>> live from Las Vegas. It's the cute covering knowledge sixteen Brought to you by service. Now here your host, Dave Alon and Jeffrey >> College sixteen everybody hashtag no. Sixteen. Check out crowd chat dot net slash No. Sixteen. Gonna crowd check going on. Frank's Luminous here is the president and CEO and not so invisible Hand of service now at the helm. Frank, it's great to see you again. Always looked so nice. Job on the keynote this morning. Eleven thousand plus right, actually closer to twelve thousand. About twenty registrations tweeted out again today. M c world was ten thousand this year. So you're bigger than the M C world, at least in attendance. Imagine what it's going to be when you're a twenty four billion dollars company with. But anyway, congratulations. Thank you. Great to see you again. So yeah. So you must feel good about where you were at the financial analyst meeting yesterday. You laid out the vision you guys were on track for sixteen. Still focused on four billion dollars by twenty twenty. We know a lot can happen between now and twenty twenty, but you gotta be feeling pretty good about the tam expansion the product portfolio. The customer acceptance. Give us the update. >> Yeah, way to feel good. I laid out yesterday for the capital markets. Folk folks are framework. Phase one was R R R zero to one hundred. Uh, that was really when we were startup, Fred Laddie was CEO of the company. It was reaching escape velocity. The night came in in two thousand eleven that was faced to, and we're really focused on scale on discipline and really delivering on the promise that have been created. And the company went from one hundred million two billion dollars last year. But now you know, we're we've entered phase three and face tree is a billion to four billion and we're changing. We're changing from a single product single mark, a single channel company to one that's multi products, multi channel and multi market. And it's a transition. We're not assuming that lather rinse repeat is going to take care of it. So we're raising ourselves to another level. We're questioning what we're doing just to keep things, keep everybody on their tell us >> and your keynote this morning to talk about the states. The first greatest yaar pcrm oracle ASAP. and the second greatest state popularized the course by by sales force. Others before salesforce boost sales force Really one and you guys are laying out a vision for a service management across the enterprise, and you touch deeply into those other estates described that strategy and how it's going to affect customers going forward. >> Yeah, our deep belief is that the way we made its work is going to change under the influence ofthe technology. And what's possible? Has it been that long that we sort of got wire to our in boxes and email became our reactive reflects of way off doing things right? There was a time before e mail. Well, there will be a time after e mail as well. A lot of work is going to be defined into work flows. And then the reason is we don't need to reinvent the wheel over and over and over again. Every single time we do something you know when we define work flows, we had the opportunity Teo plant for work. We have the opportunity to motto Orc, we can analyze work. We can figure out what it cost. We can figure out how well we're doing These are This is where efficiency comes from. Essentially, companies will become clouds. They will all becomes, offer companies right, and they all are going to start to manage themselves like that. So the future of rolls and enterprises and institution and jobs, it's less about being into processes that will be in terms of defining and building the process and then managed in the process. These are these are profound fundamental transformations how we >> work. And you spoke on the Kino to about kind of the different point of view within engagement model when you come from and some type of background versus some of the other interaction. Specifically contrast ing serum, Um, in the way that engagement method works. Versace somewhere. Yeah. You solved the problem. Help a person get up off the floor. I love your I followed that. I can't get up example, but then really get to the root cause. And now you know the good position you're in. As that methodology moves beyond just the chorus people, two people doing it functions in all different roles. >> This this this, this our heritage. We've always taking the service management model. It's basically an engagement model an engineering model because we need to do recalls analysis. Why are we talking in the first place and then to fix and change model? It's a holistic process if you just haven't engaged a model that's not that satisfying because we're just trying to relieve the pain of the moment. But we're not prosecuting general line cost. And even if we knew the underlying cause, we're doing nothing about it. And people keep coming back with the same problem over and over again. So it's not so much about just managing the quality, the service. It's about managing the underlying quality off the core product that we're providing, whether that probably product for that product is in service. >> So a few years ago, I said, I thought you were on a collision course with sales force, and you kind of bristled at that and say, I know we're just doing our thing, but you're Tam is now so large. I mean, you're good, becoming a very large software company. You're in rarified air, so essentially everybody's, you know, I'm gonna have you in their line of sites. That's good. In the other hand, you know, it's an interesting position to be in. So what? Your thoughts on that from >> industry landscape. It's a huge market. You know, we're not super fixated on a confrontation with this player, that player. But we have philosophical conviction that doing customer service, you know our way is the right way to do that. And with things moving to Coyote Internet Oh, thanks, it's becoming way more important. It's not enough to say, Hey, my device is not working, you know? Can I reset the device? Can I see what's going on by straight? People have to become way smarter a za function off the software technology that we have just saying Well, you know, take you call and try to figure out what's going on right? And these days, you're already when you have a conductivity problem with tea for your WiFi service and so on, they can already already tell you, you know, what the hell thiss off your device and what what the problem domain really is. We're going to go way further in that direction. I mean, somebody shows of the refrigerators busted somebody shows up at your door. That person knows nothing, right until they literally open the door and they start looking around right. That's going to change because they will already know. And they'LL have to write parts with them, right if parts are actually involved or they can fix it remotely. So that's desk for service models are moving >> well, your tent, You're celebrating your tent in tenth year anniversary now, and the interesting thing about service now is used. You started in it. You call them your peeps. Your fundamental assumption is that it is touching everything in making that bet That has been a tailwind fear. It's quite a bit different than some of the other software companies that you see going >> down. So he's not just touching everything. It is everything that >> sass cos a cloud of Takeda mean more sass Company's coming out of general business. Then there is the technology business. Do you see that trend? >> I think, by the way, salesforce. I commend them for this vision. They've always said every company becomes this offer company that is absolutely and profoundly true. We're all becoming clouds, Um, and we're literally, you know, running as hard as we can, uh, to catch that ball downfield. You know what? This is about >> you guys have built an incredibly viable business now with riel mo mentum. So as you look forward to next ten years, talk about sort of that vision that you see of service management going beyond I t into other functions of the company as well as growing the ecosystem. >> Yeah, so no, our vision and our approach is about looking at work, right? We're not managing records. Whether it's HR or financial records. It's not about the record. It's about the work. If you take a company like sales first, they're focused on the customer. We're focused on the service. The service is the unit of work. So we have a unique focus on zooming in on that unit of work and structuring, defining and managing that. So to us, everything looks like a service at every application, every task, every request. Everything we do has a beginning and an end. And as an opportunity for structuring, automating, analyzing, monitoring all those candle thanks. So our future world, you know, we'll still have email, but so much of what we do in the day to day basis will be structured in systems and by the way, our life is consumers were already living that way. He just don't notice it because that's natural. I mean, uber is a structure of workflow. Even Facebook, in many ways, is that way. Making a reservation is the structural work flow. Ordering something at Amazon structure workflow and it's lights out lightspeed sort of world is trying to go. >> And if you think about growing this company to the to the next phase lots going on, you making acquisitions, you're bringing in a new town. The ecosystem is really an interesting item here because we saw Accenture Pickup Cloud Sherpas this year. We saw fruition and CSC And so you're seeing the big guys now take notice. That's gotta make you feel great. Talk about the ecosystem a little bit, >> Yeah, it's definitely in on inflection in our world when people are not just saying put me in coach, you know I can do this, but they're starting to, you know, put out real capital on buying companies. Now. There's numbers behind service now, and we're not just on an opportunistic thing in their business, but we're an ongoing business on dare doubling down. They're not. There will be many acquisitions off a lot of our service partners and also our technology partner. So we have a hundred seventy partners here. This is really good because we don't want our customers to sort of feel like I'm dependent on service now for everything. We want them to have many choices, not just in deployment partners, but also technology integrations. No value at its offer products. They shouldn't be depending on you for everything on us. >> In terms of emanate, it's been selective. I mean, you know, you know, we see these larger legacy cos they live off of ebony because they can't innovate you guys doing a lot of innovation internally. But But take a minute to talk about Emma and the particular we're interested in how you integrate cos you don't bolt on to the platform, you essentially re platform. You rewrite talk about that a little bit? >> Yes. Are our eminent strategy has been focused on talent and technology. Tellem builds the technology. Technology without the talent is not very useful. You know, in the short time you'LL run out of gas on that so it's always the combination of the people and what they have built that you correct We don't integrate technology that we acquire, we take it apart and we re implement it on our platform. That is a core core commitment that we make to our customer base, that we are not going to saddle you with the problems you've had for the last thirty years, where you are constantly testing and retesting integrations between this assets versus that assets and have whole steps dedicated to sort of keep the patchwork operable. We take that on right. You don't have to worry about it. You turn on the service, it will work with everything else on. Our customers early on, recognized that we were different in that regard. It's very expensive. It's very time consuming. But when we go to buy an asset and a talent pool, we first look at Cannes, where you re platform it's and secondly, does the technical team that comes with it. I want to do that because if somehow there they're not bought in on that strategy, we don't want to go there >> right. I want to shift gears a little bit and talk about your customers. You guys have a very special relationship with your customers and David on the Q. We go to a lot of shows, and there are few people at that elicit the excitement within the room like Fred does when he comes on stage, you know, and we talk a lot about when the founder's still involved in the company. It's really important that I still remember the first time I saw the cakes and twenty thirteen like, What does it do with the cakes and still Crispo post on lengthen five cakes a day? I think he just doesn't follow him. You'LL see cakes from all OVER the WORLD What do you are hearing from your customers? As you guys go to this next phase because you've had a really special relationship, we've gone beyond just when when Fred was running it, you've taken it to a billion. Now you're going to four. What kind of feedback and engagement we haven't out in the field. Don't talk to customers all, >> you know. Yeah, I do a lot. We're very intensely customer phasing company, just just culturally, but we're incredibly dedicated to their success, the way we believe that the value of our company is sort of summed up in the aggregate in terms of how strongly a customers feel about us. Forget all the financial metro. It's how strongly customers feel about you is the ultimate value off your your franchise. The cakes. It's a celebration. One service now goals life. It is. People feel like we let him out of jail. I mean, they have. Pignon goes with the name of the product that they're replacing. Haven't >> seen the >> way, So it's it's what they go from one generation or two generations ago into, Ah, very modern, transformational, empowering, platform. Empowering thing is really important because they are now in charge, right? They're able to make changes on a daily basis. Before they could do nothing. They were dependent on bunch of people that they could never get access to, to make changes for them. It all goes away right, that that's the essence off. But what service now provides >> thiss concept of love, this customer discussion? Because I love initiatives that born in the customer, I think Siam was one of those. I think it came out of Europe. I'm not exactly sure talk about Siam what it is and how it relates to your business. >> Siam feels to us a little bit like the next installment on my tail, sort of the evolution ofthe vital because it's not just service management. It's service, integration and management. But they had a very, very precise definition and framework around what we did. What I till. It's also what we're doing. The Siam were really expanding the scope and sort of adapting it to a much broader context because we think Siam you take its narrow definition very useful, very productive. And we have lots of customers that are pursuing a Siam strategy. But we're saying what semen says, which is now we're going to reorganize our entire enterprise in terms ofthe our service assets, anything that produces the service. But it's an organization or a system or a group of people, whatever it is, as well as everybody that has toe have access to the service. And those were not just people. They're also systems. So they re conceptualize one of this to be an enterprise, very visionary and very, very transformational. You won't recognize enterprise is an institution in the future. There'll be so different that people won't no longer be on in the inside of the process. They will be on the outside of the process, right? Jobs are changing. It's gonna have profound. If one says there will be lots of jobs, well, there will be new jobs and a lot of the old jobs. You know, they're going to go by the wayside >> and, you know, you're obviously in Silicon Valley, and I know there's a lot of work being done about. This is probably not the way we're going to communicate in the future. You guys, this theme of a new way to work today in your keynote, you talked about I ot You threw that buzz word out there and you said, I know before you start rolling your eyes and you guys have a play actually, in I o t again As Jeff said, we go to a lot of these conferences. You hear the similar thing? Digital transformation. I ot your play on aisle is around wearables and really driving some platform innovation to your wrist you have the watch on is that I had guys announced a wearable today, I said, I think I just I tweeted. I think that service now just announced Well, I watch aware a bone some things that we did. And so what's that all about? >> Well, we we've been able Teo, deliver services on watch ever since. Yeah, watch came out because we're a platform. We've been able to do this literally from day one. We're just tryingto inspire our customers to figure out How do you really use a watch? Right? Warm of the struggles that Apple has where the watch is, What's the killer app? It's not replacing Fitbit. You know that that z not enough, right? What's the most killer app for a wearable? And we think you're really time and predictive business metrics. You know, at a glance, because that's where this gramophone you really have to, you know, work to device. This is at a glance, right? And we are really tryingto get to this real time predictive mode off doing things because it's just so much more productive. But as I said in the rap over the keynote right, there's a lot of sizzle people lost watches and *** bang stuff. What enables toe watch. And that's really what we think Apple needs. You know, Forest tries used what enables that watch to become a productive business device, and it's the underlying repository of data that's continually being updated. That's what makes the watch powerful. >> So how did this come about you guys? You obviously like you said you had apse for the watch Your you enable that. But it wasn't good enough for you just didn't fit the use case well enough. But he said, Hey, let's go build it. >> Yeah, there is. There is a design aspect to it. And, you know, it is you heard during the keynote whether people do typically, you know, we're just shrink down to you. I from the bigger form factor to watch. And that's always the first generation >> and my phone on a watch. And >> everybody goes like, Well, that's not it. So and then we go back to the drawing board and we really, really think through the usability off that form factor, which is so tiny >> one of things about knowledge is the content from the customers. So I want to ask you how you spend your time here. Yesterday was a financial analyst meeting. Today you're in the general session and the keynotes. You got a CEO event going on. You had a partner event going on. How do you know. Is there there three francs? >> No, it's, uh it's it's no I I couldn't be more thrilled. We have so much going on at this conference in in years to come. You know that we'LL be vertical Industry conference is going on because we see that as the next evolution next phase of our evolution is that vertical ization is happening already because we have someone e big customers and single verticals. Whether it's financials and pharma retail, those folks can get so much benefit from associating with their counterparts in the same line of business, especially when the value of moves from it to broader enterprise that becomes very pertinent. So we're worked over in the middle of figuring out how to sort of enable ourselves We've enabled ourselves as a multi product organization. That was the whole face three transition. But the vertical ization is something that sort of next in our revolution. >> I mentioned my last question for eventual Silicon Valley. Obviously you're part of of of really set of rising stars and your butchery. You know, Scott decent and saw him the other day seen Cem Riel innovations coming at the same time, hearing a lot of these Caesar. Real nervous. You don't sound nervous. You sound really hopeful. What's your What's your outlook for? >> You know, your situation. We had our financial analyst yesterday, and you know that the capital markets crowd is very nervous. All of us are trying to decide on my in or out, and some things they do both before noon. Uh, I can't run a company that way. Most of the decisions that we make on a daily basis are not with a quarterly oriented. They go on for years and years, so I can't get that excited. You know, about the second floor of the business on a very short term basis, we know were lashed to the mast. We're going to go down with the ship. Were committed, were not interrupt. We're in. We're completely in. So our mindset is that we're just We're fine to be on the ship in running us, right? In January, the capital market sold is off. And in April that came back in were the same company, right? There was no reason to be that excited either to the downside or the upside. Right? This this a marathon companies get billed over long periods of time. >> Yeah, you don't seem like you're on that ninety days shot. Claws clock. Of course, it helps when you have a great customer base together. You got a great team. Frank's Lumen. Thanks so much for first of all, for having us at knowledge, we love this event. It's one of our favorites. And thanks for coming. It's >> great beer. Thank you. >> Alright, keep right, everybody. We'Ll be back with our next guest right after this is the cue. We're alive. Service now. Knowledge. Sixteen. Right back. It's always fun to come back to the cube because