot of the people in the audience of this congress or in this conference uh we need to work with big thinkers like many of you to answer questions on how best we apply data analytics to extract value and meaning from that data we need new generations of thinkers to help apply cutting edge edge theories of data mining cyber behaviorism and internet of things 2.0 it's just truly a remarkable time uh to be in the space business and the cyber aspects of the states of the space business are truly truly daunting and important to uh to all of us um integrating cyber security into our space systems both commercial and government is a mandate um it's no longer just a nice to have as the us space force and department of the air force leadership has said many times over the past couple of years space is becoming congested and contested and that contested aspect means that we've got to focus on cyber security uh in the same way that the banking industry and cyber commerce focus on uh cyber security day in and day out the value of the data and services provided is really directly tied to the integrity and availability of that data and services from the space layer from the ground control segments associated with it and this value is not just military it's also economic and it's not just american it's also a value for the entire world particularly particularly our allies as we all depend upon space and space systems your neighbors and friends here in california that are employed at the space and missile system center uh work with network defenders we work with our commercial contractors and our systems developers um our international allies and partners to try and build as secure and resilient systems as we can from the ground up that keep the global commons of space free and open for exploration and for commerce um as john and i were talking earlier before we came online there's an aspect of cyber security for space systems especially for some of our legacy systems that's more how do we bolt this on because we fielded those space systems a number of years ago and the the challenges of cyber security in the space domain have grown so we have a part that we have to worry about bolting it on but then we have to worry about building it in as we as we field new systems and build in a flexibility that that realizes that the cyber threat or the cyber security landscape will evolve over time it's not just going to be stagnant there will always be new vulnerabilities and new threat vectors that we always have to look at look uh as secretary barrett who is our secretary of the air force likes to say most americans use space before they have their first cup of coffee in the morning the american way of life really depends on space and as part of the united states space force we work with defense leaders our congress joint and international military teammates and industry to ensure american leadership in space i really thank you for this opportunity to address the audience today john and thanks so much to cal poly for letting me be one of the speakers at this event i really look forward to this for uh several months and so with that i look forward to your questions as we kind of move along here general thank you very much for the awesome uh introductory statement uh for the folks watching on the stream brigadier general carthan is going to be in the chat answering any questions feel free to chat away he's the vice commander of space and missile systems center he'll be available um a couple comments from your keynote before i get to my questions because it just jumped in my head you mentioned the benefits of say space but the fires in california we're living that here that's really real time that's a benefit you also mentioned the ability for more people launching payloads into space and i only imagine moore's law smaller faster cheaper applies to rockets too so i'm imagining you have the benefits of space and you have now more potential objects flying out sanctioned and maybe unsanctioned so you know is it going to be more rules around that i mean this is an interesting question because it's exciting space force but for all the good there is potentially bad out there yeah so i i john i think the uh i think the basics of your question is as space becomes more congested and contested is there a need for more international norms of how satellites fly in space what kind of basic features satellites have to perhaps deorbit themselves what kind of basic protections does do all satellites should all satellites be afforded as part of a peaceful global commons of space i think those are all fantastic questions and i know that u.s and many uh allied policy makers are looking very very hard at those kinds of questions in terms of what are the norms of behavior and how we uh you know how how we field and field is the military term but you know how we uh populate uh using civil or uh commercial terms uh that space layer at different altitudes uh low earth orbit mid mid-earth orbit geosynchronous earth orbit different kinds of orbits uh what the kind of mission areas we accomplish from space that's all things that need to be definitely taken into account as uh as the place gets a little bit not a little bit as the place gets increasingly more popular day in and day out well i'm super excited for space force i know that a new generation of young folks are really interested in it's an emerging changing great space the focus here at this conference is space and cyber security intersection i'd like to get your thoughts on the approach that space force is taking to cyber security and how it impacts our national goals here in the united states yeah yeah so that's a that's a great question john let me let me talk about in two uh two basic ways but number one is and and i know um some people in the audience this might make them a little bit uncomfortable but i have to talk about the threat right um and then relative to that threat i really have to talk about the importance of uh of cyber and specifically cyber security as it relates to that threat um the threats that we face um really represent a new era of warfare and that new era of warfare involves both space and cyber uh we've seen a lot of action in recent months uh from certain countries notably china and russia uh that have threatened what i referred to earlier as the peaceful global commons of space for example uh it through many unclassified sources and media sources everybody should understand that um uh the russians have been testing on orbit uh anti-satellite capabilities it's been very clear if you were following just the week before last the department of defense released its uh 2020 military and security developments involving the people's republic of china um uh and uh it was very clear that china is developing asats electronic jammers directed energy weapons and most relevant to today's discussion offensive cyber uh capabilities there are kinetic threats uh that are very very easy to see but a cyber attack against a critical uh command and control site or against a particular spacecraft could be just as devastating to the system and our war fighters in the case of gps and important to note that that gps system also impacts many civilians who are dependent upon those systems from a first response perspective and emergency services a cyber attack against a ground control site could cause operators to lose control of a spacecraft or an attacker could feed spoofed data to a system to mislead operators so that they send emergency services personnel to the to the wrong address right attacks on spacecraft on orbit whether directly via a network of intrusion or enabled through malware introduced during the systems production uh while we're building the satellite can [ __ ] or corrupt the data denial of service type attacks on our global networks obviously would disrupt our data flow and interfere with ongoing operations and satellite control i mean if gps went down i you know i hesitate to say it this way because we might elicit some screams from the audience but if gps went down a starbucks wouldn't be able to handle your mobile order uber drivers wouldn't be able to find you and domino's certainly certainly wouldn't be able to get there in 30 minutes or less right so with a little bit of tongue-in-cheek there from a military operations perspective it's dead serious um uh we have become accustomed in the commercial world to threats like lance ransomware and malware and those things have unfortunately become commonplace in commercial terrestrial networks and computer systems however what we're seeing is that our adversaries with the increased competition in space these same techniques are being retooled if you will to use against our national security space systems uh day in and day out um as i said during my opening remarks on the importance of cyber the value of these systems is directly tied to their integrity if commanders in the field uh firefighters in california or baristas in in starbucks can't trust the data they see they're receiving then that really harms their decision-making capabilities one of the big trends we've recently seen is the mood move towards proliferated leo uh uh constellations obviously uh spacex's uh starlink uh on the commercial side and on the military side the work that darpa and my organization smc are doing on blackjack and casino as well as some space transport layer constellation work that the space development agency is designing are all really really important types of mesh network systems that will revolutionize how we plan and field warfighting systems and commercial communications and internet providing systems but they're also heavily reliant on cyber security uh we've got to make sure that they are secured to avoid an accident or international damage uh loss of control of these constellations really could be catastrophic from both a mission perspective or from uh you know satellites tumbling out of low earth orbit perspective another trend is introductions in artificial intelligence and machine learning on board spacecraft or at the edge our satellites are really not so much hardware systems with a little software anymore in the commercial sector and in the defense sector they're basically flying boxes full of software right and we need to ensure the data that we're getting out of those flying boxes full of software are helping us base our decisions on accurate data and algorithms govern governing the right actions and that those uh that those systems are impervious to the extent possible uh to nefarious uh modifications so in summation a cyber security is vital element of everything in our national security space goals and i would argue for our national uh goals uh writ large including uh economic and information uh uh dimensions uh the space force leadership at all levels uh from uh some of the brand new second lieutenants that general raymond uh swore into the space force this morning uh ceremonially from the uh air force association's air space and cyberspace conference uh to the various highest levels general raymond uh general d t thompson myself and a number of other senior leaders in this enterprise we've got to make sure that we're all working together to keep cyber security at the forefront of our space systems because it they absolutely depend on it you know you mentioned uh hardware software threats opportunities challenges i want to ask you because you you got me thinking of the minute there around infrastructure i mean we've heard critical infrastructure you know grids here on on earth you're talking about critical infrastructure a redefinition of what critical infrastructure is an extension of what we have so i'd love to get your thoughts about space force's view of that critical infrastructure vis-a-vis the threat vectors because you know the term threat vectors has been kicked around in the cyber space oh yeah threat vectors they're always increasing the surface area well if the surface area is from space it's an unlimited surface area so you got different vectors so you got new critical infrastructure developing real time really fast and you got an expanded threat vector landscape putting that in perspective for the folks that aren't really inside the ropes on these critical issues how would you explain this and how would you talk about those two things well so i tell you um i just like um uh just like uh i'm sure people in the security side or the cyber security side of the business in the banking industry feel they feel like it's uh all possible threat vectors represent a dramatic and protect potentially existential threat to all of the dollars that they have in the banking system to the financial sector on the department of defense side we've got to have sort of the same mindset um that threat vector from to and through space against critical space systems ground segments the launch enterprise or transportation uh to orbit and the various different uh domains within uh within space itself like i mentioned before uh leo mio and geo-based satellites with different orbits all of the different mission areas that are accomplished from space that i mentioned earlier some that i didn't mention like weather tactical or wide band communications uh various new features of space control all of those are things that we have to worry about from a cyber security uh threat perspective and it's a it's a daunting challenge right now right yeah it's awesome and one of the things we've been following on the hardware side here in the on the ground is the supply chain we've seen you know malware being you know really put into really obscure hardware who manufactures it as being outsourced obviously government has restrictions but with the private sector uh you mentioned china and and the us kind of working together across these these peaceful areas but you got to look at the supply chain how does the supply chain the security aspect impact the mission of the u.s space force yeah yeah so so um how about another um just in terms of an example another kind of california-based historical example right um the very first u.s satellite uh explorer one was built by uh the jet propulsion uh laboratory folks uh not far from here in el segundo up in uh up in pasadena um that satellite when it was first built in the late 50s uh weighed a little bit over 30 pounds and i'm sure that each and every part was custom made and definitely made by u.s companies fast forward to today the global supply chain is so tightly coupled and frankly many industries are so specialized almost specialized regionally around the planet we focus every day to guarantee the integrity of every component that we put in our space systems is absolutely critical to the operations of those satellites and we're dependent upon them but it becomes more difficult and more difficult to understand the the heritage if you will of some of the parts that are used the thousands of parts that are used in some of our satellites that are literally school bus sized right the space industry especially uh national security space sector um uh is relatively small compared to other commercial industries and we're moving to towards using more and more parts uh from non-us companies uh cyber security and cyber awareness have to be baked in from the beginning if we're going to be using parts that maybe we don't necessarily um understand 100 percent like an explorer one uh the the lineage of that particular part the environmental difficulties in space are well known the radiation environment the temperature extremes the vacuum those require specialized component and the us military is not the only uh customer in that space in fact we're definitely not the dominant customer uh in space anymore all those factors require us along with our other government partners and many different commercial space organizations to keep a very close eye on our supply chains from a quality perspective a security perspective and availability um there's open source reporting on supply training intrusions from um many different breaches of commercial retailers to the infectious spread of uh you know compromised patches if you will and our adversaries are aware of these techniques as i mentioned earlier with other forms of attack considering our supply chains and development networks really becomes fair game for our adversaries so we have to uh take that threat seriously um between the government and industry sectors here in the u.s we're also working with our industry partners to enact stronger defenses and assess our own vulnerabilities last fall we completed an extensive review of all of our major contracts here at space and missile system center to determine the levels of cyber security requirements we've implemented across our portfolio and it sounds really kind of you know businessy geeky if you will you know hey we looked at our contracts to make sure that we had the right clauses in our contracts to address cyber security as dynamically as we possibly could and so we found ourselves having to add new language to our contracts to require system developers to implement some more advanced uh protective measures in this evolving cyber security environment so that data handling and supply chain perspective uh protections um from contract inception to launch and operations were taken into account uh cyber security really is a key performance parameter for us now it's as important as the the mission performance of the system it's as important as cost it's as important as schedule because if we deliver the perfect system on time and on cost uh it can perform that missile warning or that communications mis mission perfectly but it's not cyber secure if it doesn't have cyber protections built into it or the ability to implement mitigations against cyber uh threats then we've essentially fielded a shoe box in space that doesn't do the k the the war fighter or the nation uh any good um supply chain risk management is a is a major challenge for us uh we're doing a lot to coordinate with our industry partners uh we're all facing it head on uh to try and build secure and trusted components uh that keep our confidence as leaders firefighters and baristas uh as the case may be uh but it is a challenge and we're trying to rise to that challenge you know this so exciting this new area because it really touches everything you know talk about geeking out on on the tech the hardware the systems but also you put your kind of mba hat on you go what's the roi of the extra development and how you how things get built because the always the exciting thing for space geeks is like you're building cool stuff people love it's it's exciting but you still have to build and cyber security has proven that security has to be baked in from the beginning and be thought as a system architecture so you're still building things which means you've got to acquire things you got to acquire parts you got to acquire build software and and sustain it how is security impacting the acquisition and the sustainment of these systems for space yeah from initial development uh through planning for the acquisition design development fielding or production fielding and sustainment it impacts all aspects of of the life cycle john uh we simply especially from the concept of baking in cyber security uh we can't wait until something is built and then try and figure out how to make it cyber secure so we've moved way further uh towards working side by side with our system developers to strengthen cyber security from the very beginning of a system's development cyber security and the resilience associated with it really have to be treated as a key system attribute as i mentioned earlier equivalent with data rates or other metrics of performance we like to talk in uh in the space world about uh mission assurance and mission assurance has always you know sort of taken us as we as we technically geek out right mission assurance has always taken us to the will this system work in space right can it work in a vacuum can it work in you know as it as it uh you know transfers through uh the van allen radiation belt or through the the um the southern hemisphere's electromagnetic anomaly right will it work out in space and now from a resiliency perspective yeah it has to work in space it's got to be functional in space but it's also got to be resistant to these cyber security threats it's it's not just i think uh general dt thompson quoted this term it's not just widget assurance anymore it's mission assurance um uh how does that satellite uh operator that ground control segment operate while under attack so let me break your question a little bit uh just for purposes of discussion into into really two parts uh cyber uh for cyber security for systems that are new and cyber security uh for systems that are in sustainment or kind of old and legacy um obviously there's cyber vulnerabilities that threaten both and we really have to employ different strategies for for defense of of each one for new systems uh we're desperately trying to implement across the department of defense in particular in the space world a kind of a devsecops methodology and practice to delivering software faster and with greater security for our space systems here at smc we have a program called enterprise ground services which is a tool kit basically a collection of tools for common command and control of different satellite systems egs as we call it has an integrated suite for defensive cyber capabilities network operators can use these tools to gain unprecedented insight to data flows and to monitor space network traffic for anomalies or other potential indicators of of bad behavior malicious behavior if you will um uh it's rudimentary at this point but because we're using devsecops and that incremental development approach as we scale it it just becomes more and more capable you know every every product increment that we field here at uh at uh la air force base uh uh we have the united space space forces west coast software factory which we've dubbed kobayashi maru they're using those agile devops uh software development practices uh to deliver uh space awareness software uh to the combined space operations center uh affectionately called the csp that c-spock is just down the road uh from cal poly uh there in san luis obispo at vandenberg air force base they've securely linked the c-spock with other space operation centers around the planet our allies australia canada and the uk uh we're partnering with all of them to enable secure and enhanced combined space operations so lots of new stuff going on as we bake in new development uh capabilities for our our space systems but as i mentioned earlier we've got large constellations on satellite of satellites on orbit right now some of them are well in excess of a decade or more old on orbit and so the design aspects of those satellites are several decades old and so but we still have to worry about them because they're critical to our space capabilities um we've been working with an air force materiel command organization uh called crows which stands for the cyber resiliency office for uh weapon systems to assess all of those legacy platforms from a cyber security perspective and develop defensive strategies and potential hardware and software upgrades to those systems to better enable them to to live through this increasingly cyber security uh concerned era that we currently live in our industry partners have been critical to to both of those different avenues both new systems and legacy systems we're working closely with them to defend and upgrade uh national assets and develop the capabilities to do similar with uh with new national assets coming online the vulnerabilities of our space systems really kind of threaten the way we've done business in the past both militarily and in the case of gps economically the impacts of that cyber security risk are clear in our acquisition and sustainment processes but i've got to tell you it that as the threat vectors change as the vulnerabilities change we've got to be nimble enough agile enough to be able to bounce back and forth we can't just say uh many people in the audience are probably familiar with the rmf or the risk management framework approach to um to reviewing uh the cyber security of a system we can't have program managers and engineers just accomplish an rmf on a system and then hey high five we're all good uh it's a journey not a destination that's cyber security and it's a constant battle rhythm throughout a weapon systems life cycle not just a single event i want to get to this commercial business needs and your needs on the next question but before i go there you mentioned the agile and i see that clearly because when you have accelerated innovation cycles you've got to be faster and we saw this in the computer industry mainframes mini computers and then when you started getting beyond me when the internet hit and pcs came out you saw the big enterprises the banks and and government start to work with startups it used to be a joke in the entrepreneurial circles is that you know there's no way if you're a startup you're ever going to get a contract with a big business enterprise now that used to be for public sector and certainly uh for you guys so as you see startups out there and there's acquisition involved i'm sure would love to love to have a contract with space force there's an roi calculation where if it's in space and you have a sustainment view edit software you might have a new kind of business model that could be attractive to startups could you share your thoughts on the folks who want to be a supplier to you uh whether they're a startup or an existing business that wants to be agile but they might not be that big company we are john that's a fantastic question we are desperately trying to reach out to to those new space advocates to those startups to those um what we sometimes refer to within the department of defense those non-traditional uh defense contractors a couple of things just for uh thinking purposes on some of the things that we're trying to highlight um uh three years ago we created here at uh space and missile system center uh the space enterprise consortium uh to provide a platform uh a contractual vehicle really to enable us to rapidly prototype uh development of space systems and to collaborate uh between the u.s space force uh traditional defense contractors non-traditional vendors like startups and even some academic institutions uh spec as we call it space enterprise consortium uses a specialized contracting tool to get contracts uh awarded quickly many in the audience may be familiar with other transaction agreements and that's what spec is based on and so far in just three years spec has awarded 75 different uh prototyping contracts worth over 800 million dollars with a 36 reduction in time to award and because it's a consortium based competition for um for these kinds of prototyping efforts the barrier to entry for small and non-traditional for startups even for academic institutions to be able to compete for these kinds of prototypings is really lowered right um uh these types of partnerships uh that we've been working through on spec uh have really helped us work with smaller companies who might not have the background or expertise in dealing with the government or in working with cyber security uh for their systems both their developmental systems and the systems that they're designing and trying to build we want to provide ways for companies large and small to partner together and support um uh kind of mutually beneficial uh relationships between all um recently uh at the annual air force association uh conference that i mentioned earlier i moderated a panel with several space industry leaders uh all from big traditional defense contractors by the way and they all stressed the importance of building bridges and partnerships uh between major contractors in the defense industry and new entrants uh and that helps us capture the benefits of speed and agility that come with small companies and startups as well as the expertise and specialized skill sets of some of those uh larger contractors uh that we rely on day in and day out advanced cyber security protections and utilization of secure facilities are just a couple of things that i think we could be prioritizing more so in those collaborations as i mentioned earlier the spec has been very successful in awarding a number of different prototyping contracts and large dollar values and it's just going to get better right there's over 400 members of the space enterprise consortium 80 of them are non-traditional kinds of vendors and we just love working with them another thing that many people in the audience may be familiar with in terms of our outreach to innovators uh if you will and innovators that include uh cyber security experts is our space pitch day events right so we held our first event last november in san francisco uh where we awarded over a two-day period about 46 million dollars to 30 different companies um that had potentially game-changing ideas these were phase two small business innovative research efforts uh that we awarded with cash on the spot uh we're planning on holding our second space pitch day in the spring of 2021. uh we're planning on doing it right here in los angeles uh covent 19 environment permitting um and we think that these are you know fantastic uh uh venues for identifying and working with high-speed startups startups and small businesses who are interested in uh really truly partnering with the us air force it's a as i said before it's a really exciting time to be a part of this business uh and working with the innovation economy uh is something that the department of defense uh really needs to do in that um the innovation that we used to think was ours you know that 80 percent of the industrial-based innovation that came from the department of defense uh the the script has been flipped there and so now more than 70 percent uh particularly in space innovation uh comes from the commercial sector not from uh not from the defense business itself and so um that's a tsunami of uh investment and a tsunami of uh capability and i need to figure out how to get my surfboard out and ride it you know what i mean yeah i mean it's one of those things where the flip the script has been flipped but it's exciting because it's impacting everything are you talking about systems architecture you're talking about software you're talking about a business model you talk about devsecops from a technical perspective but now you have a business model innovation all the theaters of uh are exploding in innovation technical business personnel this brings up the workforce challenge you've got the cyber needs for the u.s space force there's probably a great roi model for new kinds of software development that could be priced into contracts that's a entrepreneurial innovation you got the the business model theater you've got the personnel how does the industry adopt and change you guys are clearly driving this how does the industry adjust to you yeah so um i think a great way to answer that question is to just talk about the kind of people that we're trying to prioritize in the u.s space force from a from an acquisition perspective and in this particular case from a from a cyber security perspective as i mentioned earlier it's the most exciting time to be in space programs uh really since the days of apollo um uh you know just to put it in terms that you know maybe have an impact with the audience uh from 1957 until today approximately 9 000 satellites uh have been launched from the various space faring countries around the planet uh less than two thousand of those nine thousand are still up on orbit and operational and yet in the new space regime um players like spacex have plans to launch you know 12 000 satellites for some of their constellations alone it really is a remarkable time in terms of innovation and fielding of space capabilities and all of those space capabilities whether they're commercial civil or defense are going to require appropriate cyber security uh protections it's just a really exciting time uh to be working in stuff like this and so uh folks like the folks in this audience who have a passion about space and a passion about cyber security are just the kind of people that we want to work with because we need to make sure our systems are are secure and resilient we need folks that have technical and computing expertise engineering skills to be able to design cybersecure systems that can detect and mitigate attacks uh but we also as you alluded to we need people that have that business and um you know business acumen human networking background so that we can launch the startups and work with the non-traditional businesses uh help to bring them on board help to secure both their data and our data and uh and and make sure our processes and systems are are free as much as possible from uh uh from attack um for preparation for for audience members who are young and maybe thinking about getting into this uh trade space um you gotta be smart on digital networking uh you gotta understand basic internet protocols concepts uh programming languages uh database design uh learn what you can from penetration or vulnerability testing and and uh risk assessment i will tell you this and i don't think he will i know he will not mind me telling you this but you've got to be a lifelong learner and so two years ago i'm at home one evening and i get a phone call on my cell phone and it's my boss the commander of air force space command uh general j raymond who is now currently the chief of space operations and he is on temporary duty flying overseas he lands where he's going and he first thing he does when he lands is he calls me and he goes jt um while i was traveling um i noticed that there were e-books available on the commercial airliner i was traveling on and there was an e-book on something called scrumming and agile devsecops and i read it have you read it um and i said no sir but if you tell me what the title of the book is i will read it and so i got to go to my staff meeting um you know the very next week the next time we had a staff meeting and tell everybody in the stab meeting hey if the four star and the three star can read the book about scrumming then i'm pretty sure all of you around this table and all our lieutenants and our captains our gs13s all of our government employees can get smart on uh the scrumming development process and interestingly as another side i had a telephone call with him last year during the holidays where he was trying to take some leave and i said sir what are you up to today are you are you you know making eggnog for the event tonight or whatever and the chief of space operations told me no i'm trying to teach myself python i'm at lesson two and it's not going so well but i'm i'm gonna figure this out and so that kind of thing if the chief of staff or the you know the the the chief of space operations can prioritize scrumming and python language and innovation in his daily schedule then we're definitely looking for other people who can do that and we'll just say lower levels of rank uh throughout our entire space force enterprise um look i i we don't need to need people that can code a satellite from scratch but we need to know we need to have people that have a basic grasp of the programming basics and cyber security requirements and that can turn those things into into meaningful actions obviously in the space domain things like basic physics and orbital mechanics are also important uh space is not an intuitive uh domain so under understanding how things survive uh on orbit is really critical to making the right design and operational decisions and you know i know there's probably a lot because of this conference i know there's a probably a whole lot of high-speed cyber security experts out in the audience and i need those people in the u.s space force the the country is counting on it but i wouldn't discount having people that are just cyber aware or cyber savvy right i have contracting officers and logisticians and program managers and they don't have to be high-end cyber security experts but they have to be aware enough about it to be able to implement cyber security protections um into our space system so the skill set is is really really broad um our adversaries are pouring billions of dollars into uh define designing uh and fielding offensive and destructive space cyber security weapons right they've repeatedly shown really a blatant disregard of safety and international norms for good behavior on orbit and the cyber security aspects of our space systems is really a key battleground going forward so that we can maintain that as i mentioned before peaceful uh global commons of space we really need all hands on deck if you're interested in helping in uniform if you're interested in helping uh not in uniform uh but as a government employee a commercial or civil employee to help us make cyber security more important uh or more cape more able to be developed for our space systems then we'd really love to uh to work with you or have you on the team to build that safe and secure future for our space systems lieutenant general john thompson great insight thank you for sharing all that awesome stories too and motivation for the young next generation the united states space force approach of cyber security really amazing talk thank you for your time final parting question is as you look out and you had your magic wand what's your view for the next few years in terms of things that we could accomplish it's a super exciting time what do you hope for so um um first of all john thanks to you and and thanks to cal poly uh for the invitation and and thanks to everybody for uh for their interest in cyber security especially as it relates to space systems that's here at the conference um uh there's a quote and i'll read it here uh from uh bernard schriever who was the uh the founder if you will uh a legend in uh dod space the founder of the western development division which was a predecessor organization to space and missile systems center general shrever i think captures the essence of what how we see the next couple of years the world has an ample supply of people who can always come up with a dozen good reasons why new ideas will not work and should not be tried but the people who produce progress are breed apart they have the imagination the courage and the persistence to find solutions and so i think if you're hoping that the next few years of space innovation and cyber security innovation are going to be a pony ride at the county fair then perhaps you should look for another line of work because i think the next few years in space and cyber security innovation are going to be more like a rodeo um and a very dynamic rodeo as it goes it is a an awesome privilege to be part of this ecosystem it's really an honor for me to um to be able to play some small role uh in the space ecosystem and trying to improve it uh while i'm trying to improve the chances of uh of the united states of america in a uh in a space war fighting uh uh environment um and so i thank all of you for uh participating today and for this little bit of time that you've allowed me to share with you thank you sir thank you for your leadership and thank you for the for the time for this awesome event space and cyber security symposium 2020 i'm john furrier on behalf of cal poly thanks for watching [Music]
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John F Thompson V1 FOR REVIEW
>> Narrator: From around the globe. It's theCUBE covering space in cybersecurity symposium 2020 hosted by Cal Poly. >> Hello, everyone. Welcome to the space and cybersecurity symposium, 2020 hosted by Cal Poly where the intersection of space and security are coming together. I'm John Furrier, your host with theCUBE here in California. I want to welcome our featured guest, Lieutenant General, John F. Thompson with the United States Space Force approach to cybersecurity. That's the topic of this session. And of course he's the commander of the space and missile system center in Los Angeles Air Force Base. Also heading up Space Force. General, thank you for coming on. I really appreciate to you kicking this off. Welcome to the symposium. >> Hey, so thank you very much, John, for that very kind introduction. Also very much thank you to Cal Poly for this opportunity to speak to this audience today. Also a special shout out to one of the organizers, Dustin Debrun, for all of his work, helping get us to this point. Ladies and gentlemen as a John mentioned, I'm JT Thompson. I lead the 6,000 men and women of the United States Space Force's Space and Missile System Center, which is headquartered here at Los Angeles Air Force Base and El Segundo. If you're not quite sure where that's at, it's about a mile and a half from LAX. This is our main operating location, but we do have a number of other operating locations around the country. We're about 500 people at Kirtland Air Force Base in Albuquerque, New Mexico, and an about another 500 people on the front range of the Rockies between Colorado Springs and Denver plus a smattering of other much smaller operating locations nationwide. We're responsible for acquiring, developing and sustaining the United States Space Force's, critical space assets. That includes the satellites in the space layer and also on the ground layer our ground segments to operate those satellites. And we also are in charge of procuring launch services for the US Space Force and a number of our critical mission partners across the Department of Defense and the intelligence community. Just as a couple of examples of some of the things we do, if you're unfamiliar with our work we developed and currently sustain the 31 satellite GPS constellation that satellite constellation, while originally intended to help with global navigation, those GPS signals have provided trillions of dollars in unanticipated value to the global economy over the past three decades. GPS is everywhere. I think everybody realizes that. Agriculture, banking, the stock market, the airline industry, separate and distinct navigation systems. It's really pervasive across both capabilities for our Department of Defense and capabilities for our economy and individuals, billions of individuals across our country and the planet. Some of the other work we do for instance, in the communications sector, secure communications satellites that we designed and build that link America's sons and daughters serving in the military around the world and really enable real time support and comms for our deployed forces. And those of our allies. We also acquire infrared missile warning satellites that monitor the planet for missile launches that provide advanced warning to the US Homeland and to our allies in case some of those missile launches are nefarious. On a note, that's probably a lot closer to home, maybe a lot closer to home than many of us want to think about here in the state of California. In 2018, SMC jumped through a bunch of red tape and bureaucracy to partner with the US Forest Service during two of the largest wildfires in the state's history, the Camp and Woolsey fires in Northern California. As those fires spread out of control, we created processes on the fly to share data from our missile warning satellites. Those are satellites that are systems that are purpose built to see heat sources from thousands of miles above the planet. And we collaborated with the US Forest Service so that firefighters on the ground could track those fires more in real time and better forecast fires and where they were spreading, thereby saving lives and property by identifying hotspots and flareups for firefighters. That data that we were able to working with our contractors pass to the US Forest Service and authorities here in California, was passed in less than an hour as it was collected to get it into the hands of the emergency responders, the first responders as quickly as possible and doing that in an hour greatly surpassed what was available from some of the other assets in the airborne and ground-based fire spotters. It was really instrumental in fighting those fires and stopping their spread. We've continued that involvement in recent years, using multiple systems to support firefighters across the Western US this fall, as they battled numerous wildfires that unfortunately continue. Working together with the US Forest Service and with other partners we'd like to think that we've made a difference here, but there's still a lot more work to go. And I think that we should always be asking ourselves what else can space data be used for and how can we more rapidly get that space data to stakeholders so that they can use it for purposes of good, if you will. How else can we protect our nation? How else can we protect our friends and allies? I think a major component of the discussion that we will have throughout this conference is that the space landscape has changed rapidly and continues to change rapidly. Just over the past few years, John and I were talking before we went live here and 80 nations now have space programs. Nearly 80 space faring nations on the planet. If you just look at one mission area that the Department of Defense is interested in, and that's small launch, there are currently over 100 different small launch companies within the US industrial base vying for commercial DoD and civil payload capabilities, mostly to lower earth orbit. It's truly a remarkable time. If you factor in those things like artificial intelligence and machine learning, where we're revolutionizing really, the ways that we generate process and use data. It's really remarkable. In 2016, so if you think about this four years ago, NASA estimated that there were 28 terabytes of information transiting their space network each day. And that was four years ago. Obviously we've got a lot of desire to work with a lot of the people in the audience in this conference, we need to work with big thinkers, like many of you to answer questions on how best we apply data analytics to extract value and meaning from that data. We need new generations of thinkers to help apply cutting edge theories of data mining, cyber behaviorism, and Internet of Things 2.0, it's just truly a remarkable time to be in the space business and the cyber aspects of the space business are truly, truly daunting and important to all of us. Integrating cyber security into our space systems, both commercial and government is a mandate. it's no longer just a nice to have as the US Space Force and Department of the Air Force leadership has said many times over the past couple of years, space is becoming congested and contested. And that contested aspect means that we've got to focus on cyber security in the same way that the banking industry and cyber commerce focus on cybersecurity day in and day out. The value of the data and services provided is really directly tied to the integrity and availability of that data and services from the space layer, from the ground control segments associated with it. And this value is not just military, it's also economic and it's not just American, it's also a value for the entire world, particularly our allies, as we all depend upon space and space systems. Your neighbors and friends here in California that are employed at the space and missile system center work with network defenders. We work with our commercial contractors and our systems developers, our international allies and partners to try and build as secure and resilient systems as we can from the ground up that keep the global comments of space free and open for exploration and for commerce as John and I were talking earlier, before we came online, there's an aspect of cybersecurity for space systems, especially for some of our legacy systems, that's more, how do we bolt this on? Cause we fielded those space systems a number of years ago, and the challenges of cybersecurity in the space domain have grown. So we have a part that we have to worry about, bolting it on, but then we have to worry about building it in as we field new systems and build in a flexibility that realizes that the cyber threat or the cybersecurity landscape will evolve over time. It's not just going to be stagnant. There will always be new vulnerabilities and new threat vectors that we all have to look at. Look, as Secretary Barrett, who is our secretary of the air force likes to say most Americans use space before they have their first cup of coffee in the morning. The American way of life really depends on space. And as part of the United States Space Force, we work with defense leaders, our Congress joint, and international military teammates and industry to ensure American leadership in space. I really thank you for this opportunity to address the audience today, John, and thanks so much to Cal Poly for letting me be one of the speakers at this event. I've really looked forward to this for several months. And so with that, I look forward to your questions as we kind of move along here. >> General, thank you very much for those awesome introductory statement. For the folks watching on the stream, Brigadier General Carthan's going to be in the chat, answering any questions, feel free to chat away. He's the vice commander of Space and Missile System Center, he'll be available. A couple of comments from your keynote before I get to my questions. Cause it just jumped into my head. You mentioned the benefits of say space with the fires in California. We're living that here. That's really realtime. That's a benefit. You also mentioned the ability for more people launching payloads into space. I'm only imagined Moore's law smaller, faster, cheaper applies to rockets too. So I'm imagining you have the benefits of space and you have now more potential objects flying out sanctioned and maybe unsanctioned. So is it going to be more rules around that? This is an interesting question cause it's exciting Space Force, but for all the good there is potentially bad out there. >> Yeah. So John, I think the basics of your question is as space becomes more congested and contested, is there a need for more international norms of how satellites fly in space? What kind of basic features satellites have to perhaps de orbit themselves? What kind of basic protections should all satellites be afforded as part of a peaceful global commons of space? I think those are all fantastic questions. And I know that US and many allied policy makers are looking very, very hard at those kinds of questions in terms of what are the norms of behavior and how we field, and field as the military term. But how we populate using civil or commercial terms that space layer at different altitudes, lower earth orbit, mid earth orbit, geosynchronous earth orbit, different kinds of orbits, what the kind of mission areas we accomplished from space. That's all things that need to be definitely taken into account as the place gets a little bit, not a little bit as the place gets increasingly more popular day in and day out. >> I'm super excited for Space Force. I know that a new generation of young folks are really interested in it's an emerging, changing great space. The focus here at this conference is space and cybersecurity, the intersection. I'd like to get your thoughts on the approach that a space force is taking to cybersecurity and how it impacts our national goals here in the United States. >> Yeah. So that's a great question John, let me talk about it in two basic ways. At number one is an and I know some people in the audience, this might make them a little bit uncomfortable, but I have to talk about the threat. And then relative to that threat, I really have to talk about the importance of cyber and specifically cyber security, as it relates to that threat. The threats that we face really represented a new era of warfare and that new era of warfare involves both space and cyber. We've seen a lot of action in recent months from certain countries, notably China and Russia that have threatened what I referred to earlier as the peaceful global commons of space. For example, it threw many unclassified sources and media sources. Everybody should understand that the Russians have been testing on orbit anti-satellite capabilities. It's been very clear if you were following just the week before last, the Department of Defense released its 2020 military and security developments involving the People's Republic of China. And it was very clear that China is developing ASATs, electronic jammers, directed energy weapons, and most relevant to today's discussion, offensive cyber capabilities. There are kinetic threats that are very, very easy to see, but a cyber attack against a critical command and control site or against a particular spacecraft could be just as devastating to the system and our war fighters in the case of GPS and important to note that that GPS system also impacts many civilians who are dependent on those systems from a first response perspective and emergency services, a cyber attack against a ground control site could cause operators to lose control of a spacecraft or an attacker could feed spoofed data to assist them to mislead operators so that they sent emergency services personnel to the wrong address. Attacks on spacecraft on orbit, whether directly via a network intrusion or enabled through malware introduced during the system's production while we're building the satellite can cripple or corrupt the data. Denial-of-service type attacks on our global networks obviously would disrupt our data flow and interfere with ongoing operations and satellite control. If GPS went down, I hesitate to say it this way, cause we might elicit some screams from the audience. But if GPS went down a Starbucks, wouldn't be able to handle your mobile order, Uber drivers wouldn't be able to find you. And Domino's certainly wouldn't be able to get there in 30 minutes or less. So with a little bit of tongue in cheek there from a military operations perspective, it's dead serious. We have become accustomed in the commercial world to threats like ransomware and malware. And those things have unfortunately become commonplace in commercial terrestrial networks and computer systems. However, what we're seeing is that our adversaries with the increased competition in space these same techniques are being retooled, if you will, to use against our national security space systems day in and day out. As I said, during my opening remarks on the importance of cyber, the value of these systems is directly tied to their integrity. If commanders in the field, firefighters in California or baristas in Starbucks, can't trust the data they're receiving, then that really harms their decision making capabilities. One of the big trends we've recently seen is the move towards proliferated LEO constellations, obviously Space X's Starlink on the commercial side and on the military side, the work that DARPA and my organization SMC are doing on Blackjack and Casino, as well as some space transport layer constellation work that the space development agency is designing are all really, really important types of mesh network systems that will revolutionaries how we plan and field war fighting systems and commercial communications and internet providing systems. But they're also heavily reliant on cybersecurity. We've got to make sure that they are secured to avoid an accident or international damage. Loss of control of these constellations really could be catastrophic from both a mission perspective or from a satellites tumbling out of low earth orbit perspective. Another trend is introductions in artificial intelligence and machine learning, onboard spacecraft are at the edge. Our satellites are really not so much hardware systems with a little software anymore in the commercial sector and in the defense sector, they're basically flying boxes full of software. And we need to ensure that data that we're getting out of those flying boxes full of software are helping us base our decisions on accurate data and algorithms, governing the right actions and that those systems are impervious to the extent possible to nefarious modifications. So in summation, cybersecurity is a vital element of everything in our national security space goals. And I would argue for our national goals, writ large, including economic and information dimensions, the Space Force leadership at all levels from some of the brand new second lieutenants that general Raymond swore in to the space force this morning, ceremonially from the air force associations, airspace and cyberspace conference to the various highest levels, General Raymond, General DT Thompson, myself, and a number of other senior leaders in this enterprise. We've got to make sure that we're all working together to keep cyber security at the forefront of our space systems cause they absolutely depend on it. >> You mentioned hardware, software threats, opportunities, challenges. I want to ask you because you got me thinking of the minute they're around infrastructure. We've heard critical infrastructure, grids here on earth. You're talking about critical infrastructure, a redefinition of what critical infrastructure is, an extension of what we have. So I'd love to get your thoughts about Space Force's view of that critical infrastructure vis-a-vis the threat vectors, because the term threat vectors has been kicked around in the cyberspace. Oh you have threat vectors. They're always increasing the surface area. If the surface area is from space, it's an unlimited service area. So you got different vectors. So you've got new critical infrastructure developing real time, really fast. And you got an expanded threat vector landscape. Putting that in perspective for the folks that aren't really inside the ropes on these critical issues. How would you explain this and how would you talk about those two things? >> So I tell you, just like, I'm sure people in the security side or the cybersecurity side of the business in the banking industry feel, they feel like it's all possible threat vectors represent a dramatic and protect potentially existential threat to all of the dollars that they have in the banking system, to the financial sector. On the Department of Defense side, we've got to have sort of the same mindset. That threat vector from, to, and through space against critical space systems, ground segments, the launch enterprise, or transportation to orbit and the various different domains within space itself. Like I mentioned before, LEO, MEO and GEO based satellites with different orbits, all of the different mission areas that are accomplished from space that I mentioned earlier, some that I did mention like a weather tactical or wide band communications, various new features of space control. All of those are things that we have to worry about from a cyber security threat perspective. And it's a daunting challenge right now. >> Yeah, that's awesome. And one of the things we've been falling on the hardware side on the ground is the supply chain. We've seen, malware being, really put in a really obscure hardware. Who manufactures it? Is it being outsourced? Obviously government has restrictions, but with the private sector, you mentioned China and the US kind of working together across these peaceful areas. But you got to look at the supply chain. How does the supply chain in the security aspect impact the mission of the US space Force? >> Yeah. Yeah. So how about another, just in terms of an example, another kind of California based historical example. The very first US Satellite, Explorer 1, was built by the jet propulsion laboratory folks, not far from here in El Segundo, up in Pasadena, that satellite, when it was first built in the late 50s weighing a little bit, over 30 pounds. And I'm sure that each and every part was custom made and definitely made by US companies. Fast forward to today. The global supply chain is so tightly coupled, and frankly many industries are so specialized, almost specialized regionally around the planet. We focus every day to guarantee the integrity of every component that we put in our space systems is absolutely critical to the operations of those satellites and we're dependent upon them, but it becomes more difficult and more difficult to understand the heritage, if you will, of some of the parts that are used, the thousands of parts that are used in some of our satellites that are literally school bus sized. The space industry, especially national security space sector is relatively small compared to other commercial industries. And we're moving towards using more and more parts from non US companies. Cybersecurity and cyber awareness have to be baked in from the beginning if we're going to be using parts that maybe we don't necessarily understand 100% like an Explorer one, the lineage of that particular part. The environmental difficulties in space are well known. The radiation environment, the temperature extremes, the vacuum, those require specialized component. And the US military is not the only customer in that space. In fact, we're definitely not the dominant customer in space anymore. All those factors require us along with our other government partners and many different commercial space organizations to keep a very close eye on our supply chains, from a quality perspective, a security perspective and availability. There's open source reporting on supply training intrusions from many different breaches of commercial retailers to the infectious spread of compromised patches, if you will. And our adversaries are aware of these techniques. As I mentioned earlier, with other forms of attack, considering our supply chains and development networks really becomes fair game for our adversaries. So we have to take that threat seriously. Between the government and industry sectors here in the US. We're also working with our industry partners to enact stronger defenses and assess our own vulnerabilities. Last fall, we completed an extensive review of all of our major contracts here at Space and Missile System Center to determine the levels of cyber security requirements we've implemented across our portfolio. And it sounds really kind of businessy geeky, if you will. Hey, we looked at our contracts to make sure that we had the right clauses in our contracts to address cybersecurity as dynamically as we possibly could. And so we found ourselves having to add new language to our contracts, to require system developers, to implement some more advanced protective measures in this evolving cyber security environment. So that data handling and supply chain protections from contract inception to launch and operations were taken into account. Cyber security really is a key performance parameter for us now. Performance of the system, It's as important as cost, it's as important as schedule, because if we deliver the perfect system on time and on cost, it can perform that missile warning or that communications mission perfectly, but it's not cyber secure. If it's doesn't have cyber protections built into it, or the ability to implement mitigations against cyber threats, then we've essentially fielded a shoe box in space that doesn't do the CA the war fighter or the nation any good. Supply chain risk management is a major challenge for us. We're doing a lot to coordinate with our industry partners. We're all facing it head on to try and build secure and trusted components that keep our confidence as leaders, firefighters, and baristas as the case may be. But it is a challenge. And we're trying to rise to that challenge. >> This is so exciting this new area, because it really touches everything. Talk about geeking out on the tech, the hardware, the systems but also you put your kind of MBA hat on you go, what's the ROI of extra development and how things get built. Because the always the exciting thing for space geeks is like, if you're building cool stuff, it's exciting, but you still have to build. And cybersecurity has proven that security has to be baked in from the beginning and be thought as a system architecture. So you're still building things, which means you got to acquire things, you got to acquire parts, you got acquire build software and sustain it. How is security impacting the acquisition and the sustainment of these systems for space? >> Yeah. From initial development, through planning for the acquisition, design, development, our production fielding and sustainment, it impacts all aspects of the life cycle, John. We simply, especially from the concept of baking in cybersecurity, we can't wait until something is built and then try and figure out how to make it cyber secure. So we've moved way further towards working side by side with our system developers to strengthen cybersecurity from the very beginning of a systems development, cyber security, and the resilience associated with it really have to be treated as a key system attribute. As I mentioned earlier, equivalent with data rates or other metrics of performance. We like to talk in the space world about mission assurance and mission assurance has always sort of taken us as we technically geek out. Mission assurance has always taken us to the will this system work in space. Can it work in a vacuum? Can it work in as it transfers through the Van Allen radiation belt or through the Southern hemisphere's electromagnetic anomaly? Will it work out in space? And now from a resiliency perspective, yeah, it has to work in space. It's got to be functional in space, but it's also got to be resistant to these cybersecurity threats. It's not just, I think a General D.T Thompson quoted this term. It's not just widget assurance anymore. It's mission assurance. How does that satellite operator that ground control segment operate while under attack? So let me break your question a little bit, just for purposes of discussion into really two parts, cybersecurity, for systems that are new and cybersecurity for systems that are in sustainment are kind of old and legacy. Obviously there's cyber vulnerabilities that threatened both, and we really have to employ different strategies for defensive of each one. For new systems. We're desperately trying to implement across the Department of Defense and particularly in the space world, a kind of a dev sec ops methodology and practice to delivering software faster and with greater security for our space systems. Here at SMC, we have a program called enterprise ground services, which is a toolkit, basically a collection of tools for common command and control of different satellite systems, EGS as we call it has an integrated suite for defensive cyber capabilities. Network operators can use these tools to gain unprecedented insight to data flows and to monitor space network traffic for anomalies or other potential indicators of a bad behavior, malicious behavior, if you will, it's rudimentary at this point, but because we're using DevSecOps and that incremental development approach, as we scale it, it just becomes more and more capable. Every product increment that we feel. Here at LA Air Force Base, we have the United Space Force's West Coast Software Factory, which we've dubbed the Kobayashi Maru. They're using those agile DevOps software development practices to deliver a space awareness software to the combined space operations center. Affectionately called the CSpock that CSpock is just on the road from Cal Poly there in San Luis Obispo at Vandenberg Air Force Base. They've so securely linked the sea Spock with other space operation centers around the planet, our allies, Australia, Canada, and the UK. We're partnering with all of them to enable secure and enhanced combined space operations. So lots of new stuff going on as we bake in new development capabilities for our space systems. But as I mentioned earlier, we've got large constellations of satellites on orbit right now. Some of them are well in excess of a decade or more or old on orbit. And so the design aspects of those satellites are several decades old. But we still have to worry about them cause they're critical to our space capabilities. We've been working with an air force material command organization called CROWS, which stands for the Cyber Resiliency Office for Weapon Systems to assess all of those legacy platforms from a cyber security perspective and develop defensive strategies and potential hardware and software upgrades to those systems to better enable them to live through this increasingly cybersecurity concerned era that we currently live in. Our industry partners have been critical to both of those different avenues. Both new systems and legacy systems. We're working closely with them to defend and upgrade national assets and develop the capabilities to do similar with new national assets coming online. The vulnerabilities of our space systems really kind of threatened the way we've done business in the past, both militarily and in the case of GPS economically. The impacts of that cybersecurity risk are clear in our acquisition and sustainment processes, but I've got to tell you, as the threat vectors change, as the vulnerabilities change, we've got to be nimble enough, agile enough, to be able to bounce back and forth. We can't just say, many people in the audience are probably familiar with the RMF or the Risk Management Framework approach to reviewing the cyber security of a system. We can't have program managers and engineers just accomplish an RMF on a system. And then, hey, high five, we're all good. It's a journey, not a destination, that's cybersecurity. And it's a constant battle rhythm through our weapon systems lifecycle, not just a single event. >> I want to get to this commercial business needs and your needs on the next question. But before I go there, you mentioned agile. And I see that clearly because when you have accelerated innovation cycles, you've got to be faster. And we saw this in the computer industry, mainframes, mini computers, and then we started getting beyond maybe when the internet hit and PCs came out, you saw the big enterprises, the banks and government start to work with startups. And it used to be a joke in the entrepreneurial circles is that, there's no way if you are a startup you're ever going to get a contract with a big business enterprise. Now that used to be for public sector and certainly for you guys. So as you see startups out there and there's acquisition involved, I'm sure would love to have a contract with Space Force. There's an ROI calculation where if it's in space and you have a sustainment view and it's software, you might have a new kind of business model that could be attractive to startups. Could you share your thoughts on the folks who want to be a supplier to you, whether they're a startup or an existing business that wants to be agile, but they might not be that big company. >> John, that's a fantastic question. We're desperately trying to reach out to those new space advocates, to those startups, to those what we sometimes refer to, within the Department of Defense, those non traditional defense contractors. A couple of things just for thinking purposes on some of the things that we're trying to highlight. Three years ago, we created here at Space and Missile System Center, the Space Enterprise Consortium to provide a platform, a contractual vehicle, really to enable us to rapidly prototype, development of space systems and to collaborate between the US Space Force, traditional defense contractors, non traditional vendors like startups, and even some academic institutions. SPEC, as we call it, Space Enterprise Consortium uses a specialized contracting tool to get contracts awarded quickly. Many in the audience may be familiar with other transaction agreements. And that's what SPEC is based on. And so far in just three years, SPEC has awarded 75 different prototyping contracts worth over $800 million with a 36% reduction in time to award. And because it's a consortium based competition for these kinds of prototyping efforts, the barrier to entry for small and nontraditional, for startups, even for academic institutions to be able to compete for these kinds of prototyping has really lowered. These types of partnerships that we've been working through on spec have really helped us work with smaller companies who might not have the background or expertise in dealing with the government or in working with cyber security for their systems, both our developmental systems and the systems that they're designing and trying to build. We want to provide ways for companies large and small to partner together in support kind of mutually beneficial relationships between all. Recently at the Annual Air Force Association conference that I mentioned earlier, I moderated a panel with several space industry leaders, all from big traditional defense contractors, by the way. And they all stressed the importance of building bridges and partnerships between major contractors in the defense industry and new entrance. And that helps us capture the benefits of speed and agility that come with small companies and startups, as well as the expertise and specialized skill sets of some of those larger contractors that we rely on day in and day out. Advanced cyber security protections and utilization of secure facilities are just a couple of things that I think we could be prioritizing more so in those collaborations. As I mentioned earlier, the SPEC has been very successful in awarding a number of different prototyping contracts and large dollar values. And it's just going to get better. There's over 400 members of the space enterprise consortium, 80% of them are non traditional kinds of vendors. And we just love working with them. Another thing that many people in the audience may be familiar with in terms of our outreach to innovators, if you will, and innovators that include cyber security experts is our space pitch day events. So we held our first event last November in San Francisco, where we awarded over a two day period about $46 million to 30 different companies that had potentially game changing ideas. These were phase two small business innovative research efforts that we awarded with cash on the spot. We're planning on holding our second space pitch day in the spring of 2021. We're planning on doing it right here in Los Angeles, COVID-19 environment permitting. And we think that these are fantastic venues for identifying and working with high-speed startups, and small businesses who are interested in really, truly partnering with the US Air Force. It's, as I said before, it's a really exciting time to be a part of this business. And working with the innovation economy is something that the Department of Defense really needs to do in that the innovation that we used to think was ours. That 80% of the industrial base innovation that came from the Department of Defense, the script has been flipped there. And so now more than 70%, particularly in space innovation comes from the commercial sector, not from the defense business itself. And so that's a tsunami of investment and a tsunami of a capability. And I need to figure out how to get my surfboard out and ride it, you know what I mean? >> Yeah, It's one of those things where the script has been flipped, but it's exciting because it's impacting everything. When you're talking about systems architecture? You're talking about software, you're talking about a business model. You're talking about dev sec opsx from a technical perspective, but now you have a business model innovation. All the theaters are exploding in innovation, technical, business, personnel. This brings up the workforce challenge. You've got the cyber needs for the US Space Force, It's probably great ROI model for new kinds of software development that could be priced into contracts. That's a entrepreneurial innovation, you've got the business model theater, you've got the personnel. How does the industry adopt and change? You guys are clearly driving this. How does the industry adjust to you? >> Yeah. So I think a great way to answer that question is to just talk about the kind of people that we're trying to prioritize in the US Space Force from an acquisition perspective, and in this particular case from a cybersecurity perspective. As I mentioned earlier, it's the most exciting time to be in space programs, really since the days of Apollo. Just to put it in terms that maybe have an impact with the audience. From 1957 until today, approximately 9,000 satellites have been launched from the various space varying countries around the planet. Less than 2000 of those 9,000 are still up on orbit and operational. And yet in the new space regime players like Space X have plans to launch, 12,000 satellites for some of their constellations alone. It really is a remarkable time in terms of innovation and fielding of space capabilities and all of those space capabilities, whether they're commercial, civil, or defense are going to require appropriate cybersecurity protections. It's just a really exciting time to be working in stuff like this. And so folks like the folks in this audience who have a passion about space and a passion about cybersecurity are just the kind of people that we want to work with. Cause we need to make sure our systems are secure and resilient. We need folks that have technical and computing expertise, engineering skills to be able to design cyber secure systems that can detect and mitigate attacks. But we also, as you alluded to, we need people that have that business and business acumen, human networking background, so that we can launch the startups and work with the non traditional businesses. Help to bring them on board help, to secure both their data and our data and make sure our processes and systems are free as much as possible from attack. For preparation, for audience members who are young and maybe thinking about getting into this trade space, you got to be smart on digital networking. You got to understand basic internet protocols, concepts, programming languages, database design. Learn what you can for penetration or vulnerability testing and a risk assessment. I will tell you this, and I don't think he will, I know he will not mind me telling you this, but you got to be a lifelong learner and so two years ago, I'm at home evening and I get a phone call on my cell phone and it's my boss, the commander of Air Force Space command, General, J. Raymond, who is now currently the Chief of Space Operations. And he is on temporary duty, flying overseas. He lands where he's going and first thing he does when he lands is he calls me and he goes JT, while I was traveling, I noticed that there were eBooks available on the commercial airliner I was traveling on and there was an ebook on something called scrumming and agile DevSecOps. And I read it, have you read it? And I said, no, sir. But if you tell me what the title of the book is, I will read it. And so I got to go to my staff meeting, the very next week, the next time we had a staff meeting and tell everybody in the staff meeting, hey, if the four star and the three star can read the book about scrumming, then I'm pretty sure all of you around this table and all our lieutenants and our captains our GS13s, All of our government employees can get smart on the scrumming development process. And interestingly as another side, I had a telephone call with him last year during the holidays, where he was trying to take some leave. And I said, sir, what are you up to today? Are you making eggnog for the event tonight or whatever. And the Chief of Space Operations told me no, I'm trying to teach myself Python. I'm at lesson two, and it's not going so well, but I'm going to figure this out. And so that kind of thing, if the chief of staff or the Chief of Space Operations can prioritize scrumming and Python language and innovation in his daily schedule, then we're definitely looking for other people who can do that. And we'll just say, lower levels of rank throughout our entire space force enterprise. Look, we don't need people that can code a satellite from scratch, but we need to know, we need to have people that have a basic grasp of the programming basics and cybersecurity requirements. And that can turn those things into meaningful actions, obviously in the space domain, things like basic physics and orbital mechanics are also important spaces, not an intuitive domain. So under understanding how things survive on orbit is really critical to making the right design and operational decisions. And I know there's probably a lot, because of this conference. I know there's probably a whole lot of high speed cybersecurity experts out in the audience. And I need those people in the US Space Force. The country is counting on it, but I wouldn't discount having people that are just cyber aware or cyber savvy. I have contracting officers and logisticians and program managers, and they don't have to be high end cybersecurity experts, but they have to be aware enough about it to be able to implement cyber security protections into our space systems. So the skill set is really, really broad. Our adversaries are pouring billions of dollars into designing and fielding offensive and destructive space, cybersecurity weapons. They repeatedly shown really a blatant disregard of safety and international norms for good behavior on orbit. And the cyber security aspects of our space systems is really a key battleground going forward so that we can maintain that. As I mentioned before, peaceful global comments of space, we really need all hands on deck. If you're interested in helping in uniform, if you're interested in helping, not in uniform, but as a government employee, a commercial or civil employee to help us make cyber security more important or more able to be developed for our space systems. And we'd really love to work with you or have you on the team to build that safe and secure future for our space systems. >> Lieutenant General John Thompson, great insight. Thank you for sharing all that awesome stories too, and motivation for the young next generation. The United States Space Force approach to cybersecurity. Really amazing talk, thank you for your time. Final parting question is, as you look out and you have your magic wand, what's your view for the next few years in terms of things that we could accomplish? It's a super exciting time. What do you hope for? >> So first of all, John, thanks to you and thanks to Cal Poly for the invitation and thanks to everybody for their interest in cybersecurity, especially as it relates to space systems, that's here at the conference. There's a quote, and I'll read it here from Bernard Schriever, who was the founder, if you will, a legend in a DoD space, the founder of the Western development division, which was a predecessor organization to Space and Missile System Center, General Schriever, I think captures the essence of how we see the next couple of years. "The world has an ample supply of people "who can always come up with a dozen good reasons "why new ideas will not work and should not be tried, "but the people who produce progress are breed apart. "They have the imagination, "the courage and the persistence to find solutions." And so I think if you're hoping that the next few years of space innovation and cybersecurity innovation are going to be upon a pony ride at the County fair, then perhaps you should look for another line of work, because I think the next few years in space and cybersecurity innovation are going to be more like a rodeo and a very dynamic rodeo as it goes. It is an awesome privilege to be part of this ecosystem. It's really an honor for me to be able to play some small role in the space ecosystem and trying to improve it while I'm trying to improve the chances of the United States of America in a space war fighting environment. And so I thank all of you for participating today and for this little bit of time that you've allowed me to share with you. Thank you. >> Sir, thank you for your leadership and thank you for the time for this awesome event, Space and Cyber Cybersecurity Symposium 2020, I'm John Furrier on behalf of Cal Poly, thanks for watching. (mellow music)
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Sizzle Reel | RSA Conference 2020
absolutely I think if I were to net it out Jeff what I'm sensing is there is a whole movement to shift security left which is this whole idea of IT stepping up as the first line of defense reduce cyber exposure take care of patching multi-factor authentication reduce their tax surface intrinsic security right so you know DevOps active ops take care of it right up front with all the apps even get built right then there is another movement to shift things right which is take care of the new new aspects of the attack surface right what the hackers always take advantage of of other areas where in a sense we are unprepared and for a long time they've seen us being unprepared in terms of reducing the attack surface and then they go after the new aspects of the tak surface and what are those IT I ot ot data as as an attack surface and the edge right so so these are areas where there's a lot of activity a lot of innovation you know on the on the air on the floor here if you walk the corners shifting left shifting right as in all the new aspects of the tax F is I'm seeing a lot of conversations a lot of innovation in that area I think it also boils down to real-world examples we've been really understand the demographics that we're working for I think today it's the first time really in history that we have four generations working side-by-side in the workforce so we have to understand that people learn differently training should be adjusted to the type of people that we're teaching but phishing doesn't just oil down to clicking on links phishing teaches also it boils down to tricking somebody getting someone's trust and it can come in different forms for example think of social media how do people connect we're connecting across social media on many different platforms I'll give a very easy example LinkedIn LinkedIn is for business have form we're all connected on LinkedIn why we connect on LinkedIn because that's a social platform that people feel safe on because we're able to connect to each other in a business form I want to think of the person who's getting the first job with an organization their first job in maybe their project manager and they're working for Bank a excited to be working for Bank a hey I'm gonna list all the projects I'm working for so here's now my resume on LinkedIn I'm working on project ABCD and this is my manager I report to perfect there's some information sitting there on LinkedIn now what else I will tell you is that you might have somebody who's looking to get into that Bank what will they do let's look for the lowest hanging fruit who this new project manager oh I see they're working on these projects and they're reporting in to someone well I'm not a project manager I'm a senior project manager from a competing bank I'm gonna befriend them and tell them that I'm really excited about the work they're doing here there's social engineering their way into their friendship into the good graces into their trust once done the video becomes a trusted source people share information freely so people are putting too much information out there on social trusting too easily opening the door for more than a phishing attack and things are just rapidly going out of control right so my co-founder and I both came from the world of being practitioners and we saw how limited the space wasn't actually changing human behavior I was given some animated powerpoints that use this to keep the Russians out of your Network which is a practical joke unless your job is on the line I took a huge step back and I said there are other fields that have figured this out behavioral science being one of them they use positive reinforcement gamification marketing and advertisement has figured out how to engage this human element just look around the RSA floor and there are so many learnings of how we make decisions as human beings that can be applied into changing people's behaviors and security so that's what we did adventure so this is my first early stage company we're still seeking series a we're a young company but our mantras we are the data value company so they have had this very robust analytics engine that goes into the heart of data I can track it and map it and make it beautiful and Along Came McNeely who actually sits on our board Oh does he and they said we need someone who's this week it's all happening so they asked Scott McNealy who is the craziest person in privacy and data that you know and he said oh my god get the done any woman so they got the den of a woman and that's what I do now so I'm taking this analytics value engine I'm pointing it to the board as I've always said Grace Hopper said data value and data risk has to be on the corporate balance sheet and so that's what we're building is a data balance sheet for everyone to use to actually value data for me it starts with technology that takes look we've only got so many security practitioners in the company actually defend your email example we've got to defend every user from those kinds of problems and so how do I find technology solutions that help take that load off the security practitioners so they can focus on the niche examples that are really really well-crafted emails and and and help take that load off the user because users just you're not going to be able to handle that right it's not fair to ask them and like you said it was just poorly timed that helps protect it so how do we help make sure that we're taking that technology load off identify the threats in advance and and protect them and so I think one of the biggest things that Chris and I talk a lot about is how do our solutions help make it easier for people to secure themselves instead of just providing only a technology technology advantage so the virtual analyst is able to sit on premises so it's localized learning collector has to understand the nature of those strats collect to be able to look at the needles of the needles if you will make sense of that and then automatically generate reports based off of that right so it's really an assist tool that a network in min or a security analyst was able to pick up and virtually save hours and hours of time so we have this we call it a thread research group within the company and their job is to take all the data from the sensors we have I mean we have we look at about 25 petabytes of data every day all our solutions are cloud solutions as well as on forum so we get the benefit of basically seeing all the data's that are hitting our customers every day I mean we block about 1 million attacks every minutes like every minute 1 billion attacks every minute minute right we protect over 3 million databases and you know we've mitigated some of the largest DDoS attacks that's ever been reported so we have a lot of date right that we're seen and the interesting thing is that you're right we are having to always we're using that threat research data to see what's happening how the threat landscape is changing therefore guiding us on how we need to augment and add to our products to prevent that but interestingly we're also consuming AI and machine learning as well on our products because we're able to use those solutions to actually do a lot of attack analytics and do a lot of predictive and research for our customers that can kind of guide them about you know where things are happening because what's happening is that before a lot of the tacks were just sort of fast and furious now we're seeing a pattern towards snow snow and continuous if that makes sense we're seeing all these patterns and threats coming in so we're fighting against those technologies like AI Barossa using those technologies to help us soon you know decide where we need to continue to add capabilities to stop it you know the whole bad box thing wasn't a problem right a number of years ago and so it's it's ever-changing your world which frankly speaking makes it an interesting place to be yes who wants to be in a static in a boring place right well I mean we do you're a good package or a bad package you have to traverse the network to be interesting we've all you know put our phones in airplane mode at blackhat or events like that but we don't want to be on it they're really boring when they're offline but they're also really boring too attackers when they're offline as soon as you turn them on you have a problem or could have a problem but as things traverse the network what better place to see who and what's on your network and on the gear and end of the day we're able to provide that visibility we're able to provide that enforcement so as you mentioned 2020 is now the year of awareness for us so the threat aware network we're able to do things like look at encrypted traffic do heuristics and analysis to figure out should that even be on my network because as you bring it into a network and you have to decrypt it a there's privacy concerns of that in these times but also it's computationally expensive to do that so it becomes a challenge from a both a financial perspective as well as a compliance perspective so we're helping solve s even kind of offset that traffic and be able to ensure your network secure so when we started developing our cyber recovery solution about five years ago we used the NIST cybersecurity framework which is a very well known standard that defines really five pillars of how organizations can think about building a cyber resilience strategy a cyber resilience strategy really encompasses everything from perimeter threat detection and response all the way through incident response after an attack and everything that happens in between protecting the data and recovering the data right and critical systems so I think of cyber resilience is that holistic strategy of protecting an organization and its data from a cyberattack yeah I think the human element is the hardest part you know in mind of this conference and its theme the human element the hardest part about this job is that it's not just mechanical issues and routing issues and networking issues but is about dealing with all types of humans innocent humans that do strange and bad things unknowingly and it's in malicious people who do very bad things that is by design and so the research suggests that no matter what we do in security awareness training some four percent of our employee base will continually bail security awareness that's what we fished and actively and so one of the things that we need to do is use automation and intelligence so that you can comb through all of that data and make a better informed decision about what risks are going to mitigate right and for this four percent are habitually abusing the system and can't be retrained well you can isolate them right and make sure that they're separated and then they're not able to to do things that may harm the organization you
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Jamil Jaffer, IronNet | RSAC USA 2020
>>Bye from San Francisco. It's the cube covering RSA conference, 2020 San Francisco brought to you by Silicon angle media. >>Hey, welcome back. Everyone's keeps coverage here in San Francisco at the Moscone center for RSA conference 2020 I'm John, your host, as cybersecurity goes to the next generation as the new cloud scale, cyber threats are out there, the real impact a company's business and society will be determined by the industry. This technology and the people that a cube alumni here, caramel Jaffer, SVP, senior vice president of strategy and corporate development for iron net. Welcome back. Thanks to Shawn. Good to be here. Thanks for having so iron net FC general Keith Alexander and you got to know new CEO of there. Phil Welsh scaler and duo knows how to scale up a company. He's right. Iron is doing really well. The iron dome, the vision of collaboration and signaling. Congratulations on your success. What's a quick update? >> Well look, I mean, you know, we have now built the capability to share information across multiple companies, multiple industries with the government in real time at machine speed. >>Really bringing people together, not just creating collected security or clip to defense, but also collaborating real time to defend one another. So you're able to divide and conquer Goliath, the enemy the same way they come after you and beat them at their own game. >> So this is the classic case of offense defense. Most corporations are playing defense, whack-a-mole, redundant, not a lot of efficiencies, a lot of burnout. Exactly. Not a lot of collaboration, but everyone's talking about the who the attackers are and collaborating like a team. Right? And you guys talk about this mission. Exactly. This is really the new way to do it. It has, the only way it works, >> it is. And you know, you see kids doing it out there when they're playing Fortnite, right? They're collaborating in real time across networks, uh, to, you know, to play a game, right? You can imagine that same construct when it comes to cyber defense, right? >>There's no reason why one big company, a second big company in a small company can't work together to identify all the threats, see that common threat landscape, and then take action on it. Trusting one another to take down the pieces they have folk to focus on and ultimately winning the battle. There's no other way a single company is gonna be able defend itself against a huge decency that has virtually unlimited resources and virtually unlimited human capital. And you've got to come together, defend across multiple industries, uh, collectively and collaboratively. >> Do you mean, we talked about this last time and I want to revisit this and I think it's super important. I think it's the most important story that's not really being talked about in the industry. And that is that we were talking last time about the government protects businesses. If someone dropped troops on the ground in your neighborhood, the government would protect you digitally. >>That's not happening. So there's really no protection for businesses. Do they build their own militia? Do they build their own army? Who was going to, who's going to be their heat shield? So this is a big conversation and a big, it brings a question. The role of the government. We're going to need a digital air force. We're going to need a digital army, Navy, Navy seals. We need to have that force, and this has to be a policy issue, but in the short term, businesses and individuals are sitting out there being attacked by sophisticated mission-based teams of hackers and nation States, right? Either camouflaging or hiding, but attacking still. This is a huge issue. What's going on? Are people talking about this in D C well, >> John, look not enough. People are talking about it, right? And forget DC. We need to be talking about here, out here in the Silicon Valley with all these companies here at the RSA floor and bring up the things you're bringing up because this is a real problem we're facing as a nation. >>The Russians aren't coming after one company, one state. They're coming after our entire election infrastructure. They're coming after us as a nation. The Chinese maybe come after one company at a time, but their goal is to take our electoral properties, a nation, repurpose it back home. And when the economic game, right, the Iranians, the North Koreans, they're not focused on individual actors, but they are coming after individual actors. We can't defend against those things. One man, one woman, one company on an Island, one, one agency, one state. We've got to come together collectively, right? Work state with other States, right? If we can defend against the Russians, California might be really good at it. Rhode Island, small States can be real hard, defends against the Russians, but if California, Rhode Island come together, here's the threats. I see. Here's what it's. You see share information, that's great. Then we collaborate on the defense and work together. >>You take these threats, I'll take those threats and now we're working as a team, like you said earlier, like those kids do when they're playing fortnight and now we're changing the game. Now we're really fighting the real fight. >> You know, when I hear general Keith Alexander talking about his vision with iron net and what you guys are doing, I'm inspired because it's simply put, we have a mission to protect our nation, our people, and a good businesses, and he puts it into kind of military, military terms, but in reality, it's a simple concept. Yeah, we're being attacked, defend and attack back. Just basic stuff. But to make it work as the sharing. So I got to ask you, I'm first of all, I love the, I love what he has, his vision. I love what you guys are doing. How real are we? What's the progression? >>Where are we on the progress bar of that vision? Well, you know, a lot's changed to the last year and a half alone, right? The threats gotten a lot, a lot more real to everybody, right? Used to be the industry would say to us, yeah, we want to share with the government, but we want something back for, right. We want them to show us some signal to today. Industry is like, look, the Chinese are crushing us out there, right? We can beat them at a, at some level, but we really need the governor to go do its job too. So we'll give you the information we have on, on an anonymized basis. You do your thing. We're going to keep defending ourselves and if you can give us something back, that's great. So we've now stood up in real time of DHS. We're sharing with them huge amounts of data about what we're seeing across six of the top 10 energy companies, some of the biggest banks, some of the biggest healthcare companies in the country. >>Right? In real time with DHS and more to come on that more to come with other government agencies and more to come with some our partners across the globe, right? Partners like those in Japan, Singapore, Eastern Europe, right? Our allies in the middle East, they're all the four lenses threat. We can bring their better capability. They can help us see what's coming at us in the future because as those enemies out there testing the weapons in those local areas. I want to get your thoughts on the capital markets because obviously financing is critical and you're seeing successful venture capital formulas like forge point really specialized funds on cyber but not classic industry formation sectors. Like it's not just security industry are taking a much more broader view because there's a policy implication is that organizational behavior, this technology up and down the stack. So it's a much broad investment thesis. >>What's your view of that? Because as you do, you see that as a formula and if so, what is this new aperture or this new lens of investing to be successful in funding? Companies will look, it's really important what companies like forge point are doing. Venture capital funds, right? Don Dixon, Alberta Pez will land. They're really innovating here. They've created a largest cybersecurity focused fund. They just closed the recently in the world, right? And so they really focus on this industry. Partners like, Kleiner Perkins, Ted Schlein, Andrea are doing really great work in this area. Also really important capital formation, right? And let's not forget other funds. Ron Gula, right? The founder of tenable started his own fund out there in DC, in the DMV area. There's a lot of innovation happening this country and the funding on it's critical. Now look, the reality is the easy money's not going to be here forever, right? >>It's the question is what comes when that inevitable step back. We don't. Nobody likes to talk about it. I said the guy who who bets on the other side of the craps game in Vegas, right? You don't wanna be that guy, but let's be real. I mean that day will eventually come. And the question is how do you bring some of these things together, right? Bring these various pieces together to really create long term strategies, right? And that's I think what's really innovative about what Don and Alberto are doing is they're building portfolio companies across a range of areas to create sort of an end to end capability, right? Andrea is doing things like that. Ted's doing stuff like that. It's a, that's really innovation. The VC market, right? And we're seeing increased collaboration VC to PE. It's looking a lot more similar, right? And now we're seeing innovative vehicles like stacks that are taking some of these public sort of the reverse manner, right? >>There's a lot of interests. I've had to be there with Hank Thomas, the guys chief cyber wrenches. So a lot of really cool stuff going on in the financing world. Opportunities for young, smart entrepreneurs to really move out in this field and to do it now. And money's still silver. All that hasn't come as innovation on the capital market side, which is awesome. Let's talk about the ecosystem in every single market sector that I've been over, my 30 year career has been about a successful entrepreneurship check, capital two formation of partnerships. Okay. You're on the iron net, front lines here. As part of that ecosystem, how do you see the ecosystem formula developing? Is it the same kind of model? Is it a little bit different? What's your vision of the ecosystem? Look, I mean partnerships channel, it's critical to every cyber security company. You can't scale on your own. >>You've got to do it through others, right? I was at a CrowdStrike event the other day. 91% of the revenue comes from the channel. That's an amazing number. You think about that, right? It's you look at who we're trying to talk about partnering with. We're talking about some of the big cloud players. Amazon, Microsoft, right? Google, right on the, on the vendor side. Pardon me? Splunk crashes, so these big players, right? We want to build with them, right? We want to work with them because there's a story to tell here, right? When we were together, the AECOS through self is defendant stronger. There's no, there's no anonymity here, right? It's all we bring a specialty, you bring specialty, you work together, you run out and go get the go get the business and make companies safer. At the end of the day, it's all about protecting the ecosystem. What about the big cloud player? >>Cause he goes two big mega trends. Obviously cloud computing and scale, right? Multi-cloud on the horizon, hybrids, kind of the bridge between single public cloud and multi-cloud and then AI you've got the biggies are generally will be multiple generations of innovation and value creation. What's your vision on the impact of the big waves that are coming? Well, look, I mean cloud computing is a rate change the world right? Today you can deploy capability and have a supercomputer in your fingertips in in minutes, right? You can also secure that in minutes because you can update it in real time. As the machine is functioning, you have a problem, take it down, throw up a new virtual machine. These are amazing innovations that are creating more and more capability out there in industry. It's game changing. We're happy, we're glad to be part of that and we ought to be helping defend that new amazing ecosystem. >>Partnering with companies like Microsoft. They didn't AWS did, you know, you know, I'm really impressed with your technical acumen. You've got a good grasp of the industry, but also, uh, you have really strong on the societal impact policy formulation side of government and business. So I want to get your thoughts for the young kids out there that are going to school, trying to make sense of the chaos that's going on in the world, whether it's DC political theater or the tech theater, big tech and in general, all of the things with coronavirus, all this stuff going on. It's a, it's a pretty crazy time, but a lot of work has to start getting done that are new problems. Yeah. What is your advice as someone who's been through the multiple waves to the young kids who have to figure out what half fatigue, what problems are out there, what things can people get their arms around to work on, to specialize in? >>What's your, what's your thoughts and expertise on that? Well, John, thanks for the question. What I really like about that question is is we're talking about what the future looks like and here's what I think the future looks like. It's all about taking risks. Tell a lot of these young kids out there today, they're worried about how the world looks right? Will America still be strong? Can we, can we get through this hard time we're going through in DC with the world challenges and what I can say is this country has never been stronger. We may have our own troubles internally, but we are risk takers and we always win. No matter how hard it gets them out of how bad it gets, right? Risk taking a study that's building the American blood. It's our founders came here taking a risk, leaving Eagle to come here and we've succeeded the last 200 years. >>There is no question in my mind that trend will continue. So the young people out there, I don't know what the future has to hold. I don't know if the new tape I was going to be, but you're going to invent it. And if you don't take the risks, we're not succeed as a nation. And that's what I think is key. You know, most people worry that if they take too many risks, they might not succeed. Right? But the reality is most people you see around at this convention, they all took risks to be here. And even when they had trouble, they got up, they dust themselves off and they won. And I believe that everybody in this country, that's what's amazing about the station is we have this opportunity to, to try, if we fail to get up again and succeed. So fail fast, fail often, and crush it. >>You know, some of the best innovations have come from times where you had the cold war, you had, um, you had times where, you know, the hippie revolution spawn the computer. So you, so you have the culture of America, which is not about regulation and stunting growth. You had risk-taking, you had entrepreneurship, but yet enough freedom for business to operate, to solve new challenges, accurate. And to me the biggest imperative in my mind is this next generation has to solve a lot of those new questions. What side of the street is the self driving cars go on? I see bike lanes in San Francisco, more congestion, more more cry. All this stuff's going on. AI could be a great enabler for that. Cyber security, a direct threat to our country and global geopolitical landscape. These are big problems. State and local governments, they're not really tech savvy. They don't really have a lot ID. >>So what do they do? How do they serve their, their constituents? You know, look John, these are really important and hard questions, but we know what has made technology so successful in America? What's made it large, successful is the governor state out of the way, right? Industry and innovators have had a chance to work together and do stuff and change the world, right? You look at California, you know, one of the reasons California is so successful and Silicon Valley is so dynamic. You can move between jobs and we don't enforce non-compete agreements, right? Because you can switch jobs and you can go to that next higher value target, right? That shows the value of, you know, innovation, creating innovation. Now there's a real tendency to say, when we're faced with challenges, well, the government has to step in and solve that problem, right? The Silicon Valley and what California's done, what technology's done is a story about the government stayed out and let innovators innovate, and that's a real opportunity for this nation. >>We've got to keep on down that path, even when it seemed like the easier answer is, come on in DC, come on in Sacramento, fix this problem for us. We have demonstrated as a country that Americans and individual are good at solve these problems. We should allow them to do that and innovate. Yeah. One of my passions is to kind of use technology and media to end communities to get to the truth faster. A lot of, um, access to smart minds out there, but young minds, young minds, uh, old minds, young minds though. It's all there. You gotta get the data out and that's going to be a big thing. That's the, one of the things that's changing is the dark arts of smear campaigns. The story of Bloomberg today, Oracle reveals funding for dark money, group biting, big tech internet accountability projects. Um, and so the classic astroturfing get the Jedi contract, Google WASU with Java. >>So articles in the middle of all this, but using them as an illustrative point. The lawyers seem to be running the kingdom right now. I know you're an attorney, so I'm recovering, recovering. I don't want to be offensive, but entrepreneurship cannot be stifled by regulation. Sarbanes Oxley slowed down a lot of the IPO shifts to the latest stage capital. So regulation, nest and every good thing. But also there's some of these little tactics out in the shadows are going to be revealed. What's the new way to get this straightened out in your mind? We'll look, in my view, the best solution for problematic speech or pragmatic people is more speech, right? Let's shine a light on it, right? If there are people doing shady stuff, let's talk about it's an outfit. Let's have it out in the open. Let's fight it out. At the end of the day, what America's really about is smart ideas. >>Winning. It's a, let's get the ideas out there. You know, we spent a lot of time, right now we're under attack by the Russians when it comes to our elections, right? We spent a lot of time harping at one another, one party versus another party. The president versus that person. This person who tells committee for zap person who tells committee. It's crazy when the real threat is from the outside. We need to get past all that noise, right? And really get to the next thing which is we're fighting a foreign entity on this front. We need to face that enemy down and stop killing each other with this nonsense and turn the lights on. I'm a big believer of if something can be exposed, you can talk about it. Why is it happening exactly right. This consequences with that reputation, et cetera. You got it. >>Thanks for coming on the queue. Really appreciate your insight. Um, I want to just ask you one final question cause you look at, look at the industry right now. What is the most important story that people are talking about and what is the most important story that people should be talking about? Yeah. Well look, I think the one story that's out there a lot, right, is what's going on in our politics, what's going on in our elections. Um, you know, Chris Krebs at DHS has been out here this week talking a lot about the threat that our elections face and the importance about States working with one another and States working with the federal government to defend the nation when it comes to these elections in November. Right? We need to get ahead of that. Right? The reality is it's been four years since 2016 we need to do more. That's a key issue going forward. What are the Iranians North Koreans think about next? They haven't hit us recently. We know what's coming. We got to get ahead of that. I'm going to come again at a nation, depending on staff threat to your meal. Great to have you on the QSO is great insight. Thanks for coming on sharing your perspective. I'm John furrier here at RSA in San Francisco for the cube coverage. Thanks for watching.
SUMMARY :
RSA conference, 2020 San Francisco brought to you by Silicon The iron dome, the vision of collaboration and Well look, I mean, you know, time to defend one another. Not a lot of collaboration, but everyone's talking about the who the attackers are and collaborating like a And you know, you see kids doing it out there when they're playing Fortnite, take down the pieces they have folk to focus on and ultimately winning the battle. the government would protect you digitally. and this has to be a policy issue, but in the short term, businesses and individuals are sitting out there out here in the Silicon Valley with all these companies here at the RSA floor and bring up the things you're bringing Rhode Island, small States can be real hard, defends against the Russians, You take these threats, I'll take those threats and now we're working as a team, like you said earlier, You know, when I hear general Keith Alexander talking about his vision with iron net and what you guys are doing, We're going to keep defending ourselves and if you can give us something back, Our allies in the middle East, they're all the four lenses threat. Now look, the reality is the easy And the question is how do you bring some of these things together, right? So a lot of really cool stuff going on in the financing world. 91% of the revenue comes from the channel. on the impact of the big waves that are coming? You've got a good grasp of the industry, but also, uh, you have really strong on the societal impact policy Risk taking a study that's building the American blood. But the reality is most people you see around at this convention, they all took risks to be here. You know, some of the best innovations have come from times where you had the cold war, you had, That shows the value of, you know, innovation, creating innovation. You gotta get the data out and that's going to be a big thing. Sarbanes Oxley slowed down a lot of the IPO shifts to the latest stage capital. It's a, let's get the ideas out there. Great to have you on the QSO is
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Derek Manky, FortiGuard Labs | RSAC USA 2020
>> Narrator: Live from San Francisco. It's theCUBE, covering RSA Conference 2020, San Francisco. Brought to you by, SiliconANGLE Media. >> Welcome back everyone. CUBE coverage here in Moscone in San Francisco for RSA, 2020. I'm John Furrier host of theCUBE. We've got a great guest here talking about cybersecurity and the impact with AI and the role of data. It's always great to have Derek Manky on Chief Security Insights Global Threat Alliances with FortiGuard Lab, part of Fortinet, FortiGuard Labs is great. Great organization. Thanks for coming on. >> It's a pleasure always to be here-- >> So you guys do a great threat report that we always cover. So it covers all the bases and it really kind of illustrates state of the art of viruses, the protection, threats, et cetera. But you're part of FortiGuard Labs. >> Yeah, that's right. >> Part of Fortinet, which is a security company, public. What is FortiGuard Labs? What do you guys do, what's your mission? >> So FortiGuard Labs has existed since day one. You can think of us as the intelligence that's baked into the product, It's one thing to have a world-class product, but you need a world-class intelligence team backing that up. We're the ones fighting those fires against cybercrime on the backend, 24/7, 365 on a per second basis. We're processing threat intelligence. We've got over 10 million attacks or processing just per minute, over a hundred billion events, in any given day that we have to sift through. We have to find out what's relevant. We have to find gaps that we might be missing detection and protection. We got to push that out to a customer base of 450,000 customers through FortiGuard services and 5 million firewalls, 5 million plus firewalls we have now. So it's vitally important. You need intelligence to be able to detect and then protect and also to respond. Know the enemy, build a security solution around that and then also be able to act quickly about it if you are under active attack. So we're doing everything from creating security controls and protections. So up to, real time updates for customers, but we're also doing playbooks. So finding out who these attackers are, why are they coming up to you. For a CSO, why does that matter? So this is all part of FortiGuard Labs. >> How many people roughly involved ? Take us a little inside the curtain here. What's going on? Personnel size, scope. >> So we're over 235. So for a network security vendor, this was the largest global SOC, that exists. Again, this is behind the curtain like you said. These are the people that are, fighting those fires every day. But it's a large team and we have experts to cover the entire attack surface. So we're looking at not just a viruses, but we're looking at as zero-day weapons, exploits and attacks, everything from cyber crime to, cyber warfare, operational technology, all these sorts of things. And of course, to do that, we need to really heavily rely on good people, but also automation and artificial intelligence and machine learning. >> You guys are walking on a tight rope there. I can only imagine how complex and stressful it is, just imagining the velocity alone. But one of the trends that's coming up here, this year at RSA and is kind of been talking about in the industry is the who? Who is the attacker because, the shifts could shift and change. You got nation states are sitting out there, they're not going to have their hands dirty on this stuff. You've got a lot of dark web activity. You've got a lot of actors out there that go by different patterns. But you guys have an aperture and visibility into a lot of this stuff. >> Absolutely. >> So, you can almost say, that's that guy. That's the actor. That's a really big part. Talk about why that's important. >> This is critically important because in the past, let's say the first generation of, threat intelligence was very flat. It was to watch. So it was just talking about here's a bad IP, here's a bad URL, here's a bad file block hit. But nowadays, obviously the attackers are very clever. These are large organizations that are run a lot of people involved. There's real world damages happening and we're talking about, you look at OT attacks that are happening now. There's, in some cases, 30, $40 million from targeted ransom attacks that are happening. These people, A, have to be brought to justice. So we need to understand the who, but we also need to be able to predict what their next move is. This is very similar to, this is what you see online or CSI. The police trynna investigate and connect the dots like, plotting the strings and the yarn on the map. This is the same thing we're doing, but on a way more advanced level. And it's very important to be able to understand who these groups are, what tools they use, what are the weapons, cyber weapons, if you will, and what's their next move potentially going to be. So there's a lot of different reasons that's important. >> Derek, I was riffing with another guest earlier today about this notion of, government protection. You've got a military troops drop on our shores and my neighborhood, the Russians drop in my neighborhood. Guess what, the police will probably come in, and, or the army should take care of it. But if I got to run a business, I got to build my own militia. There's no support out there. The government's not going to support me. I'm hacked. Damage is done. You guys are in a way providing that critical lifeline that guard or shield, if you will, for customers. And they're going to want more of it. So I've got to ask you the hard question, which is, how are you guys going to constantly be on the front edge of all this? Because at the end of the day, you're in the protection business. Threats are coming at the speed of milliseconds and nanoseconds, in memory. You need memory, you need database. You've got to have real time. It's a tsunami of attack. You guys are the front lines of this. You're the heat shield. >> Yes, absolutely. >> How do you take it to the next level? >> Yeah, so collaboration, integration, having a broad integrated platform, that's our bread and butter. This is what we do. End-to-end security. The attack surface is growing. So we have to be able to, A, be able to cover all aspects of that attack surface and again, have intelligence. So we're doing sharing through partners. We have our core intelligence network. Like I said, we're relying heavily on machine learning models. We're able to find that needle in the haystack. Like, as I said earlier, we're getting over a hundred billion potential threat events a day. We have to dissect that. We have to break it down. We have to say, is this affecting endpoint? Is this effect affecting operational technology? What vertical, how do we process it? How do we verify that this is a real threat? And then most importantly, get that out in time and speed to our customers. So I started with automation years ago, but now really the way that we're doing this is through broad platform coverage. But also machine learning models for and-- >> I want to dig into machine learning because, I love that needle in the haystack analogy, because, if you take that to the next step, you got to stack a needles now. So you find the needle in the haystack. Now you got a bunch of needles, where do you find that? You need AI, you got to have some help. But you still got the human component. So talk about how you guys are advising customers on how you're using machine learning and get that AI up and running for customers and for yourselves. >> So we're technology people. I always look at this as the stack. The stack model, the bottom of the stack, you have automation. You have layer one, layer two. That's like the basic things for, feeds, threat feeds, how we can push out, automate, integrate that. Then you have the human. So the layer seven. This is where our human experts are coming in to actually advise our customers. We're creating a threat signals with FortiGuard Labs as an example. These are bulletins that's a quick two to three page read that a CSO can pick up and say, here's what FortiGuard Labs has discovered this week. Is this relevant to my network? Do I have these protections in place. There's also that automated, and so, I refer to this as a centaur model. It's half human half machine and, the machines are driving a lot of that, the day to day mundane tasks, if you will, but also finding, collecting the needles of needles. But then ultimately we have our humans that are processing that, analyzing it, creating the higher level strategic advice. We recently, we've launched a FortiAI, product as well. This has a concept of a virtual-- >> Hold on, back up a second. What's it called? >> FortiAI. >> So it's AI components. Is it a hardware box or-- >> This is a on-premise appliance built off of five plus years of learning that we've done in the cloud to be able to identify threats and malware, understand what that malware does to a detailed level. And, where we've seen this before, where is it potentially going? How do we protect against it? Something that typically you would need, four to five headcount in your security operations center to do, we're using this as an assist to us. So that's why it's a virtual analyst. It's really a bot, if you will, something that can actually-- >> So it's an enabling opportunity for the customers. So is this virtual assistant built into the box. What does that do, virtual analyst. >> So the virtual analyst is able to, sit on premises. So it's localized learning, collect threats to understand the nature of those threats, to be able to look at the needles of the needles, if you will, make sense of that and then automatically generate reports based off of that. So it's really an assist tool that a network admin or a security analyst was able to pick up and virtually save hours and hours of time of resources. >> So, if you look at the history of like our technology industry from a personalization standpoint, AI and data, whether you're a media business, personalization is ultimately the result of good data AI. So personalization for an analyst, would be how not to screw up their job. (laughs) One level. The other one is to be proactive on being more offensive. And then third collaboration with others. So, you starting to see that kind of picture form. What's your reaction to that? >> I think it's great. There's stepping stones that we have to go through. The collaboration is not always easy. I'm very familiar with this. I mean I was, with the Cyber Threat Alliance since day one, I head up and work with our Global Threat Alliances. There's always good intentions, there's problems that can be created and obviously you have things like PII now and data privacy and all these little hurdles they have to come over. But when it works right together, this is the way to do it. It's the same thing with, you talked about the data naturally when he started building up IT stacks, you have silos of data, but ultimately those silos need to be connected from different departments. They need to integrate a collaborate. It's the same thing that we're seeing from the security front now as well. >> You guys have proven the model of FortiGuard that the more you can see, the more visibility you can see and more access to the data in real time or anytime scale, the better the opportunity. So I got to take that to the next level. What you guys are doing, congratulations. But now the customer. How do I team up with, if I'm a customer with other customers because the bad guys are teaming up. So the teaming up is now a real dynamic that companies are deploying. How are you guys looking at that? How is FortiGuard helping that? Is it through services? Is it through the products like virtual assistant? Virtual FortiAI? >> So you can think of this. I always make it an analogy to the human immune system. Artificial neural networks are built off of neural nets. If I have a problem and an infection, say on one hand, the rest of the body should be aware of that. That's collaboration from node to node. Blood cells to blood cells, if you will. It's the same thing with employees. If a network admin sees a potential problem, they should be able to go and talk to the security admin, who can go in, log into an appliance and create a proper response to that. This is what we're doing in the security fabric to empower the customer. So the customer doesn't have to always do this and have the humans actively doing those cycles. I mean, this is the integration. The orchestration is the big piece of what we're doing. So security orchestration between devices, that's taking that gap out from the human to human, walking over with a piece of paper to another or whatever it is. That's one of the key points that we're doing within the actual security fabric. >> So that's why silos is problematic. Because you can't get that impact. >> And it also creates a lag time. We have a need for speed nowadays. Threats are moving incredibly fast. I think we've talked about this on previous episodes with swarm technology, offensive automation, the weaponization of artificial intelligence. So it becomes critically important to have that quick response and silos, really create barriers of course, and make it slower to respond. >> Okay Derek, so I got to ask you, it's kind of like, I don't want to say it sounds like sports, but it's, what's the state of the art in the attack vectors coming in. What are you guys seeing as some of the best of breed tax that people should really be paying attention to? They may, may not have fortified down. What are SOCs looking at and what are security pros focused on right now in terms of the state of the art. >> So the things that keep people up at night. We follow this in our Threat Landscape Report. Obviously we just released our key four one with FortiGuard Labs. We're still seeing the same culprits. This is the same story we talked about a lot of times. Things like, it used to be a EternalBlue and now BlueKeep, these vulnerabilities that are nothing new but still pose big problems. We're still seeing that exposed on a lot of networks. Targeted ransom attacks, as I was saying earlier. We've seen the shift or evolution from ransomware from day to day, like, pay us three or $400, we'll give you access to your data back to going after targeted accounts, high revenue business streams. So, low volume, high risk. That's the trend that we're starting to see as well. And this is what I talk about for trying to find that needle in the haystack. This is again, why it's important to have eyes on that. >> Well you guys are really advanced and you guys doing great work, so congratulations. I got to ask you to kind of like, the spectrum of IT. You've got a lot of people in the high end, financial services, healthcare, they're regulated, they got all kinds of challenges. But as IT and the enterprise starts to get woke to the fact that everyone's vulnerable. I've heard people say, well, I'm good. I got a small little to manage, I'm only a hundred million dollar business. All I do is manufacturing. I don't really have any IP. So what are they going to steal? So that's kind of a naive approach. The answer is, what? Your operations and ransomware, there's a zillion ways to get taken down. How do you respond to that. >> Yeah, absolutely. Going after the crown jewels, what hurts? So it might not be a patent or intellectual property. Again, the things that matter to these businesses, how they operate day to day. The obvious examples, what we just talked about with revenue streams and then there's other indirect problems too. Obviously, if that infrastructure of a legitimate organization is taken over and it's used as a botnet and an orchestrated denial-of-service attack to take down other organizations, that's going to have huge implications. >> And they won't even know it. >> Right, in terms of brand damage, has legal implications as well that happened. This is going even down to the basics with consumers, thinking that, they're not under attack, but at the end of the day, what matters to them is their identity. Identity theft. But this is on another level when it comes to things to-- >> There's all kinds of things to deal with. There's, so much more advanced on the attacker side. All right, so I got to ask you a final question. I'm a business. You're a pro. You guys are doing great work. What do I do, what's my strategy? How would you advise me? How do I get my act together? I'm working the mall every day. I'm trying my best. I'm peddling as fast as I can. I'm overloaded. What do I do? How do I go the next step? >> So look for security solutions that are the assist model like I said. There's never ever going to be a universal silver bullet to security. We all know this. But there are a lot of things that can help up to that 90%, 95% secure. So depending on the nature of the threats, having a first detection first, that's always the most important. See what's on your network. This is things where SIM technology, sandboxing technology has really come into play. Once you have those detections, how can you actually take action? So look for a integration. Really have a look at your security solutions to see if you have the integration piece. Orchestration and integration is next after detection. Finally from there having a proper channel, are there services you looked at for managed incident response as an example. Education and cyber hygiene are always key. These are free things that I push on everybody. I mean we release weekly threat intelligence briefs. We're doing our quarterly Threat Landscape Reports. We have something called threat signals. So it's FortiGuard response to breaking industry events. I think that's key-- >> Hygiene seems to come up over and over as the, that's the foundational bedrock of security. >> And then, as I said, ultimately, where we're heading with this is the AI solution model. And so that's something, again that I think-- >> One final question since it's just popped into my head. I wanted, and that last one. But I wanted to bring it up since you kind of were, we're getting at it. I know you guys are very sensitive to this one topic cause you live it every day. But the notion of time and time elapsed is a huge concern because you got to know, it's not if it's when. So the factor of time is a huge variable in all kinds of impact. Positive and negative. How do you talk about time and the notion of time elapsing. >> That's great question. So there's many ways to stage that. I'll try to simplify it. So number one, if we're talking about breaches, time is money. So the dwell time. The longer that a threat sits on a network and it's not cleaned up, the more damage is going to be done. And we think of the ransom attacks, denial-of-service, revenue streams being down. So that's the incident response problem. So time is very important to detect and respond. So that's one aspect of that. The other aspect of time is with machine learning as well. This is something that people don't always think about. They think that, artificial intelligence solutions can be popped up overnight and within a couple of weeks they're going to be accurate. It's not the case. Machines learn like humans too. It takes time to do that. It takes processing power. Anybody can get that nowadays, data, most people can get that. But time is critical to that. It's a fascinating conversation. There's many different avenues of time that we can talk about. Time to detect is also really important as well, again. >> Let's do it, let's do a whole segment on that, in our studio, I'll follow up on that. I think it's a huge topic, I hear about all the time. And since it's a little bit elusive, but it kind of focuses your energy on, wait, what's going on here? I'm not reacting. (laughs) Time's a huge issue. >> I refer to it as a latency. I mean, latency is a key issue in cybersecurity, just like it is in the stock exchange. >> I mean, one of the things I've been talking about with folks here, just kind of in fun conversation is, don't be playing defense all the time. If you have a good time latency, you going to actually be a little bit offensive. Why not take a little bit more offense. Why play defense the whole time. So again, you're starting to see this kind of mentality not being, just an IT, we've got to cover, okay, respond, no, hold on the ballgame. >> That comes back to the sports analogy again. >> Got to have a good offense. They must cross offense. Derek, thanks so much. Quick plug for you, FortiGuard, share with the folks what you guys are up to, what's new, what's the plug. >> So FortiGuard Labs, so we're continuing to expand. Obviously we're focused on, as I said, adding all of the customer protection first and foremost. But beyond that, we're doing great things in industry. So we're working actively with law enforcement, with Interpol, Cyber Threat Alliance, with The World Economic Forum and the Center for Cyber Security. There's a lot more of these collaboration, key stakeholders. You talked about the human to human before. We're really setting the pioneering of setting that world stage. I think that is, so, it's really exciting to me. It's a lot of good industry initiatives. I think it's impactful. We're going to see an impact. The whole goal is we're trying to slow the offense down, the offense being the cyber criminals. So there's more coming on that end. You're going to see a lot great, follow our blogs at fortinet.com and all-- >> Great stuff. >> great reports. >> I'm a huge believer in that the government can't protect us digitally. There's going to be protection, heat shields out there. You guys are doing a good job. It's only going to be more important than ever before. So, congratulations. >> Thank you. >> Thanks for coming I really appreciate. >> Never a dull day as we say. >> All right, it's theCUBE's coverage here in San Francisco for RSA 2020. I'm John Furrier, your host. Thanks for watching. (upbeat music)
SUMMARY :
Brought to you by, SiliconANGLE Media. and the impact with AI and the role of data. and it really kind of illustrates state of the art of viruses, What do you guys do, what's your mission? and then protect and also to respond. How many people roughly involved ? And of course, to do that, But one of the trends that's coming up here, That's the actor. This is the same thing we're doing, So I've got to ask you the hard question, but now really the way that we're doing this I love that needle in the haystack analogy, the day to day mundane tasks, if you will, Hold on, back up a second. So it's AI components. to be able to identify threats and malware, So it's an enabling opportunity for the customers. So the virtual analyst is able to, sit on premises. The other one is to be proactive on being more offensive. It's the same thing that we're seeing that the more you can see, So the customer doesn't have to always do this So that's why silos is problematic. and make it slower to respond. focused on right now in terms of the state of the art. So the things that keep people up at night. I got to ask you to kind of like, the spectrum of IT. Again, the things that matter to these businesses, This is going even down to the basics with consumers, All right, so I got to ask you a final question. So depending on the nature of the threats, that's the foundational bedrock of security. is the AI solution model. So the factor of time is a huge variable So that's the incident response problem. but it kind of focuses your energy on, I refer to it as a latency. I mean, one of the things I've been talking about share with the folks what you guys are up to, You talked about the human to human before. that the government can't protect us digitally. I really appreciate. I'm John Furrier, your host.
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Masha Sedova, Elevate Security | RSAC USA 2020
>> Narrator: Live from San Francisco It's theCUBE. Covering RSA Conference 2020, San Francisco. Brought to you by Silicon Angled Media >> Hi everyone, welcome to theCUBE's coverage here at RSA Conference 2020. I'm John Furrier, host of theCUBE We're on the floor getting all the data, sharing it with you here, Cube coverage. Got the best new generation shift happening as cloud computing goes to the whole other level. Multi-cloud, hybrid cloud changing the game. You're seeing the companies transition from an on-premises to cloud architecture. This is forcing all the companies to change. So a new generation of security is here and we've got a great guest, so a hot start-up. Masha Sedova, co-founder of Elevate Security. Welcome to theCUBE, thanks for joining us. >> Thank you so much for having me, John. >> So the next generation in what will be a multi-generational security paradigm, is kind of happening right now with the beginning of, we're seeing the transition, Palo Alto Networks announced earnings yesterday down 13% after hours because of the shift to the cloud. Now I think they're going to do well, they're well positioned, but it highlights this next generation security. You guys are a hot start-up, Elevate Security. What is the sea change? What is going on with security? What is this next generation paradigm about? >> Yeah, so it's interesting that you talk about this as next generation. In some ways, I see this as a two-prong move between, yes, we're moving more into the cloud but we're also going back to our roots. We're figuring out how to do asset management right, we're figuring out how to do patching right, and for the first time, we're figuring how to do the human element right. And that's what where we come in. >> You know, the disruption of these new shifts, it also kind of hits like this, the old expression, 'same wine, new bottle', all this, but it's a data problem. Security has always been a data problem, and we've seen some learnings around data. Visualization, wrangling, there's a lot of best practices around there. You guys are trying to change the security paradigm by incorporating a data-centric view with changing the behavior of the humans and the machines and kind of making it easier to manage. Could you share what you guys are doing? What's the vision for Elevate? >> Yeah, so we believe and we've seen, from our experience being practitioners, you can't change what you can't measure. If you don't have visibility, you don't know where you're going. And that's probably been one of the biggest pain-point in the security awareness space traditionally. We just roll out training and hope it works. And it doesn't, which is why human error is a huge source of our breaches. But we keep rolling out the same one-size fits all approach without wanting to measure or, being able to. So, we've decided to turn the problem on its head and we use existing data sets that most organizations who have a baseline level of maturity already have in place. Your end point protections, your DLP solutions, your proxies, your email security gateways and using that to understand what your employees are doing on the network to see if user generated incidents are getting better over time or getting worse. And using that as the instrumentation and the level of visibility into understanding how you should be orchestrating your program in this space. >> You know, that's a great point. I was just having a conversation last night at one of the cocktail parties here around RSA and we were debating on, we talk about the kind of breaches, you mentioned breaches, well there's the pure breach where I'm going to attack and penetrate the well fortified network. But then there's just human error, an S3 bucket laying open or some configuration problem. I guess it's not really a breach, it's kind of an open door so the kind of notion of a breach is multifold. How do you see that, because again, human error, insider threats or human error, these are enabling the hackers. >> Yeah >> This is not new. >> Yeah. >> How bad is the problem? >> It depends on what report you read. The biggest number I've seen so far is something like 95% of breaches have human error. But I honestly, I couldn't tell you what the 5% that don't include it because if you go far enough back, it's because a patch wasn't applied and there is a human being involved there because there is vulnerability in code, that's probably a secure coding practice when you're a development organization. Maybe it's a process that wasn't followed or even created in the first place. There's a human being at the core of every one of these breaches and, it needs to be addressed as holistically as our technologies and our processes right now in the space. >> The evolution of human intelligence augmented by machines will certainly help. >> That's it, yeah. >> I mean, I've got to ask you, obviously you're well-funded. Costanova Ventures well known in the enterprise space, Greg Sands and the team there, really strong, but you guys entered the market, why? I mean you guys, you and your founder both at Salesforce.com. Salesforce gurus doing a lot of work there. Obviously you've seen the large scale, first wave of the cloud. >> Yeah >> Why do the start-up? What was the problem statement you guys were going after? >> So, my co-founder and I both came from the world of being practitioners and we saw how limited the space was and actually changing human behavior, I was given some animated PowerPoints, said use this to keep the Russians out of your network, which is a practical joke unless your job is on the line, so I took a huge step back and I said, there are other fields that have figured this out. Behavioral science being one of them, they use positive reinforcement, gamification, marketing and advertisements have figured out how to engage the human element, just look around the RSA floor, and there's so many learnings of how we make decisions as human beings that can be applied into changing people's behaviors in security. So that's what we did. >> And what was the behavior you're trying to change? >> Yeah, so the top one's always that our attackers are getting into organizations, so, reducing phishing click-throughs an obvious one, increasing reporting rates, reducing malware infection rates, improving sensitive data handling, all of which have ties back to, as I was mentioning earlier, security data sources. So, we get to map those and use that data to then drive behavior change that's rooted in concepts like social proof, how are you doing compared to your peers? We make dinner decisions on that and Amazon buying decisions on that, why not influence security like that? >> So building some intelligence into the system, is there a particular market you're targeting? I mean, here people like to talk in segments, is there a certain market that you guys are targeting? >> Yeah, so the amazing thing about this is, and probably no surprise, the human element is a ubiquitous problem. We are in over a dozen different industries and we've seen this approach work across all of those industries because human beings make the same mistakes, no matter what kind of company they're in. We really work well with larger enterprises. We work well with larger enterprises because they tend to have the data sets that really provides insights into human behavior. >> And what's the business model you guys envision happening with your service product? >> We sell to enterprises and security, the CISO and the package as a whole, gives them the tools to have the voice internally in their organization We sell to Fortune 1000 companies, >> So it's a SAAS service? >> Yeah, SAAS service, yeah. >> And so what's the technology secret sauce? (laughing) >> Um, that's a great question but really, our expertise is understanding what information people need at what time and under what circumstances, that best changes their behavior. So we really are content diagnostic, we are much more about the engine that understands what content needs to be presented to whom and why. So that everyone is getting only the information they need, they understand why they need it and they don't need anything extra-superfluous to their... >> Okay, so I was saying on theCUBE, my last event was at, CIO's can have good days and bad days. They have good days, CISOs really have good days, many will say bad days, >> Masha: Yeah, it's a hard job. >> So how do I know I need the Elevate Solution? What problem do I have, what's in it for me? What do I get out of it? When do I know when to engage with you guys? >> I take a look at how many user generated incidents your (mumbles) responding to, and I would imagine it is a large majority of them. We've seen, while we were working at Salesforce and across our current customers, close to a 40% reduction rate in user generated incidents, which clearly correlates to time spent on much more useful things than cleaning up mistakes. It's also one of the biggest ROI's you can get for the cheapest investment. By investing a little bit in your organization now, the impact you have in your culture and investing in the future decision, the future mistakes that never get made, are actually untold, the benefit of that is untold. >> So you're really kind of coming in as a holistic, kind of a security data plane if you will, aggregating the data points, making a visualization in human component. >> You've got it. >> Now, what's the human touchpoint? Is it a dashboard? Is it notifications? Personalization? How is the benefit rendered for the customer? >> So we give security teams and CSOs a dashboard that maps their organization's strengths and weaknesses. But for every employee, we give personalized, tailored feedback. Right now it shows up in an email that they get on an ongoing basis. We also have one that we tailor for executives, so the executive gets one for their department and we create an executive leaderboard that compares their performance to fellow peers and I'll tell you, execs love to win, so we've seen immense change from that move alone. >> Well, impressive pedigree on your entrepreneurial background, I see Salesforce has really kind of, I consider real first generation cloud before cloud actually happened, and there's a lot of learn, it was always an Apple case, now it's AWS, but it's it's own cloud as we all know, what are the learnings that you saw from Salesforce that you said hey, I'm going to connect those dots to the new opportunity? What's the real key there? >> So, I had two major aha's that I've been sharing with my work since. One, it's not what people know, but it's what they do that matters, and if you can sit with a moment and think about that, you realize it's not more training, because people might actually know the information, but they just choose not to do it. How many people smoke, and they still know it kills them? They think that it doesn't apply to them, same thing with security. I know what I need to do, I'm just not incentivized to do it, so there's a huge motivation factor that needs to be addressed. That's one thing that I don't see a lot of other players on the market doing and one thing we just really wanted to do as well. >> So it sounds like you guys are providing a vision around using sheet learning and AI and data synthesis wrangling and all that good stuff, to be an assistant, a personal assistant to security folks, because it sounds like you're trying to make their life easier, make better decisions. Sounds like you guys are trying to distract away all these signals, >> You're right. >> See what to pay attention to. >> And make it more relevant, yeah. Well think about what Fitbit did for your own personal fitness. It curates a personal relationship based on a whole bunch of data. How you're doing, goals you've set, and all of a sudden, a couple of miles walk leads to an immense lifestyle change. Same thing with security, yeah. >> That's interesting, I love the Fitbit analogy because if you think about the digital ecosystem of an enterprise, it used to be siloed, IT driven, now with digital, everything's connected so technically, you're instrumenting a lot of things for everything. >> Yeah. >> So the question's not so much instrumentation, it's what's happening when and contextually why. >> That's it, why, that's exactly it. Yeah, you totally got it. >> Okay. I got it. >> Yeah, I can see the light bulb. >> Okay, aha, ding ding. All right, so back to the customer pain point. You mentioned some data points around KPI's that they might or things that they might want to call you so it's incidents, what kind of incidents? When do I know I need to get you involved? Will you repeat those again? >> There's two places where it's a great time to involve. Now, because of the human element is, or think about this as an investment. If you do non-investor security culture, one way or another, you have security culture. It's either hurting you or it's helping you and by hurting you, people are choosing to forego investing security processes or secure cultures and you are just increasing your security debt. By stepping in to address that now, you are actually paying it forward. The second best time, is after you realize you should have done that. Post-breaches or post incidents, is a really great time to come in and look at your culture because people are willing to suspend their beliefs of what good behavior looks like, what's acceptable and when you look at an organization and their culture, it is most valuable after a time of crisis, public or otherwise, and that is a really great time to consider it. >> I think that human error is a huge thing, whether it's as trivial as leaving an S3 bucket open or whatever, I think it's going to get more acute with service meshes and cloud-native microservices. It's going to get much more dynamic and sometimes services can be stood up and torn down without any human knowledge, so there's a lot of blind spots potentially. This brings up the question of how does the collaboration piece, because one of the things about the security industry is, it's a community. Sharing data's important, having access to data, how do you think about that as the founder of a start-up that has a 20 mile steer to the future around data access, data diversity, blind spots, how do you look at that and how do you advise your clients to think about that? >> I've always been really pro data sharing. I think it's one of the things that has held us back as an industry, we're very siloed in this space, especially as it relates to human behavior. I have no idea, as a regular CISO of a company, if I am doing enough to protect my employees, is my phishing click (mumbles), are my malware download rates above normal, below or should I invest more, am I doing enough? How do I do compared to my peers and without sharing industry stats, we have no idea if we're investing enough or quite honestly, not enough in this space. And the second thing is, what are approaches that are most effective? So let's say I have a malware infection problem, which approach, is it this training? Is it a communication? Is it positive reinforcement, is it punishment? What is the most effective to leverage this type of output? What's the input output relation? And we're real excited to have shared data with Horizon Data Breach Report for the first time this year, to start giving back to the communities, specifically to help answer some of these questions. >> Well, I think you're onto something with this behavioral science intersection with human behavior and executive around security practices. I think it's going to be an awesome, thanks for sharing the insights, Miss Masha on theCUBE here. A quick plug for your company, (mumbles) you're funded, Series A funding, take us through the stats, you're hiring what kind of positions, give a plug to the company. >> So, Elevate Security, we're three years old. We have raised ten million to date. We're based in both Berkeley and Montreal and we're hiring sales reps on the west coast, a security product manager and any engineering talent really focused on building an awesome data warehouse infrastructure. So, please check out our website, www.elevatesecurity.com/careers for jobs. >> Two hot engineering markets, Berkeley I see poaching out of Cal, and also Montreal, >> Montreal, McGill and Monterey. >> You got that whole top belt of computer science up in Canada. >> Yeah. >> Well, congratulations. Thanks for coming on theCUBE, sharing your story. >> Thank you. >> Security kind of giving the next generation all kinds of new opportunities to make security better. Some CUBE coverage here in San Francisco, at the Moscone Center. I'm John Furrier, we'll be right back after this break. (upbeat music)
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Brought to you by Silicon Angled Media This is forcing all the companies to change. down 13% after hours because of the shift to the cloud. and for the first time, and the machines and kind of making it easier to manage. are doing on the network to see if user generated incidents and penetrate the well fortified network. It depends on what report you read. The evolution of human intelligence augmented by machines Greg Sands and the team there, really strong, So, my co-founder and I both came from the world Yeah, so the top one's always that our attackers Yeah, so the amazing thing about this is, So that everyone is getting only the information they need, Okay, so I was saying on theCUBE, the impact you have in your culture kind of a security data plane if you will, so the executive gets one for their department and think about that, you realize it's not more training, So it sounds like you guys are providing a vision and all of a sudden, a couple of miles walk That's interesting, I love the Fitbit analogy So the question's not so much instrumentation, Yeah, you totally got it. I got it. When do I know I need to get you involved? and that is a really great time to consider it. and how do you advise your clients to think about that? What is the most effective to leverage this type of output? I think it's going to be an awesome, We have raised ten million to date. and Monterey. You got that whole top belt sharing your story. Security kind of giving the next generation
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Around theCUBE, Unpacking AI | Juniper NXTWORK 2019
>>from Las Vegas. It's the Q covering. Next work. 2019 America's Do You buy Juniper Networks? Come back already. Jeffrey here with the Cube were in Las Vegas at Caesar's at the Juniper. Next work event. About 1000 people kind of going over a lot of new cool things. 400 gigs. Who knew that was coming out of new information for me? But that's not what we're here today. We're here for the fourth installment of around the Cube unpacking. I were happy to have all the winners of the three previous rounds here at the same place. We don't have to do it over the phone s so we're happy to have him. Let's jump into it. So winner of Round one was Bob Friday. He is the VP and CTO at Missed the Juniper Company. Bob, Great to see you. Good to be back. Absolutely. All the way from Seattle. Sharna Parky. She's a VP applied scientist at Tech CEO could see Sharna and, uh, from Google. We know a lot of a I happen to Google. Rajan's chef. He is the V p ay ay >>product management on Google. Welcome. Thank you, Christy. Here >>All right, so let's jump into it. So just warm everybody up and we'll start with you. Bob, What are some When you're talking to someone at a cocktail party Friday night talking to your mom And they say, What is a I What >>do you >>give him? A Zen examples of where a eyes of packing our lives today? >>Well, I think we all know the examples of the south driving car, you know? Aye, aye. Starting to help our health care industry being diagnosed cancer for me. Personally, I had kind of a weird experience last week at a retail technology event where basically had these new digital mirrors doing facial recognition. Right? And basically, you start to have little mirrors were gonna be a skeevy start guessing. Hey, you have a beard, you have some glasses, and they start calling >>me old. So this is kind >>of very personal. I have a something for >>you, Camille, but eh? I go walking >>down a mall with a bunch of mirrors, calling me old. >>That's a little Illinois. Did it bring you out like a cane or a walker? You know, you start getting some advertising's >>that were like Okay, you guys, this is a little bit over the top. >>Alright, Charlotte, what about you? What's your favorite example? Share with people? >>Yeah, E think one of my favorite examples of a I is, um, kind of accessible in on your phone where the photos you take on an iPhone. The photos you put in Google photos, they're automatically detecting the faces and their labeling them for you. They're like, Here's selfies. Here's your family. Here's your Children. And you know, that's the most successful one of the ones that I think people don't really think about a lot or things like getting loan applications right. We actually have a I deciding whether or not we get loans. And that one is is probably the most interesting one to be right now. >>Roger. So I think the father's example is probably my favorite as well. And what's interesting to me is that really a I is actually not about the Yeah, it's about the user experience that you can create as a result of a I. What's cool about Google photos is that and my entire family uses Google photos and they don't even know actually that the underlying in some of the most powerful a I in the world. But what they know is they confined every picture of our kids on the beach whenever they whenever they want to. Or, you know, we had a great example where we were with our kids. Every time they like something in the store, we take a picture of it, Um, and we can look up toy and actually find everything that they've taken picture. >>It's interesting because I think most people don't even know the power that they have. Because if you search for beach in your Google photos or you search for, uh, I was looking for an old bug picture from my high school there it came right up until you kind of explore. You know, it's pretty tricky, Raja, you know, I think a lot of conversation about A They always focus the general purpose general purpose, general purpose machines and robots and computers. But people don't really talk about the applied A that's happening all around. Why do you think that? >>So it's a good question. There's there's a lot more talk about kind of general purpose, but the reality of where this has an impact right now is, though, are those specific use cases. And so, for example, things like personalizing customer interaction or, ah, spotting trends that did that you wouldn't have spotted for turning unstructured data like documents into structure data. That's where a eyes actually having an impact right now. And I think it really boils down to getting to the right use cases where a I right? >>Sharon, I want ask you. You know, there's a lot of conversation. Always has A I replace people or is it an augmentation for people? And we had Gary Kasparov on a couple years ago, and he talked about, you know, it was the combination if he plus the computer made the best chess player, but that quickly went away. Now the computer is actually better than Garry Kasparov. Plus the computer. How should people think about a I as an augmentation tool versus a replacement tool? And is it just gonna be specific to the application? And how do you kind of think about those? >>Yeah, I would say >>that any application where you're making life and death decisions where you're making financial decisions that disadvantage people anything where you know you've got u A. V s and you're deciding whether or not to actually dropped the bomb like you need a human in the loop. If you're trying to change the words that you are using to get a different group of people to apply for jobs, you need a human in the loop because it turns out that for the example of beach, you type sheep into your phone and you might get just a field, a green field and a I doesn't know that, uh, you know, if it's always seen sheep in a field that when the sheep aren't there, that that isn't a sheep like it doesn't have that kind of recognition to it. So anything were we making decisions about parole or financial? Anything like that needs to have human in the loop because those types of decisions are changing fundamentally the way we live. >>Great. So shift gears. The team are Jeff Saunders. Okay, team, your mind may have been the liquid on my bell, so I'll be more active on the bell. Sorry about that. Everyone's even. We're starting a zero again, so I want to shift gears and talk about data sets. Um Bob, you're up on stage. Demo ing some some of your technology, the Miss Technology and really, you know, it's interesting combination of data sets A I and its current form needs a lot of data again. Kind of the classic Chihuahua on blue buried and photos. You got to run a lot of them through. How do you think about data sets? In terms of having the right data in a complete data set to drive an algorithm >>E. I think we all know data sets with one The tipping points for a I to become more real right along with cloud computing storage. But data is really one of the key points of making a I really write my example on stage was wine, right? Great wine starts a great grape street. Aye, aye. Starts a great data for us personally. L s t M is an example in our networking space where we have data for the last three months from our customers and rule using the last 30 days really trained these l s t m algorithms to really get that tsunami detection the point where we don't have false positives. >>How much of the training is done. Once you once you've gone through the data a couple times in a just versus when you first started, you're not really sure how it's gonna shake out in the algorithm. >>Yeah. So in our case right now, right, training happens every night. So every night, we're basically retraining those models, basically, to be able to predict if there's gonna be an anomaly or network, you know? And this is really an example. Where you looking all these other cat image thinks this is where these neural networks there really were one of the transformational things that really moved a I into the reality calling. And it's starting to impact all our different energy. Whether it's text imaging in the networking world is an example where even a I and deep learnings ruling starting to impact our networking customers. >>Sure, I want to go to you. What do you do if you don't have a big data set? You don't have a lot of pictures of chihuahuas and blackberries, and I want to apply some machine intelligence to the problem. >>I mean, so you need to have the right data set. You know, Big is a relative term on, and it depends on what you're using it for, right? So you can have a massive amount of data that represents solar flares, and then you're trying to detect some anomaly, right? If you train and I what normal is based upon a massive amount of data and you don't have enough examples of that anomaly you're trying to detect, then it's never going to say there's an anomaly there, so you actually need to over sample. You have to create a population of data that allows you to detect images you can't say, Um oh, >>I'm going to reflect in my data set the percentage of black women >>in Seattle, which is something below 6% and say it's fair. It's not right. You have to be able thio over sample things that you need, and in some ways you can get this through surveys. You can get it through, um, actually going to different sources. But you have to boot, strap it in some way, and then you have to refresh it, because if you leave that data set static like Bob mentioned like you, people are changing the way they do attacks and networks all the time, and so you may have been able to find the one yesterday. But today it's a completely different ball game >>project to you, which comes first, the chicken or the egg. You start with the data, and I say this is a ripe opportunity to apply some. Aye, aye. Or do you have some May I objectives that you want to achieve? And I got to go out and find the >>data. So I actually think what starts where it starts is the business problem you're trying to solve. And then from there, you need to have the right data. What's interesting about this is that you can actually have starting points. And so, for example, there's techniques around transfer, learning where you're able to take an an algorithm that's already been trained on a bunch of data and training a little bit further with with your data on DSO, we've seen that such that people that may have, for example, only 100 images of something, but they could use a model that's trained on millions of images and only use those 100 thio create something that's actually quite accurate. >>So that's a great segue. Wait, give me a ring on now. And it's a great Segway into talking about applying on one algorithm that was built around one data set and then applying it to a different data set. Is that appropriate? Is that correct? Is air you risking all kinds of interesting problems by taking that and applying it here, especially in light of when people are gonna go to outweigh the marketplace, is because I've got a date. A scientist. I couldn't go get one in the marketplace and apply to my data. How should people be careful not to make >>a bad decision based on that? So I think it really depends. And it depends on the type of machine learning that you're doing and what type of data you're talking about. So, for example, with images, they're they're they're well known techniques to be able to do this, but with other things, there aren't really and so it really depends. But then the other inter, the other really important thing is that no matter what at the end, you need to test and generate based on your based on your data sets and on based on sample data to see if it's accurate or not, and then that's gonna guide everything. Ultimately, >>Sharon has got to go to you. You brought up something in the preliminary rounds and about open A I and kind of this. We can't have this black box where stuff goes into the algorithm. That stuff comes out and we're not sure what the result was. Sounds really important. Is that Is that even plausible? Is it feasible? This is crazy statistics, Crazy math. You talked about the business objective that someone's trying to achieve. I go to the data scientist. Here's my data. You're telling this is the output. How kind of where's the line between the Lehman and the business person and the hard core data science to bring together the knowledge of Here's what's making the algorithm say this. >>Yeah, there's a lot of names for this, whether it's explainable. Aye, aye. Or interpret a belay. I are opening the black box. Things like that. Um, the algorithms that you use determine whether or not they're inspect herbal. Um, and the deeper your neural network gets, the harder it is to inspect, actually. Right. So, to your point, every time you take an aye aye and you use it in a different scenario than what it was built for. For example, um, there is a police precinct in New York that had a facial recognition software, and, uh, victim said, Oh, it looked like this actor. This person looked like Bill Cosby or something like that, and you were never supposed to take an image of an actor and put it in there to find people that look like them. But that's how people were using it. So the Russians point yes, like it. You can transfer learning to other a eyes, but it's actually the humans that are using it in ways that are unintended that we have to be more careful about, right? Um, even if you're a, I is explainable, and somebody tries to use it in a way that it was never intended to be used. The risk is much higher >>now. I think maybe I had, You know, if you look at Marvis kind of what we're building for the networking community Ah, good examples. When Marvis tries to do estimate your throughput right, your Internet throughput. That's what we usually call decision tree algorithm. And that's a very interpretive algorithm. and we predict low throughput. We know how we got to that answer, right? We know what features God, is there? No. But when we're doing something like a NAMI detection, that's a neural network. That black box it tells us yes, there's a problem. There's some anomaly, but that doesn't know what caused the anomaly. But that's a case where we actually used neural networks, actually find the anomie, and then we're using something else to find the root cause, eh? So it really depends on the use case and where the night you're going to use an interpreter of model or a neural network which is more of a black box model. T tell her you've got a cat or you've got a problem >>somewhere. So, Bob, that's really interested. So can you not unpacking? Neural network is just the nature of the way that the communication and the data flows and the inferences are made that you can't go in and unpack it, that you have to have the >>separate kind of process too. Get to the root cause. >>Yeah, assigned is always hard to say. Never. But inherently s neural networks are very complicated. Saito set of weights, right? It's basically usually a supervised training model, and we're feeding a bunch of data and trying to train it to detect a certain features, sir, an output. But that is where they're powerful, right? And that's why they basically doing such good, Because they are mimicking the brain, right? That neural network is a very complex thing. Can't like your brain, right? We really don't understand how your brain works right now when you have a problem, it's really trialling there. We try to figure out >>right going right. So I want to stay with you, bought for a minute. So what about when you change what you're optimizing? Four? So you just said you're optimizing for throughput of the network. You're looking for problems. Now, let's just say it's, uh, into the end of the quarter. Some other reason we're not. You're changing your changing what you're optimizing for, Can you? You have to write separate algorithm. Can you have dynamic movement inside that algorithm? How do you approach a problem? Because you're not always optimizing for the same things, depending on the market conditions. >>Yeah, I mean, I think a good example, you know, again, with Marvis is really with what we call reinforcement. Learning right in reinforcement. Learning is a model we use for, like, radio resource management. And there were really trying to optimize for the user experience in trying to balance the reward, the models trying to reward whether or not we have a good balance between the network and the user. Right, that reward could be changed. So that algorithm is basically reinforcement. You can finally change hell that Algren works by changing the reward you give the algorithm >>great. Um, Rajan back to you. A couple of huge things that have come into into play in the marketplace and get your take one is open source, you know, kind of. What's the impact of open source generally on the availability, desire and more applications and then to cloud and soon to be edge? You know, the current next stop. How do you guys incorporate that opportunity? How does it change what you can do? How does it open up the lens of >>a I Yeah, I think open source is really important because I think one thing that's interesting about a I is that it's a very nascent field and the more that there's open source, the more that people could build on top of each other and be able to utilize what what others others have done. And it's similar to how we've seen open source impact operating systems, the Internet, things like things like that with Cloud. I think one of the big things with cloud is now you have the processing power and the ability to access lots of data to be able to t create these thes networks. And so the capacity for data and the capacity for compute is much higher. Edge is gonna be a very important thing, especially going into next few years. You're seeing Maur things incorporated on the edge and one exciting development is around Federated learning where you can train on the edge and then combine some of those aspects into a cloud side model. And so that I think will actually make EJ even more powerful. >>But it's got to be so dynamic, right? Because the fundamental problem used to always be the move, the computer, the data or the date of the computer. Well, now you've got on these edge devices. You've got Tanya data right sensor data all kinds of machining data. You've got potentially nasty hostile conditions. You're not in a nice, pristine data center where the environmental conditions are in the connective ity issues. So when you think about that problem yet, there's still great information. There you got latent issues. Some I might have to be processed close to home. How do you incorporate that age old thing of the speed of light to still break the break up? The problem to give you a step up? Well, we see a lot >>of customers do is they do a lot of training on the cloud, but then inference on the on the edge. And so that way they're able to create the model that they want. But then they get fast response time by moving the model to the edge. The other thing is that, like you said, lots of data is coming into the edge. So one way to do it is to efficiently move that to the cloud. But the other way to do is filter. And to try to figure out what data you want to send to the clouds that you can create the next days. >>Shawna, back to you let's shift gears into ethics. This pesky, pesky issue that's not not a technological issue at all, but right. We see it often, especially in tech. Just cause you should just cause you can doesn't mean that you should. Um so and this is not a stem issue, right? There's a lot of different things that happened. So how should people be thinking about ethics? How should they incorporate ethics? Um, how should they make sure that they've got kind of a, you know, a standard kind of overlooking kind of what they're doing? The decisions are being made. >>Yeah, One of the more approachable ways that I have found to explain this is with behavioral science methodologies. So ethics is a massive field of study, and not everyone shares the same ethics. However, if you try and bring it closer to behavior change because every product that we're building is seeking to change of behavior. We need to ask questions like, What is the gap between the person's intention and the goal we have for them? Would they choose that goal for themselves or not? If they wouldn't, then you have an ethical problem, right? And this this can be true of the intention, goal gap or the intention action up. We can see when we regulated for cigarettes. What? We can't just make it look cool without telling them what the cigarettes are doing to them, right so we can apply the same principles moving forward. And they're pretty accessible without having to know. Oh, this philosopher and that philosopher in this ethicist said these things, it can be pretty human. The challenge with this is that most people building these algorithms are not. They're not trained in this way of thinking, and especially when you're working at a start up right, you don't have access to massive teams of people to guide you down this journey, so you need to build it in from the beginning, and you need to be open and based upon principles. Um, and it's going to touch every component. It should touch your data, your algorithm, the people that you're using to build the product. If you only have white men building the product, you have a problem you need to pull in other people. Otherwise, there are just blind spots that you are not going to think of in order to still that product for a wider audience, but it seems like >>they were on such a razor sharp edge. Right with Coca Cola wants you to buy Coca Cola and they show ads for Coca Cola, and they appeal to your let's all sing together on the hillside and be one right. But it feels like with a I that that is now you can cheat. Right now you can use behavioral biases that are hardwired into my brain is a biological creature against me. And so where is where is the fine line between just trying to get you to buy Coke? Which somewhat argues Probably Justus Bad is Jule cause you get diabetes and all these other issues, but that's acceptable. But cigarettes are not. And now we're seeing this stuff on Facebook with, you know, they're coming out. So >>we know that this is that and Coke isn't just selling Coke anymore. They're also selling vitamin water so they're they're play isn't to have a single product that you can purchase, but it is to have a suite of products that if you weren't that coke, you can buy it. But if you want that vitamin water you can have that >>shouldn't get vitamin water and a smile that only comes with the coat. Five. You want to jump in? >>I think we're going to see ethics really break into two different discussions, right? I mean, ethics is already, like human behavior that you're already doing right, doing bad behavior, like discriminatory hiring, training, that behavior. And today I is gonna be wrong. It's wrong in the human world is gonna be wrong in the eye world. I think the other component to this ethics discussion is really round privacy and data. It's like that mirror example, right? No. Who gave that mirror the right to basically tell me I'm old and actually do something with that data right now. Is that my data? Or is that the mirrors data that basically recognized me and basically did something with it? Right. You know, that's the Facebook. For example. When I get the email, tell me, look at that picture and someone's take me in the pictures Like, where was that? Where did that come from? Right? >>What? I'm curious about to fall upon that as social norms change. We talked about it a little bit for we turn the cameras on, right? It used to be okay. Toe have no black people drinking out of a fountain or coming in the side door of a restaurant. Not that long ago, right in the 60. So if someone had built an algorithm, then that would have incorporated probably that social norm. But social norms change. So how should we, you know, kind of try to stay ahead of that or at least go back reflectively after the fact and say kind of back to the black box, That's no longer acceptable. We need to tweak this. I >>would have said in that example, that was wrong. 50 years ago. >>Okay, it was wrong. But if you ask somebody in Alabama, you know, at the University of Alabama, Matt Department who have been born Red born, bred in that culture as well, they probably would have not necessarily agreed. But so generally, though, again, assuming things change, how should we make sure to go back and make sure that we're not again carrying four things that are no longer the right thing to do? >>Well, I think I mean, as I said, I think you know what? What we know is wrong, you know is gonna be wrong in the eye world. I think the more subtle thing is when we start relying on these Aye. Aye. To make decisions like no shit in my car, hit the pedestrian or save my life. You know, those are tough decisions to let a machine take off or your balls decision. Right when we start letting the machines Or is it okay for Marvis to give this D I ps preference over other people, right? You know, those type of decisions are kind of the ethical decision, you know, whether right or wrong, the human world, I think the same thing will apply in the eye world. I do think it will start to see more regulation. Just like we see regulation happen in our hiring. No, that regulation is going to be applied into our A I >>right solutions. We're gonna come back to regulation a minute. But, Roger, I want to follow up with you in your earlier session. You you made an interesting comment. You said, you know, 10% is clearly, you know, good. 10% is clearly bad, but it's a soft, squishy middle at 80% that aren't necessarily super clear, good or bad. So how should people, you know, kind of make judgments in this this big gray area in the middle? >>Yeah, and I think that is the toughest part. And so the approach that we've taken is to set us set out a set of AI ai principles on DDE. What we did is actually wrote down seven things that we will that we think I should do and four things that we should not do that we will not do. And we now have to actually look at everything that we're doing against those Aye aye principles. And so part of that is coming up with that governance process because ultimately it boils down to doing this over and over, seeing lots of cases and figuring out what what you should do and so that governments process is something we're doing. But I think it's something that every company is going to need to do. >>Sharon, I want to come back to you, so we'll shift gears to talk a little bit about about law. We've all seen Zuckerberg, unfortunately for him has been, you know, stuck in these congressional hearings over and over and over again. A little bit of a deer in a headlight. You made an interesting comment on your prior show that he's almost like he's asking for regulation. You know, he stumbled into some really big Harry nasty areas that were never necessarily intended when they launched Facebook out of his dorm room many, many moons ago. So what is the role of the law? Because the other thing that we've seen, unfortunately, a lot of those hearings is a lot of our elected officials are way, way, way behind there, still printing their e mails, right? So what is the role of the law? How should we think about it? What shall we What should we invite from fromthe law to help sort some of this stuff out? >>I think as an individual, right, I would like for each company not to make up their own set of principles. I would like to have a shared set of principles that were following the challenge. Right, is that with between governments, that's impossible. China is never gonna come up with same regulations that we will. They have a different privacy standards than we D'oh. Um, but we are seeing locally like the state of Washington has created a future of work task force. And they're coming into the private sector and asking companies like text you and like Google and Microsoft to actually advise them on what should we be regulating? We don't know. We're not the technologists, but they know how to regulate. And they know how to move policies through the government. What will find us if we don't advise regulators on what we should be regulating? They're going to regulate it in some way, just like they regulated the tobacco industry. Just like they regulated. Sort of, um, monopolies that tech is big enough. Now there is enough money in it now that it will be regularly. So we need to start advising them on what we should regulate because just like Mark, he said. While everyone else was doing it, my competitors were doing it. So if you >>don't want me to do it, make us all stop. What >>can I do? A negative bell and that would not for you, but for Mark's responsibly. That's crazy. So So bob old man at the mall. It's actually a little bit more codified right, There's GDP are which came through May of last year and now the newness to California Extra Gatorade, California Consumer Protection Act, which goes into effect January 1. And you know it's interesting is that the hardest part of the implementation of that I think I haven't implemented it is the right to be for gotten because, as we all know, computers, air, really good recording information and cloud. It's recorded everywhere. There's no there there. So when these types of regulations, how does that impact? Aye, aye, because if I've got an algorithm built on a data set in in person, you know, item number 472 decides they want to be forgotten How that too I deal with that. >>Well, I mean, I think with Facebook, I can see that as I think. I suspect Mark knows what's right and wrong. He's just kicking ball down tires like >>I want you guys. >>It's your problem, you know. Please tell me what to do. I see a ice kind of like any other new technology, you know, it could be abused and used in the wrong waste. I think legally we have a constitution that protects our rights. And I think we're going to see the lawyers treat a I just like any other constitutional things and people who are building products using a I just like me build medical products or other products and actually harmful people. You're gonna have to make sure that you're a I product does not harm people. You're a product does not include no promote discriminatory results. So I >>think we're going >>to see our constitutional thing is going applied A I just like we've seen other technologies work. >>And it's gonna create jobs because of that, right? Because >>it will be a whole new set of lawyers >>the holdings of lawyers and testers, even because otherwise of an individual company is saying. But we tested. It >>works. Trust us. Like, how are you gonna get the independent third party verification of that? So we're gonna start to see a whole terrorist proliferation of that type of fields that never had to exist before. >>Yeah, one of my favorite doctor room. A child. Grief from a center. If you don't follow her on Twitter Follower. She's fantastic and a great lady. So I want to stick with you for a minute, Bob, because the next topic is autonomous. And Rahman up on the keynote this morning, talked about missed and and really, this kind of shifting workload of fixing things into an autonomous set up where the system now is, is finding problems, diagnosing problems, fixing problems up to, I think, he said, even generating return authorizations for broken gear, which is amazing. But autonomy opens up all kinds of crazy, scary things. Robert Gates, we interviewed said, You know, the only guns that are that are autonomous in the entire U. S. Military are the ones on the border of North Korea. Every single other one has to run through a person when you think about autonomy and when you can actually grant this this a I the autonomy of the agency toe act. What are some of the things to think about in the word of the things to keep from just doing something bad, really, really fast and efficiently? >>Yeah. I mean, I think that what we discussed, right? I mean, I think Pakal purposes we're far, you know, there is a tipping point. I think eventually we will get to the CP 30 Terminator day where we actually build something is on par with the human. But for the purposes right now, we're really looking at tools that we're going to help businesses, doctors, self driving cars and those tools are gonna be used by our customers to basically allow them to do more productive things with their time. You know, whether it's doctor that's using a tool to actually use a I to predict help bank better predictions. They're still gonna be a human involved, you know, And what Romney talked about this morning and networking is really allowing our I T customers focus more on their business problems where they don't have to spend their time finding bad hard were bad software and making better experiences for the people. They're actually trying to serve >>right, trying to get your take on on autonomy because because it's a different level of trust that we're giving to the machine when we actually let it do things based on its own. But >>there's there's a lot that goes into this decision of whether or not to allow autonomy. There's an example I read. There's a book that just came out. Oh, what's the title? You look like a thing. And I love you. It was a book named by an A I, um if you want to learn a lot about a I, um and you don't know much about it, Get it? It's really funny. Um, so in there there is in China. Ah, factory where the Aye Aye. Is optimizing um, output of cockroaches now they just They want more cockroaches now. Why do they want that? They want to grind them up and put them in a lotion. It's one of their secret ingredients now. It depends on what parameters you allow that I to change, right? If you decide Thio let the way I flood the container, and then the cockroaches get out through the vents and then they get to the kitchen to get food, and then they reproduce the parameters in which you let them be autonomous. Over is the challenge. So when we're working with very narrow Ai ai, when use hell the Aye. Aye. You can change these three things and you can't just change anything. Then it's a lot easier to make that autonomous decision. Um and then the last part of it is that you want to know what is the results of a negative outcome, right? There was the result of a positive outcome. And are those results something that we can take actually? >>Right, Right. Roger, don't give you the last word on the time. Because kind of the next order of step is where that machines actually write their own algorithms, right? They start to write their own code, so they kind of take this next order of thought and agency, if you will. How do you guys think about that? You guys are way out ahead in the space, you have huge data set. You got great technology. Got tensorflow. When will the machines start writing their own A their own out rhythms? Well, and actually >>it's already starting there that, you know, for example, we have we have a product called Google Cloud. Ottawa. Mel Village basically takes in a data set, and then we find the best model to be able to match that data set. And so things like that that that are there already, but it's still very nascent. There's a lot more than that that can happen. And I think ultimately with with how it's used I think part of it is you have to start. Always look at the downside of automation. And what is what is the downside of a bad decision, whether it's the wrong algorithm that you create or a bad decision in that model? And so if the downside is really big, that's where you need to start to apply Human in the loop. And so, for example, in medicine. Hey, I could do amazing things to detect diseases, but you would want a doctor in the loop to be able to actually diagnose. And so you need tohave have that place in many situations to make sure that it's being applied well. >>But is that just today? Or is that tomorrow? Because, you know, with with exponential growth and and as fast as these things are growing, will there be a day where you don't necessarily need maybe need the doctor to communicate the news? Maybe there's some second order impacts in terms of how you deal with the family and, you know, kind of pros and cons of treatment options that are more emotional than necessarily mechanical, because it seems like eventually that the doctor has a role. But it isn't necessarily in accurately diagnosing a problem. >>I think >>I think for some things, absolutely over time the algorithms will get better and better, and you can rely on them and trust them more and more. But again, I think you have to look at the downside consequence that if there's a bad decision, what happens and how is that compared to what happens today? And so that's really where, where that is. So, for example, self driving cars, we will get to the point where cars are driving by themselves. There will be accidents, but the accident rate is gonna be much lower than what's there with humans today, and so that will get there. But it will take time. >>And there was a day when will be illegal for you to drive. You have manslaughter, right? >>I I believe absolutely there will be in and and I don't think it's that far off. Actually, >>wait for the day when I have my car take me up to Northern California with me. Sleepy. I've only lived that long. >>That's right. And work while you're while you're sleeping, right? Well, I want to thank everybody Aton for being on this panel. This has been super fun and these air really big issues. So I want to give you the final word will just give everyone kind of a final say and I just want to throw out their Mars law. People talk about Moore's law all the time. But tomorrow's law, which Gardner stolen made into the hype cycle, you know, is that we tend to overestimate in the short term, which is why you get the hype cycle and we turn. Tend to underestimate, in the long term the impacts of technology. So I just want it is you look forward in the future won't put a year number on it, you know, kind of. How do you see this rolling out? What do you excited about? What are you scared about? What should we be thinking about? We'll start with you, Bob. >>Yeah, you know, for me and, you know, the day of the terminus Heathrow. I don't know if it's 100 years or 1000 years. That day is coming. We will eventually build something that's in part of the human. I think the mission about the book, you know, you look like a thing and I love >>you. >>Type of thing that was written by someone who tried to train a I to basically pick up lines. Right? Cheesy pickup lines. Yeah, I'm not for sure. I'm gonna trust a I to help me in my pickup lines yet. You know I love you. Look at your thing. I love you. I don't know if they work. >>Yeah, but who would? Who would have guessed online dating is is what it is if you had asked, you know, 15 years ago. But I >>think yes, I think overall, yes, we will see the Terminator Cp through It was probably not in our lifetime, but it is in the future somewhere. A. I is definitely gonna be on par with the Internet cell phone, radio. It's gonna be a technology that's gonna be accelerating if you look where technology's been over last. Is this amazing to watch how fast things have changed in our lifetime alone, right? Yeah, we're just on this curve of technology accelerations. This in the >>exponential curves China. >>Yeah, I think the thing I'm most excited about for a I right now is the addition of creativity to a lot of our jobs. So ah, lot of we build an augmented writing product. And what we do is we look at the words that have happened in the world and their outcomes. And we tell you what words have impacted people in the past. Now, with that information, when you augment humans in that way, they get to be more creative. They get to use language that have never been used before. To communicate an idea. You can do this with any field you can do with composition of music. You can if you can have access as an individual, thio the data of a bunch of cultures the way that we evolved can change. So I'm most excited about that. I think I'm most concerned currently about the products that we're building Thio Give a I to people that don't understand how to use it or how to make sure they're making an ethical decision. So it is extremely easy right now to go on the Internet to build a model on a data set. And I'm not a specialist in data, right? And so I have no idea if I'm adding bias in or not, um and so it's It's an interesting time because we're in that middle area. Um, and >>it's getting loud, all right, Roger will throw with you before we have to cut out, or we're not gonna be able to hear anything. So I actually start every presentation out with a picture of the Mosaic browser, because what's interesting is I think that's where >>a eyes today compared to kind of weather when the Internet was around 1994 >>were just starting to see how a I can actually impact the average person. As a result, there's a lot of hype, but what I'm actually finding is that 70% of the company's I talked to the first question is, Why should I be using this? And what benefit does it give me? Why 70% ask you why? Yeah, and and what's interesting with that is that I think people are still trying to figure out what is this stuff good for? But to your point about the long >>run, and we underestimate the longer I think that every company out there and every product will be fundamentally transformed by eye over the course of the next decade, and it's actually gonna have a bigger impact on the Internet itself. And so that's really what we have to look forward to. >>All right again. Thank you everybody for participating. There was a ton of fun. Hope you had fun. And I look at the score sheet here. We've got Bob coming in and the bronze at 15 points. Rajan, it's 17 in our gold medal winner for the silver Bell. Is Sharna at 20 points. Again. Thank you. Uh, thank you so much and look forward to our next conversation. Thank Jeffrey Ake signing out from Caesar's Juniper. Next word unpacking. I Thanks for watching.
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We don't have to do it over the phone s so we're happy to have him. Thank you, Christy. So just warm everybody up and we'll start with you. Well, I think we all know the examples of the south driving car, you know? So this is kind I have a something for You know, you start getting some advertising's And that one is is probably the most interesting one to be right now. it's about the user experience that you can create as a result of a I. Raja, you know, I think a lot of conversation about A They always focus the general purpose general purpose, And I think it really boils down to getting to the right use cases where a I right? And how do you kind of think about those? the example of beach, you type sheep into your phone and you might get just a field, the Miss Technology and really, you know, it's interesting combination of data sets A I E. I think we all know data sets with one The tipping points for a I to become more real right along with cloud in a just versus when you first started, you're not really sure how it's gonna shake out in the algorithm. models, basically, to be able to predict if there's gonna be an anomaly or network, you know? What do you do if you don't have a big data set? I mean, so you need to have the right data set. You have to be able thio over sample things that you need, Or do you have some May I objectives that you want is that you can actually have starting points. I couldn't go get one in the marketplace and apply to my data. the end, you need to test and generate based on your based on your data sets the business person and the hard core data science to bring together the knowledge of Here's what's making Um, the algorithms that you use I think maybe I had, You know, if you look at Marvis kind of what we're building for the networking community Ah, that you can't go in and unpack it, that you have to have the Get to the root cause. Yeah, assigned is always hard to say. So what about when you change what you're optimizing? You can finally change hell that Algren works by changing the reward you give the algorithm How does it change what you can do? on the edge and one exciting development is around Federated learning where you can train The problem to give you a step up? And to try to figure out what data you want to send to Shawna, back to you let's shift gears into ethics. so you need to build it in from the beginning, and you need to be open and based upon principles. But it feels like with a I that that is now you can cheat. but it is to have a suite of products that if you weren't that coke, you can buy it. You want to jump in? No. Who gave that mirror the right to basically tell me I'm old and actually do something with that data right now. So how should we, you know, kind of try to stay ahead of that or at least go back reflectively after the fact would have said in that example, that was wrong. But if you ask somebody in Alabama, What we know is wrong, you know is gonna be wrong So how should people, you know, kind of make judgments in this this big gray and over, seeing lots of cases and figuring out what what you should do and We've all seen Zuckerberg, unfortunately for him has been, you know, stuck in these congressional hearings We're not the technologists, but they know how to regulate. don't want me to do it, make us all stop. I haven't implemented it is the right to be for gotten because, as we all know, computers, Well, I mean, I think with Facebook, I can see that as I think. you know, it could be abused and used in the wrong waste. to see our constitutional thing is going applied A I just like we've seen other technologies the holdings of lawyers and testers, even because otherwise of an individual company is Like, how are you gonna get the independent third party verification of that? Every single other one has to run through a person when you think about autonomy and They're still gonna be a human involved, you know, giving to the machine when we actually let it do things based on its own. It depends on what parameters you allow that I to change, right? How do you guys think about that? And what is what is the downside of a bad decision, whether it's the wrong algorithm that you create as fast as these things are growing, will there be a day where you don't necessarily need maybe need the doctor But again, I think you have to look at the downside And there was a day when will be illegal for you to drive. I I believe absolutely there will be in and and I don't think it's that far off. I've only lived that long. look forward in the future won't put a year number on it, you know, kind of. I think the mission about the book, you know, you look like a thing and I love I don't know if they work. you know, 15 years ago. It's gonna be a technology that's gonna be accelerating if you look where technology's And we tell you what words have impacted people in the past. it's getting loud, all right, Roger will throw with you before we have to cut out, Why 70% ask you why? have a bigger impact on the Internet itself. And I look at the score sheet here.
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Power Panel - IIOT: Apocalypse Now or Later, CUBE Conversation, August 2019
(upbeat intro) >> From our studios in the heart of Silicon Valley, Palo Alto California, this is a CUBE conversation. >> Hello everyone, welcome to the Palo Alto studios of theCUBE, I'm John Furrier host of theCUBE, we're here with a special power panel on industrial IOT, also known as IIOT, industrial IOT, and cybersecurity, with the theme being apocalypse now or later, when will the rug be pulled out from everyone, when will people have to make a move on making sure that the network and security are all teed up and all locked down, as IOT increases the surface area of networks, industrial IOT, where critical equipment or infrastructure is being run for businesses. Got a great panel here, we got Gabe Lowy who's the founder and CEO of Tectonic Advisors, and author of an upcoming research paper on this particular topic. Bryan Skene, vice president of product development at Tempered Networks, and Greg Ness, the CMO, who happened to be available to join us from Tempered Networks as well. Guys, thanks for spending the time to come on this power panel. >> Great to be here. >> So, convergence is a theme we've heard every wave of innovation, the convergence of this, the convergence of networks and apps. Now more than ever, there's a confluence of multiple waves of convergence happening, you're seeing it right now, infrastructure turned into cloud, big data turned into machine learning and AI, you've got future infrastructure like Blockchain around the corner, but in the middle of all this, the security, data, networking, this is kind of the beginning of a cloud 2.0 dynamic, where pure cloud is great for computing network, you native born in the cloud, you scale it up, it's great. Still got challenges but if you're a large company, and you want to actually operate cloud scale anything, and have instrumentation, internet of things, devices, sensors, in factory's, in plants, in cars, your game is changing, if it's connected to the network, it's got power and connectivity, a terrorist, a hacker, a digital terrorist can come in and do all kinds of damage. This is the topic. So Greg, we talked about this panel, what was the motivation for this, what's your thoughts? >> Well, it occurred to us that you know, as you look at all the connectivity that's you know, underway, billions of devices being connected, the level of scale, complexity, and the porosity of what's being connected, is just really incomprehensible, to the people that developed the internet, and it's raising a lot of issues. All around, basically, the number of devices the inability to protect and secure and update those devices, and the sheer amount of money and effort that would have to be applied to protect them is beyond the scope of current IT security stuff. IT's not ready. >> IT, certainly, you and I talk about this all the time, but you know, I love the hype and you know, digital transformation's going to save the world Gabe, talk about the dynamics because the title of this panel, really the subtitle is apocalypse now or later, and this seems to be the modus operandus is that you know, you know what has to hit the fan before any action is taken, you see Capital One, there isn't a day gone by where there's some major breach, major hack, it's a firewall for Capital One, going to an open S3 bucket from some girl whose bragging about it on Twitter, wasn't really a serious hacker, then you've got adversaries that are organized, whether it's state sponsored and or real money making underbelly activities happening, you know there are digital terrorists out there, there are digital thieves, the surface area with IOT is absolutely opened up, we kind of know that, but industrial IOT, just talking about industrial equipment, industrial activities, whether it's critical infrastructure or planting equipment for a company, this is a huge digital problem. What's your take, what's your thesis? >> Yes it is, and building on what Greg said, there's an interesting gap from both sides. The first is that this industrial equipment or critical infrastructure, some of it goes back 20, 25 years. It was not architected to be connected to the internet, but yet with this digital transformation that you eluded to, companies want to find ways of getting that data, putting it into various analytics engines to improve cost efficiencies or decision outcomes. But how do you do that with a lot of equipment out there that runs on different operating systems and really was not built for internet connections. The other side of the gap is that your traditional IT security technologies, firewalls, intrusion protection, VPN's, they in turn were not built or architected to secure this IIOT infrastructure. And that gap creates the vulnerability that opens the door for cyber criminals to come in, or state sponsored cyber attackers to come in and do some serious damage. >> Bryan, I want you to weight in here. You're a network guy, you've been around the block, you've seen the networks evolve, the primitives were clear, the building blocks internet were, the DNS ran, most of what the internet right now, whether you're talking about from the marketing to routing, it's all DNS based, it's IP addresses as well under that. So you've got the IP address, you've got DNS, what else is there? What can be done? Why aren't these problems being solved by traditional firewalls and traditional players out there, is it just the limitation of the infrastructure? Or is there just more cultural DNA, you've got to evolve, what's your take on this? >> Yeah, um the way I think about this is that the internet that we know and we use was mostly built for human beings, I mean, it's been built for humans to use it, humans have discriminating tastes, they decide what to click on, for the most part they are skeptical, they learn through trial and error what's happened with- when people try to fool other people, a machine or you know, you've got a webpage and it's got something misleading, you learn that, you don't click on that any more. And the infrastructure we have today is built to help people avoid these problems, as well as drop packets when they can detect that something is just absolutely wrong. But machines, they don't know any of that, they're not discriminating, they've been built to, well if it's going to be on a network, to trust everything that's talking to them, and to send data and assume that the other side is also trusting them and just acting on the data. So it's just a fundamentally different problem, you know what traditionally the machine networks have had air gaps, they've been air gapped away from any other kinds of data or potential threat. And those air gaps are gone. >> So air gaps were supposed to save us, weren't they? But they're not are they? >> Well, they kept us going as Gabe alluded, for 20 -25 years, machines have been operating, operating critical infrastructure, but you know, with digitalization, with the opportunity to look at that data in the cloud, and do machine learning, and by the way machine learning's being done in the cloud just for scale, so the problem with getting the data from machines, or other things back into the cloud is a huge issue, and if there's an air gap between say the cloud and the thing, we might be somewhere. >> So a lot of incompatible architectures relative to what everyone's doing with cloud, and say hybrid and multi cloud. Gabe, you know the two worlds of information technology or IT people, and operational technology people, that tend to run the IOT world, you know you do sensors to factory floors to whatever, called OT people, operational technologies. I've always said that's a train wreck between those two cultures, they kind of don't like each other. You got IT guys, they're stacking and racking equipment, OT guys, stay out of my world I run propietary stacks, it's lockdown. Pretty locked down from a security standpoint, IT are pretty promiscuous just in the nature of it. As those two worlds collide, is that the thesis of the catastrophe model, as you see that world coming together, what's your thoughts on this? >> Yes, good question. That world has to come together, and I'll give you an analogy to this. About 10, 12 years ago, a lot of people were doubtful that Devops would ever take off, 'cause development guys really didn't like operations guys, they didn't like dealing with them. Here we are 10 years or so later, and everyone's pretty much adopted it, and they're seeing the benefits of it. This OT IT convergence takes it to a much higher level, because the stakes are so much higher, because a cyber attack can cause catastrophic damage. And as a result, these two teams are not only going to have to work together in harmony, but they're going to have to learn each other's stacks in the case of the OT guys, it's their traditional OSI networking stack for IT networks. And for the IT guys, they're going to have to learn the Purdue model, which was the model that's principally used in architecting these OT systems. And unless these two teams do work together, the vulnerabilities and probabilities for a catastrophic event increases significantly. >> That's a great example, Devops was poo-pooed on earlier on, I mean Greg, we were back in 2008 riffing on this, now it's the mainstream. Agilities come from it, the Lean startup, all kinds of cool things, people are talking about, we love cloud, great. Now we bring the OT world together, and IT world together, Gabe, what is the benefit, what is the key ethos around operating technologies and IT guys coming together? Because you know, dev ops would simply abstract away the complexity so developers don't have to do configuration and management, all that provisioning stuff, and still have the reliability. They called it infrastructure as code, so Devops was infrastructure as code, what's the ethos of the two worlds coming together from IT and OT? >> I think the ethos is at a very high level, it's risk management. Because the stakes are so high that the types of losses that could be incurred, you know you mentioned Capital One at the top of the program, yes those are financial losses, but imagine if the losses resulted in thousands or tens of thousands of people getting infected, or perhaps dying. So the need for these two teams to work together is absolutely critical, and so I'd say the key strategic approach to this, both from the IT and the OT side, is to go into it- into strategy or cyber strategy with the premise that the company has already been compromised. And so that starts to get your thinking away from legacy types of technologies that were not architected to prevent these new threats, or defend against them, and now these teams have to start working together from a totally different standpoint, to try and prevent the risks of those catastrophic losses. >> Greg, I want to get your thoughts, you've been in the IT businesses for a long time, you've been a major player in it, historian as well as us in IT, what do you see as contrast between the two cultures of IT and OT, because you got to lock down these networks, you got to have the teamwork between the two, because the surface area with IOT and industrial IOT is so massive, it's so complicated yet it's an opportunity at the same time it's an exposure, I mean just people working at home in IT, I mean the home is a great place to target people because all you got to do is get that light bulb from nest and you're at a fully threaded processor, you could run malware and get all the passwords from the person working at home. So again, from home to industrial, does IT even have the chops to get there? >> Not the way they're architected today around the TCP- IP stack, and that's the challenge, right? So from the 90's to this era, whether it's the mainframes to the networks to the internet to the enterprise web et cetera, compared to this we've had relatively incremental change, as surprising as that sounds. You know, devices being added and every year, every other year, every three years, people are upgrading those endpoints, they're adding more sophisticated security. But this world that you referred to, the world's in collision. It's not evolving at all in parallel. So, you've got devices with no security in mind they're being connected, and you know, calling it the industrial internet of things almost underwhelms what the risk is, it should be the internet of places or spaces, because what these devices can control, control of a factory, a hospital, et cetera, and you think back you know, yes you've got historical perspective, you don't have to go back very far when the Russians were attacking Ukraine, you know, WannaCry, NotPetya, you know they spread all over the place in a matter of weeks, UK hospitals were running on carbon paper, postponing procedures, Maersk shipping had they're shipping- they lost control of their ships at sea, and now you've got VxWorks coming along, saying you know, you're going to have to update that, because there's some serious vulnerabilities here, VxWorks is deployed to cross billions of devices, so I don't think historically there's really a precedent, I mean, if you want to tap into a common interest with military history, you don't even have the semblance of a Maginot Line, and that was a pretty imperfect protection scheme. >> I mean, the opportunity to infect governments, take 'em down within misinformation to actually harming people say through hospital hacks for instance, you know, people could- lives were in danger. And there's also other threats, I mean, you mentioned, it takes one device to be penetrated, at home or at work, I saw an article, came across my desk I saw IBM did some research, this concept of war shipping, where hackers ship their exploits directly on WiFi devices, so people get these devices, hey, free you know, nest light bulb or whatever's going on, they install in their home, oh it's got, I got a free WiFi router, uh-uh, it's got built in malware. It's just got WiFi connectivity. So again, the exploits are getting more complicated, Bryan, the network has to be smart. At the end of the day, this cloud 2.0 theme is beyond compute and storage, networking and security are two underdeveloped areas that need to evolve very quickly to solve these problems, what's your take on this. >> Well, my take on that is that our approach is that if the network has to be so smart that it can watch everything and understand what's good and bad, then we're doomed, so we're going to need to also combine watching packets, the traditional method, deep packet inspection, with divide and conquer. Frankly, it's-as Tom and I said before, the air gaps are gone for OT. I think we need to figure out a way to divide up the networks of things, and give them clean networks if possible, and try to segment them away from the network that the rest of the things are on. So, you know, we don't have enough compute power, we don't have enough memory and resources, but that's not really the fit. We just don't understand what is good traffic versus bad traffic, and we talk about Day Zero attack, and we talk about, try to chase that down with signatures, and you know the- you can watch transactions, people say AI and machine learning, but machine learning means learning good and bad from people. >> How do companies fix this, what's the answer to all this, or is there one? Or it's just going to take catastrophic loss to wake people up? >> Well we can't react to the problem, that's one thing that we all can probably- we all know that if we wait for the catastrophe, and then we try to react to that and solve it, that it's already gone, it's too late. I mean, this is a geometric expansion in complexity of the problem, I don't think there's a silver bullet, I think that there's going to be several things that need to be done, one is to keep inspecting traffic, but another one is again segmenting things that should be talking to each other, away from things that they should not be talking to. And trying to control the peers in the network of things. And you know, Greg something you said reminded me, fundamentally with networking, the TCP-IP, we are using the IP address, to mean the location say if we're talking about places, we're talking about the location of something and the identity of that thing, and most of our security policies, are spelled out in terms of something, an IP address, that is not under our control, and the network has to be kind of so complex as it is growing, with mass proxies, you know, motion, mobility, things are moving. A lot of this wasn't foreseen. >> So, Gabe and Greg, do we have to build new software, a new naming system? Do we have to kind of level up and put an extraction layer on top of the existing systems? What's the answer? >> The answer is a layered approach. Because to try and do a complete rebuild or a retrofit particularly with different operating systems, different versions, incompatible systems, billions of devices, and various types of security solutions that were not built for this, that's not a practical solution. So you've really got to go with an overlay strategy, people are always going to be the vulnerability, they'll fall for fishing attacks, that's why the strategy is that we're already compromised. So if the attacker is already in our network, how do we contain them from doing serious damage? So one strategy for this is micro-segmentation, which is a much more granular approach, to prevent that lateral movement once the attacker is inside the network. And then when you go from there, you can pair that with host identity protocol which has been around for a while, but that was architected specifically to address the networking and security requirements for IIOT environment, because it addresses that gap that we were talking about between traditional security solutions that lack this functionality, and it only allows white-listed communications between hosts or devices that are already approved and only approved to communicate with one another. So you could effectively do a lockdown even if the attacker is already inside your network. >> I want to get back to some of the criteria on this, and I want to also put the plug in for the TechTonic advisors report that's coming out that you are the author of, called securing critical infrastructure against cyber attacks, I read it, great paper. The line that I read, I want to get your thoughts I'm going to read it out loud, I'd love to get your thoughts on this Gabe or anyone else who wants to chime in, it says industrial IOT cybersecurity is beyond the scope of traditional firewall and VPN solutions would struggle to keep up with the scale and variety of modern attacks. What do you mean by that? Give an example, tell me what you mean by that sentence, and what examples can you give? >> Well, I'd say the most important thing is that firewalls were initially built to protect what we call north-south traffic. In other words, traffic that's coming in from the internet into the organization and back out. But now with network expansion, cloud adoption and more and more devices, industrial devices being connected, these firewalls cannot defend against that. They simply were not architected for it, they cannot scale to those proportions, and even if you're using software only versions, those aren't effective either because they do not protect against east-west or in other words lateral traffic. So if you're an organization moving IIOT data from your OT systems across your network into IP analytics systems or software, that's lateral movement. Your firewall- traditional firewall, just not going to be able to handle that and protect against it, so in simple terms, we need a new overlay not to say that firewalls are going away any time soon, they can still protect north-south traffic, but we need a new type of overlay that can protect this type of traffic, micro-segmentation is the strategy to do that and using host identity protocol or HIP protocol is what fills that gap that your traditional security tools were not designed to protect against. >> Greg, I want you to weigh in on this, because you're in this business now, you know the IT world, the criticality of what you just said is super critical to the nature of business, you know the catastrophic example's there, but IT does not move that fast, you know IT, IT'S like molasses, I mean they're slow. What is going to light a fire under IT to get them to be sensitive, I mean it's pretty obvious, can they get there, do they have to re-structure what has to happen in the IT world, because you know, it is a catastrophic end game here if they don't nail down this traffic protection. >> Well a part of the- you know, part of it is education. Because we've been- we've seen wave and wave of incremental innovation in the network, and when it happened it seemed so big and and it produced huge market cap growth with a lot of companies, you know play this guessing game of who is really connecting to the network. And it's evolved kind of gradually, to this big leap we have ahead of us, and IT is going to have to become aware that IIOT is a fundamentally different problem and challenge to solve, and that's going to require new thinking, new purpose built, like Gabe said, approaches, anything like the traditional firewall segmentation is just not going to address what we talked about, the scale issues, the resilience right? So, some of these devices, you don't want them off for one or two percent of the time. And the implications are that it's much more serious. So I think that, you know, more types of attacks are inevitable, and they're going to be even more catastrophic, and we're all aware that NotPetya and WannaCry raised a lot of eyebrows just for how quick it spread and the damage it caused. And we've just seen VxWorks vulnerabilities being announced. We need to prepare now. >> Malware and worms are still popular, it's a problem. Well guys, thanks so much for spending the time on this panel, I'll give you the final word here, share what you think is going to happen over the next 24 months, 12 months, is it going to take catastrophic failure, what's going to happen in your mind, what's going to end up being the trajectory over the next, you know say year. >> Well, unfortunately, sometimes it might take a catastrophic event to get things moving, hopefully not, but I think there's growing recognition as IIOT is growing, that they need new ways to secure this movement of data between OT and IT, and in order to facilitate that securing of data, you're going to have to have that OT and IT convergence occur, because the risk, as you sort of eluded to earlier John, we hear in the headlines about massive data breaches and all this data that's stolen. But the risk in IIOT is not only the exfiltration of the data, the risk is that the attacker has the capacity to take over the infrastructure. And if that happens in a hospital, if it happens with a water treatment facility or government type of defense installation, the outcomes can be disastrous. So the first thing that has to happen is OT IT convergence. Second, they have to start thinking strategically from a standpoint that they have already been breached, and so that changes their viewpoint about the technologies that they have to deploy, and where they have to move to to efficiently get to what I call the iddies, and that's the- you still need the availability, you've got to have visibility into this traffic, you need reliability of this network, obviously it's got to be at scale, it's got to be manageable, and you need security. >> Well, we'd like to have you on again Gabe, because we've talked about this from a national security perspective, not only the hackers potentially risking the business risk there, there's a national security overlay because you know, if the government's attacking our businesses, that's like showing up on the shores of our country, its the government's job to protect the freedom's and safety of the citizens, that includes companies. So why are companies defending themselves with all this capability, what's the role of government in all of this, that's a very important, I think a longer conversation. So, let's pick that one up, a separate one, my favorite topic these days. Critical infrastructure even if it's just business it's the grid, it's the plants that run our country. >> And John, what I'd like to add to that is, I was talking to a friend of mine who's a CIO down here in California yesterday, and we were talking about the ransomware right, that was taking down all these cities. And you know, he goes well the difference between what you guys are talking about and that, is that you can back up your IT systems, right, into the cloud, and that's a growing business to kind of protect and then replicate game over, and he goes, can you back up a hospital? Can you back up a manufacturing plant? Can you back up a fleet of ships? You know, can you back up a control center? Not really, when you lose physical control, it's game over. And people, I think that really needs to sink in. And that was, I think in Gabe's paper when I first read it, that's what really struck me about it, this is a different ballgame. >> Well, I mean, there's many points, there's the technical point there, and there's also the societal point of- you imagine things being taken over by hackers that physically can harm people, and that's again the societal side, technically the incompatible architecture's coming home to roost now, because there's the problem right there, that's the collision that's happened I think, and a lot of education needs to happen fast, Gabe, thanks for writing that paper critical infrastructure against cyber and securing it, Bryan thanks for coming on appreciate it, you want to say, get the final word Bryan, go ahead. Your thoughts, next 12 months. >> I think that if our future, it depends on OT and IT coming together and a lot of education, a lot of change, I don't think we're going to get there, I think that what's going to happen in the next 24 months is that you know, there are lots of innovative schemes and companies and people, working on this and what we need to do is lay down infrastructure that allows OT and IT to keep operating, and not have to do a forklift upgrade and everything that they do, their processes or teach the things how to protect themselves, and again I'm going to go back to air gaps in network, make a logical air gap, if you imagine driverless cars driving around they're not going to, imagine them sharing the same network that we're using to use Snapchat and look at cities and you know, sitting on the internet and looking at Facebook. We're not going to want that. So we need to try and figure out a way to separate the location of the thing from the identity, create policies in terms of the identity, manage that a new layer, and do it in such a way that doesn't change IT. To me that's the key, 'cause I- we've said it here, IT's doesn't move that fast, they can't. It's not a matter of willpower, it's a matter of momentum and intertia. >> Well, I think the forcing function on this is going to be catastrophic event, the subtitle of this panel, apocalypse now or later. And in my opinion, Greg's been, you know, on this JetEye department of defense story. I believe this is one of the most important stories in the technology industry in a long long time, it really highlights the confluence and convergence of two differently designed infrastructure technologies, that have to in a very short time, be re-platformed at high speed, in a very fast short time frame, because the stakes are so high. So guys, thanks so much for spending the time here on this power panel, IIOT, industrial IOT and cyber security apocalypse now or later, something's going to have to happen, it has to happen fast. Gabe, Bryan, Greg thanks for taking the time. This is a cube conversation here in Palo Alto power panel, I'm John Furrier, thanks for watching. (upbeat music)
SUMMARY :
in the heart of Silicon Valley, Palo Alto California, Guys, thanks for spending the time to come on this the motivation for this, what's your thoughts? Well, it occurred to us that you know, as you look at apocalypse now or later, and this seems to be the And that gap creates the vulnerability that opens the door the limitation of the infrastructure? And the infrastructure we have today is built to help and the thing, we might be somewhere. that tend to run the IOT world, you know you do sensors And for the IT guys, they're going to have to learn away the complexity so developers don't have to And so that starts to get your thinking away from is a great place to target people because all you got to do So from the 90's to this era, whether it's the mainframes I mean, the opportunity to infect governments, Well, my take on that is that our approach is that if the that need to be done, one is to keep inspecting traffic, but another one and only approved to communicate with one another. and what examples can you give? is the strategy to do that and using host identity the criticality of what you just said is super critical and IT is going to have to become aware that IIOT being the trajectory over the next, you know say year. the technologies that they have to deploy, shores of our country, its the government's job to protect is that you can back up your IT systems, right, into the the incompatible architecture's coming home to roost now, and you know, sitting on the internet and looking So guys, thanks so much for spending the time here
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Jamir Jaffer, IronNet Cybersecurity | AWS re:Inforce 2019
>> live from Boston, Massachusetts. It's the Cube covering A W s reinforce 2019. Brought to you by Amazon Web service is and its ecosystem partners. >> Well, welcome back. Everyone's Cube Live coverage here in Boston, Massachusetts, for AWS. Reinforce Amazon Web sources. First inaugural conference around security. It's not Osama. It's a branded event. Big time ecosystem developing. We have returning here. Cube Alumni Bill Jeff for VP of strategy and the partnerships that Iron Net Cyber Security Company. Welcome back. Thanks. General Keith Alexander, who was on a week and 1/2 ago. And it was public sector summit. Good to see you. Good >> to see you. Thanks for >> having my back, but I want to get into some of the Iran cyber communities. We had General Qi 1000. He was the original commander of the division. So important discussions that have around that. But don't get your take on the event. You guys, you're building a business. The minute cyber involved in public sector. This is commercial private partnership. Public relations coming together. Yeah. Your models are sharing so bringing public and private together important. >> Now that's exactly right. And it's really great to be here with eight of us were really close partner of AWS is we'll work with them our entire back in today. Runs on AWS really need opportunity. Get into the ecosystem, meet some of the folks that are working that we might work with my partner but to deliver a great product, right? And you're seeing a lot of people move to cloud, right? And so you know some of the big announcement that are happening here today. We're willing. We're looking to partner up with eight of us and be a first time provider for some key new Proactiv elves. AWS is launching in their own platform here today. So that's a really neat thing for us to be partnered up with this thing. Awesome organization. I'm doing some of >> the focus areas around reinforcing your party with Amazon shares for specifics. >> Yes. So I don't know whether they announced this capability where they're doing the announcement yesterday or today. So I forget which one so I'll leave that leave that leave that once pursued peace out. But the main thing is, they're announcing couple of new technology plays way our launch party with them on the civility place. So we're gonna be able to do what we were only wanted to do on Prem. We're gonna be able to do in the cloud with AWS in the cloud formation so that we'll deliver the same kind of guy that would deliver on prime customers inside their own cloud environments and their hybrid environment. So it's a it's a it's a sea change for us. The company, a sea change for a is delivering that new capability to their customers and really be able to defend a cloud network the way you would nonpregnant game changer >> described that value, if you would. >> Well, so you know, one of the key things about about a non pregnant where you could do you could look at all the flows coming past you. You look at all the data, look at in real time and develop behavior. Lana looks over. That's what we're doing our own prime customers today in the cloud with his world who looked a lox, right? And now, with the weight of your capability, we're gonna be able to integrate that and do a lot Maur the way we would in a in a in a normal sort of on Prem environment. So you really did love that. Really? Capability of scale >> Wagon is always killed. The predictive analytics, our visibility and what you could do. And too late. Exactly. Right. You guys solve that with this. What are some of the challenges that you see in cloud security that are different than on premise? Because that's the sea, So conversation we've been hearing. Sure, I know on premise. I didn't do it on premises for awhile. What's the difference between the challenge sets, the challenges and the opportunities they provide? >> Well, the opportunities air really neat, right? Because you've got that even they have a shared responsibility model, which is a little different than you officially have it. When it's on Prem, it's all yours essential. You own that responsibility and it is what it is in the cloud. Its share responsible to cloud provider the data holder. Right? But what's really cool about the cloud is you could deliver some really interesting Is that scale you do patch updates simultaneously, all your all your back end all your clients systems, even if depending how your provisioning cloud service is, you could deliver that update in real time. You have to worry about. I got to go to individual systems and update them, and some are updated. Summer passed. Some aren't right. Your servers are packed simultaneously. You take him down, you're bringing back up and they're ready to go, right? That's a really capability that for a sigh. So you're delivering this thing at scale. It's awesome now, So the challenge is right. It's a new environment so that you haven't dealt with before. A lot of times you feel the hybrid environment governed both an on Prem in sanitation and class sensation. Those have to talkto one another, right? And you might think about Well, how do I secure those those connections right now? And I think about spending money over here when I got all seduced to spend up here in the cloud. And that's gonna be a hard thing precisely to figure out, too. And so there are some challenges, but the great thing is, you got a whole ecosystem. Providers were one of them here in the AWS ecosystem. There are a lot here today, and you've got eight of us as a part of self who wants to make sure that they're super secure, but so are yours. Because if you have a problem in their cloud, that's a challenge. Them to market this other people. You talk about >> your story because your way interviews A couple weeks ago, you made a comment. I'm a recovering lawyer, kind of. You know, we all laughed, but you really start out in law, right? >> How did you end up here? Yeah, well, the truth is, I grew up sort of a technology or myself. My first computer is a trash 80 a trs 80 color computer. RadioShack four k of RAM on board, right. We only >> a true TRS 80. Only when I know what you're saying. That >> it was a beautiful system, right? Way stored with sword programs on cassette tapes. Right? And when we operated from four Keita 16 k way were the talk of the Rainbow Computer Club in Santa Monica, California Game changer. It was a game here for 16. Warning in with 60 give onboard. Ram. I mean, this is this is what you gonna do. And so you know, I went from that and I in >> trouble or something, you got to go to law school like you're right >> I mean, you know, look, I mean, you know it. So my dad, that was a chemist, right? So he loved computers, love science. But he also had an unrequited political boners body. He grew up in East Africa, Tanzania. It was always thought that he might be a minister in government. The Socialist came to power. They they had to leave you at the end of the day. And he came to the states and doing chemistry, which is course studies. But he still loved politics. So he raised at NPR. So when I went to college, I studied political science. But I paid my way through college doing computer support, life sciences department at the last moment. And I ran 10 based. He came on climate through ceilings and pulled network cable do punch down blocks, a little bit of fibrous placing. So, you know, I was still a murderer >> writing software in the scythe. >> One major, major air. And that was when when the web first came out and we had links. Don't you remember? That was a text based browser, right? And I remember looking to see him like this is terrible. Who would use http slash I'm going back to go for gophers. Awesome. Well, turns out I was totally wrong about Mosaic and Netscape. After that, it was It was it was all hands on >> deck. You got a great career. Been involved a lot in the confluence of policy politics and tech, which is actually perfect skill set for the challenge we're dealing. So I gotta ask you, what are some of the most important conversations that should be on the table right now? Because there's been a lot of conversations going on around from this technology. I has been around for many decades. This has been a policy problem. It's been a societal problem. But now this really focus on acute focus on a lot of key things. What are some of the most important things that you think should be on the table for techies? For policymakers, for business people, for lawmakers? >> One. I think we've got to figure out how to get really technology knowledge into the hands of policymakers. Right. You see, you watch the Facebook hearings on Capitol Hill. I mean, it was a joke. It was concerning right? I mean, anybody with a technology background to be concerned about what they saw there, and it's not the lawmakers fault. I mean, you know, we've got to empower them with that. And so we got to take technologist, threw it out, how to get them to talk policy and get them up on the hill and in the administration talking to folks, right? And one of the big outcomes, I think, has to come out of that conversation. What do we do about national level cybersecurity, Right, because we assume today that it's the rule. The private sector provides cyber security for their own companies, but in no other circumstance to expect that when it's a nation state attacker, wait. We don't expect Target or Wal Mart or any other company. J. P. Morgan have surface to air missiles on the roofs of their warehouses or their buildings to Vegas Russian bear bombers. Why, that's the job of the government. But when it comes to cyberspace, we expect Private Cummings defending us everything from a script kiddie in his basement to the criminal hacker in Eastern Europe to the nation state, whether Russia, China, Iran or North Korea and these nation states have virtually a limited resource. Your armies did >> sophisticated RND technology, and it's powerful exactly like a nuclear weaponry kind of impact for digital. >> Exactly. And how can we expect prices comes to defend themselves? It's not. It's not a fair fight. And so the government has to have some role. The questions? What role? How did that consist with our values, our principles, right? And how do we ensure that the Internet remains free and open, while still is sure that the president is not is not hampered in doing its job out there. And I love this top way talk about >> a lot, sometimes the future of warfare. Yeah, and that's really what we're talking about. You go back to Stuxnet, which opened Pandora's box 2016 election hack where you had, you know, the Russians trying to control the mean control, the narrative. As you pointed out, that that one video we did control the belief system you control population without firing a shot. 20 twenties gonna be really interesting. And now you see the U. S. Retaliate to Iran in cyberspace, right? Allegedly. And I was saying that we had a conversation with Robert Gates a couple years ago and I asked him. I said, Should we be Maur taking more of an offensive posture? And he said, Well, we have more to lose than the other guys Glasshouse problem? Yeah, What are your thoughts on? >> Look, certainly we rely intimately, inherently on the cyber infrastructure that that sort of is at the core of our economy at the core of the world economy. Increasingly, today, that being said, because it's so important to us all the more reason why we can't let attacks go Unresponded to write. And so if you're being attacked in cyberspace, you have to respond at some level because if you don't, you'll just keep getting punched. It's like the kid on the playground, right? If the bully keeps punching him and nobody does anything, not not the not the school administration, not the kid himself. Well, then the boy's gonna keep doing what he's doing. And so it's not surprising that were being tested by Iran by North Korea, by Russia by China, and they're getting more more aggressive because when we don't punch back, that's gonna happen. Now we don't have to punch back in cyberspace, right? A common sort of fetish about Cyrus is a >> response to the issue is gonna respond to the bully in this case, your eggs. Exactly. Playground Exactly. We'll talk about the Iran. >> So So if I If I if I can't Yeah, the response could be Hey, we could do this. Let them know you could Yes. And it's a your move >> ate well, And this is the key is that it's not just responding, right. So Bob Gates or told you we can't we talk about what we're doing. And even in the latest series of alleged responses to Iran, the reason we keep saying alleged is the U. S has not publicly acknowledged it, but the word has gotten out. Well, of course, it's not a particularly effective deterrence if you do something, but nobody knows you did it right. You gotta let it out that you did it. And frankly, you gotta own it and say, Hey, look, that guy punch me, I punch it back in the teeth. So you better not come after me, right? We don't do that in part because these cables grew up in the intelligence community at N S. A and the like, and we're very sensitive about that But the truth is, you have to know about your highest and capabilities. You could talk about your abilities. You could say, Here are my red lines. If you cross him, I'm gonna punch you back. If you do that, then by the way, you've gotta punch back. They'll let red lines be crossed and then not respond. And then you're gonna talk about some level of capabilities. It can't all be secret. Can't all be classified. Where >> are we in this debate? Me first. Well, you're referring to the Thursday online attack against the intelligence Iranian intelligence community for the tanker and the drone strike that they got together. Drone take down for an arm in our surveillance drones. >> But where are we >> in this debate of having this conversation where the government should protect and serve its people? And that's the role. Because if a army rolled in fiscal army dropped on the shores of Manhattan, I don't think Citibank would be sending their people out the fight. Right? Right. So, like, this is really happening. >> Where are we >> on this? Like, is it just sitting there on the >> table? What's happening? What's amazing about it? Hi. This was getting it going well, that that's a Q. What's been amazing? It's been happening since 2012 2011 right? We know about the Las Vegas Sands attack right by Iran. We know about North Korea's. We know about all these. They're going on here in the United States against private sector companies, not against the government. And there's largely been no response. Now we've seen Congress get more active. Congress just last year passed to pass legislation that gave Cyber command the authority on the president's surgery defenses orders to take action against Russia, Iran, North Korea and China. If certain cyber has happened, that's a good thing, right to give it. I'll be giving the clear authority right, and it appears the president willing to make some steps in that direction, So that's a positive step. Now, on the back end, though, you talk about what we do to harden ourselves, if that's gonna happen, right, and the government isn't ready today to defend the nation, even though the Constitution is about providing for the common defense, and we know that the part of defense for long. For a long time since Secretary Panetta has said that it is our mission to defend the nation, right? But we know they're not fully doing that. How do they empower private sector defense and one of keys That has got to be Look, if you're the intelligence community or the U. S. Government, you're Clinton. Tremendous sense of Dad about what you're seeing in foreign space about what the enemy is doing, what they're preparing for. You have got to share that in real time at machine speed with industry. And if you're not doing that and you're still count on industry to be the first line defense, well, then you're not empowered. That defense. And if you're on a pair of the defense, how do you spend them to defend themselves against the nation? State threats? That's a real cry. So >> much tighter public private relationship. >> Absolutely, absolutely. And it doesn't have to be the government stand in the front lines of the U. S. Internet is, though, is that you could even determine the boundaries of the U. S. Internet. Right? Nobody wants an essay or something out there doing that, but you do want is if you're gonna put the private sector in the in the line of first defense. We gotta empower that defense if you're not doing that than the government isn't doing its job. And so we gonna talk about this for a long time. I worked on that first piece of information sharing legislation with the House chairman, intelligence Chairman Mike Rogers and Dutch Ruppersberger from Maryland, right congressman from both sides of the aisle, working together to get a fresh your decision done that got done in 2015. But that's just a first step. The government's got to be willing to share classified information, scaled speed. We're still not seeing that. Yeah, How >> do people get involved? I mean, like, I'm not a political person. I'm a moderate in the middle. But >> how do I How do people get involved? How does the technology industry not not the >> policy budgets and the top that goes on the top tech companies, how to tech workers or people who love Tad and our patriots and or want freedom get involved? What's the best approach? >> Well, that's a great question. I think part of is learning how to talk policy. How do we get in front policymakers? Right. And we're I run. I run a think tank on the side at the National Institute at George Mason University's Anton Scalia Law School Way have a program funded by the Hewlett Foundation who were bringing in technologists about 25 of them. Actually. Our next our second event. This Siri's is gonna be in Chicago this weekend. We're trained these technologies, these air data scientists, engineers and, like talk Paul's right. These are people who said We want to be involved. We just don't know how to get involved And so we're training him up. That's a small program. There's a great program called Tech Congress, also funded by the U. A. Foundation that places technologists in policy positions in Congress. That's really cool. There's a lot of work going on, but those are small things, right. We need to do this, its scale. And so you know, what I would say is that their technology out there want to get involved, reach out to us, let us know well with our partners to help you get your information and dad about what's going on. Get your voice heard there. A lot of organizations to that wanna get technologies involved. That's another opportunity to get in. Get in the building is a >> story that we want to help tell on be involved in David. I feel passion about this. Is a date a problem? So there's some real tech goodness in there. Absolutely. People like to solve hard problems, right? I mean, we got a couple days of them. You've got a big heart problems. It's also for all the people out there who are Dev Ops Cloud people who like to work on solving heart problems. >> We got a lot >> of them. Let's do it. So what's going on? Iron? Give us the update Could plug for the company. Keith Alexander found a great guy great guests having on the Cube. That would give the quick thanks >> so much. So, you know, way have done two rounds of funding about 110,000,000. All in so excited. We have partners like Kleiner Perkins Forge point C five all supporting us. And now it's all about We just got a new co CEO in Bill Welshman. See Scaler and duo. So he grew Z scaler. $1,000,000,000 valuation he came in to do Oh, you know, they always had a great great exit. Also, we got him. We got Sean Foster in from from From Industry also. So Bill and Sean came together. We're now making this business move more rapidly. We're moving to the mid market. We're moving to a cloud platform or aggressively and so exciting times and iron it. We're coming toe big and small companies near you. We've got the capability. We're bringing advanced, persistent defense to bear on his heart problems that were threat analytics. I collected defence. That's the key to our operation. We're excited >> to doing it. I call N S A is a service, but that's not politically correct. But this is the Cube, so >> Well, look, if you're not, if you want to defensive scale, right, you want to do that. You know, ECE knows how to do that key down here at the forefront of that when he was in >> the government. Well, you guys are certainly on the cutting edge, riding that wave of common societal change technology impact for good, for defence, for just betterment, not make making a quick buck. Well, you know, look, it's a good business model by the way to be in that business. >> I mean, It's on our business cards. And John Xander means it. Our business. I'd say the Michigan T knows that he really means that, right? Rather private sector. We're looking to help companies to do the right thing and protect the nation, right? You know, I protect themselves >> better. Well, our missions to turn the lights on. Get those voices out there. Thanks for coming on. Sharing the lights. Keep covers here. Day one of two days of coverage. Eight of us reinforce here in Boston. Stay with us for more Day one after this short break.
SUMMARY :
Brought to you by Amazon Web service is Cube Alumni Bill Jeff for VP of strategy and the partnerships that Iron Net Cyber to see you. You guys, you're building a business. And it's really great to be here with eight of us were really close partner of AWS is we'll to defend a cloud network the way you would nonpregnant game changer Well, so you know, one of the key things about about a non pregnant where you could do you could look at all the flows coming What are some of the challenges that you see in cloud security but the great thing is, you got a whole ecosystem. You know, we all laughed, but you really start out in law, How did you end up here? That And so you know, I went from that and I in They they had to leave you at the end of the day. And I remember looking to see him like this is terrible. What are some of the most important things that you think should be on the table for techies? And one of the big outcomes, I think, has to come out of that conversation. And so the government has to have some role. And I was saying that we had a conversation with Robert Gates a couple years that that sort of is at the core of our economy at the core of the world economy. response to the issue is gonna respond to the bully in this case, your eggs. So So if I If I if I can't Yeah, the response could be Hey, we could do this. And even in the latest series of alleged responses to Iran, the reason we keep saying alleged is the U. Iranian intelligence community for the tanker and the drone strike that they got together. And that's the role. Now, on the back end, though, you talk about what we do to harden ourselves, if that's gonna happen, And it doesn't have to be the government stand in the front lines of the U. I'm a moderate in the middle. And so you know, It's also for all the people out there who found a great guy great guests having on the Cube. That's the key to our operation. to doing it. ECE knows how to do that key down here at the forefront of that when he was in Well, you know, look, it's a good business model by the way to be in that business. We're looking to help companies to do the right thing and protect the nation, Well, our missions to turn the lights on.
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Jamil Jaffer, IronNet | AWS Public Sector Summit 2019
>> Narrator: Live, from Washington DC, it's theCUBE. Covering AWS Public Sector Summit. Brought to you by Amazon Web Services. >> Welcome back everyone to theCUBE's live coverage of the AWS Public Sector Summit here in our nation's capital. I'm your host, Rebecca Knight. Co-hosting along side John Furrier. We are joined by Jamil Jaffer, he is the VP Strategy and Partnerships at IronNet. Thanks so much for coming on theCUBE. >> Thanks for having me Rebecca. >> Rebecca: I know you've been watching us for a long time so here you are, soon to be a CUBE alumn. >> I've always wanted to be in theCUBE, it's like being in the octagon but for computer journalists. (laughing) I'm pumped about it. >> I love it. Okay, why don't you start by telling our viewers a little bit about IronNet and about what you do there. >> Sure, so IronNet was started about 4 1/2 years ago, 5 years ago, by General Kieth Alexander, the former director of the NSA and founding commander of US Cyber command. And essentially what we do is, we do network traffic analytics and collective defense. Now I think a lot of people know what network traffic analytics are, you're looking for behavioral anomalies and network traffic, trying to identify the bad from the good. Getting past all the false positives, all the big data. What's really cool about what we do is collective defense. It's this idea that one company standing alone can't defend itself, it's got to work with multiple companies, it's got to work across industry sectors. Potentially even with the governments, and potentially across allied governments, really defending one another. And the way that works, the way we think about that, is we share all the anomalies we see across multiple companies to identify threat trends and correlations amongst that data, so you can find things before they happen to you. And so the really cool idea here is, that something may not happen to you, but it may happen to your colleague, you find about it, you're defended against it. And it takes a real commitment by our partners, our companies that we work with, to do this, but increasingly they're realizing the threat is so large, they have no choice but to work together, and we provide that platform that allows that to happen. >> And the premise is that sharing the data gives more observational space to have insights into that offense, correct? >> That's exactly right. It's as though, it's almost like you think about an air traffic control picture, or a radar picture, right? The idea being that if you want to know what's happening in the air space, you got to see all of it in real time at machine speed, and that allows you to get ahead of the threats rather than being reactive and talking about instant response, we're talking about getting ahead of the problems before they happen so you can stop them and prevent the damage ahead of time. >> So you're an expert, they're lucky to have you. Talk about what you've been doing before this. Obviously a lot of experience in security. Talk about some about some of the things you've done in the past. >> So I have to admit to being a recovering lawyer, but you have to forgive me because I did grow up with computers. I had a Tandy TRS-80 Color computer when I first started. 4K of all more RAM, we upgraded to 16K, it was the talk of the rainbow computer club, what are you doing, 16K of RAM? (laughing) I mean, it was-- >> Basic programming language, >> That's right. (laughing) Stored on cassette tapes. I remember when you used to have to punch a hole in the other side of a 5 1/4 floppy disc to make it double sided. >> Right, right. >> John: Glory days. >> Yeah, yeah. I paid my way through college running a network cable, but I'm a recovering lawyer, and so my job in the government, I worked at the House Intelligence Committee, the Senate Foreign Relations Committee and then the Bush administration on the Comprehensive National Cybersecurity Initiative, both the Justice Department and the White House. >> You've seen the arc, you've seen the trajectory, the progress we're making now seems to me slower than it should be, obviously a lot of inertia as Amy Chasity said today about these public sector government agencies, what not. But a real focus has been on it, we've been seeing activity. Where are we with the state of the union around the modernization of cyber and awareness to what's happening? How critical are people taking this threat seriously? >> Well I think I variety of things to say on that front. First, the government itself needs modernize its systems, right? We've seen that talked about in the Obama administration, we've seen President Trump put out an executive order on modernization of federal infrastructure. The need to move to the cloud, the need to move to shared services, make them more defensible, more resilient long-term. That's the right move. We've seen efforts at the Department of Defense and elsewhere. They aren't going as fast as the need to, more needs to happen on that front. IT modernization can really be accelerated by shifting to the cloud, and that's part of why that one of the things that IronNet's done really aggressively is make a move into the cloud space, putting all of our back end in the cloud and AWS. And also, ability, capability to do surveillance and monitoring. When I say surveillance I mean network threat detection not surveillance of the old kind. But network threat detection in the cloud, and in cloud-enabled instances too. So both are important, right? Classic data centers, but also in modern cloud infrastructure. >> Yeah, one of the things people want to know about is what your enemy looks like, and now with the democratization with open source, and democratization of tools, the enemies could be hiding through obscure groups. The states, the bad actors and the state actors can actually run covert activities through other groups, so this is kind of a dynamic that creates confusion. >> No, in fact, it's their actual mode of operating, right? It's exactly what they do, they use proxies, right? So you'll see the Russians operating, looking like a criminal hacker group operating out of the eastern Europe. In part because a lot of those Russian criminal rings, in actuality. You see a lot of patriotic hackers, right? I would tell most people, if you see a patriotic hacker there's probably a government behind that whole operation. And so the question becomes, how do you confront that threat, right? A lot of people say deterrence doesn't work in cyberspace. I don't believe that. I think deterrence can and does work in cyberspace, we just don't practice it. We don't talk about our capabilities, we don't talk our red lines, we don't talk about what'll happen if you cross our red lines, and when we do establish red lines and they're crossed, we don't really enforce them. So it's no surprise that our enemies, or advisories, are hitting us in cyberspace, are testing our boundaries. It's cause we haven't really give them a sense of where those lines are and what we're going to do if they cross them. >> Are we making an progress on doing anything here? What's the state of the market there? >> Well the government appears to have gotten more aggressive, right? We've seen efforts in congress to give the Department of Defense and the US Intelligence Committee more authorities. You can see the stand up of US Cyber Command. And we've seen more of a public discussion of these issues, right? So that's happening. Now, is it working? That's a harder question to know. But the real hard question is, what do you do on private sector defense? Because our tradition has been, in this country, that if it's a nation-state threat, the government defends you against it. We don't expect Target or Walmart or Amazon to have service to air missiles on the roof of your buildings to defend against Russian Bear bombers. We expect the government to do that. But in cyberspace, the idea's flipped on its head. We expect Amazon and every company in America, from a mom and pop shop, all the way up to the big players, to defend themselves against script kiddies, criminal hacker gangs, and nation-states. >> John: And randomware's been taking down cities, Baltimore, recent example, >> Exactly. >> John: multiple times. Hit that well many times. >> That's right, that's right. >> Talk about where the US compares. I mean, here as you said, the US, we are starting to have these conversations, there's more of an awareness of these cyber threats. But modernization has been slow, it does not quite have the momentum. How do we rate with other countries? >> Well I think in a lot of ways we have the best capabilities when it comes to identifying threats, identifying the adversary, the enemy, and taking action to respond, right? If we're not the top one, we're in the top two or three, right? And the question, though, becomes one of, how do you work with industry to help industry become that good? Now our industry is at the top of that game also, but when you're talking about a nation-state, which has virtually unlimited resources, virtually unlimited man-power to throw at a problem, it's not realistic to expect a single company to defend itself, and at the same time, we as a nation are prepared to say, "Oh, the Department of Defense should be sitting on "the boundaries of the US internet." As if you could identify them even, right? And we don't want that. So the question becomes, how does the government empower the private sector to do better defense for itself? What can the government do working with industry, and how can industry work with one another, to defend each other? We really got to do collective defense, not because it makes sense, which it does, but because there is no other option if you're going to confront nation-state or nation-state enabled actors. And that's another threat, we've seen the leakage of nation-state capabilities out to a lot broader of an audience now. That's a problem, even though that may be 2013 called and wants it's hack back, those things still work, right? What we saw in Baltimore was stuff that has been known for a long time. Microsoft has released patches long ago for that, and yet, still vulnerable. >> And the evolution of just cyber essential command, and Cyber Command, seems to be going slow, at least from my frame. Maybe I'm not in the know, but what is the imperative? I mean, there's a lot of problems to solve. How does the public sector, how does the government, solve these problems? Is cloud the answer? What are some of the things that people of this, the top minds, discussing? >> Well and I think cloud is clearly one part of the solution, right? There's no question that when you move to a cloud infrastructure, you have sort of a more bounded perimeter, right? And that provides that ability to also rapidly update, you could update systems in real time, and in mass. There's not going around and bringing your floppy disc and loading software, and it sounds like that's sort of a joke about an older era, but you look at what happened with NotPetya and you read this great Wired article about what happened with NotPetya, and you look at Maersk. And the way that Maersk brought its systems back up, was they had domain controller in Africa that had gone down due to a power surge, where they were able to recover the physical hard drive and re-image all their world-wide domain controls off of that one hard drive. You think about a major company that runs a huge percentage of the world's ports, right? And this is how they recovered, right? So we really are in that, take your disc and go to computers. In a cloud infrastructure you think about how you can do that in real time, or rapidly refresh, rapidly install patches, so there's a lot of that, that's like a huge part of it. It's not a complete solution, but it's an important part. >> Yeah, one of the things we talk about, a lot of tech guys, is that this debate's around complexity, versus simplicity. So if you store your data in one spot, it's easy to audit and better for governing compliance, but yet easier for hackers to penetrate. From an IQ standpoint, the more complex it is, distributed, harder. >> Yeah I think that's right. >> John: But what's the trade off there? How are people thinking about that kind of direction? >> No that's a great question, right? There's a lot of benefits to diversity of systems, there's a lot of benefit to spreading out your crown jewels, the heart of your enterprise. At the same time, there's real resilience in putting it in one place, having it well defended. Particularly when it's a shared responsibility and you have partial responsibility for the defense, but the provider to, I mean, Amazon, and all the other cloud providers, Microsoft and Google, all have it in their own self interest to really defend their cloud really well. Because whether or not you call it shared responsibility, it's your stock price that matters if you get hit, right? And so, instead of you, Amazon, and all the other cloud players have an incentive to do the right thing and do it really well. And so this shared responsibility can work to both side's benefits. That being said, there's an ongoing debate. A lot of folks want to do there stuff on-prem in a lot of ways. You know, a lot of us are old school, right? When you touch it, you feel it, you know it's there. And we're working through that conversation with folks, and I think that at the end of the day, the real efficiency gains and the power of having super computing power at your fingertips for analytics, for consumer purposes and the like. I really think there's no way to avoid moving to a cloud infrastructure in the long run. >> I know you said you were a recovering lawyer, but you are the founding director of the National Security Institute at the Antonin Scalia School of Law. How are you thinking about educating the next generation of lawyers who could indeed become policy makers or at least work on these committees, to think about these threats that we don't even know about yet? >> That's a great question. So one of the things we're doing, is we're working through the process with the state commission on establishing a new LLM and cyber intelligence national security law. That'll be a great opportunity for lawyers to actually get an advanced degree in these issues. But we're also training non-lawyers. One of the interesting things is, you know, One of the challenges DC has, is we make a lot of tech policy, a lot of it not great, because it's not informed by technologists, so we've got a great partnership with the Hewlett Foundation where we're bringing technologists from around the country, mid-career folks, anywhere from the age of 24 to 38. We're bringing them to DC and we're educating them on how to talk to policy makers. These are technologists, these are coders, data scientists, all the like, and it's a real opportunity for them to be able to be influential in the process of making laws, and know how to involve themselves and talk that speak. Cause, DC speak is a certain thing, right? (laughing) And it's not typically consistent with tech speak, so we're trying to bridge that gap and the Hewlett Foundation's been a great partner in that effort. >> On that point about this collaboration, Silicon Valley's been taking a lot of heat lately, obviously Zuckerberg and Facebook in the news again today, more issues around irresponsibility, but they were growing a rocket ship, I mean, company's only 15 years old roughly. So the impact's been significant, but tech has moved so fast. Tech companies usually hire policy folks in DC to speak the language, educate, a little bit different playbook. But now it's a forcing function between two worlds colliding. You got Washington DC, the Silicon Valley cultures have to blend now. What are some of the top minds thinking about this? What are some of the discussions happening? What's the topic of conversations? >> Well look, I mean, you've see it in the press, it's no surprise you're hearing this talk about breaking up big tech companies. I mean, it's astounding. We used to live in world in which being successful was the American way, right? And now, it seems like at least, without any evidence of anti-trust concerns, that we're talking about breaking up companies that have otherwise hugely successful, wildly innovative. It's sort of interesting to hear that conversation, it's not just one party, you're hearing this in a bipartisan fashion. And so it's a concern, and I think what it reveals to tech companies is, man, we haven't be paying a lot of attention to these guys in DC and they can cause real trouble. We need to get over there and starting talking to these folks and educating them on what we do. >> And the imperative for them is to do the right thing, because, I mean, the United States interest, breaking up, say, Facebook, and Google, and Apple, and Amazon, might look good on paper but China's not breaking up Alibaba anytime soon. >> To the contrary. They're giving them low-interest loans and helping them all to excel. It's crazy. >> Yeah, and they have no R&D by the way, so that's been- >> Jamil: Right, because they stole all of our IP. >> So the US invests in R&D that is easily moving out through theft, that's one issue. You have digital troops on our shores from foreign nations, some will argue, I would say yes. >> Jamil: Inside the border. >> Inside the border, inside the interior, with access to the power grids, our critical infrastructure, this is happening now. So is the government now aware of the bigger picture around what we have as capabilities and criticalities that were needed now for digital military? What is that conversation like? >> Well I think they're having this conversation, right? I think the government knows it's a problem, they know that actually in a lot of ways a partnership with tech is better than an adversary relationship. That doesn't change the fact that, for some reason, in the last three, four years, we really have seen what some people are calling a "techlash", right? A backlash against technology. It kind of strikes me as odd, because of course, the modern economy that we've so benefited from is literally built on the back of the innovations coming out of the Silicon Valley, out of the west coast, and out of the DC metro area, where a lot these tech companies are developing some of the most innovative new ideas. Now they're, frankly, helping government innovate. So Amazon's a key part of that effort, right? Here in the public sector. And so I'm hoping that education will help, I know that the arrival of tech companies here to really have that conversation in an open and sensible way, I hope will sort of waft back some of this. But I worry that for too long the tech and the policies have ignored on another. And now they're starting to intersect as you say, and it has the possibility of going wrong fast, and I'm hoping that doesn't happen. >> You know, one of the things that Rebecca and I were talking about was this talent gap between public sector and private sector. These agencies aren't going to go public anytime soon, so maybe they should get equity deals and get a financial incentive. (laughing) You know what I mean? Shrink down the cost, increase the value. But as you get the collaboration between the two parties, the cloud is attracting smart people, because it gives you an accelerant of value. So people can see some entry points to land, some value out of the gate, verus giving up and abandoning it through red tape, or in other processes. So you starting to see smart people get attracted to cloud as a tool for making change. How is that working? And how is that going to work? Cause this could be coming to the partnership side of it. People might not want to work for the government, but could work with the government. This is a dynamic that we see as real. What's your thoughts? >> I think that's exactly right. Having these cloud infrastructures gives the ability to one, leverage huge amounts of computing power, but also to leverage insights and knowledge from the private sector in ways that you never could have imagined. So I really do think the cloud is an opportunity to bring real benefits from private sector innovation into the public sector very rapidly, right? So, broad-clouded option. And that's part of why John Alexander, my boss, and I have been talking a lot about the need for broad-clouded option. It's not just innovative in technology, it's benefits to the war fighter, Right? I mean, these are real, tangible benefits pushing data in real time, the war fighter, You know John Alexander had one of the biggest innovations in modern war fighting, where he's able to take civil intelligence down from weeks and months, down to minutes and seconds, that the naval and our war fighters in Iraq and Afghanistan to really take the fight to the enemy. The cloud brings that power scaled up to a huge degree, right? By orders of magnitude. And so the government recognizes this and yet today we don't see them yet moving rapidly in that direction. So I think the EO was a good move, a good first step in that direction, now we got to see it implemented by the various agencies down below. >> Well we'll kep in touch, great to have you on. I know we're wrapping up the day here, they're breaking down, we're going to pull the plug literally. (laughing) We'll keep in touch and we'll keep progress on you. >> Thank you so much, I appreciate it. >> Rebecca: Jamil, you are now a CUBE alumn, >> I love it, thank you. >> Rebecca: So congrats, you've joined the club. >> I love it. >> I'm Rebecca Knight for John Furrier you have been watching theCUBE's live coverage of the AWS Public Sector Summit. (electronic music)
SUMMARY :
Brought to you by Amazon Web Services. of the AWS Public Sector Summit here in so here you are, soon to be a CUBE alumn. it's like being in the octagon but for computer journalists. a little bit about IronNet and about what you do there. And so the really cool idea here is, ahead of the problems before they happen Talk about some about some of the things So I have to admit to being a recovering lawyer, punch a hole in the other side of a 5 1/4 floppy disc both the Justice Department and the White House. around the modernization of cyber that one of the things that IronNet's done Yeah, one of the things people want to know about is And so the question becomes, how do you We expect the government to do that. Hit that well many times. it does not quite have the momentum. the private sector to do better defense for itself? And the evolution of just cyber essential command, And the way that Maersk brought its systems back up, Yeah, one of the things we talk about, and all the other cloud providers, Microsoft and Google, the Antonin Scalia School of Law. One of the interesting things is, you know, What are some of the top minds thinking about this? to these folks and educating them on what we do. And the imperative for them is to do the right thing, To the contrary. So the US invests in R&D that is So is the government now aware of the bigger picture I know that the arrival of tech companies here You know, one of the things that Rebecca and I And so the government recognizes this and yet today pull the plug literally. Thank you so much, Rebecca: So congrats, of the AWS Public Sector Summit.
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StrongbyScience Podcast | Cory Schlesinger, Stanford | Ep. 2 - Part Two
>> No, that makes total sense. You've got me thinking a little bit. You see some of this right now going on general fitness and these thirty six minute classes will fit thirty six is awesome there. Big group No. One, their trainers. And they do a really good job of it. But the onset of maybe not such, um, high intensity aspects that you're doing. But you're promoting motor patterns, right? So it's not like, Okay, let's train for thirty six minutes. Generally was trained for forty five minutes. Let's train for an hour. But let's have a specific program that we're picking on to develop an athlete and push him in direction. So I mean by that is, I kind of see this in this is my attempt to digest cores. Mind not break it down and bring her with me. I thought you'd like to roost e a seven day period. And then you said in this period, I want to accomplish, you know, thiss five sets off total or five sets of ten reps and back squat and then your micro dose in mind like you, you slice it up, and so all of a sudden it doesn't become a five by ten because fifty total wrapped trying to get you won't take that ten reps here and twenty wraps here and maybe five reps here, and you put it in different ways. So if you look at it holistically, it's this very on the certainly first. See, it looks almost just organized, but looks like a lot happening at once. When you take us back, you look at a full truck, the full pies there, and so people they come and see me one of your workout So they see on Instagram that, oh, it's just Korea Doing, you know, appears to be basic patterns that kind of seem random. But really, you said, Okay, this is my goal. This is what I want from these guys and you're taking a step back. You applied it in a very strategic way. So it's not just people say, Oh, it's a fitness class. No, First off, Micro does seem just That's if I like, you know, a thirty minute workout. It's a thirty minute directed work out with the candle quantifiable goal over Baghdad, a period of time. Is that a fair assessment? I dove into the brain of Cory. No, my deal >> looked like this. Lookit. Let's look at another population. We look at prisoners when they go to the yard. How much time do they have a day? All right, >> You know what, >> Right. That's what I'm saying. Like, it's not a lot like they're locked up in a cell for the whole day. So when they go to the yard, they go ham on whatever's available, it ain't like they got this nice little hole like, Okay, we're going to do from squads. And they were gonna go to bench and they were going to Arlo, and we're going to do no. They pick something that is available and they go ham on it for an hour, and they're on really terrible food and really terrible environments, but tend to get really strong. Okay, well, that makes sense. So and you know what? They do it again the next day and the next day and the next day. So I'm not saying we're trained like prisoners, But what I'm saying is there's a reason why if I was to tell any elite level lifter, OK? All you can do today for thirty minutes is squad. What do you think's gonna happen? They're going to go heavy often. And they're going to be able to be fresh the next day to do the same thing. I mean, no one leaves a power lifting meet the next day saying, Oh, time to go train again. No, their body is trashed, right? Because of all the intensity that they didn't through multiple movements. Same idea, right? All I'm doing is isolating it. So, for instance, I'm looking for a specific response. If I want to train relative string, I want to find a movement that they can move a lot of way, obviously not through a high speed. And that's the movement we're going to do. If I want a absolute velocity, for instance, Woodchuck and Tendo terms, I want them to be very elastic. Reactive owned him to move very, very fast. Then I'm gonna pick a movement, say, like a barbell squad job. Maybe it's a credible swing. Maybe it's throws and then they're going to go ham on that. But if you just take that one isolated lift, I don't care. If you do tend doubles at it, you're not going to be that sword, especially if you've been doing this for over a year. First start the preseason. We gotta look at stress holistically. The biggest stress they have is basketball. So the last thing I'm going to do is beat them down. And here I'm just going to make sure that we'Ll stay on the cart. So you look at our total volume. It looks something like four sets of four. But by the time we're at the end of the season January, February, March, we're hitting our P R's and reason why we're hit Rp. Ours is because we've made this huge reservoir of stress that they're able tto handle. So now practises cut in half. So I have more reserves in the weight room. So that force that's afore we were hitting for those compound movements in preseason. Well, now they look like ten sets of doubles or twelve sets of singles because they have that reservoir. So now we're expressing in a controlled environment faster weights have your weights at the time of year that we're looking for those adaptations so that now we're quote unquote stronger and faster. We're trying to win the championship, not tryingto win it and the summer, which you generally see like thereby sent PR is before they go home and summer. Well, that's great. And then they go into their maintenance program for the season, which last six months. Can you maintain anything for longer than six? No, you can't, like, maybe your oil, but you've not wantto patients, you know? I'm saying so. You know, that's that's where it really came down to is I'm trying to find the best means to produce performance, >> so I'm on times Lower standard. Yeah. Please do not mind around it. So I get it correct. Nowhere earthly it's looking at How do we given work out at that? Fits? The current state needed the athlete, so Okay, there begin the year, right? Their capacity only so localize outside stressors to fit in the workout around the other twenty three hours. Right? And then you're applying a stressor that's heavy enough, but not too light. And you do it. I'm not not overly fatigued them, but at least stimulate them. So you working guide rails? Not a written in stone. A type of thing, >> right? Yeah. So yeah. Yeah. How Basically how I how I keep the best part of the best way to put it is what I've done this year that I haven't done in the past is abuse Tendo Units, I'm just That's my way of just monitoring. How about speed? Okay, Cool, because load is one thing. But once again, how do you move that load now? We're not We're not dicing up like, Oh, it's point seven. You're supposed to hit point five like up. You know, add thirty kilos or vice versa, right? Like you're not exact. But if you're within a range, it gives me a whole lot of details, all right? And then you're basically all we do from that point is record the wait, not the speed. I just keep them in a certain zone. Stay within this. You, for instance, our strength speed or a relative strength and strength. Speed movements can't go anything more than triples our speed, strength and are absolute velocity. You can't go anything over five reps. If you hit quote unquote those triples or those fives, then the next time you come in, guess what we get to upload if you're not above that was going to stick with the same load. And if you prove it within your early work sex, then we'LL have a little bit alert. But that's our way of day to day, keeping them on the road, if you will. >> No, that makes sense. Do I couldn't agree more. I see it carrying over so well. Universally way you looked at the origins of strength training and we're like Oh, came from Russia and even your ever pashanski for those people aren't nerds like myself. Russian sports science even started like appeared ization. It's kind of a made up thing, right? So one hundred percent made up haven't made up and it kind of came from the four years cycle of Russia itself. America takes that andan. What happens is you get the the non athlete world's intelligent public world. Everything is monetized, right? So it's like, Okay, we know that training really heavy every days and probably a good. So we're going to make these things called, you know, in small little workouts that might last twenty five minutes are our six minutes, you know, have a shrink it as Lois and possibly can. But no, let's make it not necessarily difficult, but challenging. Um and we make money office. We labeled something different and you see different fitness fads come off when I come and go. But a lot of because I got the capitalistic market monetization. People try to make money off of things. But that really does him from, like the athletic side. If you're thinking about Hey, I'm Cory. I'm dealing with Alex. I don't know how they're going to walk into my door today. I don't know if they're going to be high lower, you know, just normal. How can I then give myself the opportunity to provide environment where they can work successfully and and what you do, which is really cool, And I find it really inspiring kind of cheesy word. But you give a lot of ownership to all your athletes when it comes to selection of exercises and movements. And I find that to be something that we don't say. We as in the general world of anything sports, science and fitness don't always like to do. Um, and you say Okay, you know, credit. I'm wrong, Corey to I don't want take worth mountains, him incorrectly. Just so you know, here's a pattern and maybe select one of these three exercises that you feel like gets you ready. And what's so great about that? It removes the constraints of this exercise is the best. You know, this is the golden exercise and really, I mean you and I know it, but we want to feel good. We would always have a bench press when I came in town, but absolutely, it's like, Okay, let's let's really understand that it's not really a difference between Aback Squad versus upfront squad versus may be something of a trap, our poll, especially if you're using it to get the athlete ready. So talk. If you could talk a little bit about how you decide some of that and what led you down that path and giving those athletes that kind of ownership and understanding of you know, I want to do this versus I have to >> do this right? I mean, to me, autonomy is everything, because what you generally see and it's to me, it's almost criminal is everyone gets the piece of paper. They fill it out with me you get, then you do the same thing, right? You get that piece of paper the next day, fill it out. Get that piece of paper. Next thing, fill it out. And then four years later you go. Well, I'm leaving now. Where's my piece of paper For the rest of my life. Oh, so you didn't really learn how to train, did you? You didn't really learn what worked for you. You didn't really In the really issue is like I deal with crazy, different levers. I mean, I got guys that are five eight all the way to seven foot. So you can't tell me there's a golden exercise that it doesn't exist in my world. >> I >> like knowing you're on. I would love to have everybody do the exact same thing. They love doing it. And they all do it very, very well so that I can have my little lab and I can have my control and I can show. Hey, guys, look how much better we got this year because of my implementation. Bax Wass What? What does that say? That says that I care more about what I'm doing more than what's best for that athlete and what they're doing if you really the real reason why I got to this autonomy stage is when I realized what I do is such a small percentage of their overall success and the reason why I say that I'm not necessarily saying I agree with hit or disagree with Hit, but you could have a hit program. You could have an Olympic based program. You could have your holistic based program, whatever you want to say, and I see the hit program Win a national championship and I'm like, what happened? Like I don't agree with that program, but they won well, it's all about it's all about the dude's. So if I can give quote unquote my dudes the best training environment that works for them. So what I mean by that is Look, here's a squad. You hate doing back squats because the bar on your back, it's jerking the hell out of your shoulders because you don't like to be an external rotation will. Then maybe I'm just going to hate. How about this Bar safety squad bar that feel better? Cool court. My knees are super tender away. It's basketball. Everybody's needs at some point this season, every a super tender last thing I'm going to do is put them in an environment. Teo, flame up those tendons so that they can't perform at a higher level on the basketball court. So what are we going to do? Well, let's Hinch, how about we just do some already? L stay. How about we do some kettle bell swings? Maybe some tribe are dead. Lift. It doesn't necessarily have to be this golden exercise that everybody fits in. And I think really what it stands from is that strength coaches got approved to their sport coaches that we'll look at, our numbers go up and they have to have a control to do that. And the exact opposite. It's a sport. Coaches coming down saying one of our guys bench. Well, if our sport coaches cares so much about bench press, well, then what do you think I got to do? Well, I gotta bench my guys so we could get those numbers so I could look like, you know, I'm validated my job. Well, how about we take something that's oh, universally accepted. So how about a counter movement? Jump out force plate. Now, I'm not saying everybody has forced plates, but you could just use jump height. Friend sits. Who cares how you got there? As long as you are trending right, that's all that matters. Why should we be fixated to a certain methodology or a certain pattern or not? Pattern but exercise. Just give them a pattern, let him choose. And to be honest with you, if it feels right, it's going to fly, right? If it feels good to do attract bar squat, opposed to doing a front squat well, they're probably gonna put more load and they put more load that I'm going to get the stress response adaptation. If I don't like the front squat because it's choking me the hell out. Well, then I'm probably not going to put his much load on it. Now, I have a negative connotation now have all these internal stress is going on, and then I'm gonna have a weird as look atyou, saying I don't like what we're doing in here. So now you think the quote unquote Byeon is going to be there. So now we're not getting any stresses that are going to give me that positive adaptation I'm looking for. So at the end of the day, if I can give them the education tto, learn how to do these movements and how to choose for themselves, well, then now it's not just what they did here for four years. I just gave them skills for the rest of their life. And if they're good enough to play pros now, they can take that and they can articulate it to the next coaching stuff so they could do a better >> job. No, that's that's awesome, man like this. A lot of things I want. I head into their I'LL keep it all Diamond all nine hundred promised. But I couldn't agree more and one of things that you say, you know, let's have a king P I They said jump high, for example, a point of reference. Then let's not care what we d'Oh, to the extent I mean not care. But let's not constrain ourselves of what we dio in order to improve that k p I. So the way I think about it, it's kind of like you ever use waze before that? Yes, that we got right. It knows to things and knows where you are. It knows where you were. If you're driving, it knows where you're going. Road. And then as okay, all I care about getting to point B So it will take you on detours left and right. Little Granny is driving slow in front of you for the pothole. If whatever is going to find the best way to get there, it doesn't care how it gets there, right, Right. And so work that it's say, OK, let's get the sevens environment where we can learn. And we know we need to get to be for me. And I'm not gonna say to go in a straight line because you might go through building and crashing hit pedestrians. We're gonna find a way to get to be. We're going to find a way that makes sense for the athlete and yourself. So my teaching them, you know, let's have you like and learn to do some of these movements then don't know taking a left at this next stop light to get to point B will be quicker than you saying go straight because they're the one in the driver's seat, right? And if that educational environment where you start to look at this a really complex system, her planting a really simple abie model and apply it to something as complex as the human body so that we can learn. And the example I give. It's like, you know, the ways part like, that's the more complex and assumptions we make more room for aeri half All right, we'Ll screw this. We assume that the sumo gets here. Well, if we assume in order to get to A to B, we got a one a two a three a four, a five. But any point on the line that, you know, assumption breaks, we don't get to be all right, you guys, you stuck at a whatever and doing. You know, we have to follow this waterfall method. It's very much a living method where things come in, things come out, things make you change. But you know what? You want to go? I >> mean, it's we work in team sports. Like the only objective we are the only objective that matters is wins and losses, period. Right? So if I wasn't a stopwatch sport, maybe my mind would change a little bit, right? Maybe I got okay. We need to drift towards this because literally it's did you get faster? Did you not get faster? Right? Swimming whatever you're doing, maybe these are the things we need to do more often to make that happen. But I'm dealing with incompetent. I mean great human beings, but just physically incompetent. There's still learning about their bodies were still growing into their bodies. I think it's the most arrogance thing that a strength coach could do is to say, Here's a program that's gonna get you better for six weeks. What? What is that? Even here's a block that's going to get youto point me. How do you know Like, till you know Saddamist like, can you honestly tell me that following this six week plan is doing that? Hey, they got sport practice. They got exams, they got pick up your tell me none of those factors could potentially there off your little plan or that your little plan can go up. They're KP eyes, if you will, or their Their goal is just a play basketball. So that to me, that's where as this thing, it's like the most arrogant thing in our field and it just drives me up the wall. But the other day, like I got a sport coach who has all the faith in the world of me gives me the keys to the castle. He just tells me, Do what you think is best. I I report the numbers that he doesn't even know he needs. That's what's awesome about he's like Chord. I just trust you like these were things that I want to see my guys do. We want a quote unquote play fast. Well, okay, here's some standards that we can set And these Airways that we know we got quote unquote faster. Now, from the technical tactical aspect, that's where you guys come in and you guys got it. Apply what you think is best to make that happen, right? But I gave you the physical requirements. I told you exactly what you need to get done and how we got there. Now you guys apply the technical tactical aspect. And then there we go. Now we have a happy marriage is long as I can supply valuable information. It doesn't matter what the information ISS, and that's where everybody gets stuck on these controlled environment numbers like like looking, swatting inventions like Who cares? Like Who cares about written load? Load gets you to here right after that, it's all about It's all about speed. It's all about rhythm coordination, your vestibular system that there's so many things that go into making. You better not just, uh, put three fifteen on the back squat suite. No, >> that's you know. Yes, yes, I agree. I'm not going to deviate too far. My ma, you know how I work or my mind races and I don't go in straight lines. I apologized immediately. Good. I was thinking about your friend mentioned earlier. It was everything that this lately, too. People who've been the private sector's I work in personal training, and I worked in exercise clinic for two and a half years. Iowa State, where don't older adults randall off cool testing on them. But ultimately they showed up because they enjoy it. And one things that I think we I don't mean We have everybody some people forget is that it needs to be enjoyable back. And when you're in a private sector and you're literally your food is the ability for something to come back to you. Hey, it's really different and you start. You said Okay, you know what exercise and movement do you like, and then you manipulate How do I make that exercise the most effective exercise for that person? And that's what you kind of mentioned with the educational process for your athletes. You're taking this approach. Where? How did you get them to win? Firstly, they gotta want to be here, but they don't want to be who I try hard. And secondly, no Adam, take ownership of these movements. I really like that concept because it's really melting in the world of Hey, you're here. You have to get better. But everyone knows when you want to get better. Vs have to get better, right? The be out a little different and unusual marks Lefton excited to move. I just keep thinking about that from like the private side. That's really where, like the general public, and you could deal with great Alan to deal with a lot of athletes who really want to be there. But unfortunately, majority the world doesn't want to work out like they're they're not interested, and I hate to make an assumption, but it's hard not to think that it's either them not knowing or them intimidated that have to do something in there, right? Right. I'm like that mindset a beam to apply. Okay, let's have an ownership model that drives it, because if you talk to people, her successful personal trainers, they have a way to make sure people come back. Oh, for should join a box in a way that a strength coach you're no environment might not even have to be exposed to just because it's the nature of >> well, for me, like the off season. I mean, when I get a freshman, that's a great thing about basketball. But I get a freshman. I mean, maybe they picked up some weights like a B. There's still just such a greenhorn in the weight room. They don't know what's good and what's bad, right? So, essentially the off season is a little bit of dictatorship like Sorry, I'm to tell you what to do because you don't know shit, right? But the goal is to earn that autonomy as well. So, you know, my guys that are kind of like slaps like for the whole offseason. Well, their leashes a lot tighter like Nah, bro, you're going to do this because I know you need to do this. You have earned the right to have that a top. So I want to make sure that that's, like pretty clear, too, because if you just give autonomy all day and there's going to run over you. But the one aspect that I think that is so important with our autonomy is it's my biggest performance enhancer, and I actually had dated Approve it. Like if I just look at my C M J members from our force plates once again. Yes, there are some maybe eight sets of doubles or six sets of triples or whatever, right? But once again, that is Tendo based, like to a certain agree with most of our movement. So you know, it could be a triple. It could be a double. It could be a single. It depends on where they fall in on along those lines, but essentially the flexibility of the sets and wraps, the unbelievable latitude of the movement pattern that they're doing. But yet counter movement jumps in February. They are p r ng, not season. P R's. I'm talking life top ers Guys that have been here for three years are hidden from nineteen point one to twenty six point four. I can't say names the twenty six point four in February. So what does that say? It says that my biggest performance enhancer is the kids saying I want to do that. Cool. That's what we're going to do. >> No, I love it that zik perfect. If you want to be there, you're intense. Going to be high. You're going to try harder. You're going toe actually care about what you d'oh and that mindset really house dr an aspect of performance that otherwise we can't because all internal right korea we really started wrapping up towards the end you buy a couple questions for you before you go yourself thank you i appreciate it it's always good to have you next way clich a weekly cycle korea >> will make a >> record you know fire i slowly thanks for having you guys we wanted to come with because you're a scientist I mean, if you had to share a bitter fight and this is to anybody and this isn't their coach, Jenny, where nobody is looking to enhance their fitness, their performance, um, their overall well being You that with activity, right? How is what would you advise someone to get into and regards Tio training our house to someone Initiate That's on top of the micro dose in a kind of giving that much of credit here, obviously some e How does someone injured? I heard it put that way and I'll get straight to the point that one look into into exercise probably should do some form of micro dose in to see if you even like it everyone to overdose. How do they start that process if they're not athletes per se how they decide where they began? >> Well, essentially is what do you want to end up like, What's the what's the point beyond ways, right? Do you just want to look aesthetically better? How aesthetically do you want to look? Do you wanna look like a big body voter? Do you want to look like a swimmer? What do you want to look like? And I think that the vein than fan ity. And I mean, that's what drives my basketball players there in tank tops here around. Of course, they want nice arms. Right? So there's certain things that you gotta know. Like, I want to look like this. Now, some of the performance guys, Maybe I wantto sprint faster or jump higher. Like that's a whole another aspect. But we're talking about general population number one. What do you wanna look like? Okay, so if I'm three hundred pounds and I want to lose some body fat for my own general health and I want to, you know, be more presentable, if you will. And smaller clothing. Well, then maybe just walking ten minutes every day, and then you start adding layers to it, So Okay, You know what I mean? Killing these walks. How about we go Stairmaster? Okay, that's a little tougher. Okay, how about we introduce maybe some med ball exercises because that's not necessarily too complex to do that. I can do it through different ranges. It's easy to manipulate. Okay, Now, let's take a dumb bill or kettle bill. Then we work our way to a bar bill and now. Oh, man, what do you know? I just dropped one hundred pounds and in them. Oh, before all of that eating. But like, we're just talking about the physical aspects, but as far as that, where do you want to be? Okay, I want to look like Brad Pitt. OK, for one, get plastic surgery. But if you want to look cool air at Brad Pitt and Fight Club Okay, well, these are the things that I need to do. So let's reverse into near the process, okay? He cut his little jack, so that means he's got muscular strength. OK, cool. So that means weights are going to get involved at some point we'll he got really lean for this too. So my general fitness sucks. Maybe I just need to start with walking. Maybe a jump rope, maybe just medicine Ball toss is something that's super easy. The number one. What's going to make me more consistent? What consistency is goingto win? It's not. They'll work out you do that's going to make you go from a counter movement jumped a nineteen point one to twenty six point for It's the consistency that got you there. All right. That was a two year process for that kid. Just to get to that point, right? If you try to hijack the system, if you try to go, I want to get from point A to point Z like that. Well, you're going to run into multiple things. One possibly injury and two. What's the real reason why you're Russian? The real reason why you Russians, Because I don't want to be there in first place. Now you've just ruined the whole concept. Now you've just ruined the journey. To me, that is much more important. Like when I used to be a fake body motor, if you will, that when I try to get ready for shows. I don't remember the show at all. The only thing I remembered was those nights where I was damn hungry those mornings where I had to get up, do my quote unquote fasted cardio meal prep backs without remember only big. How I was on stage for forty five seconds like that was twelve weeks for forty five seconds. Right? So that's where you gotta understand like it's the beauty or what is it that Jake whole line of the beauty is in the is in the cash. Basically what? The thing that you want to fall in love with the most is the adversity that they were going to fall in love with the most is the stressful points. That's what's going to create the beauty, if you will remember that Jake Colon. But essentially, that Google >> search really quick pressure that the Brad Pitt Fight Club I >> mean, that dude was solid, Man, that was a solid right. May like Brad Pitt. He was a pretty boy until fight club. And I was like, Yo, that is some white trash. I would not mess with him. He can go. >> Uh, great. I love it. Lastly, Yeah. Course lesson. Where do we find you? On social media and other venues? Assault media were coming here more than beauty and wonder himself. >> Yeah. So Instagram is probably what you can find me on the most slash strength as C h L E s strength. You could find me there pretty active on it. You want to see so naked cats? So to sphinx, with my beautiful wife and ah, multiple podcast. I'm on a lot of different podcast that you just Google. I, too, are goingto iTunes type in my name. You'LL find many other platforms where I go into a lot more depth about how we train on And then, of course, speaking engagements. I do multiple speaking, engage with the nationally and internationally. And so there's opportunities to meet me in person there. >> There's beauty in the struggle. >> There is beauty in the struggle. This beauty >> I got my end. >> Yes, there is beauty in the struggle. That's when they >> get here in Britain, right? Right there. Where >> you Brooks. But there's beauty in the struggle >> A lasting well, Korea appreciate you have coming on here. I mean, I hope something useful. I >> was one hundred percent. My pleasure, Max. I love working with you, man. >> Now you do. And anybody curious about Corey? I mean, I really encourage checking out his social media. Yeah, I know. It's a lot of crazy stuff on Instagram that is really thought provoking. Put it that way and I can't believe it. Oh, my goodness. I can't let you escape Korea quite yet. >> Well, what you got? >> Uh, whole off the exit. Give me five minutes on it. I was going to ask his social media is going to ask. Yeah, way rehab itself. Yeah, to spring loaded monster man who means you want to share a little bit on this because I know you have been doing this yourself. Yeah, this is it in chorus singer based Achilles program. I love some of the actors. I love thee, not the unloaded foot contact under your hand motion who was seen Alice into this isn't the course in a chair, and he's for lack of better words. Words. MacInnis foot on the floor like a pogo stick and doing extremely extremely unloaded movements early on that site, too early on but in the rehab process itself to introduce low level plyometrics, He's doing band assisted jumps. He's doing isometrics. He's doing heavy squads. He's doing some bar bell curls. All things important for the curies. >> Sure are. Absolutely yeah beyond you. My understandings of the lower leg complex is off the charts because of my injury. So for the viewer's eye, tor macula or a ruptured my Achilles tendon with a full rupture but right at the insertion, which is the very atypical tear because I've been dealing teno sis for over a year before I tore it. So they had it cut me up top to bring me down low, if you will. So usually Achilles ruptures that all they do is bring it together and then tie it. There are. So it through the mind was at the very bottom. So essentially, they had to cut me up top toh length and me and then, uh, suitors through. So is very atypical, which sucks only that that part sucks. Spike. Um, it's not that I am Well, maybe a little bit arrogant, but I honestly want to take full control of my physical therapy because I think that intuitively I understand the process not just of rehab, but of how to increase performance. So all I did was watered down as much of that is possible and truly started as soon as I got to the pain free. And so, yeah, with all the unloaded stuff, it just made sense to me like that's something you just don't see in physical therapy to It's kind of blows. My mind is what's the first thing to go like when you get older? What happens? Will you lose your ability to do very forceful things or to lose power or the ability to generate power. So that's the first thing that came in my mind when I rupture. Or when a Torme Achilles was okay. I need to go back and not be old because essentially, I'm staying still. So if I'm staying still, it's like use it or lose it protocol. So from that perspective, I told myself, I need to move fast at some point. So I started with all my available limbs at the time, just moving fast. Then I progress toe when my suitors seal or excuse me with my I want my wound healed. I got into the pool, so that's the most is about is unloaded. You should get, and all it did was just frail. My leg and there a cz muchas I could through different planes and of course, he has fold up. But of course, it's going to like your adding a stress. And so I just did it Mohr or Mohr. And so I just Kim. Training fast, even though, is the most unloaded way you can do it. And then, like Max was talking about, I got to a seated position and I just started doing be most unloaded pogo jumps you've ever seen or ankle pops or whatever you want to call it. So then I transition to standing on it isometrics, then putting more force into the forefoot isometrics. And then I started using the bands I mean super heavy bands and then just started like Pogo's and then start lighting the bands I went to arm went the body weight. To me, it's like super common sense, but I don't know, maybe the physical world. It doesn't really look at it that way. They look at it and isolation opposed to global. So to me, I knew if I could quickly get back to global patterns that I will be able to promote healing faster. And so, like Chase talked about, his last one ought to be a far protocols. Luckily, I had him as a resource to help me with my healing process, but right now, on that four and a half months, almost five months, and I'm doing some pretty cool things if just to give you a point of reference. Dez Bryant, wide receiver. He tore his a week after mine, and essentially, you guys Essentially, he's What's a similar athletes level athlete? You know, very someone. Uh, actually, he's going to be up until eight to nine months. John Wall tour has a few months after mine. He's going to be an entire year for his process. Boog, Golden State warriors took him a whole year to get back on my goal. If I can get it back and lesson seven months, that means I did something, right? >> No, I love it. Well, that's tough stuff. Get to see if you check out his instagram page. So me, please, dear, do yourself a service. Go check out the man. He's a good dude, Tio. So sometimes no kid. Don't >> you know you're right there, e >> I don't want call corps on a bad day. >> You >> know, it's all good now. I really appreciate it, man. Thanks for being on here. And, uh, again we follow sometime in near future. I feel I'm expecting that shirt. By the way, where is my core bighead T shirt? >> You know, I want to find one of my earlier body building picks, and I'm gonna put it on a T shirts and, Tio, >> I love it. How I rocked the hell out of it. Man, >> you're beard in a most >> and be right here. Yes, right behind. Maybe my postal records slash proposing bronze and gold. You're welcome. You're welcome. An absolutely huge in that >> purple banana hammock to >> Wouldn't ask for another way. What? The full real deal. Korean stage. Ready, you know. Awesome. Well armed man up that thing. You guys, Listen, I appreciate it. Great South Korea on. If we're curious about finding more, check him out on instagram and look for Teo. No doing more. These in near future. >> Awesome. Thanks, Max.
SUMMARY :
And then you said in this period, I want to accomplish, you know, thiss We look at prisoners when they go to the yard. So the last thing I'm going to do is beat them down. So you working guide rails? And if you prove it within your early work sex, then we'LL have a little bit alert. And I find that to I mean, I got guys that are five eight all the way to seven foot. that athlete and what they're doing if you really the real reason why I got to this And I'm not gonna say to go in a straight line because you might go through building and crashing hit pedestrians. But I gave you the physical requirements. Okay, let's have an ownership model that drives it, because if you talk to people, I'm to tell you what to do because you don't know shit, right? appreciate it it's always good to have you next way probably should do some form of micro dose in to see if you even like it everyone to overdose. that's going to make you go from a counter movement jumped a nineteen point one to twenty six point for It's the And I was like, Yo, that is some white trash. I love it. I'm on a lot of different podcast that you just Google. There is beauty in the struggle. That's when they get here in Britain, right? you Brooks. A lasting well, Korea appreciate you have coming on here. I love working with you, man. I can't let you escape Korea quite yet. means you want to share a little bit on this because I know you have been doing this yourself. cool things if just to give you a point of reference. Get to see if you check out his instagram page. I feel I'm expecting that shirt. How I rocked the hell out of it. An absolutely huge in that Ready, you know.
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Eric Herzog, IBM & Sam Werner, IBM | IBM Think 2019
>> Live from San Francisco, it's theCUBE covering IBM Think 2019. Brought to you by IBM. >> Welcome back, we're here at Moscone North. You're watching theCUBE, the leader in live tech coverage. This is day four of our wall to wall coverage of IBM the Think. The second annual IBM Think, first year at Moscone. Dave Vellante here with Stu Miniman. Eric Herzog is here, he's the CMO of IBM Storage and Sam Werner is the VP of Offering Management for Storage Software at IBM. Guys welcome back to theCUBE. Always good to see ya both. >> Thanks >> Thank you. >> So we were joking yesterday and today, of course multi cloud, the clouds opened, it's been raining, it's been sunny today, so multi cloud is all the rage. Evidently you guys have done some work in multi cloud. Some research that you can share with us. >> Yeah, so couple things. First of all, the storage vision in multi cloud at IBM for years. We work with all the cloud providers including IBM cloud, but we work with Amazon and we work with Azure, we work with Google cloud and in fact our Spectrum Protect, modern data protection product, has about 350 small and medium cloud providers across the world that use it for the engine for their back up as a service. So we've been doing that for a long time, but I think what you're getting is, what we found in a survey multi cloud and I actually had had a panel yesterday and all three of my panelists, including Aetna, use a minimum of five different public cloud providers. So what we're seeing is hybrid is a subset of that, right? On and off, but even if someone is saying, I'm using cloud providers, they're using between five and 10, not counting software as a service because many of the people in the survey didn't realize software as a service is theoretically a type of cloud deployment, right? >> So that's obviously not just the big three or the big five, we're talking about a lot of small guys. Some of the guys maybe you could have used in your Spectrum Protect for back up, local cloud providers, right? And then add sas to that, you could probably double or triple it, right? >> Right, well we've have been very successful with sas providers so for example, one of people on the panel, a company called Follett, they're a privately held, in the mid close to a billion dollars, they provide services to universities and school districts and they have a software package for universities for the bookstores to manage the textbooks and another software as a service for school districts across the United States. They have 1,500 and it's all software service. No on prem licensing and that's an example. That's in my mind, that's a cloud deployment, right? >> Ginni talked Tuesday about chapter two how chapter one was kind of, I call it commodity cloud, but you know, apps that are customer facing, chapter two, a lot of chapter two anyways, is going to be about hybrid and multi cloud. I feel like to date it's largely been, not necessarily a purposeful strategy to go multi cloud, it's just we're multi vendor. Do you see customers actually starting to think about a multi cloud strategy? If so, what's behind that and then more specifically, what are you guys doing from a software stand point to support that? >> Yeah, so in the storage space where we are, we find customers are now trying to come up with a data management strategy in a multi cloud model, especially as they want to bring all their data together to come up with insights. So as they start wanting to build an AI strategy and extend what they're doing with analytics and try to figure out how to get value out of the data they're building a model that's able to consolidate the data, allow them to ingest it and then actually build out AI models that can gain insights from it. So for our software portfolio, we're working with the different types of service providers. We're working closely with all the big cloud providers and getting our software out there and giving our customers flexible ways to move and manage their data between the clouds and also have clear visibility into all the data so they can bring it together. >> You know, I wonder sort of what the catalyst is there? I wrote an article that's going up on SiliconANGLE later and I talked about how the first phase was kind of tire kicking of cloud and then when the down turn hit, people went from capex to opex. It was sort of a CFO mandate and then coming out of the down turn, the lines of business were like, whoa agility, I love this. So shadow IT and then IT sort of bought in and said, "we got to clean up this mess." and that seems to be why, at least one catalyst, for companies saying, "hey, we want a single data management strategy." Are you seeing that or is there more to it? >> Well I think first of all, we're absolutely seeing it and there's a lot of drivers behind it There's absolutely IT realizing they need to get control over this again. >> Governance, compliance, security, edix >> And think about all the new regulations. GDPR's had a huge impact. All a sudden, these IT organizations need to really track the data and be able to take action on it and now you have all these new roles in organizations, like data scientists who want to get their hands on data. How do you make sure that you have governance models around that data to ensure you're not handing them things like pi? So they realized very quickly that they need to have much better control. The other thing you've seen is, the rise of the vulnerabilities. You see much more public attacks on data. You've seen C level executives lose their jobs over this. So there's a lot more stress about how we're keeping all this data safe. >> You're right. Boards are gettin' flipped and it's a big, big risk these days >> Well the other thing you're seeing is legal issues. Canada, the data has to stay in Canada. So if you're multi national and you're a Japanese company, all your Canadian offices, the data has to be some cloud of ours got an office in Canada. So if you're a Japanese headquarter company, using NTT cloud, then you got to use IBM or Amazon or Azure, 'cause you have to have a data center inside the country just to have the cloud data. You also have shier maturity in the market. I would argue, the cloud used to be called the web and before it was the web, it was called the internet and so now that you're doing that, what happens in the bigger companies, procurement is involved, just the way they've been involved in storage servers and networking for a long time. Great you're using CISCO for the network. You did get a quote from HP or using IBM storage, but make sure you get at least one other quote so as that influences aside from definitely getting the control is when procurement get involved, everything goes out for RFP or RFQ or at ten dure, as they say in Europe and you have to have multiple vendors and you sometimes may end up for purely, we need the way to club 'em on price so we need IBM cloud and Microsoft so we can keep 'em honest. So when everyone rushed the cloud, they didn't necessarily do that, but now that it's maturing >> Yeah, it's a sign of maturity. >> It's a sign of maturity that people want to control pricing. >> Alright, so one of the other big themes we've been talking a lot about this week is AI. So Eric talks about, when we roll back the clock, I think back to the storage world, we've been talking about intelligence in storage for longer than my career. So Sam, maybe you can tell us what's different about AI in storage than the intelligence we've been talking and what's the latest about how AI fits into the portfolio? >> Yeah, that's a great question and actually a lot of times we talk about AI and how storage is really important to make the data available for AI, but we're also embedding AI in our storage products. If you think about it, if you have a problem with your storage product, you don't just take down one application. You can take down an entire company, so you've got to make sure your storage is really resilient. So we're building AI in that can actually predict failures before they happen so that our storage never takes any outages or has any down time. We can also predict by looking at behavior out in the network, we can predict or identify issues that a host might be causing on the network and proactively tell a customer before they get the call that the applications are slowing down and we can point out exactly which host is causing the problem. So we're actually proactively finding problems out on the storage network before they become an issue. >> Yeah and Eric, what is it about the storage portfolio that IBM has that makes it a good solution for customers that are deploying AI as an application in use cases? >> Yeah so we look at all, so one is AI, in the box if you will, in the array and we've done a ton of work there, but the other is as the underlying foundation for AI workloads and applications so a couple things. Clearly, AI often is performance dependent and we're focused on all flash. Second thing as Sam already put it out, resilience and availability. If you're going to use AI in an automotive factory to control the supply chain and to control the actual factory floor, you can't have it go down because they could be out tens of millions, hundreds of millions of year just for that day of building Mercedes or Toyotas or whatever they're building if you have an automated factory. The other areas we've created what we call, the data pipeline and it involves three, four members of our storage software family. Our Spectrum Scale, a highly parallel file system that allows incredible performance for AI. Our Spectrum Discover which allows you to use meta data which is information about the data to more accurately plan and the AI software from any vendor can use an API and go in and see this meta data information to make the AI software more efficient that they would use. Our IBM Cloud Object Storage and our Spectrum Archive, you have to archive the data, but easily bring it back because AI is like a human. We are, smart humans are learning non-stop, whether you're five, whether you're 25, or whether you're 75, you're always learning. You read the newspaper, you see of course theCUBE and you learn new things, but you're always comparing that to what you used to know. Are the Russians our friends or our enemies? It depends on your point in time. Do we love what's going on in Germany? It depends on your point in time. In 1944, I'd say probably not. Today you'd say, what a great Democratic country, but you have to learn and so this data pipeline, this loop, our software is on our storage arrays and allows it to be used. We'll even sell the software without our storage arrays for use on any AI server platform, so that softwares really the huge differentiator for us. >> So can you, as a follow up to that, can you address the programmability of your portfolio? Whether it's through software or maybe the infrastructure as well. Infrastructure, I'm thinking infrastructure's code. You mentioned you know API's. You mentioned the ability to go into like Spectrum Discover for example, access meta data. How programmable is your infrastructure and how are you enabling that? >> I mean across our entire portfolio, we build restful API's to make our infrastructure completely extensible. We find that more and more enterprises are looking to automate the deployment of the infrastructure and so we provide API's for programming and deploying that. We're also moving towards containerizing most of our storage products so that as enterprises move towards cubernetes type clusters, we work with both Red Hat and with our own ICP and as customers move towards those deployment models and automate the deployment of their clusters, we're making all of our storage's available to be deployed within those environments. >> So do you see an evolution of the role of a storage admin, from one that's sort of provisioning luns to one that's actually becoming a coder, maybe learning Python, learning how to interact through API's, maybe even at some point developing applications for automation? Is that happening? >> I think there's absolutely a shift in the skills. I think you've got skills going in two directions. One, in the way of somebody else to administer hardware and replace parts as they fail. So you have lower skilled jobs on that side and then I believe that yes, people who are managing the infrastructure have to move up and move towards coding and automating the infrastructure. As the amount of data grows, it becomes too difficult to manage it in the old manual ways of doing it. You need automation and intelligence in the storage infrastructure that can identify problems and readjust. For example, in our storage infrastructure, we have automated data placement that puts it on the correct tier. That use to be something a storage administrator had to do manually and figure out how to place data. Now the storage can do it themselves, so now they need to move up into the automation stack. >> Yeah, so we've been talking about automation and storage also for a lot of years. Eric, how are enterprises getting over that fear that either I'm going to lose my job or you know, this is my business we're talking about here. How do I let go and trust? I love, I saw downstairs, there was a in the automation booth for IBM, it was free the humans, so we understand that we need to go there. We can't not put automation with the scale and how things are moving, but what's the reality out in the field? >> So I think that the big difference is and this is going to sound funny, but the economic down turn of seven, eight and nine, when downturn hit and certainly was all over the IT press, layoff, layoff, layoff, layoff, layoffs, so we also know that storage is growing exponentially, so for example, if I'm Fortune 500 company x and I had 100 people doing storage across the planet. If I laid off 50 of them and now I'm recovered. I'm making tons of money, my IT budget is back up. I didn't go to the CIO and say, you can hire the 50 storage people back. You can hire 50 people back, but no more than five or six can be storage people. Everything else has to be dev ops or something else. So what that means is, they are managing an un-Godly amounts of more storage every year with essentially the same people they had in 2008 or maybe a tiny bit more. So what matters is, you don't manage a peta bite or in the old days, half a peta bite. Now, one storage admin or back up admin or anyone in that space, they want you to manage 20 peta bites and if you don't have automation, that will never happen. >> Stu and I were interviewing Steven Hill from KPMG yesterday and he was talking about the macro numbers show we're not (stutters) as globally and even in the US, we're not seeing productivity gains. I'm saying yeah, you're not looking at the storage business you know, right? Because if you look at anybody who's running storage, they're doing way more with much less, to your point. >> Which is why, so for example when Sam talked about our easy tier, we can tier, not only as AI base. So in the old days, when you guys weren't even born yet, when I was doing it. >> Well I don't know about that >> What was it? It was move the data after 90, so first it was manual movement, then it was set up something, a policy. Remember policy automation was the big deal 10 years ago? Automatically move the data when its 90, 60, or 30 days old. AI based, what we have an easy tier, automatically will determine what tier it should go on, whether when the data's hot or when the data's cold and on top of that, because we can tier over 440 arrays that are not IBM logo'd, multi vendor tiering, we can tier from our box to an EMC box. So if you have a flash array, you've got an old or all hard drive that you've moved into your back up in archive tier, we can automatically tier to that. We can tier from the EMC array out to the Cloud, but it's all done automatically. The admin doesn't do anything, it just says source and target and the AI does all the work. That's how you get the productivity that you're talking about, that you need in storage and back ups even worse because you got to keep everything now, which Sam mentioned GDPR, all these new regulations and the Federal Government its like keep the data forever. >> But in that case, the machine can determine whether or not it's okay to put it in the Cloud, if it's in Canada or Germany or wherever, the machine can adjudicate and make those decisions. >> And that's what the AI, so in that case you're using AI inside of the storage system versus what we talked about with our other software that makes our storage systems a great platform for other AI workloads that are not, if you will, AI for storage. AI for everything else, cars or hospitals or resume analysis. That's what the platform can, but we put all this AI inside of the system 'cause there aren't that big, giant, global, Fortune 500 has 55 storage admins and in 2007 or eight, they had 100, but they've quintupled the amount of storage easily if not 10x'd it, so who's going to manage that? Automation. >> Guys, good discussion. Not everyday, boring, old storage. It's talking about intelligence, real intelligence this time. Eric, Sam, thanks very much for coming to theCUBE. Great to see you guys again. >> Thank you. >> Thank you. >> You're welcome. Alright, keep it right there everybody. Stu and I will be back with our next guest shortly, right after this break. John Furrier is also here. IBM Think, Day four, you're watching theCUBE. Be right back. (tech music)
SUMMARY :
Brought to you by IBM. and Sam Werner is the VP of Offering Management Some research that you can share with us. and we work with Azure, we work with Google cloud Some of the guys maybe you could have used for the bookstores to manage the textbooks but you know, apps that are customer facing, consolidate the data, allow them to ingest it and that seems to be why, at least one catalyst, they need to get control over this again. and now you have all these new roles in organizations, and it's a big, big risk these days and so now that you're doing that, that people want to control pricing. about AI in storage than the intelligence that a host might be causing on the network so one is AI, in the box if you will, You mentioned the ability to go into like and automate the deployment of their clusters, the infrastructure have to move up that either I'm going to lose my job or you know, and I had 100 people doing storage across the planet. as globally and even in the US, So in the old days, when you guys weren't even born yet, So if you have a flash array, But in that case, the machine can determine and in 2007 or eight, they had 100, Great to see you guys again. Stu and I will be back with our next guest shortly,
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Donnie Williams, Scott Equipment & Eric Herzog, IBM | Cisco Live EU 2019
(funky upbeat music) >> Live from Barcelona, Spain. It's theCUBE covering Cisco Live! Europe. Brought to you by Cisco and its ecosystem partners. >> Welcome back to Barcelona everybody we're wrapping up day one of Cisco Live! Barcelona CUBE coverage. I'm Dave Vellante, he's Stu Miniman. You're watching theCUBE, the leader in live tech coverage. Donnie Williams is the IT Director at Scott Equipment out of Louisiana and Eric Herzog is back. He's the CMO of IBM Storage. Gentlemen, good to see you, welcome. >> Thank you. >> Thank you for having us. >> You're very welcome. So tell us about Scott Equipment. What do you guys do? What's the company all about? >> We're a heavy equipment dealer, so we've been in the business for 80 years, privately owned company. And so we started out in farm implement 80 years ago by the founder Tom Scott which is where the name Scott Equipment comes from. And so we transitioned over the years to construction equipment and we're now, so back in 2014 we sold all of our, the farm stores that handle all of that equipment, and now we're strictly servicing the construction industry and petrochemical industry. >> So you're a dealer of large equipment. And you service it as well, or? >> Yes we service it. We're primarily a rental company first. Then we also sell what we rent. We service it and it also parts as well. >> So we're talking massive? >> Yes big. If you think, one of our main clients is Volvo which if you've seen the show Gold Rush, that Volvo equipment that you see there, that's what we sell. >> It's incredible machines. >> Yeah, yeah they are I had a chance to play with one. I went to a Shippensburg Pennsylvania where their North America office is and had a chance to play with their largest excavator. That was fun. >> So is a lot of you IT centered on sort of the maintenance business and the service business or? >> Yes. Mostly Mirror is like a car dealership. So like I said, we do sale service, parts, all of that. >> So the business flow starts after the sale is made, obviously. >> Exactly, yes, we sell, yeah, exactly. We get the equipment out there in the territory and then the revenue continues to come in. >> So what are some of the challenges, the external challenges that are driving your business? >> So really, our, the whole heavy equipment industry is, is kind of behind the times in my, from a dealership perspective. From a manufacturer perspective. They're somewhat up with technology, especially Volvo, but from a dealership, they're mainly privately owned, so they're not, there's not a whole lot of resources in technology. That's not a focus for them. They're focused on the business side of it, so. When I first started at the company 10, 11 years ago now, there was one guy servicing 600 employees. And it was-- >> One IT person? >> One IT person. So, as you can imagine, it was a nightmare. I mean it's not the guy's fault. I don't blame him at all. It's just the way that they had done business and not changed. >> He was a bummed out IT person. >> Yeah, right exactly, yeah. >> Now how'd you guys find them? >> So they're a customer of ours for the verses stack. We have a partner that they've been buying their IBM and their Cisco gear from, and then when they were doing a modernization effort, the reseller talked to Scott and said, Donnie, what d'ya think? How about doing this converge infrastructure. Easier to employ at sep-tor. So it all came through their existing channel partner that they were using for both IBM gear and Cisco gear. >> So you wanted a solution that one guy could run, right? >> We've now at least grown that, our company to, now we have six total in our department. So we've changed a lot since I started 11 years ago. >> And what are they spending their time doing? >> Primarily, we do a lot of help desk, assistant administration, we do mostly, my focus is to make sure that our employees are satisfied so they can take care of the customer. And that's the primary goal and along with that comes systems administration, as well, so. >> But you know, a full stack like this. I mean the joke. You need more than one person. >> Right. But it's going to be simplified, you know what you're buying, >> Right, exactly. >> It's predictable, and therefore, you shouldn't need to be seen on a day to day basis. >> Yes, I like keeping things simple, simple as possible. So, that makes my job easier, it makes my team's job easier, as well. >> So what kind of things are you driving? Is it, ya know, data protection? Is it, what sort of, you know, use cases do you have on your stack? >> We're from our, we're servicing on our, with Cisco, I'm sorry, verses stack. It's mostly it's all private cloud. We're servicing applications that supplement our core ERP system. So, we have reporting solutions. When we first bought the verses stack, we were considering moving to another ERP system, and we would have that infrastructure in place to migrate to that. So we still have that, actually, element table as an option for us. >> The migration to a new ERP system? >> Yes. >> We should talk afterwords. >> We're avoiding that all costs. >> Right, well, of course. You don't want to convert if you don't have to. Yeah but sometimes it's a business case. Sometimes it's hard to make. We'll talk. >> Exactly. >> Cloud in your future or present? >> We're doing some-- >> SAS stuff, or? >> Yeah a little of that. I mean anything. I mean things that make sense for us to do cloud. Security services. We're doing, of course, probably the most common is hosting email. We're doing a lot of that. Share point. That type of solution in the cloud. >> How long you've been with the company? >> 11 years. >> 11 years, okay, so, thinking about the last decade, I mean a lot has changed. >> Yes. >> What are you most proud of? What's like your biggest success that you can share with us? >> Really building the IT department and bringing our company into the 21st century from a technology perspective. I mean, like I said, we had one person that was handling it. It was really impossible. I mean, you couldn't depend on one person and expect the company to survive long term. >> Yeah, that one person had to say no a lot. >> Exactly, right. He just couldn't get everything done. >> So, really that modernization and that's kind of where you guys came in, right? >> IT modernization play. The verses stack is heavily used for that and, you know, as we've said on the earlier interview, we had a CSPN. We've also used it to go to the next level from an IT transformation to the future. 'Cause in that case, as you know, that was a CSP who uses it to service, you know, hundreds of customers all across the UK in a service model. And in this case, this is more of a IT modernization, take the old stuff, upgrade it to what it was. They even had an old IBM blade servers. That's old this stuff was. Old XE6 Blade servers that must've been 10 years old before they went to the verses stack. >> How many people in the company? Roughly? >> Right now, we've actually sold off side since I've been with the company, we've sold off some of our nonperforming business units. We're probably roughly around 550 now. >> Okay. >> So I mean, we're actually more profitable now than we were 11 years ago. We have less employees, but our profitability is actually exceeded. >> Theme of simplification. >> Exactly, right. >> So what's the biggest challenge you face as the head of IT, today? >> The biggest, probably the biggest challenge would be me wanting to implement technologies that are not ready. I want to have the competitive edge of the industry. I want to be able to be ahead of the curve. And that's probably the biggest challenge. >> And you're saying you can't because the tech isn't ready? Or it's a skills issue? >> It's just the industry. Just trying to work with vendors and getting them to be ready for, I say vendors, manufacturers. They're our vendors. To get them to, and know their dealers as well. To all be acceptable to the technology's that's been there 20 years. >> What would you say is the top, number one, or the top things IBM has done to make your life easier? And what's the one thing they could to do that they're not doing that could make your life easier? What's the, start with what they've done. You know what the success is that have helped. >> Really, we've been a longtime IBM customer. We have not just the verses stack, but we also have the power system, which actually runs our core ERP. >> Ah, okay, so. >> So I mean, we've had long standing relationship with IBM. Reliability is there. The trust is there, as well. >> Yeah, long term partnership. Alright, what's the one thing they could do? If you could wave a wand and you said, IBM will to X, what would x be to make your life better? >> Cut the price. >> Ah, here we go! (all laughing) I should've prefaced that soon! Besides cut the price. Alright we'll leave it there on that topic. But you know, the power system thing brings up, you know, our friend Bob Piccano's running the cognitive systems group now. You guys doing some stuff with AI. Maybe talk about that a little bit. >> So what we've done is two things. First of all, we've imbued inside of our systems AI all over the place. So for example, we tier data which can do not only to own array, but literally to 440 arrays that have someone else's logo on them. It's all AI done. So when the data's hot, it's on the fastest tier. So if you have 15,000 RPM drives and 7,200 RPM drives, it goes to 15,000 when it cools off. AI automatically moves it. The storage admin does nothing. You don't set palsies AI takes care of it. We have Flash, and you have hard drives. Same thing. It'll move around. And you could have an IBM array talking to an EMC array. So all sorts of technology that we've implemented that's AI in the box. Then on top of that, what we've done is come up with a series of AI reference architectures for storage as one of the critical elements of the platform. So what we've done is create what we call a data pipeline. It involves not only our storage arrays, but four pieces or our software, spectrum scale, which is giant scale off file system, in fact, the two fastest supercomputers in the world have almost half an exabyte of that software, storage with that software. Our spectrum discover, which we announced in CUBE 4, which is all about better management of metadata. So, for AI workloads, big data analytic workloads, the data scientist doesn't prep the data. They can actually talk to what we do, and you can create all these metadata templates, and then boom, they run an AI workload on Thursday, and then run an analytic workload on Friday, but all automated. Our archive, and then our cloud object storage. So, all that is really, think about it more as an oval, because when you're doing an AI system, you're constantly learning. So the thing you got to do is, one, you've got to have high performance and be able to handle the analytics which you we do on Flash. 'Kay, so the Flash is connected. You've got to be able to move the data around and part of the thing with the Spectrum Discover is that we can talk through an API, to a piece of AI software, to piece of analytic software, to a piece of big data software. And they can literally go through that API, create templates for the metadata, and then automatically suck what they need into their app and then munge it and then spew it back out. And then obviously on the archive side, want to be able quickly recall the data because if you think about an AI system, it's like a human. So let's give you my Russian example. So I'm old enough, when I was a kid, there were bomb shelters in my neighborhood that people dug in the backyard. Then we have, you know, Nixon lighting up the Chinese. Then we have Reagan and Gorbachev. Next thing you know, the wall comes down, right? Then the next thing you know, there's no longer a Soviet Union. All of a sudden, ah, the Russians might be getting a little aggressive even though they're no longer communist, and now you see, depending on which political party, that they're totally against us, or they're totally helping us, but, you know, if they really were hacking systems, whatever political party you're in, they really were hacking our systems trying to manipulate the election. Pro or con, the point is that's kind of like a cyber attack. And that's not a good thing. So we learn and it changes. So an AI system needs to understand and change, constantly learn, if all of a sudden you have flying cars, that's going to be different than a car with tires. Now a lot of it may be the same. The interior, all the amenities, but the engines going to be different, and there are companies, including the big three, four, five, auto, who are actually working on flying cars. Who knows if it'll happen, but the AI system needs to understand and learn that and constantly learn. And so, the foundation has to heavily resilient, heavily performant, heavily available, last thing you want is an AI system going down on you. Especially if you're in healthcare, or big giant manufacturing, like Volvo, his customer. When they're building those cranes and things, they must cost 50, 60 million dollars. If that assembly line goes down, it's probably a big deal for them. So you need AI systems that always keep your other systems up and running. So you have to have that solid foundation of storage underneath. >> Awesome, alright, we got to leave it there. Give the customer the last word. Donnie, first time in Barcelona, right? >> Yes it is. >> How are you finding the show and the city? >> Oh it's awesome. This is my fifth Cisco Live. First time in Europe, so yeah. Enjoying it. >> Good, good. Well thank you guys for coming to theCUBE. >> Great thank you for coming. >> Thank you! >> Really appreciate it. >> You're welcome. Alright keep it right there everybody. We'll be back to wrap day one Cisco Live! Barcelona. You're watching theCUBE. (techno music)
SUMMARY :
Brought to you by Cisco and its ecosystem partners. Donnie Williams is the IT Director at Scott Equipment What's the company all about? the farm stores that handle all of that equipment, And you service it as well, or? Then we also sell what we rent. Gold Rush, that Volvo equipment that you see there, and had a chance to play with their largest excavator. So like I said, we do sale service, So the business flow We get the equipment out there is kind of behind the times in my, I mean it's not the guy's fault. the reseller talked to Scott and said, So we've changed a lot since I started 11 years ago. And that's the primary goal I mean the joke. you know what you're buying, you shouldn't need to be seen on a day to day basis. So, that makes my job easier, So we still have that, actually, You don't want to convert if you don't have to. probably the most common is hosting email. I mean a lot has changed. and expect the company to survive long term. Exactly, right. 'Cause in that case, as you know, since I've been with the company, So I mean, we're actually more profitable now And that's probably the biggest challenge. It's just the industry. or the top things IBM has done We have not just the verses stack, So I mean, we've had and you said, IBM will to X, But you know, the power system thing So the thing you got to do is, one, Give the customer the last word. This is my fifth Cisco Live. Well thank you guys for coming to theCUBE. We'll be back to wrap day one Cisco Live!
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Donnie Williams & Eric Herzog | Cisco Live EU 2019
>> Live from Barcelona, Spain. It's the cue covering Sisqo Live Europe, brought to you by Cisco and its ecosystem partners. Welcome back >> to Barcelona. Everybody would adapt. Wrapping up day one of Sisqo live Barcelona Cube coverage. I'm David. Long day. He's stupid men. You're watching the Cube. The leader in live tech coverage. Donnie Williams is it director at Scott Equipment out of Louisiana. And Eric hurts August back. He's the CMO of IBM storage. Gentlemen, good to see you. Welcome. >> Thank you for having us. >> You're very welcome. So tell us about Scott equipment. What do you guys do? Look, what's the company all about were >> a heavy equipment dealer, So we've been we've been in the business for eighty years, privately owned company. And so we're we're We started out and farm implement eighty years ago by the founder, Thomas Scott, which is where the name Scott equipment comes from. And so we transition over the years, Teo construction equipment, Andi were now back in two thousand fourteen, we sold all of our the farm stores that handled all of that equipment. And now we're We're strictly servicing the construction industry and petrochemical in >> history. So your dealer of exactly what equipment and your services as well? >> Yes. We service that we were primarily a rental company. First then then we We also sell what we rent. We service service it and and also parts as well. So we're talking massive? Yes, they got. If you if you think our one of our main lines is Volvo, which you have you have you seen the show? Gold rush that that Volvo equipment you see there, that's that's what we sell. So is incredible machine. Yeah, Yeah, they are. Hada chance tio to play with one. I went Teo Shippensburg, Pennsylvania. Where were their North America offices and had a chance to play with their largest excavator? That was That was >> fun. So is a lot of your Senate on sort of the maintenance business in the service business? >> Yes. So we were just mostly. Mirror is like a car dealership. If if you so we were like I said, we do sale service parts, all of that. >> So the business flow starts after the sale is made on >> exactly. Yes. We still like, Yeah, exactly. We get. We get equipment out there in the in the in the territory, and then the revenue continues tio to come in. >> So what are some of the challenges? The external challenges that are driving your business? You really >> are. The whole heavy equipment industry is It's kind of behind the times in my from a dealership perspective from from a manufacturer perspective there. They're somewhat up with technology, especially especially Volvo. But from a dealership there, there might mainly privately owned. So they're not there's not a whole lot of resource is in, and ah, in technology they don't. That's not a focus for them that they're they're focused on the business side of it. So what? We we're not When I first started the company ten, eleven years ago, now there was one guy servicing six hundred employees and and it was one eyed person, one i t person. So, as you can imagine, it was, it was a nightmare. Go. I mean, it's not the guy's fault. I don't blame him at all. Is this Is this the way that they had done business and not change bombed out, >> right? Exactly. Yeah. Guys >> find them. >> So their customer of ours for the versus stack, we have, ah, partner that they've been buying their IBM in their Cisco gear from. And then when they were doing a modernization effort, the reseller talk to Scott and said, Dani, what do you think? How about doing this? Converge infrastructure. Easier to play. It's after. So it all came through their existing channel. Part of that they were using for both IBM gear and Cisco Gear. >> So you wanted a solution. That one guy could run, right? We've now at least growing that company to house. We have six total in our in our department. So we've changed a lot since I started the eleven years ago. >> And why are they spending their time doing what? Premier >> Li? We do a lot of help desk on systems administration way do mostly, uh, are My focus is to make sure that our employees are satisfied that so they could take care of the customer, and that's that's the primary goal. And along with that comes comes systems administration. A cz. Well, so, But, >> you know, a full stack like this. I mean, the joke. You need more than one person, but it's going to be simplified. You know what you're buying, right? Predictable. And therefore, you shouldn't need to be seen on a basis. >> Yes, I like keeping things simple. Simple as possible. So that makes that makes my job easier. It makes my team's job easier. What >> kind of >> things you driving? Is it? You know, data protection, is it? You know what? What? What? What sort of, you know, use cases do you have on your stack >> on that Were from our were servicing on our with Francisco verse. Sorry versus stack. We are mostly it is all profit cloud were servicing applications. That's the supplement. Our court system. So we have reporting solutions. We were when we first bought it. The vs stack way were considering moving to another Air P system. Oh, and we would have that that infrastructure in place tio migrate to that. So we see what we still have that that actually on the table as a as an option >> for us, but the migration to a new Europe E system. Yes, we should talk afterwards. No, you >> were warning that it >> all about you. Of course, you don't want to convert if you don't have to write. But sometimes there's a business case. Sometimes it's hard to make you talk. Cloud in your in your future president were doing some that's ass stuff. >> Yeah, a little of that. I mean, anything. I mean things that that makes sense for us to to cloud I security services we're doing. Of course, probably most common is hosting email. Were doing a lot of that share point that that type of solution in the cloud >> How long you been with the company? Eleven years. Eleven years. Okay, So, thinking about the last decade, I mean, it's a lot of lot has changed. Yes. What's your What do you most proud of? What you like your biggest success that you can share with us. Oh, >> really? Building my the that dude the I T department and bringing our company into the twenty first system century from a from a technology perspective. I mean, like I said, we had one person that was that was handing. It was really impossible. I mean, you couldn't depend. Depends on one person. And and and, yeah, expect the company's or saw survive long term. Yeah, That one person had to say no a lot. Exactly. Right. Why would he? Just couldn't get everything >> done right? So that really that modernization? Yes, I know where you guys >> can. Ninety Mater, My team modernization play. The versus stack is heavily used for that. And, you know, as we said, on the earlier and every we had to see ESPN, we've also used it to do you know, to the next level from a night transformation to the future. Because in that case, as you know that was a CSP who uses it to service. You know, hundreds of customers all across the UK in a service model. And in this case, this is more of a mighty modernization. Take the old stuff, upgraded to what it was. They even have old IBM blade servers. That's how old the stuff wass old, actually, six played servers that must have been ten years old before they went to the Versus Stack. >> How many people in the company >> right now? We've actually sold off side since I've been with the company we sold off. Some of our non performing business units were probably roughly around five hundred fifty now. Okay, so I mean, we're Ah, we're actually more profitable now than we were eleven years ago from Ah, I mean, we have less employees, but our profitability is actually exceeded >> the name of simplification. Exactly. Right. So what's the biggest challenge you face Is the head of it today? The biggest, Probably >> the biggest challenge would be me wanting to implement technologies. They're not really not ready. I want it. I want tohave the competitive edge, that of the industry. I want to be able to be ahead of of the ahead of the curve. Uh, and that's probably the probably biggest challenge. And you're >> saying you can't Because the tech is ready or skills >> is just is just the industry just trying Teo. I work with vendors and getting getting them to be ready for I say, vendors, manufacturers, they're our vendors. Toe Get them Tio and other dealers as well. Teo Teo Albee. Acceptable to technology that's been there twenty years. >> What would you say is the but the top number one or the top things that IBM has done to make your life easier? And what's the one thing they could do that they're they're not doing that could make your life easier. What's the start with what they've done? You know whether successes, you know that >> really? Really. I mean, we've been a long time IBM customer. We have not, not just the versus Stack, but we also have the power system, which were actually runs are our core AARP. Um, okay. And so that we had long standing relationship with IBM, and the reliability is there. The trust is, >> there's well, a long term partnership. But what's the one thing they could do? One thing that you could If you could wave a wand and IBM will do x what would x B to make your life better? Uh, cut the price way. Go >> way. I should have prefaced that something that size >> on that topic. But you know, the power system thing brings up. You know, our friend Bob. Pity on who's running the cognitive systems group now You guys do with some stuff in a I talked about that a little bit. >> So what we've done is two things. First of all, we've been beauty inside of our system's ai ai all over the place. So, for example, we tear data which can weaken due not only to our own array, but literally two four hundred forty rays that have someone else's logo on them. It's all a eye dunce. When the data is hot, it's on the fastest here. So if you have fifteen thousand rpm drives in seventeen hundred rpm drives, it goes to fifteen thousand. When it cools off A. I automatically moves that the storage admin does nothing. You don't set policies, A takes care. We have flash and you have hard drive's same thing. It'll move around and you could have on IBM array talking to any AMC array. So all sorts of technology that we implement, that's a I in the box. Then, on top of that, what we've done is come up with a Siri's of a reference architectures for storage, as one of the critical elements in the platform. So we've done is create what we call a data pipeline. It involves not only our storage raise, but four pieces of our software spectrum scale, which is giant scale out file system, in fact, to fastest super computers in the world have almost half an exabyte of that software storage. With that software, our spectrum discover which we announced in queue for which is all about better management of metadata. So for a I workloads, big get anally work loves the data scientist doesn't prep the data. They can actually talk to what we do, and you could create all these meditate a template, then boom. They run a a ay workload on Thursday and then run a analytic workload on Friday. But all automated our archive and then our cloud objects towards. So all that is really think about it. Maura's an oval because when you're doing an A I system, you're constantly learning. So the thing you got to do is one you've got to have high performance and be ableto handle the analytics, which we do on flash. Okay, so the flashes connected, you've got to be able to move the date around. And part of thing with the spectrum Discover is that we can talk through an A P I to a piece of a AI software two piece of analytic software to piece of big data software, and they can literally go through that. AP I create templates for the metadata and then automatically suck what they need into their app and then munge it and then spirit back out and then obviously on the archives side, you want to be able to quickly recall the data, because if you think about a I system, it's like a human. So it's giving my Russian example. So I'm old enough. When I was a kid, there were bomb shelters in my neighborhood that people dug in the backyard. Then we have, you know, Nixon lightening up with the Chinese and we have Reagan and Gorbachev next, You know, the wall comes down right then. Next thing you know, there's no longer Soviet Union. All of a sudden, no, the Russians might get a little aggressive, even though they're no longer communist. And now, you see, depending on which political party. Either they're totally against us where they're totally helping us. But, you know, if they really were hacking systems whose whatever political party urine, they really were hacking our system, tried to manipulate the election pro or con. The point is, that's kind of like a cyber attack, and that's not a good thing. So we learn and it changes. So when a I system needs to understand and change constantly, learn. If all of a sudden you have flying cars, that's going to be different than a car with tires. Now, a lot of it, maybe the same, the interior, all the amenities. But the engine is going to be different. And there are companies, including the big Big three, four five who are actually working on flying cars, knows it will happen. But the A I system needs to understand and learn that and constantly learning. So the foundation has to be heavily resilient, heavily performance, heavily available, lasting one is an A I system going down on you, especially if you're in health care or big giant manufacturing. Like Volvo, his customer. When they're building those cranes and things, they must cost fifty sixty million dollars at that assembly line goes down its prey a big deal for them. So you need a I systems that always keep your other systems up and running. So you have to have that solid foundation storage underneath. >> Awesome. All right, we got to leave it there. Give the customer the last word. Donnie. First time in Barcelona, right? Yes. It ISS how you find in the show and the >> syphilis is awesome. This's my, actually my fifth, uh, Cisco lifers our first time in Europe, so yeah, enjoying it. >> Good. Good. Well, thank you, guys. For German of the >> correct. Thank you. Have you appreciate it? >> You're welcome. Alright. Keep right there, everybody. We'll be back to rap Day one. Sisqo live Barcelona watching you.
SUMMARY :
Sisqo Live Europe, brought to you by Cisco and its ecosystem partners. He's the CMO of IBM storage. What do you guys do? the construction industry and petrochemical in So your dealer of exactly what equipment and your services as well? Gold rush that that Volvo equipment you see there, that's that's what we sell. So is a lot of your Senate on sort of the maintenance If if you so we were like I said, we do sale service parts, the in the in the territory, and then the revenue continues tio to Go. I mean, it's not the guy's fault. right? to Scott and said, Dani, what do you think? So you wanted a solution. We do a lot of help desk on systems And therefore, you shouldn't need to be seen on a basis. So that makes that makes my job So we see what we still have that that actually on the table as a as an option No, you Sometimes it's hard to make you talk. Were doing a lot of that share point that that type of solution in the cloud What you like your biggest success that you can share with us. I mean, you couldn't depend. to do you know, to the next level from a night transformation to the future. now than we were eleven years ago from Ah, I mean, we have less employees, So what's the biggest challenge you Uh, and that's probably the probably biggest challenge. is just is just the industry just trying Teo. You know whether successes, you know that And so that we had long standing relationship with IBM, One thing that you could If you could I should have prefaced that something that size But you know, the power system thing brings up. So the thing you got to do is one you've It ISS how you find in the show and the uh, Cisco lifers our first time in Europe, so yeah, For German of the Have you appreciate it? We'll be back to rap Day one.
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Part 2: Andre Pienaar, C5 Capital | Exclusive CUBE Conversation, December 2018
[Music] Andre one of the things that have come up is your relation with Russia as we talked about so I have to ask you a direct question do you to work with sanctioned Russian entities or Russian companies shown we and c5 we do not work with any company that's sanctioned from any country including Russia and the same applies to me we take sanctions very very seriously the one thing you don't mess with is US sanctions which has application worldwide and so you always have to stay absolutely on the right side of the law when it comes to sanctions so nothing nothing that's something that's connection nets are trying to make they're also the other connection is a guy named Victor Vail Selberg Viktor Vekselberg Vekselberg to go with the Russian names as people know what is your relationship with Viktor Vekselberg so victim Viktor Vekselberg is a is a very well known Russian businessman he's perhaps one of the best known Russian businessman in the West because he also lived in the US for a period of time it's a very well-known personality in in in Europe he's a donor for example to the Clinton Foundation and he has aggregated the largest collection of Faberge eggs in the world as part of national Russian treasure so he's a very well known business personality and of course during the course of my career which has focused heavily on also doing investigations on Russian related issues I have come across Viktor Vekselberg and I've had the opportunity to meet with him and so I know him as a as a business leader but c5 has no relationship with Viktor Vekselberg and we've never accepted any investment from him we've never asked him for an investment and our firm a venture capital firm has no ties to Viktor Vekselberg so you've worked had a relationship at some point in your career but no I wouldn't on a daily basis you don't have a deep relationship can you explain how deep that relationship is what were the interactions you had with him so clarify that point so so I know Viktor Vekselberg and I've met him on more than one occasion in different settings and as I shared with you I served on the board of a South African mining company which is black owned for a period of a year and which Renova had a minority investment alongside an Australian company called South 32 and that's the extent of the contact and exposure I've had to so casual business run-ins and interactions not like again that's correct deep joint ventures are very kind of okay let's get back to c5 for a minute cause I want to ask you it but just do just a circle just one last issue and Viktor Vekselberg Viktor Vekselberg is the chairman of scope over the Russian technology innovation park that we discussed and he became the chairman under the presidency of President Dmitry Medvedev during the time when Hillary Clinton was doing a reset on Russian relations and during that time so vekselberg have built up very effective relationships with all of the or many of the leading big US technology companies and today you can find the roster of those partners the list of those partners on the scope of our website and those nuclear drove that yes Victor drove that Victor drove that during during in the Clinton Secretary of this started the scope of our project started during the the Medvedev presidency and in the period 2010-2011 you'll find many photographs of mr. vekselberg signing partnership agreements with very well known technology companies for Skolkovo and most of those companies still in one way or another remain involved in the Skolkovo project this has been the feature the article so there are I think and I've read all the other places where they wanted to make this decision Valley of Russia correct there's a lot of Russian programmers who work for American companies I know a few of them that do so there's technology they get great programmers in Russia but certainly they have technology so oracles they're ibm's they're cisco say we talked about earlier there is US presence there are you do you have a presence there and does Amazon Web service have a presence on do you see five it and that's knowing I was alright it's well it's a warning in the wrong oh sorry about that what's the Skog Obama's called spoke over so Andres Kokomo's this has been well report it's the Silicon Valley of Russia and so a lot of American companies they're IBM Oracle Cisco you mentioned earlier I can imagine it makes sense they a lot of recruiting little labs going on we see people hire Russian engineers all the time you know c5 have a presence there and does AWS have a presence there and do you work together in a TBS in that area explain that relationship certainly c5 Amazon individually or you can't speak for Amazon but let's see if I've have there and do you work with Amazon in any way there c-5m there's no work in Russia and neither does any of our portfolio companies c5 has no relationship with the Skolkovo Technology Park and as I said the parties for this spoke of a Technology Park is a matter of record is only website anyone can take a look at it and our name is not amongst those partners and I think this was this is an issue which I which I fault the BBC report on because if the BBC report was fair and accurate they would have disclosed the fact that there's a long list of partners with a scope of our project very well known companies many of them competitors in the Jedi process but that was not the case the BBC programme in a very misleading and deceptive way created the impression that for some reason somehow c5 was involved in Skolkovo without disclosing the fact that many other companies are involved they and of course we are not involved and your only relationship with Declan Berg Viktor Vekselberg was through the c5 raiser bid three c5 no no Viktor Vekselberg was never involved in c5 raiser Petco we had Vladimir Kuznetsov as a man not as a minority investor day and when we diligence him one of our key findings was that he was acting in independent capacity and he was investing his own money as a you national aniseh Swiss resident so you if you've had no business dealings with Viktor Vekselberg other than casual working c-5 has had no business dealings with with Viktor Vekselberg in a in a personal capacity earlier before the onset of sanctions I served on the board of a black-owned South African mining company and which Renault bombs the Vekselberg company as a minority investment alongside an Australian company called South 32 and my motivation for doing so was to support African entrepreneurship because this was one of the first black owned mining companies in the country was established with a British investment in which I was involved in and I was very supportive of the work that this company does to develop manganese mining in the Kalahari Desert and your role there was advisory formal what was the role there it was an advisory role so no ownership no ownership no equity no engagement you call them to help out on a project I was asked to support the company at the crucial time when they had a dispute on royalties when they were looking at the future of the Kalahari basin and the future of the manganese reserve say and also to help the company through a transition of the black leadership the black executive leadership of the cut year is that roughly 2017 so recently okay let on the ownership of c5 can you explain who owns c5 I mean you're described as the owner if it's a venture capital firm you probably of investors so your managing director you probably have some carry of some sort and then talk about the relationship between c5 razor bidco the Russian special purpose vehicle that was created is that owning what does it fit is it a subordinate role so see my capital so Jones to start with c5 razor boot code was was never a Russian special purpose vehicle this was a British special purpose vehicle which we established for our own investment into a European enterprise software company vladimir kuznetsov later invested as an angel investor into the same company and we required him to do it through our structure because it was transparent and subject to FCA regulation there's no ties back to c5 he's been not an owner in any way of c5 no not on c5 so C fibers owned by five families who helped to establish the business and grow the business and partner in the business these are blue chip very well known European and American families it's a small transatlantic community or family investors who believe that it's important to use private capital for the greater good right history dealing with Russians can you talk about your career you mentioned your career in South Africa earlier talk about your career deal in Russia when did you start working with Russian people I was the international stage Russian Russia's that time in 90s and 2000 and now certainly has changed a lot let's talk about your history and deal with the Russians so percent of the Soviet Union I think there was a significant window for Western investment into Russia and Western investment during this time also grew very significantly during my career as an investigator I often dealt with Russian organized crime cases and in fact I established my consulting business with a former head of the Central European division of the CIA who was an expert on Russia and probably one of the world's leading experts on Russia so to get his name William Lofgren so during the course of of building this business we helped many Western investors with problems and issues related to their investments in Russia so you were working for the West I was waiting for the West so you are the good side and but when you were absolutely and when and when you do work of this kind of course you get to know a lot of people in Russia and you make Russian contacts and like in any other country as as Alexander Solzhenitsyn the great Russian dissident wrote the line that separates good and evil doesn't run between countries it runs through the hearts of people and so in this context there are there are people in Russia who crossed my path and across my professional career who were good people who were working in a constructive way for Russia's freedom and for Russia's independence and that I continue to hold in high regard and you find there's no technical security risk the United States of America with your relationship with c5 and Russia well my my investigative work that related to Russia cases are all in the past this was all done in the past as you said I was acting in the interest of Western corporations and Western governments in their relations with Russia that's documented and you'd be prepared to be transparent about that absolutely that's all those many of those cases are well documented to corporations for which my consulting firm acted are very well known very well known businesses and it's pretty much all on the on the Podesta gaiting corruption we were we were we were helping Western corporations invest into Russia in a way that that that meant that they did not get in meshed in corruption that meant they didn't get blackmailed by Russia organized crime groups which meant that their investments were sustainable and compliant with the Foreign Corrupt Practices Act and other bribery regulation at war for everyone who I know that lives in Europe that's my age said when the EU was established there's a flight of Eastern Europeans and Russians into Western Europe and they don't have the same business practices so I'd imagine you'd run into some pretty seedy scenarios in this course of business well in drug-dealing under I mean a lot of underground stuff was going on they're different they're different government they're different economy I mean it wasn't like a structure so you probably were exposed to a lot many many post-conflict countries suffer from predatory predatory organized crime groups and I think what changed and of course of my invested investigative career was that many of these groups became digital and a lot of organized crime that was purely based in the physical world went into the into the digital world which was one of the other major reasons which led me to focus on cyber security and to invest in cyber security well gets that in a minute well that's great I may only imagine some of the things you're investigated it's easy to connect people with things when yeah things are orbiting around them so appreciate the candid response there I wanna move on to the other area I see in the stories national security risk conflict of interest in some of the stories you seeing this well is there conflict of interest this is an IT playbook I've seen over the years federal deals well you're gonna create some Fahd fear uncertainty and doubt there's always kind of accusations you know there's accusations around well are they self dealing and you know these companies or I've seen this before so I gotta ask you they're involved with you bought a company called s DB advisors it was one of the transactions that they're in I see connecting to in my research with the DoD Sally Donnelly who is Sally Donnelly why did you buy her business so I didn't buy Sonny Donnelly's business again so Sally Tony let's start with Sally darling so Sally Donny was introduced to me by Apple Mike Mullen as a former chairman of the Joint Chiefs of Staff and Sally served as his special advisor when he was the chairman of the Joint Chiefs of Staff Apple Mullen was one of the first operating parties which we had in c5 and he continues to serve Admiral Mullen the four start yes sir okay and he continues to serve as one of operating partners to this day salad only and that will Mike worked very closely with the Duke of Westminster on one of his charitable projects which we supported and which is close to my heart which is established a new veteran rehabilitation center for Britain upgrading our facility which dates back to the Second World War which is called Headley court to a brand-new state-of-the-art facility which was a half a billion dollar public-private partnership which Duke led and in this context that Ron Mullen and Sally helped the Duke and it's team to meet some of the best experts in the US on veteran rehabilitation on veteran care and on providing for veterans at the end of the service and this was a this was a great service which it did to the to this new center which is called the defense and national rehabilitation center which opened up last summer in Britain and is a terrific asset not only for Britain but also for allies and and so the acquisition she went on to work with secretary Manus in the Department of Defense yes in February Feb 9 you through the transaction yes in February 2017 Sally decided to do public service and support of safety matters when he joined the current administration when she left her firm she sold it free and clear to a group of local Washington entrepreneurs and she had to do that very quickly because the appointment of secretary mattis wasn't expected he wasn't involved in any political campaigns he was called back to come and serve his country in the nation's interest very unexpectedly and Sally and a colleague of us Tony de Martino because of their loyalty to him and the law did to the mission followed him into public service and my understanding is it's an EAJA to sell a business in a matter of a day or two to be able to be free and clear of title and to have no compliance issues while she was in government her consulting business didn't do any work for the government it was really focused on advising corporations on working with the government and on defense and national security issues I didn't buy Sonny's business one of c-5 portfolio companies a year later acquired SPD advisors from the owner supported with a view to establishing and expanding one of our cyber advising businesses into the US market and this is part of a broader bind bolt project which is called Haven ITC secure and this was just one of several acquisitions that this platform made so just for the record c5 didn't buy her company she repeat relieved herself of any kind of conflict of interest going into the public service your portfolio company acquired the company in short order because they knew the synergies because it would be were close to it so I know it's arm's length but as a venture capitalist you have no real influence other than having an investment or board seat on these companies right so they act independent in your structure absolutely make sure I get that's exactly right John but but not much more importantly only had no influence over the Jedi contract she acted as secretary mitosis chief of staff for a period of a year and have functions as described by the Government Accounting Office was really of a ministerial nature so she was much more focused on the Secretary's diary than she was focused on any contracting issues as you know government contracting is very complex it's very technical sally has as many wonderful talents and attributes but she's never claimed to be a cloud computing expert and of equal importance was when sally joined the government in february 17 jeddah wasn't even on the radar it wasn't even conceived as a possibility why did yet I cannot just for just for the record the Jedi contract my understanding is that and I'm not an expert on one government contracting but my understanding is that the RFP the request for proposals for the July contract came out in quarter three of this year for the first time earlier this year there was a publication of an intention to put out an RFP I think that happened in at the end of quarter one five yep classic yeah and then the RFP came out and called a three bits had to go in in November and I understand a decision will be made sometime next year what's your relationship well where's she now what she still was so sunny left finished the public service and and I think February March of this year and she's since gone on to do a fellowship with a think-tank she's also reestablished her own business in her own right and although we remain to be good friends I'm in no way involved in a business or a business deal I have a lot of friends in DC I'm not a really policy wonk of any kind we have a lot of friends who are it's it's common when it administrations turnover people you know or either appointed or parked a work force they leave and they go could they go to consultancy until the next yeah until the next and frustration comes along yeah and that's pretty common that's pretty cool this is what goes on yeah and I think this whole issue of potential conflicts of interest that salad only or Tony the Martino might have had has been addressed by the Government Accounting Office in its ruling which is on the public record where the GAO very clearly state that neither of these two individuals were anywhere near the team that was writing the terms for the general contract and that their functions were really as described by the GAO as ministerial so XI salient Antonia was such a long way away from this contact there's just no way that they could have influenced it in in in any respect and their relation to c5 is advisory do they and do they both are they have relations with you now what's the current relationship since since Sally and Tony went to do public service we've had no contact with them we have no reason of course to have contact with them in any way they were doing public service they were serving the country and serving the nation and since they've come out of public service we've we've not reestablished any commercial relationship so we talked earlier about the relation with AWS there's only if have a field support two incubators its accelerator does c5 have any portfolio companies that are actually bidding or working on the Jedi contract none what Santa John not zero zero so outside of c5 having relation with Amazon and no portfolios working with a Jedi contract there's no link to c5 other than a portfolio company buying Sally Donnelly who's kind of connected to general mattis up here yeah Selleck has six degrees of separation yes I think this is a constant theme in this conspiracy theory Jonas is six degrees of separation it's it's taking relationships that that that developed in a small community in Washington and trying to draw nefarious and sinister conclusions from them instead of focusing on competing on performance competing on innovation and competing on price and perhaps that's not taking place because the companies that are trying to do this do not have the capability to do so Andre I really appreciate you coming on and answering these tough questions I want to talk about what's going on with c5 now but I got to say you know I want to ask you one more time because I think this is critical you've worked for big-time company Kroll with terminus international market very crazy time time transformation wise you've worked with the CIA in Quantico the FBI nuclei in Quantico on a collaboration you were to know you've done work for the good guys you have see if I've got multiple years operating why why are you being put as a bad guy here I mean you're gonna you know being you being put out there with if you search your name on Google it says you're a spy all these evil all these things are connecting and we're kind of digging through them they kind of don't Joan I've had the privilege of a tremendous career I've had the privilege of working with with great leaders and having had great mentors if you do anything of significance if you do anything that's helping to make a difference or to make a change you should first expect scrutiny but also expect criticism when that scrutiny and criticism are fact-based that's helpful and that's good for society and for the health of society when on the other hand it is fake news or it is the construct of elaborate conspiracy theories that's not good for the health of society it's not good for the national interest is not good for for doing good business you've been very after you're doing business for the for the credibility people questioning your credibility what do you want to tell people that are watching this about your credibility that's in question again with this stuff you've done and you're continuing to do what's the one share something to the folks that might mean something to them you can sway them or you want to say something directly what would you say the measure of a person it is his or her conduct in c-five we are continuing to build our business we continue to invest in great companies we continue to put cravat private capital to work to help drive innovation including in the US market we will continue to surround ourselves with good people and we will continue to set the highest standards for the way in which we invest and build our businesses it's common I guess I would say that I'm getting out as deep as you are in the in term over the years with looking at these patterns but the pattern that I see is very simple when bad guys get found out they leave the jurisdiction they flee they go do something else and they reinvent themselves and scam someone else you've been doing this for many many years got a great back record c5 now is still doing business continuing not skipping a beat the story comes out hopefully kind of derail this or something else will think we're gonna dig into it so than angle for sure but you still have investments you're deploying globally talk about what c5 is doing today tomorrow next few months the next year you have deals going down you're still doing business you have business out there our business has not slowed down for a moment we have the support of tremendous investors we have the support of tremendous partners in our portfolio companies we have the support of a great group of operating partners and most important of all we have a highly dedicated highly focused group of investment teams of very experienced and skilled professionals who are making profitable investments and so we are continuing to build our business we have a very full deal pipeline we will be completing more investment transactions next week and we are continue to scalar assets under management next year we will have half a billion dollars of assets under management and we continue to focus on our mission which is to use private capital to help innovate and drive a change for good after again thank you we have the story in the BBC kicked all this off the 12th no one's else picked it up I think other journals have you mentioned earlier you think this there's actually people putting this out you you call out let's got John wheeler we're going to look into him do you think there's an organized campaign right now organized to go after you go after Amazon are you just collateral damage you mentioned that earlier is there a funded effort here well Bloomberg has reported on the fact that that one of the competitors for this bit of trying to bring together a group of companies behind a concerted effort specifically to block Amazon Web Services and so we hear these reports we see this press speculation if that was the case of course that would not be good for a fair and open and competitive bidding process which is I think is the Department of Defense's intention and what is in the interests of the country at a time when national security innovation will determine not only the fate of future Wars but also the fate of a sons and daughters who are war fighters and to be fair to process having something undermine it like a paid-for dossier which I have multiple sources confirming that's happened it's kind of infiltrating the journalists and so that's kind of where I'm looking at right now is that okay the BBC story just didn't feel right to me credible outlet you work for them you did investigations for them back in the day have you talked to them yes no we are we are we are in correspondence with the BBC I think in particular we want them to address the fact that they've conflated facts in this story playing this parlor game of six degrees of separation we want them to address the important principle of the independence of the in editorial integrity at the fact that they did not disclose that they expert on this program actually has significant conflicts of interests of his own and finally we want them to disclose the fact that it's not c5 and Amazon Web Services who have had a relationship with the scope of our technology park the scope of our technology park actually has a very broad set of Western partners still highly engaged there and even in recent weeks of hosted major cloud contracts and conferences there and and all of this should have been part of the story in on the record well we're certainly going to dig into it I appreciate your answer the tough questions we're gonna certainly look into this dossier if this is true this is bad and if there's people behind it acting behind it then certainly we're gonna report on that and I know these were tough questions thanks for taking the time Andre to to answer them with us Joan thanks for doing a deep dive on us okay this is the Q exclusive conversation here in Palo Alto authority narc who's the founder of c-5 capital venture capital firm in the center of a controversy around this BBC story which we're going to dig into more this has been exclusive conversation I'm John Tory thanks for watching [Music] you
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Part 1: Andre Pienaar, C5 Capital | Exclusive CUBE Conversation, December 2018
[Music] when welcome to the special exclusive cube conversation here in Palo Alto in our studios I'm John for your host of the cube we have a very special guest speaking for the first time around some alleged alleged accusations and also innuendo around the Amazon Web Services Jedi contract and his firm c5 capital our guest as Andre Pienaar who's the founder of c5 capital Andre is here for the first time to talk about some of the hard conversations and questions surrounding his role his firm and the story from the BBC Andre thanks for a rat for meeting with me John great to have me thank you so you're at the center of a controversy and just for the folks who know the cube know we interviewed a lot of people I've interviewed you at Amazon web sources summit Teresa Carl's event and last year I met you and bought a rein the work you're doing there so I've met you a few times so I don't know your background but I want to drill into it because I was surprised to see the BBC story come out last week that was basically accusing you of many things including are you a spy are you infiltrating the US government through the Jedi contract through Amazon and knowing c-5 capital I saw no correlation when reading your article I was kind of disturbed but then I saw I said a follow-on stories it just didn't hang together so I wanted to press you on some questions and thanks for coming in and addressing them appreciate it John thanks for having me so first thing I want to ask you is you know it has you at the center this firm c5 capital that you the founder of at the center of what looks like to be the fight for the big ten billion dollar DoD contract which has been put out to multiple vendors so it's not a single source deal we've covered extensively on silicon angle calm and the cube and the government the government Accounting Office has ruled that there are six main benefits of going with a sole provider cloud this seems to be the war so Oracle IBM and others have been been involved we've been covering that so it kind of smells like something's going along with the story and I just didn't believe some of the things I read and I want to especially about you and see five capitals so I want to dig into what the first thing is it's c5 capital involved in the Jedi contract with AWS Sean not at all we have absolutely no involvement in the Jedi contract in any way we're not a bidder and we haven't done any lobbying as has been alleged by some of the people who've been making this allegation c5 has got no involvement in the general contract we're a venture capital firm with a British venture capital firm we have the privilege of investing here in the US as a foreign investor and our focus really is on the growth and the success of the startups that we are invested in so you have no business interest at all in the deal Department of Defense Jedi contract none whatsoever okay so to take a minute to explain c5 firm I read some of the stories there and some of the things were intricate structures of c5 cap made it sound like there was like a cloak-and-dagger situation I want to ask you some hard questions around that because there's a link to a Russian situation but before we get to there I want to ask you explain what is c5 capital your mission what are the things that you're doing c5 is a is a British venture capital firm and we are focused on investing into fast-growing technology companies in three areas cloud computing cyber security and artificial intelligence we have two parts our business c5 capital which invests into late stage companies so these are companies that typically already have revenue visibility and profitability but still very fast-growing and then we also have a very early stage startup platform that look at seed state investment and this we do through two accelerators to social impact accelerators one in Washington and one in Bahrain and it's just size of money involved just sort of order magnitude how many funds do you have how is it structure again just share some insight on that is it is there one firm is there multiple firms how is it knows it work well today the venture capital business has to be very transparent it's required by compliance we are a regulated regulated firm we are regulated in multiple markets we regulated here in the US the sec as a foreign investor in london by the financial conduct authority and in Luxembourg where Afonso based by the regulatory authorities there so in the venture capital industry today you can't afford to be an opaque business you have to be transparent at all levels and money in the Western world have become almost completely transparent so there's a very comprehensive and thorough due diligence when you onboard capital called know your client and the requirements standard requirement now is that whenever you're onboard capital from investor you're gonna take it right up to the level of the ultimate beneficial ownership so who actually owns this money and then every time you invest and you move your money around it gets diligence together different regulators and in terms of disclosure and the same applies often now with clients when our portfolio companies have important or significant clients they also want to know who's behind the products and the services they receive so often our boards our board directors and a shell team also get diligence by by important clients so explain this piece about the due diligence and the cross country vetting that goes on is I think it's important I want to get it out because how long has been operating how many deals have you done you mentioned foreign investor in the United States you're doing deals in the United States I know I've met one of your portfolio companies at an event iron iron on it iron net general Keith Alexander former head of the NSA you know get to just work with him without being vetted I guess so so how long a c5 capital been in business and where have you made your investments you mentioned cross jurisdiction across countries whatever it's called I don't know that so we've been and we've been in existence for about six years now our main focus is investing in Europe so we help European companies grow globally Europe historically has been underserved by venture capital we on an annual basis we invest about twenty seven billion dollars gets invested in venture capital in Europe as opposed to several multiples of that in the US so we have a very important part to play in Europe to how European enterprise software companies grow globally other important markets for us of course are Israel which is a major center of technology innovation and and the Middle East and then the u.s. the u.s. is still the world leader and venture capital both in terms of size but also in terms of the size of the market and of course the face and the excitement of the innovation here I want to get into me early career because again timing is key we're seeing this with you know whether it's a Supreme Court justice or anyone in their career their past comes back to haunt them it appears that has for you before we get there I want to ask you about you know when you look at the kind of scope of fraud and corruption that I've seen in just on the surface of government thing the government bit Beltway bandits in America is you got a nonprofit that feeds a for-profit and then what you know someone else runs a shell corporation so there's this intricate structures and that word was used which it kind of implies shell corporations a variety of backroom kind of smokey deals going on you mentioned transparency I do you have anything to hide John in in in our business we've got absolutely nothing to hide we have to be transparent we have to be open if you look at our social media profile you'll see we are communicating with the market almost on a daily basis every time we make an investment we press release that our website is very clear about who's involved enough who our partners are and the same applies to my own personal website and so in terms of the money movement around in terms of deploying investments we've seen Silicon Valley VCS move to China get their butts handed to them and then kind of adjust their scenes China money move around when you move money around you mentioned disclosure what do you mean there's filings to explain that piece it's just a little bit so every time we make an investment into a into a new portfolio company and we move the money to that market to make the investment we have to disclose who all the investors are who are involved in that investment so we have to disclose the ultimate beneficial ownership of all our limited partners to the law firms that are involved in the transactions and those law firms in turn have applications in terms of they own anti-money laundering laws in the local markets and this happens every time you move money around so I I think that the level of transparency in venture capital is just continue to rise exponentially and it's virtually impossible to conceal the identity of an investor this interesting this BBC article has a theme of national security risk kind of gloom and doom nuclear codes as mentioned it's like you want to scare someone you throw nuclear codes at it you want to get people's attention you play the Russian card I saw an article on the web that that said you know anything these days the me2 movement for governments just play the Russian card and you know instantly can discredit someone's kind of a desperation act so you got confident of interest in the government national security risk seems to be kind of a theme but before we get into the BBC news I noticed that there was a lot of conflated pieces kind of pulling together you know on one hand you know you're c5 you've done some things with your hat your past and then they just make basically associate that with running amazon's jedi project yes which i know is not to be true and you clarified that joan ends a problem joan so as a venture capital firm focused on investing in the space we have to work with all the Tier one cloud providers we are great believers in commercial cloud public cloud we believe that this is absolutely transformative not only for innovation but also for the way in which we do venture capital investment so we work with Amazon Web Services we work with Microsoft who work with Google and we believe that firstly that cloud has been made in America the first 15 companies in the world are all in cloud companies are all American and we believe that cloud like the internet and GPS are two great boons which the US economy the u.s. innovation economy have provided to the rest of the world cloud computing is reducing the cost of computing power with 50 percent every three years opening up innovation and opportunities for Entrepreneurship for health and well-being for the growth of economies on an unprecedented scale cloud computing is as important to the global economy today as the dollar ease as the world's reserve currency so we are great believers in cloud we great believers in American cloud computing companies as far as Amazon is concerned our relationship with Amazon Amazon is very Amazon Web Services is very clear and it's very defined we participate in a public Marcus program called AWS activate through which AWS supports hundreds of accelerators around the world with know-how with mentoring with teaching and with cloud credits to help entrepreneurs and startups grow their businesses and we have a very exciting focus for our two accelerators which is on in Washington we focus on peace technology we focus on taking entrepreneurs from conflict countries like Sudan Nigeria Pakistan to come to Washington to work on campus in the US government building the u.s. Institute for peace to scale these startups to learn all about cloud computing to learn how they can grow their businesses with cloud computing and to go back to their own countries to build peace and stability and prosperity their heaven so we're very proud of this mission in the Middle East and Bahrain our focus is on on female founders and female entrepreneurs we've got a program called nebula through which we empower female founders and female entrepreneurs interesting in the Middle East the statistics are the reverse from what we have in the West the majority of IT graduates in the Middle East are fimo and so there's a tremendous talent pool of of young dynamic female entrepreneurs coming out of not only the Gulf but the whole of the MENA region how about a relation with Amazon websites outside of their normal incubators they have incubators all over the place in the Amazon put out as Amazon Web Services put out a statement that said hey you know we have a lot of relationships with incubators this is normal course of business I know here in Silicon Valley at the startup loft this is this is their market filled market playbook so you fit into that is that correct as I'm I get that that's that's absolutely correct what we what is unusual about a table insists that this is a huge company that's focused on tiny startups a table started with startups it double uses first clients with startups and so here you have a huge business that has a deep understanding of startups and focus on startups and that's enormous the attractor for us and terrific for our accelerators department with them have you at c5 Capitol or individually have any formal or conversation with Amazon employees where you've had outside of giving feedback on products where you've tried to make change on their technology make change with their product management teams engineering you ever had at c5 capital whore have you personally been involved in influencing Amazon's product roadmap outside they're just giving normal feedback in the course of business that's way above my pay grade John firstly we don't have that kind of technical expertise in C 5 C 5 steam consists of a combination of entrepreneurs like myself people understand money really well and leaders we don't have that level of technical expertise and secondly that's what one our relationship with AWS is all about our relationship is entirely limited to the two startups and making sure that the two accelerators in making sure that the startups who pass through those accelerators succeed and make social impact and as a partner network component Amazon it's all put out there yes so in in a Barren accelerator we've we formed part of the Amazon partner network and the reason why we we did that was because we wanted to give some of the young people who come through the accelerator and know mastering cloud skills an opportunity to work on some real projects and real live projects so some of our young golf entrepreneurs female entrepreneurs have been working on building websites on Amazon Cloud and c5 capital has a relationship with former government officials you funded startups and cybersecurity that's kind of normal can you explain that positioning of it of how former government if it's whether it's US and abroad are involved in entrepreneurial activities and why that is may or may not be a problem certainly is a lot of kind of I would say smoke around this conversation around coffin of interest and you can you explain intelligence what that was it so I think the model for venture capital has been evolving and increasingly you get more and more differentiated models one of the key areas in which the venture capital model is changed is the fact that operating partners have become much more important to the success of venture capital firms so operating partners are people who bring real world experience to the investment experience of the investment team and in c-five we have the privilege of having a terrific group of operating partners people with both government and commercial backgrounds and they work very actively enough firm at all levels from our decision-making to the training and the mentoring of our team to helping us understand the way in which the world is exchanging to risk management to helping uh portfolio companies grow and Silicon Valley true with that to injuries in Horowitz two founders mr. friendly they bring in operating people that have entrepreneurial skills this is the new model understand order which has been a great source of inspiration to us for our model and and we built really believe this is a new model and it's really critical for the success of venture capitals to be going forward and the global impact is pretty significant one of things you mentioned I want to get your take on is as you operate a global transaction a lots happened a lot has to happen I mean we look at the ICO market on the cryptocurrency side its kind of you know plummeting obsoletes it's over now the mood security children's regulatory and transparency becomes critical you feel fully confident that you haven't you know from a regulatory standpoint c5 capital everything's out there absolutely risk management and regulated compliance and legal as the workstream have become absolutely critical for the success of venture capital firms and one of the reasons why this becomes so important John is because the venture capital world over the last few years have changed dramatically historically all the people involved in venture capital had very familiar names and came from very familiar places over the last few years with a diversification of global economic growth we've seen it's very significant amounts of money being invest invested in startups in China some people more money will invest in startups this year in China than in the US and we've seen countries like Saudi Arabia becoming a major source of venture capital funding some people say that as much as 70% of funding rounds this year in some way or another originated from the Gulf and we've seen places like Russia beginning to take an interest in technology innovation so the venture capital world is changing and for that reason compliance and regulation have become much more important but if Russians put 200 million dollars in face book and write out the check companies bright before that when the after 2008 we saw the rise of social networking I think global money certainly has something that I think a lot of people start getting used to and I want on trill down into that a little bit we talked about this BBC story that that hit and the the follow-on stories which actually didn't get picked up was mostly doing more regurgitation of the same story but one of the things that that they focus in on and the story was you and the trend now is your past is your enemy these days you know they try to drum up stuff in the past you've had a long career some of the stuff that they've been bringing in to paint you and the light that they did was from your past so I wanted to explore that with you I know you this is the first time you've talked about this and I appreciate you taking the time talk about your early career your background where you went to school because the way I'm reading this it sounds like you're a shady character I like like I interviewed on the queue but I didn't see that but you know I'm going to pressure here for that if you don't mind I'd like to to dig into that John thank you for that so I've had the I've had the privilege of a really amazingly interesting life and at the heart of at the heart of that great adventures been people and the privilege to work with really great people and good people I was born in South Africa I grew up in Africa went to school there qualified as a lawyer and then came to study in Britain when I studied international politics when I finished my studies international politics I got head hunted by a US consulting firm called crow which was a start of a 20 years career as an investigator first in crawl where I was a managing director in the London and then in building my own consulting firm which was called g3 and all of this led me to cybersecurity because as an investigator looking into organized crime looking into corruption looking into asset racing increasingly as the years went on everything became digital and I became very interested in finding evidence on electronic devices but starting my career and CRO was tremendous because Jules Kroll was a incredible mentor he could walk through an office and call everybody by their first name any Kroll office anywhere in the world and he always took a kindly interest in the people who work for him so it was a great school to go to and and I worked on some terrific cases including some very interesting Russian cases and Russian organized crime cases just this bag of Kroll was I've had a core competency in doing investigative work and also due diligence was that kind of focus yes although Kroll was the first company in the world to really have a strong digital practice led by Alan Brugler of New York Alan established the first computer forensics practice which was all focused about finding evidence on devices and everything I know about cyber security today started with me going to school with Alan Brolin crawl and they also focused on corruption uncovering this is from Wikipedia Kroll clients help Kroll helps clients improve operations by uncovering kickbacks fraud another form of corruptions other specialty areas is forensic accounting background screening drug testing electronic investigation data recovery SATA result Omar's McLennan in 2004 for 1.9 billion mark divested Kroll to another company I'll take credit risk management to diligence investigator in Falls Church Virginia over 150 countries call Kroll was the first CRO was the first household brand name in this field of of investigations and today's still is probably one of the strongest brand names and so it was a great firm to work in and was a great privilege to be part of it yeah high-end high-profile deals were there how many employees were in Kroll cuz I'd imagine that the alumni that that came out of Kroll probably have found places in other jobs similar to yes do an investigative work like you know they out them all over the world many many alumni from Kroll and many of them doing really well and doing great work ok great so now the next question want to ask you is when you in Kroll the South Africa connection came up so I got to ask you it says business side that you're a former South African spy are you a former South African spy no John I've never worked for any government agency and in developing my career my my whole focus has been on investigations out of the Kroll London office I did have the opportunity to work in South Africa out of the Kroll London office and this was really a seminal moment in my career when I went to South Africa on a case for a major international credit-card company immediately after the end of apartheid when democracy started to look into the scale and extent of credit card fraud at the request of this guy what year was there - how old were you this was in 1995 1996 I was 25 26 years old and one of the things which this credit card company asked me to do was to assess what was the capability of the new democratic government in South Africa under Nelson Mandela to deal with crime and so I had the privilege of meeting mr. Mandela as the president to discuss this issue with him and it was an extraordinary man the country's history because there was such an openness and a willingness to to address issues of this nature and to grapple with them so he was released from prison at that time I remember those days and he became president that's why he called you and you met with him face to face of a business conversation around working on what the future democracy is and trying to look at from a corruption standpoint or just kind of in general was that what was that conversation can you share so so that so the meeting involved President Mandela and and the relevant cabinet ministers the relevant secretaries and his cabinet - responsible for for these issues and the focus of our conversation really started with well how do you deal with credit card fraud and how do you deal with large-scale fraud that could be driven by organized crime and at the time this was an issue of great concern to the president because there was bombing in Kate of a Planet Hollywood cafe where a number of people got very severely injured and the president believed that this could have been the result of a protection racket in Cape Town and so he wanted to do something about it he was incredibly proactive and forward-leaning and in an extraordinary way he ended the conversation by by asking where the Kroll can help him and so he commissioned Kroll to build the capacity of all the black officers that came out of the ANC and have gone into key government positions on how to manage organized crime investigations it was the challenge at that time honestly I can imagine apartheid I remember you know I was just at a college that's not properly around the same age as you it was a dynamic time to say the least was his issue around lack of training old school techniques because you know that was right down post-cold-war and then did what were the concerns not enough people was it just out of control was it a corrupt I mean just I mean what was the core issue that Nelson wanted to hire Kroll and you could work his core issue was he wanted to ensure the stability of South Africa's democracy that was his core focus and he wanted to make South Africa an attractive place where international companies felt comfortable and confident in investing and that was his focus and he felt that at that time because so many of the key people in the ANC only had training in a cold war context that there wasn't a Nessy skill set to do complex financial or more modern investigations and it was very much focused he was always the innovator he was very much focused on bringing the best practices and the best investigative techniques to the country he was I felt in such a hurry that he doesn't want to do this by going to other governments and asking for the help he wanted to Commission it himself and so he gave he gave a crawl with me as the project leader a contract to do this and my namesake Francois Pienaar has become very well known because of the film Invictus and he's been he had the benefit of Mandela as a mentor and as a supporter and that changed his career the same thing happened to me so what did he actually asked you to do was it to train build a force because there's this talk that and was a despite corruption specifically it was it more both corruption and or stability because they kind of go hand in hand policy and it's a very close link between corruption and instability and and president Ellis instructions were very clear to Crowley said go out and find me the best people in the world the most experienced people in the world who can come to South Africa and train my people how to fight organized crime so I went out and I found some of the best people from the CIA from mi6 the British intelligence service from the Drug Enforcement Agency here in the US form officers from the Federal Bureau of Investigation's detectives from Scotland Yard prosecutors from the US Justice Department and all of them for a number of years traveled to South Africa to train black officers who were newly appointed in key roles in how to combat organized crime and this was you acting as an employee he had crow there's not some operative this is he this was me very much acting as a as an executive and crow I was the project leader Kroll was very well structured and organized and I reported to the chief executive officer in the London office nor Garret who was the former head of the CIA's Near East Division and Nelson Mandela was intimately involved in this with you at Krall President Mandela was the ultimate support of this project and he then designated several ministers to work on it and also senior officials in the stories that had been put out this past week they talked about this to try to make it sound like you're involved on two sides of the equation they bring up scorpions was this the scorpions project that they referred to so it was the scorpions scorpion sounds so dangerous and a movie well there's a movie a movie does feature this so at the end of the training project President Mandela and deputy president Thabo Mbeki who subsequently succeeded him as president put together a ministerial committee to look at what should they do with the capacity that's been built with this investment that they made because for a period of about three years we had all the leading people the most experienced people that have come out of some of the best law enforcement agencies and some of the best intelligence services come and trained in South Africa and this was quite this was quite something John because many of the senior officers in the ANC came from a background where they were trained by the opponents of the people came to treat trained them so so many of them were trained by the Stasi in East Germany some of them were trained by the Russian KGB some of them were trained by the Cubans so we not only had to train them we also had to win their trust and when we started this that's a diverse set of potential dogma and or just habits a theory modernised if you will right is that what the there was there was a question of of learning new skills and there was a question about also about learning management capabilities there was also question of learning the importance of the media for when you do difficult and complex investigations there was a question about using digital resources but there was also fundamentally a question of just building trust and when we started this program none of the black officers wanted to be photographed with all these foreign trainers who were senior foreign intelligence officers when we finished that everyone wanted to be in the photograph and so this was a great South African success story but the President and the deputy president then reflected on what to do with his capacity and they appointed the ministerial task force to do this and we were asked to make recommendations to this Minister ministerial task force and one of the things which we did was we showed them a movie because you referenced the movie and the movie we showed them was the untouchables with Kevin Costner and Sean Connery which is still one of my favorite and and greatest movies and the story The Untouchables is about police corruption in Chicago and how in the Treasury Department a man called Eliot Ness put together a group of officers from which he selected from different places with clean hands to go after corruption during the Probie and this really captured the president's imagination and so he said that's what he want and Ella yeah okay so he said della one of the untouchables he wanted Eliot Ness exactly Al Capone's out there and and how many people were in that goodness so we asked that we we established the government then established decided to establish and this was passed as a law through Parliament the director of special operations the DSO which colloquy became known as the scorpions and it had a scorpion as a symbol for this unit and this became a standalone anti-corruption unit and the brilliant thing about it John was that the first intake of scorpion officers were all young black graduates many of them law graduates and at the time Janet Reno was the US Attorney General played a very crucial role she allowed half of the first intake of young cratchits to go to Quantico and to do the full FBI course in Quantico and this was the first group of foreign students who've ever been admitted to Quantico to do the full Quantico were you involved at what score's at that time yes sir and so you worked with President Mandela yes the set of the scorpions is untouchable skiing for the first time as a new democracy is emerging the landscape is certainly changing there's a transformation happening we all know the history laugh you don't watch Invictus probably great movie to do that you then worked with the Attorney General United States to cross-pollinate the folks in South Africa black officers law degrees Samar's fresh yes this unit with Quantico yes in the United States I had the privilege of attending the the graduation ceremony of the first of South African officers that completed the Quantico course and representing crow they on the day you had us relationships at that time to crawl across pollen I had the privilege of working with some of the best law enforcement officers and best intelligence officers that has come out of the u.s. services and they've been tremendous mentors in my career they've really shaped my thinking they've shaped my values and they've they've shaved my character so you're still under 30 at this time so give us a is that where this where are we in time now just about a 30 so you know around the nine late nineties still 90s yeah so client-server technologies there okay so also the story references Leonard McCarthy and these spy tapes what is this spy tape saga about it says you had a conversation with McCarthy me I'm thinking that a phone tap explain that spy tape saga what does it mean who's Lennon McCarthy explain yourself so so so Leonard McCarthy it's a US citizen today he served two terms as the vice president for institutional integrity at the World Bank which is the world's most important anti-corruption official he started his career as a prosecutor in South Africa many years ago and then became the head of the economic crimes division in the South African Justice Department and eventually became the head of the scorpions and many years after I've left Kroll and were no longer involved in in the work of the scorpions he texted me one evening expressing a concern and an anxiety that I had about the safety of his family and I replied to him with two text messages one was a Bible verse and the other one was a Latin saying and my advice name was follow the rule of law and put the safety of your family first and that was the advice I gave him so this is how I imagined the year I think of it the internet was just there this was him this was roundabout 2000 December 2007 okay so there was I phone just hit so text messaging Nokia phones all those big yeah probably more text message there so you sitting anywhere in London you get a text message from your friend yep later this past late tonight asking for help and advice and I gave him the best advice I can he unfortunately was being wiretapped and those wiretaps were subsequently published and became the subject of much controversy they've now been scrutinized by South Africa's highest court and the court has decided that those wiretaps are of no impact and of importance in the scheme of judicial decision-making and our unknown provenance and on and on unknown reliability they threw it out basically yeah they're basically that's the president he had some scandals priors and corruption but back to the tapes you the only involvement on the spy tapes was friend sending you a text message that says hey I'm running a corruption you know I'm afraid for my life my family what do I do and you give some advice general advice and that's it as there was there any more interactions with us no that's it that's it okay so you weren't like yeah working with it hey here's what we get strategy there was nothing that going on no other interactions just a friendly advice and that's what they put you I gave him my I gave him my best advice when you when you work in when you work as an investigator very much as and it's very similar in venture capital it's all about relationships and you want to preserve relationships for the long term and you develop deep royalties to its people particularly people with whom you've been through difficult situations as I have been with Leonard much earlier on when I was still involved in Kroll and giving advice to South African government on issues related to the scorpius so that that has a lot of holes and I did think that was kind of weird they actually can produce the actual tax I couldn't find that the spy tapes so there's a spy tape scandal out there your name is on out on one little transaction globbed on to you I mean how do you feel about that I mean you must've been pretty pissed when you saw that when you do it when when you do when you do investigative work you see really see everything and all kinds of things and the bigger the issues that you deal with the more frequently you see things that other people might find unusual I are you doing any work right now with c5 at South Africa and none whatsoever so I've I retired from my investigative Korea in 2014 I did terrific 20 years as an investigator during my time as investigator I came to understood the importance of digital and cyber and so at the end of it I saw an opportunity to serve a sector that historically have been underserved with capital which is cyber security and of course there are two areas very closely related to cyber security artificial intelligence and cloud and that's why I created c5 after I sold my investigator firm with five other families who equally believed in the importance of investing private capital to make a difference invest in private capital to help bring about innovation that can bring stability to the digital world and that's the mission of c-5 before I get to the heart news I want to drill in on the BBC stories I think that's really the focal point of you know why we're talking just you know from my standpoint I remember living as a young person in that time breaking into the business you know my 20s and 30s you had Live Aid in 1985 and you had 1995 the internet happened there was so much going on between those that decade 85 to 95 you were there I was an American so I didn't really have a lot exposure I did some work for IBM and Europe in 1980 says it's co-op student but you know I had some peak in the international world it must been pretty dynamic the cross-pollination the melting pot of countries you know the Berlin Wall goes down you had the cold war's ending you had apartheid a lot of things were going on around you yes so in that dynamic because if if the standard is you had links to someone you know talked about why how important it was that this melting pot and how it affected your relationships and how it looks now looking back because now you can almost tie anything to anything yes so I think the 90s was one of the most exciting periods of time because you had the birth of the internet and I started working on Internet related issues yet 20 million users today we have three and a half billion users and ten billion devices unthinkable at the time but in the wake of the internet also came a lot of changes as you say the Berlin Wall came down democracy in South Africa the Oslo peace process in the time that I worked in Kroll some of them made most important and damaging civil wars in Africa came to an end including the great war in the Congo peace came to Sudan and Angola the Ivory Coast so a lot of things happening and if you have a if you had a an international career at that time when globalization was accelerating you got to no a lot of people in different markets and both in crow and in my consulting business a key part of what it but we did was to keep us and Western corporations that were investing in emerging markets safe your credibility has been called in questions with this article and when I get to in a second what I want to ask you straight up is it possible to survive in the international theatre to the level that you're surviving if what they say is true if you if you're out scamming people or you're a bad actor pretty much over the the time as things get more transparent it's hard to survive right I mean talk about that dynamic because I just find it hard to believe that to be successful the way you are it's not a johnny-come-lately firms been multiple years operating vetted by the US government are people getting away in the shadows is it is is it hard because I almost imagine those are a lot of arbitrage I imagine ton of arbitrage that you that are happening there how hard or how easy it is to survive to be that shady and corrupt in this new era because with with with investigated with with intelligence communities with some terrific if you follow the money now Bitcoin that's a whole nother story but that's more today but to survive the eighties and nineties and to be where you are and what they're alleging I just what's your thoughts well to be able to attract capital and investors you have to have very high standards of governance and compliance because ultimately that's what investors are looking for and what investors will diligence when they make an investment with you so to carry the confidence of investors good standards of governance and compliance are of critical importance and raising venture capital and Europe is tough it's not like the US babe there's an abundance of venture capital available it's very hard Europe is under served by capital the venture capital invested in the US market is multiple of what we invest in Europe so you need to be even more focused on governance and compliance in Europe than you would be perhaps on other markets I think the second important point with Gmail John is that technology is brought about a lot of transparency and this is a major area of focus for our piece tech accelerator where we have startups who help to bring transparency to markets which previously did not have transparency for example one of the startups that came through our accelerator has brought complete transparency to the supply chain for subsistence farmers in Africa all the way to to the to the shelf of Walmart or a big grocery retailer in in the US or Europe and so I think technology is bringing a lot more more transparency we also have a global anti-corruption Innovation Challenge called shield in the cloud where we try and find and recognize the most innovative corporations governments and countries in the space so let's talk about the BBC story that hit 12 it says is a US military cloud the DoD Jedi contractor that's coming to award the eleventh hour safe from Russia fears over sensitive data so if this essentially the headline that's bolded says a technology company bidding for a Pentagon contract that's Amazon Web Services to store sensitive data has close partnerships with a firm linked to a sanctioned Russian oligarch the BBC has learned goes on to essentially put fear and tries to hang a story that says the national security of America is at risk because of c5u that's what we're talking about right now so so what's your take on this story I mean did you wake up and get an email said hey check out the BBC you're featured in and they're alleging that you have links to Russia and Amazon what Jon first I have to go I first have to do a disclosure I've worked for the BBC as an investigator when I was in Kroll and in fact I let the litigation support for the BBC in the biggest libel claim in British history which was post 9/11 when the BBC did a broadcast mistakenly accusing a mining company in Africa of laundering money for al-qaeda and so I represented the BBC in this case I was the manager hired you they hired me to delete this case for them and I'm I helped the BBC to reduce a libel claim of 25 million dollars to $750,000 so I'm very familiar with the BBC its integrity its standards and how it does things and I've always held the BBC in the highest regard and believed that the BBC makes a very important contribution to make people better informed about the world so when I heard about the story I was very disappointed because it seemed to me that the BBC have compromised the independence and the independence of the editorial control in broadcasting the story the reason why I say that is because the principal commentator in this story as a gentleman called John Wheeler who's familiar to me as a someone who's been trolling our firm on internet for the last year making all sorts of allegations the BBC did not disclose that mr. Weiler is a former Oracle executive the company that's protesting the Jedi bidding contract and secondly that he runs a lobbying firm with paid clients and that he himself often bid for government contracts in the US government context you're saying that John Wheeler who's sourced in the story has a quote expert and I did check him out I did look at what he was doing I checked out his Twitter he seems to be trying to socialise a story heavily first he needed eyes on LinkedIn he seems to be a consultant firm like a Beltway yes he runs a he runs a phone called in interoperability Clearing House and a related firm called the IT acquisition Advisory Council and these two organizations work very closely together the interoperability Clearing House or IC H is a consulting business where mr. Weiler acts for paying clients including competitors for this bidding contract and none of this was disclosed by the BBC in their program the second part of this program that I found very disappointing was the fact that the BBC in focusing on the Russian technology parks cocuwa did not disclose the list of skok of our partners that are a matter of public record on the Internet if you look at this list very closely you'll see c5 is not on there neither Amazon Web Services but the list of companies that are on there are very familiar names many of them competitors in this bidding process who acted as founding partners of skok about Oracle for example as recently as the 28th of November hosted what was described as the largest cloud computing conference in Russia's history at Skolkovo this is the this is the place which the BBC described as this notorious den of spies and at this event which Oracle hosted they had the Russian presidential administration on a big screen as one of their clients in Russia so some Oracle is doing business in Russia they have like legit real links to Russia well things you're saying if they suddenly have very close links with Skolkovo and so having a great many other Khayyam is there IBM Accenture cisco say Microsoft is saying Oracle is there so Skolkovo has a has a very distinguished roster of partners and if the BBC was fair and even-handed they would have disclosed us and they would have disclosed the fact that neither c5 nor Amazon feature as Corcovado you feel that the BBC has been duped the BBC clearly has been duped the program that they broadcasted is really a parlor game of six degrees of separation which they try to spun into a national security crisis all right so let's tell us John while ago you're saying John Wyler who's quoted in the story as an expert and by the way I read in the story my favorite line that I wanted to ask you on was there seems to be questions being raised but the question is being raised or referring to him so are you saying that he is not an expert but a plant for the story what's what's his role he's saying he works for Oracle or you think do you think he's being paid by Oracle like I can't comment on mr. Wireless motivation what strikes me is the fact that is a former Oracle executive what's striking is that he clearly on his website for the IC H identifies several competitors for the Jedi business clients and that all of this should have been disclosed by the BBC rather than to try and characterize and portray him as an independent expert on this story well AWS put out a press release or a blog post essentially hum this you know you guys had won it we're very clear and this I know it goes to the top because that's how Amazon works nothing goes out until it goes to the top which is Andy chassis and the senior people over there it says here's the relationship with c5 and ATS what school you use are the same page there but also they hinted the old guard manipulation distant I don't think they use the word disinformation campaign they kind of insinuate it and that's what I'm looking into I want to ask you are you part are you a victim of a disinformation campaign do you believe that you're not a victim being targeted with c5 as part of a disinformation campaign put on by a competitor to AWS I think what we've seen over the course of this last here is an enormous amount of disinformation around this contract and around this bidding process and they've a lot of the information that has been disseminated has not only not been factual but in some cases have been patently malicious well I have been covering Amazon for many many years this guy Tom Wyler is in seems to be circulating multiple reports invested in preparing for this interview I checked Vanity Fair he's quoted in Vanity Fair he's quoted in the BBC story and there's no real or original reporting other than those two there's some business side our article which is just regurgitating the Business Insider I mean the BBC story and a few other kind of blog stories but no real original yes no content don't so in every story that that's been written on this subject and as you say most serious publication have thrown this thrown these allegations out but in the in those few instances where they've managed to to publish these allegations and to leverage other people's credibility to their advantage and leverage other people's credibility for their competitive advantage John Wheeler has been the most important and prominent source of the allegations someone who clearly has vested commercial interests someone who clearly works for competitors as disclosed on his own website and none of this has ever been surfaced or addressed I have multiple sources have confirmed to me that there's a dossier that has been created and paid for by a firm or collection of firms to discredit AWS I've seen some of the summary documents of that and that is being peddled around to journalists we have not been approached yet I'm not sure they will because we actually know the cloud what cloud computing is so I'm sure we could debunk it by just looking at it and what they were putting fors was interesting is this an eleventh-hour a desperation attempt because I have the Geo a report here that was issued under Oracle's change it says there are six conditions why we're looking at one sole cloud although it's not a it's a multiple bid it's not an exclusive to amazon but so there's reasons why and they list six service levels highly specialized check more favorable terms and conditions with a single award expected cause of administration of multiple contracts outweighs the benefits of multiple awards the projected orders are so intricately related that only a single contractor can reasonably be perform the work meaning that Amazon has the only cloud that can do that work now I've reported on the cube and it's looking angle that it's true there's things that other clouds just don't have anyone has private they have the secret the secret clouds the total estimated value of the contract is less than the simplified acquisition threshold or multiple awards would not be in the best interest this is from them this is a government report so it seems like there's a conspiracy against Amazon where you are upon and in in this game collect you feel that collateral damage song do you do you believe that to be true collateral damage okay well okay so now the the John Wheeler guys so investigate you've been an investigator so you mean you're not you know you're not a retired into this a retired investigator you're retired investigated worked on things with Nelson Mandela Kroll Janet Reno Attorney General you've vetted by the United States government you have credibility you have relationships with people who have have top-secret clearance all kinds of stuff but I mean do you have where people have top-secret clearance or or former people who had done well we have we have the privilege of of working with a very distinguished group of senior national security leaders as operating partisan c5 and many of them have retained their clearances and have been only been able to do so because c5 had to pass through a very deep vetting process so for you to be smeared like this you've been in an investigative has you work at a lot of people this is pretty obvious to you this is like a oh is it like a deep state conspiracy you feel it's one vendor - what is your take and what does collateral damage mean to you well I recently spoke at the mahkum conference on a session on digital warfare and one of the key points I made there was that there are two things that are absolutely critical for business leaders and technology leaders at this point in time one we have to clearly say that our countries are worth defending we can't walk away from our countries because the innovation that we are able to build and scale we're only able to do because we live in democracies and then free societies that are governed by the rule of law the second thing that I think is absolutely crucial for business leaders in the technology community is to accept that there must be a point where national interest overrides competition it must be a point where we say the benefit and the growth and the success of our country is more important to us than making commercial profits and therefore there's a reason for us either to cooperate or to cease competition or to compete in a different way what might takes a little bit more simple than that's a good explanation is I find these smear campaigns and fake news and I was just talking with Kara Swisher on Twitter just pinging back and forth you know either journalists are chasing Twitter and not really doing the original courting or they're being fed stories if this is truly a smear campaign as being fed by a paid dossier then that hurts people when families and that puts corporate interests over the right thing so I think I a personal issue with that that's fake news that's just disinformation but it's also putting corporate inches over over families and people so I just find that to be kind of really weird when you say collateral damage earlier what did you mean by that just part of the campaign you personally what's what's your view okay I think competition which is not focused on on performance and on innovation and on price points that's competition that's hugely destructive its destructive to the fabric of innovation its destructive of course to the reputation of the people who fall in the line of sight of this kind of competition but it's also hugely destructive to national interest Andrae one of the key stories here with the BBC which has holes in it is that the Amazon link which we just talked about but there's one that they bring up that seems to be core in all this and just the connections to Russia can you talk about your career over the career from whether you when you were younger to now your relationship with Russia why is this Russian angle seems to be why they bring into the Russia angle into it they seem to say that c-5 Cable has connections they call deep links personal links into Russia so to see what that so c5 is a venture capital firm have no links to Russia c5 has had one individual who is originally of Russian origin but it's been a longtime Swiss resident and you national as a co investor into a enterprise software company we invested in in 2015 in Europe we've since sold that company but this individual Vladimir Kuznetsov who's became the focus of the BBC's story was a co investor with us and the way in which we structure our investment structures is that everything is transparent so the investment vehicle for this investment was a London registered company which was on the records of Companies House not an offshore entity and when Vladimir came into this company as a co investor for compliance and regulatory purposes we asked him to make his investment through this vehicle which we controlled and which was subject to our compliance standards and completely transparent and in this way he made this investment now when we take on both investors and Co investors we do that subject to very extensive due diligence and we have a very robust and rigorous due diligence regime which in which our operating partners who are leaders of great experience play an important role in which we use outside due diligence firms to augment our own judgment and to make sure we have all the facts and finally we also compare notes with other financial institutions and peers and having done that with Vladimir Kuznetsov when he made this one investment with us we reached the conclusion that he was acting in his own right as an independent angel investor that his left renova many years ago as a career executive and that he was completely acceptable as an investor so that you think that the BBC is making an inaccurate Association the way they describe your relationship with Russia absolutely the the whole this whole issue of the provenance of capital has become of growing importance to the venture capital industry as you and I discussed earlier with many more different sources of capital coming out of places like China like Russia Saudi Arabia other parts of the world and therefore going back again to you the earlier point we discussed compliance and due diligence our critical success factors and we have every confidence in due diligence conclusions that we reached about vladimir quits net source co-investment with us in 2015 so I did some digging on c5 razor bidco this was the the portion of the company in reference to the article I need to get your your take on this and they want to get you on the record on this because it's you mentioned I've been a law above board with all the compliance no offshore entities this is a personal investment that he made Co investment into an entity you guys set up for the transparency and compliance is that true that's correct no side didn't see didn't discover this would my my children could have found this this this company was in a transparent way on the records in Companies House and and Vladimir's role and investment in it was completely on the on the public record all of this was subject to financial conduct authority regulation and anti money laundering and no your client standards and compliance so there was no great big discovery this was all transparent all out in the open and we felt very confident in our due diligence findings and so you feel very confident Oh issue there at all special purpose none whatsoever is it this is classic this is international finance yes sir so in the venture capital industry creating a special purpose vehicle for a particular investment is a standard practice in c-five we focus on structuring those special-purpose vehicles in the most transparent way possible and that was his money from probably from Russia and you co invested into this for this purpose of doing these kinds of deals with Russia well we just right this is kind of the purpose of that no no no this so in 2015 we invested into a European enterprise software company that's a strategic partner of Microsoft in Scandinavian country and we invested in amount of 16 million pounds about at the time just more than 20 million dollars and subsequent in August of that year that Amir Kuznetsov having retired for nova and some time ago in his own right as an angel investor came in as a minority invest alongside us into this investment but we wanted to be sure that his investment was on our control and subject to our compliance standards so we requested him to make his investment through our special purpose vehicle c5 raised a bit co this investment has since been realized it's been a great success and this business is going on to do great things and serve great clients it c5 taking russian money no see if I was not taking Russian money since since the onset of sanctions onboarding Russian money is just impossible sanctions have introduced complexity and have introduced regulatory risk related to Russian capital and so we've taken a decision that we will not and we can't onboard Russian capital and sanctions have also impacted my investigative career sanctions have also completely changed because what the US have done very effectively is to make sanctions a truly global regime and in which ever country are based it doesn't really matter you have to comply with US sanctions this is not optional for anybody on any sanctions regime including the most recent sanctions on Iran so if there are sanctions in place you can't touch it have you ever managed Russian oligarchs money or interests at any time I've never managed a Russian oligarchs money at any point in time I served for a period of a year honest on the board of a South African mining company in which Renova is a minority invest alongside an Australian company called South 32 and the reason why I did this was because of my support for African entrepreneurship this was one of the first black owned mining companies in South Africa that was established with a British investment in 2004 this business have just grown to be a tremendous success and so for a period of a year I offered to help them on the board and to support them as they as they looked at how they can grow and scale the business I have a couple more questions Gabe so I don't know if you wanna take a break you want to keep let's take a break okay let's take a quick break do a quick break I think that's great that's the meat of it great job by the way fantastic lady here thanks for answering those questions the next section I want to do is compliment
SUMMARY :
head of the NSA you know get to just
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Nick Curcuru, Mastercard | CUBEConversation, July 2018
(bright orchestral music) >> I'm Peter Burris and welcome to another Cube Conversation from our beautiful studios here in Palo Alto, California. Not a great show today. First off, being joined by my colleague at SiliconANGLE Wikibon, Dave Vellante. >> Peter >> But the real star of the show, Nick Curcuru with MasterCard. Welcome to The Cube Nick. >> Thanks for having me. >> So Nick, MasterCard, 165 million transactions an hour. A financial juggernaut. Blockchain, interesting technology, a lot of applications. How are they going to come together? >> Well, the biggest thing that we look at when we look at those two technologies: our world which is the network and you look at blockchain, is they're the challenge. And I think we have the opportunity to actually meet the challenge and those challenges are speed, transparency of the transaction itself, and actually even trying to reduce the cost of those transactions, especially when you talk cross border. You know when you're going from country to country right now blockchain has a big cost in order to let that happen. The other component is that transparency. I need to know who I am dealing with on the other side and create an auditable trail to understand how that transaction is going through, and again this is something that we do within our core business and again, we're trying to make that meet and then work on the speed. Again, one of the things we pride ourselves are on that 165 million transactions per hour, making it a smooth flow, making it seamless, making it frictionless, that we can do. So again, can we do the same now with blockchain. You know, and for us, we're experimenting now with our B2B, but we hopefully will be able to move that right into individuals as well, to the consumer level. >> So, we're a decade into when Satoshi, whoever he or she was created Bitcoin. >> Or them. >> Or them and yeah, was it the Russians? People are asking that question, so who knows? But, of course a lot of people have been facing negative comments in the press, et cetera. What was your motivation for exploring blockchain, starting to experiment with it? Take us through that if you would. >> Well you know part of what we started to see is that it started to gain traction. That was the biggest thing, and as you start to take a look at more and more people that started to use that technology, it's one of those items that in the beginning we're like okay it's nice it's a hobby right as it started to come out. But as you started to see some more heavyweights come into the place to use it and actually utilize what that technology can provide, we're like, there is something here. Again, MasterCard, our CEO has been very good to say, we need to always be thinking outside of our core. What else do we have to be able to include to allow our MasterCard stakeholders, our banks, our issuers, and everyone, the opportunities that we can continuously expand. So our CEO has been really good about that. And when blockchain started to gain some momentum, he goes, we need to actually take a look, so our guys in the labs, our smart people that sit there in O'Fallon and New York City started to explore how do we take what we know, apply it here to help with that particular way a transaction is being done, and then, can we really allow ourselves and blockchain to grow? So, that's pretty much where we started. Again, it was a little hobby, we started to see it pick up momentum, and about three years ago we were like, there is something here. We need to actually begin to think about how we can interact with this form of payment. >> So what are you actually doing? Are you experimenting, kicking the tires, trying to figure out the use cases? >> That's actually everything that we're doing. Right now, we've actually got a few patents that have just come out, which is very good for what we are trying to accomplish. Right now, we're in the B2B space because that's what we're watching mostly is being used right now is in that business to business space. So we're out there piloting. We actually have set up a whole bunch of APIs to allow people to actually put the blockchain inside, whether it's a mobile device that you want to use, or within the Internet of things. So we have developed a set of APIs that we have got out there that we are allowing our different people within B2B to use, to experiment, to start to say, hey give us feedback on how are they operating. Is it seamless, is it frictionless, are we reducing that operational time, making it efficient, reducing those costs. So that's what we're beginning to roll out. And again, our goal is, if we can do it in B2B, how do we finally get it to the consumer? Because again, that's going to be a big part of what people are going to want to do, to be able to do those transactions amongst themselves. >> When you think about things like AML and Know Your Customer KYC, do you see blockchain as having a role there or does it sort of accentuate your need to understand different ways to know your customer and fight money laundering. >> Well that's actually a big part of it. That's the whole thing we talk about being able to authorization and authentication. So there is a big thing, again, when you deal with blockchain, people, you got the wire in transit right? And there are people trying to skim off that, trying to find a way to get into your bank account, basically, because that's really what you're exposing because you're making a payment. So the question for us is okay, again, that's a core competency of ours is data in motion and securing the transaction while it's in motion before that. So for us, when you start to take a look at the way we can do the authorization and authentication becomes a big deal. And our core competency is to do that, to make sure that you can't have anti-money laundering, to make sure that you can't have fraud existing because we can verify it's you who is transacting with Dave, that you are the two people transacting, just like we do with a card, right? And when you do the pin, chip, we know it's you. Even with our new products like new data with biometrics, we know it's you. We can validate and verify and authenticate it's you. That's where we think we can provide tremendous value with the blockchain. >> So blockchain is kind of a hot new technology, but there's got to be more than just the fact that it's a hot new technology. Give us some examples of some use cases that you're envisioning that will be made possible and will be sustained with the blockchain approach. >> A lot of it is actually, if you take a look at the supply chain, the ability to make sure that when I need goods and services, not only, I don't have to wait for it. I think actually one of the best stories that we heard when it came down to the blockchain is how, actually the Defense Department has used it. So for example, if you can imagine, on an aircraft carrier, there's a plane that went down, right? That needed a part. Or I think it was a helicopter, sorry. And it needed a part. Well the question was it's in the middle of the Pacific Ocean. So how do you get the part there? Well if you go through the normal channels, to get that helicopter up and running, it's going to take you two to three months to get it there. But using blockchain, because it's anonymous and you have some privacy within it, being able to say, can you send me the specs? This particular ship had a metal 3D printer on it. So not only were they able to send the specs via blockchain in an anonymous manner so no one else could pick it up, they could actually put it on the ship. They could actually create the part, and what's really kind of cool is they actually put a flaw. They put a scratch across the part itself so that you knew the guys who sent it are the guys that you are getting it from and no one else picked it up along the way. So that's one way to be able to do it, to actually create the parts that you need when you need them in a secure manner. The other part, if you believe it or not, I was just at a sports conference, and the other thing was is can I actually use blockchain to transfer my tickets? So you're in Palo Alton. I got 9ers tickets. I'm a season ticket holder, and what I want to be able to do is send you my tickets, but you need to know it's me who has the tickets, not a fraudster, right, that's going up there saying I got two tickets for sale or whatever it may be. So I can use blockchain in an anonymous transaction You send me the funds, you know it's me, and I can send you the tickets because I am a verified, valid ticket holder. So there is another case where it is consumer to consumer. >> But coming back to the B2B examples, there are a lot of circumstances when a business realizes that entering into a transaction is signaling an enormous amount of information other than just the part that they're getting or the business activity that they're performing, and so it has the potential to be a great technology to dramatically focus the characteristics of the transaction just on the transaction and keep all the other signaling that might otherwise be picked up on out of the equation. Is that right? >> Yeah, that's absolutely correct. The other part is it creates that efficiency in that transaction itself. We're always worried about can you reduce paperwork? We did that, that's the 80's and 90's, right? And then it became into now we got these electronic transfers. But what blockchain is allowing you to do is almost in real time to be able to order those goods and services and get them delivered when you need them and be able to run those transactions. That's a big part to it. Now we're getting faster and better at what we're doing. We're not letting antiquated processes and procedures really bog us down. And again, the blockchain allows you to do that, allows an easier transfer of cash amongst the providers, a lower cost in many cases on that transfer when you're talking about the funds, more of the ability to actually interact with the consumer itself, especially if you've got artificial intelligence, because one of the other use cases in the supply chain is the auto-ordering. Right, so this thing is learning, it's understanding what's coming off the shelves, what's going on the shelves, where it needs to be. Can I actually that to help me distribute my products amongst my warehouses, amongst my stores? Blockchain is doing that. It's automating that and allows those transactions, both I need this and you sent it to me as well as actually going through and making the financial transaction happen. >> So you guys must be having some mind-melting conversations inside your company. (laughing) When you think about the examples that you gave those transactions, I presume, the ticket transaction, doesn't require a trusted third party to validate that transaction because the technology of blockchain is doing that and then yet, but MasterCard is a trusted third party. So how are you thinking about, this might change your business? You've still got amazing assets. You've got a brand, you've got a network, you've got your partnerships, you've got the relationships that you have with the suppliers and customers and consumers, et cetera. So how do you think about that notion of when you talk to the world of crypto. Oh let's find where there's a trusted third party and we can disintermediate that. So what do you think all this means for the future of financial services and companies like MasterCard? >> Well, you know for us it's not the ability to say that one is going to... for a lot of folks, their complaint is, what we hear is, blockchain is going to take over everything. Cryptocurrency is going to... no it's how you actually have to live within that, because you're going to have to have multiple ways to do that. So that's how we feel we can make that help those folks in the transition. So that trusted third party, okay you can have five trusted third parties take care of your credit cards, your debit cards, your blockchain, your cryptocurrency. Our goal is, just come to us. Let's get you that solution. We can help embed that API. We can give you some flexibility. We can give you the reach of being able to have you know 22,000 banks and issuers worldwide at your disposal if you need that. So again, that's where we see ourselves really playing a good role, and that's how it's going to change our business. >> But it's, related to that, it's we can bring the scale, we can bring your operational certainty, we can bring you all the things because at the end of the day, it's still a computer, right, and it has to stay up and it has to be auditable and it has to be backed up and that's something that there's not a lot of companies that know how to operate at the kind of scale you guys do. >> Technology platform is critical. >> Absolutely >> Yes, absolutely. And again, that's when you look at quadruple and quint- types of redundancy, not just primary and secondary. I mean we are running four or five types of redundancy to make sure those networks are up and running. >> So Nick, I got a question because one of the things that I find interesting about all this and I know that you and I have talked about this, Dave, is that a blockchain presumes that there's some sort of contract in the middle of all this, but the processes of running contracts are complex. The design of the blockchain is crucial ultimately to the behavior and the success of the blockchain. Not a lot of tools to do that. How do you think the future of blockchain design is going to evolve so that issues like scale, technological, operational certainty, et cetera, come into play? >> Well, it's almost, as you take a look at it, it's almost the way that you have to be interacting today. So you've got the edge where the transaction is happening right and you've got the core part of the business where you're using that machine learning, the artificial intelligence to help you make better decisions. And then of course, you've got the deep learning. So as you look at those technologies, it's how you're handling within that contract, where things need to be done. Right, so again, if you're looking at how we supply a shelf, well that's not going to be done potentially at the edge. That's potentially in your core. It could be part of deep learning, but then how do you bring it to the edge to make that transaction go through to make that part of blockchain? So as you think about the contracts, something that's real important with blockchain is picking the right partner to go to market with because, again, you're looking at those technologies you want to make sure are in place. >> So, you're adding to a notion of scale and operational certainty, the expertise associated with how do you design these things well so that they can be put in an operation and you don't have to, you know, the immutability issue doesn't come and bite you in the butt in six months. >> Yeah, absolutely. So again, what you're looking for is, what we always look for are those people that have the right ability for scale, have the global experience that we really need, because again, when you think about it, you're in a global economy, so you're really looking to see how those people interact and can they do it. You're looking for that partner. You're not looking for the guy who's got the coolest, latest technology. Those are always fine to know about, but again, you're always worried about scale at this point. You're looking at flexibility. You know, how do I, how can I be flexible in the way I'm making those contracts and those contracts always change. It's not like there's a template, all right? Almost with blockchain, it's almost individual companies and B2B are coming back with their own types of contracts. >> Sure. >> And that's the part that you also have to have make sure is available to you, both from a technology standpoint and being able to you know actually operationalize it. >> Peter, at the top, talked about the transaction volumes being you know limited, you were talking about Bitcoin transaction volumes. Obviously, in the near term anyway, limits some of the use cases, but I wonder how you guys are thinking about solving that problem. Do you see that as MasterCard's role or is that, is Google, a Google-like company going to solve that? Is it going to be a partnership? How do you see that shaking out? >> It is going to be, it's a collaborative partnership, so again, we have conversations with people like, the Googles of the world, the Microsofts, the Dells, and people like that. It's a collaboration now. So just like four years ago. Remember Hadoop's community? >> Yeah. >> So we see it, there is a blockchain community because we are all seeing the same issues, but what's nice is, because of the experience that we're having through being part of a community, we're helping each other solve those particular problems. Because again, Google sees a different part of blockchain. Right, we see a different part of blockchain. And when you start to bring those resources together and you start talking to them and the Microsofts and the Dells and even the Amazons of the world. When you start putting everybody into a room, we're frenemies at that point. Because we're all trying to solve the same problem. We all have different interests within the major issue, but if we can do it together, tide rises all boats, right? >> The best innovations are combinatorial. >> Correct. >> Taking a lot of folks with expertise and mature technology and bringing it together and creating something new not just because you're creating something new but because you have the social reach to actually have it happen in the marketplace. >> Absolutely. >> Nick Curcuru, MasterCard, thanks very much for being on The Cube and talking about blockchain. >> Appreciate it. >> Thank you for having me, thanks guys. (orchestral music fading out)
SUMMARY :
I'm Peter Burris and welcome to another Cube Conversation But the real star of the show, How are they going to come together? So again, can we do the same now with blockchain. So, we're a decade into when Satoshi, Take us through that if you would. the place to use it and actually utilize what that mobile device that you want to use, When you think about things like AML and And our core competency is to do that, to make sure that you but there's got to be more than just the fact that You send me the funds, you know it's me, and I can send you has the potential to be a great technology to dramatically And again, the blockchain allows you to do that, So how do you think about that notion of when you talk to So that trusted third party, okay you can have five at the kind of scale you guys do. And again, that's when you look at quadruple and quint- How do you think the future of blockchain design is going to the way that you have to be interacting today. certainty, the expertise associated with how do you design that we really need, because again, when you think about it, And that's the part that you also have to have make sure being you know limited, you were talking about so again, we have conversations with people like, And when you start to bring those resources together you have the social reach to actually have it happen on The Cube and talking about blockchain. Thank you for having me, thanks guys.
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Jaron Lanier, Author | PTC LiveWorx 2018
>> From Boston, Massachusetts, it's the cube. covering LiveWorx 18, brought to you by PTC. (upbeat music) >> Welcome back to the Boston Seaport everybody. My name is David Vellante, I'm here with my co-host Stu Miniman and you're watching the cube, the leader in live tech coverage. We're at LiveWorx PTC's big IOT conference. Jaron Lanier is here, he's the father of virtual reality and the author of Dawn of the New Everything. Papa, welcome. >> Hey there. >> What's going on? >> Hey, how's it going? >> It's going great. How's the show going for you? It's cool, it's cool. It's, it's fine. I'm actually here talking about this other book a little bit too, but, yeah, I've been having a lot of fun. It's fun to see how hollow lens applied to a engines and factories. It's been really cool to see people seeing the demos. Mixed reality. >> Well, your progeny is being invoked a lot at the show. Everybody's sort of talking about VR and applying it and it's got to feel pretty good. >> Yeah, yeah. It seems like a VR IoT blockchain are the sort of the three things. >> Wrap it all with digital transformation. >> Yeah, digital transformation, right. So what we need is a blockchain VR IoT solution to transform something somewhere. Yeah. >> So tell us about this new book, what it's called? >> Yeah. This is called the deleting all your social media accounts right now. And I, I realize most people aren't going to do it, but what I'm trying to do is raise awareness of how the a psychological manipulation algorithms behind the system we're having an effect on society and I think I love the industry but I think we can do better and so I'm kind of agitating a bit here. >> Well Jaron, I was reading up a little bit getting ready for the interview here and people often will attack the big companies, but you point at the user as, you know, we need to kind of take back and we have some onus ourselves as to what we use, how we use it and therefore can have impact on, on that. >> Well, you know, what I've been finding is that within the companies and Silicon Valley, a lot of the top engineering talent really, really wants to pursue ethical solutions to the problem, but feels like our underlying business plan, the advertising business plan keeps on pulling us back because we keep on telling advertisers we have yet new ways to kind of do something to tweak the behaviors of users and it kind of gradually pulls us into this darker and darker territory. The thing is, there's always this assumption, oh, it's what users want. They would never pay for something the way they pay for Netflix, they would never pay for social media that way or whatever it is. The thing is, we've never asked users, nobody's ever gone and really checked this out. So I'm going to, I'm kind of putting out there as a proposition and I think in the event that users turn out to really want more ethical social media and other services by paying for them, you know, I think it's going to create this enormous sigh of relief in the tech world. I think it's what we all really want. >> Well, I mean ad-based business models that there's a clear incentive to keep taking our data and doing whatever you want with it, but, but perhaps there's a better way. I mean, what if you're, you're sort of proposing, okay, maybe users would be willing to pay for various services, which is probably true, but what if you were able to give users back control of their data and let them monetize their data. What are your thoughts on that? >> Yeah, you know, I like a lot of different solutions, like personally, if it were just up to me, if I ran the world, which I don't, but if I ran the world, I can make every single person of the world into a micro-entrepreneur where they can package, sell and price their data the way they want. They can, they can form into associations with others to do it. And they can also purchase data from others as they want. And I think what we'd see is this flowering of this giant global marketplace that would organize itself and would actually create wonders. I really believe that however, I don't run the world and I don't think we're going to see that kind of perfect solution. I think we're going to see something that's a bit rougher. I think we might see something approximating that are getting like a few steps towards that, but I think we are going to move away from this thing where like right now if two people want to do anything on online together, the only way that's possible is if there's somebody else who's around to pay them, manipulate them sneakily and that's stupid. I mean we can be better than that and I'm sure we will. >> Yeah, I'm sure we will too. I mean we think, we think blockchain and smart contracts are a part of that solution and obviously a platform that allows people to do exactly what you just described. >> And, and you know, it's funny, a lot of things that sounded radical a few years ago are really not sounding too radical. Like you mentioned smart contracts. I remember like 10 years ago for sure, but even five years ago when you talked about this, people are saying, oh no, no, no, no, no, this, the world is too conservative. Nobody's ever going to want to do this. And the truth is people are realizing that if it makes sense, you know, it makes sense. And, and, and, and so I think, I think we're really seeing like the possibilities opening up. We're seeing a lot of minds opening, so it's kind of an exciting time. >> Well, something else that I'd love to get your thoughts on and we think a part of that equation is also reputation that if you, if you develop some kind of reputation system that is based on the value that you contribute to the community, that affects your, your reputation and you can charge more if you have a higher reputation or you get dinged if you're promoting fake news. That that reputation is a linchpin to the successful community like that. >> Well, right now the problem is because, in the free model, there's this incredible incentive to just sort of get people to do things instead of normal capitalist. And when you say buy my thing, it's like you don't have to buy anything, but I'm going to try to trick you into doing something, whatever it is. And, and, and if you ever direct commercial relationship, then the person who's paying the money starts to be a little more demanding. And the reason I'm bringing that up is that right now there's this huge incentive to create false reputation. Like in reviews, a lot of, a lot of the reviews are fake, followers a lot of them are fake instance. And so there's like this giant world of fake stuff. So the thing is right now we don't have reputation, we have fake reputation and the way to get real reputation instead of think reputation is not to hire an army of enforcing us to go around because the company is already doing that is to change the financial incentives so you're not incentivizing criminals, you know I mean, that's incentives come first and then you can do the mop up after that, but you have to get the incentives aligned with what you want. >> You're here, and I love the title of the book. We interviewed James Scott and if you know James Scott, he's one of the principals at ICIT down PTC we interviewed him last fall and we asked him, he's a security expert and we asked them what's the number one risk to our country? And he said, the weaponization of social media. Now this is, this is before fake news came out and he said 2020 is going to be a, you know, what show and so, okay. >> Yeah, you know, and I want to say there's a danger that people think this is a partisan thing. Like, you know, if you, it's not about that. It's like even if you happen to support whoever has been on, on the good side of social media manipulation, you should still oppose the manipulation. You know, like I was, I was just in the UK yesterday and they had the Brexit foot where there was manipulation by Russians and others. And you know, the point I've made over there is that it's not about whether you support Brexit or not. That's your business, I don't even have an opinion. It's not, I'm an American. That's something that's for somebody else. But the thing is, if you look at the way Brexit happened, it tore society apart. It was nasty, it was ugly, and there have been tough elections before, but now they're all like that. And there was a similar question when the, the Czechoslovakia broke apart and they didn't have all the nastiness and it's because it was before social media that was called the velvet divorce. So the thing is, it's not so much about what's being supported, whatever you think about Donald Trump or anything else, it's the nastiness. It's the way that people's worst instincts are being used to manipulate them, that's the problem. >> Yeah, manipulation denial is definitely a problem no matter what side of the aisle you're on, but I think you're right that the economic incentive if the economic incentive is there, it will change behavior. And frankly, without it, I'm not sure it will. >> Well, you know, in the past we've tried to change the way things in the world by running around in outlying things. For instance, we had prohibition, we outlawed, we outlawed alcohol, and what we did is we created this underground criminal economy and we're doing something similar now. What we're trying to do is we're saying we have incentives for everything to be fake, everything to be phony for everything to be about manipulation and we're creating this giant underground of people trying to manipulate search results or trying to manipulate social media feeds and these people are getting more and more sophisticated. And if we keep on doing this, we're going to have criminals running the world. >> Wonder if I could bring the conversation back to the virtual reality. >> Absolutely. >> I'm sorry about that. >> So, but you know, you have some concerns about whether virtual reality will be something you for good or if it could send us off the deep end. >> Oh yeah, well. Look, there's a lot to say about virtual reality. It's a whole world after all. So you can, there is a danger that if the same kinds of games are being played on smartphones these days were transferred into a virtual reality or mixed reality modalities. Like, you could really have a poisonous level of mind control and I, I do worry about that I've worried about that for years. What I'm hoping is that the smartphone era is going to force us to fix our ways and get the whole system working well enough so that by the time technologies like virtual reality are more common, we'll have a functional way to do things. And it won't, it won't all be turned into garbage, you know because I do worry about it. >> I heard, I heard a positive segment on NPR saying that one of the problems is we all stare at our phones and maybe when I have VR I'll actually be talking to actual people so we'll actually help connections and I'm curious to hear your thoughts on that. >> Well, you know, most of the mixed reality demos you see these days are person looking at the physical world and then there's extra stuff added to the physical world. For instance, in this event, just off camera over there, there's some people looking at automobile engines and seeing them augmented and, and that's great. But, there's this other thing you can do which is augmenting people and sometimes it can be fun. You can put horns or wings or long noses or something on people. Of course, you still see them with the headsets all that's great. But you can also do other stuff. You can, you can have people display extra information that they have in their mind. You can have more sense of what each other are thinking and feeling. And I actually think as a tool of expression between people in real life, it's going to become extremely creative and interesting. >> Well, I mean, we're seeing a lot of applications here. What are some of your favorites? >> Oh Gosh. Of the ones right here? >> Yes. >> Well, you know, the ones right here are the ones I described and I really like them, there's a really cool one of some people getting augmentation to help them maintain and repair factory equipment. And it's, it's clear, it's effective, it's sensible. And that's what you want, right? If you ask me personally what really, a lot of the stuff my students have done, really charms me like up, there was just one project, a student intern made where you can throw virtual like goop like paint and stuff around in the walls and it sticks and starts running down and this is running on the real world and you can spray paint the real world so you can be a bit of a juvenile delinquent basically without actually damaging anything. And it was great, it was really fun and you know, stuff like that. There was this other thing and other student did where you can fill a whole room with these representations of mathematical objects called tensors and I'm sorry to geek out, but you had this kid where all these people could work together, manipulating tensors and the social environment. And it was like math coming alive in this way I hadn't experienced before. That really was kind of thrilling. And I also love using virtual reality to make music that's another one of my favorite things, >> Talk more about that. >> Well, this is something I've been doing forever since the '80s, since the '80s. I've been, I've been at this for awhile, but you can make an imaginary instruments and play them with your hands and you can do all kinds of crazy things. I've done a lot of stuff with like, oh I made this thing that was halfway between the saxophone and an octopus once and I'll just >> Okay. >> all this crazy. I love that stuff I still love it. (mumbling) It hasn't gotten old for me. I still love it as much as I used to. >> So I love, you mentioned before we came on camera that you worked on minority report and you made a comment that there were things in that that just won't work and I wonder if you could explain a little bit more, you know, because I have to imagine there's a lot of things that you talked about in the eighties that, you know, we didn't think what happened that probably are happening. Well, I mean minority report was only one of a lot of examples of people who were thinking about technology in past decades. Trying to send warnings to the future saying, you know, like if you try to make a society where their algorithms predicting what'll happen, you'll have a dystopia, you know, and that's essentially what that film is about. It uses sort of biocomputer. They're the sort of bioengineered brains in these weird creatures instead of silicon computers doing the predicting. But then, so there are a lot of different things we could talk about minority report, but in the old days one of the famous VR devices which these gloves that you'd use to manipulate virtual objects. And so, I put a glove in a scene mockup idea which ended up and I didn't design the final production glove that was done by somebody in Montreal, but the idea of putting a glove a on the heroes hand there was that glove interfaces give you arm fatigue. So the truth is if you look at those scenes there physically impossible and what we were hoping to do is to convey that this is a world that has all this power, but it's actually not. It's not designed for people. It actually wouldn't work in. Of course it kind of backfired because what happened is the production designers made these very gorgeous things and so now every but every year somebody else tries to make the minority report interface and then you discover oh my God, this doesn't work, you know, but the whole point was to indicate a dystopian world with UI and that didn't quite work and there are many other examples I could give you from the movie that have that quality. >> So you just finished the book. When did this, this, this go to print the. >> Yeah, so this book is just barely out. It's fresh from the printer. In fact, I have this one because I noticed a printing flaw. I'm going to call the publisher and say, Oh, you got to talk to the printer about this, but this is brand new. What happened was last year I wrote a kind of a big book of advert triality that's for real aficionados and it's called Dawn of the new everything and then when I would go and talk to the media about it they'd say, well yeah, but what about social media? And then all this stuff, and this was before it Cambridge Analytica, but people were still interested. So I thought, okay, I'll do a little quick book that addresses what I think about all that stuff. And so I wrote this thing last year and then Cambridge Analytica happened and all of a sudden it's, it seems a little bit more, you know, well timed >> than I could have imagined >> Relevant. So, what other cool stuff are you working on? >> I have to tell you something >> Go ahead. >> This is a real cat. This is a black cat who is rescued from a parking lot in Oakland, California and belongs to my daughter. And he's a very sweet cat named Potato. >> Awesome. You, you're based in Northern California? >> Yeah, yeah, yeah. >> Awesome And he was, he was, he was an extra on the set of, of the Black Panther movie. He was a stand-in for like a little mini black panthers. >> What other cool stuff are you working on? What's next for you? >> Oh my God, there's so much going on. I hardly even know where to begin. There's. Well, one of the things I'm really interested in is there's a certain type of algorithm that's really transforming the world, which is usually called machine learning. And I'm really interested in making these things more transparent and open so it's less like a black box. >> Interesting. Because this has been something that's been bugging me you know, most kinds of programming. It might be difficult programming, but at least the general concept of how it works is obvious to anyone who's program and more and more we send our kids to coding camps and there's just a general societal, societal awareness of what conventional programming is like. But machine learning has still been this black box and I view that as a danger. Like you can't have society run by something that most people feel. It's like this black box because it'll, it'll create a sense of distrust and, and, I think could be, you know, potentially quite a problem. So what I want to try to do is open the black box and make it clear to people. So that's one thing I'm really interested in right now and I'm, oh, well, there's a bunch of other stuff. I, I hardly even know where to begin. >> The black box problem is in, in machine intelligence is a big one. I mean, I, I always use the example I can explain, I can describe to you how I know that's a dog, but I really can't tell you how I really know it's a dog. I know I look at a dog that's a dog, but. Well, but, I can't really in detail tell you how I did that but it isn't AI kind of the same way. A lot of AI. >> Well, not really. There's, it's a funny thing right now in, in, in the tech world, there are certain individuals who happen to be really good at getting machine language to work and they get very, very well paid. They're sort of like star athletes. But the thing is even so there's a degree of almost like folk art to it where we're not exactly sure why some people are good at it But even having said that, we, it's wrong to say that we have no idea how these things work or what we can certainly describe what the difference is between one that fails and that's at least pretty good, you know? And so I think any ordinary person, if we can improve the user interface and improve the way it's taught any, any normal person that can learn even a tiny bit of programming like at a coding camp, making the turtle move around or something, we should be able to get to the point where they can understand basic machine learning as well. And we have to get there. All right in the future, I don't want it to be a black box. It doesn't need to be. >> Well basic machine learning is one thing, but how the machine made that decision is increasingly complex. Right? >> Not really it's not a matter of complexity. It's a funny thing. It's not exactly complexity. It has to do with getting a bunch of data from real people and then I'm massaging it and coming up with the right transformation so that the right thing spit out on the other side. And there's like a little, it's like to me it's a little bit more, it's almost like, I know this is going to sound strange but it's, it's almost like learning to dress like you take this data and then you dress it up in different ways and all of a sudden it turns functional in a certain way. Like if you get a bunch of people to tag, that's a cat, that's a dog. Now you have this big corpus of cats and dogs and now you want to tell them apart. You start playing with these different ways of working with it. That had been worked out. Maybe in other situations, you might have to tweak it a little bit, but you can get it to where it's very good. It can even be better than any individual person, although it's always based on the discrimination that people put into the system in the first place. In a funny way, it's like Yeah, it's like, it's like a cross between a democracy and a puppet show or something. Because what's happening is you're taking this data and just kind of transforming it until you find the right transformation that lets you get the right feedback loop with the original thing, but it's always based on human discrimination in the first place so it's not. It's not really cognition from first principles, it's kind of leveraging data, gotten from people and finding out the best way to do that and I think really, really work with it. You can start to get a two to feel for it. >> We're looking forward to seeing your results of that work Jared, thanks for coming on the cube. You're great guests. >> Really appreciate it >> I really appreciate you having me here. Good. Good luck to all of you. And hello out there in the land that those who are manipulated. >> Thanks again. The book last one, one last plug if I may. >> The book is 10 arguments for deleting your social media accounts right now and you might be watching this on one of them, so I'm about to disappear from your life if you take my advice. >> All right, thanks again. >> All right. Okay, keep it right there everybody. We'll be back with our next guest right after this short break. You're watching the cube from LiveWorx in Boston. We'll be right back. (upbeat music)
SUMMARY :
brought to you by PTC. and the author of Dawn see people seeing the demos. and applying it and it's are the sort of the three things. Wrap it all with to transform something somewhere. This is called the deleting but you point at the user as, a lot of the top engineering talent and doing whatever you want with it, Yeah, you know, to do exactly what you just described. And, and you know, it's funny, and you can charge more if and then you can do the mop up after that, and if you know James Scott, But the thing is, if you look that the economic incentive Well, you know, in the past bring the conversation So, but you know, and get the whole system that one of the problems is But, there's this other thing you can do a lot of applications here. Of the ones right here? and you know, stuff like that. and you can do all kinds of crazy things. I love that stuff So the truth is if you So you just finished the book. and it's called Dawn of the new everything stuff are you working on? and belongs to my daughter. You, you're based in Northern California? of the Black Panther movie. Well, one of the things and, and, I think could be, you know, but it isn't AI kind of the same way. and that's at least pretty good, you know? but how the machine made that decision and then you dress it up in different ways Jared, thanks for coming on the cube. you having me here. The book last one, and you might be watching right after this short break.
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Nutanix .Next | NOLA | Day 1 | AM Keynote
>> PA Announcer: Off the plastic tab, and we'll turn on the colors. Welcome to New Orleans. ♪ This is it ♪ ♪ The part when I say I don't want ya ♪ ♪ I'm stronger than I've been before ♪ ♪ This is the part when I set your free ♪ (New Orleans jazz music) ("When the Saints Go Marching In") (rock music) >> PA Announcer: Ladies and gentleman, would you please welcome state of Louisiana chief design officer Matthew Vince and Choice Hotels director of infrastructure services Stacy Nigh. (rock music) >> Well good morning New Orleans, and welcome to my home state. My name is Matt Vince. I'm the chief design office for state of Louisiana. And it's my pleasure to welcome you all to .Next 2018. State of Louisiana is currently re-architecting our cloud infrastructure and Nutanix is the first domino to fall in our strategy to deliver better services to our citizens. >> And I'd like to second that warm welcome. I'm Stacy Nigh director of infrastructure services for Choice Hotels International. Now you may think you know Choice, but we don't own hotels. We're a technology company. And Nutanix is helping us innovate the way we operate to support our franchisees. This is my first visit to New Orleans and my first .Next. >> Well Stacy, you're in for a treat. New Orleans is known for its fabulous food and its marvelous music, but most importantly the free spirit. >> Well I can't wait, and speaking of free, it's my pleasure to introduce the Nutanix Freedom video, enjoy. ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ Ah, ah, ♪ ♪ Ah, ah, ♪ ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ I lose everything, so I can sing ♪ ♪ Hallelujah I'm free ♪ ♪ I'm free, I'm free, I'm free, I'm free ♪ ♪ Gritting your teeth, you hold onto me ♪ ♪ It's never enough, I'm never complete ♪ ♪ Tell me to prove, expect me to lose ♪ ♪ I push it away, I'm trying to move ♪ ♪ I'm desperate to run, I'm desperate to leave ♪ ♪ If I lose it all, at least I'll be free ♪ ♪ Ah, ah ♪ ♪ Ah, ah ♪ ♪ Hallelujah, I'm free ♪ >> PA Announcer: Ladies and gentlemen, please welcome chief marketing officer Ben Gibson ♪ Ah, ah ♪ ♪ Ah, ah ♪ ♪ Hallelujah, I'm free ♪ >> Welcome, good morning. >> Audience: Good morning. >> And welcome to .Next 2018. There's no better way to open up a .Next conference than by hearing from two of our great customers. And Matthew, thank you for welcoming us to this beautiful, your beautiful state and city. And Stacy, this is your first .Next, and I know she's not alone because guess what It's my first .Next too. And I come properly attired. In the front row, you can see my Nutanix socks, and I think my Nutanix blue suit. And I know I'm not alone. I think over 5,000 people in attendance here today are also first timers at .Next. And if you are here for the first time, it's in the morning, let's get moving. I want you to stand up, so we can officially welcome you into the fold. Everyone stand up, first time. All right, welcome. (audience clapping) So you are all joining not just a conference here. This is truly a community. This is a community of the best and brightest in our industry I will humbly say that are coming together to share best ideas, to learn what's happening next, and in particular it's about forwarding not only your projects and your priorities but your careers. There's so much change happening in this industry. It's an opportunity to learn what's coming down the road and learn how you can best position yourself for this whole new world that's happening around cloud computing and modernizing data center environments. And this is not just a community, this is a movement. And it's a movement that started quite awhile ago, but the first .Next conference was in the quiet little town of Miami, and there was about 800 of you in attendance or so. So who in this hall here were at that first .Next conference in Miami? Let me hear from you. (audience members cheering) Yep, well to all of you grizzled veterans of the .Next experience, welcome back. You have started a movement that has grown and this year across many different .Next conferences all over the world, over 20,000 of your community members have come together. And we like to do it in distributed architecture fashion just like here in Nutanix. And so we've spread this movement all over the world with .Next conferences. And this is surging. We're also seeing just today the current count 61,000 certifications and climbing. Our Next community, close to 70,000 active members of our online community because .Next is about this big moment, and it's about every other day and every other week of the year, how we come together and explore. And my favorite stat of all. Here today in this hall amongst the record 5,500 registrations to .Next 2018 representing 71 countries in whole. So it's a global movement. Everyone, welcome. And you know when I got in Sunday night, I was looking at the tweets and the excitement was starting to build and started to see people like Adile coming from Casablanca. Adile wherever you are, welcome buddy. That's a long trip. Thank you so much for coming and being here with us today. I saw other folks coming from Geneva, from Denmark, from Japan, all over the world coming together for this moment. And we are accomplishing phenomenal things together. Because of your trust in us, and because of some early risk candidly that we have all taken together, we've created a movement in the market around modernizing data center environments, radically simplifying how we operate in the services we deliver to our businesses everyday. And this is a movement that we don't just know about this, but the industry is really taking notice. I love this chart. This is Gartner's inaugural hyperconvergence infrastructure magic quadrant chart. And I think if you see where Nutanix is positioned on there, I think you can agree that's a rout, that's a homerun, that's a mic drop so to speak. What do you guys think? (audience clapping) But here's the thing. It says Nutanix up there. We can honestly say this is a win for this hall here. Because, again, without your trust in us and what we've accomplished together and your partnership with us, we're not there. But we are there, and it is thanks to everyone in this hall. Together we have created, expanded, and truly made this market. Congratulations. And you know what, I think we're just getting started. The same innovation, the same catalyst that we drove into the market to converge storage network compute, the next horizon is around multi-cloud. The next horizon is around whether by accident or on purpose the strong move with different workloads moving into public cloud, some into private cloud moving back and forth, the promise of application mobility, the right workload on the right cloud platform with the right economics. Economics is key here. If any of you have a teenager out there, and they have a hold of your credit card, and they're doing something online or the like. You get some surprises at the end of the month. And that surprise comes in the form of spiraling public cloud costs. And this isn't to say we're not going to see a lot of workloads born and running in public cloud, but the opportunity is for us to take a path that regains control over infrastructure, regain control over workloads and where they're run. And the way I look at it for everyone in this hall, it's a journey we're on. It starts with modernizing those data center environments, continues with embracing the full cloud stack and the compelling opportunity to deliver that consumer experience to rapidly offer up enterprise compute services to your internal clients, lines of businesses and then out into the market. It's then about how you standardize across an enterprise cloud environment, that you're not just the infrastructure but the management, the automation, the control, and running any tier one application. I hear this everyday, and I've heard this a lot already this week about customers who are all in with this approach and running those tier one applications on Nutanix. And then it's the promise of not only hyperconverging infrastructure but hyperconverging multiple clouds. And if we do that, this journey the way we see it what we are doing is building your enterprise cloud. And your enterprise cloud is about the private cloud. It's about expanding and managing and taking back control of how you determine what workload to run where, and to make sure there's strong governance and control. And you're radically simplifying what could be an awfully complicated scenario if you don't reclaim and put your arms around that opportunity. Now how do we do this different than anyone else? And this is going to be a big theme that you're going to see from my good friend Sunil and his good friends on the product team. What are we doing together? We're taking all of that legacy complexity, that friction, that inability to be able to move fast because you're chained to old legacy environments. I'm talking to folks that have applications that are 40 years old, and they are concerned to touch them because they're not sure if they can react if their infrastructure can meet the demands of a new, modernized workload. We're making all that complexity invisible. And if all of that is invisible, it allows you to focus on what's next. And that indeed is the spirit of this conference. So if the what is enterprise cloud, and the how we do it different is by making infrastructure invisible, data centers, clouds, then why are we all here today? What is the binding principle that spiritually, that emotionally brings us all together? And we think it's a very simple, powerful word, and that word is freedom. And when we think about freedom, we think about as we work together the freedom to build the data center that you've always wanted to build. It's about freedom to run the applications where you choose based on the information and the context that wasn't available before. It's about the freedom of choice to choose the right cloud platform for the right application, and again to avoid a lot of these spiraling costs in unanticipated surprises whether it be around security, whether it be around economics or governance that come to the forefront. It's about the freedom to invent. It's why we got into this industry in the first place. We want to create. We want to build things not keep the lights on, not be chained to mundane tasks day by day. And it's about the freedom to play. And I hear this time and time again. My favorite tweet from a Nutanix customer to this day is just updated a lot of nodes at 38,000 feed on United Wifi, on my way to spend vacation with my family. Freedom to play. This to me is emotionally what brings us all together and what you saw with the Freedom video earlier, and what you see here is this new story because we want to go out and spread the word and not only talk about the enterprise cloud, not only talk about how we do it better, but talk about why it's so compelling to be a part of this hall here today. Now just one note of housekeeping for everyone out there in case I don't want anyone to take a wrong turn as they come to this beautiful convention center here today. A lot of freedom going on in this convention center. As luck may have it, there's another conference going on a little bit down that way based on another high growth, disruptive industry. Now MJBizCon Next, and by coincidence it's also called next. And I have to admire the creativity. I have to admire that we do share a, hey, high growth business model here. And in case you're not quite sure what this conference is about. I'm the head of marketing here. I have to show the tagline of this. And I read the tagline from license to launch and beyond, the future of the, now if I can replace that blank with our industry, I don't know, to me it sounds like a new, cool Sunil product launch. Maybe launching a new subscription service or the like. Stay tuned, you never know. I think they're going to have a good time over there. I know we're going to have a wonderful week here both to learn as well as have a lot of fun particularly in our customer appreciation event tonight. I want to spend a very few important moments on .Heart. .Heart is Nutanix's initiative to promote diversity in the technology arena. In particular, we have a focus on advancing the careers of women and young girls that we want to encourage to move into STEM and high tech careers. You have the opportunity to engage this week with this important initiative. Please role the video, and let's learn more about how you can do so. >> Video Plays (electronic music) >> So all of you have received these .Heart tokens. You have the freedom to go and choose which of the four deserving charities can receive donations to really advance our cause. So I thank you for your engagement there. And this community is behind .Heart. And it's a very important one. So thank you for that. .Next is not the community, the moment it is without our wonderful partners. These are our amazing sponsors. Yes, it's about sponsorship. It's also about how we integrate together, how we innovate together, and we're about an open community. And so I want to thank all of these names up here for your wonderful sponsorship of this event. I encourage everyone here in this room to spend time, get acquainted, get reacquainted, learn how we can make wonderful music happen together, wonderful music here in New Orleans happen together. .Next isn't .Next with a few cool surprises. Surprise number one, we have a contest. This is a still shot from the Freedom video you saw right before I came on. We have strategically placed a lucky seven Nutanix Easter eggs in this video. And if you go to Nutanix.com/freedom, watch the video. You may have to use the little scrubbing feature to slow down 'cause some of these happen quickly. You're going to find some fun, clever Easter eggs. List all seven, tweet that out, or as many as you can, tweet that out with hashtag nextconf, C, O, N, F, and we'll have a random drawing for an all expenses paid free trip to .Next 2019. And just to make sure everyone understands Easter egg concept. There's an eighth one here that's actually someone that's quite famous in our circles. If you see on this still shot, there's someone in the back there with a red jacket on. That's not just anyone. We're targeting in here. That is our very own Julie O'Brien, our senior vice president of corporate marketing. And you're going to hear from Julie later on here at .Next. But Julie and her team are the engine and the creativity behind not only our new Freedom campaign but more importantly everything that you experience here this week. Julie and her team are amazing, and we can't wait for you to experience what they've pulled together for you. Another surprise, if you go and visit our Freedom booths and share your stories. So they're like video booths, you share your success stories, your partnerships, your journey that I talked about, you will be entered to win a beautiful Nutanix brand compliant, look at those beautiful colors, bicycle. And it's not just any bicycle. It's a beautiful bicycle made by our beautiful customer Trek. I actually have a Trek bike. I love cycling. Unfortunately, I'm not eligible, but all of you are. So please share your stories in the Freedom Nutanix's booths and put yourself in the running, or in the cycling to get this prize. One more thing I wanted to share here. Yesterday we had a great time. We had our inaugural Nutanix hackathon. This hackathon brought together folks that were in devops practices, many of you that are in this room. We sold out. We thought maybe we'd get four or five teams. We had to shutdown at 14 teams that were paired together with a Nutanix mentor, and you coded. You used our REST APIs. You built new apps that integrated in with Prism and Clam. And it was wonderful to see this. Everyone I talked to had a great time on this. We had three winners. In third place, we had team Copper or team bronze, but team Copper. Silver, Not That Special, they're very humble kind of like one of our key mission statements. And the grand prize winner was We Did It All for the Cookies. And you saw them coming in on our Mardi Gras float here. We Did It All for Cookies, they did this very creative job. They leveraged an Apple Watch. They were lighting up VMs at a moments notice utilizing a lot of their coding skills. Congratulations to all three, first, second, and third all receive $2,500. And then each of them, then were able to choose a charity to deliver another $2,500 including Ronald McDonald House for the winner, we did it all for the McDonald Land cookies, I suppose, to move forward. So look for us to do more of these kinds of events because we want to bring together infrastructure and application development, and this is a great, I think, start for us in this community to be able to do so. With that, who's ready to hear form Dheeraj? You ready to hear from Dheeraj? (audience clapping) I'm ready to hear from Dheeraj, and not just 'cause I work for him. It is my distinct pleasure to welcome on the stage our CEO, cofounder and chairman Dheeraj Pandey. ("Free" by Broods) ♪ Hallelujah, I'm free ♪ >> Thank you Ben and good morning everyone. >> Audience: Good morning. >> Thank you so much for being here. It's just such an elation when I'm thinking about the Mardi Gras crowd that came here, the partners, the customers, the NTCs. I mean there's some great NTCs up there I could relate to because they're on Slack as well. How many of you are in Slack Nutanix internal Slack channel? Probably 5%, would love to actually see this community grow from here 'cause this is not the only even we would love to meet you. We would love to actually do this in a real time bite size communication on our own internal Slack channel itself. Now today, we're going to talk about a lot of things, but a lot of hard things, a lot of things that take time to build and have evolved as the industry itself has evolved. And one of the hard things that I want to talk about is multi-cloud. Multi-cloud is a really hard problem 'cause it's full of paradoxes. It's really about doing things that you believe are opposites of each other. It's about frictionless, but it's also about governance. It's about being simple, and it's also about being secure at the same time. It's about delight, it's about reducing waste, it's about owning, and renting, and finally it's also about core and edge. How do you really make this big at a core data center whether it's public or private? Or how do you really shrink it down to one or two nodes at the edge because that's where your machines are, that's where your people are? So this is a really hard problem. And as you hear from Sunil and the gang there, you'll realize how we've actually evolved our solutions to really cater to some of these. One of the approaches that we have used to really solve some of these hard problems is to have machines do more, and I said a lot of things in those four words, have machines do more. Because if you double-click on that sentence, it really means we're letting design be at the core of this. And how do you really design data centers, how do you really design products for the data center that hush all the escalations, the details, the complexities, use machine-learning and AI and you know figure our anomaly detection and correlations and patter matching? There's a ton of things that you need to do to really have machines do more. But along the way, the important lesson is to make machines invisible because when machines become invisible, it actually makes something else visible. It makes you visible. It makes governance visible. It makes applications visible, and it makes services visible. A lot of things, it makes teams visible, careers visible. So while we're really talking about invisibility of machines, we're talking about visibility of people. And that's how we really brought all of you together in this conference as well because it makes all of us shine including our products, and your careers, and your teams as well. And I try to define the word customer success. You know it's one of the favorite words that I'm actually using. We've just hired a great leader in customer success recently who's really going to focus on this relatively hard problem, yet another hard problem of customer success. We think that customer success, true customer success is possible when we have machines tend towards invisibility. But along the way when we do that, make humans tend towards freedom. So that's the real connection, the yin-yang of machines and humans that Nutanix is really all about. And that's why design is at the core of this company. And when I say design, I mean reducing friction. And it's really about reducing friction. And everything we do, the most mundane of things which could be about migrating applications, spinning up VMs, self-service portals, automatic upgrades, and automatic scale out, and all the things we do is about reducing friction which really makes machines become invisible and humans gain freedom. Now one of the other convictions we have is how all of us are really tied at the hip. You know our success is tied to your success. If we make you successful, and when I say you, I really mean Main Street. Main Street being customers, and partners, and employees. If we make all of you successful, then we automatically become successful. And very coincidentally, Main Street and Wall Street are also tied in that very same relation as well. If we do a great job at Main Street, I think the Wall Street customer, i.e. the investor, will take care of itself. You'll have you know taken care of their success if we took care of Main Street success itself. And that's the narrative that our CFO Dustin Williams actually went and painted to our Wall Street investors two months ago at our investor day conference. We talked about a $3 billion number. We said look as a company, as a software company, we can go and achieve $3 billion in billings three years from now. And it was a telling moment for the company. It was really about talking about where we could be three years from now. But it was not based on a hunch. It was based on what we thought was customer success. Now realize that $3 billion in pure software. There's only 10 to 15 companies in the world that actually have that kind of software billings number itself. But at the core of this confidence was customer success, was the fact that we were doing a really good job of not over promising and under delivering but under promising starting with small systems and growing the trust of the customers over time. And this is one of the statistics we actually talk about is repeat business. The first dollar that a Global 2000 customer spends in Nutanix, and if we go and increase their trust 15 times by year six, and we hope to actually get 17 1/2 and 19 times more trust in the years seven and eight. It's very similar numbers for non Global 2000 as well. Again, we go and really hustle for customer success, start small, have you not worry about paying millions of dollars upfront. You know start with systems that pay as they grow, you pay as they grow, and that's the way we gain trust. We have the same non Global 2000 pay $6 1/2 for the first dollar they've actually spent on us. And with this, I think the most telling moment was when Dustin concluded. And this is key to this audience here as well. Is how the current cohorts which is this audience here and many of them were not here will actually carry the weight of $3 billion, more than 50% of it if we did a great job of customer success. If we were humble and honest and we really figured out what it meant to take care of you, and if we really understood what starting small was and having to gain the trust with you over time, we think that more than 50% of that billings will actually come from this audience here without even looking at new logos outside. So that's the trust of customer success for us, and it takes care of pretty much every customer not just the Main Street customer. It takes care of Wall Street customer. It takes care of employees. It takes care of partners as well. Now before I talk about technology and products, I want to take a step back 'cause many of you are new in this audience. And I think that it behooves us to really talk about the history of this company. Like we've done a lot of things that started out as science projects. In fact, I see some tweets out there and people actually laugh at Nutanix cloud. And this is where we were in 2012. So if you take a step back and think about where the company was almost seven, eight years ago, we were up against giants. There was a $30 billion industry around network attached storage, and storage area networks and blade servers, and hypervisors, and systems management software and so on. So what did we start out with? Very simple premise that we will collapse the architecture of the data center because three tier is wasteful and three tier is not delightful. It was a very simple hunch, we said we'll take rack mount servers, we'll put a layer of software on top of it, and that layer of software back then only did storage. It didn't do networks and security, and it ran on top of a well known hypervisor from VMware. And we said there's one non negotiable thing. The fact that the design must change. The control plane for this data center cannot be the old control plane. It has to be rethought through, and that's why Prism came about. Now we went and hustled hard to add more things to it. We said we need to make this diverse because it can't just be for one application. We need to make it CPU heavy, and memory heavy, and storage heavy, and flash heavy and so on. And we built a highly configurable HCI. Now all of them are actually configurable as you know of today. And this was not just innovation in technologies, it was innovation in business and sizing, capacity planning, quote to cash business processes. A lot of stuff that we had to do to make this highly configurable, so you can really scale capacity and performance independent of each other. Then in 2014, we did something that was very counterintuitive, but we've done this on, and on, and on again. People said why are you disrupting yourself? You know you've been doing a good job of shipping appliances, but we also had the conviction that HCI was not about hardware. It was about a form factor, but it was really about an operating system. And we started to compete with ourselves when we said you know what we'll do arm's length distribution, we'll do arm's length delivery of products when we give our software to our Dell partner, to Dell as a partner, a loyal partner. But at the same time, it was actually seen with a lot of skepticism. You know these guys are wondering how to really make themselves vanish because they're competing with themselves. But we also knew that if we didn't compete with ourselves someone else will. Now one of the most controversial decisions was really going and doing yet another hypervisor. In the year 2015, it was really preposterous to build yet another hypervisor. It was a very mature market. This was coming probably 15 years too late to the market, or at least 10 years too late to market. And most people said it shouldn't be done because hypervisor is a commodity. And that's the word we latched on to. That this commodity should not have to be paid for. It shouldn't have a team of people managing it. It should actually be part of your overall stack, but it should be invisible. Just like storage needs to be invisible, virtualization needs to be invisible. But it was a bold step, and I think you know at least when we look at our current numbers, 1/3rd of our customers are actually using AHV. At least every quarter that we look at it, our new deployments, at least 35% of it is actually being used on AHV itself. And again, a very preposterous thing to have said five years ago, four years ago to where we've actually come. Thank you so much for all of you who've believed in the fact that virtualization software must be invisible and therefore we should actually try out something that is called AHV today. Now we went and added Lenovo to our OEM mix, started to become even more of a software company in the year 2016. Went and added HP and Cisco in some of very large deals that we talk about in earnings call, our HP deals and Cisco deals. And some very large customers who have procured ELAs from us, enterprise license agreements from us where they want to mix and match hardware. They want to mix Dell hardware with HP hardware but have common standard Nutanix entitlements. And finally, I think this was another one of those moments where we say why should HCI be only limited to X86. You know this operating systems deserves to run on a non X86 architecture as well. And that gave birth to this idea of HCI and Power Systems from IBM. And we've done a great job of really innovating with them in the last three, four quarters. Some amazing innovation that has come out where you can now run AIX 7.x on Nutanix. And for the first time in the history of data center, you can actually have a single software not just a data plane but a control plane where you can manage an IBM farm, an Power farm, and open Power farm and an X86 farm from the same control plane and have you know the IBM farm feed storage to an Intel compute farm and vice versa. So really good things that we've actually done. Now along the way, something else was going on while we were really busy building the private cloud, we knew there was a new consumption model on computing itself. People were renting computing using credit cards. This is the era of the millennials. They were like really want to bypass people because at the end of the day, you know why can't computing be consumed the way like eCommerce is? And that devops movement made us realize that we need to add to our stack. That stack will now have other computing clouds that is AWS and Azure and GCP now. So similar to the way we did Prism. You know Prism was really about going and making hypervisors invisible. You know we went ahead and said we'll add Calm to our portfolio because Calm is now going to be what Prism was to us back when we were really dealing with multi hypervisor world. Now it's going to be multi-cloud world. You know it's one of those things we had a gut around, and we really come to expect a lot of feedback and real innovation. I mean yesterday when we had the hackathon. The center, the epicenter of the discussion was Calm, was how do you automate on multiple clouds without having to write a single line of code? So we've come a long way since the acquisition of Calm two years ago. I think it's going to be a strong pillar in our overall product portfolio itself. Now the word multi-cloud is going to be used and over used. In fact, it's going to be blurring its lines with the idea of hyperconvergence of clouds, you know what does it mean. We just hope that hyperconvergence, the way it's called today will morph to become hyperconverged clouds not just hyperconverged boxes which is a software defined infrastructure definition itself. But let's focus on the why of multi-cloud. Why do we think it can't all go into a public cloud itself? The one big reason is just laws of the land. There's data sovereignty and computing sovereignty, regulations and compliance because of which you need to be in where the government with the regulations where the compliance rules want you to be. And by the way, that's just one reason why the cloud will have to disperse itself. It can't just be 10, 20 large data centers around the world itself because you have 200 plus countries and half of computing actually gets done outside the US itself. So it's a really important, very relevant point about the why of multi-cloud. The second one is just simple laws of physics. You know if there're machines at the edge, and they're producing so much data, you can't bring all the data to the compute. You have to take the compute which is stateless, it's an app. You take the app to where the data is because the network is the enemy. The network has always been the enemy. And when we thought we've made fatter networks, you've just produced more data as well. So this just goes without saying that you take something that's stateless that's without gravity, that's lightweight which is compute and the application and push it close to where the data itself is. And the third one which is related is just latency reasons you know? And it's not just about machine latency and electrons transferring over the speed light, and you can't defy the speed of light. It's also about human latency. It's also about multiple teams saying we need to federate and delegate, and we need to push things down to where the teams are as opposed to having to expect everybody to come to a very large computing power itself. So all the ways, the way they are, there will be at least three different ways of looking at multi-cloud itself. There's a centralized core cloud. We all go and relate to this because we've seen large data centers and so on. And that's the back office workhorse. It will crunch numbers. It will do processing. It will do a ton of things that will go and produce results for you know how we run our businesses, but there's also the dispersal of the cloud, so ROBO cloud. And this is the front office server that's really serving. It's a cloud that's going to serve people. It's going to be closer to people, and that's what a ROBO cloud is. We have a ton of customers out here who actually use Nutanix and the ROBO environments themselves as one node, two node, three node, five node servers, and it just collapses the entire server closet room in these ROBOs into something really, really small and minuscule. And finally, there's going to be another dispersed edge cloud because that's where the machines are, that's where the data is. And there's going to be an IOT machine fog because we need to miniaturize computing to something even smaller, maybe something that can really land in the palm in a mini server which is a PC like server, but you need to run everything that's enterprise grade. You should be able to go and upgrade them and monitor them and analyze them. You know do enough computing up there, maybe event-based processing that can actually happen. In fact, there's some great innovation that we've done at the edge with IOTs that I'd love for all of you to actually attend some sessions around as well. So with that being said, we have a hole in the stack. And that hole is probably one of the hardest problems that we've been trying to solve for the last two years. And Sunil will talk a lot about that. This idea of hybrid. The hybrid of multi-cloud is one of the hardest problems. Why? Because we're talking about really blurring the lines with owning and renting where you have a single-tenant environment which is your data center, and a multi-tenant environment which is the service providers data center, and the two must look like the same. And the two must look like the same is that hard a problem not just for burst out capacity, not just for security, not just for identity but also for networks. Like how do you blur the lines between networks? How do you blur the lines for storage? How do you really blur the lines for a single pane of glass where you can think of availability zones that look highly symmetric even though they're not because one of 'em is owned by you, and it's single-tenant. The other one is not owned by you, that's multi-tenant itself. So there's some really hard problems in hybrid that you'll hear Sunil talk about and the team. And some great strides that we've actually made in the last 12 months of really working on Xi itself. And that completes the picture now in terms of how we believe the state of computing will be going forward. So what are the must haves of a multi-cloud operating system? We talked about marketplace which is catalogs and automation. There's a ton of orchestration that needs to be done for multi-cloud to come together because now you have a self-service portal which is providing an eCommerce view. It's really about you know getting to do a lot of requests and workflows without having people come in the way, without even having tickets. There's no need for tickets if you can really start to think like a self-service portal as if you're just transacting eCommerce with machines and portals themselves. Obviously the next one is networking security. You need to blur the lines between on-prem and off-prem itself. These two play a huge role. And there's going to be a ton of details that you'll see Sunil talk about. But finally, what I want to focus on the rest of the talk itself here is what governance and compliance. This is a hard problem, and it's a hard problem because things have evolved. So I'm going to take a step back. Last 30 years of computing, how have consumption models changed? So think about it. 30 years ago, we were making decisions for 10 plus years, you know? Mainframe, at least 10 years, probably 20 plus years worth of decisions. These were decisions that were extremely waterfall-ish. Make 10s of millions of dollars worth of investment for a device that we'd buy for at least 10 to 20 years. Now as we moved to client-server, that thing actually shrunk. Now you're talking about five years worth of decisions, and these things were smaller. So there's a little bit more velocity in our decisions. We were not making as waterfall-ish decision as we used to with mainframes. But still five years, talk about virtualized, three tier, maybe three to five year decisions. You know they're still relatively big decisions that we were making with computer and storage and SAN fabrics and virtualization software and systems management software and so on. And here comes Nutanix, and we said no, no. We need to make it smaller. It has to become smaller because you know we need to make more agile decisions. We need to add machines every week, every month as opposed to adding you know machines every three to five years. And we need to be able to upgrade them, you know any point in time. You can do the upgrades every month if you had to, every week if you had to and so on. So really about more agility. And yet, we were not complete because there's another evolution going on, off-prem in the public cloud where people are going and doing reserved instances. But more than that, they were doing on demand stuff which no the decision was days to weeks. Some of these things that unitive compute was being rented for days to weeks, not years. And if you needed something more, you'd shift a little to the left and use reserved instances. And then spot pricing, you could do spot pricing for hours and finally lambda functions. Now you could to function as a service where things could actually be running only for minutes not even hours. So as you can see, there's a wide spectrum where when you move to the right, you get more elasticity, and when you move to the left, you're talking about predictable decision making. And in fact, it goes from minutes on one side to 10s of years on the other itself. And we hope to actually go and blur the lines between where NTNX is today where you see Nutanix right now to where we really want to be with reserved instances and on demand. And that's the real ask of Nutanix. How do you take care of this discontinuity? Because when you're owning things, you actually end up here, and when you're renting things, you end up here. What does it mean to really blur the lines between these two because people do want to make decisions that are better than reserved instance in the public cloud. We'll talk about why reserved instances which looks like a proxy for Nutanix it's still very, very wasteful even though you might think it's delightful, it's very, very wasteful. So what does it mean for on-prem and off-prem? You know you talk about cost governance, there's security compliance. These high velocity decisions we're actually making you know where sometimes you could be right with cost but wrong on security, but sometimes you could be right in security but wrong on cost. We need to really figure out how machines make some of these decisions for us, how software helps us decide do we have the right balance between cost, governance, and security compliance itself? And to get it right, we have introduced our first SAS service called Beam. And to talk more about Beam, I want to introduce Vijay Rayapati who's the general manager of Beam engineering to come up on stage and talk about Beam itself. Thank you Vijay. (rock music) So you've been here a couple of months now? >> Yes. >> At the same time, you spent the last seven, eight years really handling AWS. Tell us more about it. >> Yeah so we spent a lot of time trying to understand the last five years at Minjar you know how customers are really consuming in this new world for their workloads. So essentially what we tried to do is understand the consumption models, workload patterns, and also build algorithms and apply intelligence to say how can we lower this cost and you know improve compliance of their workloads.? And now with Nutanix what we're trying to do is how can we converge this consumption, right? Because what happens here is most customers start with on demand kind of consumption thinking it's really easy, but the total cost of ownership is so high as the workload elasticity increases, people go towards spot or a scaling, but then you need a lot more automation that something like Calm can help them. But predictability of the workload increases, then you need to move towards reserved instances, right to lower costs. >> And those are some of the things that you go and advise with some of the software that you folks have actually written. >> But there's a lot of waste even in the reserved instances because what happens it while customers make these commitments for a year or three years, what we see across, like we track a billion dollars in public cloud consumption you know as a Beam, and customers use 20%, 25% of utilization of their commitments, right? So how can you really apply, take the data of consumption you know apply intelligence to essentially reduce their you know overall cost of ownership. >> You said something that's very telling. You said reserved instances even though they're supposed to save are still only 20%, 25% utilized. >> Yes, because the workloads are very dynamic. And the next thing is you can't do hot add CPU or hot add memory because you're buying them for peak capacity. There is no convergence of scaling that apart from the scaling as another node. >> So you actually sized it for peak, but then using 20%, 30%, you're still paying for the peak. >> That's right. >> Dheeraj: That can actually add up. >> That's what we're trying to say. How can we deliver visibility across clouds? You know how can we deliver optimization across clouds and consumption models and bring the control while retaining that agility and demand elasticity? >> That's great. So you want to show us something? >> Yeah absolutely. So this is Beam as just Dheeraj outlined, our first SAS service. And this is my first .Next. And you know glad to be here. So what you see here is a global consumption you know for a business across different clouds. Whether that's in a public cloud like Amazon, or Azure, or Nutanix. We kind of bring the consumption together for the month, the recent month across your accounts and services and apply intelligence to say you know what is your spent efficiency across these clouds? Essentially there's a lot of intelligence that goes in to detect your workloads and consumption model to say if you're spending $100, how efficiently are you spending? How can you increase that? >> So you have a centralized view where you're looking at multiple clouds, and you know you talk about maybe you can take an example of an account and start looking at it? >> Yes, let's go into a cloud provider like you know for this business, let's go and take a loot at what's happening inside an Amazon cloud. Here we get into the deeper details of what's happening with the consumption of a specific services as well as the utilization of both on demand and RI. You know what can you do to lower your cost and detect your spend efficiency of a dollar to see you know are there resources that are provisioned by teams for applications that are not being used, or are there resources that we should go and rightsize because you know we have all this monitoring data, configuration data that we crunch through to basically detect this? >> You think there's billions of events that you look at everyday. You're already looking at a billon dollars worth of AWS spend. >> Right, right. >> So billions of events, billing, metering events every year to really figure out and optimize for them. >> So what we have here is a very popular international government organization. >> Dheeraj: Wow, so it looks like Russians are everywhere, the cloud is everywhere actually. >> Yes, it's quite popular. So when you bring your master account into Beam, we kind of detect all the linked accounts you know under that. Then you can go and take a look at not just at the organization level within it an account level. >> So these are child objects, you know. >> That's right. >> You can think of them as ephemeral accounts that you create because you don't want to be on the record when you're doing spams on Facebook for example. >> Right, let's go and take a look at what's happening inside a Facebook ad spend account. So we have you know consumption of the services. Let's go deeper into compute consumption, and you kind of see a trendline. You can do a lot of computing. As you see, looks like one campaign has ended. They started another campaign. >> Dheeraj: It looks like they're not stopping yet, man. There's a lot of money being made in Facebook right now. (Vijay laughing) >> So not only just get visibility at you know compute as a service inside a cloud provider, you can go deeper inside compute and say you know what is a service that I'm really consuming inside compute along with the CPUs n'stuff, right? What is my data transfer? You know what is my network? What is my load blancers? So essentially you get a very deeper visibility you know as a service right. Because we have three goals for Beam. How can we deliver visibility across clouds? How can we deliver visibility across services? And how can we deliver, then optimization? >> Well I think one thing that I just want to point out is how this SAS application was an extremely teachable moment for me to learn about the different resources that people could use about the public cloud. So all of you who actually have not gone deep enough into the idea of public cloud. This could be a great app for you to learn about things, the resources, you know things that you could do to save and security and things of that nature. >> Yeah. And we really believe in creating the single pane view you know to mange your optimization of a public cloud. You know as Ben spoke about as a business, you need to have freedom to use any cloud. And that's what Beam delivers. How can you make the right decision for the right workload to use any of the cloud of your choice? >> Dheeraj: How 'about databases? You talked about compute as well but are there other things we could look at? >> Vijay: Yes, let's go and take a look at database consumption. What you see here is they're using inside Facebook ad spending, they're using all databases except Oracle. >> Dheeraj: Wow, looks like Oracle sales folks have been active in Russia as well. (Vijay laughing) >> So what we're seeing here is a global view of you know what is your spend efficiency and which is kind of a scorecard for your business for the dollars that you're spending. And the great thing is Beam kind of brings together you know through its intelligence and algorithms to detect you know how can you rightsize resources and how can you eliminate things that you're not using? And we deliver and one click fix, right? Let's go and take a look at resources that are maybe provisioned for storage and not being used. We deliver the seamless one-click philosophy that Nutanix has to eliminate it. >> So one click, you can actually just pick some of these wasteful things that might be looking delightful because using public cloud, using credit cards, you can go in and just say click fix, and it takes care of things. >> Yeah, and not only remove the resources that are unused, but it can go and rightsize resources across your compute databases, load balancers, even past services, right? And this is where the power of it kind of comes for a business whether you're using on-prem and off-prem. You know how can you really converge that consumption across both? >> Dheeraj: So do you have something for Nutanix too? >> Vijay: Yes, so we have basically been working on Nutanix with something that we're going to deliver you know later this year. As you can see here, we're bringing together the consumption for the Nutanix, you know the services that you're using, the licensing and capacity that is available. And how can you also go and optimize within Nutanix environments >> That's great. >> for the next workload. Now let me quickly show you what we have on the compliance side. This is an extremely powerful thing that we've been working on for many years. What we deliver here just like in cost governance, a global view of your compliance across cloud providers. And the most powerful thing is you can go into a cloud provider, get the next level of visibility across cloud regimes for hundreds of policies. Not just policies but those policies across different regulatory compliances like HIPA, PCI, CAS. And that's very powerful because-- >> So you're saying a lot of what you folks have done is codified these compliance checks in software to make sure that people can sleep better at night knowing that it's PCI, and HIPA, and all that compliance actually comes together? >> And you can build this not just by cloud accounts, you can build them across cloud accounts which is what we call security centers. Essentially you can go and take a deeper look at you know the things. We do a whole full body scan for your cloud infrastructure whether it's AWS Amazon or Azure, and you can go and now, again, click to fix things. You know that had been probably provisioned that are violating the security compliance rules that should be there. Again, we have the same one-click philosophy to say how can you really remove things. >> So again, similar to save, you're saying you can go and fix some of these security issues by just doing one click. >> Absolutely. So the idea is how can we give our people the freedom to get visibility and use the right cloud and take the decisions instantly through one click. That's what Beam delivers you know today. And you know get really excited, and it's available at beam.nutanix.com. >> Our first SAS service, ladies and gentleman. Thank you so much for doing this, Vijay. It looks like there's going to be a talk here at 10:30. You'll talk more about the midterm elections there probably? >> Yes, so you can go and write your own security compliances as well. You know within Beam, and a lot of powerful things you can do. >> Awesome, thank you so much, Vijay. I really appreciate it. (audience clapping) So as you see, there's a lot of work that we're doing to really make multi-cloud which is a hard problem. You know think about working the whole body of it and what about cost governance? What about security compliance? Obviously what about hybrid networks, and security, and storage, you know compute, many of the things that you've actually heard from us, but we're taking it to a level where the business users can now understand the implications. A CFO's office can understand the implications of waste and delight. So what does customer success mean to us? You know again, my favorite word in a long, long time is really go and figure out how do you make you, the customer, become operationally efficient. You know there's a lot of stuff that we deliver through software that's completely uncovered. It's so latent, you don't even know you have it, but you've paid for it. So you've got to figure out what does it mean for you to really become operationally efficient, organizationally proficient. And it's really important for training, education, stuff that you know you're people might think it's so awkward to do in Nutanix, but it could've been way simpler if you just told you a place where you can go and read about it. Of course, I can just use one click here as opposed to doing things the old way. But most importantly to make it financially accountable. So the end in all this is, again, one of the things that I think about all the time in building this company because obviously there's a lot of stuff that we want to do to create orphans, you know things above the line and top line and everything else. There's also a bottom line. Delight and waste are two sides of the same coin. You know when we're talking about developers who seek delight with public cloud at the same time you're looking at IT folks who're trying to figure out governance. They're like look you know the CFOs office, the CIOs office, they're trying to figure out how to curb waste. These two things have to go hand in hand in this era of multi-cloud where we're talking about frictionless consumption but also governance that looks invisible. So I think, at the end of the day, this company will do a lot of stuff around one-click delight but also go and figure out how do you reduce waste because there's so much waste including folks there who actually own Nutanix. There's so much software entitlement. There's so much waste in the public cloud itself that if we don't go and put our arms around, it will not lead to customer success. So to talk more about this, the idea of delight and the idea of waste, I'd like to bring on board a person who I think you know many of you actually have talked about it have delightful hair but probably wasted jokes. But I think has wasted hair and delightful jokes. So ladies and gentlemen, you make the call. You're the jury. Sunil R.M.J. Potti. ("Free" by Broods) >> So that was the first time I came out from the bottom of a screen on a stage. I actually now know what it feels to be like a gopher. Who's that laughing loudly at the back? Okay, do we have the... Let's see. Okay, great. We're about 15 minutes late, so that means we're running right on time. That's normally how we roll at this conference. And we have about three customers and four demos. Like I think there's about three plus six, about nine folks coming onstage. So we'll have our own version of the parade as well on the main stage for the next 70 minutes. So let's just jump right into it. I think we've been pretty consistent in terms of our longterm plans since we started the company. And it's become a lot more clearer over the last few years about our plans to essentially make computing invisible as Dheeraj mentioned. We're doing this across multiple acts. We started with HCI. We call it making infrastructure invisible. We extended that to making data centers invisible. And then now we're in this mode of essentially extending it to converging clouds so that you can actually converge your consumption models. And so today's conference and essentially the theme that you're going to be seeing throughout the breakout sessions is about a journey towards invisible clouds, but make sure that you internalize the fact that we're investing heavily in each of the three phases. It's just not about the hybrid cloud with Nutanix, it's about actually finishing the job about making infrastructure invisible, expanding that to kind of go after the full data center, and then of course embark on some real meaningful things around invisible clouds, okay? And to start the session, I think you know the part that I wanted to make sure that we are all on the same page because most of us in the room are still probably in this phase of the journey which is about invisible infrastructure. And there the three key products and especially two of them that most of you guys know are Acropolis and Prism. And they're sort of like the bedrock of our company. You know especially Acropolis which is about the web scale architecture. Prism is about consumer grade design. And with Acropolis now being really mature. It's in the seventh year of innovation. We still have more than half of our company in terms of R and D spend still on Acropolis and Prism. So our core product is still sort of where we think we have a significant differentiation on. We're not going to let our foot off the peddle there. You know every time somebody comes to me and says look there's a new HCI render popping out or an existing HCI render out there, I ask a simple question to our customers saying show me 100 customers with 100 node deployments, and it will be very hard to find any other render out there that does the same thing. And that's the power of Acropolis the code platform. And then it's you know the fact that the velocity associated with Acropolis continues to be on a fast pace. We came out with various new capabilities in 5.5 and 5.6, and one of the most complicated things to get right was the fact to shrink our three node cluster to a one node, two node deployment. Most of you actually had requirements on remote office, branch office, or the edge that actually allowed us to kind of give us you know sort of like the impetus to kind of go design some new capabilities into our core OS to get this out. And associated with Acropolis and expanding into Prism, as you will see, the first couple of years of Prism was all about refactoring the user interface, doing a good job with automation. But more and more of the investments around Prism is going to be based on machine learning. And you've seen some variants of that over the last 12 months, and I can tell you that in the next 12 to 24 months, most of our investments around infrastructure operations are going to be driven by AI techniques starting with most of our R and D spend also going into machine-learning algorithms. So when you talk about all the enhancements that have come on with Prism whether it be formed by you know the management console changing to become much more automated, whether now we give you automatic rightsizing, anomaly detection, or a series of functionality that have gone into it, the real core sort of capabilities that we're putting into Prism and Acropolis are probably best served by looking at the quality of the product. You probably have seen this slide before. We started showing the number of nodes shipped by Nutanix two years ago at this conference. It was about 35,000 plus nodes at that time. And since then, obviously we've you know continued to grow. And we would draw this line which was about enterprise class quality. That for the number of bugs found as a percentage of nodes shipped, there's a certain line that's drawn. World class companies do about probably 2% to 3%, number of CFDs per node shipped. And we were just broken that number two years ago. And to give you guys an idea of how that curve has shown up, it's now currently at .95%. And so along with velocity, you know this focus on being true to our roots of reliability and stability continues to be, you know it's an internal challenge, but it's also some of the things that we keep a real focus on. And so between Acropolis and Prism, that's sort of like our core focus areas to sort of give us the confidence that look we have this really high bar that we're sort of keeping ourselves accountable to which is about being the most advanced enterprise cloud OS on the planet. And we will keep it this way for the next 10 years. And to complement that, over a period of time of course, we've added a series of services. So these are services not just for VMs but also for files, blocks, containers, but all being delivered in that single one-click operations fashion. And to really talk more about it, and actually probably to show you the real deal there it's my great pleasure to call our own version of Moses inside the company, most of you guys know him as Steve Poitras. Come on up, Steve. (audience clapping) (rock music) >> Thanks Sunil. >> You barely fit in that door, man. Okay, so what are we going to talk about today, Steve? >> Absolutely. So when we think about when Nutanix first got started, it was really focused around VDI deployments, smaller workloads. However over time as we've evolved the product, added additional capabilities and features, that's grown from VDI to business critical applications as well as cloud native apps. So let's go ahead and take a look. >> Sunil: And we'll start with like Oracle? >> Yeah, that's one of the key ones. So here we can see our Prism central user interface, and we can see our Thor cluster obviously speaking to the Avengers theme here. We can see this is doing right around 400,000 IOPs at around 360 microseconds latency. Now obviously Prism central allows you to mange all of your Nutanix deployments, but this is just running on one single Nutanix cluster. So if we hop over here to our explore tab, we can see we have a few categories. We have some Kubernetes, some AFS, some Xen desktop as well as Oracle RAC. Now if we hope over to Oracle RAC, we're running a SLOB workload here. So obviously with Oracle enterprise applications performance, consistency, and extremely low latency are very critical. So with this SLOB workload, we're running right around 300 microseconds of latency. >> Sunil: So this is what, how many node Oracle RAC cluster is this? >> Steve: This is a six node Oracle RAC deployment. >> Sunil: Got it. And so what has gone into the product in recent releases to kind of make this happen? >> Yeah so obviously on the hardware front, there's been a lot of evolutions in storage mediums. So with the introduction of NVME, persistent memory technologies like 3D XPoint, that's meant storage media has become a lot faster. Now to allow you to full take advantage of that, that's where we've had to do a lot of optimizations within the storage stack. So with AHV, we have what we call AHV turbo mode which allows you to full take advantage of those faster storage mediums at that much lower latency. And then obviously on the networking front, technologies such as RDMA can be leveraged to optimize that network stack. >> Got it. So that was Oracle RAC running on a you know Nutanix cluster. It used to be a big deal a couple of years ago. Now we've got many customers doing that. On the same environment though, we're going to show you is the advent of actually putting file services in the same scale out environment. And you know many of you in the audience probably know about AFS. We released it about 12 to 14 months ago. It's been one of our most popular new products of all time within Nutanix's history. And we had SMB support was for user file shares, VDI deployments, and it took awhile to bake, to get to scale and reliability. And then in the last release, in the recent release that we just shipped, we now added NFS for support so that we can no go after the full scale file server consolidation. So let's take a look at some of that stuff. >> Yep, let's do it. So hopping back over to Prism, we can see our four cluster here. Overall cluster-wide latency right around 360 microseconds. Now we'll hop down to our file server section. So here we can see we have our Next A File Server hosting right about 16.2 million files. Now if you look at our shares and exports, we can see we have a mix of different shares. So one of the shares that you see there is home directories. This is an SMB share which is actually mapped and being leveraged by our VDI desktops for home folders, user profiles, things of that nature. We can also see this Oracle backup share here which is exposed to our rack host via NFS. So RMAN is actually leveraging this to provide native database backups. >> Got it. So Oracle VMs, backup using files, or for any other file share requirements with AFS. Do we have the cluster also showing, I know, so I saw some Kubernetes as well on it. Let's talk about what we're thinking of doing there. >> Yep, let's do it. So if we think about cloud, cloud's obviously a big buzz word, so is containers in Kubernetes. So with ACS 1.0 what we did is we introduced native support for Docker integration. >> And pause there. And we screwed up. (laughing) So just like the market took a left turn on Kubernetes, obviously we realized that, and now we're working on ACS 2.0 which is what we're going to talk about, right? >> Exactly. So with ACS 2.0, we've introduced native Kubernetes support. Now when I think about Kubernetes, there's really two core areas that come to mind. The first one is around native integration. So with that, we have our Kubernetes volume integration, we're obviously doing a lot of work on the networking front, and we'll continue to push there from an integration point of view. Now the other piece is around the actual deployment of Kubernetes. When we think about a lot of Nutanix administrators or IT admins, they may have never deployed Kubernetes before, so this could be a very daunting task. And true to the Nutanix nature, we not only want to make our platform simple and intuitive, we also want to do this for any ecosystem products. So with ACS 2.0, we've simplified the full Kubernetes deployment and switching over to our ACS two interface, we can see this create cluster button. Now this actually pops up a full wizard. This wizard will actually walk you through the full deployment process, gather the necessary inputs for you, and in a matter of a few clicks and a few minutes, we have a full Kubernetes deployment fully provisioned, the masters, the workers, all the networking fully done for you, very simple and intuitive. Now if we hop back over to Prism, we can see we have this ACS2 Kubernetes category. Clicking on that, we can see we have eight instances of virtual machines. And here are Kubernetes virtual machines which have actually been deployed as part of this ACS2 installer. Now one of the nice things is it makes the IT administrator's job very simple and easy to do. The deployment straightforward monitoring and management very straightforward and simple. Now for the developer, the application architect, or engineers, they interface and interact with Kubernetes just like they would traditionally on any platform. >> Got it. So the goal of ACS is to ensure that the developer ecosystem still uses whatever tools that they are you know preferring while at that same time allowing this consolidation of containers along with VMs all on that same, single runtime, right? So that's ACS. And then if you think about where the OS is going, there's still some open space at the end. And open space has always been look if you just look at a public cloud, you look at blocks, files, containers, the most obvious sort of storage function that's left is objects. And that's the last horizon for us in completing the storage stack. And we're going to show you for the first time a preview of an upcoming product called the Acropolis Object Storage Services Stack. So let's talk a little bit about it and then maybe show the demo. >> Yeah, so just like we provided file services with AFS, block services with ABS, with OSS or Object Storage Services, we provide native object storage, compatibility and capability within the Nutanix platform. Now this provides a very simply common S3 API. So any integrations you've done with S3 especially Kubernetes, you can actually leverage that out of the box when you've deployed this. Now if we hop back over to Prism, I'll go here to my object stores menu. And here we can see we have two existing object storage instances which are running. So you can deploy however many of these as you wanted to. Now just like the Kubernetes deployment, deploying a new object instance is very simple and easy to do. So here I'll actually name this instance Thor's Hammer. >> You do know he loses it, right? He hasn't seen the movies yet. >> Yeah, I don't want any spoilers yet. So once we specified the name, we can choose our capacity. So here we'll just specify a large instance or type. Obviously this could be any amount or storage. So if you have a 200 node Nutanix cluster with petabytes worth of data, you could do that as well. Once we've selected that, we'll select our expected performance. And this is going to be the number of concurrent gets and puts. So essentially how many operations per second we want this instance to be able to facilitate. Once we've done that, the platform will actually automatically determine how many virtual machines it needs to deploy as well as the resources and specs for those. And once we've done that, we'll go ahead and click save. Now here we can see it's actually going through doing the deployment of the virtual machines, applying any necessary configuration, and in the matter of a few clicks and a few seconds, we actually have this Thor's Hammer object storage instance which is up and running. Now if we hop over to one of our existing object storage instances, we can see this has three buckets. So one for Kafka-queue, I'm actually using this for my Kafka cluster where I have right around 62 million objects all storing ProtoBus. The second one there is Spark. So I actually have a Spark cluster running on our Kubernetes deployed instance via ACS 2.0. Now this is doing analytics on top of this data using S3 as a storage backend. Now for these objects, we support native versioning, native object encryption as well as worm compliancy. So if you want to have expiry periods, retention intervals, that sort of thing, we can do all that. >> Got it. So essentially what we've just shown you is with upcoming objects as well that the same OS can now support VMs, files, objects, containers, all on the same one click operational fabric. And so that's in some way the real power of Nutanix is to still keep that consistency, scalability in place as we're covering each and every workload inside the enterprise. So before Steve gets off stage though, I wanted to talk to you guys a little bit about something that you know how many of you been to our Nutanix headquarters in San Jose, California? A few. I know there's like, I don't know, 4,000 or 5,000 people here. If you do come to the office, you know when you land in San Jose Airport on the way to longterm parking, you'll pass our office. It's that close. And if you come to the fourth floor, you know one of the cubes that's where I sit. In the cube beside me is Steve. Steve sits in the cube beside me. And when I first joined the company, three or four years ago, and Steve's if you go to his cube, it no longer looks like this, but it used to have a lot of this stuff. It was like big containers of this. I remember the first time. Since I started joking about it, he started reducing it. And then Steve eventually got married much to our surprise. (audience laughing) Much to his wife's surprise. And then he also had a baby as a bigger surprise. And if you come over to our office, and we welcome you, and you come to the fourth floor, find my cube or you'll find Steve's Cube, it now looks like this. Okay, so thanks a lot, my man. >> Cool, thank you. >> Thanks so much. (audience clapping) >> So single OS, any workload. And like Steve who's been with us for awhile, it's my great pleasure to invite one of our favorite customers, CSC Karen who's also been with us for three to four years. And I'll share some fond memories about how she's been with the company for awhile, how as partners we've really done a lot together. So without any further ado, let me bring up Karen. Come on up, Karen. (rock music) >> Thank you for having me. >> Yeah, thank you. So I remember, so how many of you guys were with Nutanix first .Next in Miami? I know there was a question like that asked last time. Not too many. You missed it. We wished we could go back to that. We wouldn't fit 3/4s of this crowd. But Karen was our first customer in the keynote in 2015. And we had just talked about that story at that time where you're just become a customer. Do you want to give us some recap of that? >> Sure. So when we made the decision to move to hyperconverged infrastructure and chose Nutanix as our partner, we rapidly started to deploy. And what I mean by that is Sunil and some of the Nutanix executives had come out to visit with us and talk about their product on a Tuesday. And on a Wednesday after making the decision, I picked up the phone and said you know what I've got to deploy for my VDI cluster. So four nodes showed up on Thursday. And from the time it was plugged in to moving over 300 VDIs and 50 terabytes of storage and turning it over for the business for use was less than three days. So it was really excellent testament to how simple it is to start, and deploy, and utilize the Nutanix infrastructure. Now part of that was the delight that we experienced from our customers after that deployment. So we got phone calls where people were saying this report it used to take so long that I'd got out and get a cup of coffee and come back, and read an article, and do some email, and then finally it would finish. Those reports are running in milliseconds now. It's one click. It's very, very simple, and we've delighted our customers. Now across that journey, we have gone from the simple workloads like VDIs to the much more complex workloads around Splunk and Hadoop. And what's really interesting about our Splunk deployment is we're handling over a billion events being logged everyday. And the deployment is smaller than what we had with a three tiered infrastructure. So when you hear people talk about waste and getting that out and getting to an invisible environment where you're just able to run it, that's what we were able to achieve both with everything that we're running from our public facing websites to the back office operations that we're using which include Splunk and even most recently our Cloudera and Hadoop infrastructure. What it does is it's got 30 crawlers that go out on the internet and start bringing data back. So it comes back with over two terabytes of data everyday. And then that environment, ingests that data, does work against it, and responds to the business. And that again is something that's smaller than what we had on traditional infrastructure, and it's faster and more stable. >> Got it. And it covers a lot of use cases as well. You want to speak a few words on that? >> So the use cases, we're 90%, 95% deployed on Nutanix, and we're covering all of our use cases. So whether that's a customer facing app or a back office application. And what are business is doing is it's handling large portfolios of data for fortune 500 companies and law firms. And these applications are all running with improved stability, reliability, and performance on the Nutanix infrastructure. >> And the plan going forward? >> So the plan going forward, you actually asked me that in Miami, and it's go global. So when we started in Miami and that first deployment, we had four nodes. We now have 283 nodes around the world, and we started with about 50 terabytes of data. We've now got 3.8 petabytes of data. And we're deployed across four data centers and six remote offices. And people ask me often what is the value that we achieved? So simplification. It's all just easier, and it's all less expensive. Being able to scale with the business. So our Cloudera environment ended up with one day where it spiked to 1,000 times more load, 1,000 times, and it just responded. We had rally cries around improved productivity by six times. So 600% improved productivity, and we were able to actually achieve that. The numbers you just saw on the slide that was very, very fast was we calculated a 40% reduction in total cost of ownership. We've exceeded that. And when we talk about waste, that other number on the board there is when I saved the company one hour of maintenance activity or unplanned downtime in a month which we're now able to do the majority of our maintenance activities without disrupting any of our business solutions, I'm saving $750,000 each time I save that one hour. >> Wow. All right, Karen from CSE. Thank you so much. That was great. Thank you. I mean you know some of these data points frankly as I started talking to Karen as well as some other customers are pretty amazing in terms of the genuine value beyond financial value. Kind of like the emotional sort of benefits that good products deliver to some of our customers. And I think that's one of the core things that we take back into engineering is to keep ourselves honest on either velocity or quality even hiring people and so forth. Is to actually the more we touch customers lives, the more we touch our partner's lives, the more it allows us to ensure that we can put ourselves in their shoes to kind of make sure that we're doing the right thing in terms of the product. So that was the first part, invisible infrastructure. And our goal, as we've always talked about, our true North is to make sure that this single OS can be an exact replica, a truly modern, thoughtful but original design that brings the power of public cloud this AWS or GCP like architectures into your mainstream enterprises. And so when we take that to the next level which is about expanding the scope to go beyond invisible infrastructure to invisible data centers, it starts with a few things. Obviously, it starts with virtualization and a level of intelligent management, extends to automation, and then as we'll talk about, we have to embark on encompassing the network. And that's what we'll talk about with Flow. But to start this, let me again go back to one of our core products which is the bedrock of our you know opinionated design inside this company which is Prism and Acropolis. And Prism provides, I mentioned, comes with a ton of machine-learning based intelligence built into the product in 5.6 we've done a ton of work. In fact, a lot of features are coming out now because now that PC, Prism Central that you know has been decoupled from our mainstream release strain and will continue to release on its own cadence. And the same thing when you actually flip it to AHV on its own train. Now AHV, two years ago it was all about can I use AHV for VDI? Can I use AHV for ROBO? Now I'm pretty clear about where you cannot use AHV. If you need memory overcome it, stay with VMware or something. If you need, you know Metro, stay with another technology, else it's game on, right? And if you really look at the adoption of AHV in the mainstream enterprise, the customers now speak for themselves. These are all examples of large global enterprises with multimillion dollar ELAs in play that have now been switched over. Like I'll give you a simple example here, and there's lots of these that I'm sure many of you who are in the audience that are in this camp, but when you look at the breakout sessions in the pods, you'll get a sense of this. But I'll give you one simple example. If you look at the online payment company. I'm pretty sure everybody's used this at one time or the other. They had the world's largest private cloud on open stack, 21,000 nodes. And they were actually public about it three or four years ago. And in the last year and a half, they put us through a rigorous VOC testing scale, hardening, and it's a full blown AHV only stack. And they've started cutting over. Obviously they're not there yet completely, but they're now literally in hundreds of nodes of deployment of Nutanix with AHV as their primary operating system. So it is primetime from a deployment perspective. And with that as the base, no cloud is complete without actually having self-service provisioning that truly drives one-click automation, and can you do that in this consumer grade design? And Calm was acquired, as you guys know, in 2016. We had a choice of taking Calm. It was reasonably feature complete. It supported multiple clouds. It supported ESX, it supported Brownfield, It supported AHV. I mean they'd already done the integration with Nutanix even before the acquisition. And we had a choice. The choice was go down the path of dynamic ops or some other products where you took it for revenue or for acceleration, you plopped it into the ecosystem and sold it at this power sucking alien on top of our stack, right? Or we took a step back, re-engineered the product, kept some of the core essence like the workflow engine which was good, the automation, the object model and all, but refactored it to make it look like a natural extension of our operating system. And that's what we did with Calm. And we just launched it in December, and it's been one of our most popular new products now that's flying off the shelves. If you saw the number of registrants, I got a notification of this for the breakout sessions, the number one session that has been preregistered with over 500 people, the first two sessions are around Calm. And justifiably so because it just as it lives up to its promise, and it'll take its time to kind of get to all the bells and whistles, all the capabilities that have come through with AHV or Acropolis in the past. But the feature functionality, the product market fit associated with Calm is dead on from what the feedback that we can receive. And so Calm itself is on its own rapid cadence. We had AWS and AHV in the first release. Three or four months later, we now added ESX support. We added GCP support and a whole bunch of other capabilities, and I think the essence of Calm is if you can combine Calm and along with private cloud automation but also extend it to multi-cloud automation, it really sets Nutanix on its first genuine path towards multi-cloud. But then, as I said, if you really fixate on a software defined data center message, we're not complete as a full blown AWS or GCP like IA stack until we do the last horizon of networking. And you probably heard me say this before. You heard Dheeraj and others talk about it before is our problem in networking isn't the same in storage. Because the data plane in networking works. Good L2 switches from Cisco, Arista, and so forth, but the real problem networking is in the control plane. When something goes wrong at a VM level in Nutanix, you're able to identify whether it's a storage problem or a compute problem, but we don't know whether it's a VLAN that's mis-configured, or there've been some packets dropped at the top of the rack. Well that all ends now with Flow. And with Flow, essentially what we've now done is take the work that we've been working on to create built-in visibility, put some network automation so that you can actually provision VLANs when you provision VMs. And then augment it with micro segmentation policies all built in this easy to use, consume fashion. But we didn't stop there because we've been talking about Flow, at least the capabilities, over the last year. We spent significant resources building it. But we realized that we needed an additional thing to augment its value because the world of applications especially discovering application topologies is a heady problem. And if we didn't address that, we wouldn't be fulfilling on this ambition of providing one-click network segmentation. And so that's where Netsil comes in. Netsil might seem on the surface yet another next generation application performance management tool. But the innovations that came from Netsil started off at the research project at the University of Pennsylvania. And in fact, most of the team right now that's at Nutanix is from the U Penn research group. And they took a really original, fresh look at how do you sit in a network in a scale out fashion but still reverse engineer the packets, the flow through you, and then recreate this application topology. And recreate this not just on Nutanix, but do it seamlessly across multiple clouds. And to talk about the power of Flow augmented with Netsil, let's bring Rajiv back on stage, Rajiv. >> How you doing? >> Okay so we're going to start with some Netsil stuff, right? >> Yeah, let's talk about Netsil and some of the amazing capabilities this acquisition's bringing to Nutanix. First of all as you mentioned, Netsil's completely non invasive. So it installs on the network, it does all its magic from there. There're no host agents, non of the complexity and compatibility issues that entails. It's also monitoring the network at layer seven. So it's actually doing a deep packet inspection on all your application data, and can give you insights into services and APIs which is very important for modern applications and the way they behave. To do all this of course performance is key. So Netsil's built around a completely distributed architecture scaled to really large workloads. Very exciting technology. We're going to use it in many different ways at Nutanix. And to give you a flavor of that, let me show you how we're thinking of integrating Flow and Nestil together, so micro segmentation and Netsil. So to do that, we install Netsil in one of our Google accounts. And that's what's up here now. It went out there. It discovered all the VMs we're running on that account. It created a map essentially of all their interactions, and you can see it's like a Google Maps view. I can zoom into it. I can look at various things running. I can see lots of HTTP servers over here, some databases. >> Sunil: And it also has stats, right? You can go, it actually-- >> It does. We can take a look at that for a second. There are some stats you can look at right away here. Things like transactions per second and latencies and so on. But if I wanted to micro segment this application, it's not really clear how to do so. There's no real pattern over here. Taking the Google Maps analogy a little further, this kind of looks like the backstreets of Cairo or something. So let's do this step by step. Let me first filter down to one application. Right now I'm looking at about three or four different applications. And Netsil integrates with the metadata. So this is that the clouds provide. So I can search all the tags that I have. So by doing that, I can zoom in on just the financial application. And when I do this, the view gets a little bit simpler, but there's still no real pattern. It's not clear how to micro segment this, right? And this is where the power of Netsil comes in. This is a fairly naive view. This is what tool operating at layer four just looking at ports and TCP traffic would give you. But by doing deep packet inspection, Netsil can get into the services layer. So instead of grouping these interactions by hostname, let's group them by service. So you go service tier. And now you can see this is a much simpler picture. Now I have some patterns. I have a couple of load balancers, an HA proxy and an Nginx. I have a web application front end. I have some application servers running authentication services, search services, et cetera, a database, and a database replica. I could go ahead and micro segment at this point. It's quite possible to do it at this point. But this is almost too granular a view. We actually don't usually want to micro segment at individual service level. You think more in terms of application tiers, the tiers that different services belong to. So let me go ahead and group this differently. Let me group this by app tier. And when I do that, a really simple picture emerges. I have a load balancing tier talking to a web application front end tier, an API tier, and a database tier. Four tiers in my application. And this is something I can work with. This is something that I can micro segment fairly easily. So let's switch over to-- >> Before we dot that though, do you guys see how he gave himself the pseudonym called Dom Toretto? >> Focus Sunil, focus. >> Yeah, for those guys, you know that's not the Avengers theme, man, that's the Fast and Furious theme. >> Rajiv: I think a year ahead. This is next years theme. >> Got it, okay. So before we cut over from Netsil to Flow, do we want to talk a few words about the power of Flow, and what's available in 5.6? >> Sure so Flow's been around since the 5.6 release. Actually some of the functionality came in before that. So it's got invisibility into the network. It helps you debug problems with WLANs and so on. We had a lot of orchestration with other third party vendors with load balancers, with switches to make publishing much simpler. And then of course with our most recent release, we GA'ed our micro segmentation capabilities. And that of course is the most important feature we have in Flow right now. And if you look at how Flow policy is set up, it looks very similar to what we just saw with Netsil. So we have load blancer talking to a web app, API, database. It's almost identical to what we saw just a moment ago. So while this policy was created manually, it is something that we can automate. And it is something that we will do in future releases. Right now, it's of course not been integrated at that level yet. So this was created manually. So one thing you'll notice over here is that the database tier doesn't get any direct traffic from the internet. All internet traffic goes to the load balancer, only specific services then talk to the database. So this policy right now is in monitoring mode. It's not actually being enforced. So let's see what happens if I try to attack the database, I start a hack against the database. And I have my trusty brute force password script over here. It's trying the most common passwords against the database. And if I happen to choose a dictionary word or left the default passwords on, eventually it will log into the database. And when I go back over here in Flow what happens is it actually detects there's now an ongoing a flow, a flow that's outside of policy that's shown up. And it shows this in yellow. So right alongside the policy, I can visualize all the noncompliant flows. This makes it really easy for me now to make decisions, does this flow should it be part of the policy, should it not? In this particular case, obviously it should not be part of the policy. So let me just switch from monitoring mode to enforcement mode. I'll apply the policy, give it a second to propagate. The flow goes away. And if I go back to my script, you can see now the socket's timing out. I can no longer connect to the database. >> Sunil: Got it. So that's like one click segmentation and play right now? >> Absolutely. It's really, really simple. You can compare it to other products in the space. You can't get simpler than this. >> Got it. Why don't we got back and talk a little bit more about, so that's Flow. It's shipping now in 5.6 obviously. It'll come integrated with Netsil functionality as well as a variety of other enhancements in that next few releases. But Netsil does more than just simple topology discovery, right? >> Absolutely. So Netsil's actually gathering a lot of metrics from your network, from your host, all this goes through a data pipeline. It gets processed over there and then gets captured in a time series database. And then we can slice and dice that in various different ways. It can be used for all kinds of insights. So let's see how our application's behaving. So let me say I want to go into the API layer over here. And I instantly get a variety of metrics on how the application's behaving. I get the most requested endpoints. I get the average latency. It looks reasonably good. I get the average latency of the slowest endpoints. If I was having a performance problem, I would know exactly where to go focus on. Right now, things look very good, so we won't focus on that. But scrolling back up, I notice that we have a fairly high error rate happening. We have like 11.35% of our HTTP requests are generating errors, and that deserves some attention. And if I scroll down again, and I see the top five status codes I'm getting, almost 10% of my requests are generating 500 errors, HTTP 500 errors which are internal server errors. So there's something going on that's wrong with this application. So let's dig a little bit deeper into that. Let me go into my analytics workbench over here. And what I've plotted over here is how my HTTP requests are behaving over time. Let me filter down to just the 500 ones. That will make it easier. And I want the 500s. And I'll also group this by the service tier so that I can see which services are causing the problem. And the better view for this would be a bar graph. Yes, so once I do this, you can see that all the errors, all the 500 errors that we're seeing have been caused by the authentication service. So something's obviously wrong with that part of my application. I can go look at whether Active Directory is misbehaving and so on. So very quickly from a broad problem that I was getting a high HTTP error rate. In fact, usually you will discover there's this customer complaining about a lot of errors happening in your application. You can quickly narrow down to exactly what the cause was. >> Got it. This is what we mean by hyperconvergence of the network which is if you can truly isolate network related problems and associate them with the rest of the hyperconvergence infrastructure, then we've essentially started making real progress towards the next level of hyperconvergence. Anyway, thanks a lot, man. Great job. >> Thanks, man. (audience clapping) >> So to talk about this evolution from invisible infrastructure to invisible data centers is another customer of ours that has embarked on this journey. And you know it's not just using Nutanix but a variety of other tools to actually fulfill sort of like the ambition of a full blown cloud stack within a financial organization. And to talk more about that, let me call Vijay onstage. Come on up, Vijay. (rock music) >> Hey. >> Thank you, sir. So Vijay looks way better in real life than in a picture by the way. >> Except a little bit of gray. >> Unlike me. So tell me a little bit about this cloud initiative. >> Yeah. So we've won the best cloud initiative twice now hosted by Incisive media a large magazine. It's basically they host a bunch of you know various buy side, sell side, and you can submit projects in various categories. So we've won the best cloud twice now, 2015 and 2017. The 2017 award is when you know as part of our private cloud journey we were laying the foundation for our private cloud which is 100% based on hyperconverged infrastructure. So that was that award. And then 2017, we've kind of built on that foundation and built more developer-centric next gen app services like PAS, CAS, SDN, SDS, CICD, et cetera. So we've built a lot of those services on, and the second award was really related to that. >> Got it. And a lot of this was obviously based on an infrastructure strategy with some guiding principles that you guys had about three or four years ago if I remember. >> Yeah, this is a great slide. I use it very often. At the core of our infrastructure strategy is how do we run IT as a business? I talk about this with my teams, they were very familiar with this. That's the mindset that I instill within the teams. The mission, the challenge is the same which is how do we scale infrastructure while reducing total cost of ownership, improving time to market, improving client experience and while we're doing that not lose sight of reliability, stability, and security? That's the mission. Those are some of our guiding principles. Whenever we take on some large technology investments, we take 'em through those lenses. Obviously Nutanix went through those lenses when we invested in you guys many, many years ago. And you guys checked all the boxes. And you know initiatives change year on year, the mission remains the same. And more recently, the last few years, we've been focused on converged platforms, converged teams. We've actually reorganized our teams and aligned them closer to the platforms moving closer to an SRE like concept. >> And then you've built out a full stack now across computer storage, networking, all the way with various use cases in play? >> Yeah, and we're aggressively moving towards PAS, CAS as our method of either developing brand new cloud native applications or even containerizing existing applications. So the stack you know obviously built on Nutanix, SDS for software fine storage, compute and networking we've got SDN turned on. We've got, again, PAS and CAS built on this platform. And then finally, we've hooked our CICD tooling onto this. And again, the big picture was always frictionless infrastructure which we're very close to now. You know 100% of our code deployments into this environment are automated. >> Got it. And so what's the net, net in terms of obviously the business takeaway here? >> Yeah so at Northern we don't do tech for tech. It has to be some business benefits, client benefits. There has to be some outcomes that we measure ourselves against, and these are some great metrics or great ways to look at if we're getting the outcomes from the investments we're making. So for example, infrastructure scale while reducing total cost of ownership. We're very focused on total cost of ownership. We, for example, there was a build team that was very focus on building servers, deploying applications. That team's gone down from I think 40, 45 people to about 15 people as one example, one metric. Another metric for reducing TCO is we've been able to absorb additional capacity without increasing operating expenses. So you're actually building capacity in scale within your operating model. So that's another example. Another example, right here you see on the screen. Faster time to market. We've got various types of applications at any given point that we're deploying. There's a next gen cloud native which go directly on PAS. But then a majority of the applications still need the traditional IS components. The time to market to deploy a complex multi environment, multi data center application, we've taken that down by 60%. So we can deliver server same day, but we can deliver entire environments, you know add it to backup, add it to DNS, and fully compliant within a couple of weeks which is you know something we measure very closely. >> Great job, man. I mean that's a compelling I think results. And in the journey obviously you got promoted a few times. >> Yep. >> All right, congratulations again. >> Thank you. >> Thanks Vijay. >> Hey Vijay, come back here. Actually we forgot our joke. So razzled by his data points there. So you're supposed to wear some shoes, right? >> I know my inner glitch. I was going to wear those sneakers, but I forgot them at the office maybe for the right reasons. But the story behind those florescent sneakers, I see they're focused on my shoes. But I picked those up two years ago at a Next event, and not my style. I took 'em to my office. They've been sitting in my office for the last couple years. >> Who's received shoes like these by the way? I'm sure you guys have received shoes like these. There's some real fans there. >> So again, I'm sure many of you liked them. I had 'em in my office. I've offered it to so many of my engineers. Are you size 11? Do you want these? And they're unclaimed? >> So that's the only feature of Nutanix that you-- >> That's the only thing that hasn't worked, other than that things are going extremely well. >> Good job, man. Thanks a lot. >> Thanks. >> Thanks Vijay. So as we get to the final phase which is obviously as we embark on this multi-cloud journey and the complexity that comes with it which Dheeraj hinted towards in his session. You know we have to take a cautious, thoughtful approach here because we don't want to over set expectations because this will take us five, 10 years to really do a good job like we've done in the first act. And the good news is that the market is also really, really early here. It's just a fact. And so we've taken a tiered approach to it as we'll start the discussion with multi-cloud operations, and we've talked about the stack in the prior session which is about look across new clouds. So it's no longer Nutanix, Dell, Lenova, HP, Cisco as the new quote, unquote platforms. It's Nutanix, Xi, GCP, AWS, Azure as the new platforms. That's how we're designing the fabric going forward. On top of that, you obviously have the hybrid OS both on the data plane side and control plane side. Then what you're seeing with the advent of Calm doing a marketplace and automation as well as Beam doing governance and compliance is the fact that you'll see more and more such capabilities of multi-cloud operations burnt into the platform. And example of that is Calm with the new 5.7 release that they had. Launch supports multiple clouds both inside and outside, but the fundamental premise of Calm in the multi-cloud use case is to enable you to choose the right cloud for the right workload. That's the automation part. On the governance part, and this we kind of went through in the last half an hour with Dheeraj and Vijay on stage is something that's even more, if I can call it, you know first order because you get the provisioning and operations second. The first order is to say look whatever my developers have consumed off public cloud, I just need to first get our arm around to make sure that you know what am I spending, am I secure, and then when I get comfortable, then I am able to actually expand on it. And that's the power of Beam. And both Beam and Calm will be the yin and yang for us in our multi-cloud portfolio. And we'll have new products to complement that down the road, right? But along the way, that's the whole private cloud, public cloud. They're the two ends of the barbell, and over time, and we've been working on Xi for awhile, is this conviction that we've built talking to many customers that there needs to be another type of cloud. And this type of a cloud has to feel like a public cloud. It has to be architected like a public cloud, be consumed like a public cloud, but it needs to be an extension of my data center. It should not require any changes to my tooling. It should not require and changes to my operational infrastructure, and it should not require lift and shift, and that's a super hard problem. And this problem is something that a chunk of our R and D team has been burning the midnight wick on for the last year and a half. Because look this is not about taking our current OS which does a good job of scaling and plopping it into a Equinix or a third party data center and calling it a hybrid cloud. This is about rebuilding things in the OS so that we can deliver a true hybrid cloud, but at the same time, give those functionality back on premises so that even if you don't have a hybrid cloud, if you just have your own data centers, you'll still need new services like DR. And if you think about it, what are we doing? We're building a full blown multi-tenant virtual network designed in a modern way. Think about this SDN 2.0 because we have 10 years worth of looking backwards on how GCP has done it, or how Amazon has done it, and now sort of embodying some of that so that we can actually give it as part of this cloud, but do it in a way that's a seamless extension of the data center, and then at the same time, provide new services that have never been delivered before. Everyone obviously does failover and failback in DR it just takes months to do it. Our goal is to do it in hours or minutes. But even things such as test. Imagine doing a DR test on demand for you business needs in the middle of the day. And that's the real bar that we've set for Xi that we are working towards in early access later this summer with GA later in the year. And to talk more about this, let me invite some of our core architects working on it, Melina and Rajiv. (rock music) Good to see you guys. >> You're messing up the names again. >> Oh Rajiv, Vinny, same thing, man. >> You need to back up your memory from Xi. >> Yeah, we should. Okay, so what are we going to talk about, Vinny? >> Yeah, exactly. So today we're going to talk about how Xi is pushing the envelope and beyond the state of the art as you were saying in the industry. As part of that, there's a whole bunch of things that we have done starting with taking a private cloud, seamlessly extending it to the public cloud, and then creating a hybrid cloud experience with one-click delight. We're going to show that. We've done a whole bunch of engineering work on making sure the operations and the tooling is identical on both sides. When you graduate from a private cloud to a hybrid cloud environment, you don't want the environments to be different. So we've copied the environment for you with zero manual intervention. And finally, building on top of that, we are delivering DR as a service with unprecedented simplicity with one-click failover, one-click failback. We're going to show you one click test today. So Melina, why don't we start with showing how you go from a private cloud, seamlessly extend it to consume Xi. >> Sounds good, thanks Vinny. Right now, you're looking at my Prism interface for my on premises cluster. In one-click, I'm going to be able to extend that to my Xi cloud services account. I'm doing this using my my Nutanix credential and a password manager. >> Vinny: So here as you notice all the Nutanix customers we have today, we have created an account for them in Xi by default. So you don't have to log in somewhere and create an account. It's there by default. >> Melina: And just like that we've gone ahead and extended my data center. But let's go take a look at the Xi side and log in again with my my Nutanix credentials. We'll see what we have over here. We're going to be able to see two availability zones, one for on premises and one for Xi right here. >> Vinny: Yeah as you see, using a log in account that you already knew mynutanix.com and 30 seconds in, you can see that you have a hybrid cloud view already. You have a private cloud availability zone that's your own Prism central data center view, and then a Xi availability zone. >> Sunil: Got it. >> Melina: Exactly. But of course we want to extend my network connection from on premises to my Xi networks as well. So let's take a look at our options there. We have two ways of doing this. Both are one-click experience. With direct connect, you can create a dedicated network connection between both environments, or VPN you can use a public internet and a VPN service. Let's go ahead and enable VPN in this environment. Here we have two options for how we want to enable our VPN. We can bring our own VPN and connect it, or we will deploy a VPN for you on premises. We'll do the option where we deploy the VPN in one-click. >> And this is another small sign or feature that we're building net new as part of Xi, but will be burned into our core Acropolis OS so that we can also be delivering this as a stand alone product for on premises deployment as well, right? So that's one of the other things to note as you guys look at the Xi functionality. The goal is to keep the OS capabilities the same on both sides. So even if I'm building a quote, unquote multi data center cloud, but it's just a private cloud, you'll still get all the benefits of Xi but in house. >> Exactly. And on this second step of the wizard, there's a few inputs around how you want the gateway configured, your VLAN information and routing and protocol configuration details. Let's go ahead and save it. >> Vinny: So right now, you know what's happening is we're taking the private network that our customers have on premises and extending it to a multi-tenant public cloud such that our customers can use their IP addresses, the subnets, and bring their own IP. And that is another step towards making sure the operation and tooling is kept consistent on both sides. >> Melina: Exactly. And just while you guys were talking, the VPN was successfully created on premises. And we can see the details right here. You can track details like the status of the connection, the gateway, as well as bandwidth information right in the same UI. >> Vinny: And networking is just tip of the iceberg of what we've had to work on to make sure that you get a consistent experience on both sides. So Melina, why don't we show some of the other things we've done? >> Melina: Sure, to talk about how we preserve entities from my on-premises to Xi, it's better to use my production environment. And first thing you might notice is the log in screen's a little bit different. But that's because I'm logging in using my ADFS credentials. The first thing we preserved was our users. In production, I'm running AD obviously on-prem. And now we can log in here with the same set of credentials. Let me just refresh this. >> And this is the Active Directory credential that our customers would have. They use it on-premises. And we allow the setting to be set on the Xi cloud services as well, so it's the same set of users that can access both sides. >> Got it. There's always going to be some networking problem onstage. It's meant to happen. >> There you go. >> Just launching it again here. I think it maybe timed out. This is a good sign that we're running on time with this presentation. >> Yeah, yeah, we're running ahead of time. >> Move the demos quicker, then we'll time out. So essentially when you log into Xi, you'll be able to see what are the environment capabilities that we have copied to the Xi environment. So for example, you just saw that the same user is being used to log in. But after the use logs in, you'll be able to see their images, for example, copied to the Xi side. You'll be able to see their policies and categories. You know when you define these policies on premises, you spend a lot of effort and create them. And now when you're extending to the public cloud, you don't want to do it again, right? So we've done a whole lot of syncing mechanisms making sure that the two sides are consistent. >> Got it. And on top of these policies, the next step is to also show capabilities to actually do failover and failback, but also do integrated testing as part of this compatibility. >> So one is you know just the basic job of making the environments consistent on two sides, but then it's also now talking about the data part, and that's what DR is about. So if you have a workload running on premises, we can take the data and replicate it using your policies that we've already synced. Once the data is available on the Xi side, at that point, you have to define a run book. And the run book essentially it's a recovery plan. And that says okay I already have the backups of my VMs in case of disaster. I can take my recovery plan and hit you know either failover or maybe a test. And then my application comes up. First of all, you'll talk about the boot order for your VMs to come up. You'll talk about networking mapping. Like when I'm running on-prem, you're using a particular subnet. You have an option of using the same subnet on the Xi side. >> Melina: There you go. >> What happened? >> Sunil: It's finally working.? >> Melina: Yeah. >> Vinny, you can stop talking. (audience clapping) By the way, this is logging into a live Xi data center. We have two regions West Coat, two data centers East Coast, two data centers. So everything that you're seeing is essentially coming off the mainstream Xi profile. >> Vinny: Melina, why don't we show the recovery plan. That's the most interesting piece here. >> Sure. The recovery plan is set up to help you specify how you want to recover your applications in the event of a failover or a test failover. And it specifies all sorts of details like the boot sequence for the VMs as well as network mappings. Some of the network mappings are things like the production network I have running on premises and how it maps to my production network on Xi or the test network to the test network. What's really cool here though is we're actually automatically creating your subnets on Xi from your on premises subnets. All that's part of the recovery plan. While we're on the screen, take a note of the .100 IP address. That's a floating IP address that I have set up to ensure that I'm going to be able to access my three tier web app that I have protected with this plan after a failover. So I'll be able to access it from the public internet really easily from my phone or check that it's all running. >> Right, so given how we make the environment consistent on both sides, now we're able to create a very simple DR experience including failover in one-click, failback. But we're going to show you test now. So Melina, let's talk about test because that's one of the most common operations you would do. Like some of our customers do it every month. But usually it's very hard. So let's see how the experience looks like in what we built. >> Sure. Test and failover are both one-click experiences as you know and come to expect from Nutanix. You can see it's failing over from my primary location to my recovery location. Now what we're doing right now is we're running a series of validation checks because we want to make sure that you have your network configured properly, and there's other configuration details in place for the test to be successful. Looks like the failover was initiated successfully. Now while that failover's happening though, let's make sure that I'm going to be able to access my three tier web app once it fails over. We'll do that by looking at my network policies that I've configured on my test network. Because I want to access the application from the public internet but only port 80. And if we look here under our policies, you can see I have port 80 open to permit. So that's good. And if I needed to create a new one, I could in one click. But it looks like we're good to go. Let's go back and check the status of my recovery plan. We click in, and what's really cool here is you can actually see the individual tasks as they're being completed from that initial validation test to individual VMs being powered on as part of the recovery plan. >> And to give you guys an idea behind the scenes, the entire recovery plan is actually a set of workflows that are built on Calm's automation engine. So this is an example of where we're taking some of power of workflow and automation that Clam has come to be really strong at and burning that into how we actually operationalize many of these workflows for Xi. >> And so great, while you were explaining that, my three tier web app has restarted here on Xi right in front of you. And you can see here there's a floating IP that I mentioned early that .100 IP address. But let's go ahead and launch the console and make sure the application started up correctly. >> Vinny: Yeah, so that .100 IP address is a floating IP that's a publicly visible IP. So it's listed here, 206.80.146.100. And that's essentially anybody in the audience here can go use your laptop or your cell phone and hit that and start to work. >> Yeah so by the way, just to give you guys an idea while you guys maybe use the IP to kind of hit it, is a real set of VMs that we've just failed over from Nutanix's corporate data center into our West region. >> And this is running live on the Xi cloud. >> Yeah, you guys should all go and vote. I'm a little biased towards Xi, so vote for Xi. But all of them are really good features. >> Scroll up a little bit. Let's see where Xi is. >> Oh Xi's here. I'll scroll down a little bit, but keep the... >> Vinny: Yes. >> Sunil: You guys written a block or something? >> Melina: Oh good, it looks like Xi's winning. >> Sunil: Okay, great job, Melina. Thank you so much. >> Thank you, Melina. >> Melina: Thanks. >> Thank you, great job. Cool and calm under pressure. That's good. So that was Xi. What's something that you know we've been doing around you know in addition to taking say our own extended enterprise public cloud with Xi. You know we do recognize that there are a ton of workloads that are going to be residing on AWS, GCP, Azure. And to sort of really assist in the try and call it transformation of enterprises to choose the right cloud for the right workload. If you guys remember, we actually invested in a tool over last year which became actually quite like one of those products that took off based on you know groundswell movement. Most of you guys started using it. It's essentially extract for VMs. And it was this product that's obviously free. It's a tool. But it enables customers to really save tons of time to actually migrate from legacy environments to Nutanix. So we took that same framework, obviously re-platformed it for the multi-cloud world to kind of solve the problem of migrating from AWS or GCP to Nutanix or vice versa. >> Right, so you know, Sunil as you said, moving from a private cloud to the public cloud is a lift and shift, and it's a hard you know operation. But moving back is not only expensive, it's a very hard problem. None of the cloud vendors provide change block tracking capability. And what that means is when you have to move back from the cloud, you have an extended period of downtime because there's now way of figuring out what's changing while you're moving. So you have to keep it down. So what we've done with our app mobility product is we have made sure that, one, it's extremely simple to move back. Two, that the downtime that you'll have is as small as possible. So let me show you what we've done. >> Got it. >> So here is our app mobility capability. As you can see, on the left hand side we have a source environment and target environment. So I'm calling my AWS environment Asgard. And I can add more environments. It's very simple. I can select AWS and then put in my credentials for AWS. It essentially goes and discovers all the VMs that are running and all the regions that they're running. Target environment, this is my Nutanix environment. I call it Earth. And I can add target environment similarly, IP address and credentials, and we do the rest. Right, okay. Now migration plans. I have Bifrost one as my migration plan, and this is how migration works. First you create a plan and then say start seeding. And what it does is takes a snapshot of what's running in the cloud and starts migrating it to on-prem. Once it is an on-prem and the difference between the two sides is minimal, it says I'm ready to cutover. At that time, you move it. But let me show you how you'd create a new migration plan. So let me name it, Bifrost 2. Okay so what I have to do is select a region, so US West 1, and target Earth as my cluster. This is my storage container there. And very quickly you can see these are the VMs that are running in US West 1 in AWS. I can select SQL server one and two, go to next. Right now it's looking at the target Nutanix environment and seeing it had enough space or not. Once that's good, it gives me an option. And this is the step where it enables the Nutanix service of change block tracking overlaid on top of the cloud. There are two options one is automatic where you'll give us the credentials for your VMs, and we'll inject our capability there. Or manually you could do. You could copy the command either in a windows VM or Linux VM and run it once on the VM. And change block tracking since then in enabled. Everything is seamless after that. Hit next. >> And while Vinny's setting it up, he said a few things there. I don't know if you guys caught it. One of the hardest problems in enabling seamless migration from public cloud to on-prem which makes it harder than the other way around is the fact that public cloud doesn't have things like change block tracking. You can't get delta copies. So one of the core innovations being built in this app mobility product is to provide that overlay capability across multiple clouds. >> Yeah, and the last step here was to select the target network where the VMs will come up on the Nutanix environment, and this is a summary of the migration plan. You can start it or just save it. I'm saving it because it takes time to do the seeding. I have the other plan which I'll actually show the cutover with. Okay so now this is Bifrost 1. It's ready to cutover. We started it four hours ago. And here you can see there's a SQL server 003. Okay, now I would like to show the AWS environment. As you can see, SQL server 003. This VM is actually running in AWS right now. And if you go to the Prism environment, and if my login works, right? So we can go into the virtual machine view, tables, and you see the VM is not there. Okay, so we go back to this, and we can hit cutover. So this is essentially telling our system, okay now it the time. Quiesce the VM running in AWS, take the last bit of changes that you have to the database, ship it to on-prem, and in on-prem now start you know configure the target VM and start bringing it up. So let's go and look at AWS and refresh that screen. And you should see, okay so the SQL server is now stopping. So that means it has quiesced and stopping the VM there. If you go back and look at the migration plan that we had, it says it's completed. So it has actually migrated all the data to the on-prem side. Go here on-prem, you see the production SQL server is running already. I can click launch console, and let's see. The Windows VM is already booting up. >> So essentially what Vinny just showed was a live cutover of an AWS VM to Nutanix on-premises. >> Yeah, and what we have done. (audience clapping) So essentially, this is about making two things possible, making it simple to migrate from cloud to on-prem, and making it painless so that the downtime you have is very minimal. >> Got it, great job, Vinny. I won't forget your name again. So last step. So to really talk about this, one of our favorite partners and customers has been in the cloud environment for a long time. And you know Jason who's the CTO of Cyxtera. And he'll introduce who Cyxtera is. Most of you guys are probably either using their assets or not without knowing their you know the new name. But is someone that was in the cloud before it was called cloud as one of the original founders and technologists behind Terremark, and then later as one of the chief architects of VMware's cloud. And then they started this new company about a year or so ago which I'll let Jason talk about. This journey that he's going to talk about is how a partner, slash customer is working with us to deliver net new transformations around the traditional industry of colo. Okay, to talk more about it, Jason, why don't you come up on stage, man? (rock music) Thank you, sir. All right so Cyxtera obviously a lot of people don't know the name. Maybe just give a 10 second summary of why you're so big already. >> Sure, so Cyxtera was formed, as you said, about a year ago through the acquisition of the CenturyLink data centers. >> Sunil: Which includes Savvis and a whole bunch of other assets. >> Yeah, there's a long history of those data centers, but we have all of them now as well as the software companies owned by Medina capital. So we're like the world's biggest startup now. So we have over 50 data centers around the world, about 3,500 customers, and a portfolio of security and analytics software. >> Sunil: Got it, and so you have this strategy of what we're calling revolutionizing colo deliver a cloud based-- >> Yeah so, colo hasn't really changed a lot in the last 20 years. And to be fair, a lot of what happens in data centers has to have a person physically go and do it. But there are some things that we can simplify and automate. So we want to make things more software driven, so that's what we're doing with the Cyxtera extensible data center or CXD. And to do that, we're deploying software defined networks in our facilities and developing automations so customers can go and provision data center services and the network connectivity through a portal or through REST APIs. >> Got it, and what's different now? I know there's a whole bunch of benefits with the integrated platform that one would not get in the traditional kind of on demand data center environment. >> Sure. So one of the first services we're launching on CXD is compute on demand, and it's powered by Nutanix. And we had to pick an HCI partner to launch with. And we looked at players in the space. And as you mentioned, there's actually a lot of them, more than I thought. And we had a lot of conversations, did a lot of testing in the lab, and Nutanix really stood out as the best choice. You know Nutanix has a lot of focus on things like ease of deployment. So it's very simple for us to automate deploying compute for customers. So we can use foundation APIs to go configure the servers, and then we turn those over to the customer which they can then manage through Prism. And something important to keep in mind here is that you know this isn't a manged service. This isn't infrastructure as a service. The customer has complete control over the Nutanix platform. So we're turning that over to them. It's connected to their network. They're using their IP addresses, you know their tools and processes to operate this. So it was really important for the platform we picked to have a really good self-service story for things like you know lifecycle management. So with one-click upgrade, customers have total control over patches and upgrades. They don't have to call us to do it. You know they can drive that themselves. >> Got it. Any other final words around like what do you see of the partnership going forward? >> Well you know I think this would be a great platform for Xi, so I think we should probably talk about that. >> Yeah, yeah, we should talk about that separately. Thanks a lot, Jason. >> Thanks. >> All right, man. (audience clapping) So as we look at the full journey now between obviously from invisible infrastructure to invisible clouds, you know there is one thing though to take away beyond many updates that we've had so far. And the fact is that everything that I've talked about so far is about completing a full blown true IA stack from all the way from compute to storage, to vitualization, containers to network services, and so forth. But every public cloud, a true cloud in that sense, has a full blown layer of services that's set on top either for traditional workloads or for new workloads, whether it be machine-learning, whether it be big data, you know name it, right? And in the enterprise, if you think about it, many of these services are being provisioned or provided through a bunch of our partners. Like we have partnerships with Cloudera for big data and so forth. But then based on some customer feedback and a lot of attention from what we've seen in the industry go out, just like AWS, and GCP, and Azure, it's time for Nutanix to have an opinionated view of the past stack. It's time for us to kind of move up the stack with our own offering that obviously adds value but provides some of our core competencies in data and takes it to the next level. And it's in that sense that we're actually launching Nutanix Era to simplify one of the hardest problems in enterprise IT and short of saving you from true Oracle licensing, it solves various other Oracle problems which is about truly simplifying databases much like what RDS did on AWS, imagine enterprise RDS on demand where you can provision, lifecycle manage your database with one-click. And to talk about this powerful new functionality, let me invite Bala and John on stage to give you one final demo. (rock music) Good to see you guys. >> Yep, thank you. >> All right, so we've got lots of folks here. They're all anxious to get to the next level. So this demo, really rock it. So what are we going to talk about? We're going to start with say maybe some database provisioning? Do you want to set it up? >> We have one dream, Sunil, one single dream to pass you off, that is what Nutanix is today for IT apps, we want to recreate that magic for devops and get back those weekends and freedom to DBAs. >> Got it. Let's start with, what, provisioning? >> Bala: Yep, John. >> Yeah, we're going to get in provisioning. So provisioning databases inside the enterprise is a significant undertaking that usually involves a myriad of resources and could take days. It doesn't get any easier after that for the longterm maintence with things like upgrades and environment refreshes and so on. Bala and team have been working on this challenge for quite awhile now. So we've architected Nutanix Era to cater to these enterprise use cases and make it one-click like you said. And Bala and I are so excited to finally show this to the world. We think it's actually Nutanix's best kept secrets. >> Got it, all right man, let's take a look at it. >> So we're going to be provisioning a sales database today. It's a four-step workflow. The first part is choosing our database engine. And since it's our sales database, we want it to be highly available. So we'll do a two node rack configuration. From there, it asks us where we want to land this service. We can either land it on an existing service that's already been provisioned, or if we're starting net new or for whatever reason, we can create a new service for it. The key thing here is we're not asking anybody how to do the work, we're asking what work you want done. And the other key thing here is we've architected this concept called profiles. So you tell us how much resources you need as well as what network type you want and what software revision you want. This is actually controlled by the DBAs. So DBAs, and compute administrators, and network administrators, so they can set their standards without having a DBA. >> Sunil: Got it, okay, let's take a look. >> John: So if we go to the next piece here, it's going to personalize their database. The key thing here, again, is that we're not asking you how many data files you want or anything in that regard. So we're going to be provisioning this to Nutanix's best practices. And the key thing there is just like these past services you don't have to read dozens of pages of best practice guides, it just does what's best for the platform. >> Sunil: Got it. And so these are a multitude of provisioning steps that normally one would take I guess hours if not days to provision and Oracle RAC data. >> John: Yeah, across multiple teams too. So if you think about the lifecycle especially if you have onshore and offshore resources, I mean this might even be longer than days. >> Sunil: Got it. And then there are a few steps here, and we'll lead into potentially the Time Machine construct too? >> John: Yeah, so since this is a critical database, we want data protection. So we're going to be delivering that through a feature called Time Machines. We'll leave this at the defaults for now, but the key thing to not here is we've got SLAs that deliver both continuous data protection as well as telescoping checkpoints for historical recovery. >> Sunil: Got it. So that's provisioning. We've kicked off Oracle, what, two node database and so forth? >> John: Yep, two node database. So we've got a handful of tasks that this is going to automate. We'll check back in in a few minutes. >> Got it. Why don't we talk about the other aspects then, Bala, maybe around, one of the things that, you know and I know many of you guys have seen this, is the fact that if you look at database especially Oracle but in general even SQL and so forth is the fact that look if you really simplified it to a developer, it should be as simple as I copy my production database, and I paste it to create my own dev instance. And whenever I need it, I need to obviously do it the opposite way, right? So that was the goal that we set ahead for us to actually deliver this new past service around Era for our customers. So you want to talk a little bit more about it? >> Sure Sunil. If you look at most of the data management functionality, they're pretty much like flavors of copy paste operations on database entities. But the trouble is the seemingly simple, innocuous operations of our daily lives becomes the most dreaded, complex, long running, error prone operations in data center. So we actually planned to tame this complexity and bring consumer grade simplicity to these operations, also make these clones extremely efficient without compromising the quality of service. And the best part is, the customers can enjoy these services not only for databases running on Nutanix, but also for databases running on third party systems. >> Got it. So let's take a look at this functionality of I guess snapshoting, clone and recovery that you've now built into the product. >> Right. So now if you see the core feature of this whole product is something we call Time Machine. Time Machine lets the database administrators actually capture the database tape to the granularity of seconds and also lets them create clones, refresh them to any point in time, and also recover the databases if the databases are running on the same Nutanix platform. Let's take a look at the demo with the Time Machine. So here is our customer relationship database management database which is about 2.3 terabytes. If you see, the Time Machine has been active about four months, and SLA has been set for continuously code revision of 30 days and then slowly tapers off 30 days of daily backup and weekly backups and so on, so forth. On the right hand side, you will see different colors. The green color is pretty much your continuously code revision, what we call them. That lets you to go back to any point in time to the granularity of seconds within those 30 days. And then the discreet code revision lets you go back to any snapshot of the backup that is maintained there kind of stuff. In a way, you see this Time Machine is pretty much like your modern day car with self driving ability. All you need to do is set the goals, and the Time Machine will do whatever is needed to reach up to the goal kind of stuff. >> Sunil: So why don't we quickly do a snapshot? >> Bala: Yeah, some of these times you need to create a snapshot for backup purposes, Time Machine has manual controls. All you need to do is give it a snapshot name. And then you have the ability to actually persist this snapshot data into a third party or object store so that your durability and that global data access requirements are met kind of stuff. So we kick off a snapshot operation. Let's look at what it is doing. If you see what is the snapshot operation that this is going through, there is a step called quiescing the databases. Basically, we're using application-centric APIs, and here it's actually RMAN of Oracle. We are using the RMan of Oracle to quiesce the database and performing application consistent storage snapshots with Nutanix technology. Basically we are fusing application-centric and then Nutanix platform and quiescing it. Just for a data point, if you have to use traditional technology and create a backup for this kind of size, it takes over four to six hours, whereas on Nutanix it's going to be a matter of seconds. So it almost looks like snapshot is done. This is full sensitive backup. You can pretty much use it for database restore kind of stuff. Maybe we'll do a clone demo and see how it goes. >> John: Yeah, let's go check it out. >> Bala: So for clone, again through the simplicity of command Z command, all you need to do is pick the time of your choice maybe around three o'clock in the morning today. >> John: Yeah, let's go with 3:02. >> Bala: 3:02, okay. >> John: Yeah, why not? >> Bala: You select the time, all you need to do is click on the clone. And most of the inputs that are needed for the clone process will be defaulted intelligently by us, right? And you have to make two choices that is where do you want this clone to be created with a brand new VM database server, or do you want to place that in your existing server? So we'll go with a brand new server, and then all you need to do is just give the password for you new clone database, and then clone it kind of stuff. >> Sunil: And this is an example of personalizing the database so a developer can do that. >> Bala: Right. So here is the clone kicking in. And what this is trying to do is actually it's creating a database VM and then registering the database, restoring the snapshot, and then recoding the logs up to three o'clock in the morning like what we just saw that, and then actually giving back the database to the requester kind of stuff. >> Maybe one finally thing, John. Do you want to show us the provision database that we kicked off? >> Yeah, it looks like it just finished a few seconds ago. So you can see all the tasks that we were talking about here before from creating the virtual infrastructure, and provisioning the database infrastructure, and configuring data protection. So I can go access this database now. >> Again, just to highlight this, guys. What we just showed you is an Oracle two node instance provisioned live in a few minutes on Nutanix. And this is something that even in a public cloud when you go to RDS on AWS or anything like that, you still can't provision Oracle RAC by the way, right? But that's what you've seen now, and that's what the power of Nutanix Era is. Okay, all right? >> Thank you. >> Thanks. (audience clapping) >> And one final thing around, obviously when we're building this, it's built as a past service. It's not meant just for operational benefits. And so one of the core design principles has been around being API first. You want to show that a little bit? >> Absolutely, Sunil, this whole product is built on API fist architecture. Pretty much what we have seen today and all the functionality that we've been able to show today, everything is built on Rest APIs, and you can pretty much integrate with service now architecture and give you your devops experience for your customers. We do have a plan for full fledged self-service portal eventually, and then make it as a proper service. >> Got it, great job, Bala. >> Thank you. >> Thanks, John. Good stuff, man. >> Thanks. >> All right. (audience clapping) So with Nutanix Era being this one-click provisioning, lifecycle management powered by APIs, I think what we're going to see is the fact that a lot of the products that we've talked about so far while you know I've talked about things like Calm, Flow, AHV functionality that have all been released in 5.5, 5.6, a bunch of the other stuff are also coming shortly. So I would strongly encourage you guys to kind of space 'em, you know most of these products that we've talked about, in fact, all of the products that we've talked about are going to be in the breakout sessions. We're going to go deep into them in the demos as well as in the pods. So spend some quality time not just on the stuff that's been shipping but also stuff that's coming out. And so one thing to keep in mind to sort of takeaway is that we're doing this all obviously with freedom as the goal. But from the products side, it has to be driven by choice whether the choice is based on platforms, it's based on hypervisors, whether it's based on consumption models and eventually even though we're starting with the management plane, eventually we'll go with the data plane of how do I actually provide a multi-cloud choice as well. And so when we wrap things up, and we look at the five freedoms that Ben talked about. Don't forget the sixth freedom especially after six to seven p.m. where the whole goal as a Nutanix family and extended family make sure we mix it up. Okay, thank you so much, and we'll see you around. (audience clapping) >> PA Announcer: Ladies and gentlemen, this concludes our morning keynote session. Breakouts will begin in 15 minutes. ♪ To do what I want ♪
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PA Announcer: Off the plastic tab, would you please welcome state of Louisiana And it's my pleasure to welcome you all to And I'd like to second that warm welcome. the free spirit. the Nutanix Freedom video, enjoy. And I read the tagline from license to launch You have the freedom to go and choose and having to gain the trust with you over time, At the same time, you spent the last seven, eight years and apply intelligence to say how can we lower that you go and advise with some of the software to essentially reduce their you know they're supposed to save are still only 20%, 25% utilized. And the next thing is you can't do So you actually sized it for peak, and bring the control while retaining that agility So you want to show us something? And you know glad to be here. to see you know are there resources that you look at everyday. So billions of events, billing, metering events So what we have here is a very popular are everywhere, the cloud is everywhere actually. So when you bring your master account that you create because you don't want So we have you know consumption of the services. There's a lot of money being made So not only just get visibility at you know compute So all of you who actually have not gone the single pane view you know to mange What you see here is they're using have been active in Russia as well. to detect you know how can you rightsize So one click, you can actually just pick Yeah, and not only remove the resources the consumption for the Nutanix, you know the services And the most powerful thing is you can go to say how can you really remove things. So again, similar to save, you're saying So the idea is how can we give our people It looks like there's going to be a talk here at 10:30. Yes, so you can go and write your own security So the end in all this is, again, one of the things And to start the session, I think you know the part You barely fit in that door, man. that's grown from VDI to business critical So if we hop over here to our explore tab, in recent releases to kind of make this happen? Now to allow you to full take advantage of that, On the same environment though, we're going to show you So one of the shares that you see there is home directories. Do we have the cluster also showing, So if we think about cloud, cloud's obviously a big So just like the market took a left turn on Kubernetes, Now for the developer, the application architect, So the goal of ACS is to ensure So you can deploy however many of these He hasn't seen the movies yet. And this is going to be the number And if you come over to our office, and we welcome you, Thanks so much. And like Steve who's been with us for awhile, So I remember, so how many of you guys And the deployment is smaller than what we had And it covers a lot of use cases as well. So the use cases, we're 90%, 95% deployed on Nutanix, So the plan going forward, you actually asked And the same thing when you actually flip it to AHV And to give you a flavor of that, let me show you And now you can see this is a much simpler picture. Yeah, for those guys, you know that's not the Avengers This is next years theme. So before we cut over from Netsil to Flow, And that of course is the most important So that's like one click segmentation and play right now? You can compare it to other products in the space. in that next few releases. And if I scroll down again, and I see the top five of the network which is if you can truly isolate (audience clapping) And you know it's not just using Nutanix than in a picture by the way. So tell me a little bit about this cloud initiative. and the second award was really related to that. And a lot of this was obviously based on an infrastructure And you know initiatives change year on year, So the stack you know obviously built on Nutanix, of obviously the business takeaway here? There has to be some outcomes that we measure And in the journey obviously you got So you're supposed to wear some shoes, right? for the last couple years. I'm sure you guys have received shoes like these. So again, I'm sure many of you liked them. That's the only thing that hasn't worked, Thanks a lot. is to enable you to choose the right cloud Yeah, we should. of the art as you were saying in the industry. that to my Xi cloud services account. So you don't have to log in somewhere and create an account. But let's go take a look at the Xi side that you already knew mynutanix.com and 30 seconds in, or we will deploy a VPN for you on premises. So that's one of the other things to note the gateway configured, your VLAN information Vinny: So right now, you know what's happening is And just while you guys were talking, of the other things we've done? And first thing you might notice is And we allow the setting to be set on the Xi cloud services There's always going to be some networking problem onstage. This is a good sign that we're running So for example, you just saw that the same user is to also show capabilities to actually do failover And that says okay I already have the backups is essentially coming off the mainstream Xi profile. That's the most interesting piece here. or the test network to the test network. So let's see how the experience looks like details in place for the test to be successful. And to give you guys an idea behind the scenes, And so great, while you were explaining that, And that's essentially anybody in the audience here Yeah so by the way, just to give you guys Yeah, you guys should all go and vote. Let's see where Xi is. I'll scroll down a little bit, but keep the... Thank you so much. What's something that you know we've been doing And what that means is when you have And very quickly you can see these are the VMs So one of the core innovations being built So that means it has quiesced and stopping the VM there. So essentially what Vinny just showed and making it painless so that the downtime you have And you know Jason who's the CTO of Cyxtera. of the CenturyLink data centers. bunch of other assets. So we have over 50 data centers around the world, And to be fair, a lot of what happens in data centers in the traditional kind of on demand is that you know this isn't a manged service. of the partnership going forward? Well you know I think this would be Thanks a lot, Jason. And in the enterprise, if you think about it, We're going to start with say maybe some to pass you off, that is what Nutanix is Got it. And Bala and I are so excited to finally show this And the other key thing here is we've architected And the key thing there is just like these past services if not days to provision and Oracle RAC data. So if you think about the lifecycle And then there are a few steps here, but the key thing to not here is we've got So that's provisioning. that this is going to automate. is the fact that if you look at database And the best part is, the customers So let's take a look at this functionality On the right hand side, you will see different colors. And then you have the ability to actually persist of command Z command, all you need to do Bala: You select the time, all you need the database so a developer can do that. back the database to the requester kind of stuff. Do you want to show us the provision database So you can see all the tasks that we were talking about here What we just showed you is an Oracle two node instance (audience clapping) And so one of the core design principles and all the functionality that we've been able Good stuff, man. But from the products side, it has to be driven by choice PA Announcer: Ladies and gentlemen,
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David Moschella | Seeing Digital
>> Announcer: From the SiliconANGLE Media office in Boston, Massachusetts, it's theCube! (bright music) Now here's your host, Dave Vellante. >> Hi everybody, welcome to this special presentation in the Marlborough offices of theCube. My name is Dave Vellante, and I'm here with a friend, a colleague, a mentor of mine, David Moschella who is an author and a Fellow at Leading Edge Forum. Dave, thanks for coming in. It's great to see you. >> Hey, great to see you again. So we're going to talk about your new book, Seeing Digital: A Visual Guide to Industries, Organizations, and Careers of the 2020s. I got it here on my laptop. Got it off of Amazon, so check it out. We're going to be unpacking what's in there today. This is your third book I believe, right? Waves of Power and... >> David: Customer-Driven IT. >> Customer-Driven IT which was under the '03 timeframe coming out of the dot-com, and to me this is your most significant work, so congratulations on that. >> Well, thank you. >> Dave: I know how much work goes into it. >> You bet. >> So what was the motivation for writing this book? >> Well it's a funny thing when books are a lot of work, and during those times you wind up asking yourself why am I (laughing) doing this because they put in so much time. But for the last seven or eight years our group, the Leading Edge Forum, we've been doing a lot of work mostly for large organizations and our clients told us that the work we've been doing in consumerization, in Cloud, in disruption, in machine intelligence was really relevant to not just them but to their wider audiences of their partners, their customers, their employees. And so people are asking can we get this to a wider audience, and really that is what the book is trying to do. >> Yeah, you guys have done some great work. I know when I can get my hands on it I consume it. For those of you who don't know, Dave originally came up with the theory of disintegration to kind of explain the shift from centralized mainframe era to the sort of open distributed competition along different lines which really defined the Wintel era. So that was kind of your work really explaining industry shifts in a way that helped people and executives really understand that. And then the nice thing about this book is you're kind of open-sourcing a decade's worth of research that yourself and your colleagues have done. So talk about the central premise of the book. We're entering a new era. We're sort of exiting the Cloud, Web 2.0 era. We're still trying to figure out what to call this. But what's the central premise of the book? >> Yeah, the central premise is that the technologies of the 2020s will indeed define a new era, and the IT era industry just evolves. We had the mainframe era, the mini era, the PC and the Internet era, the mobility era, and now we're going in this era of intelligence and automation and blockchains and speech and things that are just a entire new layer of intelligence, and that that layer to us is actually more the powerful than any of the previous layers we've seen. If you think back, the first Web was founded around technologies like search and email and surfing the Web, quite simple technologies and created tremendous companies. And then the more recently we have sort of the social era for Facebook and Salesforce. And all these companies, they sort of took advantage of the Cloud. But again, the technologies are relatively simple there. Now we're really looking at a whole wave of just fundamentally powerful technology and so trying to anticipate what that's going to mean. >> So going from sort of private networks to sort of public networks to a Cloud of remote services to now this set of interrelated digital services that are highly accessible and essentially ubiquitous is what you put forth in the book, right? >> Yeah, and we put a lot of emphasis on words. Why do words change? We had an Internet that connected computers and a Web that sort of connected pages and documents and URLs. And then we started talking about Cloud of stuff out there somewhere in cyberspace. But when we look at the world that's coming and we use those words, pervasive, embedded, aware, autonomous, these aren't words that are really associated with a Cloud. And Cloud is just a metaphor, that word, and so we're quite sure that at some point a different word will emerge because we've always had a different word for every era of change and we're going into one of those eras now. >> So a lot of people have questions about we go to these conferences and everybody talks about digital disruption and digital transformation, and it's kind of frankly lightweight a lot of times. It doesn't have a lot of substance to it. But you point out in the book that CEOs are asking the question, "How do I get digital right?" They understand that something's happening, something's changing. They don't want to get disrupted, but what are some of the questions that you get from some of your clients? >> Yeah, that first question, are we getting digital right sort of leads to almost everything. Companies look at the way that a Netflix or Amazon operates, and then they look at themselves and they see the vast difference there. And they ask themselves, "How can we be more like them? "How can we be that vast, that innovative, that efficient, "that level of simple intuitive customer service?" And one of the ways we try to define it for our clients is how do they become a digital first organization where their digital systems are their face to the marketplace? And most CEOs know that their own firm doesn't operate that way. And probably the most obvious way of seeing that is so many companies now feeling the need to appoint a Chief Digital Officer because they need to give that task to someone, and CDOs are no panacea but they speak to this need that so many companies feel now of really getting it right and having a leadership team in place that they have confidence in. And it's very hard work, and a lot of our clients, they still struggle with it. >> One of the other questions you ask in the book that is very relevant to our audience given that we have a big presence in Silicon Valley is can Silicon Valley pull off a dual disruption agenda? What do you mean by that? >> Yeah, if you look at the Valley historically you could see them essentially as arms merchants. They were selling their products and services to whoever wanted to buy them, and companies would use them as they saw fit. But today in addition to doing that they are also what we say is they're an invading army, and they are increasingly competing with the very customers they've traditionally supplied, and of course Amazon being perhaps the best example of that. So many companies dependent on AWS as a platform, but there's Amazon trying to go after them in health care or retail or grocery stores or whatever business they're in. Yeah, content, every business under the sun. And so they're wearing these two dual disruptions hats. The technologies of our time are very disruptive, machine intelligence, blockchains, virtual reality, all these things have disruptive technology. But that second disruptive agenda of how do you change insurance, how do you change health care, how do change the car industry, that's what we mean, those two different types of disruptions. And they're pursuing both at the same time. >> And because it's digital and it's data, that possibility now exists that a company, a technology company can traverse industries which historically haven't been able to be penetrated, right? >> Yeah, absolutely, in our view every industry is going to be transformed by data one way or another. Whether it is disrupted or not is a second question, but the industry'll be very different when all of these technologies come into play, and the tech companies feel like they have the expertise and the vision of it. But they also have the money, and they're going to bet heavily to pursue these areas to continue their growth agenda. >> So one of the other questions of course that IT people ask is what does it mean for my job, and maybe we can, if we have time, we can talk about that. But you answer many of these questions with a conceptual framework that you call the Matrix which is a very powerful, you said words matter, a very powerful concept. Explain the Matrix. >> Okay, yeah. If we start and go back they have this idea that every generation of technology has its own words, Internet, Web, Cloud, and now we're going to a new era, so there will be a new word. And so we use the word Matrix as our view of that, and we chose it for two reasons. Obviously there's the movie which had its machine intelligence and virtual worlds and all of that. But the real reason we chose it is this concept that a matrix as in matrix mathematics is a structure that has rows and columns. And rows and columns is sort of the fundamental dynamic of what's going on in the tech sector today, that traditionally every industry had its own sort of vertical stack of capabilities that it did and it was sort of top to bottom silo. But today those horizontal platforms, the PayPals, the AWSs, the Facebooks, they run this, Salesforce, all these horizontal services that cut across those firms. And so increasingly every industry is leveraging a common digital infrastructure, and that tension between the traditional vertical stacks and these enormously powerful horizontal technology firms is really the structural dynamic that's in play right now. >> And at the top of that Matrix you have this sort of intelligence and automation layer which is this new layer. You don't like the term artificial intelligence. You make the point in the book there's nothing really artificial about it. You use machine intelligence. But that's that top layer that you see powering the next decade. >> Absolutely, if you look at the vision that everybody tends to have, autonomous cars, personalized health care, blockchain-based accounting, digital cash, virtual education, brain implants for the media, every one of those is essentially dependent on a layer of intelligence, automation, and data that is being built right now. And so just as previous layers of technology, the Web enabled a Google or an Amazon, the Cloud enabled AWS or Salesforce, this new layer enables companies to pursue that next layer of capabilities out there to build that sort of intelligent societal infrastructure of the 2020s which will be vastly different than where we are today. >> Will the adoption of the Matrix, in your opinion, occur faster because essentially it's built on the Internet and we have the Internet, i.e. faster than say the Internet or maybe some other major innovations, or is it going to take time for a lot of reasons? >> I think the speed is actually a really interesting question because the technology of the 2020s are extremely powerful, but most of them are not going to be immediate hits. And if you look back, say, to search, when search came out it was very powerful and you could scale it massively quickly. You look at machine learning, you look at blockchains, you look at virtual realities, you look at algorithms, speech and these areas, they're tremendously powerful. But there's no scenario where those things happen overnight. And so we do not see an accelerating pace of change. In fact it might be people often overestimate the speed of change in our business and consistently do that. But what we see is a sort of fundamental transformation over time, and that's why we put a lot of emphasis on the 2020s because we do not see two years from now this stuff all being in place. >> And you have some good examples in the book going back to the early days of even telephony. So it's worth checking that out. I want to talk about, bring it back to data, Amazon, Google, Apple, Microsoft, and Facebook, top five companies, public companies in terms of market cap. Actually it's not true after the Facebook fake news thing. I mean Berkshire Hathaway is slightly past Facebook. >> It'll be back (laughs). But I agree, it'll be back, but the key point there is these companies are different, they've got data at their core. When you compare that to other companies even financial services industry companies that are really data companies but the data's very bespoken, it's in silos. Can those companies, those incumbent companies, can they close that gap? Maybe you could talk about that a little bit. >> Yeah, we do a lot of work in the area of machine intelligence, artificial, whatever you want to call it. And one of the things you see immediately is this ridiculously large gap between what these leading companies do versus most traditional firms because of the talent, the data, the business model, all the things they have. So you have this widening gap there. And so the big question is is that going to widen or is it going to continue, will it narrow? And I think that the scenario for narrowing it I think is a fairly good one. And the message we say to a lot of our clients is that you will wind up buying a lot more machine intelligence than you will build because these companies will bring it to you. Machine intelligence will be in AWS. It'll be in Azure. It'll be in Salesforce. It'll be in your devices. It'll be in your user interfaces. It'll be in the speech systems. So the supply-side innovations that are happening in the giants will be sold to the incumbents, and therefore there will be a natural improvement in today's situation where a lot of incumbents are sort of basically trying to build their own stuff internally, and they're having some successes and some not. But that's a harder challenge. But the supply side will bring intelligence to the market in a quite powerful way and fairly soon. >> Won't those incumbents, though, have to sort of reorganize in a way around those new innovations given that they've got processes and procedures that are so fossilized with their existing businesses? >> Absolutely, and the word digital transformation is thrown around everywhere. But if it means anything it is having an organization that is aligned with the way technology works. And a good example of that is when you use Netflix today there's no separate sales experience, market experience, customer service, it's just one system and you have one team that builds those systems. In a typical corporation of course you have the sales organization and the marketing organization and the IT organization and the customer service organization. And those silos is not the way to build these systems. So the message we send to our clients if you really want to transform yourself you have to have more of this team approach that is more like the way the tech players do it. And that these traditional boundaries essentially go away when you go in the digital world where the customer experience is all those things at the same time. >> So if I'm hearing you correctly it's sort of a natural progression of how they're going to be doing business and the services that they're going to be procuring, but there's probably other approaches. Maybe it's force, but you're seeing maybe M&A or you're seeing joint ventures. Do you see those things as accelerating or precipitating the transformation or do you think it's futile and it really has to be led from the top and at the core? >> It's one of the toughest issues out there. And the reason people talk about transformation is because they see the need. But the difficulty is enormous. Most companies would say this is a three- or four-year process to make significant change, and this in a marketplace that changes every few months. So incumbent firms, they see where they want to go and it's very hard, and this is why this whole thing of getting digital right is so important, that people need to commit to significant change programs, and we're seeing it. And my parent company, DXC, we do a lot of this with clients and they want to embark on this program and they need people who can help them do it. And so leading a transformation agenda in most firms is really what digital leadership is these days and who's capable of doing that which requires tremendous skills in soft skills and hard skills to do right. >> Let's talk about industries and industry disruption. When you looked at the early disrupted industries whether it was publishing, advertising, music, one maybe had the tendency to think it was a bits versus atoms thing, but you point out in the book it's really not the case because you look at taxis, you look at hotels. Those are physical businesses and they've been disrupted quite substantially. Maybe you could give us some thoughts and insight there, particularly with regard to things like health care, financial services which haven't been disrupted. >> And there's a huge part of the work that I've been doing for years. And as you say, if you look at the industries that actually have been disrupted, they're all relatively low-security, low-risk businesses, music, advertising, taxis, retail. All these businesses have had tremendous changes. But the ones that haven't are all the ones where the stakes are higher, banking, insurance, health care, aerospace, defense. They've been hardly disrupted at all. And so you have this split between the low-risk industries that have changed and the high-risk ones that haven't. But what's interesting to me about that is that these technologies of the 2020s are aimed almost directly at those high-risk industries. So machine intelligence is aimed directly at health care and autonomous systems is aimed directly at defense and blockchains are aimed directly at banking and insurance. And so the technologies of the past if you look at Internet and the Web and the Cloud eras, they were not aimed at these industries. But today's are, so you now have at least a highly plausible scenario where those industries might change too. >> When to talk to companies in those industries that haven't been disrupted do you get a sense of complacency that ah well, we haven't been disrupted, We're going to wait and see, or do you see a sense of urgency? >> No, complacency is baked in for years of people saying, "We've heard all this before. "We're doing just fine. "Maybe it's their industry but not ours." >> Dave: You don't buy it. >> Or the main one is, "I'll be (laughing) retired "before any of this stuff matters for the senior execs." And the thing about all four of those is they're probably true. They have heard all this before because there was a lot of excessive hype. Many of them are doing just fine. Well the one about the other industries is a wrong one, but and many of them will be retired before the things really bite if executive's in their late in their career. So the inertia and the complacency is an enormous issue in most traditional companies. >> So let's do a little lightning round if we can. Oh, actually I just want to make a point. In the book you lay out disruption scenarios for each industry which is really worthwhile. We don't have time to go through that here, but let's do a little lightning round here, some of the questions that you ask that I'd love to get your opinion on of which of course there are no right answers but we can maybe frame it. Let's start with retail. Do you think large retail stores are going to disappear? >> Well the first I say is that disruption is never total. There are still bookstores, there are still newspapers, there are still vinyl records. >> Dave: Mainframes, saving IBM. >> (laughing) Indeed, indeed, but real disruption means that the center of gravity is just totally moved on. And when you look at retail from that point of view, absolutely. And will large ones totally disappear? No, but Wal-Mart is teetering. If you go into a large, Best Buy, a company that strong hero locally, you go into there, there's hardly anybody in there. And so those stores are in tremendous trouble. The grocery stores, the clothing stores, they'll have probably a better future, but by and large they will shrink, and the nature of malls will change quite substantially going forward. People are going to have to find other uses for those spaces, and that's actually going on right now. >> It's funny, it is, and certainly some of the more remote malls you find that they're waning. But then some of the higher-end malls, they seem, you can't find a parking space. What's your sense of that, that that's still inevitable or it's because it's more clothing or maybe jewelry? >> And there's some parts of America that have a lot of money, and therefore they fill up malls. But I think if you look at what's going on in the malls, though, they're becoming more like indoor cities full of restaurants and health clubs and movie theaters and sometimes even college courses and health care centers, daycare centers, air conditioning. Think of them as an indoor environment where you might have the traditional anchor stores but they're less necessary over time. Quite a bit less necessary. >> You mentioned college courses. Education's something we haven't talked about which is again ripe for disruption. Machines, will they make better diagnoses than doctors? >> Yeah, you see this already in image processing, anything that has to do with an image, X-rays and mammograms, cancers, anything, tissues. The machine learning progress there has been tremendous and to the point where schools now should be seriously thinking about how many radiologists do they really want to train because those people are not going to be needed as much. However they're still part of the system. They approve things, but the work itself is increasingly done by machines. And it means increasingly that it's not just done by machine, it's done by one machine somewhere else rather than every hospital setting up its own operations to do this stuff. And health care costs are crazy high in every country in the world, especially here in America. But if you're ever going to crack those costs you have to get some sort of scale, and these machine learning-based systems are the way to do it. And so it is to me not just a question of should this happen, it's that this is so what needs to happen. It's really the only sort of economic path that might work. >> You make the point that health care in particular is really ripe for disruption of all industries. The next one's really interesting to me. You talked about blockchain being sort of aimed at banking and financial services and as an industry that has not really yet been disrupted. But do you think banks will lose control of the payment systems? >> Banks have been incredibly good at keeping control through cash and paper checks and credit cards and ATM machines. They've been really good about that and perhaps they will ride this one too. But you can see countries are clearly going to, they're getting rid of cash. They're going to digital currencies. There's the need to be able to send money around as simply as we send emails around, and the banking industry is not really supporting (laughing) those changes right now. So they are at risk, but they are very good at co-opting stuff, and I wouldn't count them out. >> And the government really wants to get rid of paper money. You've made that point, and the government and the financial services-- >> Work together, and yeah. >> They always work together, they have a lot to lose. >> Yeah, and way back when Satoshi Nakamoto, whoever he or she is or it, they, whatever it is, said that bitcoin would either be very, very big or it would vanish altogether. And I think that statement is still true, and we're still in that middle world. But if bitcoin vanishes, something doing a similar thing will emerge because the concepts and the capabilities there are really what people want. >> Yeah, the killer app for blockchain is for right now it's money. (laughing) >> Yeah, it's speculation, (laughing) I mean it's, (laughing) and no one uses it to buy anything. (Dave laughing) That was the original bitcoin vision of using it to go buy pizzas and coffees. It's become gold, it's digital gold. I mean it's all it is. >> The value store... >> It's digital gold that is very good in the dark Web. >> And if anybody does transact in bitcoin they immediately convert it to fiat currency. (laughing) >> Perhaps someday we'll learn that the Russians actually built bitcoin (Dave laughing) and it's Putin's in control. (David and Dave laughing) Stranger things have happened. >> It's possible. >> Hey, why keep it anonymous? >> They are the masters of the dark Web. (Dave laughing) >> Could be Russians, could be a woman. >> David: Right, right, nobody has any idea. >> Robotic process automation is really interesting with software robots, robots. Do you see that reversing sort of offshoring, offshore manufacturing and other services? >> Not really, I think in general people looked at robotics, they looked at 3D printing and said, "Maybe we can bring all this stuff back home." But the reality is that China uses robots and 3D printing too and they're really good at it. If anything's going to bring manufacturing back home it's much more political pressures, trade strategies, and all the stuff you see going on right now because we do have crazy imbalances in the world that probably will have to change. And as Ben Stein the economist once said, "Well if something can't go on forever, it won't." And I think there will be some reversals, but I think they'll be less about technology than they will be about political pressures and trade agreements and those sort of changes. >> Because the technology's widely accessible. So how far do you think we can take machine intelligence and how far should we take machine intelligence? >> Well I make a distinction right now that I think machine intelligence for particular purposes is tremendous if you want to recognize faces or eventually talk to something or have it read something or recognize an activity or read images and do all the things it's doing, it's very good. When they talk about a more general-wise machine intelligence it's actually really poor. But to me that's not that important. And one way we look at machine intelligence, it's almost like the app industry. There'll be an app for that, there'll be a machine learning algorithm for almost every little thing that we do that involves data. And those areas will thrive mightily. And then sort of the bottom line we try to at that as who's got the best data? Facebook is good at facial recognitions because it's got the faces, and Google's good at language translation because it has the books and language pairs better than anybody else. And so if you follow the data and where there's good data machine learning will thrive. And where there isn't it won't. >> The book is called Seeing Digital: A Visual Guide to the Industries, Organizations, and Careers of the 2020s, and part of that visual guide is every single page actually has a graphic. So really a new concept that you've... >> Yeah, and thanks for bringing that in. And the reason the book is called Seeing Digital is that the book itself is a visual book, that every page has a graphic, an image, a picture, and explains itself below. And just in our own work with our own clients people tell us it's just a more impactful way of reading. So it's a different format. It's great in the ebook format because you can use colors, you can do lots of things that the printed world doesn't do so well. And so we tried to take advantage of modern technologies to bring a different sort of book to the market. >> That's great. So Google it and you'll find it easily. Dave, again, congratulations. Thanks so much for coming on theCube. >> David: Thank you, a pleasure. >> All right, and thank you for watching, everybody. We'll see you next time. (bright music)
SUMMARY :
Announcer: From the SiliconANGLE Media office in the Marlborough offices of theCube. Organizations, and Careers of the 2020s. and to me this is your most significant work, and really that is what the book is trying to do. So talk about the central premise of the book. and that that layer to us is actually more the powerful and a Web that sort of connected that CEOs are asking the question, And one of the ways we try to define it for our clients and of course Amazon being perhaps the best example of that. and the tech companies feel like they have the expertise So one of the other questions of course that IT people ask and that tension between the traditional vertical stacks And at the top of that Matrix of the 2020s which will be vastly different Will the adoption of the Matrix, in your opinion, and you could scale it massively quickly. And you have some good examples in the book but the key point there is these companies are different, And one of the things you see immediately Absolutely, and the word digital transformation and the services that they're going to be procuring, is so important, that people need to commit to one maybe had the tendency to think and the high-risk ones that haven't. of people saying, "We've heard all this before. And the thing about all four of those some of the questions that you ask Well the first I say is that disruption is never total. and the nature of malls will change It's funny, it is, and certainly some of the more But I think if you look at what's going on Education's something we haven't talked about and to the point where schools now and as an industry that has not really yet been disrupted. and the banking industry is not really and the government and the financial services-- because the concepts and the capabilities there Yeah, the killer app for blockchain (laughing) and no one uses it to buy anything. they immediately convert it to fiat currency. that the Russians actually built bitcoin They are the masters of the dark Web. Do you see that reversing sort of offshoring, and all the stuff you see going on right now and how far should we take machine intelligence? and do all the things it's doing, it's very good. and part of that visual guide is that the book itself is a visual book, So Google it and you'll find it easily. All right, and thank you for watching, everybody.
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Bill Mann, Centrify | RSA North America 2018
>> Narrator: From downtown San Francisco it's TheCUBE covering RSA North American 2018. >> Hey, welcome back everybody. Jeff Frick from TheCUBE. We're on the floor at the RSA Conference 2018. 40,000 plus people packed in Moscone North, South, West, and we're excited to be here. It's a crazy conference, Security's top of mind obviously and everybody is aware of this. And our next guest, he's Bill Mann, chief product officer from Centrify. Bill, great to see you. >> Great to see you. >> So you guys have a lot of stuff going on but what I think what's interesting to me is you guys have this kind of no trust as your starting foundation. Don't trust anybody, anything, any device. How do you work from there? Why is that the strategy? >> Well that strategy is because we've got a really new environment now. A new environment where we have to appreciate that the bad actors are already within our environment. And if you stop believing that bad actors are already in your environment, you have to start changing the way you think about security. So it's a really different way of thinking about security. So what we call this new way of thinking about security is zero trust security. And you might have heard this from Google with BeyondCorp and so forth. And with that as the overarching kind of way we are thinking about security, we're focusing on something called NextGenAccess. So how do you give people access to applications and services where they're remote. They're not on the network and they're not behind a firewall because who cares about the firewall anymore because it's not secure. >> Right. So there's four tenants of NextGenAccess. One is verify the user, verify the device that they are coming from so they're not coming from a compromised device. Then give them limited access to what they are trying to access or what we call Limit Privilege and Access. And that last one is learn and adapt which is this kind of pragmatic viewpoint which is we're never going to get security right day one, right? To learn and adapt and what we're doing look at auto tune logs and session logs to change your policy and adapt to get a better environment. >> So are you doing that every time they access the system? As they go from app to app? I mean how granular is it? Where you're consistently checking all these factors? >> We're always checking the end factor and where we use an actual machine learning to check what's happening in the environment and that machine learning is able to give that user a better experience when they are logging in. Let's say Bill's logging into Salesforce.com from the same location, from the same laptop all the time. Let's not get in the way right? But if Bill the IT worker is going from a different location and logging into a different server that's prompting for another factor of authentication because you want to make sure that this is really Bill. Because fundamentally you don't trust anybody in the network. >> And that's really what you guys call this NextGenAccess, right? [Bill]- That right, that's right, that's right. >> It's not just I got a VPN. You trust my VPN. I got my machine. Those days are long gone. >> Well VPNs, no no to VPNs as well, right? We do not trust VPNs either. >> So a bit topic ever since the election, right, has been people kind of infiltrating the election. Influencing you know how people think. And you guys are trying to do some proactive stuff even out here today for the 2018 election to try to minimize that. Tell us a little bit more about it. >> Yeah we call it Secure The Vote. And if the audience has looked at the recent 60 Minutes episode that came on. That did a really good that walked everybody through what was really happening with the elections. The way you know the Russians really got onto the servers that are storing our databases for the registration systems and changed data and created chaos in the environment. But the fundamental problem was compromised credentials. I mean 80% of all breaches believe it or not have to do with compromised credentials. They are not around all the things we think are the problem. So what we're doing here with Secure The Vote is giving our technology to state and local governments for eight months for free. And essentially they can then upgrade their systems, right? So they can secure the vote. So fundamentally securing who has access to what and why and when. And if you look at the people who are working on election boards, they're volunteers, there are a lot of temporary staff and so forth. >> Right, right. >> So you can imagine how the bad guys get into the environment. Now we've got a lot of experience on this. We sell to state and local governments. We've seen our technology being used in this kind of environment. So we're really making sure that we can do our part in terms of securing the election by providing our technology for free for eight months so election boards can use our technology and secure the vote. >> So how hard is it though for them to put it in for temporary kind of situation like that? You made it pretty easy for them to put it in if they are not an existing customer? >> Absolutely I mean one of the things, one of the fallacies around this whole NextGenAccess space is the fact that it's complicated. It's all SAS-Space, it's easy to use, and it's all in bite-sized chunks, right? So some customers can focus on the MFA aspects, right? Some customers can focus on making sure the privileged users who have access to the databases, right, are limiting their access right? So there's aspects of this that you can implement based upon where you want to be able to, what problem you want to be able to solve. We do provide a very pragmatic best practices way of implementing zero trust. So we are really providing that zero trust platform for the election boards. [Jeff]- Alright well that's great work Bill and certainly appreciated by everybody. We don't want crazy stuff going on in the elections. >> Absolutely. >> Jeff: So we'll have to leave it there. We'll catch up back in the office. It's a little chaotic here so thanks for taking a few minutes. >> Thank you very much. >> Alright, he's Bill Mann and I'm Jeff Frick. You're watching TheCUBE from RSCA 2018. Thanks for watching. (bright music)
SUMMARY :
Narrator: From downtown San Francisco it's TheCUBE We're on the floor at the RSA Conference 2018. So you guys have a lot of stuff going on So how do you give people access to applications And that last one is learn and adapt which is this kind Let's not get in the way right? And that's really what you guys call It's not just I got a VPN. Well VPNs, no no to VPNs as well, right? And you guys are trying to do some proactive stuff And if the audience has looked So you can imagine So there's aspects of this that you can implement Jeff: So we'll have to leave it there. Thanks for watching.
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John Furrier & Dave Vellante unpack the Russion Hack | Big Data SV 2018
>> Announcer: Live from San Jose. It's theCUBE. Presenting big data, Silicon Valley. Brought to you by SiliconANGLE Media and its ecosystem partners. >> Hello everyone, I'm John Furrier, co-host of theCube. I'm here with Dave Vellante, my co-host. Exclusive conversation around the role of data, data for good and bad. We always cover the role of data. We used to talk about AI and data for good but in this exclusive interview... And we have some exclusive material about data for bad. Dave, we've been talking about weaponizing data a year ago in SiliconEAGLE in theCUBE, around how data is being weaponized, and certainly in the elections. We know the Russians were involved. We know that data, you can buy journalists, you can create fake news. And for every click-bate and fake news is bad content. But also on the other side of this, there's good bate; good news. So the world's changin'. There needs to be a better place, needs to be some action taken, because there's now evidence that the role that the Russians had, using fake news and weaponizing it to sway the election and other things has been out there. So this is somethin' that we've been talkin' about. >> Yeah I mean the signature of the hacks is pretty clear. I think there is a distinct signature when you talk to the experts of when it's China or when it's Russia. Russia, very clever, about the way they target somebody whose maybe a pawn; but they try to make him or her feel like a king, grab their credentials and then work their way in. They've been doing this for decades, right? >> And the thing is to, is that now it's not just state-sponsored, there's new groups out there that they can enable open source tools. We report on theCUBE that terrorist organizations and bad actors, are taking open source tools and threats from state nations, posing as threats to democracy in the U.S. and other countries. This is a huge problem. >> And it's, in a way, it's harder than the nuclear problem. We had weapons pointed at each other, right. This is... The United States has a lot to lose. If we go on the offense, others can attack us and attack our systems, which are pretty mature. So, recently we talked to Garry Kasparov. I had an exclusive interview with him. He's very outspoken. Kasparov is the greatest chess player in history, by most accounts. And he is a political activist, he's an author. And he had a number of things to say about this. Let's listen to him, it's about a couple minute clip, and then we'll come back and talk about it. Watch this. >> Garry: Knowing Vladimir Putin and the mentality of the KGB mentality and the way he has been approaching the global problems; I had no doubt that the question was not if Putin would attack somewhere, but the question is when and where? And the attack on U.S. democracy was a surprise here but it was not surprise for us because we could see how they built these capabilities for more than a decade. Because they have been creating fake news industry in Russia to deal with Russian opposition 2004, 2005. Then they used against neighboring countries like Estonia in 2007. Then they moved to eastern Europe and then through western Europe. So when they ended up attacking the United States, they would've had almost a decade of experience. And it's quite unfortunate that, while there was kind of information about this attacks, the previous administration decided just to take it easy. And the result is that we have this case of interference; I hope there will be more indictments. I hope we'll get to the bottom of that. Because, we know that they are still pretty active in Europe. And they will never seize there-- >> Dave: Germany, France-- >> Garry: Exactly. But it's... I call Putin as: merchant of doubt. Because, unlike Soviet propaganda machine, he's not selling one ideology. All he wants is to spread chaos. So that's why it's not about and, oh this is the only, the right teaching. No, no, no. No, it's wrong, it's wrong, everything... Yeah, maybe there are 10 different ways of saying the truth. Truth is relevant. And that's a very powerful message because it's spreading these doubts. And he's very good in just creating these confusions and actually, bringing people to fight each other. And I have to say he succeeded-- >> Dave: Our president is taken a page out of that. Unfortunately. But I also think the big issue we face as a country, in the United States, is 2020. Is the election in 2020 is going to be about who leverages social media and the weaponization of social media. And the Russian attackers you talk to the black hats, very sophisticated, very intriguing how they come in, they find the credentials-- >> Garry: But look, we know, Jesus, every expert knows that in this industry, if you are trying to defend yourself, if you are on the defense all the time you will lose. It's a losing proposition. So the only way to deter the aggression is to make sure that they won't be counterattacks. So that there will be devastating blows, those who are attacking the United States. And you need the political will because, technology is here; America is still the leading power in the world. But the political will, unfortunately-- >> Dave: However, I would say that, but it's different than with nuclear warheads. Robert Gates was on theCUBE, he said to me, and I asked him about offense versus defense. He said the only thing about the Unite States is we have a lot to lose. So we have to be careful. (laughter) How aggressive we can be. >> Garry: No, exactly. That is just, it's, yes. It's a great error of uncertainty: what can you lose? If you show strength. But I can tell you exactly how you are going to lose everything, if you are not-- >> Dave: Vigilant. >> Garry: If you are not vigilant. If you are not deterrent. If you are not sending the right signal to the Putins of this world that aggression against America will have the price that you cannot bear. >> So John, pretty unequivocal comments from Garry Kasparov. So a lot of people don't believe that you can actually manipulate social media that way. You've been in social for a long time, since the beginning days. Maybe you could explain how one, would a country or a state sponsored terrorism; how would they go about manipulating individuals? >> You know Dave, I've been involved in internet infrastructure from the beginning days of Web 1.0 and through search engines. Student of the data. I've seen the data. I've seen our, the data that we have from our media company. I've seen the data on Facebook and here's the deal: there's bad actors doin' fake news, controlling everything, creating bad outcomes. It's important for everyone to understand that there's an actual opposite spectrum. Which is the exact opposite of the bad; there's a good version. So what we can learn from this is that there's a positive element of this, if we can believe it, which is actually a way to make it work for good. And that is trust, high-quality data, reputation and context. That is a very hard problem. Facebook is tryin' to solve it. You know we're workin' on solving that. But here's the anatomy of the hack. If you control the narrative, you can control the meme. If you can control the meme, you can control the idea. If you can control the idea, you can control the belief system. If you can control the belief system, you can control the population. That is exactly what has happened with the election. That is what's happening now in social networks. That's why so many people are turning off to social networks. Because this is hackable; you can actually hack the brains and outcomes of people. Because, controlling the narrative, controlling the meme, controlling the idea, controlling the belief system: you can impact the population. That has absolutely been done. >> Without firin' a shot. >> Without firing a shot. This is the new cold social network wars that are goin' on. And again, that has been identified, but there's an opposite effect. And the opposite effect is having a trust system, a short cut to trust; there will be a Google in our future, Google, like what Google did to search engines. It will be for social networks. That is, whoever can nail the trust, reputation, context: what is real and what is not. Will ultimately have all the users goin' to their doorstep. This is the opportunity for news organizations, for platforms and it's all going to be driven by new infrastructure, new software. This is something we can learn from. But there is a way to hack, it's been done. I've just laid it out. That's what's happening. >> Well, blockchain solved or play a role in solving this problem of reputation in your opinion. >> Well you know that I believe centralized is bad. 'Cause you can hack a centralized database and the data. Ownership is huge. I personally believe that blockchain and this notion of decentralized data ownership will ultimately go back to the people and that the decentralized applications and cryptocurrency leads a path, it's not yet proven, there's no clear visibility yet. But many believe that the wallet is a new browser and that cryptocurrency can put the power to the people; so that new data can emerge. To vet in a person who says they're something that they're not. News that says they're somethin' that they're not. This is a trust. This is something that is not yet available. That's what I'm sayin'. You can't get it with Google, you can't get it with Facebook. You can't get it in these platforms. So the world has to change at an infrastructure level. That's the opportunity to blockchain. Aside from all the things like who's going to give the power for the miners; a variety of technical issues. But conceptually, there is a path there. That's a new democracy. This is global phenomenon. It's a societal change. This is so cutting edge, but it's yet very promising at the same time. >> This is super important because I can't tell you how many times have you've received an email from one political persuasion or the other that lays out emphatically, that this individual did that or... And you do some research and you find out it's fake news. It happens all the time. >> There's no context for these platforms. Facebook optimizes their data for advertising optimization and you're going to see data being optimized for user control, community control, community curation. More objective not subjective data. This is the new algorithm, this is what machine learning in AI will make a difference. This is the new trust equation that will emerge. This is a phenomenal opportunity for entrepreneurs. If you're in the media business and you're not thinking about this, you will be out of business. That's our opinion. >> Excellent John. Well thanks for your thoughts and sharing with us how these hacks are done. This is real. The midterm elections, 2020 is really going to be won or lost on social media. Appreciate that. >> And Facebook's fumbling and they're going to try to do good. We'll see what they do. >> Alright. >> Alright. >> That's a wrap. Good job. >> Thanks for watching.
SUMMARY :
Brought to you by SiliconANGLE Media that the role that the Russians had, using fake news Yeah I mean the signature of the hacks is pretty clear. And the thing is to, is that now it's not Kasparov is the greatest chess player in history, I had no doubt that the question was not the right teaching. And the Russian attackers you talk to the black hats, America is still the leading power in the world. He said the only thing about the Unite States is we It's a great error of uncertainty: what can you lose? If you are not sending the right signal So a lot of people don't believe that you can actually Which is the exact opposite of the bad; This is the new cold social network wars that are goin' on. in solving this problem of reputation in your opinion. and that cryptocurrency can put the power to the people; This is super important because I can't tell you This is the new algorithm, this is what machine learning This is real. And Facebook's fumbling and they're going to try to do good. That's a wrap.
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