>>mhm. >>Good morning. Live from Las Vegas. That snowflake Summit 22. Lisa Martin With Day Volonte David's Great. We have three wall to wall days of coverage at Snowflake Summit 22 this year. >>Yeah, it's all about data and bringing data to applications. And we've got some big announcements coming this week. Super exciting >>collaboration around data. We are excited to welcome our first two guests before the keynote. We have seen Nielsen in S V. P of data and Analytics Service offering head at emphasis. And Chris Dignan alumni is back with us to chief revenue officer at stuff like guys. Great to have you on the programme. Thanks for having us. Thank you very much. So he'll tell us what's going on with emphasis and snowflake and the partnership. Give us all that good stuff. >>Yeah, No, I think with the convergence of, uh, data digital and computing economy, um, you know that convergence is creating so much possibilities for for customers, uh, snowflake and emphases working together to help our customers realise the vision and these possibilities that are getting driven. We share a very strategic partnership where we are thinking ahead for our customers in terms of what, uh, we can do together in order to build solutions in order to bring out the expertise that is needed for such transformations and also influencing the thinking, Um, and the and the point of view in the market together so that, you know there is there is cohesive approach to doing this transformation and getting to those business outcomes. So it's a It's a partnership that's very successful and its strategic for for our customers, and we continue to invest for the market. >>Got some great customer. Some of my favourite CVS, Nike, William Sanoma. Gotta love that one. Chris talked to us about the snowflake data cloud. What makes it so unique and compelling in the market? >>Well, I think our customers, really they are going through digital transformation today, and they're moving from on premise to the cloud and historically speaking, there just hasn't been the right tool set to help them do that. I think snowflake brings to the table an opportunity for them to take all of their data and take it and and allow it to go from one cloud to the other so they can sit on a W s it can sit on Azure can sit on G, C, P and I can move around from cloud to cloud, and they can do analytics on top of that. >>So data has been traditionally really hard. And we saw that in the big data movement. But we learned a lot. Uh, and AI has been, you know, challenging. So what are you seeing with with customers? What are they struggling with? And how are you guys helping them? >>Yeah. So if you look at the customer journey, they have invested in a number of technologies in the past and are now at a juncture where they need to transform that landscape. They have the challenges of legacy debt that they need to, you know, get rid of or transform. They have the challenges of really bringing, you know, a cohesive understanding within the enterprise as to what these possibilities are for their business. Given the strategy that they are pursuing, um, business and I t cycles are not necessarily aligned. Um, you have the challenge of very fragmented data landscape that they have created over a period of time. How do you, you know, put all these together and work with a specific outcome in mind so that you're not doing transformation for the purpose of transformation. But to be able to actually drive new business models, new data driven products and services ability for you to collaborate with your partners and create unique competitive advantage in the market. And how do you bring those purposes together with the transformation that that's really happening? And and that's where you know our our customers, um, you know, grapple with the challenges of bringing it together. So, >>Chris, how do you see? Because it was talking about, uh, legacy that I think technical debt. Um, you kind of started out making the data warehouse easier. Then this data cloud thing comes out. You're like, Oh, that's an interesting vision and all of a sudden it's way more than vision. You get this huge ecosystem you're extending, we're gonna hear the announcements this morning. We won't. We won't spill the beans, but but really expanding the data cloud. So it's hard to keep up with with where you're at. So I think modernisation, right? So how do you think about modernisation? How are your customers thinking about it? And what's the scope of Snowflake. >>Well, you know, I think historically, you asked about AI and Ml and, you know, in the A I world historically, they've lacked data, and I think because we're the data cloud, we're bringing data, you know, and making it available and democratising it for everybody. And then, you know, partners like emphasis are actually helping us bring, you know, applications and new business models to to the table to our customers and their innovating on top of the data that we already have in the Snowflake Data Club. >>Chris, can you talk about some of the verticals where you guys are successful with emphasis that the three that I mentioned are retailers, But I know that finance, healthcare and life sciences are are huge for smooth, like talk to me, give us a perspective of the verticals that are coming to you. Guys saying help us out with transport. >>You know, I'll give you just an example. So So in the in the retail space, for example, Kraft Heinz is a is a joint customer of ours. And, you know, they've been all in on on snowflakes, Data Cloud and one of our big customers as well it is is Albertsons, and Albertans realises, Oh my gosh, I have all this information around the consumer in in the grocery stores and Kraft Heinz. They want access to that, and they actually can make supply chain decisions a lot faster if they have access to it. So with snowflakes data sharing, we can actually allow them to share data. Albertans share data directly with Kraft, Heinz and Kraft. Heinz can actually make supply chain decisions in real time so that these are some of the stuff that emphasis and stuff like help our customers self. >>So traditionally, the data pipeline goes through some very highly specialised individuals, whether the data engineer, the data scientists and data analyst. So that example that you just gave our organisation you mentioned before democratisation. So democratisation needs to be as a businessperson, I actually can get access to the data. So in that example that you gave between Kraft, Heinz and and and Albertson, is it the the highly hyper specialised teams sharing that data? Or is it actually extending into the line of business focus? >>That's so that's the interesting part for us is I think, snowflake, we just recently reorganise my sales team this year into verticals, and the reason we did that is customers no longer want to talk to us about speeds and feeds of how fast my database goes. They want to actually talk about business outcomes. How do I solve for demand forecasting? How do I supply fix my supply chain issues? Those are things. Those are the. That's how we're aligning with emphasis. So well is they've been doing this for a long time, Can only we haven't. And so we need their help on getting us to the next level of of the sales motion and talking to our customers on solving these business challenges in >>terms of that next level. So no question for you. Where are the customer conversations happening? At what level? I mean, we've seen such dramatic changes in the market in the last couple of years. Now we're dealing with inflation rising interest rates. Ukraine. Are you seeing the conversations in terms of building data platforms rising up the C suite? As every company recognises, we're going to be a data company. We're not gonna be a business. >>Absolutely. And I think all the macroeconomic forces that you talked about that's working on the enterprises globally is actually leading them to think about how to future proof their business models. Right? And there are tonnes of learning that they've hired in the last two or three years and digitising in embracing more digital models. The conversation with the customers have really pivoted towards business outcome. It is a C suite conversation. It is no longer just an incremental change for the for the companies they recognise. That data has been touted as a strategic asset for a long time, but I think it's taking a purpose and a meaning as to what it does for for the customers, the conversations are around industry verticals. You know, what are the specific challenges and opportunities that the the enterprises have, uh, and how you realise those and these cuts across multiple different layers. You know, we're talking about how your democratised data, which in our point of view, is absolute, must in terms of putting a foundation that doesn't take super specialised people to be able to run every operation and every bit of data that you process we have invested in building autonomous data and a state that can process data as it comes in without any manual intervention and take it all the way to consumption but also investing in those industry solutions. Along with snowflake, we launched the healthcare and life Sciences solution. We launched the only channel for retail and CPG. And these are great examples of how Snowflake Foundation enables democratisation on one side but also help solve business problems. In fact, with Snowflake, we have a very, uh, special partnership because our point of view on data economy is about how you connect with the network partners externally, and snowflake brings native capabilities. On this, we leverage that to Dr Exchanges for our customers and one of the services company in the recycling business. Uh, we're actually building and in exchange, which will allow the data points from multiple different sources and partners to come together. So they have a better understanding of their customers, their operations, the field operations and things >>like building a data ecosystem. Yes. Alright, They they Is it a two sided market place where you guys are observers and providing the the technology and the process, you know, guidance. What's your role in that? >>Yeah. So, um, we were seeing their revolution coming? Uh, two stages. Maybe even more. Um, customers are comfortable building an ecosystem. That's kind of private for them. Which means that they know who they are sharing data with. They know what the data is getting used for. And how do you really put governance on this? So that on one side you can trust it on the other side. There is a good use of that data, Uh, and not, uh, you know, compromise on their quality or privacy and some of the other regulations. But we do see this opening up to the two sided market places as well. Uh, some of the industry's lend themselves extremely well for that kind of play. We have seen that happening in trading area. We've seen that happen. And, uh, you know, the credit checks and things like that which are usually open for, you know, those kind of ecosystem. But the conversations and the and the programmes are really leading towards towards that in the market. >>You know, Lisa, one of things I wrote about this weekend is I was decided to come to stuff like summit and and see one of the, you know, thesis I have is that we're going to move not just beyond analytics, including analytics, but also building data products that can be monetised and and I'm hoping we're going to see some of that here. Are you seeing that Christian in the customer? It's It's >>a great question, David. So So we have You know, I just thought of it as as he was talking about. We have a customer who's a very large customer of ours who's in the financial services space, and they handle roughly 40% of the credit card transactions that happen in the US and they're coming to us and saying they want to go from zero in data business today to a $2 billion business over the next five years, and they're leaning on us to help them do that. And one of the things that's exciting for me is they're coming to us not saying Hey, how do you do it? You know, they're saying, Hey, we want to build a consumption model on top of snowflake and we want to use you as the delivery mechanism and the billing mechanism to help us actually monetise that data. So yes, the answer is. You know, I I used to sell to, you know, chief Data Officers and and see IOS. Now I'm talking to VPs of sales and I'm talking to chief operating officers and I'm talking to CEOs about how do we actually create a new revenue stream? And that's just I mean, it's exhilarating to have those conversations. That's >>data products. They don't have to worry about the infrastructure that comes from the cloud. They don't have to worry about the governance, as Senior was saying, Just put >>it in stuff like Just >>put stuff like that. So I call it The super cloud is kind of a, you know, a funny little tongue in cheek. But it's happening. It's this layer. It's not just multiple clouds. You see a lot of your critical competitors adjacent competitors saying, Hey, we're now running in in Google or we're running in Azure. We've been running on AWS. This is different. This is different, isn't it? It's a cloud that floats above the The infrastructure of the hyper scale is, and that's that's a new era. I think >>it's a new error. I think they're you know, I think the hyper scholars want to, you know, keep us as a as a data warehouse and and we're not. The customers are not letting them so So I think that's you know where emphasis kind of saw the light early on. And they were our innovation partner of the year, uh, this past year and they're helping us in our customers innovate, >>but you're uniquely qualified to do that where? I don't think it's the hyper scholars agenda. At least I never say never with the hyper scale is, but yeah, they have focused on providing infrastructure. And, yeah, they have databases and other tools. But that that cross cloud that continuum to your point, talking to VPs of sales and how do you generate revenue? That maybe, is a conversation that they have, but not explicitly as to how to actually do it in a data >>cloud. That's right. I mean, those and those are the Those are the fun conversations because you're you're saying, Hey, we can actually create a new revenue stream. And how can we actually help you solve our joint customers problems? So, yes, it is. Well, >>that's competitive differentiation for businesses. I mean, this is, as I mentioned Every company has to be a data company. If they're not, they're probably not going to be around much longer. They've got to be able to to leverage a data platform like snowflake, to find insights, be able to act on them and create value new services, new products to stay competitive, to stay ahead of the competition. That's no longer nice to have >>100%. I mean, I think they're they're all scared. I mean, you know, like if you look in the financial services space, they look at some of the fintech, as you know, the giant £800 gorillas look at the small fintech has huge threats to the business, and they're coming to us and say, How can we innovate our business now? And they're looking at us as the the innovator, and they're looking at emphasis to help them do that. So I think these are These are incredible times. >>So the narrative on Wall Street, of course, this past earnings season was consumption and who has best visibility and and they they were able to snowflake had a couple of large customers dial down consumption, some consumer facing. Here's the thing. If you're selling a data product for more than it costs you to make. If you dial down consumption in the future, you're gonna dial down revenue. So that's it's going to become less and less discretionary over time. And that, to me, is the next error. That's really exciting. >>The key, The key there is understanding the unit of measure. I think that's the number. One question that we get from customers is what is the unit of measure that we care about, that we want to monetise because to your point, it costs you more to make the product. You're not going to sell it right? And so I think that those are the things that the energy that we're spending with customers today is advising them, jointly advising them on how to actually monetise the specific, you know, unit of measure that they care >>about because when they get the Amazon bill or the snowflake bill, the CFO starts knocking the door. The answer has to be well, look at all the revenue that we generated and all the operating profit and the free cash flow that we drove, and then it's like, Oh, I get it. Keep doing it well, if I'm >>if I'm going on sales calls with the VP of sales and his their sales team, fantastic, right generated helping them generate revenue, right? That's a great conversation >>dynamic. And I think the adoption is really driven through the value, uh, that they can drive in their ecosystem. Their products are similar to products and services that these companies sell. And if you're embedding data inside Syria into your products services, that makes you that much more competitive in the market and drive value for your stakeholders. And that's essentially the future business model that we're talking about. On one side, the other one is the agility. Things aren't remaining constant, they are constantly changing, and we talked about some of those forces earlier. All of this is changing. The landscape is changing the the needs in the economy and things like that, and how you adapt to those kind of models in the future and pivoted on data capabilities that lets you identify new opportunities and and create new value. >>Speaking of creating new value last question guys, before we wrap, what's the go to market approach here between the two companies working customers go to get engaged. I imagine both sides. >>Yeah. I mean, the way that partnership looks good to me is is sell with co selling. So So I think, you know, we look at developing joint solutions with emphasis. They've done a wonderful job of leading into our partnership. So, you know, Sue Neill and I have a regular cadence where we talked every quarter, and our sales teams and our partner teams are are all leaning in and co selling. I don't know if you >>have Absolutely, um, you know, we we proactively identify, you know, the opportunities for our customers. And we work together at all levels within, you know, between the two companies to be able to bring a cohesive solution and a proposition for the customers. Really help them understand how to, you know, what is it that they can, um, get to and how you get that journey actually executed. And it's a partnership that works very seamlessly through that entire process, not just upstream when we're selling, but also downstream and we're executing. And we've had tremendous success together and look forward to more. >>Congratulations on that success, guys. Thank you so much for coming on talking about new possibilities with data and AI and sharing some of the impact that the technologies are making. We appreciate your insights. >>Thank you. Thank >>you. Thank you So much >>for our guests and a Volonte. I'm Lisa Martin. You're watching the Cube live in Las Vegas from Snowflake Summit 22 back after the keynote with more breaking news. Mhm, mhm.

>>Yeah. Hello and welcome back to the cubes coverage of AWS public sector summit here in Washington D. C. We're live on the ground for two days. Face to face conference and expo hall and everything here but keith brooks who is the director and head of technical business development for a dress government Govcloud selling brains 10th birthday. Congratulations. Welcome to the cube. Thank you john happy to be E. C. 2 15 S three is 9.5 or no, that maybe they're 10 because that's the same day as sqs So Govcloud. 10 years, 20 years. What time >>flies? 10 years? >>Big milestone. Congratulations. A lot of history involved in Govcloud. Yes. Take us through what's the current situation? >>Yeah. So um let's start with what it is just for the viewers that may not be familiar. So AWS Govcloud is isolated. AWS cloud infrastructure and services that were purposely built for our U. S. Government customers that had highly sensitive data or highly regulated data or applications and workloads that they wanted to move to the cloud. So we gave customers the ability to do that with AWS Govcloud. It is subject to the fed ramp I and D O D S R G I L four L five baselines. It gives customers the ability to address ITAR requirements as well as Seaga's N'est ce MMC and Phipps requirements and gives customers a multi region architecture that allows them to also designed for disaster recovery and high availability in terms of why we built it. It starts with our customers. It was pretty clear from the government that they needed a highly secure and highly compliant cloud infrastructure to innovate ahead of demand and that's what we delivered. So back in august of 2011 we launched AWS GovCloud which gave customers the best of breed in terms of high technology, high security, high compliance in the cloud to allow them to innovate for their mission critical workloads. Who >>was some of the early customers when you guys launched after the C. I. A deal intelligence community is a big one but some of the early customers. >>So the Department of Health and Human Services, the Department of Veterans Affairs, the Department of Justice and the Department of Defense were all early users of AWS GovCloud. But one of our earliest lighthouse customers was the Nasa jet propulsion laboratory and Nasa Jpl used AWS GovCloud to procure Procure resources ahead of demand which allowed them to save money and also take advantage of being efficient and only paying for what they needed. But they went beyond just I. T. Operations. They also looked at how do they use the cloud and specifically GovCloud for their mission programs. So if you think back to all the way to 2012 with the mars curiosity rover, Nasa Jpl actually streamed and processed and stored that data from the curiosity rover on AWS Govcloud They actually streamed over 150 terabytes of data responded to over 80,000 requests per second and took it beyond just imagery. They actually did high performance compute and data analytics on the data as well. That led to additional efficiencies for future. Over there >>were entire kicking they were actually >>hard core missing into it. Mission critical workloads that also adhere to itar compliance which is why they used AWS GovCloud. >>All these compliance. So there's also these levels. I remember when I was working on the jetty uh stories that were out there was always like level for those different classifications. What does all that mean like? And then this highly available data and highly high availability all these words mean something in these top secret clouds. Can you take us through kind of meetings >>of those? Yeah absolutely. So it starts with the federal compliance program and the two most popular programs are Fed ramp and Dodi srg fed ramp is more general for federal government agencies. There are three levels low moderate and high in the short and skinny of those levels is how they align to the fisma requirements of the government. So there's fisma low fisma moderate fisma high depending on the sensitivity of the government data you will have to align to those levels of Fed ramp to use workloads and store data in the cloud. Similar story for D. O. D. With srg impact levels to 45 and six uh impacts levels to four and five are all for unclassified data. Level two is for less sensitive public defense data levels. Four and five cover more sensitive defense data to include mission critical national security systems and impact level six is for classified information. So those form the basis of security and compliance, luckily with AWS GovCloud celebrating our 10th anniversary, we address Fed ramp high for our customers that require that and D. O. D impact levels to four and five for a sensitive defense guy. >>And that was a real nuanced point and a lot of the competition can't do that. That's real people don't understand, you know, this company, which is that company and all the lobbying and all the mudslinging that goes on. We've seen that in the industry. It's unfortunate, but it happens. Um, I do want to ask you about the Fed ramp because what I'm seeing on the commercial side in the cloud ecosystem, a lot of companies that aren't quote targeting public sector are coming in on the Fed ramp. So there's some good traction there. You guys have done a lot of work to accelerate that. Any new, any new information to share their. >>Yes. So we've been committed to supporting the federal government compliance requirements effectively since the launch of GovCloud. And we've demonstrated our commitment to Fed ramp over the last number of years and GovCloud specifically, we've taken dozens of services through Fed ramp high and we're 100% committed to it because we have great relationships with the Fed ramp, Jabor the joint authorization board. We work with individual government agencies to secure agency A. T. O. S. And in fact we actually have more agency A. T. O. S. With AWS GovCloud than any other cloud provider. And the short and skinny is that represents the baseline for cloud security to address sensitive government workloads and sensitive government data. And what we're seeing from industry and specifically highly regulated industries is the standard that the U. S. Government set means that they have the assurance to run control and classified information or other levels of highly sensitive data on the cloud as well. So Fed ramp set that standard. It's interesting >>that the cloud, this is the ecosystem within an ecosystem again within crossover section. So for instance um the impact of not getting Fed ramp certified is basically money. Right. If you're a supplier vendor uh software developer or whatever used to being a miracle, no one no one would know right bed ramp. I'm gonna have to hire a whole department right now. You guys have a really easy, this is a key value proposition, isn't it? >>Correct. And you see it with a number of I. S. V. S. And software as the service providers. If you visit the federal marketplace website, you'll see dozens of providers that have Fed ramp authorized third party SAAS products running on GovCloud industry leading SAAS companies like Salesforce dot com driven technology Splunk essay PNS to effectively they're bringing their best of breed capabilities, building on top of AWS GovCloud and offering those highly compliant fed ramp, moderate fed ramp high capabilities to customers both in government and private industry that need that level of compliance. >>Just as an aside, I saw they've got a nice tweet from Teresa Carlson now it's plunk Govcloud yesterday. That was a nice little positive gesture uh, for you guys at GovCloud, what other areas are you guys moving the needle on because architecturally this is a big deal. What are some areas that you're moving the needle on for the GovCloud? >>Well, when I look back across the last 10 years, there were some pretty important developments that stand out. The first is us launching the second Govcloud infrastructure region in 2018 And that gave customers that use GovCloud specifically customers that have highly sensitive data and high levels of compliance. The ability to build fault tolerant, highly available and mission critical workloads in the cloud in a region that also gives them an additional three availability zones. So the launch of GovCloud East, which is named AWS GovCloud Us East gave customers to regions a total of six availability zones that allowed them accelerate and build more scalable solutions in the cloud. More recently, there is an emergence of another D O D program called the cybersecurity maturity model, C M M C and C M M C is something where we looked around the corner and said we need to Innovate to help our customers, particularly defense customers and the defense industrial based customers address see MMC requirements in the cloud. So with Govcloud back in December of 2020, we actually launched the AWS compliant framework for federal defense workloads, which gives customers a turnkey capability and tooling and resources to spin up environments that are configured to meet see MMC controls and D. O. D. Srg control. So those things represent some of the >>evolution keith. I'm interested also in your thoughts on how you see the progression of Govcloud outside the United States. Tactical Edge get wavelength coming on board. How does how do you guys look at that? Obviously us is global, it's not just the jet, I think it's more of in general. Edge deployments, sovereignty is also going to be world's flat, Right? I mean, so how does that >>work? So it starts back with customer requirements and I tie it back to the first question effectively we built Govcloud to respond to our U. S. Government customers and are highly regulated industry customers that had highly sensitive data and a high bar to meet in terms of regulatory compliance and that's the foundation of it. So as we look to other customers to include those outside of the US. It starts with those requirements. You mentioned things like edge and hybrid and a good example of how we marry the two is when we launched a W. S. Outpost in Govcloud last year. So outpost brings the power of the AWS cloud to on premises environments of our customers, whether it's their data centers or Coehlo environments by bringing AWS services, a. P. I. S and service and points to the customer's on premises facilities >>even outside the United States. >>Well, for Govcloud is focused on us right now. Outside of the U. S. Customers also have availability to use outpost. It's just for us customers, it's focused on outpost availability, geography >>right now us. Right. But other governments gonna want their Govcloud too. Right, Right, that's what you're getting at, >>Right? And it starts with the data. Right? So we we we spent a lot of time working with government agencies across the globe to understand their regulations and their requirements and we use that to drive our decisions. And again, just like we started with govcloud 10 years ago, it starts with our customer requirements and we innovate from there. Well, >>I've been, I love the D. O. D. S vision on this. I know jet I didn't come through and kind of went scuttled, got thrown under the bus or whatever however you want to call it. But that whole idea of a tactical edge, it was pretty brilliant idea. Um so I'm looking forward to seeing more of that. That's where I was supposed to come in, get snowball, snowmobile, little snow snow products as well, how are they doing? And because they're all part of the family to, >>they are and they're available in Govcloud and they're also authorized that fed ramp and Gov srg levels and it's really, it's really fascinating to see D. O. D innovate with the cloud. Right. So you mentioned tactical edge. So whether it's snowball devices or using outposts in the future, I think the D. O. D. And our defense customers are going to continue to innovate. And quite frankly for us, it represents our commitment to the space we want to make sure our defense customers and the defense industrial base defense contractors have access to the best debris capabilities like those edge devices and edge capable. I >>think about the impact of certification, which is good because I just thought of a clean crows. We've got aerospace coming in now you've got D O. D, a little bit of a cross colonization if you will. So nice to have that flexibility. I got to ask you about just how you view just in general, the intelligence community a lot of uptake since the CIA deal with amazon Just overall good health for eight of his gum cloud. >>Absolutely. And again, it starts with our commitment to our customers. We want to make sure that our national security customers are defense customers and all of the customers and the federal government that have a responsibility for securing the country have access to the best of breed capability. So whether it's the intelligence community, the Department of Defense are the federal agencies and quite frankly we see them innovating and driving things forward to include with their sensitive workloads that run in Govcloud, >>what's your strategy for partnerships as you work on the ecosystem? You do a lot with strategy. Go to market partnerships. Um, it's got its public sector pretty much people all know each other. Our new firms popping up new brands. What's the, what's the ecosystem looks like? >>Yeah, it's pretty diverse. So for Govcloud specifically, if you look at partners in the defense community, we work with aerospace companies like Lockheed martin and Raytheon Technologies to help them build I tar compliant E. R. P. Application, software development environments etcetera. We work with software companies I mentioned salesforce dot com. Splunk and S. A. P. And S. To uh and then even at the state and local government level, there's a company called Pay It that actually worked with the state of Kansas to develop the Icann app, which is pretty fascinating. It's a app that is the official app of the state of Kansas that allow citizens to interact with citizens services. That's all through a partner. So we continue to work with our partner uh broad the AWS partner network to bring those type of people >>You got a lot of MST is that are doing good work here. I saw someone out here uh 10 years. Congratulations. What's the coolest thing uh you've done or seen. >>Oh wow, it's hard to name anything in particular. I just think for us it's just seeing the customers and the federal government innovate right? And, and tie that innovation to mission critical workloads that are highly important. Again, it reflects our commitment to give these government customers and the government contractors the best of breed capabilities and some of the innovation we just see coming from the federal government leveraging the count now. It's just super cool. So hard to pinpoint one specific thing. But I love the innovation and it's hard to pick a favorite >>Child that we always say. It's kind of a trick question I do have to ask you about just in general, the just in 10 years. Just look at the agility. Yeah, I mean if you told me 10 years ago the government would be moving at any, any agile anything. They were a glacier in terms of change, right? Procure Man, you name it. It's just like, it's a racket. It's a racket. So, so, but they weren't, they were slow and money now. Pandemic hits this year. Last year, everything's up for grabs. The script has been flipped >>exactly. And you know what, what's interesting is there were actually a few federal government agencies that really paved the way for what you're seeing today. I'll give you some examples. So the Department of Veterans Affairs, they were an early Govcloud user and way back in 2015 they launched vets dot gov on gov cloud, which is an online platform that gave veterans the ability to apply for manage and track their benefits. Those type of initiatives paved the way for what you're seeing today, even as soon as last year with the U. S. Census, right? They brought the decennial count online for the first time in history last year, during 2020 during the pandemic and the Census Bureau was able to use Govcloud to launch and run 2020 census dot gov in the cloud at scale to secure that data. So those are examples of federal agencies that really kind of paved the way and leading to what you're saying is it's kind >>of an awakening. It is and I think one of the things that no one's reporting is kind of a cultural revolution is the talent underneath that way, the younger people like finally like and so it's cooler. It is when you go fast and you can make things change, skeptics turned into naysayers turned into like out of a job or they don't transform so like that whole blocker mentality gets exposed just like shelf where software you don't know what it does until the cloud is not performing, its not good. Right, right. >>Right. Into that point. That's why we spend a lot of time focused on education programs and up skilling the workforce to, because we want to ensure that as our customers mature and as they innovate, we're providing the right training and resources to help them along their journey, >>keith brooks great conversation, great insight and historian to taking us to the early days of Govcloud. Thanks for coming on the cube. Thanks thanks for having me cubes coverage here and address public sector summit. We'll be back with more coverage after this short break. Mhm. Mhm mm.

>>Mhm. Yes one. >>Hello and welcome. Today's session of the 2021 AWS Global Public Sector Partner Awards. I am pleased to introduce our very next guests. Their names are a lean black S. V. P. Public sector at culebra and Marco Timon are Chief Enterprise Architect at the HQ. D. A. Office of business transformation at the U. S. Army. I'm your host Natalie ehrlich, we're going to be discussing the award for best partner transformation. Best data led migration. Thank you both for joining the program. >>Thank you for having us. >>Thank you. Glad to be here. >>Well, a lien, why is it important to have a data driven migration? >>You know, migrations to the cloud that are simply just a lift and ship does take advantage of the elasticity of the cloud but not really about how to innovate and leverage what truly the AWS cloud has to offer. Um so a data led migration allows agencies to truly innovate and really kind of almost reimagine how they make their mission objectives and how they leverage the cloud, you know, the government has, let's face it mountains of data, right? I mean every single day there's more and more data and you you can't pick up a trade magazine that doesn't talk about how data is the new currency or data is the new oil. Um, so you know, data to have value has to be usable, right? So you to turn your data into knowledge. You really need to have a robust data intelligence platform which allows agencies to find understand and trust or data data intelligence platform like culebra is the system of record for their data no matter where it may reside. Um no strategy is complete without a strong data, governments platform and security and privacy baked in from the very start, data has to be accessible to the average data. Citizen people need to be able to better collaborate to make data driven decisions. Organizations need to be united by data. This is how a technology and platform like cal Ibra really allows agencies to leverage the data as a strategic asset. >>Terrific. Well, why is it more important than ever to do this than ever before? >>Well, you know, there's just the innovation of technology like Ai and Ml truly to be truly leveraged. Um you know, they need to be able to have trust the data that they're using it. If it if the model is trained with only a small set of data, um it's not going to really produce the trusted results they want. ML models deliver faster results at scale, but the results can be only precise when data feeding them is of high quality. And let's say Gardner just came out with a study that said data quality is the number one obstacle for adoption of A. I. Um when good data and good models find a unified scalable platform with superior collaboration capabilities, you're A I. M. L. Opportunities to truly be leveraged and you can truly leverage data as a strategic asset. >>Terrific. Well marco what does the future look like for the army and data >>so and let me play off. Do you think that Allen said so in terms of the future um obviously data's uh as you mentioned the data volumes are growing enormously so. Part of the future has to do with dealing with those data volumes just from a straight >>technological >>perspective. But as the data volumes grow and as we have to react to things that we need to react to the military, we're not just trying to understand the quantity of data but what it is and not just the quality but the nature of it. So understanding authoritative nous. Being able to identify what data we need to solve certain problems or answer certain questions. I mean a major theme in terms of what we're doing with data governance and having a data governance platform and a data catalog is having immediate knowledge of what data is, where what quality and confidence we have in the data. Sometimes it's more important to have data that's approximately correct than truly correct as quickly as possible, you know. So not all data needs to be of perfect quality at all times you need to understand what's authoritative, what the quality is, how current the information is. So as the data volumes grow and grow and grow. Keeping up with that. Not just from the standpoint of can we scale we know how to scale pretty well in terms of containing data volume but keeping up what it is, the knowledge of the data itself, understand authoritative nous quality, providence etcetera, uh that's a whole enterprise to keep keeping up with and that's what we're doing right now with this, with this project. >>Yeah. And I'd like to also follow up with that, how has leveraging palabras data intelligence platform enabled the army to accelerate its overall mission. >>So there's uh there's sort of interplay between, you know, just having a technology does something doesn't mean you're going to use it to do that something, but often having a place to do work of governance, work of knowledge management can be the precipitating functions or the stimulus to do so. So it's not and if you build it they will come. But if you don't have a place to play ball, you're not going to play ball to kind of run with that metaphor. So having technology that can do these things is a precursor to being able to. But then of course we, as an organization have to do it. So the interplay between making a selection of technology and doing the implementation from a technical perspective that plays off of an urgency, we've made the decision to use a technology, so then that helped accelerate getting roles, responsibilities of our ceo of our missionary data. Officers of data Stewart's the folks that have to be doing the work. Um, when you educate system owners in cataloging and giving a central environment, the information is needed. If you say here's a place to put it, then it's very tangible, especially in the military where work is done in a very uh, concrete task based way. If you have a place to do things, then it's easier to tell people to do things. So the technology is great and works for us. But the choice to to move with the technology has then been a productive interplay with with the doing of the things that need to be done to take advantage of the technology, if that makes >>sense? Well, >>yeah, that's really great to hear. I mean, speaking of taking advantage of the technology, a lien can collaborate, help your other public sector customers take advantage of A. I and machine learning. >>Well, people need to be able to collaborate and take advantage of their most strategic asset data to make those data driven decisions. It gives them the agility to be able to act 2020 was a great lesson around the importance of having your data house in order. Let's face it, the pandemic, we watched organizations that, you know, had a strong data governance framework who had looked at and understood where their data were and they were very able to very quickly assess the situation in react and others were not in such a good situation. So, you know, being able to have that data governance framework, being able to have that data quality, being able to have the right information and being able to trust it allows people to be effective and quickly to react to situations >>fascinating. Um do you have any insight on that marco, would you like to weigh in? >>Well, definitely concur. Um I think our strategy, like I said has been to um use the technology to highlight the need to put governance into place and to focus on increasing data quality the data sources. And I would say this has also helped us uh I mean things that we weren't doing before that have to do with just educating the populace, you know all the way from the folks operators of systems to the most senior executives. Being conversant in the principles that we're talking about this whole discipline is a bit arcane and kind of back office and kind of I. T. But it's actually not. If you don't have the data to make, if you don't know where to get the data to make a decision then you're going to make a decision based on incorrect data and and you know that's pretty important in the military to not get wrong. So definitely concur and we're taking that approach as well. >>I'd like to take it one step further. If if you're speaking the same language then so if you have an understanding what the data governments framework is you can understand what the data is, where it is. Sometimes there's duplicate data and there's duplicate data for a reason, but understanding where it came from and what the linage is associated with, it really gives you the power of being able to shop for data and get the right information at the right time and give it the right perspective. And I think that's the power of what has laid the foundation for the work that the army and MArco has done to really set the stage for what they can do in the future. >>Terrific and marco, if you could comment a little bit about data storage ship and how it can positively dry future outcomes. >>Yeah, So um data stewardship for us um has a lot to do with the functional, so the people that were signing as a senior data Stewart's are the senior functional in the respective organizations, logistics, financial management, training, readiness, etcetera. So the idea of the folks who know really everything about those functional domains, um looking at things from the perspective of the data that's needed to support those functions, logistics, human resources, etcetera. Um and being, you know, call it the the most authoritative subject matter experts. So the governance that we're doing is coming much more from a functional perspective than a technical perspective, so that when a when a system is being built, if we're talking about data migration, if we're talking about somebody driving analytics, the knowledge that were associated with the data comes from the functional. So our data stewardship is less about the technical side and more about making sure that the understanding from functional perspective of what the data is for, what the provenance is, not from a technical perspective, but what it means in terms of sources of information, sources of personnel, sources of munitions et cetera um is available to the folks using it. So they basically know what it is. So the emphasis is on that functional infusion of knowledge into the metadata so that then people who are trying to use that day to have a way of understanding what it really is and what the meaning is. And that's what really what data stewardship means from were actually very good at stewarding data. From a technical perspective. We know how to run systems very well. We know how to scale, We're good at that, but making sure that people know what it is and why and when to use it. Um that's where it's maybe we have some catching up to do, which is what this efforts about. >>Terrific. Well, fantastic insights from you both. I really appreciate you taking the time uh to tell all our viewers about this. That was Eileen Black and Marco Timoner and that, of course, was our section for the AWS Global Public Partner Sector Awards. Thanks for watching. I'm your host, Natalie Early. Thank you. >>Yeah. Mm.

>>from >>around the globe. It's the cube with digital >>Coverage of IBM think 2021 brought to you by IBM. >>Welcome back to IBM Think 2021 The virtual edition. My name is Dave Volonte and you're watching the cubes continuous coverage of think 21. And right now we're gonna talk about banking in the post isolation economy. I'm very pleased to welcome our next guest. Look at wag lee is the general manager, Global banking financial markets at IBM and john Degnan is the global ceo and vice president and distinguished engineer for banking and financial services. Gentlemen, welcome to the cube. >>Thank you. Yeah >>that's my pleasure. Look at this current economic upheaval. It's quite a bit different from the last one, isn't it? I mean liquidity doesn't seem to be a problem for most pecs these days. I mean if anything they're releasing loan loss reserves that they didn't need. What's from your perspective, what's the state of banking today and hopefully as we exit this pandemic soon. >>So so dave, I think, like you say, it's, you know, it's a it's a state and a picture that in a significantly different from what people were expecting. And I think some way, in some ways you're seeing the benefits of a number of the regulations that were put into into place after the, you know, the financial crisis last time around, right? And therefore this time, you know, a health crisis did not become a financial crisis, because I think the banks were in better shape. And also, you know, governments clearly have put worldwide a lot of liquidity into the, into the system. I think if you look at it though, maybe two or three things ready to call out firstly, there's a there's a massive regional variation. So if you look at the U. S. Banking industry, it's extremely buoyant and I'll come back to that in a minute in the way in which is performing, you know, the banks that are starting to report their first quarter results are going to show profitability. That's you know significantly ahead of where they were last year and probably some of the some of their best performance for quite a long time. If you go into europe, it's a completely different picture. I think the banks are extremely challenged out there and I think you're going to see a much bleaker outlook in terms of what those banks report and as far as Asia pacific is concerned again, you know because they they have come out of the pandemic much faster than consumer businesses back into growth. Again, I think they're showing some pretty buoyant performance as far as as far as banking performance is concerned. I think the piece that's particularly interesting and I think him as a bit of a surprise to most is what we've seen in the U. S. Right. And in the US what's actually happened is uh the investment banking side of banking businesses has been doing better than they've ever done before. There's been the most unbelievable amount of acquisition activity. You've seen a lot of what's going on with this facts that's driving deal raised, you know, deal based fee income for the banks. The volatility in the marketplace is meaning that trading income is much much higher than it's ever been. And therefore the banks are very much seeing a profitability on that investment banking side. That was way ahead of what I think they were. They were expecting consumer businesses definitely down. If you look at the credit card business, it's down. If you look at, you know, lending activity that's going down going out is substantially less than where it was before. There's hardly any lending growth because the economy clearly is flat at this moment in time. But again, the good news that, and I think this is a worldwide which are not just in us, the good news here is that because of the liquidity and and some of the special measures the government put out there, there has not been the level of bankruptcies that people were expecting, right. And therefore most of the provisioning that the banks did um in expectation of non performing loans has been, I think, a much more, much greater than what they're going to need, which is why you're starting to see provisions being released as well, which are kind of flattering, flattering the income, flattering the engine. I think going forward that you're going to see a different picture >>is the re thank you for the clarification on the regional divergence, is that and you're right on, I mean, european central banks are not the same, the same position uh to to affect liquidity. But is that nuances that variation across the globe? Is that a is that a blind spot? Is that a is that a concern or the other other greater concerns? You know, inflation and and and the the pace of the return to the economy? What are your thoughts on that? >>So, I think, I think the concern, um, you know, as far as the european marketplace is concerned is um you know, whether whether the performance that and particularly, I don't think the level of provisions in there was quite a generous, as we saw in other parts of the world, and therefore, you know, is the issue around non performing loans in in europe, going to hold the european uh european banks back? And are they going to, you know, therefore, constrain the amount of lending that they put into the economy and that then, um, you know, reduces the level of economic growth that we see in europe. Right? I think, I think that is certainly that is certainly a concern. Um I would be surprised and I've been looking at, you know, forecasts that have been put forward by various people around the world around inflation. I would be surprised if inflation starts to become a genuine problem in the, in the kind of short to medium term, I think in the industry that are going to be two or three other things that are probably going to be more, you know, going to be more issues. Right. I think the first one which is becoming top of mind for chief executives, is this whole area around operational resiliency. So, you know, regulators universally are making very very sure that banks do not have a technical debt or a complexity of legacy systems issue. They are and you know, the U. K. Has taken the lead on this and they are going so far as even requiring non executive directors to be liable if banks are found to not have the right policies in place. This is now being followed by other regulators around the world. Right. So so that is very much drop in mind at this moment in time. So I think discretionary investment is going to be put you know, towards solving that particular problem. I think that's that's one issue. I think the other issue is what the pandemic has shown is that and and and this was very evident to me and I mean I spent the last three years out in Singapore where you know, banks have become very digital businesses. Right? When I came into the U. S. In my current role, it was somewhat surprising to me as to where the U. S. Market place was in terms of digitization of banking. But if you look in the last 12 months, you know, I think more has been achieved in terms of banks becoming digital businesses and they've probably done in the last two or three years. Right. And that the real acceleration of that digitization which is going to continue to happen. But the downside of that has been that the threat to the banking industry from essentially fintech and big tex has exactly, it's really accelerated. Right, Right. Just to give you an example, Babel is the second largest financial services institutions in the US. Right. So that's become a real problem I think with the banking industry is going to have to deal with >>and I want to come back to that. But now let's bring john into the conversation. Let's talk about the tech stack. Look, it was talking about whether it was resiliency going digital, We certainly saw over the pandemic, remote work, huge, huge volumes of things like TPP and and and and and mortgages and with dropping rates, etcetera. So john, how is the tech stack Been altered in the past 14 months? >>Great question. Dave. And it's top of mind for almost every single financial services firm, regardless of the sector within the overall industry, every single business has been taking stock of how they handled the pandemic and the economic conditions thereafter and all of the business needs that were driven by the pandemic. In so many situations, firms were unable to service their clients or we're not competitive in serving their clients. And as a result they've had to do very deep uh architectural transformation and digital transformation around their core platforms. Their systems of analytics and their systems different end systems of engagement In terms of the core processing systems that many of these institutions, some in many cases there are 50 years old And with any 50 year old application platform there are inherent limitations. There's an in flex itty inflexibility. There's an inability to innovate for the future. There's a speed of delivery issue. In other words, it can be very hard to accelerate the delivery of new capabilities onto an aging platform. And so in every single case um institutions are looking to hybrid cloud and public cloud technology and pre packaged a ai and prepackaged solutions from an I. S. V. Ecosystem of software vendor ecosystem to say. As long as we can crack open many of these old monolithic cause and surround them with new digitalization, new user experience that spans every channel and automation from the front to back of every interaction. That's where most institutions are prioritizing. >>Banks aren't going to migrate, they're gonna they're gonna build an abstraction layer. I want to come back to the disruption is so interesting. The coin base I. P. O. Last month see Tesla and microstrategy. They're putting Bitcoin on their balance sheets. Jamie diamonds. Traditional banks are playing a smaller role in the financial system because of the new fin text. Look at, you mentioned Paypal, the striped as Robin Hood, you get the Silicon Valley giants have this dual disrupt disruption agenda. Apple amazon even walmart facebook. The question is, are traditional banks going to lose control of the payment systems? >>Yeah. I mean I think to a large extent that is that has already happened, right? Because I think if you look at, you know, if you look at the experience in ASia, right? And you look at particularly organizations like and financial, you know, in India, you look at organizations like A T. M. You know, very substantial chance, particularly on the consumer payments side has actually moved away from the banks. And I think you're starting to see that in the west as well, right? With organizations like, you know, cloud, No, that's coming out with this, you know, you know, buying out a later type of schemes. You've got great. Um, and then so you've got paper and as you said, strike, uh and and others as well, but it's not just, you know, in the payment side. Right. I think, I think what's starting to happen is that there are very core part of the banking business. You know, especially things like lending for instance, where again, you are getting a number of these Frontex and big, big tech companies entering the marketplace. And and I think the threat for the banks is this is not going to be small chunks of market share that you're going to actually lose. Right? It's it's actually, it could actually be a Kodak moment. Let me give you an example. Uh, you know, you will have just seen that grab is going to be acquired by one of these facts for about $40 billion. I mean, this organization started like the Uber in Singapore. It very rapidly got into both the payment site. Right? So it actually went to all of these moment pop shops and then offered q are based um, 12 code based payment capabilities to these very small retailers, they were charging about half or a third or world Mastercard or Visa were charging to run those payment rails. They took market share overnight. You look at the Remittance business, right? They went into the Remittance business. They set up these wallets in 28 countries around the Asean region. They took huge chunks of business completely away from DBS, which is the local bank out there from Western Union and all of these, all of these others. So, so I think it's a real threat. I think Jamie Dimon is saying what the banking industry has said always right, which is the reason we're losing is because the playing field is not even, this is not about playing fields. Been even write, all of these businesses have been subject to exactly the same regulation that the banks are subject to. Regulations in Singapore and India are more onerous than maybe in other parts of the world. This is about the banking business, recognizing that this is a threat and exactly as john was saying, you've got to get to delivering the customer experience that consumers are wanting at the level of cost that they're prepared to pay. And you're not going to do that by purely sorting out the channels and having a cool app on somebody's smartphone, Right? If that's not funny reported by arcade processes and legacy systems when I, you know, like, like today, you know, you make a payment, your payment does not clear for five days, right? Whereas in Singapore, I make a payment. The payment is instantaneously clear, right? That's where the banking system is going to have to get to. In order to get to that. You need to water the whole stack. And the really good news is that many examples where this has been done very successfully by incumbent banks. You don't have to set up a digital bank on the site to do it. And incumbent bank can do it and it can do it in a sensible period of time at a sensible level of investment. A lot of IBM s business across our consulting as well as our technology stack is very much trying to do that with our clients. So I am personally very bullish about what the industry >>yeah, taking friction out of the system, sometimes with a case of crypto taking the middle person out of the system. But I think you guys are savvy, you understand that, you know, you yeah, Jamie Diamond a couple years ago said he'd fire anybody doing crypto Janet Yellen and says, I don't really get a Warren Buffett, but I think it's technology people we look at and say, okay, wait a minute. This is an interesting Petri dish. There's, there's a fundamental technology here that has massive funding that is going to inform, you know, the future. And I think, you know, big bags are gonna lean in some of them and others, others won't john give you the last word here >>for sure, they're leaning in. Uh so to just to to think about uh something that lick it said a moment ago, the reason these startups were able to innovate fast was because they didn't have the legacy, They didn't have the spaghetti lying around. They were able to be relentlessly laser focused on building new, using the app ecosystem going straight to public and hybrid cloud and not worrying about everything that had been built for the last 50 years or so. The benefit for existing institutions, the incumbents is that they can use all of the same techniques and tools and hybrid cloud accelerators in terms And we're not just thinking about uh retail banking here. Your question around the industry that disruption from Bitcoin Blockchain technologies, new ways of processing securities. It is playing out in every single securities processing and capital markets organization right now. I'm working with several organizations right now exactly on how to build custody systems to take advantage of these non fungible digital assets. It's a hard, hard topic around which there's an incredible appetite to invest. An incredible appetite to innovate. And we know that the center of all these technologies are going to be cloud forward cloud ready. Ai infused data infused technologies >>Guys, I want to have you back. I wish I had more time. I want to talk about SPAC. So I want to talk about N. F. T. S. I want to talk about technology behind all this. You really great conversation. I really appreciate your time. I'm sorry. We got to go. >>Thank you. Thanks very much indeed for having us. It was a real pleasure. >>Really. Pleasure was mine. Thank you for watching everybody's day. Volonte for IBM think 2021. You're watching the Cube. Mhm.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019. Brought to you by VM Wear and its ecosystem partners. >> Welcome back to two cubes. Live coverage in San Francisco, California for VM World 2019. I'm John Ferrier, Postal Cuba David Lattin, My Coast, Dave. 10 years covering the BM World Paul Maritz laid out the stack early on. We saw that and watch it go through Its motions now >> remain from the marketing people got a hold of >> that mainframe turned into cloud Now hybrid cloud seven years after we first started about 2012 has been great Our next guest, Paul Falsone, S V. P and general manager of the Cloud Native APS. This is a business unit within VM where that is going to the next level. This is the Act three is Jerry Chen said any of you I talked earlier for VM wears a company. I won't say moving up the staff because there is no stack. It's cloud, right? So its applications on top of operating infrastructure Dev ops going enterprise scale is about developers building APS operating them in scale. This is a big focus of what you're doing. >> It is a dead end of the day. One of my close friend of mine, who's in front of customers all the time, reminds our team constantly that our customers applications matter of the most cause. That's what they used to get in front of their customers with the Dillman teams and the tools they're building the user. Japs come second cause that's what supports the abs. And then the infrastructure comes third zone away. There is that stacks it, but never forget you were at the bottom of the pecking order, if you will, when it comes to ultimately bringing full customer value to our company, our customers, businesses. >> And it's one of the things we've been looking back at our 10 years covering VM where I think you're 13 15 of'em world is that the virtual ization of all very quickly around really optimizing server virtualization really kind of change. The game of one kind of knows that our knows the history there, but it did it without any code changes, too, APs and I think that was a very innovative thing. Now we looking containers and what Kubernetes is bringing to the table. You're starting to get some clear visibility into what's happening and what's possible. Could >> you >> share your vision on what that visibility is that you guys are eyeing for the marketplace in four of'em, where, >> sure, the APP development methodologies are changing, changing more today than they have in the last 20 years. We're seeing ah lot of new concepts and approaches that right now really only accessible to a small percentage of application developers worldwide. We want to try to bring those application development methodologies, practices tools to the mainstream so we can. We can touch the 13 or $14 million.1,000,000 enterprise developers around the world and help the CEOs in their line of business counterparts at our customers get a CZ much productivity out of their development teams as possible. At the end of the day, those APS we're gonna power the next decade of those organizations success or failures with their customers, and so that's becoming a real competitive asset. I've had a number of customer discussions here this week where the primary theme is how me help my developers move faster at enterprise scale, but in a regulated environment in an environment where compliance is is front center >> to big things going on in your world that we covered extensively, honestly, pretty impactful to the Vienna, where portfolio one as open source and hefty oh, acquisition half a billion dollars almost a year ago, about a year left in less than a year, probably was that we close in December last year. So yes, ovary. Just recently we know those guys all people. I mean, I've been covering that for a while, and then I'll see the pivotal acquisition. Just announced a drink from the fire hose. There be doing tons of press briefings, those to impact points, kind of leaving a mark. >> So we've been we've been building up to this. I joined AA Drink them were in 2012 through the Sierra acquisition, but I moved into this role about just about three years ago, and one of the things that we identified early on was, ah, close partnership with Pivotal was going to be essential inside of the Del Technologies umbrella for us to exist in thrive together. And so that's where the idea for P Cass was born. So the combination of V. M. R. R and D with pivotal RND focused on delivering our first community service to our enterprise. Customers we brought helped you in last year. Once they saw what we were doing and thought about the possibility of what would happen if we actually took some of the concepts of communities and p ks and embed them into V sphere, That was, I think, the real ah ha moment for for us and the happier team coming together in the power of what that could enable. But all along the way, we always believed that that was just covering the infrastructure side of the equation. You still needed to get through the making the APP developers productive and efficient in this new infrastructure world and so on to be able to do so on any cloud. And that's where the pivotal piece finally came together last just last month. July Pivotal put out a lot of information in the market around how they're evolving their portfolio to be very cool, bernetti centric, moving forward. And that was a big part about getting all the pieces lined up so that the M word could deliver what we announced this week. The in the town's a portfolio with the component tree for building running in managing modern applications on any club, >> we've kind of come full circle here, predates, and I Sarah, But you guys talking about the stack? Yeah. Paul Moretz. I used to have the whole stack. Ed actually applications up here with Simba. Spring sources around. Exactly. And then you had these when I used to call the misfit toys. Have you had some assets in the M. C as coming in Vienna, where Paul Maritz, Joe Tucci decided, create pivotal as the The platform developed next generation applications. Now it's all come full circle there. So my question is related to that stack and particularly the death part of that stack. This audience is not Deb's not, but increasingly, you've gotta attract that audience. So what's what's your thoughts there? And so >> I think pivotals done a very nice job over the years through the Con Foundry Foundation. The work they've done there through the spring community Spring is at this stage is is arguably the most popular modern Java development environment on the planet. So, you know, we're seeing a tremendous amount of leverage of that of that framework and so between the events of pimples is actively involved in Leeds and their ability to help customers, um teach their enterprise developers how to get the most out of this modern tool kit. We think that there is some wonderful ingredients to a recipe to really scale this thing up in a big way. We way. I also believe that Veum we're still has a lot to learn about what it means to best support enterprise developers and their organizations. And so we are quite a bit in learning mode right now. We're gonna take a lot of lessons from the pivotal team as we as we move forward towards the close and learn a lot more about the team in the culture and their customer engagements. But one of the things I think is is front and center to what pivotal has for customers today is their transformation Service's customers. You've got different groups inside a customer summer looking to build the newest applications. Some of them are just trying to get more operational efficiency out of what they have today. Some of these customers have 12,000 applications in their environments. Um, pivotal has ah set of service is that come in and they help them take their existing monolithic applications and just modernize key components of them so they can operate them more efficiently and reclaim a lot of resources to go do other things. That, I think is probably the lowest hanging fruit for enterprise organizations today. And I'm very, very excited about the service is that pimple has to make available the customers on that front. >> Assad and Jerry Chen, earlier than the other set I was mentioning earlier is a VC now, Greylock, big time to your one. We see former VM Where, uh, guy from 22,003. He also worked on cloud foundries in sight. We ask about the white spaces where starts to thrive in one of the transit is kind of pointing to was have some cummings going public. Some are being bought at sizable numbers, but we rift on. The idea of monitoring was a boring category right now. Observe ability, which is just be monitoring 2.0, you got I pose. You got acquisitions. I mean, major action happening in this observe ability space. I bring this up because that's an area you think, Oh, it's a white space Data opportunities for companies to build service is really points to this cloud. 2.0 application Renaissance And I want to get your thoughts on that environment. What needs to be in place to make that happen? Honestly, pivotals keep for you guys. I get that on Vienna. Where side, but for the ecosystem and for the marketplace, people trying to make careers and or do things What is that cloud 2.0, complexity that need to be abstracted away or >> so The Pepto team had a great Craig and Joe had this great, uh, one liner on kubernetes is all about where the people structure meets the infrastructure. When you think about that, our enterprise organizations have thousands if not tens of thousands of developers all trying to do similar. But a lot of cases different things at the same time, across lots of different cloud infrastructures. On the infrastructure team side, you've got private cloud, you've got hybrid cloud. You've got public cloud environments that you have to get your arms around, monitor, manage, secure and get visibility into. We believe that Carini sits at that perfect layer between the two domains on. This is a big part of why we developed Tom's a mission control. It's just that that perfect layer between the two domains, too, access the company's later and give you full visibility into what all of your developers were doing on every piece of your infrastructure. And we also think that's gonna be a very interesting place for third parties to plug into to gain access to all of the community's clusters that we're helping. Our customers managed across their app landscape to do very interesting things. And so we're really excited about the ecosystem that that project will open up. >> You think this opportunity to start ups in there? >> I do. I do. I think there's a ton of other I mean, think about it just really basic math. Ah, VM based application. When it gets containerized, it has just on the compute side alone. Never mind the networking in the storage site. There are 10 times as many moving parts. A typical containerized EPA's 10 times as many moving parts as avian bay Step. If you think about that applied to the networking layer, you think about that applied to the storage layer, the security layer. You've got 10 times as many points to secure. Now, how do you get your head around that level of complexity As a an operations person, you can't do it. Humans can't do it anywhere. You can't write down your actions. Control this on a pad of paper and know what's what's accessing what anymore, >> Dave. One more question, if I may, on the on the VM container thing, there's a debate or are architectural kind of conversation, and customers are having around when to do containers in three days on bare metal or with V EMS. How do you guys talk to that house? The >> steam going because that was my question. So there was a snarky tweets yesterday. I want to get your reaction to it. And the tweet was during yesterday's keynote. I thought we we launched pivotal so that we didn't have to run containers on V EMS. Now the reality to your point is that people are running containers on bare metal. They're running him on vehement the EMS. I don't have any data, but I wonder if you could comment on that >> so way Probably have a couple of snarky comments of our own on this three share one of the things that put up on stage. Yes, I'll start at the kind of a little little. And I worked my way up at the base layer. The testing we're doing with Project Pacific, which is something we announced this week, which is effectively bringing kubernetes into the heart of the sphere. We're actually using combinations to make the sphere better. We're also going to expose communities to our customers through V sphere, just like we exposed the EMS today. This is a pretty exciting project for the for the company in our early testing of this project, based on the advanced scheduling capabilities of the SX hyper visor take advantage of modern hardware. We're seeing an 8% better performance in a certain test sweet versus what you'd see on bare metal so are ready at the early stages. We're seeing some benefits now take that a step further. The big public college for writers out there if you look at service is like G K on Google. If you look at a ks, uh, recast on Amazon, a cast on his door, every single one of their community service is is run against a virtualized environment, not on a bare metal environment. Why is that? Well, because their customers are using containers in VM, side by side, the flexibility you get out of that virtualization layer. Whether you're a big public cloud provider or your ah smaller enterprise shop running your own data centers, the benefits are proportionate, rather equal on dso >> the narratives off a little bit. What you're saying. What I hear you saying is people use virtualization for a lot of efficiency and scale reasons that's independent of what happens with bearnaise decisions. So if you decide you want to run Cubans on bare metal, go >> to go to town. We think >> if you want to do that, >> you want to do that. But we don't. We actually see a lot of customers who have started down that path. When they go to get to that operational stage, they're realizing they're now dealing with firm where again, they're dealing with Nick drivers again. They're dealing with stuff, and they can easily take that and turn it over to their ops team that's already managing a huge virtualized state and operated with the same tool. >> That's a really a layer thing around round scale. You do the virtual ization for Ryan reasons, and then cos sits on top of it for a whole another reason. >> And the I'd say its operations scale these operations teams need to, you know, just look at the number of announcements we made this week. For an ops team to get their head around all of these new technologies simultaneously is impossible to bring them in one new capability of time into the thing that they're already operating for. That organization is very >> positive. If I understood yesterday, you're claiming better before 8% better performance relative to bare metal. I know that's apples to apples. Or what kind of juicing you're doing on the benchmark >> sex schedule that it chooses it right there. >> I want to ask you about integration and look at it as a quasi. His story of the the industry. You go back to see A with all the acquisitions, right? Historical force it with fusion. Different layer of the stack. I know. Certainly Del did a lot of acquisitions. Some of them work. Some of them didn t m c. Same thing pretty successful. Actually. VM were great engineering. Um, very strong. Go to market on really good acquisitions. My question is on integration with the nice Sarah background, I wonder. I mean, nice. Sarah seems to be very well integrated into the VM. Where platform How is integration The state of integration today within V. M. Where is it a lot easier today because we're living in this AP I economy. What about VM? Wears sort of integration ethos. One of the challenges. I wonder if you could comment and that long. So >> I've been through, uh, to significant integrations of'em where the 1st 1 was with this nice era on. I was on the I was on the incoming side, not the receiving side. The next was with hep Theo. I was on the receiving side, not the incoming side. And so, as coming into this year, back in 2012 Pat was extremely supportive and asked his entire team to be very supportive of getting us integrated quickly and productive. A CZ fastest possible. We were on campus on the via more campus from the next era office within days of the deal closing. That's how efficient Veum work. That's like that's the mindset hammerhead coming into. We were in a building. We were co located with the other networking engineers and product managers. Within the first week on, we were off to the races. That was about 100 20 person company. Hep Ko is about 100% company, Um, about the same efficiency we were consolidating. Offices were bringing them over again, mostly distributed team, but they had a center of gravity. In Seattle. We had a center of gravity in Bellevue. We brought the team's over within within a couple of months in about three months. In three and 1/2 months in, we had the team fully integrated. The organizational design done all the tools in a greater we're all in the same systems. So what happens very quickly now, an organization that's much bigger like like pivotal 3000 employees. Public company takes a little bit longer to get from Deal announced the deal close because it's too public entities. It'll take a little bit longer to do all the integration, but we're already thinking thinking about we know them so well and they know us so well. We already know where the potential landmines are, where the potential rough spots are. Pat prides himself and, uh, this pushes down into the rest of them were on well, welcoming new team members in new groups into the company. And so we try to do that really were very culturally sensitive way optimized for the right tool kit s O that we take, we take some learning like cloud health. When they came in, they had a lot of expertise around. SAS drooling and support of customers were adopting all of that, right. Were jettisoned some of our older tools in favor of some of the things that >> we're gonna win the modernization. So I want to get your thoughts on the last question for the second congratulations, your your your area. We love what you're doing. We think it's super important. Would be covering it like a blanket this year and going forward. But Pakistan came on was wrapped. Talking about 10 years and doing the riffing on the Cube are 10 years covering it. We have some 10 years forward, which waves to be on. They highlighted on the past 10 years in this ear acquisition as a critical moment to bring VM. We're into the S T D C kind of concept started networking up, so we know the history they're sti n and then going forward, he says. If you're not a networking and security in the next wave and Kubernetes is Number one, you're really gonna be missing out. So we highlighted networking, security and kubernetes. But networking. It's nice here on both sides of that 10 year spectrum. You're part of that. >> Why is that? Why is that wise >> watching people know that networking is the most important piece of the wave here? What's the relevance of what he's saying? Share their thoughts on >> Think about the increasing complexity of what at modernization drives into the infrastructure. You're getting smaller and smaller moving parts that that need to operate together at scale in a comprehensive, logical way. But at any point in time, if you're if you're an enterprise organization, if you've got if you've got compliance requirements, audit ability, requirements. If you want to protect, you hear about the number of of small towns that get blackmailed on a daily basis because someone's secured an encrypted There, there, there count taxpayer data and they're there, their victims. All right, this is this >> is some say, cyber warfare. >> It is something. So if you think about in orderto help, our customers get the most out of their developers, these tools that open up I think the potential of a lot more avenues of attack get a lot more complex. And so we think that these two have to progress hand in hand. One. We do want to help developers go as fast as possible. We won't help enterprises get the most out of those developers. That's a big part of why we brought them were into into the damn warfare. We're bringing a pivotal into the VM. We're family, but at the same time, we recognize that the infrastructure has to progress. Every bit is fast, and the network is the thing that ties all these parts together. Whether it's a layer three year layer for networking today or level layer several networking layer seven AP I based networking in the future >> all. I mean, I'm not gonna bring up I ot or industrial i ot to takeovers of physical devices, whether it's a self driving bus off a cliff or taking over towns and cities warfare, I mean the service areas of enormous networks, Internet connectivity applications over the cloud native. Anyway, we know that, right? So a lot to talk about. Thanks for coming on. The Cube Sharing your insight. Senior Vice President, General manager, The Cloud Native APS Group. This is really the key instrument with envy em where to take kubernetes and the advancement of cloud to 0.0 to the next level. I'm John for a day. Volante, be back after this short break.

>> live from San Francisco, celebrating 10 years of high tech coverage. It's the Cube covering Veum World 2019 brought to you by the M wear and its ecosystem partners. >> Welcome back. I'm Stew Minuteman here with John Troyer. We're have three days, Walter Wall coverage here at VM World 2019 with lobbying Mosconi North and happy to welcome to the program. To my right is Tom Burns, who is the senior vice president general manager of networking and Solutions at Delhi Emcee and sitting to his right. Another Tom. We have Tom Gillis, who's the S V p and general manager of networking of Security inside VM wear. So I'm super excited. Go back to my roots of networking. Tom and Tom thanks so much for joining us. >> Thanks for having us. Thanks for All >> right. So, you know, Tom, you and I have talked for years now about you know, it was not just s t n, but you know, the changes in the environment. Of course, you know, networking and compute, you know, smashing together and where the role of software in this whole environment has changed. So, you know, let's start, you know, there's some news. Let's get that cover the hard news first. VM Where has the networking pieces? Dell has some software networking pieces also, and there's some more co mingling of those. So maybe walk us through that. >> Absolutely. I think the story this week is about the collaboration that's happening between Tom's team and my team in kind of innovating and disrupting in the traditional networking world. You know, Tom Sad NSX around micro segmentation network virtualization lot going on with analytics and capability to really see what's going on. The network from Cord Out EJ to cloud the acquisition of RV, which is outstanding. Other things that are going on in Vienna, where deli emcee disrupting around the segregation of hardware and software, giving customers that capability to run the nasty need for the connective ity they need, depending upon where the network is sitting. So this week we got two announcements. One is we've got worldwide shipment of the Delhi M CST Land solutions powered by being more great, you know better than none. Software combined with better than none. Hardware coming from del you see, on a global basis worldwide, you know, secure supply chain plus professional service worldwide is a parameter there, right? >> And Tom, maybe bring us in. You know, we'd watch Fellow Cloud before the acquisition esti weigh on. You know, there's a lot of solutions that fit in a couple of different markets. It's not a homogeneous market there. Maybe give us just kind of the camp point from Avella Clubs. Esty Esty. >> Wind is a white Hart market on because it has the classic combination a better, faster, cheaper. It delivers a better end user experience. It is so easy to deploy this and it saves money, NPLs, circuits and back hauling traffic those that was, ah, 19 nineties idea. It was a good idea back then, but it's time for a different approach. >> And just when I've talked to some customers and talk to them about their multi cloud environment, SD Wind, one of those enabling technologies that you know they will bring up to a mad allowed them to actually do that. >> It was it was the movement really >> office 3 65 and sass applications that drove the best human revolution and that back hauling all this traffic to headquarters and then going out to office for 65 when a user might be in, You know, Des Moines, that doesn't make any sense. And so so with us, the win we intelligently route the traffic where it needs to go delivers a better end user experience, and it saves a bunch of money. It's not hard to imagine that cheap broadband links are on order of magnitude lower than these dedicated mpls circuits. And the interesting math is that you could take two or three low cost links and deliver a better experience than with a single dedicated circuit. >> I'm kind of interested in the balance between hardware and software, right? The family trees of networking and compute kind of were different because if they had specialized needs in silicon, so where are we now? It's 2019. Where are we now? With with line speeds and X 86 then the hardware story. >> I think it'll let Tom join the discussion around speeds and feeds is not dead, but it should be dying to get a quick right. You know, it's around virtual network functions and everything really moving to the software layer. Sitting on top of commoditized X 86 based you know, hardware and the combination of these two factors help our customers a lot more with flexibility, agility, time to deploy, return on investment, all these types of things. But I mean, that's my view is a recurring theme you're gonna hear. Is that in networking? And think you're alluding to this You needed these dedicated kind of magical black boxes that had custom hardware in order to do some pretty basic processing. Whether it be switching, routing, advanced security, you had to run things like, you know, hardware. Regular expression, matching et cetera was about three years ago that Intel introduced a technology called D P D. K, which is an acceleration that allowed VM wear to deliver in software on a single CPU. You know, we could push traffic at line rates, and so so or, you know, faster than one rates. And so that was sort of like there wasn't the champagne didn't go off in the, you know, the bald in drop in Times Square. But it's a really important milestone because all of a sudden it doesn't make any sense to build these dedicated black boxes with custom hardware. Now, general purpose hardware, when you have a global supply chain and logistics partner like Dell, coupled with distributed software, can not only replace these network functions, but we can do things completely differently. And that's really you know, we're just beginning this journey because it's only recently that we've been able to do that. But I think you're gonna see a lot more that in the future. >> So we talked about SD win. Uh, there was a second announcement >> that goes back into the court. You know, the creation of a fabric inside of the data center is still a bit difficult. I mean, I've heard quotes saying It's something like 120 lines of cli, you know, per switch. So let's say 4 to 6 Leafs pitches, switches and two spine switches could take days to set up a fabric. What we've announced is the smart Fabric Director, which is a joint collaboration and development between Veum Wear and Delhi emcee that creates this capability to tightly integrate NSX envy Center into the deli emcee power switch, family of data center switches, really eliminating several cases and in fact, setting up that same fabric in less than two minutes. And we're really happy about not just the initial release. But Tom and I have a lot of plans for this particular product and in the road map for, you know, quarters and years to come about really simplifying again, the network automating it. And then, really, our version of intent based networking is the networking operating the way you configured it, you know, when you set it up and I think not just not just on day one, but two, you know and a N and you know you hit the nail on the head. Networking has changed, is no longer about speeds and feeds. It's about availability and simplicity. And so, you know, Del and GM, where I think are uniquely positions to deliver a level of automation where this stuff just works, right? I don't need to go and configure these magic boxes individually. I want to just right, you know, a line of code where my infrastructure is built into the C I. C. D pipeline. And then when I deploy workload, it just works. I don't need an army of people to go figure that out right, and and I think that's the power of what we're working together to unleash. >> So when something technology comes up like like SD win. Sometimes there's a lot of confusion in the marketplace. Vendors going out one size fits all. This will do everything Course. Where are we in the development of SD win and what is the solution? Who should be looking at taking a look at the solution now? >> SD win market, as I said, is growing depend on whose estimate you look at between 50 and 100% a year. And the reason is better, faster, cheaper. Right? So everyone has figured out, you know, like maybe it's timeto think differently about about architecture and save some money. Eso we just announced it on the PM or side, an important milestone. We have more than 13,000 network virtualization customers that includes our data center as well as yesterday, and we don't report them separately. But 13,000 is, you know, that's almost double where it was a year ago. So significant customer growth we also announced were deployed together with our partner from Del 130,000 branches around the world. So by many metrics, I think of'em, where is the number one vendor in this space to your point it is a crowded, noisy space. Everybody's throwing their hat in the Rangel. >> We do it too. >> But I think the thing that is driving the adoption and the sales of our product is that when you put this thing in, it fundamentally changes the experience for the end user. There's not a lot of networking products that do that. Like I meet customers like this thing is magic. You plug it in and all this and streaming just works, you know, like Google hangouts or Web X is like they just work and they worked seamlessly all the time that there's something there that I think it's still unique to the PM or product, and I think it's gonna continue to drive sales in the future. So I think the other strong differentiation when it comes to Del Technologies bm where in Delhi emcee combined is we have this vision around the cloud. You know, EJ core cloud and you know this hybrid multi cloud approach. And obviously SD Ram plays a critical part as one of the stepping stones as relates toe, you know, creating the environment for this multi cloud environment. So, you know, fantastic market opportunity huge growth. As Tom said, markets probably doubling in size each year. I don't know what the damn numbers are. I hate to quote, but you know, we really feel is, though now having this product in this capability inside a deli emcee, again combining our two assets, it could be the next VX rail. We're really good way. Believe the esteem and it's gonna be a gigantic market. And I think that what's interesting about our partnership is that we can reach different segments of the market in a V M, where we tend to focus on the very high end, large enterprise customers. Technically very sophisticated, delicate, rich customers we don't even know we don't even talk to, And a product is simple enough that it works in all segments. We win the very, very biggest, and we win these. You know, smaller accounts where the simplicity of a one quick deployment really really matters. >> Tom. One of the things that excited me a year ago at this show was the networking vision for a multi cloud world reminded to be of nice syrup. React. You know, when we look at networking today, most remote network admin a lot of the network they need to manage. They don't touch the gear. They don't know where it lives, but they're still responsible. Keep it up and running. And if something goes wrong, it's there. It is the update as to where we stand with that where your >> customers are asking the question, right? So our mantra is infrastructure is code, and so no one should ever have to log in with switch. No one should have to look into a Q. And you know, we should have to be like trying to move packets from here. They're just It's very, very difficult. I'm not really feasible. And so So as networking becomes software and those general purpose processors I talk about are giving us the ability to to think about not just a configuration of the network but the operation of the network in ways that were never before possible. So, for example, we announce that the show today with our monitoring product ve realise network in sight. We call it Bernie, not always such clever with the names that were really good at writing code, Vernon gives us the ability to measure application response time from the data center all the way out to the edge. So a single pane of glass we can show you. Oh, here's where it's broken whether it's in the network, whether it's in the server, whether it's the database, that's that's not responding. And we do this all without agents, right? So it's like when the infrastructure gets smart enough to be able to provide that inside, it changes the way the customer operates on. That translates into real savings and real adoption. And that's what's driving all of this momentum, right? That 7 500 to more than 13,000 customers, something has to be behind that. I think it's It's the simplicity of automation. >> CLI has come up a couple times here, and so that's kind of a dirty word. Maybe even these days, it kind of depends on who you're talking with, I think Veum Way. Rendell both spent a lot of time and effort educating the networking engineering market and also educating the kind of data center you know, the rest of the data center crew about, you know, about each other's worlds. Where again, where are we at now? It sounds like with director on with the innocent. The NSX whole stack? Yes. Uh, the role is changing of a network engineer. But again, where are we in that? In that evolution? >> I think you know, we're early on, but it's moving quite rapidly. I think the traditional network in engineer and networking admin is gonna need to evolve. You know more to this, Dev Ops. How do I bring applications? How do I manage the infrastructure? More like a platform. I mean, Tom and I truly believe that the difference between cute and network infrastructure is really going to start to dissolve over time. And why shouldn't it? I mean, based upon what's happening with the commoditization and speeds of the CPU versus the MP use coming from Mersin silicon, it's really beginning to blur. So I think, you >> know, we're in the early >> stages. I mean, certainly from a deli, see perspective. We still, at times, you know, have those discussions and challenges with traditional networking people. But let's face it, they have a tough job. When something's not working, the network administrator usually gets blamed, And so I think it's a journey, uh, and things such as the del Technology Cloud Open networking, NSX, and now SD when it will continue to drive that. And I think we're going to see a rapid change in networking over the next 12 18 to 24 months. I talked to a number of customers that has said, You know, this journey that Tom was talking about is this is a challenge because the skill set is different. My developers need to learn software, and so what? We're working with the M where is trying t o make that software easier and easier to use it actually approach like English language. So latest versions of NSX have these very simple, declarative AP eyes that you can say, Oh, server A talk to server be but not server see, Click Don Deploy. And now, in our partnership with L, we can take that Paulson push it right down into the metal, right down into the silicon. And so so. Simplification and automation are the name of the game, but it is definitely a fundamental change in the skill set necessary to do Networking. Networking is becoming more like software as opposed to, you know, speeds and feeds and packet sniffers and more the old traditional approaches. >> Tom, I don't want to give you the final word as to Ah, you know what people should be taken away from Dell in and Veum wear in the networking space. Well, >> I think across deli emcee and in being work, there's a great amount of collaboration, whether it's the Del Technology Cloud with of'em were really taking the leadership from from that perspective with this multi hybrid cloud. But in the area of networking, you know, Trudeau. Five years ago, when we announced the desegregation of hardware and software, I am in this to disrupt a networking business and to make networking very different tomorrow and in the future than it has been in the past for our customers around. He's deployment, automation and management, and I think that's a shared vision with Tom and his team and the rest of BM, where >> Tom Gillis, Tom Burns, thank you so much faster. Having eight, we'll be back with more coverage here from VM 2019 for John Troyer on stew. Minutemen as always. Thanks for watching the Cube

>> from Mountain View, California It's the Cube covering the fifteenth annual Grow Awards. Brought to you by A C. G S V. >> Hi, Lisa Martin on the ground with the Cube at the Computer History Museum for the fifteenth annual TGS Grow Awards. Can you hear the collaboration of the innovation going on behind me? Very excited to welcome to the Cube, one of tonight's award winners from a Jaso Technologies, Norby, Jericho B and the President and CEO of Modesto. Congratulations on the Emerging Growth Award that adjuster has been honored with tonight. >> Thank you very much. We're very honored to be here. So you've been at >> the helm of a desert for a long time. I'd like our audience to hear a little bit from you about whom destiny is what you do. What makes you different. >> Perfect. So we are at a technology company on our products are used primarily in Internet of things, applications across many, many segments. Most off our businesses within the industrial segment on our customers use our products to actually build a Iot solutions for their end markets. Our products include semiconductor chips that are used at the edge of Coyote EJ gateway devices that connects the local networks to the more broad networks on. Basically, we enable our customers to take data from the physical world and send it up into the clouds >> to you guys. Our have had a great great trajectory, obviously being recognized by the emerging growth winner from a C. G S B. Tell me a little bit about it was looking at some information from you guys and on twenty eighteen, You guys did a great job of executing on your strategic initiatives to really make twenty eighteen a transformative year couple of acquisitions to us about the last year, in particular in the group that you have seen the momento and you're bringing into twenty nineteen. >> Correct? Correct. So we started. We enter twenty eighteen as a provider up application specific memory devices for I ot however, we realize that for our customers to take true benefit off the technologies we provide, we need to be a more holistic supplier of solutions. So as a result, we went through a whole process off looking at other technologies that can complement what we have in a very similar way, with strategic focus in the markets that we were focused, and as a result, we made two acquisitions in past summer that ended up its expanding our market opportunity, broadening our reach within existing customer and significantly expanding our offering portfolio to foreign markets. >> Negroes have a really strong position with tear one customers in the industrial sector. You mentioned that expecting Don't be a little bit more than about your leadership here in what makes these large industrial cheer. One players say Augusto is for us, >> right? So before I asked her that let me talk a little bit about the difference between industrial I ot and Consumer >> Riley's Yes, >> So if you think about consumer, I ot, it's what grabs headlines. It's the fitness trackers, the latest home smart thermostats, and the smartwatch is on so forth. The's are new markets. Volumes are girl very fast, but if next year and new shiny object is created, it's easy for the consumers to replace. They basically buy the new one. Repent replaced the old. One interesting thing about industrial I ot is that industrial I ot has this fragmented legacy systems that today run in their businesses. So if you look at the building we're in Today there is a fired and safety system that runs there's H Vac system that runs the business. There's a security systems, and this could have been installed here decades ago. There are billions of connected things in that industrial network today, but the data is unable to go up into the cloud. Where come cloud providers? Aye, aye. Providers can actually take the data on provide benefits to the business owners. We understand the language of industrial I ot very well because off our roots in that space. And we also understand this universe very well because of our roots being in Silicon Valley. So for industrial customers to benefit from this transformation, it's very important to be able to understand the OT world operational technology world of old days on the IT world that we're very familiar with. So with addition off these acquisitions that we've done this summer very well, positions with the building blocks that way can put together on offer differentiated solutions to our customers? >> Well, no, but it's been a pleasure having you on the queue. But the fifteenth annual acey GSP grow words. Congratulations to adjust of your whole team for the emerging growth award. And we look forward to seeing what happens this year in the space with you. Thank >> you. Thank you very much. Thank you. >> Lisa. Martin, you're watching the Cube. Thanks for watching.

>> fly from San Francisco. It's the Cube covering Google Club next nineteen Tio by Google Cloud and its ecosystem partners. >> Hey, welcome back. Everyone live here in San Francisco, California is the cubes coverage of Google Cloud Next twenty nineteen star Third day of three days of wall to wall coverage. John for a maiko stupid demon devil on things out around the floor. Getting stories, getting scoops. Of course, we're here with Sadeer has Bay. Who's the director of product management? Google Cloud. So great to see you again. Go on Back on last year, I'LL see Big Query was a big product that we love. We thought the fifty many times about database with geek out on the databases. But it's not just about the databases. We talked about this yesterday, all morning on our kickoff. There is going to be database explosion everywhere. Okay, it's not. There's no one database anymore. It's a lot of databases, so that means data in whatever database format document relational, Unstructured. What you want to call it is gonna be coming into analytical tools. Yes, this's really important. It's also complex. Yeah, these be made easier. You guys have made their seers announcements Let's get to the hard news. What's the big news from your group around Big Queria Mail Auto ml Some of the news share >> the news. Perfect, I think not. Just databases are growing, but also applications. There's an explosion off different applications. Every organization is using hundreds of them, right from sales force to work today. So many of them, and so having a centralized place where you can bring all the data together, analyze it and make decisions. It's critical. So in that realm to break the data silos, we have announced a few important things that they went. One is clouded effusion, making it easy for customers to bring in data from different sources on Prum Ices in Cloud so that you can go out and as you bring the data and transform and visually just go out and move the data into Big query for for analysis, the whole idea is the board and have Dragon drop called free environment for customers to easily bring daytime. So we have, like, you know, a lot of customers, just bringing in all the data from their compromise. The system's oracle, my sequel whatever and then moving that into into big Query as they analyze. So that's one big thing. Super excited about it. A lot of attraction, lot of good feedback from our customers that they went. The second thing is Big Query, which is our Cloud Skill Data warehouse. We have customers from few terabytes to hundreds of terabytes with it. Way also have an inline experience for customers, like a data analyst who want to analyze data, Let's say from sales force work, they are from some other tools like that if you want to do that. Three. I have made hundred less connectors to all these different sense applications available to our partners. Like five Grand Super Metrics in Macquarie five four Barrel Box out of the box for two five clicks, >> you'LL be able to cloud but not above, but I guess that's afraid. But it's important. Connectors. Integration points are critical table stakes. Now you guys are making that a table stakes, not an ad on service the paid. You >> just basically go in and do five clicks. You can get the data, and you can use one of the partners connectors for making all the decisions. And also that's there. and we also announced Migration Service to migrate from candidate that shift those things. So just making it easy to get data into recipe so that you can unlock the value of the data is the first thing >> this has become the big story here. From the Cube standpoint on DH student, I've been talking about day all week. Data migration has been a pain in the butt, and it's critical linchpin that some say it could be the tell sign of how well Google Cloud will do in the Enterprise because it's not an easy solution. It's not just, oh, just move stuff over And the prizes have unique requirements. There's all kinds of governance, all kinds of weird deal things going on. So how are you guys making it easy? I guess that's the question. How you gonna make migrating in good for the enterprise? >> I think the one thing I'll tell you just before I had a customer tell me one pain. You have the best highways, but you're on grams to the highway. Is that a challenge? Can you pick that on? I'm like here are afraid. Analogy. Yeah, it's great. And so last year or so we have been focused on making the migration really easy for customers. We know a lot of customers want to move to cloud. And as they moved to cloud, we want to make sure that it's easy drag, drop, click and go for migration. So we're making that >> holding the on ramps basically get to get the data in the big challenge. What's the big learnings? What's the big accomplishment? >> I think the biggest thing has Bean in past. People have to write a lot ofthe court to go ahead and do these kind of activities. Now it is becoming Click and go, make it really cold free environment for customers. Make it highly reliable. And so that's one area. But that's just the first part of the process, right? What customers want is not just to get data into cloud into the query. They want to go out and get a lot of value out off it. And within that context, what we have done is way made some announcements and, uh, in the in that area. One big thing is the B I engine, because he'd be a engine. It's basically an acceleration on top of the query you get, like subsequently, agency response times for interactive dash boarding, interactive now reporting. So that's their butt in with that. What we're also announced is connected sheets, so connected sheets is basically going to give you spreadsheet experience on top ofthe big credit data sets. You can analyze two hundred ten billion rose off data and macquarie directly with drag drop weakened upriver tables again. Do visualizations customers love spreadsheets in general? >> Yeah, City area. I'm glad you brought it out. We run a lot of our business on sheep's way of so many of the pieces there and write if those the highways, we're using our data. You know what's the first step out of the starts? What are some of the big use cases that you see with that? >> So I think Andy, she is a good example of so air. Isha has a lot of their users operational users. You needed to have access to data on DH, so they basically first challenge was they really have ah subsequently agency so that they can actually do interact with access to the data and also be an engine is helping with that. They used their story on top. Off half now Big Quit it, Gordon. Make it accessible. Be engine will vote with all the other partner tooling too. But on the other side, they also needed to have spread sheet like really complex analysis of the business that they can improve operation. Last year we announced they have saved almost five to ten percent on operational costs, and in the airline, that's pretty massive. So basically they were able to go out and use our connective sheets experience. They have bean early Alfa customer to go out and use it to go in and analyse the business, optimize it and also so that's what customers are able to do with connected sheets. Take massive amounts of data off the business and analyze it and make better. How >> do we use that? So, for a cost, pretend way want to be a customer? We have so many tweets and data points from our media. I think fifty million people are in our kind of Twitter network that we've thought indexed over the years I tried to download on the C S V. It's horrible. So we use sheets, but also this They've had limitations on the han that client. So do we just go to Big Query? How would we work >> that you can use data fusion with you? Clicks move later into Big Query wants you now have it in big query in sheets. You will have an option from data connectors Macquarie. And once you go there, if you're in extended al far, you should get infection. Alfa. And then when you click on that, it will allow you to pick any table in bickering. And once you link the sheets to be query table, it's literally the spreadsheet is a >> run in >> front and got through the whole big query. So when you're doing a favour tables when you're saying Hey, aggregate, by this and all, it actually is internally calling big credit to do those activities. So you remove the barrier off doing something in the in the presentation layer and move that to the engine that actually can do the lot skill. >> Is this shipping? Now you mention it. Extended beta. What's the product? >> It's an extended out far for connected sheets. Okay, so it's like we're working with few customers early on board and >> make sure guys doing lighthouse accounts classic classic Early. >> If customers are already G sweet customer, we would love to get get >> more criteria on the connected sheets of Alfa sending bait after Now What's what's the criteria? >> I think nothing. If customers are ready to go ahead and give us feedback, that's what we care of. Okay, so you want to start with, like, twenty twenty five customers and then expanded over this year and expand it, >> maybe making available to people watching. Let us let us know what the hell what do they go? >> Throw it to me and then I can go with that. Folks, >> sit here. One of the other announcements saw this week I'm curious. How it connects into your pieces is a lot of the open source databases and Google offering those service maybe even expand as because we know, as John said in the open there, the proliferation of databases is only gonna increase. >> I think open source way announced lot of partnerships on the databases. Customers need different types of operational databases on. This is a great, great opportunity for us to partner with some of our partners and providing that, and it's not just data basis. We also announced announced Partnership with Confident. I've been working with the confident team for last one place here, working on the relationship, making sure our customers haven't. I believe customers should always have choice. And we have our native service with Cloud pops up. A lot of customers liked after they're familiar with CAFTA. So with our relationship with Khan fluent and what we announced now, customers will get native experience with CAFTA on Jessie P. I'm looking forward to that, making sure our customers are happy and especially in the streaming analytic space where you can get real time streams of data you want to be, Oh, directly analytics on top of it. That is a really high value add for us, So that's great. And so so that's the That's what I'm looking forward to his customers being able to go out and use all of these open source databases as well as messaging systems to go ahead and and do newer scenarios for with us. >> Okay, so you got big Big query. ML was announced in G. A big query also has auto support Auto ml tables. What does that mean? What's going what's going on today? >> So we announced aquarium L at Kew Blast next invader. So we're going Ta be that because PML is basically a sequel interface to creating machine learning models at scale. So if you have all your data and query, you can write two lines ofthe sequel and go ahead and create a model tow with, Let's say, clustering. We announced plastering. Now we announced Matrix factory ization. One great example I will give you is booking dot com booking dot com, one of the largest travel portals in the in the world. They have a challenge where all the hotel rooms have different kinds off criteria which says they have a TV. I have a ll the different things available and their problem was data quality. There was a lot of challenges with the quality of data they were getting. They were able to use clustering algorithm in sequel in Macquarie so that they could say, Hey, what are the anomalies in this data? Sets and identify their hotel rooms. That would say I'm a satellite TV, but no TV available. So those claims direct Lansing stuff. They were easily able to do with a data analyst sequel experience so that's that. >> That's a great example of automation. Yeah, humans would have to come in, clean the data that manually and or write scripts, >> so that's there. But on the other side, we also have, Ah, amazing technology in Auto Emma. So we had our primal table are normal vision off thermal available for customers to use on different technologies. But we realized a lot of problems in enterprise. Customers are structured data problems, So I have attained equerry. I want to be able to go in and use the same technology like neural networks. It will create models on top of that data. So with auto Emel tables, what we're enabling is customers can literally go in auto Emel Table Portal say, Here is a big query table. I want to be able to go out and create a model on. Here is the column that I want to predict from. Based on that data, and just three click a button will create an automated the best model possible. You'LL get really high accuracy with it, and then you will be able to go out and do predictions through an FBI or U can do bulk predictions out and started back into Aquarian also. So that's the whole thing when making machine learning accessible to everyone in the organization. That's our goal on with that, with a better product to exactly it should be in built into the product. >> So we know you've got a lot of great tech. But you also talk to a lot of customers. Wonder if you might have any good, you know, one example toe to really highlight. Thie updates that you >> think booking dot com is a good example. Our scent. Twentieth Century Fox last year shared their experience off how they could do segmentation of customers and target customers based on their past movies, that they're watched and now they could go out and protect. We have customers like News UK. They're doing subscription prediction like which customers are more likely to subscribe to their newspapers. Which ones are trying may turn out s o those He examples off how machine learning is helping customers like basically to go out and target better customers and make better decisions. >> So, do you talk about the ecosystem? Because one of things we were riffing on yesterday and I was giving a monologue, Dave, about we had a little argument, but I was saying that the old way was a lot of people are seeing an opportunity to make more margin as a system integrated or global less I, for instance. So if you're in the ecosystem dealing with Google, there's a margin opportunity because you guys lower the cost and increase the capability on the analytic side. Mention streaming analytics. So there's a business model moneymaking opportunity for partners that have to be kind of figured out. >> I was the >> equation there. Can you share that? Because there's actually an opportunity, because if you don't spend a lot of time analyzing the content from the data, talk aboutthe >> money means that there's a huge opportunity that, like global system integrators, to come in and help our customers. I think the big challenges more than the margin, there is lot of value in data that customers can get out off. There's a lot of interesting insights, not a good decision making they can do, and a lot of customers do need help in ramping up and making sure they can get value out of that. And it's a great opportunity for our global Asai partners and I've been meeting a lot of them at the show to come in and help organizations accelerate the whole process off, getting insights from from their data, making better decisions, do no more machine learning, leverage all of that. And I think there is a huge opportunity for them to come in. Help accelerate. What's the >> play about what some other low hanging fruit opportunities I'LL see that on ramping or the data ingestion is one >> one loving fruit? Yes, I think no hanging is just moving migration. Earlier, he said. Break the data silos. Get the data into DCP. There's a huge opportunity for customers to be like, you know, get a lot of value. By that migration is a huge opportunity. A lot of customers want to move to cloud, then they don't want to invest more and more and infrastructure on them so that they can begin level Is the benefits off loud? And I think helping customers my great migrations is going to be a huge Obviously, we actually announced the migration program also like a weak back also way. We will give training credits to our customers. We will fund some of the initial input, initial investment and migration activities without a side partners and all, so that that should help there. So I think that's one area. And the second area, I would say, is once the data is in the platform getting value out ofit with aquarium in auto ml, how do you help us? It must be done. I think that would be a huge opportunity. >> So you feel good too, dear. But, you know, build an ecosystem. Yeah. You feel good about that? >> Yeah, way feel very strongly about our technology partners, which are like folks like looker like tableau like, uh, talent confluence, tri factor for data prep All of those that partner ecosystem is there great and also the side partner ecosystem but for delivery so that we can provide great service to our customers >> will be given good logos on that slide. I got to say, Try facts and all the other ones were pretty good etcetera. Okay, so what's the top story for you in the show here, besides your crew out on the date aside for your area was a top story. And then generally, in your opinion, what's the most important story here in Google Cloud next. >> I think two things in general. The biggest news, I think, is open source partnership that we have announced. I'm looking forward to that. It's a great thing. It's a good thing both for the organizations as well as us on DH. Then generally, you'LL see lot off examples of enterprise customers betting on us from HSBC ends at bank that was there with mean in the session. They talked about how they're getting value out ofthe outof our data platform in general, it's amazing to see a lot more enterprises adopting and coming here telling their stories, sharing it with force. >> Okay, thanks so much for joining us. Look, you appreciate it. Good to see you again. Congratulations. Perfect fusion ingesting on ramps into the into the superhighway of Big Query Big engine. They're they're large scale data. Whereas I'm Jeffers dipping them in. We'LL stay with you for more coverage after this short break