>> Narrator: theCUBE's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (upbeat music) >> Hey, welcome back to the Fira in Barcelona. My name is Dave Vellante. I'm here with David Nicholson, day four of MWC '23. Show's winding down a little bit, but it's still pretty packed here. Lot of innovation, planes, trains, automobiles, and we're talking 5G all week, private networks, connected breweries. It's super exciting. Really happy to have Warren Jackson here as the Edge Gateway Product Technologist at Dell Technologies, and Scott Waller, the CTO of the 5G Open Innovation Lab. Folks, welcome to theCUBE. >> Good to be here. >> Really interesting stories that we're going to talk about. Let's start, Scott, with you, what is the Open Innovation Lab? >> So it was hatched three years ago. Ideated about a bunch of guys from Microsoft who ran startup ventures program, started the developers program over at Microsoft, if you're familiar with MSDN. And they came three years ago and said, how does CSPs working with someone like T-Mobile who's in our backyard, I'm from Seattle. How do they monetize the edge? You need a developer ecosystem of applications and use cases. That's always been the thing. The carriers are building the networks, but where's the ecosystem of startups? So we built a startup ecosystem that is sponsored by partners, Dell being one sponsor, Intel, Microsoft, VMware, Aspirant, you name it. The enterprise folks who are also in the connectivity business. And with that, we're not like a Y Combinator or a Techstars where it's investment first and it's all about funding. It's all about getting introductions from a startup who might have a VR or AI type of application or observability for 5G slicing, and bring that in front of the Microsoft's of the world, or the Intel's and the Dell's of the world that they might not have the capabilities to do it because they're still a small little startup with an MVP. So we really incubate. We're the connectors and build a network. We've had 101 startups over the last three years. They've raised over a billion dollars. And it's really valuable to our partners like T-Mobile and Dell, et cetera, where we're bringing in folks like Expedo and GenXComm and Firecell. Start up private companies that are around here they were cohorts from our program in the past. >> That's awesome because I've often, I mean, I've seen Dell get into this business and I'm like, wow, they've done a really good job of finding these guys. I wonder what the pipeline is. >> We're trying to create the pipeline for the entire industry, whether it's 5G on the edge for the CSPs, or it's for private enterprise networks. >> Warren, what's this cool little thing you got here? >> Yeah, so this is very unique in the Dell portfolio. So when people think of Dell, they think of servers laptops, et cetera. But what this does is it's designed to be deployed at the edge in harsh environments and it allows customers to do analytics, data collection at the edge. And what's unique about it is it's got an extended temperature range. There's no fan in this and there's lots of ports on it for data ingestion. So this is a smaller box Edge Gateway 3200. This is the product that we're using in the brewery. And then we have a bigger brother of this, the Edge Gateway 5200. So the value of it, you can scale depending on what your edge compute requirements are at the edge. >> So tell us about the brewery story. And you covered it, I know you were in the Dell booth, but it's basically an analog brewery. They're taking measurements and temperatures and then writing it down and then entering it in and somebody from your company saw it and said, "We can help you with this problem." Explain the story. >> Yeah, so Scott and I did a walkthrough of the brewery back in November timeframe. >> It's in Framingham, Mass. >> Framingham, Mass, correct. And basically, we talked to him, and we said, what keeps you guys up at night? What's a problem that we can solve? Very simple, a kind of a lower budget, didn't have a lot money to spend on it, but what problem can we solve that will realize great benefit for you? So we looked at their fermentation process, which was completely analog. Somebody was walking around with a clipboard looking at analog gauges. And what we did is we digitized that process. So what this did for them rather than being completely reactive, and by the time they realized there was something going wrong with the fermentation process, it's too late. A batch of scrap. This allowed them to be proactive. So anytime, anywhere on the tablet or a phone, they can see if that fermentation process is going out of range and do something about it before the batch gets scrapped. >> Okay. Amazing. And Scott, you got a picture of this workflow here? >> Yeah, actually this is the final product. >> Explain that. >> As Warren mentioned, the data is actually residing in the industrial side of the network So we wanted to keep the IT/OT separation, which is critical on the factory floor. And so all the data is brought in from the sensors via digital connection once it's converted and into the edge gateway. Then there's a snapshot of it using Telit deviceWISE, their dashboarding application, that is decoding all the digital readings, putting them in a nice dashboard. And then when we gave them, we realized another problem was they're using cheap little Chromebooks that they spill beer on once a week and throw them out. That's why they bought the cheap ones 'cause they go through them so fast. So we got a Dell Latitude Rugged notebook. This is a brand new tablet, but they have the dashboarding software. So no matter if they're out there on the floor, but because the data resides there on the factory they have access to be able to change the parameters. This one's in the maturation cycle. This one's in the crashing cycle where they're bringing the temperature back down, stopping the fermentation process, getting it ready to go to the canning side of the house. >> And they're doing all that from this dashboard. >> They're doing all from the dashboard. They also have a giant screen that we put up there that in the floor instead of walking a hundred yards back behind a whole bunch of machinery equipment from a safety perspective, now they just look up on the screen and go, "Oh, that's red. That's out of range." They're actually doing a bunch of cleaning and a bunch of other things right now, too. So this is real time from Boston. >> Dave: Oh okay. >> Scott: This is actually real time from Boston. >> I'm no hop master, but I'm looking at these things flashing at me and I'm thinking something's wrong with my beer. >> We literally just lit this up last week. So we're still tweaking a few things, but they're also learning around. This is a new capability they never had. Oh, we have the ability to alert and monitor at different processes with different batches, different brews, different yeast types. Then now they're also training and learning. And we're going to turn that into eventually a product that other breweries might be able to use. >> So back to the kind of nuts and bolts of the system. The device that you have here has essentially wifi antennas on the back. >> Warren: Correct. >> Pull that up again if you would, please. >> Now I've seen this, just so people are clear, there are also paddle 5G antennas that go on the other side. >> Correct. >> That's sort of the connection from the 5G network that then gets transmogrified, technical term guys, into wifi so the devices that are physically connected to the brew vats, don't know what they're called. >> Fermentation tanks. >> Fermentation tanks, thank you. Those are wifi. That's a wifi signal that's going into this. Is that correct? >> Scott: No. >> No, it's not. >> It's a hard wire. >> Okay, okay. >> But, you're right. This particular gateway. >> It could be wifi if it's hard wire. >> It could be, yes. Could be any technology really. >> This particular gateway is not outfitted with 5G, but something that was very important in this application was to isolate the IT network, which is on wifi and physically connected from the OT network, which is the 5G connection. So we're sending the data directly from the gateway up to the cloud. The two partners that we worked with on this project were ifm, big sensor manufacturer that actually did the wired sensors into an industrial network called IO-Link. So they're physically wired into the gateway and then in the gateway we have a solution from our partner Telit that has deviceWISE software that actually takes the data in, runs the analytics on it, the logic, and then visualizes that data locally on those panels and also up to their cloud, which is what we're looking at. So they can look at it locally, they're in the plant and then up in the cloud on a phone or a tablet, whatever, when they're at home. >> We're talking about a small business here. I don't know how many employees they have, but it's not thousands. And I love that you're talking about an IT network and an OT network. And so they wanted, it is very common when we talk about industrial internet of things use cases, but we're talking about a tiny business here. >> Warren: Correct. >> They wanted to separate those networks because of cost, because of contention. Explain why. >> Yeah, just because, I mean, they're running their ERP system, their payroll, all of their kind of the way they run their business on their IT network and you don't want to have the same traffic out on the factory floor on that network, so it was pretty important. And the other thing is we really, one of the things that we didn't want to do in this project is interrupt their production process at all. So we installed this entire system in two days. They didn't have to shut down, they didn't have to stop. We didn't have to interrupt their process at all. It was like we were invisible there and we spun the thing up and within two days, very simple, easy, but tremendous value for their business. >> Talk about new markets here. I mean, it's like any company that's analog that needs to go digital. It's like 99% of the companies on the planet. What are you guys seeing out there in terms of the types of examples beyond breweries? >> Yeah, I could talk to that. So I spent a lot of time over the last couple years running my own little IoT company and a lot of it being in agriculture. So like in Washington state, 70% of the world's hops is actually grown in Washington state. It's my hometown. But in the Ag producing regions, there's lack of connectivity. So there's interest in private networks because the carriers aren't necessarily deploying it. But because we have the vast amount of hops there's a lot of IPAs, a lot of hoppy IPAs that come out of Seattle. And with that, there's a ton of craft breweries that are about the same size, some are a little larger. Anheuser-Busch and InBev and Heineken they've got great IoT platforms. They've done it. They're mass scale, they have to digitize. But the smaller shops, they don't, when we talk about IT/OT separation, they're not aware of that. They think it's just, I get local broadband and I get wifi and one hotspot inside my facility and it works. So a little bit of it was the education. I have got years in IT/OT security in my background so that education and we come forward with a solution that actually does that for them. And now they're aware of it. So now when they're asking questions of other vendors that are trying to sell them some type of solution, they're inherently aware of what should be done so they're not vulnerable to ransomware attacks, et cetera. So it's known as the Purdue Model. >> Well, what should they do? >> We came in and keep it completely separated and educated them because in the end too we'll build a design guide and a starter kit out of this that other brewers can use. Because I've toured dozens of breweries in Washington, the exact same scenario, analog gauges, analog process, very manual. And in the end, when you ask the brewer, what do they want out of this? It keeps them up at night because if the temperature goes out of range, because the chiller fails, >> They ruined. >> That's $30,000 lost in beer. That's a lot to a small business. However, it's also once they start digitizing the data and to Warren's point, it's read-only. We're not changing any of the process. We augmented on top of their existing systems. We didn't change their process. But now they have the ability to look at the data and see batch to batch consistency. Quality doesn't always mean best, it means consistency from batch to batch. Every beer from exhibit A from yesterday to two months from now of the same style of beer should be the same taste, flavor, boldness, et cetera. This is giving them the insights on it. >> It's like St. Louis Buds, when we were kids. We would buy the St. Louis Buds 'cause they tasted better than the Merrimack Buds. And then Budweiser made them all the same. >> Must be an East coast thing. >> It's an old guy thing, Dave. You weren't born yet. >> I was in high school. Yeah, I was in high school. >> We like the hops. >> We weren't 21. Do me a favor, clarify OT versus IT. It's something we talk about all the time, but not everyone's familiar with that separation. Define OT for me. >> It's really the factory floor. You got IT systems that are ERP systems, billing, you're getting your emails, stuff like that. Where the ransomware usually gets infected in. The OT side is the industrial control network. >> David: What's the 'O' stand for? >> Operation. >> David: Operation? >> Yeah, the operations side. >> 'Cause some people will think objects 'cause we think internet of things. >> The industrial operations, think of it that way. >> But in a sense those are things that are connected. >> And you think of that as they are the safety systems as well. So a machine, if someone doesn't push the stop button, you'd think if there's a lot of traffic on that network, it isn't guaranteed that that stop button actually stops that blade from coming down, someone's going to lose their arm. So it's very tied to safety, reliability, low latency. It is crafted in design that it never touches the internet inherently without having to go through a security gateway which is what we did. >> You mentioned the large companies like InBev, et cetera. You're saying they're already there. Are they not part of your target market? Or are there ways that you can help them? Is this really more of a small to mid-size company? >> For this particular solution, I think so, yeah. Because the cost to entry is low. I mean, you talk about InBev, they have millions of dollars of budgets to spend on OT. So they're completely automated from top to bottom. But these little craft brewers, which they're everywhere in the US. Vermont, Washington state, they're completely manual. A lot of these guys just started in their garage. And they just scaled up and they got a cult kind of following around their beers. One thing that we found here this week, when you talk around edge and 5G and beer, those things get people excited. In our booth we're serving beer, and all these kind of topics, it brings people together. >> And it lets the little guy compete more effectively with the big giants. >> Correct. >> And how do you do more with less as the little guy is kind of the big thing and to Warren's point, we have folks come up and say, "Great, this is for beer, but what about wine? What about the fermentation process of wine?" Same materials in the end. A vessel of some sort, maybe it's stainless steel. The clamps are the same, the sensors are the same. The parameters like temperature are key in any type of fermentation. We had someone talking about olive oil and using that. It's the same sanitary beverage style equipment. We grabbed sensors that were off the shelf and then we integrated them in and used the set of platforms that we could. How do we rapidly enable these guys at the lowest possible cost with stuff that's at the shelf. And there's four different companies in the solution. >> We were having a conversation with T-Mobile a little earlier and she mentioned the idea of this sounding scary. And this is a great example of showing that in fact, at a relatively small scale, this technology makes a lot of sense. So from that perspective, of course you can implement private 5G networks at an industrial scale with tens of millions of dollars of investment. But what about all of the other things below? And that seems to be a perfect example. >> Yeah, correct. And it's one of the things with the gateway and having flexibility the way Dell did a great job of putting really good modems in it. It had a wide spectrum range of what bands they support. So being able to say, at a larger facility, I mean, if Heineken wants to deploy something like this, oh, heck yeah, they probably could do it. And they might have a private 5G network, but let's say T-Mobile offers a private offering on their public via a slice. It's easy to connect that radio to it. You just change the sims. >> Is that how the CSPs fit here? How are they monetized? >> Yeah, correct. So one of our partners is T-Mobile and so we're working with them. We've got other telco partners that are coming on board in our lab. And so we'll do the same thing. We're going to take this back and put it in the lab and offer it up as others because the baseline building blocks or Lego blocks per se can be used in a bunch of different industries. It's really that starter point of giving folks the idea of what's possible. >> So small manufacturing, agriculture you mentioned, any other sort of use cases we should tune into? >> I think it's environmental monitoring, all of that stuff, I see it in IoT deployments all over the world. Just the simple starter kits 'cause a farmer doesn't want to get sold a solution, a platform, where he's got to hire a bunch of coders and partner with the big carriers. He just wants something that works. >> Another use case that we see a lot, a high cost in a lot of these places is the cost of energy. And a lot of companies don't know what they're spending on electricity. So a very simple energy monitoring system like that, it's a really good ROI. I'm going to spend five or $10,000 on a system like this, but I'm going to save $20,000 over a year 'cause I'm able to see, have visibility into that data. That's a lot of what this story's about, just giving visibility into the process. >> It's very cool, and like you said, it gets people excited. Is it a big market? How do you size it? Is it a big TAM? >> Yeah, so one thing that Dell brings to the table in this space is people are buying their laptops, their servers and whatnot from Dell and companies are comfortable in doing business with Dell because of our model direct to customer and whatnot. So our ability to bring a device like this to the OT space and have them have that same user experience they have with laptops and our client products in a ruggedized solution like this and bring a lot of partners to the table makes it easy for our customers to implement this across all kinds of industries. >> So we're talking to billions, tens of billions. Do we know how big this market is? What's the TAM? I mean, come on, you work for Dell. You have to do a TAM analysis. >> Yes, no, yeah. I mean, it really is in the billions. The market is huge for this one. I think we just tapped into it. We're kind of focused in on the brewery piece of it and the liquor piece of it, but the possibilities are endless. >> Yeah, that's tip of the spear. Guys, great story. >> It's scalable. I think the biggest thing, just my final feedback is working and partnering with Dell is we got something as small as this edge gateway that I can run a Packet Core on and run a 5G standalone node and then have one of the small little 5G radios out there. And I've got these deployed in a farm. Give the farmer an idea of what's possible, give him a unit on his tractor, and now he can do something that, we're providing connectivity he had never had before. But as we scale up, we've got the big brother to this. When we scale up from that, we got the telco size units that we can put. So it's very scalable. It's just a great suite of offerings. >> Yeah, outstanding. Guys, thanks for sharing the story. Great to have you on theCUBE. >> Good to be with you today. >> Stop by for beer later. >> You know it. All right, Dave Vellante for Dave Nicholson and the entire CUBE team, we're here live at the Fira in Barcelona MWC '23 day four. Keep it right there. (upbeat music)

(light music) >> Narrator: theCUBE's live coverage is made possible by funding from Dell Technologies. Creating technologies that drive human progress. (upbeat music) >> Welcome back to Spain everyone. Lisa Martin here with theCUBE Dave Vellante, my co-host for the next four days. We're live in Barcelona, covering MWC23. This is only day one, but I'll tell you the theme of this conference this year is velocity. And I don't know about you Dave, but this day is flying by already. This is ecosystem day. We're going to have a great discussion on the ecosystem next. >> Well we're seeing the disaggregation of the hardened telco stack, and that necessitates an ecosystem open- we're going to talk about Open RAN, we've been talking about even leading up to the show. It's a critical technology enabler and it's compulsory to have an ecosystem to support that. >> Absolutely compulsory. We've got two guests here joining us, Gautam Bhagra, Vice President partnerships at Dell, and Scott Walker, Vice President of global Telco ecosystem at Wind River. Guys, welcome to the program. >> Nice to be here. >> Thanks For having us. >> Thanks for having us. >> So you've got some news, this is day one of the conference, there's some news, Gautam, and let's start with you, unpack it. >> Yeah, well there's a lot of news, as you know, on Dell World. One of the things we are very excited to announce today is the launch of the Open Telecom Ecosystems Community. I think Dave, as you mentioned, getting into an Open RAN world is a challenge. And we know some of the challenges that our customers face. To help solve for those challenges, Dell wants to work with like-minded partners and customers to build innovative solutions, and join go-to-market. So we are launching that today. Wind River is one of our flagship partners for that, and I'm excited to be here to talk about that as well. >> Can you guys talk a little bit about the partnership, maybe a little bit about Wind River so the audience gets that context? >> Sure, absolutely, and the theme of the show, Velocity, is what this partnership is all about. We create velocity for operators if they want to adopt Open RAN, right? We simplify it. Wind River as a company has been around for 40 years. We were part of Intel at one point, and now we're independent, owned by a company called Aptiv. And with that we get another round of investment to help continue our acceleration into this market. So, the Dell partnership is about, like I said, velocity, accelerating the adoption. When we talk to operators, they have told us there are many roadblocks that they face, right? Like systems integration, operating at scale. 'Cause when you buy a traditional radio access network solution from a single supplier, it's very easy. It's works, it's been tested. When you break these components apart and disaggregate 'em, as we talked about David, it creates integration points and support issues, right? And what Dell and Wind River have done together is created a cloud infrastructure solution that could host a variety of RAN workloads, and essentially create a two layer cake. What we're, overall, what we're trying to do is create a traditional RAN experience, with the innovation agility and flexibility of Open RAN. And that's really what this partnership does. >> So these work, this workload innovation is interesting to me because you've got now developers, you know, the, you know, what's the telco developer look like, you know, is to be defined, right? I mean it's like this white sheet of paper that can create all this innovation. And to do that, you've got to have, as I said earlier, an ecosystem. But you've got now, I'm interested in your Open RAN agenda and how you see that sort of maturity model taking place. 'Cause today, you got disruptors that are going to lean right in say "Hey, yeah, that's great." The traditional carriers, they have to have a, you know, they have to migrate, they have to have a hybrid world. We know that takes time. So what's that look like in the marketplace today? >> Yeah, so I mean, I can start, right? So from a Dell's perspective, what we see in the market is yes, there is a drive towards, everyone understands the benefits of being open, right? There's the agility piece, the innovation piece. That's a no-brainer. The question is how do we get there? And I think that's where partnerships become critical to get there, right? So we've been working with partners like Wind River to build solutions that make it easier for customers to start adopting some of the foundational elements of an open network. The, one of the purposes in the agenda of building this community is to bring like-minded developers, like you said like we want those guys to come and work with the customers to create new solutions, and come up with something creative, which no one's even thought about, that accelerates your option even quicker, right? So that's exactly what we want to do as well. And that's one of the reasons why we launched the community. >> Yeah, and what we find with a lot of carriers, they are used to buying, like I said, traditional RAN solutions which are provided from a single provider like Erickson or Nokia and others, right? And we break this apart, and you cloudify that network infrastructure, there's usually a skills gap we see at the operator level, right? And so from a developer standpoint, they struggle with having the expertise in order to execute on that. Wind River helps them, working with companies like Dell, simplify that bottom portion of the stack, the infrastructure stack. So, and we lifecycle manage it, we test- we're continually testing it, and integrating it, so that the operator doesn't have to do that. In addition to that, wind River also has a history and legacy of working with different RAN vendors, both disruptors like Mavenir and Parallel Wireless, as well as traditional RAN providers like Samsung, Erickson, and others soon to be announced. So what we're doing on the northbound side is making it easy by integrating that, and on the southbound side with Dell, so that again, instead of four or five solutions that you need to put together, it's simply two. >> And you think about today how we- how you consume telco services are like there's these fixed blocks of services that you can buy, that has to change. It's more like the, the app stores. It's got to be an open marketplace, and that's where the innovation's going to come in, you know, from the developers, you know, top down maybe. I don't know, how do you see that maturity model evolving? People want to know how long it's going to take. So many questions, when will Open RAN be as reliable. Does it even have to be? You know, so many interesting dynamics going on. >> Yeah, and I think that's something we at Dell are also trying to find out, right? So we have been doing a lot of good work here to help our customers move in that direction. The work with Dish is an example of that. But I think we do understand the challenges as well in terms of getting, adopting the technologies, and adopting the innovation that's being driven by Open. So one of the agendas that we have as a company this year is to work with the community to drive this a lot further, right? We want to have customers adopt the technology more broadly with the tier one, tier two telcos globally. And our sales organizations are going to be working together with Wind Rivers to figure out who's the right set of customers to have these conversations with, so we can drop, drive, start driving this agenda a lot quicker than what we've seen historically. >> And where are you having those customer conversations? Is that at the operator level, is it higher, is it both? >> Well, all operators are deploying 5G in preparation for 6G, right? And we're all looking for those killer use cases which will drive top line revenue and not just make it a TCO discussion. And that starts at a very basic level today by doing things like integrating with Juniper, for their cloud router. So instead of at the far edge cell site, having a separate device that's doing the routing function, right? We take that and we cloudify that application, run it on the same server that's hosting the RAN applications, so you eliminate a device and reduce TCO. Now with Aptiv, which is primarily known as an automotive company, we're having lots of conversations, including with Dell and Intel and others about vehicle to vehicle communication, vehicle to anything communication. And although that's a little bit futuristic, there are shorter term use cases that, like, vehicle to vehicle accident avoidance, which are going to be much nearer term than autonomous driving, for example, which will help drive traffic and new revenue streams for operators. >> So, oh, that's, wow. So many other things (Scott laughs) that's just opened up there too. But I want to come back to, sort of, the Open RAN adoption. And I think you're right, there's a lot of questions that that still have to be determined. But my question is this, based on your knowledge so far does it have to be as hardened and reliable, obviously has to be low latency as existing networks, or can flexibility, like the cloud when it first came out, wasn't better than enterprise IT, it was just more flexible and faster, and you could rent it. And, is there a similar dynamic here where it doesn't have to replicate the hardened stack, it can bring in new benefits that drive adoption, what are your thoughts on that? >> Well there's a couple of things on that, because Wind River, as you know, where our legacy and history is in embedded devices like F-15 fighter jets, right? Or the Mars Rover or the James Web telescope, all run Wind River software. So, we know about can't fail ultra reliable systems, and operators are not letting us off the hook whatsoever. It has to be as hardened and locked down, as secure as a traditional RAN environment. Otherwise they will (indistinct). >> That's table stakes. >> That's table stakes that gets us there. And when River, with our legacy and history, and having operator experience running live commercial networks with a disaggregated stack in the tens of thousands of nodes, understand what this is like because they're running live commercial traffic with live customers. So we can't fail, right? And with that, they want their cake and eat it too, right? Which is, I want ultra reliable, I want what I have today, but I want the agility and flexibility to onboard third party apps. Like for example, this JCNR, this Juniper Cloud-Native Router. You cannot do something as simple as that on a traditional RAN Appliance. In an open ecosystem you can take that workload and onboard it because it is an open ecosystem, and that's really one of the true benefits. >> So they want the mainframe, but they want (Scott laughs) the flexibility of the developer cloud, right? >> That's right. >> They want their, have their cake eat it too and not gain weight. (group laughs) >> Yeah I mean David, I come from the public cloud world. >> We all don't want to do that. >> I used to work with a public cloud company, and nine years ago, public cloud was in the same stage, where you would go to a bank, and they would be like, we don't trust the cloud. It's not secure, it's not safe. It was the digital natives that adopted it, and that that drove the industry forward, right? And that's where the enterprises that realized that they're losing business because of all these innovative new companies that came out. That's what I saw over the last nine years in the cloud space. I think in the telco space also, something similar might happen, right? So a lot of this, I mean a lot of the new age telcos are understanding the value, are looking to innovate are adopting the open technologies, but there's still some inertia and hesitancy, for the reasons as Scott mentioned, to go there so quickly. So we just have to work through and balance between both sides. >> Yeah, well with that said, if there's still some inertia, but there's a theme of velocity, how do you help organizations balance that so they trust evolving? >> Yeah, and I think this is where our solution, like infrastructure block, is a foundational pillar to make that happen, right? So if we can take away the concerns that the organizations have in terms of security, reliability from the fundamental elements that build their infrastructure, by working with partners like Wind River, but Dell takes the ownership end-to-end to make sure that service works and we have those telco grade SLAs, then the telcos can start focusing on what's next. The applications and the customer services on the top. >> Customer service customer experience. >> You know, that's an interesting point Gautam brings up, too, because support is an issue too. We all talk about when you break these things apart, it creates integration points that you need to manage, right? But there's also, so the support aspect of it. So imagine if you will, you had one vendor, you have an outage, you call that one vendor, one necktie to choke, right, for accountability for the network. Now you have four or five vendors that you have to work. You get a lot of finger pointing. So at least at the infrastructure layer, right? Dell takes first call support for both the hardware infrastructure and the Wind River cloud infrastructure for both. And we are training and spinning them up to support, but we're always behind them of course as well. >> Can you give us a favorite customer example of- that really articulates the value of the partnership and the technologies that it's delivering to customers? >> Well, Infra Block- >> (indistinct) >> Is quite new, and we do have our first customer which is LG U plus, which was announced yesterday. Out of Korea, small customer, but a very important one. Okay, and I think they saw the value of the integrated system. They don't have the (indistinct) expertise and they're leveraging Dell and Wind River in order to make that happen. But I always also say historically before this new offering was Vodafone, right? Vodafone is a leader in Europe in terms of Open RAN, been very- Yago and Paco have been very vocal about what they're doing in Open RAN, and Dell and Wind River have been there with them every step of the way. And that's what I would say, kind of, led up to where we are today. We learned from engagements like Vodafone and I think KDDI as well. And it got us where we are today and understanding what the operators need and what the impediments are. And this directly addresses that. >> Those are two very different examples. You were talking about TCO before. I mean, so the earlier example is, that's an example to me of a disruptor. They'll take some chances, you know, maybe not as focused on TCO, of course they're concerned about it. Vodafone I would think very concerned about TCO. But I'm inferring from your comments that you're trying to get the industry, you're trying to check the TCO box, get there. And then move on to higher levels of value monetization. The TCO is going to come down to how many humans it takes to run the network, is it not, is that- >> Well a lot of, okay- >> Or is it devices- >> So the big one now, particularly with Vodafone, is energy cost, right? >> Of course, greening the network. >> Two-thirds of the energy consumption in RAN is the the Radio Access Network. Okay, the OPEX, right? So any reductions, even if they're 5% or 10%, can save tens or hundreds of millions of dollars. So we do things creatively with Dell to understand if there's a lot of traffic at the cell site and if it's not, we will change the C state or P state of the server, which basically spins it down, so it's not consuming power. But that's just at the infrastructure layer. Where this gets really powerful is working with the RAN vendors like Samsung and Ericson and others, and taking data from the traffic information there, applying algorithms to that in AI to shut it down and spin it back up as needed. 'Cause the idea is you don't want that thing powered up if there's no traffic on it. >> Well there's a sustainability, ESG, benefit to that, right? >> Yes. >> And, and it's very compute intensive. >> A hundred percent. >> Which is great for Dell. But at the same time, if you're not able to manage that power consumption, the whole thing fails. I mean it's, because there's going to be so much data, and such a intense requirement. So this is a huge issue. Okay, so Scott, you're saying that in the TCO equation, a big chunk is energy consumption? >> On the OPEX piece. Now there's also the CapEx, right? And Open RAN solutions are now, what we've heard from our customers today, are they're roughly at parity. 'Cause you can do things like repurpose servers after the useful life for a lower demand application which helps the TCO, right? Then you have situations like Juniper, where you can take, now software that runs on the same device, eliminating at a whole other device at the cell site. So we're not just taking a server and software point of view, we're taking a whole cell site point of view as it relates to both CapEx and OPEX. >> And then once that infrastructure it really gets adopted, that's when the innovation occurs. The ecosystem comes in. Developers now start to think of new applications that we haven't thought of yet. >> Gautam: Exactly. >> And that's where, that's going to force the traditional carriers to respond. They're responding, but they're doing so very carefully right now, it's understandable why. >> Yeah, and I think you're already seeing some news in the, I mean Nokia's announcement yesterday with the rebranding, et cetera. That's all positive momentum in my opinion, right? >> What'd you think of the logo? >> I love the logo. >> I liked it too. (group laughs) >> It was beautiful. >> I thought it was good. You had the connectivity down below, You need pipes, right? >> Exactly. >> But you had this sort of cool letters, and then the the pink horizon or pinkish, it was like (Scott laughs) endless opportunity. It was good, I thought it was well thought out. >> Exactly. >> Well, you pick up on an interesting point there, and what we're seeing, like advanced carriers like Dish, who has one of the true Open RAN networks, publishing APIs for programmers to build in their 5G network as part of the application. But we're also seeing the network equipment providers also enable carriers do that, 'cause carriers historically have not been advanced in that way. So there is a real recognition that in order for these networks to monetize new use cases, they need to be programmable, and they need to publish standard APIs, so you can access the 5G network capabilities through software. >> Yeah, and the problem from the carriers, there's not enough APIs that the carriers have produced yet. So that's where the ecosystem comes in, is going to >> A hundred percent >> I think there's eight APIs that are published out of the traditional carriers, which is, I mean there's got to be 8,000 for a marketplace. So that's where the open ecosystem really has the advantage. >> That's right. >> That's right. >> That's right. >> Yeah. >> So it all makes sense on paper, now you just, you got a lot of work to do. >> We got to deliver. Yeah, we launched it today. We got to get some like-minded partners and customers to come together. You'll start seeing results coming out of this hopefully soon, and we'll talk more about it over time. >> Dave: Great Awesome, thanks for sharing with us. >> Excellent. Guys, thank you for sharing, stopping by, sharing what's going on with Dell and Wind River, and why the opportunity's in it for customers and the technological evolution. We appreciate it, you'll have to come back, give us an update. >> Our pleasure, thanks for having us. (Group talks over each other) >> All right, thanks guys >> Appreciate it. >> For our guests and for Dave Vellante, I'm Lisa Martin. You're watching theCUBE, Live from MWC23 in Barcelona. theCUBE is the leader in live tech coverage. (upbeat music)

(soft music) >> Welcome back to Sin City, guys and girls we're glad you're with us. You've been watching theCUBE all week, we know that. This is theCUBE's live coverage of AWS re:Invent 22, from the Venetian Expo Center where there are tens of thousands of people, and this event if you know it, covers the entire strip. There are over 55,000 people here, hundreds of thousands online. Dave, this has been a fantastic show. It is clear everyone's back. We're hearing phenomenal stories from AWS and it's ecosystem. We got a great customer story coming up next, featured on the main stage. >> Yeah, I mean, you know, post pandemic, you start to think about, okay, how are things changing? And one of the things that we heard from Adam Selipsky, was, we're going beyond digital transformation into business transformation. Okay. That can mean a lot of things to a lot of people. I have a sense of what it means. And I think this next interview really talks to business transformation beyond digital transformation, beyond the IT. >> Excellent. We've got two guests. One of them is an alumni, Scott Mullins joins us, GM, AWS Worldwide Financial Services, and Brad Peterson is here, the EVP, CIO and CTO of NASDAQ. Welcome guys. Great to have you. >> Hey guys. >> Hey guys. Thanks for having us. >> Yeah >> Brad, talk a little bit, there was an announcement with NASDAQ and AWS last year, a year ago, about how they're partnering to transform capital markets. It was a highlight of last year. Remind us what you talked about and what's gone on since then. >> Yeah, so, we are very excited. I work with Adena Friedman, she's my boss, CEO of NASDAQ, and she was on stage with Adam for his first Keynote as CEO of AWS. And we made the commitment that we were going to move our markets to the Cloud. And we've been a long time customer of AWS and everyone said, you know the last piece, the last frontier to be moved was the actual matching where all the messages, the quotes get matched together to become confirmed orders. So that was what we committed to less than a year ago. And we said we were going to move one of our options markets. In the US, we have six of them. And options markets are the most challenging, they're the most high volume and high performance. So we said, let's start with something really challenging and prove we can do it together with AWS. So we committed to that. >> And? Results so far? >> So, I can sit here and say that November 7th so we are live, we're in production and the MRX Exchange is called Mercury, so we shorten it for MRX, we like acronyms in technology. And so, we started with a phased launch of symbols, so you kind of allow yourself to make sure you have all the functionality working then you add some volume on it, and we are going to complete the conversion on Monday. So we are all good so far. And I have some results I can share, but maybe Scott, if you want to talk about why we did that together. >> Yeah. >> And what we've done together over many years. >> Right. You know, Brian, I think it's a natural extension of our relationship, right? You know, you look at the 12 year relationship that AWS and NASDAQ have had together, it's just the next step, in the way that we're going to help the industry transform itself. And so not just NASDAQ's business transformation for itself, but really a blueprint and a template for the entire capital markets industry. And so many times people will ask me, who's using Cloud well? Who's doing well in the Cloud? And NASDAQ is an easy example to point to, of somebody who's truly taking advantage of these capabilities because the Cloud isn't a place, it's a set of capabilities. And so, this is a shining example of how to use these capabilities to actually deliver real business benefit, not just to to your organization, but I think the really exciting part is the market technology piece of how you're serving other exchanges. >> So last year before re:Invent, we said, and it's obvious within the tech ecosystem, that technology companies are building on top of the Cloud. We said, the big trend that we see in the 2020s is that, you know, consumers of IT, historically, your customers are going to start taking their stacks, their software, their data, their services and sassifying, putting it on the Cloud and delivering new services to customers. So when we saw Adena on stage last year, we called it by the way, we called it Super Cloud. >> Yeah. >> Okay. Some people liked the term but I love it. And so yeah, Super Cloud. So when we saw Adena on stage, we said that's a great example. We've seen Capital One doing some similar things, we've had some conversations with US West, it's happening, right? So talk about how you actually do that. I mean, because you've got a lot, you've got a big on-premises stay, are you connecting to that? Is it all in the Cloud? Paint a picture of what the architecture looks like? >> Yeah. And there's, so you started with the business transformation, so I like that. >> Yeah. >> And the Super Cloud designation, what we are is, we own and operate exchanges in the United States and in Europe and in Canada. So we have our own markets that we're looking at modernizing. So we look at this, as a modernization of the capital market infrastructure, but we happen to be the leading technology provider for other markets around the world. So you either build your own or you source from us. And we're by far the leading provider. So a lot of our customers said, how about if you go first? It's kind of like Mikey, you know, give it to Mikey, let him try it. >> See if Mikey likes it. >> Yeah. >> Penguin off the iceberg thing. >> Yeah. And so what we did is we said, to make this easy for our customers, so you want to ask your customers, you want to figure out how you can do it so that you don't disrupt their business. So we took the Edge Compute that was announced a few years ago, Amazon Outposts, and we were one of their early customers. So we started immediately to innovate with, jointly innovate with Amazon. And we said, this looks interesting for us. So we extended the region into our Carteret data center in Northern New Jersey, which gave us all the services that we know and love from Amazon. So our technical operations team has the same tools and services but then, we're able to connect because in the markets what we're doing is we need to connect fairly. So we need to ensure that you still have that fairness element. So by bringing it into our building and extending the Edge Compute platform, the AWS Outpost into Carteret, that allowed us to also talk very succinctly with our regulators. It's a familiar territory, it's all buttoned up. And that simplified the conversion conversation with the regulators. It simplified it with our customers. And then it was up to us to then deliver time and performance >> Because you had alternatives. You could have taken a more mature kind of on-prem legacy stack, figured out how to bolt that in, you know, less cloudy. So why did you choose Outposts? I am curious. >> Well, Outposts looked like when it was announced, that it was really about extending territory, so we had our customers in mind, our global customers, and they don't always have an AWS region in country. So a lot of you think about a regulator, they're going to say, well where is this region located? So finally we saw this ability to grow the Cloud geographically. And of course we're in Sweden, so we we work with the AWS region in Stockholm, but not every country has a region yet. >> And we're working as fast as we can. - Yes, you are. >> Building in every single location around the planet. >> You're doing a good job. >> So, we saw it as an investment that Amazon had to grow the geographic footprint and we have customers in many smaller countries that don't have a region today. So maybe talk a little bit about what you guys had in mind and it's a multi-industry trend that the Edge Compute has four or five industries that you can say, this really makes a lot of sense to extend the Cloud. >> And David, you said it earlier, there's a trend of ecosystems that are coming onto the Cloud. This is our opportunity to bring the Cloud to an ecosystem, to an existing ecosystem. And if you think about NASDAQ's data center in Carteret, there's an ecosystem of NASDAQ's clients there that are there to be with NASDAQ. And so, it was actually much easier for us as we worked together over a really a four year period, thinking about this and how to make this technological transition, to actually bring the capabilities to that ecosystem, rather than trying to bring the ecosystem to AWS in one of our public regions. And so, that's been our philosophy with Outpost all along. It's actually extending our capabilities that our customers know and love into any environment that they need to be able to use that in. And so to Brad's point about servicing other markets in different countries around the world, it actually gives us that ability to do that very quickly, very nimbly and very succinctly and successfully. >> Did you guys write a working backwards document for this initiative? >> We did. >> Yeah, we actually did. So to be, this is one of the fully exercised. We have a couple of... So by the way, Scott used to work at NASDAQ and we have a number of people who have gone from NASDAQ data to AWS, and from AWS to NASDAQ. So we have adopted, that's one of the things that we think is an effective way to really clarify what you're trying to accomplish with a project. So I know you're a little bit kidding on that, but we did. >> No, I was close. Because I want to go to the like, where are we in the milestone? And take us through kind of what we can expect going forward now that we've worked backwards. >> Yep, we did. >> We did. And look, I think from a milestone perspective, as you heard Brad say, we're very excited that we've stood up MRX in production. Having worked at NASDAQ myself, when you make a change and when you stand up a market that's always a moment where you're working with your community, with your clients and you've got a market-wide call that you're working and you're wanting to make sure that everything goes smoothly. And so, when that call went smoothly and that transition went smoothly I know you were very happy, and in AWS, we were also very happy as well that we hit that milestone within the timeframe that Adena set. And that was very important I know to you. >> Yeah. >> And for us as well. >> Yeah. And our commitment, so the time base of this one was by the end of 2022. So November 7th, checked. We got that one done. >> That's awesome. >> The other one is we said, we wanted the performance to be as good or better than our current platform that we have. And we were putting a new version of our derivative or options software onto this platform. We had confidence because we already rolled it to one market in the US then we rolled it earlier this year and that was last year. And we rolled it to our nordic derivatives market. And we saw really good customer feedback. So we had confidence in our software was going to run. Now we had to marry that up with the Outpost platform and we said we really want to achieve as good or better performance and we achieved better performance, so that's noticeable by our customers. And that one was the biggest question. I think our customers understand when we set a date, we test them with them. We have our national test facility that they can test in. But really the big question was how is it going to perform? And that was, I think one of the biggest proof points that we're really proud about, jointly together. And it took both, it took both of us to really innovate and get the platform right, and we did a number of iterations. We're never done. >> Right. >> But we have a final result that says it is better. >> Well, congratulations. - Thank you. >> It sounds like you guys have done a tremendous job. What can we expect in 2023? From NASDAQ and AWS? Any little nuggets you can share? >> Well, we just came from the partner, the partner Keynote with Adam and Ruba and we had another colleague on stage, so Nick Ciubotariu, so he is actually someone who brought digital assets and cryptocurrencies onto the Venmo, PayPal platform. He joined NASDAQ about a year ago and we announced that in our marketplace, the Amazon marketplace, we are going to offer digital custody, digital assets custody solution. So that is certainly going to be something we're excited about in 2023. >> I know we got to go, but I love this story because it fits so great at the Super cloud but we've learned so much from Amazon over the years. Two pieces of teams, we talked about working backwards, customer obsession, but this is a story of NASDAQ pointing its internal capabilities externally. We're already on that journey and then, bringing that to the Cloud. Very powerful story. I wonder what's next in this, because we learn a lot and we, it's like the NFL, we copy it. I think about product market fit. You think about scientific, you know, go to market and seeing that applied to the financial services industry and obviously other industries, it's really exciting to see. So congratulations. >> No, thank you. And look, I think it's an example of Invent and Simplify, that's another Amazon principle. And this is, I think a great example of inventing on behalf of an industry and then continually working to simplify the way that the industry works with all of us. >> Last question and we've got only 30 seconds left. Brad, I'm going to direct it to you. If you had the opportunity to take over the NASDAQ sign in Times Square and say a phrase that summarizes what NASDAQ and AWS are doing together, what would it say? >> Oh, and I think I'm going to put that up on Monday. So we're going to close the market together and it's going to say, "Modernizing the capital market's infrastructure together." >> Very cool. >> Excellent. Drop the mic. Guys, this was fantastic. Thank you so much for joining us. We appreciate you joining us on the show, sharing your insights and what NASDAQ and AWS are doing. We're going to have to keep watching this. You're going to have to come back next year. >> All right. >> For our guests and for Dave Vellante, I'm Lisa Martin. You're watching theCUBE, the leader in live enterprise and emerging tech coverage. (soft music)

>>Good morning fellow nerds and welcome back to AWS Reinvent. We are live from the show floor here in Las Vegas, Nevada. My name is Savannah Peterson, joined with my fabulous co-host John Furrier. Day two keynotes are rolling. >>Yeah. What do you thinking this? This is the day where everything comes, so the core gets popped off the bottle, all the announcements start flowing out tomorrow. You hear machine learning from swee lot more in depth around AI probably. And then developers with Verner Vos, the CTO who wrote the seminal paper in in early two thousands around web service that becames. So again, just another great year of next level cloud. Big discussion of data in the keynote bulk of the time was talking about data and business intelligence, business transformation easier. Is that what people want? They want the easy button and we're gonna talk a lot about that in this segment. I'm really looking forward to this interview. >>Easy button. We all want the >>Easy, we want the easy button. >>I love that you brought up champagne. It really feels like a champagne moment for the AWS community as a whole. Being here on the floor feels a bit like the before times. I don't want to jinx it. Our next guest, Scott Castle, from Si Sense. Thank you so much for joining us. How are you feeling? How's the show for you going so far? Oh, >>This is exciting. It's really great to see the changes that are coming in aws. It's great to see the, the excitement and the activity around how we can do so much more with data, with compute, with visualization, with reporting. It's fun. >>It is very fun. I just got a note. I think you have the coolest last name of anyone we've had on the show so far, castle. Oh, thank you. I'm here for it. I'm sure no one's ever said that before, but I'm so just in case our audience isn't familiar, tell us about >>Soy Sense is an embedded analytics platform. So we're used to take the queries and the analysis that you can power off of Aurora and Redshift and everything else and bring it to the end user in the applications they already know how to use. So it's all about embedding insights into tools. >>Embedded has been a, a real theme. Nobody wants to, it's I, I keep using the analogy of multiple tabs. Nobody wants to have to leave where they are. They want it all to come in there. Yep. Now this space is older than I think everyone at this table bis been around since 1958. Yep. How do you see Siente playing a role in the evolution there of we're in a different generation of analytics? >>Yeah, I mean, BI started, as you said, 58 with Peter Lu's paper that he wrote for IBM kind of get became popular in the late eighties and early nineties. And that was Gen one bi, that was Cognos and Business Objects and Lotus 1 23 think like green and black screen days. And the way things worked back then is if you ran a business and you wanted to get insights about that business, you went to it with a big check in your hand and said, Hey, can I have a report? And they'd come back and here's a report. And it wasn't quite right. You'd go back and cycle, cycle, cycle and eventually you'd get something. And it wasn't great. It wasn't all that accurate, but it's what we had. And then that whole thing changed in about two, 2004 when self-service BI became a thing. And the whole idea was instead of going to it with a big check in your hand, how about you make your own charts? >>And that was totally transformative. Everybody started doing this and it was great. And it was all built on semantic modeling and having very fast databases and data warehouses. Here's the problem, the tools to get to those insights needed to serve both business users like you and me and also power users who could do a lot more complex analysis and transformation. And as the tools got more complicated, the barrier to entry for everyday users got higher and higher and higher to the point where now you look, look at Gartner and Forester and IDC this year. They're all reporting in the same statistic. Between 10 and 20% of knowledge workers have learned business intelligence and everybody else is just waiting in line for a data analyst or a BI analyst to get a report for them. And that's why the focus on embedded is suddenly showing up so strong because little startups have been putting analytics into their products. People are seeing, oh my, this doesn't have to be hard. It can be easy, it can be intuitive, it can be native. Well why don't I have that for my whole business? So suddenly there's a lot of focus on how do we embed analytics seamlessly? How do we embed the investments people make in machine learning in data science? How do we bring those back to the users who can actually operationalize that? Yeah. And that's what Tysons does. Yeah. >>Yeah. It's interesting. Savannah, you know, data processing used to be what the IT department used to be called back in the day data processing. Now data processing is what everyone wants to do. There's a ton of data we got, we saw the keynote this morning at Adam Lesky. There was almost a standing of vision, big applause for his announcement around ML powered forecasting with Quick Site Cube. My point is people want automation. They want to have this embedded semantic layer in where they are not having all the process of ETL or all the muck that goes on with aligning the data. All this like a lot of stuff that goes on. How do you make it easier? >>Well, to be honest, I, I would argue that they don't want that. I think they, they think they want that, cuz that feels easier. But what users actually want is they want the insight, right? When they are about to make a decision. If you have a, you have an ML powered forecast, Andy Sense has had that built in for years, now you have an ML powered forecast. You don't need it two weeks before or a week after in a report somewhere. You need it when you're about to decide do I hire more salespeople or do I put a hundred grand into a marketing program? It's putting that insight at the point of decision that's important. And you don't wanna be waiting to dig through a lot of infrastructure to find it. You just want it when you need it. What's >>The alternative from a time standpoint? So real time insight, which is what you're saying. Yep. What's the alternative? If they don't have that, what's >>The alternative? Is what we are currently seeing in the market. You hire a bunch of BI analysts and data analysts to do the work for you and you hire enough that your business users can ask questions and get answers in a timely fashion. And by the way, if you're paying attention, there's not enough data analysts in the whole world to do that. Good luck. I am >>Time to get it. I really empathize with when I, I used to work for a 3D printing startup and I can, I have just, I mean, I would call it PTSD flashbacks of standing behind our BI guy with my list of queries and things that I wanted to learn more about our e-commerce platform in our, in our marketplace and community. And it would take weeks and I mean this was only in 2012. We're not talking 1958 here. We're talking, we're talking, well, a decade in, in startup years is, is a hundred years in the rest of the world life. But I think it's really interesting. So talk to us a little bit about infused and composable analytics. Sure. And how does this relate to embedded? Yeah. >>So embedded analytics for a long time was I want to take a dashboard I built in a BI environment. I wanna lift it and shift it into some other application so it's close to the user and that is the right direction to go. But going back to that statistic about how, hey, 10 to 20% of users know how to do something with that dashboard. Well how do you reach the rest of users? Yeah. When you think about breaking that up and making it more personalized so that instead of getting a dashboard embedded in a tool, you get individual insights, you get data visualizations, you get controls, maybe it's not even actually a visualization at all. Maybe it's just a query result that influences the ordering of a list. So like if you're a csm, you have a list of accounts in your book of business, you wanna rank those by who's priorities the most likely to churn. >>Yeah. You get that. How do you get that most likely to churn? You get it from your BI system. So how, but then the question is, how do I insert that back into the application that CSM is using? So that's what we talk about when we talk about Infusion. And SI started the infusion term about two years ago and now it's being used everywhere. We see it in marketing from Click and Tableau and from Looker just recently did a whole launch on infusion. The idea is you break this up into very small digestible pieces. You put those pieces into user experiences where they're relevant and when you need them. And to do that, you need a set of APIs, SDKs, to program it. But you also need a lot of very solid building blocks so that you're not building this from scratch, you're, you're assembling it from big pieces. >>And so what we do aty sense is we've got machine learning built in. We have an LQ built in. We have a whole bunch of AI powered features, including a knowledge graph that helps users find what else they need to know. And we, we provide those to our customers as building blocks so that they can put those into their own products, make them look and feel native and get that experience. In fact, one of the things that was most interesting this last couple of couple of quarters is that we built a technology demo. We integrated SI sensee with Office 365 with Google apps for business with Slack and MS teams. We literally just threw an Nlq box into Excel and now users can go in and say, Hey, which of my sales people in the northwest region are on track to meet their quota? And they just get the table back in Excel. They can build charts of it and PowerPoint. And then when they go to their q do their QBR next week or week after that, they just hit refresh to get live data. It makes it so much more digestible. And that's the whole point of infusion. It's bigger than just, yeah. The iframe based embedding or the JavaScript embedding we used to talk about four or five years >>Ago. APIs are very key. You brought that up. That's gonna be more of the integration piece. How does embedable and composable work as more people start getting on board? It's kind of like a Yeah. A flywheel. Yes. What, how do you guys see that progression? Cause everyone's copying you. We see that, but this is a, this means it's standard. People want this. Yeah. What's next? What's the, what's that next flywheel benefit that you guys coming out with >>Composability, fundamentally, if you read the Gartner analysis, right, they, when they talk about composable, they're talking about building pre-built analytics pieces in different business units for, for different purposes. And being able to plug those together. Think of like containers and services that can, that can talk to each other. You have a composition platform that can pull it into a presentation layer. Well, the presentation layer is where I focus. And so the, so for us, composable means I'm gonna have formulas and queries and widgets and charts and everything else that my, that my end users are gonna wanna say almost minority report style. If I'm not dating myself with that, I can put this card here, I can put that chart here. I can set these filters here and I get my own personalized view. But based on all the investments my organization's made in data and governance and quality so that all that infrastructure is supporting me without me worrying much about it. >>Well that's productivity on the user side. Talk about the software angle development. Yeah. Is your low code, no code? Is there coding involved? APIs are certainly the connective tissue. What's the impact to Yeah, the >>Developer. Oh. So if you were working on a traditional legacy BI platform, it's virtually impossible because this is an architectural thing that you have to be able to do. Every single tool that can make a chart has an API to embed that chart somewhere. But that's not the point. You need the life cycle automation to create models, to modify models, to create new dashboards and charts and queries on the fly. And be able to manage the whole life cycle of that. So that in your composable application, when you say, well I want chart and I want it to go here and I want it to do this and I want it to be filtered this way you can interact with the underlying platform. And most importantly, when you want to use big pieces like, Hey, I wanna forecast revenue for the next six months. You don't want it popping down into Python and writing that yourself. >>You wanna be able to say, okay, here's my forecasting algorithm. Here are the inputs, here's the dimensions, and then go and just put it somewhere for me. And so that's what you get withy sense. And there aren't any other analytics platforms that were built to do that. We were built that way because of our architecture. We're an API first product. But more importantly, most of the legacy BI tools are legacy. They're coming from that desktop single user, self-service, BI environment. And it's a small use case for them to go embedding. And so composable is kind of out of reach without a complete rebuild. Right? But with SI senses, because our bread and butter has always been embedding, it's all architected to be API first. It's integrated for software developers with gi, but it also has all those low code and no code capabilities for business users to do the minority report style thing. And it's assemble endless components into a workable digital workspace application. >>Talk about the strategy with aws. You're here at the ecosystem, you're in the ecosystem, you're leading product and they have a strategy. We know their strategy, they have some stuff, but then the ecosystem goes faster and ends up making a better product in most of the cases. If you compare, I know they'll take me to school on that, but I, that's pretty much what we report on. Mongo's doing a great job. They have databases. So you kind of see this balance. How are you guys playing in the ecosystem? What's the, what's the feedback? What's it like? What's going on? >>AWS is actually really our best partner. And the reason why is because AWS has been clear for many, many years. They build componentry, they build services, they build infrastructure, they build Redshift, they build all these different things, but they need, they need vendors to pull it all together into something usable. And fundamentally, that's what Cient does. I mean, we didn't invent sequel, right? We didn't invent jackal or dle. These are not, these are underlying analytics technologies, but we're taking the bricks out of the briefcase. We're assembling it into something that users can actually deploy for their use cases. And so for us, AWS is perfect because they focus on the hard bits. The the underlying technologies we assemble those make them usable for customers. And we get the distribution. And of course AWS loves that. Cause it drives more compute and it drives more, more consumption. >>How much do they pay you to say that >>Keynote, >>That was a wonderful pitch. That's >>Absolutely, we always say, hey, they got a lot of, they got a lot of great goodness in the cloud, but they're not always the best at the solutions and that they're trying to bring out, and you guys are making these solutions for customers. Yeah. That resonates with what they got with Amazon. For >>Example, we, last year we did a, a technology demo with Comprehend where we put comprehend inside of a semantic model and we would compile it and then send it back to Redshift. And it takes comprehend, which is a very cool service, but you kind of gotta be a coder to use it. >>I've been hear a lot of hype about the semantic layer. What is, what is going on with that >>Semantec layer is what connects the actual data, the tables in your database with how they're connected and what they mean so that a user like you or me who's saying I wanna bar chart with revenue over time can just work with revenue and time. And the semantic layer translates between what we did and what the database knows >>About. So it speaks English and then they converts it to data language. It's >>Exactly >>Right. >>Yeah. It's facilitating the exchange of information. And, and I love this. So I like that you actually talked about it in the beginning, the knowledge map and helping people figure out what they might not know. Yeah. I, I am not a bi analyst by trade and I, I don't always know what's possible to know. Yeah. And I think it's really great that you're doing that education piece. I'm sure, especially working with AWS companies, depending on their scale, that's gotta be a big part of it. How much is the community play a role in your product development? >>It's huge because I'll tell you, one of the challenges in embedding is someone who sees an amazing experience in outreach or in seismic. And to say, I want that. And I want it to be exactly the way my product is built, but I don't wanna learn a lot. And so you, what you want do is you want to have a community of people who have already built things who can help lead the way. And our community, we launched a new version of the SES community in early 2022 and we've seen a 450% growth in the c in that community. And we've gone from an average of one response, >>450%. I just wanna put a little exclamation point on that. Yeah, yeah. That's awesome. We, >>We've tripled our organic activity. So now if you post this Tysons community, it used to be, you'd get one response maybe from us, maybe from from a customer. Now it's up to three. And it's continuing to trend up. So we're, it's >>Amazing how much people are willing to help each other. If you just get in the platform, >>Do it. It's great. I mean, business is so >>Competitive. I think it's time for the, it's time. I think it's time. Instagram challenge. The reels on John. So we have a new thing. We're gonna run by you. Okay. We just call it the bumper sticker for reinvent. Instead of calling it the Instagram reels. If we're gonna do an Instagram reel for 30 seconds, what would be your take on what's going on this year at Reinvent? What you guys are doing? What's the most important story that you would share with folks on Instagram? >>You know, I think it's really what, what's been interesting to me is the, the story with Redshift composable, sorry. No, composable, Redshift Serverless. Yeah. One of the things I've been >>Seeing, we know you're thinking about composable a lot. Yes. Right? It's, it's just, it's in there, it's in your mouth. Yeah. >>So the fact that Redshift Serverless is now kind becoming the defacto standard, it changes something for, for my customers. Cuz one of the challenges with Redshift that I've seen in, in production is if as people use it more, you gotta get more boxes. You have to manage that. The fact that serverless is now available, it's, it's the default means it now people are just seeing Redshift as a very fast, very responsive repository. And that plays right into the story I'm telling cuz I'm telling them it's not that hard to put some analysis on top of things. So for me it's, it's a, maybe it's a narrow Instagram reel, but it's an >>Important one. Yeah. And that makes it better for you because you get to embed that. Yeah. And you get access to better data. Faster data. Yeah. Higher quality, relevant, updated. >>Yep. Awesome. As it goes into that 80% of knowledge workers, they have a consumer great expectation of experience. They're expecting that five ms response time. They're not waiting 2, 3, 4, 5, 10 seconds. They're not trained on theola expectations. And so it's, it matters a lot. >>Final question for you. Five years out from now, if things progress the way they're going with more innovation around data, this front end being very usable, semantic layer kicks in, you got the Lambda and you got serverless kind of coming in, helping out along the way. What's the experience gonna look like for a user? What's it in your mind's eye? What's that user look like? What's their experience? >>I, I think it shifts almost every role in a business towards being a quantitative one. Talking about, Hey, this is what I saw. This is my hypothesis and this is what came out of it. So here's what we should do next. I, I'm really excited to see that sort of scientific method move into more functions in the business. Cuz for decades it's been the domain of a few people like me doing strategy, but now I'm seeing it in CSMs, in support people and sales engineers and line engineers. That's gonna be a big shift. Awesome. >>Thank >>You Scott. Thank you so much. This has been a fantastic session. We wish you the best at si sense. John, always pleasure to share the, the stage with you. Thank you to everybody who's attuning in, tell us your thoughts. We're always eager to hear what, what features have got you most excited. And as you know, we will be live here from Las Vegas at reinvent from the show floor 10 to six all week except for Friday. We'll give you Friday off with John Furrier. My name's Savannah Peterson. We're the cube, the the, the leader in high tech coverage.

(techno music intro) >> Welcome back to theCube's coverage of SuperComputing Conference 2022. We are here at day three covering the amazing events that are occurring here. I'm Dave Nicholson, with my co-host Paul Gillin. How's it goin', Paul? >> Fine, Dave. Winding down here, but still plenty of action. >> Interesting stuff. We got a full day of coverage, and we're having really, really interesting conversations. We sort of wrapped things up at Supercomputing 22 here in Dallas. I've got two very special guests with me, Scott from Intel and David from Dell, to talk about yeah supercomputing, but guess what? We've got some really cool stuff coming up after this whole thing wraps. So not all of the holiday gifts have been unwrapped yet, kids. Welcome gentlemen. >> Thanks so much for having us. >> Thanks for having us. >> So, let's start with you, David. First of all, explain the relationship in general between Dell and Intel. >> Sure, so obviously Intel's been an outstanding partner. We built some great solutions over the years. I think the market reflects that. Our customers tell us that. The feedback's strong. The products you see out here this week at Supercompute, you know, put that on display for everybody to see. And then as we think about AI in machine learning, there's so many different directions we need to go to help our customers deliver AI outcomes. Right, so we recognize that AI has kind of spread outside of just the confines of everything we've seen here this week. And now we've got really accessible AI use cases that we can explain to friends and family. We can talk about going into retail environments and how AI is being used to track inventory, to monitor traffic, et cetera. But really what that means to us as a bunch of hardware folks is we have to deliver the right platforms and the right designs for a variety of environments, both inside and outside the data center. And so if you look at our portfolio, we have some great products here this week, but we also have other platforms, like the XR4000, our shortest rack server ever that's designed to go into Edge environments, but is also built for those Edge AI use cases that supports GPUs. It supports AI on the CPU as well. And so there's a lot of really compelling platforms that we're starting to talk about, have already been talking about, and it's going to really enable our customers to deliver AI in a variety of ways. >> You mentioned AI on the CPU. Maybe this is a question for Scott. What does that mean, AI on the CPU? >> Well, as David was talking about, we're just seeing this explosion of different use cases. And some of those on the Edge, some of them in the Cloud, some of them on Prem. But within those individual deployments, there's often different ways that you can do AI, whether that's training or inference. And what we're seeing is a lot of times the memory locality matters quite a bit. You don't want to have to pay necessarily a cost going across the PCI express bus, especially with some of our newer products like the CPU Max series, where you can have a huge about of high bandwidth memory just sitting right on the CPU. Things that traditionally would have been accelerator only, can now live on a CPU, and that includes both on the inference side. We're seeing some really great things with images, where you might have a giant medical image that you need to be able to do extremely high resolution inference on or even text, where you might have a huge corpus of extremely sparse text that you need to be able to randomly sample very efficiently. >> So how are these needs influencing the evolution of Intel CPU architectures? >> So, we're talking to our customers. We're talking to our partners. This presents both an opportunity, but also a challenge with all of these different places that you can put these great products, as well as applications. And so we're very thoughtfully trying to go to the market, see where their needs are, and then meet those needs. This industry obviously has a lot of great players in it, and it's no longer the case that if you build it, they will come. So what we're doing is we're finding where are those choke points, how can we have that biggest difference? Sometimes there's generational leaps, and I know David can speak to this, can be huge from one system to the next just because everything's accelerated on the software side, the hardware side, and the platforms themselves. >> That's right, and we're really excited about that leap. If you take what Scott just described, we've been writing white papers, our team with Scott's team, we've been talking about those types of use cases using doing large image analysis and leveraging system memory, leveraging the CPU to do that, we've been talking about that for several generations now. Right, going back to Cascade Lake, going back to what we would call 14th generation power Edge. And so now as we prepare and continue to unveil, kind of we're in launch season, right, you and I were talking about how we're in launch season. As we continue to unveil and launch more products, the performance improvements are just going to be outstanding and we'll continue that evolution that Scott described. >> Yeah, I'd like to applaud Dell just for a moment for its restraint. Because I know you could've come in and taken all of the space in the convention center to show everything that you do. >> Would have loved to. >> In the HPC space. Now, worst kept secrets on earth at this point. Vying for number one place is the fact that there is a new Mission Impossible movie coming. And there's also new stuff coming from Intel. I know, I think allegedly we're getting close. What can you share with us on that front? And I appreciate it if you can't share a ton of specifics, but where are we going? David just alluded to it. >> Yeah, as David talked about, we've been working on some of these things for many years. And it's just, this momentum is continuing to build, both in respect to some of our hardware investments. We've unveiled some things both here, both on the CPU side and the accelerator side, but also on the software side. OneAPI is gathering more and more traction and the ecosystem is continuing to blossom. Some of our AI and HPC workloads, and the combination thereof, are becoming more and more viable, as well as displacing traditional approaches to some of these problems. And it's this type of thing where it's not linear. It all builds on itself. And we've seen some of these investments that we've made for a better half of a decade starting to bear fruit, but that's, it's not just a one time thing. It's just going to continue to roll out, and we're going to be seeing more and more of this. >> So I want to follow up on something that you mentioned. I don't know if you've ever heard that the Charlie Brown saying that sometimes the most discouraging thing can be to have immense potential. Because between Dell and Intel, you offer so many different versions of things from a fit for function perspective. As a practical matter, how do you work with customers, and maybe this is a question for you, David. How do you work with customers to figure out what the right fit is? >> I'll give you a great example. Just this week, customer conversations, and we can put it in terms of kilowatts to rack, right. How many kilowatts are you delivering at a rack level inside your data center? I've had an answer anywhere from five all the way up to 90. There's some that have been a bit higher that probably don't want to talk about those cases, kind of customers we're meeting with very privately. But the range is really, really large, right, and there's a variety of environments. Customers might be ready for liquid today. They may not be ready for it. They may want to maximize air cooling. Those are the conversations, and then of course it all maps back to the workloads they wish to enable. AI is an extremely overloaded term. We don't have enough time to talk about all the different things that tuck under that umbrella, but the workloads and the outcomes they wish to enable, we have the right solutions. And then we take it a step further by considering where they are today, where they need to go. And I just love that five to 90 example of not every customer has an identical cookie cutter environment, so we've got to have the right platforms, the right solutions, for the right workloads, for the right environments. >> So, I like to dive in on this power issue, to give people who are watching an idea. Because we say five kilowatts, 90 kilowatts, people are like, oh wow, hmm, what does that mean? 90 kilowatts is more than 100 horse power if you want to translate it over. It's a massive amount of power, so if you think of EV terms. You know, five kilowatts is about a hairdryer's around a kilowatt, 1,000 watts, right. But the point is, 90 kilowatts in a rack, that's insane. That's absolutely insane. The heat that that generates has got to be insane, and so it's important. >> Several houses in the size of a closet. >> Exactly, exactly. Yeah, in a rack I explain to people, you know, it's like a refrigerator. But, so in the arena of thermals, I mean is that something during the development of next gen architectures, is that something that's been taken into consideration? Or is it just a race to die size? >> Well, you definitely have to take thermals into account, as well as just the power of consumption themselves. I mean, people are looking at their total cost of ownership. They're looking at sustainability. And at the end of the day, they need to solve a problem. There's many paths up that mountain, and it's about choosing that right path. We've talked about this before, having extremely thoughtful partners, we're just not going to common-torily try every single solution. We're going to try to find the ones that fit that right mold for that customer. And we're seeing more and more people, excuse me, care about this, more and more people wanting to say, how do I do this in the most sustainable way? How do I do this in the most reliable way, given maybe different fluctuations in their power consumption or their power pricing? We're developing more software tools and obviously partnering with great partners to make sure we do this in the most thoughtful way possible. >> Intel put a lot of, made a big investment by buying Habana Labs for its acceleration technology. They're based in Israel. You're based on the west coast. How are you coordinating with them? How will the Habana technology work its way into more mainstream Intel products? And how would Dell integrate those into your servers? >> Good question. I guess I can kick this off. So Habana is part of the Intel family now. They've been integrated in. It's been a great journey with them, as some of their products have launched on AWS, and they've had some very good wins on MLPerf and things like that. I think it's about finding the right tool for the job, right. Not every problem is a nail, so you need more than just a hammer. And so we have the Xeon series, which is incredibly flexible, can do so many different things. It's what we've come to know and love. On the other end of the spectrum, we obviously have some of these more deep learning focused accelerators. And if that's your problem, then you can solve that problem in incredibly efficient ways. The accelerators themselves are somewhere in the middle, so you get that kind of Goldilocks zone of flexibility and power. And depending on your use case, depending on what you know your workloads are going to be day in and day out, one of these solutions might work better for you. A combination might work better for you. Hybrid compute starts to become really interesting. Maybe you have something that you need 24/7, but then you only need a burst to certain things. There's a lot of different options out there. >> The portfolio approach. >> Exactly. >> And then what I love about the work that Scott's team is doing, customers have told us this week in our meetings, they do not want to spend developer's time porting code from one stack to the next. They want that flexibility of choice. Everyone does. We want it in our lives, in our every day lives. They need that flexibility of choice, but they also, there's an opportunity cost when their developers have to choose to port some code over from one stack to another or spend time improving algorithms and doing things that actually generate, you know, meaningful outcomes for their business or their research. And so if they are, you know, desperately searching I would say for that solution and for help in that area, and that's what we're working to enable soon. >> And this is what I love about oneAPI, our software stack, it's open first, heterogeneous first. You can take SYCL code, it can run on competitor's hardware. It can run on Intel hardware. It's one of these things that you have to believe long term, the future is open. Wall gardens, the walls eventually crumble. And we're just trying to continue to invest in that ecosystem to make sure that the in-developer at the end of the day really gets what they need to do, which is solving their business problem, not tinkering with our drivers. >> Yeah, I actually saw an interesting announcement that I hadn't been tracking. I hadn't been tracking this area. Chiplets, and the idea of an open standard where competitors of Intel from a silicone perspective can have their chips integrated via a universal standard. And basically you had the top three silicone vendors saying, yeah, absolutely, let's work together. Cats and dogs. >> Exactly, but at the end of the day, it's whatever menagerie solves the problem. >> Right, right, exactly. And of course Dell can solve it from any angle. >> Yeah, we need strong partners to build the platforms to actually do it. At the end of the day, silicone without software is just sand. Sand with silicone is poorly written prose. But without an actual platform to put it on, it's nothing, it's a box that sits in the corner. >> David, you mentioned that 90% of power age servers now support GPUs. So how is this high-performing, the growth of high performance computing, the demand, influencing the evolution of your server architecture? >> Great question, a couple of ways. You know, I would say 90% of our platforms support GPUs. 100% of our platforms support AI use cases. And it goes back to the CPU compute stack. As we look at how we deliver different form factors for customers, we go back to that range, I said that power range this week of how do we enable the right air coolant solutions? How do we deliver the right liquid cooling solutions, so that wherever the customer is in their environment, and whatever footprint they have, we're ready to meet it? That's something you'll see as we go into kind of the second half of launch season and continue rolling out products. You're going to see some very compelling solutions, not just in air cooling, but liquid cooling as well. >> You want to be more specific? >> We can't unveil everything at Supercompute. We have a lot of great stuff coming up here in the next few months, so. >> It's kind of like being at a great restaurant when they offer you dessert, and you're like yeah, dessert would be great, but I just can't take anymore. >> It's a multi course meal. >> At this point. Well, as we wrap, I've got one more question for each of you. Same question for each of you. When you think about high performance computing, super computing, all of the things that you're doing in your partnership, driving artificial intelligence, at that tip of the spear, what kind of insights are you looking forward to us being able to gain from this technology? In other words, what cool thing, what do you think is cool out there from an AI perspective? What problem do you think we can solve in the near future? What problems would you like to solve? What gets you out of bed in the morning? Cause it's not the little, it's not the bits and the bobs and the speeds and the feats, it's what we're going to do with them, so what do you think, David? >> I'll give you an example. And I think, I saw some of my colleagues talk about this earlier in the week, but for me what we could do in the past two years to unable our customers in a quarantine pandemic environment, we were delivering platforms and solutions to help them do their jobs, help them carry on in their lives. And that's just one example, and if I were to map that forward, it's about enabling that human progress. And it's, you know, you ask a 20 year version of me 20 years ago, you know, if you could imagine some of these things, I don't know what kind of answer you would get. And so mapping forward next decade, next two decades, I can go back to that example of hey, we did great things in the past couple of years to enable our customers. Just imagine what we're going to be able to do going forward to enable that human progress. You know, there's great use cases, there's great image analysis. We talked about some. The images that Scott was referring to had to do with taking CAT scan images and being able to scan them for tumors and other things in the healthcare industry. That is stuff that feels good when you get out of bed in the morning, to know that you're enabling that type of progress. >> Scott, quick thoughts? >> Yeah, and I'll echo that. It's not one specific use case, but it's really this wave front of all of these use cases, from the very micro of developing the next drug to finding the next battery technology, all the way up to the macro of trying to have an impact on climate change or even the origins of the universe itself. All of these fields are seeing these massive gains, both from the software, the hardware, the platforms that we're bringing to bear to these problems. And at the end of the day, humanity is going to be fundamentally transformed by the computation that we're launching and working on today. >> Fantastic, fantastic. Thank you, gentlemen. You heard it hear first, Intel and Dell just committed to solving the secrets of the universe by New Years Eve 2023. >> Well, next Supercompute, let's give us a little time. >> The next Supercompute Convention. >> Yeah, next year. >> Yeah, SC 2023, we'll come back and see what problems have been solved. You heard it hear first on theCube, folks. By SC 23, Dell and Intel are going to reveal the secrets of the universe. From here, at SC 22, I'd like to thank you for joining our conversation. I'm Dave Nicholson, with my co-host Paul Gillin. Stay tuned to theCube's coverage of Supercomputing Conference 22. We'll be back after a short break. (techno music)

(upbeat music) >> Welcome back, everyone. Live coverage here at KubeCon + CloudNativeCon here in Detroit, Michigan. I'm John Furrier, your host of theCUBE for special one-on-one conversation with Scott Johnston, who's the CEO of Docker, CUBE alumni, been around the industry, multiple cycles of innovation, leading one of the most important companies in today's industry inflection point as Docker what they've done since they're, I would say restart from the old Docker to the new Docker, now modern, and the center of the conversation with containers driving the growth of Kubernetes. Scott, great to see you. Thanks for coming on theCUBE. >> John, thanks for the invite. Glad to be here. >> You guys have had great success this year with extensions. Docker as a business model's grown. Congratulations, you guys are monetizing well. Pushing up over 50 million. >> Thank you. >> I hear over pushing a hundred million maybe. What the year to the ground will tell me, but it's good sign. Plus you've got the community and nurturing of the ecosystem continuing to power away and open source is not stopping. It's thundering away growth. Younger generation coming in. >> That's right. >> Developer tool chain that you have has become consistent. Almost de facto standard. Others are coming in the market. A lot of competition emerging. You got a lot going on right now. What's going on? >> Well, I know it's fantastic time in our industry. Like all companies are becoming software companies. That means they need to build new applications. That means they need developers to be productive and to be safely productive. And we, and this wonderful CNCF ecosystem are right in the middle of that trend, so it's fantastic. >> So you have millions of developers using Docker. >> Tens of millions. >> Tens of millions of developed Docker and as the market's changing, I was commenting before we came on camera, and I'd love to get your reaction, comment on it. You guys represent the modernization of containers, open source. You haven't really changed how open source works, but you've kind of modernized it. You're starting to see developers at the front lines, more and more power going to developers. >> Scott: That's right. >> They want self-service. They vote with their code. >> That's right. >> They vote with their actions. >> Scott: That's right. >> And if you take digital transformation to its conclusion, it's not IT serves the business or it's a department, the company is IT. >> That's right. >> The company is the application, which means developers are running everything. >> Yes, yes. I mean, one of the jokes, not jokes in the valley is that Tesla is in a car company. Tesla is a computer company that happens to have wheels on the computer. And I think we can smile at that, but there's so many businesses, particularly during COVID, that realize that. What happened during COCID? If you're going to the movies, nope, you're now going to Netflix. If you're going to the gym, now you're doing Peloton. So this realization that like I have to have a digital game, not just on the side, but it has to be the forefront of my business and drive my business. That realization is now any industry, any company across the board. >> We've been reporting aggressively for past three years now. Even now we're calling some things supercloud. If companies, if they don't realize that IT is not a department, they will probably be out of business. >> That's a hundred percent. >> It's going to transform into full on invisible infrastructure. Infrastructure as code, whatever you want to call that going, configuration, operations, developers will set the pace. This has a lot to do with some of your success. You're at the beginning of it. This is just the beginning. What can you talk about that in your mind is contributing to the success of Docker? I know you're going to say team, everything, I get that, but like what specifically in the industry is driving Docker's success right now? >> Well, it did. We did have a fantastic team. We do have a fantastic team and that is one of the reasons, primary reasons our success. But what is also happening, John, is because there's a demand for applications, I'll just throw it out there. 750 million new applications are coming in the market in the next two years. That is more applications that have been developed in the entire 40 years history of IT. So just think about the productivity demands that are coming at developers. And then you also see the need to do so safely, meaning ship quickly, but ship safely. And yet 90 some percent of every application consists of open source components that are now on attack surface for criminals. And so typically our industry has had to say one or the other, okay, you can ship quickly but not safely, or you can ship safely, but it's not going to go fast. And one of the reasons I think Docker is where it is today is that we're able to offer both. We're able to unlock that you can ship quickly, safely using Docker, using the Docker toolchain, using integrations we have with all the wonderful partners here at CNCF that is unique. And that's a big reason why we're seeing the success we're seeing. >> And you're probably pleased with extensions this year. >> Yes. >> The performance of extensions that you launched at DockerCon '22. >> Yes. Well, extensions are part of that story and that developers have multiple tools. They want choice, developers like choice to be productive and Docker is part of that, but it's not the only solution. And so Docker extensions allow the monitoring providers and the observability and if you want a separate Kubernetes stack, like all of that flexibility, extensions allows. And again, offers the power and the innovation of this ecosystem to be used in a Docker development and context. >> Well, I want to get into some of the details of some of your products and how they're evolving. But first I want to get your thoughts on the trend line here that we reported at the opening segment. The hot story is WebAssembly, the Wasm, which really got a lot of traction or interest. People enthous about it. >> Interest, yeah. >> Lot of enthusiasm. Confidence we'll see how that evolves, but a lot of enthusiasm for sure. I've never seen something this hyped up since Envoy, in my opinion. So a lot of interest from developers. What is Wasm or WebAssembly is actually what it is, but Wasm is the codeword or nickname. What is Wasm? >> So in brief, WebAssembly is a new application type, full stop. And it's just enough of the components that you need and it's just a binary format that is very, very secure. And so it's lightweight, it's fast and secure. And so it opens up a lot of interesting use cases for developer, particularly on the edge. Another use case for Wasm is in the browser. Again, lightweight, fast, secure also. >> John: Sounds like an app server to me. >> And so we think it's a very, very interesting trend. And you ask, Okay, what's Docker's role in that? Well, Docker has been around eight years now, eight plus years, tens of millions developers using it. They've already made investments in skills, talent, automation, toolchains, pipelines. And Docker started with Linux containers as we know, then brought that same experience to Windows containers, then brought it to serverless functions. About 25% of Amazon Lambdas are OCI image containers. And so we were seeing that trend. We were also seeing the community actually without any prompting from us, start to fork and play with Docker and apply it to Wasm. And we're like, Huh, that's interesting. What if we helped get behind that trend, such that you changed just one line of a Docker file, now you're able to produce Wasm objects instead of Linux containers and just bring that same easy to use. >> So that's not a competition to Docker's? >> Not a competition at all. In fact, very complimentary. We showed off on Monday at the Wasm day, how in the same Docker compose application, multi-service application. One service is delivered via Linux container, Another service is delivered via Wasm. >> And Wasm is what? Multiple languages? 'Cause what is it? >> Yes. So the binary can be compiled from multiple languages. So RAS, JavaScript, on and on and on. At the end of the day, it's a smaller binary that provides a function, typically a single function that you can stand up and deploy on an edge. You can stand up and deploy on the server side or stand up and deploy on the browser. >> So from a container standpoint, from your customer standpoint, what a Linux container is is a similar thing to what a Wasm container is. >> They could implement the same function. That's right. Now a Linux container can have more capabilities that a function might not have, but that's. >> John: From a workflow standpoint. >> That's right. And that's more of a use case by use case standpoint. What we serve is we serve developers and we started out serving developers with Linux containers, then Windows containers, then Lambdas, now Wasm. Whatever other use case, what other application type comes along, we want to be there to serve developers. >> So one of the things I want to get your thoughts on, because this has come up in a couple CUBE interviews before, and we were talking before we came on camera, is developers want ease of use and simplicity. They don't want more steps to do things. They don't want things harder. >> That's right. So the classic innovation is reduce the time it takes to do something, reduce the steps, make it easier. That's a formula of success. >> Scott: That's right. >> When you start adding more toolchains into the mix, you get tool sprawl. So that's not really, that's antithesis to developer. So the argument is, okay, do I have to use a new tool chain for Wasm? Is that a fact or no? >> That's exactly right. That was what we were seeing and we thought, well, how can Docker help with this situation? And Docker can help by bringing the same existing toolchain that developers are already familiar with. The same automation, the same pipelines. And just by changing a line of Docker file, changing a single line of composed file, now they get the power of Wasm unlocked in the very same tools they were using before. >> So your position is, hey, don't adopt some toolchain for Wasm. You can just do it in line with Docker. >> No need to, no need to. We're providing it right there out of the box, ready for them. >> That's raise and extend, as they would say, build Microsoft strategy there. That's nice. Okay, so let's get back into like the secure trusted 'cause that was another theme at DockerCon. We covered that deeply. Software supply chain, I was commenting on my intro with Savannah and Lisa that at some point open source means so plentiful. You might not have to write code. You got to glue together. So as code proliferates, the question what's in there? >> That's right. This is what they call the software supply chain. You've been all over this. Where are we with this? Is it harder now? Is it easier? Was there progress? Take us through what's the state of the art. I think we're early on this one, John, in the industry because I think the realization of how much open source is inside a given app is just now hitting consciousness. And so the data we have is that for any given application, anywhere from 75 to 85% is actually not unique to the developer or the organization. It's open source components that they have put together. And it's really down to that last 15, 25%, which is their own unique code that they're adding on top of all this open source code. So right there, it's like, aha, that's a pretty interesting profile or distribution of value, which means those open source components, where are they finding them? How are they integrating them? How do they know those open source components are going to be supported and trusted and secured? And that's the challenge for us as an industry right now is to make it just obvious where to get the components, how safe they are, who's standing behind them, and how easy it is to assemble them into a working application. >> All right. So the question that I had specifically on security 'cause this had come up before. All good on the trusted and I think that message is evergreen. It's a north star. That's a north star for you. How are you making images more secure and how are you enabling organizations to identify security issues in containers? Can you share your strategy and thoughts on that particular point? >> Yes. So there's a range of things in the secure software supply chain and it starts with, are you starting with trusted open source components that you know have support, that you know are secured? So in Docker Hub today, we have 14 million applications, but a subset of that, we've worked with the upstream providers to basically designate as trusted open source content. So this is the Docker official images, Docker verified publisher images, Docker sponsored open source. And those different categories have levels of certification assurance that they must go through. Generate an SBOM, so you know what's inside that container. It has to be scanned by a scanning tool and those scanning results have to be made available. >> John: Are you guys scanning that? >> So we provide a scanner, they can use another scanner as long as they publish the results of that scan. And then the whole thing is signed. >> Are you publishing the results on your side too? >> Yeah, we published our results through an open database that's accessible to all. >> Free. >> Free, a hundred percent free. You come in and you can see every image on hub. >> So I'm a user, for free I can see security vulnerabilities that are out there that have been identified. >> By version, by layer, all the way through. And you can see tracking all the way back to the package that's upstream. So you know how to remediate and we provide recommendations on how to remediate that with the latest version. >> John: And you don't charge for that. >> We don't charge for that. We do not charge for that. And so that's the trusted upstream. >> So organization can look at the scan, they can look at the scan data and hopefully, what happens if they're not scanned? >> So we provide scanning tools both for the local environments for Docker Desktop, as well as for hub. So if you want to do your own scan, so for example, when you're that developer adding the 15, 25%, you got to scan your stuff as well. Not just leave it up to the already scanned components. And so we provide tools there. We also provide tools to track the packages that that developer might be including in their custom code, all the way back upstream to whatever MPM repo or what have you that they picked up. And then if there's a CVE 30 days later, we also track that as well. We say, Hey, that package was was safe 29 days ago, but today CVE just came out, better upgrade to the latest version and get that out there. So basically if you get down to it, it's like start with trusted components and then have observability not just on the moment. >> And scan all the time. >> Scan all the time and scanning gives you that observability and importantly not just at that moment, but through the lifecycle of the application, through lifecycle of the artifact. So end-to-end 24/7 observability of the state of your supply chain. That's what's key, John. >> That's the best practice. >> That's the key. That's the key. >> Awesome, I agree. That's great. Well, I'm glad we've dug into that's super important. Obviously organizations can get that scanning that's exceed the vulnerabilities, that can take action. That's going to be a big focus here for you, security. It's not going to stop, is it? >> It's never going to stop because criminals are incentive to keep attacking. And so it's the gift that keeps on giving, if you will. >> Okay, so let's get into some of the products. Docker Desktop seems to be doing well. Docker Hub has always been a staple of it. And how's that going? >> Yeah, Docker Hub has 18 million monthly actives hitting it and that's growing by double digits year over year. And what they're finding, going back to our previous thread, John, is that they're coming there for the trusted content. In fact, those three categories that I referenced earlier are about 2000 applications of the 14 million. And yet they represent 56% of the 15 billion downloads a month from Docker Hub. Meaning developers are identifying that, hey, I want trusted source. We raise those in the search results and we have a visual cue. And so that's the big driver of hub's growth right now, is I want trusted content, where do I go? I go to Hub, download that trusted open source and I'm ready to go. >> I have been seeing some chatter on the internet and some people's sharing that they're looking at other places, besides hub, to do some things. What's your message to folks out there around Docker Hub? Why Docker Hub and desktop together? 'Cause you mentioned the toolchain before, but those two areas, I know they've been around for a while, you continue to work on them. What's the message to the folks out there about stay with the hub? >> Sure. I mean the beauty of our ecosystem is that it's interoperable. The standards for build, share and run, we're all using them here at CNCF. So yes, there's other registries. What we would say is we have the 18 million monthly active that are pulling, we have the worldwide distribution that is 24/7 high, five nines reliability, and frankly, we're there to provide choice. And so yes, we have have our trusted content, but for example, the Tanzu apps, they also distribute through us. Red Hat applications also distribute through us because we have the reach and the distribution and offer developers choice of Dockers content, choice of Red Hats content, choice of VMware's, choice of Bitnami, so on so forth. So come to the hub for the distribution to reach and that the requirements we have for security that we put in place for our publishers, give users and publishers an extra degree of assurance. >> So the Docker Hub is an important part of the system? >> Scott: Yes, very much so. >> And desktop, what's new with desktop? >> So desktop of course is the other end of the spectrum. So if trusted components start up on Docker Hub, developers are pulling them down to the desktop to start assembling their application. And so the desktop gives that developer all the tools he or she needs to build that modern application. So you can have your build tooling, your debug tooling, your IDE sitting alongside there, your Docker run, your Docker compose up. And so the loop that we see happening is the dev will have a database they download from hub, a front-end, they'll add their code to it and they'll just rapidly iterate. They'll make a change, stand it up, do a unit test, and when they're satisfied do a git commit, off it goes into production. >> And your goal obviously is to have developers stay with Docker for their toolchain, their experience, make it their home base. >> And their trusted content. That's right. And the trusted content and the extensions are part of that. 'Cause the extensions provide complimentary tooling for that local experience. >> You guys have done an amazing job. I want to give you personal props. I've been following Docker from the beginning when they had the pivot, they sold the enterprise to Mirantis, went back to the roots, modernized, riding the wave. You guys are having a good time. I got to ask the question 'cause people always want to know 'cause open source is about transparency. How you guys making your money? Business is good. How's that work and what was the lucky, what was the not lucky strike, but what was the aha moment? What was the trigger that just made you just kick in this new monetization growth wave? >> So the monetization is per seat, per developer seat. And that changed in November 2019. We were pricing on the server side before, and as you said, we sold that off. And what changed is some of the trends we were talking about that the realization by all organizations that they had to become software companies. And Docker provided the productivity in an engineered desktop product and the trusted content, it provided the productivity safely to developers. And frankly then we priced it at a rate that is very reasonable from an economic standpoint. If you look at developer productivity, developers are paid anywhere from 150 to 300 to 400, 500,000 even higher. >> But when you're paying your developers that much, then productivity is a premium. And what we were asking for from companies from a licensing standpoint was really a modest relative to the making those developers product. >> It's not like Oracle. I mean talk about extracting the value out of the customer. But your point is your positioning is always stay quarter of the open source, but for companies that adopt the structural change to be developer first, a software company, there's a premium to pay because you devalue there. >> And need the tooling to roll it out at scales. So the companies are paying us. They're rolling it out to tens of thousand developers, John. So they need management, they need visibility, they need guardrails that are all around the desktop. So, but just to put a stat on it, so to your point about open source and the freemium wheel working, of our 13 million Docker accounts, 12 are free, about a million are paid for accounts. And that's by design because the open source. >> And you're not gouging developers per se, it's just, not gouging anyone, but you're not taking money out of their hands. It's the company. >> If the company is paying for their productivity so that they can build safely. >> More goodness more for the developer. >> That's right. That's right. >> Gouging would be more like the Oracle strategy. Don't comment. You don't need to comment. I keep saying that, but it's not like you're taxing. It's not a heavy. >> No, $5 a month, $9 a month, $24 a month depending on level. >> But I think the big aha to me and in my opinion is that you nailed the structural change culturally for a company. If they adopt the software ecosystem approach for transforming their business, they got to pay for it. So like a workflow, it's a developer. >> It's another tool. I mean, do they pay for their spreadsheet software? Do they pay for their back office ERP software? They do >> That's my point. >> to make those people popular or sorry, make those people successful, those employees successful. This is a developer tool to make developer successful. >> It's a great, great business model. Congratulations. What's next for you guys? What are you looking for? You just had your community events, you got DockerCon coming up next year. What's on the horizon for you? Put a plugin for the company. What are you looking for? Hiring? >> Yeah, so we're growing like gangbusters. We grew from 60 with the reset. We're now above 300 and we're continuing to grow despite this economic climate. Like our customers are very much investing in software capabilities. So that means they're investing in Docker. So we're looking for roles across the board, software engineers, product managers, designers, marketing, sales, customer success. So if you're interested, please reach out. The next year is going to be really interesting because we're bringing to market products that are doubling down on these areas, doubling down a developer productivity, doubling down on safety to make it even more just automatic that developers just build so they don't have to think about it. They don't need a new tool just to be safer. We hinted a bit about automating SBOM creation. You can see more of that pull through. And in particular, developers want to make the right decision. Everyone comes to work wanting to make the right decision. But what they often lack is context. They often lack like, well, is this bit of code safe or not? Or is this package that I just downloaded over here safe or not? And so you're going to see us roll out additional capabilities that give them very explicit contextual guidance of like, should you use this or not? Or here's a better version over here, a safer version over there. So stay tuned for some exciting stuff. >> It's going to be a massive developer growth wave coming even bigger we've ever seen. Final questions just while I got you here. Where do you see WebAssembly, Wasm going? If you had to throw a dart at the board out a couple years, what does it turn into? >> Yeah, so I think it's super exciting. Super exciting, John. And there's three use cases today. There's browser, there's edge, and there's service side in the data center of the cloud. We see the edge taking off in the next couple years. It's just such a straight line through from what they're doing today and the value that standing up a single service on the edge go. The service side needs some work on the Wasm runtime. The Wasm runtime is not multi-threaded today. And so there's some deep, deep technical work that's going on. The community's doing a fantastic job, but that'll take a while to play through. Browsers also making good progress. There's a component model that Wasm's working on that'll really ignite the industry. That is going to take another couple years as well. So I'd say let's start with the edge use case. Let's get everyone excited about that value proposition. And these other two use cases will come along. >> It'll all work itself out in the wash as open source always does. Scott Johnston, the Chief Executive Officer at Docker. Took over at the reset, kicking butt and taking names. Congratulations. You guys are doing great. Continue to power the developer movement. Thanks for coming on. >> John, thanks so much. Pleasure to be here. >> We're bringing you all the action here. Extracting the signal from the noise. I'm John Furrier, day one of three days of wall-to-wall live coverages. We'll be back for our next guest after this short break. (gentle music)

>>Hey everyone. Welcome back to Chicago. Lisa Martin here with John Furrier. We're live with the Cube at Ansible Fest 2022. This is not only Ansible's 10th anniversary, John Wood. It's the first in-person event in three years. About 14 to 1500 people here talking about the evolution of automation, really the democratization opportunities. Ansible >>Is money, and this segment's gonna be great. Cub alumni are back, and we're gonna get an industry perspective on the automation journey. So it should be great. >>It will be great. We've got two alumni back for the price of wine. Scott Canine joins us, Director of Worldwide Automation at Kendra. A Nelson Shoe is back as well. Product marketing director at Red Hat. Guys, great to have you back on the, on the live cube. >>Oh, thank you for having us. And, and you know, it's really great to be back here live and in person and, and, you know, get a chance to see you guys again. >>Well, and also you get, you get such a sense of the actual Ansible community here. Yeah. And, and only a fraction of them that are here, but people are ready to be back. They're ready to collaborate in person. And I always can imagine the amount of innovation that happens at these events, just like off the show floor, people bumping into each other and go, Hey, I had this idea. What do you think, Scott? It's been just about a, a year since Kenel was formed. Talk to us about the last close to a year and what that's been like. Especially as the world has been so, chops >>The world been Yeah, exactly. Topsy turvy. People getting back to working in person and, and everything else. But, you know, you know, throw on that what we've done in the last year, taking Kendra, you know, outside of being a part of ibm Right. In our own company at this point, you know, and you know, you hear a lot of our executives and a lot of our people when we talk about it, like, Oh yeah, it's, you know, it's a $19 billion startup. We got freedom of action. We can do all these different things. But, you know, one of the ways I look at it is we are a $19 billion startup, which means we've got a lot of companies out there that are trusting us to, no matter what change we're doing, continue to deliver their operations, do it flawlessly, do it in a way so they can continue to, to service their clients effectively and, and don't break 'em. And, and so that to me, you know, the way we do that and the way I focusing on that is automation Ansible, obviously corridor strategy, getting there. >>Yeah. And I'd like to get your thoughts too, because we seeing a trend, we've been reporting on this with the cloud growth and the scale of cloud and distributed computing going cloud native, the automation is the front and piece center of all conversations. Automate this, make developers go faster. And with the pandemic, we're coming out of that pandemic. You post pandemic with large scale automation, system architecture, a lot more like architectural conversations and customers leaning on new things. Yeah. What are you seeing in this automation framework that you guys are talking about? What's been the hot playbook or recipe or, or architecture to, you know, play on words there, but I mean, this is kind of the, the key focus. >>Yeah. I mean, if you, one of the things that I com customer comp talks, I've been pulled into a lot recently, have all been around thinking about security, right? A lot in terms of security and compli, I think, I mean, think about the world environment as a whole, right here, everything that's been going on. So, so people are, are conscious of how much energy that's being used in their data centers, right? And people are conscious of how secure they are, right? Are they, you know, the, their end customers are trusting them with data information about them, right? And, and they're trusting us to make sure that those systems are secure to make sure that, you know, all that is taken care of in the right way. And so, you know that what's hot security and compliance, right? What can we do in the energy space, right? Can we do things to, to help clients understand better their energy consumption as, as, you know, especially as we get now in Europe to the winter months, can we do things there that'll help them also be better in that space, Right? Reduce their >>Costs and a lot more cloud rails obviously right there. You got closer and you got now Ansible, they're kind of there to help the customers put it together at scale. This has been the big conversation last year, remember was automate, automate, automate, right? This year it's automation everywhere, in every piece of the, the landscape edge. It's been big discussion tomorrow here about event driven stuff. This is kind of a change of focus and scope. Can you like, share your thoughts on how you see how big this is in terms of the, the, the customer journey >>In terms, I'm sorry, in terms of, >>In terms of their architecture, how they're rolling out automation, >>What's their Yeah, yeah. So, so in terms of their rolling out arch, arch in terms of them consuming architecture, right? And the architecture or consuming automation. Yeah. And rolling out the architecture for how they do that. You know, again, it, to me it's, it's a lot of, it's been focused around how do we do this in the most secure manner possible? How do we deliver the service to them and the most secure managers possible? How do they understand that it, that they can trust the automation and it's doing the right things on their environments, right? So it's not, you know, we're not pushing out or, or you know, it's not making bad policies >>And they're leaning on you guys. >>It's, it's not being putting malware out there, right? At the same time we're doing different things. And so they really rely on, on our customers, rely on us to really help them with that journey. >>I think a, a big part of that with Kendra as such a great partner and so many customers trusting them, is the fact that they really understand that enterprise. And so as, as Scott talks about the security aspect, we're not just talking to the IT operations people, right? We're talking across the enterprise, the security, the infrastructure, and the automation around that. So when we talk about hybrid cloud, we talk about network and security edge is a natural conversation to that, cuz absolutely at the edge network and security automation is critical. Otherwise, how are you gonna manage just the size of your edge as it grows? >>Yeah. And, and we've been, and that's another area that we've been having a a lot more conversations with clients on, is how do you do automation for IOT and edge based devices, right? We, you know, traditionally data center cloud, right? Kind of the core pieces of where we've been focusing on, but I, you know, recently I've been seeing a lot more opportunities and a lot more companies coming forward saying, you know, help us with the network space, help us with the iot space. We really wanna start getting to that level of automation and that part of our environments. And what >>Are some of the key barriers that customers are coming to you with saying, help us overcome these so that they can, you're smiling so that they can, can obviously attract and retain the right talent and also be able to determine what processes to automate to extract the most value and the most ROI for the organization. >>Yeah. And, and, and you know, that's, that's an interesting, the ROI conversation's always an interesting one, right? Because when you start having that with customers, some of the first things they think about, or the first, the natural place people go is, >>Oh, >>Labor takeout. I can do this with less people. Right? But that's not the end all be all of automation. In fact, you know, my personal view is that's, you know, maybe the, the the bottom 30%, right? That's kind of, then you have to think about the value you get above and beyond that standard operations, standardized processes, right? How are you gonna able to do those faster? How's that enabling your business, right? What's all the risks that's now been taken out by having these changes codified, right? By having them done in a manner that is repeatable, scalable, and, and, and really gets them to the point of, you know, what their business needs from an operational standpoint and >>Extracting that value. Nelson, talk about the automation journey from your perspective, How have you seen that evolve from your lens, especially over the last couple of years? >>It's a great question. You know, it's interesting because obviously all of our customers are at different stages of their automation journey. We have someone that just beginning looking at automation, they've been doing old scripts, if you will, the past. And then we have more that are embracing it, right? As a culture. So we have customers that are building cultures of automation, right? They have standups, they have automation guilds. It's, it's kind of a little bit of a, of a click. It's kind of, you know, building up steam in that momentum. And then we have, you know, the clients that Kindra works with, right? And they're very much focused on automation because they understand that they have a lack of resources, they don't have the expertise, they don't have the time to be able to deliver all this. Yeah. And that's really, Kendra really comes into effect to really help those customers accelerate their automation. Yeah. Right. And to that point, you know, we're doing a lot of innovation work with Kendra and we lean on them heavily because, you know, they're willing to make that commitment as a partner both on the, the, the day to day work that we do together as well as Ford looking at different architectures. >>Yeah. And, and the community aspect from our side internally has been tremendous in terms of us being able to expand what we'll be doing with automation and, and what a's been able to do with that community to get there. Right? Yeah. So to last month we did about 33 million day one, day two operations through automation, right? So that's what we've done. If you look at it, you know, if I break it down, it's really 80% of that standard global process stuff that we bring to the table. 20% of that is what our, our account teams are bringing specifically to their clients based on their needs and what they need to get done. Right. You know, one of my favorite examples of of, of this, right? We have a automation example out there for a, a client we've got in Japan, right? They tie, you know, they're, they're obviously concerned, you know, security a everything else that we've been talking about. >>They're also concerned about resiliency, right? In the face of natural disasters. Yeah. So they took our automation, they said, Okay, we're gonna tie your platform to seismic data that's coming through, and we understand what seismic data's happening. Okay, it's hitting a certain event. Let's automatically start kicking off resiliency operations so we can be prepared and thus keeps serving our clients when that's happening. Right? And that's not something like when you talk about a global team coming in and, and saying, we're gonna do all this. It's that community aspect, getting, getting the account focus, getting to that level, right? That's really brings value to clients. And that's one of the use cases, you know, and aaps enabled us to do with the a the community approach. We've got >>Now talk about this partnership. I think earlier when we were talking to Stephanie and Tom, the bottoms up Ansible community with top down kind of business objectives kind of come into play. You guys have a partnership where it's, there's some game changing things happening because Ansible's growing, continuing to have that scope grow from a skill set standpoint, expand the horizons, doing more automation at scale, and then you got business objectives where people wanna move faster in their, in their digital transformation. So to me, it's interesting that this part kind of hits both. >>It does really hit both. I mean, you know, the community cloud that Kendra has is so critical, right? Because they build that c i CF architecture internally, but they follow that community mantra, if you will. And community is so important to us, right? And that's really where we find innovation. So together with what we were call discussing about validated content earlier today becomes critical to build that content to really help people get started, Right? Validated content, content they can depend on and deliver, right? So that becomes critical on the other side, as you mentioned, is the reality of how do we get this done? Yeah. Right? How do we mature, how do we accelerate? And without the ability to drive those solutions to them to fix, if you are the problems that the line of business has. Well, if you don't answer those questions with the innovation, with the community, and then with the ap, it's, it, it does, it's gotta all come >>Together as, I mean, that community framework is interesting. I think we hear a lot in the cube, you know, Hey, let's do this. Sounds good. Who's gonna do it? Someone who's the operator. So there's a little skills gap going on. It's also a transformation in the roles of the operators in particular, and the dev, So the DevOps equation's completely going to the next level, right? And this is where people wanna move faster. So you're seeing a lot more managed services, a lot more Yes. Services that's, I won't say so much top down, but more like, let's do it and here's a play to get it done, right? Then backfill on the hiring, whether it's taking on a little bit of technical debt or going a little faster to get the proof points, >>Right? And I think one of the critical aspects is, you know, Ansible has it certified collections, right? And oftentimes we, we don't, I don't, I meet with customers two, three times a week, right? There's not a single one that doesn't emphasize the importance of partners and the importance of certified collections, Right? And kindra is included in that, right? Because they bring a lot of those certified collections. Use them, leverage them, it's helps customers get a jumpstarter, right? It's a few, it's their easy button, right? But they only get that and they value that because of the support that's there. >>Yeah. Right? They get the with >>The cert. Yeah. I was gonna say, just adding on the certified collections, right? We, so, you know, it was, it was great to see the hub come out with those capabilities because, you know, as we've gone through the last 12 months and, and change, one of the things that we focused more in on is network devices, network support, right? And, and so, you know, some of the certified collections out there for Cisco for F five, right? Some of those things we've been able to take back in and now build on top of with the expertise that we, we have in that space as well. And then use that as a starting point to more value for our clients. >>How is Kentrell working together with, with Red Hat and with Ansible to help organizations like you mentioned Nelson, they're on the journey varies considerably. Some are well on their way, others aren't. But for those to really start developing an automation, first culture, we talked a lot about cultural ship, we talked about it this morning. You can feel the power of that community and driving it, but how do you guys work together to help companies and any industry kind of really start understanding what an automation first culture is and then building it internally and getting some grounds? Well, >>Well, it's interesting, right? One of the, one of the things that really is we found really helpful is assessments, right? So you have silos and pockets of automation, and that's that challenge, right? So to be able to bring that, if you are automation community within an enterprise together, we often go out and we'll do an assessment, right? An automation assessment to really understand holistically how the enterprise could leverage automation not just in the pockets, but to bring it together. And when they bring that automation together, they can share, playbooks can share their experiences, right? And with Kindra and the multiple and the practices they have, right? They really bring that home from an industry perspective. They also bring that home, if you will, from a technology perspective. And they bring that together. So, you know, Kindra in that respect is the glue for our customer success. >>What's news? What's the next big thing that you guys see? Because if this continues down the road, this path, people are gonna get, the winds gonna get the successes. The new beachhead, if you will, is established. You got the edge around the corner. What's next for you guys in the partnership? How do you see it developing? >>No, we're looking at >>No, it's all good. So really, you know, I, I mentioned it earlier and, and the jour the automation journey paralleled by innovation, right? Customers today are automating, they're doing a great job. There's multiple tools out there. We understand we're not gonna be the only tool in the shed, but Ansible can come in and integrate that entire environment. And in a hybrid cloud environment, you want that there, right? I think what next is obviously the hybrid cloud is critical. The edge is critical, right? And I think that, you know, the needs and the requirements that Kindra hears that we have is kind of that future. And, you know, we, we often, often in, in Red Hat, we talk about a north star, right? And when I work with partners, ikin, do we talk about the North Star, where we want to get to? And that is the acceleration of automation. And I think both by the practical aspect of working with our customers and the innovation as partners, as business partners, technology partners will help accelerate >>That. Yeah. Scott, your perspective to bridge to the future is obviously hybrid and edge, how you bringing your customers along? >>Yes. So, so we see, you know, when we talk about my, when I talk about my automation strategy, our automated strategy, right? It's about being automated, orchestrated and intelligent, right? Kind of those, those three layers of the stack. We've been building out a lot of work, what we call our integrated AIOps layer for actionable insights, right? We've got a, you know, a goal to integrate that and, and we have integrated into our automation service for how we're delivering the whole package to our clients so they can better see opportunities for automation. What's the best way to go about it? You know, what are the, what are some of the, the issues they have, vulnerabilities they have in their environment and really bringing it to them in, in a real holistic manner. In fact, we internally, we call it our F five steering wheel, right? Based on the, the race thing, right? >>Because you think about the, the racing cars, f fives know they're right there, right? They got everything they need in front of 'em. Yeah. So our goal is been to, to include that into our automation view and service and build that out, right? So that's one way we're doing it. The additional way is, is through some announcements you probably heard, hopefully heard the last couple weeks through something called Kendra Bridge, right? Kendra Bridge is more the digitization of, of the way we deliver services for our clients to make it easier for them to consume and, and to, to make the barrier to entry for things like getting automation, getting it more in their environment, right? Lower as much as possible, right? So really integrated AIOps kind bridge. Those are really the two ways we see it as, as going forward. >>It's interesting, you know, we live through a lot of these different inflection points in the industry. Every time there's a big inflection point, there's more complexity that needs to be tamed, you know? And so you got innovation. If you got innovation coming and you got the clients wanna simplify and tame the complexity, this is a big part of what you guys do. >>Absolutely. Yeah. I mean, how do we, you know, most, when the clients come to us, right? Like I said, one, it's about trust. They trust us to do it because we can make it easy for them to not have to worry about that, right? Yeah. They don't have to worry about what it takes to secure the environment, manage it, run it, design it, build it for the, the cloud. We give 'em the ability, we give them the ability to focus on their core business while we do the stuff that's important to them, which >>Is absolutely critical that you, you can't emphasize trust in this relationship enough. I wish we had more time, guys, you're gonna have to come back. I think that's basically what this is boil down to. But thanks so much guys for talking with John and me about how Kendra and and Ansible are working together, really enabling your customers to, to unlock the value of automation across their organization and really make some big business changes. We appreciate your insights and your time. Fantastic. Thank you. Happy to do it and happy to do it any time. All right. Our pleasure. Thank you so much for our guests and John Furrier. I'm Lisa Martin. You're watching The Cube Live from Chicago. This is day one of our coverage of Ansible Fest 22. Don't go anywhere. Our next guest joins us in just a minute.

>>Hey everyone. Welcome back to Miami, Miami Beach. Specifically, not a bad location to have a conference. Lisa Martin here with the Cube live at IFS Unleashed. We're gonna be having a great conversation next about Ization moments of Service Rules. Royces here, as is the C of IFS for aerospace and defense. Scott Camani. Nick Ward joins us as well, the VP of Digital Systems at Roll Royce. Guys, excited to have you on the program and welcome back. >>Thank you very much. Nice to be back. It's >>Been three years since the last IFS show. I love How's Scott? I was talking with Darren Roots earlier today and I said, Well, didn't it used to be IFS world? And he said, Yes. And I said, I love the name. I would love to, to unpack that with your cheek marketing officer because it, there's a lot of, of, of power behind Unleash. A lot of companies do such and such world or accelerate, but we're talking about unleashing the power of the technology to help customers deliver those moments of service. Yes. Love it. So Scott, start us off here. Talk about ization. That's a relatively new term to me. Sure. Help me understand what it means, because IFS is a pioneer in this sense. >>We are. So one of the things that IFS is always trying to do is to try to find a way to help our customers to realize a moment of service. And that moment of service is really when they found the ability to delight their customers. And when we look at the way in which we're trying to drive those business outcomes for our customers, ization seems to be at the core of it. So whether it's the ability for a company to use a product, a service, or an outcome, they're driving ization in a way where they're shaping their business. They're orchestrating their customers and their people and their assets behind a val value chain that helps them to provide a delightful experience for their customers. And with IFS being focused on Lifecycle asset management, we no longer have customers that have to choose from best of suite or best of breed. They can actually have both with ifs. And that's something we're really excited to provide to our customers and more excited for our customers to realize that value with their customers, their partners. Along the way. >>You, you mentioned customer delight and it's a term that we, we all use it, right? But there's so much power and, and capabilities and metrics behind that phrase, customer delight, which will unpack Nick bringing you into the conversation. Talk to us a little bit about what your role is at Rolls Royce. My first thought when I saw you was, oh, the fancy cars, but we're talking about aerospace and the fence, so give us a little bit of a history. >>Okay. So yes, we don't make cars is the first point. So we are, we are power, we do power as a service. So we are most well known, I guess for large aircraft airliners. You know, if you've, if you've flown here to Miami, there's probably a 50 50 chance you've flown on a Rod Roy powered aircraft. Our market segment is what we call wide bodied aircraft where you go on, there's two aisles. So the larger section of the market, and we, we provide power, so we provide the engines, but more importantly, we've been a ization company, a service company for at least two decades. We, we have a, a service relationship we call total care. And the whole idea of total care is, yes, I have my engine, it's on my aircraft, but I take care of it. I make sure it's available to fly when you need to fly it. And all of the things that have to come together to make that happen, it's a service company. >>Service company. Talk to me a little bit about, and I wanna get got your perspective as well, but the relationship that Roll Royce and IFS have this is a little bit unique. >>Well, I can start, but I I think Nick's gonna be better served to tell us about that as our customer. Nick and I actually started this journey about four years ago, and what we did was, is we were working closely with our perspective customer Rolls-Royce identified what they were looking for as a desired business outcome. And then we found a way through the technology and the software that we provide to all of our enterprise customers globally to find a solution that actually helped to provide a, an outcome not only to Rolls-Royce, but also to our collective downstream customers, commercial operators around the globe. So that's where we started the journey and we're continuing our discussions around other solutions, but that's how we started and it's been an incredible partnership. We're so happy and proud to have Nick as a customer and a advocate of all things ifs and I'll let him kind of continue from his point of view how he sees the partnership in the relationship. >>No, thank you Scott. I think we've, we've always, we've valued the kind of relationship that we have because I think IFS has always got Rolls Royce in terms of strategic direction. What do we try to do? I said, we're a service company. You know, we, we are, we have to have a service relationship with our, our customers, our airlines. To have a service relationship, you have to be able to connect to your service customer. And ifs is a big part of how we connect for data. That's how do we understand what the airline is doing with the engines, but it's also how we return data back into the airline. So we are, we're get a very close integrated relation between us, our airlines, through a bridge that, that ifs create through the maintenance product. Got it. So it works really well. >>I I think I'd make one other point. One of the things that we've always focused on is quantifiable business value. The only way a partnership like this could possibly work is if we have a desired business outcome, but if we're providing value, So the value work that we did in conjunction with Rolls Royce and really identifying that helped to support the business case that allowed this partnership to really begin and flourish. So I I, I'd be remiss if I didn't mention that business value element that's really core to everything we do and all the, the conversations that Nick and I have. >>Well, it's all about outcomes. Absolutely. It's all about outcomes. It >>Is, it has to be about, it's about moments of service, right? That's why we're here, right? So perhaps a moment of service for Robs Royce is every time you're a passenger, you're going through the terminal. You expect your aircraft to be there, ready, waiting for you to get on and depart on time. And our moment of service is every aircraft takes off on time, every time we live. When we die by the quality of that statement, how well we live up to that statement, I think I checked this morning, there's something alike, 600 aircraft in the sky right now with Rolls Royce power carrying passengers. All of those passengers have relied on that moment. Service happening regularly like clockwork. Every single time you don't get any forgiveness for a delay, you get very little forgiveness for a cancellation that has to happen. And then so many things have to come together for that to happen. >>Those 600 aircraft, that's maybe 200,000 people right now in the sky, Wow. Those 200,000 people are trying to connect, They're trying to connect with friends, they're trying to connect with loved ones, family, colleagues, whatever the purpose is of that trip. It's really important to them. And we just have to make sure that that happens for us. We've had something like a million flights so far this year, 300 million people relying on that moment of so is happening. So I really resonate with, with the language that Scott users about the importance of sort of that focal point on when does it all come together? It comes together when as a passenger, I get on the plane and it goes and I get no issues. >>Right. Well people don't tolerate fragmented experiences anymore. No, no. I think one of the things that was in short supply during the pandemic was patience and tolerance. Sure. Not sure how much of that's gonna come back, right? But those integrated connected experiences, as you described so eloquently, Nick, those are table stakes for the customers, but also the brands behind them because of customers are unhappy, the churn rates go way up. And you see that reflected in obviously the success of the business and what you guys are doing together is seems to be quite powerful. Now then when you were on the cube with us three years ago in Boston at IFS back then you first introduced the intelligent engine and the Blue Data thread. Let's talk about the intelligent engine. Just give our audience a refresher of what that actually entails. >>So perhaps if we just step one one step back for that, just to understand how this fits in. So Roro is a service organization. We talked about that. What that means is we take a lot of the, the risk and the uncertainty away from our airline customers on the availability, the costs and maintenance effort associated with having a, having a chat engine. These are incredibly complicated and complex and sophisticated pieces of equipment. The most expensive, most sophisticated pieces of an aircraft. Managing that is, is difficult. And every airline does not want to have to focus on that. They wanna focus on being able to get the passenger on the air after, fly it, look after the airframe. So our role in that is to take that risk away, is to manage those engines, look after their health, look after their life, make sure they're available to fly whenever they need to fly. >>So for us to understand that, we then have to have data, we have to understand the state of every engine, where it is, the health of the engine, the life of that engine, what do we need to do next to that engine? And we can't do that unless we have data and that data flows into a digital platform. The intelligent engine, which is our cloud based ai, big data, all of the iot, all of the big buzzwords are there, right? So the data flows into that, that lets us run the models. It lets us understand, I can see something maybe it's a, it's a small issue, but if I leave it alone, it become a bigger issue. And maybe that will cause disruption further down the line. So we need to understand that we need to preempt it. So preemptive predictive maintenance is a, is a big part of the intelligent engine, but it's more than just that. >>It's also, we can understand how that engine is being flown. We can understand is it having a really intense flight? Is it having a more benign, gentle flight? Wow. That change time after the flight, typically after the flight. But what that means is we can then understand, actually we can keep that engine on the wing longer then you might otherwise have to do, If you have no data, you have to be conservative, safety rules, everything. Sure. So data allows you to say, actually I'm being overly conservative in this space. I can get more flying bios, flying hours from my product by extending the interval between maintenance and the intelligent engine has a large part to play in us justifying that we're able to do that. And then the final part that it does is eventually the engine is gonna have to come off from maintenance. >>These things fly 5 million miles between overhauls. You imagine you try to do that in your family car. It's, it doesn't happen. It's incredibly sophisticated thing can fly 5 million miles and then we take it off for a major overhaul. But there are thousands of these engines in the fleet. We have to understand which engine is going to come off when for what reason, and prepare our maintenance network to then receive the engine and deal with it and get it back to the customer. So the intelligent engine has a massive part to play in understanding the maintenance demand that the flying fleet is then creating. >>Wow, that's fascinating. And so you talked about that three years ago. What's next for that? I imagine there's only more evolution that's gonna happen. >>It keeps growing. It keeps growing. It's driven by the data. The more data we have, the more that we can do with that. I think as well that, you know, one of the big places that we've we've gone is you can do as much predictive analytics as you, like, there's a lot of people we'll talk about doing predictive analytics, but if you don't do the hard yards of turning predictive analytics into outcome Yeah. Then what did you get? You, you got a bit of smart advice. So we, we take that maintenance demand, we then have to understand how that drives the orchestration and the management of all the parts, the people, the work scope definition, the allocating an engine into a maintenance slot, exactly when it's gonna go. And what are we gonna do to, how do we control and manage our inventory to make sure that engine is gonna go through. >>How do we then actually execute the work inside our, our our overall shops? How do we get that engine back and and integrate our logistics process. So the intelligent engine is, if you like, the shiny front end of a process, it's all the buzzwords, but actually the hard yards behind the scene is just as if not more important to get right. And again, this is why I really like the moment of service concept. Because without that, the moment of service doesn't happen. The engine's not there, the part wasn't there. The field service maintenance guy wasn't there to go fix it. >>And brands are affected >>An, an aircraft on the ground earns no revenue for anybody. No. It's, it's a cost. It's it's a big sink of cost. It >>Is, it is. Absolutely. >>And you're helping aircraft only earn engines only earn when they fly. Yeah, >>Yeah. Absolutely. And what a fascinating, the intelligent engine. Scott, talk a little bit about, we talking about power, we can't not talk about sustainability. Yes, I understand that IFS has a new inaugural awards program that Rolls Roys was a recipient of the Change for Good sustainability awards. Congratulations. Thank you very much. And to Scott, talk to me a little bit about the Change for Good program sustainability program. What types of organizations across the industries of expertise are you looking for and why does Rules ROY really highlight what a winner embodies? >>So since Darren has joined IFS as the ceo, he's had a lot of intentional areas that we focused on. And sustainability has been one that's at the top of the list. IFS has a US ambassador Lewis Pew, who's our Chief Sustainability officer, and he helps us to provide worldwide coverage of the efforts around sustainability. So it's not just about ifss ability to become a more sustainable organization, but it's the solutions that IFS is putting together in the five verticals that we focus on that can help those organizations achieve a level of sustainability for their, for their downstream customers, their partners, and for their enterprises themselves. So when we look at, you know, the social ability for us to be more conscientious about leaving the world a better place or trying to do our best to leave the world not as bad as we came into it, sustainability is a real focus for us. And, you know, the way in which we can support an organization like Rolls Royce and Nickel obviously share those areas of focus from Rolls Royce. It's a perfect fit. And congratulations again for the award. Thank you. We're, we're, we're so excited to, to have shared that with you. We have some other customers that have achieved it across different categories, but it's an area of current and continuous focus for ifs. >>Nick, talk to us, take us out here as our last question is the, the focus on sustainability at Rolls Royce. Talk to us a little bit about that and what some of the major efforts are that you've got underway. >>I think, you know, very similar as, as, as Scott taught there, the focus within Rolls Royce as a strategic group level is really high aviation particularly, I mean we're a, we're an engineering company. We're a power company. Power inherently consumes natural resources. It tends to generate climate affecting outcomes. But at the same time, we are an innovative organization and if anybody's gonna help solve climate challenges, it's gonna be organizations like Rolls Royce who are able to bring different technologies into the market. So we have a responsibility to manage and, and optimize the behavior of our, our existing product suite. But we also have a, a vested interest in trying to move aviation on into the next, the next phase. We talk about sustainable aviation. Aviation has to earn the right to exist. People have choices. We've come out of covid, people are used to doing zoom and not flying. >>People are used to doing things when they don't necessarily get on an aircraft and do something. The aviation business always has to earn the right from the public to exist. And increasingly people will make choices about how they fly when they fly, how far they fly based on the sustainability footprint. So it's really important to us to help both our customers operate the aircraft in as sustainable and climate friendly way as we can. It's really important to find those, those balance points between the cost of an operation and it's the impact of an operation. If you go all over and say, I am going to be net, well, not even net to, but zero carbon by almost inference, that means I'm not gonna operate. You have to operate to get to an outcome. But how do I do that? Why I manage my cost, I manage the, the profitability, the organization doing it, right? >>So it has to be financially sustainable, it has to be sustainable for the people operating within it. It has to be sustainable for the planet, right? So we do that in lots of different ways in small places and, and in big places. So small things we do is we help the operator understand if you change your flight profile, you'll generate fewer emissions. You may avoid controls if you flying a different way, maybe you create trails, you'll lose, you'll lose less fuel while you're doing that. So it's cost effective for you. There was always a balance point there between the wear and tear on the engine versus the, the, the environmental impact. And you find that optimum place. One of the first things we started doing with, with Scott is we have a, a way that we life our engine components. And one of the very simple outcomes of that is using that data, the blue data for connection to the customer. >>If we can see, effectively see inside the engine about how well it's wearing and we can extend those maintenance intervals as we talked about, what that eventually does is it reduces the need to take the engine off, ship it around the world. Probably on a great big 7, 4 7 or maybe year or two ago on an Anson off four big engines flying a long distance trek, shipping our engine to an overhaul facility. We're avoiding something like 200 of those shop visit overhauls a year. So every year that's 200 flights there and back again, which don't happen, right? Collectively that's around about 15,000 automobile equivalent emissions just don't happen. So simple things we can do just starts to have accumulative effect, >>Right? Simple things that you're doing that, that have a huge impact. We could talk for so much longer on stability, I'm sure we're out of time, but I can see why Roll Royce was, was the winner of the Inocular award. Congratulations. Well deserved. Well >>Deserved. I well >>Deserved. So interesting to hear about the intelligent engine. So you're gonna have to come back. Hopefully we'll be here next year and we can hear more of the evolution. Cuz I have a feeling there's never a dual moment in what you're doing. >>It's never a dull moment. There's never an end point. >>No. >>Okay, >>Going Scott, Nick, thank you so much for joining me on the program today. Thank you, Lisa. It's great to have you talk through what's going on at ifx and the partnership with Rolls Royce. We >>Appreciate, and again, Nick, Nick, thank you for your continued support in the partnership. >>I thank you, Scott. We appreciate it. Likewise, thank >>You. Kudos all around. All right, for my guests, I'm Lisa Martin, you're watching a Cube live from Miami. We're at IFS unleashed. We'll be back shortly after a break with our next guests. So stick around.

(upbeat music) >> Welcome back everyone to theCUBEs live coverage in San Francisco for VMware Explorer. I'm John Furrier with my host, Dave Vellante. Two sets, three days of wall to wall coverage. This is day two. We got a great guest, Scott Baker, CMO at IBM, VP of Infrastructure at IBM. Great to see you. Thanks for coming on. >> Hey, good to see you guys as well. It's always a pleasure. >> ()Good time last night at your event? >> Great time last night. >> It was really well-attended. IBM always has the best food so that was good and great props, magicians, and it was really a lot of fun, comedians. Good job. >> Yeah, I'm really glad you came on. One of the things we were chatting, before we came on camera was, how much changed. We've been covering IBM storage days, back on the Edge days, and they had the event. Storage is the center of all the conversations, cyber security- >> ()Right? >> ... But it's not just pure cyber. It's still important there. And just data and the role of multi-cloud and hybrid cloud and data and security are the two hottest areas, that I won't say unresolved, but are resolving themselves. And people are talking. It's the most highly discussed topics. >> Right. >> ()Those two areas. And it's just all on storage. >> Yeah, it sure does. And in fact, what I would even go so far as to say is, people are beginning to realize the importance that storage plays, as the data custodian for the organization. Right? Certainly you have humans that are involved in setting strategies, but ultimately whatever those policies are that get applied, have to be applied to a device that must act as a responsible custodian for the data it holds. >> So what's your role at IBM and the infrastructure team? Storage is one only one of the areas. >> ()Right. >> You're here at VMware Explore. What's going on here with IBM? Take us through what you're doing there at IBM, and then here at VMware. What's the conversations? >> Sure thing. I have the distinct pleasure to run both product marketing and strategy for our storage line. That's my primary focus, but I also have responsibility for the mainframe software, so the Z System line, as well as our Power server line, and our technical support organization, or at least the services side of our technical support organization. >> And one of the things that's going on here, lot of noise going on- >> Is that a bird flying around? >> Yeah >> We got fire trucks. What's changed? 'Cause right now with VMware, you're seeing what they're doing. They got the Platform, Under the Hood, Developer focus. It's still an OPS game. What's the relationship with VMware? What are you guys talking about here? What are some of the conversations you're having here in San Francisco? >> Right. Well, IBM has been a partner with VMware for at least the last 20 years. And VMware does, I think, a really good job about trying to create a working space for everyone to be an equal partner with them. It can be challenging too, if you want to sort of throw out your unique value to a customer. So one of the things that we've really been working on is, how do we partner much stronger? When we look at the customers that we support today, what they're looking for isn't just a solid product. They're looking for a solid ecosystem partnership. So we really lean in on that 20 years of partnership experience that we have with IBM. So one of the things that we announced was actually being one of the first VMware partners to bring both a technical innovation delivery mechanism, as well as technical services, alongside VMware technologies. I would say that was one of the first things that we really leaned in on, as we looked out at what customers are expecting from us. >> So I want to zoom out a little bit and talk about the industry. I've been following IBM since the early 1980s. It's trained in the mainframe market, and so we've seen, a lot of things you see come back to the mainframe, but we won't go there. But prior to Arvind coming on, it seemed like, okay, storage, infrastructure, yeah it's good business, and we'll let it throw off some margin. That's fine. But it's all about services and software. Okay, great. With Arvind, and obviously Red Hat, the whole focus shift to hybrid. We were talking, I think yesterday, about okay, where did we first hear hybrid? Obviously we heard that a lot from VMware. I heard it actually first, early on anyway, from IBM, talking hybrid. Some of the storage guys at the time. Okay, so now all of a sudden there's the realization that to make hybrid work, you need software and hardware working together. >> () Right. So it's now a much more fundamental part of the conversation. So when you look out, Scott, at the trends you're seeing in the market, when you talk to customers, what are you seeing and how is that informing your strategy, and how are you bringing together all the pieces? >> That's a really awesome question because it always depends on who, within the organization, you're speaking to. When you're inside the data center, when you're talking to the architects and the administrators, they understand the value in the necessity for a hybrid-cloud architecture. Something that's consistent. On The Edge, On-Prem, in the cloud. Something that allows them to expand the level of control that they have, without having to specialize on equipment and having to redo things as you move from one medium to the next. As you go upstack in that conversation, what I find really interesting is how leaders are beginning to realize that private cloud or on-prem, multi cloud, super cloud, whatever you call it, whatever's in the middle, those are just deployment mechanisms. What they're coming to understand is it's the applications and the data that's hybrid. And so what they're looking for IBM to deliver, and something that we've really invested in on the infrastructure side is, how do we create bidirectional application mobility? Making it easy for organizations, whether they're using containers, virtual machines, just bare metal, how do they move that data back and forth as they need to, and not just back and forth from on-prem to the cloud, but effectively, how do they go from cloud to cloud? >> Yeah. One of the things I noticed is your pin, says I love AI, with the I next to IBM and get all these (indistinct) in there. AI, remember the quote from IBM is, "You can't have AI without IA." Information architect. >> () Right. >> () Rob Thomas. >> Rob Thomas (indistinct) the sound bites. But that brings up the point about machine learning and some of these things that are coming down the like, how is your area devolving the smarts and the brains around leveraging the AI in the systems itself? We're hearing more and more softwares being coded into the hardware. You see Silicon advances. All this is kind of, not changing it, but bringing back the urgency of, hardware matters. >> That's right. >> () At the same time, it's still software too. >> That's right. So let's connect a couple of dots here. We talked a little bit about the importance of cyber resiliency, and let's talk about a little bit on how we use AI in that matter. So, if you look at the direct flash modules that are in the market today, or the SSDs that are in the market today, just standard-capacity drives. If you look at the flash core modules that IBM produces, we actually treat that as a computational storage offering, where you store the data, but it's got intelligence built into the processor, to offload some of the responsibilities of the controller head. The ability to do compression, single (indistinct), deduplication, you name it. But what if you can apply AI at the controller level, so that signals that are being derived by the flash core module itself, that look anomalous, can be handed up to an intelligence to say, "Hey, I'm all of a sudden getting encrypted rights from a host that I've never gotten encrypted rights for. Maybe this could be a problem." And then imagine if you connect that inferencing engine to the rest of the IBM portfolio, "Hey, Qradar. Hey IBM Guardian. What's going on on the network? Can we see some correlation here?" So what you're going to see IBM infrastructure continue to do is invest heavily into entropy and the ability to measure IO characteristics with respect to anomalous behavior and be able to report against that. And the trick here, because the array technically doesn't know if it's under attack or if the host just decided to turn on encryption, the trick here is using the IBM product relationships, and ecosystem relationships, to do correlation of data to determine what's actually happening, to reduce your false positives. >> And have that pattern of data too. It's all access to data too. Big time. >> That's right. >> And that innovation comes out of IBM R&D? Does it come out of the product group? Is it IBM research that then trickles its way in? Is it the storage innovation? Where's that come from? Where's that bubble up? That partnership? >> Well, I got to tell you, it doesn't take very long in this industry before your counterpart, your competitor, has a similar feature. Right? So we're always looking for, what's the next leg? What's the next advancement that we can make? We knew going into this process, that we had plenty of computational power that was untapped on the FPGA, the processor running on the flash core module. Right? So we thought, okay, well, what should we do next? And we thought, "Hey, why not just set this thing up to start watching IO patterns, do calculations, do trending, and report that back?" And what's great about what you brought up too, John, is that it doesn't stay on the box. We push that upstack through the AIOPS architecture. So if you're using Turbonomic, and you want to look applications stack down, to know if you've got threat potential, or your attack surface is open, you can make some changes there. If you want to look at it across your infrastructure landscape with a storage insight, you could do that. But our goal here is to begin to make the machine smarter and aware of impacts on the data, not just on the data they hold onto, but usage, to move it into the appropriate tier, different write activities or read activities or delete activities that could indicate malicious efforts that are underway, and then begin to start making more autonomous, how about managed autonomous responses? I don't want to turn this into a, oh, it's smart, just turn it on and walk away and it's good. I don't know that we'll ever get there just yet, but the important thing here is, what we're looking at is, how do we continually safeguard and protect that data? And how do we drive features in the box that remove more and more of the day to day responsibility from the administrative staff, who are technically hired really, to service and solve for bigger problems in the enterprise, not to be a specialist and have to manage one box at a time. >> Dave mentioned Arvind coming on, the new CEO of IBM, and the Red Hat acquisition and that change, I'd like to get your personal perspective, or industry perspective, so take your IBM-hat off for a second and put the Scott-experience-in-the-industry hat on, the transformation at the customer level right now is more robust, to use that word. I don't want to say chaotic, but it is chaotic. They say chaos in the cloud here at VM, a big part of their messaging, but it's changing the business model, how things are consumed. You're seeing new business models emerge. So IBM has this lot of storage old systems, you're transforming, the company's transforming. Customers are also transforming, so that's going to change how people market products. >> () Right. >> For example, we know that developers and DevOps love self-service. Why? Because they don't want to install it. Let me go faster. And they want to get rid of it, doesn't work. Storage is infrastructure and still software, so how do you see, in your mind's eye, with all your experience, the vision of how to market products that are super important, that are infrastructure products, that have to be put into play, for really new architectures that are going to transform businesses? It's not as easy as saying, "Oh, we're going to go to market and sell something." The old way. >> () Right. >> This shifting happening is, I don't think there's an answer yet, but I want to get your perspective on that. Customers want to hear the storage message, but it might not be speeds and fees. Maybe it is. Maybe it's not. Maybe it's solutions. Maybe it's security. There's multiple touch points now, that you're dealing with at IBM for the customer, without becoming just a storage thing or just- >> () Right. >> ... or just hardware. I mean, hardware does matter, but what's- >> Yeah, no, you're absolutely right, and I think what complicates that too is, if you look at the buying centers around a purchase decision, that's expanded as well, and so as you engage with a customer, you have to be sensitive to the message that you're telling, so that it touches the needs or the desires of the people that are all sitting around the table. Generally what we like to do when we step in and we engage, isn't so much to talk about the product. At some point, maybe later in the engagements, the importance of speeds, feeds, interconnectivity, et cetera, those do come up. Those are a part of the final decision, but early on it's really about outcomes. What outcomes are you delivering? This idea of being able to deliver, if you use the term zero trust or cyber-resilient storage capability as a part of a broader security architecture that you're putting into place, to help that organization, that certainly comes up. We also hear conversations with customers about, or requests from customers about, how do the parts of IBM themselves work together? Right? And I think a lot of that, again, continues to speak to what kind of outcome are you going to give to me? Here's a challenge that I have. How are you helping me overcome it? And that's a combination of IBM hardware, software, and the services side, where we really have an opportunity to stand out. But the thing that I would tell you, that's probably most important is, the engagement that we have up and down the stack in the market perspective, always starts with, what's the outcome that you're going to deliver for me? And then that drags with it the story that would be specific to the gear. >> Okay, so let's say I'm a customer, and I'm buying it to zero trust architecture, but it's going to be somewhat of a long term plan, but I have a tactical need. I'm really nervous about Ransomware, and I don't feel as though I'm prepared, and I want an outcome that protects me. What are you seeing? Are you seeing any patterns? I know it's going to vary, but are you seeing any patterns, in terms of best practice to protect me? >> Man, the first thing that we wanted to do at IBM is divorce ourselves from the company as we thought through this. And what I mean by that is, we wanted to do what's right, on day zero, for the customer. So we set back using the experience that we've been able to amass, going through various recovery operations, and helping customers get through a Ransomware attack. And we realized, "Hey. What we should offer is a free cyber resilience assessment." So we like to, from the storage side, we'd like to look at what we offer to the customer as following the NIST framework. And most vendors will really lean in hard on the response and the recovery side of that, as you should. But that means that there's four other steps that need to be addressed, and that free cyber-resilience assessment, it's a consultative engagement that we offer. What we're really looking at doing is helping you assess how vulnerable you are, how big is that attack surface? And coming out of that, we're going to give you a Vendor Agnostic Report that says here's your situation, here's your grade or your level of risk and vulnerability, and then here's a prioritized roadmap of where we would recommend that you go off and start solving to close up whatever the gaps or the risks are. Now you could say, "Hey, thanks, IBM. I appreciate that. I'm good with my storage vendor today. I'm going to go off and use it." Now, we may not get some kind of commission check. We may not sell the box. But what I do know is that you're going to walk away knowing the risks that you're in, and we're going to give you the recommendations to get started on closing those up. And that helps me sleep at night. >> That's a nice freebie. >> Yeah. >> Yeah, it really is, 'cause you guys got deep expertise in that area. So take advantage of that. >> Scott, great to have you on. Thanks for spending time out of your busy day. Final question, put a plug in for your group. What are you communicating to customers? Share with the audience here. You're here at VMware Explorer, the new rebranded- >> () Right? >> ... multi-cloud, hybrid cloud, steady state. There are three levels of transformation, virtualization, hybrid cloud, DevOps, now- >> Right? >> ... multi-cloud, so they're in chapter three of their journey- >> That's right. >> Really innovative company, like IBM, so put the plugin. What's going on in your world? Take a minute to explain what you want. >> Right on. So here we are at VMware Explorer, really excited to be here. We're showcasing two aspects of the IBM portfolio, all of the releases and announcements that we're making around the IBM cloud. In fact, you should come check out the product demonstration for the IBM Cloud Satellite. And I don't think they've coined it this, but I like to call it the VMware edition, because it has all of the VMware services and tools built into it, to make it easier to move your workloads around. We certainly have the infrastructure side on the storage, talking about how we can help organizations, not only accelerate their deployments in, let's say Tanzu or Containers, but even how we help them transform the application stack that's running on top of their virtualized environment in the most consistent and secure way possible. >> Multiple years of relationships with VMware. IBM, VMware together. Congratulations. >> () That's right. >> () Thanks for coming on. >> Hey, thanks (indistinct). Thank you very much. >> A lot more live coverage here at Moscone west. This is theCUBE. I'm John Furrier with Dave Vellante. Thanks for watching. Two more days of wall-to-wall coverage continuing here. Stay tuned. (soothing music)

>>The >>Cube presents HPE discover 2022 brought to you by >>HPE. Hi everybody. Welcome back to day three, the Cube's continuous coverage wall to wall coverage of HPE. Discover 2022. My name is Dave Lanta. I'm here with John furrier. Dave McGraw is here. He's the vice president in the office of the CTO at VMware. And he's joined by Scott. We, the vice president and CTO of global sales for Hewlett Packard enterprise. And we're gonna talk tech, we're gonna talk integration. Co-creation gens. Welcome to the cube. >>Thank you so much, >>Scott, let me, let me ask you a question on the Scott side on the HP, we had the sales executives on the leaders on the sales side. You're on the CTO side with customers. You're in the front lines with customers green. Lake's got traction. I got this 1600 plus customers, 70 services we heard. And just the beginning, when you're out front of customers, you've got the old HPE now the new HPE kind of developing, what are they talking to you guys about? Cause now you have this cloud layer. I call it cloud operations, architecture shift. Yeah. What is the main conversation that you're involved in? >>I think it's driven by fundamentally that customers want to consume differently, right there workloads are ever evolving. You guys have evolved to meet those and since their consumption methods have changed on how they want and right. A lot of it's agility and, and speed of business right. Has, has dramatically shifted. So I think you'll see HPE GreenLake, you know, obviously as the cloud that comes to you, try to meet the problem where the cloud experience is needed. And I think that's the fundamental shift we've seen. I spent a lot of time with customers here at this conference. And as we've moved from cloud first to cloud smart to cloud everywhere, we're sitting in the intersection of cloud ever and delivering the experience together. And I think that's the heart of most of the conversations that are going on. >>Well, VMware, you guys are on, on a cloud. You guys shifted up with the cloud play. That's accelerated the VMware proposition. Now we have yesterday, we were talking to the city, the storage folks, they're provisioning single pane of glass or storage to customers. And whether they wanna pipe it to S3 or develop at the edge, doesn't matter. It's one console. Yeah. That's brand new. That's shipping. >>Yeah. And you know, a lot of it's driven too. I think the days of trap silos of resources that support one line of business are over. So we're talking about cloud agility everywhere, right. And to be able to embrace the cloud in all the locations. Right. And you kind of see folks move beyond just like there's the cloud, it's everywhere. It's the cloud. And so things like storage and fundamental compute and fundamental network operations that we're working on together, I think are where the customers expect us to be. We no longer can just show up. We have to show up and solve and solve before their needs. And I think that's a unique shift in the experience that's going >>On. So when you go back to, you know, Antonio four years ago now said, okay, we're all in. Yeah. On as a service. And so when you do that, you say, okay, we're gonna, we have services. They're gonna help do that. We have financial models that we can take to market immediately. So let's start there. And I would imagine take, so take us back. That's the point at which, you know, you're, you got email, phone ring, whatever let's integrate from an engineering standpoint go yeah. You know, as fast as you can. So what did that mean in terms of an engineer from an engineering perspective between HPE and, and VMware take us through that progression. >>Yeah. No, thanks for the question in your spot on it started with flexible financing models around metered usage. That was sort of the need at the time to now the expectation of engineered integrated solutions where customers don't wanna be in the system integration business anymore. And that requires engineering right. Requires deep innovation partnership to evolve to where the customer's headed, like before they've thought about it. And you'll see, you know, what we've done with vCloud foundation together and the integration within the HP GreenLake ecosystem, what we're doing with unified hybrid cloud views of what's going on, I think requires deep innovation things we're doing with other projects that we're gonna talk about today. Like Monterey capital thunder, our deep integrative innovation projects, where we've got together to try to solve a big problem cross industry that our customers are expecting us to do. And I think that speaks to the spirit of our long partnership together too. It's a business partnership. Of course it's a customer partnership to solve, but it's an innovation partnership. >>I gotta, I gotta ask about the, um, hybrid, obviously hybrids, the steady state. We're all seeing that now multi-cloud is being kicked around, but it's not, multi-cloud in the sense of workload portability so much. It's more of hybrid stitched together. Um, but it's coming fast with a data plane and yeah. The fabric and control planes. Uh, VMware, you guys are talking heavy about cross cloud or multicloud. Absolutely. So this is now brings up the old school interoperability question, right? So GreenLake sits here on premise. You guys have the edge, you get public cloud together. Where's the cross cloud come in. Where are customers doing when they think about cross cloud or, or multicloud? What is that conversation? Is it, Hey, I got Azure cause I got office and teams and I got Amazon over here and I got my on premise edge. Are they moving towards just being agnostic on cloud or is what's the environment? What, what are you crossing in the cloud? What does that mean across the cloud? Can >>You, I mean, from, from our perspective at VMware on premises, it's VMware cloud foundation, having that available, it's a VMware cloud instance, full STD STDC stack, uh, that is interoperable with our VMware cloud instances at the hyperscalers. And so for us, it's really about putting the management and control planes around that so that customers can easily determine where they wanna place workloads and when they need to burst, they need to scale up scale down. They have the flexibility and we wanna make sure all of these capabilities are available with HPE >>Going forward. What's interesting is that, you know, with, with GreenLake, what I like about what I'm seeing is is that, um, the leveling up of the cloud operation model, it's always been DevOps. We've always saw dev stack ops, clearly being operationally with cloud now on premise and edge with public cloud, it's full end to end operational cloud. If you wanna call it that, what is a key technical issue the customers need to do to get that in place? Is it to be DevOps, is that have cloud native applications, um, what kind of managed services, what's the makeup of that operating model for cloud look like? >>Yeah. I think if you talk to any enterprise commercial account, a top account, they'll they'll, if you, they think about how they run their functions, right. And you got, and you spoke to one of them, you have it ops at the bottom, it's a layer cake, right? You have it ops, everybody's deeply looking for AI ops that can remediate and orchestrate and you guys are on that journey as we are, as you move up to devs and dev SecOps, cuz security's critical, you got financial ops cuz we know economic value matters all the way clear up to cloud ops and Mo ops. What we're talking about is building hybrid operating model cause hybrid, it is simplified it where you're out of the stack, we're doing that together as partners and hybrid cloud is multiple consumption methods, but an operating model is encompass encompassing, cyber resiliency, compliance, economic, operational control. >>That's what we're built and edges in there as well. Right? Folks is, and it's not OT and it touching that's happening too, as we build edge tax, but folks need a simplified way. And as you saw in a lot of announcements here, our job was to bridge the cloud locations, right? So the customer didn't have to back to the portability statement you made, we announced a lot here that will allow you to float back and forth. So you have choice, choice and control control is the me is what every customer wants and they want the right workload at the right place at the right time at the right economic with the right capability. So I think that's in our mission together. Right? So, and >>A big part of engineering obviously is, is futures and roadmap. Yeah. Thought you mentioned Monterey cap thunder, you know, Monterey's kind of the smart Nick. One of the mega trends in the industry is Silicon diversity that handle all these new workloads to help with the edge. You know, capital is like the VSAN of memory as I, I would describe it. It obviously fits in there as well. So talk a little bit about the engineering roadmap, whatever you can share with us and how you guys are working together on that. Yeah. >>Yeah. I mean, those are three key projects for us. So there's constant interaction and integration with the HPE engineering team and the VMware team to make sure we bring those solutions to market with full capability. And for us, ultimately it's taking that technology and having it available in a VMware cloud context so that customers can have a, a consistent experience on premises running VMware cloud running with HPE GreenLake and then two are various VMware cloud suppliers around the world. And it's not just the hyperscalers, right? There's thousands of VMware cloud, uh, you know, partners that we work with manage service providers across the board. So it's, it's a very significant network of cloud. And you know, being consistent allows for mobility of workloads allows for consistency and skill sets for it operators as well. Mm-hmm >><affirmative> yeah. I wanna get into that, um, manage service trend around skill sets, but yeah, I have a, the number one thing that we've got in our, my notes here on multi-cloud challenges and I wanna get your reaction to it real quick, inconsistent infrastructure, API database network, and security constructs are different by cloud. How do you guys view that? And when you go to customers and they say, well, I got APIs that are different. I got different security constructs. What do I do? What does that, how do you answer that, that, that, that objection. >>Well, it's, it's a great call out cuz it is still the ongoing challenge, right? To gets to some of the portability, some of unified model and how they treat resources and consumption. Right? And so we're, we've all gotten together as an industry. You'll see purposely that the hyperscalers are all here at, at the conference, right? We're working on deep integration with all of our partners to make sure the customer doesn't have to. And I think it does extend to the different security models are troubling for customers. We're all working hard on unified security models as well. It's not just a developer saying, I like this set of APIs anymore, right? Or this framework customers need to run tier zero tier one, tier three applications when it really comes down to it and we need to create that unified model together. So, and I think that's really what the, the spirit or the embodiment of hybrid really is. >>When you talk to any customer, who's running a big operation, they're running in that model, right? They're not just doing cool. They want operationally simplicity. And I think you'll see these, these things we're engineering together are going after some of the hard problems, applications are hungry or all the time customers need more and more resources. And I think we would all agree. We've spent a lot of time in industry together when we're all working on sort of systems of record. What I call the shift ride effect is happening. Now we're in systems of interaction and systems of engagement out at the edge. That's the creation point of data. We need to be able to have that unified model all the way through the data path for the customer so they can monetize business value. >>And the data model is coming together. That's right. Where all three of those types of work that's right. There's two iconic names. And the other thing is that their trusted names and you're right, you're solving some of those hard problems making it simpler, but also you people trust that if something goes wrong, you're gonna be able to recover. So guys. >>Yeah. And I, and I'll tell you on the security front, you know, we've worked closely together here. If you look at, you know, VMware strategy of intrinsic security, it's really around going back to the development of our products, making sure there's a secure bill of materials, working with these guys on route of trust. Right? Making sure there's a full stack, uh, solution for our customers. Ultimately >>That's a whole nother cube segment that's bombs and shifting left and supply chain. Absolutely >>Shifting game. Absolutely. Right. Shifting >>Lift we're >>Shifting. Right guys. Awesome story. Congrats on the collaboration. Really appreciate your time in the cube. Thank you so >>Much. Thank you so >>Much. All right. You're very welcome. Okay, John and I will be back right after this short break. You're watching the Cube's coverage of HPE discover 2022 from Las Vegas, right back.

>> Welcome back to theCube's coverage of PagerDuty Summit 22. Lisa Martin with you here on the ground. I've got one of our alumni back with me. Sean Scott joins me, the Chief Product Officer at PagerDuty. It's great to have you here in person. >> Super great to be here in person. >> Isn't it nice? >> Quite a change, quite a change. >> It is a change. We were talking before we went live about it. That's that readjustment to actually being with another human, but it's a good readjustment to have >> Awesome readjustment. I've been traveling more and more in the past few weeks and just speaking the offices, seeing the people the energy we get is the smiles, it's amazing. So it's so much better than just sitting at your home and. >> Oh, I couldn't agree more. For me it's the energy and the CEO of DocuSign talked about that with Jennifer during her fireside chat this morning, but yes, finally, someone like me who doesn't like working from home but as one of the things that you talked about in your keynote this morning was the ways traditionally that we've been working are no longer working. Talk to me about the future of work. What does it look like from PagerDuty's lens? >> Sure. So there's a few things. If we just take a step back and think about, what your day looks like from all the different slacks, chats, emails, you have your dashboards, you have more slacks coming in, you have more emails coming in, more chat and so just when you start the day off, you think you know what you're doing and then it kind of blows up out of the gate and so what we're all about is really trying to revolutionize operations so how do you help make sense of all the chaos that's happening and how do you make it simpler so you can get back to doing the more meaningful work and leave the tedium to the machines and just automate. >> That would be critical. One of the things that such an interesting dynamic two years that we've had obviously here we are in San Francisco with virtual event this year but there's so many problems out there that customer landscape's dealing with the great resignation. The data deluge, there's just data coming in everywhere and we have this expectation when we're on the consumer side, that we're going to be that a business will know us and have enough context to make us that the next best offer that actually makes sense but now what we're seeing is like the great resignation and the data overload is really creating for many organizations, this operational complexity that's now a problem really amorphously across the organization. It's no longer something that the back office has to deal with or just the front office, it's really across. >> Yeah, that's right. So you think about just the customer's experience, their expectations are higher than ever. I think there's been a lot of great consumer products that have taught the world, what good looks like, and I came from a consumer background and we measured the customer experience in milliseconds and so customers talking about minutes or hours of outages, customers are thinking in milliseconds so that's the disconnect and so, you have to be focused at that level and have everybody in your organization focused, thinking about milliseconds of customer experience, not seconds, minutes, hours, if that's where you're at, then you're losing customers. And then you think about, you mentioned the great resignation. Well, what does that mean for a given team or organization? That means lost institutional knowledge. So if you have the experts and they leave now, who's the experts? And do you have the processes and the tools and the runbooks to make sure that nothing falls on the ground? Probably not. Most of the people that we talk to, they're trying to figure it out as they go and they're getting better but there's a lot of institutional knowledge that goes out the door when people leave. And so part of our solution is also around our runbook automation and our process automation and some of our announcements today really help address that problem to keep the business running, keep the operations running, keep everything kind of moving and the customers happy ultimately and keep your business going where it needs to go. >> That customer experience is critical for organizations in every industry these days because we don't to your point. We'll tolerate milliseconds, but that's about it. Talk to me about you did this great keynote this morning that I had a chance to watch and you talked about how PagerDuty is revolutionizing operations and I thought, I want you to be able to break that down for this audience who may not have heard that. What are those four tenants or revolutionizing operations that PagerDuty is delivering to ORGS? >> Sure, so it starts with the data. So you mentioned the data deluge that's happening to everybody, right? And so we actually do, we integrate with over 650 systems to bring all that data in, so if you have an API or webhook, you can actually integrate with PagerDuty and push this data into PagerDuty and so that's where it starts, all these integrations and it's everything from a develop perspective, your CI/CD pipelines, your code repositories, from IT we have those systems are instrumented as well, even marketing, more tech stacks we can actually instrument and pull data in. The next step is now we have all this data, how do we make sense of it? So, we think we have machine learning algorithms that really help you focus your attention and kind of point you to the really relevant work, part of that is also noise suppression. So, our algorithms can suppress noise about 98% of the noise can just be eliminated and that helps you really focus where you need to spend your time 'cause if you think about human time and attention, it's pretty expensive and it's probably one of your company's most precious resources is that human time and so you want the humans doing the really meaningful work. Next step is automation, which is okay. We want the humans doing the special work, so what's the TDM? What's the toil that we can get rid of and push that to the machines 'cause machines are really good at doing very easy, repetitive task and there's a lot of them that we do day in, day out. The next step is just orchestrating the work and putting, getting everybody in the organization on the same page and that's where this morning I talked about our customer service operations product into the customer service is on the front lines and they're often getting signals from actual customers that nobody else in the organization may not even be aware of it yet So, I was running a system before and all our metrics are good and you get a customer feedback saying, "This isn't working for me," and you go look at the metrics and your dashboards and all looks good and then you go back and talk to the customer some more and they're like, "No, it's still not working," and you go back to your data, you're back to your dashboards, back to your metrics and sure enough, we had an instrumentation issue but the customer was giving us that feedback and so customer service is really on the front lines and they're often the kind of the unsung heroes for your customers but they're actually really helping and make sure that everything, the right signals are coming to the dev team, to the owners that own it and even in the case when you think you have everything instrumented, you may be missing something and that's where they can really help but our customer service operations product really helps bring everybody on the same page and then as the development teams and the IT teams and the SRA has pushed information back to customer service, then they're equipped, empowered to go tell the customer, "Okay, we know about the issue. Thank you." We should have it up in the next 30 minutes or whatever it is, five minutes, hopefully it's faster than longer, but they can inform the customer so to help that customer experience as opposed to the customer saying, "Oh, I'm just going to go shop somewhere else," or "I'm going to go buy somewhere else or do something else." And the last part is really around, how do we really enable our customers with the best practices? So those million users, the 21,000 companies in organizations we're working with, we've learned a lot around what good looks like. And so we've really embedded that back into our product in terms of our service standards which is really helps SRES and developers set quality standards for how services should be implemented at their company and then they can actually monitor and track across all their teams, what's the quality of the services and this team against different teams in their organization and really raise the quality of the overall system. >> So for businesses and like I mentioned, DocuSign was on this morning, I know some great brand customers that you guys have. I've seen on the website, Peloton Slack, a couple that popped out to me. When you're able to work with a customer to help them revolutionize operations, what are some of the business impacts? 'Cause some of the things that jump out to me would be like reduction in churn, retention rate or some of those things that are really overall impactful to the revenue of a business. >> Absolutely. And so there's a couple different parts of it. One is, all the work what PagerDuty is known for is orchestrating the work for a service outage or a website outage and so that's actually easy to measure 'cause you can measure your revenue that's coming in or missed revenue and how much we've shortened that. So that's the, I guess that's our kind of the history and our legacy but now we've moved into a lot of the cost side as well. So, helping customers really understand from an outage perspective where to focus our time as opposed to just orchestrating the work. Well now, we can say, we think we have a new feature we launched last year called Probable Origin. So when you have an outage, we can actually narrow in where we think the outage and just give you a few clues of this looks anomalous, for example. So let's start here. So that still focus on the top line and then from an automation perspective, there's lots and lots of just toil and noise that people are dealing with on a day in, day out basis and then some of it's easy work, some of it's harder work. One of the ones I really like is our automated diagnostics. So, if you have an incident, one of the first things you have to do is you have to go gather telemetry of what's actually happening on the servers, to say, is the CPU look good? Does the memory look good? Does the disc look good? Does the network look good? And that's all perfect work for automation. And so we can run our automated diagnostics and have all that data pumped directly into the incident so when the responder engages, it's all right there waiting for them and they don't have to go do all that basic task of getting data, cutting and pasting into the incident or if you're using one of those old ticketing systems, cutting and pacing into a a tickety system, it's all right there waiting for you. And that's on average 15 minutes during an outage of time that's saved. And the nice thing about that is that can all be kicked off at time zero so you can actually call from our event orchestration product, you can call directly into automation actions right there when that event first comes in. So you think about, there's a warning for a CPU and instantly it kicks off this diagnostics and then within seconds or even minutes, it's in the incident waiting for you to take action. >> One of the things that you also shared this morning that I loved was one of the stats around customer sale point that they had 60 different alerts coming in and PagerDuty was able to reduce that to one alert. So, 60 X reduction in alerts, getting rid of a lot of noise allowing them to focus on really those probably key high escalations that are going to make the biggest impact to their customers and to their business. >> That's right. You think about, you have a high severity incident like they actually had a database failure and so, when you're in the heat of the moment and you start getting these alerts, you're trying to figure out, is that one incident? Is it 10 incidents? Is it a hundred incidents that I'm having to deal with? And you probably have a good feeling like there's, I know it's probably this thing but you're not quite sure and so, with our machine learning we're able to eliminate a lot of the noise and in this case it was, going from 60 alerts down to one, just to let you know, this is the actual incident, but then also to focus your attention on where we think may be the cause and you think about all the different teams that historically have been had to pull in for a large scale incident. We can quickly narrow into the root cause and just get the right people involved. So we don't have these conference bridges of a hundred people on which you hear about. When these large cottages happen that everyone's on a call across the entire company and it's not just the dev teams and IT teams, you have PR, you have legal, you have everybody's involved in these. And so the more that we can workshop their work and get smarter about using machine learning, some of these other technologies then the more efficient it is for our customers and ultimately the better it is for their customers. >> Right and hopefully, PR, HR, legal doesn't have to be some of those incident response leaders that right now we're seeing across the organization. >> Exactly. Exactly. >> So when you're talking with customers and some of the things that you announced, you mentioned automated actions, incident workflows, what are you hearing from the voice of the customer as the chief product officer and what influence did that have in terms of this year's vision for the PagerDuty Summit? >> Sure. We listen to our customers all the time. It's one of our leadership principles and really trying to hear their feedback and it was interesting. I got sent some of the chat threads during the keynote afterwards, and there's a lot of excitement about the products we announced. So the first one is incident workflows, and this is really, it's a no code workflow based on or a recent acquisition of a company called Catalytic and what it does is it's, you can think of as kind of our next generation of response plays so you can actually go in and and build a workflow using no code tooling to say, when this incident happens or this type of incident happens, here's what that process looks like and so back to your original comment around the great resignation that loss institutional knowledge, well now, you're building all this into your processes through your incident response. And so, I think the incident workflows, if you want to create a incident specific slack channel or an incident specific zoom bridge, or even just in status updates, all that is right there for you and you can use our out of the box orchestrations or you can define your own 'cause we have back to the, our customer list, we have some of the biggest companies in the world, as customers and we have a very opinionated product and so if you're new to the whole DevOps and full service ownership, we help you through that. But then, a lot of our companies are evolving along that continuum, the operational maturity model continuum. And at the other end, we have customers that say "This is great, but we want to extend it. We want to like call this person or send this or update this system here." And so that's where the incident workflows is really powerful and it lets our customers just tailor it to their processes and really extend it for them. >> And that's GA later this year? >> Later this year, yes, we'll start ING probably the next few months and then GA later this year. >> Got it. Last question, as we're almost out of time here, what are some of the things that as you talk to customers day in and day out, as you see you saw the chats from this morning's live keynote, the excitement, the trust that PagerDuty is building with its customers, its partners, et cetera, What excites you about the future? >> So it's really why I came to PagerDuty. I've been here about a year and a half now, but revolutionizing operations, that's a big statement and I think we need it. I think Jennifer said in her keynote today, work is broken and I think our data, we surveyed our customers earlier this year and 42% of the respondents were working more hours in 2021 compared to 2020. And I don't think anyone goes home and if I could only work more hours, I think there's some and if I could only do more of this like TDM, the TDM, more toils, if I could only do more of that, I think life would be so good. We don't hear that. We don't hear that a lot. We hear about there's a lot of noise. We have a massive attrition that every company does. That's the type of feedback that we get and so we're really, that's what gets me excited about, the tools that we're building that and especially when I think just seeing the chat even this morning about some of the announcements, it shows we've been listening and it shows the excitement in our customers when they're, lots of I'm going to use this tool, that tool, I can just use PagerDuty which is awesome. >> The momentum is clear and it's palpable and I love being a part of that. Thank you so much Sean for joining me on theCube this afternoon, talking about what's new, what's exciting and how you guys are fixing work that's broken that validated me thinking the work was broken so thank you. >> Happy to be here and thanks for having me. >> My pleasure. For Sean Scott. I'm Lisa Martin, you're watching theCube's coverage of PagerDuty Summit 22 on the ground from the San Francisco. (soft music)

(bright upbeat music) >> Welcome to theCUBE's continuous coverage of "AWS re:Invent 2021". I'm Dave Nicholson, and here at theCUBE, we're running one of the most important largest events in tech industry history with two live sets right here, live in Las Vegas, along with our two studios. And I'm delighted here in our studio to welcome Scott Warren US AWS practice, vice president for Capgemini. Welcome. >> Thank you. >> Dave: How's the show been going for you so far? >> Very, very good so far. It's great to be back in person. >> So tell me about your role at Capgemini. What you focus on. You're responsible for the relationship with AWS? >> Absolutely. So managing the relationship with AWS and how we partner, and then probably more importantly, kind of how we go to market with the AWS offering for our customers. So kind of understanding what the customer demand is, how we can help accelerate and get them moving faster out to the cloud, and then building that up as well as kind of industry specific offers on how we can accelerate cloud adoption. >> So when you talk about acceleration often in an organization like yours, there is the tug of war between the spoke solution hearing and pre-packaged things that serve to be accelerators. How do you go about balancing those things and tell us about some of the accelerators that you've developed? >> Absolutely. I think it's always kind of going to be a hybrid between the bespoken out of the box solutions. The out of the box solutions are inevitably always going to take some sort of customization or something like that to make them applicable within a customer's environment. But we all know it's very time consuming and expensive to build something completely bespoke from the ground up. So the way we really address that is we've built something at Capgemini we called it the cloud boost library. It is an online get lab library of thousands of code templates, infrastructure as code snippets that solve deploying your infrastructure and provision your infrastructure on the cloud, microservice design for healthcare and financial services and manufacturing and automotive. >> So industry specific? >> Not just specific and cloud in general. And so we bring that to every cloud engagement we work on. It's our real motto around that is we should never be starting on zero, starting from ground zero and anything we push out to AWS and we can always borrow, steal, modify, and change part of that library specific to that customer demand and need, and really speed up the implementation and get them out to AWS faster. >> Can you kind of double click on that? Give us an example of an accelerator inaction. You don't have to necessarily, if you've got a customer name, fantastic, or you can keep it generic. >> Yeah, absolutely. So we work for a big financial services company that's doing kind of an online data dissemination system, so thousands of public API is to disseminate data out to their customers and partners and vendors and things like that. So we were able to use that library to kind of get the framework for every single one of those APIs. A template, a kind of base function for that, and then use that kind of repeatably across those thousands of API. So we never really started from zero and said, provided 70, 80% kind of efficiency gain on that project versus kind of building it from the ground up. >> So with a customer like that, how did the initial engagement start? Was this a preexisting Capgemini relationship? Was this AWS at the table strategizing bringing in Capgemini. How does that work with your relationships with customers? >> So this was an existing customer of ours that we'd been doing application management in their data center for years. And several years ago, they had a kind of a leadership change happened and a new CTO came in and he laid down the edict that they're now a cloud first organization. So of course all his direct reports and managers started asking, what does that really mean? And they came to us as a trusted partner. And so we started walking them through our framework and template of how we bring our customers from ground zero completely in the data center, completely to a cloud first organization. And at that same time, we also began engaging our counterparts at AWS because we want to make sure we're in lockstep with what they're doing at AWS and kind of one consistent message out to our customer and doing the things the way they want them to be done. We want to unlock the funding programs available from AWS to incentivize that customer, to move out to the cloud. And then really having that kind of three legged partnership with us, the customer and AWS, puts them on the right path for success and in faster adoption of the cloud. >> Capgemini didn't just roll out of college a couple of years ago. (laughs) >> Been around a while. Been around a while. >> So you have an interesting perspective because you just mentioned being involved in the management of a customer's environment and IT landscape that is outside the purview of cloud, at least at some stage of the game. How do you turn being a legacy provider of services into a superpower instead of a liability? >> Absolutely. Yeah. >> How do you do that? And the reason why I say that superpower is because you said cap earlier and I thought in America, but it's a serious question. Some would say, well, Capgemini legacy. No, no, no. What's your reply? >> Absolutely. So what we found is the most important thing about a move to the cloud is understanding the entire application portfolio and landscape and the best way to move into the cloud. Some applications that are very prime for lift and shift. We just want to get them out of the data center, into the cloud very quickly. Other ones that are very mission critical on customer facing very important for the future of an organization. Really need to be looked at with a more modern lens in the clouds. How do we modernize this, make it cost effective, and in a long-term asset, that's going to run in the cloud in a PaaS or SaaS based service offering rather than just IaaS. So all of the legacy work under the previous work we've done for our customers, we understand their application and in data center landscape better, they do in most scenarios. So having all of that data allows us to feed that into kind of some of our tooling around assessing applications and figuring out the best migration path or modernization path. So all of that legacy knowledge kind of puts us in the driver's seat for being the best partner to actually help them with that cloud modernization. >> So with your AWS responsibility as part of Capgemini, it's a bit like having a foot on the dock and a foot on the boat? >> Scott: Yep. >> In terms of an individual customer's requirements, obviously Capgemini can continue to manage what we would refer to as legacy infrastructure while helping to modernize and migrate to cloud. What about this sort of combination of the two that represents the future specifically, AWS is support of hybrid cloud technology. The idea of Outposts, is that something that you are involved with? >> Absolutely. We're seeing kind of Outpost adoption trend up recently, actually. So when we see in certain sectors where a lot of kind of work is being done on the edge, a great example is an agriculture company we work for that has field in soil and weather sensors all over the planet. So monitoring the moisture in the soil, the nitrogen levels, the wind air pressure and temperature and humidity. And oftentimes those fields are in very remote disconnected locations. So we're seeing things like Outpost and snowball edge and different services like that become more and more prevalent for those edge use cases where compute can actually be done on the field and decisions can be made by the farmers that are planters in the field like real time. And then when connectivity comes back around, they can actually beam that back to AWS if necessary. The other kind of scenario we see Outposts really being prevalent is in very sensitive data scenarios. So we have customers in federal government work or things like that. There's just some data due to regulatory compliance that cannot be on the public cloud node yet, yet being the key word there. So Outposts becomes really important in those scenarios where the vast majority of the data and the assets go out to AWS, but the very, very sensitive data due to regulatory reasons, we keep in the Outpost can still kind of harness the power of AWS on that. >> You know, that brings up another interesting subject, the difference between where technology actually exists today and where people exist culturally today in terms of their acceptance and adoption of technology. There are absolutely cases where data residency, data governance requires that it be onsite. >> Scott: Absolutely. >> Then again, there are a lot of cases where people are just concerned about not having their arms around the data. So the perception that it isn't as safe in the cloud, as it is in the customer's data center is often a misguided, >> Scott: Very much so. >> Perception. So that's obviously an inhibiting factor to cloud adoption in some way. What are some of the other things that you see that are headwinds? Because it's been talked about widely here 80% or more of IT spend is still what we would think of as on-premises. >> Scott: Data center. Yeah. >> Not cloud. Those lines are being blurred with things like Outpost. I contend that in five years, when we talk about cloud, that's going to be sort of an irrelevant term. >> Yeah. >> It's really like, well, because it doesn't matter where it is. It's all virtualized. >> Compute and storage somewhere. Yeah. >> The headwinds that you're seeing. And again, they can be irrational headwinds or they can be technical bottlenecks. >> Yeah. I think the biggest one is business understanding what the cloud is and them adopting it. I've had a couple meetings that were a new thing for me this week, where I met with the chief marketing officer for one of our customers. So we're meeting with CTO, CIO, VPs, directors in the IT space, but this marketing officer wanted to meet with us. And she was kind of very cloud knowledgeable. She understood IaaS, SaaS, PaaS and the costing models of cloud consumption and some of the services. In her organization is kind of already all in on AWS. And she had seen this happen, this transformation happened on the IT side. And she wanted to know how can I, as the head of my marketing department start to harness the power of the public cloud to drive business outcomes within my area. And that was a really interesting conversation for me and kind of got me thinking that I think the business is going to start understanding, and that the lines between IT and business are going to begin to get blurred a little bit with the power of AWS and other hyperscalers and all the capability that's available to our customers once they get moved out there. >> In today's keynote, Swami talked a lot about data and the data-driven companies, or rather companies that are not data-driven. >> Yep. >> Are going to be left behind. And I thought it was interesting in the survey. He mentioned 9% of companies reported not looking at data at all for their decision-making process. We need a list of those companies so we can short their stocks. (laughs) And we can help them out. (laughs) Or you can help out, or you can help them out. Exactly. I'll refer a half to you, and I'll short the rest. How's that feel? Is that a deal? So within your world of things you do with AWS, with Capgemini on behalf of the customers, what are some of the tip of the spear things that are the most exciting from a buzz perspective and what are sort of the next gen things that you're thinking of? It could be something you literally just heard about announced over the last couple of days. What does the future hold? >> Absolutely. We kind of look at that is what we classify our intelligent industry offering. And so it's really industry specific offers and services that are going to kind of change how specific industries do business. A really good example is we do a lot with the automotive industry. We started working with the OEMs that are kind of producing electric vehicles and autonomous driving vehicles. And we've actually built a framework that lives on top of AWS called connected mobility solutions. So connecting all of the driverless functions of a car back to the mothership or the cloud, the cloud instance. And I think things like that are really kind of tip of the spear where it's, again, out on the edge, not in a data center or in a cloud, but gathering all that data from connected devices in different areas and kind of how we're going to manage that and enable that and make it secure and safe and reliable and things like that. >> Yeah. Yeah. I have direct experience with some of that. I have a car that won't allow me to access all of its self-driving features. I bet I can guess because of the way I drive. (laughs) Yep. The cloud is not all wonderful. It's not all lollipops and rainbows. There is a bit of a downside to it if you're a crazy maniac like myself. So Capgemini, hasn't just been a standalone organization. You've absorbed and merged with all sorts of different organizations. I imagine you have organizations that are specifically focused on AWS in addition to other clouds. >> Scott: Absolutely. I can manage that culturally. >> That's a good question. So three years ago, me as the Capgemini group as a whole entered into a three-year partnership called Project Liberty with AWS. And it was a three-year plan we had targets and numbers on both sides, but it really kind of unified how we were going to do AWS and cloud work across the Capgemini organization, all working under one program towards one common goal, on developing accelerators and solutions and go to market offerings, kind of with one thing in mind to drive that AWS partnership and growth. So that's really been kind of the big driver for us within Capgemini over the past three years, is that what we call Project Liberty internally. And then just recently about a year and a half, maybe two years ago, we acquired one of the world's leading digital engineering firms called Altron. Big presence in Europe, Southeast Asia and North America. And they brought kind of a whole new flavor of how we do cloud when we're talking about digital twin in the cloud, on the factory floor and actually engineering of products and in driverless vehicles and electric vehicles and things like that. So bringing all training and being able to include them in our overall kind of cloud AWS message and bringing their book of offers in has really expanded our offering as well. >> How has talent recruitment and acquisition been for you guys? Are you faced with the same challenges that others are? Which is we need educated people. Give the pitch, so my kids hear it. So they understand. The graduate was plastics, right? That's the future? >> Yeah. >> Cloud services, without Capgemini, all the technology that AWS produces is essentially worthless. If you can't connect it to business value and outcome, and that's what you do. So how has that looked for you? >> Yeah, we hae the same talent challenges as everyone right now. So we're really taking the thought process of let's take people who aren't traditionally in the technology field and begin training them up on the cloud and the different technology areas. >> You do that at Capgemini? >> We do that at Capgemini, yeah. So we're running in conjunction with AWS big boot camps where we bring people in and- >> Who are this people? Not to interrupt, just a few seconds left. What's the profile of somewhere? >> Yeah. So a lot of- >> I want to hear the unconventional ones, not the computer science person who doesn't know cloud. Who are you bringing in on this one? >> New college hires who majored in the non-related IT field completely psychology, social sciences, whatever it may be. But who had the aptitude and then kind of the one to learn cloud in IT. So we bring them in. And then looking in our Capgemini Organization internally at our recruiting organization, our marketing organization, our partnership organization, and some of those people who are early on in their careers and may want to pivot to the technology side. We're starting to ramp them up as well. So it's been a very effective program for us. And I think something we're going to continue to invest in further. >> That's a very satisfying part of what you do to be a part of. >> Absolutely. >> Well, Scott, I got to tell you it's been a great conversation. For the rest of us here at theCUBE our continuous coverage continues here at AWS re:Invent 2021. I'm Dave Nicholson signing off for a moment. But keep it right here theCUBE is your technology hybrid event leader. (upbeat music)

>>Hey guys, welcome back to the cubes. Continuous coverage day, one of AWS and re-invent live that's right live in Las Vegas. I'm Lisa Martin. Pleased to be here. We are running actually one of the industry's most important hybrid tech events with AWS this year, and it's huge ecosystem of partners. We have two lives dots, two remote studios over 100 guests on the program. We'll be talking about the next decade in cloud innovation. I'm pleased to welcome back one of our alumni and a new guest to the program. Savina Joyce Sabina, Joseph GM of technology partners at AWS joins me as well as Scott Owen, the VP of business development and global channels at air slate, guys. Welcome to the program. Thank you for having us. It's a great to be here. Live happy. Fantastic. Let's go ahead and give the audience an overview of your roles. Sabina. We'll start with you. And then Scott will go to you. >>Great to see you again, Lisa general manager for technology partnerships globally out of the Americas, and we also help partners out of EMEA and APAC grow their business in the Americas. >>Awesome. Scott goes, I'd give, give us an overview of air slate and then your role. You will. >>You bet. Uh, so, uh, air slate, we have two offerings on the AWS marketplace or e-signature offering, which is sign now and then our no-code workflow automation, which we're really excited to bring on the marketplace. I lead our business development, uh, in channels organization for the company global partnership with AWS. Uh, we're very excited about it. >>Talk to me about some of the challenges that the tools that you just mentioned, what challenges are those solving for customers in any industry? So, >>Oh, the biggest challenges right now, obviously we are in a COVID environment and, and companies are trying to drive automation optimization, especially for remote workers to today. And so part of our solutions is obviously solving that in a very, very big way on a global basis as well. >>What are some of the key trends that you're seeing? We've seen so much flux on change in the last 20 months, but what are some of the key trends, especially as it relates to workforce productivity with those work from anywhere environments still persisting, >>It's still persisting. And I'd say the challenge is we're in a hybrid mode where you have both, you know, coming to the office, not coming to the office, but still very remote, just a last week's announcement of a new variant, for example, forcing everybody back out of the office, back into a remote environment. So flexibility, uh, around supporting that hybrid workforce is key. >>And of course here we are at a hybrid event. There are people here at a lot of them in person, but there's also a lot of content that's going on virtually for those folks that weren't quite comfortable coming back to an in-person event. But let's talk about savings about how AWS has been helping joint customers with air slate through the pandemic over the last 20 months as we saw this scatter. And now this work from this hybrid kind of work environment. Yeah. So, >>So I, Scott mentioned, right, that customers are really looking for business solutions. I did have some rapidly increased the last 20 months. We are really, we've been really working together to help both workers and businesses adapt to this remote environment. And customers are looking for simple and cost effective solutions anywhere from, you know, improving and automating their business workflows with e-signature solutions, all the way to complex processes with no code capabilities and air slate does a great job of providing these solutions for our customers. >>Some of the things from a business automation perspective that are critical these days is anything contactless talking about. E-signatures for example, it's, that's really became table stakes in the last 20 months. It's not talk to me about how you would from a biz-dev lens. Describe the partnership that air slate has with AWS. >>Yeah. For our company, it is the most strategic partnership that we have and it's all the way from our board level to our executive leadership team all the way through, throughout our organization end to end it's our most strategic partnership. >>And the things that we know and love about AWS that we've talked about with Sabina is their customer first focus, their customer obsession from a cultural perspective, is there alignment there with air Slate's culture, >>A hundred percent. And one of the cool things about the AWS partner program, which we're in a high echelon period, is the focus on the customer. The customer can reduce their EDP commit by buying solutions like ourselves on the AWS marketplace, as well as the AWS account executives are also paid and incented to sell our solution as well. So it's a one plus one equals three scenario. >>That's a good scenario. One plus one plus three. So be it, talk to me about the evolution. How long have you guys been partnering with air slate? And talk to me about the evolution of the partnership. >>Yeah. We've been working together for a few years now, but I would say the last 15 months, we've really accelerated that partnership again because of customer need and really built out high velocity Cosell motions. We made available to our slate, our partnership resources, both from commercial and public sector to scale the sales motion. As Scott mentioned, they're available in marketplace and they're also part of our ISV accelerate program, which means that our sales teams are incented to work with air slate, to close opportunities. And the key is all of this has led to 250% increase in customer wins year to date as compared to 2020. So that really speaks volumes with the partnership and the need that we are solving for our customers. >>Amazing, amazing growth, 250% in, in a year's period during a pandemic, that's massive, but we saw the acceleration of cloud adoption of digital transformation and this dependence on SAS and cloud for our business lives, our daily lives, our consumer lives. That was really absolutely critical. So Scott, from your perspective, what are some of the key aspects of the AWS relationship that you think really contribute to that success and that big metric that we just met? >>Yeah, absolutely. Well, the metric is driven by the partner programs. When you have a customer that can buy on the marketplace, reduce their EDP commit. You've got account executives that are incented to resell us, but for us, we have really great leadership support around the globe. We've created joint KPIs of which we all have stacked hands on and said, here's the KPIs we want to deliver as a joint partnership. And we're delivering those, which is creating these results as well. Can you share >>Some of those KPIs even at a high level? >>Yes. A lot of them are what, uh, opportunities in our renewal base can we bring into the ado, uh, UWS, uh, ecosystem, if you will. Um, as well as in nearly every deal that we're in, we're asking, is this an AWS customer? Is it a Greenfield opportunity for AWS and bring in the associated teams together to close that opportunity, >>Scott, about some of the business outcomes, the benefits that your joint customers are achieving, leveraging the power of this partnership? >>Absolutely well there's enormous cost savings in the solutions that we bring to the table creates the optimization that we talked about, that they need. It's also driving that digital transformation, any company, any size in order to survive has to move digitally into this new space. And we believe that the two offerings we bring to the marketplace can solve that for them. >>That's one of the things that we saw, there's definitely some silver linings that have come out of the last 20 I'm losing count 22 months, something like that. And nothing like that, right. A time to value is absolutely critical. Let's talk about now go to market Sydney and going back over to you, how does AWS support partners like air slate, um, and taking the solutions to market? You talked about the marketplace, but talk to me about that from a strategic perspective. Yes. >>So one of the things we are very focused on is creating business automation solutions, especially for industry verticals across automotive, telecommunications, healthcare, life sciences, and air slate really has solutions that help address all of the horizontal use cases and the vertical use cases, which means then we can focus our demand generation activities and actually help both our direct sales team and also our channel partners really, really scale. So again, it's kudos to Scott and the air slate team in order to be able to really scale this partnership, but most importantly help our customers through these really tough times in the past 20 months. >>And it's, uh, uh, you mentioned that with the Omicron Darion variant being announced just in the last week, of course, these challenging times persist in this uncertainty persists to it's important to have partnerships, but I also imagine Scott from your, from your perspective, being able to show transparency to the customers that you're really one team, you know, with AWS, with your channel partners. Talk to me a little bit about that. What does customers actually see and feel >>While we're excited, especially around the ecosystem piece is for example, in the last few months, we've been able to activate 35 of AWS's largest channel partners, uh, due to the fact that we are in this hand, stacked KPI go to market together. And so the ecosystem of AWS, it's the trusted partner of almost every customer. And we are trying to advantage ourselves with that trusted relationship, bringing a set of solutions that helps drive the customer's outcome. >>You mentioned an important word there, Scott, that trust that is critical for every company that is becoming a data company. If they haven't become a data company by now, they're probably not going to be around much longer. Talk to me about from a trust perspective, what that means for your customers to be able to adopt these solutions, automate their businesses, allow their folks to work from anywhere and have that trust and this solid partnership and technology. >>Well, and that's the benefit of the AWS partnership. When you think of security, reliability, our entire offering basis completely on the AWS infrastructure. So we bring that trust of you can trust that the technology that it's sitting on, you can trust that it's secure, that's reliable, and we're bringing a set of solutions that drives those customer outcomes, which is cost savings, optimizations, et cetera. That combination is a win-win out there. >>And that outcome spaced focus is critical. What are some of the things Scott that folks can learn at air Slate's booth this week at reinvent for those folks that are here in person and those folks that are attending virtually >>Great question. I love that question first and foremost, both offerings are on the AWS marketplace, but we're the only e-signature offering on the marketplace. And we're the only end to end workflow automation offering on the marketplace as well. So again, uh, important to note we're on that AWS marketplace, AEs from AWS can take advantage of that end. Customers can take advantage of that. Uh, and we take advantage of it just to the, our great go to market partnership. >>We're going to mark great, good to market partnership, but also I'm hearing a pretty significant differentiator being the only ones in the marketplace with those. Talk to me about how that, I mean, one, one more question. How does that facilitate like customer conversations? I imagine that's a huge differential >>Here's is a significant different traitor to us obviously, but again, it's the power of one. Plus one equals three in the partnership, we brought a set of solutions that the customer needs. We do it on the AWS marketplace and AWS infrastructure that we sit on that creates that trust factor that you mentioned. >>I have to add, right? That air slate and team, when they saw that they were the first right, they embraced that and they broke ground and they listed on marketplace and that's paying off for them. >>Very smart. Well guys, congratulations on your joint success. Your go to market strategy seems brilliant, and we look forward to hearing many more successful years from airside and AWS together. Thank you for your insights. Thank you. Thank you. Thank you. Pleasure. You were great for my guests. I'm Lisa Martin. You're watching the cube live from AWS. Reinvent the leader in global alive tech coverage.

>>Hey everyone. Welcome back to the cubes. Continuous coverage of AWS reinvent 2021 live. Yes. Live in Las Vegas, Lisa Martin, with Dave Nicholson. David's great to co-host with you. How you doing >>Fantastic. Great to be here with >>You, Lisa, as always, we're going to have a great conversation. Next to Cuba actually is two lifestyles, two remote studios. We've got over a hundred guests on the program talking about the next decade and cloud innovation and Dave and I are pleased to welcome Scott Carter, the CTO of TSS to the program. Scott. Welcome. >>Thank you. It's really, really great to be here. Really >>This a little bit. Great to have you on the program. Talk to us a little bit about, about TCIs and let's talk about your kind of journey to the cloud and your relationship with AWS. >>Absolutely. Um, you know, TCIs, we've been around as a company for about 40 years. We specialize in, uh, payment products specifically on the issuing side. So card issuing, we've worked with some of the largest financial brands in the world and retailers as well. Uh, and, and a lot of, you know, what I always tell people is if you have a card in your wallet today, uh, you could probably pull it out. And at least one of those cards is something that we manage and service for our customers. And, and we, uh, do everything full lifecycle of those payment products for our customers around the globe >>On behalf of being a cardholder. Thank you. Talk to me a little bit about the AWS partnership here we are at re-invent. >>Yeah, well, we started a very special, uh, partnership with AWS about 18 months ago. We're about 18 months into the journey, uh, and really our goal and our vision is to build out a financial services cloud for all of our clients and our retailers and fintechs. Uh, we're really focused right now on migrating some of our key products to the AWS cloud environment. We built we've used us a variety of AWS technology by some on-premise and in the cloud environment to migrate our processing platforms and all of our customer servicing systems. So we're in the middle of that journey. Uh, we've had a lot of successes so far. AWS is helping us out. Our engineering team is working side by side with the AWS engineering team to produce what we believe is going to be the next generation of payments, especially on the card issuing side, >>Next gen that's, that's important as a consumers, consumer life business life. We have that expectation that we're going to be able to transact whatever we want anytime day or night, >>Absolutely choice is key, uh, virtual physical, no matter where you are, we want to be able to facilitate your payment and make sure you have everything you need to support you through the full card life cycles, the life cycle of your account. >>So you talk about those cards being in our wallets and handbags. I know there's one that's actually smoking. It's so hot from use in my co-hosts handbag, but, >>Uh, we appreciate that >>Talk, talk, talk about this journey from the perspective of someone who, um, I assume like me is not just out of college, right? You've working, you've been working in this business for a while. And so you're going through the transition from the world of what some will refer to as legacy it into the world of cloud. Uh, talk about the challenges there. How do you go after the low hanging fruit versus the high hanging fruit? How do you evaluate something from an ROI perspective? Talk about that. >>Yeah, and I, you know, uh, I get that quite a similar question a lot. I get, you know, people are, are interested in the journey and especially CTOs and CEOs who were starting journeys at their own. I get a chance to talk with a lot of banks and retailers about their individual like modernization and transformation journeys. Um, and you know, the, the basics are true about the journey. And I had somebody tell me years ago that it's, it's, it's psychology, it's not technology. Uh, you've really got to address the people's side of the equation. First, you've got to focus on training and upskilling, make sure that the team comes along on the journey. And then you've gotta be a really good recruiter. You've got to go out and get the talent, the skills you need to build a good foundation. You gotta have the right partners. >>You know, we have partners like PWC and, and, uh, AWS and others that are really helping us with the journey. So that part of it's really, really important. The key is, and I think for us, uh, we really started building our talent pool, uh, probably more than five years ago. And so we were able to bring in some skill sets in dev ops and some skill sets. And, you know, nowadays AI we'd do a lot with ML and AI skill sets. Uh, but we were able to build in a lot of cloud skills and start to build out our development environments first, very, very early on. That's what we did. And we used those development environments for our engineers to cut their teeth and really get comfortable in the cloud. Um, I remember probably about three years ago, we installed our first Kubernetes cluster. Um, and we did it with a small team. >>And then over time we really incented the team by allowing them to get more and more certifications and grow their skills. And we really built up a really large team around just our on-premise cloud first. And then later that helped us with the migration, the journey into the actual public cloud for those same services. Um, and we use that, that same team as there today, we really invest in our people. We think it's important to have a staff that's there. We insource our staff. We really believe in that. Um, that's super important, even though we have partners that we really value, we make sure that we've got a core group of people that are really passionate about the journey and about cloud. And so that >>You mentioned that, that kind of cultural aspect. Yeah. And you mentioned bringing in a team starting years ago with a specific focus. What about the transition of folks who have been it practitioners for maybe decades making that transition? How has, how has that worked out culturally? Have you adopted a policy where you're basically saying, look, if you have experience with this stuff, great, stay with it. Yeah. But we're hiring net new people for the new stuff. Is that the strategy or is it >>Look like I've seen some do that? I personally don't feel that that works because you need some subject matter experts. You need people who really know your products and your company and your solutions and your customers. You really need those people to come along the journey. So what we've done internally is we created, for example, a digital boot camps where our team members could sign up that could come in. We actually construct the boot boot camps on about a six week schedule. Uh, we do two week sprints. So we do three sprints. We, we get them sort of inculcated and agile from the very beginning, we have demos at the end of each sprint. So they're working in an agile way as they're going through their training course. And then of course we, that gives us a chance to identify people who are really high potential to move into some of our cloud teams and our dev ops teams. >>And so that's been really, really beneficial for us. And I would tell you that today we've got people that have a broad range of skills just because of that digital bootcamp. So they may have started their career doing assembler or COBOL or something like that. But now they've tacked on some dev ops and some cloud skills. Uh, we have some that know dynamo DB, and they also know DB too. And we like that. So they have a broad range and those people bring a lot of deep expertise that you're not going to necessarily get with somebody that you're bringing, you know, new, you know, sometimes straight out of college into your company. You've got to grow those people too, but you need the experience, people there to help develop them. >>No, we often talk about people, process and technology, and it's kind of a phrase that's thrown around right. At every event with every vendor. But I really admire the focus on the people, part that you're talking about there and how it's really essential to enable, to enable the people, how you started very strategically starting with the people in the focus and the training on-prem then making the decision that they've, they've got the foundation. Now we need to migrate to the cloud. I'm curious the why AWS, you have a lot of choice course here we are at reinvent. But talk to me about why AWS is that strategic partner. >>We've, we've looked at a number of different cloud platforms for our business. And in fact, uh, global payments is a large company. So TCIs is sort of the issuing part of that. And so we have really great relationships with GCP and other cloud platforms, even some Azure in certain pockets of the company for the issuing side of the business, we went through a thorough evaluation and we felt like the tools, the technology, the platforms, really the, the maturity of that platform. And then the scale, you know, scale matters in our business. And a lot of businesses, it matters, uh, you know, the locations of all of the, uh, uh, availability zones and the regions that was really important to us. We were able to align all of the different AWS regions to where our customer locations are. And that's becoming more and more important as we, you know, we try to be more flexible now about where we, uh, you know, deploy our products around the globe. We want to make sure that whoever we partner with has a point of presence in those markets and that we can do that very, very quickly. We can stand up a new environment when we need to. And so that's what that's been really beneficial that we made that choice with AWS. Um, you know, there's a lot of cloud platforms out out there there's a lot of choice, but we just felt like AWS was the best for us. >>AWS is also very, very, very customer focused, but they probably would say customer obsessed, really that customer flywheel that generates everything that we'd even heard this morning in the keynote culturally, is TCIs similar to AWS in that respect. And can you share a little bit about that? >>Very much. So our reputation as a business is based on the relationships that we built with our customers, and we're known for that in financial services, the TCIs brand and the way that we think about our customers and the way that we partner with them. Um, you know, we, when we taught with the AWS team, we, we try to explain, you know, our history is, you know, w we're kind of the cloud for our customers. So they have a number of products and services. We support those, we manage those products. We, we build on top of, of those products for them. And so we really understand that it's important, not only that you're building a platform, but that platform has got to be able to support all the different things that our customers do every day. And we want that to be broad. We don't want it to be narrow. It's not just focused in one area. If our customers come to us and they say, well, you know, I need to build a data and an analytics platform, or I need some really specific fraud capabilities. We want to be able to support that on demand with our customers. And that's really the journey that we've taken with AWS. AWS is enabling that for us. >>And on-demand is key. I think we've one of the things that's been in short supply during the last 22 months is patients, right? That's >>Right. Absolutely. >>So describe the role of a CTO in that process. What does that look like? Because this isn't, you're not making unilateral decisions here, obviously you're working with the team, but talk about the CTO's perspective as you make decisions about whether AWS is the right fit for a part of your environment or GCP or something else. >>Yeah. I think, you know, um, we, we have, uh, a long history of supporting our own solutions and supporting our systems. And we run some of the world's largest like authorizations platforms, which those are the platforms where when you go into the store and you swipe your card, you, you have to get a response back from us. Like we have to give you that and we have to give it, we have a really specific amount of time. We have to give that back to you. And so we really understand operations and support and how to scale, uh, applications and systems and, and, and how to build really, really reliable solutions. We really understand that part of the business. So whoever we partner with, and, and you asked about my decision to CTO, it was really a group decision. You know, I have to partner with our business team, I have to get their buy-in. Um, they have to support the decision, whatever we do, it's a big investment, we're making the move to the cloud. And so, um, but we have to make sure that we, we cover off the basis. They've gotta be able to at least whatever, whoever our partner is, they've got to be able to at least provide the operational support and the reliability that we're able to give our customers today. So it's just a spreadsheet that's right. Technical qualifier, >>And whoever has the most boxes checked wins. That's right. You're taking into consideration all of those cultural aspects and the goals of the business. That's right. So as a chief technology officer, it's not just about the technology, it's about the business >>That's right, right. So I have a very, very close relationship with the president of our business, Galen, Jowers, um, and, and we built a team and we have on, on the, uh, the actual modernization or transformation team, we have members that represent that from a business perspective there I report into, uh, directly into the business teams. And then we have, uh, people from my, from my side of the, of the company. And we work every single day together and we're driving this forward. So the important part of that is at some point, we, we go to our customers and we show them, Hey, for this particular product or service that we're offering, we're going to be moving that to cloud on this kind of a schedule. And we're there together as a unified front and a unified communication with our customer to explain that journey. And we think that's really important that we do it that way and not do it. You know, like I've seen some companies they'll segment it and sort of technology, or it goes off and they kind of do their own sort of cloud initiative to us that wouldn't work for our business. It's gotta be together and enjoy it with the business. >>You sound like a very much a transformational CTO to me versus a traditional CTO and working at a legacy company that's been around for 40 years. That's impressive that the company is that forward in thinking, first of all, about its people, but also about that business, it partnership. But that has to be in lock step. We talk about that all the time, but it's hard to facilitate that, but you really sound like you guys have done a phenomenal job with some key strategic foresight is not the word. Um, I liked, like Dave was saying, it's not a spreadsheet. It's a checklist of technology requirements that people element is absolutely. >>Absolutely. And you have to, you have to, you have to be all in together on it because you know that as you go on the journey, you're going to have some failure. You're going to experience some challenges. Your customers might not be happy with every decision you make. So you have to be in it together. You're going to have to make that commitment as a company. And that's what we decided early earlier on is that we were going to do that and it's worked out well for us. >>What are some of the things that are going to be happening next for TCIs as we hopefully round out the year 2021 and go into a much better 20, 22, >>We've got a, we've got some really big things on the horizon. One of the things that we're working on right now is, um, we've, since we've been at this for 18 months, we're starting to get to a point where we have certain solutions that are ready to go. We're ready. We're going to be able in 2022 to make some key announcements around some parts of our platform, they're going to be available in AWS as a, as an offering. So we're excited about that. A lot of our customer servicing and some of the things that we do outside of our core processing platform are already cloud native. We run them in a cloud environment on our premise and some of those services, we're going to be able to go ahead and launch into the AWS in 2022. So we're really excited about that. We're right now in the throws of building an onboarding team, that's going to be working with both our customers and with our internal teams to make that shift and start migrating those applications out to the environment. >>So big, big things underway there. We've got a couple of, uh, really key strategic relationships that we've built over the last 12 months or so, um, that are all in, on our cloud journey. And so we're going to be able to announce some of those, uh, pretty soon as some of our customers and prospects, uh, that really want to be on the journey with us. So we're pretty excited about that. And I don't want to spoil any surprises there, so we'll wait and let that come out with the, with the schedule. But yeah, we've got a lot of great things ahead and we're very, very excited for where we're going. >>Awesome, Scott, great stuff. I love how transformational you are, the focus that you guys have on the people, as well as the technologies and the processes. Exciting. Congratulations on your, on your 18 month journey. And we'll have to have you back on so we can hear some of those, those, uh, you know, little, uh, Easter eggs that you just dropped. >>I'd love to, I'd love to be back on. This has been great. All right. >>And how did you know I have a credit card in my wallet running a whole. >>I've been feeling bad about saying that the whole time. He's not going to go well when we're done here, >>Wherever in Vegas, we hope you've enjoyed this. Like for Dave Nicholson, I'm Lisa Martin. You're watching the cube, the global leader in a live chat coverage.

(gentle music) >> Hello everyone, and welcome back to day two of AWS re:Invent 2021, theCUBE's continuous coverage. My name is Dave Vellante, I'm here with my co-host, David Nicholson. We've got two sets. We had two remote sets prior to the show. We're running all kinds of activities and we've got AWS executives, partners, ecosystem technologists, Scott Weber is here as the director and an AWS partner, ambassador from PwC. Scott, good to see you. >> Nice to meet you guys. Thanks for letting me be here. >> Well, so your expertise is around application modernization. It's a hot theme these days. If you're a company with a lot of legacy debt, you've got a big complex application portfolio. I would think, especially with the forced match to digital over the last year and a half, two years. Now is really a time when you're probably too late to really start thinking about rationalizing your portfolio. What are you seeing in this space? >> Definitely, we're seeing the customers that have reached that point. I view modernization as sort of the second wave of cloud that's coming. So you had your first wave, the early adopters that lifted and shifted into the cloud. We still have people looking at getting into the cloud, but for those that went early, now, they're saying, "How do I get more out of the cloud? How do I get closer to cloud native?" And that's what we're starting to see around this modernization move is, I want to start to utilize those higher level services from AWS and the cloud providers. I want to get a better return, I want to stop worrying about running infrastructure and hardware. >> So when you think about, I go back all the way back to Y2K, that was like a boondoggle for IT to spend a bunch of doh and do some cool stuff. And then of course the .com crashed, but today it's different. It's really about the business impact the business outcome that you can drive in transforming your digital business. So how do you as a technology agnostic consultant help a company understand what they should leave alone or sunset? What they should aggressively migrate? What's the process that you use to do that? >> In some ways we go back, we can reuse sort of those 6Rs that maybe got a customer to the cloud, or as they're on that cloud journey, right? And you really want to focus on where can you optimize ROI. And you're going to come across those things that are going to be like, look, maybe it's a vendor COTS solution. There's not a lot we can do there. You're just going to have to continue down that path. Unless we can look to move that to a SaaS service. Maybe the vendor has gone to a SaaS offering. Or we get into looking at they've done development in house, but that development is still monolithic running on virtual machines, either in the data center or in AWS, but it's a critical system to that business. It's maybe it's become fragile. How can we now modernize that? Because that's where there's going to be a great return on investment for that customer, and it's also going to allow business agility for those customers. As we can get them to microservices and Lambda and function as a service, the blast radius for changes become smaller, allows the customer to move faster than what they're doing. So it's the rationalization becomes what's driving the business forward? What's critical to the business? But what's holding them back as well? So that the customers can start to move faster. >> So it's a formula of okay, what's the business value of those applications essentially? You can kind of rank that, but then it's a formula there's a cost equation. That's pretty straightforward to figure out the s is and the 2b but then there's a speed. Like an ongoing time to value from a developer standpoint and then I guess there's risk. Have you got your core jewels? Maybe you don't want to touch those yet. Is that kind of your algorithm? >> It is and on that sort of cost and value piece, that's where we can really see some interesting things happen, where as we get customers away from licensed OSS proprietary databases, that return on investment can be huge. So we've helped customers migrate from running .net applications on top of a typical Microsoft Windows stack and SQL server stack. All the way to taking those workloads, all the way, either to Linux containers or all the way to serverless if we're going to take all the steps to rewrite, you can drive 60, 70, 80% of the cost of operating at that platform out of it, then you start this flywheel effect of reinvesting that money back into the next project to help the customer move forward. >> And it's quick follow up, but I know you want to jump in. >> Yeah, yeah. >> Why wouldn't a customer, that's a Microsoft customer just run that on Azure? Why AWS? >> I mean, that's a good question and that sort of gets into a lot of philosophical, like discussion we talk about for a long time. The fact of the matter is the majority of your Windows workloads still run on top of AWS today. I would argue AWS has some pretty superior things in their underlying architecture, they're nitro architectures and things like that. But I think it's also choice. And, the whole move of .net to Linux, Microsoft started that they put the ability to, you can run SQL server on top of Linux. Well, if I run SQL server on top of Linux, I take out 20% of my costs right there. They put the support in for .net core to be able to run on Linux or on containers, but that's to help the developers move faster, that's to help us get to microservices. So that cloud provider choice, I think is becomes a bigger discussion, but a lot of people are choosing AWS because they're not just doing Microsoft workloads . Again, we could get very deep into like, trade-offs on why one over the other, but customers are choosing AWS for a lot of these words. >> Diversity and better cloud, better infrastructure. >> Yeah, and philosophical is an interesting way to look at it when it becomes a hostage negotiation. I'm not sure there was a lot of philosophy involved when server and SQL 2008 were being end of support life. And people were told, move it to Azure and we'll take care of you. Don't move it to Azure, you're on your own. But something on the subject of ROI. ROI is typically measured over time. How do you rectify and address the sort of CIO dilemma, which is that if ROI is being delivered fantastically in four years, but the average tenure of a CIO is 2.7 years, how do you address that? What is the sweet spot for timeframes that you're seeing for people to actually implement when you consider as was mentioned today, the keynote that somewhere around 15% of IT spend is in cloud today, which leaves 85% of it on premises. So what do we do about that? >> Yeah, that's a great question. So, I think, I like to get small wins. So find a very big pain point for that customer. How can we start to get them some small wins and start that flywheel effect going of like you saved money here, now, can we reinvest and start to show some wins, but we've engaged in projects where we've completely rewritten a whole application stack that was the core service for a business in a year and a half, and we took them from a run rate of somewhere between 40 and $60,000 a month. Had they been running that in AWS, they were running it in a data center today. So that was our estimate to less than $5,000 a month to run that application on a serverless platform inside of AWS. >> So when you talk about modernizing an application environment, that's typically not thought of as low hanging fruit. So does that mean that all the low hanging fruit has been consumed? Are all the net new things that are developed in a cloud native format, have they already been done? Is this the only frontier for opportunity now? >> No, it's not the only frontier. I mean, there's a lot of customers that are still just trying to get into the cloud. >> Lots of applications out there? >> Yeah, and you look at things like mainframe as well. That's I think a coming area where customers are finally starting to say, "Enough with the mainframe, we saw it in the keynote today of a new sort of service offering around helping customers rationalize how to do, to start to do things with the mainframe." So, but sometimes you can get those easy wins. Like we find a scalability issue. And we can inject scalability and pull back costs very rapidly. 'Cause you run in that scenario, there provision for max capacity that may happen 10% of the year. Now they're vastly overpaying. So we can still get some easy wins with slight tweaks to the platform while we help them rationalize those longer built times. I think the other thing we're starting to see is a shift in CIOs that are coming more from a software background too. That aren't from the pure infrastructure background and as we see those software dBase CIO start to come in. They're starting to understand the game that can be had of making the investment in the software and those upgrades to the software. >> And their tenure is elongating 'cause, CIO career is over was the joke. Now you're losing CIO, is cause they're going onto a bigger and better. They getting more options. I mean, they're becoming rockstars again. I want to ask you just as a side about that mainframe compatible runtime that they announced 'cause it sounds like you've got some experience in converting mainframe. >> Yeah. >> 'Cause I've always been a skeptic. We've seen this movie before where people have to freeze code, they've got to freeze code for 18 months. It takes 24 months, but now it's cloud, Adam Selipsky said, we can cut migration time, which is critical here by two-thirds 'cause that's the key. If you can reduce the time of which you have to freeze the code or maybe not even freeze the code. Again, I'm a skeptic, but what are you seeing with practical experience? >> So at PwC, we're seeing a lot of customers, start down this path and the ROI is pretty amazing when once you get in and you really start to dig in of what it can be if to go down this path. And there's a lot of tools out there, there's a gentleman on our team that's a real genius with this and he's helped multiple customers go down this path. There's tools that can start to do code conversion for you. I mean, we all get a little skeptical on those things cause we never know what the machine is going to try to make the code look like, but it's the starting point. But there is more. >> Like a prewash? >> Yeah, (Dave laughs) there's more and more design patterns coming out to help us down those pathways. But it goes back to agility for the business cause a lot of these customers running mainframes today are looking at a six month release cycle if they want to make any changes to their environment. If we can get them into an agile mindset to a microservice, they can get to two weeks or less for release cycles. So it's a big win for the company overall. Yes, there's a risk, but I think you can take, you can try to de-risk it as much as you can, you don't take the core, the absolute core critical piece of that mainframe. You start to pick away around the edges and you get comfortable with what you're doing. >> And going back to the concept of ROI, specifically in the mainframe space, there have been some not so subtle nudges from the marketplace that changed the dynamics associated with staying on your mainframe. Because if I tell you that the tax to stay on your mainframe is going to triple or quadruple over the next several years, that changes the balance. So you have the old guard in the software business who will remain nameless, jacking up the prices because they feel like, you know what, "What are you going to do? What are you going to do other than write me a cheque?" And the answer is, "Well move," right?. >> Yep, it's reached a point like the companies are moving. And what I think companies start to see too is, when we talk about purpose-driven databases, Adam was talking about that in the keynote today too. And we've seen that with customers when we've done builds, what's the right database for this data? And now you can start to get things moving even faster. And you unleash new ways of thinking. And I mean, some of the vendors are doing things like that and the companies aren't happy about it. >> Well, yes, but look, you're talking about Oracle in particular. (group chattering) That's one of them, but Oracle invests in its database and it's two different theories. Adam, today's the right tool for the right job, API and primitives and Oracle takes the kind of Swiss army knife approach. But they do invest if you have hard core mission critical, recovery is everything. There's a risk factor involved there, but if you want to go fast and you're a developer, you're not going to necessarily knock on Oracle's door, you're going to go to get an AWS. But it gets to my question, having done a lot of TCO analysis, it used to be labor, was always two-thirds of the cost. Now with automation, especially in Oracle environments, software license costs are the dominant component and it's maybe less true for SQL server, certainly true for Db2. I remember the early days of the flash, we used to tell customers, install flash. You're going to be able to consolidate, reduce your Oracle licenses when they come up. So that was a preferred strategy, but what are you seeing in terms of the ability? First of all is that a correct premise that software licenses is still a big component or an increasingly large component, and how do you unshackle from that? >> Yeah, so definitely software licensing costs for the OSS and for the databases are huge. I mean, there's numbers out there that like for SQL server enterprise, if you can get somebody off the SQL server enterprise and get them to an open solution like Aurora Postgres or something like that, it's a 90% ROI, and the numbers are similar for Oracle. And I talked to a lot of customers are like, "But we don't know Postgres," but it's not really that different. It's still data modeling. And when you get to these managed services platforms like RDS and Aurora, you free up those DBS to do the higher value things. The ROI of a DBA is not managing memory and desk and babysitting the servers, it's helping the developers build better data models. And those sorts of things that are higher value. So it is a big thing and we're seeing customers saying like, "Help us reduce this licensing cost," and help us be more efficient because the open platforms now, especially in the relational database area, are on par in a lot of ways with the Oracles and the SQL servers. So then you start to say, "Well, what am I gaining by paying and being sort of held hostage to these numbers?" So we definitely see customers making this transition. >> I mean, the point about Postgres is a good one because you're going to get enterprise class recoverability but even EDB would say okay, don't start with your mission critical core, pick around the edges just what he's saying over and over time, you're going to become more cloud native and get to the point, can you get to that point where everything's cloud native, everything is a service, maybe not a 100%, but a large part of your application portfolio can get there, right? >> Yeah, you're going to find those, that goes back to doing that application tiering and evaluation and ROI. So, we have a case study that we did with Constellation Brands, where they really needed a B2B type ordering portal solution. And they looked at sort of the typical vendors in a packaged solution if you will, a cottage type solution. And we proposed doing a full custom solution, soup to nuts and building it natively in AWS. And it was built completely on top of platform services. There was no servers in that environment and we were done. We were using AWS Fargate to run their containers on top of, we were using RDS Postgres, we were using Lambda and in some places we were using DynamoDB for holding inflate orders. And so the whole environment is deployable from one cloud formation template. So it completely changed how we even went through the testing of the thing. 'Cause you ran the same cloud formation template to deploy to a different environment. And you knew you were getting the same exact thing. And so they went from, they no longer had to worry about securing underlying compute, secure the containers, run on top of Fargate, use a platform service for your databases, and it was a beautiful solution for them. >> Yeah, you got to taste of that and your eyes open up and say, "Wow, what's possible?" >> Yeah, its a game changer. >> We heard that from NASDAQ this morning. An amazing story. She said, our first Amazon bill was 20 bucks. I bet it's higher now, but first hits free kind of thing. But the point is when people talk about the AWS bill, et cetera, no question, you should try to optimize that. But at the end of the day, it's about the business value Scott, isn't it? >> Scott: Yeah, it is. >> Hey, thanks so much for coming to theCUBE. It was great perspectives, >> No, thank you guys. I appreciate having you guys on. >> Thank you very much. >> Keep it right there, Dave Nicholson and I will be right back. You're watching theCUBE's coverage of AWS re:Invent 2021. (gentle music)

>>Mhm Yeah, this is Dave valentin. I'd like to welcome you back to the cubes coverage of couch base connect online with the theme of this event is modernized now and one of the big announcements is Capella which of course as you all undoubtedly know is the brightest star in the constellation Auriga, which is latin for charioteer, yep, you can find that in the constellation of that constellation of the night sky in late february, early March in the northern hemisphere. So with that little tidbit, I'd like to welcome in scott Anderson to the cube, who is the senior vice president of product management and business operations. That couch base scott welcome. Good to see you. >>Thank you very much. Thanks for having me. >>That's our pleasure. So you've launched couch based cappella if I understand correctly, it's built on couch based server seven which he launched just a few months ago in the middle of the summer. Can you give us an overview of Capella? >>Yeah, absolutely. So couch based Capellas are fully managed databases. Service for enterprise applications. One of the goals of launching Capella and our databases is service offering that we just announced today is about increasing the accessibility of couch base so it's about making it easy for a developer or an enterprise to get up and running in just a few clicks in a couple of minutes Um and about making it more affordable and accessible through the development phase through the test phase, the production phase. So really it's about ease of use having the right offerings aligned to the phase of development that customers in and eventually into the production of their enterprise application leveraging capella and couch based Server seven. >>So let me ask you, I I went pretty deep with ravi on the, on the technical side and I want to understand what makes Capella different from some of the competitive offerings. Is it the sort of the fundamentals that I learned from Ravi about how you guys have have have really done an awesome focus on on on sequel but been able to maintain acid compliance deal with distributed architectural challenges and then bringing that over to database as a service. Is that the fundamental, what are some of the other differentiators? >>Yeah, that that is the fundamental, we have an amazing platform that Roddy and our core engineering team built and we've talked about that and I think Robbie mentioned that the ease of sequel and applying that to a documented oriented database, then combining some of those capabilities with the ease of use, the ability that you can get up and running, signing up for our free trial couple minutes later you've got a database endpoint that is fully managed by couch base. And so we're doing the monitoring, we're doing alerting, we have calls to action based off what events are occurring within the database environment, ensuring it's always available as well as doing kind of the mundane tasks of backup and recovery, uh scaling the environment, upgrades and so forth. So it's really about ease of use, making it um leveraging are incredibly robust, broad platform um and then making that in different consumable model for our customers and developers and getting started really easily. The other thing that we have done is really leverage the best practices over the last 10 or 11 years of some of the largest enterprises in the world using couch based for the mission critical applications. So we've codified those best practices and that's how we keep that service, high performance, always on highly available. And that's one of the core value propositions that were able to bring with Capella. It's really about management capability, global visibility of your clusters coupled with what we believe is the best no sequel database in the marketplace today. >>What about what about cost, total cost of ownership as you scale a lot of times when you scale out, you get dis economies of scale, it's kind of like, you know, you get that negative curve, uh what are you seeing? >>Yeah, we've done a third party benchmark studies which have proven out how we are able to literally scale the environment uh and continue on that curve as you add notes, you're getting that incremental performance that you would expect. The other thing that we do that's really unique within couch bases are multidimensional scaling and this allows you to place our services, things like data index, query, full text search indexes and analytics, you can co locate those on single nodes within a cluster or you can have dedicated notes for each one of those services. The reason that is important is you get work line isolation for those specific services within our cluster. The other thing that you can do is you can match the compute infrastructure to the needs of each one of those services. So some services like query are much more core, compute intensive and that allows you to have a specific instance type that is optimized for that, reducing your costs, indexes where you want very fast performance, you may want to have a higher amount of memory relative to the number of course. So that ability to mix and match the infrastructure with an existing cluster allows us to lower overall costs. That coupled with their blazing fast performance with our in memory architecture allows people to get incredible performance at scale. Um, what we've proven out in the study that I mentioned earlier is we have that linear scalability and you're able to do more for less at the end of the day, you're getting more operations per second per dollar if you want to use that as a metric. >>Got it. Thank you for that. What do customers need to think about when they want to get started with Capela? How difficult is it for people to jump in? >>It is incredibly simple. It's as simple as going to couch base dot com clicking on start your free trial, You're going to that free trial, you provide a minimal set of information for us and it's literally a few clicks and you're going to have a database endpoint within three minutes and that's really been a foundation of, of what we've been focused on over the last 6-9 months is removing any friction we can in the process because our goal is to give a tremendous user experience and get people up and running as quickly as possible. So we're really, really proud of that. And then from a paid offering perspective, we have a number of offerings which are really aligned to the needs of each customer, some individuals who want a larger cluster and they want to be able to pay for that. We've optimized service levels around that in terms of level support and the features that we think are appropriate for a dev cycle, a test cycle and then into production and lastly we will be announcing a number of promotional starter pack bundles, really trying to couple the overall service that we have with Capella with some of our expertise, so helping new users get up and running in terms of things like index definitions, what's the best way to do document design and schema within within couch base. Our end goal is to match these services and bundles with the life cycle of application development. So in my development phase what's the offering for me as I move for production readiness, what services capabilities I need and then production and the ongoing if I expand my use. So we've been really focused on, how do we get people up up and running as quickly as possible and how do we get them to production as quickly as possible at the lowest total cost? >>That's nice. That's a nice accelerant for customers. Um, so as you heard upfront, I did a little research about the name Capella. How did you choose it and why? >>Well, one thing I learned early in my career is naming is not a strong suit of mine. I leave that to John or our chief marketing officer in the overall team. Um, we all have opinions, but I trust John and we went through, I think it was over 60 names, seven rounds of debate to come up with capella, but we want to name of strength. We like the alliteration couch, basic capella together. Um, one of the little facts may have tipped it over is I believe in latin, it means little goats. So we kind of played from the barriers. Always think to jerry rice goat, greatest of all time. So that was a nice play on that also. Um, but I leave it to them and really happy with the overall name, love the liberation, Love some of the hidden meanings within that. Um, and we're really, really excited about getting going. So you wouldn't want me to pick the name. Um, I get a vote. Um, but I would say my overall influence is a little bit lower than where john's is and matt cain, who I know you spoke with previously. >>I love it, jerry rice definitely is a little go because I'm from New England. So of course tom we think tom brady is the big goat. I >>know we've, I grew up in that joe Montana era, so maybe you can take that off line after this interview. We can have our own debate, but I guess super bowl trophies or the ultimate measure at the end of the day. >>Now I've got a little stat for you. So, so Capella is also one of the 88 modern constellations as adopted by the International Astronomical Union. I. E. Not one of the ancient constellations. Pretty clever. Right. >>Exactly. >>Scott is great to have you on the cube. Thanks so much. Really, >>thank you so much. >>All right. And thank you for watching. Thank you for watching. Our pleasure. Thank you much of the cubes coverage of couch based connect 2021. Keep it right there for more great content. Mm mhm