from the cube studios in palo alto in boston bringing you data driven insights from the cube and etr this is breaking analysis with dave vellante predictions are all the rage at this time of year now on december 29th 2020 in collaboration with eric porter bradley of enterprise technology research etr we put forth our predictions for 2021 and the focus of our prognostications included tech spending remote work productivity apps cyber security ipos specs m a data architecture cloud hybrid cloud multi-cloud ai containers automation and semiconductors we covered a lot of ground now over the past several weeks we've been inundated with literally thousands of inbound emails pitching us on various predictions and trends in these and other areas here's my predictions folder and this is only a portion of the documents that i've received by email obviously printed them out killed a few trees sorry hello and welcome to this week's wikibon cube insights powered by etr in this breaking analysis we're going to review briefly each of our predictions for this past year 2021 and suggest a grade as to how we did we're going to do this as a little warm up for our 2022 predictions which we'll be doing in the next over the next couple of weeks now before we dig in i want to make an observation many of the predictions that we received they were observations of trends and sometimes not really predictions or you know or not surprising we got a lot of self-serving marketing statements you know predictions in our view they should be measurable so you can look back and say okay did they get it right now granted there are gray areas so that's why we'll use a grading system today now there are also many really well done and thought-provoking predictions and there's an example of one that we received that is strong it's from equinix cio milan waglay who said within the decade data centers will be powered by a hundred percent renewable energy okay so you know that's clear and we can measure that but anyway thanks to all the pr folks who sent along like i said literally thousands of predictions we tried to read them all but the volume over the past week or so was just so overwhelming and we'll try to scan them before we do our 2022 predictions but today we want to do that warm up by evaluating how we did in 2021 so let's get started our first prediction was that tech spending would increase by four percent this year coming off of what we had thought was a contraction in 2020 and depending on which data you look at you know best case maybe was flat we definitely correctly called the continuation into 2022 of the remote work trend and the positive impact it would have on pcs and the like but we underestimated the shape of that rebound that that spend back curve idc has tech spending wrote this year at five and a half percent so we feel like while we called the bounce back it was more pronounced than we had thought in fact you know we think that idc number is probably going to go up even higher and we'll address that in our 2022 predictions so so we'll give ourselves a b minus here okay next prediction was remote worker trends become fossilized settling in at an average of 34 percent by year end 2021. so on average 34 of the workers would be remote by the end of this year now you know we made the call but we missed delta no we missed omacrom we said 34 remote which would be 2x the historical norms now the etr data suggests it was 52 in september and it's probably going to be somewhere in the 40 to 45 range by by the end of this month into december and the thing is 75 of the workforce is probably still working either fully remote or in a hybrid model and hybrid work is probably going to be the dominant trend and we're going to have to revisit that framework or how we think about this whole structure and we'll do that again in our 2022 predictions so we'll give ourselves a c on that one we'll take some credit for the permanence of the trend but the percentage was well off the mark you know thanks to the variance as well as some cultural shifts that whole hybrid notion okay so hey not really a great start for eric and me but we rebound with the next one the productivity increases we said seen in 2020 will lead organizations to double down on the successes and certain productivity apps will benefit so to measure this we said let's take a look at the most recent quarterly earnings and gauge the revenue growth year on year as an indicator docusign was up 42 smartsheet who we also called up was up 46 in revenue twilio up 65 zoom growth was 35 down from 325 confirming our layup call the zoom growth would moderate it had nowhere to go but down and microsoft teams has never been more ubiquitous has never seen greater adoption with hundreds of companies having a hundred thousand or more users and thousands of companies with ten thousand users or more so we really feel like we nailed this one so we're gonna give us give ourselves an a plus okay so now on to cyber it's an area that we've been making calls in for a couple of years now and we're really pleased looking back here we said permanent shifts in cso strategies are going to lead to share shifts in network security now we said to give you more detail maybe that sounds like an easy one but we said specifically identity cloud security and endpoint security would continue to benefit and we specifically named crowdstrike octa zscaler and a few others that are targeting their growth rates now gartner has the security market growing at 11 percent octa and zscaler revenues last quarter grew at 62 percent year over year crowdstrike 63 illumia we also called out they raised 225 million dollars on a 2.75 billion valuation on the strength of its growth that was in september now akamai acquired guardiocor for 600 million dollars another company we called out that they would do it they did that as a ransomware protection play and they paid a huge revenue multiple for the company and it seems the guys listed on the last line are all talking about subscriptions sas arr remaining performance obligations or rpo so we feel very good about this look back we'll take an a on this one no it's not an a plus because we're too conservative on the growth of octa crowdstrike and zscaler topping at 50 they they blew that away by another 10 points or so 10 to 15. but look pretty good call nonetheless okay again the next one you might feel like is a layup but not really so we said the increased tech spend would drive even more ipos spax and m a according to spac analytics ipos were up 109 this year the spac attack continued up 109 percent in 2021 on top of a record 2020 and according to kpmg m a dollar volume was up 19 okay you might say uh that was easy call but there was much more underneath this prediction we called out uipass ipo which was a lock but also said automation anywhere would go public uipath did aa didn't we did correctly call the hashicorp ipo we said they'd either get go ipo or get acquired and cloud flare grew revenue 219 percent last quarter but akamai was not acquired so the degree of difficulty on the overall prediction wasn't high but the automation anywhere in akamai events we made those calls that didn't happen and those were you know obviously tougher calls so we think this still deserves a b grade all right as you know data is one of our favorite subjects and we've reported extensively in the successes and failures of so-called big data we said next in the next prediction that in the 2020s 75 percent of large organizations will re-architect their big data platforms and we said this would occur you know in earnest over the next four to five years now again you may say duh dave but you have to evaluate the prediction based on the underlying comments here the jury is still out on things like snowflakes data cloud but we absolutely believe that it's the right direction but then you have then you have data bricks coming in taking a different approach they're coming at the problem from a data science angle trying to take on traditional bi and then you get snowflake coming from the analytics space and moving into ai and data science and you know we asked at aws aws re invent we asked benoit dejaville on the cube if there needs to be a semantic layer to bring these two worlds together and he said yes and that's what he claims snowflake is building meanwhile you got the big whales like oracle they continue to invest in their capabilities to try to eliminate data movement and then there's aws taking a totally different approach to data where it gives customers maximum optionality of offerings and database and other services and you can't forget microsoft and google so many customers might not take the steps that we predicted because they're comfortable where they are specifically we're talking about here a shift toward domain ownership and data product thinking and the reorganization of hyper-specialized technical teams many of the principles put forth by data mesh and we've said this change is going to take a number of years to play out four to five years so we start noticing in 2021 that that's clearly been the case as we reported on parts of jpmorgan chase uh rethinking its data architecture hellofresh and many others so this is still an incomplete the professor we'll give ourselves an incomplete on this one but we think it's trending in the right direction okay the next one is always fun discussion that's the battle to define hybrid and multi-cloud we said that's going to escalate in 2021 and we'll create bifurcated cio strategies now here we go aws sees the world as bringing its apis and primitives and model to the edge and the data center to aws is just another edge node and the company says that in still believes in the fullness of time that all data will be in the cloud however that's defined and aws awareness would say all this talk about hybrid of connecting on-prem to a cloud they would flat out say adam silipsky told us this that's not cloud is what he said then on the other side of the table you have the likes of cisco dell hpe etc saying hold on cloud is an operating model it's not a place and aws might say yeah and aws along with its customers is defining that operating model and these other guys would say no actually you're not we are with our customers and this battle 100 percent escalated in 2021 with the launch of apex by dell hp e double down on green lake cisco's as the service models and then of course oracle which actually announced a true same same public to on-prem hybrid capability two years before aws announced outpost and of course oracle's executing on that strategy in earnest in 2021 and the other nuance here is a concept that we introduced called super cloud which refers to the notion that look something like for example multi-cloud is not about running within a respective cloud it's not about cloud compatibility rather it's about abstracting the complexity of the underlying cloud primitives and building value on top of those cloud services on top of the investments in capex that the hyperscalers have made now some people didn't like the term super cloud maybe uber cloud would be a better term we're going to continue to use it to describe this capability we think it has meaning and we're seeing new examples like goldman sachs's financial cloud running on top of aws so a super cloud is not as an application or a suite of applications running on a single cloud now if those applications span multiple clouds like like snowflake is trying to do okay that's a service that could span multiple clouds or in the case of goldman sachs it's a portfolio of data tools and software that's made accessible as a service that floats on top of a single or even multiple clouds regardless we feel that this was a correct call given the evidence and we'll give ourselves an a minus taking points off for the somewhat anecdotal and observational measurement system that we apply to look back at this prediction okay the next prediction was we made was cloud containers ai and ml automation uh are gonna power that those big four are gonna power 2021 spending here's a graphic we use to predict that it plots survey data for the various technologies within the etr taxonomy net score or spending momentum on the vertical axis and market share or presence in the data set it's a pervasive measurement on the horizontal axis the one that matters here is the vertical that dotted line of 40 percent anything above that is considered highly elevated and these four areas have held served this year based on recent etr survey data that we're not showing here we'll we'll bring that into our 2022 prediction so this prediction came in correctly for the most recent survey data and that's our measurement system on this one so we're going to take an a for this one too now on the penelope ultimate prediction here we came back to automation saying that the automation mandate accelerates in 2021 uipath and automation anywhere we said would go public but microsoft remains a threat to these pure play rpa vendors well we gave ourselves a b on this one doubling down on automation anywhere going public you know that was wrong but we definitely saw this year companies leaning hard into automation and microsoft despite the fact that it doesn't have as feature rich a product and offering as uipath and automation anywhere microsoft remains a very large presence you know we spoke to a lot of customers at the uipath forward four event in october in las vegas physical event and they confirmed you know this is true but at the same time so they're using power automate from microsoft but also using in this case uipath so they've kind of confirmed that yeah it's not the same we use that for some of our productivity we're an azure customer it's easy for us but they're still leaning heavily and investing heavily into uipath and i think the same can be said for automation anywhere but autom but power automate shows up as a big time leader in the magic gartner magic quadrant so it can't be ignored but clearly the two leaders in rpa have a sizable product advantage relative to the legacy software players now if you look at the comment on pega systems they cooled off a bit as measured by their stock price their revenue grew 13 percent last quarter on a year-on-year basis but perhaps we overestimated the tailwind effect and the company's momentum so we'll take a b on this prediction correct call on the automation trend and the big software vendors piling in ibm et cetera but the chance we took on automation anywhere again was a miss so we'll dig ourselves on that and our last prediction for 2021 was 5g rollouts push new edge iot workloads and necessitate new system architectures now much of this prediction you can see in the underlying bullets here really related to the observation that arm was dominating at the edge it would find its way into the mainstream enterprise workloads and we've been asking a lot of the mainstream you know companies the oems you know what do you what do you see with with arm in the enterprise and they say yeah we don't see it yet but very clearly this came into focus in 2021 is aws announced graviton 3 now and new inference and new training silicon these are different types of workloads that are emerging in the enterprise these are all based on arm microsoft google alibaba oracle and others are now shipping or readying arm-based systems for the enterprise when you look at new storage network and security appliances and other systems they're very offering and often including arm-based processors to assist with the offloads and look intel is definitely under product under pressure as we've predicted many times not just in our predictions post even pat gelsinger has admitted this is a turnaround it's going to take at least five years that's kind of new and recent data that he's made public so we're going to take an a minus on this one we're going to take off some points for the fact that you know 5g rollouts in edge are evolving and this is a longer term trend but the underlying points that we made on this slide are still pretty solid now if we use the following scale where a plus is a hundred out of a hundred a minus is a 90 a b is an 85 a b minus is an 80 and a c is a 75 out of 100 and we exclude that incomplete prediction on data architectures we average out to an 87.8 so that's a solid b plus and so the professor in us said hey little yellow sticky good effort as most of the predictions could be quantified and or you know we tried to object objectively score them there were some layups in there so yeah maybe we'll try to take more risks uh you know or not you know we we we'll see we like winning and so you know you always have to couch some of these things with some obvious ones but but really try to give some detail underneath that's maybe non-obvious um and we'll try to keep it down in the legs we did this year to one or two multi-year predictions so what's next well eric bradley and i were working on our 2022 predictions we're going to release those in the next couple of weeks so stay tuned for that you know what do you think how did we do you know we're grading ourselves here love to know you know for we're off base on base we're too hard on ourselves too easy give us your feedback don't forget these episodes are all available as podcasts wherever you listen all you do is search breaking analysis podcast check out etr's website at etr dot plus remember we also publish a full report every week on wikibon.com and siliconangle.com you can always get in touch with email david.velante at siliconangle.com you can dm me at divalante or comment on our linkedin posts this is dave vellante for the cube insights powered by etr have a great week everybody stay safe be well we'll see you next time [Music] you

>>Um, okay, thanks to the studio there for the handoff. Appreciate it. We're here for breaking news and it's exciting that we have who's the managing director. Google is breaking some hard news here, Dave. We want to bring him in and get commentary while we end up Dave too. Honestly, the story here is cloud city. We are in the cloud city and all, thanks for coming on remotely into our physical hybrid set here. Thanks for coming >>On. Thank you, John. And very excited to be here. What Juliet. >>Well, we got Bon Jovi ready to play. Everyone's waiting for that concert in the year. The only thing standing between bunch of LV and all the great stuff. So a lot of people watching. Thanks for coming on, sir. So you guys got some big news, um, first Erickson partners with you guys on 5g platform, deal with Anthem, as well as, uh, open ran Alliance. You guys are joining huge, a Testament to the industry. I see Google with all your innovation you guys have in the big three cloud hyperscalers. Obviously you guys invented SRE, so you know, you no stranger to large scale. What's the news. Let's tell us why this Erickson news is so important. Let's start with the Erickson announcement. >>Sure. So John, I mean, we are very excited today to finally bring to the market, the strategic partnership that we've been building with Erickson for the last few months, uh, the partnership to recent retreat, which is very important to the industry is you're actually doing this in conjunction with very large CSPs. So it's not been in isolation. You are in fact in the press release that we have already launched something to get the big telecom Italia in Italy, because you will see that also in the past. And really the partnership is on three pillars. Number one, how can CSBs monetize 5g and edge, which is the real team at the moment using Google clouds solutions like the edge computing platform and, and POS, and Erikson's cutting edge 5g components, 5g solutions. And if we can onboard these together at the CSP, such as telecom Italia, that creates massive pain to market efficiency. So that's 0.1 because speed and agility is key John, but then point to it also unlocks a lot of edge use cases for a bunch of verticals, retail, manufacturing, healthcare, so on, which are already starting to launch together with that. Excellent. And so that's the second pillar. And then the final pillar of course, is this continuously cloud native innovation that you just highlighted. John, we are going to try and double down on it between ourselves and Ericsson to really time created this cloud native application suite or 5g or whatever. >>Talk about the innovations around cloud, because the message we're hearing him this year at mobile world Congress, is that the public cloud is driving the innovation. And, you know, I can be a little bit over the top. So the telcos are slow. They're like glaciers, they move slow, but they're just moving packets. They are there. They're moving the network around. The innovation is happening on top. So there's some hardened operations operating the networks. Now you have a build concept cloud native enables that. So you've got containers. You can put that encapsulate that older technology and integrated in. So this is not a rip and replace. Someone has to die to win. This is a partnership with the tellers. Can you share your thoughts on that piece? >>Smart Antone's photo? We believe that it's a massive partnership opportunity. There's zero conflict or tensions in this sort of ecosystem. And the reason for that is when you talk about that containerization and right once and deploy everywhere type architecture that we are trying to do, that's where the cloud native really helps. Like when you create Ericsson 5g solutions with the operators, adjust telecom Italia, once you build a solution, you don't have to worry about, do I need to kick it back again and again, but every deployment, as long as your mantra, genetics and working, you shouldn't be able to have the same experience. >>Yeah, I'm John. I talk all the time in the cube about how developers are really going to drive the edge. You're clearly doing that with your distributed cloud, building out a telco cloud. I wonder if you could talk a little bit more about how you see that evolving. A lot of the AI that's done today is done in the cloud. A lot of modeling being done. When you think about edge, you think about AI inferencing, you think about all these monetization opportunities. How are you thinking about that? >>So I think David, first of all, it's a fan best six Sigma in how we are looked in at analytics at the edge, right? So we, uh, we have realized that is a very, very, uh, uh, uh, data computing, heavy operation. So certainly the training of the models is still going to stay in cloud for the foreseeable future. But the influencing part that you mentioned is there something that we can offer to the edge? Why is that so important in the pandemic era, think of running a shop or a factory floor, completely autonomously meeting zero minimal human intervention. And if you want to look at an assembly line and look at AI influencing as a way to find out assembly line defects on products in manufacturing, that's very difficult problem to solve unless you actually create those influencing models at the edge. So creating that ecosystem of an Erickson and a Google cloud carrier gives you that edge placement of the workloads that would fit right next to our factory floor in our manufacturing example. And then on top of that, you could run that AI influence thing to really put in the hands of the manufacturer, a visual inspection capability to just bring this to life. >>Great. Thank you for that. And now the other piece of the announcement of course, is the open, open ran. We've been talking about that all weekend and you know, you well, remember when cloud first came out, people were concerned about security. Of course. Now everybody's asking the question, can we still get the reliability and the security that we're used to with the telcos? And of course over time we learned that you guys actually pretty good at security. So how do you see the security component, maybe first talk about the open ran piece, why that's important and how security fits? >>Sure. So first of all, open trend is something that we have taken great interest in the last year or so as it started evolving. And the reason for that is fairly simple. Dave, this aggregation of networks has been happening for some time in the radio layer. We believe that's the final frontier of sort of unlocking and dis-aggregating that radio layer. And why is it so important? 80% of the operators spend globally is on radio. 80% is on radio. If you disaggregate that. And if the internet synergies for your CSP partners and clients, that meant you have standard purpose hardware standard for software with open interfaces, number one, massive difference in VCO. Number two, the supply chain gets streamlined and become still really, really simple way to manage a fairly large distribution. That's about to get larger in 5g and the capital clarity that 5g needs. >>You're thinking of tens of thousands of micro cells and radio cells going everywhere. And having that kind of standardized hardware software with openings of Essex is an extremely important cost dimension to every new site finished that the reason we got to exact open brand was you can now run for a lot of API APIs on the radio net, cetera, that then certainly brings a whole developer community on the radio later. That then helps you do a bunch of things like closed loop automation for network optimization, as well as potentially looking at monetization opportunities by hyper personalizing, yours and mine experiences at the waist level from the self-doubt. And so that really is what is driving us towards this open grind paper. Come on, we go and >>Got a minute and a half. I want to get your thoughts real quick on, on open source and the innovation. Um, Danielle Royston, who's the CEO of telco, Dr. She's at a keynote today. And she mentioned that the iPhone 14 years ago was launched. Okay. And you think about open and you mentioned proprietary with the 5g and having Iran be more commodity and industry standard. That's going to lower the costs increase the surface here of infrastructure. Everyone wins because everyone wants more connectivity options. Software is going to be the key to success for the telco industry. And open source is driving. That is Android. The playbook that you guys pioneered, obviously at Google with the smart phones was very successful. How is that a playbook or an indicator to what could happen at telecom? >>Absolutely. John and the parallel and analogy that you raised is photon. Be believed in the telco world and tossed multi cloud as a unifying software development layer. The app development platform is the way that people will start to drive this innovation, whether it's radio or whether it's in the core or whether it's on the side of pups, same software planning, everywhere that really allows you that whole development models that we are familiar with, but on the telecom side. And that's where we are seeing some massive innovation opportunities for systems to come on board. >>That's great stuff. And I was just heard someone in the hallway just yesterday and say, you want to be the smartphone. You don't want to be the Blackberry going forward. That's pretty much the consensus here at mobile world Congress. I'm all. Thank you for coming on and sharing the hard news and Google regulations on the Erickson Anthem platform, a deal as well as the open Ranton Alliance. Uh, congratulations. Good to see you. And by the way, you'll be keynoting tomorrow on the cube featured segment. So >>Watch that in there. Thank you, John. Thank you. Glad >>To be here. Benching director telecom, industry, solicitor, Google, obviously player. He's managing that business. Big opportunities for Google because they have the technology. They got the chops, Dave, and we're going to now bring this Daniel. Russia says here when to bring up on the stage, Bon Jovi is about to go on behind us Bon Jovi's here. And this is like a nightclub, small intimate setting here in cloud city. Dave Bon. Jovi's right there. He's going to come on stage after we close down here, but first let's bring up the CEO of telco. Dr. And yeah, it was great to see she's hot off the keynote. We're going to see you to Mike. Great to see you. Oh, it's great to be there. We're going to see you tomorrow for an official unpacking of the keynote, but thanks for coming by and closing, >>Swinging by. I never closed down the show. It's been a big, it's been a big day-to-day at MWC and in cloud city, really starting to get packed. I mean, everyone's coming in the band's warming up. You can kind of hear it. Um, I think Elon Musk is about to go on as well. So I mean, it's really happening all the buzz about cloud city out there in the hallway. Yeah. Yeah, no, I mean, I think everyone's talking about it. I'm really, really excited with how it's going. >>Well, this is awesome. While we got you here, we want to put you to work being the cube analyst for the segment. You just heard Google. Uh, we broke them in for a breaking news segment. So hard news Erickson partnership. We're in the factory, former Erickson booth. They're not even here, it's now the Calco VR booth, but that's a relation. And then open ran again, open source, you got five G you got open source all happening. What's your take on this? >>You see, you know, there's two big. And I, I talked about it, my keynote this morning, and there's two big technological changes that are happening in our industry simultaneously. And I don't think we could have had it MWC 21. I certainly wanted to make it about the public cloud. I think I'm sort of successful in doing that. And I think the other piece is open ramp, right? And I think these two big shifts are happening and, um, I'm really thrilled about it. And so, yeah, >>Well I loved your keynote. We were here, live. Chloe was here filling in for Dave while David was going to do some research and some breaking stories to you are on stage. And we were talking well, he's like, there's trillions of dollars, John on the table. And I was making the point, the money is at the middle of the table and it's changing hands if people don't watch it. And then you onstage that this trillions of dollars, this is a real competitive shift with dollars on the table. And you've got cultural collision. You got operators and builders trying to figure out it feels like dev ops is coming in here. Yeah. I mean, what's the, what's the holistic vibe. What's >>The, yeah, I think my message is about, we can use the software and specifically the software, the public cloud to double your ARPU without massive cap X expenditure. And I think the CSPs is always viewed to get the increase in ARPU. I got to build out the network. I got to spend a lot of money. And with these two technologies that require might be dropped. And then in exchange for doubling our poo, why not? We should do that. Absolutely. >>You know, your message has been pretty clear that you got to get on, on the wave that arrived the way you're going to become driftwood. As John said yesterday. And I think it's pretty, it's becoming pretty clear that that's the case for the telcos. I feel like Danielle, that they were entering this decade, perhaps with a little bit more humility than they have in the past. And then, you know, maybe, especially as it relates to developers, we're just talking about building out the edge. We always talk about how developers are really going to be a key factor in the edge. And that's not a wheelhouse necessarily. It's obviously they're going to have to partner for that to have going to have to embrace cloud native. I mean, it's pretty clear that your premise is right on it. We'll see how long it takes, but if it, if they don't move fast, you know, what's going to happen. Well, I >>Think you look at it from the enterprise's perspective. And I think we just heard Google talking about it. We need to provide a tech stack that the enterprises can write to now, historically they haven't had this opportunity historically that CSPs have provided it. Now you're going to be able to write against Google's tech stack. And that's something that is documented. It's available. There's developers out there that know it. Um, and so I think that's the big opportunity and this might be the big use case that they've been looking for with 5g and looking forward to 16th. And so it's a huge opportunity for CSS. >>I think that's an important point because you got to place bets. And if I'm betting on Google or Amazon, Microsoft, okay. Those are pretty safe bets, right. Those guys are going to be around. >>I mean, they're like, no, don't trust the hyperscalers. I'm like, um, are you guys nuts? If they're safe, right. Safe >>Bets in terms of your investment in technology, now you got to move fast. Yeah. That's the other piece of it. You've got to change your business model. >>Well, you gotta be in the right side of history too. I mean, I mean, what is trust actually really mean? The snowflake trust Amazon, it sure did to get them where they are. Um, but now that's a >>Great example, John. It really is because there's a company that can move fast, but at the same time they compete with the same time they add incremental value. And so yeah, >>Here, the, you can see the narrative like, oh no, we're partnering telcos. Aren't bad. No one needs to die to bring in the new containers. Do we'll help them manage that operational legacy. But if they don't move, they're going to have an asset. That'll get rolled up into a SPAC or some sort of private equity deal. And because the old model of building cap backs and extract rents is kind of shifting because the value shifting. So to me, I think this is what we're watching still kind of unknown. Danielle Love to get your thoughts on this because if the value shifts to services, which is a consumption model like cloud, yeah. Then you can, don't have to try and extract the rents out of the cap ex >>Yeah. I don't think you need to own the entire stack to provide value. And I think that's where we are today in telco, right there. I mean, nuts and bolts of the stack, the servers, you know, the cabling, everything. And I'm like, stand on the shoulders of these amazing tech giants that have solved, you know, mega data centers, right. Huge data centers at scale, and just leverage their, their investment and uh, for your own benefit, it starts to focus. And we heard, um, all talking about it starts to focus on your subscriber and driving a great experience for us. Right? Yeah. Well, you're >>Talking about that many times they can do, but you're right. If the conversation hasn't has to go beyond, okay, we're just conductivity. It's gotta be ongoing and be like, oh, it's $10 a month for roaming charges. Ah, great. Yeah. Tick that box, right? It's those value added services that you're talking about and it's an infinite number of those that can be developed. And that's where the partnerships come in a creativity in the industry. It's just >>A blank piece of paper for, well, we, you know, everyone thinks Google knows everything about you, right. We've had the experience on our phone where they're serving of ads and you're like, how did you write Facebook? But you know, who knows more about us than, than Google or your mother, even your telco, you take your phone with you everywhere. Right? And so it's time to start unlocking all of that knowledge and using it to provide >>A really great, by the way, congratulations on the CEO to Toby and the investment a hundred million dollars. That's a game changer statement again, back to the billing. And there's a good, there's a whole new chain, even all up and down the stack of solutions, great stuff. And I want to unpack that tomorrow. I don't hold that. We're going and we're going to meet tomorrow. I want, I wanna want to leave that to stay >>In the data for a second, because you made the point before in your keynote as well. That it's, that it's the data that drives the value of these companies. Why is it that apple, Amazon, Google Facebook now trillion dollar evaluations. It's all about the data and the telcos have the data, but they can't figure out how to turn that into valuation. >>There's two parts of the data problem, which is number one, the data is trapped in on-premise siloed systems that are not open. You can't connect them and they certainly can't do without. And we talked about it, I think yesterday, you know, millions of dollars of expenditure. And I think the other piece that's really interesting is that it's not connected to a mechanism to get it out in a timely manner, right? This is data that's aging by the minute. And when it takes you weeks to get the insight it's useless. Right? And so to Togi we announced the launch to Togi, I'll get a little to Tokyo plug in there, right. To Toby is connecting that insight to the charger, to the engagement engine and getting it out to subscribers. I think that's the beginning of this connection. I think it's a hard problem to solve and would have been solved already. >>But I think the key is leveraging the public cloud to get your data out of on-premise and, and mashing it up against these great services that Google and Azure and Amazon provides to drive it into the hands of the subscriber, make it very actionable, very monetizeable right at the end, that's what they want. More ARPU, more revenue. Right. And you know, we heard some keynotes from GSA yesterday, some big, big guys, you know, talking about how, you know, it's not fair that these other communication platforms are not regulated. You know, telco is heavily regulated and they're like, it's not fair. And I'm like, yep. It's not fair. That's like right. South complaining about it and start treating your customers better. So they are, they're happy to give you more. >>Yeah. And I think that's the message about the assets do, um, well, one thing I will say is this mobile world Congress is that we've been having a lot of fun here in cloud city. I have to ask you a personal question. Have you been having fun? You look great on the keynote of spring to your staff, cloud cities. Beautiful. Spectacular here. Give us some highlights, personal highlights from your trip. So far, >>Number one, I'm, I'm psyched that the keynote is delivered and, and done. I mean, I think it takes my blood pressure down a blind, um, you know, the spring in my step, I wore these fun little tennis shoes and, and that was really fun, but yeah, I'm having, I'm having, I think a lot of things, great conversations. Yes. The attendance has reduced, um, you know, usually you see hundreds of people from the big group carriers, especially the European groups and yeah, the attendance is reduced, but the senior guys are here, right. The senior leadership teams are in the booth or having meetings, running amazing conversations. I think the last year we really did live a decade in one year. I think they woke up to the power of the public cloud. I mean, there was no way that they got business done without cloud based tools. And I think the light bulb went off, I think I'm right in the right moment. Awesome. Do you think that, >>Do you think that they'd think in there, like left money on the table because you look at the pandemic, there were three categories of companies, losers, people who held the line struggled and then winners. Yeah. Big time tailwind booming. Obviously the zooms of the world telcos did well. They were up and running. Uh, this, this was good. You think we might've left some money on the table? They could have done more. >>Yeah. I think the ones that were, you know, people talk about digital transformation where digital telco we're digitally enabled, but I think the pandemic really tested this. Right. Can you deliver a contactless SIM or do you need to go to a store in person to get to go pick it up? And I had a broken SIM during the pandemic. My provider made me go to the store and I'm like, is it even open? And so I heard other stories of telcos that were very digitally enabled, right. They were using Uber to deliver Sims, all sorts of fun, crazy stuff and new ideas. And they were able to pivot right. Agile. And so I think, I think that was a really big telemedicine booming. So >>If you were in a digital business during the pandemic in general, you're out of business maybe unless you were telco, but I think you're right. I think the light bulb went off. It was an aha moment. And they said, oh, if >>We don't, I mean, I am not kidding. Right. As an ex CEO where I was trying to collect signatures on renewals, right. Here's a DocuSign, which for the world is like, duh. I mean, our school uses DocuSign. I had telcos that required an in-person signature, right. In some country once a month on Tuesday between 10 and two. And I'm like, how are you doing business? Like that? That's like the dark ages. >>Yeah. This is where the crypto guys got it right. With know your customer. Right. >>Because they have the data. Well, there's a lot of things that come in wrong. We don't want to get the whole show on that, but then you have great to have you drop biopsy Bon Jovi's here. How did you get Bon Jovi? Huge fan, New Jersey boy Patriots fan. We'd love it. Well, >>Yeah. I mean, who doesn't love Bon Jovi. Right. Um, we knew we wanted a rocker, right. Rock and roll is all about challenging the status quo. Um, that, I mean, since the beginning and that's what we're doing here, right. We're really challenging. Like the way things have been done in telco kind of just shattering the glass ceiling and lots of different ways. Right. Calling the old guys dinosaurs. I'm sure those guys love me. Right. I mean, how much do they hate me right now? Or they're like that girl? Oh, we're punk >>Rock. They're rock and roll. Right, right. I mean, maybe we should have gotten the clash >>Right. Black flag. Right. I'm a little bit old. >>Accessible. Still >>Edgy. Yeah. So really excited to get them here. Um, I've met him before. Um, and so hopefully he'll remember me. It's been a couple of years since I've seen him. So can't wait to connect with him again. I think we have Elon Musk coming up and that's going to be, it's always exciting to hear that guy talk. So >>Yeah, it could be inspiration off after you've talked to space, space X and kind to star lake. >>Right. I mean, those guys are launching rockets and deploying satellites. And >>I think that's really interesting for >>Rural right. In telco. Right. Being able to deploy very quickly in rural where the, maybe the cost, um, you know, per gig doesn't make sense. You know, the cost for deployment of tower. I think, I mean, that's an interesting idea right there. It's exciting. It's exciting. >>He's inspirational. I think a lot of people look at the younger generation coming into this issue. Why are we doing things? A lot of people are questioning and they see the cloud. They're saying, oh, Hey, you're a B, why are we doing this? This is such an easier, better way. Yeah. I think eventually the generation shifts >>It's coming. I'm so excited to be a part of it. Yeah. Great, >>Great leadership. And I want to say that you are real innovative, glad to have us here and presenting with you here. >>Awesome team. I'm psyched to have you guys. We talked last night about how great this partnership has said. Yeah. >>Cuba's keep us rocking inside the cloud city. The streets of the city are packed in here. All stuff. Great stuff. Thanks for coming on. Thanks. Bon Jovi is here. We've got a shot. A bunch of we do we have a screenshot of Bon Jovi? Yup. There it is. Okay. He's about to come on stage and uh, we're gonna take a break here. We're gonna take and send it back to Adam and the team in the studio. Thanks guys.

(upbeat electronic music) >> Okay thanks, Adam, and the studio. We're here on the floor in Cloud City, right in the middle of all the action, the keynotes are going on in the background. It's a packed house. I'm John Furrier. Dave Vellante's on assignment, digging in, getting those stories. He'll have the analysis, he'll be back on theCUBE, but I want to welcome Chloe Richardson, who has been holding down the main stage here in Cloud City with amazing content that she's been hosting. Chloe, great to see you. Thanks for coming on theCUBE, and kicking it off day two with me. >> No, not at all. Thank you for having me! It's very exciting! I love what you guys have got over here, very fun! >> We're inside theCUBE. This is where all the action is, and also, Cloud City is really changing the game. If you look at what's going on here in Cloud City, it's pretty spectacular. >> No, I mean, the atmosphere is absolutely palpable. Isn't it? You can just feel it. People walk in and see what the future looks like for the telecoms industry. Very exciting. >> And you've been doing a great job on the main stage, we're really loving your content. Let's get into some of the content here. After the keynotes are going on, we're going to have DR maybe fly by the set later, we're going to check that out. But let's check out this videotape. This is TelcoDR. You got to check out this reel, and we'll be right back, and we'll talk about it. (smooth electronic music) >> TelcoDR burst onto the global telecom scene this year, making headlines for taking over the huge Erickson space at MWC 21, and for building Cloud City in just a hundred days. But why did the company go to such trouble? And what is their unique offering to the telecoms industry? And what drives their dynamic CEO, Danielle Royston, or DR, as everyone calls her? Cloud City Live caught up with DR, away from the hustle and bustle of the city to find out. (upbeat instrumental music) >> Hi, I'm Danielle Royston, coming to you from beautiful Barcelona! I'm here for MWC 21. About a hundred days ago, I decided to take over the iconic Erickson booth to turn it into Cloud City. Cloud City has over 30 vendors, and 70 demos, to introduce telco to what I think is the future for our industry. We're going to have three awesome experiences. We're going to talk about the new subscriber experience. We're going to talk about what's in store for the new network, and the future of work. And I'm really excited to create a community, and invite awesome telco executives to see this new feature. It's been a really tough 18 months, and we didn't know what MWC 21 was going to be like in terms of attendance. And so from the get-go, we planned this amazing experience that we call Cloud City Live. At Cloud City Live, we have two main components. We have the speaker series, where we have over 50 speakers from Amazon, Google, Microsoft, as well as CSPs, and awesome vendors, talking about the public cloud in telco. The second part of Cloud City Live is theCUBE. Think of this as like an ESPN desk of awesome tech interviews focused on telco and the public cloud, hosted by John furrier and Dave Vallente. Dave and John are going to talk to a variety of guests focused on telco in the public cloud. It's a great way for our virtual participants to feel like they're at the show, experiencing what's going on here. So excited to have them as part of the Cloud City booth. There's a ton of innovation going on in telco, and 20 years ago, Elon Musk set on his mission to Mars. I, like Elon Musk, am on a quest to take telco to the public cloud. Every year at MWC, there's always a flurry of announcements, and this year is no different. At this year's MWC, Totogi, a startup that I invested $1,000,000 in, will be launching. Totogi is introducing two products to the market this week at MWC. The first is at planetary scale charger. More than a charger, it's an engagement, coupling your network data with charging information to drive subscriber engagement, and doubling your ARPU. The second product that Totogi is introducing is a planetary scale BSS system, built on top of the TM Forum Open APIs. Both of these products will be available for viewing in the virtual booth, as well as on the show floor. The public cloud is an unstoppable mega trend that's coming to telco! I'm super excited to bring to you the vendors, the products, the demonstrations, and the speakers, both to people here in Barcelona, and virtually around the world! (upbeat instrumental music) Well, that was a fascinating insight into the origins of TelcoDR, why public cloud is going to truly disrupt the telecoms industry, and why DR herself is so passionate about it. If you'd like to find out more, come and see us at Cloud City. (groovy electronic music) >> Okay, thanks. Just rolling that reel. Chloe, I mean, look at that reel, I mean, DR, Danielle Royston, she's a star. And I've seen a lot of power players in the industry. She's got guts and determination, and she's got a vision, and she's not just, you know, making noise about telco and cloud, there's actually a lot of real good vision there! I mean, it's just so impressive. >> No, it really is. And for me, it's almost like the next moonshot. It's the moonshot of the telco world! She's innovative, she's exciting. And if we've learned anything over the last 18 months, it's that we need that in this industry, to grow for the future of the industry. So, so exciting. I think she's a real inspiration! >> And I love the fact that she's so takes the tiger by the tail. Because the telco industry is being disrupted, she's just driving the bus here. And I remember, I did a story on Teresa Carlson, who was with Amazon Web Services, she was running the public sector, and she was doing the same exact thing in that public sector world in DC, and around the world. She opened up regions in Bahrain, which as a woman, that was an amazing accomplishment. And she wasn't just a woman, she was just a power player! And she was an exceptional leader. I see DR doing the same thing, and people aren't going to like that, I'll tell you right now. People are going to be like, "Whoa, what's going on here?" >> Now of course, it's always that way we pioneers though, isn't it? At the time, people thinking what is going on here, we don't like change, why are being shaken up? But actually, afterwards, in retrospect, they think, "Oh, okay. I see why that happened, and we needed it." So, really exciting stuff. >> Making things happen, that's what we're doing here on theCUBE. Obviously, the main stage's doing a great job. Let's go check out this highlight reel. If you're watching and you missed some of the action, this is obviously the physical event back since 2019 in February, but there's also a hybrid event, a lot of virtual action going on. So, you got theCUBE Virtual, you got a lot of content on virtual sites. But in person here, we're going to go show you a highlight reel from what we did yesterday, and what was happening around the show. Enjoy this quick highlight reel from yesterday. (groovy electronic music) (cheerful instrumental music) (groovy electronic music) Okay. We're back here in theCUBE. We're on the main floor out here with Chloe, who is emceeing, hosting, and driving the content on the Cloud City main stage. Chloe, it's been great here. I mean so far, day one, I was watching your presentations and fireside chats you've been hosting. Awesome content. I mean, people are like jazzed up. >> Yeah, no, for sure. We had Scott Brighton on yesterday, who was our opening keynote on the live stage, and his session was all about the future of work, which is so relevant and so pertinent to now. And he talked about the way it's changing. And in 10 years, it's going to be a trillion dollar industry to be in the cloud at work. So, really interesting! I mean, yeah, the atmosphere here is great. Everyone's excited. It's new content everyday. And that's the thing, it's not stale content! It's stuff that people want to hear. People are here for the new hot trends, the new hot topics. It's very exciting. >> Yeah, the next big thing. And also it's a fiscal event, so since 2019, this Mobile World Congress has been a massive event, and hasn't happened since February, 2019. That's a lot of time that's elapsed in the industry because of COVID, and people are glad to be here. But a lot of stuff's changed! >> Yeah. It's a different world, right? I mean, two years in the telco industry is like a hundred years elsewhere. Everything has changed! Digital transformation migration, obviously cloud, which is what we're talking about over here at Cloud City Live. I'm wondering though, John, I'd like to pick your brains on something. >> John: Sure. >> It has changed in the last two years. We know that! But what about the future of Mobile World Congress? How do you see it changing in the next few years. >> Oh, man. That's a great question. I mean, my observation, I've been coming to the show for a very long time, over a decade and a half, and it's been a nerdy show about networks, and telecom, which is basically radios, and wireless, and then mobile. But it's very global, a lot of networks. But now it's evolving! And many people are saying, and we were talking on theCUBE yesterday, Dave Vellante was commenting, that this show is turning into a consumer like show. So CES is the big consumer electronics show in the US, in Las Vegas every year. This show has got a vibe, because of all the technology from the cloud players, and from the chips, getting smaller, faster, cheaper, more capability, lower power. So people look at the chips, the hardware. It's less about the speeds and feeds, it's more about the consumer experience. We got cars. I was talking to a guy yesterday, he said, "Vehicle e-commerce is coming." I went, "What the hell his vehicle e-commerce?" And you could be on your app driving down the freeway and go, "Hey, I want some food." Instead of having it delivered to you, you order it, you pick it up. So that's kind of what can be happening now in real time, you can do all kinds of other things. So, a lot of new things are happening. >> Yeah, I think so. Do you see that as another disruption for the industry? That is, the fact that it's moving to be more consumer focused? Is there anything we should be worried about in that space? >> Well, I think the incumbents are going to lose their positions. So I think in any new shift, new brands come in out of nowhere. And it's the people that you don't think about. It's the the company that you don't see. (audience in background applauding) And we got DR on the main stage right here, look at this! We saw her walk out with the confidence of a pro. >> Chloe: Yeah, for sure. >> She just walked out there, and she's not afraid. >> Well, as she said in her video, she is ready to wake them up! And you can see as soon as she walks out, that is what she intends to do today. >> I love her mojo. She's got a lot of energy. And back to the show, I mean, she's just an example of what I was saying. Like in every market shift, a new brand emerges. >> Chloe: Yep. >> I mean, even when Apple was tainted, they were about to shut down, they were going to run out of cash, when Steve Jobs brought back Apple, he consolidated and rebooted the company, the iPad was a seminal, iPod, a seminal moment. Then the iPhone, and just, the rest is history. That kind of disruption is coming. You're going to see that now. >> Oh, it's exciting though, isn't it? To be future ready, rather than future proof! But actually I wanted to ask you something as well, because we are seeing all these cloud players getting hot under the collar about telco. Why are they so excited? What's the buzz about wire, as you're on AWS and Google Cloud, why do they want to have a slice of the pie? >> Well, I think they're hot and heavy on the fact that telco is a ripe opportunity. And it used to be this boring, slow moving glacier. It's almost like global warming now, the icebergs are melting, and it's going to just change. And because of the edge, 5G is not a consumer wireless thing, it's not like a better phone. It's a commercial app opportunity, because it's high bandwidth. We've all been to concerts, or football games, or sporting events where a stadium is packed. Everyone gets bars on their wifi, but can't get out. Can't upload their picture to Instagram. Why? Because it's choking them on the network. That's where 5G solves a problem. It brings a lot of bandwidth, and that's going to bring the edge to life, and that's money. So when you got money, and greed, and power, changing hands, if it's on the table, and the wheel's spinning, it could be double zero, or it could be lucky seven. You don't know! >> Oh, for sure. And that's certainly enough to get all the big players hot and bothered about getting involved! And I suppose it circles back to the fact that DR is really leading the charge, and they're probably thinking, "Okay, what's going on here? This is different. We want something new." You did notice it, OpenRAN is something that we've been talking about over the last day or so. We've had quite a few of us speakers over here at Cloud City Live mention OpenRAN. What is it all about, Don? Because why all the buzz if 5G is such a hot topic? Why are we get excited about it? >> That's a great thing. The 5G certainly will drive the main trend, for sure. OpenRAN is essentially an answer to the fact that 5G is popular, and they need more infrastructure. So open source, the Linux Foundation, has been the driver for most of the open source software. So, they're trying to make open software, and open architectures, to create more entrepreneurial activity around hardware, and around infrastructure, because we need more infrastructure, we need more antennas, we need more transceivers, we need more devices. That could be open. So in order to do that, you got to open up the technology, and you want to minimize the licensing, and minimize a lot of these, you know, proprietary aspects. >> What did we look at? So on Wednesday, we've got a great keynote from Phillip Langlois, who is CEO and founder of P1 Security. And he's coming to talk to us about cybersecurity within the cloud, and within telco. So you just mentioned that OpenRAN is all about having open source, about having that space where we can share more efficiently and easily more easily. What does that mean for security though? Is it at risk? >> I think it's going to increase the value of security, and minimize the threats. Because open source, even though it's open, the more people that are working on it, the more secure it could be. So yes, it could be more open in a sense that could be explored by hackers, but open can also protect. And I think we've seen open source, and cloud in particular, be more secure. Because everyone said, cloud is not secure, open source is insecure. And as it turns out, when the collective hive minds of developers work on things, it gets secure. >> And it is interesting, isn't it? Because we have seen that there has been an uptick in cyber security threats, but actually I was speaking to some leaders across various industries, and particularly in tech, and they were saying, actually, there's not been an uptick in attempted threats, there's been an uptick because with this open-source environment, we are able to track them, and measure them, and defend more efficiently. So actually, they're being batted away. But the number is probably the same as it always was, we just didn't know about them before we had this open source environment. >> There's more money in threats, and there's more surface area. So as the tide rises, so to the threats. So on a net basis, it's more, because there's more volume, but it's pretty much the same. And look it, there's money involved, they are organized. There's a business model on attacking and getting the cash out of your bank, or ransomware is at an all time high. >> Yes! >> So this is like a big problem, and it's beyond the government. It's around individual freedom. So, security is huge. And I think open source and cloud are going to be, I think, the answer to that. >> Yeah, for sure. And it's, again, about collaboration, isn't it? Which we talk about all the time, but without collaboration, the industries are going to have to work together to promote this environment. So yeah, it should be good to talk with Phillip on Wednesday. >> I'd just say on security, don't download that PDF, if you don't know who it came from. The phishing is always good. Well, we got some great stuff coming up. We're going to have a great day. We got a video here of Mobile World Live. We're going to show this next segment, and we're going to toss it to a video. And this is really about to give the experience, Chloe, for people who aren't here. To get a feel for what's going on in Barcelona, and all the action. And if you look at the video, enjoy it. >> Hi, I'm Daniel Royston, CEO and founder of TelcoDR. But you can call me DR! Ready for some more straight talk about telco? It's go time! Let's do it. Holy shit! It sure is a great time to be a tech company! I mean, if you're Amazon, Microsoft, Google, Grab, Twilio, Door Dash, or Uber, life's pretty great! Just look at these stock prices over the past five years, with their shareholder value going up and to the right. Totally amazing! But where's telco? Dare I add our stocks to this awesome chart? Let's compare these fabulous tech stocks to AT&T, Vodafone, Telefonica, TIM, America Movil, and Zain Group. Huh. Not so great, right? Yep. I'm talking directly to you, senior telco execs. I'm here to wake you up! Why is it that Wall Street doesn't see you as tech? Why aren't CSPs seen as driving all the tech change? Why is it always Apple, Amazon and Google who get the big buzz? But more importantly, why isn't it you? Before I came to this industry, I always thought of carriers as tech companies. I gave more of my money to AT&T than to Apple, because I really cared about the quality of the network. But I also wondered why on earth the carriers allowed all the other tech companies to take center stage. After spending the last few years in telco, I now understand why. It's because you are network people, you are not customer people! I get it. You have the security blanket. You're a network oligopoly. It's crazy expensive to build a network, and it's expensive to buy spectrum. It takes operational chops to run a killer network, and it takes great skill to convince Wall Street to finance all of it. You telco execs are amazing at all those things. But because you focus on the network, it means you don't focus on the customer. And so far, you haven't had to. Every Telco's KPI is to be less shitty than their next competitor. You don't have to be the best. Just don't be last. Everyone else's NPS is in the thirties too. Their mobile app ratings are just as terrible as yours. Everyone's sucks at customer sat. And it's widely acknowledged and accepted. Let's talk about the cost of that. The cost is not measured on market share against other MNOs. The cost is measured in lost ARPU that the tech guys are getting. Everyone knows about the loss of texting to WeChat, WhatsApp, and the other OTT apps. But it is not just texting. The total adjustable market, or TAM, of the mobile app disruptors is huge! Instead of remaining network focused, you should be leveraging your network into a premier position. And because you're network people, I bet you think I'm talking about coercive network leverage. That is not what I'm talking about! I'm talking about love, customer love. There is one thing the highly valued tech companies all have in common. They all crush it on customer love! They look at every interaction with the customer and say, how do we make the customer love this? Like Netflix has easy monthly cancellation, Amazon does no questions asked returns, Uber gives users a real time view into driver rating and availability. Compare those ideas to the standard telco customer interaction. The highly valued tech companies don't have the network oligopoly to fall back on like you do. To survive, they must make customers love them. So, they focus on it in a big way! And it pays off. Their NPS is close to 70, and they have app ratings of 4.5 or higher. A far cry from your thirties NPS, and app ratings of 3.5. If you want to have those huge tech multiples for yourself, you have to start thinking about these guys as your new competition, not the other telcos in your market. The crazy thing is, if you give up using your network as a crutch, and put all of your focus on the customer, the network becomes an asset worth more than all the super apps. Let's step back and talk about the value of super apps, and becoming customer centered! Retooling around the customer is a huge change, so let's make sure it's worth it. We aren't talking about 25% improvement. I'm going to show you that if you become customer centric, you can double your ARPU, double your valuation multiples, and drive big shareholder value, just like the tech companies on that chart! Now let's talk about the customer focused super apps. There are hundreds of companies in a variety of categories vying for your subscribers' disposable income. Movies, food delivery, financial services. Who are they? And why does Wall Street give them such high valuations and like them so much? Well first, look at what they are telling Wall Street about their TAM. They broadcast ridiculously huge TAMs that are greater than the telco TAMs. You know, who should have a ridiculously huge TAM? You! Hello? What I'm saying is that if you got what's yours, you double in size. And if you take the TAMs they throw around, you'd be five times as big. When I think about the opportunity to double ARPU, without having to double the cap ex to build out the network, I say to myself, hell yeah! We should totally go do it, and do whatever it takes to go get it. For example, let's talk about Grab. Grab is a Southeast Asian super app company with an expected $40 billion valuation. Grab's customer focus started in Rideshare, but then leveraged its customer love into wallet deliveries, hospitality, and investing. Their ARPU is now larger than a Telco's ARPU in countries where they compete, and they have a higher valuation than those telcos too. Imagine if you could combine a great user experience with the valuable services that helped grow your ARPU. That would be huge! So, how do you build a super app? I bet right about now, you're wishing you had a super app. Everyone wants a super app! A lot of money has been unsuccessfully spent by telcos trying to build their own. I bet you're saying to yourself, "DR, your pie in the sky sounds great, but it has no chance of success." Well, I'm betting things are about to change. There is a public cloud startup called to Totogi that is going to help carriers build world-class super apps. To have a successful super app, there is one key metric you need to know. It is the KPI that determines if your super app will be a success or a flop. It's not about the daily active users. It's not the average order value. It's not even gross merchandise value. It's all about the frequency of use per day by the user. That's the metric that matters. How many have you used that metric in your telco apps? Do you have a team driving up user app interactions every day? Most telco apps are used for top-up, or to check a bill. This is a huge missed opportunity. Super app companies excel at building great experiences and driving a huge amount of interactions. They have to, their business depends on it. They have to be customer focused. They have to keep bringing the user back to the app, every day, multiple times a day. And you know what? They do a great job. Customers love their super apps. They have great user experiences. Like Apple credit cards, no information required application process. They have high net promoter scores because of customer friendly policies. Like how Door Dash retroactively credits fees when you move to a better plan. And they have great app store ratings, because they do simple things, like remember your last order, or allow you to use the app, rather than forced you to call customer service. Customers of successful super apps love it when new services are added. And because of the customer love, every time something is added to the app, customers adopt it immediately. New services drive frequent daily user interactions. So our problem in telco is we have an app that is only open once per month, not multiple times per day. And without frequent opens, there is no super app. Hm, what do we have in telco that we could use to help with this problem? I wonder. While you don't currently have a mobile app that subscribers use multiple times a day, you have something that's 10 times better! You have a network. Subscribers already interact with your network. 10 times more frequently than any user with any of the super apps. But telcos don't leverage those interactions into the insanely valuable engagements they could be. Worse, even if you wanted to, your crappy, over customized, on-premise solutions, make it impossible. Thankfully, there's this new tech that's come around, you may have heard of it, the public cloud. When you bring the enabling technology of the public cloud, you can turn your network interactions into valuable super app interactions. And there's a special new startup that's going to help you do it, Totogi! Totogi will leverage all those network interactions, and turn them into valuable customer interactions. Let me repeat that. Totogi will leverage all those network interactions, and turn them into valuable customer interactions. Totogi allows the carrier to leverage its network, and all the network interactions, into customer engagement. This is something that super apps don't have, but will wish they did. But this magic technology is not enough. Telcos also need to move from being network focused to being customer focused. Totogi enables telcos to chase exciting revenue growth without that annoying, massive cap ex investment. Totogi is going to help you transform your sucky mobile apps, with the crappy customer ratings, into something your subscribers want to open multiple times a day, and become a platform for growth. I'm so excited about Totogi, I'm investing $100,000,000 into it. You heard me right. $100,000,000. Is this what it feels like to be SoftBank? I'm investing into Totogi because it's going to enable telcos to leverage their network interactions into super app usage! Which will lead to an improved subscriber experience, and will give you a massive jump in your ARPU. And once you do that, all those telco valuations will go from down here, (buzzes lips) to up here. And so I've been talking to some folks, you know, checking in, feeling them out, getting their thoughts. And I've been asking them, what do you think about telcos building super apps? And the response has been, "Click. Eh." Everyone says, no way. Telcos can't do it. Zero chance. Total goose egg. (egg cracking) One suggested I build a bonfire with a hundred million dollars, because then at least I wouldn't waste years of my life. Well, I think those people are dead wrong! I do believe that telcos can build super apps and make them super successful. The public cloud is changing all parts of telco, and Totogi and super apps are fundamentally changing the customer relationships. In one month at MWC, people will see what Totogi has to offer, and they will understand why I'm making this bold call. Because Totogi takes the value of the network, and the power of the public cloud, to help telcos move from being network centric, to being customer centric. Boom! If you want to make this transformation and reap all the financial benefits, you will have to compete for customers with a whole new set of players. You will no longer compete with the network focused guys, like the other telcos. Instead, you will be competing against the customer focused companies. These players don't have a network to fall back on like your old competitors, they know they have to make customers love them. Their customer loyalty is so off the charts, their customers are called fans. So if you want that big money, you will have to compete on their turf, and make the customers want to choose you. You need Apple level loyalty. That bar is uber high. We'll have to give up the security blanket of the network, and change. Instead of NPS at the thirties, it needs to be in the seventies. Instead of mobile app ratings in the threes, they need to get five stars. I'm betting big that Totogi will make that possible! I'm going to help you every step of the way, starting with my keynote next month at MWC. Join me, and I'll share the secrets to converting your super valuable network interactions to make your super app a massive success. We're going to have an amazing time, and I can't wait to see you there! >> Okay. We're back here in theCUBE here at Mobile World Congress in Cloud City. I'm John Furrier. Chloe Richardson's filling in for Dave Vellante who's out on assignment. He's out getting all the data out there and getting stories. Chloe, what a great keynote by Danielle Royston. We just heard her involving major action, major pump you up, punch in the face, "Wake the heck up cloud people, cloud is here!" She didn't pull any punches. >> No, I mean the thing is, John, there's trillions of dollars on the table, and everyone seems to be fighting for it. >> And you heard her up there, if you're not on the public cloud, you're not going to get access to that money. It's a free for all. And I think the cloud people are like, they might think they're going to walk right in, and the telco industry is going to just give it up. >> No, of course. >> And it's not going to be, it's going to be a fight! Who will win? >> Who will win, but also who will build the next big thing? (John laughing) >> Someone needs to die in the media conversations. It's always a fight. Something's dead. Something's dead but keeps the living. All that kidding aside, this is really about partnering. Think what's happened is Telco's already acknowledged that they need to change. And the 5G edge conversation, the chip acceleration. Look at Apple. They've got their own processors, Nvidia, Amazon makes their own chips, Intel's pumping stuff out, you've got Qualcomm. You've got all these new things. So, the chips are getting faster, and the software's more open source. And I'm telling you, the cloud is just going to drive that bus right down Cloud Street, and it's going to be in Cloud City everywhere. >> And it's going to be peepin' on the board as it drives down. (John laughing) John, I'm not a stalker, but I have read some of the things that you've written, and one of the things you mentioned that was really interesting was the difference between building and operating. Break it down for me, what does that mean? >> That means basically in mature markets, and growing markets, things behave differently, and certainly economics, and the people, and the makeup, and the mindset. So the telco has been kind of this mature market, it's been changing and growing, but not like radically. Cost optimization, make profit. You know, to install a lot of cable, you got to get the rents out of that infrastructure. And that's kind of gone on for too long. Cloud is a growth market. And it's about building, not just operating. And you've got operators, carriers are operating networks. So you're going to see the convergence of operators and builders coming together. Builders being software developers, new technology, and executives that think about building. And you want people on your team that are going to be, I won't say war time, you know, lieutenants or generals, but people who can handle the pace of change. Because the change and the nature is different. And some people want slow and steady, keep the boat from rocking. But in a growth market, it's turbulent, and the ride might not be quiet, first-class ticket to paradise. It's bumpy, but it's thrilling. >> No, of course. Is it similar to the old sales adage of hunter versus farmer? Are there parallels there? >> Yeah. I mean, there's a mindset. If you have a team of people that aren't knocking down new opportunities and building the next big thing, fixing your house, get your house in order, you know, refactor, reset, reboot, replatform with the cloud, and then refactor your business! If you don't have the people thinking like that, you're probably either going to be taken over, or go out of business. And that's what the telcos with all these assets, they're going to get bought, rolled into a SPAC, Special Purpose Acquisition Company, which is super hot in the United States. A lot of roll-ups going on with private equity. So a lot of these telcos, if they don't refactor, or replatform then refactor, they're going to be toast, and they're going to get rolled up, and eaten up by somebody else. >> Yeah, sure. It's interesting though, isn't it? Because when we think of telco in tech, we often think of, obviously we've got the triad, people, process, technology, and we think, process and technology really to the forefront here. But like you said there, people are also so important because if you don't have this right balance, you're not going to be able to drive that change. We had, obviously, Scott Brighton on the stage yesterday, and after his session, somebody came up to me and just said, "I'm interested to hear what that means for education." So how can we establish this new generation of tech and telco leaders from the grassroots with educational associations, establishments. How can we encourage that? I wonder, is this something that you talk about? >> Yeah. I mean, education's huge, and this highlights the change that telco's now part of. Telco used to be a boring industry that ran the networks, or moving packets around, and mobile was there. But once the iPhone came out in 2007, the life has changed, society has changed, education's changed, how people interact has changed. So, you start to see people now aware of the value. And if you look at during COVID, the internet didn't crash, the telcos actually saved our asses, and everyone survived because the network didn't break. Yeah, we had some bad Zoom meetings here and there, and some teleconferences that didn't go well, but for the most part we survived, and they really saved everybody. So, they should get kudos for that. But now they're dependent upon healthcare, education. People care about that stuff, so now you're going to start to see an elevated focus on what telecom is doing. That's why the edge has got trillions of dollars up for grabs. But education, there's negative unemployment in cybersecurity and in cloud. So for the people who say, "Oh, there's no jobs." Or, "I can't work." That's a bunch of BS, because you can just get online, get on YouTube, and just get a degree. You can get a degree. You can get an Amazon job. It pays a hundred thousand dollars a year! American. You can make a hundred thousand pounds, and be unemployed six months, and then be employed. So negative unemployment means, there's more jobs than people to fill them all, in fact. >> Yeah, it's interesting you mentioned that, because I was talking to a cyber security leader who was saying in something, I think there were now 3 million vacancies in cybersecurity. And there's such a skill shortage. There is nobody around to fill it! So it's an interesting problem to have, isn't it? Because it's reversed to what we've been used to for the last few decades! And obviously, telco is in the same space. But what can we do about it do you think, to actually -- >> I think it's going to take leadership, and I'm a big proponent of kids not going to university if they don't have to. Why spend the dough, money, if you don't have to? You can get online. I mean, the data's there. But to me, it's the relationships, the mentorship. You're starting to see a women in tech, and underrepresented minorities in the tech field, where mentorship is more important than curriculum. Community is more important than just going through a linear courseware. Nobody wants to sit online and go through linear courseware. Now, if they have to get a certificate, or degree, and accreditation, no problem. But the communities are out there, so that's a big change over, I'm a big fan of that. And I think people should, you know, get some specialized skills. You can get that online, so why even go to school? So, people are figuring that out. >> For sure. And also, even transferring. I mean, so many skills are transferable nowadays, aren't they, so we could easily be talking to people from other industries, and bringing them into telco, and saying, "Look, bring what you know from your retail background, or your healthcare background, and help us at telco to, again, drive forwards." Just like DR was saying, it's all about the next big thing. >> Well, Danielle is always also driving a lot of change. And if you think about the jobs, and the pedigree of going to a university, oh, Harvard, all the big Ivy Leagues, Oxford in your area. So it's like, if you go to the school like that, and you get a pedigree, you instantly get a job. Now the jobs that are available weren't around five years ago, so there's no like pedigree or track record. There's no like, everyone's equal. >> Yeah. >> So you could, the democratization of the internet now, from a job standpoint, is people are leveling up faster. So it's not about the Ivy League, or the big degree, or silver spoon in your mouth, you've got the entitlement. So you start to see people emerging and making things happen. Entrepreneurship in America, immigrant entrepreneurship. People are billionaires that have no high school diplomas! >> It's interesting you mention that, John, because we can't have more than five years experience in this space, we know that. But in telco, there is a problem. And maybe it's, again, it's a flipped problem where telco recruiters, or talent acquisition leaders, are now asking for kind of 10, 20 years experience when they're sending out job descriptions. So does that mean that we are at fault for not being able to fill all these vacancies? >> I think that's just, I mean I think there's a transition of the new skill set happening, one. But two, I think, you know, to be like a chip engineer, (laughs) you can't learn that online. But if you want to run a cloud infrastructure, you can. But I think embedded systems is an area that I was talking to an engineer, there's a huge shortage of engineers who code on the microprocessors, on the chips. So, embedded systems is a big career. So there's definitely paths you can specialize. Space is another area you've seen a lot of activity on. You see Jeff Bezos and Elon Musk is going to be here on a virtual keynote, trying to go to Mars. And you know, Danielle Royston always says, "What's going to happen first, Mars colony, or telco adopting public cloud?" And some people think Mars will happen first, but. >> What do you think, John? >> I think Telco's going to get cloud. I mean first of all, public cloud is now hybrid cloud, and the edge, this whole internet edge, 5G, is so symbolic and so important, because it's an architectural beachhead. And that's where the trillion dollar baby is. So, the inside baseball, and the inside money, and all the investors are focusing on the edge, because whoever can command the edge, wins all the dollars. So everyone kind of knows, it's a public secret, and it's fun to watch everyone jockey for the positions. >> Yeah no, it really is. But it's also quite funny, isn't it? Because the edge is almost where we were decades ago, but we're putting the control back in the hands of consumers. So, it's an interesting flip. And I wonder if, with the edge, we can really enhance this acceleration of product development, this efficiency, this frictionless system in which we live in. And also, I've heard you say hybrid a few times, John. >> John: Yeah. >> Is hybrid going to be the future of the world no matter what industry you're in? >> Hybrid is everything now. So, we're the hybrid CUBE, we've got hybrid cloud. >> Exactly. >> You got hybrid telco, because now you've got the confluence of online and offline coming together. That is critical dynamic! And you're seeing it. Like virtual reality, for instance, now you're seeing things, I know you guys are doing some great work at your company around creating experiences that are virtual. You got, companies like Roblox went public recently. Metaverse. It's a good time to be in that business, because experiential human relations are coming. So, I think that's going to be powered by 5G. You know, gamers. So, all good stuff. Chloe, great to be with you here on theCUBE, and we're looking forward to seeing your main stage. >> Great. >> And then we're going to send it back to the studio, Adam, and the team. We're waiting for DR to arrive here in Cloud City. And this is theCUBE, from Cloud City, back to you, Adam, and the studio.

(upbeat music) >> Okay, thanks Adam in the studio. We're here on the floor in Cloud City, right in the middle of all the action. The keynotes are going on in the background, it's a packed house. I'm John Furrier. Dave Vellante is on assignment, digging in, getting those stories. He'll have the analysis, he'll be back on theCUBE but I want to welcome Chloe Richardson, who has been holding down the main stage here in Cloud City, with amazing content that she's been hosting. Chloe, great to see you. Thanks for coming on theCUBE and kicking it up day two with me. >> No, not at all. Thank you for having me. It's very exciting. I love what you guys have got over here, very fun. >> We're inside theCUBE. This is where all the action is. And also the Cloud City is really changing the game. If you look at what's going on here in Cloud City, it's pretty spectacular. >> Know, I mean the atmosphere is absolutely palpable, isn't it? You can just feel as people walk in and see what the future looks like to the Telecoms industry, it's very exciting. >> And you've been doing a great job on the main stage. We've been really loving your content. Let's get into some of the content here. Actually the keynote is going on, we're going to have DR, maybe fly by the set later, we're going to check that up. But let's check out this videotape of, this is TelcoDR. You got to check out this reel and we'll be right back, we'll talk about it. (upbeat music) >> TelcoDR burst onto the global telecom scene this year, making headlines for taking over the huge Erickson's space at MWC21. And for building Cloud City in just a hundred days. But why did the company go to such trouble? And what is the unique offering to the telecoms industry? And what drives their dynamic CEO, Danielle Royston or DR as everyone calls her? Cloud City Live caught up with DR, away from the hustle and bustle of the city to find out. (upbeat music) >> Hi, I'm Danielle Royston, coming to you from beautiful Barcelona. I'm here for MWC21. About a hundred days ago, I decided to take over the iconic Erickson booth to turn it into Cloud City. Cloud City has over 30 vendors and 70 demos to introduce telco to what I think is the future for our industry. We're going to have three awesome experiences. We're going to talk about the new subscriber experience, we're going to talk about what's in store for the new network and the future of work. I'm really excited to create a community and invite awesome telco executives to see this new future. It's been a really tough 18 months, and we didn't know what MWC21 was going to be like in terms of attendance. And so from the get go we plan this amazing experience that we call, Cloud City Live. At Cloud City Live, we have two main components. We have the speaker series where we have over 50 speakers from Amazon, Google, Microsoft, as well as CSPs and awesome vendors talking about the public cloud in telco. The second part of Cloud City Live, is theCUBE. Think of this as like an ESPN desk of awesome tech interviews focused on telco and the public cloud hosted by John Furrier and Dave Vellante. Dave and John are going to talk to a variety of guests, focused on telco and the public cloud. It's a great way for our virtual participants to feel like they're at the show, experiencing what's going on here. So excited to have them as part of the Cloud City booth. There's a ton of innovation going on in telco. And 20 years ago, Elon Musk set on his mission to Mars. I, like Elon Musk, I'm on a quest to take telco to the public cloud. Every year at MWC, there's always a flurry of announcements and this year is no different. At this year's MWC, Totogi, a startup that I invested a hundred million dollars in, will be launching. Totogi is introducing two products to the market, this week at MWC. The first is a planetary scale charger. More than a charger, it's an engagement coupling dual network data with charging information to drive subscriber engagement and doubling your ARPU. The second product that Totogi is introducing, is a planetary scale BSS system built on top of the TM forum, open APIs. Both of these products will be available for viewing in the virtual booth, as well as on the show for. The public cloud is an unstoppable mega trend that's coming to telco. I'm super excited to bring to you, the vendors, the products, the demonstrations, and the speakers, both to people here in Barcelona and virtually around the world. (upbeat music) >> Well, that was a fascinating insight into the origins of TelcoDR, why public cloud is going to truly disrupt the telecoms industry and why DR herself is so passionate about it. If you'd like to find out more, come and see us at Cloud City. (upbeat music) >> Okay, thanks. Just roll on that reel. Chloe, I mean, look at that reel. I mean, DR, Danielle Royston, she's a star and I've seen a lot of power players in the industry. She's got guts and determination, and she's got a vision and she's not just, you know, making noise about telco and cloud, there's actually a lot of real good vision there. I mean, it's just so impressive. >> No, really isn't. And for me, it's almost like the next moonshot. It's the moonshot of the telco world. She's innovative, she's exciting and if we've learned anything over the last 18 months is that we need to in this industry to grow and for the future of the industry. So, it's so exciting. I think she's a real inspiration. >> And I love the fact that she's so, takes a tiger by the tail, because the telco industry is being disrupted. She's just driving the bus here and I remember I did a story on Teresa Carlson, who was with Amazon web services, she was running the public sector and she was doing the same exact thing in that public sector world in DC and around the world. She opened up regions in Bahrain, which as a woman, that was an amazing accomplishment. And she wasn't just a woman, she was just a power player. And she was exceptional leader. I see DR doing the same thing and people aren't going to like that, I'll tell you right now. People are going to be like, whoa, what's going on here? >> And of course, it's always the way we pioneers though, isn't it? At the time people thinking what's going, we don't like change, why are we being shaken up. But actually afterwards, in retrospect, they think, oh, okay, I see why that happened and we needed it. So really exciting stuff. >> Making things happen, that's what we're doing here in theCUBE. Obviously the main stage's doing a great job. Let's go check out this highlight reel. If you're watching and you miss some of the action, this is, I'll see the physical event back since 2019 in February, but there's also a Hybrid event. A lot of virtual action going on. So you got theCUBE virtual, you got a lot of content on virtual sites, but in person here, we're going to go show you a highlight reel from what we did yesterday, what was happening around the show? Enjoy this quick highlight reel from yesterday. (upbeat music) (upbeat music) (upbeat music) Okay. We're back here in theCUBE. We're the main floor out here with Chloe Richardson, who is emceeing, hosting and driving the content on the Cloud City main stage. Chloe, it's been great here. I mean, so far day one, I was watching your presentations and inspire site chats you've been hosting. Awesome content. I mean, people are like jazzed up. >> Yeah, I know for sure. We had Scott Brighton on yesterday, who was our opening keynote on the live stage. And his session was all about the future of work, which is so relevant and so pertinent to now. And he talked about the way it's changing and in 10 years it's going to be a trillion dollar industry to be in the cloud at work. So really interesting. I mean, yeah, the atmosphere here is great, everyone's excited, there's new content everyday. And that's the thing, it's not stale content. It's stuff that people want to hear. People are here for the new hot trends, the new hot topics. Really exciting. >> Yeah, the next big thing. And also it's a fiscal event. So since 2019, this Mobile World Congress has been a massive event and hasn't happened since February, 2019. That's a lot of time that's elapsed in the industry cause of COVID and people are glad to be here, but a lot of stuff's changed. >> Yeah, it's a different world, right? I mean, two years in the telco industry is like a hundred years elsewhere. Everything has changed, digital transformation migration, obviously cloud, which is what we're talking about over here at Cloud City Live. I'm wondering though John, I'd like to pick your brains on something. >> Sure. >> It has changed in the last two years, we know that, but what about the future of Mobile World Congress? How do you see it changing in the next few years? >> Oh man, that's a great question. I mean, my observation, I've been coming to the show for a very long time, over a decade and a half, and it's been a nerdy show about networks and telecom, which is basically radios and wireless and then mobile. It's very global, a lot of networks, but now it's evolving and many people are saying, and we were talking on theCUBE yesterday, Dave Vellante was commenting that this show is turning into a consumer like show. So CES is the big consumer electronics show in the US, in Las Vegas every year. This show has got a vibe because what's all the technology from the cloud players and from the chips, are getting smaller, faster, cheaper, more capability, lower power. So if you look at the chips, the hardware, it's less about the speeds and feeds. It's more about the consumer experience. You got cars. I was talking to a guy yesterday, he said, "Vehicle e-commerce is coming." I'm like, "What the hell his vehicle e-commerce?" And you could be on your app, driving down the freeway and go, "Hey, I want some food." Instead of having it delivered to you, if you order it you pick it up. So that's kind of can be happening now in real time, you can do all kinds of other things. so a lot of new things are happening. >> Yeah, I think so. Do you see that as another disruption for the industry that is the fact that it's moving to be more consumer focused? Is that anything we should be worried about in that space? >> Well I think the incumbents are going to lose their position. So I think in any new shift, new brands come in out of nowhere. >> For sure. >> And it's the people that you don't think about. It's the company that's not, that you don't see. And we got DR on the main stage right here, look at this. You saw her walk out with the confidence of a pro. She just walked out there and she's not afraid. >> No. Well, as she said in her video, she is ready to wake them up and you can see as soon as she worked out. That is what she intends to do. >> I love her mojo, she's got a lot of energy. And back to the show, I mean, she's just an example of what I was saying. Like in every market shift, a new brand emerges. >> Yep. >> I mean, even when apple was tainted, they were about to shut down, they were going to run out of cash. When Steve Jobs brought back apple, he consolidated and rebooted the company. The iPad was a similar moment, then the iPhone and just the rest is history. That kind of disruption's coming. You're going to see that here. >> Yeah. Oh, it's exciting though isn't it? To be future ready rather than future proof but actually I wanted to ask you something as well, because we are seeing all these cloud players getting hot under the collar about telco. Why are they so excited? What's the buzz about why, as you're in MWS and Google Cloud? Why do they want to have a slice of the pie? >> Well, I think they're hot, hot and heavy on the fact that telco is a ripe opportunity and it used to be this boring, slow moving glacier. >> Okay. >> It's almost like global warming now. The icebergs are melting and it's going to just change and because of the edge, 5G is not a consumer wireless thing. It's not like a better phone, it's a commercial app opportunity cause it's high bandwidth. We've all been to concerts or football games or sporting events where a stadium is packed. Everyone gets bars on their wifi, but can't get out, can't upload their pictures on Instagram. Why? Because it's choking them in the network. That's where 5G solves the problem. It brings a lot of bandwidth and that's going to bring the edge to life and that's money. So when you got money and greed and power changing hands, it's every, it's on the table and the wheel's spinning, and it could be double zero, or it could be lucky seven. You don't know. >> Yeah, for sure. And that's certainly enough to get all the big players hot and bothered about getting involved. And I suppose it circles back to the fact that, DR is really leading the charge and they're probably thinking, okay, what's going on here? This is different, we want something new. You didn't know it's an open run or something that we've been talking about over the last day or so. We've had quite a few of us speakers over here constantly. I've mentioned open run. What is it all about John? Because why all the bars, if 5G is such a hot topic? Why are we getting excited about it? >> That's a great thing. 5G certainly is Google Drive the main trend for sure. OpenRent is essentially an answer to the fact that 5G is popular and they need more infrastructure. So open source, the Linux Foundation has been the driver for most of the open source software. So they're trying to bring software and open architectures to create more entrepreneurial activity around hardware and around infrastructure because we need more infrastructure. We need more antennas, we need more transceivers, we need more devices that could be open. So in order to do that, you got to open up the technology and you want to minimize the licensing and minimize a lot of these, you know, proprietary aspects. >> What if we look at, so on Wednesday, we've got a great keynote from Philippe Langlois, who is CEO and founder of P1 Security. And he's coming to talk to us about cybersecurity within the cloud and within telco. So you just mentioned that. Open mind, it's all about having open source, about having that space where we can share more efficiently and easy, more easily. What does that mean for security though? Is it a risk? >> I think that's going to increase the value of security and minimize the threats. Because open source, even though it's open, the more people that are working on it, the more secure it could be. So yes, it could be more open in sense that could be explored by hackers, but it can be open to also protect. And I think we've seen open source and cloud in particular be more secure because everyone said, "Cloud is not secure, open source is not secure." And as it turns out when the collective hive minds of developers work on things, it gets secure. >> And it is interesting, isn't it? Because we have seen that there has been an uptick in cyber security and threats. But actually I was speaking to some leaders in across various industries and particularly in tech. And they were saying, "Actually there's not been an uptick in attempted threats, there's been an uptick because with this open source environment. We are able to track them and measure them and defend more efficiently. So actually they're being battered away, but the number is probably the same as it always was. We just didn't know about them before we had this open source environment. >> There's more money in threats and there's more surface area. So as the tide rises, so do the threats. So on a net basis it's more because there's more volume, but it's pretty much the same. And look at it, there's money involved, they're organized, there's a business model on attacking and getting the cash out of your bank or ransomwares at an all time high. So this is like a big problem and it's beyond the government, it's our individual freedom. So security its huge and I think open source and cloud are going to be, I think the answer to that. >> Yeah, for sure. And it's again about collaboration, isn't it? Which we talk about all the time but without collaboration that the industries aren't going to have to work together to promote this environment. So yeah, it should be good to talk with Phillip on Wednesday. >> I just say in security, don't download that PDF if you don't know who came from. The fishing is always good. Well, we got some great stuff coming up. We're going to have a great day. We got a video here on Mobile World Live, we're going to show this next segment and we're going to toss it to a video. And this is really about to give the experience Chloe, for people who aren't here, right? >> Yeah. >> To get a feel for what's going on in Barcelona and all the actions. And if you look at the video, enjoy it. >> Hi, I'm Danielle Royston, CEO and founder of TelcoDr, but you can call me DR. Ready for some more straight talk about telco? It's go time, let's do it. Holy shit. It sure is a great time to be a tech company. I mean, if you're Amazon, Microsoft, Google, Grab, Twilio, DoorDash or Uber, life's pretty great. Just look at these stock prices over the past five years with their shareholder value going up into the right. Totally amazing. But where's telco? There I add our stocks to this awesome chart. Let's compare these fabulous tech stocks to AT&T, Vodafone, Telefonica, Tim, America Movil and Zain group. Huh, not so great, right? Yep. I'm talking directly to you senior telco execs. I'm here to wake you up. Why is it that Wall Street doesn't see you as tech? Why aren't CSPs seen as driving all the tech change? Why is it always Apple, Amazon and Google who get the big buzz? But more importantly, why isn't it you? Before I came to this industry, I always thought of carriers as tech companies. I gave more of my money to AT&T and to Apple because I really cared about the quality of the network. But I also wondered why on earth, the carriers allowed all the other tech companies to take center stage. After spending the last few years in telco, I now understand why. It's because you are network people, you are not customer people. I get it, you have the security blanket, you're a network oligopoly. It's crazy expensive to build a network and it's expensive to buy spectrum. It takes operational chops to run a killer network and it takes great skill to convince Wall Street, to finance all of it. You telco execs are amazing at all those things, but because you focus on the network, it means you don't focus on the customer. And so far you haven't had to. Every telco's KPI is to be less shitty than their next competitor. You don't have to be the best, just don't be last. Everyone else's NPS, is in the thirties too. Their mobile app ratings are just as terrible as yours. Everyone's sucks at customer sat and it's widely acknowledged and accepted. Let's talk about the cost of that. The cost is not measured on market share against other MNOs. The cost is measured in lost ARPU that the tech guys are getting. Everyone knows about the loss of texting, to WeChat, WhatsApp and the other OTT apps, but it is not just texting. The total adjustable market or term of the mobile app disruptors is huge. Instead of remaining network focused, you should be leveraging your network into a premier position. And because you're a network people, I bet you think I'm talking about coercive network leverage. That is not what I'm talking about. I'm talking about love, customer love. There is one thing the highly valued tech companies all have in common. They all crush it on customer love. They look at every interaction with the customer and say, "How do we make the customer love this?" Like Netflix has easy monthly cancellation, Amazon does no questions asked returns, Uber gives users a real time view into driver rating and availability. Compare those ideas to the standard telco customer interaction. The highly valued tech companies, don't have the network oligopoly to fall back on like you do. To survive they must make customers love them. So they focus on it in a big way and it pays off. Their NPS is close to 70 and they have app ratings of 4.5 or higher. A far cry from your thirties NPS and app ratings of 3.5. If you want to have those huge tech multiples for yourself, you have to start thinking about these guys as your new competition, not the other telcos in your market. The crazy thing is, if you give up using your network as a crutch and put all of your focus on the customer, the network becomes an asset worth more than all the super apps. Let's step back and talk about the value of super apps and becoming customer centric. Retooling around the customer is a huge change. So let's make sure it's worth it. We aren't talking about 25% improvement. I'm going to show you that if you become customer centric, you can double your ARPU, double your valuation multiples and drive big shareholder value just like the tech companies on that chart. Now let's talk about the customer focused super apps. There are hundreds of companies and a variety of categories vying for your subscriber's disposable income. Movies, food delivery, financial services, who are they? And why does Wall Street give them such high evaluations and like them so much? Well first, look at what they are telling Wall Street about their TAM. They broadcast ridiculously huge TAMs that are greater than the telco TAMs. You know, who should have a ridiculously huge TAM? You. Hello. What I'm saying is that if you got what's yours, you double in size. And if you take the TAAMs they throw around, you'll be five times as big. When I think about the opportunity to double ARPU, without having to double the CapEx, to build out the network, I say to myself, "Hell yeah, we should totally go do it and do whatever it takes to go get." For example, let's talk about Grab. Grab is a southeast Asian super app company with an expected $40 billion valuation. Grab's customer focused started in rideshare, but then leverage its customer love into wallet deliveries, hospitality, and investing. Their ARPU is now larger than a telco's ARPU in countries where they compete, and they have a higher valuation than those telcos too. Imagine if you could combine a great user experience with a valuable services that helped grow your ARPU, that would be huge. So how do you build a super app? I bet right about now, you're wishing you had a super app. Everyone wants a super app. A lot of money has been unsuccessfully spent by telcos trying to build their own. I bet you're saying to yourself, "DR, your pie in the sky sounds great but it has no chance of success." Well, I'm betting things are about to change. There is a public cloud startup called Totogi that is going to help carriers build world class super apps. To have a successful super app, there is one key metric you need to know. It is the KPI that determines if your super app will be a success or a flop. It's not about the daily active users, it's not the average order value, it's not even gross merchandise value. It's all about the frequency of use per day by the user, that's the metric that matters. How many of you use that metric in your telco apps? Do you have a team driving up user app interactions every day? Most telco apps are used for top up or to check a bill. This is a huge missed opportunity. Super app companies excel at building great experiences and driving a huge amount of interactions. They have to, their business depends on it. They have to be customer focused. They have to keep bringing the user back to the app, every day, multiple times a day. And you know what? They do a great job. Customers love their super apps. They have great user experiences like Apple credit cards, no information required, application process. They have high net promoter scores because of customer friendly policies, like how DoorDash retroactively credits fees when you move to a better plan. And they have great app store ratings because they do simple things like remember your last order, or allow you to use the app rather than force you to call customer service. Customers of successful super apps love it when new services are added. And because of the customer love, every time something is added to the app, customers adopt it immediately. New services drive frequent daily user interactions. So our problem in telco is we have an app that is only open once per month, not multiple times per day. And without frequent opens, there is no super app. What do we do we have in telco that we could use to help with this problem? I wonder, why you don't currently have a mobile app that subscribers use multiple times a day. You have something that's 10 times better. You have a network. Subscribers already interact with your network 10 times more frequently than any user with any of the super apps. But telcos don't leverage those interactions into the insanely valuable engagements they could be. Worse, even if you wanted to your crappy over customized on premise solutions, make it impossible. Thankfully, there's this new tech that's come around, you may have heard of it. The public cloud. When you bring the enabling technology of the public cloud, you can turn your network interactions into valuable super app interactions. And there's a special new startup that's going to help you do it, Totogi. Totogi will leverage all those network interactions and turn them into valuable customer interactions. Let me repeat that. Totogi will leverage all those network interactions and turn them into valuable customer interactions. Totogi allows the carrier to leverage its network and all the network interactions into customer engagement. This is something the super apps don't have but will wish they did. But this magic technology is not enough. Telcos also need to move from being network focus to being customer focused. Totogi enables telcos to chase exciting revenue growth without that annoying massive CapEx investment. Totogi is going to help you transform your sucky mobile apps with the crappy customer ratings, into something your subscribers want to open multiple times a day and become a platform for growth. I'm so excited about Totogi, I'm investing $100 million into it. You heard me right, $100 million. Is this what it feels like to be soft bank? I'm investing in Totogi because it's going to enable telcos to leverage the network interactions into super app usage. Which will lead to an improved subscriber experience and will give you a massive jump in your ARPU. And once you do that, all those Telco valuations will go from down here to up here. And so I've been talking to some folks, you know, checking in, feeling them out, getting their thoughts, and I've been asking them, what do you think about telcos building super apps? And the response has been, click, everyone says, "No way, telcos can't do it." Zero chance, total goose egg. One suggested I build a bonfire with 100 million dollars, because then at least I wouldn't waste years of my life. Well I think those people are dead wrong. I do believe that telcos can build super apps and make them super successful. The public cloud is changing all parts of telco and Totogi and super apps are fundamentally changing, the customer relationships. In one month at MWC, people will see what Totogi has to offer, and they will understand why I'm making this bold call. Because the Totogi takes the value of the network and the power of the public cloud to help telcos move from being network centric, to being customer centric. Boom! If you want to make this transformation and reap all the financial benefits, you will have to compete for customers with a whole new set of players. You will no longer compete with the network focus guys like the other telcos, instead you will be competing against the customer focused companies. These players don't have a network to fall back on like your old competitors. They know they have to make customers love them. Their customer loyalty is so off the charts, their customers are called fans. So if you want that big money, you will have to compete on their turf and make the customers want to choose you, you need Apple level loyalty. That bar is uber high. We will have to give up the security blanket of the network and change. Instead of NPS of the thirties, it needs to be in the 70s. Instead of mobile app ratings in the threes, they need to get five stars. I'm betting big that Totogi will make that possible. I'm going to help you every step of the way, starting with my keynote next month at MWC. Join me and I'll share the secrets to converting your super valuable network interactions to make your super app a massive success. We're going to have an amazing time and I can't wait to see you there. >> Okay. We're back here in theCUBE here at Mobile World Congress in Cloud City. I'm John Furrier, Chloe Richardson filling it for Dave Vellante who's out on assignment. He's out getting all the data out there and getting stories. Chloe, what a great keynote by Danielle Royston. We just heard her and while with major action, major pump me up, punch in the face, wake the heck up cloud people, cloud is here. She didn't pull any punches. >> No, I mean the thing is John, there's trillions of dollars on the table and everyone seems to be fighting for it. >> And you heard her up there, if you're not on the public cloud, you're not going to get access to that money. It's a free for all. And I think the cloud people are like, they might think they're going to walk right in and the telco industry is going to just give it up. >> No, of course. >> There's not going to be, it's going to be a fight, who will win. >> Who will win but also who will build the next big thing? >> Someone needs to die in the media conversation, it's always a fight, something's dead, something's dead but keeps the living. All that kidding aside, this is really about partnering. I think what's happened is, telco's already acknowledged that they need to change in the 5G edge conversation, the chip acceleration. Look at Apple, they've got their own processors, Nvidia, Amazon makes their own chips, Intel's pumping stuff out, you've got Qualcomm, you've got all these new things. So the chips are getting faster and the software's more open source and I'm telling you, cloud is just going to drive that bus right down clouds street and it's going to be in Cloud City everywhere. >> And it's going to be peeping on the board as it drives down. John, I'm not a stalker, but I have read some of the things that you've written. And one of the things you mentioned that was really interesting was the difference between building and operating. Break it down for me. What does that mean? >> That means basically in mature markets and growing markets things behave differently and certainly economics and the people and the makeup and the mindset. >> Okay. >> So the telco has been kind of this mature market. It's been changing and growing but not like radically. Cost optimization, make profit, you know, install a lot of cable. You got to get the rents out of that infrastructure and that's kind of gone on for too long. Cloud is a growth market, and it's about building, not just operating and you've got operators, carriers are operating networks. So you're going to see the convergence of operators and builders coming together, builders being software developers, new technology and executives that think about building. And you want people on your team that are going to be, I won't say war time, you know, lieutenants or generals, but people who can handle the pace of change. >> Okay. >> Because the change and the nature is different. And some people want slow and steady, keep the boat from rocking, but in a growth market, it's turbulent and ride might not be quiet, first class ticket to paradise, but it's bumpy, but it's thrilling. >> No, of course. Is it similar to the old sales adage of hunter versus farmer and the parallels? >> Yeah. I mean, the mindset. If you have a team of people that aren't knocking down new opportunities and building the next big thing, fixing your house, get your house in order, you know, refactor, reset, reboot, re platform with the cloud and then refactor your business. If you don't have the people thinking like that, you're probably either going to be taken over or go out of business. And that's what the telco with all these assets, they're going to get bought roll into a SPAC, special purpose acquisition company was a super hot in the United States. A lot of roll ups going on with Private equity. So a lot of these telcos, if they don't refactor or re platform, then refactor, they're going to be toast and they're going to get rolled up and eaten up by somebody else. >> Yeah, sure. It's interesting though, isn't it? Because when we think of telco in tech, we often think of, obviously we've got the triad. People process technology, and we think process and technology really take the forefront here but like you said there, people are also so important because if you don't have this right balance, you're not going to be able to drive that change. We had, obviously Scott Brighton on the stage yesterday and after his session, somebody came up to me and just said, "I'm interested to hear what that means for education." So how can we establish this new generation of tech and telco leaders from the grassroots with educational associations establishments? How can we encourage that? I wonder, is this something that you talk about often? >> Yeah. I mean, education is huge and this highlights the change that telcos now part of. Telco used to be a boring industry that ran the networks, or moving packets around and mobile was there, but once the iPhone came out in 2007, the life has changed, society has changed, education's changed, how people interact has changed. So you start to see people now aware of the value and if you look at the, during the COVID, the internet didn't crash, the telcos actually saved our asses and everyone was, survive because the network didn't break. Yeah, we had some bad zoom meetings here and there and some teleconferences that didn't go well but for the most part we survived and they really saved everybody, my goodness. So they should get kudos for that. But now they're dependent upon healthcare, education, people care about that stuff. So now you're going to start to see an elevated focus on what telecom is doing. That's why The Edge has checked trillions of dollars up for grabs. But education, there's negative unemployment in cybersecurity and in cloud. So for the people who say, oh, there's no jobs or I can't work, that's a bunch of BS because you can just get online, get on YouTube and just get a degree. You can get a degree, you can get an Amazon job, it pays a hundred thousand dollars a year, American. You can make a hundred thousand pounds and be unemployed six months and then be employed. So negative unemployment means there's more jobs than people to fill them qualify. >> Yeah, it's interesting you mentioned that because I was talking to a cyber security leader who was saying in some of the things there were now 3 million vacancies in cybersecurity and there's such a skill shortage, there is nobody around to fill it. So it's an interesting problem to have isn't it? Cause it's reversed to what we've been used to for the last few decades and obviously telco is in the same space. What can we do about it? Do you think it will actually bring people in? >> I think it's going to take leadership and I'm a big proponent of kids not going to university, they don't have to. Why spend the dough, money if you don't have to? You can get online. I mean, the data's there, but to me it's the relationships, the mentorship. You starting to see women in tech and underrepresented minorities in the tech field, where mentorship is more important than curriculum. Community is more important than just going through a linear course where nobody wants to sit online and go through linear courseware. Now, if they have to get a certificate or degree and accreditation no problem, but communities are out there. So that's a big change over, I'm a big fan of that and I think people should, you know, get some specialized skills, you can get that online. So why even go to school? So people are figuring that out. >> For sure. And also even transferring, I mean, so many skills are transferable nowadays, aren't there? So we could easily be talking to people from other industries and bringing them into telco and saying, look, bring what you know from your retail background or your healthcare background and help us at telco to again, drive forward, just like DR is saying it's all about the next big thing. >> Danielle, I was also driving a lot of change and if you think about the jobs and a pedigree of going to a university, oh, Harvard, all the big Ivy leagues, Oxford in your area. So it's like, if you go to a school like that and you get a pedigree, you instantly get a job. Now, the jobs that are available, weren't around five years ago. So there's no like pedigree or track record, there's no like, everyone's equal. >> Yeah. >> So you could, the democratization of the internet now is, from a job standpoint is, people are leveling up faster. So it's not about the Ivy league or the big degree or silver spoon in your mouth, you've got the entitlement. So you start to see people emergent and make things happen, entrepreneurship in America, immigrant entrepreneurship. People are billionaires that have no high school diplomas. >> It's interesting you mentioned that John, because we can have more than five years experience in this space, we know that but in telco there is a problem and maybe it's, again it's a flipped problem where, telco recruiters or talent acquisition leaders, are now asking for kind of 10, 20 years experience when they're sending out job descriptions. So does that mean that we are at fault for not being able to fill all these vacancies? >> Well, I mean, I think that's just, I mean, I think there's a transition of the new skill set happening one, but two, I think, you know, you've got to be like a chip engineer, you can't learn that online, but if you want to run a cloud infrastructure, you can. But I think embedded systems is an area that I was talking to an engineer, there's a huge shortage of engineers who code on the microprocessors, on the chips. So embedded systems is a big career. So there's definitely parts, you can specialize, space is another area you've seen a lot of activity on, obviously Jeff Bezos and Elon Musk is going to be here on virtual keynote, trying to go to Mars. And, you know, Danielle Royston always says, who's going to happen first, Mars, colony, or telco adopting public cloud? Some people think Mars will happen first but. >> What do you think John? >> I think telco's going to get cloud. I mean, first of all, public cloud is now hybrid cloud and the edge, this whole internet edge, 5G, is so symbolic and so important because it's an architectural beachhead. >> Yeah. >> And that's where the trillion dollar baby is. >> Of course. >> So the inside baseball and the inside money and all the investors are focusing on the edge because whoever can command the edge, wins all the dollars. So everyone kind of knows it's a public secret and it's fun to watch, everyone jockey for the positions. >> Yeah, know, it really is. But it's also quite funny, isn't it? Because the edge is almost where we were decades ago, but we're putting the control back in the hands of consumers. So it's an interesting flip and I wonder if with the edge, we can really enhance this acceleration of product development its efficiency, this frictionless system in which we live in. And also, I've heard you say hybrid a few times John. >> Yeah. >> Is hybrid going to be the future of the world no matter what industry you're in? >> Hybrid is everything now. So it's, we're the hybrid cube, we've got hybrid cloud. >> Exactly. >> You got hybrid telco, because now you've got the confluence of online and offline coming together. >> Yeah. >> That is critical dynamic, and you seeing it. Like virtual reality for instance, now you seeing things, I know you guys are doing some great work at your company around creating experiences that are virtual. >> Exactly. >> You got, like Roblox went public recently. >> Yeah. >> Metaverse is a good time to be in that business because experiential human relations are coming. So I think that's going to be powered by 5G, you know, gamers. So all good stuff, Chloe, great to be with you here in theCUBE. >> Thank you. >> And we're looking forward to seeing your main stage. >> Great. >> And then we're going to send it back to the studio, Adam and the team, we're waiting for DR to arrive here in Cloud City and this is theCUBE, from Cloud City back to you, Adam in the studio.

(upbeat music) >> Okay, thanks to the studio there for the handoff. Appreciate it, we're here for breaking news and it's exciting that we have Amol Phadke who's the Managing Director, Google is breaking some hard news here, Dave, so we want to bring him in and get commentary while we end out day two. Obviously, the story here is CLOUD CITY. We are in the CLOUD CITY. Amol, thanks for coming on remotely into our physical hybrid set here. Thanks for coming on. >> Thank you, John. I'm very excited to be here, virtually at MWC 21. >> Oh we got Bon Jovi ready to play. Everyone's waiting for that concert and you're the only thing standing between Bon Jovi and all the great stuff so. >> A lot of people watching. >> Thanks for coming on. Seriously you guys got some big news first Ericsson partners with you guys on 5G, platform deal with anthesis as well as open O-ran Alliance. You guys are joining huge testament to the industry. Obviously Google with all your innovation you guys have in the big three cloud hyperscalers. Obviously you guys invented SRE, so you know, you're no stranger to large scale. What's the news? Tell us why this Ericsson news is so important. Let's start with the Ericsson announcement. >> Sure, so, John, I mean, we are very excited today to finally bring to the market, the strategic partnership that we've been building with Ericsson for the last few months, the partnership, the reason we feel this is very important to the industry is we are actually doing this in conjunction with very large CSPs. So it's not done in isolation. You in fact saw in the press release that we have already launched something together with Telecom Italia in Italy. Because you will see that also in the press. And really the partnership is on three pillars. Number one, how can CSPs monetize 5G and Edge, which is a real team at the moment using Google Clouds solutions like the Edge computing platform and Anthos and Ericsson's cutting Edge 5G components, 5G solutions. And if we can onboard this together at the CSPs, such as Telecom Italia, that creates massive time to market efficiency. So that's point 1. Speed and agility is key John. But then point 2, it also unlocks a lot of Edge use cases for a bunch of verticals, retail, manufacturing, healthcare and so on. Which we are already starting to launch together with Ericsson. And so that's the second pillar. And then the final pillar of course, is this continuous wave of Cloud Native innovation that you just highlighted, John. We are going to try and double down on it between ourselves and Ericsson to really try and create this Cloud Native Application Suite for 5G over time. >> Talk about the innovations around Cloud, because the message we're hearing this year at Mobile World Congress is that the public cloud is driving the innovation and you know, I can be a little bit over the top and say, so the Telcos are slow, they're like glaciers, they move slow, but they're just moving packets. They are there, they're moving the network around. The innovation is happening on top. So there's some hardened operations operating the networks. Now you have a build concept, Cloud Native enables that. So you've got containers. You can put that, encapsulate that older technology and integrate it in. So this is not a rip and replace, someone has to die to win. This is a partnership with the Telco's. Can you share your thoughts on that piece? >> Spot on, John, spot on. We, we believe that it's a massive partnership opportunity. There's zero conflict or tensions in this sort of ecosystem. And the reason for that is, when you talk about that containerization and write once and deploy everywhere type architecture, that we are trying to do, that's where the Cloud Native be really helps. Like when you create Ericsson 5G solutions with the operators at Telecom Italia, once you build a solution, you don't have to worry about, do I need to go create that again and again for every deployment. As long as you have Anthos and Ericsson working, you should be able to have the same experience everywhere. >> Yeah, John and I talk all the time in theCUBE about how developers are really going to drive the Edge. You're clearly doing that with your Distributor Cloud, building out a Telco Cloud. I wonder if you could talk a little bit more about how you see that evolving and a lot of the AI that's done today is done in the cloud. A lot of modeling being done. When you think about Edge, you think about AI inferencing, you think about all these monetization opportunities. How are you thinking about that? >> Sure, so I think David first of all, it's a fantastic segue into how we are looking at analytics at the Edge, right? So we, we have realized that (connection disruption) is a very, very data computing, heavy operation. So certainly the training of the models is still going to stay in cloud for the foreseeable future. But the influencing part that you mentioned, is definitely something that we can offload to the Edge? Why is that so important? In the pandemic era think of running a shop or a factory floor, completely autonomously, needing zero minimal human intervention. And if you want to look at an assembly line and look at AI influencing as a way to find out assembly line defects on products and manufacturing. That's a very difficult problem to solve unless you actually create those influencing models at the Edge. So creating that ecosystem of an Ericsson and a Google Cloud and Telecom Italia type of carrier, gives you that Edge placement of the workloads that would fit right next to a factory floor in our manufacturing example. And then on top of that, you could run the AI influencing to really put in the hands of the manufacturer, a visual inspection capability to just bring this to life. >> Great, thank you for that and now the other piece of the announcement of course is the open, Open RAN. We've been talking about that all week. And you know, you well remember when Cloud first came out, people were concerned about security. And of course, now everybody's asking the question, can we still get the reliability and the security that we're used to with the Telcos? And of course over time we learned that you guys actually are pretty good at security. So how do you see the security component? Maybe first talk about the Open RAN piece, why that's important and how security fits? >> Sure, so first of all, Open RAN is something that we have taken great interest in the last year or so as it started evolving. And the reason for that is fairly simple Dave, this aggregation of networks has been happening for some time. In the radio layer, we believe that's the final frontier of sort of unlocking and desegregating that radio layer. And why is that so important? 80% of the operators spent globally is on radio across the entire infrastructure, 80% is on radio. If you disaggregate that and if you created synergies for your CSP partners and clients, that meant you have standard purpose hardware, standard purpose software with open interfaces, number one, massive difference in PCO. Number two, the supply chain gets streamlined and becomes a really, really simple way to manage a fairly large distribution, that's about to get larger with 5G and the capillarity that 5G needs. You're thinking of tens of thousands of micro cells and radio cells going everywhere. And having that kind of standardized hardware, software with open interfaces, is an extremely important cost dimension too. And on the revenue side, the things is that, the reason we got so excited with Open RAN was, you can now run a lot of API's on the radio net itself. That then suddenly brings a whole developer community on the radio layer. That then helps you do a bunch of things like closed loop automation for network optimization, as well as potentially looking at monetization opportunities by hyper personalizing yours and mine experiences at a device level, from the cell tower. And so that really is what is driving us towards this Open RAN type announcement. >> John: Amol, we've only got a minute and a half. I want to get your thoughts real quick on, on Open Source and the innovation. Danielle Royston, who's the CEO of TelcoDr. She's a keynote today. And she mentioned that the iPhone, 14 years ago was launched, okay. And you think about Open, and you mentioned proprietary with the 5G, and having O-RAN be more commodity and industry standard. That's going to lower the costs, increase the surface area of infrastructure. Everyone wins, 'cause everyone wants more connectivity options. Software is going to be the key to success for the telco industry, and Open Source is driving that. Is Android the playbook that you guys pioneered, obviously at Google with phones was very successful. How is that a playbook or an indicator to what could happen at Telco? >> Absolutely John and the parallel analogy that you raised is spot on. We believe in the Telco world Anthos multi-cloud as a unifying software development layer and the app development platform is the way that people will start to drive this innovation. Whether it's a radio or whether it's in the core or whether it's on the IT side of house. Same software running everywhere. That really allows you that whole CICD SRE type development models that we are familiar with, but on the telecom side. And that's where we are seeing some massive innovation opportunities for start, that would be for systems to come on. >> John: That's great stuff. And I was, just heard someone in the hallway just yesterday and say, you want to be the smartphone. You don't want to be the Blackberry going forward. That's pretty much the consensus here at Mobile World Congress. Amol, thank you for coming on and sharing the hard news with Google. Congratulations on the Ericsson Anthos platform deal as well as the Open Ran Alliance. Congratulations, good to see you. And by the way, you'll be keynoting tomorrow on theCUBE featured segments. So, watch that interview. >> Thank you John. Glad to be here. >> Thanks Amol. Managing Director, Telecom Industry Solutions at Google, obviously player, he's managing that business. Big opportunities for Google because they have the technology to get the chops Dave, and we're going to now, bring on Danielle Royston, she's here, I want to bring her up on the stage. Bon Jovi's about to go on, behind us, Bon Jovi's here. And this is like a nightclub, small intimate setting here in CLOUD CITY. Dave, Bon Jovi is right there. He's going to come on stage after we close down here, but first let's bring up the CEO of TelcoDR, Danielle Royston, great to see you. She's hot off the keynote. We're going to see you have a mic. Great to see you. >> Oh, it's great to be here, awesome. >> We are going to see you tomorrow for an official unpacking of the keynote but thanks for coming by and closing, swinging by. >> I know we're closing down the show. It's been a big, it's been a big day today at MWC and in CLOUD CITY. >> And Bon Jovi by the way. >> Day two, I mean really starting to get packed. >> And I mean, everyone's coming in, the band's warming up. You can kind of hear it. I think Elon Musk is about to go on as well. So I mean, it's really happening. >> A lot of buzz about CLOUD CITY out there in the hallway. >> Yeah, yeah. No, I mean, I think everyone's talking about it. I'm really, really excited >> Awesome. >> with how it's going, so yeah. >> Well, this is awesome, while we got you here, we want to put you to work being theCUBE analyst for this segment. You just heard Google. We broke them in for a breaking news segment. Obviously, so hard news Ericsson partnership. We're in the, actually former Ericsson booth. They're not even here, it's now the TelcoDR booth. But that's and then Open RAN again, Open Source. You got 5G, you got Open Source all happening. What's your take on this, as you're seeing this? >> Yeah, I think, you know, there's two big, and I talked about in my keynote this morning, there's two big technological changes that are happening in our industry simultaneously. And I don't think we could have had it--MWC 21 I certainly wanted to make it about the Public Cloud. I think I'm sort of successful in doing that. And I think the other piece is Open RAN, right? And I think these two big shifts are happening and I'm really thrilled about it. And so, yeah, we saw these two. >> I loved your keynote, we were here live Chloe was here filling in for Dave while Dave was going to do some research and getting some breaking stories. But you are on stage and, and we were talking, Chloe's like, these there's trillions of dollars, John on the table. And I was making the point, that the money's in the middle of the table and it's changing hands. If people don't watch it. And then you onstage said there's trillions of dollars. This is a real competitive shift with dollars on the table. And you've got cultural collision. You've got operators and builders trying to figure out, it feels like Dev Ops is coming in here. >> Yeah. >> I mean, what's the, what's the holistic vibe. What's the, what do you? >> Yeah, I think my message is about, we can use the software and specifically the software, the Public Cloud, to double your ARPU without massive CapEx expenditure. And I think the CSPs has always viewed to get the increase in ARPU, I got to build out the network, I got to spend a lot of money. And with these two technologies that require might be dropped. And then in exchange for doubling our ARPU, why not? We should do that absolutely. >> You know, your message has been pretty clear that you got to get on, on the wave. Got to ride the wave or become driftwood, as John said yesterday. And I think it's pretty, it's becoming pretty clear that that's the case for the Telcos. I feel like Danielle, that they entering this decade, perhaps with a little bit more humility than they have in the past. And then, you know, maybe, especially as it relates to developers, we're just talking about building out the Edge. We always talk about how developers are really going to be a key factor in the Edge and that's not a wheelhouse necessarily. But, obviously they're going to have to partner for that to have, they're going to have to embrace Cloud Native. I mean, it's pretty clear that your premise is right on. We'll see how long it takes, but if it, if they don't move fast, you know, what's going to happen. >> Well, I think you look at it from the enterprise's perspective. And we just heard Google talking about it. We need to provide a tech stack that the enterprises can write to. Now, historically they haven't had this opportunity. Historically that CSPs have provided it. Now you're going to be able to write against Google's tech stack. And that's something that is documented, it's available. There's developers out there that know it. And so I think that's the big opportunity. And this might be the, the big use case that they've been looking for with 5G and looking forward to 6G. And so it's a huge opportunity for CSPs to do that. >> I think that's an important point because you've got to place bets. And if I'm betting on Google or Amazon, Microsoft, okay, those are pretty safe bets, right? Those guys are going to be around. >> You think, I mean, they're like, no, don't trust the hyperscalers. And like, are you guys nuts? They're safe bets. >> Safe bets in terms of your investment in technology, now you've got to move fast. >> Yeah. >> That's the other piece of it. >> Yeah. >> You got to change your business model. >> Yeah, absolutely. >> Well, you got to be in the right side of history too. I mean, I mean, what is trust actually really mean? Does Snowflake trust Amazon? It sure did to get them where they are, but now they're looking at other options. >> That is a great example, John. It really is, because there's a company that can move fast, but the same time they compete, but the same time they add incremental value. >> And so here you can see the narrative like, oh no, we're partnering, Telcos aren't bad. No one needs to die to bring in the new. Well containers do, will help them manage that operational legacy, but culturally, if they don't move, they're going to have an asset that'll get rolled up into a SPAC or some sort of private equity deal. And because the old model of building CapEx and extract rents is kind of shifting because the value's shifting. So to me, I think this is what we're watching still kind of unknown. Danielle, love to get your thoughts on this, because if the value shifts to services, which is a consumption model like cloud, >> Yeah. >> Then you can, don't have to try to extract the rents out of the CapEx or, what's your thought, I mean. >> Yeah, I don't think you need to own the entire stack to provide value. And I think that's where we are today in Telco, right. There, I mean, nuts and bolts of the stack, the servers, you know, the cabling, everything. And I'm like, stand on the shoulders of these amazing tech giants that have solved, you know, mega data centers, right? Huge data centers at scale, and just leverage their investment and for your own benefit and start to focus, and we heard Amol talking about it, starts to focus on your subscriber and driving a great experience for us, right, yeah. >> Well, you've talking about that many times that you exhibit, you're right. If the conversation has been, has to go beyond, okay, we're just connectivity. It's got to be going to be like, oh, it's $10 a month for roaming charges, ah great. >> Yeah. >> Tick that box. Right, it's those value added services that you're talking about. And it's an infinite number of those that can be developed. And that's where the partnerships come in, and creativity in the industry. It's just a blank piece of paper. >> Well, we, you know, everyone thinks Google knows everything about you, right? We've had the experience on our phone where they're serving up ads and you're like, how did it? >> Facebook does? >> Right, Facebook. But you know who knows more about us than, than Google or your mother even, your Telco. >> Yeah. >> You take your phone with you everywhere, right? And so it's time to start unlocking all of that knowledge and using it to provide a really great experience. >> And by the way, congratulations on the CEO to Totogi and the investment hundred million dollars. That's a game changer statement again, back to the billing and the there's a good, there's a whole new team, even all up and down the stack of solutions, great stuff. And I want to unpack that tomorrow. I want to hold that, we're going to meet tomorrow. I want to, I want to, leave that here. >> Stay in the data for a second, because you made the point before in your keynote as well. That, it's that it's the data that drives the value of these companies. Why is it that Apple, Amazon, Google, Facebook now trillion dollar valuations. >> Yeah. >> It's all about the data and the Telco's have the data, but they can't figure out how to turn that into valuation. >> I think there's two parts of the data problem, which is number one, the data is trapped in on-premise, siloed systems that are not open. You can't connect them, and you certainly do it without, and we talked about it, I think yesterday, you know, millions of dollars of expenditure. And I think the other piece that's really interesting is that it's not connected to a mechanism to get it out in a timely manner, right? This is data that's aging by the minute. And when it takes you weeks to get the insight , it's useless, right? And so to Totogi, we announced the launch of Totogi, I'll get a little to Totogi plug in there, right. Totogi is connecting that insight to the charger, to the engagement engine and getting it out to subscribers. I think that's the beginning of this connection. I think it's a hard problem to solve it would have been solved already. But I think the key is leveraging the Public Cloud to get your data out of on-premise and, and mashing it up against these great services that Google and Azure and Amazon provide to drive it into the hands of the subscriber, make it very actionable, very monetizeable right at the end, that's what they want. More ARPU, more revenue, right. And you know, we've heard some keynotes from GSMA yesterday, some big, big guys, you know, talking about how, you know, it's not fair that these other communication platforms are not regulated. You know, Telco is heavily regulated and they're like, it's not fair. And I'm like, yep, it's not fair. That's life, right? >> Yeah. >> Stop complaining about it and start treating your customers better. So they're happy to give you more money. >> Yeah, and I think that's the message about the assets too. But one thing I will say, this Mobile World Congress, is that we've been having a lot of fun here in CLOUD CITY. I have to ask you a personal question. Have you been having fun? You look great on the keynote. You have a spring to your step. CLOUD CITY is beautiful, spectacular here. >> Yeah. >> Give us some highlights, personal highlights from your trip so far. >> Well number one, I'm, I'm psyched that the keynote is delivered in and done. I mean, I think it takes my blood pressure down a bunch. You know, the spring in my step, I wore these fun little tennis shoes and that was really fun. But yeah, I'm having, I'm having, I think a lot of things, great conversations. Yes the attendance is reduced. You know, usually you see hundreds of people from the big group carriers, especially the European groups. And yeah the attendance is reduced, but the senior guys are here, right? The senior leadership teams are in the booth. We're having meetings, we're having amazing conversations. I think the last year we really did live a decade in one year. I think they woke up to the power of the Public Cloud. >> Yeah, the pandemic helped. >> I mean, there was no way that they got business done without cloud based tools. And I think the light bulb went off. I think I'm right in the right moment. It's Awesome. >> Do you think that, do you think that they'll think in there, like left money on the table because you look at the pandemic, there were three categories of companies, losers, people who held the line, struggled and then winners. >> Yeah. >> Big time tale wind, booming. Obviously the Zooms of the world. Telco's did well. They were up and running, business was good. You think they might've left some money on the table? They could have done more. >> Yeah, I think the ones that were, you know, people talk about digital transformation. We're digital Telco, we're digitally enabled. And I think the pandemic really tested this, right. Can you deliver a contactless SIM? Or do you need to go to a store, in person, to get to go pick it up? And I had a broken SIM during the pandemic. My provider made me go to the store and I'm like, is it even open? And so I heard other stories of Telcos that were very digitally enabled, right. They were using Uber to deliver sims, and all sorts of fun, crazy stuff and new ideas. And they were able to pivot. >> Agile. >> Right, agile. And so I think, I think that was a really big wake up call. >> Telemedicine booming. >> So If you were in a digital business during the pandemic. In general, you're out of business, maybe unless you were a Telco, but I think you're right. I think the light bulb went off. It was an aha moment. And they said, oh-oh, if we don't move. >> I mean, I am not kidding right. As an ex-CEO where I was trying to collect signatures on renewals, right. Here's a DocuSign, which for the world is like, duh. I mean, our school uses DocuSign. I had telcos that required an in-person signature, >> Facts. >> Right, in some country, once a month on Tuesday between 10 and 2. And I'm like, how are you doing business, like that? That's like the dark ages. >> Yeah, this is where the crypto guys got it right, with know your customer. >> Yeah, right. >> 'Cause they have the data. >> Well, they had to, they had to. >> Yeah. >> There's a lot of things that's going wrong on crypto, we don't want to, we could do a whole show on that. But Danielle great to have you drop by, obviously Bon Jovi's here. How did you get Bon Jovi? Huge fan, New Jersey boy, Patriot's fan. >> Yeah. >> Dave, we love him. >> Fantastic. >> Well, I mean, who doesn't love Bon Jovi, right? We knew we wanted a rocker, right. Rock and roll is all about challenging the status quo. That, I mean, since the beginning and that's what we're doing here, right. We're really challenging like the way things have been done in Telco. Kind of just shattering the glass ceiling in lots of different ways, right. Calling the old guys dinosaurs. I'm sure those guys love me, right. I mean, how much do they hate me right now? Or they're like that girl, oh, so. >> Well we are punk rock. They're rock and roll. >> Right, right. I mean, maybe we should have gotten The Clash, right. Black Flag, right. I'm a little bit older than you. >> Bon Jovi's good. >> Right, we'll go with Bon Jovi. >> We like both of them. >> Accessible, right. >> Once's more conservative rock and roll still edgy. >> Yeah, so really excited to get them here. I've met him before. And so hopefully he'll remember me. It's been a couple of years since I've seen him. So can't wait to connect with him again. I think we have Elon Musk coming up and that's going to be, it's always exciting to hear that guy talk, so yeah. >> Yeah, he's going to be inspiration he'll talk space, SpaceX, >> Oh yeah. >> And possibly Starlink. >> Talking about the edge. >> Starlink, right. >> Starlink. >> I mean, those guys are launching rockets and deploying satellites and I think that's really interesting for rural. For rural right in Telco, right. Being able to deploy very quickly in rural where the, maybe the cost, you know, per gig doesn't make sense. You know, the cost for deployment of tower, I think. I mean, that's an interesting idea right there, yeah. >> It's exciting, he's inspirational. I think a lot of people look at the younger generation coming in and saying why are we doing things? A lot of people are questioning and they see the cloud. They're saying, oh, A or B, why are we doing this? This is such an easier, better way. >> Yeah. >> I think eventually the generation shifts in time. >> It's coming. I'm so excited to be a part of it, yeah. >> Great, great leadership. And I want to say that you are real innovative, glad to have us here and presenting with you here. >> Awesome team. >> I'm excited to have you guys. We talked last night about how great this partnership is, so thank you so much, yeah. >> TheCUBE, theCUBE's rocking inside the CLOUD CITY. The streets of the CLOUD CITY are hustling and booming. >> Packed. >> Packed in here. All stuff, great stuff. Thanks for coming on. >> Yep, thanks so much. >> Bon Jovi is here, we got a shot of Bon Jovi. Do we have a screenshot of Bon Jovi? >> Yeah, there it is. >> There it is, yeah. >> Okay, he's about to come on stage and we're going to take a break here. We're going to take and send it back to Adam and the team in the studio. Thanks guys.

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