live from Miami Beach Florida Biman 2019 brought to you by beam welcome back to sunny Miami everybody you're watching the cube the leader in live tech coverage we like to go out to the events extract the signal from the noise and we're here at Vemma on 2019 I'm Dave Volante with my co-host this is day 2 Peter Burris and I have been covering wall-to-wall coverage with the cube folks from net APIs are here Jeff McCullough who's the vice president of Americas partner sales for net app and our good friend Keith Norby who runs alliances for net up guys great to see you thanks for coming on thanks for having us so Keith let's start with you V has been a partner of yours for a while now you guys go to market together year you have always been very partner friendly particularly when it comes to data protection but what's the state of the partnership today yeah this is something that we'd looked at a couple years ago and got into a very much more strategic relationship with veem over a year ago kind of work through a lot of ways to reconnect and establish a better together and this is something that we think is a strategic opportunity is kind of backed by a lot of the data you see at this show talking about you know organizations are gonna change roughly 60% of the organization is going to change their platform because of cost complexity reasons and together we've been working with Veeam to figure out how to deliver data protection for a data fabric and and IDC validates that in a number of ways that we can unpack here on this on the show or in the conversations with customers and and we've gotten great reaction to it and Jeff you lead America's partner sales from North America South America the whole kit and kaboodle talk more about your role sure well my responsibility is net at partners I am I'm successful when our partners successful are successful so everything I do is all around putting our partners in the position of you know executing being successful within that brand certainly being profitable right having profitable strong businesses and and growing right growing and taking taking market share and and helping them expand and grow their respective business law you guys have dramatically increased the percentage of your sales that come through the channel over the last you know 10 10 12 years yes pretty significantly and there's a fundamental part of your strategy stager at this executive level so yeah for sure you know channel is its core to what we do you know when we go to market you know with developing our products or executing our marketing plans it's all around how do we go execute with partners right whether it's the tools the partners need the pricings the programs to help them go engage in the market that leads to man generation and we're at various stages in all these but you know what I think you'll see consistently from the partners that you know certainly will talk and talk about their net businesses we generally lead in profitability across our partner base and we absolutely lead in terms of total profitability when you include things like services attached and how we go and execute on us partner delivered services strategy so you know from I always say NetApp is it's not just a product category it's a whole economy for our channel and it puts people to work it allows them to expand and grow their teams and it's it's a critical part of many many of the partners that are here today at veeneman certain v-mon and and certainly in the marketplace and your partner friendly and assess that you don't have a huge services organization that's competing with your channel i mean that's a jerk yeah we put partner services in the forefront of everything we do Keith you talked about better together yeah what does that mean just in terms of engineering integration go to market I mean how did you sort over the last two years you know get better together what specific actions were you guys taking I think you got to look at it first from kind of the customer in the markets in and you got a look at what's the dynamic that requires change right that sort of shapes what your PRD and your Mardis are to make a product in this case you know we've got platforms that have incredible snapshot technologies so to me it really starts there with simplifying the way that you get the first copy of data and then simply working with the strengths that veem has and their platforms and making sure that we have great option ality between our replication and other snapshot technologies their replication tech to be able to give a level of flexibility for this data fabric to come to life you know no matter if you've got the traditional data center that's got these enterprise apps like at sa P Hana or others or you built the next generation data center like on that FH CI and you're building up scale out via more private cloud or you've got the hyper scalar cloud you know with our cloud volumes you know we have options on how we get data throughout the copy process of primary to secondary to you know cloud and tertiary data so you know to us it was about really making that as simple and as pre-wired as possible via the api's and then really making that easy for partners to go and grab on to to make it easy for someone to buy us because you always want to build something that people want to buy no one wants to be sold any of this stuff and so building the right thing that people want to buy the next step then with Jeff and reason why is so critical to this is getting that ready for the partners be able to have an easy process with their customers that frankly they love people hate to be sold they love to buy yeah let's talk about they love to buy one of the challenges that the entire industry has is we move through the significant transformation is customers user organizations or themselves in the midst of huge transformations institutional transformations technology transformations relationship with their business transformation mission transformation just starting with this whole role that the channel is has been playing it's going to play how will the channel be an increasing source of value add in the deal yeah how's that playing out to help these customers you know smooth their changes yeah and I think you know I was just watching the news this morning right target announced their earnings and a big part of their earnings announcement was the improvement they made in customer interaction through digital platforms right the ability to order online pick up in the store or order online and have it delivered same-day right and these are and it's just you know one example you can go down the list of customers that have really used transformation to change their business right and you know Chipotle who's trans you know they've transformed burritos now and a lot of their successes come through digital transformation platforms so you know the evidence is overwhelming that digital transformation drives better results and we've done a lot of study at this right we we have lots of detail around customers that know how to use data and you know that the basic fact is one out of ten customers is in a position to actually leverage data effectively right this is all of the research we've done along you know with partners with with other companies the other nine need help and this is where channel partners come in this is what I tell partners all the time is this digital transformation wave is real the results are real and the customers need to move is is real and so they play a role in can play a role in helping customers accelerate that digital transformation and so our portfolio is all around accelerating customers and their ability to leverage data to transform their business and partners through both of the portfolio that they sell but then the partner driven services that we promote and drive you know really stand out in the forefront of being able to help a customer execute these these really tough strategies and in you know the thing that reason why customers love partners is partners bring choices right and you know for us as vendors we have to deal with the other side of that which is partners have choices and who they sell so we represent a portfolio that is forward thinking it aligns to where the market is going the lines to the tough problems that customers have and it's you know in its a position that allows partners to be profitable and and make money helping customers transform and deliver their own success but it's got to be more than just partners cat create choices and here's one explain what I mean by that it's increasingly your typical CIO medium-sized company large size company which is where we spend most of our time is thinking in terms of what is going to bring me value today and also generate a stream of value for me in the future so I need choice now but options for the future that are relevant and meaningful and so partners increasingly have to be part of that options equation how are they going to create options for customers and you know one of the nice things about the relationship that you have the theme is that you are a partner to veem and presumably you're going to help Veen customers create additional types of options through this expanding folio of value that you guys have so so talk about that dynamic because it really requires an even greater dependency on that customer partner engagement including you know the dependency the beam has on on you guys yeah doing it maybe start with just the veem partnership partnership yeah I think you know which we create the conditions with which I think a partner comes to life with what we've tried to do in in the product building solutions and then trying to develop the go-to-market around the partners ability to go meet the market and what the market is asking for in such you know the partners have natural services on the front side of the assessments a bit like trying to help you plan your 401 K they help you like see what kind of data you don't even see we have a wealth of partners that just have incredible skills there and then as they take that through our solution we do everything we can to make that process easy to match our technology to that design requirement and then afterwards the partners always have these these great capabilities for things like you know a one call or a managed service to help take even more complexity off the table for people to just live with the ability to have data protected across all spectrums of where they have data live so the partner equation is definitely getting more complicated right if you dial back you know half a decade decade you had guys who sold hardware boxes they livox sellers we love them but and they moved a lot of a lot of product and they worked with you okay now the cloud comes in you guys they're going you know software-defined so you can run your services in the cloud you know or you run it on Prem you've got hybrid so it's a complicated equation much more so than it was in the past so how are you seeing the partners evolve and transform you know beyond the sort of box selling mentality of course you know VMware specialists you get those guys at sa P maybe Oracle but yeah but it's even more than that now with cloud isn't it oh yeah yeah you know cloud is you know kind of the third big disruptive wave in the channel right if you think of kind of client-server is the big first disruptive way of virtualization the second disruptive way to now cloud just purely from a channel perspective the third big one and maybe the biggest right because it is completely changing the dynamics and the economics of how partners operate and you know and we've been looking at this for you know for a long time and certainly as we move our portfolio as we transition our portfolio to be cloud enabled and native to the cloud it creates options but but you know the market is moving from you know deal based revenue to reoccurring revenue and what I see partners moving to is various various degrees of reoccurring revenue strategies whether they're setting up their own MSP business and they're opening up shop and they're doing data protection on demand or they are doing managed services on premise and they're charging customer or they're buying out the infrastructure I'm charging a customer once a month or they're selling services in the cloud and in what I think is also interesting and you can see the kind of the direction where the industry of a channel is going is when you look at the acquisitions that partners are making not only of each other but of software development right IP there are going out and buying software development because the the the long term opportunity is not just selling the infrastructure it's selling a solution solving a big problem right which could be this digital transformation opportunity but it's it's more than just sure I can I can upgrade your servers it's their digital transformation right it is you know you know kind of clouds not really a destination right everybody thinks clouds the destination I got to get to you know it's not a destination it's a tool in the bag that you know customer is going to use and certainly a partner is going to leverage cloud to create a money stream write a business model that is sustainable and can grow but it's super dynamically different than what we do you know what they're doing today so you guys talk about profitability before you had a point go ahead and I say balance all that against I think we're the volume the mass of the volume is even though the hyper scalars have a tremendous amount of growth it is still VM based it is still kind of on-prem based and so there's still in this two-year window of change the vast majority of the opportunity is going to be on Prem but you also have to factor in how you involve the cloud and that strategy as what ratmir would called second wave right of beams strategy and we're right in the heart of that I mean there isn't any greater strength than what we're doing as a company with NetApp than what we're doing with cloud and it's just a natural way for us to extend you know a partner's capability a customer's ability to buy what they what you'd want to get from NetApp and beam together well and what the hyper scales have done is they've changed the way in which people consume technology absolutely understand and NetApp is a great case study of a company that's moving through that process from a product orientation to a services orientation the key I want to come back to this notion of how the NetApp relationship with Veen creates new classes of options for Ravine customers as they thought try to think about data protection differently because precisely because it's Dave said you have expanded your portfolio you are going to market with a different value proposition than a couple years ago how is that playing out in your conversations with customers as they think about moving from a data protection that's focused on devices to a data protection that's focused on delivery of digital services yeah well it's not a great topic to talk about where do you start with that organically I think you look at the way people try to operate and deal with the operations of data protection you know it really starts there because you know cloud is really about IT operations what we've done is really try to simplify that stack to get beyond it being one single endpoint of technology so it's not just about how we take data sets you know from say a net F as or a net of HCI and bring it through Veeam to another thousand or eseries and then off to the cloud you know it's beyond just the basic technology it's much more operational and it's in its nature so if you look at all the stuff they're talking about here with VOA and all the discovery elements that they're doing to help make it easier one of the one of the areas that IDC caught particularly in one of our benefit statements on taking complexity off the table is our ability to have autodiscover of yemm's you know it's it's ways that you could make much more autonomy and orchestration of operations kind of come to life as a way of you doing this technology together that's only just one of the example points that we have on this better together with veem taking the heart of their core technology and where they're being you know pervade of in in not just a VM centric crowd but also hyper-v and some of the other things they talked about that's kind of the top of their rationalize stack and then bringing that down through the heart of our data fabric portfolio and saying you know any one point at which you're at we were able to put these things together at the heart of the first step and we kind of mapped this customer journey out in our presentation to the attendees here was this customer journey from the current form of complexities you have you know and moving that all the way through to snapshot integration platform selection of which ones would make sense for what scenario how we work through veem x' data replication and management technologies our data replication our data fabric technologies to get from one endpoint to the other so and then ultimately you gotta be able talk about the ability to restore or you really shouldn't be talking about backup all right we got a wrap but I'm gonna ask you guys each question Jeff from trip reports so from your standpoint you talkin sales momentum with partners what are you gonna tell your colleagues and Keith obviously the partnership with Veen what what are you gonna tell your colleagues when you get back home yeah so so for me it's you know this is we've talked about transformation this you know I think our relationship with Veeam and the strategies that we're executing is all around transforming data protection right and it's really around this concept of simplification and I think as we were chatting before before we started taping the you know simple simple matters right simplification or simple is really attractive feature and you know our ability to simplify data protection for customers in partnership with Veeam deliver solution that's you know clearly world-class and you know NetApp bringing world-class technology to the table it's a great partnership it creates an opportunity for us to go and have conversations with customers that made me never thought of NetApp before and and it's you know an opportunity for us to open a lot of doors and certainly for me what I care about it's an opportunity for our partners to open a lot of doors yeah I would just say listen we worked from our joint CEOs together so George and ratmir starting this like joint bond of alignment all the way down through product solutions feel Geo's channels we're gonna have explosive growth together you know we're gonna go address this market that is looking to change we've got something we're bringing together and it's absolutely better together great power players aligning at the top all the way down through the channel to the partners into the cloud bringing you all the data here the cube Jeff and Keith thanks very much for coming on the cube keep it right to everybody Peter Burris and I will be back with our next guest right after this short break we're live from Miami at Vemma in 2019 over a pack

from our studios in the heart of Silicon Valley Palo Alto California this is a cute conversation welcome to the cube studios for another cube conversation where we go in-depth with thought leaders driving business outcomes with technology I'm your host Peter Burris one of the challenges enterprises face as they consider the new classes of applications that they are going to use to create new levels of business value is how to best deploy their data in ways that don't add to the overall complexity of how the business operates and to have that conversation we're here with Sandeep Singh who's the VP of storage marketing at HPE Sandeep welcome to the cube Peter thank you I'm very excited so Sandeep I started off by making the observation that we've got this mountain of data coming in a lot of enterprises at the same time there seems to be a the the notion of how data is going to create new classes of business value seems to be pretty deeply ingrained and acculturated to a lot of decision makers so they want more value out of their data but they're increasingly concerned about the volume of data that's going to hit them how in your conversations with customers are you hearing them talk about this fundamental challenge and so that that's a great question you know across the board data is at the heart of applications pretty much everything that organizations do and when they look at it in conversations with customers it really boils down to a couple of areas one is how is my data just effortlessly available all the time it's always fast because fundamentally that's driving the speed of my business and that's incredibly important and how can my various audiences including developers just consume it like the public cloud in a self-service fashion and then the second part of that conversation is really about this massive data storm or mountain of data that's coming and it's gonna be available how do how do I Drive a competitive advantage how do i unlock these hidden inside in that data to uncover new revenue streams new customer experiences those are the areas that we hear about and fundamentally underlying it the challenge for customers is boy I have a lot of complexity and how do I ensure that I have the necessary insights in a the infrastructure management so I am not beholden and more my IT staff isn't beholden to fighting the IT fires that can cause disruptions and delays to projects so fundamentally we want to be able to push time and attention in the infrastructure in the administration of those devices that handle the data and move that time and attention up into how we deliver the data services and ideally up into the applications that are going to actually generate dense new class of work within a digital business so I got that right absolutely it's about infrastructure that just runs seamlessly it's always on it's always fast people don't have to worry about what is it gonna go down is my data available or is it gonna slow down people don't want sometimes faster one always fast right and that's governing the application performance that ultimately I can deliver and you talked about well geez if it if the data infrastructure just works seamlessly then can I eventually get to the applications and building the right pipelines ultimately for mining that data drive doing the AI and the machine learning analytics driven insights from that so we've got the significant problem we now have to figure out how to architect because we want predictability and certainty and and and cost clarity and to how we're going to do this part of the challenge or part of the pushier is new use cases for AI so we're trying to push data up so that we can build these new use cases but it seems as though we have to also have to take some of those very same technologies and drive them down into the infrastructure so we get greater intelligence greater self meter and greater self management self administration within the infrastructure itself oh I got that right yes absolutely lay what becomes important for customers is when you think about data and ultimately storage that underlies the data is you can build and deploy fast and reliable storage but that's only solving half the problem greater than 50% of the issues actually end up arising from the higher layers for example you could change the firmware on the host bus adapter inside a server that can trickle down and cause a data unavailability or a performance low down issue you need to be able to predict that all the way at that higher level and then prevent that from occurring or your virtual machines might be in a state of over memory commitment at the server level or you could CPU over-commitment how do you discover those issues and prevent them from happening the other area that's becoming important is when we talk about this whole notion of cloud and hybrid cloud right that complexity tends to multiply exponentially so when the smarts you guys are going after building that hybrid cloud infrastructure fundamental challenges even as I've got a new workload and I want to place that you even on-premises because you've had lots of silos how do you even figure out where should I place a workload a and how it'll react with workloads B and C on a given system and now you multiply that across hundreds of systems multiple clouds and the challenge you can see that it's multiplying exponentially oh yeah well I would say that having you know where do I put workload a the right answer today maybe here but the right answer tomorrow maybe somewhere else and you want to make sure that the service is right required to perform workload a our resident and available without a lot of administrative work necessary to ensure that there's commonality that's kind of what we mean by this hybrid multi-cloud world isn't it absolutely and yet when you start to think about it basically you end up in requiring and fundamentally meeting the data mobility aspect of it because without the data you can't really move your workloads and you need consistency of data services so that your app if it's architected for reliability and a set of data services those just go along with the application and then you need building on top of that the portability for your actual application workload consistently managed with a hybrid management interface there so we want to use an intelligent data platform that's capable of assuring performance assuring availability and assuring security and going beyond that to then deliver a simplified automated experience right so that everything is just available through a self-service interface and then it brings along a level of intelligence that's just built into it globally so that in instead of trying to manually predict and landing in a world of reactive after IT fires have occurred is that there are sea of sensors and it's automatic the infrastructures automatically for predicting and preventing issues before they ever occur and then going beyond that how can you actually fingerprint the individual application workloads to then deliver prescriptive insights right to keep the infrastructure always optimized in that sense so discerning the patterns of data utilization so that the administrative costs of making sure the data is available where it needs to be number one number two assuring that data as assets is made available to developers as they create new applications new new things that create new work but also working very closely with the administrators so that they are not bound to as an explosion of the number of tasks adapt to perform to keep this all working across the board yes ok so we've got we've we've got a number of different approaches to how this class of solution is going to hit the marketplace look HP he's been around for 70 years yeah something along those lines you've been one of the leaders in the complex systems arena for a long time and that includes storage where are you guys taking some of these to oh geez yeah so our strategy is to deliver an intelligent data platform and that intelligent data platform begins with workload optimized composable systems that can span the mission critical workloads general purpose secondary Big Data ai workloads we also deliver cloud data services that enable you to embrace hybrid cloud all of these systems including all the way to Cloud Data Services are plumbed with data mobility so for example use cases of even modernizing protection and going all the way to protecting cost effectively in the public cloud are enabled but really all of these systems then are imbued with a level of intelligence with a global intelligence engine that begins with predicting and proactively resolving issues before they occur but it goes way beyond that in delivering these prescriptive insights that are built on top of global learning across hundreds of thousands of systems with over a billion data points coming in on a daily basis to be able to deliver at the information at the fingertips so even the virtual machine admins to say this virtual machine is sapping the performance of this node and if you were to move it to this other node the performance or the SLA for all of the virtual machine farm will be even better we build on top of that to deliver pre-built automation so that it's hooked in with a REST API for strategy so that developers can consume it in a containerized application that's orchestrated with kubernetes or they can leverage it as infrastructure eyes code whether it's with ansible puppet or chef we accelerate all of the application workloads and bring up where data protection so it's available for the traditional business applications whether they're built on SA P or Oracle or sequel or the virtual machine farms or the new stack containerized applications and then customers can build their ai and big data pipelines on top of the infrastructure with a plethora of tools whether they're using basically Kafka elastic map are h2o that complete flexibility exists and within HPE were then able to turn around and deliver all of this with an as a service experience with HPE Green Lake to customers so that's where I want to take you next so how invasive is this going to be to a large shop well it is completely seamless in that way so with Green Lake we're able to deliver a fully managed service experience with a cloud like pay-as-you-go consumption model and combining it with HPE financial services we're also able to transform their organization in terms of this journey and make it a fully self-funding journey as well so today the typical administrator of this typical shop has got a bunch of administrators that are administrating devices that's starting to change they've introduced automation that typically is associated with those devices but in we think three to five years out folks gonna be thinking more in terms of data services and how those services get consumed and that's going to be what the storage part of I t's can be thinking about it can almost become day to administrators if I got that right yes intelligence is fundamentally changing everything not only on the consumer side but on the business side of it a lot of what we've been talking about is intelligence is the game changer we actually see the dawn of the intelligence era and through this AI driven experience what it means for customers as a it enables a support experience that they just absolutely love secondly it means that the infrastructure is always on it's always fast it's always optimized in that sense and thirdly in terms of making these data services that are available and data insights that are being unlocked it's all about how can enable your innovators and the data scientists and the data analysts to shrink that time to deriving insights from months literally down to minutes today there's this chasm that exists where there's a great concept of how can i leverage the AI technology and between that concept to making it real to thinking about a where can it actually fit and then how do i implement an end-to-end solution and a technology stack so that I just have a pipeline that's available to me that chasm you literally as a matter of months and what we're able to deliver for example with HPE blue data is literally a catalog self-service experience where you can select and seamlessly build a pipeline literally in a matter of minutes and it's just all completely hosted seamlessly so making AI and machine learning essentially available for the mainstream through so the ontology data platform makes it possible to see these new classes of applications become routine without forcing the underlying storage administrators themselves to become data scientists absolutely all right well thank you for joining us for another cute conversation Sandeep Singh really appreciate your time in the cube thank you Peter and fundamentally what we're helping customers do is really to unlock data potential to transform their businesses and we look forward to continuing that conversation excellent I'm Peter Burris see you next time you [Music]

live from Las Vegas it's the cube covering Adobe summit 2019 brought to you by Accenture Interactive okay welcome back everyone so cubes live coverage here in Las Vegas for Adobe summit 2019 I'm John ferry with Jeff Frick our next guest is Jim LaLanne CX orchestration practice lead at Accenture customer experience engine welcome to the cube Thank You Forex for joining us customer experience engine CX e CX a yes that's your product I should we work on what's the importance of that what's the big deal so the big deal is there's a proliferation of technology in the world and and one of the main challenges is everything's silent everybody has a different lens when you talk to the sales folks they have a view of the customer when you talk to marketing day of you nobody ever talks and the problem is when these organizations they think technology is the answer so and one of the things that we're always asked inside of the Accenture interactive is well how do you bring all this stuff together and we kept getting asked the same question over and over and over again and so finally we decided you know what let's do something about it let's make this so that you move the discussion away from technology and how can you accelerate your transformation and use something like CX e to bring that to life Jim you've been a pro in this business know digital back we're gonna you're mister you've seen many ways of the hype and the reality you know the titles of customer success man and your orchestration practice manager you know we're relevant but now more than ever those actually means something look at orchestration that's a big term used in cloud computing around orchestrating workloads customer success that's the theme of the show sure experiences so now more than every we're starting to see some visibility into tech implementations to hard problems that were being tackled by pioneers on the bass now in front and center here how do you summarize that that market right now because do you believe that to be true and what is that visibility what are people looking at right now and then what's behind it well for far too long it was always about the technology providers themselves or the in the cusp who are our customers the organizations that hire Accenture to help them transform but what we've seen is just a complete seismic shift it's all about what is the customer or the consumer one it's not about what we as organizations want it's about what the consumers want so we do very much see that as a trend that's moving and in in order to do that you really need to decouple your systems of engagement from your systems of record and by doing that it allows organizations to experiment so there's new technology coming in everyday probably while we're sitting here at least a hundred others have come to life yeah but it becomes hard because when you're always having that technology come into play how can you plug it into your own ecosystem to let the consumer get done what they want to get done on their terms because that's their expectation they don't really care what your internal problems are they just want to be able to get done what they want to get done and if they can't with you it'll go somewhere else so the practice what you're seeing is the practices have an environment that allows you to try stuff yes without a lot of hurdles and you know integration yeah so the standard thing would be any time an organization wanted to try a new product it could take anywhere from 6 12 18 months just before they could even figure out does it work what we're trying to do with cxe is turn that into a matter of weeks in some cases in a matter of days so by having a platform or a capability set up so as a new application comes in great I already know about the customer information because I'm making that transparent to everything I can plug it in I can experiment I spend a month I measured does this actually work if it doesn't great get it out let me try the next thing so it gives that flexibility to organizations which marketers love because the last thing you want to do is tell us CMO is like that idea you have that's great that's what really agility exactly come talk to me in nine months different now in terms of the people process and technically been talking about 360 view of the customer is short for donkey years right so what's now is different is it just a perfect storm of some of these things finally coming together is there some particular process or kind of secret sauce to get us over this you know finally we're here you know we can finally get that view of the customer one of the things that that started to happen was you started moving the I the idea and the concept of a single view of a customer out of back-end master data management legacy hard really complex applications and with the poll earlier for Asian what they call customer data platform CDP's there are applications that are built natively in the cloud that are exposed through api's it makes it easier to stand up those capabilities so it really starts becoming a question of well why wouldn't you do this so in the past it would be well I gotta go get capital expenditure money and I gotta go through this whole business justification now it's I can have something stood up literally in a matter of Miss villains which is purpose-built and it gives you that capability to then plug in place so that gives especially for us as system integrators it makes it exciting for us because we can say you know what I can stand up a single view of your customer I can be couple that from the sales force the Adobe's the Marketo we are the world up that would never built for that right that's not their expertise take a minute to explain what is the customer experience engine the CSE what is it so in essence it's the plumbing it's all the stuff that nobody ever wants to do that always destroys transformations so again this was one of these things where every single transformation you had ever seen I don't care pick your vendor Adobe s AP Microsoft where they always fall down is in integration it's just it's just the nature of the business so what we did with CX II was we said you know what what I want to be able to do is I want to have a micro services based architecture that allows me to if I have a client telling app one week I can plug that in three weeks later I want to use something like tulip I'm going to unplug what I have I'm going to plug tulip in but the experience that the consumer sees on the glass it doesn't change so when I'm writing a mobile application I'm going to use the experience API what sits underneath it and this is what CXC provides is that system API layer to then say you know what I'm going to unplug tulip I'm going to plug in something else the consumer is done to what it's like it's like a Tesla versus a car there's all the software updates going on behind the scenes changing the configuration of the automobile yeah similar experience you're gonna automate creating mechanisms so that the application the workload for the user is not disrupted by you're making modifications under the hood so to speak well think of it this way so and we'll go with the car analogy which was probably why with the engine engine mechanism but I was explaining it to another another gentleman and he said he's like you guys are like to pimp my ride of ID I'm not changing my engine what I'm doing is I'm adding a spoiler here I'm adding new tires and rims here I'm you know putting on you know flames I'm doing all these things but the underlying engine or the heartbeat of the engagement that stays the same what you're enabling me to do as a business is tailor and adjust based on consumer expectations so if today they really want to engage with us with email next week it's through a RvR I they have that ability and I don't have to completely retrofit my entire IT architect and this is the modern approach that we see people that are winning take a take a certain formula and that is build software abstractions in their areas of expertise so here if I get this right the the CXC the customer experience engine is essentially your domain knowledge of the center interactive extract it away to make it easier for the vendors to work through your system yeah so you solve your own problems but unstop being a customer benefit right because what we firmly believe the hard part in a digital transformation is not the tech which is easy for me to say because I'm the propellerhead in the room but to me it's it's a much more fascinating conversation to say how do we transform your people and your process to be customer centric that's actually the hard part it's not the tech so by taking the tech difficulty off the table then that allows them to jumpstart and get to the actual meet of changing how they operate and the other piece of that which i think is ensuring you didn't touch on that specifically but I'm I'm sure it's got to be there is it democratizes the access apps and the ability to do things with that data to the people that aren't necessarily tied into the ERP and tied into these other systems so you can now have other people running out algorithms doing tests doing experimentation so really that democratization is so important well it's amazing the empowerment that you give people when you just provide transparency of the data so when when the sales staff if the retail rep in the store all of a sudden has transparency of what have been the engagements that have been going on with the consumer they can have a meaningful conversation and they're focused on how can they help that consumer in that moment so we look at it as you know the last moment that you engage with a consumer is usually the most telling because typically you are 20% more likely to maintain loyalty if it's a positive you're only four percent likely if it's negative yeah and if anything you will lose 32 percent of your population on one bad experience so you look at your thoughts on the vendor relationship and that's so much locking because I think lock-in is really about value you do a good job you get value because we will use you but with cloud tick tools and api's are becoming a very key part of the tool chest if you will for the users and your customer base and so we're seeing that the skills gap and the retraining that's trying to happen tends to focus on api's and tools so Amazon's got a cloud everybody's no one wants to learn ten different tool sets right how do you view that because I think we hear from practitioners all the time and they always say you know I just want it to work I want infrastructure as code I love DevOps I love agility but I don't want to learn all these new tool sets all right but I'm comfortable with this cloud I'm comfortable with this these kinds of tooling tool chains or api's how do you see that evolving is that going to be automated away will it be innovation there what's your thoughts there so my general feeling is I think you're going to continue to see more and more consolidation of adoptions in the rest based API space just because one it's easier on developers and developers win so if you make a developer's life difficult they're just going to move to something else so for the organizations that embrace that they're gonna continue to see that you will you will start to see more and more automation but I mean ultimately at the end of the day the economy that we work in runs off of api's and it's really the more you embrace it the more you share information are willing to share information within reason I mean there's you know legal and all sorts of things that have to have to be looked after but you know that's what that's what drives things so we as Accenture we look at application partners that embrace that methodology embrace that belief system of let's make it easy to share data that's one of the things that you know Adobe Microsoft and sa P are doing what the open data initiative is also trying to make it easier to share information amongst different stacks so it's a it's a variation of that and I I do believe that you're gonna continue to see more of that just because again the consumer that's what they expect and also the cloud native trend also that's a tailwind for that movement as well because they expect it to short standards I mean to a certain extent if you think about what's even cloud native it anymore cuz a lot of times people say well I'm on Fram well where are you I'm from ma well I've got my virtual cloud sitting over here or my privacy it's just distributed computing all right what's getting you excited here at Adobe summit I mean I'm impressed with the platform play I think they got that right I think they didn't over reach its laid out nice single view the customer got the data pipelining and semantic engine on the on the other side of it and a variety of app integrations looks solid to me what's your thoughts on Adobe I think it's a good first step to be fair I think it's a good first step I actually applaud them for for going down that path I'm excited about the possibilities it gives to our customers who are embracing the Adobe stack I'd like to see them go further especially with in terms of extending it out to other partners as well because it's one of those things of there's no one platform that solves everything that's a large reason why we established cxe is the days where you could just have all Adobe and that's going to solve everything across they'll service marketing and commerce that's there's no one provider that has that so you need to have that ability to transfer data and to drive that experience so I'm excited about where Adobe's going with the experience platform because I think it's a good first step especially on their side to try and make it easier again it's about how do you make it easier to deploy applications so that you can serve the purpose for the consumer so I think it I think it's a good first I would you describe the makeup of the ecosystem community breaking down from developers to integrators and partners because as you start to see this kind of enabling platforms as you said it's a first step is foundational you'll see how it kind of evolves sure ultimately developers will to me will be a canary in a coal mine on this one but how does has the makeup of the community on the development side what did what it's the personas are the developers the hardcore cloud guys are they mostly app developers is there some segmentation what's your view of this I think so what I'm seeing is developers turning more into cross utilization of skills if there's there's less and less of I'm just this type of developer it's usually more of I'm gonna experiment and do a little bit of everything what I've actually been finding interesting is a lot of developers are turning into people that sit in marketing or sit in sales operations or you know some people have turned it citizen integrators but it's people who do not come from a technical background but the tools that are being created today are enabling them to do more of the integration work on their own and that's one of the benefits when you have open API is recipes api's is you can put more of that power in the hands of less technical users there's that's not to say you're not going to ever need hard for developers but what I'm seeing is more and more non-technical people are getting into the developers of time cycles are changing they want to be closer to those customers that the closer to the front line is not in the back office kind of coding away right you just you don't with with consumer expectations shifting on a dime you can't wait and that's one of the things that we spend a lot of time trying to help our IT side of the house customers is how to be flexible how to be nimble so that when marketing where any business leader comes to you and says hey I want to try this out you don't say I'll get back to you in nine months it should be I'll get back to you next week yeah and that's really the goal of what we're trying to do with new titles we had a guest on the queue we've been doing the queue for 10 years first time we've ever had a guest with a title marketing CIO which was kind of business saying look I got I got to sit in the marketing team and be a CIO over here and translate and put projects together and make things happen to your point about it's an integrator kind of like putting it all together well I mean it's no different than you see more and more CIOs become much more business focused business savvy they're not just hey I'm going to keep the lights on from a technology perspective the the more successful CIOs have that business lens no different than the CMO the CMO czar having to get smarter on technology and a lot of times what we're saying is the CMOS are driving the tech agenda not the CIOs so as a result I'm not surprised to see I'm the would you say was a marketing CIO Marketing CIO thanks for the insights great to have you on yeah I think get the talk tech and under the hood marketing text great final question for you what's next for CXC customer experience engine what's going on what's the next leg of the journey for you so the next leg of a journey is we've already got the integration layer laid out so we can pretty much plug-and-play any application that is out there we're really diving into real time analytics real time segmentation taking some of the power of the capabilities that are in the CDP space to drive those engagements so it's really it's it's an expansion and then that data space and making it that much more accessible to our customers that's great you guys bring some abstraction some automation to the table for customers it's a cube bringing you all the data here and insights I'm chef Fred chef Rick stay with us more day 2 coverage after this short break

from Orlando Florida it's the cube covering si P sapphire now 2018 brought to you by net app welcome to the cube I'm Lisa Martin with Keith Townsend and we are in Orlando Florida that sa piece a fire now 2018 or in the net out booth really cool sa piece a fire is an enormous event this is like the 25th year they've been doing it and it's been really interesting to learn Keith about sa P and how they have really transformed and one of the things that's critical is their partner ecosystem so we're excited to welcome back to the cube a cube alumni Paul Young who is the director of sa P go to market from Google platform Paul it's nice to see you thanks so what is the current news with Google and sa P so you know I think we're making a major push into this three Marquette I think the the yesterday's announcements are we all still have a four tire buy on a server online but we also brought up capacity all the way up to 20 terabytes so we really can handle pretty much all the customer base at this point so on the one end that's good there is however a lot of other stuff we're doing in the AI space in the joint engineering space with SCP and and a lot of work we're doing in the make it a lot easier for SUV customers to adopt the cloud right and and beyond just what's happening a lot in the market right now which is you know 80 percent of the customers who mu and s pieces in the cloud just do straight lift and shift so there's no for momentum with a it's just ticking the box you're in the cloud we're doing a ton of work in engineering on our own and with SCP right now to make that a much more valuable journey for the customers so yeah I don't wake up in the morning at Google and think what am I going to do today it's you know it's a there's a lot of stuff going on so Paul let's not be shy that we've had you on the cube before and your ear s AP alone and as you look out at the hyper scalars the big cloud providers s ap more or less has a reference architecture for how to do cloud how to do s AP and a hyper scale of cloud but it's not just about that base capability when I when I talk to my phone I love asking Google questions when I look at you know capabilities like AI and tensor flow and machine learning that gets me excited just in general what as you looked out at the Haifa scalers what excited you about Google is specific as you we were s ap work to fall 3 so what's so exciting about Google I did I joke internally I was I was a customer of recipes for seven years I did 20 years of SVP and and yeah and and then woke up one morning and decided to go to Google yeah I do I get this question a lot on the yeah my conversation always is it wasn't based on the cafeteria food there are other things to join me across it seriously cuz in my last roll at scpi I was working with all three the hyper scalars and one of the questions I always got from SCP people is well they're all just the same right or and when you actually work with them you discover the are different and that's no disrespect to anyone but they approach the world differently they all have different business models and and the Google thing that really put me is that the the kind of engineering and the future focus was just tremendous right this other girl could do was was immense and so I said I'll jump forward to the future and then will come back but just if you look at the investment school was making in AI and machine learning all the stuff we were order a Google i/o with the the you know custom-built testable computers that can just do an amazing performance greatness or but it's got to be applied right so so things that partially built with Deloitte it's a deletion of the demonstration for it but just to give an example of where we think the future is we build a model in Nai where we have we basically two invoices and we taught the AI system to do data entry and SCP so that's not an interface we didn't say hey here's an invoice and here's all the fields and we map them all across and here's ETL and here's other things we do right here's our interface mapping we literally said imagine you're an AP processor how do you enter an invoice and you give it detail universities and it spends a lot of time doing really stupid things trying to put addresses in the number field of someone else and then suddenly it works so how to enter an invoice and at that point it knows how to enter an invoice and then what you do is you give it more and more invoices or more and more different structures and it learns how to what an invoice is and it learns how to process that and then suddenly it can do complete data entry right so we build as a model this is sort of thing Google does just to test the limits Deloitte came along and said well that's really cool could we actually take it and run it as a product and so the light now has that in there there are engineering further out where literally you can give it any invoice it will it's not OCR it will look at the invoice and it will work out that is an invoice where all the bits you need are from it it will then work out how you would do data entry on that into an SUV system and it will enter the invoice that's a future world where I know SUVs already launched the I our own doing three-way match interesting we're talking about future won't where your your entire accounts payable Department is a Gmail inbox where they mail you invoices that you've never seen before but we're able to understand what a vendor is grantee as a vendor guarantee is not fraud checked and do the deed to entry completely automatically that is the massive new world right and that's just a tiny little bit of what we can do at Google we have it just pretty also we haven't demo running on the booth where we have tensorflow looking at pure experience pharmaceuticals right right we have we have a demo run on the booth which is a graphic of someone we're actually running at customers where we have a camera reading pharmaceutical boxes as they go past or their pinky perfect curlers in this case but it doesn't just look at the box and say I count one box it reads the text on the box but it reads the text in the box was in noise from STP was supposed to be manufactured and it comes back and says well am I putting double-strength pills and single side boxes is this most legal have I mean sent the correct box is it you know is the packaging correct it also knows what a good box looks like and it learns what a damaged box looks like a nice packaging looks like an it knows how to reject them and again that level of technology where we can monitor all of your production lines and give you guarantee quality and pharmaceuticals anywhere else tell me six months ago anyone even imagined that was possible we're doing that right now all right that that ability to work with SCP because it's all integrated with SCP we're doing Depot of efficient that ability to deliver that sort of capability at the speed we deliver that is world-changing right well you know one of the things that I just kept imagining as you gwangsu the description of invoicing thankee was on a run of the day I'm a small business owner and these things are troublesome like you get in an invoice and I'm thinking you know I got a deal my my wife does the Council of payable accounts receivable I'm like there has to be a way to automate get but then I thought about just those challenges like you get one person says an invoice that the invoices at the bottom right hand corner the the invoice numbers on the bottom right hand corner the the amount due etcetera etc just really silly questions that AI should be AI machine learning should be able to deal with build mederma yesterday on stage says that AI should all been human capability and that's a great example of how a I augments you might take a bit and it doesn't in the AP example it doesn't do a hundred percent correct all the time right it knows what it's wrong in the example of Joey runs your seat comes up and says the dates wrong here I need to fix it so it's taken the it's taken the menial work out of the process and it's lighten people really add value in it but it's also a great example of the cloud at work and what it's supposed to do right again if all you do is take official SCP and drop it in the cloud you're just running in a different place if you get to a world where with Google we we don't expose your data to everybody else but we understand what the world's invoices look like and we have that knowledge and we make the entire world more efficient by having the model know how to work that's a radically better place right and that's that's that's there's just never been that value prop before and that's it's a great big exciting thing to wake up in the morning to think that's what we do right so Lisa in the industry we have this term that data has credit I think it's fairly safe at the this week we can say that processing technology compute has gravity it's we had another guest on it says that they use a process and a technology in solution and one customer works out fine and another customer not the same results it's this complexity is this kind of dish 'part of technology that is just not easy to apply across across companies so the other part really quickly that I want to talk about is you know this isn't just about AI right it's not just about the future I mean one of the key in me I said I'm a long-term HCV customer I work a lot of customers everybody wants to get to the cool bit you know and though I always used to joke internally everybody wants to eat candy they're ready vegetables first right and so we better get you across or you can candida vegetables whichever way you've got to eat both there's some point right so um so look just getting customers into the club becomes one of the challenges it's one of the other areas where we're really applying engineering so I'm three weeks ago we bought della Strada as an example Villa Stratos is an amazing company what well so it does basically it's a plug into VMware you drop it into VMware and it watches your SUV systems running it profiles them and it works out what size capacity you're going to need in the cloud at the point where it's then got enough information it'll basically ping you and say hey I know no I'm not a machine do you want exactly the same performance at lowest price in the cloud or do you want better performance here's two configurations pick the one you want give it your Google user ID and password it will build the security build the application servers and begin a migration for you automatically depending on the timing demand the size the box between 30 minutes and two hours later you will have a running version of your SCP system in the closet never been done before that's been performance the way it works basically it's a bit a little bit of magic but it knows how much what's the minimum amount of data we need to ship across through NSEP it knows where all the data is hidden on the box on the disk then sdb needs to run and it just ships that first and then it fills in the gaps afterwards the repair mechanism so from there on the one hand you could do lists and share and frankly our competitors have been using it to do lift and shift in the past it over some a ton of potential right for a bunch of customers we can replicate their production boxes in real time and give them 30-second RPO RTO in high availability but that done but it's like that I can now take that replicated image and I can run operations on it I can run tests on I can run QE rebuilds were you because of the Google pricing model you don't pay me in advance you pay me in arrears for only the computer time that you use so you are a QA system you've got two days worth of work to rebuild it don't shut down your QA system pay me for two days rebuild and you're done or we have integrated it directly into the SDP upgrade tools so you can pipe across your system to us and we will immediately do a test upgrade for you into s4 HANA or you see us rocky or BW an Hana whatever you want I have a customer in Canada who really jumped from ECC e6 and hazard by 5 to s4 Hana using an earlier version of the tools in 72 hours with a lot of gaps to look at in between we reckon we're gonna crush that down into under 24 hours so under 24 hours we can you can literally click on an SUV server and we will not just bring you to the cloud but we will upgrade you all the way to the latest version and we we have all the components we've done it we're pushing that through right and so what we're doing now is taken the hard work and automating that so we can get to the really cool stuff in the eye side right that's way again this is where all of us for all the hyper scalers hosts you know SV systems we want to do something that's better than that right we want to make it easy to get there but we know that in order to justify what you do we're all have seven your room app 2x or hard on right so we want to make it really easy to do that and we want to make it incredibly easy to add in AI and all the other technologies along the way that's a DES and a pricing model that nobody will be right and that's that's a pretty cool place to be I'm mighty glad to be a good place I could tell by your energy so ease of use everybody wants that you talked about just the example of invoices how they can vary so dramatically and you know whether you're a small business owner to a large enterprise there's so much complexity and and fact that was one of the things that was talked about it was this morning well yeah when how so plot I was even talking about naming conventions and how customers were starting to get confused with all of the different acquisitions SAT has done so a I what Google is doing with AI on sa piece sounds like a huge differentiator so tell us as we wrap up here what makes you know in a nutshell Google different than the other hyper scale that s AP partners with and specifically what excites you about going to market with s AP at the base level your Google's just on a different scale from everybody right we are effectively put 25% of the internet if you look at our own assets we we own dark fiber that's equivalent to about 4% of the entire caballo sorry four times the entire capacity of the Internet right MA so my ability to deliver to those customers at scale and up performance levels just unchallenged in this space so you know it's a Google clearly is excelled in a lot of different areas it's been credibly starting to bring that to SVP and carry through but you're right that the the the value add ultimately isn't just the hey I can I can run you and I can run you better write the value add is so March we announced direct innovation rihana and Google bigquery when you're talking about bigquery right massive datasets that you can know Bridge to Hana if you're a retailer this is one last example I can now join all the ad tech data Google has so I can tell you all the agile currently run in Google once we march was being viewed anonymized in clusters so you can't tell the original consumers but I know that data and directly worded to bigquery and I can join at stp so I can now say you are advertising in this area let's being clicked on but I know you don't have the inventory to actually support the advertising so I want you to move advertising somewhere else right and so I can do that manually rename when I had any I to that the potential is is incredible right we've only just started so ya know next time I want the cube we'll see where we're at but it's a it's a fun place to be speaking the next time gasps have a conference coming up Google next is coming up at the end of July yeah it's we have a lot of announcements through probably the rest of the year right there's a lot of stuff going on as we come to massive scale in the SUV space so yeah anyone who's interested in this stuff especially even if you're just interesting the I stuff Google next is the place to be so sounds like it I'm expecting some big things from that based on what you talked about on how enthusiastic you are about being at Google Paul thanks so much for joining Keith and me back on the cube and we look forward to talking to you again Thanks thank you for watching the cube Lisa Martin with Keith Townsend @s AP Safire 2018 thanks for watching

hello everyone welcome to the cube conversations here in our studio in Palo Alto California I'm John Faria co-host of the cube co-founder Sylvania media special guest today inside the cube in Palo Alto Steve Lucas the new CEO of Marketo formerly of sa P industry veteran a lot of experience in the enterprise space now the chief executive officer at Marquette Oh welcome to this cube conversation great to see you yeah great to see you again so Marketo has been on our radar spent on everyone's radar it's been one of the hottest marketing companies that have come out of this generation of SAS what I call SATs cloud offerings and certainly as burn burn in the field in terms of reputation in terms of quality high customer scale a lot of other companies have been bought out you see Oracle doing a lot of stuff you got Salesforce the SAS business is booming oh yeah and you have a rocket ship that you're now the CEO now for two months first question what's it like here now compare a CPA yeah Marketo what's it what's happening well it's I mean s if he's a fantastic company and loved it it's the the the kind of metaphor I've used is it you know with sa P it's it's a bigger it's a bigger vehicle you're driving a bus and you can carry a lot of people with you takes a little bit longer to make a u-turn Marketo is a Formula One car I mean this thing is just in and out of traffic and it's it's unbelievably nimble so it's it's been a big kind of shift culturally but absolutely love it for the folks that are watching you might not know but Steve was in the HANA analytics president of that division with ASAP which was a real interesting transformation because Hana and and and s ap was a traditional big enterprise software company yeah but had to move very quickly Hana was basically built before Hadoop was even conceived and it was built before the big cloud explosion but kind of well built for the cloud so you have to kind of move quickly oh yeah from scratch into the cloud oh yeah with sa Pease resources yeah so compare construct contrast butBut your expense from sa p what is Marquette O's prospects I mean what's going on there I mean I'll see you got a formula speedboat but the big aircraft carriers are thrown pretty big wake they are how are you gonna maneuver yeah yeah well it's it's a fascinating environment right now because you know going from us if he I'd say that my experience they're kind of highly tuned me or prepared me for what I'm doing in Marketo si P had to move nimbly at the time really nimbly you're entering a market where you've got oracle microsoft at a database level they're the incumbents they own massive share how does si penetrate that but we were successful at the time at sa p and i loved that experience coming into Marketo really i mean it's a couple things one is you got to out-innovate the competition this is not rest on your laurels and wait for the release a year and a half from now that doesn't happen so this is about moving quickly but the second thing it's about I believe is it's all about putting the customer at the center of your strategy they have to drive everything I've talked to more marketers more CMOS in the last two months than I have in my last 20 years putting them the center is all about that Marketo their heritage was marketing solutions built by marketers for market what are the people saying you made with a lot of those CMOS more in the past since the past two months what are they saying what's on their agenda what do they care about what's important to them brand revenue and impact they want to know how do I Drive my brand how do I drive revenue and how do I show that impact to my CEO the board whomever it may be but the thing that scares marketers right now the most is what is digital transformation changing relative you know the big trend in macro trend globally how is it changing buyer expectation how is it changing the customer brand relationship that's top of mind Peter Paris who heads up by research for wiki bond and he used to do the b2b practice at Forrester around digital and stay Volante now we're talking yesterday that digital now is everything right so if you look at digital it's not just oh marketing need some tools to send emails out or oh I need to get a website up call IT up and provision or landing page this is now a fabric of pure infrastructure yet the infrastructure was built in the web days and you can go back to your business object days and go back again even back in the 90s that infrastructure now is so hard and as instrumentation there's no agility so that I feel that and we here in our in our teams and our customers that I want agility but I also want to control what the infrastructure might look like but then I don't want to touch it again I wanted to work for me do you see that same dynamic and how does that play out because I mean it's kind of the nuance point but the end of the day shadow marketing is going on shadow IT oh it's happening and it's on this unequivocally I mean so the the it literally the what's crushing the marketer right now is every time we get a new touch point a a watch so we go from just a watch that tells me the time to an Apple watch right every time there's a new touch point there's a new point solution for it and it's crushing the marketer so if it's social there's point solutions if it's mobile there's point solutions if it's a watch there's point solutions I blew my mind I literally saw it start up this is we can do you know monitoring and engagement of people on a watch it's just it's overwhelming the marketer and so their landscape of applications is looking like 30 40 different apps and their big win single sign-on that's the big win for the marketer internally it's just crushing them so what they're looking for your point is the Mahr tech or marketing technology graph and map is so big each one of their own underlying stack database software is that kind of what you're getting at absolutely absolutely you pick a marketing cloud it really doesn't matter you could say Oracle's marketing cloud sales force marketing cloud Adobe's marketing cloud it's just convoluted the the graph or chart of what's out there so point solutions just put together cobble together that's exactly right and so we're the benefit are that this is the the problem with that is what well the problem with that is that you first of all you lose any context relative to who you are there's no way that I can across 30 or 40 systems keep a consistent definition of job for you it's just impossible to do and our notion is we're looking at and what we're driving is a single engagement platform where the definition of you who you are no matter what touch point how we listen to you how we learn from you and how we engage with you it's all the same it's all integrated so let's get back to this point because I think an engagement platform and then the applications are interesting so I mentioned the CMOS earlier there's more development going on in marketing with like programmers developing apps because creig's of course okay so they're using the cloud and the marketing cloud is not like a one-off it has to be part of the core infrastructure so one of the things that wiki bonds gonna be releasing a new research coming up but I saw David floor yesterday who's a head of the research project that they're gonna show market share numbers of Amazon Google all the top cloud guys yeah interesting dynamic past is squeezing now platform-as-a-service is being squeezed down and SAS is increasing and then I as infrastructure stores is kind of shortening which means this automation in there so that the middle layer is gone but yet there's more sass how does that relate to the marketing cloud because the marketing cloud would be considered middleware or is it just the SAS app and does that speak to an explosion of SAS applications well I mean you're gonna see an explosion of SAS applications regardless I mean we reached that point of critical mass a while ago that's there's no going back at this point but if you look at kind of I think you're absolutely right there's compression at the IaaS layer in the past layer etc because these these these larger kind of SAS applications they are really ruling today and if you look at how that applies to marketing we actually think about three technology tiers within marketing there's the listen learn and engage tier the listen it's here is how do I listen on these digital channels the myriad that are out there and then the learned here is core to our platform the engagement platform it's all about an automation engine an AI engine and an analytics engine it's learning and then engaged here is how do I go back to those self same channels I was listening to and engage you the way that you want to be touched and so that's really the stack that comprises the Marketo engagement platform what's interesting the dynamic for us is we're actually seeing our own native applications that we're building on our engagement platform and then we have over 600 partners that are building applications are not building applications on our engagements they're writing software on top of the market absolutely so they're extending it so if social listening which I know is a big thing for Silicon anger that's like the I mean you guys are masters at it that if that's your thing then we have a not only do we have social listening capability but there's an app for that there's dozens so we could potentially plug into that oh absolutely so that's your vision so the vision let's go back to the so more apps a platform that enables more satisfaction yeah and and you mentioned people building on it that's an integration challenge and that's something that people they want to do more of they want to integrate other things with platforms which could be a challenge but it brings up the point data where does the data sit because now the data is the crown jewel yes and also a very important aspect to get real-time information so if you have information on me you won't have access to that data fast that's right and so there's an architectural challenge there there is your thoughts and reaction to the role of data well I first of all marketers still want to own their data and I think we need to be you know the reality is is that if you look a lot at a lot of these marketing clouds that are out there they're the vendor perspective is going to be will if I own your data I own you and our perspective is well you know that your data can sit within our platform but we can actually drive that data into you know on-premise warehouse etc etc so we're our goal is not to own your data ergo we own you that's not our goal I think the big thing like in the content you're saying is you want to use their data to give them value absolutely and so for us it's a matter of you know we can we can do to protect their data - exactly and so for me it's all about you know it's securing the data its but it's also the data is so complex now for the marketer so you've got social data highly unstructured you know you're listening for key words they still have to interpret that information you've got highly structured data demographic for example so it's how do you bring all that together you can bring that together in the Marketo engagement platform and then you can turn that into something meaningful it's always funny always to love to interview the new CEOs because we got the fresh perspective but I can't ask the tough questions cuz you lived in there for two months you get it say I won't even that two months I really can't answer that so I'll get the more generic on that what to try to get this at some of the hidden questions that I like to expose for the audience and really the main one is what attracted Univ Marketo I mean you left a pretty senior very senior position NSA p-president and Marketo is like the ship that's out there it's a motorboat but some are saying that the ways might be big enough and so you know be like okay but their public company so everything's out in the open what attracted you to market what God did say you know what I want to ride this speedboat well the trigger point for me was you know especially it s if he get exposed to kind of the big macro trends big macro trend everybody knows it is digital transformation as if he's talking that Microsoft Accenture picked the big company they're talking digital transfers and it is real the reality is you either are a digital native company were born digital uber or you're going digital ie you know you're a hospitality company trying to compete with air B&B and you gotta go digital so it's yeah I wrote an article I want on go digital or die right that's that's the that's the notion and when I looked at that I said so how does that lens apply to marketing well the reality is is that the marketer in the digital economy is only going to win if they can engage with not two or three people but Millions in an authentic and personalized manner at scale so that it's kind of juxtaposed how do you do that how do you engage with millions of people but at scale but deliver personalized an authentic experience and I looked at Marketo and I saw this platform and I just said oh my gosh there they are there's like this this convergence of those two things that are going to happen and I just think that the whole kind of marketing automation space which is known as really I I want to transform that into the engagement space we're talking about things like this engagement economy trend I absolutely believe we are fully in this notion of the engagement economy I think Marketo is right there so I gotta ask you a question is this is interesting you mentioned getting personalized information one of the things that's apparent we talked about on my Silicon Valley Friday show if you go to soundcloud.com /john for every year that people watching can get the copies of those but the thing was the recent election highlighted an issue around trust right v news younger natives digital natives younger kids they actually don't know what fake news is and what real news is a lot of people are moving off cable TV into digital which opens up the snapchats of the world different channels omni-channel like things and so this brings up this notion of communities because what people are turning to in this time of no trusting the mainstream media right news or Trump or what they were saying it's causing a lot of theater but it highlights an issue which is what's real what's not its content content is also has a relationship with users content is marketing content is trust is now a huge deal how do marketers now deal with the fact that content marketing coming from a company it could be fake news but there's a real or not and how do they get the context jewel connections is it the communities and we see that election people kind of going back to their tribe and saying oh anti Trump or Trump or whatever so tribal communities are a big part of data it is what's your thoughts on this trust factor and data and the content yeah yeah well so I think I mean a couple things first of all you know the I I think you or I as a consumer you know where anybody really we don't respond well to stare I'll moderately creepy advertisements that show up that you you know you know okay you're tracking my cookie you know in my browser and that that is just that's a non-starter I think that that in and of itself is is not interesting now we respond well to there's I said that that kind of personalized and I use that word authentic content so if there's content it's not just hey I know that you visited you know three websites about cars so I'm just going to pump you with ads full of cars but if we deliver thoughtful content it could be a comparison of vehicles that you've been looking at and take a look so there's more thoughtful content that you can deliver that that I think can come through a Mar tech platform like what we have our engagement platform no I will tell you that that trust to me it's it's not just the the authentic nature it's also a consistent engagement you can't show up show me an ad one time and I'm just gonna buy from you it doesn't work that way anymore so it's about having a relationship digital at scale but you know it's it's delivering that human touch I wrote a blog on this one where I said how do you deliver the human touch its Kate for blog addresses it it's on Marquitos website actually yeah right on our website so we talked about that as well and as companies are moving away from you or I managing the social engagement to the AI engines the machines engaging with us I think that we run the risk the marketer runs the risk of reinforcing the stare aisle you know kind of engagement and that's not what we want we want warm human touch that breeds trust sowhat's marcado's technology I mean people look at Marketo and people in marketing general yeah they're just hiring agencies to do all this work this isn't real maar tech marketing technology going on I like some of the technology for the folks watching because yeah I think it's pretty interesting most people don't understand that's a lot of machine learning a lot of technology involved in databases from security to trust also enabling real-time yeah share some insight into what's going on there so so this so there's a notion of engagement platform which we believe is is just fundamentally different than your run-of-the-mill marketing cloud so the engagement platform for Marketo is all about that listen learn and engage kind of methodology that we think about and the listening notion as I said literally as we can listen to anything your custom data social channels smoke signals if we had to we can read and consume almost anything and if we can't do it one of our partners can with like a DMP for example they learn the core of our engagement engine and this is pretty neat so we have three engines in our engagement engine we have the automation engine which is all about I hear you say something on Facebook I can engage with you then there's the analytics engine so I can help you understand what are people talking about on Facebook what are you talking on a LinkedIn and then there's the AI engine now this is where I think the the merger of the marketer and the machine is going to start coming together in a big big way so our AI engine allows you to not just say well if people say Silicon angle on Twitter then send them this but you can actually have it adapt and customize learn and reason learn and reason so X writes out and do some it's right it's predictive Oh not only just predictive actually have it I think it's borderline kind of clairvoyant but understand well I'm not just gonna immediately react to something that you put on Twitter I'm gonna go and I'm gonna check the rest of your digital persona there's a digital assistant basically not a sales rep it's more of an assistant it is it is and and so the future of marketing is simple I can build a marketing or an engagement campaign and I can click a button that says make it adaptive and then that's when the machine in the marketer come together and so on top of that engine we have our marketing applications our native apps like marketing automation we have an account based marketing which is a pretty big deal especially in the enterprise account based marketing is all about going from the single buyer to the consensus buying that you know behavior that's see in the enterprise and then we have other technologies like mobile marketing so we can track when you open an app if you close it if you click on it so it's not just one thing we have a range of marketing apps that sit on the platform right so I want to get the final question I get your thoughts on just the future of the business obviously a year you're there two months you got to get to know the team you've got to get to know the players any changes on the horizon that he let's shop so you got a big launch coming up with it well Ryan codename Orion which is there a new engagement platform that you guys pre-announce and get the announcement coming up there got a book you going on but if for Marketo what's the guiding Northstar for you what do you what do you say to customers and kind of the vision and and what changes you look that might be coming down the pike yeah so I think so the vision really there's two elements to that one is that our core focus like at its core is we're going to help the CMO build the lasting relationship derive revenue for the company and the way that we're going to do that is deliver the engagement platform which we are now rolling out I mean we've been working on a ryan for a long time way before I showed up and Orion takes the ability for a marketer to go from millions of interesting touch points per year social mobile did you know digital touch points to quadrillions of touch points we are ready for that digital transformation what we call the engagement economy era I'm writing a book on there the whole notion of engagement economy we're entering this new era where if you're not able to engage with people and and also things because things will be out there too at scale you won't win you just won't we want to get your thoughts on one final point I know we're kind of running up on time in this segment but if you look at the cloud go back to 2008 2007 timeframe when it really emerged and Amazon is already you know had a couple years under their belts with what they were doing you saw the DevOps movement developed merging development and operators be the real catalyst those early adopters you know those you know Navy SEALs the Green Berets you know eating nails and spit and glass out so so that was Facebook that was the big web scalars Yahoo essentially invented Hadoop which became big data you saw all these companies that were new natives build their own stuff not buy off-the-shelf equipment and they became the the canary in the coal mines for everybody else now everyone wants to be like AWS and even Microsoft's changes to be more like AWS and competing directly with them Google is changing so there was early guys on Facebook what they're doing drones and virtual reality you know what these stuff they're doing with open open compute those are now leaders so they're the predictors of the future in my opinion so I look at it so the question I want to ask you is how does Marketo rank up because companies that don't have huge early adopters of the scale side of it platforms that can't scale probably won't have any Headroom so do you have an example where your business has guys pushing the tech scaling it up that are gonna be that canary in the coal mine you guys have that mix of business can you give some examples yeah first of all we have fantastic customers that are using us today kind of scale Oh at scale absolutely whether it's a GE for example GE is literally attributing billions in revenue to the the Marketo engine and the campaigns and efforts that they're driving through that but ge is a perfect example Microsoft another great when there's lots of great examples of customers of ours that are doing what I would I would call hyper scale in engagement within marketing data and they're with marketing data etc so they're using your tools at large large scale yeah and I'd say it's the scale that that today you get these hyper scale example points but tomorrow everybody's gonna have to do it it's just what's neat for us you see the same thing I was mentioned that those hyper scales are gonna be the you know the pioneers that are gonna let the settlers come in and and behind them do you see that more typically and the neat part for us is is because as a marketing automation technology or an engagement platform we're fully integrated with Facebook Linkedin etc so they actually pull us forward we get that I think we get that we've got the telescope to see the canary in the coalmine a little bit further down the road assuming it's a well-lit coal mine but we get to see that a little bit further down the road so I it's an advantage for us strategically I got to ask you the question because in the database world the systems of record the services of engagement and then systems of AI IBM calls it cognitive yes how do you guys play in that new era is that just all marketing for them well I mean everybody has their cognitive exist yeah and you have something it's so they're every two degrees so everyone has tech and we certainly have what what I characterize as adaptive and intuitive that's my version of AI you know I think saying artificially intelligent it's kind of like I've met a bunch of teenagers that I consider to be artificially intelligent but the reality is is that everybody to a degree has this brochure layer tech that they run around waving it really comes down to what's practical what's usable and for us that's we're focused on is what is adaptive and intuitive technology that's going to merge the marketer in the machine final question final final question is what's the top three priorities for you if we look back on your performance next year this time what are the top three things you want to accomplish as the new CEO of Marketo well number one champion engagement economy that whole we're there and I think people just need to understand what it is to is help the market or win I mean the reality is if you boil it down you ask the question what does the marketer what they want to win they just want to win help their company win and so we want to help the marketer win and then three is really engage our marketing nation we've got a community of an online community talking about communities over a hundred thousand marketers that are working inside of that community it's just absolutely huge and so I want to engage the community if we can do that and be just customer centric and oriented our technology the AI all of those things part of our engagement platform it's gonna help us win to stick congratulations on being the co-chief executive Marketo great to see you Steve Lucas here inside the cube and Paul all those new Studios here in Pella 4,500 square feet you see a lot more content live programming as well as featured interviews with top CEOs of Silicon Valley and top technology companies I'm John Fourier thanks for watching

the queue presents on the ground here's your host John furrier hi everyone I'm John furrow it still can angle the cube we're here in San Francisco the ritz-carlton for the exclusive coverage of Amazon Web Services AWS is big announcement with VMware CEO Pat Cal singer with the CEO of Amazon Web Start sandy chasse a year on the big announcement of VMware managing a cloud on Amazon a lot of good stuff and our next guest is Terry wise who's the vice president of global alliances great to see you good to see you John thanks for having us so you're the man I'm at bout town and he came on stage we delivered a great performance kind of humbly like he always is but this is a really big deal and you guys obviously get learning on the public cloud but this is like you know almost sweeping the double header you know game one you win the public cloud game to enterprise cloud is pretty much in your back pocket with the size of VMware you got to be happy with this deal yeah we're very pleased with it I mean if you look at it we don't look at it in the terms you just articulated it certainly entertaining but we really look at it is how we're gonna best serve customers and at the beginning at the end of the day this all came about you know really by customer demand you heard both Andy and Pat talk about it enterprise customers have been talking to us for years hey we want to run these workloads across multiple environments help make us help make that happen and now is the right time in place and the right marketing conditions to make that yeah yeah tongue-in-cheek side nice nice political answer on the Amazon front but but in reality we've been covering both Amazon and VMware both in a very deep way over the past years and I was questioning myself why is Andy Jesse coming to San Francisco to announce a deal with VMware it seems like VMware is groping a lot of criticism on the false starts of the cloud I obviously knew something big was going on so I felt that but this my question but you're innovating so much at Amazon I slowed down to go work with VMware obviously it's the customers talk about the customer impact because this is important it's not that you guys are straying from the vision of AWS which is in the cloud a lot of innovation sets the services is this just another service for AWS well it's another service but it's a very different service you know to your point this is really gonna accelerate customer adoption then we're gonna make it easier for enterprise customers to move to the public cloud environment because they can leverage the same software licenses skill sets and tools that they've used to virtualize and build private clouds so now naturally extends in the V AWS environment and it should help everybody move faster and get all the goodness and the benefits of the cloud much quicker so you have two customers on there on the stage one was Western Digital they got a huge integration it's interesting the use case for him was analytics yes so that's an Amazon benefit tutor so it's not just VMware so the deal is VMware customers get to run the VMware stuff on to Amazon so you give them a lifeline for their business models Raghu was alluding to ours being more specific this allows them to preserve their licenses as well as give their customers a bridge to the future but the reality is there's a ton of services on the Amazon side that they're going to take advantage of it's not just they're gonna get Amazon they're naturally gonna use what services do you guys see the VMware customers using the most oh that's a great question and I think I mean it really runs the gamut if you look at you know analytics for sure I mean that's a no-brainer if you look at more of the innovation use cases that are happening around IOT the things that you know don't fit night they use cases that don't fit nicely into kind of your private data center because of the constraints that you have their Big Data obviously the variable kinds of workloads massive amounts of storage all that data that's coming off these IOT centers has to go somewhere that's three redshift I mean all of these things are just natural extension so you have to be completely candid I have a hard time thinking of any that would not you know be an extension to the because Dave Olave says there's a lot of cloud native agility and innovation coming on Amazon how is that going to connect into the VMware so the customers just say hey I'm a VMware customer I'm now gonna use vCenter and I got all my comfortable dashboarding and tooling and stacks technology of VMware mm-hmm now I go to Amazon I just plug into Amazon services directly yes I'll have an AWS account that's gonna spin up the AWS native services will run those alongside the VMware offering and through V Center and the management tools you leverage our API is into cloud wash logs and all of our different management functionality so to get a single view across that integrated landscape so the number one question I had coming into today was why it's Andy Jesse coming to San Francisco so in your own words how would you describe the magnitude of this deal for both AWS and for VMware but certainly you know perhaps the most unique deal we've done we've done a lot of strategic alliances we announced one last year at this time with Accenture that's one step shy of a joint venture that's been a big deal you know we've got a number of others we just announced one with sa P a few weeks ago here in San Francisco around the BW for Hana launch but in comparison in Mississippi you know obviously a big deal and the enterprise adoption has been up - can you comment on any color around uptake with the enterprises you know prior and visa V this announcement I'm sure it's gonna be a lot more this is an on-ramp of three million customers but in general Amazon was already winning in the enterprise correct yeah I mean the fastest-growing segments for us clearly are the enterprise and public sector I want to make sure we conclude public sector in there it's probably the first time in a series of Carlton great great doing a great job they're probably the first time in history of the IT world that the public sector in many cases is moving faster than the private sector it's one of my favorite stories to tell and yeah I noticed on the on the on the region map you had a gov cloud on there that is the public sector cloud so VMware customers in public sector can tap into that is that similar before it is on the roadmap to support our Dell cloud initiative you know I think that'll come in a kind of phase two but absolutely and we're finding - is most of the government's we're working with now government agencies don't require gov cloud they want you want to run in our public cloud because it's equally secure more secure more capacity more flexibility more choice Terry thanks so much for coming on sharing your thoughts here at the exclusive announcement in a nutshell what's the big takeaway for AWS folks customers and VMware customers what's the key message that you'd like this decision here yeah I think you know today we're you know even more relevant than we were yesterday in terms of the ability to actually serve at enterprise customers full suite of workloads faster more innovative and cost-effective awesome great thanks so much appreciate your time John Ferrier here in San Francisco the risk call for the exclusive Amazon Web Services in VMware big partnership thanks for watching [Music]

okay we're back this is painful on time with Wikibon org and this is the cube silicon angles continuous production we here at knowledge service now's big customer event i'm here with my co-host Jeff Frick this morning we were broadcasting live from sa p sapphire my colleague john furrier jeff kelly and david foyer were down here but we're here in Las Vegas at the aria hotel we're here with dave schneider who's the senior vice president of worldwide sales and services at service now Dave welcome to the cute thank you for having me a lot of good energy here talking to customers said Brian Lily on from from Equinix great case study great story we were Jeff and I were at the you know the customer event last night just cruising around talking to customers talking to prospects everybody's really excited what are they what are they telling you I think what the colonists is that what what we're all about which is making customers successful in their journey both the IT Service Management and allowing IT to be helpful to the entire organization is actually working and that the value they're getting from the investment around our technology is yielding really good results for their country so when you go to meet customers you know describe paint a picture for us of you know new customers new prospects what's the environment like no I think it range is a lot between customer experiences so as people are becoming more and more comfortable to cloud idea service we're seeing people really just rotate naturally to that wanting to get away from fixed fixed offerings and traditional and hosted systems internal there into internal their networks so we're seeing a lot of excitement about that and then there's some disbelief there's some displeased but actually after all these years of trying that they can actually make IT an effective part of an organization and our tools and our solutions really help them do that so when you say all these years of time what have they tried that's not work it seems like they've tried everything they've tried they tried remedy the tribe Peregrine they tried I have a corona motor tool right absolutely so I think what happens in IT is it you know they've been the Forgotten ones they've been the ones that didn't have the opportunity to invest as the other lines of business for a below best to keep themselves competitive in the marketplace now we're giving them best-in-class tools so that they are no longer hindered by the lack of sophistication they want that so you get your getting penalized in a sense by you know the past failures of other initiatives right that's the big barrier that you have to come over it is that inertia the existing disbelief is that right I think there's some disbelief also I think I T is often starved for resources i T is a cost to an organization not necessarily seen as a benefit by the financial parts of the organization however if used correctly they can be turned into an asset class and make the whole organization more competitive this morning we had GE talking on stage and they were able to do a massive transformation using the tool to generate millions of dollars of cost savings and additional revenue streams yeah I mean I've been saying to me this is all about global scale and demonstrating IT value and excellence throughout the organization are you finding that you're so we talked about sort of your prospects when you go in when you go in after customers implemented let's say for a year or so what's different what's changed and particularly i'm interested in that notion of IT value is their heightened awareness of IT value throughout the organization well so i think part of what happens is IT changes the perception of IT and organization gets changed through the transformation with our tool they go from as we we often say the Department of node or the Department of now that's a real thing and that that kind of confidence the swagger that the people have nit for IT kind of gets reestablished and you see people really proud of doing what they're doing and knowing that they're bringing a real value to their their customer is really an important part of what we do so the new confidence that these organizations have on delivering value of their customer the ability to support and integrate hundreds of tools potentially into a single platform record that's transformative to a CIO or to an IT executive who didn't know where things were in when the bad things would happen they couldn't tell what was causing the event and know how to fix it so what questions do you ask prospective customers what's your sort of list of top two or three questions that you start with I think first of all is why would you continue down the path that you are if there is something better what what would keep you from doing it and then we also look for other initiatives that are important to the business where what's driving them so if they've done a lot of integrations through acquisitions that's a huge opportunity for cost savings and aggregation into one one set of tools okay let's talk a little bit about your sort of sales organization you guys I think have these show you let's let me back up a little bit so you start with it I presume incident management problem management maybe even change management is that right is that the starting point so we get brought in to solve a lot of different problems now in an IT organization so it's not uncommon that someone would think about replacing their old help desk or incident management system we always say help desk is sort of like to four letter words you really try to make the desk go away because our customers don't want us sitting behind desks they want us to be out talking to them or they want to self help themselves and so we start maybe with looking at the historical systems very quickly we try to get into a much broader conversation okay and then my understanding is your sales organization has evolved where you will both look at existing customers helping them utilize the platform further beyond maybe just the core helpdesk an incident management problem management and utilize service now as a platform for other areas can you talk about that a little bit so went once when we get involved with a customer the customer is a customer for life so we kind of have a mantra inside of service now which is love that customer and if you love the customer and you do things for and on behalf of them teaching them about the technology and how they can benefit from it we get additional businesses they're more and more successful so every time we interface with the customer it's an opportunity to throw them an opportunity to make them more successful every time they do something to add technology around us they're saving money and probably growing their license business with us but having a pretty good at bit so it's interesting when we were at the event last night for the people who weren't here there were pictures of cakes all over the place there was there was cakes on the table and there was a slideshow with cakes and I said so what is the story with the cake what's in it and I kind of know the stories but it's good to follow till you said about what's really cared about a lot of us like sugar so there is that there's this common desire to celebrate so actually it was solving not not coming tonight well it's not common IT but it actually started with one customer or a couple different customers well when we went go lives the customer actually themselves they didn't go buy a store-bought cake they baked their own cake and they would decorate the cake in various ways and most of them had service now or Thank You service now it's part of it they really viewed this as a setting free element and so they were celebrating like a birth or a wedding like anything else that we celebrate in life they were celebrating with a kick and so it became a tradition I can't tell you how many hundreds of cakes I've now eaten but it's really a fun thing to do and it kind of keeps on a life about life of its own and sometimes I'll do interim cakes when they do go live with a new module or other aspects and call those cupcakes it's it's interesting as they said we were down at the event last night talking to a lot of customers and potential customers and the vibe is very good and the other vibe that's that that picked up this morning I mean the Kino started at 8am right this is not a sleep and group of people these are people that are up and ready to go everyone was waiting to eat at six thirty they were on the ground and so these are people that are working you know they're they're getting stuff done this is not kind of a hangout tech crowd well I mean there was some hanging out last night there was all hang out last night however I will say this event is all about the customer more than eighty percent of the content is taught by customers to customers they come up with the content they're here because they want to learn and so they don't want to miss a thing they're going to bring the ideas back to their companies and implement change and so they view themselves through service now is an opportunity to make a massive the organization it's obviously a pretty darn good career move for a lot of the customers as well who gets successful with us but most importantly they want to be here and we're thrilled to have them because you know quite honestly I get energy i sat in that keynote presentation and I got so much energy listening to the panel I was fired up and ready to go David you guys have a ninety-six percent renewal rate which is that's the same how is it that you've been able to achieve that what what's the secret sauce behind that what a customer's tell you so it fluctuates a little bit but it's been a 95 plus 4 13 quarters in a row I think really the issue is if you do right by the customers where why would they go somewhere else the alternatives just aren't that good but most importantly if you're delivering value every day through an engagement if you're bringing technology to bear to solve a problem once you solve the problem you don't need to Joe try something else you look two ways to leverage what you've already built and moved forward so the four or five percent of customers that disappear many of those are through acquisitions right companies got acquired and went out of business very rarely is that they made a choice to go with a different technology you guys don't and maybe used to in the early days but you don't sort of overwhelm your messaging with with cloud you know some of these some of the SAS companies do can you talk about sort of how you sell to organizations and a little bit more more depth it's not a it's almost night not a hard core technology sell its really around business process and value can you talk more so we sell to multiple levels in a company so there there are folks that are functionally responsible for different aspects of what we do let it be incident management or help desk let it be people that are trying to build knowledge management systems or trying to do employee self-service those are different constituents that will talk to in a sales campaign and then we often will try to reach the CIO or an executive NIT you give them the message of what we can really provide because you know people don't start off thinking you know I want to replace my helpdesk them and end up with the RP for IT we've got to convince them or give them the possibility that that's or sorry paint the picture that the possibilities are real so to customers do they do I mean a lot so many projects today are not not IT projects their business driven yes and there's a business case around them and the whole ir r and r roi etc and pv whatever it is how do people conduct a business case for service now it ranges dramatically depending on what problem they're trying to solve but you know some of what we do is sort of like an oxygen water problem right you can't live today without breathing or drinking some water you can't live in IT without solving some of these problems so it's an oxygen issue the nice to have things are quickly becoming oxygen issues employee self-service are you kidding me you're not gonna have a system that lets employees help themselves why wouldn't you do that why wouldn't you have an automated password reset process to save money why wouldn't you do cloud provisioning to save money these are these are oxygen issues can't live without them type of problems for IT organizations and the reality is they're not getting the job done today so being able to show them a way to make it transformed is great we do intercede a lot of times during an upgrade process or during that consolidation phase where they realize we've got hundreds of tools and they're all in little islands they're not talking to each other and they don't have any data that they can trust so you strive for this consumer like experience we're hearing that a lot what are your customers telling you about oh how well you're doing that I think the exciting things we're going to see tomorrow with Fred's keynote presentation on the handheld on tablet device interfaces are really all about continuing that push towards consumerization nobody wants to use a green screen interface that was designed in the 80s anymore our customers are wanting the same kind of tools they had or they have when they go home when they use google or they use amazon they want the same kind of experience when they're at work and so we provide them the ability to make that happen and that's really transformative to how people perceive IT it is it is it more the IT staff that wants that type of experience or their their customers their clients and their own company are telling them this is our expectation if she said only use Google is only amazon is no I mean I go as far to say is if I'm going to an old guard custom or the old tools and I'm trying to recruit the generation that's coming into the workforce today and I'm showing user interfaces that looking at acquitted and old that employee base isn't going to stay there very long so if you want to be able to grow your business with today's talent on a global scale you need tools that look familiar and that people want to use I'm looking at your screen over there it looks pretty sexy it doesn't look anything like it did 10 years ago Yeah right so did your workforce like Frank's Lupin you're hiring by Mars what are you hiring what are you looking for we're hiring athletes we're hiring people to care we love that Natalie yeah absolutely i'll check out i mean if i could say it one way is if you want to love your customer and sell transformative technology and you want to be part of something that's bigger than you because that's what i'm looking for i'm looking for people that want to join us create something special make a difference not just in our lives which is nice and fun we're really focused on the customer is when you change your customers experience in their perception it has gifts beyond cakes it has gifts beyond making a great company these are lifelong relationships you'll have and even opportunity to that at service now well the enthusiasm here at knowledge is palpable you talk to the customers and they all smiles on their faces they want to be here they want as you said David share their stories most of the content coming from customers and then of course the cube so keep it right there I'll be back with Jeff brick David thank you very much for coming in the cube and sharing your story this is the cube this is knowledge we're here live in Vegas we'll be right back with our next guest right after this great thanks good

okay we're back this is Dave Volante I'm back I was just meeting with Joe Tucci and Mike cappellas and in an analyst breakout and got some good information I'll share with you a moment this is Silicon angle TVs continuous coverage of EMC world and we're live here in Las Vegas and we have a good friend Dave Cahill from SolidFire on we met SolidFire a year ago at EMC world the CEO Dave Wright popped out of Rackspace conceived and founded SolidFire to be exclusively focused on the cloud service provider market flash all flash array focused on the cloud service provider market like no other company most companies sell flash arrays all flash array sort of broad set of use cases SolidFire is uniquely focusing on the cloud service provider space and we're going to get into that with with David Cahill David welcome to the cube it would be back so you moved to Colorado a lot of interesting personal stuff going on and it's it's it's great to see you you know doing so well personally and it seems like SolidFire is really making some progress you guys are as I said before are uniquely positioned in the cloud service provider space but so why don't we get into it maybe give us the bumper sticker because you could maybe maybe add some color to what I just said yeah and then give us an update on where we're at yeah sure so so guys that are building large-scale multi tenant clouds it's a unique customer set in the last year has done nothing but validate that for us we've been in early access with a handful of partners and our cloud service providers in that regard and continue to expand out that program now and it's it's as evident now as it was then that this customer set has unique challenges around scale around automation around performance and around efficiency that you don't traditionally see in the prize and so we continue to be laser focused on that customer set large-scale multi-tenant clouds and there's plenty of them being built yeah so um so where are you at you guys go through your beta program and yeah so we're heading the crap out of the kick in the beating the crap out of the system we are heads down charging towards full GA later in the year but the purpose of the early access program really is was to get some select cloud service providers to beat the crap out of the system and let them continue to you know evolve the services that they're gonna offer based on the SolidFire system and and make it a better offering GA both from a infrastructure standpoint but also from a services standpoint because you know these guys are advancing the way that we think about the cloud cloud 100 was let's move your data to the cloud cloud 2.0 is let's move your apps to the cloud and so that's a mindset shift which requires evangelism on the part of the cloud service provider to the end customer in addition to the infrastructure right if you if you if you crack the code on the economics of high performance in the cloud you open it up to a much broader application set that's so um so actually Dave I want to see if it call inaudible here so you are you hanging out here you got it something to do after this so we are I'm around okay so Sanjay merchandani was the CIO of EMC we're gonna lose them if we don't bring him on I realized now look at the schedule yeah I take off for 20 minutes everything gets behind so if you wouldn't mind I want to bring take a quick break when I bring Sanjay in interview him and then bring you back and then pick this up with me okay all right so listen keep it right there we're going to come right back with Sanjay merchandani CIO of EMC we're right back you the cube is this conceptual box if you will we bring people inside of the cube and then we share ideas the cube is a comfortable place it's a place where people feel happy and are happy to share their knowledge with the world and we're happy to be ambassadors of that knowledge transfer yeah can I get okay we're back and this is the segment with Sanjay Mirchandani CIO of EMC now Santi has been on the cube a couple of times and really has been leading emcs transformation efforts internally so the company's not just talking about transformation actually transforming I was at the CIO event in October EMC CIO event Sanjay really he noted that event and was the sort of highlight at that show working with a number of EMC CIOs to help them understand how EMC was transforming Sanjay was a really first of all welcome to the cube thank you good to be here and so that was a great event it was the MCS first real effort to bring together CIOs and and they used you EMC usually was a showcase which is smart you guys are doing some internal transformations but there was a lot of interest around what you were doing obviously a lot of talk about infrastructure transformation but also new metrics and things like that what did you take away from that event well you know the whole thing is that people want proof points the whole thing today is about proof points and we've been on this journey first in virtualization then we move that to cloud and we've now incorporated obviously big data into that but nobody builds infrastructure for the sake of infrastructure you want to drive value out of it and we translated value for the business for EMC is a customer internally around agility speed time to market and there's been a shift in the way our internal customers think about things because it's all about hey give it was faster doesn't have to be perfect out of the gate but give it us quicker so we could work together and get it right so we've been we've been we've built out our cloud and now we're working through the layers of in layers on top of that of that cloud of you words are things like platform-as-a-service true business intelligence as a service connectivity between our infrastructure and our legacy applications or if I have the liberty of building our new applications how do you do that and then on top of all of that these devices we're having thousands of these devices a month into the network how do you bring a true user experience and give our users productivity outside of email mm-hmm on this device so that's what we took away that customers were interested in these layers so so when I hear something like VI as a service I think I get excited as a business person I said can I get access to a self-service bi portal right and actually begin to interact with data you know without having to call up you know an army of IT people is that the vision is that you're actually doing that right right and right so talk about the hello yes we should go it's actually very exciting because it's the first layer of value that we're adding directly on top of our cloud infrastructure right so the number one area where you have rogue IT or shadow IT whatever you like to call it is some form of business reporting so users will say IT can't provide me my reports fast enough or IT can't provide me the reports the way I want them or in the format that I want them or as frequently as I want so it's usually shadow IT usually the big percentage of it is there on some kind of reporting system so what we decided to do was we built a cloud infrastructure we've got the capabilities we've got green plumbing plays so what we're doing is we're creating as much of this data that the custom that our internal customers want access to give them one version of the truth so you take away the noise about where is the data and instead spend time on two things helping our internal customers build the skills to do the analytics the way they wanted and give them data scientists as a service as a human service to really enable them because we see the data left to right nobody else does all elements of data within the company mm-hmm so so we give them data scientists as a service and we'll give them the ability will give them skills around tool sets that they want to use a Microsoft reporting tool or SAS or something else on top of the green flap we're enabling the platform we're enabling some competency around the tools when we're enabling data scientists with subject matter expertise in the data and then the and then our internal customers can go off and have a nice day with that information any way they want it so how do you deal with the issue of credentials like who gets to see you which data well obviously we put business rules behind all that so our security officers involved you know and we we are now tearing the data based on access based on you know profiles etc so all of that has to come together so it's not an all-or-nothing formula you know we're bringing best practices into play and and making sure those those are things that you understand how to do in a traditional world right and and if it's rogue IT or shadow IT as you you know that now comes into picture so you have better control over that stuff yeah so um we actually just did you mentioned shadow IT we just did a survey on IT transformation we had one of the questions we asked is you know what percent of your your IT budget or organization's IT budget is managed by a centralized organization and only about when I say only about 38% said 100% yeah so if more than half had some kind of shadow IT and about 20% had a 25% of the spend or more going to shadow I mean and let's be honest it was cloud computing stuff that was in the arsenal of IT for years is out in the open you can get access to the credit card for the same amount of infrastructure and in a drop of a hat that my IT guys need so it's just shadow IT has gone out of the dark corners of the organization right into the open into the plow yeah it's okay you know and so it's a whack-a-mole syndrome yeah so we're saying you got to either embrace it or get out of the way yeah and so you know the pitch that my my leadership team and I are making to our organization is we have to be the brokers of value it's not about authorship it's not about where it was built or where it was written it's about how soon can we add value to the business and we have to be the brokers of value all right and not it's not all about hey if it wasn't written here it isn't good enough for this for this company so yeah you've always been very forward-thinking about that I mean you know shadow IT freaks out some people oh we got to pull it in but you're like okay fine so now I want to tie it into the messaging that you were hearing at EMC world so it's it's IT transformation transform IT or sorry its transformation transform IT business and in yourself yeah we've said okay IT transformation that's about the cloud the new new cloud infrastructure Bob as well the business transformation is about data unlocking data value data value and then self obviously will you make cloud architect maybe that's a piece of what I'm gonna talk about to are so-so is that a reasonable way to look at what the messaging is and how that maps from a practitioners perspective and I'm trying to squint through okay how much of that is marketing and how much is actually implementable so you've talked about the the cloud transformation internally at EMC IT as a service um how about the data piece you talked about bi self-service bi but how about even going beyond that you're actually getting into that point where you're leveraging that yeah are you able to monetize yes great question by the way and there's lots of new answers to that to that question because when you chunk something down to saying you know IT is about you know transforming I tease about infrastructure well transforming IT is about infrastructure self service automation cataloging and creating the capability to present IT as a service did that make sense yeah my goal is to break down the big black box of IT into little box black boxes of IT so customers internally can pick and choose what they want at the price points they want and at the service level they want and I present that up and as much of an automated Service Catalog as I can now that is transforming IT there's a lot of process transformation alongside technology transformation and the you as human transformation which I'll get to in a minute once I built that what do our internal customers want they want big data we talk about big data they want Anytime Anywhere computing capabilities so if you've got that sleek little MacBook Air in front of you or the latest Android device that has showed up at your door or an iOS device they want to be able to compute any way they like on any form factor any screen anywhere we have to render that so for us today Mobile is an opt-out strategy so you ever tell me explicitly that you don't want mobile when I give you a solution it's automatically opt-in yeah two years ago it was the other way round hello I mean okay now how do you do that you do that based on the fact that I've got a cloud infrastructure and I'm building mobile capabilities on top of that bad infrastructure to expose elements of that data manage those devices create that user experience on top of that infrastructure security apps the hole in your login monitoring authentication you know so on and so forth and so how do you do that so that's that's to be transforming you know the business how they use it how they consume it what they want to do with it etc said differently in the first so transformed IT transformed the business is transformed IT was building the factory floor building the production line it was all about IT transform the business is all about the business it's where you're building the widgets you want off that factory floor transform you is what gets the lease attention but it's probably the most pivotal thing in all of this is the bits are gonna be just really cool bits on the on the data center floor unless somebody knows what to do with them and really drive value with it and so for me the focus of my leadership team and myself is not so much just about the architectural roadmap but it's bringing the thousands of people that are involved with IT whether it be our own people or partners that helped us along with us in this journey in a way that they're showing us the way I mean I could come up with s best roadmaps somebody's got to make them happen yeah and I think you're hitting on a really important point you know the people piece we always sort of ignore that we talk about the technology but you know well when you look at the spending that goes on in this industry the vast majority of his own people which you know on the one hand says okay that's important we're investing in our people but we're in a labor-intensive IT economy and and that's stifling innovation you've talked frequently as have your colleagues about the 70/30 mix 70% goes to running the business 30% goes to the innovation but decades of infrastructure investment in silos have really stifled yes innovation and so yes you got attack the processing and the people problem right or else that's not gonna change which slaves to that yeah trust me that's that's what it is yeah and so so that in order for us to move the industry forward Palmer talks about getting deeper into the business integration you can't get there you know if you're you know stuck in all this infrastructure right you sort of bring the first five minutes of my presentation you know and and but that's exactly true you know we've we've you know we say 70% is lights on 30 percent 25 30 percent is innovation it's not even innovation it's just new stuff compared to old stuff yeah it's not me I mean yeah yeah that's that's the binary call you need to get beyond that into true innovation and and you know that that takes a lot of effort and people are so stuck in I gotta get this done I gotta get this out you know I gotta work do this work around I got a triage this problem that the technology and the processes are so institutionally complex the business has gone this way I teeka's continue to run this way because we haven't had time to move this way I think today and I say today I mean the period of the technology that were in is the technology lends itself to agility the business is open to how it needs it and open and and welcoming to how it wants it consumed the technology good enough iterate agile and it's up to IT to adapt at this point to say I'm willing to bring those two things together and really change how I do things for the business that makes sense yeah and well it does especially when the context of the IT services discussion we had earlier and we talked about you said binary you know it's either you're you're maintaining or you're doing something else right I think when organizations if you can present IT as a service can start to really align with their their their objectives of their entry to like a portfolio right run the business grow the business transform the business right and maybe align it to business unit and really start to make IT a much more fundamental part of the strategic plan and the operating plan and that's what excites me listen I had one more question for you I've been hearing a lot about propel I heard first heard a couple months ago we heard more about it last week at sa P sapphire you did yeah okay yep that Jo was just talking about Jo Tucci so you know I know talk about propel yeah I didn't use that word but he talked about OSAP and he said hey it's going live soon I heard it's going live this summer but my fifth great so what's that all about okay so you know as as here's how I like I like to think about it for a few years we were building on infrastructure and it was a drive for efficiency in the business so you it's what I call you know when you start trimming the fat but you got to build back some muscle and the muscle we were trying to build back was a cloud infrastructure and applications that took us into the future right the business wasn't slowing down their plans because I couldn't keep up with them they were going just as fast as they had to go driving shareholder value creating new markets new products getting and doing the things they had to do we were working with 10 12 year-old legacy systems like every other company in our class it grow fast grow globally acquire companies you're just trying to tread water sometimes and just stay afloat we made a conscious call up two and a half years ago to revamp our core systems align a business systems no different than a retail bank pulling out their core retail banking systems and back-end systems and putting in new ones once they've used on a main route for many years very trivial but we just we didn't just stop at the a player we're completely building out this this new line of business solutions on and on what is essentially an EMC VMware RSA and partner friendly technology so it's s ap on the top and the a player Vblock architecture we've used in the spring frameworks gem fire all of the other products you know the middleware products that that allow us to move into the cloud from VMware all built on a V you know running on everything V yeah right so the only thing that we're bringing over over 12 years is data that we're spending a lot of time transforming so they're ready for big data and the database physically everything else is brand-spanking-new so at every layer of that stack we are transforming IT the business and ourselves I mean if you know what I encapsulate the the the the theme for this event we're living it July 5th my team's been working for the last couple of years the last couple of months have been torture as you would imagine anything of the scale you know we closed the quarter we turn on the lights the next morning and we're in a new system and we got to take our users through it so you know the teams in the next you know stellar job but we still have a little bit ahead of us so I said you'll be in the beach but Sanjay's team as the IT I always pulls the shorts we don't get we don't get a long weekend we don't get a very long month actually Dante merchandani one of the best CIOs in the business we had Oliver Bushman on last week and other real innovators I really appreciate names good to be here as always I keep it right there and we'll be right back