[Music] is an open source first company right and we've been around for 20 years and we're pretty amazing at being good at open source giving back to the community building software with people and sharing it back to the community the cubism is an amazing kind of community outreach show and it's really great to be able to communicate and talk to the right people working with the cube has been incredible we do have a couple people that have been on the show a lot and like been able to do that and i think you're very friendly um and yeah just just have a good community around you i've worked for microsoft for a really long time and this is my first reinvent and it's it feels a little odd to be here for a non-microsoft event um and odd and exciting in a way um we are so redhead is partnering with both aws azure as well as gcp ibm and we we are working across different clouds partnering with a lot of cloud providers and i think this is a very interesting new relationship that we have that is new to me compared to being very committed to one single vendor one single line of business like one single operating system and stuff like that being able to partner with different people across the industry and board can build stuff together for the customers one word community

>> Narrator: From theCUBE studios in Palo Alto in Boston, connecting with thought leaders around the globe, these are Cloud Native Insights. >> Hi, and welcome to another episode of Cloud Native Insights. I'm your host, Stu Miniman. And when we talk about Cloud Native of course, it's not just moving to the cloud as a location, but how do we take advantage of what's happened in the cloud of the changes that need to happen. And this is not only from a technology standpoint, it's an organizational standpoint. And we're also going to touch on the financial implications and something you've probably heard about FinOps, relatively new last couple of years as a term. Of course, the financial engineering cloud has been around for many years and how that ties into DevOps and to help us understand this movement, what's going on really thrilled that we have a practitioner in this space. I want to welcome Sasha Kipervarg. He's a head, the head of Global Cloud Operations in special projects with LiveRamp. Sasha, thanks so much for joining us. >> Thanks very much too, happy to be here. >> All right, so why don't we start off first for those that don't know LiveRamp, I'm sorry, you're in the ad tech space. Maybe just give us a little bit about, you know, the organization and what your team does there? >> Sure, so LiveRamp is in the advertising technology space, and we help connect companies to their customers and send targeted advertising to them. We're based in San Francisco and have engineering teams across the globe, primarily New York, London, China, all over the map, really. And we're a fast growing company, we've gone from perhaps 400 to maybe 12, 1300 employees over the last year and a half. >> Well, you know that whole space is a whole separate discussion. I like when I looked up a little bit about LiveRamp the discussion point is, you know, cookies for eating not for following you, in looking where are you going all over the company. So your role inside LiveRamp, though. Tell us a little bit... You know, we're cloud bits in New York? >> Sure, so I'm responsible for the engineering teams that help other development teams operate in the cloud. So whereas on premise, it would have been a traditional operations team in the cloud. It's basically an engineering team that are experts in all the different areas that other engineering teams need us to be in so that we can express good practices and help them deliver products. >> Great, you actually had a real forcing function for cloud. You know, right now during the global pandemic we've seen lots of acceleration of people looking at cloud, if you could briefly just bring us back as to one of the things that helped push LiveRamp, you know, to go much heavier into cloud. >> Yeah, so we had some initial plans and we were exploring. But what really pushed us over the edge was we had a three to four day outage at our data center here in San Francisco during a heatwave. And during that time, the data center couldn't control their temperature. We had unusually warm temperatures in San Francisco, they weren't that warm. It was like maybe in the, you know, mid 90s. But for the Bay Area in the summertime, you know, where it's usually 70, it was a big deal. And so we had racks of servers going down because it was too hot. And so if we weren't quite convinced before that we certainly were after that, and that made us realize that there were lots of good reasons to be in the cloud. And so we did it. We put together a migration and over the course of a year, we not only containerized but we migrated our environment into GCP. >> I wonder if you could just bring us inside a little bit that move to the cloud, you talk about adopting containerization. You know, your applications, you know, how much of it did you just kind of move there? How much did you build new? Where there some things that you just said, hey, I can kind of, you know, adopt a SAS equivalent, you know, how did your application portfolio look? >> Yeah, so it's probably good to think of them in terms of the infrastructure services that we use in the cloud, and then the customer facing applications themselves. And what we try to do is essentially containerize all of our infrastructure applications. Actually, let me rephrase that. We took the customer facing applications, and we containerize those. Now the applications themselves, did not change but they swapped out their underlying infrastructure for containers, running on the GCP native container service. On the back end of things we use the native services in GCP up as much as possible. So if we were using a database on premise, we tried to use the native database service in the Cloud with Google. I think the one interesting exception to that which we're changing now, in fact, was we decided to run our hundred petabyte Hadoop cluster in the Cloud using our own native service because of some price concerns. Those price concerns have gotten better since time and we're now migrating to Dataproc, which is Google's native Hadoop service. >> Yeah, it's fascinating when you think about just how fast things change in the cloud, new services can become available and as you're alluding to the finances can change significantly over you know, a couple of months or a quarter. Overall, how's the experience been? You know, moving to cloud, though? >> Well, it's been fantastic in some ways, painful in others because, you know, you discover and maybe this is begin to touch on the FinOp stuff like, you discover that you've gone from quarterly planning cycles where you opt to purchase a whole rack of servers, and you implement them over the next quarter or something like that, to making by the second decisions, to spin up resources via command line by developer and spend unlimitless operating expenses. So, it's quite a big shift. And I think a lot of companies are caught, you know, flat footed by it. We certainly work for a little bit. And there's some financial pain that gets expressed. And you know, the question that I would pose to the audience when they think about the cloud is, you know, we think of the migrations and we only think about their technical success, but if you migrate to the cloud and you do it technically and you containerize and it's on schedule, but then you blow your budget, was it really a success? Because ultimately, you know the business needs to be profitable in order for things to work. >> Yeah, absolutely Sasha. So what I've heard you talk about this before is in the pre-cloud model, you met with the budget team quarterly, and it was mostly a look back function. And of course, when you think about leveraging the cloud, things are changing on a fairly regular basis. And are you able to understand what decisions you're making and what the impact will be on you know, next month and next quarters, billing? So bring us inside a little bit as to, you know, that interaction and what that meant to your teams and how they had to think about you know, engineering and finance together? >> Yeah, it's a fantastic question. So, I guess the first thing is, let me let me zoom out for a moment and just make sure that the audience understands that you know, typically it's just engineering leadership, and a fairly small number of maybe high level developers, maybe an architect that get together with finance once a quarter and have a conversation about what they want to spend and how much they want to spend, and where it should be implemented. And that is a fairly regular thing that's been going on for many years. When you move to the cloud, all of a sudden that decision needs to happen on a real time basis. And typically, companies are not set up for that kind of a conversation. There's usually like a large wall between finance and engineering. And it's because you want the engineering teams to be engineers and the finance folks to be doing finance related things. And the two don't really mix all that often. But when you give a developer an API to spend money essentially right, that's what you've done. They don't just spend up resources, they spend money by API. You need to have a real time conversation where they can make trade offs, where you can track the budget, and those expenses shift from something called CapEx to OpEx. And that's treated in a very different way, on the books. Where we are today is we've created what a team, we call it a FinOps practice. But it's a team that's cross functional by nature that sits within engineering that's made up of a FinOps practitioner, person dedicated to the role. And then members of the finance team. And then many other members of engineer and they work together to first, express the cost by helping developers understand what they're actually spending and where they're spending it. And then the system also makes, recommendations about how to optimize and then the developers absorb that information and figure out what they should optimize, do that work. And then the system re-represents the information for them, and lets them know that their optimizations make sense or not from a financial perspective. The way that we've talked to developers, we've discovered that they care about efficiency. They care about efficiency in different ways. They care about CPU efficiency, they care about RAM efficiency. And it turns out, they care about how efficient their application is from a cost perspective to, right? And you can either tell them directly to care about it, or help them become aware. Or you can use proxies, like what I just mentioned about CPU, RAM, disk, network. If they understand how efficient their application is. They have a natural instinct to want to make it better on a daily and weekly basis. It's just sort of baked into their deep engineering persona. And we try to harness that. We try to position things in such a way that they can do the right thing, because most developers want to do the right. >> Yeah, it's really interesting to me Sasha I remember back, you know you go back seven, eight years ago and I looked at cloud models, and how cloud providers were trying to give more visibility and even give guidance to customers as to how they could adjust things to make them more financially reasonable. I've come from the infrastructure side, when I think about you know, deployments in a data center. It was very well understood you had systems engineer work with a customer, they deploy something, they understand what the growth of is expected to be, and if you needed more, more computer, more storage, what the cost of that would be, you understand the you know, how many years you will be writing that off for, but everything's well understood, and as you said, like developers often they've got, n minus one technology, okay, here's some gear you could work on. But finances were clearly written, they were put into some spreadsheet or understood as opposed to the cloud. There is much more burden on the user to understand what they're doing. Because you have that limitless capability as opposed to some fixed asset that you're writing it off. We're huge proponents of ledger than the cloud. And often there are, cost savings by going to the cloud. But it feels like they're also some of this overhead of having to do the financial engineering is an overhead cost that might not be considered in the overall movement to the cloud. >> Yeah, and maybe now is a good time to swing back to the concept of DevOps, right? Because I want to frame FinOps in this concept of having the budget overhead and I want to link it to the Agile, okay. So, part of the reason we moved to DevOps which is an Agile movement that essentially, puts the responsibility of owning infrastructure and deploying it into the hands of the engineers themselves. The reason that it existed was because we had a problem deploying, we had two different teams typically operations and engineering. And one of them would write the code, and they would throw it over the wall to the operations team that will deploy the code. And because they were two different teams, and they didn't necessarily sit together or sometimes even report into the same leadership, they had different goals, right. And when there was a problem, the problem had to cross both of the team boundaries. And so it was slower to resolve issues. And so, people had the bright idea to essentially put the teams together, right. And allow the developers themselves to deploy the code. And of course, depending on the size of the company was structured--or it is structured slightly differently this idea of DevOps. And, essentially what you had was a situation that worked beautifully because if you had two separate teams that all of a sudden became one team that was fully responsible for writing the code, writing the tests and deploying the code, they saw each other's pain, they understood the problem really well. And it was an opportunity for them to go faster, and they could see the powerful thing. And I think that's essentially what made the DevOps movement incredibly successful. It was the opportunity to be able to control their own destiny, and move faster that made it successful. I view FinOps in a similar fashion. It is an opportunity for developers to understand their cost efficiency and deploy in the cloud by API, and do it in a fully responsible way. Everything that we've been talking about related to DevOps, there is a higher goal here. And that is the goal of unit economics, which is figuring out precisely what your application actually costs being deployed and used by the consumer on a unit basis, right. And that is the thing we're all trying to get to. And this FinOps gets us one step closer to that sort of financial nirvana. Now if you can achieve it, or even if you can achieve the basics of it. You can structure your contracts in a different way, you can create products that take better advantage of your financial model. You can destroy certain products that you have, that don't really make sense to operate in the cloud. You can fire customers. You can do a whole variety of things, if you know what your full costs are, and FinOps allows us to do that. And FinOps allows developers to think of their applications in a way that perhaps they never have in a fully transparent, holistic way. Like there's no sense to build a Ferrari, if it costs too much to operate, right. And FinOps helps you get there. >> It's such an important point Sasha. I'm so glad you brought that up, back in the traditional infrastructure data center world, we spent decades talking about Showback and Chargeback and what visibility you had? And of course for the most part, it was, oh well you know, that sunk costs or something that facilities takes care of. I'm not going to work at it and therefore, we did not have a clear picture of IT and how it really impacted the bottom line of business. So FinOps as you said, help move us towards that ultimate goal that we know we've had for years. I want to tease on that thing that you mentioned there, speed. We understand that, absolutely speed is one of the most important things, how do we react to the business? How to react to the customer, as close to real time as possible? How do you make sure that FinOps doesn't slow things down? If I'm an engineer, and I need to think about oh, wait. I've been told that, the best code to write is no code. But, I have to constantly think about, am I being financially sound? Am I doing that? How do we make sure that this movement doesn't slow me down, but actually enables me to move forward faster? >> Yeah I mean, let me mention a couple of things there. The first is that, what I alluded to before, which is that if you don't think about this as a developer, it's possible that the finance folks in the company could decide well hey, operating the cloud doesn't make financial sense for us. And so we're not going to do it and we're going to go back to data center and you maybe that's the right business move for some businesses who aren't growing rapidly, for whom speed and flexibility isn't as important. Maybe they stay in the data center or they go back to a data center. And so like, I would think a developer has stakes in the game, if they want to be flexible, if they want to continue to be flexible. And from a company perspective, like we... You know, this idea still being sort of fleshed out and even within the FinOps movement, like there is a question of how much time should a developer spend thinking about costs stuff? I'll tell you what my answer is, and perhaps I can touch on what other people think about it as well. My answer is that it's best to be transparent with developers as much as possible and share with them as much data as we possibly can, the right kind of data, right? Not overwhelm them with statistics, that help them understand their applications and applications efficiency. And if when you are implementing a FinOps practice within your org, if you get the sense that people are very touchy, and they're not used to this idea of talking about cost directly, you can talk about it in terms of proxies, right. And as I mentioned before, CPU, RAM, disk, network. Those are all good proxies for cost. So if you tell them hey, your application is efficient or inefficient on these different dimensions, go do something about it, right. Like, when you build your next architecture for your application, incorporate efficiencies across these particular dimensions. That will resonate and that will ensure that developers don't feel like it's hampering their speed. I think the cultural shift that FinOps emphasizes is key. This, helping developers get the high level understanding of why we're doing what we're doing and why it's important and embedding it into their not only their architectural design, but their daily operations. That is the key, like FinOps has multiple pieces to it. I think it's successful because it emphasizes a system that's made up of governance practices, rules that tell you how you should behave within the system. Tools like a CMP, and we can talk about that in a bit. But essentially, it's a cost management platform which is a tool that is designed to figure out what you're spending and express it back to you. It's designed to create anomalies and there's a whole segment in the marketplace of these different kinds of tools. And then of course, the cultural shift. If you can do all three at your organization whether you want to call it a FinOps or not, you're going to be set up for success and it will solve that problem for you. >> So Sasha, one of the things I've really enjoyed the last decade or so is it used to be that IT organizations thought what they were doing was, the differentiator and therefore, they were a bit guarded about what they would share. And of course, these days leveraging cloud leveraging open source, there is much more collaboration out there. And LiveRamp, not only is using FinOps, but you're a member of the FinOps Foundation, which has over 1500, individual members participating in that oversaw by the Linux Foundation, maybe bring us in a little bit as to, why LiveRamp decided to join this group. And, for final word on really kind of the mission of the FinOps Foundation. >> Yeah, I mean as members of the audience might know, the FinOps Foundation recently moved to the Linux Foundation, and I think part of that move was to express the independence of the FinOps Foundation, it was connected to a company in a CMP space before and I think J.R and the team made a wonderful decision in doing so. And I wanted to give a shout out to them. I'm very excited about the shift, and we look forward to contributing to the codebase and all the conversations. In terms of how we discovered it. I was feeling the pain of all these different problems of being, over my budget in the cloud. And, I had arrived at like this idea of like, I needed a dedicated person, a dedicated team that was cross-functional in order to solve the problem. But, on a whim, I attended a FinOps course at a conference and Mike Fuller, who was the author or one of the authors of the FinOps book, along with J.R. was teaching it and I spent eight hours just in like, in literal wonder thinking holy crap this guy and whoever came up with this concept put together and synthesized all of the pain that I had felt and all the different things I thought about in order to solve the problem in a beautiful, holistic manner. And they were just presenting it back to me on a platter, back to everyone on a platter and I thought that was beautiful. And the week that I got back to work from the conference, I put together a presentation for the executives to position a FinOps practice as the solution for LiveRamps budgetary cloud pain. We went for it, and we... It's helped us, it's helped lots of other companies. And, I'm here today partly because I want to give back because there's so much that I learned from being in the Slack channel. There's so much that I learned by reading the book, things that I hadn't thought of that I hadn't experienced yet. So I didn't have the pain. But you know, J.R and Mike, they had all interviewed, hundreds of different folks for the book, got lots of input, and they were talking about things that I hadn't experienced yet, that I was going to. And so I want to give back, they clearly want to give back. And I think it's, a wonderful, a wonderful practice, a wonderful book, a wonderful Slack channel. I would recommend that anyone facing the budgetary challenge in the cloud, join the organization There is a monthly conversation, where someone presents and you learn a lot from doing it. You learn problems and solutions that you perhaps wouldn't have thought of, so I would highly recommend it. >> All right, well Sasha thank you so much for sharing your story with our community and everything that you've learned and best of luck going forward. >> Thanks very much Stu. It's great to talk. >> Alright, and if you want to learn more about what Sasha was talking about, Linux Foundation it is this finops.org is their website. Linux Foundation, of course theCUBE. Cloud Native, big piece of what happens and what we're doing will be at theCUBEcon, CloudNativeCon shows this year. Look for more interviews in this space. I'm Stu Miniman. And look forward to hearing more about your Cloud Native Insights. (upbeat music)

>>Good morning or good afternoon or good evening, depending on where you are and welcome to this session, reduce claims, fraud, we're data, very excited to have you all here. My name is Winnie castling and I'm Cloudera as managing director for the insurance vertical. First and foremost, we want to let you know that we know insurance. We have done it for a long time. Collectively, personally, I've done it for over 30 years. And, you know, as a proof of that, we want to let you know that we insure, we insure as well as we do data management work for the top global companies in the world, in north America, over property casualty, general insurance health, and, um, life and annuities. But besides that, we also take care of the data needs for some smaller insurance companies and specialty companies. So if you're not one of the huge Glomar conglomerates in the world, you are still perfectly fine with us. >>So >>Why are we having this topic today? Really digital claims and digital claims management is accelerating. And that's based on a couple of things. First and foremost, customers are asking for it. Customers are used to doing their work more digitally over the last descending year or two. And secondly, with the last year or almost two, by now with the changes that we made in our work processes and in society at large around cuvettes, uh, both regulators, as well as companies have enabled digital processing and the digital journey to a degree that they've never done before. Now that had some really good impacts for claims handling. It did meant that customers were more satisfied. They felt they have more control over their processes in the cloud and the claims experience. It also reduced in a lot of cases, both in commercial lines, as well as in personal lines, the, um, the, the time periods that it took to settle on a claim. However, um, the more digital you go, it, it opened up more access points for fraud, illicit activities. So unfortunately we saw indicators of fraud and fraud attempts, you know, creeping up over the last time period. So we thought it was a good moment to look at, you know, some use cases and some approaches insurers can take to manage that even better than they already >>Are. >>And this is how we plan to do that. And this is how we see this in action. On the left side, you see progress of data analytics and data utilization, um, around, in this case, we're talking about claims fraud, but it's a generic picture. And really what it means is most companies that start with data affords pretty much start around data warehousing and we eliminate analytics and all around BI and reporting, which pretty much is understanding what we know, right? The data that we already have utilizing data to understand better what we know already. Now, when we move to the middle blue collar, we get into different types of analytics. We get into exploratory data science, we get to predictions and we start getting in the space of describing what we can learn from what we know, but also start moving slowly into predicting. So first of all, learn and gather insights of what we already know, and then start augmenting with that with other data sets and other findings, so that we can start predicting for the future, what might happen. >>And that's the point where we get to AI, artificial intelligence and machine learning, which will help us predict which of our situations and claims are most likely to have a potential fraud or abuse scenario attached to it. So that's the path that insurers and other companies take in their data management and analytics environments. Now, if you look at the right side of this light, you see data complexity per use cases in this case in fraud. So the bubbles represent the types of data that are being used, or the specific faces that we discussed on the left side. So for reporting, we used a TPA data, policy verification, um, claims file staff data, that it tends to be heavily structured and already within the company itself. And when you go to the middle to the more descriptive basis, you start getting into unstructured data, you see a lot of instructor texts there, and we do a use case around that later. >>And this really enables us to better understand what the scenarios are that we're looking at and where the risks are around. In our example today, fraud, abuse and issues of resources. And then the more you go to the upper right corner, you see the outside of the baseball field, people refer to it, you see new unstructured data sources that are being used. You tend to see the more complex use cases. And we're looking at picture analysis, we're looking at voice analysis there. We're looking at geolocation. That's quite often the first one we look at. So this slide actually shows you the progress and the path in complexity and in utilization of data and analytical tool sets to manage data fraud, fraud, use cases, optimally. >>Now how we do that and how we look at at a Cloudera is actually not as complicated as, as this slight might want to, um, to, to give you an impression. So let's start at the left side at the left side, you see the enterprise data, which is data that you as an organization have, or that you have access to. It doesn't have to be internal data, but quite often it is now that data goes into a data journey, right? It gets collected first. It gets manipulated and engineered so that people can do something with it. It gets stored something, you know, people need to have access to it. And then they get into analytical capabilities who are inside gathering and utilization. Now, especially for insurance companies that all needs to be underpinned by a very, very strong security and governance, uh, environment. Because if not the most regulated industry in the world, insurance is awfully close. >>And if it's not the most regulated one, it's a close second. So it's critically important that insurers know, um, where the data is, who has access to it for Rodriguez, uh, what is being used for so terms like lineage, transparency are crucial, crucially important for insurance. And we manage that in the shared data experience. So it goes over the whole Cloudera platform and every application or tool or experience you use would include Dao. And on the right side, you see the use cases that tend to be deployed around claims and claims fraud, claims, fraud management. So over the last year or so, we've seen a lot of use cases around upcoding people get one treatment or one fix on a car, but it gets coded as a more expensive one. That's a fraud scenario, right? We see also the more classical fraud things and we see anti money laundering. So those are the types of use cases on the right side that we are supporting, um, on the platform, uh, around, um, claims fraud. >>And this is an example of how that actually looks like now, this is a one that it's actually a live one of, uh, a company that had, um, claims that dealt with health situations and being killers. So that obviously is relevant for health insurers, but you also see it in, um, in auto claims and counterclaims, right, you know, accidents. There are a lot of different claims scenarios that have health risks associated with it. And what we did in this one is we joined tables in a complex schema. So we have to look at the claimant, the physician, the hospital, all the providers that are involved procedures that are being deployed. Medically medicines has been utilized to uncover the full picture. Now that is a hard effort in itself, just for one claim and one scenario. But if you want to see if people are abusing, for example, painkillers in this scenario, you need to do that over every instant that is member. >>This claimant has, you know, with different doctors, with different hospitals, with different pharmacies or whatever that classically it's a very complicated and complex, um, the and costly data operation. So nowadays that tends to be done by graph databases, right? So you put fraud rings within a graph database and walk the graph. And if you look at it here in batch, you can see that in this case, that is a member that was shopping around for being killers and went through different systems and different providers to get, um, multiple of the same big LR stat. You know, obviously we don't know what he or she did with it, but that's not the intent of the system. And that was actually a fraud and abuse case. >>So I want to share some customer success stories and recent, uh, AML and fraud use cases. And we have a couple of them and I'm not going to go in an awful lot of detail, um, about them because we have some time to spend on one of them immediately after this. But one of them for example, is voice analytics, which is a really interesting one. And on the baseball slide that I showed you earlier, that would be a right upper corner one. And what happened there is that an insurance company utilized the, uh, the voice records they got from the customer service people to try to predict which one were potentially fraud list. And they did it in two ways. They look at actually the contents of what was being said. So they looked at certain words that were being used certain trigger words, but they also were looking at tone of voice pitch of voice, uh, speed of talking. >>So they try to see trends there and hear trends that would, um, that would bring them for a potential bad situation. Now good and bad news of this proof of concept was it's. We learned that it's very difficult just because every human is different to get an indicator for bad behavior out of the pitch or the tone or the voice, you know, or those types of nonverbal communication in voice. But we did learn that it was easier to, to predict if a specific conversation needed to be transferred to somebody else based on emotion. You know, obviously as we all understand life and health situations tend to come with emotions, or so people either got very sad or they got very angry or so the proof of concept didn't really get us to a firm understanding of potential driverless situation, but it did get us to a much better understanding of workflow around, um, claims escalation, um, in customer service to route people, to the right person, depending on what they need. >>And that specific time, another really interesting one was around social media, geo open source, all sorts of data that we put together. And we linked to the second one that I listed on slide here that was an on-prem deployment. And that was actually an analysis that regulators were asking for in a couple of countries, uh, for anti money laundering scams, because there were some plots out there that networks of criminals would all buy the low value policies, surrendered them a couple of years later. And in that way, God criminal money into the regular amount of monetary system whitewashed the money and this needed some very specific and very, very complex link analysis because there were fairly large networks of criminals that all needed to be tied together, um, with the actions, with the policies to figure out where potential pain points were. And that also obviously included ecosystems, such as lawyers, administrative offices, all the other things, no, but most, you know, exciting. >>I think that we see happening at the moment and we, we, you know, our partner, if analytics just went live with this with a large insurer, is that by looking at different types that insurers already have, um, unstructured data, um, um, their claims nodes, um, repour its claims, filings, um, statements, voice records, augmented with information that they have access to, but that's not their ours such as geo information obituary, social media Boyd on the cloud. And we can analyze claims much more effectively and efficiently for fraud and litigation and alpha before. And the first results over the last year or two showcasing a significant degree is significant degrees in claims expenses and, um, and an increase at the right moment of what a right amount in claims payments, which is obviously a good thing for insurers. Right? So having said all of that, I really would like to give Sri Ramaswami, the CEO of infinite Lytics, the opportunity to walk you through this use case and actually show you how this looks like in real life. So Sheree, here >>You go. So >>Insurers often ask us this question, can AI help insurance companies, lower loss expenses, litigation, and help manage reserves better? We all know that insurance industry is majority. Majority of it is unstructured data. Can AI analyze all of this historically and look for patterns and trends to help workflows and improve process efficiencies. This is exactly why we brought together industry experts at infill lyrics to create the industries where very first pre-trained and prebuilt insights engine called Charlie, Charlie basically summarizes all of the data structured and unstructured. And when I say unstructured, I go back to what money basically traded. You know, it is including documents, reports, third-party, um, it reports and investigation, uh, interviews, statements, claim notes included as well at any third party enrichment that we can legally get our hands on anything that helps the adjudicate, the claims better. That is all something that we can include as part of the analysis. And what Charlie does is takes all of this data and very neatly summarizes all of this. After the analysis into insights within our dashboard, our proprietary naturally language processing semantic models adds the explanation to our predictions and insights, which is the key element that makes all of our insights >>Actually. So >>Let's just get into, um, standing what these steps are and how Charlie can help, um, you know, with the insights from the historical patterns in this case. So when the claim comes in, it comes with a lot of unstructured data and documents that the, uh, the claims operations team have to utilize to adjudicate, to understand and adjudicate the claim in an efficient manner. You are looking at a lot of documents, correspondences reports, third party reports, and also statements that are recorded within the claim notes. What Charlie basically does is crunches all, all of this data removes the noise from that and brings together five key elements, locations, texts, sentiments, entities, and timelines in the next step. >>In the next step, we are basically utilizing Charlie's built-in proprietary, natural language processing models to semantically understand and interpret all of that information and bring together those key elements into curated insights. And the way we do that is by building knowledge, graphs, and ontologies and dictionaries that can help understand the domain language and convert them into insights and predictions that we can display on the dash. Cool. And if you look at what has been presented in the dashboard, these are KPIs and metrics that are very interesting for a management staff or even the operations. So the management team can basically look at the dashboard and start with the summarized data and start to then dig deeper into each of the problematic areas and look at patterns at that point. And these patterns that we learn from not only from what the system can provide, but also from the historic data can help understand and uncover some of these patterns in the newer claims that are coming in so important to learn from the historic learnings and apply those learnings in the new claims that are coming in. >>Let's just take a very quick example of what this is going to look like a claims manager. So here the claims manager discovers from the summarized information that there are some problems in the claims that basically have an attorney involved. They have not even gone into litigation and they still are, you know, I'm experiencing a very large, um, average amount of claim loss when they compare to the benchmark. So this is where the manager wants to dig deeper and understand the patterns behind it from the historic data. And this has to look at the wealth of information that is sitting in the unstructured data. So Charlie basically pulls together all these topics and summarizes these topics that are very specific to certain losses combined with entities and timelines and sentiments, and very quickly be able to show to the manager where the problematic areas are and what are those patterns leading to high, severe claims, whether it's litigation or whether it's just high, severe indemnity payments. >>And this is where the managers can adjust their workflows based on what we can predict using those patterns that we have learned and predict the new claims, the operations team can also leverage Charlie's deep level insights, claim level insights, uh, in the form of red flags, alerts and recommendations. They can also be trained using these recommendations and the operations team can mitigate the claims much more effectively and proactively using these kind of deep level insights that need to look at unstructured data. So at the, at the end, I would like to say that it is possible for us to achieve financial benefits, leveraging artificial intelligence platforms like Charlie and help the insurers learn from their historic data and being able to apply that to the new claims, to work, to adjust their workflows efficiently. >>Thank you very much for you. That was very enlightening as always. And it's great to see that actually, some of the technology that we all work so hard on together, uh, comes to fruition in, in cost savings and efficiencies and, and help insurers manage potential bad situations, such as claims fraud batter, right? So to close this session out as a next step, we would really urge you to a Sasha available data sources and advanced or predictive fraud prevention capabilities aligned with your digital initiatives to digital initiatives that we all embarked on over the last year are creating a lot of new data that we can use to learn more. So that's a great thing. If you need to learn more at one to learn more about Cloudera and our insurance work and our insurance efforts, um, you to call me, uh, I'm very excited to talk about this forever. So if you want to give me a call or find a place to meet when that's possible again, and schedule a meeting with us, and again, we love insurance. We'll gladly talk to anyone until they say in parts of the United States, the cows come home about it. And we're dad. I want to thank you all for attending this session and hanging in there with us for about half an hour. And I hope you have a wonderful rest of the day. >>Good afternoon, I'm wanting or evening depending on where you are and welcome to this breakout session around insurance, improve underwriting with better insights. >>So first and >>Foremost, let's summarize very quickly, um, who we're with and what we're talking about today. My name is goonie castling, and I'm the managing director at Cloudera for the insurance vertical. And we have a sizeable presence in insurance. We have been working with insurance companies for a long time now, over 10 years, which in terms of insurance, it's maybe not that long, but for technology, it really is. And we're working with, as you can see some of the largest companies in the world and in the continents of the world. However, we also do a significant amount of work with smaller insurance companies, especially around specialty exposures and the regionals, the mutuals in property, casualty, general insurance, life, annuity, and health. So we have a vast experience of working with insurers. And, um, we'd like to talk a little bit today about what we're seeing recently in the underwriting space and what we can do to support the insurance industry in there. >>So >>Recently what we have been seeing, and it's actually accelerated as a result of the recent pandemic that we all have been going through. We see that insurers are putting even more emphasis on accounting for every individual customers with lotta be a commercial clients or a personal person, personal insurance risk in a dynamic and a B spoke way. And what I mean with that is in a dynamic, it means that risks and risk assessments change very regularly, right? Companies go into different business situations. People behave differently. Risks are changing all the time and the changing per person they're not changing the narrow generically my risk at a certain point of time in travel, for example, it might be very different than any of your risks, right? So what technology has started to enable is underwrite and assess those risks at those very specific individual levels. And you can see that insurers are investing in that capability. The value of, um, artificial intelligence and underwriting is growing dramatically. As you see from some of those quotes here and also risks that were historically very difficult to assess such as networks, uh, vendors, global supply chains, um, works workers' compensation that has a lot of moving parts to it all the time and anything that deals with rapidly changing risks, exposures and people, and businesses have been supported more and more by technology such as ours to help, uh, gone for that. >>And this is a bit of a difficult slide. So bear with me for a second here. What this slide shows specifically for underwriting is how data-driven insights help manage underwriting. And what you see on the left side of this slide is the progress in make in analytical capabilities. And quite often the first steps are around reporting and that tends to be run from a data warehouse, operational data store, Starsky, Matt, um, data, uh, models and reporting really is, uh, quite often as a BI function, of course, a business intelligence function. And it really, you know, at a regular basis informs the company of what has been taken place now in the second phase, the middle dark, the middle color blue. The next step that is shore stage is to get into descriptive analytics. And what descriptive analytics really do is they try to describe what we're learning in reporting. >>So we're seeing sorts and events and sorts and findings and sorts of numbers and certain trends happening in reporting. And in the descriptive phase, we describe what this means and you know why this is happening. And then ultimately, and this is the holy grill, the end goal we like to get through predictive analytics. So we like to try to predict what is going to happen, uh, which risk is a good one to underwrite, you know, watch next policy, a customer might need or wants water claims as we discuss it. And not a session today, uh, might become fraud or lists or a which one we can move straight through because they're not supposed to be any issues with it, both on the underwriting and the claims side. So that's where every insurer is shooting for right now. But most of them are not there yet. >>Totally. Right. So on the right side of this slide specifically for underwriting, we would, we like to show what types of data generally are being used in use cases around underwriting, in the different faces of maturity and analytics that I just described. So you will see that on the reporting side, in the beginning, we start with rates, information, quotes, information, submission information, bounding information. Um, then if you go to the descriptive phase, we start to add risk engineering information, risk reports, um, schedules of assets on the commercial side, because some are profiles, uh, as a descriptions, move into some sort of an unstructured data environment, um, notes, diaries, claims notes, underwriting notes, risk engineering notes, transcripts of customer service calls, and then totally to the other side of this baseball field looking slide, right? You will see the relatively new data sources that can add tremendous value. >>Um, but I'm not Whitely integrated yet. So I will walk through some use cases around these specifically. So think about sensors, wearables, you know, sensors on people's bodies, sensors, moving assets for transportation, drone images for underwriting. It's not necessary anymore to send, uh, an inspection person and inspector or risk, risk inspector or engineer to every building, you know, be insurers now, fly drones over it, to look at the roofs, et cetera, photos. You know, we see it a lot in claims first notice of loss, but we also see it for underwriting purposes that policies out there. Now that pretty much say sent me pictures of your five most valuable assets in your home and we'll price your home and all its contents for you. So we start seeing more and more movements towards those, as I mentioned earlier, dynamic and bespoke types of underwriting. >>So this is how Cloudera supports those initiatives. So on the left side, you see data coming into your insurance company. There are all sorts of different data. There are, some of them are managed and controlled by you. Some orders you get from third parties, and we'll talk about Della medics in a little bit. It's one of the use cases. They move into the data life cycle, the data journey. So the data is coming into your organization. You collected, you store it, you make it ready for utilization. You plop it either in an operational environment for processing or in an analytical environment for analysis. And then you close on the loop and adjusted from the beginning if necessary, no specifically for insurance, which is if not the most regulated industry in the world it's coming awfully close, and it will come in as a, a very admirable second or third. >>Um, it's critically important that that data is controlled and managed in the correct way on the old, the different regulations that, that we are subject to. So we do that in the cloud era Sharon's data experiment experience, which is where we make sure that the data is accessed by the right people. And that we always can track who did watch to any point in time to that data. Um, and that's all part of the Cloudera data platform. Now that whole environment that we run on premise as well as in the cloud or in multiple clouds or in hybrids, most insurers run hybrid models, which are part of the data on premise and part of the data and use cases and workloads in the clouds. We support enterprise use cases around on the writing in risk selection, individualized pricing, digital submissions, quote processing, the whole quote, quote bound process, digitally fraud and compliance evaluations and network analysis around, um, service providers. So I want to walk you to some of the use cases that we've seen in action recently that showcases how this work in real life. >>First one >>Is to seize that group plus Cloudera, um, uh, full disclosure. This is obviously for the people that know a Dutch health insurer. I did not pick the one because I happen to be dodged is just happens to be a fantastic use case and what they were struggling with as many, many insurance companies is that they had a legacy infrastructure that made it very difficult to combine data sets and get a full view of the customer and its needs. Um, as any insurer, customer demands and needs are rapidly changing competition is changing. So C-SAT decided that they needed to do something about it. And they built a data platform on Cloudera that helps them do a couple of things. It helps them support customers better or proactively. So they got really good in pinging customers on what potential steps they need to take to improve on their health in a preventative way. >>But also they sped up rapidly their, uh, approvals of medical procedures, et cetera. And so that was the original intent, right? It's like serve the customers better or retain the customers, make sure what they have the right access to the right services when they need it in a proactive way. As a side effect of this, um, data platform. They also got much better in, um, preventing and predicting fraud and abuse, which is, um, the topic of the other session we're running today. So it really was a good success and they're very happy with it. And they're actually starting to see a significant uptick in their customer service, KPIs and results. The other one that I wanted to quickly mention is Octo. As most of you know, Optune is a very, very large telemedics provider, telematics data provider globally. It's been with Cloudera for quite some time. >>This one I want to showcase because it showcases what we can do with data in mass amounts. So for Octo, we, um, analyze on Cloudera 5 million connected cars, ongoing with 11 billion data points. And really what they're doing is the creating the algorithms and the models and insurers use to, um, to, um, run, um, tell them insurance, telematics programs made to pay as you drive pay when you drive, pay, how you drive. And this whole telemedics part of insurance is actually growing very fast too, in, in, still in sort of a proof of concept mini projects, kind of initiatives. But, um, what we're succeeding is that companies are starting to offer more and more services around it. So they become preventative and predictive too. So now you got to the program staff being me as a driver saying, Monique, you're hopping in the car for two hours. >>Now, maybe it's time you take a break. Um, we see that there's a Starbucks coming up on the ride or any coffee shop. That's part of a bigger chain. Uh, we know because you have that app on your phone, that you are a Starbucks user. So if you stop there, we'll give you a 50 cents discount on your regular coffee. So we start seeing these types of programs coming through to, again, keep people safe and keep cars safe, but primarily of course the people in it, and those are the types of use cases that we start seeing in that telematic space. >>This looks more complicated than it is. So bear with me for a second. This is a commercial example because we see a data work. A lot of data were going on in commercial insurance. It's not Leah personal insurance thing. Commercial is near and dear to my heart. That's where I started. I actually, for a long time, worked in global energy insurance. So what this one wheelie explains is how we can use sensors on people's outfits and people's clothes to manage risks and underwrite risks better. So there are programs now for manufacturing companies and for oil and gas, where the people that work in those places are having sensors as part of their work outfits. And it does a couple of things. It helps in workers' comp underwriting and claims because you can actually see where people are moving, what they are doing, how long they're working. >>Some of them even tracks some very basic health-related information like blood pressure and heartbeat and stuff like that, temperature. Um, so those are all good things. The other thing that had to us, it helps, um, it helps collect data on the specific risks and exposures. Again, we're getting more and more to individual underwriting or individual risk underwriting, who insurance companies that, that ensure these, these, um, commercial, commercial, um, enterprises. So they started giving discounts if the workers were sensors and ultimately if there is an unfortunate event and it like a big accident or big loss, it helps, uh, first responders very quickly identify where those workers are. And, and, and if, and how they're moving, which is all very important to figure out who to help first in case something bad happens. Right? So these are the type of data that quite often got implements in one specific use case, and then get broadly moved to other use cases or deployed into other use cases to help price risks, betters better, and keep, you know, risks, better control, manage, and provide preventative care. Right? >>So these were some of the use cases that we run in the underwriting space that are very excited to talk about. So as a next step, what we would like you to do is considered opportunities in your own companies to advance risk assessment specific to your individual customer's need. And again, customers can be people they can be enterprises to can be other any, any insurable entity, right? The please physical dera.com solutions insurance, where you will find all our documentation assets and thought leadership around the topic. And if you ever want to chat about this, please give me a call or schedule a meeting with us. I get very passionate about this topic. I'll gladly talk to you forever. If you happen to be based in the us and you ever need somebody to filibuster on insurance, please give me a call. I'll easily fit 24 hours on this one. Um, so please schedule a call with me. I promise to keep it short. So thank you very much for joining this session. And as a last thing, I would like to remind all of you read our blogs, read our tweets. We'd our thought leadership around insurance. And as we all know, insurance is sexy.

>>Fly from San Francisco. It's the cube covering RSA conference, 2020 San Francisco brought to you by Silicon angle media. >>Hi everyone. Welcome back to the cubes coverage here at in San Francisco, the Moscone center for RSA conference 2020 I'm job for your host. We are the very special guests, the COO of VMware, Sanjay Poonen, cube alumni. When you talk about security, talk about the modern enterprise as it transforms new use cases, new problems emerge. New opportunities exist here to break it down. Sanjay, welcome back. Thank you John. Always a pleasure to be on your show and I think it's my first time at RSA. We've talked a number of times, but nice to see you here. Well, it's a security guard. Well, this is really why I wanted you to talk, talk to you because operations is become now the big conversation around security. So you know, security was once part of it. It comes out and part of the board conversation, but when you look at security, all the conversations that we're seeing that are the most important conversations are almost a business model conversation. >>Almost like if you're the CEO of the company, you've got HR people, HR, organizational behavior, collaboration, technology, stack compliance and risk management. So the threat of cyber has to cut across now multiple operational functions of the business. It's no longer one thing, it's everything. So this is really kind of makes it the pressure of the business owners to be mindful of a bigger picture. And the attack velocity is happening so much faster, more volume of attacks, milliseconds and nanosecond attacks. So this is a huge, huge problem. I need you to break it down for me. >> Good. But then wonderful intro. No, I would say you're absolutely right. First off, security is a boardroom topic. Uh, audit committees are asking, you know, the CIO so often, you know, reports a report directly, sometimes, often not even to the CIO, to the head of legal or finance and often to the audit. >>So it's a boardroom topic then. You're right, every department right now cares about security because they've got both threat and security of nation state, all malicious, organized crime trying to come at them. But they've also got physical security mind. I mean, listen, growing a virus is a serious threat to our physical security. And we're really concerned about employees and the idea of a cyber security and physical security. We've put at VMware, cybersecurity and, and um, um, physical security. One guy, the CIO. So he actually runs vote. So I think you're absolutely right and if you're a head of HR, you care about your employees. If you're care ahead of communications, you care about your reputation and marketing the same way. If you're a finance, you care about your accounting systems and having all of the it systems that are. So we certainly think that holistic approach does, deserves a different approach to security, which is it can't be silo, silo, silo. >>It has to be intrinsic. And I've talked on your show about why intrinsic and how differentiated that intrinsic security, what I talked about this morning in my keynote. >> Well, and then again, the connect the dots there. It's not just security, it's the applications that are being built on mobile. For instance, I've got a mobile app. I have milliseconds, serious bond to whether something's yes or no. That's the app on mobile. But still the security threat is still over here and I've got the app over here. This is now the reality. And again, AirWatch was a big acquisition that you did. I also had some security. Carbon black was a $2 billion acquisition that VMware made. That's a security practice. How's it all coming together? Can you think of any questions? Blame the VMware because it's not just security, it's what's around it. >> Yeah. I think we began to see over the course of the last several years that there were certain control points and security that could help, you know, bring order to this chaos of 5,000 security vendors. >>They're all legitimate. They're all here at the show. They're good vendors. But you cannot, if you are trying to say healthy, go to a doctor and expect the doctor to tell you, eat 5,000 tablets and sailed. He just is not sustainable. It has to be baked into your diet. You eat your proteins, your vegetables, your fruit, your drink, your water. The same way we believe security needs to become intrinsically deeper parts, the platform. So what were the key platforms and control points? We decided to focus on the network, the endpoint, and you could think of endpoint as to both client and workload identity, cloud analytics. You take a few of those and network. We've been laboring the last seven years to build a definitive networking company and now a networking security company where we can do everything from data center networking, Dell firewalls to load balancing to SDN in this NSX platform. >>You remember where you bought an nice syrup. The industry woke up like what's VM ever doing in networking? We've now built on that 13,000 customers really good growing revenue business in networking and and now doing that working security. That space is fragmented across Cisco, Palo Alto, FIU, NetScaler, checkpoint Riverbed, VMware cleans that up. You get to the end point side. We saw the same thing. You know you had an endpoint management now workspace one the sequel of what AirWatch was, but endpoint security again, fragmented. You had Symantec McAfee, now CrowdStrike, tenable Qualis, you know, I mean just so many fragmented IOM. We felt like we could come in now and clean that up too, so I have to worry about to do >> well basically explaining that, but I want to get now to the next conversation point that I'm interested in operational impact because when you have all these things to operationalize, you saw that with dev ops and cloud now hybrid, you got to operationalize this stuff. >>You guys have been in the operations side of the business for our VMware. That's what you're known for and the developers and now on the horizon I gotta operationalize all the security. What do I do? I'm the CSO. I think it's really important that in understanding operations of the infrastructure, we have that control point called vSphere and we're now going to take carbon black and make it agentless on the silverside workloads, which has never been done before. That's operationalizing it at the infrastructure level. At the end point we're going to unify carbon black and workspace one into a unified agent, never been done before. That's operationalizing it on the client side. And then on the container and the dev ops site, you're going to start bringing security into the container world. We actually happened in our grade point of view in containers. You've seen us do stuff with Tansu and Kubernetes and pivotal. >>Bringing that together and data security is a very logical thing that we will add there. So we have a very good view of where the infrastructure and operations parts that we know well, a vSphere, NSX workspace one containers with 10 Xu, we're going to bring security to all of them and then bake it more and more in so it's not feeling like it's a point tool. The same platform, carbon black will be able to handle the security of all of those use cases. One platform, several use cases. Are you happy with the carbon black acquisition? Listen, you know, you stay humble and hungry. Uh, John for a fundamental reason, I've been involved with number of acquisitions from my SAP VMware days, billion dollar plus. We've done talking to us. The Harvard business review had an article several years ago, which Carney called acquisitions and majority of them fail and they feel not because of process of product they feel because good people leave. >>One of the things that we have as a recipe does acquisition. We applied that to AirWatch, we apply the deny Sera. There is usually some brain trust. You remember in the days of nice area, it was my team Cosato and the case of AirWatch. It was John Marshall and that team. We want to preserve that team to help incubate this and then what breve EV brings a scale, so I'm delighted about Patrick earlier. I want to have him on your show next time because he's now the head of our security business unit. He's culturally a fit for the mr. humble, hungry. He wants to see just, we were billion dollar business now with security across networking endpoint and then he wants to take just he's piece of it, right? The common black piece of it, make it a billion dollar business while the overall security business goes from three to five. >>And I think we're going to count them for many years to come to really be a key part of VMware's fabric, a great leader. So we're successful. If he's successful, what's my job then? He reports to me is to get all the obstacles out of the way. Get every one of my core reps to sell carbon black. Every one of the partners like Dell to sell carbon black. So one of the deals we did within a month is Dell has now announced that their preferred solution on at Dell laptops, this carbon bike, they will work in the past with silence and crowd CrowdStrike. Now it's common black every day laptop now as a default option. That's called blank. So as we do these, John, the way we roll is one on here to basically come in and occupy that acquisition, get the obstacles out of the way, and that let Patrick scaled us the same way. >>Martine Casado or jumbo. So we have a playbook. We're gonna apply that playbook. Stay humble and hungry. And you ask me that question every year. How are we doing a carbon black? I will be saying, I love you putting a check on you. It will be checking in when we've done an AirWatch. What do you think? Pretty good. Very good. I think good. Stayed line to the radar. Kept growing. It's top right. Known every magic quadrant. That business is significant. Bigger than the 100 million while nice here. How do we do a nice hero? NSX? It's evolved quite a bit. It's evolved. So this is back to the point. VMware makes bets. So unlike other acquisitions where they're big numbers, still big numbers, billions or billions, but they're bets. AirWatch was a good bet. Turned out okay. That the betting, you're being conservative today anyway. That's it. You're making now. >>How would you classify those bets? What are the big bets that you're making right now? Listen, >> I think there's, um, a handful of them. I like to think of things as no more than three to five. We're making a big bet. A multi-cloud. Okay. The world is going to be private, public edge. You and us have talked a lot about VMware. AWS expanded now to Azure and others. We've a big future that private cloud, public cloud edge number two, we're making a big bet on AB motorization with the container level 10 zoos. I think number three, we're making a big bet in virtual cloud networking cause we think longterm there's going to be only two networking companies in matter, VMware and Cisco. Number four, we're making a big bet in the digital workspace and build on what we've done with AirWatch and other technologies. Number five, and make it a big bet security. >>So these five we think of what can take the company from 10 to 20 billion. So we, you know, uh, we, we've talked about the $10 billion Mark. Um, and the next big milestone for the company is a 20 billion ball Mark. And you have to ask yourself, can you see this company with these five bets going from where they are about a 10 billion revenue company to 20. Boom. We hope again, >> Dave, a lot that's doing a braking and now he might've already shipped the piece this morning on multi-cloud. Um, he and I were commenting that, well, I said it's the third wave of cloud computing, public cloud, hybrid multi-cloud and hybrids, the first step towards multi-cloud. Everyone kind of knows that. Um, but I want to ask you, because I told Dave and we kind of talked about this is a multi-decade growth opportunity, wealth creation, innovation, growth, new opportunity multicloud for the generation. >>Take the, this industry the next level. How do you see that multicloud wave? Do you agree on the multigenerational and if so, what specifically do you see that unfolding into this? And I'm deeply inspired by what Andy Jassy, Satya Nadella, you know, the past leading up to Thomas Korea and these folks are creating big cloud businesses. Amazon's the biggest, uh, in the iOS pass world. Azure is second, Google is third, and just market shares. These folks collectively are growing, growing really well. In some senses, VM-ware gets to feed off that ecosystem in the public cloud. So we are firm believers in what you're described. Hybrid cloud is the pot to the multicloud. We coined that term hybrid thought. In fact, the first incantation of eco there was called via cloud hybrid service. So we coined the term hybrid cloud, but the world is not multi-cloud. The the, the key though is that I don't think you're gonna walk away from those three clouds I mentioned have deep pockets. >>Then none of them are going away and they're going to compete hard with each other. The market shares may stay the same. Our odd goal is to be a Switzerland player that can help our customers take VM or workloads, optimize them in the private cloud first. Okay? When a bank of America says on their earnings caller, Brian Warren and said, I can run a private cloud better than a public cloud and I can save 2 billion doing that, okay? It turns off any of the banks are actually running on VMware. That's their goal. But there are other companies like Freddie Mac, we're going all in with Amazon. We want to ride the best of both worlds. If you're a private cloud, we're going to make you the most efficient private cloud, VMware software, well public cloud, and going to Amazon like a Freddie Mac will help you ride your apps into that through VMware. >>So sometimes history can be a predictor of future behavior. And just to kind of rewind the computer industry clock, if you looked at mainframe mini-computers, inter networking, internet proprietary network operating systems dominated it, but you saw the shift and it was driven by choice for customers, multiple vendors, interoperability. So to me, I think cloud multicloud is going to come down to the best choice for the workload and then the environment of the business. And that's going to be a spectrum. But the key in that is multi-vendor, multi, a friend choice, multi-vendor, interoperability. This is going to be the next equation in the modern error. It's not gonna look the same as mainframe mini's networking, but it'll create the next Cisco, the create the next new brand that may or may not be out there yet that might be competing with you or you might be that next brand. >>So interoperability, multi-vendor choice has been a theme in open systems for a long time. Your reactions, I think it's absolutely right, John, you're onto something there. Listen, the multicloud world is almost a replay of the multi hardware system world. 20 years ago, if you asked who was a multi hardware player before, it was Dell, HP at the time, IBM, now, Lenovo, EMC, NetApp, so and so forth and Silva storage, networking. The multicloud world today is Amazon, Azure, Google. If you go to China, Alibaba, so on and so forth. A Motiva somebody has to be a Switzerland player that can serve the old hardware economy and the new hardware economy, which is the, which is the cloud and then of course, don't forget the device economy of Apple, Google, Microsoft, there too. I think that if you have some fundamental first principles, you expressed one of them. >>Listen where open source exists, embrace it. That's why we're going big on Kubernetes. If there are multiple clouds, embrace it. Do what's right for the customer, abstract away. That's what virtualization is. Managed common infrastructure across Ahmed, which is what our management principles are, secure things. At the point of every device and every workload. So those are the principles. Now the engineering of it changes. The way in which we're doing virtualization today in 2020 is slightly different from when Diane started the company and around the year 2020 years ago. But the principals are saying, we're just not working just with the hardware vendors working toward the cloud vendors. So using choices where it's at, the choice is what they want. Absolutely, absolutely. And you're right. It's choice because it was the big workloads. We see, for example, Amazon having a headstart in the public cloud markets, but there's some use cases where Azure is applicable. >>Some use his word, Google's applicable, and to us, if the entire world was only one hardware player or only one cloud player, only one device player, you don't need VMware. We thrive in heterogeneity. It's awesome. I love that word. No heterogeneity provides not 3000 vendors. There's almost three, three of every kind, three silver vendors, three storage vendors, three networking vendors, three cloud vendors, three device vendors. We was the middle of all of it. And yeah, there may be other companies who tried to do that too. If they are, we should learn from them, do it better than them. And competition even to us is a good thing. All right. My final question for you is in the, yeah, the Dell technologies family of which VMware is a part of, although big part of it, the crown jewel as we've been calling them the cube, they announced RSA is being sold to a private equity company. >>What's the general reaction amongst VMware folks and the, and the Dell technology family? Good move, no impact. What we support Dell and you know, all the moves that they've made. Um, and from our perspective, you know, if we're not owning it, we're going to partner it. So I see no overlap with RSA. We partner with them. They've got three core pillars, secure ID, net witness and Archer. We partnered with them very well. We have no aspirations to get into those aspects of governance. Risk and compliance or security has been, so it's a partner. So whoever's running it, Rohit runs on very well. He also owns the events conference. We have a great relationship and then we'll keep doing that. Well, we are focused in the areas I described, network, endpoint security. And I think what Michael has done brilliantly through the course of the last few years is set up a hardware and systems company in Dell and allow the software company called Vima to continue to operate. >>And I think, you know, the movement of some of these assets between the companies like pivotal to us and so on and so forth, cleans it up so that now you've got both these companies doing well. Dell has gone public, we Hammer's gone public and he has said on the record, what's good for Dell is good, what's good for VMware and vice versa and good for the customer. And I think the key is there's no visibility on what cloud native looks like. Hybrid, public, multi, multi, not so much. But you get almost, it's an easy bridge to get across and get there. AI, cyber are all big clear trends. They're waves. Sasha. Great. Thank you. Thanks for coming on. Um, your thoughts on the security show here. Uh, what's your, what's your take to, uh, definitive security shows? I hope it stays that way. Even with the change of where RSA is. >>Ownership goes is this conference in black hat and we play in both, uh, Amazon's conference. I was totally starting to, uh, reinforce, reinforce cloud security will show up there too. Uh, but we, we think, listen, there's what, 30,000 people here. So it's a force. It's a little bit like VMworld. We will play here. We'll play a big, we've got, you know, it just so happens because the acquisition happened before we told them, but we have two big presences here. We were at carbon black, um, and it's an important business for us. And I said, like I said, we have $1 billion business and security today by 30,000 customers using us in a security network, endpoints cloud. I want to take that to be a multi, multiple times that size. And I think there's a pot to do that because it's an adjacent us and security. So we have our own kind of selfish motives here in terms of getting more Mindshare and security. >>We did a keynote this morning, which was well received with Southwest airlines. She did a great job. Carrie Miller, she was a fantastic speaker and it was our way of showing in 20 minutes, not just to our point of view, because you don't want to be self serving a practitioner's point of view. And that's what's really important. Well finally on a personal note, um, you know, I always use the term tech athlete, which I think you are one, you really work hard and smart, but I got to get your thoughts. But then I saw you're not on Twitter. I'm on. When IBM announced a new CEO, Arvin, um, fishnet Indian American, another CEO, this is a pattern. We're starting to see Indian American CEOs running cup American companies because this is the leadership and it's really a great thing in my mind, I think is one of the most successful stories of meritocracy of all time. >>You're quick. I'm a big fan of oven, big fan of Shantanu, Sundar Pichai, something that Ellen, many of them are close friends of mine. Uh, many of them have grown up in Southern India. We're a different ages. Some of them are older than me and in many cases, you know, we were falling behind other great players like Vino Cosla who came even 10 to 15 years prior. And you know, it's hard for an immigrant in this country. You know, um, when I first got here and I came as an immigrant to Dartmouth college, there may have been five or 10 Brown skin people in the town of Hanover, New Hampshire. I don't know if you've been to New Hampshire. I've been there, there's not many at that time. And then the late 1980s, now of course, there's much more, uh, so, you know, uh, we stay humble and hungry. >>There's a part of our culture in India that's really valued education and hard work and people like Arvin and some of these other people are products. I look up to them, the things I learned from them. And um, you know, it's true of India. It's a really good thing to see these people be successful at name brand American companies, whether it's IBM or Microsoft or Google or Adobe or MasterCard. So we're, we're, I'm in that fan club and there's a lot I learned from that. I just love being around people who love entrepreneurship, love innovation, love technology, and work hard. So congratulations. Thank you so much for your success. Great to see you again soon as you put in the COO of VM-ware here on the ground floor here at RSA conference at Moscone, sharing his insight into the security practice that is now carbon black and VMware. All the good things that are going on there. Thanks for watching.

we've made just tremendous progress over the last several years with Microsoft you know started back in 2015 where we you know cross certified hypervisors and that's kind of a basic you know let's work together over the last couple years it's truly blossomed into a really good partnership where you know I think they've and we both gotten over this you know Linux vs. Windows thing and you know I said we've gotten over I think we both recognized you know we need to serve our customers in the best possible way and that clearly means is two of the largest infrastructure software providers working closely together and what's been interesting as we've gone forward we find more and more common ground about how we can better serve our customers whether that's you know what might sound mundane that's a big deal sequel server on realm and setting benchmarks around that or dotnet running on our platforms now all the way to really being able to deliver a hybrid cloud with a seamless experience with openshift from you know on premise - - to Azure and I mean having to H Bank on States twenty five thousand containers running in production moving back and forth - sure and I think it's more building on what I talked to you about a year ago if I remember last May May of 2018 in San Francisco so I was exposing very heavily look the world's going to move towards containers the world is already embraced Linux this is the time to have a new architecture that enables hybrid much along the lines that gem and all of the clients as well as Ginni and Sasha we're talking about on stage yesterday so you put all that together and you say that is what we mentioned last year and we were clear that is where the world is going to go nice step forward a few months from there into October of 2018 and on 29th of October we announced that IBM intends to acquire Red Hat so then you say wow we put actually our money where amount was we were talking about the strategy we were talking about Linux containers openshift the partnership we announced last May was IBM software products together with OpenShift that is we already believed in that but now this allows us coming together it's it's more like a marriage then sort of loose partners passing each other in the middle of the night we are so excited and you know having put in all the time part of this is representing all the work the team has done and the communities have done when you think about all the work that goes into a Linux distribution it is everybody it's the community's it's the partners so we released the Red Hat Enterprise Linux eight beta in November mid-november we've had 40,000 downloads of that beta since November people who have provided feedback and comments suggestions all of that fed into what we've released today as the Red Hat Enterprise Linux eight general availability so it's a big day and part of it is we're just so proud of how we've done it and what we've done and we've really redefined what are not the value of an operating system with Red Hat Enterprise limits eight tech transformation started about ten years ago bean CI over the company about ten years and frankly the first five years were just fixing the basics so getting in place what we'd call world-class systems doing a bunch of stuff on resilience and security and all of that kind of stuff and the other thing and this is the dramatic change you know ten years ago when I joined the company we were 85% outsource to managed service vendors so I had technology people that basically were signing contractors and managing service agreements if we didn't have technology DNA and so you know over those five years and the full ten years actually we've been to not about just in sourcing and rebuilding our technical muscle if you like so now we're we've gone from 85% outsource to 90% in sourced so we run build and manage our own we're at word now a technology company yeah and and five years ago we had a real big shift and you know we were we were closest to what was going on in China and so probably saw this before many many of the other banks saw this around the world of what Alibaba was doing with ant financial and $0.10 and this whole just just complete disruption of how customers interact with the banking industry so we got an early lead on this digital transformation and really for the last five six years would be doubling down on building a pure digital offering and we see ourselves as a technology company providing banking services not as a bank with some technology department in the backend open source is the innovation model going forward period end of story full stop and I think as I said in my keynote yesterday you know leading up to the the biggest acquisition ever for a software company not an open source software coming a software company that happened to be an open source software company I don't think there's any doubt that that open source has one here here today it and it's because of the pace of innovation yeah our goal is to make sure we're supporting those upstream communities so all of all of Red Hat software is open source and we work with a whole community of individuals and companies and the upstream open source software and we want to make sure that we're not just contributing features that we want but that we're a good player or that we're helping to make sure those communities are healthy and so for a number of the projects that were involved in we actually assigned a full-time Community Manager a community lead to help make sure that project is healthy so we have someone on everything from Saif and Gloucester to fedora to kubernetes I'm just making sure the community does well yeah we do a little bit of both and so a lot of it is responding to the community and that's one of the areas that Red Hat is really excelled as taking what's popular what's working upstream and helping moving along make it a stable product or stable solution that developers can use but we also have a certain agenda or certain platforms that we want to present so we start from like various runtimes to actually contain our platforms and so we want to have to kind of drive some of that initiatives on our own to help drive fill that need because we hear it from customers a lot it's like things are doing are great but like there's all these projects that need to come together sort as a product or unified experience and so we spend a lot of our time trying to bring those things together as a way to help developers do those different tasks and also focus across like not just the Java runtimes which we hit a lot of Java so you might have baked security in right I mean we have a secure supply chain and you talk about difficult things for la right every package that we that comes in that is we totally refresh everything from upstream but when they come in we have to inspect all the crypto we have to run them through security scans vulnerability scanners we've got three different vulnerability scanners that we're using we run them through penetration testing so there's a huge amount of work that just comes just to inherit all that from the upstream but in addition to that we've put a lot of work into making sure that well our crypto has to be Fitz certified right which means you've got to meet standards we also have work that's gone in to make sure that you can enable a security policy consistently across the system so that no application that you load on can violate your security policy we've got enough tables in their new firewalling Network bound disk encryption that actually it kind of ties in with a lot of the system management work that we've done so a thing that I think differentiates rl8 is we put a lot of focus on making it easy to use on day one and easy to manage day two well we're not getting there were there what that allows us to do is to take the reference designs that we have and the testing that we've we've previously validated with Intel and Red Hat and be able to snap pieces together so it's just a matter of what's different and unique for the client in the client situation and their growth pattern what's great about trueskill is that in this model is that we can predictably analyze or consumption forward based on the business growth so for example if you're using open shipped and you start with a small cluster for say one or two lines of business as they adopt DevOps methodologies going from either waterfall or agile we can we can predictably analyze the consumption forward that they're going to need so they can plan years in advance as they progress and as such the other snap-ins say uh storage that they're going to need for data and motion or data at rest so it's it's actually smarter and what that ends up doing is obviously saving the money but it saves some time you know typical model is going back to IT and saying we need these servers we need the storage and the software and bolt it all together and the IT guys are you know hair on fire running around already so so they can you know as long as IT approves it they can sort of bypass that that big heavy lift we're trying to do is create role models for women and girls who would like to participate in technology but perhaps are not sure that that's the way that they can go and they don't see people that are like them so they're less tendency to join into this type of communities so with the community award winner we're looking at a professional who's been contributing to open source for a period of time and with our academic winner we're looking to spur more people who are in university to think about it and of course the big idea is you'll all be looking at these women as people that will inspire you to potentially do more things with open source and more things with technology we've been hearing for many many years that we definitely need to have more gender diversity in tech in general in an open source and Red Hat is kind of uniquely situated to focus on the open source community and so with our role is the open source leader we really feel like we need to make that commitment and to be able to foster that right so so Sierra's a supercomputer and what's unique about these systems is that we're solving there's lots of systems that network together maybe are bigger a number of servers than us but we're doing scientific simulation and that kind of computing requires a level of parallelism and it's very tightly coupled so all the servers are running a piece of the problem they all have to sort of operate together if any one of them is running slow it makes the whole thing go slow so it's really this tightly coupled nature of supercomputers that make things really challenging you know we talked about performance if if one server is just running slow for some reason you know everything else is going to be affected by that so we really do care about performance and we really do care about just every little piece of the hardware you know performing as it should so we thought okay let's take all of these best practices that we have and build more or less a methodology around it how to make this actually works like how to do this we really broke it down into like individual sprints do dissin sprint one the distance sprint do to really have the results within three months six months 12 months whatever the places that you want to run on and then we realize talking to customers this by itself isn't still enough so that's why we started to open up this to an entire ecosystem so we brought ecosystem partners along like working closely with red a lot of other companies but also system integrators who can help us we speak up projects because we as a company are software companies we're not a services or consulting company and we do support customers and some of those engagement but if you think of like a really fortune 500 company that's a multi-year project it will keep hundreds of busy people busy so to recap like built-in methodology we built the ecosystem to deliver on that promise at scale and now the last step was we as we were doing this we also built like a reference architecture for it and was just in an internal IDE so how do we like structure this bill that reference architecture and then realize okay I think it's kind of like super helpful for customers so that this way we then decided to open source this reference architecture is fabric as well to like the entire software community so they can also use it so technically these three pieces it's the methodology it's the ecosystem and it's like the reference architecture that you can work with to help you achieve you [Music]

>> live from Las Vegas. It's the queue covering del Technologies. World twenty nineteen, brought to you by Del Technologies and its ecosystem partners. >> Welcome back to the cubes. Live coverage here, Adele. Technology rule in Las Vegas. I'm John for Developed, a special guest. Michael Dell, Chairman, CEO, Del Technologies Cube. Alumni. Great to see you again. Yearly pilgrimage. People can come on the Cube. Good to see you again. Thanks. May always >> Great to be with you guys. >> All right, So I gotta ask you because, you know, Dave and I were talking on yesterday's kickoff on our intro about the conversation we had. I think six years ago we saw you standing there in Austin, but still a public company didn't go private yet. And then the series of moves going private and we're like, That's great. Get behind the curtain. Get things reset. Look at the cash flows. Looking good. You had the clear plan as the founder and CEO is kind of a new kind of reset, if you will. And then up to now the execution in just the series of moves. When you look back now where you are today, where you were then how do you feel? What's absurd? What did you learn? What's some of the highlights for you? >> Well, look, we feel great, You know, our business is really grown tremendously. It's all the things we've been doing has been resonating with customers have been ableto, I would say, restored the origins of the entrepreneurial dream and success of the company and reintroduce, uh, innovation and risk taking into, ah, now ninety one billion dollars company growing in double digits last year and certainly the set of capabilities. That way, we've been able to build organically and in organically on DH with set of alliances. We have the trust that customers have given us, you know, super happy about the position that we're in and the opportunities going forward. As I've said, you know, a zay said Mikey. No, yesterday. I think all this is really just the pregame show. Tow what's ahead for our industry and for the role that technology is going to play in the world. >> And the role of data you mentioned also used to quote you Yes, that you said data a CZ the life, blood of digital transformation of the heartbeat, visual transformation and It's also revitalizing all the other components of what looked like a consolidated market is now actually being reborn the PC, technology, infrastructure, fabrics and other software opportunity. So Data has kind of brought in a whole nother level of kind of revitalisation and the industry, which is actually causing more investment in what looked like older category of you know it and computers whatnot. This's been a big, big tailwind for you guys. >> Well, data has always been at the centre of you know how the technology industry works and now we just have a tsunami explosion of data. And of course, now we have this new computer science that allows us Teo reason over the data in real time and create much better results in outcomes and that combined with the computing power, all organizations have to reimagine themselves, given all these technologies and certainly the infrastructure requirements in terms of the network, you know, the storage, that computer bill out of the edge, tons of new requirements, and we're super well positioned to go address all that. >> I enjoyed your keynote, Michael. So I thought it was excellent. One of your better ones and you painted a picture of tech for good. Uh, really life changing things that you guys and your customers are doing. You gave some examples that be an example of example was great Draper Labs. But you also paid a picture. You need a platform for this digital transformation. We've seen the numbers. Eighty percent of the workloads are still on Prem. What do you think that looks like ten years down the road? What do you What's your vision say? >> Well, the surprise outcome ten years from now is they'LL be something much bigger than the private cloud and Public Cloud. It's the edge and actually think that would be way more computer data on the edge in ten years than any of the, you know, derivatives of cloud that we want to talk about. So that's a ten year prediction. Yeah, that's that's That's kind of what I see. And maybe maybe nobody's predicting that this yet, But, you know, let's come back in ten years and see what it looks like. >> So I like to do that hybrid hybrid. Klaus been around for a while, but talked about. It's been kind of operating, Ma. We see that multi cloud is really kind of surged in importance in conversations because I think people wake up and go. Hey, I got multiple clouds. I got azure over here for ofthis three sixty five. I got some Amazon over here. I got some home grown stuff over here. I got a data center so that people kind of generally Khun, Khun, relate to the reality of multi cloud hybrid. Live it more of a different kind of twist, but certainly relevant. But multi cloud has got everyone's attention and you guys launched Del Cloud. Is that a multi cloud, or is that a cloud to multiple clouds? Explain your view on that and where this goes. >> So really, what we're doing is we're bringing to customers. All the resource is they need to operate in the hybrid, multi cloud world. And first, you have to recognize that the workloads want to move around and to say that they're all going to be here, or there is in some sense, missing the point because they're going to move back and forth. And, uh, you know, you've got regulation cost security performance late and see all sorts of new requirements that air coming at you and they're not going to just sit, sit in one place. Now, as you know, with via Work Cloud Foundation, we have the ability to move these workloads seamlessly across. Now, essentially all the public clouds, right. Forty, two hundred partners out there infrastructure on premise built and tuned specifically for the VM wear platform and empowered also for the edge and a love. This together is the Del Technologies Cloud. We have obviously great, uh, capabilities from our Delhi emcee infrastructure solutions and all the great innovations that Veum where coming together >> scale has been a topic. We talked on the Cube many years. We saw Amazon get scale with public cloud scales of competitive advantage is now becoming kind of table stakes both for customers trying to figure out how to operate a digital scale, speed a life. You guys have a scale level now that's pretty impressive. What you guys done with the puzzle pieces, You cut puzzle pieces, you know, cos capabilities now across the board, as you guys look at scale is a competitive advantage, which it is, and we talked about this before. You now have to integrate seamlessly in these pieces. So as you compose as customers compose the variety of capabilities. It's gotta be frictionless. That's a goal. How do you look at that? How do you talk to your team's about this on DH? What's your view on scale? And is this something you guys talk about inside the company? >> Well, inside the business, you know, the first priority was to get each of the individual pieces working well. But then we saw that the real opportunity was in the scenes on how we could more deeply integrate all the aspects of what we're doing together. And you saw that on stage, you know, in vivid form yesterday with Pat and Jeff and Sasha and even more today again. And there's more to do. There's, although there's always more to do. Were working on how we build a gate, a platform bringing together all of our capabilities with Bhumi and data protection on DH bm wear, and this is all going to be super important way. Enter this A I enabled age of the future. >> Michael, you got a track record of creating shareholder value. We're big fans of, you know, we'LL have CNBC on in the office and Michael's on everybody coming across, right? Davos? Picky, Quick. We're also big fans have asked you to sort of knocked down to three criticisms. And sure, it was really a conversation about stock price, you know? And you Did you knock down the debt structure? The low margin business, the ownership structure, its center. But you never came backto stock price, so it looks like a couple of ways to invest. Now VM wear directly. Also looks like Veum where you could you could buy cheaply through Del What your thoughts on on that? You know where Dell sits in the market today? Its value. >> I think. You know, investors are increasingly understanding that we've created an incredible business here and certainly, you know, if we look at the additional coverage that we have and you know, they're they're a CZ their understanding, the business, you know, some of the analysts are starting to say, Hey, this doesn't really feel like a conglomerate. Direct quote. Okay. And, uh, if you think about what we demonstrated today, yesterday and we'LL demonstrate the future, you know, we're not like Berkshire Hathaway or, uh you know, uh, this is not a railroad that owns a chain of restaurants. This is one integrated business that fits together incredibly well, and you know it's generating substantial cash flows. And, you know, I think investors overtime are figuring out value. That's intrinsic. Teo, the overall Del Technologies family now wave Got lots of ways to invest, right? Get, Be aware. SecureWorks pivotal. And, of course, the overall Del Technologies. >> Yeah, and just a follow up on that. I mean, I've observed on the margin side I mean, when del went private, it was around nineteen percent gross margins. Now you're in gross margin heaven, you know, absorbing the emcee. And it seems to be headed in the right right direction. So it's a nice mix >> know, in our in our cloud, an infrastructure group, almost ninety percent of the engineers are software engineers. And so you think aboutthe innovations you saw in states today with power Macs and Unity, X T and our power protect platform. You know, basically all software running on power power it surfers and platforms that we've created. >> What's on your plate now, Michael? As you come out, come out of Del Technologies world. You got business to take care of what your goals what's on your plate. What's your object? Is what you trying to accomplish in the next year? >> Well, certainly continuing to execute for our customers growing faster than the industry. You know, maintaining and improving our customer NPS levels and keeping the innovation engine cranked up on high. You saw a lot today on DH yesterday. Stay tuned, Veum. World's coming in in August and they'LL be much, much more way Continue toe innovate together Lucy with Veum where so we've got we've got lots more in the cube >> and you got cash will come in, which means your suppliers to a lot of customers Congratulations. I want to get your final thought on my final question on the Tech for good One of the things I saw yesterday on the Kino that you gave was that popped out wass. It wasn't about the speeds and feeds around, you know, the performances get great performance on the tech side. You gotta be, you know, the infrastructure level Scott be performing, but it's about solving problems. And I think this is a direction that you're taking the company saying there's outcomes out there. The problems that can be solved with tech We're hearing a whole tech for bad narrative in the media these days. Tax evil text. Bad. But there are awesome spots where technology is creating great things for society. This is a theme for you. Can you share? Why that focus? And when some of the highlights >> it's right. I mean, if you if you step back from the what happened in the last twenty four hours, twenty four days and even twenty four months, you start looking at, you know, twenty four years you start to see is thie. Outcomes for humanity have gotten dramatically better, and technologies played an enormous role in that. I'm massively optimistic that in the next three decades they're going to be really miracles. In terms of how do you dress things like deafness and blindness and paralysis with a I and embedded technology inside the body. The, you know, things were able to do now with sequencing the genome and using all this data to create personalized medicine solutions. Yes, technology can be used for bad, but the vast majority of it is used for good by people that have good in their hearts. Right. And and, uh, you know, uh, it goes beyond making great businesses and making people more productive. It's actually changing lives and very positive ways, >> while the other big narrative in the pressure here is automation and taking away jobs. And it's a serious concern. However, you know there's no reason to protect the past from from the future and this great opportunities ahead education and someone, even you and Susan but big supporters of that, obviously. So we're optimistic for the future. I know I know you are. The best is yet to come. As I'd like to say >> Absolutely, we agree. >> Once an entrepreneur, always an entrepreneur, you great entrepreneurial track record you celebrate thirty five years from the original dorm room. So some of your Facebook posts now here he took a business that you knew T mature couple players. This is a trend we're seeing. Zoom communication just went public. They took video streaming and holding meetings and completely when cloud base and disrupted it. You saw >> runs on Dell EMC by the way >> runs on Dell, did not know that it's only a lot of Michael great, but this is an entre. I want to get your advice to other articles that might be watching us because you now, with the technology with data and cloud and tech, you, Khun, go into existing markets that don't look good on paper that people might dismiss as that's over. That's a mature market You've certainly taken Del Technology's got all the pieces and are executing at a home of the level. Zoom did it for video on the cloud. There are zillions of these opportunities out there that entrepreneurs. So the advice don't be discouraged by what looks like a big fat market. So your what's your advice?  >> and I I feel something is coming. That's quite significant. And right now you mentioned this new wave of companies that air coming public and they were built on a foundation of technology infrastructure capabilities. You know that was established, Let's say, ten years ago. Okay, well, right now we're just at the kind of beginning of five G and A II technology, and all these embedded sensors and low latent see communications, and there will be a whole another wave of cos I suspect many, many more across all industries that, you know, just unlock all kinds of new capabilities and an opportunity. So I'm super excited about that. Andi, I think I think it's it's just going to get more interesting. >> It's amazing to think of the tools you had thirty five years ago, when you started and how you've transformed. So congratulations. >> Thank you. Spend the time again. Thanks for having us again here. Tenth year, Del Technologies. Well, thanks for having us. And great to have a conversation. >> Thank you. And the rest of the cube team for all your great coverage. >> Thank you very much. Michael Dell, Chairman, CEO, Dell Technology here. David Velante myself, John Furrier. Stay tuned for more day to coverage. We got two sets here. It's a cube canon of content blown out. The content here, Adele Technology, world Check out Dell's hashtag del tech world for all the highlights will be right back after this short break.

(funky music) >> From our studios in the heart of Silicon Valley, Palo Alto, California, this is a CUBE conversation. >> Hi, I'm Peter Burress, and welcome to another CUBE conversation from our beautiful studios in wonderful Palo Alto, California. Enterprises have always struggled with how they're going to add more end points into their networks. More users, more devices, more machines, they need better speeds, lower latencies, greater security. How are they going to do it? Well, we've got a new set of standards coming along within the wifi world as well within the cellular world, to provide those greater densities, lower latencies, higher performance. Wifi Six is what we talk about within kind of the extension of the 802.11 family of protocols, but Wifi Six, like every other significant transformation has required that enterprises think differently about certain attributes of networking. So to have that conversation, we got Sachin Gupta who's a senior vice president of Cisco here, Sachin, welcome to theCUBE. >> Thanks Peter, very excited to be here. >> Alright, look, so I'm a CIO, and I am working with my team to incorporate these new technologies that are going to improve the quality of my endpoint services, and I'm looking at Wifi Six. What am I mainly worried about as I think about adopting these new technologies? >> So just before we just get into adopting of the new technologies, why are you going after Wi-Fi 6, like what's the reason for the CIO? And quite simply it's, all of the new use cases that are coming on, like everything, all the IoT endpoints have to connect securely, all the bandwidth hungry end users, and the immersive experiences I'm looking to enable, it could be augmented reality, it could be virtual reality, all those are driving a need for me to rethink access, and rethink the network overall. And Wi-fi 6 is one critical component of that. Wi-fi 6 promises four times the capacity, lower latency, a greater range, so the things you talked about in your set-up. So it's a wonderful technology to start addressing some of those problems, but in of it's own it's not sufficient. You got to go well beyond the standard in order to address the CIO problem. >> Okay, so specifically, so think about some of the adoption problems. I got the use cases nailed down, how am I thinking about where things are going to go? Am I going to have to lay out the network differently? What kinds of practical things do I have to start thinking about? >> Well first of all, you have to think about why are you moving, where are you moving with Wi-fi 6. So again, capacity, lower latency, better battery life, the new use cases it enables. After that you need to make sure that whatever you're going to connect, will interoperate. Right? So look, sometimes a standard comes out and it can take a few years before the endpoints and the infrastructure actually get the maximum capability from the new standard. And so we worked proactively with the likes of Samsung, with the likes of Intel, to make sure those endpoints, which any of the new Samsung Galaxy S10, already supports Wi-fi 6. Interaccess points work together to give you the best experience possible. So that's sort of step one. But there's many other things we need to think through. We're also thinking about the problem of just onboarding onto Wi-fi. You know the experience to onboard onto cellular, right? >> Oh, sure. >> You get off airplane mode >> And it works. >> It just works, you're on. What's the experience like on Wifi? >> Well it's certainly not just getting a message from my local carrier that I'm now roaming. You got to get on, yeah it's a lot more involved, you got to authenticate, exactly. >> Give me your phone number, give me your room number, I'll text you something, get on to the It's cumbersome, okay? And we want to make Wifi onboarding to something we call open roaming. Open roaming is a Cisco project, it's a consortium we've set up. That takes all the venue providers and the identity providers, brings them together. So that when you go round, and you roam with Wifi, you onboard the network just like you onboard with cellular. >> So get essentially the same experience you get in the cellular world. >> Same experience. It makes it easy for you to get connected. So those are some of the basic things, but you got to go beyond that then. Now you have to worry about, okay, what do those endpoints require, alright? Well, first of all you need to recognize what the endpoint is. Is this a light bulb, or is it a heart-rate monitor, is it a tablet of some sort, what is actually connecting? So for device recognition, and to understand the experience you're getting, I need virtual analytics. And that's something the infrastructure now needs to provide. So we for the first time now, we've embedded our own ACIG, our own silicon inside the access point. So that we can get visibility from layer one to seven. And now we can pinpoint, what is the device, is it behaving in a compliant way, and how do I deliver the right experience for it. So these are some of things to think about as you move, it's a yes I want Wi-fi 6, but again tying in back to the problem you're looking to solve, how does the entire solution address your problem. >> Alright so we've identified some of the issues that have to be addressed here, and Wifi Six is here. You said the Galaxy S10 already supports it. >> Our access points are shipping, yes. >> So talk to me about the role out of some of these new technologies, these new devices from Cisco, and how customers are going to have to think a little bit differently as they start to plan out their new network structure. >> That's a great question. So I think it's not about hey, I'm just going to roll out new AP's. You should really rethink networking. What am I trying to provide here? And that's why we came out with an architectural approach across the board which is intent based networking. And what we're really talking about there is how do you automate all of the things that IT needs to do, to deliver the security and experience for all of those users and things. How do you get the data, the power of data, the analytics out? And how do you deliver security and policy. >> But it's in the context of the application and the work that's being performed. >> Yes, it's the users and devices and the applications and data. What are you trying to achieve? That's what intent based networking is all about. And so, I love how your asking the question because if you think about the wireless AP's, we only talk about the top already with the endpoint, right? But then I think about the switching architecture, are you segmenting all of that traffic? Is it fully automated? Do you have an identity and policy engine? Can I take the location data that's coming out? Cause remember these APs now are multilingual. They speak BLE, they speak Zigbee and Thread, they're also Wi-fi 6. So how do I take the location data and deliver new business outcomes? How can I tell you that the wheelchair has left the premises? How can I tell you how many people walked in your store, verus walked outside it? How do I get you better asset utilization? Those outcomes are provided at the software step at the top. So you should really be thinking about what am I trying to do for my business, and what architectural approach allows me to deliver those outcomes that I'm looking for. And yes, Wi-fi 6 APs are one critical component there, but you should think about the entire solution though. >> So we got new access points that are Wifi Six enabled ready to go, how far back does this change go into the network? >> So the Wi-fi 6 APs, the beauty of these Wi-fi standards is they're backward compatible. So you can take all kinds of older endpoints, multiple generations, and get them to work in a Wi-fi 6 new environment. So that's nice because it's not a rip and replace of all your clients, when you put the new APs in, they're backward compatible, that's always the case. And a lot of the new software stack and the technology that I talked about with intent based networking, works with at least the two previous generations as well. So if you want some of that telemetry and analytics and security, you can start getting that with some of the APs you may already have, and then when you bring in Wi-fi 6, it's sort of purpose built for that architecture. >> Alright, so we've talked a lot about the use cases of the business side, let's spend a little bit of time describing the fact that you've got the sidecar co processor for analytics inside the APs. How is that going to change the work of IT, the work of network management and administration and security? >> That's a great one So, I'll give you one example of what that does. Today, if you want to go troubleshoot a wireless issue, you're literally walking around with a sensor acting like a client to go figure out what the behavior is, what's going on, how do I figure out what the interference is, why is the experience bad, right? Can take you hours, weeks, days, it's very costly. These new APs, and with our solution with W-fi 6, first of all, I get data with my relationship with Apple from the endpoint. So I get the view from a real client. Then on the access point itself, with that co processor, I can get layer one to seven data and packet captures to see did you fail during authentication, was there some sort of RF issue that's happening, what exactly is happening that's interfering with what's going on? Or, maybe the problem is not even there, it's somewhere else in the network. And the beauty of our Cisco DNA Center solution, which is our controller in intent based networking, is we see end to end. We see the entire network and we can help you pinpoint where that issue is and save a whole bunch of money you'd spend troubleshooting, to deliver the right experience. >> But it sounds as though some of the, historically, some of the analytics associated with network administration was very focused on the device. Intent based network is intended to focus on the application and service that's being provided, but the analytics didn't follow. So know what you're saying is we're going to follow the analytics so that the applications, the services become primary citizens within the network. >> That's exactly right So you have to be able to look at the client holistic view, the application performance holistic view, and the performance of each network element, and that's what the co processor that we talked about helps. Now another thing we did is, that portfolio now, on the enterprise side, we now run the same operating system that also helps simplify for IT. The entire access network with the Catalyst 9000 series, the new access points are called the Catalyst 9100, and we're making it part of one brand and one family, because it's one OS, one programmable architecture, one operational environment if you will, that simplifies the job of IT significantly as well, and then we're also introducing obviously with Wifi Six, our cloud managed Meraki access points to support those deployments as well. >> Alright so one more question on this and then I want to talk about something else in a second. But the beauty, or the essential feature of networking has to be a degree of openness. So new access points can talk to each other, new devices can talk to each other, et cetera. These are new technologies as you said they're going to roll out and diffuse, hopefully very very rapidly, but there will be both enterprise, but also some other network supplier issues. How is Cisco ensuring that your leadership and your thought leadership but also your engineering leadership gets into those other organizations at an appropriate rate so this entire industry can adopt and change and introduce these new kinds of capabilities. >> So I talked about that new family of the Catalyst 9000 series. Let me start there. So all the protocols we support are open interoperable so you can have my switch somebody else's AP, somebody else's AP my switch, all those combinations work. It supports net config open API's programmable models. We expose those through a Cisco dev net. So we have the largest developer community on top of sort of a networking infrastructure where you can write applications that can automate or can get data >> Or services? >> Or deploy services in a very open way. And then we do the same thing at our controller layer. On Cisco DNA Center, fully open so you can have partners ecosystem delivering services and applications on top of the network, on top of that controller. So we think about openness from every angle, and that's how you have to be in a networking world, right? I mean you need to be able to connect to anything. >> Right. Every significant change in networking, someone always presumed it was going to lead to various behavior by the leader to try to somehow close it down. You're saying that's not what's happening here. We're trying to dramatically extend the benefits and capabilities of networking because those enterprises need new use cases. >> But we are saying though, that if you buy that campus architecture, access architecture through Cisco, you're going to get a degree of consistency and automation and analytics and security that's unmatched. So you might as well go, but if you want to compose that with different components, that's absolutely doable. >> Alright, so one last question. The historical norm has been I get a cell service and I get Wifi. Cell had certain positive benefits, and Wifi had other positive benefits. We're talking about Wifi Six, but also we got to talk about 5G. How are the two of them going to work together in your estimation? >> Look, from a wireless standpoint, the problems that you're trying to solve are the same, right? I need more capacity, I need lower latency, more deterministic, better battery life, they're the same. So you need to solve those when you're in an SP outdoor ubiquitous environment, or whether your sort of indoor, where you have predominantly Wifi and that's where most of your traffic flows. So Wifi Six and 5G, it's a beautiful thing that they're both trying to allow you to be in this wireless first, cloud driven world, where most of your apps and data sit in the cloud, and where your experience is really optimized by the data and telemetry that's coming out of the infrastructure. So for me, it's not an or question, it's Wifi Six and 5G that allow you to start solving that problem. >> So everything just as we have today just more, better, faster, lower power. >> Yes, can I add one more thing? >> Of course! >> I just kind of need to do this, okay? So look, when you think about the wireless infrastructure and chaining that out, I talked about how it effects the rest of the network, right? So you do need to think about upgrading your switching infrastructure, we call it being wired for wireless, okay? So with that, we also introduced a new product called the Catalyst 9600. That's a modular core switch, so you're like why are you bringing this up Sasha? >> No, I know why you're bringing it up. >> After 20 years, we are providing the next generation of the Cat 6k, Cat 6k is iconic, it's the foundation of tens of thousands of mission critical networks in the world. This is next-gen, it's more than 10x the capacity, if you have all these endpoints and access points that have more capacity, you need to think about a switch that's bigger factor. >> Scales! >> But fits into intent based networking fully programmable the same way. Just want to do a shout-out for, look we've talked about every aspect of this. APs, switches, identity, everything. >> We're offering, Cisco is offering and the enterprises are going to adopt new classes of network technology at the endpoints, faster, better, but that's going to lead to new use cases, new services, and it's just going to drive that much more complexity and routing and switching and patching thorough the network, you got to be able to scale. >> Right, you have to think about all the components. >> Absolutely. Sachin Gupta is the senior vice president of Cisco, we've been talking about how to think through Wifi Six upgrades. Thank you very much for being on the CUBE. >> Thank you, Peter. >> And once again I'm Peter Burress, and this has been a CUBE conversation. Until next time. (funky music)

(upbeat dance music) >> Live from Barcelona, Spain, it's the Cube. Covering Cisco Live! Europe. Brought to you by Cisco and it's ecosystem partners. >> Hello everyone, welcome back to the Cubes live coverage day two of three days of wall to wall coverage here in Europe, in Barcelona, Spain for Cisco Live! 2019. I'm John Ferrier with Dave Vellante, Stu Miniman hosting a great load of interviews this week here for Cisco Live! Guys, kicking off day two. Day one was all the big announcements. Cisco putting in all the announcements really setting it in and the messaging coming together. The product portfolios filling out. Clearly, Cisco is adopting a path to the cloud. Taking their data centered business, securing that, bringing that data center into the cloud, kind of hybrid, Multicloud. Big message around Multicloud and then under the hood, data center. Traffic patterns are changing, it's not a rip and replace, it's an extension to the environment. Cisco's intent based networking plus cloud plus cloud center management. Lot of stuff. We did discuss that yesterday. But I want to get your take. Is Cisco's positioning viable and what does it mean vis a vis the competition because Cisco is a blue chip tech player. Certainly have zillions of customers. Very relevant. This is a huge impact, how they position themselves, Stu. >> So John, you remember a few years ago we were saying "Hyper scale clouds, the public cloud providers are going to take over the world" and boy, Cisco's in trouble because if a third or half of the market all the sudden evaporates from them, those enterprise buyers of switches and routers and everything else like that, Cisco is doomed. Well, you know, we listened to the keynote yesterday and Cisco's talking about all of their solutions anywhere and when you go through the ecosystem of public cloud, hybrid cloud, multicloud. Say does Cisco have a play there? And the answer is absolutely. It's not just the AppD acquisition, which has software and AWS but SD Wan is going to be a critical component to get from my data centers to the public clouds. Cisco has software and solutions and consulting to help customers in all of these environments so we always know that there's partnerships and there's competition. There's a lot of players out there but it was good to see them talking a lot about what they are doing with Kubernetes, with Amazon because you can't talk about cloud, either public cloud or multicloud without first talking about Amazon. Last year, we were a little critical, John, and said "Okay, Google's great but Google's number three or four." So, you got to be there with Amazon, you got to be there with Microsoft, and ServiceField. We've already interviewed a couple of service providers, always been a strength for Cisco to be in there and so good positioning. We talked yesterday a bunch about the bridge to possible and where to go but the more I think about that, anywhere is what Cisco's branded everything and that's when you talk Multicloud. Multicloud really a whole bunch of clouds and a whole bunch of things and therefore, I need a player that's going to help give me coverage in all of these environments and Cisco is making a strong case to be that. >> And Dave so Stu's right. A couple years ago, we were critical of Cisco and I think rightfully so. I think the whole industry looked at them as not in the middle of the fairway and certainly the recovery shot for Cisco is really strong because a lot's changed. Go back a few years. They didn't have a good ecosystem for developers. They didn't have a good open source position. They kind of were, do I go up the stack or not but they had the core networking so a lot of people were saying, "Hey, if Cisco doesn't make a move, they're doomed." We were one of them so a lot's changed. You're seeing the adoption of microservices, containers, APIs, the growth of DevNet that Susie Wee has initiated. It's clear proof, in my opinion. Then you got the data center guys saying, "Hey, we can take networking and take this and enable cloud." So Cisco, making good moves, put themselves in pole position for growth. >> Well I think the first point is, if you roll back 10 years ago, it was not just Cisco we were critical of, it was clear to us that cloud was where all the growth was and if you didn't have a public cloud, you were going to be in trouble unless you developed a cloud strategy. So, certainly Cisco, Dell EMC, now you know Dell MC, Vmware, none of them really owned a public cloud strategy and five years ago, they had to figure it out. Well, they figured out that actually managing Multiclouds is a great opportunity and so Cisco's got a viable strategy. Networks between clouds are going to flatten, they're going to need management. It's specifically, as it relates to Cisco and maybe their competition, they have to position themselves as our Multicloud management system is higher performance, and more secure than the competition. That's what they have to sell their customers on and the second piece of that is they get a transition from selling ports to selling software. And they're making that transition so, I like their strategy by the way, I also like Vmware's strategy. They capitulated to AWS, and now they're tight with AWS. IBM went out and paid two billion dollars for software so they've got a cloud strategy. Oracle's got a cloud strategy, Microsoft's got a great cloud strategy so if you go through and tick off-- >> They have clouds so let's just understand something. There is clouds and then cloud strategies so Amazon. >> The $34 billion that IBM is paying for Red Hat is giving them a Multicloud strategy more than just saying we have a bunch of data centers and bare metal. >> So they play in both, right? And maybe not so much in the public cloud, I would argue that their public cloud has failed to meet their expectations like IBM. And that's why they had to pay $34 billion for Red Hat. I would say just the opposite about Microsoft, their public cloud strategy has been an enormous success and they're very well positioned for Multicloud. >> Okay so let's just put it on the table. So, Cisco looks at the public cloud as partners, not competitors so Amazon, Assure, Google aren't competing with Cisco. Are they or are they partnering? Well, understanding competition is all about understanding who has a cloud so I would say Cisco's strategy to partner just like SAP did, just like everyone else and Dell did, that's the competitive, not cloud so, or maybe. This is the question; are the public clouds competitive to Cisco? >> They're frienemies, John. >> Oh no, the answer is yes, there is no question about it. They're growing at 20, 30, 40% a year. Cisco and IBM, HP they're growing at much lower, single digits. >> So John, we know if Amazon, if there is a profitable space that they can offer, a competitive service, they will. Security, you said, Cisco's got a great position security both what they've had for a long time and they've done acquisitions like Duo more recently and we've seen lots of pieces of the public cloud ecosystem that Cisco's bought over the last few years. Clicker was one that we've spent some time talking about but absolutely, Amazon goes after some of those pieces so they're going to partner. Cisco's got, the last I checked, at least three dozen products on the AWS marketplace but they can live there but there will be competition. >> Cisco's got some huge assets in this game, they got 800,000 plus customers, they are 60% of the networking market so they own the install base. It's really the only market you can think of that's a major market where the dominant player still owns 60% of the market and they've never been able to. >> Cisco for networking and Vmware for the hypervisor are very similar in that case and both have now had a similar strategy as to how their going to multicloud. >> Well, that's the most interesting competitive dynamic, in my view, is Vmware and it's acquisition of Nicira and obviously Cisco. Cisco's not going to take this lying down, they've got ACI and they claim number one. They didn't say whose data that was. I was looking and squinting for that is that IDC that got their four star. >> Well lets talk about growth because you know how I always complain about market researches aren't on the mark in terms of the reality of where the market is. So, you've mentioned growth. So, are we, if we're early in cloud growth, that's where the growth is, what is the cloud adoption going to look like over the next 10 to 20 years? Is it going to look more like public cloud or is it going to look more like on premises evolving to cloud operations and if the growth of cloud operations is all things, wide area network, image and SV wan, then there's more growth coming. So, if that's the case, is Cisco going to be able to capture that growth for the future? >> Well, in terms of growth, I think AWS is on it's way to being a $100 billion revenue company. And that's pretty impressive given where they are today, I mean they're going to triple in revenue so that's where the growth is. Cisco's already participating in a huge tam. What they've got to do is hold on to that business and identify new opportunities where they can manage multicloud instances and compete effectively with Vmware who's coming at it from the hypervisor and now, as I said yesterday, try to do to networks and storage what it did for systems and then IBM, Red Hat coming at it really from the applications perspective and with a services view. Microsoft, with a foot in both camps. You got Oracle in it's little niche. It's just a really interesting. >> Well, you've got an installed base that's moving into the cloud. You got net new companies that are going to be started. Might have on prem gone full cloud, this is the question that everyone's going to ask. I think Cisco can take their existing base with moving packets from point A to B and storing and making data more intelligence. Moving data around is a big networking phenomenon. >> Here's the question; Andy Jassy would say, "We believe there are going to be far fewer data centers in the future," that most data is going to live in the public cloud. The likes of Mike Liddle, Charlie Robbins, et cetera, I think they see the world as a hybrid world. That there's going to be more data that's in a hybrid, on prem plus cloud then is going to be in the public. >> I love Andy Jassy but I'll just say, first of all and I'm saying this biased on his perspective and I think he's right at one level. Why wouldn't Amazon see people moving data centers to the cloud? I get that. I say that it's going to be in the networks. That's where the action will be. Where are the networks, are the networks in the cloud, are the networks on premise, are the networks on a phone, IOT? So, you see IOT and Edge coming together, if it's all one network, then you're going to have the values going to be in the network, not necessarily the clouds per say or in shared value. >> You talk about Edge computing and IOT, Cisco's got Meraki which is going strong. SD Wan is a critical component in this multicloud piece. They're really posed to drive this next generation of 5G, not something we've dug into a lot yet but it is finally coming really soon here and Cisco has a lot of those pieces to be able to hit the next wave. >> It always comes back to the data, in my opinion, and the leverage point for data are sass. If you own the applications business or you're doing well there, you're in a good position. All the data's running over Cisco networks so that puts them in a really good position and as we know the likes of AWS and Microsoft, Alibaba, et cetera. They are trying to get as much data into their cloud as possible. >> And what I loved yesterday in the keynote is data was actually one of the central components that they talked about which the Cisco I know of 10 or 20 years ago, that was just bits that ran over our pipes. So they understand the value of data and their drive into that market. >> Well, we've been saying on the Cube now for nine years. Data's at the center of the value proposition. Data at the center, value proposition, this is actually happening. We see a lot of growth in cloud. Dave, good commentary. Stu, well done. We're going to have Sasha Gupta, all the leaders coming on the Cube here from Cisco. We'll breakdown and we're going to ask them the tough questions. Stay with us for day two coverage here in the Cube. Live in Barcelona, I'm John Ferrier, Stu Miniman, Dave Vellante breaking down all the action. We'll be right back with more after this short break. (light techno music)

>> Live from Barcelona, Spain. It's the cue covering Sisqo, Live Europe. Brought to you by Cisco and its ecosystem partners. >> Welcome back to Sisqo. Live in Barcelona, Day Volant with my co host to Mina and you're watching the Cube, the leader in live coverage of Day one of a three day segments that we're doing here at Cisco Live. Barcelona Bread Hartmann is here is the CTO of Cisco Security Group and we think a Cube alum from way back, way, back way back. Great to see you again. Thanks for coming on. So we're gonna talk about workload security? What's that? What is working? What >> is workload security? So it's really the whole idea of how people secure applications today because applications aren't built the way they used to be. You know, it's not the idea that you have an application that's just sitting running on a server anymore. Applications are actually built out of lots of lots of components. Those components may run in a typical data center. They may run in the cloud. It may be part of a sass solution. So you got all these different components that need to be plugged together. So questions How do you possibly secure that when you have all these pieces? Containers, virtualized, workloads, all working together? That's the big question >> written often times by different people. >> Different people's services. Yeah, Matt Open source. Right. So all that somehow has to come together and you have to figure out how to secure. That's the question. >> So what did you used to do with applications? Securities Just kind of figured out the end and bolted on. >> Pretty much. I mean, yeah, historically, people would do their best to secure their application. It would be kind of monolithic, you know, or, you know, three tier yet of, you know, the Web here after your database, that sort of thing. And then you'd also depend a lot on the infrastructure. Depend on firewalls. You depend on thing's on the edge to protect the application. The problem is, there's not so much of an edge anymore. When in that world I described you can't really relies so much on that infrastructure anymore. That's the shift of the world. We know. >> Also, what's the prescription today? How do you solve that problem? >> You know, there's a lot of ad hoc work, and so this whole notion. A lot of people talk about Deb set cops these days, or sometimes it's, you know, Deb Opsec girl. But you know, there's always different versions of that. But the whole idea of the de bop swirl the way people build applications today and the security world, its security ops world are coming, either coming together are colliding or crashing, right? And so it's it's getting those things to work. So right now, the way Deb ops and SEC cops works today is not particularly well, a lot of manual work. Ah, a lot of kind of ad hoc scripts, but I will say probably over the last year, there's a lot more awareness than we need to figure this out. To be able to merge these two things together. That's kind of the next day. >> Print one. Wanna bring us inside that a little bit because if you, you know, listen to the Dev ops people. It's you know, we've got a new C i. C. We need to move fast. And there was the myth out there. Oh, well do and my faster or am I secure? And, you know, I was reading some research recently. And they said, Actually, that's a false tradeoff. Actually, you can move fast and be more secure. But you raised a risk because you said if these are two separate things and they're not working in lob stacked and it's not secure every step of the way in that part of your methodology, then you're definitely >> going to security exactly right. And there's a basic question of how much of a responsibility that developers have to provide security anyway. I mean, historically, we don't really necessarily trust developers to care that much about security. Now, as to your point these days, without, you know the way people develop software today, they need to care more about it. But typically it was the security operations. Folks that was their responsibility of developers could do whatever they wanted, and the security folks kept them safe. Well, again, as you said, you can't do that anymore. So the developers have to pull security into their development processes. >> Yeah, when I go to some of the container shows or the surveillance shows, the people in the security space are like chanting up on state security is everyone's responsibility. It hasn't traditionally been the >> case it has not. And so it's really work. What companies are working on now is how to the security operations people fit into that development process and what are the tools? And again, it's a long, complicated set of infrastructure and other sorts of tools. But that's sort of the point that Cisco we're really working on on evolving the security products and technologies. So exactly it fits into that process. That's the goal. >> So I'm sure there's a maturity Mahler or a spectrum. When you talk to customers, maybe we could poke it that a little bit sort of described that. So you're really just really talking about a world where it's team sport. The regime is everybody's gotta gotta be involved. But but oftentimes that, working for different people, someone working for the C e O. Maybe some the CTO from the sea so different companies contract, there's >> providers all >> that right partners. So so what is that spectrum look like? And how are you helping customers, you know, take that journey. >> So not surprisingly, companies that are born in the cloud they're like, This is old news. It's like, This is how they, how they deal with it every day. They A lot of those companies have lower risk deployments. Anyway, the organizations that are really early days on this, or the ones that have lots of existing investment and all that data center stuff, and they're trying to figure out how this is gonna work. You know, you talk to a typical bank, for example, you know, their core business processes of how they protect money. They're not going to move to the cloud, right? So how did they evolve? And they, by the way, they have to do with compliance requirements on all this other stuff they can't They can't play too fast and loose, so that's an example of something that's early days. But they are also working a lot in terms of Ah, evolving, moving to the cloud and having TTO be able to support that, too. >> So when you engage with with Cline, I presume you're tryingto assess kind of where they're at and then figure out where they want to go, and then how to best get him there. So, yeah, what is Cisco's role in helping him get? >> And so first of all, of course, I represent, you know, the business group that builds the security products, right? So a lot of this, and the reason why my group is so interested in this and and our security Francisco so interested is this really represents the future of security. This idea of having a much more embedded into the applications is supposed to purely being in the infrastructure. So what we're seeing for typical customers, like, if I roll the clock back a year ago and we talked about things like Deb set cops, they're like, Yeah, kind of an interesting problem. The one we just talked about what it's like, not quite ready for it now. This is, I think, every C so you know, chief security officer, I talked to very aware, have active engagements about how they're working with their nabobs groups and are actively seeking for tools and technology to support them. So to me, that's a good sign that it's you know, the world is moving in this direction, and as a security vendor, we need to evolve, too. So that means things like evolving the way firewalls work. For example, it's not just about firewall sitting at the edge. It means distributing firewall functionality. It means moving functionality into the public cloud like a Ws and Google and Azure. It means moving security up into the application itself. So it's a very different world than just a box sitting on the edge. That's that's the journey. And we're on that journey, too. And the industry is I mean, it's not a solve problem for exactly how to do >> that. If we go back to the early days were talking about, you know, that when the Cube started twenty ten, Security really wasn't a board level topic back then. >> It's at least not for every company. There's certainly company. Yeah, but not now. It's like you're right. Every company cares about it, >> right, and it comes up. But every quarterly knowing, you know, certainly every every annual meeting. Um, so So what? Should Sasha, the technical Seaside CEO CTO. If they're invited into the board meeting, how should they be communicating to the board about security, what >> it's run its? And and to your point, I mean typically these days for most major corporations in the world, the chief security officer is often presenting at every board meeting because cyber risk it's such a big, big part of that risk. And this is a challenge, right? Because to try to communicate all the tech required to manage that risk to aboard Not so easy, right? It's like, yeah, China count. How many now, where threats stopped. It's like, what do they do with that? If you talk to our our chief security officer, Steve Martino here, it's Cisco. I mean, he talks a lot about, first of all, having visibility, you know, being able to show how much visibility, how much can we see? And then how much can we control and show that the organization is making more and more progress in terms of just seeing what's out there so you don't know broke devices and then putting controls in place? So you need some pretty. You know, the big animal pictures communication of being able to manage that. But you can never come in and say, Yep, guaranteed. We're secure, you know, are given a number. It kind of has no meaning >> but strategy. Visibility, response. You know, mechanisms preparedness. What? The response. You know, protocol is that that's the level of it sounds like >> showing, you know, maturity of the process is really on the ability to take that on a supposed to getting into the weeds of, you know, all the metrics that stone. >> So we've had multi vendor for a long time, and even then, the network space, there's a lot of different pieces of the environment. How is multi cloud different from a security >> standpoint? Yeah, so the issue there and kind of what I was hinting that we talk about the way people build applications, is that all those vendors, they all do security differently. Everyone that scary differently s'all good, I mean and for example, Amazon, Google, Microsoft. They're all making massive investments to secure their own clouds, which is awesome, but they're always also different. And then you have the SAS vendors. You talked to sales force drop box in box. They have different security mechanisms. And then, of course, you have different ones in the enterprise. So from a chief security officer standpoint reporting to the board, they want one policy. You know, we want to protect sensitive corporate data, and then you have maybe one hundred different security policies across all these, All this mess. That's why it's different trying to manage the complexity and get the policies, toe work and get enforced across all those platforms. You can't force it all to be the same. So a lot of what we're working on, a really tools to do that so you can fitting back into that develops process. You, Khun, define high level policies of how do you control that data and then map it? Toe all those different platforms? That's that's the gold. That's how we that's how we get there. Make progress. >> She had a picture up in the keynotes today. It had users. Device is kind of on one side of the network and then applications in data on the other side of the network and then the network in the middle right and all those pieces fitting in. How does that affect how you think about security? We've talked a lot about application securing the application. Are you thinking similarly about the data or the devices, or even the users? You know bad user behavior will trump great security every time. Where do those other pieces fit into the context? >> Of course, that's a big reason why we just acquired duo security. You know, very significant acquisition there, which is exactly around trust of human beings as well as the device, is a key component that Sisko didn't have before that and fits in exactly to that point. I was a key strategic piece of that of trust, defining trust, and you know that it's in. Obviously, we already do lots on the device side. You know, we do things like identity service engine to enforce access. You know, with the network, we have more and more on the application side. Not so much in the data side yet, I mean, but as we move up the sack and of the application, it'll be around data, too. But the network is a natural convergence point there, and the whole idea of having security embedded right into that network is, of course, you know why. Why Francisco, right, that's security is a critical thing that needs to be embedded and everything that Cisco does. >> Well, you've got an advantage and that you could do the deep packet inspection you hear in the network. I mean, that's what >> visit bill I mean, Maturity is is really all about visibility. Don't visibility of nothing. And Cisco has this incredible foot print. Incredible telemetry across the world. I mean, all the statistics around Talos you probably seen it's a huge right and that's that's. Ah, that's a big advantage that we have to really provide security. >> Right? Awesome. Well, Bret, thanks for for coming back on The Cube was great to see you. My pleasure, tuk. Alright, alright. Keep right there, Everybody Stupid Open day! Volante, You're watching the cue from Cisco Live, Barcelona! Stay right there. We'LL be right back.

>> That's sort of what I bring, is an ability to catalyze the conversation, and share that knowledge with others in the community. Our philosophy is everybody expert in something, everybody is passionate about something, and has real deep knowledge about that something. What we want to focus in on that area and extract that knowledge and share it with our communities. This is Dave Vellante, thanks for watching theCUBE. (smooth music) >> Live from Orlando, Florida, it's theCUBE. Covering Microsoft Ignite. Brought to you by Cohesity, and theCUBE's ecosystem partners. >> Welcome back everyone to theCUBE's live coverage of Microsoft Ignite here in Orlando, Florida. I'm your host, Rebecca Knight, co-hosting with Stu Miniman. We have two guests for this segment, we have Anna Chu, who is a Senior Product Marketing Manager at Microsoft and Shona Chee, Product Marketing Manager Diversity and Tech Community Lead. Thank you so much for joining us. >> Happy to be here! >> So, you are dressed very similarly. (laughs) >> Yes, we are. >> Yes, so we're going to get into diversity, because I want to go there, but let me start with you, Anna. So, you are really in charge of the community within the vast ecosystem of Microsoft. That's a big job. So how do you go about it? What's your approach to the Microsoft Community? >> Gosh, well, it's a lot of work. I've been leading the community efforts at Microsoft Ignite for the past two and a half, three years. And ultimately, it's all about the people in the room. These are IT pros, these are developers; people who care about technology. It's also end users as well; people who are business-focused. So we really want to make sure that we're delivering content that is going to help them go back to their communities, go back to their offices and be able to share all that knowledge back into the workplace. >> And Shona, so then you are within a slice of that community. So focusing on diversity and tech. So, what is your, how do you operate? >> So we see diversity as really closely integrated with technology. So we are a community that lives on the tech community. So there's a direct link, AKA dot MS Life Diversity and Tech, but what we're pretty much doing is bringing people together. All the tech communities to talk about important topics of diversity inclusion. So, traditionally, it's always been very HR driven, a lot about talent and acquisition and recruitment, but for us its really about what about the people in career, how do we help them feel like they belong, and they're apart of this ecosystem. So that's where we see the symbiotic relationship. >> And I have to say that it's my first time to the show. I've watched it from afar, I knew lots of people that were Microsoft MVPs over the years, very impressed. Maybe give our audience a little bit about what goes on in the show. You got all the podcasts going, there's meet-ups, there, you know, lots of good flare you're giving out at the show, and everything else like that. So, what's everybody missing that didn't come to this community gathering? >> Gosh, I hope I didn't miss out on anything, really. I really hope that we were as inclusive as possible. But every year we try and make the event more community infused than ever before. In previous years, we just really focused on content that would be live on a stage, such as at a theater or a breakout, but we really want to add a little bit more of the networking side of things too this year. So we've invested in the meetups, which are more formalized ways for the community to find their people. But we've also invested in idea swaps, such as a brand new concept that we've landed here in Microsoft Ignite, where we have group idea swaps where people are putting together topics that they want to meet with others about. And we also want to facilitate more one on one networking because personal relationships are such a critical part to being professionally strong in your career. You can't be successful without other people. So we really want to enable Ignite to be that platform. We've got people from all around the world. Shona's got this amazing pin wall in the Diversity and Tech area that showcases where everyone is coming from. There are people coming from really remote areas, to people all parts of Western Europe and the US, and I think there's a lot to be gained from people being able to find each other through Ignite. >> And what we always tell attendees is everything is live-streamed or recorded in terms of sessions, so the biggest take away here is really people and communities, so we really encourage people to meet-up, build valuable connections, just talk about topics that might be uncomfortable so that we can learn from it. >> Such a great point there. It's funny it is one of those pro tips out there. First of all, when there's a really big convention center, and there's a lot of people, there's certain sessions that you want to be at. Maybe you want to talk to the speaker in due but, when you find time on the plane ride back or spend a little time in that suite, you can go re-watch some of it, the people is really what drives everybody to the event. >> Where else would you meet 25,000 people in one venue, right? So it's really exciting. >> Shona you said talk about topics that are a little uncomfortable, those are the hardest things to talk about, particularly with a group of strangers. So what has been your experience at this conference, what are people saying that might count as that? >> Right, so the recent inclusion has really come front and center in terms of topics that's hot in the IT industry in particular. So traditionally people think about diverse inclusion as gender, right? Men and women. But, we're seeing that it's a lot more multi faceted than that. We're talking really about intersectionality of identities, all of us hold multiple identities, I'm a woman in tech, I'm an IT professional, I'm a millennial. So there's multi areas that we deal with, but we need to address each and every one of them. So for example, this year we have a lot of sessions focused on LGBTQ, and we also have our partners talking about this topic as well, and just really getting people in a room to say help me learn more about this area that I'm not that familiar with, or let's talk about race and culture. What do people in your culture do? What is the norm, what is acceptable? And that's why we also partnered with Tech Women, it's a US department of state initiative where we invite women from developing countries to come share their experience being an IT pro in those countries like Algeria, Tunisia, Lebanon. So we really want to give them platform to interact with attendees, but also giving mostly North American and European customers a chance to hear from someone in a completely different cultural setting. >> And just talking about all the various identities that we all encapsulate. Is the workplace the right place to talk about those things? That is another question too, in the sense of we are bringing our full self to work and we are spending so many hours at work. But at the same time, what is the right balance, do you think? >> Yeah, I think that's a great point. On the Monday leadership panel, we actually talk about leadership and building inclusive work cultures. Like you said, we spend so much time in the office, sometimes our coworkers become our family almost, right? How do we create and environment where people feel like they belong, where they feel like they can be genuine and not feel like they have to hide something, because in-authenticity really shows, and we want to encourage people to just feel like they have a safe place to express themselves. >> So in terms of advocating for yourself at work, I know that's another big theme that is in the diversity and tech workshops, what is some advice that you have for women, for underrepresented minorities, for people of various sexual orientations to make sure that they are having there careers that they are capable of having, and not being and not coming up against other biases and challenges. >> So in the Tuesday session, Donna Secaur actually talked about this, which was a great point, she said, you can write your own story, you can't control what people say about you, but you can control what's out there in the media, you can control how you do your social media profiles, and I think it's really encouraging people to take a look at what's online. Brand yourself how you want people to see you, and be proud of it, I think that's one of the biggest points. >> I also think that Microsoft Ignite brings so many people together, but they all have a common mutual passion which is about technology, and if that manages to bridge build bridges between people who may not necessarily get to know each other, so people from different religions or from different ethnic backgrounds, who don't really have that opportunity to get to know each other, and then they find a common passion, or they also face the same challenge on how to govern teams or things like that then suddenly we're doing a lot to help, build bridges and just drive that human connection so we can get beyond some of those challenges that we're facing in 2018. >> One of the ideas that bridges both community and diversity is career paths. I know a lot of the shows they go is how're we taking somebody from a certain world that growth mindset that we hear Sasha talking about how're you looking to address that and how is that discussed in the communities? >> Gosh, we've just launch a completely new Microsoft learned platform as well, one of the things that is really important ab6out learning is actually learning through community too. And if we can enable people to find their own people by helping them share best practices and tips, and we've made huge in roads there. So one of the things we've run as part of Microsoft Ignite, are community socials. So community socials are a way for people to find their people. So we've hosted ones for Microsoft Exchange an6d Outlook and we can make an element of fun out of that too, so there seems to be a certain personality in that community called squeaky lobster, I don't know if you've heard of squeaky lobster. It's some sort of inside joke that even I don't understand, but apparently he's a personality, and he's here to unite the community together, and then people will come together, and they'll talk about Exchange 2019, and they'll talk about how that impacts other parts of Office 365 and Microsoft 365, and then they'll talk about all the different ways that they can connect with each other as well. So it's a very amorphous thing. From a learning perspective, we have a lot of things that we can do to create platforms for learning, which is really awesome, but at the end of the day we have to learn through community because it's just IT professionals and developers are having to learn at a crazy pace, faster than they've ever had before. So that's a really big part. >> And I like that you mentioned career paths, because we just partnered with the MVP community to launch a community mentors program, and that's where we partner with over 700 participants all around the world from 65 countries, and over 800 years of combined industry experience, to have mentors work with mentees from other countries, and do a lot of cross sharing, just sharing expertise and best practices. >> And you have your student ambassadors here too. >> So that's a new thing that we've also rolled out at Ignite this year, we've invited seven student ambassadors from three local colleges here, and we invited them to work with our community reporters to push out some exciting video content. So that helps them to get a flavor of what kind of roles are out there in tech. We want to debunk the myth that you have to learn coding to work in technology and that is not true. There are so many amazing IT pro roles out there that we really want to educate people on. >> So the technology industry at this point in time has a very bad reputation in terms of diversity, there's not enough women, there's not enough minorities, there's not enough sexual orientation diversity. Coupled with this real bro culture, what's your best advice for technology companies today to be more inclusive, that's one of Satya Nadella's real guiding principles is embracing diversity, different perspectives, and being inclusive. How do you do it? >> I would say the first thing is really, just take the first step. We're all on a journey, this is a really big hairy issue that we're all working to tackle, and we cannot do this alone, and that's something we've heard consistently with all our partners. We are working together to tackle this as an industry, and I can't speak for other companies, but at Microsoft we have a strong culture of empathy, and as you know from Sasha's key note we're all about empowering people to be the best that they can be, and that is why we've developed code of conduct, we make sure people know what's acceptable, what are the boundaries that we can talk with, but still push the limit and say, hey I want to learn more about your culture, I want to know more about the LGBTQ community, I want to know about inclusive design and accessibility, how do I build technology that is accessible for everybody. So I think it's not easy for sure, even for Microsoft, we are still trying a lot of things for the first time. We learn and we grow from it, and we just keep improving it every year, so we hope that in future Ignites it will be even better. >> And having community members, even individually own being a champion for diversity too, whether it be in their own organization, or in their own user groups that they run, we really want to make sure that they are feeling like I can be an ally for diversity, whether you are someone who is the the typical persona in the IT pro world, which is a white male, and I'm really glad to hear a lot of these stories of people saying you know what, I am going to be that person that's going to step in and say something when I don't think things are right. >> And there are topics that everybody can relate to as well like mental health and wellness, that's an issue that's really come in the spotlight with a lot of stress in the industry. So it doesn't matter whether you're male, female, your gender identity, all of us are human beings. We all feel the same pressures and stress, and we just had that lunch session where literally tears were shed because people felt like I now have space to say I'm struggling with this, can you help me? And I think that's a really powerful thing to even just get started. >> It does require a lot of bravery, I think. Because for me even, I like to be able to find other people that I can relate to, who also share some of the same challenges that I have, and so I think that's the first step really, basically opening the doors and letting people express themselves and then other people are also going to feel like they're included. I think that's really one of the first steps. >> And where better to do it than a community. Finding your people in this space so yeah. >> And I want to ask about the buttons you have on so, yours, Anna's says Ringleader, Shona, game changer. >> Networking ninja >> And Networking ninja! I love it. So can you explain what these mean? >> Yeah so this year we want to try to really interactive button wall and we want people to come, and feel like they can share what's there diversity super powers, so all of us play a really important role, we where many hats from a day to day basis, but we want to know, what do people feel like is there ultimate strength, whether you're a mentor, are you an enabler, are you a supporter, what is it? And these were just great conversation topics, so if I saw that Anna's a Ringleader, I might come up to her and be like, oh that's me too, can we talk and schedule and idea slot? So we just want to create a fun way for people to interact, but another important thing we've launched this year is the pronoun buttons, so we want everybody to feel like they can be comfortable telling people what is the pronoun that they prefer rather than what visually people think they are, so that is something that we've launched this year as well. >> Very cool, very cool. Well thank you both so much for coming on theCube, it was really fun talking to you. >> Thank you for having us. >> I'm Rebecca Knight, for Stu Miniman we will have more of theCUBE's live coverage of Microsoft Ignite coming up in just a little bit. (smooth music)

>> Narrator: Live from Orlando, Florida, it's the cube. Covering Pentaho World 2017. Brought to you by Hitachi Ventara >> Welcome back to The Cube's live coverage of Pentaho World brought to you by Hitachi Ventara. I'm your host Rebecca Knight. Along with my co-host Dave Vellante. We have two guests today from the Universal Service Administrative company. First Sachin Batra who is the Senior Manager, Information Architecture and Tom Nesbitt, Senior Manager, Systems and Data Analytics. Welcome, thanks so much for coming on The Cube. >> Thanks. >> Thank you. >> So, first tell our viewers a little bit what the Universal Service Administrative Company is and what it does. >> Sure USAC, Universal Service Administrative Company, was created as a result of the Telecommunications Act of 1996 so that act deregulated the telecommunications industry and opened it up for competition. Along with that, the United States Federal Government passed legislation to create the Universal Service Fund. This fund, basically, supports four programs. High costs, we have a low income program, we have rural healthcare program, we also have our E-Rate or schools and libraries program. >> Okay, so, what are you doing here are Pentaho? It's a relatively new company. How do you use Pentaho? >> We're going to share our experience and our journey to become a data driven organization and how Pentaho has helped us to achieve this mission. >> When you talk about data driven organization, that means a lot of different things, to a lot of different people. What does it meant to you guys and how does it fit into your mission? >> For me, I think the first thing is the availability of data. So, historically, a lot of business people have had a hard time getting to the data. So, Pentaho has really freed the data and made it available. For me, step one is freeing the data. From there, it's then becoming more sophisticated in terms of analyzing the data, using the data to manage your day to day operations. >> So, can you describe the before and after? Maybe, the Pentaho journey? What was life like before and how did that change? >> Sasha: Oh, you want to go ahead? >> No, I can go. So, typically, I'll just say ten years ago. You would typically have to put in a request to get data or to get a report. You want a report on the state of Texas and you would have to open up a ticket, get in a line, and wait for someone to fulfill that. Now with Pentaho, we've built self-service models. So, the user can go in themselves and just create the report on the fly. So, we're talking weeks down to minutes. >> Dave: Oh, okay. >> Just to add on to that, we also have now enterprise data warehouse available so now we can do enterprise level reporting and analytics. Rather than just doing a program level reports. >> Can you give our viewers an example of what kind of a report someone would need and what could be implemented after that reports gotten? >> Sure, a lot of our reporting is about funding. We cover products and services for telecommunications. We'll do a lot of report at the national level but we may run state reports, as well. Maybe we have an inquiry, someone wants to know how's our funding in Iowa, how many applications have we completed, what type of products and services are we covered, which schools and libraries have we funded. >> How would you describe the way in which you measure the success of the mission, and how are you doing? >> The focus is a lot about ensuring we provide the right funding to the right schools and libraries and hopefully do it quickly. It's accuracy, and it's also speed. Those are, probably, the two elements. Then, of course, it's the connectivity in the classroom. Ultimately, we're trying to ensure that our products and services lead to connectivity in the classroom as well as libraries. >> How does it work? Is it like winning the lottery? You just say, "hey good news" then somebody knocks at your door or how do you inform folks, how do you collaborate with them, what's the prerequisite on their end, or requisite, things that they have to do? Is there a give and a get? >> There's applications people have to fill out. So, each year, there's a series of applications that have to be completed. We do have a special application window for funding. It's, typically, about 75 days. All the schools and libraries across the country will go ahead and fill out their applications and it's their request of what they would like to receive funding for. So, it's a special time. (chuckles) >> So, we're hearing a lot about the social innovation piece of Pentaho and how that is really one of the real approaches that it takes to business. This double bottom-line and your organization really fulfills that principle that it's trying to make good on. How does working with Hitachi Ventara and the Pentaho product, what's that relationship like there? >> I would say with the Pentaho product, it has really helped us a lot to achieve our mission. We can do a lot more reporting, enterprise level reporting, analytics. Users have the data available at their hands. They can just quickly drag and drop and create their own reports and analytics. >> How does this change employees lives? As you've said, it used to take weeks, months, now it's minutes. >> I think if you've got an operational issue or problem you get a report, maybe there's a problem with data point, or maybe there's a certain set of applications that aren't getting processed quickly enough. We can more quickly identify that problem and respond. So, it's again, identification, and then the magnitude. Is it a small problem or a big problem? Again, by freeing the data and giving it to the managers, they can better manage their operations. And we can hopefully provide better funding, faster funding to schools and libraries across the country. >> Can you take us inside your data journey? What are the sources of data? How have those sources multiplied over time, and how you're dealing with that. >> Sure, when we started we only were thinking about the four programs. So, we wanted to start with Pentaho with the four different programs. We have extracted the data from the four different transactional db's, the four programs. Like, low-income, schools and libraries, RHC, high cost areas, and then we extract this with the help of PDI and load it into our program data marks. And on the top of that, we are making Pentaho sit and then we can report and analyze based on that. >> Maybe, talk a little bit about data quality. You have to trust the data. As the data grows, it's got to be harder and harder to maintain data quality and governance and those sort of boring but important things. >> Yeah, that's been a challenge. We obtain data from other sources. So, a lot of our data is driven by what our applicants put into our forms. So, through Pentaho and other tools, we can mine that data and find out, oh, maybe the person put down the wrong county that they live in, believe it or not. We need to correct that. We do get a lot of outside data brought in and we have to make sure it's, we can use cleaning devices to make sure it's accurate. >> So, you're kind of living the data world. You talk about data driven mission. Today you hear all this buzz about AI, and machine learning, and deep learning, and all these fancy buzzwords. Do they have meaning for you, are you thinking about applying them to your organization, and if so, why? What are the outcomes that you're hoping for? >> Sure, not that much AI but I think we are planning to go more toward the predicted analytics. So, we are going to look at that very soon. We want to be proactive rather than reactive. So we want to respond to the problem proactively. >> So, that means what? Identify areas that are in need before they inform you or anticipating other problems? Describe what problems you'd be solving. >> With our application review process we receive a large number of applications. A lot of them are very similar. So, we can hopefully, put the similar ones that are within our control points and push those through more quickly. Whereas, if we have some outliers we can then, maybe, scrutinize that a little bit more. So, some type of predictive analysis to say, hey this is within a range, it's okay, let's fund it. No, this one needs a lot more scrutiny. >> Okay, so, ensuring better outcomes really? >> Tom: Yes. >> Aligning with those is really the objective, right? Okay. Great. >> So, here at Pentaho World, there's many practitioners who are sharing best practices, learning from each other. Here's how we're using the product. What are you hearing, what are you learning, are there things that as a government agency, part of the FCC, that you are going to be able to take back home and implement? >> I think what I have seen in the last couple of presentations we can do a lot more with the Pentaho version 7.0 and 8.0. You can actually visualize the data right from, when you're extracting the data. Which, I really liked it. I'm pretty sure we're going to apply that and then make the data available in the hands of business much much early rather than later. >> And, I'd also say dashboards. There's nothing better than a slick dashboard with all the metrics right there, clean display, clear indications if your meeting your goals or not. So, I think that's a scenario we have a lot of opportunity for growth. >> Where do you expect to get the viz? Is that something that comes out of Pentaho or are you going to have to bring in other third party tools? >> I think we can do it in Pentaho with custom dashboards. >> Sure, we can do custom dashboards and we are also doing some GIS analytics that we can actually embed into Pentaho portal or even any other open-data portal. >> What did you think of this morning... Did you see the keynote this morning? >> Tom: Yep. >> How did that, I don't know if you're one of the hands that went up when they said who does business with Hitachi, probably no, most people were no. So, you have this big conglomerate, great company, known name, but not really sure exactly what it is they do. As a customer, what was your sense of the keynote, the messaging, does it matter to you, are you indifferent to that or is it meaningful? >> For me, it opened up my eyes about what the possibilities are. And the key is also to be proactive, right? You don't want to be, even though we're a government agency, we act on behalf of the government. We'd like to think we can stay at the forefront and leverage these greats tools and stay current. Because we're all dealing with so much more data and everyone's asked to do everything faster, even though there's more data. >> So what's your key take-away from this conference? >> Better use Pentaho product. (Rebecca laughs) Which we are actually using but the new versions. Apply those, the concepts, and get some more out of it. >> So, I got to ask you, When you think about the governments use of data. There's nobody more sophisticated. Of course, the guys who really use that data in sophisticated ways nobody knows what they do. You can't talk to them, I'm sure they don't expose you to their secrets. But, the government is so enormous, so, as they say, sophisticated. I mean, I'm sure there's a bell curve. But, are there ways to share best practice with non-confidential or classified information? Are you learning from your colleagues? Is there some kind of pipeline to share best practice? Or are you kind of on your own? >> We're actually sharing our practices. We collaborate with FCC and see what they are doing. Where are they in the technology and we share what our experience also. Over here there are some other common institutions, which are here at conference and we are talking to them and how they're leveraging the data, how they're leveraging the product, and how they're better using this product. >> From an enterprise grade level, you think of things like security, and compliance, and things like that. I presume that's important in your world. >> Sachin: Definitely. Absolutely. >> I would imagine that some of those can seep through different agencies and organizations. But, does the system allow for that? I guess is the question or is it just everybody's so busy kind of doing their own thing. >> Sachin: Want to take that? >> We've been getting more mandates from the government to publish our data. That's a big initiative in Washington. To make it available and it's available to the public. It's available to researchers. It's available to state agencies. So, I think there's definitely a lot of sharing of best practices in that space. >> And those are largely unfunded mandates, right? Figured out how you're going to do this and reallocate capital or is it... >> No, I think that if they give us a directive to do that they'll fund that. >> Dave: They usually provide resources to do that. >> Yeah. >> So, you're not having to rob from your mission to, alright great. >> One of the other things that we've been hearing at this conference is the enormous culture shifts that are involved in digital transformation. How would you describe the culture within your organization? Is there an understanding, that data needs to be front and center? Because there is this mission element as well. But, is it hard to bring other people along with you? >> We've been trying to do that with training. Training people how to use Pentaho, how to use data. I will say that it seems like there are some staff that, I don't know if resistance is the right word but, they're a little scared of it. I find some of the younger staff will just dive in there and start analyzing. For me, I try to do a lot of one on one sessions with people and try to individually change their approach and attitude toward data. It can be a little overwhelming. >> Great, great. Well, Tom, Sachin, thank you so much for coming on The Cube. >> Thank you very much. >> Thank you. >> Thanks, you guys. >> I'm Rebecca Knight for Dave Vellante. We will have more from Pentaho World just after this. (tech music)

[Music] live from cambridge massachusetts extracting the signal from the noise it's the cube covering the MIT chief data officer and information quality symposium now your host dave Volante and paul Gillett hi buddy welcome back to Cambridge Massachusetts we're at MIT Paul Gillan and myself are here for two days and we're really pleased to have sandy Pentland on he's the director of MIT Media labs entrepreneurship program just coming off a keynote mr. Alex sandy Pentland Spellman thanks for coming with you how'd you get that name sandy was that the color you know my dad was named Alex too so I had to get the diminutive so Alexander turns into Zander or Sasha or sandy ah excellent so man it's stuck so we learned from your keynote today that like your mom said hey if every other kid jumps off the bridge do you and the answer should be yes why is that well if your other friends or presumably as rational as you and have same sort of values as you and if they're doing something that looks crazy they must have a piece of information you don't like maybe Godzilla is coming bridges come and it really is time to get off but and so so while it's used as a metaphor for doing the irrational things it's actually shows that using your social context can be most rational because it's a way of getting information that you don't otherwise have so you broke down your talk to chief data officers and new types of analysis smarter organizations smarter networks and then really interesting new new architecture if we could sort of break those down sure you talked about sort of networks not individual nodes as really should be the focus to understand behavior can you unpack that a little well it's a little bit like the bridge or metaphor you know a lot of what we learn a lot of our behavior comes from watching other people we're not even conscious of it but you know if everybody else starts you know wearing a certain sort of shoe or or you know acting in a certain or using a phrase in business like all these new sort of buzz phrases like oh you have to - because it's to fit in it means something it's it's part of being hyper formants and being part of your group but that's not in data analytics today today what they look at is just your personal properties not what you're exposed to and the group that you're part of so they would look at the guy on the bridge and they say he's not going to jump because he doesn't have that information but on the other hand if all of other people who like him are making a different decision he probably is going to jump and your research has been you dig into organizations and you've found the relationship between productivity and this type of analysis has been pretty substantial very substantive offenses a ssin and outside of the organization dealing with customers so people focus on things like personality history various sort of training things like that what we find is compared to the pattern of interaction with other people so who do you talk to when and what situations those other factors are tiny they're often a whole order of magnitude less important than just do you talk to all the people in your group do you talk outside of your group do if you violate the org chart and talk to other people if you do you're almost certainly one of the high productivity high innovation people so what what impact does this have or were the implications of this on organizations which historically have been have been highly Madonn hierarchies reporting structures all of these institutions that we evolved in the post-world War two ERA is this working against their productivity well what they did is is they set some simple rules in that they could deal with and wrap their head around but what we find is that those simple rules are exactly the opposite of what you need for innovation and because really what they're doing is they're enforcing silos they're enforcing atomization of the work and everybody talks about we need to be more fluid we need to be more innovative we need to be able to move faster and what that requires is better communication habits and so what we find when we measure the communication habits is that that's exactly right better communication habits lead to more innovative organizations what's really amazing is almost no organization does it so people don't know does everybody talk to everybody in this group do they talk outside of the group there's no graphic there's no visualization and when you give a group a visualization of their pattern of organization of communication they change it and they become more innovative they become more productive I'm sure you're familiar with holacracy this idea that of doing away with with organizational boundaries and sort of do titles and sure everybody talks to everyone is that in your view a better way to structure an organization think that's too extreme but it's headed in the right direction I mean so what we're talking first of all people try to do this without any data so you know everybody's the same well everybody really isn't the same and how would you know if you're behaving as well as the same as other people or I mean there's no data so so what I'm suggesting is something that's sort of halfway between the two yeah you can have leaders you can have organization in there but you also have to have good flow of ideas and what that means is you have to make talking outside your org chart a value it's something you're rewarded for it means that including everybody in the loop in your organization is something you ought to be rewarded for and of course that requires data so the sorts of things we do with peoples we make displays could just be piece of paper that shows the patterns of communication and we give it to everybody and you know what people actually know what to do with it when you give it to them they say well gee you know this group of people is all talking to each other but they're not talking to that group maybe they ought to talk to each other it's that simple but in the lack of data you can't feel so you instrumented people essentially with let's badges and you could measure conversations at the watercooler yeah they're their frequency their duration not the content not the content just that's the activity just is it happening right and is it happening between groups just just people from this group go to that other groups water cooler stuff like that and that actually is enough to really make a substantial difference in the corporation and you gave an example of you were able to predict trending stories on Twitter better than the internal mechanism and Twitter did I understand that Kerina so what we've done by studying organizations like this and coming up with these sort of rules of how people behave so the notion that people learn from each other and that it's the patterns of communication that matter you can encode that along with machine learning and suddenly you get something that looks like machine learning but in many ways it's more powerful and more reliable and so we have a spin-out called Endor and what that does is it lets your average guy who can use a spreadsheet do something that's really competitive with the best machine learning groups in the world and that's pretty exciting because everybody has these reams of data but what they don't have is a whole bunch of PhDs who can study it for six months and and come up with a machine learning algorithm to do it they have a bunch of guys that are smart know the business but they don't know the machine learning so it endured doesn't supply something like a spreadsheet to be able to allow the normal guy to do as good as the machine learning guys there's a lot of focus right now on anticipating predicting customer behavior better a lot of us been focused on on individuals understanding individuals better is that wrongheaded I mean should marketers be looking more at this group theory and treating customers more as buckets of similar behaviors it's not it's not buckets but treating people as individuals is is a mistake because while people do have individual preferences most of those preferences are learned from other people it's keeping up with the Jones it's fitting in its it's learning what the best practice is so you can predict people better from the company they keep than you can from their demographics always virtually every single time you can do better from the company they keep than from the standard sort of data so what that means is when you do analysis you need to look at the relationships between people and at one level it's sort of obvious you analyze somebody personally without knowing something about their relationships right about you know the type of things they do the places they go those are important but they're usually not in the data and what I find is I do this with a lot of big organizations and what I find is you look at their data analytics it's all based on individuals and it's not based on the context to those individuals absolutely I want to ask you further about that because when I think of the surveys that I fill out they're always about my personal preference Yahoo I want to do I can't remember ever filling out a survey that asked me about what my peer group does are you saying that those are the questions we should be asking yeah exactly right and of course you want to get data about that you want to know if if you go to these locations all the time to go to that restaurant you go to this sort of entertainment who else goes there what are they by what's trending in your group because it's not the general population and these not necessary people I know but they're people I identify with Yammer haps that's why I go to certain restaurants not because my friends go there but because people who I aspire to be like yeah there yeah and and the other way around you go there and you say well gosh these other people are like me because they go here too and I see that they're you know wearing different sort of clothes or they're by or the simplest thing you go to restaurants you see other people all buying the mushi yes maybe I should try the mushi I usually don't like it but seems to work well and this is I like this restaurant and everybody else who comes here likes it so I'll try it right it's that simple so it's important to point out we're talking about the predictive analytics Capas they're probably people watching might say this Sandi's crazy we mean we don't want it personalized we want to personalize the customer experience still I'm presuming sure but when we're talking about predictive analytics you're saying the the community the peer group is a much better predictor than the individual that's right yeah okay so I want to come back to the the org chart these are you saying that org charts shouldn't necessarily change but the incentives should or your previous thing to do is you have an org chart but the incentives that are across the entire organization is good communication within the box you're in and good communication outside of the box and to put those incentives in place you need to have data you need to be able to have some way of estimating does everybody talk to each other do they talk to the rest of the organization and there's a variety of ways you can do that we do it with little badges we do it by analyzing phone call data email is not so good because email is not really a social relationship it's just this this little formal thing you do often but by using things like the badges like the phone calls surveys for that matter right you can give people feedback about are they communicating in the right way are they communicating with other parts of the organization and by visualizing that to people they'll begin to do the right thing you had this notion of network tuning oh you don't want an insufficiently diverse network but you don't want a network that's too dense you might find the sweet spot in the middle desert how do you actually implement that that tuning well the first thing is is you have to measure okay you have to know how dense is the social interaction the communication pattern because if you don't know that there's nothing to - right and then what you want to ask is you want to ask the signal property of something being two dances the same ideas go around then around and around so you look at the graph that you get from this data and you ask you know this Joe talked to Bob talk to Mary talk to Joe talk to you know is it full of cycles like that and if it's too full of cycles then that's a problem right because it's the same people talking to each other same ideas going around and there's some nice mathematical formulas for major in it they're sort of hard to put into English but it has to do with if you look at the flow of ideas are you getting a sufficiently diverse set of ideas coming to you or is it just the same people all talking to each other so are you sort of cut off from the rest of the world in your book social physics you talk about rewards and incentives isms and one of the things that struck me as you say that that rewards that people are actually more motivated by rewards for others than for themselves correct me if I'm wrong if paraphrasing you wrong there but but there's but but rewarding the group or or doing something good for somebody else is actually a powerful incentive is it is that the true the case well you said it almost right so so if you want to change behavior these social incentives are more powerful than financial incentives so if you have everybody in a group let's say and people are rewarded by the behavior of the other people in the group what will they do well they'll talk to the other people about doing the right thing because their reward my reward depends on your behavior so I'm gonna talk to you about it okay and your reward depends on it you'll talk and I don't know so what we're doing is we're creating much more communication around this problem and social pressure because you know if you don't do it you're screwing me and and you know I may not be a big thing but you're gonna think twice about that whereas some small financial award usually it's not such a big thing for people so if you think people talk a lot about you know persona persona marketing when I first met John Fourier he had this idea of affinity rank which was his version of you know peer group PageRank hmm do you do you hear a lot about you know get a lot of questions about persona persona marketing and and what does your research show in terms of how we should be appealing to that persona so sorry good questions about that some time and I don't know what he really originally intended but the way people often imply it is very static you have a particular persona that's fixed for all parts of your life well that's not true I mean you could be a baseball coach for your kid and a banker during the day and a member of a church and those are three different personas and what defines those personas it's the group that you're interacting with it's it's the the people you learn with and try and fit in so your persona is a variable thing and the thing that's the key to it is what are the groups that you're you're interacting with so if I analyzed your groups of interactions I'd see three different clusters I'd see the baseball one I'd say the banking one I'd see the church group one and then I would know that you have three personas and I could tell which one you're in typically by seeing who you're spending time with right now is the risk of applying this idea of behaviors influenced by groups is there the risk of falling over into profiling and essentially treating people anticipating behaviors based upon characteristics that may not be indicative of how any individual might act back credit alcoholics as you example right I don't get a job because people like people who are similar to me tend to be alcoholics let's say this is different though so this is not people who are similar to you if you hang out with alcoholics all the time then they're really eyes are good on that you're an alcoholic it may not be yes and there is a risk of over identifying or or extrapolating but it's different than people like me I mean if you go to the you know the dingy bars were beers or a buck and everybody gets wasted and you do that repeatedly you're talking about behaviors rather than characteristics behaviors rather than characteristics right I mean you know if you drink a lot maybe you drink a lot so we have a question from the crowd so it says real time makes persona very difficult yeah so it was come back to furriers premise was I was Twitter data you know such is changing very rapidly so are there social platforms that you see that can inform in real time to help us sort of get a better understanding of persona and affinity group affinity well there are data sources that do that right so first as if I look at telephone data or credit card data even for that matter sure this geo-located I can ask but what sort of people buy here or what sort of people are in this bar or restaurant and I can look at their demographics and where they go to I showed an example of that in San Francisco using data from San Francisco so there is this data which means that any app that's interested in it that has sufficient breadth and although sufficient adoption can do these sorts of analyses can you give an example of how you're working with the many organizations now I'm sure you can't name them but can you give an example of how you're applying these principles practically now whether it's in law enforcement or in consumer marketing how are you putting these to work well there's a bunch of different things that that go together with this view of you know it's the flow of ideas that's the important thing not the demographics so talk about behavior change and we're working with a small country to change their traffic safety by enrolling people in small groups where you know the benefit I get for driving right depends on your safety and we're good buddies we know that that's how you sign up sign up with your buddies and what that means is I'm going to talk to you about your driving if you're driving in a dangerous way and that we've seen in small experiments is a lot more effective than giving you points on your driver's license or discount on your insurance the social relationships so so that's an example another example is we're beginning a project to look at unemployment and what we see is is that people have a hard time getting re-employed don't have diverse enough social networks and it sounds kind of common sense but they don't physically get out enough compared to the people that do get jobs so what's the obvious thing well you encouraged them to get out more you make it easier for them to get out more so those are some examples when you talk about health care what you can do is you can say well look you know I don't know particular things you're doing but based on the behavior that you show right and the behavior of the people you hang with you may be at much higher risk of diabetes and it's not any particular behavior this is the way medical stuff is always pitched is you know it's this behavior that beer every combination of things all right and so you're not really aware that you're doing anything bad but if all your buds are at risk of it then you probably are too because you're probably doing a lot of the same sort of behaviors and medicine is a place where people are willing to give up some of the privacy because the consequences are so important so we're looking at people who are interested in personalized medicine and are willing to you know share their data about where they go and what they spend time doing in order to get statistics back from the people they spend time with about what are the risk factors they pick up from the people around them and the behaviors they engage in um your message this to the cdos today was you know you were sort of joking you're measuring that right and a lot of times they weren't a lot of the non-intuitive things your research has found so I wanna talk about the data and access to the data and how the CBO can you know affect change in their organization a lot of the data lives in silos I mean if they certainly think of social data Facebook LinkedIn yeah Twitter you mentioned credit card data is that a problem or is data becoming more accessible through api's or is it still just sort of a battle to get that data architecture running well it's a it's a battle and in fact actually it's a political and very passionate battle and it revolves around who controls the data and privacy is a big part of that so one of the messages is that to be able to get really ditch data sources you have to engage with the customer a lot so people are more than willing our research we've set up you know entire cities where we've changed the rules and we've found that people are more than willing to volunteer very detailed personal data under two conditions one is they have to know that it's safe so you're not reselling it you're handling it in a secure way it's not going to get out in some way and the other is that they get value for it and they can see the value so it's not spreading out and they're part of the discussion so you know you want more personalized medicine people are willing to share right because it's important to them or for their family you know if you want to share we're willing to share very personal stuff about their kids they would never do that but if it results in the kid getting a better education more opportunity yeah they're absolutely willing so that leads to a great segue into enigma yeah you talked about enigma as a potential security layer for the internet but also potential privacy yeah solution so talk about enigma where it's at yeah what it is where it's at and how it potentially could permeate yeah so we've been building architectures and working with this sort of problem this conundrum basically datas and silos people feel paranoid and probably correctly about their data leaky now companies don't have access to data don't know what to do with it and a lot of it has to do with safe sharing another aspect of this problem is cybersecurity you're getting increasing the amount of attacks done stuff bad for companies bad for people it's just going to get worse and we actually know what the answers to these things are the answers our data is encrypted all the time everywhere you do the computation on encrypted data you never transmit it you never unencrypted it to be able to do things we also know that in terms of control of the data is possible to build fairly simple permission mechanisms so that you know the computer just won't share it in the wrong places and if it does you know skyrockets go up and the cop scum you can build systems like that today but the part that's never been able never allowed that to happen is you need to keep track of a lot of things in a way that's not hackable you need to know that somebody doesn't just short-circuit it or take it out the back and what's interesting is the mechanisms that are in Bitcoin give you exactly that power so you whatever you feel about Bitcoin you know it's speculative bubble or whatever the blockchain which is part of it is this open ledger that is unhackable and and has the following characteristics that's amazing it's called trustless what that means is you can work with a bunch of crooks and still know that the ledger that you're keeping is correct because it doesn't require trusting people to work with them it's something where everybody has to agree to be able to get things and it works it works in Bitcoin at scale over the whole world and so what we've done is adapted that technology to be able to build a system called enigma which takes data in an encrypted form computes on it in an encrypted form transmits it according to the person's permissions and only that way in an encrypted form and you know it provides this layer of security and privacy that we've never had before there have been some projects that come close to this but know we're pretty excited about this and and what I think you're going to see is you're going to see some of the big financial institutions trying to use it among themselves some of the big logistics some of the big medical things trying to use it in in hotspots where they have real problems but the hope is is that it gets spread among the general population so it becomes quite literally the privacy and security level that doesn't have Warren Buffett might be right that it might fail as a currency but the technology has really inspired some new innovations that's right so so it's essentially a distributed it's not a walled garden it's a distributed black box that's what you're describing you never exposed the data that's right you don't need a trusted third party that's getting attacked that's right nobody has to stamp that this is correct because the moment you do that first of all other people are controlling you and the second thing is is there a point of attack so it gets rid of that trusted third party centralization makes it distributed you can have again a bunch of bad actors in the system it doesn't hurt it's peer-to-peer where you have to have 51% of the people being bad before things really go bad how do you solve the problem of performing calculations on encrypted data because they're classic techniques actually it's been known for over 20 years how to do that but there are two pieces missing one piece is it wasn't efficient it scaled really poorly and what we did is came up with a way of solving that by making it essentially multi scale so it's it's a distributed solution for this that brings the cost down to something that's linear in the number of elements which is a real change and the second is keeping track of all of the stuff in a way that's secure it's fine to have an addition that's secure you know but if that isn't better than a whole system that secure it doesn't do you any good and so that's where the blockchain comes in it gives you this accounting mechanism for knowing which computations are being done who has access to them what the keys are things like that so Google glass was sort of incubated in MIT Media labs and well before yeah my group you go right in your group and yeah it didn't take off me because it's just not cool it looks kind of goofy but now enigma has a lot of potential solving a huge problem are you can open-source it what do you yeah it's an open-source system we hope to get more people involved in it and right now we're looking for some test beds to show how well it works and make sure that all the things are dotted and crossed and so forth and where can people learn more about it oh go to a nygma dot media dot mit.edu all right sandy we're way over our time so obviously you were interesting so thanks keep right there buddy Paul and I we right back with our next guest we're live from see this is the cube right back [Music]

>> live from Las Vegas, Nevada. It's the Cube covering E M C. World 2015. Brought to you by E. M. C Brocade and D. C. >> You're watching E m C World Live here on the Q. Looking Angles Flagship program. We go out to the event they start the season noise. I'm John Kerry of my coast Dude. Minutemen. Our next guest is a cube. Alumni have been on a cute many times before and back again. 2011 John Thompson is the CEO of Virtual Instruments and also the chairman of a company called Microsoft. Um, welcome back to the cubes. Nice to be about Great to see you in the A M World week didn't interview on Virtual Instruments with CEO, and we were really riffing on this whole idea of data instrumentation. And we it was really free Internet of things. So give us the update. What's going on with virtue Instruments here? I see Microsoft has a conference going on ignite. Even though you're chairman. The board. You're also the CEO of Virgin Instruments and you're gonna do some business here. What's going on? What business are you doing? Well, this is an important conference for virtual instruments. DMC is one of our strongest go to market partners, and candidly, many of their customers are virtual instruments customers. And so it's an opportunity for me to be here to spend time with our partners and our customers in one venue. Our business is doing quite well. We just had a very, very strong March quarter, which is always a little bit of a down quarter for most tech companies. But we were up 27 28% year over year for the calendar. Q. One so we feel pretty good about that. This is the most important quarter of the year, though, which is always the case in Texas. So we're hoping that we can knock the ball out of the park again this quarter. We launched our virtual wisdom for platform in the spring of last year, and it is gaining tremendous traction, certainly in the U. S. And around the globe. It is all about health utilization in performance of the infrastructure, and we've defined a model where you can look at an application inside that infrastructure, monitor its performance and its availability, and that idea is so critical in a world where everything will someday live in the cloud and will you will want to assure a level of performance and, quite frankly, a level of responsiveness to customers as they come on says it's a reset to share the folks out. This is not a new concept for you guys. We talked about this years ago. It's not like you woke up one boys. Hey, things is trendy. This data center in fermentation takes us quickly back. Where did it come from? Was an itch to scratch. What original product as you have and how does that morph into today's crazy, data driven world, where dash boring riel time is actually competitive advantage and now table stakes? Well, if you were to go back to the genesis of virtual instruments, we started as a small technology investment inside a larger company called Venice are that was trying to solve the inevitable performance problem in the fibre channel world. And as the market crashed in 7 4008 the team at Venice or had to decide, how are we gonna clean up our portfolio? And the result waas. They sold off the assets? Were we, in fact, created virtual instruments. So a small group of investors, led by Jim Davidson from Silver Lake and Michael Marks from Riverwood, helped to fund the original investment and virtual instruments. We've been at it now for about seven years. We have clearly evolved the product quite a bit since then, and we've captured a number of very, very strong venture capital investment so long away as we made the choice. That said, we need the shift from being a fiber channel company to be in an infrastructure performance management company because the inevitable movement to the cloud will drive an opportunity for us. Yeah, and you're a senior executive private equity. I mean, this is pretty much a big bet. There's a lot of money involved with private equity. So it wasn't like you're, like, throw in the Silicon Valley startup together. It was really like, Okay, there's big money behind it. Well, you guys, did you see it turning out this way? What? What was learning that have been magnified from that trajectory? Well, I think in the early days we thought the path was a little different than what we've actually followed. We thought the path waas that the fibre channel World was so big and it needed better visibility. This would in fact give the world better visibility in the fibre channel space. What we have observed, however, is that the entire infrastructure has become Maur and more opaque, and therefore you need to not just drive visibility in the storage layer, but across the entire converge staff. And so the platform that we have evolved is all about supporting this converged platform not just fibre Channel, but filed a storage not just VM where, but all virtualized server environments. And we believe that's, ah, multibillion dollar market. And that's why we were able to attract both private equity initially and venture capital later as we built out of product. It's interesting. You see some of these ideas come a come around full circle. I'm curious. Just in industry trend. Your your opinion on Veritas, you know, being spun out. It's it's It's both sad for me personally, but I think it speaks to how difficult the cultural integration might have been between the two companies. While I really had a vision back in the old four or five days of security and backup coming together, I think It was a really, really difficult thing to make happen in the context of what has evolved at Samantha, so the fact that they've chosen to spend it out, it's perhaps a little disappointing for me personally, but not a surprise. So what is your vision of security today? My understanding, You advise, even sit on the board of ah Lumia company. We've way we've talked to the company really, what's happening in security. So if you think about how security has evolved once upon a time, it was about protecting the device candidly and a cloud based world. It's going to be more about protecting the workloads as they move around. And that's one of the elements of what a lumia does, in fact, provide. Furthermore, I have believed for a very, very long time that as time goes on, security will have to get closer and closer to that which is deemed to be most critical. In other words, you can't protect all of the data. You can't protect all of the instances that air on the Web, but you can identify those that are most critical and therefore need a level of protection beyond what the standard would be. And so my belief is that companies like a Loom EO and others that will evolve will get closer to the workload, and we'll get closer to the data that's most critical. And so data classification and things of that nature will become much, much more important than they have. You're an investor in aluminum. You on the board are okay, so you're on the board of director and investor. We covered their launch. Great company. The cracking is low slides, as as Alan Cohen would say, they phenomenal funding round gone from stealth two years and now the big $100,000,000 really funding round massive guerrilla marketing. Still going on at the air say, was kind of clever. The perimeter lists cloud is a factor. And what tech enabled? Do you see the key thing? Alan Cohen described it as 1000 foot shoulds soldiers protecting assets because there's no more perimeter that no front door any more. What is the technology driver for that? Well, the whole idea behind the loom Eo, is to have a what I would call a portable policy enforcement engine that can move as the workload moves around the cloud. So policy management, security policy management has been a very, very difficult task for most large enterprises. So if I can define security policies for every server of where workloads can go to and from on that server and make sure that nothing violates that policy, hence I enforce it routinely. Oh, I can change. The dynamic of House security gets delivered in a cloud based world because no workload is gonna run in any single place on a cloud world. That workload is gonna move to where there is capacity to handle. I gotta ask you because we have a lot of people out there that follow tech business test tech athletes that you are. But also, you're a senior executive who has a lot of experience, and we could be presenting to Harvard Business School, Stanford Business School. I want to get your kind of business mind out to the audience. And that is, is that as an executive who's seen the big, big companies, the big battleships, the big aircraft carriers, from the IBM days to the M in a world of the nineties and the transformation of the Internet now in a complete shift, an inflection point with things like a Loom, Eo and Cloud and and Virtual instruments and the new Microsoft and the Silicon Angles and the crowd shots out there, What do you advise managers out there to operate from a management perspective. I mean, there's a classic business school numbers quarter on the challenges of going public, managing enormous dynamic technology change. So every theater is kind of exploding the technology theater, the business theater, the social theater as an executive. How would you advise someone as a CEO are rising growing startup how they should stitch themselves together? If you can draw in from previous experiences? Or is there a pattern recognition you can share? Well, it's It's never simply about the numbers, while the numbers air always important and the numbers will always be the underpinning of evaluation or whatever. In reality, it's about having a team that is able to rally around a leader with vision that says, Here's how we're gonna change the world. Here's how we're going to make an impact as this industry goes through, the natural inflection points that it always does. And if you look at what has occurred in this industry about every 8 to 10 years, something significant changes. And so a company that may have missed an opportunity six or eight years ago has another shot at it six or eight years later because of the inflection points that we go through. So it's important for the leader of a company toe. Believe that I can change the world based upon the industry that I'm a part of and have a compelling point of view about what changing the world means for that company and that team. And if you could get the team together around that idea, what about cloud and big data and mobile thes dynamics that you would? If someone just wants a roadmap for navigation or what decked me to go after, What would you say? What do you say? You know, get it all in the cloud or go poke at a duel are indeed new, agile management. Things were happening like, Well, I think it starts with what are the court confidence is that you have as a team or company, so you can't say g I'm gonna go and do cloud and oh, by the way, I have no confidence in the management infrastructure for large enterprises or I'm gonna go do mobile and I really have no experience in the mobile space whatsoever. So core competencies matter and leveraging the core strengths of the company matters now. Oftentimes, what companies will do its supplement their core strengths through M, and we'll go out and acquire something and bolted on the hard part of M and A, which is what we were referencing early around. Veritas is Can you integrate it? Can you really make it work after you bought it? Buying it is the easy part. Generating it and making it work is the really, really tough part. And arguably we didn't do is good a job as I would have liked with Samantha. And so basically you're saying is if you as an executive, you want to look at the winds of change for hand, get the sails up, if you will, to confuse the metaphor and get into that slipstream so you can actually drive and you can't. Being an amateur, you gotta actually have some competency. You have a leverage point. Look, one of the great things about this industry is it doesn't take some brilliant business leader to create a new idea. I mean, no one ever would have viewed Zucker Bird as a business leader or some of the young, really, really powerful CEO built phenomenal, phenomenal companies in this industry. But they had an idea, and they were able to create a team around that idea and go change the world. And that's what's so powerful about this industry that I've had the pleasure to be a part of for 40 some years. Yes. Speaking about CEOs that changed the industry, John Chambers announced that he's stepping aside from the CEO role this morning. So you know when you look back, you know John was one of the four horsemen of the Internet era and 20 years there. Chuck Robbins is coming in. He's been there since C. I think 97. What do you think of that move? And you know what's happening with Cisco in leadership for the big companies? Well, John's a really, really good friend, and I admire him for all of what he's done and Cisco and I wish him well as he makes this transition. Interestingly enough, the transition is to executive chairman, with the new CEO stepping in so What that says is that John plans that have a little more involvement, perhaps in what goes on in the company. Then I do it. Microsoft. My title is not executive chairman of Microsoft. Thank goodness I wouldn't want it to. But it also speaks to the fact that John spend the CEO. It just goes since 1995 like that. So he has an enormous amount of knowledge and insight about the company industry, its customers, partners, culture, all of those culture. And so all of those things will be valuable and important to the new CEO. And I think him stepping into that role is trying to leverage that. Cenedella came in and made his voice heard really instantly. And Microsoft has been a great company to watch, you know, since Auntie's came on board, you know, just Cisco need to make some bold moves or are they pretty stable where they are is kind of the dominant? That's a better question for John and CEO. I think what is clear is that all all companies, at some point after find a way to redefine and Sasha's role at Microsoft. He has redefined Microsoft as a cloud first mobile first, and that's all about recognizing. Were acts are gonna run on what devices and what kind of service is. And that redefinition, I think, is important for any industry leader, regardless of how long you just brought us to the tagline of this show, M C World is redefined. So any comments, How's the emcee doing it? Redefining themselves, I think the emcees a terrific company. Joe's a longtime friend of mine. I mean, I know Joe forever on. It's been amazing to see how it's gone from being a storage company to this federation of companies that have capabilities that are so broad and so diverse. I hope they don't get pushed to do something that isn't in the best interest of customers, but maybe enamored by some investors. The angel of the activist pressure. Yeah, that's always and that that's unfortunate, but I think they have a nice balance now. They have a huge installed base and this competitive pressure so they gotta push that. But I have to. I have to ask, is that? You know, I was getting some tweets earlier about Microsoft, and I know you, you know, you're only chairman of the board executive chairman. But you were involved in a very historic where you were on the executive search committee for the CEO replacement for Steve Balmer, of which they chose sake. Nutella Cube alumni We interviewed at the XL Partners Innovation Summit in Stanford that that's about culture. That's about transitions, about inflection points. And Sister used to mention Cisco. Not similar situation. But Microsoft is the legend company. I think the computer industry like an apple. Microsoft was their big part of the computer revolution. Big seismic changing. You were right there. Just share some color on what that whole experience like for you personally. And if you can share any insights to the audience, I know it's a sense might be sensitive topic. But what's that like? And, you know, the outcomes. Looking good. As he says, he's doing great. What? What can you share? Well, I think it would be fair to say that it was a more consuming process than I ever thought it would be. I went from being a new board member of Microsoft in the spring of 2012 to be in the lead independent director in the fall of 2012 to leading the search starting in the summer of 2013. I mean, I never could have imagine my involvement there changing that dramatically, Nor would I have imagined that searching for a CEO of a company would consume 80% of my time when I was also running a company. So for a period of about six months, it's like athlete right there. I had two full time jobs where I was on the phone all day, every day, trying to get something done for the eye and on the phone all day, every day, trying to get something done for Microsoft as well. It was, I would also have to say and incredibly incredibly exhilarating experience. I talked to some phenomenal leaders from around the world way had hard, long look anywhere we wanted at any CEO or candidate that we wanted, and we settled on someone who was a Tech athlete. We believe that the company was at a really, really important inflection point where over the course of the next 12 to 24 months, we're gonna have to make some really, really important technology decisions that would set the course from Microsoft for many, many years to come. And so, while there was much speculation in the press about this person or that person, and what a great business leader, that person waas What we, as a board concluded, was that what our company needed at that moment in time was a true technology visionary who could drive the strategy of the company because it had assets. I mean, they had a whole search thing that they quote missed on paper. But they had, like you said, they could come back at it again with being the subtle art of assets. Here, Cloud was built out. Everything was kind of like in place for that tech athlete on. And I think soccer has done an amazing job. I'm quite proud of them. I'm happy toe say I have some small part in that, but I'm or happy for the way he has executed in the job. I mean, he steps into the job with a level of humility but confidence that is so important for the CEO of a company of that size, and to maintain that cultural DNA because you have one of most competitive companies on the planet. A question to the point where they had to be almost broken up by the DOJ from the Bill Gates kind of DNA and bomber to continued, be competitive, live in this new era. Really tough challenge. Well, he's he's a bright guy. He, as I said, has great humility and has the respect of the team. And it's been interesting to see the internal shift behavior and attitude with a guy who I jokingly say he has two ears and one mouth and he uses them proportionately. And that's a very important lesson for someone trying to transform a company. You must listen more than you talk, and I think he does a great job. We try to do that. The Cuban we talk all day long way do interviews, but I gotta ask you back to virtual instruments. Okay, gets a good business going on with the emcee Goto partner about the anywhere in the federation of a partner with you as well, say, Is it all Federation? It's mostly through E M. C. And while the em wears of small V I customer, we don't do much with them on the go to market side on the go to market side. We rely more heavily, if you will. On AMC, that partnership has evolved. I mean, from the early days it was viewed as G. We're not sure who you are and what you do and whether or not you're competitive with us today, we have very, very common go to market processes around the globe. I'd love to see them stronger. I just left to cheese office in San GI Joe. We could doom. Or but when it's when it's all said and gone, this is one of the strongest go to market partners we have that's also shared the folks out there what they might not know about insurance, that you could share their hearing this now for the first time and working on the radar future of your business, your division product, extensive bility. Future of Internet of everything. Future Internet of things, whatever you want to put on a big data and the data center now, and the migration of cloud is all here. So at our core, we believe that every large enterprise will inevitably have some, if not all, of their work in the class. So the question is, how do you help them manage that inevitable migration to the cloud by de risking the migration and ensuring appropriate infrastructure performance management. Once you arrive there, we focus on the largest enterprises in the world. So unlike many tech startups, that will start with a midsize or small company and work their way up well, the largest banks in the universe, the largest insurance companies in the universe, the largest of every sector in the universe is a customer of the eye or will be someday. And that notion of solving very, very complex problems is something that our team has great pride in our ability to do that I want to get philosophical with you. You can for second kind of sit back and, you know, have a glass of wine and kind of talk to the younger generation out there with all your history on experience. How great of an opportunity for the young entrepreneurs and CEOs out there right now. Given the the confluence of the shift and inflection points, can you compare this to an error? We on the Cubes say It's like the PC revolution bundled in with the clients, terrorists and the Internet. All kind of at once do you agree? And would you say it? Guys, you have an amazing opportunity. Well, I think example of just how crazy it is. I I was driving to the airport this morning, and what I thought would be our long drive took two hours. Because there's so many people on the road in the Valley going to work. There's just so much going on in Silicon Valley right now. It is amazing. And for anyone who has a really, really great idea, the thing that's equally amazing is there's lots of capital out there to support those ideas. And so I would encourage any young entrepreneur who has a thought socialize your thought, Get it out so people can learn about it and then go get money to support and back that though. There's lots of money out there for good ideas. Lots of money. \ewelry officially taking the time coming out. Your busy schedule. CEO Virtual Instruments, chairman of Microsoft Here inside the Cube tech athletes is a big deal. You are one of the great great. Always have a conversation with you, sharing your thanks so much. Just the Cuban. Be right back with more insights and the signal from the noise at this short break