>> Live from Las Vegas. It's the cute covering knowledge sixteen brought to you by service. Now carry your host, Dave Alon and Jeff Rick. >> Welcome back to knowledge. Sixteen. Everybody. This is the Cuba Cuba Silicon Angles flagship product. We go to the events we extract. The signal from the noise is their fourth year at knowledge. Sean Connery is here. He's the vice president and general manager of the Security Management Business Unit at service now. Sean, thanks for coming on the Cube. Sure, I hear a lot of talk about security this week. You guys air making forays into that space. It's a really important, you know, problem area. Every year I look back and new years and I look back. It's OK. We more secure than we were last year. I read our Cove yellows note, and I text them is they are. We're not more secure. What's going on? But it just seems like the bad guys just keep getting better and better. So state the problem that organizations have with security. And let's talk about how you can help. >> Sure, Well, I think you've got a new organizational challenge with the scope of security tools that organizations are using, so they're dealing with silence of information, even within security. So we had all hoped, you know, years ago in security industry that by now we'd have a single pane of glass where we could see every alert, every piece of information. And it would magically be contextualized with all sorts of advanced machine learning. And that just hasn't proved to be true and actual deployment. So organizations have yes, they have some aggregation, but they have other silence of information. And when things go bad, the investigative process takes a long time, and then the remediation process involves it, and that interaction between security nights he has been a challenging relationship to be candid. >> Well, you you underscore that keynote. It was yesterday, and you guys had a little tongue in cheek. You know, interaction between it and the security team. What's the right result regime for handling cyber security? In your view? In other words, well, how should be structured? Whose responsibility is it? What responsibilities do they have? Well, I think the >> most traditional organisational model that I've found makes sense is the chief information security officer and his or her entire organization reports up into either the CEO are sometimes general counsel. Sometimes an audit lied so that that piece really doesn't matter as much as the CSO and the CEO having a very strong relationship because what typically happens is the security team will have operational responsibility for all the investigations. When something goes bad, there's some some sort of incident. But then, when the change needs to be made, even something like a firewall is often run by teams, not by security team. So once you make that recommendation, you're actually interacting with it. And this is where having things like agreed upon fellas in advance so that it and security know what to expect from one another really helps, >> has a has a failure equals fire mentality of created somewhat of a lack of transparency over the years and your view >> say more about that. I'm not >> sure I understand the question. If I'm responsible for security and I fail like very well could get fired. Does that lead organizations to the less transparent about the threat, or even sandbag the threat or obvious Kate the threat? >> Sure, I mean, I haven't I haven't heard many stories directly about that from from certainly anybody that I've talked to directly. It feels to me more like they're just struggling to figure out a way to make things better, right? I think. You know, organizations genuinely are passionate around solving this problem, and they, frankly just struggled to figure out the right balance of investment in people. Investment in technology. And you know it. Let's keep in mind, right? We're not that far into this journey, right? Only fifteen years ago, we all thought perhaps the firewall was good enough, and we just needed something protecting us from the big, bad Internet. And of course, the evolution over the last last decade has just been more and more threats and more and more technology, which feels like a treadmill. We need to somehow get off. >> But to continue on that thought, so is recent is four. Five years ago I heard you know, cos stand up or individuals that company stand up and say We've never been hacked red. So do you agree? There's a recognition that it's not if it's when we've been hacked and that level of communication is becoming more training transparent at the board level? Is that fair promise? >> I do think that's fair. I think you know, the evolution that I've seen has been, you know, we are, we are impenetrable, right? There was a brief moment where some people thought they could actually achieve that. Then there was the second phase, which was Yeah, well, we get attacked from time to time, but we have a great response process. But now I think we're in the third phase, which I think is the most honest phase, which is large organizations are operating under an assumption of persistent compromise, so they're assuming somewhere in their environment they have already been compromised. And so that's what really makes the response piece such an increasing focus for chief information officers and chief information security. >> Yeah, and I think you guys nailed it because your value proposition is all about the response, Is it not? It >> is. It's about taking the teams you have and making them more efficient, making them more effective. And, you know, we've been in the security industry paying, you know, candidly, lip service to the notion of making teams more effective and the importance of individuals in the process. But always in the service of selling you some magical technology that's going Teo, make this problem supposedly go away, we finally realised, I think, as a community that we have to make these teams more efficient, we have to make them more effective. And our security operations product from service now is really focused on really operationalized and modernizing the security operation Center in the same way service now did to the knock years ago. >> Because you've got kind of a natural conflict, which what you want, where the security folks are kind of keeping an eye on the folks. So there's a little bit of separation of church and state at the same time, it's the execution vehicle to put up no better security and or take care of incidents and responses. So I would imagine that's kind of a delicate balance. And, as you said, helping those teams work better together while still kind of keeping an eye on each other. Interesting conflict. Well, >> I think if you if you look at the evolution of the security industry as a whole, it's been security company is selling security technology to security buyers, and that has been the sort of you know, to use Frank's term, the rinse and repeat model of security for some time, and that certainly has its place. We're going continue to evolve our detection and enforcement technology. But, you know, it's really a realization that the's security ninety teams need to be able to work together. And so having a common platform where the security team can have their own protected data storage their own protected processes but have a direct integration to it without having to have either side feel like they're dealing with the other organization as a almost like a black box where they don't have visibility into how the process is run once it's out of their hands. >> So I'm gonna test another premises we've got a security expert on. So I'd love to test my my, my my assumptions, uh, you buy the following that the difficulty in valuing data and I pop and assets makes it hard for companies to appropriately secure those those assets. >> Yeah, sure. So I think organizations have have people to protect. They have data to protect. They have assets and information to protect, and then they also have another component of this which is interesting is the compliance requirements, right? So oftentimes they'll actually be tension between the Risk and Compliance Organization and the security organization as they decide for example, which vulnerabilities they want to address, You know, some some compliance requirements might have a limit. Say, you know, you have only a thirty day grace period before a vulnerability needs to be fixed. So even if it's a low priority vulnerability, you might have, ah, that be hiring the queue than something more critical. That actually will impact the security of the organization >> because it's just a century kind of risk. Medicate security is risk mitigation, as opposed to security as a bigger, bigger, badder moat. With that, ask your alligator and trying to think of how much he spent. How do you allocate those resources when asked methodically, You're never going to get to one hundred percent. But how people kind of making those tradeoff decisions to figure how much is the right amount? Because it's never enough, I would imagine. But you know, how do you kind of balance? What is the right amount? How do you allocate? The resource is between the less critical, but maybe the regulatory compliance versus the more critical, which is, you know, as biggest, bigger implications on the business or it's a special class of data. Sure, life. I think >> the broader organization has struggled to understand that investment level because there's traditionally been kind of, ah, almost an insurance like mindset to buying security. It's like, Well, you know, we have to prepare for this but potential attack. But now back to my earlier point that people realize they're they're constantly in a state of compromise. It's a little bit easier to make the investment. But what has been lacking is the visibility into the posture of your organization as a whole. So you you have in the past fallen back on statistics like the number of alerts your system generates, which really says more about how well or poorly your system is tuned, as opposed to how effective your security practices are. So when you look to invest now, I think with the security operations capability, you can start to see you know, what was my incident count last quarter. What is it this quarter? How many of them are false positives? You know, show me as the chief information officer, the critical business services that I have tying into the data, as we talked about earlier, and then show me the vulnerabilities attached to those most critical services I guarantee you get in front of a board and you show, you know, these are the vulnerabilities that I have against this infrastructure, and I do not have the resources to fix them. That's a very short conversation >> because you say they start writing checks, Um, brings me to my next question, which is? The CEO comes to Mrs Shawn. I got a present to the board. I gotta develop a communications plan for the board. What are the two or three most important things I should have on my checklist in that communications plan to build that communications plan? Well, I >> think the first peace, which again I think is the missing piece we just talked about is some sort of relationship between the investments you're making and the risk to the specific services that are most important to the organization. Right. So if you can provide some metrics and say OK, you know, this is my exposure on these services that the entire business depends on that feels like the start to a fantastic conversation with board. Where is coming in and saying, you know, last month we had a thousand alerts or we had, you know, fifty thousand vulnerabilities like that's that's not meaningful to a board of directors, so you have to be able to get more specific on what matters most. And then I think following off of that would be able to talk about the staff investments you're making and the effectiveness of that investment. So you can actually say All right, we have, ah, security operations team of ten or fifteen would have you. And here's how they break down in terms of what they're doing. And here's how AH, headcount put into that system affects the following results on the other end in terms of ah, shorter time to respond to shorter time to identify. >> Do you feel as though organizations are, well, first of all should? And are they treating security as a component of their business continuity plans? Should they and do they it feels like >> they are. It feels like, you know, when you talk about robustness and availability, and a lot of those terms carry over very easily between sort of the d r world, the security world, business continuity as a whole. So I think that's changed. I think I think we're on the right great course there. >> In the financial analyst meeting, you shared some data and we've talked enough. Came about some of the data we've seen a couple hundred days. When an organization gets infiltrated toe actually detect that intrusion. Is that a metric? Now, who knows? You know what the real number is, but on average, but it's a long time. Is that a metric that we can track? It sounds like we can and conservative now help compress that time. Two. Detection we can. And the >> way we do that is by taking that original problem statement I articulated at the beginning around these silence of information and connecting them not only to one another, but to it and the broader enterprise. So suddenly, what is a manual process to track down the business owners? Something very simple. Tell me, who owns this particular I P address that's being attacked right now and tell me this service that that I p address is supporting, you know, is this my you know, summer company picnic planning website, or is this my financial reporting infrastructure? Those two would result in obviously very different responses. >> So it's early days you guys just announced I think Tessa, right? We didn't know. And so how's it going? What's the Inter spend? Obviously big show for you, I said. We've been talking about security all week. We think is just one of most exciting things that we've seen from service Now on DH. There's a lot of them. Put that right at the top. What's the feedback been? What's the momentum like? I think the >> momentum is strong. We announced for customers and queue for another eleven. And Kyu Wan So getting good growth, lot of global two thousand interest. So it tends to be the larger end of commercial on larger enterprise that has the most to gain from from a solution like this and, you know, just on a more personal level. And I've been doing security for a long time long enough that I don't consider myself an expert because I realized just how much we've struggled as an organization ondas a community. But being able to see a shift towards people towards process towards being able to make a team more effective given the information they need, given the relationships with that can allow them to be more effective in their response, you know this feels this feels like a new category of security technology and one that really leverages service now is expertise in workflow, orchestration, automation, single system of engagement And these air not, ah, security problems, these air enterprise problems. So we're taking that expertise and applying it to the security buyer. >> Excellent. Sean Connery. Thanks so much for coming in the Cube. And And good luck with solving this hard problem. Thank you. Alright, Keep right there, buddy. But back with our next guest right after this. This is a cube, er live from knowledge sixteen in Vegas, right back.

live from las vegas it's the cube covering knowledge 60 brought to you by service now here your host dave vellante and Jeff Frick welcome back to knowledge 16 everybody this is the cube this is day two for the cube at knowledge our fourth year here cube goes out to the events we extract the signal from the noise we find the people that really know what they're talking about April Carter is a practitioner she's a senior IT operations manager at cars.com you want when a car go check out cars.com April thanks for coming on the cube thank you so take us inside well first of all talking about cars com I mean very competitive industry you're in right very competitive lots of merging market you're transforming thing you're disrupting and you're banging heads with everybody else is trying to do that but what's happening in the business what are the real pressures that are they're putting on i.t coming up with those new services really and really delivering quickly so we're very much anjel shops and we're doing continuous integration and continuous delivery is the big things for us right now the need for speed but so take us inside the world of IT Service Management your world you know what's it like so basically our transformation was you think of us of us accom so you think that were you know ahead of them a game but when I got two cars they were very paper and spreadsheet driven email is still even still very key to what we do you're rolling your eyes when you say that we can relate it annoys me so you know what service now has really helped us to really start that process and really rethink the services we deliver to our employees so everybody thinks of that external face to cars.com and that's what we focus on so much and we forget that internal phase so making things easier for our employees okay so um maybe start with the the journey of service now you you brought service now into the organization three years ago you had had experience in prior lives with not with service now but with other itsm vendors and they have always been very painful so when we did our bake off on what product that we were going to use you know when they came in they weren't we weren't really considering them a contender how long ago was this sorry two three years okay um but when they came in and they did their demo that you you know we were in the system and we're like this is a little too good to be true and then they say they we could be implemented in three months were like yeah right right that never happens but it all came to fruition and we were implemented with you know incident problem changed the basics you know knowledge an employee self-service portal with probably 30 or so orderable IIT items and it was a big deal for us and a huge success and how long did it take uh three months three months then you got a cake we did get a game everybody gets in here they don't miss daddy must have that in service now so they don't miss that reverse process okay so what was so the cars before was really paper-based spreadsheet based email base what was the business impact the business impact is really trying to drive our business partners in HR and in even in the development space to really try to rethink the way they interact internally so HR we implemented an onboarding automation so we went from multiple forms that we had to fill out as hiring managers to down to one so that was a big deal for us plus we were manually creating user accounts we were manually provisioning and how hardware and access we went through the entire process of about six months after we implemented service now to really try to grab ahold of that process and make it easier because we were delivering our new employees they're all of their things on time that first day because that's our goal but it was extremely painful for the service desk and those folks that Purdue that provisioning so we wanted to make it easier for them and we were able to okay so you you you brought in HR is Ellis recruiting but yeah okay HR pieces a little bit more difficult so we have let we left that piece out so we said onboarding yep you met onboarding so for my recruiting so as a hiring manager you basically submit the form to hire somebody and then all the way through to provisioning all their heirs and that inner integrates or interfaces in some way shape or form with your HR system or um it doesn't today it integrates with the recruiting system right okay which is separate from the HR system am okay and how does that integration occur so basically what what we did was we stood up a form within our catalog so as a hiring manager I can fill out all the information I need from the position that I'm filling through you know their salary requirements and all that kind of stuff plus all of their access they need once that person is hired all that's in there that in that form I can also save that form so as I need it in the future because I'm never going to remember what each person needs so i can say that form as well but then what service now does it sends that all that data over to Silk Road and actually implements all that data for the recruiters so they don't have to manually enter it because they were manually entering it before how do you find stuff ready listen giant content repository all right search it's just we have great search capabilities yeah yeah so this is that simple yeah cuz I could never find anything in my laptop uh-huh I'm very organized so it's one of those things that the the CMS that we had a portal that we have implemented now the design when we were implementing cuz it was three months we didn't really were thinking about everything it was a very broad scope when we were implementing so we didn't really think too heavily on a design of the portal and i think that the organization of the portals what probably annoys me the most at this point because people have to navigate through so much so with the news i'm very excited about the new CMS that they're pulling in helsinki which will actually help us to actual redesign that portal and get it so it's not so deep so as you say it's very hierarchical before yes and so now you're you're able to develop up with hell sinking a flatter structure exactly and it's much more easy to manage because right now it's kind of hard to manage especially if you don't have the technical skill set to do so because it's it's not easy it's more like nested folders versus labels exactly love labels so jizz so talk some more about the kinds of things that that you want to do with with the platform so there's a couple things we really want to push HR so HR is very very paper-based they love their paper actually so we implemented a take my paper ok what's your week HR status change form that you know it's a very very large process so any any time you want to change an employee status whether it's giving them a raise or changing their their location that they're based we fill out this foot paper form so we automated that and put it into service now it goes through approval processes so it's even auditable now or at least much easier to audit it and at the end of the design process was the HR folks are like well as long as I can print it out at the end I'll be fine yeah not really the point uploaded to ever know ok the other really thing that we're really excited about is actually so with the continuous delivery continuous integration that we're doing on the development side is we're opening up a lot of API is that our developers can use to automate a lot of their processes so we want to automate our release cycles right now everything's somewhat manual when we're doing release there's still people at the keyboard it's not wholly up manual but we want to get to that point where they just click on something in JIRA and it initiates the Jenkins Jenkins crates you know changes and it automates it all for them but it's still completely auditable from our perspective if you had to take a creative benefits pie and and you how to allocate a portion of the value let's say that's received by sort of IT versus outside of IT what would that pie look like I would say the biggest benefit is you know that an employee's so my goal is is to make the employees life easier I mean and that's the way I evangelize the product it's really what can I do to make your life easier what can I do to take some process it's very heavy and make it lighter for you that's the biggest biggest benefit the other thing is the ease of development on the tool so we don't want to go out and buy something every time a developer decides it wants to do something else so the ease of development so we can build small ABS we have a library app so they can check out kindle books I can check out Kendall even logins and within the tool that they're just little apps we're not going to go somewhere and buy that but we need to be able to do that so we can do that easily within the tool and it's funny in making the employees job easier is this nice second order effect where your phone doesn't ring exactly that's my goal are you don't tell him that little secret we were just doing it for you April could you talk about building these you know lightweight apps well describe the skill set of the people who are building these apps so they hard core developers or they locoed developers both I think its a mix of both so we some hard core developers that JavaScript pretty much 24 7 and then we have you know the admins who I can I code it within the tool myself but I'm definitely not a developer but it makes it easy enough for me to be able to do those little snippets of code that i need to make form easier for somebody to make it prettier to make it behave lightweight as so you're not you've never been a developer you've never written no code no never i still do it never works in pewter science major no ok but so you know you said no like okay so uh so you're smart this is ok all right ok but and so i want to dig it to level but so you are able to build apps or at least improve apps absolutely and I think there's there's multiple ways to do it obviously research the internet can tell me how to do a lot of stuff the community has been very helpful there's a also share the where you can find you know little little apps that will help you along your way as well so they make it very easy to actually kind of build out your core product did you have to go through training to get to that point or was it just sort of autodidactic or Ashley knowledge has been most of my training we didn't training at the beginning when we implemented but I haven't taken a look at training sense and you mentioned JIRA and just every tonight these stories make me think of JIRA it sounds like you know using kind of best practice in the hardcore software development part of the house and now bringing that over into the less hardcore software development side of the house but still very similar types of techniques and processes absolutely yeah that's great so bumper sticker on knowledge 16 for you what's the way they wouldn't when the trucks are pulling away from the Mandalay Bay was from April Carter standpoint what's it gonna say so the one thing there's a couple things I guess you know I did I always find vendors it at the show so I found we're implementing move soft right now it's a it's an event management tool and we're literally going through the process as we're here at the conference but it's it's an event management tool it I can't I in service now i can create manage my critical instant through being the OC critical incidents are my my bread and butter I have to make sure that those go off well and they that we reduce that time and i always find products here that I'm like oh I want to look into that we found one downstairs just yesterday that help is gonna help us and hopefully manage our mobile communications so all the cell phones and tablets and everything that we have in our orders and then dealing with the external vendors like Verizon and AT&T have been fun maybe not quite fun yeah I'm surprised something good here and and I learn a lot a new thing so it's it's always been very helpful how many years have you been coming um this will be my fourth your fourth all right same as ours too yeah April an awesome having you thanks so much for coming on the cube you know cube newbie did a great job awesome yeah you're a cube alone I here alone all right thank you thank you okay keep right here everybody will be back with our next guest is the cube we're live from knowledge 16 in Las Vegas bright back every once in a while a true break

>> Live from Las Vegas. It's the cute covering knowledge sixteen Brought to you by service. Now here your host, Dave, Alon and Jeffrey. >> Welcome back to knowledge. Sixteen. Everybody, This is the Cube, Cuba Silicon Angles Flagship program. We go out to the events and we extract the signal from the noise We're here. This is Day two for us. Will be going wall to wall for three days. That knowledge sixteen hashtag No. Sixteen. Chris Beatty is Here's the CEO. Relatively new CEO. It's service now. Chris, Thanks for coming on the Cube. It's going to be here. So you are hosting the CEO Decisions event Yesterday >> I was an event. We had a lot of CEOs, a lot of energy in the room, you know, one of the main main themes. Wass. You know, technology change happens all the time, but really one of the leadership challenge is right and what courage is required of leaders to really break through the status quo and get to that next level. We talked a lot about the importance of getting the right culture right within it, and that's a and what it really means to have a service mindset right throughout the enterprise. And as our vocabulary becomes the same inside it and across all the departments, right, as a leader, how do you enact that change so really a lot about the human element, as opposed to, you know, the technology part of it? >> Yes. So a lot of discussions over the past several service now knowledge comes in one year, Frank said. He sort of threw down the gauntlet and CEOs. They have to be business leaders. No longer Is that just a technology roll? Others have come on. The Cuban said. Well, you know, CEOs role. They gotta choose. They're gonna choose a technical path or a business path or data path. Even Chief Date officer. What do you thoughts on the >> I mean, >> there's a >> lot of press about the role. The CEO, right? And if you go back years and anything from Seo's dead, it is a relevant right. It's going the way of the dodo bird. Teo CEOs Morse strategic than ever, disrupting and creating new business models. I think the answer is somewhere in between, and it's probably changes, you know, depending on the day of the week. Right. So CEOs have a base job which is running, you know, the technology infrastructure of any company running the applications. But I do agree with Frank in terms of CEOs up, leveling their responsibilities and taking on the responsibility for more. I could tell you what I take responsibility for, right And yes, it's I t. But the overall velocity of our business. How fast can we run with everything Hiring employees, closing our books. Every single process in the company is powered by an IT platform, right? And so high tea is really in a unique position, and it has a bird's eye view of the organization to really help. Dr Velocity and Velocity is everything. How can you outflank your competition? The other thing I see think CEOs need to take responsibility for is maximizing the productivity of every single employee in the company. Right now, if you take that on, you start to look at things a little bit differently. It's not about projects, it's really about outcomes. And you know what measurable things are we delivering? And last and certainly not least, I think, the responsibility for customer experiences again. Customer experiences are powered by platform CEOs have the ability that influence every single one of those experiences and make it great and more and more as we look towards the future with things like automated bots and augmented reality customer. Your actions are going to become human to platform, and that's going to increase its relevance in that >> so and thinking about CIA imperatives of, you know, the bromide of eighty percent of the dollars we spend is on keeping the lights on twenty percent of innovation of That's a real number, No, but nobody seems to argue with it. Yeah, you >> hear that number a lot, but I think the good organizations actually do measure that number so they actually they will know what their number is and that service. Now we've done a lot of work, so our ratio is actually sixty percent run the business forty percent on innovation, and we're driving that down. So it's uneven. Fifty fifty split. I think that where you don't want to go is spending too little time on what I call the utility computing because that's the fabric that gets work done right. It's everything from networking and email and all those basic services you still need to have. Those aren't going anywhere collaboration services. >> I'd like to split it up into a little finer grain. I wonder if you could comment run the business grow the business transformed the business. Now maybe you're maybe you're always transforming your business, I don't know. But in >> terms of have to be >> in terms of but specific spending on initiatives to transform the business is that a reasonable, reasonable way to look at your portfolio was >> absolutely right. And I think if you're not doing things that transform your business, you're you're not acting with enough urgency. So my view on it is identify the big rocks right that we need to knock down, make sure we make room for those, even if it's at the cost of the grow or run part of the budget. Because if you're not getting those things done again, back to that getting left behind things were moving too quick. You got to keep pace. So make room for the transformation somehow, and that means squeezing every bit of automation that you can. How did the run part of the business, which is something I've used service now for in my past. I used to be a customer. I bought the platform twice over before I joined the company, and we did it a lot, and I'm doing it now, now that I'm at service now, >> that's one of Frank's requirements to become a CEO. I think. How >> do you >> measure that? That split. You said you're sixty today. Like to be a fifty, a lot of CEOs going. I have no idea how to measure that. I look at my projects are, but guess how do you do it? >> And it's tough we actually use. Not surprisingly, are Ownit Financial Management module to do that. And so technology's technology would we take all of our G L data and we map it to a taxonomy of business services in certain business services we know are not transformative, but they're a run part of the business, and we do that mapping once than every month. We can look at actuals against it. We can look at our unit costs, but the other begin put his projects right, which is again also in our platform, so able to look at those two things together and data driven segmentation of our spend too many times I see ninety organizations. They do it as one time exercise as part of annual planning. Then they don't look at it again until the next year. Annual planning. But there's a lot of runway in between and decisions we're making every day, which you should be making based upon data. But instead you're doing on perhaps nine months ago information. >> So you essentially categorize the business process, the business services as run or Growler training farm and on an ongoing basis. >> Absolutely. And you do the math and the most dynamic part of it, his projects. So every one of our projects, when we look at our portfolio, we look at our project portfolio by business areas, the sales marketing HR finance so on. But then we also do categorize our portfolio by Is this just sort of keep the lights on activity? But it's a project we still need to dio, or is it growing the business in somewhere? Is it truly helping us transform the way we operate >> on reasonable people? Khun, sit down and agree on sort of what those look like and >> short, and we also adjust accordingly. Also, do a top down allocation of what percentage do we want to go into each bucket, and that's not the same for each area because different parts of our business are different maturity cars, different pressures on them. I wouldn't want to be very transfer meitiv with RGL, right? That's not an area I want to innovate on. But with our sales and marketing organization, absolutely. We want to be in high innovation. Hi, experimentation, whatever we can do to help dry. >> So that's a top down bottom up exercise with the executive team says Okay, >> sideways inputs from everywhere. You know, one of the things I think CEOs it is a coming to fund CEOs to dio is manage spend. But more importantly, where people spending their time right, that's inarguably a fixed costs. We have a set of people where they spending their time and are they spending their time on the right things? And if you get that right, the rest could get a lot easier. >> So Secretary Gates last night speaking Teo, you know, maybe roughly one hundred CEOs and your your CEO decisions Conference gave the thumbs down on consensus management, and I sense just a little bit of discomfort in the room because CEOs is a hard job. But you serve a lot of different masters if you will, and as well you've got heads of application development you got, you know, architects, you got the business to serve, and so there's a lot of consensus building. And so he got questions on How do you do it? What was your reaction to that? Your colleagues, You know, which >> one was your science? They asked him a question. And because he said Consensus building doesn't work into an outside person looking in, it would seem like by nature. Everything in the government is consensus oriented. He had a lot of examples actually, where he did things against his own team's conviction, but he felt like that change was necessary. So it's two things I think Dr Gates has dealt with monumental organizations, right? Texas A and M is the smallest organization of those the CIA and the D. O D. Department of Defense has three million people, so the scale is unlike what most enterprise CEOs are leaders have seen. So when when he talked about not being consensus oriented, he viewed it as a requirement, and I actually agree with him. If you're trying to disrupt the status quo, you can't be consensus oriented. I don't think you'LL move fast enough, and most of time you won't get very far. So I think it's incumbent upon leaders to be the ones that break the status quo and say, We've got to change. And But what? What Dr Gates did describe is that if people are informed about why, from their leader enough, even if they disagree, they can get on board. And he brought up numerous examples of where he had conversations with Congress and people within the d. O d about change. He wanted to drive, and even though they were very opposed to it, they got on board because they intellectually could understand why. And over time, he won over hearts and minds >> about your priorities. So you come in relatively new tow service now. So first of all first impressions, any any surprises, pleasant or unpleasant? And what your priorities. >> So coming in no surprises. I had had a lot of admiration for the company as a customer, and now that I'm here, I love the culture. The culture is very execution oriented, get stepped on, very customer focused. You know, when we when we talk about our go to market, we really talk a lot about what's going to be most important for our customers. What pressures are customers under what problems can be solved for him? It's really not a discussion around squeezing. You know, the maximum margin out of each customer, which I think is fantastic way drive pretty hard. But but we're also very team oriented culture, so that's been great. My priorities at service. Now, when I think about my six strategic themes that I'm focused on growth eyes hugely important that service now. Right now, it's a lot of time I spend, fails and marketing effectiveness and innovation. And what can we do to drive, help, drive growth from a night perspective? Working with our partner organization, helping our partners? I do business with us easier things like partner portals and things like that. Ah, velocity. I mentioned earlier driving velocity through every department at the Enterprise at service now and really maniacally going after business process automation. And the great thing is, we have a platform that makes it easy, right and Ivax full access to that platform. So self service catalogs and knowledge base, but really going department by department saying, How do we do that? Analytics. Obviously we want to continue to measure and improve our business. But we're starting to do a lot more with Predictive Analytics, right? And how can we use data to really predict next best actions in a variety of arenas? Uh, security is the gift that keeps on giving for every CEO never ending. It's >> just one of those things that'll Teo you got, you >> got, you got to accept it and then really focus on team, right? I think talent and team and culture hugely important. You could have the best plans, you know, on paper. But if you don't have the right talent and culture within your team to get it done, I don't think you're getting very far operational. Rigor is a big one for me and a Metrix based approach to managing our business and driving outcomes. So when I look at projects that I execute for the organization on time and on budget, that's fine. That's table stakes. Really. What I'm after is on benefit, right? Are we delivering the benefits that we said we were going to get? And last, but certainly not least a part of my job is now on now. What? What we mean by now? On now is me being our best in first customer. And that's a very strategic level, working with product management to help them, you know, with roadmap features and things like that that I think all of our CEO's would need also upgrading early. So hopefully we can iron out the bugs before all of our customers and then consuming our own your products and implement it internally, learning the lessons within our four walls that we can inform our fields they could help our customers. >> How about on benefit? What percentage of projects are on benefit? That's another one of these things. Seventy percent of the projects fail. It was a number one on the market research, even >> that even that's a problem that fail is identified as not being on time or on. But right now, I view that is interesting but not compelling. Are you delivering the outcome? And so we're early. I've only been at service now six months, but I know in the past, through rigor and even making it a metric that's important have gotten to an eighty five percent hit rate on benefit. Certainly you could do better, but some of the benefits we have realised, with our platform eighty three percent increase in productivity. Leveraging R R R R application, but examples outside of Ice D, where we've eliminated forty five hundred hours of work from our financial close by putting email and manual checklist on your platform. Eighty five percent reduction in time that we spent hours spent on on boarding new employees. I mean, the list goes on and on, but it's a requirement in my organisation. When you're doing a project, you gotta have an outcome and set an aspirational outcome. Because if you talk about ten percent improvement and anything, that's sort of easy to get it. If you tell yourself I need to get a seventy percent improvement, it forces you to really rethink things and think differently. And I think that's our job. Is leaders to set those set the bar really high and then sharp teams have the resources to go after it. >> So even if you're late and over budget, if you get that, I didn't say that I later over, but I was asked, so that's got three. So that's a that's a prerequisite to be on time and on budget, >> and we're not perfect, but our target is to be ninety five percent on time, ninety five percent on budget, knowing you're gonna have five percent, you know, wiggle room and ninety five percent on benefit. >> What is on. So when you talk to the board, switch topics about security, what should be on the CEO's checklist for communicating to the board about security? So So >> I think it's really about risk, right? And what risks do we think we have? What's the likelihood of those risks? And what's the plan to mitigate those risk? I don't think security should be talked about in a This is Donner. That's done because you're never really done right. It's risk management, and the bad guys continue to innovate faster than the good guys. So what's your current security posture? What's the state of your risks and how are you mitigating them and in what time frame you know the stuff about? You know, we have a deal. P. We have ideas. We have I ps. I mean, the list of acronyms is interesting at a more tactical level, but at a board level, I think it's really risk management. >> So I promise I wanted before Ortiz talk about mitigating risk. But is there a place for a narrative that says you'd only mitigate so much? You're going to get penetrated. It's how you respond absolutely is critical. And I can I, as the CEO can lead that response or whomever is the >> appropriate person? I think you you have to do everything you possibly can Teo secure your perimeter. But it's known that you are going to get breach. Just a fact. So then it really becomes How quickly can you identify the fact that you have anomalous activity happening on your network of data? How quickly can you mitigate it? And in the past, when I was at various sign JD issue, a lot of that was manual right You have. You know, you have a piece of bad malware on the Enterprise. You may even know what assets. Um, it's on where you think you know. Usually I think you know, and then you really find out later where it's gone. But tying those assets to risk meaning what? Business services, it is it my CFO's laptop? Or is it? You know, the the you know, the person in AP. So you treated a little bit differently. And is it the infrastructure that supports our badge reader? Or is it our ear piece system? Right, So that's the missing piece. And I do thank our security organization and our our business unit, Shawn, because they've actually built a solution. Help solve that where you can go from security incident. Piece of Alberto Asset to Business service to employ within minutes, which that used to be half a day, at least half a day is a long time in a security incident. >> Yeah, so there's that magic number of whatever it is two hundred five days to detect a penetration? Yes, very. Do you feel like your organization can compress that? Is that a viable metric to be focused on? >> It's certainly a viable metric to focus on in terms of knowledge, off again anomalous activity. I don't think we're near two hundred five days, but absolutely we are focused on it because we need to secure not only our data but the data that our customers in trust without trust, >> meaning you feel as though you could detect much in a much shorter time frame, and they have some interesting. You haven't depending >> on the wrist right? Without getting into a lot of the details. >> Yeah, So we'll see you. But implicit in that is that you have a sense of the value of your data, your assets your I p what you're saying you've got a pretty good visibility on. >> Is that right? Yeah, we d'Oh. We spent a lot of time making sure our security posture is solid again customers and trust us with their data. We take that responsibility very seriously. >> Not speaking for service now, but just general knowledge of your colleagues Do you feel as though the lack of ability to value data assets negatively affect people's ability? T appropriately spend resources >> on security? It's tough because one of the first things you need to do in security say, what do I need to secure first? And then you say, OK, well, that's my core. I pee. Where's my core I pee stored? I would argue that a lot of companies don't even know because it's scattered on different file shares and different servers, and then you don't know whether people are putting it on box or drop box or one of the many storied sites out there so keep key. First step, I think for a lot of organizations is really just getting a handle on where their I P is. >> Right? All right, Count Chris, Thank you very much. Appreciate you coming on last. Give the last word. Uh, knowledge sixteen for you. What's the kind of bumper sticker? Is the truck's pulling away from its been awesome. I mean, >> just talking with customers and fellow CEOs. You know, we're all in this journey together towards this service enabled enterprise, but it is about leadership and just courage to bust through this current status quo that were in within the enterprise to get to that next level of efficiency. >> Thanks a lot of fun. Well, congratulations on the new role on DH hosting at a hostel conference just caught the tail end of it. But it looked like great energy >> because a lot of >> had some really good discussions with some of your colleagues. So really great coming on. Thank you. Alright. Keep right there, buddy. That's the Cuba bit back from knowledge. Sixteen, Las Vegas. Right after this >> every once in a while.

live from Las Vegas it's the cute covering knowledge 16 brought to you by service now hear your host dave vellante and Jeff Frick we're back this is the cube silicon angles flagship production we go out to the events we extract the signal from the noise the signal here at servicenow knowledge 16 is the extension of service management across the enterprise Brian Andrews is here is a vice president of IT it's stone brewing cube alum bride great to see you again thank you it's great to be here nice to see you guys another knowledge you know I thought happened a good energy this year yeah you know I spent third knowledge how's this week been for you oh it's a blast yeah incredible energy and growth and excitement from the company the partners it's been fun so third nology that service now for two years yeah right and so what the first knowledge was sort of come and kicking yeah exactly talking all the customers is this stuff Rio exactly last year we got to speak and this year were in the customer showcase which is new one of four and telling our story about what we did and meeting other customers and partners it's fun so give us the update what's the story um you guys are growing yeah yeah so stone brewing we're the 10th largest craft beer company in the country and growing double-digit growth so yeah we're now opening a second brewery in Richmond Virginia and a third in Berlin Germany doing two at the same time which is pretty nuts for us it's a du Bois so it's a large focus for the company we're actually the first American craft brew company to open a brewery anywhere in Europe and to operate it we're on right to Berlin and in Germany hell with us I know right right into the fire I doubt well I talk about that business decision to go into Germany I mean beer central I know I know well crap beer starting to really take off in Europe and we were looking at sites all through Europe and really fell in love with this property in brillion it's a old gas works facility brick a neat place for garden inside it's just really a neat place but the crappier movements has a lot of energy there and we feel like that can be our European hub to brew and distribute throughout Europe so it's a great spot a great place to come visit and spend the day and enjoy the gardens and that's gonna be a lot of time we have a really a large bistro going in as well so it could be a place you want to stay and hang all day yeah girls that's right that's right and house I'm just curious we don't find you know kind of the German purity laws are there special you know Germany's a very special place to do business for a whole lot of reasons HR reasons and data privacy reasons and this that and the other from the brewery perspective you know we hear about their purity laws do you have to you have to follow those is your new animal as an American craft beer manufacturer how does that work well so most of our beer that we do the core beers they do fit right into that our stone IPA arrogant bastards they fit in but we do a lot that do not fit in because we add in espresso or tangerine or good stuff like that so we're purposely going to be knocking down that bureaucracy and being rebellious we had a event last week where we served only beers that did not comply with the law true to our culture were rebels and it's exciting for us so i have to say i mean german beer is special I'd consume a lot of German of year in my day and somehow the next day you just feel great yeah absolutely is that the experience with stone yeah yeah it's gonna be you know I think a new to get the strong you know bitter forward hot forward IPAs that we serve will be different that's awesome now you guys you find you saying brought in service now from the business side yeah first we did an NIT but you but you led that acquisition so two years ago we were looking at putting in a set of systems for the business each group had their own needs and they had selected systems they want to bring in the brew ops maintenance was number one that we needed to serve as a use case so the demand was really growing for our beer as it's been we need to keep up with the demand and so we can't have the brewing and down we were turning to a 24-7 operation and the brewery anytime a piece of equipment was down we're not getting beer to our fans I'm not serving our customers so we we needed something for planned maintenance to keep that equipment rolling facilities wanted something as well for maintaining the facilities and HVAC units and all that safety I wanted something for reporting incidents they were all all those groups were outlook and excel and so they needed a system they didn't have one we had some project management needs in our marketing group and of course I T wanted a great system too so we looked at those and said we can collapse all these down into one system with service now because in the end they had a common set of requirements they wanted workflow and reporting and visibility work order management so we did some proof of concepts and they bought in and we deployed service now to the business first because they had nothing at least I t had something it was antiquated we had something so we serve we serve them first and so you're one was all about putting those platforms in place to crawl walk and then you're too we're optimizing and now we report some with some terrific results that have come out now by using it I get a triple it and take it overseas no you go right straight to the run that's right that's right and fly haha so as you grow what role do you see service now playing I mean have you been able to sort of sense or measure the productivity impacts and we've had some great results that come out of this so our brewing department as I said they need to keep that equipment rolling any downtime was hurting us we cut the downtime in half by using planned maintenance and so we use not only the corrective work orders but planning's we have 2200 items from the brewery and packaging in our cmdb we're unplanned maintenance against those now half of the work orders that were completing our plan preventative in nature those were a very small percentage earlier it was more reactive and corrective moving to planned we're more on top of things more proactive and the equipment's up and running longer so she's meant to the CMDB so you if you've got a single cmdb or you there we do yeah single cmdb for all the brewing and packaging equipment and it's all as a nice data hierarchy so we can know that it's the escondido brewery it's brewhouse one and it's the latter ton and that has valves and pumps and sensors now those items might be used at other pieces of equipment too so we can put those assign them to different items in the CMDB but it's all in there and organized and we can you know see how we're doing on cost control and when we need to replace equipment or maintain it and on the preventative is it implementing you know suggested best practices by the manufacturer of those components or did you guys come up with your own kind of maintenance schedule based on operating experience etc yeah primarily from the maintenance from the manufacturer so we have those in is knowledge articles as well and then week but we have around procedures that we also would put in there and those those are put through in the work order so the technicians can see those and then one thing that's really nice is when we have down time in the brewery for maybe the brewing team is doing training we can see all the planned maintenance coming up and accelerate some so we may have something for next week we can move it up by a few days or something we may want to delay so we can have less downtime and group it together and do that maintenance all at once what kind of modifications have you did you have to make or did you have to make bringing in service now well we were a little on the bleeding edge in some cases a couple years ago as we were putting in the facilities maintenance and the planned maintenance so that was just starting to come out with service now so we had to build some custom tables and are we want to make sure it made sense for the the context so we had crafting assets and crafting systems those kinds of things so the business contact makes sense but those are now coming in out of the box so we're starting to pull back on the customization so it was not too bad a few things now as we excited the facilities and safety we want to make sure we could tag items if there's a leaking valve or exposed why are those kinds of things we can tag it as a facilities issue a brewing ops issue but also note it as a safety issue Safety's big it's down we're going to make sure it's a safety safe environment for our team we've cut injuries in half by having a focus on people and training the processes but also having this too well now to make all the issues visible and real-time so we're having a hundred percent increase in safety issues reported to us so we can see more they were out there before and weren't being reported or lost an email in Excel so we're seeing those now more proactive fixing and cut injuries in half we're really proud of that talk about the process behind that because we always talk about the you know the people process technology technologies one piece a fool with a tool you have blob of ulva all the little idioms but you're using service now as a platform to enter those incidents those safety incidents but somebody's got to actually do that right so then is it the person who got injured and what's the incentive for them doing that or explain the process behind that while safety is woven into our culture so we want to make sure day one everyone knows that's critical for us we want to leave as safe as healthy as you were when you started your day so what we have is that that form is available through our Service Catalog along with IT requests facilities request burry there's a safety incident you can report those come through from the team member that saw it so it could be the person that experienced it or someone who saw something and maybe they're working at the packaging line and they see something that could be an issue so those those could be sent through easily on a tablet or from their workstations and then the safety manager gets alerted to that works the q's runs the reports passes it to who's in charge it may be fixed by the facility's team or an engineer so they pass those tickets along that's a real plus for us having that on one system because originally the brewing folks wanted their system they were used to and that was different than what facilities had used before or safety in their previous companies but bringing it all together in one they can pass those tickets long and tracking a lot easier in one system then you're able to identify commonalities and an attack like they showed this morning's keynote the big red box you know that's right and so you were able to drill down into those and then try to put in new processes yeah remedi eight and of course all the categories what types of injuries are happening you can focus on the top ones you know is it slip and falls or lifting or forklift and those tie into then training and certification and getting people recertified so it starts the tide of learning management program as well but the other thing we hear over and over is that in the the implementation and execution with service and out and in department a and then it integrates over to b c and d and they start to say hey we want to do this two of every are you seeing a proliferation beyond kind of what your core initial delivery was oh absolutely yeah people are there's a conga line we like to say people waiting to get on our next is going to be project management for getting a new beer released so that's a seven month process or so to get from concept to actually getting the beer out the door and so we're going to be putting that all in service now for project management and having those tasks visible for everyone involved it's a really cross-functional effort to get a beer released and many different groups have to collaborate and making that visible in a single place single plan having dependencies in there and what we love about the project management suite is that the work being done is in the project plan but it's also the tasks that could assign the people to do the work and if they're getting production support or incidents that come through they can see that and there my work use along with their project work all in one place so we're really excited about putting in project management ago what are you using today for project management well for that new beer process that's a lot of Excel spreadsheets and email some document word docs those kinds of things but we have MS project and project server that we're using for construction projects but there's a lot of manual work that goes with that yet will you and have you when we will start with have you when you brought in service now were you able to retire some systems did you get rid of stuff well for IT we had a system it was the tracking system from BMC so that's one we wanted to replace so we're rolling it out for IT was a big win and that's now gotten pretty far wording incidents and change we'd like to get into problem and really start to mature that but we put the business first so I t's taking the backseat on resources but it's definitely we're well past where we were before so we'll be putting the assets in the database for IT as we've done for the brewing equipment and the facilities equipment and really build out IT ahead but ms project will definitely be retired as you move and most of the other ones the media department has a system they used called a sauna and they use that for project management that will also go when we have the new beer system getting launched with project management do you how do you deal with the organization or is their organizational friction people say want to hang on to the last user ah the other stretcher right right how do you deal with that ah well so most of the folks were using outlook and excel so those are pretty easy they really they needed something and didn't have it so those were easier wins but you know there's some the change management interesting because when you look in the magic quadrant you know what's the best maintenance management systems or project management systems and service now yet isn't out there right because it's the best in service management but getting people to see that it can also be a terrific system for project management or maintenance is a bit of a stretch right so you have to show them really well what is it you really need what are those requirements so let me show you so we've done some proof of concepts and that's been helpful to get people to see as well and believe because they see it as an IT system mostly when they go look it up but we've shown what we're doing and they get it it's exciting so we started last year we talked about time to value when we sort of joked time to beer right have you been able to actually quantify that do you see faster time to beer well it's like having that brewery equipment up and running has been big for us and cutting that in half of the down time we're getting the beer out the door so that has been the biggest win for us really I think with the seven-month new beer release process although cutting that time down isn't the number one driver of that it's more about getting it visible and collaboration and people working Heather I think that that's will be pleasantly surprised with how that's going to decrease so give us the road map over the next 12 12 months what do you be working on what's what's exciting you yeah so a couple of big things so we'll be doing that new beer project management we're also gonna be integrating with our ERP system so for the team that's getting those that maintenance requests in for the brewery they want to get those parts consumed from our European get the parts in we can track the total cost of the maintenance that's going on but also trigger reorders for the parts based on min values in our ERP so that'll be a nice integration will do the new beer and then we want to get IT mature through the IT Service Management and we're seeing so many great things with that performance analytics that's exciting to us because we're getting a lot of data good operational reports but we'd love to get some of that predictive business intelligence coming so those are a couple areas we're really looking at this year and I think also making take advantage of that the tools to make the user interface really nice-looking will be great so our service portal Service Catalog has a lot of great items on there but it doesn't look that great yes we're gonna make it look slick with some of the new tools and I guess helsinki's got some really good so you service now for that ui/ux yeah and yep NP you say bringing forth part parts of Helsinki yeah yeah so we're upgrading later this summer we're moving to Geneva in a couple of weeks and then we'll be really focusing later in the summer and making that service catalogue look good now stones got some beautiful imagery we have great shots of the beer and our facilities really great external when people see stone has really just terrific images and videos we want to make that look as good on the inside as it does on the outside for a fan so people come in and join the company and see how good we are on the inside too that's important to us so who does that beautification do you have a UI UX team that does that or is it just what you guys are pretty small team only 17 and IT that take care of a thousand team members so we have we're stretched pretty thin we have a terrific system administrator who also does development you and another gentleman that works on our websites so I think collaborating together and the tools that are available I think we'll be able to make it look good internally and we feel you have some great partners as well awesome yeah all right Brian listen thanks for coming back to the the cube and sharing your stories it's we love having stone brewing on any time so you'll appreciate it thank you very much guys appreciate being here logo all right I keep right there buddy right the cube would be back right after this at knowledge 16 Vegas right back every once in a while

>> Mine from Las Vegas. It's the cute covering knowledge sixteen brought to you by service. Now carry your host, Dave Alon and Jeff Rick. >> Welcome back to knowledge. Sixteen. Everybody, This is the Cube. Silicon Angles, flagship product. We go out to the events. We extract the signal from the noise Bart Murphy is. Here's the CTO of York Risk Services group. Mark. Good to see again. Good to see you. But thank you for having me. So what's been going on this week? Busy week. What you been doing this week has >> been busy. I've been doing a couple different things. One on the CIA decisions track, you know, collaborated on with those folks and getting some sessions in from service now and then on the partner side. You know, talking to customers, checking out and enjoying the the key notes on seeing what's new on the platform. Very exciting. >> Did you see Secretary Gates last night? We were, unfortunately, >> got pulled out for a call, So I >> think that's the >> one thing I did miss. You >> want to call me on that? One of things, he said, which I want to ask you about a former CEO. See XO now? Hey, said that consensus management don't bother now speaking to watch the CEO's as the CEO, yeah, it's a >> challenge. I think you know, there's there's one component that you have to devise, a strategy that you know a sound, and you have to have some resolve to help sell it. So I see that component of it. But the other is to sell that vision and get other people bought it. So, you know, I think there is a and consensus component from that, certainly from the executive team. And then you have to go sell it to your organization as well. And I think that truly doesn't come from just talking about the vision or the business case. It's from actually delivering the software and delivering the services and doing in an incremental basis that allows them to see and gain value from that, that that's what you build your credibility up on. And I think then that's what helps sell it. >> So you've gone through a few changes personally, your company. So take us through the care works acquisition. Sure, so >> careless family companies was required by your Chris Services Group S O. We're now part of a larger organization and national organization, Although care works itself had a few of the companies that had national footprint, a majority of them were primarily based in Ohio. So strategically great fit a great company. I moved into the corporate CTO roll about Oh, a year, year and a half after the acquisition, and I've been really trying to build out the entire enterprise strategy from a night perspective because they just they had procured a lot of acquired a lot of companies over a two to three year time span. And so we need to really invest a lot of time on what the future state of it is going to look like. >> So it's interesting gone from CEO to CTO. People talk coming to Cuba to talk about the role of the CIA. He'LL talk about all the time, and there'd been someone put forth the notion that the CEO eventually is going to have to choose a path, technical path or business path. You know, maybe both at different times. Do you subscribe to that, or do you see the CEO role is continuing on a CZ? We've known it. Yeah, >> we don't have a separate CIA and CTO I oversee the including operations. To me from a title perspective, I just want to have the organization view that that role is part of innovation. We have a chief innovation officer as well, but from a technology perspective, I think it's very difficult to run operations if you don't have a good grass for the technology in the platform. So regardless of the roller or title that they gave me, I think it's more about what are you managing on? And I don't want to ever be broken up between sort of SETI role that may be more focused on newer technology projects and then a CIA on Lee based on building our run methods. I want to make sure that those organizations are always combined because you're going to build much better software if you also have to support it. We also want to make sure that the automation is in place so that we have our support organization in mind when we actually deploy new platforms, new applications, new systems. >> So you see yourself as a software company. >> You know we do. We're in the wrist services business, so we are, ah, services provider, two carriers to large self insured Teo Large Claims organization. So we see ourselves. A lot of what we do is differentiated by our technology. Whether that's, you know, better business process, outsourcing functions or ability to do Bill review faster, more accurately. So our CEO definitely sees us as a technology company, and that's why there's a lot of investment in time being put into sort of build out what that future state of it is going to look like. >> What what do you do with service now? These days? How did the acquisition affect that and where you had it? >> Well, so we just went live with Yorker Services Group on service now is Platform on Geneva, and that's actually a separate production instance that we have with care work. So we deployed the care works instance in early two thousand eleven, late two thousand ten in that time frame, and there were, you know, there's a ton of customization a lot, you know, very solid platform for that family of companies with the York. There's a much larger scope that we wanted to address so very lucky again to be in that situation because I had an opportunity to start a redo and any time that you worked on a platform and you do it for a few years and then you get a chance to actually build again. So we really took more of an enterprise. I till out of the box type of approach s O that it could be flexible enough to manage across the entire enterprise, including all the acquired companies that we plan to pull onto the platform. And then that gives us time to figure out what was really the best out of our other platform that we want to, you know, retrofit back in. But the main reason I did that is to make sure that we could get some benefit out of the platform now and work and migrate into the business. Shared services functions within York that I think we're going to benefit very, very much from the new platform. >> So you've got a mulligan of sorts a little bit. >> Yeah, I got lucky on that on a little bit of the mulligan. And, you know, again, it's all about trying to make sure that we can come in and we just went live. You know, we're gonna have our challenges, like with any organizational change management solution, even just on the same side. But the cadence in which we're putting out releases to actually improve and bring on other shared services functions, I think, is where we will gain the majority of buying. >> So this notion here talked about a lot of this conference. The single cmd b yeah, is that something that you're able to achieve or working toward? Are you there? And absolutely, it's the goal. >> I mean, I don't know if you ever achieve it. I think it does take a lot of time. So the goal is to have everything in one platform for all of our companies across the board and to help facilitate automation, whether it's with GRC with the new security product that's coming out, which is, you know, something we're looking to get deployed in. Q three Q. Three Q For hopefully sooner rather than later. I just see there's a bunch of play on the automation orchestration side as it relates to tying in and tying an audit. Tien and Security on then also looking at business shared services and you know that's a whole different world of figuring out how can we help them? And we have ah operations service and are actually part of our next release. So I'll be very interested to see. You know, they do a lot of things manually like everybody does. He'LL be very keen to see how they see the platform and what they're going to come up with us, a strategy long term for them. >> So are you mentioned a couple times that York's made a number of acquisitions your company included, and don't give twenty four looking statements? Obviously, they're going to keep rolling up more things. But if you could speak to using service now as a vehicle to better integrate acquisitions, yeah, because for a lot of companies, that's a strategy. >> Yes, so and I actually have a strategy around that leveraging the platform is one of the main reasons that want to get it in now so that it could eventually build that. My whole goal there is the Leverage Performance Analytics on the way that I envisioned. Using that is, in many of the companies that we acquire, they will operate still, stand alone from a night perspective for some period of time. You know, whether that's six months, three months, two years until we can fully integrate him, whether it's network, you know, systems consolidation you name it. It takes a long time. It's not something that we have solved. So part of it is to be able to do modeling using Performance Analytics by pulling in the data so I can get them now onto this cloud platform because they don't need to be on network. I can have them operating their work within that platform for a period of a baseline period of time. And I could start to model that using Performance Analytics to say, How would that impact our enterprise? That's allies. Does it help our enterprise? That's always. Does it degrade our enterprise? That's the lace. Are they staffed appropriately to actually meet our enterprise? That's the lace and what our enterprises slaves. Once we start collecting all this data based on how we're staffed and how we're going to, you know, fund that transaction. So, >> Bart, if I understood it correctly, you have the dual role CEO slash CTO. Okay, is that there's the CSO report into you are he does. I saw Also he >> does. And so and that's ah, new rule that we established about a little less than a year ago. There was ah VP of corporate security. But we didn't have a chief information security officer s. So I we're not got a very season, see so and working not only as an internal what we do internally. Also within our tech company as well. We started cybersecurity practice. So everything we do, we try to make sure that we can actually support our technology investments from an enterprise perspective and be able to self serve ourselves as an enterprise. So very excited about that. That's why we're getting to the security components and some other products that we think will integrate extremely well into service. Now >> let's talk about that a little bit. I want to put forth the premise. You tell me, feel free to tell me the premise doesn't hold water. But it seems to us that there's been a shift in thinking about security from we'LL focus on you know, defense, defense, defense to one of you know we're going to get infiltrated. It's all about how we respond and I as the sea xo Whatever. See so CEO Seo, I can help lead that response. It's mechanism, but it's a team sport. Is that a valid premise? >> I think it's valid. I think you know, I think it's a little it is driving some change v f ear. But, you know, I think that, you know, is certainly from an external perspective can protect yourself pretty well. You know, a lot of the breaches were actually curve, and some of the cases were internal or through third party partners. So I think there's been a lot of additional due diligence being put on organization, especially as a service organization. We work with a lot of large insurance carriers as an example. So we are getting hit with a lot more requests and a lot more sort of assessments on what our controls are in that space. So we need to be mature, and that's based no matter what, since again, we're providing services to clients in this space, and we're collecting a good amount of claim data and bill data and medical data. So I'm not as going out staying okay, just when it's gonna happen and how we handle breach. If that's the case, I'm trying to figure out what are the ways that we can proactively manage our environment and be able to respond in a much faster fashion to isolate an issue as quickly as possible, which is why I'm really excited about the automation and security component within service now because properly integrated with similar tools that we have. There's a lot that the system conduce that a human can't get too fast enough that will actually shut down to manage that risk extremely well. >> Do you believe that the board level? There's sort of open and transparent communication that that it's not about If Wade get infiltrated, its we have been infiltrated and we will continue to be infiltrated. That discussion occur. >> I think, yeah, the board level. They're certainly more aware, and not just from their participation in our board for the companies that they run themselves, because many of these folks come from companies that their run themselves. So I think there's certainly an awareness I think they're demanding and wanting to have more concrete plans on what your corporate security strategy is going to be. So we've produced a three year plan on what that is and presented that our committee and are starting to communicate that all the way up, you know, through our CEO. So I think there's more awareness I I think that for whatever reason, people think that it hasn't been working on this for some time, but they have S o. You know, there's a lot of good things that we've already done and already put in place that people just need to be made aware of it and get up to speed if you will. And then there's. Here's what we're doing to invest in trying to stop future things or to be more proactive or tow, have better control. Is better auto practices this type of >> what's the right regime for a cyber security? In other words, who should be responsible for should be a single tech group? We Should it be a wider group. What responsibility? >> And no, it's it's it's It's by committee. So our committee included, you know, our general counsel, our CEO, our chief human resource officer, our CEO. So it it's a joint effort. Certainly there's a large component of it because many of it is about your defenses in your ability to manage and maintain and keep your data secure. But security is a company wide initiative. You know everything from training all the way down the associate level to not, you know, click on bad email links, right that no matter what you do and what type of in a virus you have and you're still going to get some of those fishing emails and some of those ransomware emails in those type of components. So there's a whole education put component that goes all the way down to the associate level. If that's not understood by the management over those groups, then you know how is it going to actually be distilled down and supported? So it's a complete company effort when it comes to corporate security. >> And how about >> the business lines? Because our research shows that a lot of organizations don't you don't even have the specifically answer for your organization. Just in your experience is the CEO and the CEO. If it seems as though a lot of businesses don't understand the value of their data or the value of their I p, and as a result, don't really know how to protect it, is that something that is challenging for organism >> Asians? I think it is least when I've talked to other clients potentially, I think less today than it was even five years ago. We certainly know the value of our data. I mean, there's been too many breaches in the large breaches in the past three years to not be aware. I have had that question asked ofyou on, even for a business perspective, understand the exposure. So you know they what is that? Hundred fifty hundred twenty five dollars per claim? Potentially on the data side. So people even put metrics around. It's you, Khun. Quickly go through and established what you think your overall exposure is from a dollar perspective and that starts toe. You know, open eyes when you have millions of claims, are even more millions of bills. >> And that's your business. So you would think you have a better understanding everything most. But so for those who don't how should they go about achieving that knowledge? That awareness, >> They should find someone that, you know, maybe some type of trusted advisor. You know, whether they need to hire a consulting company whether they need to go and just converse with another AA group like a CEO group and ask Hey, have you guys done this before? There's a ton of collaboration at that level where people are asking, Hey, how did you guys come up with your security road map on What did that >> look like? Because Because the value then drives your investment decisions, right, because that's the other thing is kind of like insurance. When is enough enough, You could always been Mohr, but at some point you're gonna have diminishing returns relative to the value. But you've gotta have a basis to set a budget. So I would imagine the value of the data, the value of the risk, whether its >> value brand right, so outside of the hard costs of potentially, you know, getting credit rating or those type of components. You know, there's there's the brand discussion, and I think that's somewhat invaluable. So, you know, budgets are just over. Go spend what you want, but there's certainly a lot of awareness that money needs to be spent that area. It needs to be spent wisely, but there hasn't been an issue as to either one. We're coming up with wild budgets for security but explaining what we're doing and why, and how cost effectively we're doing. It has been very well >> in thinking about how you communicate to the board Yeah, about cyber security. What would be the top two or three things that you would recommend that a C XO should have on his or her checklist? >> One is, you know, understanding all your end point, so understanding everything that's in your network. And it's an easy to say, but it's a very hard thing to do, especially when you have external facing applications. And you have a lot of different networks, so understanding your scope of devices and understand. You know, that way you could understand, to start to collect and fill up that C M G B and understand. Okay, if I have a patch that wasn't applied, how many devices were impacted? You know, how quickly can I get those remediated s so that you know, I think understanding the technical scope of your organization is important because it's very difficult to understand your risks, you know, rating if you will. If you don't understand the tools you have in place and where your potential holes maybe, ah, and then understanding you know your core data. So you know what is in your data that would potentially create a potential risk, even a financial risk? Certainly we go through all the insurance process, right? And even insurance now for cyber liability insurance. You know, the forms for five years ago were much different than the forms that are being filled out today. Much different. A lot more detail, a lot more drill down. So even just going through that process alone drives you to actually go and collect all this information that I'm talking about today, you know, so understanding your internal environment in understanding you know, those endpoints understanding the scope of your data management. And then I think it's around developing a sound strategy that is not just short term but short term and long term, with investments not just in tools, but also processes training those components. >> Did you look a tte security and responding to security is part of, ah, business continuity, as opposed to sort of a bespoke initiative. It is, There's business >> continuity and d are both have components of security, but it is truly what a way to ensure that you're you stay in business, right, and and And if people don't view it that way, then there's a lot of organizations that have been either crippled, not necessary put out of business but impacted extremely large. You know, financial impact with unmanaged breaches that actually went on way too long, right? And they weren't able to detect it, you know? So I think that there's a component there where you have to really think about what's the scope of the work, what the scope of the risk and how much do we need to invest? >> And you see service now. And I'm spending so much time in security this week because I'm excited about what I saw on Monday at the financial analyst meeting and who, talking to folks about this very important topic, you see, service now is playing a role in solving this problem. >> I do because we're a big user of GRC. So we already went down the audit route with service now years ago s Oh, this is just another extension I see of not just audit controls but being more proactive on the security side. And so, since all of our information is in this platform anyhow, we have a ton of opportunity toe automate and manage a lot of the things that again could have potentially gone unnoticed for a period of time simply because a manpower or logs if you ever had a review logs from some of these devices. I mean, trying to find the needle in the haystack is very difficult. So tools are extremely important in this space. Humans cannot meet this challenge alone at all. >> You just make a tad cloud. You wish, right? Awesome. Bart, this is I'LL give you the last word so that your impressions on knowledge sixteen. >> I'm excited, You know, the way it's grown again The way that they're really being purposeful about how they're building out their platform and truly trying to solve the enterprise problems to me is just it shows a very strategic, well thought out plan by service now. And as customers, you know and partners, you know, that's that's what you want to see from a company. So for me, I'm just very pleased where the platforms going. It's exciting how much they've grown. But the way that they've been able to invest in the right things, I feel and truly integrate things into the platform, even acquisitions that they had on and truly make it part of the platform versus and add on, I think, is really differentiating them from a lot of products that have grown in a similar matter but become unwieldy to manage because they're just pieced together. So I'm very, very excited, >> Fantastic. The cube securing knowledge for our audience that Bart, you have full of a lot of knowledge and really appreciate you coming on the Cuban and sharing. >> Yeah, appreciate it. Nice seeing you guys. >> All right, Keep it right there, everybody. We'LL be back with our next guests right after this. We're live knowledge. Sixteen from the Mandalay Bay Hotel in Las Vegas, right back. >> Every once in a while.

live from las vegas it's the cube covering knowledge 60 brought to you by service now here your host dave vellante and Jeff Frick we're back Jeff Frick and I are pleased to be wrapping up day one for us for the cube at knowledge 16s a plastic piece no service house big events been a long day okay farriers texted me from SA and looks like they had a good event down there as well but but we're here at knowledge 16 great day financial analyst meeting yesterday set up the cube had a great kick off today at the the keynotes with Frank's luqman and and company laying out their vision she said robert gates on as a rock star right i saw him at the cio event so service now has a separate cio event within the event and they bring in a lot of speakers and they share you know it's behind closed doors CIOs talking to other CIOs pretty impressive was great walking over with him ten minutes he came on now remember he replaced rumsfeld all right george w bush brought him in asking him to replace rumsfeld it was like it would be like Belichick replacing Parcells right Rumsfeld effusive outgoing controversial hey and then and then and then of course belcheck you know very straight narrow and and that's kind of way Gates is right i mean he was very measured and in yet opinionated met serving eight presidents all of all of which had great sense of humor except to he said right jimmy carter and and richard nixon yeah dark days then take take what you will from that he's head so pretty interesting but so what's your take on day one at knowledge you know kind of following up on some of the stuff that dr. gates talked about it the themes are actually really simple you know and he listed the traits of leadership you know these are not things that you never heard before carrying it with the trust humor and I think the themes here at as service now are very similar Dave and that it's it's about work it's not about records it's you know for time and time again about it's about effective response not necessarily you know building the biggest mode in the security in the security aspect and you know it's the action platformer we get work done so it just seems like this kind of methodical just boom boom boom stick another knitting moving down the road moving down the field as we like to say and continuing just to execute and as they see everything as a service that now that opens up this huge opportunity to go well beyond itsm which is you know consistent with the vision and I don't keep talking about that 2013 interview with rebels our first meeting with him you know to execute on that vision of a platform and now going into shared services which we've heard a lot about you know a little bit into HR a little bit into legal and continuing to move down that path where you know this seems like a good opportunity for a head but they're just executing just keep executing well and I Tom now is the big opportunity facing them and I think it's going to provide a Mick shift to to a new set of products for service now IT operations management they've made some acquisitions they are a service management is now it's got its tentacles everywhere and I mean essentially helping orchestrate chef and puppet if you want they could do the orchestration for you so cloud management is a new area for these guys than this whole notion of inter clouding and managing multiple disparate clouds is something that service now can help attack I mean it's pick a problem that involves a service workflow and service now is going to knock it down how many things in business involve a service workflow it's like everything everything we do everything we touch has a service workflow aspect to it so every project every new initiative every acquisition it's just you know the market opportunities enormous and what service now has done a really good job of doing is taking this little notion of a like the Big Bang IT Service Management he'll help desk changed man and problem management change management etc and exploded that in all different directions into new vectors you mentioned a little bit in hrs I think it's increasingly getting traction in HR legal logistics you're now seeing service now lay out a vision of touching and helping to essentially orchestrate request service requests around the ERP systems around the CRM systems which are systems of record and relatively rigid systems of record right and service now can help orchestrate all the activities around that it's an enormous opportunity so the TAM I pegged the tam in 2014 I wrote an article that John furrier II published on Forbes I pegged the tam at 30 billion at that time and remember when I went through the analysis David floor you help me at ease you know it just feels like it could even be higher and I remember discussing that with David said yeah but 30 billion so huge already and they get this tiny little company and you're on thin ice we better be conservative here and now it's up to 60 billion i think the 60 billion is is understated Jeff well Darryl from from H&R Block in Canada you know they do this annual thing I left I called it a merger acquisition at a divestiture to build the infrastructure to execute the annual tax process for Canada 84,000 tasks everything from painting the building to signage to computers to paper to hiring people firing people i mean how does a lot of different tasks that they now manage with service now I thought that was pretty a fascinating story you were not when we had Lawrence on from from from ey not understand young anymore ey and talked about now they can provide a level of detail in the IT FM the financial management is like what's the cost of an application that no one ever knew before because they never added in the data center cost you know this is just software and maintenance and now people can start making interesting informed decisions about end-of-life enough which has come up in a number of our conversation so that people are turning off other applications and and service now is taking that workload the other thing I wanted to talk about we talked about this at the open but when you and I walked the floor at 22 the ServiceNow 2013 it was struck us that one of the challenges they had is to evolve this ecosystem and in that but by the way they they still have that challenge but they've done a really good job and you've seen one of the things we said is where the real big guys KPMG was here but you know the the Accenture of the world the youngs at the time now they are going all-in so accenture acquires cloud sherpas CSC acquires fruition so those guys like to focus on big opportunities so the only area now the other thing we talked about when we were at the Aria was the down market opportunity you know we said boy wouldn't it be nice if they had a solution for small companies take a put in a page out of the the Salesforce playbook and they've announced offerings there you're not hearing anything about them you know because and I think the reason is at least in part there's so much opportunity in the global 2000 they're really laser focused on that piece we got to do some more digging and find out what's going on there I know initially there was some concerns about sort of the the growth path and but we haven't heard a peep unless I missed it about the down market product the entry-level product guys the guys like us right you know he'd use it I don't know if I have 84,000 tasks to put the cube production together but i could not the few that i was not to have an automated in this system absolutely yeah so and then the other thing Dave which which you know we ettore on talking about the design and and the the watch and the fact that he sits in a room he had a surf shop in the Maldives before he came to work for service now for a couple years and he sits with Fred and so again just this unique culture of having kind of the mad scientist you know elder coder with the the fellow surf shop design guy and to come together and to try things and to come up with the watch and told the story the watch and I had to build credibility over years to try new things to get to the point where you could say hey let's let's talk about the what let's do a watch and is a form factor of the wash and what are the types of notifications and work behavior that we can better represent represent in this form factor and I think it's just you just cannot underestimate the strength of having you know a driven visionary leader that pulls people to him and inspires people which he so clearly does well and he's young at heart I mean a sec i would say i think he was coding in the keynotes today i got we gotta ask him but he comes on you know but they you know you look at this company and there's some folks at this company that been around for a while you know it's not a bunch of kids you know co diem there are right but a lot of the senior leadership team and the technical team the development team have been around the block right this is not their first rodeo and yet they're able to focus on simplicity you know Fred used to talk about the Amazon experience lat you know last year I think it was the uber experience I think I know we're gonna see some more stuff on on Wednesday though the watch still as we scratching my head a little bit but look low when did the Apple watch come out right i mean window if you look at apple's kind of the people at stamp you know this is now kind of a valid new technical assed year right austrian they're already kind of thinking of new ways to use this fourth basket right well so one of the guests said today you know things change so quickly now you know we it's true we used to go to these conferences and you'd be talking about the same cloud narrative two years straight hey right now it's like every six months it's something new every three months it's something new you know whether it's you know the way i OT just exploded on the scene you know hadoop which was so hot now the dupes like passe you know everybody's talking about you know spark and you know other new real-time methods and streaming and and it's just amazing to see the pace of innovation and so servers now seems to be a company that can keep up with that the other thing is i'd look at my notes on is back to your comment about the system integrators you know we had center and see you see both talking about them getting out of the plumbing business and really moving more of their efforts with their clients to the high-value stuff and you think wow that's kind of counterproductive they've made a lot of money on I'm doing heavy lifting infrastructure implementations and integration and all that big nasty stuff even they see the writing on the wall it's better to get behind this transformation the cult of the rotation to the new and to build their practice around helping their customers execute in a cloud enable the world versus necessarily continuing to stitch together infrastructure well I mean I think that's it's important I mean the hallmark of a great company is one that can can navigate through transitions we we've covered EMC for years we've seen their their Executive Joe Tucci talk about the waves I I always believed in the DMC strategy for example was was the right one but it could not navigate those waves all right it's been a lot of great companies the digital is the primes the way thanks you know and so we'll see if well I mean guys like the service companies tend to be able to make those transitions all right because they they do you know eat from the trough so to speak right right hey they wait until there's a lot of food and then they go in and and pig out and I do a really good job of it and they're doing it now so that tells you there's food so that's a huge sign a confirmation about this ecosystem so all right anyway a big another big day tomorrow start off with the keynotes at eight a.m. pacific time and and then we start up i think at nine thirty again right correct we start at nine thirty and again we've got a great selection of service now executives of course but more importantly what we look forward to really is the customers and and again as we've said a number of times one of the reasons why this is one of our favorite shows is because we get to talk to practitioners we get to talk to people that are executing that are in the trenches that are transforming their own companies in this competitive world and they happen to be using service now as part of that strategy and there's a lot of them here so we will be extracting the signal from the noise as we do with the cube thanks for watching everybody this is a wrap day one we're here at servicenow knowledge 2016 at the mandalay bay we'll see you tomorrow service management

>> Announcer: Live from Las Vegas. It's the Cube. Covering Knowledge 16. Brought to you by ServiceNow. Here's your host, Dave Vellante. >> Welcome back to Knowledge 16 everybody. This is Dave Vellante. It's our pleasure to have Dr. Robert Gates here, American statesman, scholar, author, and the 22nd U.S. Secretary of Defense, Dr. Gates thanks very much for coming on the Cube. >> My pleasure. >> So we just came over. We had a nice walk over from the CIO event here at Knowledge, you were speaking on leadership. Your book, A Passion for Leadership, which I can not get on Amazon so I have to carry it around with me. It's nice, it comes in handy when we're on the Cube. First question. Are leaders born or are they made? >> I think that they are not necessarily born, but there are certain aspects of leaders, of leadership that I think cannot be taught. If your empathy with other people, character and honor. Courage. Sincerity. A liking for people. A vision. I think these are things that are very personal, you're not necessarily born with them, they develop during the course of your life. But I also believe that they can't be taught in a university. >> Now we were talking on the way over, I mentioned that there's no co-author on this book, you told me you write all the books yourself, do all the research yourself. And you said one of the things you're proud of, I'll let you explain it, there's been no factual, claims of factual error and you do all your own research, is that right? >> Well it's one of the benefits of the IT revolution is access to a lot of databases and things that even a non-technical person like me can use. >> So how much time does it take you to write a book like Passion for Leadership or...? >> I would say that that book probably took about 18 months. Two years. The previous book, Duty, the memoir of my time as Secretary of Defense under Presidents Bush and Obama took longer, but it's got a lot more factual information and a lot more synthesis of information. And this really was more all out of my head in terms of my experiences over 50 years in public service. >> So you've served eight presidents, six of whom had a great sense of humor. Why is it important for leaders to have a sense of humor? >> Well I think a sense of humor reflects balance. It reflects a perspective on the world that is healthy. And people who don't have, well to be specific, as I often joke, I mean the two presidents that as far as I was concerned had no discernible sense of humor were Richard Nixon and Jimmy Carter and I leave people to draw their own conclusions in terms of the outcome for those presidents. >> Now in thinking about some of the concepts that you put forth in your work on leadership, one of the things that struck me is when you came in as the head of the CIA, that was obviously a tumultuous time, the Soviet Union was splitting apart. You're an expert in that field. You had to have intense focus, and the same thing when President W. Bush asked you to come back as Secretary of Defense. The focus was on Iraq so you had intense focus on the Soviet Union in the first example, and Iraq in the second yet you had so many other tasks that you had to do. Help us understand how you balance that need for focus which many of us in the start-up community have to have with all the other tasks that you have to do, how'd you adjudicate? >> Well I said as I write in the book, you have to, sometimes you're faced with a situation where you need to make immediate changes and take immediate steps to deal with a crisis situation that's in front of you. But sometimes, simultaneously, you have to be making decisions about the long-term future. So for example, when I became CIA director in 1991, we were literally five weeks from the collapse of the Soviet Union. So it was not only how do I provide intelligence support for the president in terms of what's going to happen when the Soviet Union collapses, what happens to 40,000 nuclear weapons, will there be famine, will there be riots, et cetera, et cetera. But also the longer term task was how do I reorient the entire American intelligence community away from this singular focus on the Soviet Union that we'd had for 45 years to deal with a world where there many more and different kinds of challenges. So I was dealing with both a short-term crisis and the longer term issue. When I became Secretary of Defense, we were, for all practical purposes, losing two wars. In Iraq and Afghanistan. So my focus entirely as Secretary of Defense was on how do we turn those wars around. The president had made what I thought was a very courageous decision to surge troops into Iraq, so how do I get them there. The decision is one thing. Getting 30,000 troops there with their equipment and getting them into the fight and providing them the support was quite another. And then we also had the war in Afghanistan, so there was a singular focus there and as I write in the book, it was only when President Obama asked me stay on that I then broadened the aperture dramatically in terms of how do we change the way the Department of Defense gets managed and how we manage big weapon systems. How do we ring overhead out of our costs and take the longer term view of repositioning the defense department. >> So when you think back to 1991, you had to make a lot of predictions, you and your colleagues. About what would happen with the Soviet Union. And while I'm sure there was a lot of data, we talk a lot on the Cube about big data and big data analytics. How has data changed the decision making process in government at that level? Or has it? >> I think when it comes to intelligence, data provides you more information about capability. But big data and technology still cannot help you when it comes to intentions. I always liked to say that in the intelligence world, all the information we want to know can be divided into two categories. Secrets and mysteries. And unfortunately the mysteries are the big things. Will the Soviets invade Czechoslovakia? Will they invade Afghanistan? Is China prepared to go to war over the South China Sea? And there is no data that can help you answer those questions. You can, the data can help you identify the capabilities they can bring to the problem. Or to the issue. But in essence, when it comes to figuring out what other leaders will do, sometimes figuring out what our own leaders will do, there is no data that can help you solve that problem. >> I want to change the subject, ask you about term limits. And specifically my question is, do you think corporations should have term limits on their executives? >> I think these kinds of broad rules are a mistake. I think that there may be certain companies where that has value, but on the other hand, you've got leaders, and I write about 'em in the book, who've been leading institutions, whether it's a university or a company for 20 years. And they are still the most restless, the most innovative, the most entrepreneurial people in the company. Even at 75 or 80 years old. So to have some kind of a general rule that says everybody has to leave, I think is a serious mistake. I first joined corporate boards when I was 50 years old. After I retired as CIA director. I thought age limits on boards then were crazy. And I was the youngest person on virtually every board I was on. But I would see somebody forced to rotate off at 70, who at 70 was making a bigger contribution than a lot of members of the board at 50 or 55. So I think these general rules are a mistake. I think it has to be very company-specific and personality-specific. >> Well in the technology industry obviously you have some big names like Dell still around and the other Gates who did quite a good job and so forth. What about at lower levels within the organization. Still senior but what's your philosophy in terms of mixing things up, putting executives in different roles? Giving them a flavor for whatever, running finance or information technology or logistics, et cetera? >> Well let me frame it a different way. I would tell rising military officers that they were not, as Secretary of Defense in my view, they were not competitive for senior command if artillery was all they'd every done. Or if flying helicopters was all they had done. Or supervising people who flew helicopters. I wanted people who had a breadth of experience, who knew different aspects of the defense establishment. So they had a broader perspective of the various challenges that we faced. So I think for someone who is going to aspire to the most senior positions, having some exposure to the other parts of the organization is valuable. By the same token, it seems to me, it doesn't make any sense to take somebody who is a CFO and who has a particular skill and then put them in charge of the production line or something, I don't know, I've never run a private company but it seems to me you have to be pretty careful about that. Of taking somebody who is in a technical specialty and then trying to get them to do something else. But once you rise to a certain level in an organization, if you want to have the big job, it seems to me you have to have a variety of experiences that give you a broader perspective. >> I feel I want to talk a little bit about cybersecurity, you mentioned in the CIO event that you were just at the threat of cyber, I feel like in our industry it's trivial compared to some of the cyber threats that you've had to deal with. But nonetheless, there seems to be the recognition within the executive community that it's not about just keeping people out anymore, it's about recognizing that you have been hacked, you will continue to be hacked, it's about the response. What should be on board of directors' check list, if you will, with regard to cybersecurity? >> Well I think cyber and the risks associated with cyber and IT need to be a regular part of every board's agenda. I think that there is value in having it an integral part of risk management. And so whether you focus specific attention, in the audit committee for example, and then have briefings for the broader board. Probably is up to each company but, there's no question in my mind that when it comes to risk, for most companies today, cyber is right up there with natural disasters and business continuity and so on and needs to be a responsibility in terms of oversight for a board. >> With regard to the board's use it on, do you feel like there's an honest and frank conversation about cyber and has that changed? >> Well I do, I do, I think it's very different, I mean I think people really take it seriously. >> Yeah sometimes I get concerned that this fail equals fire mentality has led a lot of organizations to sandbag the risks, is that a fair criticism? >> Oh, what do you mean by that? >> By essentially say, I've got it covered. The risk of us getting hacked is low, we have it under control. Verus an open and frank conversation of no, we're getting infiltrated, we have to think about the response versus we can't keep the bad guys out, we can try, but... >> Anytime anybody in an organization tells me he's got everything under control, I am automatically skeptical. >> Okay fair enough. I got to ask you, I know we're tight on time, you've been gracious with your time, but I have to ask you about the current tone of the campaigns. Your reaction to that. It's kind of comedic. There's not a lot of comedy. Comedy in the narrative. What's your take as now an independent observer? >> Well I don't think it's funny at all, I think it's very serious, I worry about the fact that there's no real discussion of specific, of the many challenges that we face expect in the broadest possible terms. Foreign policies being discussed in almost primitive terms. And not very intelligently in my view. So in terms of the challenges that the country faces, which are quite extraordinary, it seems to me, the campaigns at this point, across the board politically, seem to me to be pretty superficial. >> So I want to end with coming back to the Passion for Leadership. You know I have to say the brilliant part of this book, don't hate me for this, but you basically laid out a lot of common sense ideas but the brilliance of the book was the way in which you weaved it together and gave examples. If I may, it was listen, respect, reward people, delegate, empower, have fun. Care from your heart. Check your ego at the door. Hire smart people, honesty, integrity. These are very common sense things, but you brought them all together in a way that had meaning, I felt like some of the classics, Dale Carnegie's How to Win Friends and Influence People, I feel like there's a lot of timeless things in here. Was that your objective or did you just write from your heart? >> Well both. It seems to me that as I looked back and realized that I had let these three very large institutions, the American intelligence community, the fifth largest university in the country, and the Department of Defense, that I actually had been able to change a lot. And in environments where people said that was impossible. And so it seemed to me worth sharing here's how I got it done. It can be done, I guess one of the most important messages I wanted to convey was that institutions can be reformed. They can be transformed. And made more efficient and more cost-effective and more user-friendly. And better serve both customers and citizens. At a time when most people just throw up their hands and say this is all impossible. The theme of the book is it's not impossible, it can be done, it has been done, it can be done in the future. >> Dr. Gates, thanks so much for coming on the Cube, taking your time and really appreciate you at this event and really welcome the feedback. >> Thank you very much. Really appreciate it. >> Alright, keep it right there everybody, we'll be back with our wrap right after this. Thanks for watching. >> Service management is helping GE connect...

>> From Las Vegas. It's the cute covering knowledge sixteen Brought to you by service. Now carry your host David, Dante and Jeffrey. We're >> back. This is knowledge. Sixteen. This is the Q. We go out to the events. We extract the signal from the noise. This is day one of a three day Walter Wall coverage. The Cube has of knowledge. Sixteen Hashtag No. Sixteen like a lander is here. He's the CEO and vice chancellor of college services at Lone Star College. Longtime Cuba Lem like it's great to see again. >> Good scene again to >> another is >> great to catch up with this >> place, Another knowledge have a bigger and better than ever. You're you're speaking later on this afternoon. You've been over at the CIA event house this year going for you. You know, it's going >> great. The CIA oven, of course, is excellent lot of leadership foundations. Keynote TOC where, you know, service now is heading right now. Kind of. You know, that the shift and I always were still back to one of the themes from eons ago. Let's kill email. But the reality is emails not dead. So as we focus on it, you know, I came into this from the stance of moving the enterprise service management. So as I bring a team here, we really get the opportunity to see where we're at today in that comparison, and then how we can leverage the platform and move yourself forward >> So your role is evolving at Lone Star College, You said off camera, you're not giving up a title. A CIA, your CEO. >> Yes, I am the CEO >> and bread. That's not Teo, but your responsibilities are expanding. Talk about that side of things well, >> so well, last year actually been a year and a half. Now human resource is put underneath me. That's why the title change and all that to fit better and then analytics because, you know, analytics is not it much. People want us to think it should be buried inside of it. It never should, because it's about the business process. About the business service human resource is was just around the concept of aligning that service management what we had completed in it around service excellence. One of my right hand's basically put it as customer delight. Our focus is on customer no light. So it is about that communications piece. How do you talk to your customer? How do you move forward? How do you understand what their challenges are and help them find a solution. It may not be its instead of saying no, I can't do that for you. Sorry. You're out of luck. So in that, in that evolution, we've really moved ourselves forward on the enterprise service management platform side and early days, financial aid. We brought in student call centers. Now you've got human. Resource is were talking earlier about We're moving our legal in there. It's going to accelerate the pace it takes to get a contract illegal down TTO one day, maybe two days or some way didn't catch their approvals fast enough. So that's the big transformation from an organization >> of automated. That whole process over I actually, before going, I want to ask you questions about analytics. So you have. Ah, datas are that's working for you outside of it. Is that right or you? The days are >> well, you know, I actually have a team, >> have a data >> team s o. We're talking two different sets. Analytics too, because we're actually using service now. Analytics when it comes to the Service management analytics. Right. But for the organizational analytics, we actually have a large team that that does our analytics everything from dash boarding through, You know, in our case, core institutional reporting that's required. >> And is there a chief data officer as part of that team? >> I have a personal leading that group. >> De facto even >> factor. Yes. >> So there's a lot of discussion to about whether the CDO should report to the c. E. O. In this case, it does. But you had you had said things questions as to whether or not that Data Analytics function should be in it. It's not a night function. We kind of agree on that, but yes, but what kind of reports in to the head of, Well, >> you know, But see, when I when I sit down at that table, I sit down as the vice chancellor college services. So I have to sit down with three separate hats in front of me. Andi, I can't favor one over the other. Otherwise I wouldn't be doing my job currently. So when I look at the analytic side from a perspective, I will get on my team that provides the data, my database services and, you know, why are you not getting this done or what's happening here? So I've gotta look at it from all areas >> like Bill Belichick, GM coach way Tom Brady. You got to figure out who >> you are. At that point, I'm >> well. So is this how the role of the CEO is evolving? I mean, we've heard of this event previously. Frank's Lupin one year a couple years ago, said CEO should be a business person. Absolutely certainly seen examples of that. Now you're sort of given responsibility for you. No other services beyond just services. How was that role evolving? >> Well, rolls about for years. The question is, Is the CIA evolving? So? And that's where the challenges in the organization. So a lot of CEOs they're going through this process now where they're understanding that, Yes, I need to understand what are the business goals and objectives howto achieve those goals howto I had value to the organization. How did not become a cost center that has a target on my back? How you become an enabler enabler for the business And that's really where we came into that part of the process because we're recognized that Alcide nightie was here trying to help find solutions and provide better customer service. I myself come from a background in higher it for a long time through different institutions. And so when somebody talk to me about student services or student success, these air topics, I understand. I came to Lone Star originally because I didn't feel I had the strength in the academic side. And so when I first arrived there, I was really focused on academic understanding how the academic side operates and what they need in it. So I've had the opportunity to get well rounded in education, but it doesn't. It really is just about anybody that comes into this role. You must understand the business you're in, and then the next part is you need to be able to talk. I have an intelligent conversation around a topic area, bring value to the organization and come back with ideas. Well, you know, if we did this so the legal one was rather interesting because we had a new general counsel. Come on, and we're trying to help him, and he's like, Well, there has to be something better. You ask me. It's a better way to approach this. And we were able to dig through. Is that you know, What service? Now we've been doing this in HR. We're doing this here. So finally, we've got them into service now. And they see an opportunity the same way we see it. Which is we're improving. We're getting rid of the little stuff, the mundane work, You know that the task orientated work and we're focusing on the things that are really a challenge. And it has been there for a while because self service and all the other opportunities we've given the customer. Now we can shift that back and say, Okay, I cannot focus on what does the hard thing to get completed. How Doe I really put in effort in and a lot of a lot of staff hours into this one piece. >> So you started service management You mentioned hr Legal >> Financial Aid General Student Carlson are We're looking at scholarships right now. We tell a little bit ideas around our foundation in scholarships and what we could do for them. Grants. Grants are very big challenge because you have to really track and trend your grants. When you look at it, sm the areas that we've matured there are phenomenal, and then we're getting ready now to move and I Tom, which we didn't do because we already built a complete structure around that we were feeding that to service now. So now I'm looking at from opportunity that if I can eliminate a lot of the tools, I put in a play and get into one single tool and maximize the value of that tool. So I think you heard me many times when we talked in this. It's never about the tool. It's always about people in a process first. And then how does the tool come in? Well, this platform, we can actually adjust that because we're not We're not bound by the tool. Like the legal module. They have a great legal module. Well, it didn't fit what we needed. So it's been adjusted accordingly. T meet our needs from the platform side by keeping the core components so we haven't customized. We haven't taken it to a path where we can never upgrade. But at the same time as we looked at the process they had and how do we take that process and then actually put it into play with service now? >> And they were all inward service now do you worry about locking? >> Always. I think >> that Do you manage that risk? >> Well, the very first thing, to be honest with you is any time you enter in any cloud situation or any product situation, you want an exit strategy of some kind In case something goes wrong, something happens. You have to be at that point. So the only way to manage it really is to one. Keep a good, strong partnership. I believe that I have a strong partnership was service now. I don't believe it's a vendor relationship and I think that's critical because as we look at what we're doing each time as a partner, were were engaged with things like Where you heading? What's happening next? You know what? And then the same thing with the user group community were engaged with that group. So from a partner standpoint, we look at that first. But if the worst case scenario came, I've got to be able to get out of the solution. I've gotta have an exit strategy which we actually had designed before we went into it. Now the question becomes is we get further and further entrenched. What do we do and I'm comfortable. I'm comfortable that the company and the operations are going the right direction for me at the same time. If I'm gonna protect my organization to make sure we're safe. >> And that's a big, big part of transparency on the part of service now and your ability to communicate, you know your road map and your needs, I mean, a scale of one to ten ten being, you know, really transparent. How Where would you put service now as an organization >> who? That's a tough one, Especially when I'm sitting here. >> Uh, Frank's not around is a freaking God. He's breathing guy. Let's see. You know, >> a CZ forest transparency. I would give him good, strong seven. >> Yeah, >> I think I would. No company can be completely transparent. They've got a lot of things working in the back room or ideas that they're moving forward >> because they don't know. They don't know what they don't know. Going. Yeah, >> but there's there's ideas that they have that they're moving forward. It's gonna like today with the watch demo. I'm like, Oh, yeah, I love wearables. I you know, I live off. I could very easily now just say Oh, yeah, I just >> got an e mail. Sorry. Yeah, but, >> uh, at the same time is, you know, for them to bring that forward at this point. So they're creative and looking at these items, but they don't want to get out there too soon. >> I'm curious on the partner vendor, you know, mentioned a couple aspects of what defines that relationship of all the vendors you have. How many do you consider to be? You know, close business partners where your, you know, really sitting at the table and building a long term relationship, You gotta have an exit, but its life so much easier. If >> you're working with a partner verse a vendor right now, I would stay out of our partner strategy. We've got four. That's it. But those are four core providers for the organisation. Their leaders in the market space. That's the other key. Most my partnerships or with leaders, of course service. Now, at the time when we first engaged with them and actually I would say, from a partnership standpoint, a strong partner was service. Now, probably since about two thousand ten, we've been on the platform since two thousand eight. So we built that partnership over that first couple of years. You got past that vendor relationship and then moved on from there. But right now, just our core technology stack would be sitting in that partnership room, and I've got others than in that court Technologies. Technically, I'm not a partner there. A vendor there there were by cell. They have a great product, but they don't really want to bring us into that point. And we really haven't approached that point. >> We had a great discussion off camera about you had mentioned. You're looking at potentially expanding into this security realm with service now. And you were sharing with me like your philosophy on security. So I want to document that The premise that I'm going to put forth summarizing our conversation is, you should organizations increasingly should treat security as an ongoing part of their business continuity plans, not necessarily as a sort of separate stovepipe managed by a few security practitioners. Is that a fair summary? >> Yeah, Service continuity is what I use. I don't have >> service continuity, service continuity, that your business. Yeah, it always comes >> out to service continuity. How do you How do you continue that process and provide the same level of service in the in the event. It's very simple to me as I look at all those events as like problem management incident management, you have a response that you have to take, so it has to be inherit. It has to be natural. You just do it way we're talking about that. That response, specially for security, is what's more important is that you have everything planned out and you're ready to deal with that incident in that rock response because it's gonna happen. So how you handle that response can actually dictate your future, right? Wei had that little bit of that discussion there, too. So it does come down to that service continuity. How do you continue to move forward as and get through that threat and then afterwards make sure that you prevent that from happening again. >> Unlike many CEOs that I talked to, your discussions with the overseers at the college are not entrenched largely in the security discussion. You've earned some level of trust with regard to your capabilities. Is a business your ability to respond. Can you talk about that a little bit? How you actually achieve that, what expectations you were able to set and how you're able to execute on that? >> Well, the biggest, biggest part, especially when you look at it at that event, it's how. How is it performed overall over the history? You've gotta have some history. You've gotta have some credentials. How do you deal with these responses in these emergencies? That gives you a little bit more slack in that process, but it is about constant communications. So what the board received for me is communications. It's very straightforward. Typically, in an annual report type format, Short updates clear, concise updates. But then, when event happens, we're talking about the flood that happened in Houston, and very quickly I had an email out and my service test team was already on it. They already implemented their service continuity because while we may be shut down, we have students online taking classes. We have students that need to know what's going on, what's happening so they're calling in, and our service desk continued on through that entire process without issue. So they see that as an example on a regular basis. If we have a system down, everybody gets to see exactly. We did X, Y and Z or if we even have a like today, I should say today Monday we had a blip. We did, Nam. We have. We saw performance degradation. We immediately had a team on. We had a WebEx open with everything running. So we're preparing for a service continuity event that didn't happen. And they see those two because the business units are getting these notifications. Hey, we've gotta WebEx open. We have this issue coming up, and when they see that, they realize how fast we are to respond to what could be a potential issue that we built that trusting relations. >> So that's a good example. If I understand it correctly, the regime that you've put in place puts a heavy emphasis on the response. I mean, obviously you're trying to stop the bad guys who wouldn't go innovated on the response as well. Is that a fair assessment? >> Yes. I mean, the threats, goingto threats gonna happen. The threat happens all the time. So it is about that response. It is being quick to respond to communicate and take care of the problem. >> Do you think that's changed amongst the CEO community in the last ten years that that the shift in mindset toward that response versus so to keep him out big dig a bigger mode, Wider moat. >> Well, you can dig a big, wide moat. Doesn't matter. >> I think I've >> got these big, robust to hot data centers. Amazing firewalls. They're redundant. You tried overload him. They're going to take over. I've got next gen firewalls behind that. I've got you. Just you, layer layer. This tax of protection I have put in you still have to prepare that we're talking about it is Okay, so that's the perimeter. Well, inside my perimeter is one hundred thousand students, those hundred thousand students around my network. So how do I protect against that? So now I have inside perimeter protection. You can build all this entrenchment that you want to build. But the reality is you need we prepared Just gonna happen that you are. Somebody is going to get to that point. Or at least then the alarms up that you have to respond to >> service now is talking yesterday at the financial analyst meeting about you know, the statistic. And I've heard a range here, but it's large that that after an intrusion it takes, on average two hundred five days for the average organization toe. Realize that there's been an intrusion. I've seen numbers as high as three, three, three, fifty, etcetera. Um, first of all, does that sound consistent with what you see in there in the real world and conservative now help compress that time. >> So the interest was service. Now, of course, is tracking and trending those responses. I, tom and Service watch. There's a lot opportunities with those tools and course we have a perimeter we have a pile of tools were using. In our case, our threats are a bit different because, of course, we're not a big financial institutions. So we were not right with all those other pieces. But you're from the days to recover from a major event and my peers and what that have actually experienced a data loss event? Yeah, it easily is that it is easy. That >> and you think, feel is, though that service now could help you attack that compress that >> yes, mainly through the data collection and then the reporting and then as the events going on all of this information that's happening in the problem management side. What you're seeing from outside information coming in and technicians on the inside updating information as they go through it. You have a comprehensive log of the event from start to finish. >> Now you're speaking just right after this. I think you're just what? You're what you're talking about. >> The shift for my tea service management. Teo Enterprise Service Management. It's actually Enterprise. Wow. But I'm actually walking through the journey. But the best part about that is it's the pitfalls we learned along the way because Wei didn't know we went to Enterprise Service Management. It's kind of I think we had a discussion when we went to the cloud. I didn't know we went to cloud. Exactly. I just knew we went to this heavy virtualization, these two out data centers and I kind of realized, Wow, we really pushed into this new this new wage, this new change. >> We've got a new operating model on on, >> you know. But now yeah, it really is about how we are journey to enterprise service management and the fact that we actually started in a price servicemen before I've even heard of it. It just was around The fundamentals of Hungary. Better service provider. How can we help our customers, uh, achieve their objectives and the business units make it simpler? >> My last question is, what's exciting you these days? A CEO practitioner. What? Float your boat? True. >> What's exciting? You see, I asked if you're gonna give me any hard >> questions for you. That's exciting. >> You know, What excites me is that you're seeing the maturity level of a cloud. The platform side. It is so flexible that you can respond to a customer need quickly that you, khun dynamically spin up the capacity Your When I first started this process, trying to build this high availability was difficult. Now hie availability is really not difficult. It's just around. The process is so that the maturity of the technology and the maturity the service piece that excites me. But it also excites me when I start seeing new team, people come into the market space and they understand that already they're coming in with an idol understanding there they're coming down, understand that business mentality. So original Lighty practitioners didn't have that business background. They didn't have that communication skill you're seeing a lot more of it. The organization now. >> Well, you're a real leader in this space. You've got a lot of experience. Appreciate you sharing your knowledge. And I'm sure the service now community does as well. So good luck with your talk this afternoon. And thanks again for coming. >> Thank you. It's great being here. >> All right, Link a lender. Always a pleasure. Keep right, everybody. This is the cue. We'LL be back Live from Mandalay Bay. This is knowledge sixteen. Right back. >> Service. Now is the time.

>> Good Live from Las Vegas. It's the cute covering knowledge sixteen Brought to you by service. Now carry your host David, Dante and Jeffrey. >> Oh, >> welcome back to knowledge. Sixteen everybody, this is the cubicle wall to wall coverage. We got the events. We extract the signal from the noise. This is Day one for us will be going Three days of knowledge extraction from knowledge. Sixteen. Ray Wong is here. He's the founder and principal analyst and chairman of Consolation Research. Up and coming Smoking Hot research company. Ray, Always a pleasure to see you. Thanks for coming >> on. Excited to be here, man. It's been a world one week of events, so >> I'LL say So you were You were down. It's Sapphire, right? You were over it on Tampa Amplify And >> I'm Austin s Wait after this race, a >> normal week for you >> It's a normal week for all of us. >> So impressed You were telling us off camera that you were at one of the earlier knowledge events down in San Diego. So you've got a lot of experience with this company, >> you know, it was in a tent. It was outside they had detected. I think it's like a park. I'm not even sure what it was. I just But remember, there's one one hundred fifty people next. There's like five hundred people. Three years later, it's pretty wild. >> So they've come out of the blue and really, you know, escalated a lot of momentum. The latest billion dollar software company with a plan to get to four billion. So stepping back a second just looking at the software landscape, one has to be impressed with the progress that service now is made. What's your take on the industry and service now in particular? >> Well, I think what people don't understand this service now is a platform, right? There's a business model platform or the way that we used to look at paga or the way we used to look at a lot of those companies that were actually sit in the middle. That orchestration what's changes? Because everything's in the cloud. What we now have the ability to abstract orchestrating doing away that we've never seen before, right so you can take specific business problems. Take the heart of what's actually happened on the idle piece. Use it to not just manage the process, but also do the analytics and the monitoring. So when we get the things like Coyote coyotes really about having a set of smart services and being well. To put that in the construct is a lot of the opportunity that we see going forward >> so high. So I said three years ago in the Cube after I saw the platform capabilities and said, Wow, this is a collision course with sales force Investor's Business Daily wrote a article today. Collision course of sales for so glad they caught up with Theo. But But, I mean, it's you could kind of see it coming together. And now you Frank lays out this vision this morning. Have you got the AARP estate, the C R M estate and tea or a service management Rather kind of bridging those two. How do you see it? >> No, we definitely see this as a platform play. Now here's what's interesting is the lots of the developments, and you see this all the time has been happening in the APP to have side of the House package. APS have kind of been at a standstill for innovation compared to what's going on on the customs side. And so every so often we see that flip on platforms. This is the beginning of that flip, more than one person said. I it is going to be the end of the affair, right, because we're going to put all the intelligence into the interaction. You don't have to go to the specific app. No. And the fact is, what becomes important is the ability, the orchestration, the intelligence, the recommendation and what you want to build to get to the part where I'm making the right set of recommendations to augment the next set of processes. That's what gets really powerful and these platforms that are emerging on, What's the next set of clouds? That's going to be where we're going to see a lot of this advancement. >> So the FBI essentially becomes the product. Is that kind of? >> It's the orchestration of the AP eyes, the way the context was delivered against those AP eyes and more importantly, how we actually pulled together those journeys, like a couple things that we talk about time mass personalization of scale, lots of context, right, so rolls relationship, identity weather, location, time, all important, Then choose your own adventure journeys the ability to actually abstract different processes from different places and bring them together, and the more importantly, we call intention driven design, which is. I'm gonna give you three or four choices. Learn over time. Take that machine learning. Then apply that the next set of recommendations and then start building against that. And that power sits on the network. That power sits in these new platforms. >> So you're here speaking to the service now customers about customer experience, right? It's something we hear a lot about. Your an expert in that in that space. What did you say? What was the reaction? What was the feedback? >> Well, I think the important thing is we're seeing new business models and you hear me say this before it's we're in a post sale on demand, attention, economy. And what that means is everything after the sale is what's happening right now. That's the service. That's the experience. Peace. The on demand pieces were accessing smaller, smaller slices of a product. Maybe not even a product, a service, maybe not even a service, and incite maybe not even insight and experience. And then, more importantly, it's an attention to come. If you're not capturing my time and attention, which is mind share, or if you're not saving me time and money, I don't care. And That's what we're in. We're in. These business moms are built around. This is interesting. Came out of the Oracle Marketing cloud shows Well, same thing. Just smaller and smaller slices of attention based on the way you interact with all the other applications you have. You don't have time to give somebody the big story. You've got to get him when you can. They could be standing in line. They look at their phones, are in the middle of their kids, switching innings at the baseball game. And you got to get in that little tiny video that in between time is so important because you don't close there. You lose him, right? And it's not for something really big. It's move them along the needle down. The journal. Correct. >> What do you make of this, Dave? Dave Wright was just not talking about the new state of work. IBM has been talking about a new way to work in. He is kind of running the collaboration, you know, group. Now you you talk about millennials and how they work. What are you seeing in state of work? >> Well, a lot of the research we're looking on the future of work is by one of my colleagues, Alain Le Pastilles, and what he's been really looking as this shift in terms of conversations as a service. He's been looking at the shift in terms of intelligent collaboration. Right, and all this stuff is actually leading the point where we're actually using technology to augment ability. Teo do decisions had a lot more automation than we had him before. But then cognitive assistance pop up right and they help make a smarter. And they learned from our different our actions and all that's starting to come into the workplace, which is exciting and a little bit creepy and scary at the same time. >> So what's the What's the What's new with Constellation? You guys are growing. Bring it on. New analyst Cranking out Want to research? Your event keeps growing? Give us the update on Constellation. >> You know, I think the big thing is this digital transformation story we've been talking about for the last five to six years is huge. The next set is really not about transformation. It's about finding growth in times where there is no growth. That's where we're going to talk about the next five years at our conference. Really? Talking about what are those factors, right? We gotta jump start growth. Global GDP is growing two to three percent at best. Every company has a target of like five to ten. Someone's gonna lose, and it's gonna be very interesting. >> So you think that growth is going to come through productivity improvements or investments in technology? Actually, Dr sort of new productivity levels were taking away from >> someone else. I think we're taking me for someone else. That's what I'm really scared about, that they're smart growth that's sustainable and helps people with the jobs and the job transitions. And there's what we've been doing, which a lot of destructive Cross, which is actually limiting all of the jobs and actually making it harder to grow in the long run. >> Well, so yeah, we've talked about this on the Cuba lot machines replacing humans, which they've always replaced humans. But it seems to be now happening at the cognitive level. That's scary. I know you guys to the valley, wags. You know the seasonal nervous right now, You guys, you more sanguine? Then the VCs air >> well with these three big areas where we see a lot of investment. Deep learning happens to be one of them, right? We see a lot of medicine going off. Some of the smartest people I know are all focused and on deep learning. Very interesting thing. If you look at that university, California, Irvine there's a whole department around. This artificial intelligence that just lifted itself up became a private corporation. So there's very unfeeling things there. There's nanotech, which is also some erasers, things on the material science piece that's also playing a big role. And then, of course, there's stem cells in the biotech piece. Those three things are converging, and you know it's more than just building out the Star Trek roadmap that Apple's been doing. It's a lot bigger than that. There's some big societal shift that are happening. >> What, what's next for you? You say you're heading Teo. That's sweet, but we're So we work. We find Ray Juan. I'm >> off this sweet world, Max. There's a monetary it next week. There's a whole bunch of other events picking up in June as well as you. You're going to be at them, but I think we do our retreat every year at the end of the year. May June, we're going to be at Stanford, the faculty club. All the constellation folks get together on. Then we go back out into the field and it's a crazy summer as well. I don't know when this stops making, so yeah, you could always find him on Twitter That that's but I looked for you guys when I'm where you're at is where the events are. >> Well, hopefully our past will continue to cross. We love having you in the Cube was a great guests. Really appreciate your time. Thanks for coming on. >> You know, Thanks for having have a >> great conference. All right. They've travelled, right, everybody. We'LL be back after this short break. This's the Cube or live from knowledge. Sixteen, right? >> Service now is the

live from Las Vegas it's the cute covering knowledge 16 brought to you by service now here your host dave vellante and Jeff Frick we're back this is knowledge 16 this is the cube we go out to the events we extract the signal from the noise Matthias egg allah hafez here he's the program director at siemens AG worldwide conglomerate a US welcome to the cube thank you for inviting me star of the keynote this morning here we had that little snippet and but again you know welcome tell us what you do it siemens exactly so let me start i joined siemens in the crazy ebusiness world in two thousand but the journey i'm on currently is started in 2002 when we had the easy question of how many money is spending siemens on IT and this is an easy question but out in those days it was not to answer so we created a lot of transparency what is seaman spending in IT and we keep on driving that transparency based on the transparency we initiated different measure one was that we are focusing on service management in the infrastructure area for example in application we did a lot of consolidation and then we did several steps in the optimization based on the transparency we made we made some outsourcing deals we did a global IT organization and we managed our providers now since 12 years in service management but we thought what is the next step what is the big shot that is coming ahead of us and then we thought this is about service integration getting rid of the silos like network application data and the voice and having really an integration layer about the different topics as well as ensuring that we have end-to-end responsibility from the customer side and that was the challenge of answering that question was just so many stovepipes and so many systems and so many different systems of record and and is service now that integration layer is that exactly right so service now is our single service integration platform and it spans the word from the demand to the supply side demand of course our Siemens internal employees they were confronted in the old days with several portals my favorite example is always ordering an iPhone in Siemens was quite a difficult task you had to order in one part of the hardware in the other one the SIM card and in the third the messaging service now now we have the one-stop shop portal called my IT in Siemens and there we have a bundle where the customer has not to know which portal which provider we have our portal and the user can just concentrate what he needs and in that portal he can order and manage his IT and products as well as place incident so that's the demand side and then for the IT organization as you said we had a su of products and tools and processes and now with service management we have implemented a typical incident problem change service request config demand contract management's all the nice IT service management processes and rolled that out on a global scale so we have now one process one organization able to get the full transparency and the knowledge where is the status of IT and what is the head state is this so leading up to 2000 y2k we spend spend spend spend spend and then after y2k was a cut cut cut cut then how fast forward you've got visibility on the spend transparency what's the climate like Frank showed a chart today cost you know coming down but people are investing in IT because it's such an important part of the business are you able now to have much better line of sight on how those investments are producing for the business and has that affected your strategy totally and of course to a certain degree we have to go that path but we were able to cut the costs dramatically because we could shut down existing tool sets we could be faster in deploying new services so before we had the service now we had basically 15 tool sets that we had to an able to roll out the global service to Europe North America Latin and Asia 15 tools that now we have one that is of course dramatically faster in the deployment time in the time to customer in just enabling one tools that instead of 50 and you retired those other two sets or absolutely and people were screaming and kicking or was it absolutely they were all complaining about the tools but as soon as you tell them hey we are going shut down those tools they said hey that's the best we ever had and don't take my tool exactly but convincing them is quite easy with the ServiceNow product because it is from a usability standpoint modern integrated so you you catch that can catch them easily that they really can shut down the tools we even helped helped our providers also to shut down tools because they have basically the same environment they have not won cmdb one tool that they also have a fragmented environment and that's why we told all our providers in saying you can either work directly in our two or you have two connected to our tool but it's no longer that you have your own ecosystem so we have really generated an ecosystem from the employee that can order something in the mighty porter then it's going through our IT service management processes directly to our providers fully automated and that's where the providers also had to buy in in saying yeah we also see the benefits of consolidating our to landscape of getting better quality in our cmdb that that is the win-win situation what they don't like currently is that we have a much more transparency on how they perform now we don't have to wait until months end until we get a nice paper of green amber something we have now in our system real-time data anytime now we can really much more efficiently manage our provider can really dig into all the details that are available in our tools that and that's of course a big advantage but unfortunately provider has to get used to that that the customer is telling them how they provide it's a little bit a game changer it was that digit ID back to else la's or just new knowledge new information that you just didn't have before to help you manage that relationship now I mean of course SLA is an important topic but the SLA on a monthly basis speak one language but the experience on a daily basis tells another story so when we got the SAS on a month's end you always get an average ok level but if you then dig down into this as a in that country for this customer you saw some issues but that is now available in our ServiceNow instance and this is of course a great opportunity for us to manage the results of the providers and of course also as we have now our own tool set our own service integration architecture we can black in and out more easily the provider they don't like that as well but that is the advantage because I don't see and that is also a market trend that we get away from the 10 years 15 year outsourcing contracts this will be duration times of one year to year more cloud-based and to be really that or to support that velocity and speed that we can integrate much more easily the providers we have to have our own framework we have to have our own interfaces to the providers to really ensure we can plug in and out very easily one of the new acronyms that we are hearing at knowledge this year's asylum service integration and management it's been described as sort of son of ITIL i tilted Otto what is from your perspective matthias service i am so for me the big difference is i mean we we when we start with I to I think I too was a great achievement in defining the processes get a better maturity on incident problem and change and how this is done and also to generate the same verdict and so that you get a better understanding between the providers and the customers but what we missed in I tell is the integration so that we really if there is an incident and the we we allocate this incident to a provider and he doesn't feel responsible for it then we can transfer this incident to the next provider and hopefully he's then responsible and in charge so really the integration layer is for us very important because the market rent the competition in the different silos like end-user computing data and the application is pretty high so the value add for the customer is for me really in the integration layer getting the transparency across all your providers and of course the customers can you talk more about sort of how that is helped your your business and your providers business for example for the business I mean everybody talks about cloud services and all is fancy about cloud but to really manage cloud services is not that easy because what happened in in the in the old days the Siemens employs many they are cloud services with the credit card meaning if they wanted to have a server they look to Amazon or any other provider gave in the credit card and then this server was out of the IT well but now with the platform we have ensured that we can manage all the cloud services not only the ordering is done by our my IT porter we are getting also the reports not on a monthly basis but really on daily basis what is the usage of the cloud services and then we can either apps care downscale or even decommission those servers that are no longer needed because if they are managed by a credit card just we could to manage and that's why it was a key criteria for this platform to also managed cloud services and do you have a module for people to spin up just little dev instances of Amazon so you've actually brought shadow I tee underneath the ServiceNow platform absolutely and we have to expand that so we are at the beginning of that journey but as cloud is picking up and Siemens is also more addicted to cloud services we made sure that we have two examples of providers that are really working with that platform and that we can manage the whole life cycle of a cloud service so how would you describe sort of your strategy with respect to service now we're hearing a lot about obviously you know started in IT Service Management we're hearing a lot about other parts of the organization where are you guys in that whole journey I mean I could also start with talking about defenses staff outside of IT yeah but I think two topics are really important one is there are still a lot of IT service management processes within Siemens we have to shut down that means migration of existing tool sets is still a key activity for us because then we can fully leverage our investment we made into our ServiceNow platform in bringing in additional tools so this is one key component that we have to follow the second one is as we have a high degree of automation we really have to make sure that the system is mature for example we are exchanging data with our own application provider application for incident problem and change 13 million data sets per month that's quite a big number and if that data is not right if we have mixed up data the whole chain breaks the whole automation doesn't work so we spend also a lot of effort in hardening the system spending a lot of time in cleaning up the data that we are really sure we can also achieve the high degree of automation because it's always nice saying high degree of automation digitalization but getting there is an awful work because this is painful getting the right data cleaning the data and having the right data and as you do one then you just find your next point of failure right as you optimize the one then you move it it's a classic production line kind of band and that's why i say migration maturing the the system is one key then the third topic is of course we will bring in more providers more services more processes we we just downloaded from the ServiceNow App Store an application called Moby cod to manage our telecom expense management that we have also they are more transparency over the world and then of course we are in discussions to expand that platform also to facility management or HR but this will take some time because we still have in the HR facility area let's say Best of Breed applications and then it's hard to compete against the integration layer and saying okay but if it's integrated we have all the incidents in and all the data so that balance is not there but I heavenly believe that this will come as service now is more maturing in the HR facility area what not and then I think the the racial looks different and it's more promising also for Siemens to go beyond i TS so as you build out this integration architecture i have to ask you about security and my question is not one of a technical nature it's one of sort of a philosophical nature how is the conversation shifting right it's free decades we've spent money on the perimeter and protecting and and will keep the bad guys out now we all realize they can't keep the bad guys out it's how you respond to the bad guys and it seems as though ServiceNow could potentially is in some cases solving that problem how has the security conversation changed within your organization yeah i mean the security is high on the agenda with all the burn a little bit wilner abilities you here in the in the news and also did the day-to-day cases so security is a top agenda point and we had also some hard discussions within the siemens because the first reaction of demons was we have to have service now on premise we have to have our own nice server below the table and then we had some good discussions with herb is now we had discussions with other customers where they said no no we trust in this a solution then we did some penetration tests we did some assessment on side and that's where we said okay we will go with the SAS solution also for for semen and I'm pretty happy that we made the decision because now we don't have to focus on the operational topics we can really focus on the content bringing in new services bringing in you providers in rather discussing upgrading servers that you need to have the performance etc so that is also a next step we have on the agenda to bring in the vulnerability infosec topping also to our platform and but and is that the responsibility of sort of one group a group of gurus or is it a shared responsibility across the business or what should it be it is a shared responsibility because we are carefully watching how the ServiceNow cmdb is growing because we are collecting a lot of data we see exactly what is going on Adam and size of what are the customers ordering what in kind of incidents are they opening up we see exactly how our IT s doing and of course the provider data we have all the sea ice in our database and as we grow we grow the data that is in our system and that is of course a huge value but also security wise also a balance you have to make my last question I'll give you the last word we gotta wrap just knowledge you know your your experience here you know things you've learned anything that surprised you haha delighted you hear your you know I think the knowledge is really a great opportunity to meet at our customers to see what they have on the agenda were they working against and also it's a good opportunity to see what are the the hot topics for service now how does that match with our agenda that we have with our pipeline so we have a lot of discussions in the knowledge and that is a great value great Matthias egg will have thanks very much for coming in the cube preciate your time thank you good to have you all right keep right to everybody is the Cuba right back we're live at knowledge 16