>> Narrator: From around the globe, its theCUBE with digital coverage of Mirantis Launchpad 2020 brought to you by Mirantis . >> Welcome back, I'm Stu Miniman and this is theCUBE coverage of Mirantis Launchpad 2020, really looking at how Mirantis Docker Enterprise are coming together, changes happening in the field and to help us dig into that customer and product discussion. Happy to welcome to the program, Shaun O'Meara. He is the global Field Chief Technology Officer with Mirantis coming to us from Germany. Shaun thanks so much for joining us. >> Thanks for having me. >> All right, so let's start with the customers. I always love talking to the Field CTOs you're out there. You're talking strategy, you're getting into some of the architecture, lots of customers, probably still, trying to figure out that whole cloud native containerization, Kubernetes and modernization piece. So when you talk to your customers, what are some of their biggest challenges they're facing and those main discussion points that bring them to talk to Mirantis. >> Very good question, I think you've just laid it out yourself in many ways. It's complexity our customers are dealing with more and more change, more and more options, and it's driving complexity in their environments, and they're looking for ways to deal with that complexity and to allow more and more access and reduce barriers to getting applications and getting tools to market. And if we look at it and we look at the way the world is going today, we have multiple cloud environments. We have every single developer on the face of the planet wants to use different tools, different ways to build applications that don't want to be dictated to. Now, if you turn that around and you look at what operators have to deal with, it's just more and more complexity. Ultimately, that complexity is growing and we're looking for ways to make it easier, simpler, and subsequently increase the speed of getting applications to market for our customers. >> Yeah, You know we talk a bit about some of the macro challenges that customers have. What talk you kind of teed up a little bit, the operators and the developers. I remember a couple of years ago, I had the opportunity to interview Solomon Hykes and of course the founder from Docker. And there was that talk of well, containerization, it's this wonderful thing for developers. And he's like, hold on Stu we actually, really started looking at this or the operators we want that unit of operation to be closer to the application. So it should be simpler, it used to be okay, how many different applications do they have on a server or VMs all over the place and containers I could really have this microservice or this application is a container. So there is some operational simplicity there, but how is that dynamic inside the customer? Of course, we've seen the growth and the importance and the embracing of developers, but there's still the DevOps adoption and we'd love to be able to say one of these years that, oh, we don't have silos anymore and everybody works together and we're all on the same page. >> Oh yeah, the reality is in the big enterprise companies and the companies that are building applications for market today, your big financial services companies, there's still a very clear separation between operators and developers. A lot of that is driven by legislation, a lot of that's driven by just old fashioned thinking in many ways, but developers are starting to have a lot more influence on what applications are used and the infrastructure. We just see with the rise of AWS, all the contenders to AWS in the form of Azure and Google. Developers are starting to have a lot more power over that decision, but they're still highly dependent on operators to deliver those platforms that they use, and to make sure that the platforms that they're running their applications on top of, are stable and run well in production situations. There's a big difference between building something on your laptop in one or two instances, and then trying to push it out to a massive scalable cloud platform. And I think those are the areas that we can have a lot of impact, and that's where we are building our tools for at the moment. >> Well, great. Let's dig into those tools a little bit, as I said, at the beginning, we're familiar, Mirantis had the Mirantis Cloud Platform for a few years, big embrace of Kubernetes and then Docker Enterprise, it comes into the mix. So help me understand a little bit, what is kind of the solution set to portfolio? How does Mirantis present that today? >> Yeah, well, it's been an interesting eight, nine months now of the whole process since with the Docker Enterprise business, a couple of key areas. So if we look at what MCP was, and MCP still here today apparently, it focuses on delivering all the components necessary to have an effective cloud platform. So lifecycle management, lifecycle management of all those underlying components, which in their own right is extremely complex set of software. What we focused on there was understanding in enterprise infrastructure, the right way to do that. As soon as you bring in from the Docker Enterprise business is that they have a scalable, large, well deployed container platform. And many thousands of users across the world in all sorts of different scales and production systems. We are merging that knowledge that we have around infrastructure, infrastructure management, and simplifying access to infrastructure with this platform that provides for all that application, hosting provides for all the control of containers, plus all the security components around the container lifecycle. And delivering in such a way that you can choose your underlying preference. So we're no longer looking to lock you in to say, you have to go on-prem, you have to go into cloud. We're saying, we'll give you the choice, but we'll also give you a standardized platform for your developers across all of those potential infrastructure environments, so I'll use it again, public cloud, private cloud, bare metal on-premise, or your options like the VMware of this world. By consolidating all of that into one platform, we're giving you that as a developer, the ability to write applications that'll run anyway and sorry, go on. >> No, please finish up, I've just got to follow, yeah. >> But that simplicity drives and like that's simple choice across all those platforms essentially drives speed. It takes away the typical barriers that we're seeing in our customers. We hear every reason, we love Docker Enterprise because it solves the problem of getting containers, it solves a problem of securing containers, but it takes four teams to deploy it. Same for the MCP, we're saying is we cannot do that in a day and provide other self sets. So you can deploy a brand new container cloud in minutes rather than days or weeks. And that's one of the biggest changes that we're bringing to the product. >> Yeah, so absolutely what we hear from customers that agility, that speed that you talk about is the imperative, especially talk about 2020, everybody has had to readjust often accelerating some of the plans they had to meet the realities of what we have today. What I want to understand is when you talk about that single platform being able to be in any environment, oftentimes there's a misnomer that it's about portability. Most customers we talked to, they're not moving things lots of places. They do want that operational consistency, wherever they go. At the same time, you mentioned the rise of AWS and the hyperscalers often when they're now going to have to manage multiple clusters, it's not that I choose one Kubernetes and I use it anywhere, but I might be using AKS Azure had an early version of it, of course, Amazon has a couple of options now for enterprises. So help us understand how the Mirantis solutions, fit with the clouds, leverage cloud services and if I have multiple clusters, you even mentioned VMware, I might have a VMware cluster, have something from Mirantis, have something from one of the hyperscalers. Is that what you're seeing from your customers today? And how do they and how do they want to manage that going forward? Because we understand this is still a maturing space. >> So I mean, that's exactly the point. What we're seeing from our customers is that they have policies to go cloud first. They still have a lot of infrastructure on-premise. The question is which cloud, which cloud suits their needs in which region. Now, all of a sudden you've got a risk management policy from an organization that says, well, I have to go to Azure and I have to go to AWS. That's using them as examples. The deployment and management of those two platforms is completely different. Just the learning curve for a developer who wants to focus on writing code, to build a platform on top of AWS is barely extensive. Yes, it's easy to get started, but if you really want to deal with the fine print of how to run some in production, it's not that simple. There are potentially a thousand different buttons, you can click when deploying an instance on Amazon. So what we're saying is, instead of you having to deal with that we're going to abstract that pain from you. We're going to say we'll deploy Docker Enterprise on top of Amazon, on top of Google, on top of Azure, on top of your VMware cluster, give you a consistent interface to that, consistent set of tools across all those platforms, still consuming those platforms as you would, but solve all those dependency problems. To set up a cube cluster on top of Amazon, I'm not talking about an AKS or something like that right now, but the sort of cube cluster means I have to set up load balances, I have to set up networks, I have to set up monitors, I have to set up the instances, I have to deploy Kubernetes, and then I'm only getting started. I still haven't integrated that to my corporate identity management. We're saying we'll bring all that to give them, we are bringing all that together in the form of Docker Enterprise container cloud. >> Yeah, definitely as you said, we need more simplicity here. The promise of cloud it's supposed to be simplicity and now of course we have the paradox of choice when it comes there. >> Yeah. >> One of the other things we've seen, rapid change a lot the last year or so is many of the offerings out there are now managed services. So as you said, I don't want to have to build all of those pieces. I want to just be able to go to somebody. What are you hearing from your customers? How does manage service fit into what Mirantis is doing? >> Great, well, what we're hearing from customers is they want the pain to go away. The answer to that could be delivered through software that's really easy to use and doesn't set up any barriers and gets them started fast, which is where we focus from a product perspective. Mirantis also has a strong manage services on so we've been doing manage services for some of the biggest enterprises in the world for MCP products for many years. We've brought those teams forward and we're now offering those same managed services on top of all of our platforms. So Docker Enterprise container cloud, we'll deploy it for you, we'll manage it for you. We'll handle all the dependencies around getting container cloud up and running within your organization, and then offer you that hands on service. So when you build clusters, when you want clusters that are much more longer lived, we can handle all the extra detail that goes around those. Short term, so if you just want quick clusters for your developers, easy access, you still have that as part of the service. So we're focusing on how fast can we get you started? How fast can you get up the cushions to market, not put any infrastructure barriers on the way, or where there are traditional infrastructure barriers find ways around us. That still acceptable to those enterprise operators who still have list as long as my arm, probably twice as long as my arm of fine print that they have to comply with for everything under the sun, the regulators, et cetera. >> Yeah, Shaun since you are based in Europe, I'm wondering if you can give us a little bit of the perspective on cloud adoption there, here in North America, discussion point has been for many years, just that massive movement to public cloud, of course governance the key issue in Europe and above also kind of the COVID impact, anecdotally there's lots of discussions of acceleration of public cloud. So what's the reality on the ground? How do your enterprise customers look at public cloud? How fast or slow are they moving and what is the 2020 impact? >> So interesting if you'd asked me this question, six months ago, seven months ago, pre COVID, I would have said public cloud is growing. People are still building some small private clouds for very unique use cases, looking at where our customers are now, all of a sudden there's a risk balance. So they're driving into public cloud, but they want those public clouds to be with European companies and European operators, or at least to have some level of security. You know, recently the European community canceled the privacy shield legislation that was in place between the US and Europe, which meant all of a sudden, a lot of companies in Europe had to look for other places to store their data, or had to deal with different rules around storing the data that they may have but in the US previously. What we're seeing customers saying is we have to go multicloud. The drive is no longer we can accept one vendor risk. We want to remove that risk, we will still have equipment on-premise. So on-prem equipment is still important to us, but as a backup to the public cloud, and as a way to secure our data and the mechanisms that we own and can touch and control. That's the operator's view. If we talk to developers, people writing applications, if they are not forced to, they will go public cloud almost every time. It's just easier for them. And that's really what we're, that's really the challenge that we're also trying to focus on here. >> Yeah, I'm curious, are there any European cloud providers that are rising to the top the big three have such a large megaphone that they kind of drown out a lot of discussion and understand that there's pockets and many local suppliers, and of course thousands of kind of cloud service providers out there, but any ones that are good partners of Mirantis or ones that you're hearing. >> There are a couple. >> Yeah. >> Sorry, there are a couple, I dunno if I can mention them here, but there's some great ones providing very unique businesses, places like the Netherlands, very unique, very focused business where they're taking advantage of specific laws within, well, the Netherlands and Germany, there's another company that we're working very closely with that feels that they can do a much more affordable, much more hands on service or cloud. So their cloud experience provide everything developers want, but at the same time handle those operator requirements and those enterprise requirements within Germany. So focusing on the GDPR laws, focusing on German technology laws, which are very complex, very much focused on privacy. And there are a few unique companies like that across Europe, I know of one in Italy, there's a company that focuses on providing cloud services to the EU government themselves, who we've worked with in the past. So yeah, but as you say, it's the big three, they're growing, they're dealing with those challenges. We see them as resources, we see them as partners to what we're trying to achieve. We certainly not trying to compete with them at that level. >> Absolutely, all right, Shaun final question I have for you, tell us what your customers see as the real differentiation, what draws them to Mirantis and what we should expect to see over the coming months? >> So I think choice is a key differentiator. We're offering choice, we're not trying to tell you you can only use one cloud platform or one cloud provider. And that's extremely important as one of the key differentiators. I've mentioned this many times, simplicity, driving simplicity at all levels, from the operator through to the developer, to the consumer of the cloud, let's make it easy. Let's truly reduce the friction to getting started, all right that's one of the really key focus areas for us and that's something we talk about all the time in every meeting and we question ourselves constantly is, does this make it easier? And then security is a major component for us. We really focus on security as part of our tool sets, providing that standardized platform and that standardized security across all of these environments, and ultimately reducing the complexity. >> Shaun O'Meara, thank you so much. Great to hear that the real customer interaction and what they're dealing with today. >> Sure, thank you very much. >> Be sure to check out the tracks for developers, for infrastructure as well as all the rest theCUBE interviews on the Mirantis Launchpad site of course powered by CUBE365. I'm Stu Miniman and thank you for watching theCUBE. (upbeat music)

>> Announcer: Live, from Barcelona, Spain, it's the CUBE, covering Cisco Live 2018. Brought to you by Cisco, Veeam, and the CUBE's ecosystem partners. >> Hey, welcome back everyone. Live here in Barcelona, Spain, this is the CUBE's exclusive coverage of Cisco Live 2018 in Europe, I'm John Furrier, and my co-host Stuart Miniman, Analyst at Wikibon.com. Our next guest is Shaun Coulson, who's the Vice President of Storage for IBM Europe. He is the one on the ground, leading the team for IBM and the Cisco relationship. Driving the storage, which is driving the cloud, and servers and everything else. Welcome to the Cube. >> Thank you, and welcome to Barcelona. >> Thank you very much, great to have you. Want to get, you're close to the front lines, driving all the business for IBM storage. Congratulations, you had a great year. How's business going in Europe, what's the scene like here? Give a little color, and what's goin' on in Europe. >> Okay, yeah. 2017 was a bumpy year for IBM storage, across the board, across all, both our software and our hardware portfolios, but also our go-to-market with our partners as well, and Cisco's clearly one of those partners. We're in the setup mode for 2018. My worldwide boss would probably say, "We're already setup, Shaun, and you're behind, because it's nearly the end of January." So, it's a vibrant time. Ginni Rometty, mentioned storage specifically in her Address the Nation and the 2017 results and that's partly down to the work that we did in Europe. So, I'm pretty proud of where we're at right now and what we've done. >> Wow, good re-tooling of the product over the years, and now, sales are up, what's the driver of the business right now? We here Cloud, we here On-Premises, Private Cloud, True Private Cloud, as we keep on reports. Certainly Hybrid is there, what's the key customer success driver that you guys are having? >> I think the key success is really, you're correct, everybody's talking about Cloud. Mainly, the main driver in my view, is how do they prepare for Cloud? And that's a Hybrid solution, and, with that, you've also then got the On-Prem. The refresh, the technology Transform and Modernize, is a massive program for us and our customers right now. I was in the Nordics, just before Christmas, and I went to one of the big financial institutions, and they have a Cisco/IMB VersaStack solution there, and I said to them, what was they main reason you chose that, and why did you go with IBM, 'cause, they weren't an IBM customer before, so it was a big win-back account for us. And he was about reduction of risk, reduction of cost, and allowing me to transfer some of my operational skills to new work-loads and prepare myself for the cloud. And I think that message has been driven pretty hard by all our customer sales. >> The refresh is interesting, I didn't look at that angle, but, you can see the Digital Transformation story that we've been talking on the Cube for multiple years, playing out because people now see no perimeter with their networks, they're seeing real-time demands from applications. Now IOT. They had to modernize, right, I mean, this is the era of (laughs) not just PO's slappin' down storage, back-room, stack em' rack 'em, it's a new storage paradigm. >> I don't think I've ever been in the era where I sat by the fax machine and the orders come in, but, maybe one day >> What's a fax machine, what's a fax machine again? >> maybe one day (laughing) >> Ask a millennial, they don't even know how to use a fax machine. >> So coming back to this discussion in the Nordics, they really talked about the technology of Flash, the UCS server stacking and the network from Cisco how did that allow them to move some of their resource, reduce on their cost, and it was all around, every month they do net software patches from Microsoft. They used to have a team of 8 people that would take up to 5 working days, fully, to transform that. That, with the introduction of the system the UCS and the Flash, has gone from a 8 team to 2 team and it's done in 2 days. That's a massive reduction in cost but at the same time allowing them to move to that net-new. >> Shaun, bring us in to customers a little bit, 'cause, we've been tracking Converge since that wave started, a lot of it was just organizationally getting set because, I have a server refresh, I have the storage refresh, how do I get budgets, who owns it, but it's that simplicity that you mention, which is you know, we know if I can put it all together, you're talking the networking team. The networking team often doesn't update their code. They put it in, saying like, okay, it's all working, don't breathe on it, but when I go to Converge, really, it makes it easier for me to refresh, with security top of mind for almost every customer that I talk to, they need to stay more up-to-date and they need to, what we have said at Wikibon is, you need to be able to shift to platforms and partners to be able to take some of that burden off, I can't have 6 months of testing every time I need to roll something out, so, where are the customers in Europe, how are they doing along that journey, organizational dynamics you can share. >> I go to a Entertainment customer in the UK. They've taken, they integrated Stack and their deployment of systems out into the field has reduced by 90%. That is a real benefit, and then, we come back to that, how do you maintain, how do you drive, there's one single point, you can drive it through. It's done, it's moved on and I think there is a huge opportunity of customers starting to look at that simplicity because, that's the transformation that's the, I think for a long time this industry has, and the storage business has tried to make things complex. Because that's part of the art of where we've looked to sell, you know, "It's hard, it's not easy guys, therefore, you need us" and I think there's a massive switch away to that simplified model. >> How do customers think of their data center in the context of Cloud in the industry there's been all this argument, what is Private Cloud? Virtualization? I talk to most customers, they have a cloud strategy and their doing Saas, their doing some Public Cloud, they think about their own data center, they don't get caught over the terms, but, I'm curious how they define it, how they do it do they have initiatives on codifying what they do? >> I think any large customer or small customer would be crazy not to have a cloud strategy some way, shape, or form and I think that has been going on for the last 2 to 3 years with all our major customers. Some are further down the track where everything is going to be Cloud on all their systems, especially the newer, more agile customers but there's also a lot of customers that, for security reasons, financial regulation reasons, are never going to be that far down the track on Cloud, so, I think it's a mixed bag. I think, while their is that transformation and that journey, there's opportunity for everybody and I think that's the bit that we see, where we have the skill set to help our customers going forward. >> I'm curious, usually when I come talk to a European audience, the governance is, a major sticking point has been one of the headwinds against moving to public cloud, we see the big public cloud players putting data centers in every country that they can, but is it still kind of challenge today? >> I think there will always be that concern from the regulatory authorities. And I think if you take the first uptake in Europe of what customers that really moved to the cloud. Then I would say it was the more commercial, mid-size customers that saw the attraction, especially the ability to have the variable cost rate that they can associate with the cloud. But, I think there are also parts of the larger government organizations that are now looking at what applications what workloads they can actually put on the cloud, where there is no regulatory governance to be followed. So, I think it's a bit of both. >> Shaun, talk about the European differences by country, because we've been covering the GDPR pretty hard, that deadline's coming up, that's going to have an impact on storage, obviously, and then also, networking, IP addresses can determine which country you're from, 'cause now each country will have their own little nuances. What is the impact to your job and as you execute your mission what does it mean for the customer? Because, a lot of people don't just live in one country, or work in one country. They span multiple regions. >> And you think of it, most international customers have offices in probably 20 or 30 of the countries that we cover in Europe. I think you can have a view from a technology point of view that some people will be early adopters and some people will be slower adopters. And what you can do, and what is very prevalent in the European marketplace is taking those learning lessons from the early adopters, finessing them, and then driving them out to the other ones, so, I would say for example, the Nordics, again, are probably an early adopter of a lot of the new technologies. They're very happy to try and drive and yet, some of the more traditional ones will wait and see and then think it through a little bit more carefully. But that's the beauty of the nature of Europe. >> What's the big change that you've seen over the past couple years? Obviously, software's at the center of it. Any observations that you can share that's different in the market for buyers? >> I think from a technology point of view, the indoctrination of Flash and there I say the commoditization of Flash has been prolific over the last 18 months. From the price point that it initially started to where we are today has meant that it has become more and more accessible for a lot more of the customer sets that we work with. And especially when you look at performance price point, it starts to become a no-brainer. I'm not sure, when we look at some of the stats in 4th quarter, we actually sold more core Flash modules than we did revenue-wise on traditional SSDs. Which is a kind of indication of where we've gone with the price performance. >> Any trends and patterns that you've seen with buyers that you can, that you see happening, what's the big takeaway? >> I think the big takeaway is storage is alive and kicking. The cloud is formed on the use of data. The use of data means you got to have good storage systems to go and drive that. And I think that is a major theme that runs through all our customer sets. >> And that's trying the modernization, big time. >> Shaun, are there any verticals that you're finding that are leading the charge in some of this transformation of data, leveraging data more than others. >> I think a lot of the smaller organizations which have more agility, they're actually leading in terms of willing to put their first foot forward, but, I think what happens is, then, once that is proven, then the larger organizations come in and work it, so, you're always going to have the big Toco, media companies that are always at forefront of technology. You'll also have the financial organizations that are looking at, where Cloud's good, where's not, block change, GDPR that we talked about earlier, and I think that is traditionally IBM's strength in those kind of marketplaces. >> Shaun, thanks for coming on the Cube, really appreciate the commentary and insight to Europe, congratulations-- >> Thank you. >> on your sales. Shaun Coulson is the Vice President of IBM Europe Storage. This is the Cube breaking down the European show for Cisco Live 2018, Europe, I'm John Furrier, Stu Miniman, we'll be back with more after this short break.

>> Live from Los Angeles, it's theCube covering Open Source Summit North America 2017 brought to you by the Linux Foundation and Red Hat. >> Hey welcome back everyone, live here at Los Angeles, California it's theCUBE's exclusive coverage of the Open Source Summit in North America. I'm John Furrier, your host with my co-host Stu Miniman with Wikibon, and our next two guests, Alan Dickenson who is the program director of the blockchain platform at IBM and Shaun Frankson, who's the co-founder and TED speaker at a company called The Plastic Bank doing some truly amazing things with technology for the betterment of society and communities. We'll get this out in a second. Guys, welcome to theCUBE. >> Thanks for having us. >> So two important things honestly. IBM, well-known in the history books that's being written. Real proponent of Linux, they were one of the early guys in during that movement, with a billion dollars in cash. That's a big number. You guys went all in on Linux, good bet, Linux was successful, it's now the standard so congratulations. Now you have the same thing going on with Blockchain. IBM's got the big bet, the company's best brains at work working on blockchain, kind of reminds me of the Linux move back in the day. Pretty impressive. >> Yeah I mean, there's a lot going on with Blockchain and one of the reasons we're here is that this is a developer event. We really want to help accelerate technology adoption and with our platform we launched two weeks ago, we have a whole suite of capabilities that developers can use that's complimentary, that's free and they can use that to go and try blockchain with a Hyperledger Composer and they can experiment and work on blockchain projects. >> You know I love the IBM marketing department, they always have the best commercials. To me I also love the Smarter Planet and I think Shaun, I would like to give you a chance to talk about your amazing project you have going on. Take a minute to explain, you're up on stage here at the event, pretty compelling, great social good, real value. What's some tech behind it. Take a minute to talk about your work. >> At The Plastic Bank we make plastic waste a currency so in developing countries it can be too valuable to enter the ocean. So the mission to use technology to stop ocean plastic. So we create a recycling ecosystems all around the world where people can go out, recycle the plastic that's abundant in the environment, they can earn enough value to provide for their families, send their kids to school and we have this entire ecosystem where we gather the plastic, we have these incentive programs to sort it, recycle, then we actually sell it back to some of the world's largest corporations who can use that recycled social plastic in their products instead of using new plastic. Which means that every single product tells a story of stopping ocean plastic, reducing global poverty and this really allows just a responsible consumer to make a choice that's helping to stop ocean plastic in the end. >> Well great story I just want to drill down because this highlights couple of big trends we've seen in the Internet business as it got into Big Data. And certainly you guys know a lot about that at IBM. The collective intelligence idea of having these self-forming communities, you think of any problem. Recycling plastic, which is not that hard to do, you go to the placement. How do you get it institutionalized? Is the collective intelligence problem. So you got a clever idea to do this but you also have to support it. There's a lot of cost involved so how did you pull this together? What were some of the nuance to keep the incentives, to keep the motivation, to create the payouts. We all recycle our cans for five cents at some points in our lives, I remember when I was in college it helped me a lot. But it's a whole other scale here. Take a minute to talk about the technology. >> For sure. So we're starting in developing countries that essentially have almost no existing waste management systems so we're really starting from the ground and looking at the way of how do we remove the dangers of the cash-based systems, instead have an asset-backed token that we can safely distribute and create new abilities. So really we're dealing with the unbankable who can now for the first time, save and earn through recycling. So it's not really not looking of how do we go back to you know, what's been done in the past, it's how do we take an area and start with the best technology that exists to safely bring in these new systems. >> When you say unbankable, what does that mean? >> I mean sadly, but most of the world does not qualify for a bank account. They don't have the identity, they don't have the credit history, so it's simple concept of how do you save 200 dollars to send your kid to school. You essentially hide it under a mattress and hope that nothing happens in between. But when you can safely have a digital wallet, it's just instant savings. >> Mobile phone penetration is pretty high in these areas, so they might have mobility but no actual institutional credit bank account, am I getting that right? >> Oh exactly. It's amazing when we think there's countries with no power but who have phones. So that means the education of the mobile payments is still there, it's not a foreign concept, but now you can earn the tokens which can then even be converted into mobile payment. Again where recycling is the equal opportunity. >> So are you using the blockchain component, IBM blockchain, or are you guys using a derivatives, what's the tech? >> So we use IBM blockchain, Hyperledger Fabric and LinuxOne and you know it's a system designed to scale around the world without any interruptions and just it's a go big go at home and do it right. >> You mentioned LinuxOne and I believe there's some announcements week around how to secure containers even more and we've been trying LinuxOne, Linux on the mainframe for quite a few years. Give us the update on what's new. >> One of the new things that we're announcing at this year's show is Emperor II. It's a new Linux platform and it's the technology that's underpinning The Plastic Bank's blockchain. The other thing that we're announcing is the beta for Secure Services Containers. Around the globe we have a lot of cases where data is stolen and blockchain's another type of data, we don't want it to get stolen even though there's a lot of encryption in blockchain. We still don't want the data stolen and people trying to get at it. So we have this idea of Secure Service Containers that kind of wraps around the application and protects it from malware, protects it from insiders, can't see it, insider credentials get compromised, goes into the main ways, data gets stolen. You have to do it that way. Even if IBM gets a court order for us to reveal your blockchain data, we can't do it. It's protected and encrypted in this area, and only you have the encryption keys. So the beta for that is something we also announced today. And then two weeks ago we announced the blockchain platform, it's kind of a technology that we put in place to accelerate and help people. >> Security is a huge issue, I mean the ICO marker for instance, remind me of the old stagecoach robberies, right. You literally do like a multimillion dollar ICO, completely a secured, when you're getting your wallet getting snatched, you're getting hijacked, is that something that is related to that? Or is that just a point of the security is still an open book? I mean you can have secure transactions on the blockchain but you still got your wallets out there, so you got to have a wallet strategy. >> Most of the Secure Container technology can be used for any Linux application that you run when it's out of beta. Right now it's in beta. So we're looking for users that want to have a very secure application environment, running on Linux and sign then up for our beta. >> Shaun can you tell us, what led you to this solution? I'm sure security has got to be high on your list, the kind of financial transactions that are involved in it, but I have to say a young small company, mainframe is not the initial thing that we think of. >> Again, the only way to solve the global problems is really go on such a scale that we can have hundreds of millions of pounds provided to the world's largest companies. Which just means it's got to be large scale, no interruptions and for us, trust is the biggest thing. Investor trust, client trust, and just even everyone's trust that not only the financial side, but you know we're delivering a promise of social good, environmental justice, that if we get an irrefutable trust that it's just the right system, and to me, blockchain's a trust stamp, IBM's a trust stamp, LinuxOne is a trust stamp that just it's the right way to do it on a global scale. And for us it was global was the only way to go. >> And now of course, the supply chain is a channel that you're dealing with that blockchain is a good fit for. A lot of these early use cases, their supply chain like, well you got to keep track of a lot of moving parts and who's contributing to what. >> You can have a digital token that represents the physical asset and you can kind of track it through that way and blockchain can keep the information safe and documented so that you don't lose track of the value. >> Well we're super excited. As you know, we're looking at blockchain for our audience and our world, so it's interesting, a lot of the blockchain, certainly people see the hype and the scams out there and the ICO stuff, which is natural, they're early market, the underbelly kind of shows itself, we've seen that movie before. But, here's the thing that I've never seen in my career ever. Very often, when you have alpha geeks getting super excited, we're talking CTOs, really strong technical people, and A plus entrepreneurs, they're salivating at the blockchain opportunity because they're the canaries in the coal mines in my opinion on disruption opportunities. You seeing use cases where I can solve that problem, people with passion are going after these new opportunities that were ungettable before because you'd have to roll out this complex software product, all these costs to get started. Same pattern. >> We're seeing a lot of technology people get excited about it. But they understand the technology relatively quickly and they can get it. What seems to be slowing down a lot of blockchain adoption is more the linkages with other organizations because when you're exchanging value, you're passing it between one organization and another, and another and a value chain. And getting that value chain where you can articulate who it is, and codifying the ways that you work with the people in the value chain and create a smart contract around that, that's what we see slowing down the progress of blockchain. >> We had Brian Behlendorf on yesterday, he runs the SmartLedger project for the group and we talked about decentralizations versus distributive, we all know what distributive computing is, we've seen that. But now with decentralizations, he had a good quote, he said, minimum viable decentralization and 'cause if people think that you have to have a completely decentralized environment which I thought was a really good observation. >> I agree, I heard him say that and it reminded me of one of the steps we see in blockchain progression is we have to get a minimum viable ecosystem together. We see people sometimes biting off too big of a problem and one thing I like about The Plastic Bank's approach is that they try to get it working right somewhere first and then scale from there. And then the same thing with blockchain. You have to get your ecosystem defined, you have to get that working and then expand from there. And that's one of the things that we've designed into our blockchain platform, is the ability to govern a group of folks that are trying to exchange value and then also how to operate a blockchain once it's exchanging value with a group of folks. Things like, lets say you have a new version of Hyperledger Fabric, you want to take down your blockchain that's operating while you install the new version, but we've made sure that you can do that in a smooth way that keeps on running. >> You know Alan, that is a super smart observation. I hundred percent agree with you. I've always said this, and Stu and I and Dave, we talked about this. Blockchain is a community win. The community could win this together as the community participants increase in that kind of philosophy, the value increases. If it's a winner take all, it doesn't work, clearly. So what do you guys with the ecosystem? That's a good question. Are you guys investing in the ecosystem? Can you give some examples. Obviously you're supporting great projects. >> We've built a lot of technology but one of the things that is unique about IBM's approach to blockchain is the governance tools that we've created to help manage the ecosystem. We're the only blockchain partner out there right now that has these kind of ecosystem partner tools that can kind of speed the creation of bringing multi parties together and helping them think through how they should govern the creation and then also the operation of the blockchain. What if you want to add a few more members after your blockchain is running? That's a technology problem, but it's also a business problem. And will your blockchain keep running? >> Well we'll keep in touch, we definitely want to do a lot more coverage on what you guys are doing. I think it's instrumental, we're doing a lot of coverage as well on the ICO side, tracking that business side of it, but down on the enterprise it's a lot of activity coming and I think Accenture is going to do very well. Shaun, get back to you for a second. Want to ask you a quick question. On a personal note, what has been a learning from your process? You're doing, what seems to be probably an exciting and intoxicating job where you're making social good happen, using some tech. I mean, it's a cool project. Assuming there's been some bumps along the road like any other entrepreneurial venture. What are some of the learnings you've taken away from where you are today, where you've come from and what you achieved? What are some personal learnings? >> I think really the two biggest things is one, especially coming from just a entrepreneurial nature, it's not what you know, it's what you can figure out. There's always a how. And for us, when it was when you come up with such a giant idea and you just know where it's going and where it can go past there. Mentally just becoming the person capable of achieving what you are trying to achieve as compared to getting caught up on all the things you don't know, I mean the more you know, the more you know how much you don't know and it's really just getting inspired by the fact that whatever the next answer, whatever the next hiccup, whatever the next how, we'll figure it out. I might now know the answer, but I'm committed to figuring it out and committed to becoming the person capable of figuring it out. And you know it's a journey and process and an inspiring journey to be on. >> You got to dream the future to create it. What you're saying is it's a growth mindset, I love that growth mindset, say hey we're going to go after it, we're going to see some things and have to figure it out, that's a great mindset. Versus nervousness and insecurity. Good job, well done. Well congratulations on your success and thanks for coming on theCUBE, we really appreciate it. Alan, we look forward to chatting with you in the future and talking blockchain. IBM here on theCUBE with the great projects they're doing on blockchain and also they had an announcement a couple weeks ago around some really cutting edge value around food distribution and value chain so again, Smarter Planet, I know you guys do a lot of investments early on but congratulations, and continued success Shaun. Live coverage here from the Open Source Summit in Los Angeles, California. It's theCube, I'm John Furrier, Stu Minniman, be right back with more after this short break.

>> Male Voice: From the Fairmont Hotel in the heart of Silicon Valley, it's the Cube covering when IoT Met AI: the Intelligence of Things brought to you by Western Digital. >> Hey welcome back here everybody. Jeff Frick with the Cube. We're in downtown San Jose at the Fairmont Hotel at a small event talking about data and really in IoT and the intersection of all those things and we're excited to have a little startup boutique here and one of the startups is great enough to take the time to sit down with us. This is Shaun Moore, he's the founder and CEO of the recently renamed Trueface.ai. Shaun, welcome. >> Thank you for having me. >> So you've got a really cool company, Trueface,ai. I looked at the site. You have facial recognition software so that's cool but what I think is really more interesting is you're really doing facial recognition as a service. >> Shaun: Yes. >> And you a have a freemium model so I can go in and connect to your API and basically integrate your facial recognition software into whatever application that I built. >> Right so we were thinking about what we wanted to do in terms of pricing structure. We wanted to focus on the developer community so we wanted tinkers, people that just want to play with technology to help us improve it and then go after the kind of bigger clients and so we'll be hosting hack-a-thons. We just actually had one this past week in San Francisco. We had great feedback. We're really trying to get a base of you know, almost outsource engineers to help us improve this technology and so we have to offer it to them for free so we can see what they build from there. >> Right but you don't have an opensource component yet so you haven't gone that route? >> Not quite yet, no. >> Okay. >> We're thinking about that though. >> Okay, and still really young company, angel-funded, haven't taken it the institutional route yet. >> Right, yeah, we've been around since 2013, end of 2013, early 2014, and we were building smart home hardware so we had built the technology around originally to be a smart doorbell that used facial recognition to customize the smart home. From the the trajectory went, we realized our clients were using it more for security purposes and access-control, not necessarily personalization. We made a quick pivot to a quick access control company and continue to learn about how people are using facial recognition in practice. Could it be a commercial technology that people are comfortable with? And throughout that thought process and going through and testing a bunch of other facial recognition technologies, we realized we could actually build our own platform and reach a larger audience with it and essentially be the core technology of a lot cooler and more innovative products. >> Right, and not get into the hardware business of doorbells >> Yeah, the hardware business is tough. >> That's a tough one. >> We were going to through manufacturing one and I'm glad we don't have to do that again. >> So what are some of the cool ways that people are using facial recognition that maybe we would never have thought about? >> Sure, so for face matching - The API is four components. It's face matching, face detection, face identification, and what we call spoof detection. Face matching is what it sounds like: one-to-one matching. Face detection is just detecting that someone is in the frame. The face identification is your one to act so your going into a database of people. And your spoof detection is if someone holds up a picture of me or of you and tries to get it, we'll identify that as an attack attempt and that's kind of where we differentiate our technology from most is not a lot of technology out there can do that piece and so we've packaged that all up into essentially the API for all these developers to use and some of the different ideas that people have come up with for us have been for banking logins, so for ATMs, you walk up to an ATM, you put your card in and set up a PIN so to prevent against fraud it actually scans your face and does a one-to-one match. For ship industries, so for things like cruise ships, when people get off and then come back on, instead of having them show ID, they use quick facial recognition scans. So we're seeing a lot of different ideas. One of the more funny ones is based off a company out in LA that is doing probation monitoring for drunk drivers and so we've built technology that's drunk or not drunk. >> Drunk or not drunk? >> Right so we can actually measure based on historical data if your face appears to be drunk and so you know, the possibilities are truly endless. And that's why I said we went after the development community first because >> Right right >> They're coming to use with these creative ideas. >> So it's interesting with this drunk or not drunk, of course, not to make fun of drunk driving, it's not a funny subject but obviously you've got an algorithm that determines anchor points on the eyes and the nose and certain biometric features but drunk, you're looking for much softer, more subtle clues, I would imagine because the fundamental structure of your face hasn't changed. >> Right so it's a lot of training data, so it's a lot of training data. >> Well a lot of training data, yeah. We don't want to go down that path. >> So a lot of research on our team's part. >> Well then the other thing too is the picture, is the fraud attempt. You must be looking around and shadowing and really more 3D-types of things to look over something as simple as holding up a 2D picture. >> Right so a lot of the technology that's tried to do it, that's tried to prevent against picture attacks has done so with extra hardware or extra sensors. We're actually all cloud-based right now so it isn't our software and that is what is special to us is that picture attack detection but we've a got a very very intelligent way to do it. Everything is powered by deep learning so we're constantly understanding the surroundings, the context, and making an analysis on that. >> So I'm curious from the data side, obviously you're pulling in kind of your anchor data and then for doing comparisons but then are you constantly updating that data? I mean, what's kind of your data flow look like in terms of your algorithms, are you constantly training them and adjusting those algorithms? How does that work kind of based on real time data versus your historical data? >> So we have to continue to innovate and that is how we do it, is we continue to train every single time someone shows up we train their profile once more and so if you decide to grow a beard, you're not going to grow a beard in one day, right? It's going to take you a week, two weeks. We're learning throughout those two weeks and so it's just a way for use to continue to get more data for us but also to ensure that we are identifying you properly. >> Right, do you use any external databases that you pull in as some type of you know, adding more detail or you know, kind of, other public sources or it's all your own? >> It's all our own. >> Okay and I'm curious too on the kind of opening up to the developer community, how has that kind of shaped your product roadmap and your product development? >> It - we've got to be very very conscious of not getting sidetracked because we get to hear cool ideas about what we could do but we've got our core focus of building this API for more people to use. So you know, we continue to reach out them and ask for help and you know if they find flaw or they find something cool that we want to continue to improve, we'll keep working on that so I think it's more of a - we're finding the developer community likes to really tinker and to play and because they're doing it out of passion, it helps us drive our product. >> Right right. Okay, so priorities for the rest of the year? What's at the top of the list? >> We'll be doing a bigger rollout with a couple of partners later on this year and those will be kind of our flagship partners. But again, like I said, we want to continue to support those development communities so we'll be hosting a lot of hack-a-thons and just really pushing the name out there. So we launched our product yesterday and that helped generate some awareness but we're going to have to continue to have to get the brand out there as it's now one day old. >> Right right, well good. Well it was Chui before and it's Trueface.ai so we look forward to keeping an eye on progress and congratulations on where you've gotten to date. >> Thank you very much. I appreciate that. >> Absolutely. Alrighty, Shaun Moore, it's Trueface.ai. Look at the cameras, smile, it will know it's you. You're watching Jeff Frick down at the Cube in downtown San Jose at the When IoT Met AI: The Intelligence of Things. Thanks for watching. We'll be right back after this short break.

>> Announcer: Coverage DataWorks Summit Europe 2017 brought to you by Hortonworks. >> Welcome back everyone. Live here in Munich, Germany for theCUBE'S special presentation of Hortonworks Hadoop Summit now called DataWorks 2017. I'm John Furrier, my co-host Dave Vellante, our next guest is Shaun Connolly, Vice President of Corporate Strategy, Chief Strategy Officer. Shaun great to see you again. >> Thanks for having me guys. Always a pleasure. >> Super exciting. Obviously we always pontificating on the status of Hadoop and Hadoop is dead, long live Hadoop, but runs in demise is greatly over-exaggerated, but reality is is that no major shifts in the trends other than the fact that the amplification with AI and machine learning has upleveled the narrative to mainstream around data, big data has been written on on gen one on Hadoop, DevOps, culture, open-source. Starting with Hadoop you guys certainly have been way out in front of all the trends. How you guys have been rolling out the products. But it's now with IoT and AI as that sizzle, the future self driving cars, smart cities, you're starting to really see demand for comprehensive solutions that involve data-centric thinking. Okay, said one. Two, open-source continues to dominate MuleSoft went public, you guys went public years ago, Cloudera filed their S-1. A crop of public companies that are open-source, haven't seen that since Red Hat. >> Exactly. 99 is when Red Hat went public. >> Data-centric, big megatrend with open-source powering it, you couldn't be happier for the stars lining up. >> Yeah, well we definitely placed our bets on that. We went public in 2014 and it's nice to see that graduating class of Taal and MuleSoft, Cloudera coming out. That just I think helps socializes movement that enterprise open-source, whether it's for on-prem or powering cloud solutions pushed out to the edge, and technologies that are relevant in IoT. That's the wave. We had a panel earlier today where Dahl Jeppe from Centric of British Gas, was talking about his ... The digitization of energy and virtual power plant notions. He can't achieve that without open-source powering and fueling that. >> And the thing about it is is just kind of ... For me personally being my age in this generation of computer industry since I was 19, to see the open-source go mainstream the way it is, is even gets better every time, but it really is the thousandth flower bloom strategy. Throwing the seeds out there of innovation. I want to ask you as a strategy question, you guys from a performance standpoint, I would say kind of got hammered in the public market. Cloudera's valuation privately is 4.1 billion, you guys are close to 700 million. Certainly Cloudera's going to get a haircut looks like. The public market is based on the multiples from Dave and I's intro, but there's so much value being created. Where's the value for you guys as you look at the horizon? You're talking about white spaces that are really developing with use cases that are creating value. The practitioners in the field creating value, real value for customers. >> So you covered some of the trends, but I'll translate em into how the customers are deploying. Cloud computing and IoT are somewhat related. One is a centralization, the other is decentralization, so it actually calls for a connected data architecture as we refer to it. We're working with a variety of IoT-related use cases. Coca-Cola, East Japan spoke at Tokyo Summit about beverage replenishment analytics. Getting vending machine analytics from vending machines even on Mount Fuji. And optimizing their flow-through of inventory in just-in-time delivery. That's an IoT-related to run on Azure. It's a cloud-related story and it's a big data analytics story that's actually driving better margins for the business and actually better revenues cuz they're getting the inventory where it needs to be so people can buy it. Those are really interesting use cases that we're seeing being deployed and it's at this convergence of IoT cloud and big data. Ultimately that leads to AI, but I think that's what we're seeing the rise of. >> Can you help us understand that sort of value chain. You've got the edge, you got the cloud, you need something in-between, you're calling it connected data platform. How do you guys participate in that value chain? >> When we went public our primary workhorse platform was Hortonworks Data Platform. We had first class cloud services with Azure HDInsight and Hortonworks Data Cloud for AWS, curated cloud services pay-as-you-go, and Hortonworks DataFlow, I call as our connective tissue, it manages all of your data motion, it's a data logistics platform, it's like FedEx for data delivery. It goes all the way out to the edge. There's a little component called Minify, mini and ify, which does secure intelligent analytics at the edge and transmission. These smart manufacturing lines, you're gathering the data, you're doing analytics on the manufacturing lines, and then you're bringing the historical stuff into the data center where you can do historical analytics across manufacturing lines. Those are the use cases that are connect the data archives-- >> Dave: A subset of that data comes back, right? >> A subset of the data, yep. The key events of that data it may not be full of-- >> 10%, half, 90%? >> It depends if you have operational events that you want to store, sometimes you may want to bring full fidelity of that data so you can do ... As you manufacture stuff and when it got deployed and you're seeing issues in the field, like Western Digital Hard Drives, that failure's in the field, they want that data full fidelity to connect the data architecture and analytics around that data. You need to ... One of the terms I use is in the new world, you need to play it where it lies. If it's out at the edge, you need to play it there. If it makes a stop in the cloud, you need to play it there. If it comes into the data center, you also need to play it there. >> So a couple years ago, you and I were doing a panel at our Big Data NYC event and I used the term "profitless prosperity," I got the hairy eyeball from you, but nonetheless, we talked about you guys as a steward of the industry, you have to invest in open-source projects. And it's expensive. I mean HDFS itself, YARN, Tez, you guys lead a lot of those initiatives. >> Shaun: With the community, yeah, but we-- >> With the community yeah, but you provided contributions and co-leadership let's say. You're there at the front of the pack. How do we project it forward without making forward-looking statements, but how does this industry become a cashflow positive industry? >> Public companies since end of 2014, the markets turned beginning at 2016 towards, prior to that high growth with some losses was palatable, losses were not palatable. That his us, Splunk, Tableau most of the IT sector. That's just the nature of the public markets. As more public open-source, data-driven companies will come in I think it will better educate the market of the value. There's only so much I can do to control the stock price. What I can from a business perspective is hit key measures from a path to profitability. The end of Q4 2016, we hit what we call the just-to-even or breakeven, which is a stepping stone. On our earnings call at the end of 2016 we ended with 185 million in revenue for the year. Only five years into this journey, so that's a hard revenue growth pace and we basically stated in Q3 or Q4 of 17, we will hit operating cashflow neutrality. So we are operating business-- >> John: But you guys also hit a 100 million at record pace too, I believe. >> Yeah, in four years. So revenue is one thing, but operating margins, like if you look at our margins on our subscription business for instance, we've got 84% margin on that. It's a really nice margin business. We can make that better margins, but that's a software margin. >> You know what's ironic, we were talking about Red Hat off camera. Here's Red Hat kicking butt, really hitting all cylinders, three billion dollars in bookings, one would think, okay hey I can maybe project forth some of these open-source companies. Maybe the flip side of this, oh wow we want it now. To your point, the market kind of flipped, but you would think that Red Hat is an indicator of how an open-source model can work. >> By the way Red Hat went public in 99, so it was a different trajectory, like you know I charted their trajectory out. Oracle's trajectory was different. They didn't even in inflation adjusted dollars they didn't hit a 100 million in four years, I think it was seven or eight years or what have you. Salesforce did it in five. So these SaaS models and these subscription models and the cloud services, which is an area that's near and dear to my heart. >> John: Goes faster. >> You get multiple revenue streams across different products. We're a multi-products cloud service company. Not just a single platform. >> So we were actually teasing this out on our-- >> And that's how you grow the business, and that's how Red Hat did it. >> Well I want to get your thoughts on this while we're just kind of ripping live here because Dave and I were talking on our intro segment about the business model and how there's some camouflage out there, at least from my standpoint. One of the main areas that I was kind of pointing at and trying to poke at and want to get your reaction to is in the classic enterprise go-to-market, you have sales force expansive, you guys pay handsomely for that today. Incubating that market, getting the profitability for it is a good thing, but there's also channels, VARs, ISVs, and so on. You guys have an open-source channel that kind of not as a VAR or an ISV, these are entrepreneurs and or businesses themselves. There's got to be a monetization shift there for you guys in the subscription business certainly. When you look at these partners, they're co-developing, they're in open-source, you can almost see the dots connecting. Is this new ecosystem, there's always been an ecosystem, but now that you have kind of a monetization inherently in a pure open distribution model. >> It forces you to collaborate. IBM was on stage talking about our system certified on the Power Systems. Many may look at IBM as competitive, we view them as a partner. Amazon, some may view them as a competitor with us, they've been a great partner in our for AWS. So it forces you to think about how do you collaborate around deeply engineered systems and value and we get great revenue streams that are pulled through that they can sell into the market to their ecosystems. >> How do you vision monetizing the partners? Let's just say Dave and I start this epic idea and we create some connective tissue with your orchestrator called the Data Platform you have and we start making some serious bang. We make a billion dollars. Do you get paid on that if it's open-source? I mean would we be more subscriptions? I'm trying to see how the tide comes in, whose boats float on the rising tide of the innovation in these white spaces. >> Platform thinking is you provide the platform. You provide the platform for 10x value that rides atop that platform. That's how the model works. So if you're riding atop the platform, I expect you and that ecosystem to drive at least 10x above and beyond what I would make as a platform provider in that space. >> So you expect some contributions? >> That's how it works. You need a thousand flowers to be running on the platform. >> You saw that with VMware. They hit 10x and ultimately got to 15 or 16, 17x. >> Shaun: Exactly. >> I think they don't talk about it anymore. I think it's probably trading the other way. >> You know my days at JBoss Red Hat it was somewhere between 15 to 20x. That was the value that was created on top of the platforms. >> What about the ... I want to ask you about the forking of the Hadoop distros. I mean there was a time when everybody was announcing Hadoop distros. John Furrier announced SiliconANGLE was announcing Hadoop distro. So we saw consolidation, and then you guys announced the ODP, then the ODPI initiative, but there seems to be a bit of a forking in Hadoop distros. Is that a fair statement? Unfair? >> I think if you look at how the Linux market played out. You have clearly Red Hat, you had Conicho Ubuntu, you had SUSE. You're always going to have curated platforms for different purposes. We have a strong opinion and a strong focus in the area of IoT, fast analytic data from the edge, and a centralized platform with HDP in the cloud and on-prem. Others in the market Cloudera is running sort of a different play where they're curating different elements and investing in different elements. Doesn't make either one bad or good, we are just going after the markets slightly differently. The other point I'll make there is in 2014 if you looked at the then chart diagrams, there was a lot of overlap. Now if you draw the areas of focus, there's a lot of white space that we're going after that they aren't going after, and they're going after other places and other new vendors are going after others. With the market dynamics of IoT, cloud and AI, you're going to see folks chase the market opportunities. >> Is that dispersity not a problem for customers now or is it challenging? >> There has to be a core level of interoperability and that's one of the reasons why we're collaborating with folks in the ODPI, as an example. There's still when it comes to some of the core components, there has to be a level of predictability, because if you're an ISV riding atop, you're slowed down by death by infinite certification and choices. So ultimately it has to come down to just a much more sane approach to what you can rely on. >> When you guys announced ODP, then ODPI, the extension, Mike Olson wrote a blog saying it's not necessary, people came out against it. Now we're three years in looking back. Was he right or not? >> I think ODPI take away this year, there's more than we can do above and beyond the Hadoop platform. It's expanded to include SQL and other things recently, so there's been some movement on this spec, but frankly you talk to John Mertic at ODPI, you talk to SAS and others, I think we want to be a bit more aggressive in the areas that we go after and try and drive there from a standardization perspective. >> We had Wei Wang on earlier-- >> Shaun: There's more we can do and there's more we should do. >> We had Wei on with Microsoft at our Big Data SV event a couple weeks ago. Talk about the Microsoft relationship with you guys. It seems to be doing very well. Comments on that. >> Microsoft was one of the two companies we chose to partner with early on, so and 2011, 2012 Microsoft and Teradata were the two. Microsoft was how do I democratize and make this technology easy for people. That's manifest itself as Azure Cloud Service, Azure HDInsight-- >> Which is growing like crazy. >> Which is globally deployed and we just had another update. It's fundamentally changed our engineering and delivering model. This latest release was a cloud first delivery model, so one of the things that we're proud of is the interactive SQL and the LLAP technology that's in HDP, that went out through Azure HDInsight what works data cloud first. Then it certified in HDP 2.6 and it went power at the same time. It's that cadence of delivery and cloud first delivery model. We couldn't do it without a partnership with Microsoft. I think we've really learned what it takes-- >> If you look at Microsoft at that time. I remember interviewing you on theCUBE. Microsoft was trading something like $26 a share at that time, around their low point. Now the stock is performing really well. Stockinnetel very cloud oriented-- >> Shaun: They're very open-source. >> They're very open-source and friendly they've been donating a lot to the OCP, to the data center piece. Extremely different Microsoft, so you slipped into that beautiful spot, reacted on that growth. >> I think as one of the stalwarts of enterprise software providers, I think they've done a really great job of bending the curve towards cloud and still having a mixed portfolio, but in sending a field, and sending a channel, and selling cloud and growing that revenue stream, that's nontrivial, that's hard. >> They know the enterprise sales motions too. I want to ask you how that's going over all within Hortonworks. What are some of the conversations that you're involved in with customers today? Again we were saying in our opening segment, it's on YouTube if you're not watching, but the customers is the forcing function right now. They're really putting the pressure one the suppliers, you're one of them, to get tight, reduce friction, lower costs of ownership, get into the cloud, flywheel. And so you see a lot-- >> I'll throw in another aspect some of the more late majority adopters traditionally, over and over right here by 2025 they want to power down the data center and have more things running in the public cloud, if not most everything. That's another eight years or what have you, so it's still a journey, but this journey to making that an imperative because of the operational, because of the agility, because of better predictability, ease of use. That's fundamental. >> As you get into the connected tissue, I love that example, with Kubernetes containers, you've got developers, a big open-source participant and you got all the stuff you have, you just start to see some coalescing around the cloud native. How do you guys look at that conversation? >> I view container platforms, whether they're container services that are running one on cloud or what have you, as the new lightweight rail that everything will ride atop. The cloud currently plays a key role in that, I think that's going to be the defacto way. In particularly if you go cloud first models, particularly for delivery. You need that packaging notion and you need the agility of updates that that's going to provide. I think Red Hat as a partner has been doing great things on hardening that, making it secure. There's others in the ecosystem as well as the cloud providers. All three cloud providers actually are investing in it. >> John: So it's good for your business? >> It removes friction of deployment ... And I ride atop that new rail. It can't get here soon enough from my perspective. >> So I want to ask about clouds. You were talking about the Microsoft shift, personally I think Microsoft realized holy cow, we could actaully make a lot of money if we're selling hardware services. We can make more money if we're selling the full stack. It was sort of an epiphany and so Amazon seems to be doing the same thing. You mentioned earlier you know Amazon is a great partner, even though a lot of people look at them as a competitor, it seems like Amazon, Azure etc., they're building out their own big data stack and offering it as a service. People say that's a threat to you guys, is it a threat or is it a tailwind, is it it is what it is? >> This is why I bring up industry-wide we always have waves of centralization, decentralization. They're playing out simultaneously right now with cloud and IoT. The fact of the matter is that you're going to have multiple clouds on-prem data and data at the edge. That's the problem I am looking to facilitate and solve. I don't view them as competitors, I view them as partners because we need to collaborate because there's a value chain of the flow of the data and some of it's going to be running through and on those platforms. >> The cloud's not going to solve the edge problem. Too expensive. It's just physics. >> So I think that's where things need to go. I think that's why we talk about this notion of connected data. I don't talk hybrid cloud computing, that's for compute. I talk about how do you connect to your data, how do you know where your data is and are you getting the right value out of the data by playing it where it lies. >> I think IoT has been a great sweet trend for the big data industry. It really accelerates the value proposition of the cloud too because now you have a connected network, you can have your cake and eat it too. Central and distributed. >> There's different dynamics in the US versus Europe, as an example. US definitely we're seeing a cloud adoption that's independent of IoT. Here in Europe, I would argue the smart mobility initiatives, the smart manufacturing initiatives, and the connected grid initiatives are bringing cloud in, so it's IoT and cloud and that's opening up the cloud opportunity here. >> Interesting. So on a prospects for Hortonworks cashflow positive Q4 you guys have made a public statement, any other thoughts you want to share. >> Just continue to grow the business, focus on these customer use cases, get them to talk about them at things like DataWorks Summit, and then the more the merrier, the more data-oriented open-source driven companies that can graduate in the public markets, I think is awesome. I think it will just help the industry. >> Operating in the open, with full transparency-- >> Shaun: On the business and the code. (laughter) >> Welcome to the party baby. This is theCUBE here at DataWorks 2017 in Munich, Germany. Live coverage, I'm John Furrier with Dave Vellante. Stay with us. More great coverage coming after this short break. (upbeat music)

(upbeat electronic music) >> Male Voiceover: Live from New York, it's the Cube, covering big data New York City 2016. Brought to you by headline sponsors Sisco, IBM, Nvidia, and our ecosystem sponsors. Now, here are your hosts. Dave Vellante and Peter Burress. >> We're back in the Big Apple. This is the Cube, the worldwide leader in live tech coverage, we're here at Big Data NYC, Big Data week is part of strata plus dupe world. Shaun Connolly is here as the vice president of strategy at Horton Works, long time friend and Cube alum, great to see you again. >> Thanks for having me, were back at the same venue last year, always a pleasure. >> Yeah, it's good, we're growing, I guess the event's growing, we haven't been over there yet, but some of our guys have, but what's it like over there? >> You know, it feels the same, some of the different use cases, I think last year was streaming, we're hearing more machine learning and things like that as far as use cases, so similar vibe. >> Yeah, so things are evolving, right? How's Hortonworks evolving? >> We're continuing to report our quarterly earnings as the only publicly traded company in this space, things from a business perspective are doing well. Our connected data platforms strategy which we unveiled at the beginning of this year, which is written data in motion and data at rest and enabling these new gen transformational applications continues to play out. The data in motion piece is sort of decoupled and unrelated to a hadou platform, it's really about acquiring and handling the FedEx for data delivery type notions, data logistics, secure transmission. That's based on the Apache Ni-Fi tech that was originally built sort of at the NSA over the past eight years, so. Really a nice robust piece of technology that we've pushed out to the edge in our latest release so you can really skin these down into a secure site to site transmission. A lot of sophisticated capabilities there, so we're seeing a lot of uptake in that sort of architectural vision, the products are maturing, both on prem and in the cloud, things are pretty exciting. >> Well this cloud thing seems pretty real. (Shaun laughing) You can get a lot of traction, right? Everybody kind of knew it was coming, but what are you seeing? >> Yeah so it was, I guess I started the journey back in 2009, when I was at Springsource in Paul Moretz was CEO of Vmware, and that was pre sort of cloud at that time. We were talking about this notion of platform as a service, and things like that. And that resonated really well with folks back then, but their main ask was how do you solve the data problem, how do actually get the data to the apps that need it. Fast forward to 2016, I think it's been a lot of open source innovation, you know a lot of commercial innovation, the rise of cloud for providing a fast path to value, booting up these used cases, it's a fascinating transition to watch. Many of our customers are, people use the word hybrid. What that means to me is they'll have data center workloads, or multi data center workloads, but they also have cloud workloads, sometimes even multi cloud workloads, and that inherent nature of the beast is why I use sort of the term of connected data architecture, is y%ou need an architecture that inherently is built to span that fact. And that's just increasing, that's just the world we live in today. >> But the fact is because there speed of light issues, there's data fidelity issues. >> Shaun: Yup. >> There's other types of things, how are you starting to see those practical and very physical realities start to impact the whole concept of design as it pertains to data, as it pertains to analytics, as it pertains to the infrastructure associated with the two? >> Yup, so at Hoop Summit that we had last June, there were really some really good sessions that were there. Folks like Comcast, Ford, Schlumberger talked about this connected data architecture reality, right. If you look at like, I like to use the connected car ecosystem as a good example, cause there were insurance providers and others that were sort of speaking on behalf of that, where you have the cars and other data that's inherently born up there, and there's a slug of use cases that are around edge analytics, streaming analytics, time series analytics, and we're seeing that, and I think the cloud lends itself really well for those types of use cases. But we also see manufacturing line data for the cars, where you want to get a 360 degree view of operational issues, and dovetail that with manufacturing line elements, and that's inherently what we've seen is, what your classic sort of on prem data wake, in quotes has been used for so you can get that 360 degree operational intelligence type of analytics to come out of that, right? So that type of use case, whether you apply it to oil and gas and having the sensors on the oil rigs, in the Schlumberger example, that pattern is repeating itself across different industries. British Gas, in Europe talks about how they're fundamentally changing the nature of the relationship with their customer because of the smart meters, and their connectivity in the homes and they can deliver a better value there. So that's inherently connected data realm, there's cloud use cases, and in the data center use cases. So I see these use cases, you know, they'll be use case specific in applications that are sprinkled across that fabric, if you will. And that's really what we're seeing. >> At our panel last year here in this venue, we would talk about a lot of things, one was the market, the sort of ebbs and flows you just mentioned, you guys are the only public player, Talon's joining that crew. >> Shaun: Yeah. Excellent. >> You've seen some. >> Shaun: We need more. >> We need more, we've seen some MNA, Plat 4 taken out, I don't know if that was, I don't know the specifics of that deal. Might have been an acu hire, might not, I don't know. And Data Mere did a raise, so you're seeing these rip currents, in all directions. What are you seeing in the marketplace, lot of funding early on, lot of players, lot of innovation, and now it's like, okay, the music at some point's going to stop, but. >> Yeah. >> What's your take? >> So in our last call, and I think we repeated it on our prior earnings call, you know, our focus and then we put out there in our earnings, in our Q3 earnings will sort of reiterate where we stand is, we basically said Q4 is when we look to go adjust to even or break even. >> Right. >> And then 2017 we'll go from there. We reiterated that guidance, we had a little over 62 million in billings for the quarter, so the business is pretty robust and growing, it's a. We're only five years into this, I mean we're just five years old, so it's a very fast pace of billings growth, right? That's almost a 250 million run rate, right? For exiting that quarter. You know, annual run rate. So we see a lot of the use cases really continuing to move on. I think what I and what our customers ask us is, they're on a digital transformation journey, and they want the industry to start talking about those types of business value drivers, right? So I think we should expect to see a transition from the piece parts animals in the zoo and what's the right open source piece of technology, and more why should you care, right? As a business, how is this transforming what you do? How does this open up new lines of business? We started seeing that at Hadoop Summit when I think about two dozen customers were sharing, very rich stories, right? So that's where things are. But I think running a company is, you have to run it with a certain sense of rigor and that was one of the reasons why we chose to go public, right? >> So, we by the way, we totally agree that customers want to stop talking about digital business in platitudes and start actually identifying specifically what is it about it that's new and different, and find ways of doing it. >> Shaun: Sure. >> Coming back to the issue, however, of how you go about making some of those transformations relevant. There is clearly a knowledge gap about what digital business is, what it isn't, certainly. But there's also a fair amount of skills that have yet to be developed, that are required for a lot of the use cases that companies are pursuing. Not just in terms of implementing the technology appropriately, but actually constructing and conceptualizing the use cases. >> Shaun: Sure. >> So that suggests that there's two paths forward. There's a path forward where we can do a better job of diffusing knowledge through people, and there's a path for where we can do a better job of building software that's easier to use. >> Shaun: Mm hmm. >> And there's both. How do you see this playing out over the course of the next few years? >> Yep, and I think in any new area as technology's emerging, like one of the things I use is Apache Software Foundation. Literally every other week there's a new data related Apache project that lands, so it's. It can be really confusing, but it's exhilarating from the fact of I participate in that, and I try and figure out what ones we can harness in a consumable platform, whether it's one prem or a cloud or what have you. What use cases can it light up? So I think you have both of those vectors, and it really depends on, I like to use the classic software adoption curve, you have a lot of the left side of the chasm folks, where a lot of this new stuff is going to be sharper edges, and they're always going to be trailblazers, right? But we are also seeing a lot of some of these advanced analytics. Some of these new solutions are automating the pipeline, so you can actually let the infrastructure and these engines do more of the thinking for you, so you get your model's output. Even to the point where you run multi model simulation in parallel, and out pops the best fit. That's where things will head, right? I think it's just a matter of the technology maturing, making sure we address things like security, metadata management, governance, and those illities that the enterprise expects, and then really forcing ourselves to simplify and automate as much as possible, right. And that was one of the reasons on that last one why in October 2011 we basically chose Teradata and Microsoft as key partners. Teradata because in 2011, clearly, right? >> Peter: Teradata. >> They're Teradata, right? Microsoft because it simplifies technologies and brings them to billions of users, right? And so we need to do both, you need to harden it, right? For the most rigorous large enterprises, but you need to simplify it for the meat of the market adopters, right? The early majority and late majority. You have to do both. >> Shaun, you're sitting across from a CEO, and you have to say these are the three things you need to do to enact this digital transformation. >> Shaun: Yup. >> What are the three things you're telling him? >> So, I think they need as a business to identify how do they want to leverage data as capital, and what pockets of value do they want to go chase, number one. Number two, how is their business being impacted by the fact that you have the rise of IOT and inherently increasing connected society and infrastructure. How is that impacting them? And number three is, how do they evolve what they're used to doing, right? You have to align it, exactly. >> Because that's really many respects of, I like to say there's a difference between invention and innovation. Invention is the engineering act, innovation's a social act, it's adopting those new practices >> Shaun: Exactly. >> That actually allow you to enact the invention and generate revenue. >> Exactly. Now in our space, I think we have a very compelling renovate value prop which is a cost savings where you can drive cost out, but the innovate use cases are the ones. Like if all you're going to do is renovate, then you will fail, you will stall, right? Because it's not a balance of cost savings. It's about how do you actually transform your business. And in the case of like the British Gas example, I used that as how they engaged that end consumer is fundamentally changing. So that's the question I put back in those conversations is how do you want to evolve your business and how do you leverage data as capital? Because the beauty of data as capital is you can actually generate multiple lines of interest off of a single data set, cause you can derive different insights off of that, so it's not like a dollar, right? And single compound, it's multiple compound annual interest rate on that. But they have to chase the right use cases. >> Although, we've also learned from great design that if you do the right thing better, you get rid of a lot waste and so coming back to your point, doing the right thing better often leads to cost savings. >> Yes. Exactly. One inherently can drive the other, but if you're just driving it then >> Peter: Just doing cost. >> You're not going to transform your buisiness. >> Peter: You're just going to continue to do the same or wrong things worse. >> Shaun: Exactly. >> Or wrong things cheaper. >> And that's difficult for enterprises. Because there's a certain way to do data management inherently inside in a highly structured manner, but I do think the rise of like IOT, I don't see as a market, I see it as infinite slices of prosciutto, right? (laughter) It's a very thinly sliced set of market opportunities, right? But it's forcing people to think about different use cases and how that might impact their business. >> We see those set of capabilities. >> Yup. >> Which leads to the prosciutto. >> Exactly. >> So you, and come up with a really nice sandwich. (laughter) >> It's my Italian. >> Let's keep going. >> I'm loving it. >> I'm getting a little hungry. >> You have always made a big deal out of your partnerships not being barney deals but being deep integration relationships. So you mentioned two here, Teradata and Microsoft. As the cloud becomes more prevalent, as things evolve and machine learning becomes the hot buzzword, et cetera. How have you evolved those relationships specifically in terms of the integration work that you've done? Have you kept up that engineering ethos, or? >> And that was the thing. With Microsoft, we clearly spent a lot of sweat equity on the Azure HDInsight service, but if you look at that ecosystem, they have Azure machine learning, right? They have a whole raft of services, right, that you can apply to the data when it's in the cloud, right? So how that piece integrates with the broader ecosystem of services is a lot of engineering work as well. I've always said, there's work to be done in our green box, but the other half of the work is how it plumbs into the rest. And so if you look at the AWS ecosystem, how do you optimize for S3 as a storage tier, and ephemeral workloads where HDFS is maybe a caching mechanism but it's not your primary storage, right? It brings up really interesting integration modes and how you actually bring your value out into really interesting use cases, right? So I think it's opened up a lot of areas where we can drive a lot more integration, drive the open source tech in a way that's relevant for those use cases. >> Alright, we got to go but, summit in Tokyo, is it next month? >> Yes, end of October. >> End of October. >> It's our first time, so primarily summits have been US and Europe. We had Melbourne end of August, and we have Tokyo end of October. I'll be, they're bringing the right hander out of retirement, so I'll be onstage in Tokyo. (laughing) I've usually been behind the scenes. >> Throwing the slurve? (laughter) >> Yeah, exactly. So I'm looking forward to it, it'll be exciting. >> Alright, good, and then 17, you're going to start again in the spring. >> Shaun: Yup. >> You're in Munich. >> Shaun: Yup. Munich. >> You were in Dublin last year, you're moving to Munich this year. >> Shaun: Exactly. >> Hopefully the Cube will be back, in Munich, alright? >> We love you guys, you guys do a good job. >> Let's make it happen, do good stuff in Europe, so thanks again for coming out. >> Shaun: Thanks for having me. >> Always a pleasure. Alright, keep it right there, we'll be back right after this short break. This is the Cube, we're live from New York City. ( upbeat electronic music)

San Francisco extracting the signal from the noise it's the cube covering vmworld 2015 brought to you by VM world and its ecosystem sponsors now your host Stu miniman and Brian Grace Lee welcome back this is the cube SiliconANGLE TVs live production of vmworld 2015 here in moscone north san francisco happy to have back on this segment we're actually gonna dig into some of the networking pieces Brian Grace Lee and myself here hosting it Sean Walsh repeat cube guest you know in a new role though so Sean welcome back here now the general manager of the ethernet business at qlogic thanks for joining us thank you thanks for having me alright so I mean Sean you know we're joking before we start here I mean you and I go back about 15 years I do you know those that know the adapter business I mean you know Jay and I've LJ core business on you've worked for qlogic before you did a stint in ml accent and you're now back to qlogic so why don't we start off with that you know what brought you back to qlogic what do you see is the opportunity there sure um I'll tell you more than anything else what brought me back was this 25 gig transition it's very rare and I call it the Holy trifecta of opportunity so you've got a market transition you actually have a chip ready for the market at the right time and the number one incumbent which is Intel doesn't have a product I mean not that they're late they just don't have a product and that's the type of stuff that great companies are built out of are those unique opportunities in the market and you know more than anything else that's when brought me back to qlogic alright so before we dig into some of the ethernet and hyperscale piece you know what what's the state of fibre channel Sean you know what we said is in those fiber channel the walking dead is it a cash cow that you know qlogic be a bit of milk and brocade and the others in the fibre channel business for a number years you know what's your real impression of fibre channel did that yeah so you know look fibre channel is mature there's no question about it is that the walking dead no not by any stretch and if it is the walking dead man it produces a lot of cash so I'll take that any day of the year right The Walking Dead's a real popular show so fibre channel you know it's still it's still gonna be used in a lot of environments but you know jokingly the way that I describe it to people is I look at fibre channel now is the Swiss bank of networks so a lot of web giant's by our fiber channel cards and people will look at me and go why do they do that because for all the hype of open compute and all the hype of the front end processors and all the things that are happening when you click on something where there's money involved that's on back end Oracle stuff and it's recorded on fibre channel and if there's money involved it's on fibre and as long as there's money in the enterprise or in the cloud I'm reasonably certain fibre channel will be around yeah it's a funny story I remember two years ago I think we were at Amazon's reinvent show and Andy Jesse's on stage and somebody asked you know well how much of Amazon is running amazoncom is running on AWS and its most of it and we all joke that somewhere in the back corner running the financials is you know a storage area network with the traditional array you know probably atandt touched by fibre channel absolutely i mean we just did a roll out with one of the web giants and there were six different locations each of the each of the pods for the service for about 5,000 servers and you know as you would expect about 3,000 on the front access servers there's about 500 for pop cash that was about 15 maybe twelve thirteen hundred for the for the big data and content distribution and all those other things the last 500 servers look just like the enterprise dual 10 gigs dual fibre channel cards and you know I don't see that changing anytime soon all right so let's talk a bit a little bit 25 gig Ethernet had an interview yesterday with mellanox actually who you know have some strong claims about their market leadership in the you know greater than 10 gig space so where are we with kind of the standards the adoption in queue logical position and 25 gig Ethernet sure so you know obviously like everyone in this business we all know each other yeah and when you look at the post 10 gig market okay 40 gigs been the dominant technology and I will tip my hat to mellanox they've done well in that space now we're both at the same spot so we have exactly the same opportunity in front of us we're early to market on the 25 we have race to get there and what we're seeing is the 10 gig market is going to 25 pretty straightforward because I like the single cable plant versus the quad cable plant the people that are at 40 aren't going to 50 they're going to transition straight to 100 we're seeing 50 more as a blade architecture midplane sort of solution and that's where at right now and I can tell you that we have multiple design win opportunities that we're in the midst of and we are slugging it out with these guys everything and it will be an absolute knife fight between us and mellanox to see who comes out number one in this market obviously we both think we're going to win but at the end of the day I've placed my bet and I expect to win all right so Sean can you lay out for us you know where are those battles so traditionally the network adapter it was an OEM type solution right I got it into the traditional server guys yeah and then it was getting the brand recognition for the enterprise customers and pushing that through how much is that traditional kind of OEM is it changing what's having service providers and those hyperscale web giants yes so there's there's three fundamental things when you look at 25 gig you gotta deal with so first off the enterprise is going to be much later because they need the I Triple E version that has backwards auto-negotiation so you know that's definitely a 17 18 pearly transition type thing the play right now is in the cloud and the service provider market where they're rolling out specific services and they're not as concerned about the backwards compatibility so that's where we're seeing the strength of this so they're all the names that you would expect and I have to say one of the interesting things about working with these guys is there n das or even nastier than our Liam India is they do not want you talking about them but it is very much that market where it's a non traditional enterprise type of solution for the next 12-18 months and then as we roll into that next gen around the pearly architecture where we all have full auto-negotiation that's where you're going to see the enterprise start to kick in yeah what what what are the types of applications that are driving this this next bump in speed what is it is it video is it sort of east and west types of application traffic is a big data what's what's driving this next bump so a couple of things you would expect which would be the you know certainly hadoop mapreduce you know those sorts of things are going there the beginning of migration to spark where they're doing real-time analytics versus post or processing batch type stuff so there they really care about it and this is where our DMA is also becoming very very popular in it the next area that most people probably don't think of is the telco in a vspace is the volume as these guys are doing their double move and there going from a TCA type platforms running mostly one in ten they're going to leave right to 25 and for them the big thing is the ability to partition the network and do that virtualization and be able to run deep edk in one set of partitions standard storage another set of partitions in classic IP on the third among the among the few folks that you know you would expect in that are the big content distribution guys so one of the companies that I can mention is Netflix so they've already been out at their at 40 right now and you know they're not waiting for 50 they're going to make another leap that goes forward and they've been pretty public about those types of statements if you look at some of the things that they talked about at NDF or IDF and they're wanting to have nvme and direct gas connection over i serve that's driving 100 gig stuff we did a demo at a flash memory summit with Samsung where we had a little over 3 million I ops coming off of it and again it's not the wrong number that matters but it's that ability to scale and deal with that many concurrent sessions that are driving it so those are the early applications and I don't think the applications will be a surprise because they're all the ones that have moved to 40 you know the 10 wasn't enough 40 might be too much they're going to 25 and for a lot of the others and its really the pop cash side that's driving the hunter gig stuff because you know when that Super Bowl ad goes you got to be able to take all that bandwidth it once yeah so Sean you brought up nvme maybe can you discuss a little bit you know what are the you know nvm me and some of these next-generation architectures and what's the importance to the user sure so nvme is basically a connection capability that used to run for hard drives then as intel moved into SSDs they added this so you had very very high performance low latency pci express like performance what a number of us in this business are starting to do is then say hey look instead of using SAS which is kind of running out of gas at 12 gig let's move to nvme and make it a fabric and encapsulate it so there's three dynamics that help that one is the advent of 25 50 100 the second is the use of RDMA to get the latency that you want and then the third is encapsulation I sir or the ice cozy with RDMA together and it's sort of that trifecta of things that are giving very very high performance scale out on the back end and again this is for the absolute fastest applications where they want the lowest latency there was an interesting survey that was done by a university of arizona on latency and it said that if two people are talking and if you pause for more than a quarter of a second that's when people change their body language they lean forward they tilt their head they do whatever and that's kind of the tolerance factor for latency on these things and again one of the one of the statements that that Facebook made publicly at their recent forum was that they will spend a hundred million dollars to save a millisecond because that's the type of investment that drives their revenue screen the faster they get clicks the faster they generate revenue so when you think of high frequency trading when you think of all those things that are time-sensitive the human factor and that are going to drive this all right so storage the interaction with networking is you know critically important especially to show like this at vmworld I mean John you and I talked for years is it wasn't necessarily you know fibre channel versus the ethernet now it's changing operational models if I go use Salesforce I don't think about my network anymore I felt sort of happen to used Ethernet it's I don't really care um hyper convergence um when somebody buys hyper convergence you know they just kind of the network comes with it when I buy a lot of these solutions my networking decision is made for me and I haven't thought about it so you know what's that trend that you're seeing so the for us the biggest trend is that it's a shifting customer base so people like new tonics and these guys are becoming the drivers of what we do and the OEMs are becoming much more distribution vehicles for these sorts of things than they are the creators of this content so when we look at how we write and how we build these things there's far more multi-threading in terms of them there's far more partitions in terms of the environment because we never know when we get plugged into it what that is going to be so incorporating our l2 and our RDMA into one set of engine so that you always have that hyper for it's on tap on demand and you know without getting down into the minutia of the implementation it is a fundamental shift in how we look at our driver architectures you know looking at arm based solutions and micro servers versus just x86 as you roll the film forward and it also means that as we look at our architectures they have to become much smaller and much lighter so some of the things that we traditionally would have done in an offload environment we may do more in firmware on the side and I think the other big trend that is going to drive that is this move towards FPGAs and some of the other things that are out there essentially acting as coprocessors from you you mentioned earlier Open Compute open compute platform those those foundations and what's going on what is what what's really going on there i think a lot of us see the headlines sometimes you think about it you go okay this is an opportunity for lots of engineering to contribute to things but what's the reality that you're dealing with the web scale folks sure if they seem like the first immediate types of companies that would buy into this or use it what's the reality of what's going on with that space well obviously inside the the i will say the web scale cloud giant space you know i think right now if you look at it you've got sort of the big 10 baidu Tencent obama at amazon web as your microsoft being those guys and then you know they are definitely building and designing their own stuff there's another tier below that where you have the ebays the Twitter's the the other sorts of folks that are in there and you know they're just now starting that migration if you look at the enterprise not a big surprise the financial guys are leading this we've seen public statements from JPM and other folks that have been at these events so you know I view it very much like the blade server migration I think it's going to be twenty twenty-five percent of the overall market whether we whether people like to admit it or not good old rack and stack is going to be around for a very long time and you know they're there are applications where it makes a lot of sense when you're deploying prop private cloud in the managed service provider market we're starting to see a move into that but you know if you say you know what's the ten year life cycle of an architect sure i would say that in the cloud were probably four or five years into it and the enterprise were maybe one or two years into it all right so what about the whole sdn discussion Sean you know how much does qlogic play into that what are you seeing in general and you know we're at vmworld so what about nsx you know is that part of the conversation and what do you hear in the marketplace today yeah it really is part of the conversation and the interesting part is that I think sdn is getting a lot of play because of the capabilities that people want and again you know when you look at the managed service providers wanting to have large scale lower costs that's going to definitely drive it but much like OpenStack and Linux and some of these other things it's not going to be you know the guys going to go download it off the web and put it in production at AT&T you know it's going to be a prepackaged solution it's going to be embedded as part of it if you look at what Red Hat is doing with their OpenStack release we look what mirantis is doing with their OpenStack release again from an enterprise perspective and from a production in the MSP and second tier cloud that's what you're going to see more of so for us Sdn is critical because it allows us to then start to do things that we want to do for high-performance storage it allows us to change the value proposition in terms of if you look at Hadoop one of these we want to be able to do is take the storage engine module and run that on our card with our embedded V switch and our next gen ship so that we can do zero stack copies between nodes to improve latency so it's not just having RDMA is having a smart stack that goes with it and having the SDN capability to go out tell the controller pay no attention this little traffic that's going on over here you know these are not the droids you're looking for and then everything goes along pretty well so it's it's very fundamental and strategic but it's it's a game it's a market in which we're going to participate but it's not one we're going to try and write or do a distribution for okay any other VMware related activities q logics doing announcements this week that you want to share this week I would have to say no you know I think the one other thing that we're strategically working on them on with that you would expect is RDMA capabilities across vMotion visa and those sorts of things we've been one of the leaders in terms of doing genevieve which is the follow-on to VX land for hybrid cloud and that sort of thing and we see that as a key fundamental partnership technology with VMware going forward all right so let's turn back to qlogic for a second so the CEO recently left he DNA that there's a search going on so give us the company update if you will well actually there isn't a search so Jean who is gonna is going to run the ship forward as CEO we've brought in chris king who was on our board as executive chair in person chris has a lot of experience in the chip market and she understands that intimate tie that we have to that intel tick-tock model and really how you run an efficient ship driven organization you know whether we play in the systems in between level you know we're not quite the system but we're not quite the chip and understanding that market is part of what she does and the board has given us the green light to continue to go forward develop what we need to do in terms of the other pieces jean has a strong financial background she was acting CEO for a year between HK and simon aires me after Simon left so she's got the depth she knows the business and for us you know you know it's kind of a non op where everything else is continuing on as you would expect yeah okay last question I have for you Sean I mean the dynamics change for years you know what there was kind of the duopoly Xin the market I mean it was in tellin broadcom oh yeah on the ethernet side it was Emulex and amp qlogic it's a different conversation today I mean you mentioned Intel we talked about mellanox don't you logic you know your old friend I don't lie back on a vago bought broadcom and now they're called broadcom I think so yeah so you know layout for us you know kind of you know where you see that the horses on the track and you know what excites you yeah so again you know if you look at the the 10 gig side of the business clearly intel has the leadership position now we're number two in the market if you look at the shared data that's come out you know the the the Emulex part of a vago has been struggling in losing chair then we have this 25 gig transition that came in the market and that was driven by broadcom and you know for those of us who have followed this business they I think everyone can appreciate the irony of avago of avago buying Emulex and then for all the years we tried to keep him separate bringing them back together was but we-we've chuckled over a few beers on that one but then you've got this 25 gig transition and you know the other thing is that if you look at so let me step back and say the other thing on the 10 gig market is was a very very clear dividing line the enterprise was owned by the broadcom / qlogic emulex side the cloud the channel the the the appliance business was owned by Intel mellanox okay now as we go into this next generation you've got us mellanox and the the original broadcom team coming in with 25 game we've all done something that gets us through this consortium approach we're all going to have a night Ripley approach from there and Intel isn't there you know we haven't seen any announcements or anything specific from Emulex that they've said publicly in that space so right now we kind of view it as a two-horse race we think from a software perspective that our friends at at broadcom com whatever we want to call them or bravado I think is how r CT / first tool that I don't think they have a software depth to run this playbook right now and then we have to do is take our enterprise strength and move those things like load balancing and failover and the SDN tools and end par and all the virtualization capabilities we have we got to move those rapidly into the into the cloud space and go after it for us it means we have to be more open source driven than we have been in the past it means that we have a different street fight for every one of these it represents a change in some of the sales model and how we go to market so you know not to say that we're you know we we've got all of everything wrapped up and perfect in this market but again right time right place and this will be the transition for another you know we think three to five years and there's there's still a lot of interesting things that are happening ironically one of the most interesting things I think it's got to happen in 25 is this use of the of the new little profile connectors I think that will do more to help the adoption of 25 gig in Hunter gig where you can use the RCX or r XC connector there's our cxr see I forgot the acronym but it kind of looks like the firewire HDMI connectors that you have on your laptop's now and now imagine that you can have a car that has that connector in a form factor that's you know maybe a half inch square and now you've got incredible port density and you can dynamically change between 25 50 and 100 on the fly well let Sean Sean you know we've always talked there's a lot of complexity that goes in under the covers and it's the interest who's got a good job of making that simple and consumable right and help tried those new textures go forward all right Sean thank you so much for joining us we'll be right back with lots more coverage including some more networking in-depth conversation thank you for watching thanks for having me

>>And welcome back to the Cube everyone. I'm John Walls to continue our coverage here of AWS Reinvent 22. We're part of the AWS Startup Showcase is the global startup program that AWS so proudly sponsors and with us to talk about what they're doing now in the AWS space. Shaun Knapps, the CEO of AS Send IO and Sean, good to have here with us. We appreciate >>It. Thanks for having me, >>John. Yeah, thanks for the time. First off, gotta show the t-shirt. You caught my attention. Big data is a cluster. I don't think you get a lot of argument from some folks, right? But it's your job to make some sense of it, is it not? Yeah. Tell us about a Send io. >>Sure. As Send IO is a data automation platform. What we do is connect a lot of the, the disparate parts of what data teams do when they create ETL and E o T data pipelines. And we use advanced levels of automation to make it easier and faster for them to build these complex systems and have their world be a little bit less of a, a cluster. >>All right. So let's get into automation a little bit then again, I, your definition of automation and how you're applying it to your business case. >>Absolutely. You know, what we see oftentimes is as spaces mature and evolve, the number of repetitive and repeatable tasks that actually become far less differentiating, but far more taxable if you will, right to the business, start to accumulate as those common patterns emerge. And, and, you know, as we see standardization around tech stacks, like on Amazon and on Snowflake and on data bricks, and as you see those patterns really start to, to formalize and standardize, it opens up the door to basically not have your team have to do all those things anymore and write code or perform the same actions that they used to always have to, and you can lean more on technology to properly automate and remove the, the monotony of those tasks and give your teams greater leverage. >>All right. So, so let's talk about at least maybe your, the journey, say in the past 18 months in terms of automation and, and what have you seen from a trend perspective and how are you trying to address that in order to, to meet that need? >>Yeah, I think the last 18 months have become, you know, really exciting as we've seen both that, you know, a very exciting boom and bust cycle that are driving a lot of other macro behaviors. You know, what we've seen over the last 18 months is far greater adoption of the, the standard, what we call the data planes, the, the architectures around snowflake and data bricks and, and Amazon. And what that's created as a result is the emergence of what I would call is the next problem. You know, as you start to solve that category of how >>You, that's it always works too, isn't >>It? Yeah, exactly. Always >>Works that >>This is the wonderful thing about technology is the job security. There's always the next problem to go solve. And that's what we see is, you know, as we we go into cloud, we get that infinite scale, infinite capacity, capacity, infinite flexibility. And you know, with these modern now data platforms, we get that infinite ability to store and process data incredibly quickly with incredible ease. And so what, what do most organizations do? You take a ton of new bodies, like all the people who wanted to do those like really cool things with data you're like, okay, now you can. And so you start throwing a lot more use cases, you start creating a lot more data products, you start doing a lot more things with data. And this is really where that third category starts to emerge, which is you get this data mess, not mesh, but the data mess. >>You get a cluster cluster, you get a cluster exactly where the complexity skyrockets. And as a result that that rapid innovation that, that you are all looking for and, and promised just comes to a screeching halt as you're just, just like trying to swim through molasses. And as a result, this is where that, that new awareness around automation starts really heightened. You know, we, we did a really interesting survey at the start of this year, did it as a blind survey, independent third party surveyed, 500 chief data officers, data scientists, data architects, and asked them a plethora of questions. But one of the questions we asked them was, do you currently or do you intend on investing in data automation to increase your team's productivity? And what was shocking, and I was very surprised by this, okay, what was shocking was only three and a half percent said they do today. Which is really interesting because it really hones in on this notion of automation is beyond what a lot of a think of, you know, tooling and enhancements today, only three and a half percent today had it, but 88.5% said they intend on making data automation investments in the next 12 months. And that stark contrast of how many people have a thing and how many people want that benefit of automation, right? I think it is incredibly critical as we look to 2023 and beyond. >>I mean, this seems like a no-brainer, does it not? I mean, know it is your business, of course you agree with me, but, but of course, of course what brilliant statement. But it is, it seems like, you know, the more you're, you're able to automate certain processes and then free up your resources and your dollars to be spent elsewhere and your, and your human capital, you know, to be invested elsewhere. That just seems to be a layup. I'm really, I'm very surprised by that three and a half percent figure >>I was too. I actually was expecting it to be higher. I was expecting five to 10%. Yeah. As there's other tools in the, the marketplace around ETL tools or orchestration tools that, that some would argue fit in the automation category. And I think the, what, what the market is telling us based on, on that research is that those themselves are, don't qualify as automation. That, that the market has a, a larger vision for automation. Something that is more metadata driven, more AI back, that takes us a greater leap and of leverage for the teams than than what the, the existing capabilities in the industry today can >>Afford. Okay. So if you got this big leap that you can make, but, but, but maybe, you know, should sites be set a little lower, are you, are you in danger of creating too much of an expectation or too much of a false hope? Because you know, I mean sometimes incremental increases are okay. I >>Agree. I I I think the, you know, I think you wanna do a little bit of both. I think you, you want to have a plan for, for reaching for the stars and you gotta be really pragmatic as well. Even inside of a a suni, we actually have a core value, which is build for 10 x plan for a hundred x and so know where you're going, right? But, but solve the problems that are right in front of you today as, as you get to that next scale. And I think the, the really important part for a lot of companies is how do you think about what that trajectory is and be really smart around where you choose to invest as you, one of the, the scenes that we have is last year's innovation is next year's anchor around your neck. And that's because we, we were in this very fortunately, so this really exciting, rapidly moving innovative space, but the thing that was your advantage not too long ago is everybody can move so quickly now becomes commonplace and a year or two later, if you don't jump on whatever that next innovation is that the industry start to standardize on, you're now on hook paying massive debt and, and paying, you know, you thought you had, you know, home mortgage debt and now you're paying the worst of credit card debt trying to pay that down and maintain your velocity. >>It's >>A whole different kind of fomo, right? I'm fair, miss, I'm gonna miss out. What am I missing out on? What the next big thing exactly been missing out >>On that? And so we encourage a lot of folks, you know, as you think about this as it pertains to automation too, is you solve for some of the problems right in front of you, but really make sure that you're, you're designing the right approach that as you stack on, you know, five times, 10 times as many people building data products and, and you, you're, you're your volume and library of, of data weaving throughout your, your business, make sure you're making those right investments. And that's one of the reasons why we do think automation is so important and, and really this, this next generation of automation, which is a, a metadata and AI back to level of automation that can just achieve and accomplish so much more than, than sort of traditional norms. >>Yeah. On that, like, as far as Dex Gen goes, what do you think is gonna be possible that cloud sets the stage for that maybe, you know, not too long ago seem really outta reach, like, like what's gonna give somebody to work on that 88% in there that's gonna make their spin come your way? >>Ah, good question. So I, I think there's a couple fold. I, you know, I think the, right now we see two things happening. You know, we see large movements going to the, the, the dominant data platforms today. And, and you know, frankly, one of the, the biggest challenges we see people having today is just how do you get data in which is insanity to me because that's not even the value extraction, that is the cost center piece of it. Just get data in so you can start to do something with it. And so I think that becomes a, a huge hurdle, but the access to new technologies, the ability to start to unify more of your data and, and in rapid fashion, I think is, is really important. I think as we start to, to invest more in this metadata backed layer that can connect that those notions of how do you ingest your data, how do you transform it, how do you orchestrate it, how do you observe it? One of the really compelling parts of this is metadata does become the new big data itself. And so to do these really advanced things to give these data teams greater levels of automation and leverage, we actually need cloud capabilities to process large volumes of not the data, but the metadata around the data itself to deliver on these really powerful capabilities. And so I think that's why the, this new world that we see of the, the developer platforms for modern data cloud applications actually benefit from being a cloud native application themselves. >>So before you take off, talk about the AWS relationship part of the startup showcase part of the growth program. And we've talked a lot about the cloud, what it's doing for your business, but let's just talk about again, how integral they have been to your success and, and likewise what you're thinking maybe you bring to their table too. Yeah, >>Well we bring a lot to the table. >>Absolutely. I had no doubt about that. >>I mean, honestly, it, working with with AWS has been truly fantastic. Yep. You know, I think, you know, as a, a startup that's really growing and expanding your footprint, having access to the resources in AWS to drive adoption, drive best practices, drive awareness is incredibly impactful. I think, you know, conversely too, the, the value that Ascend provides to the, the AWS ecosystem is tremendous leverage on onboarding and driving faster use cases, faster adoption of all the really great cool, exciting technologies that we get to hear about by bringing more advanced layers of automation to the existing product stack, we can make it easier for more people to build more powerful things faster and safely. Which I think is what most businesses at reinvent really are looking for. >>It's win-win, win-win. Yeah. That's for sure. Sean, thanks for the time. Thank you John. Good job on the t-shirt and keep up the good work. Thank you very much. I appreciate that. Sean Na, joining us here on the AWS startup program, part of their of the Startup Showcase. We are of course on the Cube, I'm John Walls. We're at the Venetian in Las Vegas, and the cube, as you well know, is the leader in high tech coverage.

>>Hey, everyone, welcome back to the cubes on the ground. Coverage of Pedro Duty Summit 22. I'm your host, Lisa Martin. I'm very excited to be joined by Manjula Toleration, the S VP and chief customer officer at page duty. Welcome to the programme. >>Thank you, Lisa. It's great to have chatted with you this morning as well, >>isn't it? I have had the great fortune of watching her fireside chat. That Mandela did, um, with is the logic monitor that was >>she of logic. >>And I thought, She's got great energy. We're gonna have a great conversation. So let's talk about the customer experience these days. One of the things I think that's been very, very short supply in the pandemic is patience. I know it's been in short supply with me and, of course, in our consumer lives in our business lives. The customer experience, though, has been something that every company needs to really pin their businesses on. Because if it's not a good customer experience, that customer goes right to social media. They churn. They leave, but they take others down with them. Talk to me about how the customer experience fits into this year's summit. Especially for this, we have to be ready for everything in a digital world environment. >>I love this question, and I reason I love this question is I even look at my own behaviour. But before we get into that, let's talk about data. I'm just reading an article. Mackenzie did a survey. Did you know that from pre covid to today customer interactions that have moved to digital are from 41% to 65%? That's exponential. That's huge. And guess what? We've all got impatient. You become like our kids, and I think about myself as an individual. If I need tied right now to do my laundry, I need it right now. So if I go to Costco website to order it so that it can get delivered in the next hour, and even if there's a second glitch on it, I'll swap over to Amazon and I'll swap over to target. That's what's happening in real world, whether it be to see or it's b to B, and why is it important to the points we are making in terms of ready for anything in the world of digital everything. It's important because customers are impatient. It's a digital world. I don't walk into the store to do any interactions anymore. And the reality of all of this is it's grounded on trust. Customers have to trust you and the window of choice not only in the B two b, but a lot in the enterprise and the B to B world. It's about trust, right? And what does pager duty do? Pager duty is at the heart of this pager. Duty is at the heart of making every second matter, and every second is equal to money. Absolutely. And it's about customer experience. And it isn't about just the experience where of an employee who may not sleep at night because they got a disruption due to an incident which is also super important during the mass resignation. But it is also about the CEO agenda and the boardroom, because how our CEO s driving customer trust in order to keep customers and drive this new era of digital everything as digital transformation is occurring. Well, >>I know patriarchy was doing that. I had the chance to watch um, CEO Jennifer to, uh, fireside chat, her keynote, and then her fireside chat with the CEO of Doc, You Sign And you. The Storey was very bidirectional, very symbiotic in terms of the trust that he has in Houston and Austin has and Pedro duty. But talk to me as the chief customer officer. What is it that's unique about how patriarchy works with its customers? 21,000 plus now to build and maintain that trust, especially in such volatile times? >>You know what is really cool? I joined page duty a little less than two years ago. In the next few days, it'll be two years now. What do I find exciting as a chief customer officer and the go to market teams differentiation versus other customers? We had a born SAS company and what do we have access to form our customers? We have access to their operations data and that combination of our core values that is championing the customer and the data science that we have about how customers are using our data is a differentiation. That's the magic. So if you think about why pager duty is bringing this level of trust to the customers, it's because we know how many and let's take an example. Employee retention, mass resignation. We know which employee was called. How many times at night during an outage. Can we give that guidance to managers and leaders in order to drive that trust? Absolutely. And on the other hand, we are driving amazing return on investment at the executive levels for the customer experience that they are driving. So Peter Duty is becoming the trusted advisor all the way from practitioners, where we are improving their work life balance to the executive levels, >>improving work. Life balance is so critical. There was a stat that Sean Scott shared this morning that that was looking at the amount of work volume from 2020 compared to 2021 42% of people said, I am working more hours. I don't think I've ever heard anyone say, Can I work more? Please? No. That work life balance is critical, but also the ability to deliver that seamless digital customer experience that we all expect, Um, and and to get it right the first time is critical. But using that customer data as you're saying, empowering the organisations, not just the customer support folks or the SRS or the develops folks but all the way up to the C suite to ensure that their brand reputation is valuable, it's maintained, and that trust is really bidirectional. That's the secret sauce. >>You're absolutely right. You know, there's a different dimension to this as well. We think about how we're using customer data in order to achieve the results. We want three vectors here. Number one is we'll use customer data to really understand what is best in class on up time. What is the best in class to reduce noise during alert, what is best in best in class for customer service operations? And because we have customer data, we can benchmark we can benchmark. What industry? What's happening in the financial services industry? What's happening in the technology industry? What's happening in the retail industry. Our customers love that, so we will share with them. The customer success organisation, especially the customer success managers, will go in and meet with the customers and say This is where you stand in reference to your peers and customers love here about that. This is the differentiated value proposition, right? The second thing that our customer success managers do is share with the customers This is where you are in reference to your peers in your vertical other vertical. But let me tell you how you can improve your deployment, the performance of our technology and you're all operating model. As a result of the data we've got, >>there's the proactive nous. That's another differentiator of of what I was hearing today from pager duty. That you're enabling those CSM is to be proactive when so often many are reactive, and it's the customer that's found the problem first. >>Yes, I'll even talk more about the reactive to proactive. We build a methodology, and I'm sure Shaun Scott covered it as well, which is a maturity curve moving from reactive to proactive because so many of our customers are saying we are reacting when we have a disruption on our digital platform, but 30% of the times we are hearing from customers before we are hearing from ourselves. So how do we become proactive? And how does that data signs actually start showing the signs when a potential disruption could occur? And that is about moving reactive to overall proactive. I'd also like to add one more dimension to this, you know, when customers are doing really well. They're optimised on our platform. They don't want to hear from our post sales organisation all the time. They want a human touch when they need it. They want a digital touch when they need it. By using our data and our data science, we are becoming one of the best world class customer success organisations in the world and you ask why? The reason is because we are using data science in order to build and we have built the early warning system. The early warning system tells us how every single of our customers is doing in terms of both their growth as well as the risk that they may leave us. So if a customer is very healthy on a scale of 1 200 if we have a healthy customer, we will engage with them potentially just digitally and engage with them with our services are customer success team and our entire post sales organisation, when there is an optimisation and when they really need us. So data scientists being used not only in terms of giving customer the right information to grow them, but how we interact with them as well, >>that's brilliant. And there's so many organisations that I talked to across industries that cannot get that right. >>And >>so customers are being contacted too frequently. They may have said. I opted out, I don't want and then suddenly that that the first responders, the incident responders, is marketing. But that happens so frequently, you think. But there's an opportunity there. It's not rocket science, but it's about leveraging that data in an optimal, smart way. But you guys are light years ahead of a lot of other companies that haven't figured that >>out. No, we are leading edge and we are leading edge because we had a born SAS company and we've got effective operations data of the customer, and we have some of the best data scientists and the analysts within my organisation. Looking at this, engaging with the customer and only optimising the magic is data science and humans coming together to engage with customers and drive customer success for the customer and ultimately building their customer experience for their customers. >>Let's talk about some of the numbers Mandela, because they are really impressive. I was looking at some stats. You're paid your duties renewal rates are over 95%. Your growth is incredible, just coming off the biggest quarter ever, but also the gross annual benefit from customers. Talk to me about that alone. That can be up to $10 million. These read these tangible business outcomes that pager duty is delivering to customers are significant, >>and again, it's based on data science. This is not making you know what traditional companies do. Traditional companies will go to the customer and say, Tell me your business imperatives. Tell me your what are the business problems you're solving are because we have the data science. We have our oi arranging from 309 100% very impressive within a couple of months. We think about it if we are able to drive incidents that are very, very significant. And I know you've got the numbers in terms of growing our reducing the workload on very expensive engineering. Uh, individuals within the organisation from, I believe, 3200 and 25,000, and I know you have those numbers think about If 30% of your organisation focuses just on innovation and product development, worse is on an incident, and they work, life balance, the quality of life increases, the retention of the employees, and yet the company's only driving their growth. That is why our customers love us. That is why our renewal rates are greater than 95%. That's why a net retention scores are greater than 100 and 2020% over five quarters. And that is why we have more than 30% growth year over year, quarter over quarter. >>When I saw that stat Manville about you know, the number of incidents reduced, >>that >>translates to employee productivity and and looking at it in terms of FTE. From a quantity perspective, that's the first time I've seen a company and I interview a lot of companies actually put it in that perspective, and I thought, That is huge. That's how organisations should be talking about that rather than reducing feeds are going. We are victims of the great resignation is look at the impact that can be made here by using data science by using the right mix of human and automation together. It's that's the first time. So congratulations to you and Pedro duty for the first time I've seen that and I think everybody needs to be working to be able to explain it that way, especially the fact that we're still in a volatile environment. >>Absolutely. It's about customer experience, but it is just as much employee experience. There is so much that the industry is talking about. That's top of mind for board levels. That's top of mind from CEO S. How do I retain my employees and drive greater operational efficiency? And now, with the macro economic challenges that are occurring in terms of inflation and in and the cost to serve and increasing the profits are customers are making. Operational efficiency is becoming even more important so that the employees are focusing more on innovation rather than downtime or disruptions. And it's actually about growing the business rather than just running the business. And if we can optimise running the business growth is what our customers are looking >>for, right? I always think, and we're almost out of time here. But I always think the employee experience and the customer experience are like this, and they should be. But it's critical to optimise both. How do you when you talk to some of those big and our price customers. We have Doc Watson on the main stage this morning, but I was looking at the website and three that jumped out to me that I use peloton, salesforce and slack. How do you advise them? You have this wealthiest gold of information on customers. This is how you need to leverage it in the right way to grow your business. What are some of the top three things you recommend those customers do, for example, >>that so let me talk about a couple of customers as an example. There are some customers of ours in the retail business, or it is a telecommunication company that is trying to increase their, um, up time from 98.7% to 3 nines as an example, or a tech company that doesn't even know that they were down for six hours in one small part of their business. And we're trying to figure out how do we solve for that as customers are overall complaining. So for us as a organisation, the magic is again bringing data together employee engagement, and what we do is we use the data to engage with their customers to ultimately understand what is their business value proposition. If you don't do it in isolation, you do it in. What is the customer trying to achieve? Are they trying to achieve the best in class website? Are they trying to achieve increased operational efficiency? What are their metrics? What are their numbers? And we take our data, our people, to marry all of that together. And that's the magic. >>I love it. I wish we had more time. Angela. We are out of time but talking about the value of the customer experience, the impact that is possible to be made leveraging technologies like pager duty. It's It's revolutionising operations. It's revolutionising customers 21,000 plus one million plus users at a time. It's awesome. You have to come back so we can talk more because I can. No, we're just scratching the surface here. >>Yes, we are. This is a very, very exciting area right now, and it is a great opportunities for chief customer officers on really rallying the whole company on championing the customers because whether it's a product, our capabilities, it's really a major transformation happening in the in the industry, and we need to stay very close to it? >>Absolutely. Thank you so much for joining me today. It's been such a pleasure talking to you. I look forward to seeing you again. >>Real pleasure, Lisa, To get to know you. And the gun was she was awesome. >>Good. Thank you for Manjula. Televisa. I'm Lisa Martin. You're watching the cubes on the ground. Coverage of pager duty. Summit 22 from San Francisco. Thanks for watching. And bye for now. Mm mm. Mm mm.

live from Los Angeles it's the queues covering open-source summit North America 2017 brought to you by the Linux Foundation and redhead he welcome back everyone here live in LA for the open source summit in North America I'm jumper with my co-host Jeff Fritz too many men he'll be back shortly is out scouring the hallways for all the news and analysis getting all the scuttlebutt are here we're here with our next guest brian behlendorf who is the executive director of the hyper ledger project for the Linux Foundation thanks for coming on thank ledger thanks for sharing we just talking before the camera started rolling about blockchain and the coolness around the hype around it but again the hype cycle is usually a pretext to the trend hyper ledger is one of those exciting projects that like AI everyone is jazzed about because it's the future right open source is getting bigger and bigger as Jim zemulon was saying 23 million developers and growing but there's still so much work to be done the global society's relying on open source it's shaping our culture - Ledger's one of those things where it is going to actually disrupt the culture and change it potentially and even this morning Chinese band virtual currencies and icos and all based upon doesn't mean it's time to invest yes and whatever China bands it's always been successful so your thoughts go first boy star let's get into hyper ledger project it's certainly super exciting probably people are talking about it heavily what's going on with the project give a quick update what's the purpose who's involved and when some of the milestones you guys have hyper ledger is less than two years old it was launched officially in December of 2015 I joined in main and it was founded on the principle that hey there's a lot of interesting stuff happening in the cryptocurrency world but there might be some more prosaic some more directly applicable applications of distributed ledger and smart contract technology to rebooting a lot of otherwise very thorny problems for industries in the world the main problem being you've got companies doing business with each other and the recording transactions and you know they'll have to go back and reconcile their systems to get audited bugs right and a lot of the systems out there depend upon processes at a very human processes that are prone to error prone to corruption right so the idea is the more that you can pull together you know information about transactions into a shared system of record which is really with the distributed ledger it's and then the more about of the governance and the and the business processes enclosed that you can automate by smart contract the more effective the more efficient a lot of these markets will be so that's what hyper ledger is about ok so certainly the the keynote was all about open sources being dependent upon and Jim's Emlyn as well as Christine Corbett said you know traditionally control we all know that open source but I love that the deployment changing the face of capitalism because hyper ledger is a term that you can almost apply to the notion of decentralize not just distributed but decentralized business so the notion of supply chain things in finance to moving Goods around the world this is interesting this is how about the impact of how you guys are seeing some of these applications we're now a decentralized architecture combined with distributed creates an opportunity for changing the face of capitalism flowing because the word distributed can be very loaded all right you know and even decentralized right it can be very loaded and what I what I tried to popularize is the idea of minimum viable centralization right you know football games and other sports games have referees right and when we play a game like this well sometimes you know sometimes we don't need a referee it's just us playing pick-up basketball but we want somebody on the periphery we all agree to who helps remind us what the rules are and throws a red flag from time to time all right and so you see in industries ranging from finance where you're building these transaction networks to you know supply chains where you need to track the flow of like food and to know when if food has gotten spoiled possibly where that came from or diamonds that have been involved in conflict time and you know other illegal activities right you want to know where that came for a minute and it involves that industry getting together and saying we all agree we have a big net interest in making our business actually follow certain rules and norms right and using a distributed ledger to to bring that about it's something that can just provide a lot of optimizations so most people think of like Bitcoin and ether a mezda with all this ICO buzz as de as the front end to really the underlying blockchain which you're talking about yeah and that's kind of like I get that fiat currency in this market developed to look crazed bubbles some people call it whatever but you're getting at something unique and this is that there's a real business value of hyper ledger I won't say boring but it's like meat and potatoes stuff it's like really kind of prosaic is the prosaic it's like so but it's disruptive so if you think about like the old days when we were growing up or I was growing up ERP was on mini computers and the prized resource planning relationship management software those were bloated monolithic software packages yeah still out there today and they handle the so called supply chain right so is the hypervisor a disruption to that is it an augmentation of that so some try to put it in context the cost of sending a shipping container from China to the United States right half of that is in paperwork half of that is because that container on average will go through 30 different organizations from the the you know the suppliers that you're assembling the goods into to all the different ports all the different regulatory authorities right out finally to where it's delivered and if you can optimize those business processes if you can make it so that the happen in a space where it's not about paper and facts which a lot of that world is still ruled by today or a bureaucrat sitting there reviewing stuff that's coming in and having to stamp it when really all that could be automated you could cut the cost of that and take the shipping industry from what is right now a money-losing industry to potentially being viable once again so optimization is really critical for them it's optimization but it but there's also some new capabilities here so I spent a year at Department of Health and Human Services trying to help make health care records more portable for patients right and we wrote it and got it I got the industry to write a ton of open source software implemented open standards to make these records shareable the problem was the patient wasn't involved right this was about trying to take two orgs do something that all of their bean counters told them not to do which was share patient records because no that's proprietary value and the HIPAA regulations all that not exactly blackens processes basically with blocking with blocking technology that we can reinvent that as a patient driven process right we could reinvent a lot of the other business processes out there that involve personally identifiable information like the Equifax disaster right we could reinvent how the credit markets assess risk in individuals through blockchain technology in a way that doesn't require us to build these big central anonymous third parties that Coover everybody's data and become these massive privacy titanic's right we can reinvent a lot of this through blockchain tech and that's a lot of what we're working on that Nagaraja because a analytics from that kind of a unique place because you're used to driving these big open-source projects there's a lot of people and they're trying to build the wrapper around the base core of blockchain to come up with their version or their kind of application if you will whether it be Bitcoin or whatever but you guys are in kind of a special place based on your roots we believe that I mean open standards are nice but what really matters is common code right and in a world like we envision where rather than saying you one big Network like Bitcoin or one big Network like aetherium you've got thousands or tens of thousands of these permission networks that cover different industries different geographies different regions what you need is common software so that when a developer goes to work on an application that touches one or multiple of these they've got familiar idioms to work they've got familiar technologies to work with like NGO or Java or JavaScript right but they've got a community of other technologies has been trained up on these technologies that can help them bootstrap and launch their project and maybe even become a contributor to the open source so what we've figured out at the Linux Foundation is how to make that virtuous cycle go right companies you know benefit commercially from it and then feed back into the project and that's what we're mentioning the word you get almost rethink and reimagine some of these things like the Equifax disaster yeah I think it's pretty man no breathing most tech people I really seen as as viable like absolutely it's gonna happen so there's a nice trajectory vision that people are buying into because it's somewhat you can see it hanging together playing out technically what are some of the things going on the project can you share with the folks watching about some things that you're doing to get there faster what's going on with the community with some of the issues with concerns how do people get involved take some time to go tobut deep words of the project so we're not a you know an RD kind of free thinking kind of thing we're about get writing code and shipping and getting into production right so hyper ledger fabric just hit a one dot oh that was a signal from the developers that this code is ready to be run in production systems and for you to track digital assets right doesn't by far does not mean it's the end of the road it's the end of chapter one right but at least it's a place where we you know the kind of the clear intent is let's make this actually usable by enterprises the other projects we've got eight different projects total at hyper ledger some of them even compete with each other right but we're driving all of them to get to a one dot oh and over time all of them talk about how they relate to each other in kind of complimentary ways what's some of the profile developers you're getting because some people always ask I know what should I get involved what can I sink my teeth into what are some of the meaty kind of things that people are doing with it who the persona that that are coming in these enterprise developers they more traditional full-stack developers can you give a range of some of the persona attributes because this is early code still I mean this whole space is still pretty early when it comes to understanding how to use these technologies especially at scale kind of at a DevOps scale a lot of the people first coming into the tech community now are fairly advanced right are kind of the whiz kids right but we're seeing that gradually broad broaden out we now are at a point where we could use developers coming in and writing sample applications right we could use people helping us with documentation we're developing training materials that will be creative commons-licensed so everybody will be able to deliver those and as they find bugs or add features to the training they can do that too we can really use anybody all right so folks watching get involved okay get any white spaces you might want to tease them out with that you see happening obviously mentioned tracking digital assets data is a stress that's cool anything that's going on with data probably is a digital asset but you'd agree what's some of the things that people could get motivated can you share any insight that you might have that would motivate someone to jump in I think any any industry has these challenges of weaving their systems together with other businesses and then trying to do that in a way that holds each other.you account right this is a system for building systems of record between organizations right and you know you running a database to me running a database we don't get there on our own we only get there by working with consortio by working in as a community to actually build these systems and so I'd say every every business has that challenge whether they're engineers have felt free to go in and try to tackle that extranet days when you see people building citizen networks similar concept where blockchain is one big happy family collaborative network all right final question for you kind of shooting for a little bit what do you expect to happen community any thoughts on some of the goals you have is executive director obviously you got some hackathons for good we'll see blockchain being applied to some real things with one dot out what do you see rolling out which some of your goals I massively grow the developer community both the well you know the one end of the spectrum which is the the whiz kids the hardcore developers to you know move forward on a kind of the leading edge of that but really we've got to bring you know hundred thousand developers into this space or the next couple years just to meet the demand that's there in the industry for that town alright so if I'm a now an executive as a hey I saw this great Cuban in friens awesome go get involved what how did someone get involved is just jump standard community model just jump in what advice would you give someone if they want to engage and participate for every one of our projects if you give gave it an hour you'd get to a running you know instance of that software right so fabric or sawtooth within an hour you should ever running for node instance that you can start writing chain code two which is the smart contract language right and and then from there getting involved in the community as a matter of joining mailing list joining our rocket chat channels rocket chats an alternative to slack that we actually prefer and I and I think you'll find a really welcoming community of other devs who want to tell you about what the projects are and want to help you kind of climb that learning curve one of the comments just enough good note here is that Christina gave him the key no she says code can shape culture you've been in the industry a long time you've seen the wave you've been on the shoulders of others and now as the open source goes to the next level how is code gonna shape the culture in your opinion actually people started working together to take that I would say that almost I'm not a moon shot but it's really more of an imperative that culture will be changed inclusion else is huge your thoughts on code shaping culture so we've we've had a decline in trust in institutions in the United States and worldwide not just in the last seven months since November but actually for the last 20 years there's Edelman does this survey every year where they ask you your trust in brands your trust in government your trust in the process the fairness of society and for 20 years that's been on a straight-line decline to the point where we ask ourselves like can you trust any level of government can you trust businesses to look out for your interest the answer almost generically is going to be no this is a technology that can save us from this is a technology that we I believe can help us define the rules of the game help us build society but then actually automate and implement that in a way that doesn't require us to have to bribe an official or curry favor with a school official to get our kid into that school or anything like that this is a way to try I think to make the world more accountable and more fair and open source has that inclusive and staying away from the gerrymander and I love the quote it's so confusing now it's like who do you ask where's the source of truth and it used to be RTFM and check the source code now it's not only there is no manual who is the source fake news all these bots means kind of crazy so this is that a call to arms the open source I think it is I think it really is the trust as a service ok Brian thanks so much for come on if you appreciate it Thank You director for the hyper ledger project super important project really a game changer changing the face of capitalism also continuing the trend accelerate open source I'm Shaun Frechette for more live coverage from the queue after this short break

(fun, relaxing music) >> Announcer: Live from the Javits Center, in New York City, it's The Cube. Covering Inforum 2017. Brought to you by Infor. >> Welcome back to The Cube's coverage of Inforum 2017, I'm your host Rebecca Knight, along with my co-host, Dave Vellante. We're joined by Stephan Scholl, he is the president of Infor. Thanks so much for joining us. >> My pleasure. >> For returning to The Cube My pleasure, yeah, three years in a row, I think, or four now, yeah. >> Indeed. >> Well, we skipped a year in-between. >> That's right! Three years. Anyway, it's good to be here. >> This has been a hugely successful conference. We're hearing so much about the growth and momentum of Infor. Can you unpack this a little bit for our viewers? >> Yeah, I mean... People always forget, we only started this aggressive Cloud journey literally three years ago. When we announced at Inforum in New Orleans that we were pivoting the company to Infor industry-based CloudSuites, everybody looked at us and said, "Well, that's an interesting pivot." "Why are you doing that?" Well, as I said yesterday, we really saw a market dynamic that you see retail just getting crushed by what Amazon was doing, and it was obvious, today, but then it wasn't so obvious, but that was going to happen everywhere, and so we really got aggressive on believing we could put together a very different approach to tackling enterprise software. Everybody is so fatigued from buying from our competitors traditional, perpetual software, and then you end up modifying the hell out of it, and then you end up spending a gazillion dollars, and it takes forever, and then if it does work, you're stuck on old technology already, and you never get to the next round of evolution. So we said why don't we build CloudSuites, take the last model industry functionality that we have, put it in a Cloud, make it easy for our customers to implement it, and then we'll run it for them. And then, by the way, when the newest innovation comes up, we'll upgrade them automatically. That's what Cloud's about. So, that's where we saw that transformation happening. So in three years, we went from two percent, as I said, to 55 plus percent of our revenue. And, by the way, we're not a small company. Nobody at our size and scale has ever done that in enterprise software. So what an accomplishment. >> So a lot of large companies, some that you used to work for, are really slow. And, you know what, lot of times that's okay, 'cause IT tends to be really slow, as you move to the Cloud, and move to the situation where, "Okay, guys, new release coming!" What are your customers saying about that, how are you managing that sort of pace of change, that flywheel of Amazon, and you're now innovating on and pushing to your climate? >> Well, they're excited. And, I'll tell you, I remember standing up in Frankfurt, Germany, 18 months ago for a keynote, and said the Cloud is coming, I almost got kicked out of Germany. (laughing) They said it's not going to happen in Germany, "No, we're an engineering pedigree," "We're going to be on premise." >> "You don't understand the German market!" >> "You don't understand our marketplace!" And, we're really close friends with Andy Jassy at AWS, the CEO. The AWS guys are unbelievable, and innovative, and we said, "You know, you guys got to build" "your next data center in Frankfurt." So they put hundreds of millions of dollars investment in, built a data center. What's the fastest growing data center in Europe, right now, for them? Frankfurt! The German market, for us, our pipeline is tenfold increase from what it was a year ago. So, it's working in Germany, and it's happening on a global basis, we have, I think yesterday 75 customers from Saudi, from Dubai, from all the Middle East. Cloud is a great equalizer. And don't underestimate... I'll take luck to our advantage anytime. The luck part is, there's fatigue out there, they're exhausted, they've spent so much money over the last 20, 30 years, and never reached the promise of what they were sold then, and so now, with all the digital disruption, I think of the business competitive challenges that they have to deal with. I mean, I don't care, you could be in Wichita, Kansas building up an e-commerce website, and compete with a company in Saudi tomorrow. The barest entry in manufacturing, retail, look at government agencies, we're doing nine-figure transformations in the Cloud with public sector agencies. Again, two years ago, they would've said never going to happen. >> Rebecca: Yet the government does spend that kind of... >> Mike Rogers, the CIO, was saying to us, "Look at all the technical debt" "that we've accumulated over the years," "and it just keeps getting worse and worse and worse." "If we don't bite the bullet and move now," "it's just going to take that much longer." >> That's right. And they're leap-frogging. I mean, I'm so excited, government agencies! I mean, there's even some edicts in some places where Cloud-only. I mean, this whole Gold Coast opportunity, 40 plus different applications in Australia, all going into the Cloud to handle all the complexities they have around the commonwealth games that they're trying to deal with. I mean, just huge transformations on a global basis. >> At this conference, we're hearing about so many different companies, and, as you said, government agencies, municipalalities, transforming their business models, transforming their approaches. What are some of your favorite transformation stories? >> My favorite one that we're doing is Travis Perkins. John Carter, I think you guys maybe even interviewed him last year when he was here. CEO. Old, staid distribution business, and taking a whole new fresh approach. Undoing 40 to 50 different applications, taking his entire business, putting it online. He deals with contracts... So, they're the Home Depot of the UK market, and right now, if you drive up into that car port and you want to order something, it's manual! Sticky notes, phones, dumb terminals, I need five windows, I need five roofs, I need five pieces of wood. Everything is just a scurry. He wants to put it on, when you drive up next year, you're on an iPad, what would you like? Oh, by the way, you want to make a custom order on that window frame? You want to make green, yellow, red, you want to order different tiles of roof styling? Custom orders is the future! You, as a contractor, walking into that organization, want to make a custom order. That, today, is very complicated for a company like that to handle. So, the future is about undoing all that, embracing the custom order process, giving you a really unique, touchless buying process, where it's all on an iPad, it's all automated. You know what? Telling you here's your five new windows, here's a new frame want on it, and, by the way, you're going to get it in five days, and three hours, and 21 minutes. Deliver it to your door. And, by the way, these guys are huge. They're one of the biggest distribution companies in all of the United Kingdom, and so that's one of my favorite stories. >> Can we go over some of the metrics that you've been sharing. I know it's somewhat repetitive, but I'd like to get it on-record. There's 55%, 84, 88, over 1100, 3x, 60%, maybe start with the 60%. I think it's bookings grown, right? >> That's right, yeah. License sales growth last year alone. And, you know what, I looked at... You know, I see it, Paul always keeps me honest, but I think I can say it anyways, which is, I looked at everybody else. You look at the... I don't want you to mention any competitors' names, but you look at the top five competitors that we have, we grew faster than they did last year on sales of CloudSuite. >> Dave: Okay, so that's 60% bookings growth on Cloud. >> Correct. That's right. Yeah, I mean, when you think of our competitors, I saw 40s, I saw some 30s, I saw maybe 52 at the next one down. So, people don't think of us that way, so we were, at the enterprise scale, the fastest-growing Cloud company in the world. >> Okay, and then, 3x, that's 3x the number of customers who bought multiple products, is that correct? >> Correct. That's exactly right. So think about that transformation. They used to buy from us one product, feature-function rich, great, but now they're buying five products, eight products from us. So 3x increase, year over year, already happening. >> Okay, and then there was 1100 plus, is Go-Lives. >> People always ask us, "You're selling stuff." "Are they using it, is it working?" So you got to follow up with delivery, so we're spending a ton of money on certification, training, and ablement, look at the SI community, look at the... Deloitte, Accenture, Capgemini, and Grand Thornton. Four of the major SIs in the world, that weren't here last year, are all here this year. Platinum sponsors. So, delivery on Go Lives, the SI community is embracing us, helping us, I mean, I can't do hundred million dollar transformations on my own with these customers. I need Accenture, I need Deloitte. Look at Koch! Koch's going to be a massive transformation for financials, human-capital management, and so I've got Accenture and Deloitte helping us, taking a hundred plus billion dollar company on those two systems. >> And then 84, 88, is number of... >> Live customers, I'm sorry, total customers that we have in the Cloud. >> Cloud customers, okay, not total customers. >> No, no, we have 90 thousand plus customers, and then 84, 85 hundred of them are Cloud-based customers. >> You got a ways to go, then, to convert some of those customers. >> Well, that's our opportunity, that's exactly right. >> And then 55% of revenue came from the Cloud, obviously driven by the Cloud bookings growth. >> That's right. Exactly. So, I mean, just the acceleration, I mean, as I said, when we started this thing in New Orleans, two or three percent. Now, tipping point, revenue, I mean, it's one thing to sell software, but to actually turn it into revenue? Nobody at an enterprise scale has done 2% to 55% at our size. Lots of companies in the hundred million dollar range, small companies, you know, if we were a stand-alone Cloud company, we'd be one of the largest Cloud companies in the world. >> So the narrative from Oracle, I wonder if you can comment on this, is that the core of enterprise apps has not moved to the Cloud, and we, Oracle, are the guys to move it there, 'cause we are the only ones with that end-to-end Cloud on prem to Cloud strategy. And most companies can't put core apps, enterprise apps in the Cloud, especially on Amazon. So, what do you say to that? >> Well, it's 'cause they don't have the applications to do that. Oracle doesn't have the application horsepower. They don't have industry-based application suites. If you think of what fusion is, it's a mishmash of all the applications that they bought. There's no industry capability. >> Dave: It's horizontal, is what you're saying. >> It's horizontal. Oracle is fighting a battle against Amazon, they declared war against AWS. I'm glad they're doing that, go ahead! I mean, I don't know how you're going to do that, but they want to fight the infrastructure game. For us, infrastructure is commoditized. We're fighting the business applications layer game, and so, when you look at SAP or Oracle or anybody else, they have never done what we've done in our heritage, which is take key critical mission functionality for aerospace and defense, or automotive, we have the last mile functionality. I mean, I have companies like Ferrari, on of the most complicated companies, we've talked about those guys for years, no modifications! BAE, over in the UK, building the F-35 fighter jets and the Typhoon war planes. It doesn't get any more complicated than building an F-35 fighter jet. No modifications in their software, that they have with us. You can only build Cloud-based solutions if you don't modify the software. Oracle doesn't have that. Never had it. They're not a manufacturing pedigreed organization. SAP's probably more analogous to that, but even for SAP, they only have one complete big product sect covering retail, distribution, finance, it's the same piece of software they send to a bank, that they send to a retailer, that they send to a manufacturer. We don't do that. That's been our core forever. >> So your dogma is no custom mods, because you're basically saying you can't succeed in the Cloud with custom mods. >> Yeah. I mean, we have an extensive ability platform to do some neat things if you need to do that, but generally speaking, otherwise it's just lipstick on the pig if you're running modified applications. That's called hosting, and that's what these guys are largely doing. >> You know, a lot of people count hosting as Cloud. >> That's the game they're playing, right? >> They throw everything in the Cloud kitchen sink. >> That's right. >> Okay. >> And as we've talked with you before, we've spent billions... We all are R&D's at the application layer. We do some work in the integration layer, and so on, but most of our money is spent in the last mile, which, Oracle and SAP, they're all focused on HANA and infrastructure, and system speed, and performance, and all the stuff that we view as absolutely being commoditized. >> But that's really attractive to the SIs, the fact that they don't go that last mile, so why is it that the SIs are suddenly sort of coming to Infor? >> Well, you know what, because they finally see there is a lot of revenue still on the line in terms of change management, business-process re-engineering. You take a company like Travis Perkins, change their entire model of doing business. There isn't just modification revenue, or integration revenue, there is huge dollars to be had on change management, taking the company to CEO John Carter by the hand, and saying, "Here's how you're going to transform" "your entire business process." That more than makes up in many cases high-value dollars than focused on changing a widget from green to yellow. >> And it's right in the wheelhouse of these big consultancies. >> And they're making good money on digital transformation, so what are the digital use cases? Look at Accenture, they're did a great job. I think 20 plus percent of their business now is all coming from digital. That didn't exist three, four years ago. >> Well, you have a lot of historical experience from your Oracle days of working with those large SIs, they were critical, but they were doing different type of work then, and is it your premise that a lot of that's going away and that's shifting toward. >> The voice of the customer is everything, and it may take time, you can snow a customer once, which we've already done in this industry of software. We told them buy generic-based software, Oracle or SAP, modify it with an SI, take five years, implement it for a hundred million dollars, get stuck on this platform, and if you're lucky, maybe upgrade in ten years. Whoever does that today, as a playbook, as a customer, and if an SI can sell that, I'm not buying that. You think any customers I know today are buying that vision? I don't think so. >> Dave: Right there with the outsourcing business. >> Another thing that's come out of this conference is attention to the Brooklyn Nets deal. Can you talk a little big about it, it's very cool. >> I love those guys. >> Dave: We're from Boston, we love the Brooklyn Nets, too. >> Rebecca: They can play us anytime. Every day. >> Dave: For those draft picks. >> Bread on those guys. You know what it is. And Shaun, the GM, the energy... I use that a lot with my own guys. Brooklyn grit. And they're willing to look and upturn every aspect of the game to be more competitive. And so, we're in there with our technology, looking at every facet, what are they eating? What's the EQ stuff? Emotional occlusion. How's that team collaboration coming together? And then mapping it to... They have the best 3-D cameras on the court, so put positioning, and how are they aligning to each other? Who's doing the front guard in terms of holding the next person back so they can have enough room to do a three-point shot. Where should the three-point shot come from? So, taking all the EQ stuff, the IQ stuff, the performance, the teamwork, putting it all into a recipe for success. These guys are, I'm going to predict it here, these guys are going to rock it next couple years as a team. >> But it's not just what goes on in the court, too, it's also about fan engagement, too. >> All that. Well, fair enough, I get all excited about just making them a much better team, but the whole fan experience, walking into a place knowing that if I get up now, the washroom line isn't 15 miles long, and at the cash line for a beer isn't going to take me 20 minutes, that I'm on my app, you actually have all the information and sensors in place to know that, hey, right now's a great time, aisle number four, queue number three, is a one-minute wait for a beer, go. Or have runners, everything's on your phone, they don't do enough service. So there's a huge revenue opportunity along with it, from a business point of view, but I would also say is a customer service element. How many times have we sat in a game and go, "I'm not getting up there." (laughing) Unless you're sitting in the VIP area, well, there's revenue to be had all over the place. >> Yeah, they're missing out on our beer money, yeah. >> It's ways for a stadium services, which are essentially a liquor distribution system. >> Exactly right. But to do that, you got to connect point of sales systems, you got to connect a lot of components, centers in the bathroom, I mean you got to do a lot of work, so we're going to create the fan experience of the future with them. And preferences, the fact that they that when you walk in past the door with your app and if you have Brooklyn Nets app, that we know who your favorite player is, and you get a little text that says, Hey, you know what, 10% discount on the next shirt from your favorite player. Things like that. Making a personal connection with you about what you like is going to change the game. And that's happening everywhere. In retail... Everybody wants to have a one-to-one relationship. You want to order your Nike shoes online with a green lace and a red lace on the right, Nike allows you to do that. You want to order a shirt that they'll make for you with the different emblems on it and different technology to it, those are things they're doing, too. So, a very one-to-one relationship. >> Well, it's data, it's more than data, it's insights, and you guys are, everybody's a data company, but you're really becoming a data and insight-oriented company. Did you kind of stumble into that, or is this part of the grand plan six years ago, or, how'd you get here? >> Listen, this whole... I mean, to do Cloud-based solutions by industry is not just to solve for applications going from infrastructure on-premise to off-premise. What does it allow you to do? Well, if you're in AWS, I can run ten thousand core products... I can run a report in ten minutes with AWS that would take you a week, around sales information, customer information. Look at all the Netflix content. You log in on Netflix, "Suggestions for You". It's actually pretty accurate, isn't it? >> Scarily accurate, sometimes, yes. >> It's pretty smart what goes into the algorithm that looks at your past. Unfortunately, I log into my kid's section, and it has my name on it and I get all these wonderful recommendations for kids. But that's the kind of stuff that we're talking about. Customers need that. It's about real-time, it's not looking backwards anymore, it's about real-time decisioning, and analytics, and artificial intelligence, AI is the future, for sure. >> So more, more on the future, this is really fun, listening to you talk, because you are the president, and you have a great view of what's going on. What will we be talking about next year, at this time. Well, it won't be quite this time, it will be September, but what do you think? >> I think what you're going to see is massive global organizations up on stage, like the ones I mentioned, Travis Perkins, a Safeway, a Gold Coast, a Hertz. Hertz is under attack as a company. The entry point into the rental car business was very very hard. Who's going to go buy 800 thousand cars and get in the rental business, open ten thousand centers? You don't need to do that anymore today! >> Dave: Software! >> It's called software, the application business, so their business model is under attack. We're feverishly working with their CEO and their executive team and their board on redefining the future of Hertz. So, you're going to see here, next year, the conversation with a company like Hertz rebounding and growing and being successful, and... The best defense is a good offense, so they're on the offensive! They're going to use their size, their scale. You look at the retailers, I mean, I love the TAL story, and they may make one out of every six shirts. Amazon puts the same shirt online that they sell for $39.99, TAL's trying to sell for $89.99. They're saying enough of that. They built these beautiful analyzers, sensors, where you walk into this little room, and they do a sensor of a hundred different parts of your body, So they're going to get the perfect shirt for you. So, it's an experience center. So you walk into this little center, name's escaping me now, but they're going to take all the measurements, like a professional Italian tailor would do, you walk in, it's all automatic, you come out of there, they know all the components of your body, which is a good thing and a bad thing, sometimes, right, (laughing) they'll know it all, and then you go to this beautiful rack and you're going to pick what color do you want. Do you want a different color? So everything is moving to custom, and you'll pay more for that. Wouldn't you pay for a customized shirt that fits your body perfectly, rather than an off-the-rack kind of shirt at $89.99? That's how you compete with the generic-based e-commerce plays that are out there. That use case of TAL is going to happen in every facet. DSW, the DSW ones, these experience centers, the shoeless aisles, that whole experience. You walking in as... The most loyal women shoppers are DSW with their applications, right. >> Rebecca: (laughs) Yes, yes. >> And how many times have you tried a shoe on that doesn't fit properly, or it's not the one you want, or they don't have your size, or you want to make some configurations to it. You got one, too! >> Ashley came by and gave me this, 'cause I love DSW. >> I mean, they're what, one of the biggest shoe companies in the world not standing still, and Ashley is transforming, they went live on financials in like 90 days in the Cloud? Which for them, that kind of innovation happening that fast is unbelievable. So next year, the whole customer experience side is going to be revolutionary for these kinds of exciting organizations. So, rather than cowering from this digital transformation, they're embracing it. We're going to be the engine of digital transformation for them. I get so excited to have major corporations completely disrupting themselves to change their market for themselves moving forward. >> What is the Koch investment meant to you guys, can you talk about that a little bit? I mean, obviously, we hear two billion dollars, and blah, blah, blah, but can you go a little deeper for us? >> I mean, forget all the money stuff, for a minute, just the fact that we're part of a company that is, went from 40 million when Charles Koch started, taking over from his family, and went to 100 plus billion. Think about that innovation. Think about the horsepower, the culture, the aggressiveness, the tenacity, the will to win. We already had that. To combine that with their sheer size and scale is something that is exciting for me, one. Two is they view technology as the next big chapter for them. I mean, again, not resting on your laurels, I'm already 100 billion, they want to grow to 150, 200 billion, and they see technology as the root to getting there. Automating their plants, connecting all their components of their employees, gain the right employees to the right place, so workforce management, all the HR stuff that we're doing on transformation, the financials, getting a global consolidated view across 100 billion dollar business on our systems. That's transformation! That's big, big business for us, and what a great reference to have! A guy like Steve Fellmeier up yesterday, he'll be up here next year talking about how he's using us to transform their business. There's not many 100 billion dollar companies around, right, so what a great reference point for us to have them as a customer, and as a proved point of success. >> Well, we'll look forward to that in September, and seeing you back here next year, too. >> Look forward to it. >> Stephan, thanks so much for joining us. >> Thanks, appreciate it, thank you. >> I'm Rebecca Knight for Dave Vellante, that is it for us and The Cube at Inforum 2017. See you next time.

(Rhythm music) >> Narrator: Live, from Munich, Germany, it's The Cube. Coverage, DataWorks Summit Europe, 2017. Brought to you by Hortonworks. >> Okay, welcome back everyone. We are live in Munich, Germany for DataWorks 2017, formally known as Hadoop Summit. This is The Cube special coverage of the Big Data world. I'm John Furrier my co-host Dave Vallente. Two days of live coverage, day one wrapping up. Now, Dave, we're just kind of reviewing the scene here. First of all, Europe is a different vibe. But the game is still the same. It's about Big Data evolving from Hadoop to full open source penetration. Puppy's now public in markets Hortonworks, Cloudera is now filing an S-1, Neosoft, Talon, variety of the other public companies. Alteryx. Hadoop is not dead, it's not dying. It certainly is going to have a position in the industry, but the Big Data conversation is front and center. And one thing that's striking to me is that in Europe, more than in the North America, is IOT is more centrally themed in this event. Europe is on the Internet of Things because of the manufacturing, smart cities. So this is a lot of IOT happening here, and I think this is a big discovery certainly, Hortonworks event is much more of a community event than Strata Hadoop. Which is much more about making money and modernization. This show's got a lot more engagement with real conversations and developers sessions. Very engaging audience. Well, yeah, it's Europe. So you've go a little bit different smaller show than North America but to me, IOT, Internet of Things, is bringing the other cloud world with Big Data. That's the forcing function. And real time data is the center of the action. I think is going to be a continuing theme as we move forward. >> So, in 2010 John, it was all about 'What is Hadoop?' With the middle part of that decade was all about Hadoop's got to go into the enterprise. It's gone mainstream in to the enterprise, and now it's sort of 'what's next?' Same wine new bottle. But I will say this, Hadoop, as you pointed out, is not dead. And I liken it to the early web. Web one dot O it was profound. It was a new paradigm. The profundity of Hadoop was that you could ship five megabytes of code to a petabyte of data. And that was the new model and that's spawned, that's catalyzed the Big Data movement. That is with us now and it's entrenched, and now you're seeing layers of innovation on top of that. >> Yeah, and I would just reiterate and reinforce that point by saying that Cloudera, the founders of this industry if you will, with Hadoop the first company to be commercially funded to do what Hortonworks came in after the fact out of Yahoo, came out of a web-scale world. So you have the cloud native DevOps culture, Amar Ujala's at Yahoo, Mike Olson, Jeff Hammerbacher, Christopher Vercelli. These guys were hardcore large-scale data guys. Again, this is the continuation of the evolution, and I think nothing is changed it that regard because those pioneers have set the stage for now the commercialization and now the conversation around operationalizing this cloud is big. And having Alan Nance, a practitioner, rock-star, talking about radical deployments that can drop a billion dollars at a cost savings to the bottom line. This is the kind of conversations we're going to see more of this is going to change the game from, you know, "Hey, I'm the CFO buyer" or "CIO doing IT", to an operational CEO, chief operating officer level conversation. That operational model of cloud is now coming into the view what ERP did in software, those kinds of megatrends, this is happening right now. >> As we talk about the open, the people who are going to make the real money on Big Data are the practitioners, those people applying it. We talked about Alan Nance's example of billion dollar, half a billion dollar cost-savings revenue opportunities, that's where the money's being made. It's not being made, yet anyway with these public companies. You're seeing it Splunk, Tableau, now Cloudera, Hortonworks, MapR. Is MapR even here? >> Haven't seen 'em. >> No I haven't seen MapR, they used to have pretty prominent display at the show. >> You brought up point I want to get back to. This relates to those guys, which is, profitless prosperity. >> Yeah. >> A term used for open source. I think there's a trend happening and I can't put a finger on it but I can kind of feel it. That is the ecosystems of open source are now going to a dimension where they're not yet valued in the classic sense. Most people that build platforms value ecosystems, that's where developers came from. Developer ecosystems fuel open source. But if you look at enterprise, at transformations over the decades, you'd see the successful companies have ecosystems of channel partners; ecosystems of indirect sales if you will. We're seeing the formation, at least I can start seeing the formation of an indirect engine of value creation, vis-à-vis this organic developer community where the people are building businesses and companies. Shaun Connolly pointed to Thintech as an example. Where these startups became financial services businesses that became Thintech suppliers, the banks. They're not in the banking business per se, but they're becoming as important as banks 'cuz they're the providers in Thintech, Thintech being financial tech. So you're starting to see this ecosystem of not "channel partners", resell my equipment or software in the classic sense as we know them as they're called channel partners. But if this continues to develop, the thousand flower blooming strategy, you could argue that Hortonworks is undervalued as a company because they're not realizing those gains yet or those gains can't be measured. So if you're an MBA or an investment banker, you've got to be looking at the market saying, "wow, is there a net-present value to an ecosystem?" It begs the question Dave. >> Dave: It's a great question John. >> This is a wealth creation. A rising tide floats all boats, in that rising tide is a ecosystem value number there. No one has their hands on that, no one's talked about that. That is the upshot in my mind, the silver-lining to what some are saying is the consolidation of Hadoop. Some are saying Cloudera is going to get a huge haircut off their four point one billion dollar value. >> Dave: I think that's inevitable. >> Which is some say, they may lose two to three billion in value, in the IPO. Post IPO which would put them in line with Hortonworks based on the numbers. You know, is that good or bad? I don't think it's bad because the value shifts to the ecosystem. Both Cloudera and Hortonworks both play in open source so you can be glass half-full on one hand, on the haircut, upcoming for Cloudera, two saying "No, the glass is half-full because it's a haircut in the short-term maybe", if that happens. I mean some said Pure Storage was going to get a haircut, they never really did Dave. So, again, no one yet has pegged the valuation of an ecosystem. >> Well, and I think that is a great point, personally I think, I've been sort of racking my brain, will this Big Data hike be realized. Like the internet. You remember the internet hyped up, then it crashed; no one wanted to own any of these companies. But it actually lived up to the hype. It actually exceeded the hype. >> You can get pet food online now, it's called amazon. [Co-Hosts Chuckle Together] All the e-commerce played out. >> Right, e-commerce played out. But I think you're right. But everybody's expecting sort of, was expecting a similar type of cycle. "Oh, this will replace that." And that's now what's going to happen. What's going to happen is the ecosystem is going to create a flywheel effect, is really what you're saying. >> Jeff: Yes. >> And there will be huge valuations that emerge out of this. But today, the guys that we know and love, the Hortonworks, the Clouderas, et cetera, aren't really on the winners list, I mean some of their founders maybe are. But who are the winners? Maybe the customers because they saw a big drop in cost. Apache's a big winner here. Wouldn't ya say? >> Yeah. >> Apache's looking pretty good, Apache Foundation. I would say AWS is a pretty big winner. They're drifting off of this. How about Microsoft and IBM? I mean I feel in a way IBM is sort of co-opted this Big Data meme, and said, "okay, cognitive." And layered all of it's stuff on top of it. Bought the weather company, repositioned the company, now it hasn't translated in to growth, but certainly has profitability implications. >> IBM plays well here, I'll tell you why. They're very big in open source, so that's positive. Two, they have huge track record and staff dealing with professional services in the enterprise. So if transformation is the journey conversation, IBM's right there. You can't ignore IBM on this one. Now, the stack might be different, but again, beauty is in the eye of the beholder because depending on what work clothes you have it depends. IBM is not going to leave you high and dry 'cuz they have a really you need for what they can do with their customers. Where people are going to get blindsided in my opinion, the IBMs and Oracles of the world, and even Microsoft, is what Alan Nance was talking about, the radical transformation around the operating model is going to force people to figure out when to start cannibalizing their own stacks. That's going to be a tell sign for winners and losers in the big game. Because if IBM can shift quickly and co-op the megatrends, make it their own, get out in front of that next wave as Pat Gelsinger would say, they could surf that wave and then tweak, and then get out in front. If they don't get behind that next wave, they're driftwood. It really is all about where you are in the spectrum, and analytics is one of those things in data where, you've got to have a cohesive horizontal strategy. You got to be horizontally scalable with data. You got to make data freely available. You have to have an abstraction layer of software that will allow free movement of data, across systems. That's the number one thing that comes out of seeing the Hortonwork's data platform for instance. Shaun Connolly called it 'connective tissue'. Cloudera is the same thing, they have to start figuring out ways to be better at the data across the horizontal view. Cloudera like IBM has an opportunity as well, to get out in front of the next wave. I think you can see that with AI and machine learning, clearly they're going to go after that. >> Just to finish off on the winners and losers; I mean, the other winner is systems integrators to service these companies. But I like what you said about cannibalizing stacks as an indicator of what's happening. So let's talk about that. Oracle clearly cannibalizing it's stacks, saying, "okay, we're going to the red stack to the cloud, go." Microsoft has made that decision to do that. IBM? To a large degree is cannibalizing it's stack. HP sold off it's stack, said, "we don't want to cannibalize our stack, we want to sell and try to retool." >> So, your question, your point? >> So, haven't they already begun to do that, the big legacy companies? >> They're doing their tweaking the collet and mog, as an example. At Oracle Open World and IBM Interconnect, all the shows we, except for Amazon, 'cuz they're pure cloud. All are taking the unique differentiation approach to their own stuff. IBM is putting stuff that's relate to IBM in their cloud. Oracle differentiates on their stack, for instance, I have no problem with Oracle because they have a huge database business. And, you're high as a kite if you think Oracle's going to lose that database business when data is the number one asset in the world. What Oracle's doing which I think is quite brilliant on Oracle's part is saying, "hey, if you want to run on premise with hardware, we got Sun, and oh by the way, our database is the fastest on our stuff." Check. Win. "Oh you want to move to the cloud? Come to the Oracle cloud, our database runs the fastest in our cloud", which is their stuff in the cloud. So if you're an Oracle customer you just can't lose there. So they created an inimitability around their own database. So does that mean they're going to win the new database war? Maybe not, but they can coexist as a system of records so that's a win. Microsoft Office 365, tightly coupling that with Azure is a brilliant move. Why wouldn't they do that? They're going to migrate their customer base to their own clouds. Oracle and Microsoft are going to migrate their customers to their own cloud. Differentiate and give their customers a gateway to the cloud. VVMware is partnering with Amazon. Brilliant move and they just sold vCloud Air which we reported at Silicon Angle last night, to a French company recently so vCloud Air is gone. Now that puts the VMware clearly in bed with Amazon web services. Great move for VMware, benefit to AWS, that's a differentiation for VMware. >> Dave: Somebody bought vCloud Air? >> I think you missed that last night 'cuz you were traveling. >> Chuckling: That's tongue-in-cheek, I mean what did they get for vCloud Air? >> OVH bought them, French company. >> More de-levering by Michael. >> Well, they're inter-clouding right? I mean de-leveraging the focus, right? So OVH, French company, has a very much coexisted... >> What'd they pay? >> ... strategy. It's undisclosed. >> Yeah, well why? 'Cuz it wasn't a big number. That's my point. >> Back to the other cloud players, Google. I think Google's differentiating on their technology. Great move, smart move. They just got to get, as someone who's been following them, and you know, you and I both love an enterprise experience. They got to speak the enterprise language and execute the language. Not through 19 year olds and interns or recent smart college grads ad and say, "we're instantly enterprise." There's a dis-economies of scale for trying to ramp up and trying to be too heavy on the enterprise. Amazon's got the same problem, you can't hire sales guy fast enough, and oh by the way, find me a sales guy that has ten 15 years executive selling experience to a complex strategic sales, like the enterprise where you now have stakeholders that are in multiple roles and changing roles as Alan Nance pointed out. So the enterprise game is very difficult. >> Yup. >> Very very difficult. >> Well, I think these dupe startups are seeing that. None of them are making money. Shaun Connolly basically said, "hey, it used to be growth they would pay for growth, but now their punishing you if you don't have growth plus profitability." By the way, that's not all totally true. Amazon makes no money, unless stock prices go through the roof. >> There is no self-service, there is no self-service business model for digital transformation for enterprise customers today. It doesn't exist. The value proposition doesn't resinate with customers. It works good for Shadow IT, and if you want to roll out G Suite in some pockets of your organization, but an ad-sense sales force doesn't work in the enterprise. Everyone's finding that out right now because they're basically transforming their enterprise. >> I think Google's going to solve their problem. I think Google has to solve their problem 'cuz... >> I think they will, but to me it's, buy a company, there's a zillion company out there they could buy tomorrow that are private, that have like 300 sales people that are senior people. Pay the bucks, buy a sales force, roll your stuff out and start speaking the language. I think Dianne Green gets this. So, I think, I expect to see Google ... >> Dave: Totally. >> do some things in that area. >> And I think, to you're point, I've always said the rich get richer. The traditional legacy companies, they're holding servant in this. They waited they waited they waited, and they said, "okay now we're going to go put our chips on the table." Oracle made it's bets. IBM made it's bets. HP, not really, betting on hardware. Okay. Fine. Cisco, Microsoft, they're all making their bets. >> It's all about bets on technology and profitability. This is what I'm looking at right now Dave. We talked about it on our intro. Shaun Connolly who's in charge of strategy at Hortonworks clarified it that clearly revenue, losing money is not going to solve the problem for credibility. Profitability matters. This comes back to the point we've said on The Cube multiple years ago and even just as recently as last year, that the world's flipping back down to credibility. Customers in the enterprise want to see credibility and track record. And they're going to evaluate the suppliers based upon key fundamentals in their business. Can they make money? Can they deliver SLAs? These are going to be key requirements, not the shiny new toy from Silicon Valley. Or the cool machine learning algorithm. It has to apply to their product, their value, and they're going to look to companies on the scoreboard and say, "are you profitable?" As a proxy for relevance. >> Well I want to keep it, but I do want to, we've been kind of critical of some of the Hadoop players. Cloudera and Hortonworks specifically. But I want to give them props 'cuz you remember well John, when the legacy enterprise guys started coming into the Hadoop market they all said that they had the same messaging, "we're going to make Hadoop enterprise ready." You remember that well, and I have to say that Hortonworks, Cloudera, I would say MapR as well and the ecosystem, have done a pretty good job of making Hadoop and Big Data enterprise ready. They were already working on it very hard, I think they took it seriously and I think that that's why they are in the mix and they are growing as they are. Shaun Connolly talked about them being operating cashflow positive. Eking out some plus cash. On the next earnings call, pressures on. But we want to see, you know, rocket ships. >> I think they've done a good job, I mean, I don't think anyone's been asleep at the switch. At all, enterprise ready. The questions always been "can they get there fast enough?" I think everyone's recognized that cost of ownership's down. We still solicit on the OpenStack ecosystem, and that they move right from the valley properties. So we'll keep an eye on it, tomorrow we'll be checking in. We got a great day tomorrow. Live coverage here in Munich, Germany for DataWorks 2017. More coverage tomorrow, stay with us. I'm John Furrier with Dave Vallente. Be right back with more tomorrow, day two. Keep following us.